KUALA LUMPUR (March 12): Not all statutory bodies have the authority to make investments, as permission is contingent on the respective body's Incorporation Act, Finance Minister II Datuk Seri Amir Hamzah Azizan said on Tuesday.

Government-linked investment companies (GLICs), such as the Employees Provident Fund, Retirement Fund Inc (KWAP), and Lembaga Tabung Haji, are permitted to engage in diverse investments, including options, private equities, and overseas ventures.

However, Amir said that there are controls in place to mitigate investment risks, such as the requirement for the finance minister's approval for specific actions and limits on foreign investments.

"In addition, the Ministry of Finance also limits the percentage of investments that can be invested abroad," Amir said in response to Wong Shu Qi (Pakatan Harapan-Kluang) during an oral question-and-answer session in the Dewan Rakyat.

In contrast, Amir noted that non-GLIC statutory bodies, like public universities, lacking investment expertise and core activities, are limited to low-risk investments, such as fixed deposits, government bonds, or sukuk.

He pointed out that some Incorporation Acts, including those of the Malaysian Institute of Road Safety Research (Miros), National Film Development Corporation Malaysia (Finas), and Social Security Organisation (Socso), require the finance minister's consideration for all types of investments. Additionally, entities such as Human Resource Development Corp (HRD Corp) are under the control of their respective ministers.

For any statutory body that does not have the authority to make investments, Amir stressed that any contrary actions can be considered "ultra vires" under the Act.