CHIEF Minister Chow Kon Yeow has called on directors and board members of Penang’s government-linked companies (GLCs) to adopt world-class governance and move away from outdated practices in order to deliver sustainable impact for the state.
Speaking at the opening of the programme “Stewarding Penang State GLCs: Future-Ready Boards for Sustainable Impact” at Gurney Bay Hotel today, Chow said good governance is not a luxury but a necessity.
“At the heart of good governance are our directors and board members, who must carry the responsibility of accountability, integrity and leadership,” he said.
Chow explained that the state oversees 18 GLCs under the Chief Minister Incorporated (CMI) and State Secretary Incorporated (SSI), many of which are not profit-driven but exist to serve the community, to provide social support and to carry out the state’s development agenda.
“Our GLCs are the backbone of the state economy and, at the same time, instruments for inclusive growth. They drive investments, build infrastructure, advance tourism, improve social well-being, and ensure that prosperity is shared by all,” he said.
He stressed that all this aligned with the Penang2030 vision of building a family-focused, green and smart state.
Chow noted that the Auditor General had recommended stronger monitoring and oversight, clearer key performance indicators (KPIs), and more transparent governance for state-linked entities. He also commended CMI for initiating a study on GLC reform, including centralised internal audits to strengthen checks and balances.
“This is the last piece of the puzzle for my administration, and it also supports the reform agenda of the Madani Government at the federal level,” he added.
Chow reminded that whether profit-making or service-driven, all GLCs must prioritise efficiency, accountability and professionalism, shedding the old “government-style” mindset and reducing unnecessary bureaucracy.
“Only GLCs that are well-managed, competitive, and led by forward-thinking directors will be able to carry Penang to greater heights,” he said.
The programme, organised in collaboration with the Institute of Corporate Directors Malaysia (ICDM), focuses on financial sustainability with social impact, digital and green transformation, and board diversity.
Chow urged participants to treat the event not just as another seminar but as a call to action.
“Strengthen your foresight, be bold in making decisions, and lead your organisation with a clear mission and vision. With strong governance and principled leadership, our GLCs will remain engines of growth and pillars of service for Penang,” he said.
ICDM chairman Tan Sri Zarinah Anwar, in her speech, said they are inspired by Penang’s success in transforming itself into a thriving hub of high-tech manufacturing, digital innovation, and services, while retaining its rich cultural heritage.
She also said Penang’s GLCs would play a central role in driving the state’s transformation plan under Penang2030, particularly in logistics, the digital economy, renewable energy, healthcare and affordable housing.
She emphasised the critical responsibility of board chairmen, who must set the tone for governance and ensure independence of thought in decision-making.
“The chairman must ensure discussions are constructive, inclusive and strategic. While maintaining a healthy relationship with management, the chairman must not be seen as an extension of the CEO. Instead, he or she must guide the board in scrutinising proposals, examining options and ensuring proper risk assessment,” she said.
Zarinah cautioned that boards would be failing in their duty if they merely endorsed management recommendations.
“Boards must ask tough questions, challenge assumptions and hold management accountable. Directors need to come fully prepared, having understood the issues and ready to contribute meaningfully,” she said.
She also highlighted the need to build “future-ready boards” through a skills matrix, diversity benchmarks, and rigorous Board and Director Effectiveness Evaluations (BDEE).
“A truly independent BDEE is not about finding fault but about forging excellence. It provides the courageous insights needed to elevate strategic decision-making and build the future-ready boards Penang’s vision demands,” she said.
Boards, she added, must also be equipped to handle megatrends such as digitalisation, ESG and sustainability, climate change risks, geopolitical uncertainties and supply chain vulnerabilities.
“Corporate governance has moved beyond narrow compliance. Boards must now possess foresight – anticipating change, predicting trends and positioning their organisations ahead of the curve,” she said.
The event also featured a panel dialogue on the same topic with experienced panellists Tunku Datuk Mahmood Fawzy Tunku Muhiyddin and Wee Hock Kee, moderated by ICDM president and CEO Jackie Mah. Mahmood Fawzy, who holds several positions, including chairman of EdgePoint Malaysia Holdings Sdn Bhd, and Wee, who also holds multiple positions, including chairman of Governance, Ethics, Assurances and Risk at Perkeso, shared their insights and experiences with participants.
Also present were Deputy Chief Minister I Datuk Dr Mohamad Abdul Hamid, Deputy Chief Minister II Jagdeep Singh Deo, several state executive councillors and assemblymen, CMI general manager Datin Bharathi Suppiah, and the board of directors of state-owned enterprises (GLCs).
Story by K.H. Ong
Pix by Law Suun Ting
