KUCHING: The Sarawak State-Owned Enterprises (SOEs) Transformation Programme is expected to reduce the need for government operating grants by RM403 million by the year 2030, thereby strengthening the state's financial position and allowing more funds to be channelled into development projects for the people.

Sarawak Premier Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg said that reducing reliance on government funding is among the key outcomes targeted through the implementation of the Sarawak SOE Transformation Programme, which is currently being carried out in phases.

“By 2030, the implementation of this transformation programme by our SOEs is projected to reduce operating grant requirements by approximately RM403 million.

“RM403 million - that is money that can be redirected to upgrade rural roads, schools, repairs, and infrastructure development that opens up economic opportunities in every corner of Sarawak,” he said.

He said this while speaking at the Sarawak SOEs Transformation Programme: A Pledge for Good Governance, High Performance and Value Creation programme here on Thursday.

The Sarawak Premier added that a study conducted on 36 entities consisting of statutory bodies and government-linked companies (GLCs) revealed that there are still organizations relying on government assistance to sustain their respective operations.

According to him, government grants currently contribute about one-third of the total income of several statutory bodies, while around 44 per cent of their operating expenses are funded through government operating grants.

In regards to that, he emphasised that the transformation being implemented is not intended to diminish the public role of SOEs, but rather to strengthen the capabilities of these organisations to become more sustainable, efficient, and financially independent.

At the same time, he noted that the financial performance of state SOEs has shown positive growth, with the overall profits of most entities increasing between the years 2023 and 2024.

In fact, he said companies under the SarawK Financial Secretary recorded an increase of nearly 58 per cent in dividend declarations, while the number of statutory body-linked companies declaring dividends also rose by 44 per cent.

During the same event, the state government also presented the Roadmap Towards Financial Self-Reliance and High-Performance Playbook to the involved entities to guide the implementation of the transformation agenda towards stronger performance, financial sustainability, and long-term value creation.

In addition, three special publications were launched, namely the Board Effectiveness Handbook, Performance Management Handbook, and Leadership Development Handbook, which serve as guides for the board of directors, management, and leadership of SOEs in reinforcing governance and enhancing organizational effectiveness.

Also present were Sarawak Deputy Premiers Datuk Amar Douglas Uggah Embas and Datuk Amar Professor Dr Sim Kui Hian, former Sarawak Deputy Chief Minister Tan Sri Datuk Patinggi Dr George Chan Hong Nam, Minister for Food Industry, Commodity and Regional Development Dato Sri Dr Stephen Rundi Utom, Minister for Tourism, Creative Industry and Performing Arts Dato Sri Abdul Karim Rahman Hamzah, Minister in the Sarawak Premier's Department Dato Sri John Sikie Tayai, Sarawak Minister for Utility and Telecommunication Dato Sri Julaihi Narawi, Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Sarawak Financial Secretary Dato Sri Dr Wan Lizozman Wan Omar, Sarawak Deputy Ministers and Heads of Departments. — UKASnews

Prepared by: Nur Nabilla
Photos by: Hazrin Sunaini
Translator: Ryan Lim