KUALA LUMPUR (Oct 30): Government-linked companies (GLCs) and government-linked investment companies (GLICs) must re-evaluate their participation in Corporate Malaysia in light of the evolving business landscape, said Prime Minister Tun Dr Mahathir Mohamad.

Speaking at the launch of the PNB Corporate Summit 2019, he explained that GLCs and GLICs have specific mandates and should avoid crowding out and competing directly with the private sector, especially in non-strategic businesses.

GLCs and GLICs "must recognise it is not their role to smother opportunities for others", he said.

"The government has no business to be in business," he added.

"GLCs and GLICs must focus on creating strong institutions and establishing the necessary infrastructure and supportive policies to fuel the growth, and in so doing become a catalyst that would spur the private sector.

"The expansion of the private sector is vital to spur growth by creating more opportunities for employment, enabling entrepreneurs to scale up their businesses and to bring in foreign direct investment to accelerate domestic growth," said Dr Mahathir.

He recalled the height of Malaysia's economic growth in the 1990s, before the 1998 Asian financial crisis, which he said was when the private sector was a core engine of Malaysia's success.

"As a result, over the ten years before 1998, GDP growth was on a strong trajectory, averaging at 9%," he said.

Both the GLCs and private sector can therefore be the engine of growth provided they are highly productive and competitive, he added.

https://www.theedgemarkets.com/article/govt-has-no-business-be-business-%E2%80%94-pm