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Govt agencies cannot set up companies without top-level approval: PM | Scoop
Prime Minister Datuk Seri Anwar Ibrahim (centre) attending the Finance Ministry's monthly assembly where he also launched the Federal Government Electronic Payment System (iPayment). Also present was Finance Minister II Datuk Seri Amir Hamzah Azizan (left). – Bernama pic, February 12, 2025
News

Govt agencies cannot set up companies without top-level approval: PM

He also announces proposal to streamline several agencies to address overlapping functions, inefficiencies which would be presented at upcoming Cabinet meeting 

Scoop Reporters
Updated
11:30 AM MYT

 

KUALA LUMPUR – Government agencies are not allowed to establish companies under them without approval at the highest level, Prime Minister Datuk Seri Anwar Ibrahim said. 

This directive comes in response to the financial losses recorded by some of these entities.

“I have instructed that no company should be established under an agency without approval from the highest level because thousands of these companies are incurring huge losses,” he said at the Finance Ministry’s monthly assembly. 

He acknowledged that dissolving these companies is not straightforward but emphasised that necessary steps must be taken to uphold institutional reform. 

“However, deciding to cancel these (companies) is not easy, but if it must be done, we must do it. This reflects or gives meaning to what is called institutional reform.”

Anwar also announced that a proposal to streamline several government agencies to address overlapping functions and inefficiencies would be presented at an upcoming Cabinet meeting. 

“I have assigned the former Treasury secretary-general Datuk Seri Asri Hamidon to put forward proposals for streamlining certain agencies before submitting them to the Chief Secretary to the Government. I will make a decision once it is presented at the Cabinet meeting in the near future,” he said.

In September last year, the government established the Secretariat for the Rationalisation Study of Federal Statutory Bodies to curb duplication of roles and reduce uncontrolled spending. The secretariat, which operates under the Finance Ministry, has received Cabinet approval and will begin work immediately as part of ongoing civil service reforms. 

Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar has confirmed that Asri will head the secretariat, leading efforts to optimise the structure and operations of statutory bodies.

Anwar urged the civil service to adopt a proactive approach to implementing government policies efficiently.

“The public service machinery must think and act fast to drive the country’s growth,” he said.

Anwar also launched the Federal Government Electronic Payment System (iPayment), developed by the Accountant General’s Department (JANM), to accelerate the digital transformation of the public sector towards a cashless system.

The event was attended by Finance Minister II Senator Datuk Seri Amir Hamzah Azizan, Deputy Finance Minister Lim Hui Ying, Shamsul Azri, Public Service Director-General Tan Sri Wan Ahmad Dahlan Abdul Aziz, and Treasury Secretary-General Datuk Johan Mahmood Merican. – February 12, 2025

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