Debate in Malaysia over PM Anwar’s revelation that private firms partly funded his recent overseas trips

SINGAPORE: A win-win situation could result from private companies sharing flight costs with Malaysia Prime Minister Anwar Ibrahim’s delegation on his recent overseas trips, said analysts and stakeholders.

But they added that the practice could also expose vulnerabilities in Malaysia’s political financing framework, and called for accountability to be improved.

Mr Anwar sparked debate after he told parliament on Thursday (Nov 21) that private companies funded 75 to 80 per cent of his flights over the past two months. He was on official visits to China, Egypt, Saudi Arabia, Peru and Brazil this month.

"If I am not mistaken, around 70 or 80 per cent of the flight costs were borne by companies with business and investment interests," he said.

The Investment, Trade and Industry Ministry had invited companies like Petronas, oil and gas firm Sapura Energy, automotive firm Proton and semiconductor firms to join his delegation and attend the meetings abroad, said Mr Anwar. 

“We invited these companies which had business and investment interests (to join these trips), and they paid for the airfare and costs, while the government helped these companies to either import or export,” said Mr Anwar, as quoted by news outlet Free Malaysia Today. 

It is one of his administration’s measures to manage the expenses of overseas trips more efficiently, he said. "We did things differently recently, as I noticed that travel costs were often quite high.”

Mr Anwar was responding to Member of Parliament for Paya Besar Shahar Abdullah during Prime Minister's Question Time in the Dewan Rakyat, Malaysia’s lower house of parliament.

In response to the controversy, government spokesperson Fahmi Fadzil clarified on Friday (Nov 22) that private firms did not pay for Mr Anwar’s travels abroad. 

The total cost of the chartered Malaysia Airlines plane, an Airbus A350, was RM6.16 million (US$1.38 million) and the Malaysian government covered 27 per cent of the cost, said Mr Fahmi, who is communications minister.

“Meanwhile, the business delegation paid 73 per cent of the cost, or RM4.5 million. So it is important for me to stress that the government paid for the prime minister’s flight,” he said.

Sharing a chartered flight with private sector representatives during the trips was found to be more cost-effective than if the delegation had flown on the Putrajaya’s Jet Premier One on its own, said Mr Fahmi, adding that nearly RM900,000 was saved. 

If the government delegation had flown on its own on the Jet Premiere One, which can accommodate only 20 passengers, it would have cost almost three times more, or RM2.5 million, Free Malaysia Today reported.

BE VERY TRANSPARENT, SAY ANALYSTS

Mr Anwar’s comments have raised questions on whether greater transparency and clear guidelines are needed. 

The Malaysian United Democratic Alliance (MUDA) party said in a statement on Thursday (Nov 21) that while the approach may not necessarily breach any laws, it “cast a shadow over the government’s integrity and (highlighted) systemic vulnerabilities in Malaysia’s political financing framework”. 

“Will other private companies with similar capabilities and resources have the same opportunities, ensuring fairness and transparency in the selection process?” MUDA questioned.

Analysts said the novel approach could result in a win-win for companies and the government, but requires greater transparency and disclosure.

“(The) government should optimise available resources including from the private sector and, at the same time, be very transparent on who is paying and the value they bring,” independent analyst Adib Zalkapli told CNA.

If executed well, the practice could create a situation where the government does not have to spend excessively on diplomatic missions, and local corporate leaders get to engage with foreign stakeholders to grow their business, said another independent analyst Halmie Azrie.

“Having Malaysian industry captains like Petronas, Proton, Sapura Energy on board Anwar’s entourage … makes sense from a business perspective as they will be meeting with their global counterparts face-to-face to make corporate decisions directly, instead of having to do back-and-forth correspondence,” he explained. 

In Mr Halmie’s view, the practice is also in line with the Anwar administration’s objectives such as increasing public-private partnerships while being more prudent with taxpayers’ dollars.

“Since Mr Anwar took office, he has mentioned that his primary role is to balance the books – the idea that taxpayers’ money should go back to infrastructure and public amenities. So this move supports that,” Mr Halmie told CNA. 

However, improvements can be made “for accountability purposes”, he said.

At the moment, it appears to be the Ministry of Investment, Trade and Industry that decides which companies are invited, but the government could publish ethical guidelines or even details of the type of sponsorship companies may provide, he said.