The Institute for Democracy and Economic Affairs (IDEAS) also panned a proposal by Bandar Kuching MP Dr Kelvin Yii for all major GLC and GLIC investments or financial statements to be presented and discussed in Parliament.

Earlier this month, deputy prime minister Fadillah Yusof announced that benefits, trips and bonuses for GLCs and GLICs must receive ministerial approval. He said it is a mandatory requirement under a new policy decided by the Cabinet.

“IDEAS does not support the Cabinet or Parliament directly approving GLC investment or remuneration decisions, as this may worsen political interference,” its senior research manager, Alissa Rode, said.

“Instead, the government should act as an active owner, setting guiding policies for board remuneration and well-defined performance charters.”

In a statement, IDEAS recommended a five-point reform framework, which includes the firms being required to establish performance charters with quantifiable objectives for social and economic impact, subject to annual public reporting akin to the standards of listed companies.

It also called for GLCs and GLICs to enforce qualified independent appointments and conflict of interest policies in a bid to enhance transparency.

IDEAS said GLCs and GLICs must also clearly state their purpose and support the establishment of an independent ombudsman for the safe reporting of misconduct.

It said Parliament should serve as the primary oversight body, with MPs fulfilling their roles in parliamentary select committees rather than accepting board positions in GLICs.

This would strengthen the separation of governance and oversight, empowering MPs to keep GLICs accountable to the public.

Yii’s proposal was made in light of the Malaysian Anti-Corruption Commission’s investigation into the RM43.9 million loss suffered by Khazanah Nasional Bhd and Permodalan Nasional Bhd from their investment in e-commerce platform Fashion Valet Sdn Bhd.