Reducing Government’s Role in Business (GRiB)
Supporting Policies

Reducing Government’s Role in Business (GRiB)

The Reducing Government’s Role in Business (GRiB) Strategic Reform Initiative (SRI) aims to rationalise the Government’s role in business to achieve three main goals:
  1. Avoid crowding out the private sector;
  2. Increase the liquidity of the capital markets; and 
  3. Improve the Government's fiscal position.

Reducing Government’s Role in Business (GRiB)

A three-pronged approach will be taken to attain these goals:
  1. Clearly establish the Government's role in business;
  2. Develop a clear divestment plan for Government-linked investment companies (GLICs); and
  3. Establish clear governance guidelines for Government/Ministry and State-owned companies.

The Government’s GLIC divestment plan commenced in 2011 by identifying 33 GLICs as ready for divestment – five were identified for stake pare-downs, seven for public-listing and 21 for outright sale. 24 of these companies were identified for divestment in 2011-2012.

Through this SRI, the Government will also gradually evolve its role in business from investor to facilitator, using these guidelines for Government participation in the private sector:
  • Co-investing with the private sector in projects that will boost GNI, such as in the Regional Economic Corridors.
  • Being involved only in businesses directly related to issues of national security, such as defence and food security.
  • Limiting investments to businesses that involve large capital investments, require long gestation periods, such as nano-technology, and which are deemed strategic businesses or of national interests.
  • Participating in national infrastructure projects such as renewable energy and public transport systems.


  • During the year, Khazanah Nasional Bhd disposed all its holdings, worth nearly RM293.5 million, in mobile phone operator Bhd.
  • In June, the Ministry of Youth and Sports divested Stadium First Sdn Bhd, a subsidiary of Stadium Malaysia Corporation through an open tender process.
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