Ensure that GLCs do not stifle the private sector

DAP National Deputy Chairman and MP for Kepong Dr Tan Seng Giaw calls on the Central Government to formulate a liberal policy,ensuring that the Government-linked companies under Khazanah Nasional and other GLCs do not harm the private sector, affecting its initiatives and innovations.

In the Malaysian economy, the private sector should play a vital part. The Government should ensure stability and help the private sector, preventing irregularities such as seen in the American sub-prime fiasco.

On 8.11.2010, Dr Tan asked the Deputy Finance Minister YB Lim Siang Chai a supplementary question on the profits and losses of GLCs under Khazanah Nasional from 2006 to 2009 and the reasons for their performance.

According to the Deputy Minister in 2007 Axiata (Telecom) made profits of RM1.782 billion, 2008 RM498 million, 2009 RM1.652 bn; Mas 2006 losses RM1.36bn, 2007 profits RM851 mn, 2008 RM244 mn, 2009 RM490 mn. Proton 2006 profits RM470 mn, 2007 losses RM590 mn, 2008 profits RM1.85 bn, 2009 losses RM320 mn. He did not state the reasons for the losses or the profits

The Finance Ministry has to be transparent, making public the performance of all GLCs and the reasons for their performance, including their part in the national economy. The private sector must have the initiatives and the innovations to create vibrant economy. The Government must be vigilant, effective in its monitoring and prevention of all forms of irregularities. Fiasco such as that of the American sub-prime, should never be allowed to occur in this country.

The Central Government has announced its target of attracting RM1.3 trillion investment, 92% of which from the private sector by 2020. Then the part played by Khazanah Nasional and all GLCs should be made clear. Will they stifle initiatives and innovations in the private sector. How dominant will the Government be in the economy?

Dr Tan Seng Giaw