PUTRAJAYA will stop holding golden shares in government-linked companies if it is deemed necessary, said Dr Mahathir Mohamad.

The prime minister said such a move will be made only after a case-by-case study.

‘For example, 1Malaysia Development Bhd is not doing what it had promised to do.

“In such a case, the government needs to take over,” he told reporters after the Bank Rakyat Integrity Forum 2020 in Kuala Lumpur today.

Speaking during a panel discussion earlier, Khazanah Nasional Bhd managing director Shahril Ridza Ridzuan said the government should move away from the practice of holding golden shares in GLCs.

This will enable company boards to select the best candidates for top positions, including that of CEO.

“Because of the power of golden shares, the government can make their own decisions, appoint their own candidates.”

He said the concept of government-held golden shares came about due to the lack of a proper framework and ineffective regulations in the past.

With the improvements today, he said, the concept should be done away with.

Employees Provident Fund (EPF) chief executive Tunku Alizakri Alias said there is a need for regulators to understand the “game” in the industry.

“One of the challenges we’ve encountered is… regulators who do not understand the business that EPF is doing due to the extreme complexity of the business.

“If they tell us what to do when they do not even understand the business, it creates a bigger mess.”

Economic Action Council member Professor Jomo Kwame Sundaram, meanwhile, said there is no “one size fits all” approach for the more than 1,000 companies in Malaysia.

He called for improved regulations so that there is transparency in governance. – Bernama, January 14, 2020.