Biawak Hidup Glcs Will Be Shuttered Zahid Warns

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Deputy Prime Minister Ahmad Zahid Hamidi has warned that he would close down any burdensome companies or subsidiaries under the Rural and Regional Development Ministry, which he helms.
Zahid said so far, he had closed down 23 insolvent companies or subsidiaries under the ministry.
Speaking at an address to ministry government-linked companies today, Zahid said he had been asked many times what would happen to companies that don’t make profits.
“In my response, I have said, these ‘biawak hidup’ (dead weight) companies will be closed. I really mean business,” he said.
Later at a press conference, Zahid said the ministry would explore three different methods before shutting down non-performing companies or subsidiaries.
He said the methods would include mergers, management buyouts, or joint ventures with other companies.
He added that he would continue to monitor the remaining 100 companies and would reassess their value in the upcoming retreat in July.
How to generate more income
During his speech, Zahid also advised politicians appointed as CEOs and board directors to the ministry’s GLCs to not take their appointments for granted.
He said these companies would be monitored and audited by the public during the general election.
Zahid also added that the appointment of those companies and subsidiaries’ leaders was not due to any political affiliation but because they were professionals.
He also gave five suggestions on how these companies could generate more income in the future.
Among the suggestions were to have strategic planning and goal setting.
He said this includes conducting an analysis of the companies’ current operation, studying the market and looking for new areas of growth.
“Set clear and measurable goals for revenue generation and profitability, without losing sight of the establishment's objectives,” he said.
He said another suggestion would be to streamline their operation by reducing unnecessary costs and maximising productivity.
“For example, if there is an overseas trip that doesn’t bring a good impact to the company, it is better to postpone it. This is not an order, but a command,” he added.
He also suggested making decisions based on data, and smart partnerships by eliminating conventional thinking.
“Work together to produce a result that complies with the principle of low cost - high impact,” he said, adding that the final suggestion was to create a key indicator performance (KPI) to track their progress report.
He said he would monitor the KPI himself and would not hesitate to change the GLCs' leadership if the companies' performances declined.
Zahid also named Risda Estate Sdn Bhd, Permodalan Felcra Sdn Bhd and Rural Capital Berhad as some of the ministry’s subsidiary companies that made big profits last year.
He added that in 2023, a total of RM100 million profit after tax was made by the ministry’s subsidiary companies.
- Mkini

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