Anwar defends GLIC role in housing, student accommodation, outlines governance laws
Prime Minister Anwar Ibrahim has defended government-linked investment companies' involvement in civil servant housing and student accommodation, citing both public need and commercial returns. He also outlined plans for legislation to tighten governance of state-owned entities, following questions
PETALING JAYA (Oct 27): Prime Minister Datuk Seri Anwar Ibrahim has defended government-linked investment companies’ (GLICs) involvement in civil servant housing and student accommodation, while outlining broader governance measures, including proposed legislation for state-owned entities.
Anwar, who is also finance minister, said such investments could address public needs while serving commercial interests. He cited the Kota Madani development in Putrajaya, where he said 80% of homes would be reserved for civil servants to help address an accommodation shortage, Malay Mail reported.
Speaking during Prime Minister’s Question Time in the Dewan Rakyat on Tuesday (Oct 27), he also argued that GLICs’ investments in student accommodation overseas could be expanded domestically. “It is not merely about helping people; it is also about serving commercial needs and interests,” he said.
Anwar was responding to Bangi MP Syahredzan Johan, who asked about the rationale for involving government agencies, GLICs, government-linked companies (GLCs) and statutory bodies in development projects while safeguarding their core mandates and responsibilities. Responding to a supplementary question on preventing a recurrence of past scandals, Anwar said the proposed legislation would establish clearer and stricter rules for state-owned entities, including limits on the powers and responsibilities of their leaders, Bernama reported. He said clear rules were also needed for subsidiaries of government agencies, and those appointed to lead public institutions must be held accountable. Anwar added that the government had not identified governance breaches in these companies on the scale previously seen at 1Malaysia Development Bhd and Tabung Haji.
Separately, Kumpulan Wang Persaraan (Diperbadankan), or KWAP, said earlier this month that its planned RM750 million Vista Kampus student housing investment would be assessed on commercial grounds. In an Oct 15 statement to Bernama, carried by RTM, KWAP said the initiative was intended to generate stable recurring income to support its retirement fund mandate. The investment would be undertaken progressively by project, subject to assessment and investment approval. Proposals would be evaluated for commercial merit, viability, returns and risks, including construction, occupancy, maintenance and financing. In that statement, KWAP said investment structures, ownership arrangements and commercial terms for individual projects had not been finalised, making it premature to announce specific expected returns.
For civil servant housing, Kota Madani was launched in June 2025 as an estimated RM4 billion development in Precinct 19, Putrajaya. Bernama reported at the launch that Putrajaya Holdings Sdn Bhd would undertake the project through a public-private partnership using a build, lease, maintain and transfer model, without government funding at the initial stage. The development was planned to comprise 10,000 residential units accommodating more than 30,000 residents, alongside schools and other public amenities. Earlier parliamentary disclosures showed substantial unmet demand for government quarters. In a July 2025 written reply reported by Bernama, then Federal Territories Minister Datuk Seri Dr Zaliha Mustafa said 17,366 civil servants were on the waiting list, compared with 1,449 vacant units, based on records as at June 15 that year.
Defending the investment approach on Tuesday, Anwar cited Petronas’ role in developing Putrajaya through Putrajaya Holdings, encompassing government offices, public amenities, hotels, commercial ventures and tourism facilities. He said GLICs were expected to consider national priorities alongside investment returns, and cited their RM120 billion domestic direct investment commitment for 2024–2028. The commitment forms part of the Finance Ministry’s GEAR-uP programme and covers multiple economic sectors rather than housing alone. In its Aug 7, 2026 progress report, the ministry said GLICs had committed and deployed RM20.3 billion in domestic direct investment in 2025, compared with RM6.6 billion in 2024.
On overseas property investment, Anwar said the initial investment in London’s Battersea Power Station redevelopment had been too high and had incurred losses, Bernama reported. Responding to a supplementary question from Pasir Gudang MP Hassan Karim, he called for more rigorous scrutiny of overseas investments to avoid a recurrence, and said efforts were under way to recover the investment. Anwar said most overseas investments had generated substantial returns, although some had incurred losses. He added that the government had prioritised domestic investment over the past three years.
