Business

Only a handful of GLCs in Sabah profitable, says state Finance Minister

Datuk Seri Masidi Manjun said guidelines on financial management would be issued to the GLCs.

Updated 2 years ago · Published on 13 Jan 2024 5:01PM

  Only a handful of GLCs in Sabah profitable, says state Finance Minister
Sabah has over 200 GLCs, but only a handful are making profits, said Masidi - Bernama pic, January 13, 2024

by Jason Santos

LAYOFFS are still considered an option to reduce excessive government spending and to keep troubled, loss-making government-owned companies afloat.

Sabah finance minister Datuk Seri Masidi Manjun however, said efforts will be taken to guide these companies into profitability though most companies will likely trim the workforce to reduce losses. 

Sabah has over 200 GLCs, but only a handful are making profits. 

“Layoffs, I can’t say at the moment. To a lot of people, this is a very sensitive thing. I don’t talk about layoffs.

“I always talk about asking yourself whether you contributed to the profitability of the company, if yes, then you should have a job there. 

“If not, you should think twice if you should remain there,” Masidi told reporters after attending his ministry’s appreciation night in Kota Kinabalu, yesterday. 

Masidi said he would leave such matters to the discretion of the GLC heads to decide.

He said guidelines on financial management would be issued to the GLCs, while the state will form a unit to monitor their performance as announced by Chief Minister Datuk Seri Hajiji Noor recently. 

However, Masidi said the cabinet should not only rely on reports and he had proposed that a consultative panel be formed to rope experts from the private sector to help ailing GLCs. 

“The cabinet does not only want a unit to report on the actions taken. We also need to have action-oriented approaches,” he said. 

Earlier, Masidi expressed concern over Sabah’s falling revenue due to the volatility of crude palm oil and crude oil prices which account for 68% of the state’s income. 

He said 68% of state revenue collection was from both commodities but it lost RM 566.3 million due to the slump in market prices due to external forces despite recording its best revenue collection in 2023. 

Overall, he said Sabah surpassed its revenue in 2023 by RM11 million to RM6.791 billion from RM6,960 billion in 2022 due to the surge in land revenue collection. 

“For this, I wish to give credit to the ministry’s revenue section which had gone all out in their efforts,” he said. - The Vibes, January 13, 2023

Related News

Business / 2d

Robo.ai reports US$180m revenue following QC Capital acquisition

Malaysia / 6d

Sabah poverty figures, tourism ranking among Malaysia’s quieter gains, says World Bank economist

Opinion / 1w

Merdeka: This is our Malaysia – and you will not take it from us

Malaysia / 3w

Sabah and Sarawak can become 'kingmakers', determine who will lead Federal government

Malaysia / 4w

Warisan keeps Sabah pact talks open, pushes for local parties to contest 25 seats

Opinion / 1mth

An open letter to voters of Negeri Sembilan

Spotlight

Malaysia

Penang CM defends move by housing board, says enforcement is last resort

By Ian McIntyre

World

Anak Krakatau’s six eruptions recorded

Malaysia

Delivery rider's compassion turns RM14.50 meal into wave of public generosity

Malaysia

Sanusi’s gambling stance puts PAS manifesto under scrutiny

By Alfian Z.M. Tahir

Malaysia

Zahid’s game plan is opening up

Malaysia

Chew Jetty fire: Business owners lose everything in the blink of an eye

By Ian McIntyre

Malaysia

SMART Team leaves for Nepal today as search for 55 Malaysians continues

Diary

Mother Teresa - one of the foremost humanitarian figures of the 20th century died today, 29 years ago

You may be interested

Business

Younger Malaysians fuel surge in retail investing prompting stronger scam protection

Business

Malaysia has great potential to become regional marine fuel hub, boost revenue – expert

Business

Malaysia must give investors clearer exits to unlock ASEAN capital

By Alfian Z.M. Tahir

Business

Oil prices post sharp weekly gains as US-Iran hostilities disrupt supply