Reforming Malaysia’s Statutory Bodies and GLCs

Understanding the ‘Big Why’ for Rationalisation

From 2004 to 2015, 20 selected GLCs and government-linked investment companies (GLICs) graduated from a decade-long GLC transformation programme, resulting in high-performing entities that contributed to the nation’s socio-economic growth. Fast forward to today: how many of these GLCs have maintained or enhanced their performance? Furthermore, have the hundreds of other federal and state-level GLCs achieved similar success?

A recent incident underscores the urgency of this rationalisation effort: the prime minister personally intervened to cancel plans by a ministry and an agency to send 68 delegates to an exhibition in Berlin. This serves as a wake-up call, emphasizing the need to address wastage within the government before it leads to larger setbacks.

Learning from Past Experiences

Drawing lessons from previous rationalisation exercises, both domestically and internationally, is essential. War stories from those who have navigated similar transformations can provide invaluable guidance, helping to prevent past mistakes.

Diverse and Competent Teams

The success of rationalisation efforts hinges on assembling a diverse team with strong credentials and expertise. A multidisciplinary approach enriches decision-making by incorporating varied perspectives and innovative solutions to complex challenges. Agencies like TalentCorp can play a pivotal role in assembling a team of dynamic nation builders.

Leveraging Big Data Analytics

Incorporating big data analytics into manpower planning is crucial in today’s data-driven landscape. Advanced analytics tools enable government bodies to conduct rigorous evaluations, facilitating more strategic decision-making. Scenario modelling allows for simulations of various organisational structures, enabling quicker and more accurate assessments of potential outcomes.

Sustainable Transformation

Sustainability is paramount in the transformation process. Frameworks and policies must deliver short-term improvements while fostering resilience and adaptability in an evolving economy. Legacy Acts and laws should not hinder structural changes, as they are often cited as obstacles by certain parties.

Addressing the Human Impact of Rationalisation

Addressing the human element is critical in the rationalisation process. Streamlining operations may lead to redundancies, potentially displacing employees, and the government must handle this transition with care. A poignant example is the massive restructuring exercise of Malaysia Airlines in 2015, which involved cutting approximately 6,000 jobs. While the goal was to stabilise the company and reduce costs, the long-term impact of these cuts remains debated.

Conversely, the affected employees received severance packages and found new jobs, but many faced challenges in the job market and struggled with mental health and financial stability. This underscores the necessity of minimising workforce reductions when possible and providing robust support, including upskilling, reskilling, and adequate severance packages. Streamlining should also target significant operational cost savings.

Conclusion

The rationalisation of statutory bodies and GLCs in Malaysia presents a valuable opportunity to enhance efficiency, accountability, and service delivery within the public sector. For meaningful outcomes, the government must focus on three key elements: the right size of organisations for effective operations, the right shape to avoid top-heavy structures that hinder execution, and the right skills to ensure a competent talent pool capable of driving national progress. In the recent Budget 2025 speech, Prime Minister Anwar Ibrahim announced the rationalisation of eight organisations, signalling an encouraging start. With continued momentum, the government can seize this opportunity to implement reforms that will ultimately benefit all stakeholders.

FAQs

* What is the goal of the rationalisation of statutory bodies and GLCs?
The goal is to enhance efficiency, accountability, and service delivery within the public sector.
* What is the significance of big data analytics in manpower planning?
Big data analytics enables government bodies to conduct rigorous evaluations, facilitating more strategic decision-making.
* How can the government ensure a successful transition during rationalisation?
By minimising workforce reductions, providing robust support, and streamlining operations to target significant cost savings.
* What is the role of TalentCorp in assembling a team of dynamic nation builders?
TalentCorp can play a pivotal role in assembling a team with diverse credentials and expertise.

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