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.


  • 32 companies have been divested as at December 2014. Of these:
    • Ekuiti Nasional Bhd (Ekuinas) divested its entire stake of 61.6% in Konsortium Logistik Bhd to KL Airport Services Sdn Bhd.
    • Ekuinas unlocked value through the IPO of Icon Offshore Bhd.
    • Ekuinas also sold all its holdings in Rancak Selera Sdn Bhd, the Burger King franchise-holder for Malaysia and Singapore, for RM95 million.
  • At the Ministerial level:
    • The Ministry of Finance Inc divested three companies in its portfolio: Jaring Communications Sdn Bhd, aviation component manufacturer Composites Technology Research Malaysia Sdn Bhd and Penang Port Sdn Bhd.
    • The Ministry of Works liquidated Steel Frame & Truss Technology Sdn Bhd and CIDB Events Management Sdn Bhd.
Economic Transformation Programme
The ETP Transformation Story
The Economic Transformation Programme (ETP) is a comprehensive effort that will transform Malaysia into a high-income nation by 2020.
Copyright © 2013 Performance Management & Delivery Unit (PEMANDU)