Joint panel GLC scrutiny from May
Published on: Saturday, April 27, 2024
By: Larry Ralon
Kota Kinabalu: Masidi (pic) said the State Government only has a stake in 43 companies out of 213 companies, including subsidiaries linked to the State Government.
That is, 26 State Government companies with 50pc to 100pc shareholding, four subsidiary companies of State Government companies with a shareholding of 20pc to 50pc and 13 other companies with a shareholding of less than 25pc.
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“Therefore, the State Government can only collect revenue in the form of dividends and contributions from these 43 companies.
A further 170 companies are subsidiaries of State Government companies in which the State Government has no direct shareholding (0pc). In 2023, 17 out of 43 State Government companies or 40pc have declared dividends and contributions.
“Dividend payments change every year based on the company’s ever-changing profit trends.
These changes are not necessarily caused by less efficient company management but are more influenced by the uncertain economic conditions.
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For example, the dividend paid by Sawit Kinabalu Berhad to the State Government in 2021 amounted to RM24.4 million which increased in 2022 by RM41.8 million and decreased to RM20.19 million in 2023 which was affected by changes in palm oil commodity prices.
“For GLCs experiencing problems, the State Government will help and restore these companies through the GLC Consultation and Monitoring Panel which will be co-chaired by the Permanent Secretary of the Finance Ministry and Siaw Kok Chee, former RHB Regional Director who is also the Financial Advisor to the Chief Minister and his members.
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“It consists of three people from the State Government and another three from the private sector. This established panel would start in May 2024.
“Its role is in providing advice and guidance on the effectiveness of GLC functions and roles, examine and re-evaluate the KPIs of each problematic GLC and provides suggestions and recommendations such as terminating the company’s operations including restructuring the GLC and creating a more sustainable GLC ecosystem.”
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