World · Malaysia Bureau
New law needed to bar politicians from GLCs, lawyer says
Legal experts are calling for legislation to prevent political figures from holding senior positions in government-linked companies. The proposed law should also establish clear and transparent procedures for recruitment and appointment to such roles.
LSN Malaysia ·
A prominent Malaysian lawyer has urged lawmakers to introduce legislation that would prohibit politicians from occupying key positions within government-linked companies (GLCs), arguing such measures are essential for corporate governance and reducing conflicts of interest.
Salim Bashir stressed that any new law must go beyond simply restricting politicians' involvement in GLCs. He emphasized the need for statutory frameworks that clearly define the appointment and recruitment processes for senior management roles, ensuring decisions are made on merit rather than political considerations.
The proposal reflects broader concerns about the overlap between political interests and corporate management in Malaysia's GLC sector. Advocates argue that separating political influence from corporate leadership would enhance transparency, improve accountability, and allow these entities to operate more efficiently in accordance with commercial principles.
Such legislation would require careful drafting to define which positions would be affected and establish independent mechanisms for vetting and selecting senior executives. The call for clearer appointment procedures signals support for professionalizing GLC management structures across the country.
The suggestion comes as Malaysia continues to strengthen its corporate governance frameworks and address public concerns over the management of state-owned enterprises.