State government-linked companies (GLCs) that fail to post profits for five consecutive years risk being shut down, Chief Minister Datuk Seri Hajiji Noor has warned.
Hajiji stressed that his administration will not hesitate to close any GLC with no prospect of recovery. He also reminded all statutory bodies and GLCs of the minimum dividend payment requirement of 10 per cent of profit after tax.
“This is a long-established requirement, and I expect all GLCs to demonstrate financial discipline and full commitment in fulfilling this obligation,” he said during a dividend and contribution presentation for GLCs and statutory bodies.
Starting next year, Hajiji said he expects higher annual contributions from GLCs, ranging from RM2 million to RM10 million depending on each company’s capacity and performance.
He added that chief executive officers, group general managers, and general managers of GLCs and statutory bodies will be required to submit quarterly performance reports directly to him. Reports must cover project progress, financial status, KPI achievements, and operational efficiency.
“Anyone who fails to submit the report, does not meet KPIs, or performs unsatisfactorily will have their position reviewed, including possible replacement or termination,” Hajiji said.
According to current reports, overall GLC performance remains at a medium level, with total dividends and contributions to the state government reaching RM131.6 million, down from a record RM156.31 million in 2022.
Hajiji later received dividend and contribution cheques totaling RM131.6 million, with SMJ Energy Sdn Bhd being the largest contributor, paying a RM50 million dividend and RM1 million to the State Natural Disaster Committee.
