PETALING JAYA: An academician has called on the state governments to dissolve state investment arms, the Mentri Besar Incorporated (MBI) and Chief Minister Incorporated (CMI).
Prof Edmund Terence Gomez from University Malaya’s (UM) Faculty of Economic and Administration said the state government should instead utilise the state economic development corporation (SEDC) which is more transparent, accountable and in coordination with the federal government.
The SEDC, which was established in the 1960s, has a direct link with the federal government through the Economic Planning Unit (EPU).
A representative of the federal government would also sit in its board of directors, according to him.
“CMI (and MBI), in some cases, do not have a board of directors and seems to be directly under the control of the Chief Minister (or the Mentri Besar),“ he told reporters on the sideline of the Malaysian Economic Convention 2019 here today, where he appeared as one of the panellists.
Unlike the SEDC which is under bureaucratic control, the administration of CMI and MBI comes under political control and devoid of any federal links, he said.
Furthermore, the CMI and MBI also executed tasks similar to the SEDC, added the academician.
Therefore, the state government according to him should take steps to abolish CMI and MBI and revamp the SEDC to ensure it is more progressive and align with the objectives of the federal and state government.
Edmund also urged the government to stop using government-linked companies (GLCs) as a political tool to consolidate support.
“We said that politicians should not lead GLCs, but we keep on hearing that politicians are appointed as directors of the GLCs,“ he said.
Political intervention in GLCs according to Edmund, would limit its potential to grow.
Themed “Malaysia in Reform: Building Capacity, Digitalisation and Governance”, the two-day event discusses various issues on the development of Malaysia including opportunities and challenges. — Bernama
