New governance regime to determine which Sarawak-owned enterprises survive or face shutdown

Datuk Abdullah Saidol

By Shikin Louis

KUCHING, June 11: Sarawak’s new corporate governance framework for State-owned enterprises will ultimately determine which entities remain viable and which may require restructuring, revamping or even closure, says Deputy Minister in the Sarawak Premier’s Department (Corporate Affairs, Information and UKAS) Datuk Abdullah Saidol.

Describing the initiative as a timely and bold move by Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg, Abdullah said the reform agenda goes beyond promoting good governance and is aimed at ensuring real compliance with best corporate practices across State-owned enterprises and government-linked companies.

“This particular policy is the brainchild of the Premier about wanting all Sarawak-owned enterprises and government-linked companies not merely embracing the culture and principles of corporate governance but imposing real compliance by adopting best corporate practices,” he said in a statement today.

According to Abdullah, the move is intended to ensure government grants and investments channelled through State-owned entities are professionally managed, financially viable and capable of delivering meaningful returns.

He said the introduction of the Sarawak Code of Corporate Governance should not be viewed as merely another set of guidelines, as all State-owned enterprises and government-linked companies are expected to gradually strengthen their management frameworks and governance structures.

Particular emphasis, he said, will be placed on reinforcing audit functions, risk management mechanisms and prudent financial practices.

“All this corporate exercise or compliance will determine which entity will continue to become a going concern or the feasibility of some corporations being revamped or dissolved,” he added.

His remarks come in the wake of Abang Johari’s announcement of a wide-ranging transformation programme for State-owned enterprises aimed at improving governance, performance, accountability and value creation.

Abdullah said the reforms are not solely intended to reduce dependency on government grants, but to ensure public investments generate tangible economic and social returns.

“Eventually, this policy is not just merely to reduce too much dependency by State-owned enterprises and government-linked companies on government grants but also to ensure invested government funds eventually result in real economic value in terms of dividends or positive social impacts,” he stressed. — DayakDaily