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:
A three-pronged approach will be taken to attain these goals:
- Avoid crowding out the private sector;
- Increase the liquidity of the capital markets; and
- Improve the Government's fiscal position.
- Clearly establish the Government's role in business;
- Develop a clear divestment plan for Government-linked investment companies (GLICs); and
- 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
- During the year, Khazanah Nasional Bhd disposed all its holdings, worth nearly RM293.5 million, in mobile phone operator DiGi.com 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.