KOTA KINABALU, May 21 — Sabah Umno has called for a comprehensive overhaul of state government-linked companies (GLCs) following concerns raised by the state Attorney-General over financial “sinkholes.”
Sabah Umno chief Datuk Seri Bung Moktar Radin said there is an urgent need to reform the management of state-owned enterprises.
“GLCs should serve as engines of growth for Sabah — not as liabilities to the government and the people. It is high time for a stricter regulatory system to ensure that every business decision made by GLCs genuinely serves public interest and not just a privileged few,” he said.
He proposed that the state government, through the Finance Ministry, conduct a comprehensive reassessment of all existing GLCs to evaluate their operational efficiency, business models, and leadership effectiveness.
“If any are no longer relevant or have become burdens to the state, restructuring should be considered to ensure fiscal prudence and Sabah’s long-term well-being,” he said.
The Lamag assemblyman and former works minister said issues of financial leakages and losses within GLCs were not new and welcomed the state government’s decision to tighten oversight by requiring all GLC business documents to be vetted by the Attorney-General and approved by the Cabinet.
“These steps must be implemented seriously, consistently, and transparently.
“GLCs are entrusted with public resources. When they fail, it’s not just a financial issue — it’s a governance crisis. The time has come for a full evaluation of their performance, leadership, and relevance to the state’s economic needs,” he said.
Bung urged the Finance Ministry to lead the comprehensive review of all GLCs in Sabah, assessing their operational efficiency, business models, and leadership. He said underperforming or outdated entities should be restructured or wound down.
“If a GLC no longer serves the public interest or has become a fiscal burden, then restructuring is not just an option — it is a necessity. We must protect public funds and ensure they are used for the long-term benefit of Sabahans,” he said.
He also cautioned against politicising the issue and called for bipartisan cooperation.
“I urge all stakeholders to put aside political differences in this matter. We must move forward with one voice to ensure that state assets are managed responsibly, because ultimately, it is the people who will suffer the consequences if GLCs continue to fail,” he said.
Recent disclosures of possible corruption cases involving some Sabah GLCs have added public pressure on the state government to improve enforcement and transparency in managing state resources.
Sabah has over 200 GLCs, most of which are underperforming, with many recording millions of ringgit in losses annually.
