Akhbar supported the Cabinet’s recent suggestion to ban GLCs and those who would benefit from public contracts from making political donations, commenting that the majority of GLC chairmen and directors are politicians with vested interests.

“GLCs belong to the government, not to any one political party,” Akhbar said when asked for comment by FMT.

This follows a report by financial newswire Bloomberg that the Malaysian Government intends to tighten rules on such funding before the next general election.

Low, who is in charge of integrity and human rights, said the National Committee on Political Funding could also recommend that the ban extend to include private donations from abroad, even if they come from Malaysians living in foreign countries.

“The key criterion is to determine the extent of conflict of interest,” Bloomberg reported Low as saying.

Akhbar said that allowing GLCs to make political donations would affect their purchasing power and consequently their ability to benefit the public.

“GLCs should be profit-oriented, aiming to benefit the rakyat.

“It’s about the maximisation of wealth to later be distributed to the rakyat,” Akhbar said, noting also that GLCs faced the dilemma of serving their stakeholders or politicians.

“Donations to support politicians will affect their purchasing power and profit.

“(That in turn) will demoralise their employees, affecting production and the rendering of services.”

Akhbar also commented that political donations from GLCs generally smacked of money politics, and run against good governance.

“(Political donations) also affect foreign direct investments.

“Foreign investors will lose their confidence in the country.”