GLCs Face the Axe for Underperformance

All statutory body and Government-linked companies (GLCs) must now comply with a minimum dividend payment rate of 10 per cent of profit after tax or else face closure. Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor warned that any GLC which fail to perform for five consecutive years face the axe. From 2026 onwards, GLCs must increase their annual contribution between RM2 million and RM10 million.

Chief executive officers, group general managers and general managers of GLCs and statutory bodies must submit quarterly written performance reports directly to the CM. “We will revamp management and leadership of GLCs and inject new leadership into these companies,” Hajiji said at the ‘GLC and Statutory Bodies Dividend and Contribution’ presentation on 18 December 2025 at Menara Kinabalu.

“GLCs must have a leadership team that is dynamic, professional and results oriented.” The overall performance of GLCs remains at “a medium level”, with total dividends and contributions paid to the State Government at RM131.6 million compared with the highest recorded in 2022 at RM156.31 million. During the event, Hajiji received dividend payments from various GLCs and statutory bodies totalling RM131.6 million.

The highest contribution of RM50 million was from SMJ Energy Sdn Bhd, which also gave a RM1 million contribution to the State Natural Disaster Committee. Hajiji welcomed the Malaysian Anti-Corruption Commission (MACC) recommendation that each agency appoint a Certified Integrity Officer or establish an Integrity Unit as an internal oversight mechanism.