KOTA KINABALU: Government-linked companies (GLCs) found not performing for five consecutive years will be placed under review and may face a shutdown order, said Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor.
The Chief Minister said any GLC failing to register a profit for five consecutive years would be scrutinised by the State Government Companies and Statutory Bodies Monitoring and Consultant Committee (JPP-KKNS).
“The State Government will not hesitate to issue a shutdown order if the GLC concerned does not show any prospect of recovering,” he said at the GLC and statutory bodies dividend and contribution presentation at the Menara Kinabalu near here today.
According to Hajiji, every statutory body and GLC is responsible for complying with the existing minimum dividend payment rate of 10 per cent of profit after tax.
“This is a long-established requirement, and I expect all GLCs to demonstrate financial discipline and full commitment in fulfilling this obligation.
“In addition, beginning next year, I also want to see an increase in the annual contribution levels from GLCs, ranging from around RM2 million to RM10 million, depending on the company’s capacity and performance,” he said.
Hajiji reaffirmed that the State Government would be conducting a revamp of GLCs’ chairmen and board members to strengthen corporate governance and accountability, as well as inject new leadership into these companies.
“The State Government appreciates the contribution of the past leadership, however, a revamp is necessary to ensure an effective and sustainable transformation,” he said.
“Going forward, we want to improve the performance of GLCs in line with the Sabah Maju Jaya 2.0 goals. Our main objective is to turn GLCs into an efficient and trusted economic catalyst through credible management to generate higher income and value for the people and state,” he said.
He also reiterated that starting next year, all chief executive officers, group general managers and general managers of GLCs and statutory bodies must submit quarterly written performance reports directly to him.
“The report must include project progress, financial status, achievement of Key Performance Indicators (KPIs), and the level of operational efficiency.
Any party that fails to submit the report, does not meet the KPIs, or demonstrates unsatisfactory performance will have their position reviewed, including the possibility of replacement or termination of service,” he said.
Based on the current report, he said the overall performance of GLCs is still at a medium level, with total dividends and contributions paid to the State Government at RM131.6 million compared with the highest recorded in 2022 at RM156.31 million.
“Although these figures indicate that the contributions remain positive, I believe the true potential of government-owned agencies is far greater than what has been achieved so far,” he said.
Hajiji said the State Government demands a high standard of financial integrity, transparent implementation, and accountability.
“To achieve this goal, I want all members of the board of directors and top management to work as a cohesive team in decision-making and strategic planning.
“I am confident that with an updated business direction, disciplined corporate governance, and close cooperation between the board and management, all agencies will be able to go further, increase returns to the state government, and ultimately deliver direct benefits to the people,” he said.
Hajiji stressed the importance of having a leadership team that is dynamic, professional and results-oriented to sail into a new era spurred by strategic investments, digitalisation, new energy and social development.
“Steps that are being taken not just to change leadership but also a comprehensive effort to ensure GLCs are more competitive and ready to lead Sabah’s new development agenda,” he said.
Hajiji said it was also time for Sabah to start venturing into new strategic fields such as Artificial Intelligence (AI), renewable energy, aerospace, data technology, and other sectors relevant to global growth.
The Chief Minister also welcomed the Malaysian Anti-Corruption Commission (MACC) recommendation that each agency appoint a Certified Integrity Officer or establish an Integrity Unit as an internal oversight mechanism.
“This will ensure a cleaner, more transparent and responsible work culture within the whole organisation,” he said.
Later, the Chief Minister received cheque replicas from the various GLCs and statutory bodies totalling RM131.6 million with the biggest from SMJ Energy Sdn Bhd, which paid a dividend of RM50 million and RM1 million contribution to the State Natural Disaster Committee.-pr/BNN
