The Malaysian Insight

PUTRAJAYA lacks political will to reform the Barisan Nasional-era patronage system in government-linked companies, said an academic.

Universiti Malaya Professor Edmund Terence Gomez said this is because the system is useful in solidifying a party’s power base, especially at the state level.

Gomez, who has researched the labyrinthine network of GLCs, said Pakatan Harapan has failed to keep its word to not appoint politicians to the boards of these firms and their statutory bodies.

“This promise was made during PH’s 14th general election campaign, but it has not been fulfilled,” he said in a speech at an economic symposium held in the Parliament building today.

He said the patronage system is most apparent in firms that come under the Prime Minister’s Department, Finance Ministry, Rural Development Ministry, and Science, Technology and Innovation Ministry.

The “big four” have a total of 39 companies, which they have direct control over, he said.

“The Rural Development Ministry has big companies like Mara, Risda and Felcra that are tasked with helping the poor in rural areas. But it has scores of smaller companies it does not need. Mara, Risda and Felcra can perform their functions very well without these other companies.

“I once proposed to the ministry how it can achieve its aim of developing rural areas without these smaller companies. They thanked me for my presentation, but I have not received any feedback.”

Gomez said among the biggest patronage networks are those at the state level, where there are “unnecessary” firms created under the offices of menteris besar and chief ministers.

State-level politicians have been put in charge of these entities, such as Menteri Besar Inc and Chief Minister Inc, whose functions appear to overlap with other state agencies, he said.

“Why is there no reform of GLCs? Why is there no attempt to determine the number of GLCs? Why are there still political appointments in GLCs?” said Gomez.

“Why not sell unlisted GLCs with little or no value to the government? Why not divest to curb wastage? These are not being answered.”

He added that there are indications Putrajaya intends to sell national assets to foreign entities, but did not cite examples.

“There needs to be a transparent, open dialogue on the government’s new pro-Bumiputera policies, because these policies will determine how our country moves forward.” – July 26, 2019.