Tuesday, December 22, 2015

Gov’t has guaranteed RM177.8b worth of GLCs' debts? WHY? GLC not government-owned?

Why is the Malaysian government guaranteeing debts of companies - and these are really not totally owned government companies but GLC's(government linked companies)

What are GLC's? Well, my perusal of the internet, revealed an article that these are companies where the government owned at least 20% of the issued or paid up capital. That means individuals and others could be owning the rest, and benefiting from the GLC status - and the ease of getting loans, for after all the Malaysian government has guaranteed the debt.

GLCs are defined as a company in which the government owns at least 20% of the issued and paid-up capital (Ministry of Finance, 1993) - A posting by 

Who are these GLC companies, and how many percentage of each individual GLC does the Malaysian government really own? Who are these other 'owners'? Malaysians or 'foreigners'?

How much debt of each of these different GLC's has the Malaysian government guaranteed?

Problem with GLCs, is that when they end up having financial problems and losses just like MAS, suddenly it is yet again peoples' money that is used to 'bail out' these failing GLCs - and guess what?... the 'other owners' also benefit? What do they contribute?

A normal company has financial problems, it dies and the shareholders/investors lose out. Share value drops - may even becomes zero. But when it comes to a GLC, are things different? The risk is almost non-existent? Look at how much Khazanah paid to the other MAS shareholders to buy their shares?

When government owns and operates businesses - is it not a conflict? 

Well, businesses are interested in making profits - and for many of them, workers are not partners-in-business but rather mere commodities - human resources - To be oppressed and exploited as much as possible? What becomes important then as we say is 'profits' rather than justice and rights of workers.

Well, would that not explain the erosion of worker and trade union rights in Malaysia? Would that also not explain, the fact that the number of trade unions in Malaysia and union membership have seen a decrease in 2015? See earlier post:-  Union busting in Malaysia - Unions reduced, Union membership declining.

Would that not explain the 'union busting' in Malaysia? Over the years, we have seen the removal of key leaders in trade unions, dismissal of union members, delay in registration of unions, unionist arrested for 'excessive noise' during pickets, etc - and, the response of the Malaysian government was pathetic.

Joint Media Statement:- "Utusan" must respect NUJ leader; call off domestic inquiry

HR Defender WAN NOORULAZHAR - dismisssed for allegedly highlighting worker rights concerns?


MAB delays recognition for flight attendants union(FMT)

Now, some of these cases where freedom of association and worker rights were not respected or promoted have been GLCs, have they not? One would have expected better from government owned or GLCs, and now maybe we can understand...

Government, when they operate through companies, they are also able to escape scrutiny of Parliament, obligations of transparency and accountability, .... in fact, they escape many of the check and balances in place that will apply to government, Ministries, government departments... 

MAS - at the end of the day, no one even took responsibility for its failings,...only the workers suffered. 

Transparency please! Government should be government of the people for the people, and a government for the businesses(GLCs) is a conflict and confusing. 

People of Malaysia has now guaranteed RM177.8b of GLCs debts - but alas, is it not some of these very same GLCs that are charging the people more and more...Why? 

Accountability please - if it is GLCs, then it must be accountable - fully accountable to the people - to Parliament. Auditor General should do annual audits. We also need maybe Parliamentary Select Committees continuing to monitor GLCs to ensure that they are functioning well. No use coming out and telling us after 'the milk is spilled'.  


Gov’t has guaranteed RM177.8b worth of GLCs' debts

Published     Updated     

PARLIAMENT The government has guaranteed RM177.8 billion worth of debts of government-linked companies as at June 30, 2015.

However, a written reply given to Parliament does not name the GLCs, nor the nature of the debts.

The parliamentary reply was to a question from Ngeh Koo Ham (DAP-Beruas) and delivered during the final Dewan Rakyat session of 2015, which concluded this month.

In another written reply to Ngeh, the government stressed that it has not breached its self-imposed debt ceiling of 55 percent of the gross domestic product (GDP).

As at the end of the second quarter, the federal debt stood at RM627.5 billion, or 54 percent of the GDP.

Of that, only three percent, or RM18.8 billion, are offshore debts.

"The government's debt position remains in order and can be categorised as moderate," the written reply says.

Top government bond holders are the Employees’ Provident Fund (RM127.6 billion), the Retirement Fund Incorporated (Kwap) at RM20.3 billion and banks at RM148.8 billion.

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