Kota Kinabalu (Jan 21) - Sedco Group subsidiaries that remain unprofitable after a year will either be subjected to management buyouts or shut down, according to its chairman Datuk Masiung Banah.
Masiung said continuing to support loss-making entities would only weigh down the parent organisation, likening it to undermining one’s own efforts. He emphasised that all subsidiaries are expected not only to meet set performance benchmarks but also to show improvement once targets are achieved.
The Kuamut assemblyman added that subsidiaries failing to perform must submit clear action plans to rectify shortcomings and strengthen their financial standing. At the same time, chief executive officers are being assessed on how effectively they run their operations.
While no serious cases of corporate misconduct have been reported to date, Masiung said quarterly monitoring will be enforced across all subsidiaries, alongside periodic site visits that he will personally carry out.
He noted that the Sedco Group oversees about 23 subsidiaries in different sectors. This year, priority attention will be given to Sedco Mining Sdn Bhd, the Kudat Blue Economy Park project and Borneo Cement (Sabah) Sdn Bhd. Deputy Group General Manager Azrul Ahmad was also present during the chairman’s 2026 address.
For Sabahans, the tougher stance signals a push to ensure state-linked companies operate efficiently and sustainably, helping protect public resources while supporting industries that contribute to jobs and long-term economic development in the state.