The National Economic Advisory Council (NEAC) was set up by the Prime Minister of Malaysia in May 2009 with a mandate to formulate a New Economic Model (NEM) that will transform Malaysia into a high income economy by 2020.
The NEAC published a two-part report outlining the strategic directions as well as the necessary policy measures that are aimed at promoting Malaysia's growth in an inclusive and sustainable manner. Under Government's Role in Business, five key outputs were identified that are strongly linked to the four policies recommended by the NEAC.
NEAC Recommendation 1: Re-engineer GLCs to support the private sector
- Key Output 1: Separation of Regulatory from Business Role
Regulatory work will be done by an independent entity, leaving the original entity to focus entirely on business.
- Key Output 2: Situations for Government Involvement in Business
E.g.:
- Private Investor needs Co-Investor
- Business must be owned domestically
- Large growth capital, catalytic or new technology required, and
- Investment must relate to national infrastructure
NEAC Recommendation 2: Divest non-strategic companies & re-engineer the roles of the remaining GLCs
- Key Output 1: The 'White Room' that Cover Privatisation/ Divestment programmes
- Key Output 2: Monitoring the Universe
Particularly for the Ministry and State Incorporated Companies via GMU.
NEAC Recommendation 3: Set up a Central Oversight Authority
- Key Output: Monitoring the Universe
Particularly for the Ministry and State Incorporated Companies via GMU.
NEAC Recommendation 4: Channel proceeds from divestment into a Sovereign Wealth Fund
- Key Output: Management of Divestment Proceeds
Defines where the proceeds to be channeled.
2012/01/11