Woo Wing Thye, who is with the University of California, Davis, in the US, said there was a need to recognise that GLCs could be misused as vehicles for corruption.
“It is naive to think that Malaysia can make GLCs work when other countries cannot,” he said, adding that only a few economies had managed to have successful GLCs.
“Most people will see failures of GLCs as a management problem. They will say ‘it failed because I wasn’t in charge’,” he said after a forum on the US-China trade war and its impact on Malaysia here today.
He said it was the incentive system in GLCs that made it difficult for them to operate like a regular company.
“Their existence makes it hard for the government to not treat them as automated teller machines (ATMs) or vehicles for political purposes,” he said.
Woo said a good example was when GLC heads took part in a pro-government music video titled “Hebat Negaraku” in the run-up to the 14th general election.
“That video shows us that the managers of GLCs are only good for singing,” he said.
He said although the GLC heads had necessary professional qualifications, the system made them do things they were not supposed to do, such as literally singing praises of their “bosses” in the government, ostensibly to ensure their continued employment.
Prior to the general election held in May, Woo had said that whoever won the polls must have the courage to introduce reforms related to GLCs.
Woo today also said there was a need to pay greater attention to the B40 (bottom 40% household income group) saying many programmes were carried out in the past to help the group but the results were questionable.
He said primary and secondary schooling should also be strengthened, especially in rural areas.
“Don’t just open more universities. Ensure the rural students have solid primary and secondary education,” he said, adding that it would ensure better quality university graduates.