Kuala lumpur: The government is actively working on drafting an act concerning government-linked companies (GLCs) to enhance corporate governance, improve accountability, and optimize performance, as disclosed by the Finance Ministry (MOF).

According to BERNAMA News Agency, this initiative is crucial for improving financial administration to be more organized and for ensuring the country's development potential. The government is also committed to implementing institutional reforms that bolster the national development agenda, including the drafting of the Government Procurement Bill, aimed at improving governance and the procurement process. The Government Procurement Bill was passed on Thursday.

The ministry's announcement was in response to an inquiry from Tan Sri Mahiaddin Mohd Yassin (PN-Pagoh) regarding the MADANI government's strategies to manage debts and liabilities, which have reached RM1.34 trillion, or 64 percent of the gross domestic product (GDP). The inquiry also touched on government measures under the Public Finance and Fiscal Responsibility Act to stabilize the increasing national debt.

MOF highlighted that several control measures are being executed to address the rising debt and liabilities. These measures include continuing fiscal consolidation efforts, expanding the revenue base, optimizing public spending, setting financial guarantee exposure limits, and evaluating the implementation of off-budget projects.

Furthermore, strategic government initiatives such as the National Energy Transition Roadmap (NETR), the New Industrial Master Plan 2030 (NIMP 2030), and the Government-Linked Companies Empowerment and Reform Programme (GEAR-uP) are anticipated to boost economic activity. These initiatives are designed to strengthen government revenue, thereby reducing dependence on borrowing.