Engagement session bolsters operational sustainability, monitor STIDC subsidiaries’ financial positions

KUCHING: The second engagement session between Sarawak Timber Industry Development Corporation (STIDC) and its subsidiaries aimed to bolster operational sustainability and monitor financial positions across the subsidiaries.

STIDC general manager Zainal Abidin Abdullah said the programme focused on enhancing organisational governance quality by prioritising integrity, transparency, and accountability in managing operations and finances.

The programme addressed global economic uncertainties exacerbated by the Covid-19 pandemic, such as inflation and reduced demand for timber products.

“I emphasised that the annual engagement was crucial for collectively identifying issues and strategic steps to ensure the sustainability of STIDC’s subsidiaries and align with the company’s strategic goals.

“The session emphasised
the importance of the Strategic Plan in advancing sustainable transformation within the timber industry and enhancing economic viability through higher-value chains.

“Corporate governance, encompassing ethical behaviour, accountability, transparency, and sustainability, played a critical role in achieving company goals and preventing conflicts,” he said.

He added that effective governance mechanisms, including Corporate Planning, Key Performance Indicators (KPIs), and Standard Operating Procedures (SOPs), ensured robust decision-making and risk management, benefiting shareholders and stakeholders alike.

“The introduction of the ‘State Investment Guidelines
and Policies’ in 2024 mandated STIDC and its subsidiaries to adhere to investment regulations, enhancing transparency and stakeholder confidence.

“The State Dividend
Policy required subsidiaries to distribute dividends of at least 10 per cent of net operating profit, reinforcing cooperation with the state government’s economic objectives.

“STIDC actively participated in drafting the Roadmap Towards Financial Self-Reliance for 2025-2030, focusing on evaluating financial conditions, establishing transformation goals, and ensuring effective implementation. The strategic plan aimed to achieve sustainable financial independence, with subsidiary companies preparing strategic plans and cash flow budgets to support these objectives.”

The engagement session marked a positive stride towards informed decision-making and goal
attainment for STIDC and its subsidiaries.