GLIC, GLC must be conscious of their role in the economy: Zeti

Government-Linked Investment Companies (GLICs) and Government-Linked Companies (GLCs) must be conscious of their role in the economy, as well as the need to evaluate their priorities in order to drive and achieve the sustainable growth agenda.

Permodalan Nasional Berhad (PNB) group chairman, Zeti Akhtar Aziz (above) said the corporate sector has a key role in achieving this agenda, particularly having greater cooperation in keeping with international trends.

“In this highly dynamic environment. corporate Malaysia needs to be well-positioned to build the potential to rise up to face the complex challenges that this environment brings, to ensure sustainability to support the progress and development of our nation," she said in her welcoming speech at the inaugural PNB Corporate Summit 2019.

Zeti said the economic and financial landscape is dramatically changing, whereby geopolitical and social developments now have economic and financial implications, while the rapid advancement in technology is also having a transformative effect.

Additionally, she said climate change and aspects of the environment are also having an economic and financial impact.

Commenting on the external environment, she said there has been some moderation in global growth. However, conditions are projected to improve next year as evident by the recovery in several emerging markets and developing economies.

Zeti said although the expectation is for global growth to improve, the downside risks remained on the horizon, considering unfavourable geopolitical development, increased uncertainties and heightened financial market volatilities.

“Although this has cumulatively affected business confidence, recent indications show that these adverse conditions may be receding, thereby increasing the prospects for improved performance.

“Against this challenging global backdrop, the Malaysian economy continued to expand at a reasonable rate supported mainly by domestic demand and it remained an attractive investment destination with significant improvement in the approved investment in the first half this year,” she said.

For the public sector, she said there is a need to strengthen the education system as this would support the future growth and transformation that is being envisaged, as well as strengthen its financial position.

“While the sector is not in the condition of debt distress, the prevailing condition limits the greater potential for the role of fiscal policy,” she said.

The one-day summit, themed ‘Rebooting Corporate Malaysia’ is organised by PNB Research Institute Sdn Bhd, the wholly-owned research arm of PNB.

The summit, opened by the Prime Minister Dr Mahathir Mohamad, was aimed at creating a trigger point for the transformation of corporate Malaysia by bringing together local, regional and international perspectives and insights.

- Bernama