KUCHING, June 25 — The state government will no longer be providing annual capital contributions to government-linked companies (GLCs), starting with Borneo Development Authority (BDA) and Sarawak Economic Development Corporation (SEDC) by 2027, said Premier Tan Sri Abang Johari Openg today.

He said the state government wants them to look for their own revenue by venturing into businesses that generate profits.

“Some of the subsidiaries of these GLCs are involved in commerce and in economic activities, just like running private companies,” he told reporters after opening the national auditors conference at the Borno Convention Centre Kuching (BCCK) here.

Asked to elaborate on his opening speech, he said as a start, the state government chose BDA and SEDC before stopping providing capital contributions to other state GLCs.

He said there will be no more capital contributions to BDA and SEDC by 2027.

Abang Johari said both these two GLCs have the potential to generate their own revenue.

“For example, SEDC is involved in a methanol plant in Bintulu while BDA has potential investments in Samalaju Industrial Park.

“So I don’t have to give them money anymore for them to run. They must find ways to get their own revenue, and I have given them the guideline how to run their business,” he said.

He said he is confident that both BDA and SEDC can stand on their own feet without the capital contribution from the state government.

He said there are GLCs which profit every year while others are making losses.

He called GLCs to monitor the performances of their subsidiaries to ensure that they are profitable.

He said the state government will save funds that can be channelled to other areas, such as road infrastructure and water and electricity supplies and repair works for dilapidated clinics and schools.

The premier said GLCs should stop thinking there is no need for them to make profits on grounds that they will still be getting funds from the state government even if they do not make profits.

“That should not be the mindset. They must change the mindset,” he stressed.

He said the state government will save a lot of funds by stopping providing funds to GLCs.

Earlier in his speech, the premier said GLCs must operate like the private companies do, not relying on the state government for yearly allocations for their operation.

He said they must be responsible for their own funds and must be disciplined.