Kota kinabalu: Sabah government-linked companies (GLCs) that are consistently loss-making and show no signs of turnaround may face closure, Chief Minister Datuk Seri Hajiji Noor announced.
According to BERNAMA News Agency, Chief Minister Hajiji highlighted that GLCs and state statutory bodies failing to demonstrate good performance over five consecutive years will be scrutinized by the State Statutory Bodies and Government-linked Companies Advisory and Monitoring Committee. The committee will decide on necessary actions, including potential closure.
Hajiji emphasized the responsibility of every GLC and state statutory body to adhere to a minimum dividend payment rate of 10 percent of profit after tax. He expressed his desire to see an increase in annual contributions from GLCs to range between RM2 million and RM10 million, depending on the company's capabilities and performance.
In a statement given during the GLC and statutory bodies' dividend and contribution presentation ceremony, Hajiji received replica cheques amounting to RM131.6 million from various GLCs and state statutory bodies. Notably, SMJ Energy Sdn Bhd emerged as the largest dividend payer with RM50 million, additionally contributing RM1 million to the state Disaster Management Committee.
The Chief Minister stated that the performance of GLCs must align with the objectives of Sabah Maju Jaya 2.0, aiming to transform GLCs into efficient economic catalysts through competent management, thereby generating higher income and value for the people and the state.
He noted that, based on the current report, the overall performance of GLCs remains at a medium level, with total dividends and contributions to the Sabah state government amounting to RM125.3 million, a decline from the highest recorded RM156.31 million in 2022.
Starting next year, all CEOs, group general managers, and general managers of GLCs and statutory bodies will be required to submit quarterly written performance reports. These reports must include project progress, financial status, achievement of key performance indicators (KPIs), and operational efficiency levels.
Hajiji warned that those who fail to submit reports, do not achieve KPIs, or exhibit unsatisfactory performance may face review of their positions, including the possibility of replacement or termination.