Kota Kinabalu: Sabah Deputy Chief Minister II and Finance Minister Datuk Seri Panglima Masidi Manjun (pic) reminded board members of State statutory bodies and government-linked companies (GLCs) that their role extends far beyond approving proposals, urging them to exercise independent judgement and uphold integrity in every decision they make.
Masidi said leadership is not measured by popularity or praise, but by the courage to make the right decisions. “Sometimes the right decision is not the easiest or the most popular one.
“It may invite criticism, require us to say ‘no’, or demand that we place the interests of the organisation, the State Government and the people above personal interests and external pressures,” he said.
Masidi stressed that boards are not merely responsible for approving management proposals.
“The board is not merely there to approve papers and is not a rubber stamp for management. The board is the guardian of trust, governance, accountability and public confidence.
“Appointments as board members should not be viewed as recognition or symbols of status but as positions carrying legal, moral and fiduciary responsibilities, particularly when managing public funds and interest,” he said.
Masidi outlined two key principles that every board member must uphold – duty of care and duty of loyalty.
Under duty of care, decisions must be made after thoroughly reviewing documents, evaluating facts and risks and asking critical questions instead of relying on assumptions, sentiments or personal relationships.
“Under duty of loyalty, organisational interests must always take precedence over personal interests, while any business, family or financial conflicts of interest must be declared.
“Board members must also know when to participate in decisions and when to recuse themselves,” he said.
Masidi warned that governance failures rarely begin with one major mistake.
“They often start when small lapses are allowed to continue, including failing to read documents, neglecting due diligence, underestimating risks, failing to declare conflicts of interest and accepting a culture of approving matters without question.
“Such a culture must stop. Boards should also strengthen oversight over organisational spending by ensuring every expenditure delivers value.”
He reiterated that programmes and initiatives must have clear objectives, reasonable costs and measurable outcomes.
Masidi also called for stronger risk management in response to economic uncertainty, cost pressures, technological changes, cybersecurity threats, data protection concerns and increasing public expectations for transparency.
“Boards must ensure organisations have clear risk appetites, effective internal controls, independent internal audits, effective whistleblower mechanisms and continuous monitoring of key risks.
“Environmental, Social and Governance (ESG) principles should be regarded as part of organisational sustainability, reputation and resilience,” he said.
Before making any decision, Masidi urged board members to ask themselves three questions: whether the decision complies with laws and regulations, whether it is ethical and protects organisational integrity, and whether it delivers long-term benefits to organisations, the state and the people.
“If the answer is yes, then do it, even if the decision is difficult or unpopular,” he said.
Masidi said board members are trustees not only of their organisations but also of the Sabah Government and the people of Sabah.
He said strong governance and principled leadership would ensure state statutory bodies and GLCs continue to drive Sabah’s economic development and fiscal sustainability.
The course aims to strengthen participants’ knowledge in corporate governance, risk management, integrity and accountability, while providing a platform to share experiences and best practices.
Masidi also thanked Datuk Mohd Sofian Alfian Nair and all parties involved before officially launching the programme.
