The G25 group has slammed Perikatan Nasional (PN) chairperson Muhyiddin Yassin for justifying the appointment of politicians to the board of GLCs (government-linked companies).
According to the group, the former premier’s remark contradicts the reform measures that were put in place following the 1997/98 East Asia Financial crisis, which required all boards to take responsibility for appointments without being influenced by political or other interests.
“Where politically linked candidates are proposed for board or management positions, the board must analyse whether they are politically active and whether they are professionally qualified.
“The world best practice is that no politically active candidates should be accepted for board appointments or for top management posts,” G25 said in a statement today.
The group was responding to Muhyiddin’s open promise of political appointments to GLCs if the coalition wins the state elections.
Last week, Muhyiddin told online news portal FMT that PN was ready to form the government in all six election states and had allocated administrative posts, including heads of state GLCs.
He said that PN, which is set to contest in all 245 seats, was keen to avoid bickering over positions should it win the elections.
On possible backlash arising from appointing politicians to GLCs, Muhyiddin added that the coalition government was doing the “same thing”.
Elaborating, G25 said having politically-linked directors on GLC boards would create suspicions about their business decisions.
“This is a very important matter especially to foreign multinational corporations as they look around for a suitable location for their business operations in Southeast 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.” – Malaysiakini