Julita Majungki
KOTA KINABALU: The Sabah Government has stepped up its corporate governance efforts by introducing a range of reforms and setting up a dedicated monitoring committee to strengthen the performance of its Government-Linked Companies (GLCs) and State Statutory Bodies.
Assistant Finance Minister Datuk Julita Majungki said the move reflects the government’s continued commitment to ensuring transparency, accountability and sustainable economic impact through its corporate entities.
As of now, the State Government directly holds interests in 27 holding companies and 22 statutory bodies involved in strategic sectors such as plantations, energy, investment and property development.
These are supported by a wider corporate ecosystem comprising around 250 subsidiaries and associate companies, making the state’s corporate landscape both vast and complex.
In a bid to ensure sound governance and better outcomes, several key reforms have been introduced.
“These include the appointment of qualified board members, a reassessment of business models and enhancements to financial monitoring and reporting mechanisms, all aimed at boosting operational efficiency and ensuring positive contributions to Sabah’s economy,” she said in a statement today.
Julita added that a significant policy directive has also been enforced, requiring all joint venture agreements involving GLCs or statutory bodies to be referred to the State Attorney-General’s Office, the Ministry of Finance, and relevant agencies before being submitted for Cabinet approval.
“This step is intended to safeguard public interest and ensure greater transparency in state-linked corporate ventures,” she explained.
To further bolster oversight, a GLC Monitoring Committee has been established, co-chaired by the Permanent Secretary of the Finance Ministry and the Financial Adviser to the Chief Minister.
The committee is tasked with identifying governance shortcomings and recommending appropriate interventions for underperforming GLCs.
“Some GLCs, found to be inactive or dormant, are now undergoing restructuring or formal winding-up procedures as part of efforts to reduce financial strain and enhance overall corporate efficiency,” she said.
Julita was responding to a recent statement by former Sabah Law Society President Datuk Roger Chin at the Sabah Action Body Advocating Rights (Sabah) town hall session, claiming that many GLCs continue to exist in Sabah despite losing millions of ringgit because they are backed by certain politicians and their families.
As part of ongoing improvements, she said the State Government is also reviewing the structure of key GLCs and their subsidiaries.
The aim is to optimise ownership, trim down non-productive subsidiaries and redirect resources toward initiatives that deliver tangible economic benefits for the state and its people.
In addition, new leadership has been appointed in several major GLCs, including Sabah Economic Development Corporation (SEDCO) and Qhazanah Sabah Berhad, to lead recovery plans and strengthen accountability.
Julita said a more balanced view is necessary when evaluating the performance of Sabah’s GLCs.
“It is not fair to generalise all GLCs as underperforming. In fact, several have recorded commendable achievements, paid dividends and provided substantial contributions to the state.
“They have also brought spillover benefits such as job creation, community development, and private investment,” she said.
