The former finance ministry secretary-general said that while some of these GLCs played an important role in the country, too many had become non-essential and, worse, damaging.

“Some GLCs are important because of their development roles and strategic importance to the economy. The top 20 GLCs are also a good training ground for Malays to become corporate executives and should be retained,” he explained during a webinar on the legacy of the New Economic Policy (NEP).

“However, those that are non-essential and non-performing should be shut down, as they are taking away from the private sector because of the unfair competition. Many of these bad GLCs are not self-funded.”

He said this was particularly true of small GLCs that operate at state level.

Sheriff also lamented the way politics had become intertwined with the economy through these GLCs.

“Lately, some have become too politically-connected through the appointment of board positions.

“The country’s reputation for corporate practices will worsen if the politicisation of GLCs is not stopped,” he warned.