KOTA KINABALU: Subsidiaries under the state Sedco Group that fail to turn profitable within a year will be shut down or undergo buyouts, its newly appointed chairman Datuk Masiung Banah says.
He said that the loss-making subsidiaries should not remain a burden to the parent agency and they should take immediate steps to turn around the respective subsidiaries.
“If we continue to maintain loss-making companies that burden the parent agency, it is like scoring an own goal,” he said.
“We want to see their performance, whether the targets are achieved or not. If not, why? … If achieved, then we must improve further,” he said when addressing the SEDCO Group here.
The Kuamut assemblyman was firm about implementing significant reforms in the governance of subsidiaries that are less competitive in their respective industries.
“Companies that fail to meet the key performance indicators (KPIs) must submit action plans to improve financial standing,” he added.
Masiung Sedco’s top management was evaluating the effectiveness of chief executive officers among its 23 subsidiaries and would also put in place quarterly monitoring to ensure accountability.
He said the three subsidiaries - Sedco Mining Sdn Bhd, Kudat Blue Economy Park project, and Borneo Cement (Sabah) Sdn Bhd - will be the focus in 2026 for driving Sabah’s economic growth.
