Close monitoring of Innoprise subsidiaries’ performance
KOTA KINABALU: Establishing Key Performance Indicators (KPIs) to gauge each subsidiary’s operational and financial performance along with presenting a five-year business plan, are among the steps taken by Innoprise Corporation Sdn Bhd (ICSB) to closely monitor their performance.
According to Chief Minister Datuk Seri Panglima Hajiji Noor, a Special Management Committee has also been formed to identify new investments aimed at diversifying ICSB’s business.
“I am pleased to announce that the Pre-Tax Profit (Pre-audit) of the ICSB Group in 2023 is RM470 million. This commendable performance is undoubtedly attributed to leadership capabilities at all management levels and the dedication of all members of the Sabah Foundation Group.
“The consistent declaration of dividends, as well as effective financial management and accounting practices, has greatly benefited the state’s residents through distributions such as scholarships and social assistance.
“Therefore, to ensure that ICSB continues to provide funds to Sabah Foundation, its management needs to consistently monitor the performance of their subsidiaries,” he said at the Sabah Foundation Group Awards Night on Wednesday night.
Hajiji who is also Sabah Foundation Board of Trustees chairman, said that the ICSB Group demonstrated resilience and adaptability in the challenging business environment of 2023, with almost all sectors, ventured by its subsidiaries recording favorable returns last year.
“In the agricultural sector, especially Sabah Softwoods Berhad, Innoprise Plantations Berhad, Benta Wawasan Sdn. Bhd and Silam Forest Products Sdn Bhd recorded a combined profit of RM215 million for 2023, thereby becoming the main contributor to ICSB Group’s profit in 2023, accounting for 46 per cent.
“In the tourism sector, Tanjong Aru Hotel Sdn Bhd (STAR), Innoprise Jungle Lodge Sdn Bhd and Borneo Nature Tours Sdn Bhd contributed 12 per cent of the total ICSB Group profits with a combined profit of RM56 million for 2023.
“The oil, gas, and energy sector, through NRG Consortium (Sabah) Sdn Bhd, ended 2023 with a profit of RM24.05 million, contributing five per cent to the ICSB Group’s profit for 2023,” he said.
He disclosed that the forestry sector, particularly Rakyat Berjaya Sdn Bhd, Norsechem (Sabah) Sdn Bhd and Innovision (PNG) Limited, also ended 2023 with a combined profit of RM13 million, contributing three per cent to the ICSB Group’s profit for 2023.
“The total dividends expected to be paid by the subsidiaries to ICSB for 2023 are estimated at RM195 million, which is 8.6 per cent lower than in 2022. This decrease is due to lower crude palm oil (CPO) prices in the market compared to 2022.
However, last year saw an increase in dividend rates in the tourism sector,” he said.
Hajiji said that the increase in expenditure allocation for social programs to RM49.89 million in 2023, or an increase of 22.5 per cent compared to the RM40.74 million in 2022, is evidence of Sabah Foundation Group’s commitment to the development of the people in the state.
“In education, the Sabah Foundation Group successfully provided various sponsorships in the form of scholarships, study grants, and loans in 2023 to a total of 4,859 new and existing students, with a total allocation of RM40.93 million.
“As of 2023, the Sabah Education Fund (TPNS), launched in 2022, has benefited 2,897 students with a total disbursed fund of RM3.86 million,” he said, adding that aggressive efforts to collect loan repayments have resulted in the highest collection to date, totalling RM6.56 million.
Hajiji added that a total of 22 initiatives of the Sabah Maju Jaya (SMJ) Development Plan were implemented in 2023, achieving an overall performance rate of 97 per cent.
“The Sabah Foundation Group will continue to be a leader in environmental conservation efforts, making a significant contribution to the development of this state and future generations,” he said.