Kota Kinabalu: The Sabah Government has signalled tighter oversight of state statutory bodies and government-linked companies (GLCs) following declining financial returns.
Underperforming organisations are set to face objective assessments as the State pushes for stronger governance and accountability.
Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun said organisations with weak governance, unclear direction or poor performance could no longer rely on tradition, relationships or longstanding practices to justify inefficiency.
“We cannot defend inefficiency based on tradition, relationships or habit,” he said when officiating the 2026 Course for Board Members of State Statutory Bodies and State Government Companies at The Magellan Sutera Harbour Resort.
Masidi said dividends and contributions to the Sabah Government increased from RM117.354 million in 2021 to RM156.313 million in 2022 before declining to RM131.60 million in 2025.
Loan repayments also fell significantly, from RM106.902 million in 2022 to RM29.424 million in 2025.
He said the figures warrant attention as every board decision involving investments, loans, procurement and risk management has direct implications on organisational performance and Sabah’s fiscal position.
Performance, he added, should no longer be measured by the number of meetings, reports or programmes conducted, but by tangible outcomes.
“The question is whether the organisation has achieved its mandate, managed resources efficiently, generated returns for the State and is prepared to face economic, technological and global risks,” he said.
Masidi also called for a shift from “governance by compliance” to “governance by performance and accountability”.
“Every ringgit spent must generate value and organisations should not continue allowances, benefits, seminars, visits or programmes simply because they had been implemented previously or because funding was available.
“Allowances or benefits that do not have clear policy foundations, are unrelated to productivity and performance or lack sound business justification should be reassessed,” he said.
However, Masidi stressed that employee welfare remains important and should continue to be implemented fairly, prudently and in line with an organisation’s financial capacity.
“If a programme does not improve revenue, productivity, organisational capacity or mandate achievement, the board must be brave enough to review, restructure or discontinue it,” he said.
