‘Improve services before passing cost’

KUALA LUMPUR: Government-linked companies (GLCs) must enhance efficiency and create value for their services before passing on any cost to consumers, Khazanah Nasional Bhd’s managing director Tan Sri Azman Mokhtar said yesterday.

“At the end of the day, GLCs must be profitable as well before passing on any cost. Consumers who pay more for services must in turn feel that they are still getting value for money. Otherwise, the GLCs cannot survive,” Azman said.

Many of the GLCs are in consumer service businesses, including electricity, telecommunications and airport services, and must strive to improve efficiency and create value, he said.

He was speaking to reporters after opening the annual general meeting of the Malay Traders and Industrialists Association of Malaysia (Perdasama) here.

On whether the recent fuel price increase would affect the GLCs’ performance, Azman said: “Many companies have already made adjustments for the increase and are able to control cost, reduce wastage and increase efficiency.”

He said those companies which ultimately survive the current challenges will become a stronger as a result. Asked whether the country was still a leading investment destination, Azman said Malaysia with its low costs and favourable location remained attractive to investors.

Meanwhile, Perdasama’s president Datuk Moehamad Izat Emir said Malaysia should be able to overcome the current difficulties.

“Malaysia has a good track record in being able to overcome crises in the past. We can do it again,” he said.

With the petrol price now at RM2.70 per litre, more people are expected to start using public transport, Moehamad Izat said.