KUCHING (June 25): The Sarawak government will in future no longer set aside capital outlays for government-linked companies (GLCs), starting with the Sarawak Economic Development Corporation (SEDC) and Bintulu Development Authority (BDA) from 2027, said the Premier.

Datuk Patinggi Tan Sri Abang Johari Tun Openg said these GLCs would have to look for their own provisions just like private companies.

“I have given instructions for the first two GLCs, namely SEDC and BDA, that by 2027 the government will no longer be giving funds to them. They are on their own.

“They would have to find their capital outlays, multiply their investments, and they will have to explore businesses that will give them returns.

“On top of that, the GLCs would have to give dividends back to the government,” he said when officiating at the National Auditors Conference here today.

He said this step is part of the Sarawak government’s efforts towards lean management practices so that it can achieve sustainable and profitable efficiencies while using available funds to upgrade infrastructure, including schools and clinics.

“With the savings, we will be able to upgrade infrastructure for the people while at the same time, strengthen our financial position.

“In addition, the GLCs can also venture into sectors that can give them returns thus increasing economic activities throughout Sarawak,” he said.

Abang Johari said lean management would also enable the state government to safeguard its finances and prevent leakages of allocations channelled to various departments.

“The government has departments which have their own responsibilities respectively and they must manage the allocations that have been given to them in the budget under a responsible and disciplined manner.

“What is happening here is that every year they would put in a budget to get allocations and they also have some companies operating under them. Sometimes they’ve forgotten that they’ve asked for capital contribution.

“When it becomes a system, the government has to give them capital outlays every year without knowing the returns to the government and that is where the leakages happen,” he explained.

Abang Johari later told reporters that SEDC and BDA were selected because they have the potential to generate their own income.

“For example, SEDC has methanol, and they can generate income from that. So, I would no longer need to give them funds to operate.

“The same goes for BDA, which has a lot of investment potentials due to Samalaju. They need to find a way, but I will guide them,” he said.

He added the new directive would not affect local authorities as they provide services and were not businesses