KUCHING: The Sarawak Timber Industry Development Corporation (STIDC) received accumulated dividends of RM212 million from its 40 subsidiaries and seven associates up to last month.
Deputy Sarawak Premier Datuk Amar Awang Tengah Ali Hasan said the dividends are from timber, bamboo, oil and gas, agriculture, forest plantation, biomass, furniture, port, airport, aviation, insurance and hotels activities.
"These investment entities play a vital role to enhance the STIDC group's financial strength and in its broader mission of advancing Sarawak's economic development."
He said this in a speech at the opening of the Navigating the Companies Act 2016 and Assessing the Duties, Responsibilities, Rights and Powers of Company Directors seminar.
His speech text was read by Sarawak Deputy Natural Resources and Urban Planning Minister Datuk Len Talif Salleh.
Awang Tengah said among the active subsidiaries are Harwood Timber Sdn Bhd, Tanjung Manis Resources Sdn Bhd, Saratim Insurance Agency Sdn Bhd, Tinamou Sdn Bhd, Teratim Sdn Bhd, Amra Timber Sdn Bhd, Balamra Sdn Bhd, Kestrel Sdn Bhd and Selah Timber Sdn Bhd.
"For those who are underperforming, I urge you to revisit your vision and mission, formulate and implement a business turnaround plan and create strategic initiatives and actions to turnaround your company.
"You need to explore new business opportunities and find new sources of revenue.," he said, adding it is no longer sustainable for companies to rely solely on shareholders to inject funds or provide loans.
Awang Tengah, who is state Second Minister of Natural Resources and Urban Planning, stressed that self-reliance and self-governance are pillars for future growth and sustainability.
He said the timber industry is projected to achieve RM8 billion in annual export earning by 2040 as the state aspires to become a high income state by then.
He said beyond the timber industry, Sarawak's economic landscape is transforming rapidly, particularly in areas like sustainability, the green economy, and renewable energy.
"The state has undertaken several bold initiatives to strengthen its economic ecosystem, and these developments offer significant opportunities for our STIDC group of companies."
He said the the Sarawak government's bold moves in taking over of the Bintulu Port has placed Sarawak as the leading hub for liquefied natural gas (LNG).
"We have also seen Sarawak's plan to establish a Central Port Authority that will manage, regulate, control, and administer all ports in the state.
"This unified structure will ensure better efficiency, governance, and integration of port operations, and enables Sarawak to compete globally in trade and logistics," Awang Tengah said.
He urged directors of STIDC subsidiaries to ensure that their companies are aligned with the aspirations of the state government, saying that diversification, innovation and sustainability are no longer optional.
"They are essential for staying competitive in this fast-changing environment. Our companies must proactively explore new markets, adopt green technologies, and consider sustainable practices to remain relevant in the long term," he added.
On the seminar, he said it is a much-needed platform for STIDC and its subsidiaries to equip themselves with the latest governance practices and legal requirements, as outlined in the Companies Act 2016.
He said the knowledge gained will not only improve their governance but will empower them to lead their companies effectively in these challenging and exciting times.