'3 GLCs suffered losses due to external factors'

THREE government-linked companies owned by Khazanah Nasional Bhd incurred losses between 2005 and 2009, Datuk Seri Najib Razak told the house yesterday.

Without naming the GLCs, the prime minister said they suffered losses due to the challenging business environment, consistent with the global trend of rising oil prices, poor demand for products as well as other external factors.

"External factors are beyond our control. Therefore, it's not fair to take action against the GLCs' board of directors for losses suffered.

"Furthermore, the three GLCs bounced back with better financial results in subsequent years," said Najib, who is also Finance Minister, in his written reply to Er Teck Hwa (DAP-Bakri).

Er wanted to know how many GLCs suffered losses since 2005, action taken against their board of directors and the financial bailout by the government.

Najib said the three GLCs did not receive any financial bailout from the government.

"Instead, any assistance extended was in the form of incentives as provided for under the GLC Transformation Programme guidelines and government policies," he said. -- Bernama

New Straints Times · 25.06.2010

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