The role that state-owned enterprises (SOEs) or, more generally, government-linked corporations (GLCs) play in the Malaysia economy is widespread and pervasive. In terms of countries that have the highest SOE presence among their largest firms, Malaysia ranks fifth highest in the world.2 The Economic Transformation Program (ETP) has called for a reduced role of government in business, and a program of divestment was concluded in 2015.

The government was quick to claim the program a great success, citing its record of having divested itself of 33 out of 34 unidentified GLCs. Despite this apparent achievement, all other indicators point to an increased role of government in business over this period. Not only did the share of GLCs in the Kuala Lumpur Composite Index (KLCI) of the stock market increase significantly, asset acquisitions greatly outstripped asset disposals over the period 2009 and 2015. It does seem that GLCs are alive and well in Malaysia today.