Loss-Making Sabah GLCs With No Turnaround Prospects To Face Closure -- Hajiji

KOTA KINABALU, Dec 18 (Bernama) -- Sabah government-linked companies (GLCs) which are loss-making may face possible closure orders if they do not show any turnaround prospects, said Chief Minister Datuk Seri Hajiji Noor. 

He said GLCs and state statutory bodies that fail to show good performance for five consecutive years would be placed under review by the State Statutory Bodies and Government-linked Companies Advisory and Monitoring Committee for actions to be taken.

He said every GLC and state statutory body is responsible for complying with the existing minimum dividend payment rate of 10 per cent of profit after tax.

“Starting next year, I want to see an increase in the level of annual contributions from GLCs, ranging between RM2 million and RM10 million, subject to the company’s capabilities and performance,” he said in a statement following the GLC and statutory bodies’ dividend and contribution presentation ceremony here today.

At the ceremony, Hajiji received replica cheques from various GLCs and state statutory bodies totalling RM131.6 million, with SMJ Energy Sdn Bhd being the largest dividend payer, worth RM50 million, and making a RM1 million contribution to the state Disaster Management Committee.

The Chief Minister said GLCs’ performance must align with the goal of Sabah Maju Jaya 2.0, which is to make GLCs an efficient economic catalyst through competent management, generating higher income and value for the people and the state.

Hajiji said that, based on the current report, the overall performance of GLCs is still at a medium level, with total dividends and contributions paid to the Sabah state government amounting to RM125.3 million, compared with the highest recorded in 2022 of RM156.31 million. 

He said that starting next year, all chief executive officers, group general managers and general managers of GLCs and statutory bodies will be required to submit quarterly written performance reports. 

“The report must include project progress, financial status, achievement of key performance indicators (KPIs) and the level of operational efficiency.

“Those who failed to submit reports, do not achieve KPIs or show unsatisfactory performance will have their positions reviewed, including the possibility of being replaced or terminated,” he said. 

-- BERNAMA