Ministerial approval now needed for GLC and GLIC benefits, says Fadillah

All benefits, trips, and bonuses for government-linked companies (GLCs) and government-linked investment companies (GLICs) must now receive 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, now all GLCs and GLICs will 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 on Thursday (Nov 7).

This follows recent reports that the GLC Pelaburan Hartanah Bhd (PHB) awarded its chief executive officer a substantial three-month salary “bonus” of RM210,000, despite the company achieving only 42% of its key performance indicators (KPIs).

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

Fadillah explained that the chief executive officer’s “bonus” was actually a special payment similar to an incentive.

He added that 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 said.