The government has to maintain a low profile in the private sector in order to stop the crowding out of the business which would otherwise have had a strong potential as stated by the finance minister. Lim Guan Eng have expressed that the Pakatan Harapan commitment to scale the involvement of the government in the local business area.
The earlier Barisan Nasional has been consistently accused of enabling the government-linked corporations to have a power over the private sector to the detriment of the local form which do not have the resource of competing with the state-backed behemoths. The previous administration has only mentioned private sector led market economy but it is better to walk the talk instead. Touching the complaints of the private sector regarding the dominance of GLCs. He said that the government has a planned to scale back equity in some firms. Lim has mentioned that the move is going to encourage greater activity in the stock exchange of Malaysia and also higher overall liquidity in the economy.
He stated that this is going to allow the government to understand the value of its present assets that it holds in the form of equity in GLCs. The minister added that the cooperation of the new government with the private sector is going to facilitate the growth of the latter and not the piratisation exercise which he claimed has been undertaken earlier. Previously administration had often been accused of the nationalized losses by the privatizing profit for selecting piratisation epithet. As an example of the previously overwhelming majority of the PPP public private partnership project had been discovered to have been negotiated directly, where the government project contracts had been carried out for land instead of the cash payment.
This means that the cost of the real project and the land of the governmental values were unknown, extraordinary profit for the government, and corruption was rife as said by Lim.