KOTA KINABALU: Sabah Chief Minister Datuk Seri Hajiji Noor has issued a stern ultimatum to underperforming government-linked companies (GLCs), warning that any entity failing to turn a profit for five consecutive years may face closure.
Speaking at a dividend presentation ceremony at Menara Kinabalu, Hajiji said the state government would not hesitate to shut down GLCs that show no realistic prospect of recovery.
The warning forms part of a broader restructuring drive aimed at transforming Sabah’s GLCs into efficient, credible and high-performing economic contributors.
Hajiji announced a series of governance reforms, including a revamp of chairmen and board members to inject new leadership and accountability into struggling entities.
In addition, all GLC chief executive officers and general managers will now be required to submit quarterly performance reports directly to the chief minister.
Failure to submit reports, meet key performance indicators, or demonstrate satisfactory results could lead to leadership reviews, including replacement or termination, he warned.
The chief minister also reiterated the financial obligations of GLCs to the state, stressing that profitable entities must comply with the minimum dividend payout policy of 10 per cent of after-tax profits.
From next year, Hajiji said the state expects higher annual contributions from GLCs, ranging between RM2 million and RM10 million, depending on each company’s financial capacity.
Despite the reforms, Hajiji acknowledged that the overall performance of Sabah’s GLCs remains at a “moderate level,” with total dividends and contributions this year amounting to RM131.6 million, down from RM156.31 million in 2022.
He expressed confidence that with stronger governance and leadership discipline, the true potential of state-owned enterprises can be unlocked.