KOTA KINABALU, Oct 1 —  State government linked companies(GLCs) will be under close watch as Chief Minister Datuk Mohd Shafie Apdal mulls shutting down certain companies and taking action against those found abusing the system.

Shafie, in a thinly-veiled threat, said that he would be "cleaning up” and restructuring some of the companies who have been found to be non-performing or involved in corruption.

"I am monitoring all of them. I won’t spell out what I am doing, but I am working with relevant agencies and the moment something happens, I will act,” he said in a press conference today after addressing the chairman and directors of some 160 state-owned GLC here today.

Shafie said that GLCs were a crucial vehicle for the government and needed to be in optimum form to be able to benefit the people.

"We must set a good example and ensure success of the GLCs for the benefit of the state and its people. I’ve said this to my ministers, if you change your lifestyle and build big houses now, I will change you,” he said in his speech earlier.

Using the beleaguered state fund 1Malaysia Development Board as a reminder, he said directors that failed in their duty to highlight the dangers of any decision by the boards or their management would be landing not just themselves, but everyone in difficult times.

He said that he was open to ideas and criticism as the big picture was to ensure that everything was for mutual benefit.

"I am ready to be told I am wrong. You can reject my opinion, that’s ok. I am open to views and suggestions for the good of the state, because if something goes wrong, it is everyone’s job at stake,” he said.

Shafie said he is in the process of evaluating which GLCs would be restructured, merged and even shutdown.

"Some have been operating at high cost for years and high capital but with no return of investment. Some will be restructured, others might merge with other agencies. It is not wise to sustain some so we might even shut them down. We will announce when it is due,” he said.

He pointed out Yayasan Sabah and its subsidiaries which had 1.1 million hectares of land, but have failed to develop the timber industry adequately.

"They are involved in many things. We need to see how best optimise their resources and focus to ensure they develop into strong Sabah-based companies,” he said.