Find own revenue, GLCs told

Trail of transparency: Abang Johari (centre) and Auditor-General Datuk Wan Suraya Wan Mohd Radzi (right) visiting an exhibition booth at the National Auditors Conference in Kuching. — ZULAZHAR SHEBLEE/The Star

Sarawak to cease funding them from 2027, says Premier

KUCHING: The Sarawak government will no longer fund government-linked companies (GLCs) from 2027, starting with the Sarawak Economic Development Corporation (SEDC) and Bintulu Development Authority (BDA), says Tan Sri Abang Johari Openg.

The Sarawak Premier said the savings from the move would be channelled into developing infrastructure in the state.

“We (currently) give a budget to GLCs and statutory bodies.

“What we want now is for them to find their own revenue because some of their subsidiaries are involved in commerce,” Abang Johari told reporters after opening the National Auditors Conference here yesterday.

He said GLC subsidiaries involved in palm oil, for instance, could expand their revenue by exploring new products and innovations such as waste-to-energy.

“That’s where they can get new revenue streams for the main statutory bodies.

“So, the government doesn’t need to give them money,” he said.

Abang Johari added that it is important for GLCs to change their mindset of depending on the government for funding.

“Otherwise, they will think it doesn’t matter if they make losses, since the government will give them money. This culture has to change.

“They must work hard to find revenue,” he said.

Abang Johari said the state government will use the savings to implement basic infrastructure projects, like those involving schools and clinics, which will benefit the people.

He declined to say how much the government expects to save from the move.

Abang Johari also said SEDC and BDA were selected first for the move because of their potential to make investments and earn revenue.

He said SEDC has a stake in a methanol project while BDA could invest in industries at the Samalaju Industrial Park.

“I am confident that they can stand on their own.”

In his speech earlier, Abang Johari said the move to stop funding GLCs is aimed at achieving lean management and strengthening their financial position.

He said GLCs should explore sectors that would give them good returns.

“With this approach, both the GLCs and the government will have a strong financial position,” he added.