LETTER | The past week has been euphoric for Malaysians who are coming out from a winter of repression into a spring of hope. The new Pakatan Harapan government is taking the right steps to rebuild the political and economic institutions that have deteriorated under the previous government.

One such economic institution are the government-linked companies (GLCs). GLCs are a dominant force in Malaysia’s economy, accounting for 35 of the top 100 companies on the stock exchange and 42% of the total market capitalisation of all listed companies in 2013. They must be professionally managed and free from political interference to instil confidence in our economy.

Given the mega scandals plaguing some of Malaysia’s GLCs such as the 1MDB, Felda, Mara and Tabung Haji, today’s announcement by the heads of six large government-linked corporations (GLCs), after the meeting with Daim Zainuddin, of the importance to separate professional management from any undue interference by political or any other external parties is to be lauded.

In its 2018 Agenda, the Penang Forum NGO declared that politicians in power should not sit on the boards of government-linked companies. GLCs belong to the nation and its citizens and should be run in their interest. As such they should be run in the most professional and ethical manner and be free from any political interference in decision-making.

Politicians in active public service exercise power in various ways and can bring undue pressures on GLCs to make politically-motivated decisions that serve particular interests.

Therefore, I call for legislation or regulations that prevent politicians in active public service from sitting on the boards of GLCs as well as prevents them from having other business and corporate positions that can result in conflicts of interest. This should apply both at federal and state levels.

Boards of GLCs may comprise of civil servants, professionals, and capable members of the public, or retired politicians with right professional qualifications.

These GLC boards should be answerable to Parliament or the state assembly in principle, that may be effected in practice through parliamentary or state assembly committees.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.