As IMF deadline looms, SOEs asked to tighten governance

To meet a deadline set by the International Monetary Fund, the Ministry of Finance has directed all state-owned enterprises (SOEs) to adopt standard regulations and reporting manuals for their operational protocols, business plans, board appointments and financial audits to minimise fiscal risks for the state. The ministry’s Central Monitoring Unit (CMU) issued directives on Oct 31, the IMF-mandated deadline, instructing all ministries and divisions to ensure that state-owned enterprises under their domain comply with the SOEs (Governance and Operations) Act 2023 and the SOEs Ownership and Management Policy 2023. Under these requirements, the CMU has issued ‘Business Plan and Statement of Corporate Intent (SCI) Guidelines’ to federal SOEs regarding key steps and essential components of their business plans, strategic objectives, performing environmental analysis and framework for effective monitoring and evaluation.