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The Golden Handshakes: Inside Malaysia’s Elite GLC/GLIC Paychecks – Why Every Malaysian Should Care
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The Golden Handshakes: Inside Malaysia’s Elite GLC/GLIC Paychecks – Why Every Malaysian Should Care

From your KWSP savings to ASB dividends, from electricity bills to banking fees, these corporations shape the financial landscape of everyday life.

by
May 9, 2025

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When Maybank’s CEO earns RM12 million and CIMB’s chief takes home RM8.86 million in cash in 2023, it’s not just corporate news – it’s your money at work, or perhaps not working hard enough for you.

Here’s why these numbers matter to every Malaysian: Government-Linked Companies (GLCs) and Government-Linked Investment Companies (GLICs) control approximately 42% of Malaysia’s market capitalisation on Bursa Malaysia.

Your Employee Provident Fund (KWSP) savings, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) pension funds, and even your Amanah Saham Bumiputera (ASB) investments are deeply tied to these companies’ performance.

When you check your annual EPF statement or ASB dividends, you are looking at returns partly determined by how well these highly-paid executives perform.

The Price of Leadership: Malaysia’s Top Exec Pay

A closer look at GLC executive compensation (2023-2024):

Healthcare & Investment

    State-Linked Corporations

      • Johor Corporation:
        • Executive Directors: RM5.34 million
        • Key Management: RM38.74 million
        • Total: RM45.71 million

      Infrastructure & Telecommunications

        • Axiata Group:
          • Non-Executive Chairman: RM30,000 monthly
          • Directors: RM20,000 monthly
          • Additional committee fees: RM2,500-RM9,000 monthly

        Energy Sector

          These aren’t just big numbers – they represent decisions affecting everyday services, from banking fees to electricity bills.

          Consider this: when you pay your monthly TNB bill or bank charges, a portion of your payment contributes to these compensation packages.

          The justification? These executives manage assets worth billions of ringgit and make decisions affecting millions of Malaysians.

          But the question remains: do these salaries translate to better services and returns for ordinary citizens?

          The Ripple Effect: How GLC Pay Shapes Malaysia’s Wage Gap

          The impact extends beyond individual companies. In 2022, it was reported that GLCs employ over 500,000 Malaysians directly.

          Their wages, benefits, and career advancement policies set benchmarks across industries.

          When GLC chiefs earn hundreds of times more than their average employees, it raises questions about wage inequality and corporate governance.

          For taxpayers, there’s another layer of concern.

          Many GLCs began as government departments, built with public funds.

          While they’re now corporatised, the government (through various agencies) remains a major shareholder.

          When Pay Defies Performance: Malaysian GLCs Under Scrutiny

          This means their performance – and their executives’ pay – should face public scrutiny.

          Even more troubling are cases that challenge basic business logic.

          In 2018, when Sapura Energy incurred a net loss of RM2.5 billion, the CEO, Tan Sri Shahril Shamsuddin, received a total remuneration of RM71.92 million, including bonuses and salary – a stark example of how executive compensation can become detached from company performance and public interest.

          In a more recent example, there has been public outrage regarding a Kedah GLC executive receiving a bonus of RM210,000 despite meeting only 42% of its key performance indicators (KPIs).

          When Profits Rise But Service Falls

          The compensation debate extends beyond mere numbers – it’s fundamentally about accountability.

          While banks’ record profits delight shareholders, consumers bear the burden through increased bank fees and tougher loan approvals.

          These executive packages raise more profound questions about Malaysia’s economic trajectory.

          Despite significant financial losses, some CEOs, such as the one from Sapura Energy, reportedly earn extraordinarily high salaries, up to RM200,000 per day.

          Though GLCs need to attract top talent, their compensation packages – from executive suites to entry-level positions – might stifle innovation and competition.

          Private sector SME companies, unable to match these lucrative offers, face a concerning trend: a brain drain as talent flows toward GLCs rather than entrepreneurship.

          The attraction isn’t just the higher salaries, but also the comprehensive benefits packages, including job security, pension schemes, and medical coverage that most SMES struggle to provide.

          The Road to Reform: Malaysia’s Corporate Wage Evolution

          In a landmark shift toward addressing wage inequalities, Malaysia stands at a crucial juncture in its corporate reform journey.

          The stark reality of compensation disparities has become increasingly apparent, with the median Malaysian monthly salary of RM2,844 standing in sharp contrast to the multi-million ringgit packages commanded by GLC executives.

          Recognizing these challenges, the government has launched the Fair Wage Policy, beginning with GLICs.

          The policy mandates a minimum wage of RM3,100, initially targeting the five major GLICs – KWSP, Permodalan Nasional Berhad (PNB), Khazanah, Lembaga Tabung Angkatan Tentera (LTAT), and Tabung Haji.

          PNB has committed to implementing this policy across its subsidiaries, including major corporations like Maybank, Chemical Company of Malaysia Berhad (CCM) and Sime Darby, by 2026, while Khazanah has pledged near-term implementation for its group companies.

          Meanwhile, Prime Minister Datuk Seri Anwar Ibrahim’s announcement of comprehensive audits for nearly 2,000 GLCs marks a significant step toward greater corporate accountability.

          Though these audits may not immediately address the wage gap, they represent an important first step toward greater transparency and accountability in Malaysia’s corporate landscape.

          @edynoorreduan GLC akan mula diaudit.. jaga² ya geng korperat.. #MalaysiaMadani #KerajaanPerpaduan #AnwarIbrahim ♬ Epic Inspiration – AShamaluevMusic

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