SHUN government-linked companies involved in corruption, Dr Mahathir Mohamad told investors today.

The prime minister said GLC leaders known to be involved in graft will be removed, adding that these firms must be led by individuals with high integrity and moral values.

“I must stress that the investment community plays an important role in helping eradicate corruption. The least you can do is not buy shares from or make deals with directors or companies involved in corrupt practices,” he said in his keynote address at Invest Malaysia 2019 in Kuala Lumpur.

He called on the private sector to work with GLCs to realise Malaysia’s economic agenda.

“GLCs are often said to crowd out the private sector. This is not the intention.

“Our desire is to have GLCs play a catalytic role to support the economy. We would like to invite the private sector to join GLCs in realising the economic agenda.”

Dr Mahathir said the Prime Minister’s Office is in the midst of finalising guidelines on remuneration for senior management of government entities.

“We find that some remuneration packages are obscenely high. From now on, rewards will be based on performance.”

Finance Minister Lim Guan Eng agreed, saying remuneration for GLC bosses should reflect their companies’ performance and returns.

He added that GLCs should emulate the private sector in terms of plugging leakages.

Dr Mahathir said Putrajaya may reduce shareholding in some public-listed firms as part of its strategy to control parameters in issuing government guarantees, as well as to identify opportunities to monetise assets.

He said reducing debt and liability is the government’s immediate challenge as it strives to restore the credibility of economic policies and rebuild its fiscal space.

“A management committee has been formed to look at the government’s balance sheet and implement strategies to reduce debt and liability, including government guarantees.

“The reckless utilisation of off-balance sheet instruments by the previous administration led to a massive build-up of contingent liabilities to the government, with some already materialising.

“We are introducing the Fiscal Responsibility Act to ensure public sector accountability when presenting accounts and balance sheets… just as the private sector faces criminal liability for cheating in accounts.” – March 19, 2019.