Government-Linked Companies (GLCs) in Brunei Darussalam are established under the Companies Act (Chapter 39) and are not exempted from the requirement to comply with the regulations outlined in the Act to ensure strong and transparent governance.
It includes the preparation of financial statements, legal filings, company audits, and the governance of the board of directors.
In addition to the above, similar with other companies, GLCs are obligated to comply with other relevant laws of Brunei Darussalam, such as the Income Tax Act (Chapter 35), the Employees Trust Fund Act (Chapter 167), the Employment Act (Chapter 278), and the Personal Data Protection Order 2025.
The need for GLCs to comply with the law and regulations similar with other companies was highlighted by Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah on the last day of the First Meeting of the 22nd Session of the Legislative Council (LegCo). This was in response to questions raised by LegCo members Yang Berhormat Hajah Rosmawatty binti Haji Abdul Mumin and Yang Berhomat Dr Haji Mahali bin Haji Momin on GLCs.
To strengthen governance, transparency, and accountability of GLCs under Darussalam Assets, he said several measures have been implemented to ensure that the governance, processes and systems of these companies align with international standards and best practices.
It includes the establishment of Darussalam Assets’ Corporate Governance Code and Corporate Governance Manual to ensure clear roles and responsibilities of the board of directors, as well as the use of International Financial Reporting Standards (IFRS) in the financial management processes of the companies.
These measures aim to enhance investor confidence.
He also shared that in terms of strengthening the function of human resource management and fostering a performance-based culture, initiatives such as the implementation of the Enterprise Resource Planning System, including the SAP Human Resource Management System and SAP Finance, have been introduced.
The implementation of Human Capital Development strategies and the development of the Human Resource Management System are also underway.
As a general practice, he explained that the selection of board members for GLCs, particularly those under Darussalam Assets, is governed by the Ministry of Finance and Economy as part of the portfolio of the Minister for Finance Corporation. A committee known as the GLCs Nomination Committee has been established as an independent evaluator to assess and consider the membership of the boards of directors for companies under the Minister for Finance Corporation to ensure that board members of GLCs possess the necessary skills, experience, and diversity to effectively govern the companies.
The size and composition of the board are suitable to support effective oversight of the strategic objectives and monitoring of GLCs, as well as ensuring quality and suitable candidates are appointed to the positions of Chairman and board members, including Independent Non-Executive Directors.
The minister added that performance evaluations of the board are also conducted regularly to ensure that each GLC is managed professionally, transparently, and with a performance-oriented approach, aligned with the national interest and delivering the best value for the government as the shareholder.
(news source: Borneo Bulletin; pic source: Info Foto, Jabatan Penerangan)
