KUALA LUMPUR: All benefits, trips and bonuses for government-linked companies (GLCs) and government-linked investment companies (GLICs) must now obtain ministerial approval, says Datuk Seri Fadillah Yusof.

The Deputy Prime Minister said this is a mandatory requirement under a new policy decided by the Cabinet.

“Usually, the Cabinet oversees these aspects only for ministries, departments and agencies.

“However, all GLCs and GLICs will also need to produce proposals for such finances in the future.

“This includes anything related to bonuses, incentives trips, and more. This is the process,” he told the Dewan Rakyat yesterday.

Fadillah was responding to Datuk Mas Ermieyati Samsudin (PN-Masjid Tanah), who asked for an explanation on the reported “bonus” of RM210,00 given to Pelaburan Hartanah Bhd’s (PHB) chief executive officer.

The GLC came under scrutiny for awarding its chief executive officer a three-month salary bonus despite the company achieving only 42% of its key performance indicators.

It had also reportedly planned an overseas holiday for its employees, which was scrapped after it became public knowledge.

PHB is a real estate investment company that is a wholly-owned subsidiary of Yayasan Amanah Hartanah Bumiputera, which is tasked with creating wealth for the bumiputra community through property investment.

Elaborating on the PHB issue, Fadillah said the CEO’s “bonus” was actually a special payment similar to an incentive.

He said the payment was given due to the successful implementation of a long-term plan that helped the company achieve increased profits in 2023.

“The company’s gross profits rose to RM220.8mil in 2023, up from RM213.7mil in 2022.

“This was after PHB implemented a corporate transformation initiative as a basis for long-term growth.

“This is why an incentive was paid, not as a bonus but due to the achievements,” he added.

On Oct 22, Prime Minister Datuk Seri Anwar Ibrahim had told the Dewan Rakyat that loss-making and poorly managed GLCs would no longer enjoy hefty bonuses.

He said he had to put his foot down to stop such practices involving such GLCs, adding that for a long while, these bodies assumed it was normal to get between six and eight months’ bonus.

https://www.thestar.com.my/news/nation/2024/11/08/ministerial-approval-a-must