KUCHING: The Sarawak Government will introduce a clearer framework to enable profitable statutory bodies with healthy financial surpluses to contribute cash returns to the state.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the initiative forms part of the state’s broader efforts to enhance the performance and accountability of state-owned enterprises (SOEs) and statutory bodies under the Sarawak SOEs Transformation Programme.
“This initiative will help broaden the state’s revenue base, strengthen financial discipline, and ensure that public resources are utilised more effectively to support Sarawak’s development agenda.
“Ultimately, stronger SOEs must create stronger value, not only for themselves but also for the state and the rakyat they serve,” he said during the ‘Sarawak SOEs Transformation Programme: A Pledge for Good Governance, High Performance and Value Creation’ at Riverside Majestic Hotel here today (June 11).
Abang Johari said stronger and more profitable SOEs must contribute more meaningfully towards Sarawak’s development, stressing that dividend payments should be viewed as returns to the people rather than merely a compliance obligation.
“For profitable government-linked companies (GLCs), dividend contributions should not be viewed merely as a compliance requirement,” he added.
“They are a return to the people of Sarawak and a contribution towards funding roads, schools, welfare assistance, rural development and future investments.”
He urged profitable entities not to limit themselves to the minimum dividend payout when they are in a position to contribute more, adding that stronger corporate performance should translate into stronger returns to the State.
He acknowledged that challenges remain despite the progress achieved under the transformation programme, particularly in relation to dividend contributions and inactive companies.
Abang Johari revealed that 18 GLCs had recorded profits but had yet to declare dividends, while 30 companies were identified as dormant, with some remaining inactive for many years and others lacking clear justification for their continued existence.
“These are issues that cannot be ignored. Public resources are limited and must be utilised responsibly. Every entity must have a clear purpose and a clear mandate,” he said.
He stressed that where SOEs are no longer delivering value, the state must be prepared to make difficult decisions through restructuring, consolidation, divestment or, where necessary, closure.
He also disclosed that a comprehensive assessment conducted by the State Financial Secretary’s Office covering 36 entities comprising 17 statutory bodies and 19 GLCs found that many statutory bodies remain heavily dependent on government support, with grants accounting for about one-third of their total income and funding approximately 44 per cent of their operating expenditure.
He described the findings as a reminder of the need for stronger stewardship, accountability and prudent management of public resources entrusted by the people of Sarawak.
