Noting that the Covid-19 pandemic has had a “devastating impact” on the global economy, Salleh said it had resulted in a significant decrease in demand for goods and services in the local market.

“As a result, the production of goods has decreased, and so has the income of businesses and households,” he said in a Facebook post.

“Large investments from GLCs can help increase spending and demand, thus increasing the income of households and businesses – as well as generating more tax revenue for the government.”

Salleh, who is the Usukan assemblyman, also highlighted the decrease in foreign direct investment during the pandemic.

In March 2021, the Malaysian Investment Development Authority (Mida) said the country recorded RM13.9 billion in net foreign investment in 2020 – a 56% drop from the RM31.7 billion recorded in 2019.

“There has to be an increase in domestic direct investment to compensate for the lack of foreign direct investment,” said Salleh.

“GLCs can play an important role in this.”

He added that investment in sectors that had been badly affected by the pandemic, such as tourism, could help stimulate the sector and prevent some firms from going out of business.

Salleh also said increased domestic investment by GLCs was especially needed considering the government’s limited financial capacity, something, he noted, that was not unique to Malaysia.