KUALA LUMPUR, 16 January 2020 – The Institute for Democracy and Economic Affairs (IDEAS) endorses the Cabinet decision to not sell PLUS Malaysia Bhd.
In a statement issued today, IDEAS said that it is imperative on the part of the government as guardian of national assets to produce and communicate a comprehensive Divestment Policy Framework in order to encourage policy clarity and certainty.
“The framework should also fully consider the implications of GLC reforms, which may entail asset sales, to the broader socio-economic dynamics,” IDEAS stated.
According to IDEAS, since Prime Minister Tun Mahathir’s divestment talk, the ongoing speculation about sales of national assets, including PLUS before this, raises concerns of transparency and governance, and this does not inspire public confidence.
IDEAS believes this is due to an absence of a clearly laid out framework for government-linked companies (GLC) reform, which should also include divestment.
“A transparent divestment process should be in place before the government engages in privatisation”, said Ali Salman, CEO of IDEAS.