Latest news with #Innoprise
Daily Express
2 days ago
- Business
- Daily Express
Sabah GLCs mostly ‘blackholes'
Published on: Saturday, June 07, 2025 Published on: Sat, Jun 07, 2025 By: David Thien Text Size: From left – Adi, Roger Chin, Lo and Haffisz. Kota Kinabalu: A majority of the 250-odd Sabah GLCs (Government-linked companies) are like 'blackholes' sucking away financial resources from Sabah. But there are a few bright stars. 'These statutory bodies and GLCs produced only RM143m dividends to the Sabah Government, of which RM50m was from SMJ Energy. Only a small number can generate dividends for the government. The performance of the rest is pathetic,' said Datuk John Lo, a former banker and now in the Sabah Economic Action Council (SEAC). Advertisement The other profitable GLCs include Sabah Foundation's subsidiary Innoprise, Sabah Energy Corporation, Sogip, Sogdc, POIC Lahad Datu, Suria Capital, Sabah Credit Corporation and Sawit Kinabalu. Lo was a guest panel speaker at the NGO Sabar – Kopi Tiam Council podcast on 'Oversight & Reform of government-Linked Companies (GLCs) Transparency, accountability & Corruption Prevention session, recently. 'Most are either non-performing or underperforming,' Lo said and pointed out that GLCs hold many monopolistic rights for example, cement [Sabah Cement Industries], ports [Suria, POIC Sandakan and POIC Lahad Datu], water [Jetama] and fishing landing rights [Safma]. They have been granted very cheap but extremely prime land, most of them at RM1,000 premium. [Innoprise, SUDC, subsidiary of Sedco, Suria, SICC, Sabah Energy, TAED.]. Advertisement Others have been vast acreage of valuable agricultural land for free or at nominal premium. [Sawit Kinabalu, KPD, Sabah Softwood.] Then there are those who have been granted cheap and valuable land for industrial park [KKIP, Sogip, POIC Sandakan and POIC Lahad Datu, Asian Supply Base in Labuan] or granted concession rights in oil and gas, river and sea sand [Sabah Energy, Sabah Gas, SMJ Energy, Sedco]. GLCs are also into hotels, resorts and jungle resorts [Innoprise, Sedco and Sabah Air] or granted exclusive JV preference with Sabahan and non-Sabahan companies. 'Most significantly, many GLCs have become a huge liability and drag on Sabah's economic growth. Allowing GLCs to continue without proper governance will result in serious economic consequences. Sabah can never catch up,' he said. In most cases the political appointments of chairmen, board of directors and senior management have been inappropriate. 'GLCs are still bleeding losses year in year out. Sabahans are subsiding these losses that have easily run into billions the last 35 years. The accumulated losses are staggering,' he said. What is worse is that some of these GLCs have sold or entered into JVs in many valuable assets like prime commercial and agriculture land, buildings, monopolies and concessions, most of which are lopsided against Sabah. These GLCs have taken huge loans from the government and banks [especially SDB] that they cannot service or repay, often forcing Sabah taxpayers to bail them out. 'They enter into many lopsided JV agreements against the interests of Sabah. They have the greatest number of failed JV projects that need rescue by 'white knights'. 'These billions of dividends can be tax free and can transform Sabah's economic ownership back to Sabahans. The greatest impact is job creation. If each GLC, on average, can create an additional 100 jobs, there will be additional 25,000 jobs!' said Lo. 'This money could have been used for the hard-core poor, repair or investment in infrastructures, health, scholarships or to build two or three universities. 'The GLCs have many JV projects that are suspended or non-start for years.' 'SDB's revamp is showing encouraging results. Keep an eye on Sabah Energy as it will be the new performing star.' Lo was pleased that Chief Minister Datuk Seri Hajiji Noor has appointed suitable Sabahans to head some boards and management e.g. SDB, SMJ Energy, Sabah Energy, Sogip, Sogdc and the latest, a new Group GM for Sedco. Hajiji has appointed advisors on the economy, oil and gas, energy, tourism and international affairs. Notably, he said state Finance Minister Datuk Seri Masidi Manjun has appointed a task force on GLCs. Masidi has also appointed an oversight committee for GLCs. 'Hopefully, the revamp of GLCs will lead some of them to be listed on Bursa. Bursa will impose demanding and stringent governance requirements on these GLCs. 'GLCs that have independent board of directors and professional management appointed by Hajiji and Masidi are turning around with noticeable improvements. 'It is imperative that future Sabah governments continue to revamp, rationalise the GLCs. 'Focusing on and sorting out the mess in Sabah's GLCs is a critical economic issue for every Sabahan, especially for the present young generation and their children. These GLCs are eroding away their future. 'I hope all Sabahans, every man, every woman, every voter, after listening to Sabar's podcast, will support the reformation, transformation and rationalization of Sabah's GLCs. 'It is in every Sabahan's interest to see to it that all GLCs succeed,' Lo stressed. * 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Yahoo
08-05-2025
- Business
- Yahoo
Innoprise Plantations Berhad (KLSE:INNO) is a favorite amongst institutional investors who own 51%
Key Insights Institutions' substantial holdings in Innoprise Plantations Berhad implies that they have significant influence over the company's share price 50% of the company is held by a single shareholder (Yayasan Sabah Group, Endowment Arm) Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock We've discovered 1 warning sign about Innoprise Plantations Berhad. View them for free. A look at the shareholders of Innoprise Plantations Berhad (KLSE:INNO) can tell us which group is most powerful. The group holding the most number of shares in the company, around 51% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. In the chart below, we zoom in on the different ownership groups of Innoprise Plantations Berhad. See our latest analysis for Innoprise Plantations Berhad KLSE:INNO Ownership Breakdown May 8th 2025 What Does The Institutional Ownership Tell Us About Innoprise Plantations Berhad? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that Innoprise Plantations Berhad does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Innoprise Plantations Berhad's historic earnings and revenue below, but keep in mind there's always more to the story. KLSE:INNO Earnings and Revenue Growth May 8th 2025 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Innoprise Plantations Berhad is not owned by hedge funds. Our data shows that Yayasan Sabah Group, Endowment Arm is the largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 22% and 1.7% of the shares outstanding respectively, TSH Resources Berhad and Mutual Corridor Sdn Bhd are the second and third largest shareholders.
