The Malaysian Bar acknowledges and welcomes the Government’s ongoing efforts to strengthen governance, performance and accountability across government-linked companies (“GLCs”) and government-linked investment companies (“GLICs”),1 and to position Malaysia as a modern, competitive and well-governed economy.
In practice, Malaysia functions as an enterprising State. The State participates actively in commercial activity, manages national assets and partners with the private sector to deliver economic outcomes through GLCs, statutory bodies and public investment institutions. The Government’s continued focus on governance reform reflects an important recognition that the State’s economic participation must be accompanied by strong legal discipline and institutional accountability.
Over the years, governance enhancements implemented across GLCs and GLICs, including clearer shareholder stewardship, more robust boards, performance-based accountability, procurement discipline, and enhanced risk and integrity frameworks, have had a demonstrable and positive impact. These measures have contributed to improved financial performance, stronger investor confidence, reduced leakage and greater resilience. International experience similarly shows that well-governed state-linked enterprises are more profitable, more trusted and better insulated from corruption and inefficiency.
The Malaysian Bar supports any structured roadmap that builds on these reforms by placing State commercial activity within a clearer and more coherent legal framework. Clear laws do not constrain enterprise — they enable it. A principled and transparent framework strengthens the rule of law, provides certainty to markets and investors, and ensures that public resources are managed prudently for the long-term benefit of the nation.
Such an approach also enhances governance and compliance. Clearly defined mandates, uniform standards and effective oversight reduce the risk of non-compliance, abuse of discretion and bribery. They ensure that accountability is institutional rather than ad hoc, and that enforcement is consistent, predictable and fair.
In particular, a legal framework helps preserve proper order within the system by maintaining clear distinctions between policymaking, regulation, ownership and commercial operation. This separation is essential to protect competition, avoid conflicts of interest and sustain public trust.
Economic growth and the rule of law are not competing objectives. They are mutually reinforcing. Malaysia’s experience, and that of leading international jurisdictions, demonstrates that profitability, integrity and public confidence rise together when governance is clear and accountability is real.
The Malaysian Bar therefore supports the Government’s direction towards strengthening and consolidating the governance of State commercial activity. It affirms that any roadmap grounded in clear laws, transparency and accountability will advance not only economic growth, but also institutional credibility and the long-term public interest.
Mohamad Ezri b Abdul Wahab
President
Malaysian Bar
12 March 2026
1 “Tinjauan Fiskal dan Anggaran Hasil Kerajaan Persekutuan” / “Fiscal Outlook and Federal Government Revenue Estimates”, Ministry of Finance, Malaysia, 2026; Thirteenth Malaysia Plan 2026–2030: “Melakar Semula Pembangunan”, Economic Planning Unit, Prime Minister’s Department (2025).