PM Anwar wants GLCs, GLICs to back off foreign investments in favour of Malaysia

PUTRAJAYA, Jan 9 — Prime Minister Datuk Seri Anwar Ibrahim today said he has instructed government-linked corporations (GLC) and government-linked investment companies (GLIC) to scale back foreign ventures that were not showing profits.

Anwar, who is also the finance minister, said he will discuss with the GLICs, which manage almost RM2 trillion in assets, to invest locally instead to boost Malaysia’s economy.

“I gave some instructions; for example, there should also be pressure to reduce investment in foreign countries. Because if the reason is that (investing locally) is not attractive, then what is the reason for us to hold a campaign to attract foreign investors to Malaysia?

“If our main companies do not have the ability to ensure the type of investment that is good and profitable, then we should provide flexibility. We will discuss again; 20 per cent or 25 per cent, I am not sure yet, but of course there is a responsibility to think about the need to increase investment in the country,” he said in his speech during the Finance Ministry’s monthly assembly, here.

Anwar commended GLCs and GLICs under his ministry for contributing to Malaysia’s revenue.

“The role of GLCs and GLICs, one of the reasons I called it because it is important, I can’t think of them as an isolated field in the big picture. I say thank you because so far, they have collectively helped a lot, especially reasonable income. For example, EPF is the highest,” he said.

In December last year, Anwar said that GLCs and GLICs should support the country’s aspirations as a world-class Islamic economic hub and investment destination.

He also said the firms should also increase investments in the digital and renewable energy sectors, as well as encourage the micro, small and medium enterprise sector (MSME) to expand their market to regional countries as outlined in the national aspirations.

Anwar also mandated GLICs to increase their respective domestic direct investments, saying they have a responsibility to work together with the government in driving economic growth and expanding the income of the people.

He noted that with the total size of assets under management worth RM1.84 trillion, which is almost equal to the size of Malaysia’s nominal gross domestic product (GDP) this year, GLICs are capable of moving and accelerating Malaysia’s economy.

 

 

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