GLCs and Shared prosperity
The government has recently indicated its intention to revise and relaunch the Shared Prosperity Vision 2030 (SPV2030) (New Straits Times, 2020), which was unveiled by former Prime Minister Tun Dr Mahathir in September 2019. SPV2030 highlights a number of economic development challenges, including the ongoing income disparity between Bumiputera and other ethnic income groups in Malaysia (PMO, 2019). In this respect, SPV2030 represented a policy continuity with previous economic vision statements and it is likely that any relaunch of SPV2030 will continue to highlight inter-ethnic income disparity. As in previous economic development strategies, it is expected that Government-linked-companies (GLCs) will play a role in achieving the policy goals.
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GLCs and Shared Prosperity
In this Monitor we consider what role Government Linked Companies (GLCs) might be expected to play in delivering “shared prosperity” in Malaysia and specifically, Bumiputera economic development. This Monitor will argue that a clear assessment of previous and ongoing efforts by GLCs is needed and is sorely lacking. Moreover, the scale and reach of the current GLC policies to support Bumiputera development are by their nature limited and should be secondary to broader structural reform, in which GLCs can play a key role and offer a more substantial contribution to shared prosperity.