Why is ministerial approval now required for GLC bonuses?

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Ministerial Approval Mandated for GLC and GLIC Bonuses and Incentives

Ministerial approval is now a prerequisite for bonuses, incentives, and company trips for all government-linked companies (GLCs) and government-linked investment companies (GLICs). This policy change was instituted by the Cabinet as a measure to enhance oversight of their expenditures. The new directive requires these entities to submit proposals for such expenses to the relevant ministry for prior approval.
Cabinet Decision to Monitor Spending

The Cabinet made the decision to implement this new policy, aiming to provide a more direct mechanism for monitoring the financial outlays of GLCs and GLICs. Previously, the Cabinet's oversight typically focused on ministries, departments, and government agencies. This expansion of oversight signifies a broader effort to ensure fiscal prudence across all government-linked entities.
Response to Public Scrutiny of PHB

The announcement by Deputy Prime Minister Datuk Seri Fadillah Yusof followed reports concerning an alleged company retreat by Pelaburan Hartanah Berhad (PHB) to Bali. PHB, a real estate investment company under the Finance Ministry, faced scrutiny after meeting minutes purportedly leaked online indicated significant bonuses for its chief executive officer, despite the company achieving only 42 per cent of its targets. These reports also suggested a planned company trip to Bali for employees.
Process for Proposal Submission

Under the revised policy, GLCs and GLICs must now formally present proposals for any bonuses, incentives, company trips, or similar expenses. These proposals will undergo a review and approval process by the relevant ministry before any expenditure can be authorised. This structured approach is intended to ensure that all such discretionary spending aligns with government objectives and fiscal responsibility.

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Why is ministerial approval now required for GLC bonuses?

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