KUALA LUMPUR (March 19): There will be no more appointment of politicians as heads of mission for Malaysia or government-linked companies (GLCs), Prime Minister Tun Dr Mahathir Mohamad said.
"The Ministry of Finance is preparing a clear guideline on the criteria in the appointment of Chairmen and Board of Directors in GLCs and subsidiary companies. Only those capable, with integrity and high moral values will be selected to lead these entities," he said at the Invest Malaysia 2019 forum today.
"Those who are in the wrong will be removed," Dr Mahathir added.
"The Prime Minister's Office is also finalising the Guidelines on Remuneration of Directors and Key Senior Management of Government Entities. We find that some of the remuneration packages are obscenely high. From now on, rewards will be based on performance," he said.
Dr Mahathir stressed that adequate pay was also important in the private sector, urging all business leaders in the room to adopt a stakeholder mindset.
"We noticed that the pay for CEOs has been increasing multiple folds, but workers' wages had been slow on the rise if not stagnant. This is not right.
"Pay your workers better if you make more profits," he said.
"We don't want a thoroughly unequal society where capital owners take too much a chunk of national income, leaving the workers or low-income households with scraps," Dr Mahathir said.
He added that disparity that is left unchecked will create tension and hostility, and eventually lead to confrontations.