Is Your GLC In Malaysia an Inspiration for National Success?

Is Your GLC In Malaysia an Inspiration for National Success?

Every company has aspirations. We want to build a more efficient organisation, improve our bottom line, develop better customer service. But how many companies dare to be inspirations? That’s a role that government-linked companies in Malaysia are particularly well placed to play.

By some estimates GLCs in Malaysia account for as much as half of total GDP, and have links to as many as 68,000 companies throughout the nation. Whatever the ultimate number of GLCs or particular share of GDP they contribute, there’s no doubt they are a significant and influential part of Malaysia’s economy.

That substantial economic footprint means government-linked companies can be a powerful force in presenting a template for national success. That’s particularly true in the role of procurement.

GLCs in Malaysia can offer inspiration for the economy

GLCs have been undergoing an important transformation in recent years. The GLC Transformation Programme, launched in 2015, aims to support the framework for an evolution into high-performing and regionally competitive companies as a critical catalyst for national economic success. With their often high-profile positions in the economy, GLCs can also provide a template for success in Malaysia’s wider business community.

Procurement has itself been identified as an essential component of GLC transformation. The adoption of e-procurement is a significant driver for greater efficiency savings and the consequent economic benefits, something strongly recommended in the 2006 Khazanah Red Book on Procurement Guidelines and Best Practices.

In 2004 it’s estimated GLCs spent as much as 50% of total spend on procurement. Those kind of numbers offer a significant opportunity to deliver savings, and there are few things as inspiring to a business as demonstrable savings. That’s something we know a little bit about at Procurehere.

GLCs are already making inspiring choices

There’s one area that offers an example of how GLCs are already ahead of the curve with their inspiring choices, and that’s around sustainable government procurement.

A 2015 study of green government procurement in Malaysia showed that GLCs demonstrated greater concern of sustainable issues than comparable statutory bodies. That included areas such as purchasing from local suppliers and small suppliers, highlighting the benefits of sustainable procurement for a sustainable economy.

What’s equally important for inspiring best practice in the wider business community is that GLCs also revealed greater reporting when it comes to sustainable practice in procurement, showing greater engagement in areas of economic, environmental and social criteria relating to financial commitments.

Sustainability offers just one example where GLCs can play an inspiring role in the national economy. It just goes to show that inspiration isn’t just dollar signs and soundbites in today’s fast-paced world. When it comes to procurement, it’s about delivering a better, more sustainable Malaysia.

So maybe it’s time to ask your team, what more can you do to ensure your GLC in Malaysia offers an inspiration for national success? If e-procurement is the next step, then Procurehere is happy and ready to be part of the journey.