Kuala lumpur: The government is open to government-linked companies (GLCs) taking calculated losses in strategic sectors such as the digital economy and artificial intelligence (AI), provided there is transparency, good governance, and clear policies. Prime Minister Datuk Seri Anwar Ibrahim emphasized that losses are not the main concern if the investments are pivotal for the country's future economic development.
According to BERNAMA News Agency, Anwar stated that while commercial returns remain essential, strategic investments in technology and new ventures must be pursued carefully and judiciously. The government should not be overly fearful of taking risks in these areas. He remarked, 'As long as it is transparent, good governance, clarity (of) policies, the issue of loss is not the question,' at the Forum Ilmuwan Malaysia MADANI Siri 12 at the Securities Commission (SC).
Finance Minister II Datuk Seri Amir Hamzah Azizan, Securities Commissioner Malaysia chairman Datuk Mohammad Faiz Azmi, and Higher Education Minister Datuk Seri Dr. Zambry Abd Kadir were present at the event. Anwar, who also serves as the Finance Minister, highlighted the government's major efforts to combat corruption and strengthen governance to address long-standing structural issues.
He pointed out that decades of corruption, abuse of power, and weak governance had deprived poor and marginalized communities of opportunities. The government is now working to rectify these issues through better governance, education reforms, and targeted policies. Anwar acknowledged the challenges faced in reform efforts due to resistance from groups accustomed to the old system, including some political allies.
Additionally, Anwar addressed concerns over Malaysia's reliance on more than two million foreign workers, emphasizing the need to reduce dependence on cheap foreign labor to advance up the economic value chain. The government is expanding training through TVET institutions, universities, and colleges to strengthen the local workforce, while engaging industries to remain competitive without excessive reliance on low-cost foreign labor.
Meanwhile, Amir Hamzah shared insights into Malaysia's capital market transformation agenda, focusing on converting capital into long-term capability by strengthening economic foundations and activating domestic pool investments. The agenda aims to enhance Malaysia's investability, technological and industrial capabilities, and enable growth from individual investments into ecosystem and regional platforms.
He stressed the importance of trust in building a strong foundation, stating, 'Without a good set of foundations, nothing can be built. Trust is important because when trust is embedded, it becomes easier for capital to help build a country.' The government is also ensuring small and medium enterprises are supported through microfinancing schemes, credit guarantees, and housing financing support.
Amir Hamzah cited investments in advanced semiconductor packaging, AI, data centers, and the electrical and electronics sector as examples of Malaysia's efforts to move further up the value chain. 'Malaysia has to continue strengthening its ecosystem, capabilities, and talent base so that investors not only come here but remain and grow here,' he concluded.