In a statement, the Institute for Democracy and Economic Affairs (IDEAS) said the prime minister was effectively saying that public roles could be handed out “like political souvenirs rather than earned through merit and competence”.

“Political appointments are not favours to be exchanged. They are positions of public trust that carry real responsibility.

“Whether or not appointees come from political backgrounds, all such appointments must be based on merit, integrity, and professional experience.

“Only through a transparent and performance-driven process can we ensure that our public institutions are led by individuals who can serve the people effectively,” its CEO Aira Azhari said.

Speaking at the PKR national congress on Saturday, Anwar said political appointments made by a government to qualified individuals did not constitute an abuse of power.

He said such appointments were a “reward” that individuals deserved for their service and contributions to the success of the political party that eventually formed the government.

Umno Youth chief Dr Akmal Saleh praised Anwar for his remarks, saying on Sunday that the government finally “understood’ Barisan Nasional’s way of doing things.

However, IDEAS said that state-owned enterprises carried significant fiscal risk, and that even a handful of poorly governed institutions could cause serious economic damage.

It said appointing capable, ethical, and experienced directors was not just good practice, but an economic necessity.

“While there are political realities the prime minister must deal with, transparency, accountability and good governance are not principles that can be compromised,” Aira said.