As Tunisia embarks on an ambitious reform agenda to strengthen corporate governance and modernize its state-owned enterprises, senior representatives from the Ministry of Finance visited Malaysia in December last year to learn about the country’s best practices on restructuring and managing government-linked companies (GLCs).
These companies, where the Malaysian government has a controlling stake, underwent major transformations since 2004 to turn weak operational and financial performances into high performing entities critical for the country’s future prosperity. The program was successfully executed and has enabled these companies to become profitable, dynamic, performance-oriented, and well-governed institutions.
This visit is one of the first activities of the new World Bank Group Research and Knowledge Hub in Kuala Lumpur, which is helping Malaysia share its successful development experience globally. Here are a few lessons that Tunisia, and other countries, can learn from Malaysia’s experience on reforming government-linked companies.