Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Jan 14): Prime Minister Tun Dr Mahathir Mohamad said today Malaysian government-linked companies' (GLCs) mismanagement is among reasons the government insists on having golden shares in selected companies.

Generally speaking, the government's golden share in a company allows the government to overrule board recommendations for top-management appointments. Dr Mahathir cited mismanagement in GLCs as one reason why the government needs golden share, which allows the government to exert additional control on these companies if needed.

"There are reasons why the government insists upon having a golden share, but if we think it is necessary, we will do away with it.

"But we have to see each case, one by one," Dr Mahathir told reporters here today at the Bank Rakyat Integrity Forum 2020.

Dr Mahathir was commenting on a recommendation during a panel session at the forum for the government to let go of the golden share mechanism.

Panellists include Malaysia sovereign wealth fund Khazanah Nasional Bhd managing director Datuk Shahril Ridza Ridzuan.

Shahril said the nation's GLCs can be regulated via industry regulators rather than through the government's golden share concept, because the nation has really good regulators now for industries like the energy, aviation and telecommunication sectors.

      Print
      Text Size
      Share