KOTA KINABALU: The state government has lodged reports with the authorities, and investigations related to non-performing government-linked companies (GLCs) are ongoing, said state Finance Minister Datuk Seri Masidi Manjun.
"We have taken action, but it is just that we do not broadcast it as we do not want to humiliate those who were involved," he replied to Assafal Alian (Warisan-Tungku) when the latter suggested the government take stern actions against those who are not managing the companies well.
During his winding-up speech in the state assembly sitting, Masidi also said that because the capital came from the government, some GLCs' management were not serious, as that money did not belong to them.
Unlike the private sector, who would do their best with their own capital, Masidi said that there are GLCs who would assume that the government would continue to inject capital after their companies lose money.
"They have no awareness that despite the capital is from the government, the government's money is also the people's money. This is what we have forgotten.
"It is important that when we talk about GLCs, (good) character and integrity in management should be the number one priority, not how much money the government could put into business."
Masidi said that the state government will assist companies through the GLC Consultation and Monitoring Panel, which will start next month.
Its role is to provide guidance on the effectiveness of GLC functions and roles, examine and reassess the key performance indicators of the troubled GLCs, and make recommendations and suggestions such as terminating company operations, restructuring, and creating a more sustainable GLC ecosystem.
Meanwhile, he said the state government only holds shares in 43 out of 213 companies, including subsidiaries associated with the state government.
"These consist of 26 state government-owned companies with shareholdings ranging from 50 to 100 per cent; four subsidiary companies of state government-owned companies with shareholdings between 20 and 50 per cent; and 13 other companies with shareholdings of less than 25 per cent.
"Therefore, the state government can only collect returns in the form of dividends and contributions from these 43 companies. The remaining 170 companies are subsidiaries of state government-owned companies in which the state government has no direct shareholding."
In 2023, 17 out of the 43 state government-owned companies declared dividends and contributions.
He said the dividend payments varied each year based on the changing profitability trends of the companies.
"For example, the dividend paid by Sawit Kinabalu Berhad to the state government was RM24.4 million in 2021, increased to RM41.8 million in 2022, and decreased to RM20.19 million in 2023, influenced by changes in the price of palm oil commodities."