Wan Hassan Ramli (PN-Dungun) was referring to former employees of government-linked companies (GLCs) such as Telekom Malaysia Berhad, Pos Malaysia Bhd, Tenaga Nasional Bhd (TNB) and Keretapi Tanah Melayu Berhad (KTMB).

He said many of these pensioners receive less than RM200 a month and are forced to look for other sources of income.

“I urge the government to consider increasing their monthly pension rate to at least RM500 a month,” he said while debating the Supply Bill 2023 today.

In March 1983, the Malaysia Incorporated Policy (MIP) was introduced in hopes of alleviating the government’s financial burden.

From the 1970s to 1980s, the economy was significantly dominated by public sector entities as a large number of public enterprises were created to promote the participation of Bumiputeras in the economy under the New Economic Policy (NEP).

As government intervention in the economy increased, the size and the scope of the public sector grew, which led to a corresponding hike in public sector expenditure and debts over gross domestic product (GDP).

The exceptionally high expenditures and debts, coupled with the world economic recession in the early 1980s, had resulted in a dramatic decline in Malaysia’s economic growth rate.

As a result, the Malaysian government was forced to look at its public spending and implement ways to optimise the situation, with privatisation being chosen as the most appropriate and suitable solution.