Corporate Malaysia wants government to stay out of business
By Yow Hong Chieh, The Malaysian Insider
KUALA LUMPUR, Sept 21 — Top banker Datuk Seri Nazir Razak urged the Najib administration today to reduce the level of control over government-linked companies (GLCs) if it wished to see the private sector drive the Economic Transformation Project (ETP).
“It’s very clear there’s a lot of room to improve the competitive landscape in each sector. The competition between GLCs, between private sector… must be clearer, must be transparent,” the CIMB CEO said at a forum held following the unveiling of the ETP at PWTC here today.
Nazir cited the example of the banking sector, where the government only provides capital for GLC banks without exercising “real control” over their day-to-day operations.
“I’ve actually recommended to the government that we consider renaming certain GLCs to GICs, which is that they’re just government-investee corporations,” he said.
Nazir’s views were echoed by Air Asia CEO Datuk Seri Tony Fernandes.
“Government should get out of business. That would make us all much happier,” the outspoken budget airline tycoon said.
Fernandes stressed that it was important for a level-playing field to be created to allow all Malaysian companies to excel regardless of whether or not they were government-linked.
“Holding one back is not the way forward,” he said.
He explained that Air Asia X had to cut back billions in investment due to protectionist measures restricting profitable routes when the long-distance carrier should really be given the same opportunities as GLC Malaysia Airlines to spur expansion in the tourism sector.
“This is a real test… to see how the government and Pemandu react to the aviation area so that both (carriers) can succeed and both can contribute to the growth of the national economy.”
He said the government must learn to see itself as purely an enabler so that it did not feel compelled to protect GLCs by holding back private companies.
