KUALA LUMPUR: The government should step up efforts to divest its equity stakes in government-linked companies (GLCs) as a move to help replenish the nation’s coffers, said Affin Hwang Investment Bank Bhd’s head of retail research Datuk Dr Nazri Khan.
He pointed out that GLCs employ only 5% of the Malaysian workforce, but accounts for almost 40% of the market capitalisation of the local stock market.
“Under its transformation programme, the government has to do some divestments. We would like to see more concrete progress in the divestment of GLCs, which would help the government’s coffer at this point in time,” he told the media on the sidelines of the “18th Malaysia Strategic Outlook Conference 2016 on Coping with Uncertainty — The Way Forward in Difficult Times yesterday”.
Commenting on the local stock market, he said, “The situation is unfavourable at this juncture, as the ringgit continues to fall, oil prices hovering near US$27 (RM116) per barrel, while we continue to see capital flight.
