During the UMNO Convention at PWTC, Kuala Lumpur, a Perak delegate proposed that UMNO stalwarts should head GLCs to ensure that qualified Malay entrepreneurs and companies receive projects from GLCs. I doubt whether this is a good proposal.
Firstly, appointing politicians as directors could hamper firm performance. This is due to the fact that most of them do not possess appropriate expertise and skills in strategic goals, firm’s operations and products. Since they know very little about the nature of business of a corporation, what can they contribute to the board decision making? Running a political party is not the same as running a corporation. A corporation must be headed by a person who has the vision to enhance the shareholders’ value of the company. The company must be run with proper corporate governance mechanisms, with accountability, transparency and high integrity.
Since politicians were typically appointed as non-executive directors, they would have limited access to management except during board meetings. As such, their contribution to firm performance raises reservations. I would prefer GLCs be run by professionals who can deliver.
On top of that, tenders and contracts from GLCs cannot be distributed freely to all because only capable, and experienced companies, whether it is a bumi or non-bumi are allowed to make bidding.
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