KOTA KINABALU, Dec 18 — Chief Minister Datuk Seri Hajiji Noor has put Sabah’s underperforming government-linked companies (GLCs) on final notice.

In a blunt warning today, he said he would have no issue shuttering any that fail to turn a profit for five consecutive years.

“The state government will not hesitate to issue a shutdown order if the GLC concerned does not show any prospect of recovering,” he said at a dividend presentation ceremony at Menara Kinabalu.

The warning is part of a major shake-up aimed at transforming the state’s GLCs into efficient and trusted economic drivers.

Hajiji announced a raft of new measures to strengthen corporate governance and accountability. 

These include a revamp of GLC chairmen and board members to inject new leadership, and a new requirement for all CEOs and general managers to submit quarterly performance reports directly to him.

He warned that any leader who fails to submit the report, meet their KPIs, or demonstrates unsatisfactory performance will have their position reviewed, “including the possibility of replacement or termination of service.”

The chief minister also reminded the GLCs regarding their financial obligations to the state. 

He reiterated that all profitable GLCs must comply with the minimum dividend payment of 10 per cent of their after-tax profit.

“In addition, beginning next year, I also want to see an increase in the annual contribution levels from GLCs, ranging from around RM2 million to RM10 million, depending on the company’s capacity,” he said.

The crackdown comes as the overall performance of the state’s GLCs is considered to be at a “medium level.”

The total dividends and contributions paid to the state this year amounted to RM131.6 million, down from a peak of RM156.31 million in 2022.

“I believe the true potential of government-owned agencies is far greater than what has been achieved so far,” Hajiji said.

He stressed that a dynamic and results-oriented leadership team is needed to steer Sabah into a n