PGG – Good governance key to bettering GLIC’s monetary efficiency

KUALA LUMPUR: The Ideas of Good Governance for Authorities-Linked Funding Firms (PGG) launched at present would be the sole reference for the governance baseline and sustainability practices of all government-linked funding firms (GLICs).

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz stated PGG was primarily based on three principal ideas, particularly management and board effectiveness; making certain an optimum, certified and creditable board composition; and supporting the efficient dealing with of investments.

“To make sure the GLIC is nicely run, PGG emphasizes on the position and duties of the board.

“All administrators should lead by instance primarily based on ideas in addition to responsibility in accuracy, transparency and loyalty,” he stated when launching PGG at present.

Tengku Zafrul stated PGG was a part of the GLIC/Authorities Linked Firms (GLC) Restructuring Program spearheaded by the Ministry of Finance for the previous 18 months, which included, amongst others, the Strengthening Authorities-Owned Funding Establishments Program.

He stated the preparation of the PGG had taken under consideration present developments and discussions on the ideas and practices of finest governance on the native and worldwide ranges, together with the Malaysian Code on Company Governance (MCCG) launched by the Securities Fee Malaysia final yr.

Within the meantime, he stated PGG additionally beneficial the institution of a governance construction for the oversight of environmental, social and governance (ESG) components in future funding methods.

“There’s a wealth of information that exhibits that firms that concentrate on ESG points have managed to scale back prices, enhance worker productiveness, scale back numerous dangers, and create extra enterprise alternatives.

“Moreover, the COVID-19 pandemic has clearly confirmed that company firms which might be at all times prepared and observe good governance have a bonus when it comes to resilience,” he defined.

GLICs encompass six organizations particularly Workers Provident Fund, Perbadanan Nasional Bhd, Retirement Fund (Included), Khazanah Nasional Bhd, Lembaga Tabung Haji and Lembaga Tabung Angkatan Tentera.

The whole belongings beneath the management of those six GLICs are price RM1.7 trillion, making GLICs among the many principal pillars within the nation’s socio-economic improvement. – Bernama


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