CM: Three Important Aspects Way Forward for State Statutory Bodies and GLCs

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KOTA KINABALU: Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor reminded all State Statutory Bodies and Government-Linked Companies (GLCs) to focus on three important aspects of their agencies’ direction or hala tuju.
Apart from focusing on achievements and performance, it was the board members’ role to ensure that their agency has a set of hala tuju.
He said the first aspect is; for government agencies that are still receiving grants from the State Government, a programme to reduce dependency on government funds in stages and subsequently achieve self -reliance must be in their hala tuju.
The second aspect, according to him was for Statutory Bodies that has commercial potential to find a new approach to place value and price on their services, as well as to develop a core business that can generate income to fund social and economic activities.
“Government agencies also need to explore potential for strategic collaboration between agencies, to avoid competing with each other and venturing into overlapping sectors.”
“The third aspect is for the government agencies to look at external opportunities, especially in neighbouring states or countries. For example, to consider the potential opportunities that can be gained following the proposed relocation of the Indonesian capital from Jakarta to Kalimantan,” he said.
The Chief Minister said this when officiating at the closing ceremony of the 2021 State Statutory Bodies and Government Agencies Board of Directors Course held virtually here today.
Organised by the Finance Ministry, the annual course, which is compulsory for all board members of statutory bodies and government agencies was attended by some 300 participants.
The course has relevance to Hajiji’s announcement on June 13 on the revamped Corporate Policy and Governance Monitoring Committee.
Hajiji who is also Finance Minister said the revamp was aimed at strengthening and enhancing the supervision as well as corporate governance of all state statutory bodies and GLCs.
“It must be reminded that statutory bodies and GLCs are subject to Government Circulars and that the Finance Ministry will oversee among others the corporate governance aspects for any possible abuse and mismanagement,” he said.
Apart from that, he said all business proposals must first undergo tight scrutiny to ensure it really benefit the State Government and will bring about long-term financial stability as well as commercially viable for high investment returns.
“While we are currently facing the COVID-19 pandemic, which has in one way or another 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.
Leaders of all state statutory bodies and GLCs must carry out their responsibility to contribute to the state’s coffers, he said, adding this was not an option but a duty that must be discharged by them to the State Government.
According to him, government agencies are 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 technology innovations were happening rapidly.
“Therefore, government agencies need to think and understand the megatrends and be ready to assimilate with the rapidly changing technological trends,” he stressed.