PETALING JAYA: The Sarawak government will stop funding GLCs from 2027 onwards, says its premier Abang Johari Openg.
Starting with the Sarawak Economic Development Corporation (SEDC) and Bintulu Development Authority (BDA), Abang Johari said GLCs must explore new streams to increase their revenue.
“What we want now is for them to find their own revenue, because some of their subsidiaries are involved in commerce,” he told reporters after opening the National Auditors Conference in Kuching.
For instance, the premier said GLC subsidiaries, especially those in the palm oil sector, should diversify their products and innovations, such as waste-to-energy.
“That’s where they can get new revenue streams which they can give to the main statutory body, so that the government doesn’t need to give them money,” he said.
Abang Johari said SEDC and BDA were selected first for this transition due to their potential to generate their own income.
He said SEDC had a stake in a methanol project, while BDA could invest in industries at the Samalaju Industrial Park.
“I am confident that they can stand on their own,” he said.
He added it was important to change the mindsets of GLCs from thinking that they could depend on government funding despite not being profitable.
“Otherwise, they will think it doesn’t matter if they make losses since the government will give them money,” he said.
Abang Johari said savings from reduced GLC funding would be redirected to infrastructure projects, such as schools and clinics.
“When infrastructure is in place, economic activity increases, stabilising the economy and benefitting the people,” he said.
