Sabah Finance Minister lashes out at loss-making state GLCs

KOTA KINABALU: Most of the government-linked companies (GLCs) in Sabah are operating at a loss rather than making money for the state government, said Datuk Seri Masidi Manjun (pic).

The Sabah Finance Minister said the government is not a cash cow and it is the duty of all GLCs to make money for the government or face termination.

He reminded the GLCs that the state government is not a charitable organisation that can continue to inject funds into them whenever they run out of money or make losses just by operating.

He implored all GLCs and their management teams to step up and work towards making their ventures profitable and giving dividends to the state government.

At present, there are more GLCs that are losing money than those that are turning in a profit, he added.

"All I can say is that, we could have saved a lot in leakages if all GLCs were performing as they should be," he said after launching the Yono Superapp by Sabah Credit Corporation (SCC) at Sabah International Convention Centre here on Thursday (Nov 9).

Masidi said there is a need to upgrade the management of finances and improve the business sentiment of those managing the companies.

"There is a need for the principle of accountability in the management of GLCs and I would like to remind all GLCs that the overriding consideration of every GLC is to not only make sure that it runs well but that it makes money," he said.

He called on those sitting in the board of directors or holding managerial posts of GLCs to show higher competence and start changing their way of thinking.

"If you are sitting there, you need to change your perspective, and if you are a politician, you must work in a corporate governance structure because in GLCs, you are no longer a politician.

"Everyone working in GLCs must work hard to earn their salaries," he added.

Masidi also urged GLCs to avoid competing with other GLCs, and coming up with ideas that are already in place.

"I am not saying we should be penalising those who fail, all I am saying is, those who fail should try. If not, we have to take action. Enough is enough," he said in referring to the possible closing down of longtime non-performing GLCs.

Earlier, he congratulated SCC for the launching of its financial app Yono – You Only Need One – and called on other GLCs to make use of this app apart from following the example of the corporation in finding ways to generate income for the state.

The app is designed to offer a suite of services that caters to every aspect of one’s financial needs, and is integrated with the DuitNow ecosystem to enhance its functionality.