KOTA KINABALU: It is vital for Sabah's statutory bodies and government-linked companies (GLCs) to put in place their respective directions amidst the challenging socio-economic landscape brought about by the pandemic.
Chief Minister Datuk Seri Hajiji Noor said this while urging the board members of these entities to focus on three important aspects in their performances.
The first aspect is for these entities to gradually reduce its dependency on the state government in a bid to work towards some form of self-reliance.
Secondly, statutory bodies with commercial potential have to find a new approaches to generate income to fund social and economic activities.
"Government agencies must also explore potential for strategic collaboration between agencies to avoid competing with each other and venturing into overlapping sectors.
"The third aspect is for government agencies to look at external opportunities, especially in neighbouring states or countries.
"As an example, (Sabah statutory bodies and GLCs) should consider potential opportunities that can be gained following the proposed relocation of the Indonesian capital from Jakarta to Kalimantan," Hajiji said when closing the 2021 State Statutory Bodies and Government Agencies Board of Directors Course held virtually here today.
About 300 participants from statutory and government agency board members attended the compulsory annual course organised by the state Finance Ministry.
The course is related to the revamped corporate policy and government monitoring committee announced by the Chief Minister on June 13.
Hajiji, who is Sabah Finance Minister, said the revamp was aimed at strengthening and enhancing the supervision and corporate governance of all state statutory bodies and GLCs.
"It must be reminded that statutory bodies and GLCs are subject to government circulars. The Finance Ministry will oversee the corporate governance aspects for any possible abuse and mismanagement."
He said all business proposals must undergo tight scrutiny to ensure it would really benefit the state government and bring long-term financial stability. Such proposal must also be commercially viable for high investment returns.
"While we are currently facing the Covid-19 pandemic, which has affected our country's economy, I hope all appointed heads will take steps to streamline and take initiatives to improve the country and state's economic recovery," he said.
All state statutory bodies and GLCs have the responsibility to contribute to the state's coffers, Hajiji said, adding this was no longer an option, but a duty that must be discharged to the state government.
He said government agencies were not spared from changes in the global landscape, such as megatrends involving the Fourth Industrial Revolution.
He said the emergence of latest technologies such as artificial intelligence, robotics, nanotechnology and various other technological applications showed that technological innovations were rapidly happening.
"Government agencies need to think and understand megatrends and be ready to assimilate with the rapidly changing technological trends," he said.