Hamzah warns Putrajaya against 'slaughtering golden goose' with GLC, GLIC demands

 

PARLIAMENT | Opposition leader Hamzah Zainudin (PN-Larut) has warned Putrajaya against over-relying on GLCs and government-linked investment companies (GLICs) to fund its initiatives.

Invoking the fable of the goose that laid golden eggs, Hamzah said the government should not burden these entities with projects that could undermine their financial sustainability, particularly when the initiatives fall outside their core objectives.

He singled out the Retirement Fund Incorporated (KWAP) and Petronas, questioning their proposed involvement in housing development projects when debating Budget 2027 today.

“KWAP’s objective is to grow its funds to ensure it can meet its future obligations, including paying pensions to eligible pensioners.

“So why ask KWAP to build this hostel? What is the return on investment? Sometimes, I really wonder,” he said.

In the Budget 2027 proposals tabled by Prime Minister Anwar Ibrahim on Friday, the government announced that KWAP would invest RM750 million in a project called Vista Kampus to build student residences at six selected universities.

The government also announced that Petronas had begun developing affordable housing on a 10-acre plot in Kuala Lumpur, part of a 50-acre site gazetted as Malay Reserve Land.

Hamzah questioned why the national oil company was venturing into affordable housing, quipping that it appeared to have shifted its core business from petroleum to property development.

Losing confidence

Hamzah also criticised the government’s move to have Tenaga Nasional Berhad (TNB) absorb an estimated RM150 million in losses following the expansion of electricity bill protection to households consuming up to 800 kilowatt-hours (kWh) a month.

The move came amid complaints about sharp increases in electricity bills, with the government widening the subsidy coverage to cushion the impact on affected households.

Hamzah said that while the amount might be relatively small for an electricity giant like TNB, the announcement had prompted shareholders to sell their shares in the company.

“Coming back to what I saw today in the budget tabled by Tambun MP (Anwar), there is far too much reliance on GLCs and GLICs. Petronas, TNB, Employees’ Provident Fund, KWAP, and Khazanah (Nasional Berhad) have all been tapped extensively.

“I want to remind everyone of the story of the goose that laid golden eggs. Its owner was impatient with getting just one egg a day, so he slaughtered the goose to take all the gold at once.

“In the end, the owner was the one who suffered the loss. But more importantly, future generations of Malaysians will face even greater difficulties than what we are experiencing today,” he said.

Later, Backbencher’s Club chairperson Dr Zaliha Mustafa (Harapan-Sekijang) argued that there is “nothing wrong” with the government backing efforts by GLICs and GLCs to contribute to the rakyat’s betterment.

The former health minister also utilised the analogy detailed by Hamzah, saying: “If we look at previous governments, there were indeed many geese that laid golden eggs, but those eggs were put in their own pockets.

“That is wrong, and I don’t agree with that, but if (such funds) are used for the rakyat, I think it should be supported,” Zaliha (above) said in her debate speech.

Similarly, Syahredzan Johan (Harapan-Bangi) also said he was “shocked” to hear Hamzah’s criticism of the government’s move to expand electricity bill protections.

“The opposition leader should have welcomed this move because this measure will and has benefited the majority of the rakyat,” the DAP MP asserted.

“While TNB may indeed incur a slight loss, that loss is absorbed so that the people can benefit from controlled or manageable electricity bills that are not too high.

“I think if that golden goose gives golden eggs, what is wrong if those eggs are shared with the people?” he questioned in an interjection to Zaliha's debate.

Syahredzan’s fellow DAP lawmaker, Howard Lee (Harapan-Ipoh Timur), queried whether Hamzah’s opposition to GLIC and GLC funding means the Wawasan Negara president intends to “cut civil servants’ salaries, reduce doctors and nurses, or cut cash assistance”.

“Otherwise, where is the extra money he wants to spend coming from? Loans? Enough with politics, we want to rebuild our country back to something more constructive,” Lee said while debating the budget.

GST return

Meanwhile, Hamzah also criticised the government for its reluctance to reinstate the goods and services tax (GST).

Referring to Anwar’s recent proposal for a hybrid taxation system combining GST and the existing sales and service tax (SST), Hamzah claimed the government had realised its mistake in opting for SST over GST but was too embarrassed to admit it.

“The simplest way is to reintroduce GST. Just determine the rate. There’s no need to be embarrassed about it.

“Why be embarrassed? Sometimes in life, if we’ve made a mistake, we should admit it.

“If we’ve done something wrong in the past, we should apologise,” he said. - Mkini