Kota Kinabalu: Chief Minister Datuk Seri Hajiji Noor said Government-Linked Companies (GLCs) in Sabah that fail to record any profit for five consecutive years will face closure.
“Unprofitable GLCs will be reviewed by the State Government Companies and Statutory Bodies Monitoring and Consultant Committee (JPP-KKNS), with closure orders issued if no recovery prospects are evident,” he said, Wednesday.
Advertisement
The announcement comes as total dividends and contributions from State GLCs reached RM131.6 million this year, down from a peak of RM156.31 million in 2022.
Hajiji described the overall performance of State-owned companies as medium level and below their true potential.
“The State Government will not hesitate to issue a shutdown order if the GLC concerned does not show any prospect of recovering,” he said.
Under the tightened regulations, all GLCs and statutory bodies must comply with the existing minimum dividend payment rate of 10 per cent of profit after tax.
Starting next year, the State Government also expects annual contributions ranging from RM2 million to RM10 million, depending on each company’s capacity and performance.
Hajiji said chief executive officers, group general managers and general managers must submit quarterly written performance reports directly to him beginning in 2026.
The reports must detail project progress, financial status, key performance indicators achievement and operational efficiency levels.
“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.
Additionally, he confirmed plans to revamp GLC chairmen and board members to strengthen corporate governance and accountability.
While acknowledging contributions from past leadership, Hajiji said the changes are necessary for effective transformation.
“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.”
Hajiji called for board directors and top management to work cohesively on decision-making and strategic planning, pointing out the need for dynamic, professional and results-oriented leadership.
He said it is time for Sabah to venture into emerging sectors including artificial intelligence, renewable energy, aerospace and data technology to align with global growth trends.
He welcomed the Malaysian Anti-Corruption Commission’s recommendation for agencies to appoint Certified Integrity Officers or establish Integrity Units as internal oversight mechanisms to ensure cleaner and more transparent work culture.
At the ceremony, Hajiji received cheque replicas totalling RM131.6 million from various GLCs and statutory bodies.
The largest contribution came from SMJ Energy Sdn Bhd, which paid RM50 million in dividends and RM1 million to the State Natural Disaster Committee.
