KOTA KINABALU: The Sabah Government has intensified efforts to improve corporate governance of its Government-Linked Companies (GLCs) and State Statutory Bodies by implementing structural reforms and establishing a dedicated GLC Monitoring Committee.
The initiative aims to enhance transparency, accountability, and economic impact through stronger oversight.
Currently, Sabah holds direct interests in 27 holding companies and 22 statutory bodies across key sectors such as plantations, energy, and property development. These are supported by around 250 subsidiaries and associate companies, creating a complex corporate network that requires rigorous management.
Key reforms include appointing qualified board members, reassessing business models, and strengthening financial monitoring and reporting.
Additionally, all joint venture agreements involving GLCs must now be vetted by the State Attorney-General’s Office, Ministry of Finance, and relevant agencies before Cabinet approval to protect public interest.
The newly formed GLC Monitoring Committee, co-chaired by senior finance officials, is tasked with identifying governance gaps and recommending corrective actions.
Some dormant or inactive GLCs are currently being restructured or wound up to reduce financial burdens and improve overall efficiency.
Responding to criticism that some GLCs remain despite losses linked to political backing, Assistant Finance Minister Datuk Julita Majungki emphasized that many GLCs continue to deliver positive contributions, including dividends, job creation, and community development.
New leadership appointments in major GLCs are part of efforts to boost accountability and drive recovery.
