By Yussof J. Imbang
KOTA KINABALU; Subsidiary operations under the Sedco Group that fail to achieve profit within a year will go through a ‘managerial buyout’ process or be closed, according to its chairman, Datuk Masiung Banah.
“If we defend a losing company and burden the parent agency, it’s like we’re playing ‘own goal’ football.
“We want to see their performance, whether the target is achieved or not. If it is not achieved, why? … If it is achieved, we need to improve it,” he stressed when met by the media after the Sedco Group Chairman and General Manager Mandate meeting here yesterday.
The Kuamut representative insisted on implementing significant reforms to the governance of subsidiaries that are less competitive in the industry they are involved in.
Masiung said that companies that fail to achieve key performance indicator (KPI) targets need to submit an action plan to improve their current situation and financial position.
Commenting further, he and Sedco top management are currently in the process of evaluating the Chief Executive Officers (CEOs) of corporate companies under the Sedco Group regarding the effectiveness of their work.
“Although so far there have been no serious reports of corporate misconduct in structures involving subsidiaries, their operations should be monitored every three months.
“I not only give instructions, but I will go down to the field from time to time to monitor the operations of these subsidiaries,” he added.
According to Masiung, there are about 23 subsidiaries operating in various industries under the Sedco Group.
According to him, three companies will be the main focus this year to generate the state’s economic chain, namely Sedco Mining Sdn Bhd, the Kudat Blue Economy Park project and Borneo Cement (Sabah) Sdn Bhd.
Deputy General Manager of Sedco Group, Haji Azrul Haji Ahmad, was also present at the 2026 mandate meeting.
