RM138 million dividends by state bodies a letdown
Published on: Monday, November 06, 2023
SMJSB Chief Executive Officer Dr Dionysia Kibat (third left) presenting the replica cheque of RM50 million in dividend to Finance Minister Datuk Seri Panglima Masidi Manjun.
STATE statutory bodies and government-linked companies (GLCs) have paid a total of RM138.7 million in dividends and contributions to the State Government as of October 30, this year.
Chief Minister Datuk Seri Hajiji Noor commended the statutory bodies and GLCs that recorded profit and paid dividends while at the same time giving contributions to the State Government.
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However, he said the figure was 8.8 per cent lower than the amount received last year.
“It is a little bit disappointing. All the statutory bodies and GLCs need to beef up efforts to generate more income in the years ahead,” he said at the closing of the board of directors’ course and presentation of dividends and contributions at Shangri-La Tanjung Aru, Kota Kinabalu, on Oct 31.
His speech was read by State Finance Minister Datuk Seri Masidi Manjun.
SMJ Sdn Bhd, the “youngest” GLC, paid RM50 million to the State Government.
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The other agencies paying dividends were Sabah Credit Corporation (RM17 million), KKIP Sdn Bhd (RM12 million), Sabah Energy Corporation Sdn Bhd (RM12 million), Innoprise Corporation Sdn Bhd (RM3.568 million), Desa Plus Sdn Bhd (RM2 million), Sabah International Dairies Sdn Bhd (RM1 million), Borneo Development Corporation (RM355,320), Sabah Air Aviation Sdn Bhd (RM305,210) and Keningau Agro-Venture Sdn Bhd (RM500,000).
Six agencies contributed to the State Government were the Sabah Rubber Industry Board (RM1.5 million), Sabah Ports Authority, Sabah Forest Development Authority (Safoda), Rural Development Corporation (KPD) and Sabah Land Development Board (SLDB) (RM1 million each) and Ko-Nelayan (RM500,000).
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Meanwhile, the Chief Minister said the statutory bodies and GLCs’ board of directors must exercise good corporate governance from the perspective of administration and evaluation to ensure that the company and statutory body’s security is assured.
Board members with good ethics and morals would be able to steer their companies to spur economic growth besides enhancing strategic planning, he said.
In this respect, Hajiji singled out Sawit Kinabalu as a benchmark for all the State GLCs and statutory bodies to emulate, for it had shown strong resilience and competitiveness in the industry despite facing uncertain palm oil commodity prices.
“At the same time, each agency must be smart and thrifty in their spending as well as prioritising a good return to protect the company’s welfare, maintain performance and contribute to the State’s socio-economy development,” he said.
He also reminded board members of state agencies to always base their decisions on the Company Act, current financial enactment or circular.
“Board members must collectively ensure their agencies are operating efficiently and fiscal sustainability and can formulate the best strategy for the benefit of the State,” he said.
Hajiji said he supported the State Finance Ministry’s initiative to hold the course as it is appropriate for new and existing board members to enhance their knowledge and skill in managing their respective agencies.
He said the statutory bodies and State GLCs must support the State Government’s aspiration to develop Sabah’s economy holistically and to support the State Government’s efforts to reduce the State’s dependence on imported food and to eliminate poverty.
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