PAKATAN Harapan’s vow to reform government-linked companies (GLCs) appears to have benefited Prime Minister Dr Mahathir Mohamad’s party, Bersatu, said a think-tank.

The Institute of Democracy and Economic Affairs (Ideas) said it detected this in the changes to the “reporting line” of multiple GLCs under four key ministries.

Its study, detailed in a report titled “GLC Monitor, 2019: State of Play Since GE14”, found that control of nine major firms under the Finance Ministry has been transferred directly to the Prime Minister’s Office, and the Economic Affairs, Entrepreneur Development and Rural Development Ministries.

Effective control over key government enterprises under the Finance Ministry’s jurisdiction, including sovereign wealth fund Khazanah Nasional Bhd and leading Bumiputera-based investment fund Permodalan Nasional Bhd, has been transferred to PMO, said the report.

“These two GLICs (government-linked investment companies) have enormous investments in Malaysia’s leading publicly listed firms, thus, giving the prime minister significant influence over these enterprises.”

The study also found that the corporations divested from the Finance Ministry, which was previously headed by an Umno leader, are now under the control of Bersatu and fellow PH component PKR.

The Finance Ministry is helmed by Lim Guan Eng of DAP.

The Entrepreneur Development and Rural Development Ministries, meanwhile, are headed by Bersatu leaders Mohd Redzuan Yusof and Rina Harun, respectively.

Mohamed Azmin Ali of PKR is economic affairs minister.

Ideas said the companies under these ministries “cover the entire spectrum of Malaysia’s corporate sector”.

It added that the Finance Ministry still has some GLCs under its purview, but they are performing poorly. – October 30, 2019.