GOVERNMENT-LINKED companies (GLCs) and state agencies are extensions of the administration. So, any mistake they make or disaster they find themselves in implicates Putrajaya.

Much of the flak the government has caught in recent months has been due – at least in part – to this.

The latest fiasco saw a terminally ill cancer patient having to travel to the Employees Provident Fund (EPF) office to make a withdrawal from her acccount. There is no way this is acceptable.

It is high time EPF improves its customer service and changes its mindset to be service-oriented. As Malaysia’s largest fund manager by virtue of mandatory subscription, EPF should have more reason to work harder to increase its product diversity and yield, and boost consumer friendliness.

EPF, along with six other government-linked investment companies (GLICs), have long been given a special position in Malaysia.

They are the primary means, via shareholding and investment (other than special purpose vehicles, golden shares and legislation or regulation), of the government to control its many GLCs.

Apart from the EPF incident, poor payouts owing to the mismanagement of Lembaga Tabung Haji, Felda and so on should be reason enough for the government to re-examine its policy on how it runs its investments or if it should have interests in such a wide variety of businesses, given its presence in nearly every sector except for manufacturing and product design.

These funds should have a global outlook and mindset. They should no longer be treated as bailout slush funds whose sums are channelled for politically driven purposes that yield little return for shareholders, even if the said purposes are intended by the government.

Perhaps, the answer lies in consolidation and streamlining, in line with global trends, the weakened ringgit and soft economic conditions, as well as to keep the government lean and competitive, to lower costs and increase manoeuvrability and flexibility.

Similar steps were taken under the previous budget with government-owned special-purpose banks. Consolidation lowers costs, leverages each bank’s strengths to build know-how and capacity, and strengthens the organisation itself.

The focus should be to close down or sell interests that the government has little expertise in, such as capital-intensive, high-level technology or defence. Putrajaya should emphasise what we are good at, similar to what Singapore did with housing development and airport management. The city state has honed such expertise till it is fit for export, making knowledge-sharing a source of revenue for the country.

In our case, haj pilgrim management by Tabung Haji, smallholder management by Felda and electric grid maintenance by Tenaga Nasional Bhd are just some examples of the powerful technical capacity we have built over the years.

A portion of the funds earned can be used to invest in home-grown tech start-ups, sports development, preservation and promotion of the arts, and so on.

The involvement of a “profit-driven” investment as opposed to only government grants will force the receiving organisations to commercialise their ventures, making them more sustainable and less dependent on taxpayers’ money, and giving them a renewed purpose. This, in turn, incentivises practitioners to be more creative, with better rewards for those who go the extra mile.

In an era where disruption is anticipated and constants are viewed with suspicion, it is just a matter of time before even the mighty GLICs are forced outside their comfort zones. Hopefully, by then, it won’t be too late.

Wishing all readers a Merry Christmas! – December 25, 2019.

* Emmanuel Joseph firmly believes that Klang is the best place on Earth, and that motivated people can do far more good than any leader with motive.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.