This SRI aims to rationalise the Government’s role in business in order to avoid crowding out the private sector, increase the liquidity of the capital markets and improve the Government’s fiscal position.
As part of this SRI, four GLICs were hived off in 2012. This was completed through exercises such as the listing of FGVH, Ekuiti Nasional Bhd’s sale of its 24 per cent stake in Tanjung Offshore Bhd, the sale of the Armed Forces Fund (Lembaga Tabung Angkatan Tentera or LTAT)’s 97 per cent stake in Johan Ceramics Bhd, and the paring down of the Employees Provident Fund’s stake in RHB Capital Bhd.
Divestments under the scope of this SRI also cover rationalisation at the Ministry level, with the Ministry-Level Divestment Plan established in 2012. Following concentrated efforts and rigorous discussions on this initiative nine companies under four Ministries were identified as ready for divestment from 2012-2016.
While market factors have hindered some progress in this SRI, the divestment plan will continue as and when required criteria are met, with the Government remaining committed to facilitating a competitive and open market for Malaysian companies.
It is envisaged that the initiatives that fall under this SRI will return the private sector to the driver’s seat in Malaysia’s journey towards high-income status.