THE Institute for Democracy and Economic Affairs (Ideas) has endorsed the cabinet’s decision not to sell PLUS Malaysia Bhd. 

In a statement, Ideas chief executive officer Ali Salman said the announcement will end speculation surrounding the fate of the highway concessionaire.

“In addition, it is imperative on the part of the government as guardian of national assets to produce and communicate a comprehensive divestment policy framework in order to encourage policy clarity and certainty.

“The framework should also fully consider the implications of GLC reforms, which may entail asset sales, to the broader socio-economic dynamics,” he said.

Ideas said since Prime Minister Dr Mahathir Mohamad’s divestment talk, the speculation about sales of national assets, including PLUS before this, raised concerns of transparency and governance and it does not inspire public confidence.

Ideas said this is due to an absence of a clearly laid out framework for GLC reform, which should also include divestment.

“A transparent divestment process should be in place before the government engages in privatisation,” he said.

He also said the framework should be given added emphasis and urgency in anticipation of the mid-year tabling of the 12th Malaysia Plan 2021-2025, which will outline the long-term economic direction of the country as well as the relationship between the government and the private economy.

So, he said the roles of GLCs as well as statutory bodies have to be revisited and made relevant to better address socioeconomic challenges of the future.

“Ideas will organise a series of consultative roundtable meetings with relevant stakeholders to contribute towards policy recommendations on reforming GLCs,” he added. – Bernama, January 16, 2020.