Cronyism threatens Malaysia’s economic recovery, Muhyiddin warned

Name: Mahathir Mohamad on Malaysia’s politics, US-China relations and the pandemic
Uploaded: 2020-08-17T00:15:10.000Z
Duration: 28 min 52 s
Description: Mahathir Mohamad on Malaysia’s politics, US-China relations and the pandemic

A slew of political appointments to top jobs in government-linked companies since the Perikatan Nasional came to power has sparked claims of cronyism

Critics say the coalition is trying to shore up support after losing its key component party Umno – and that in the end, it’s the poor who will suffer

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Malaysian Prime Minister Muhyiddin Yassin. Photo: DPA

Tashny Sukumaran

Published: 8:15am, 17 Aug 2020Updated: 1:57pm, 17 Aug 2020

A slew of political appointments to top jobs in government-linked companies could compromise Malaysia’s recovery from the economic ravages of the coronavirus, analysts warn.

In recent weeks, 15 politicians have been appointed to government-linked companies – or GLCs – under the Finance Ministry, while a further two have been appointed to statutory bodies under the same ministry.

Critics say the appointments are aimed at shoring up support within Prime Minister Muhyiddin Yassin’s fragile Perikatan Nasional ruling coalition, pointing out that the politicians are replacing technocrats put in place by its predecessor, the Pakatan Harapan.

With many of these technocrats only halfway through their tenure, critics say the effect has been to undermine the companies’ policies.

However, Finance Minister Zafrul Abdul Aziz has defended the appointments, telling parliament they would “act as a check and balance mechanism, to ensure [the companies] are in line with government policies and aspirations”.

“Political appointments are expected to balance out corporate needs, which are more profit-oriented while fulfilling the [people’s] expectations,” he said. He declined to disclose their salaries.

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Mahathir Mohamad on Malaysia’s politics, US-China relations and the pandemic