09-06-2025
Purpose Sabah GLCs set up defeated
Published on: Monday, June 09, 2025
Published on: Mon, Jun 09, 2025
By: David Thien Text Size: Former Sabah Law Society President Datuk Roger Chin (left) and a retired banker Datuk John Lo. Kota Kinabalu: Sabah's Government-linked companies (GLCs) should be profit-centres earning billions in ringgit for Sabah. As economic force multipliers they should be providing high income jobs to thousands of Sabahans as they embark on down-streaming for export. If successful, they could be listed on Bursa Malaysia to raise development funds.
Advertisement That was the ideal situation envisioned by former Chief Minister Tan Sri Harris Salleh when he initiated the set-up of many Sabah GLCs during the Berjaya administration. Subsequent Sabah Governments proliferated many more GLCs, with little consideration of their economic purposes or roles. Mostly to give perks to political warlords and cronies. Good governance was thrown out of the window. The result is some 250 GLCs today, most of which are poorly managed and bleeding millions of ringgit.
Advertisement The present State Government's placement of more professionals in the management of GLCs in an attempt to reform and turn around loss-making GLCs is in the right direction, according to retired banker Datuk John Lo. He shared his opinions in a 'Sabah Voices to Action' podcast with former Sabah Law Society President Datuk Roger Chin with Kopi Tiam Council hosts Adi and Haffisz organised by NGO Sabar recently on 'Economic Imperative on Stringent Governance for Sabah's GLCs'. 'I always feel we Sabahans are our biggest enemies because people who have been put in trust are not doing their job,' Lo said Harris used GLCs to propel the boom during the Berjaya government, instead of just using government departments. 'One of the main reasons being GLCs are very private sector driven and should be able to help Sabah develop faster. During his (Harris) time, the GLCs generally speaking did a very good job. 'There was a big boom.' Lo, who is an advisor to the State government in his role in the Sabah Economic Advisory Council (SEAC) and in the Institute of Development Studies (IDS). Lo recalled how Harris started a number of GLCs when he became Chief Minister. Harris' intention was that these GLCs would help to expedite the development of Sabah. To a large extent, Harris succeeded. Sabah became No. 2 state in Malaysia, after Selangor. Since he left office, Sabah has become No.2 from the bottom. Some of the GLCs that Harris created include Sabah Gas, Sabah Energy, Sabah Methanol, Asean Supply Base, Sabah Air, Sabah Forest Industries (SFI), Tanjong Aru Beach Hotel or TABH [now Shangri-La Tanjong Aru Resort], Labuan ShipYard, Sabah Hot Briquetted Iron, KPI, SUDC, Sabah Cement Industries. Significantly, Harris also gave birth to three financial institutions – Sabah Development Bank, Sabah Bank and Sabah Finance. Unique because no other state has ever been granted approval for three financial institutions bearing the name of the state. GLCs dominate every important economic sector in Sabah. GLCs are in effective control of many natural resources: mining/minerals [SMM], timber and FMU [Innoprise, Safoda]. 'The GLCs have been given the most valuable lands in Kota Kinabalu. All the commercial lands were given to the GLCs for a mere RM1,000. 'And then they go and JV (joint venture) with somebody and today a particular GLC is insolvent, instead of making billions. The GLCs are in control of a lot of our assets from oil palm plantations which are worth in the billions, with monopolies like Cement Sabah etc. 'Every aspect of our economic life, we have some GLCs involved,' Lo revealed. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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