KUALA LUMPUR – G25 Malaysia has criticised Perikatan Nasional (PN) chairman Tan Sri Muhyiddin Yassin for his reported willingness to appoint politicians to the boards of government-linked companies (GLC).
In a statement today, the group of prominent retired civil servants expressed surprise at the Bersatu president’s stance as it contradicts reform measures introduced by the authorities after the devastating effects of the 1997/98 East Asian financial crisis.
“The new guidelines introduced by our Securities Commission follow world best practices as recommended by the Organisation for Economic Cooperation and Development (OECD),” it pointed out.
“All boards are required to take full responsibility over board appointments, without being influenced by political or other interests.
“The world best practice is that no politically active candidates should be accepted for board appointments or for top management posts.”
It also said that since GLCs operate in the private sector where they compete with local and foreign companies in the business marketplace, the presence of politically linked directors on their boards might cause “unhealthy” suspicions about their business decisions.
“This is a very important matter, especially to foreign multinational companies as they look around for a suitable location for their business operations in South East Asia.
“As all countries are now adopting the world best practice in their system of corporate governance, Malaysia will lose out to our neighbours, and globally, if we continue with the bad practices of the past,” the group warned.
In an interview with FMT published last Wednesday, Muhyiddin, who is also a former prime minister, had said that PN has already planned who will be appointed into GLCs if the Bersatu-led coalition emerges victorious in the coming elections in six states.
He was quoted saying that if good calibre politicians exist, then there should be no problem appointing them to GLCs as such positions need not be exclusively for corporate figures.
Electoral watchdog Bersih had subsequently called out Muhyiddin for his remarks, asserting that GLCs are not tools for political parties to offer anyone as a reward.
It added that doing so can be construed as a form of vote buying.
The Election Commission will be meeting tomorrow to discuss matters relating to the state polls in Penang, Kedah, Selangor, Negri Sembilan, Kelantan, and Terengganu. – The Vibes, July 4, 2023
