Friday, June 18, 2010

Mukhriz: GLCs should focus on core businesses

KUALA LUMPUR: Government-linked companies (GLCs) should focus on their core businesses instead of diversifying too much into other businesses which should be run by the private sector.

Deputy Minister of International Trade and Industry, Datuk Mukhriz Mahathir on Wednesday, June 16 urged GLCs to create a win-win situation and also help realise the government's aspiration of creating entrepreneurs who will enhance the country's economy.

GLCs are well capitalised and they should focus on their core business, he told reporters after his closing address at a seminar entitled "Bumiputera Entrepreneur Development In The Context of the New Economic Model".

The GLCs are better off going for collaborations with the private sector for their non-core businesses, he said.

"In some instances, we find that they (GLCs) may decide to embark on businesses that ought to be handled by SMEs (small and medium sized enterprises). Even if they want to get into the upstream or downstream activities, it may be better for them to obtain the cooperation of the private sector and support them instead," he said.

He said that was one way how the high TECHNOLOGY [] firms could contribute not only to the GLCs but also toward economic growth indirectly.

"I believe that GLCs have an important role to play in this and they have the capacity to do so."

Mukhriz also hoped that GLCs would not set too stringent rules or impose extra conditions for local companies that have yet to establish their names in the business in preference over those that are already established or from overseas.

"While acknowledging foreign firms, please give due attention also to the local firms such as not imposing extra conditions," he stressed.

Mukhriz also called on Bumiputera producers of goods to start looking at markets outside of the country.

As of 2008, only 1,430 Bumiputera companies registered with the Malaysia External Trade Development Corporation (Matrade) have shown interest and the capacity to export their products, he said.

Besides the GLCs, nongovernmental organisations, business chambers and associations should play their role in expanding to the overseas markets, he said. ' Bernama


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