1Malaysia Development Bhd (1MDB) is not a representation of Malaysia's overall corporate and public governance as the country has produced well-run government-linked companies (GLC), Second Finance Minister Datuk Seri Johari Abdul Ghani said.
Johari said while the government admitted that 1MDB had exhibited a wrong business model besides weak management and poor governance, the government was addressing 1MDB's issues.
"With regards to 1MDB, we openly admitted that this is an issue of wrong business model, weak management, poor governance and the PM (Prime Minister Datuk Seri Najib Tun Razak) acknowledged that. We are in the process of taking the elephant out of the room.
"To say that the government doesn't have (good) governance is not right, because we have been producing for (the last) number of years international and regional companies that originated from Malaysia," he said.
Johari said this here today during a panel discussion entitled Spotlight on Malaysia's Fundamentals at Invest Malaysia Kuala Lumpur.
CIMB Group Holdings Bhd, Tenaga Nasional Bhd, Telekom Malaysia Bhd and PLUS Malaysia Bhd are examples of well-run Malaysia GLCs, according to Johari.
Johari said these successful GLCs could be seen as proofs that the government was actually practising effective corporate and public governance.
"Some of the other GLCs are actually well run. CIMB for example, look at Tenaga, Telekom and PLUS. These are all good companies under Khazanah Nasional Bhd that are well run, they don't need government help on this (corporate governance).
"It's just that one or two (GLCs) that we overlook on certain aspects of it and (now) we relook and analyse, finally we recognise that governance needs to be stronger," Johari said.- theedgemarkets.com