Kota Kinabalu: There are more loss-making government-linked companies (GLCs) in Sabah than profitable ones, said State Finance Minister Datuk Seri Masidi Manjun.
He reminded the GLCs that the State Government is not a charitable organisation that can continue to fund them when they are not making money.
“I hope GLCs are reminded that they are not the extension of a government department or created merely to provide employment,” he said after launching Sabah’s first financial superapp, Yono, at the Sabah International Convention Centre (SICC), here, Thursday.
“They (GLCs) are created to make money for the Government.”
Masidi said the Government is seriously considering terminating non-performing GLCs.
“I think we are intelligent enough to know that nothing is free in the world,” he said, adding that GLCs should be responsible enough to know what they should do.
There is a saying that goes ‘insanity is doing the same thing over and over and expecting different results.’
“If you have that in mind, you will know when to stop. If they do not want to lose their jobs, they must perform well.
“We are not running a charitable organisation. In fact, you are supposed to make money to pay for your salaries.
“If you expect the salaries to be paid by the Government, it would become a charity.”
However, he explained that he is not saying the Government is eager to penalise those who failed, “but those who failed should try.”
“And we give them many chances to try, but if they still fail, only two things can happen – either you change them, or you close the company. It is the government money, the people’s money,” he said.
He stressed that the Government is aware of the challenges, but “there is a limit to the charitable nature of the Government.”
Masidi said among the key elements to ensure a GLC is run well are good financial management, good corporate governance, accountability and a good business plan, which includes avoiding competition with other GLCs.
On politicians helming GLCs, Masidi said some politicians have special expertise and can contribute to the growth of the companies.
“I think the issue is not whether the person is a politician, but whether they are courageous enough to adapt to the work culture within that GLC,” he said.
Previously, it was reported that State statutory bodies and government-linked companies (GLCs) have paid a total of RM138.7 million in dividends and contributions to the State Government as of October 30 this year.
While commending the statutory bodies and GLCs that recorded profit and paid dividends, Chief Minister Datuk Seri Hajiji Noor expressed disappointment as the figure was 8.8 per cent lower than the amount received last year.
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