KOTA KINABALU – The Sabah government’s plan to revamp the Corporate Policy and Governance Monitoring Committee is a step in the right direction to ensure accountability and transparency of state government-linked companies (GLCs) and statutory bodies.
Sabah Law Society president Roger Chin said high standards of corporate governance are a must for these two institutions due to their important roles in the economy of the state.
“The Sabah Law Society suggests the committee adopt the recommendations made by the Economic Co-Operation and Development Organisation on ownership and governance of state-owned enterprises.”
Sabah Chief Minister Datuk Seri Hajiji Mohd Noor had yesterday announced the revamp in an effort to enhance and strengthen the corporate governance and oversight in state GLCs and statutory bodies.
With the revamp, the state government will be able to realise the potential value of state-owned enterprises and augment the return on investments, he added.
Chin said the committee can encourage environmental, social and governance standards for the GLCs to meet global standards on sustainable development.
The state will benefit in the long-run as investors are increasingly focusing their attention on sustainable investing, he added.
Chin said the key pillars of organising the state enterprise ownership function include boosting transparency and disclosure practices, and safeguarding a level playing field between GLCs, statutory bodies and the private sector.
In this respect, the state-owned entities should also have financial performance targets, he added.
“State-owned enterprises are ultimately owned by the general public, and the government agencies are answerable to the general public.”
He said the Sabah Law Society is ready to assist the government in realising these goals and provide the legal and regulatory framework required for the revamp. – The Vibes, June 14, 2021
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