Malaysia's Anwar says new law will tighten governance of government-linked companies

Malaysian Prime Minister Anwar Ibrahim said on Tuesday that the government plans legislation to tighten governance of government-linked companies (GLCs) and government-linked investment companies (GLICs), setting clearer rules and limits on the powers of their leaders, state news agency Bernama reported. Speaking during Prime Minister's Question Time, he said the Government-Owned Entities Bill is expected to be tabled this year, according to The Star.

Anwar cited past scandals at 1Malaysia Development Bhd (1MDB), Felda and Tabung Haji, but said no breaches on that scale had been identified at current government-linked entities. He said political figures would be barred from interfering in project selection and that efforts to tighten controls had met strong resistance from political and business elites, The Star reported.

Why it matters: Government-linked companies and funds manage large shares of Malaysia's public money and assets, and earlier failures such as the 1MDB scandal led to criminal cases and long-running public losses.