Sabah’s loss-making GLCs face closure if they fail to improve, as the state demands higher dividends and quarterly performance reports from CEOs
| KOTA KINABALU: Sabah government-linked companies (GLCs) which are loss-making may face possible closure orders if they do not show any turnaround prospects. Chief Minister Datuk Seri Hajiji Noor said GLCs and state statutory bodies that fail to show good performance for five consecutive years would be placed under review. He said every GLC and state statutory body is responsible for complying with the existing minimum dividend payment rate of 10% 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. Hajiji received replica cheques from various GLCs and state statutory bodies totalling RM131.6 million at a ceremony. SMJ Energy Sdn Bhd was the largest dividend payer, worth RM50 million, and made 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 to make them an efficient economic catalyst. He said the overall performance of GLCs is still at a medium level, with total dividends and contributions paid amounting to RM125.3 million. This compares to the highest recorded amount of RM156.31 million in 2022. Hajiji said that starting next year, all chief executive officers and general managers of GLCs 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 |
