Business

Wednesday July 1, 2009

GLCs should sell non-core activities, says Najib


KUALA LUMPUR: Government-linked companies (GLCs) should focus on core activities and therefore dispose of non-core activities, Prime Minister Datuk Seri Najib Razak said.

The GLCs must play a complementary role in developing Malaysia’s private sector and ensure that they remained competitive at the local and global levels, he said.

Second, GLCs should only operate in sectors in which they, as institutionally owned entities, could be competitive and even in these sectors, GLCs should “catalyse and develop” the domestic eco-system, including vendors.

Third, in their respective core sectors, GLCs must compete on a level playing field with private sector, Najib said.

“There will be no issue of Government providing assistance to GLCs by virtue of its shareholding, to the detriment of private sector competition,” he said.

Through these principles, the Government was confident that GLCs would play a complementary role with the private sector, he said.

Najib said the Government was committed to ensuring that the GLC Transformation Programme continued to be implemented. “If anything, with greater urgency and focus,” he said.

Petroliam Nasional Bhd, MISC Bhd, Sime Darby Bhd and Malaysia Airlines were examples of GLCs that should strive to be “future regional, if not global, champions,” Najib said.

He also mentioned Axiata Group Bhd, Malayan Banking Bhd and CIMB Bank Bhd.

“These companies must continue to pursue an increasingly international outlook in terms of market penetration and international competitiveness,” he said.


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