CM: State firms must prac se efficient management
All Sabah state agencies and companies need to prac se efficient and transparent management so as to stay resilient and maintain their compe veness in the quest to reap higher profits, Chief Minister Datuk Seri Musa Aman said.
TAWAU: All Sabah state agencies and companies need to practise efficient and transparent management so as to stay resilient and maintain their competitiveness in the quest to reap higher profits, Chief Minister Datuk Seri Musa Aman said.
He said only with good management that state companies could get profits, pay dividends to the state government and repay loans.
“State government agencies pay an average annual dividend of RM200 million to the (State) Finance Ministry due to efficient and transparent management.”
He cited Benta Wawasan Sdn Bhd (BWSB) which paid RM5 million in dividends to the state government in 2016.
“The dividends received will be used to develop the state and provide benefits to the people of Sabah,” he said when officiating the BWSB Biogas plant near here yesterday.
At the event, Musa also witnessed the signing ceremony of a joint-venture agreement on the production of pellets at the plant between BSWB and Global Technology Supports Sdn Bhd.
Meanwhile, BWSB chairman Datuk Nizam Abu Bakar Titingan said the Sabah Foundation’s subsidiary recorded a higher pretax profit of RM42.8 million in the first six months of this year, a 73 per cent increase from RM24.8 million in the corresponding period last year.
“This performance could be maintained as growing areas of mature oil palm reaching maturity would be entering the full-maturity phase,” he said.
The consistent performance will enable the company to pay RM17 million in dividends to the state government with an advance of RM2 million already paid earlier this year, he added.
On the biogas plant, Nizam said the project was essential to qualify for approval from the Malaysian Palm Oil Board (MPOB) to enable the Seraya Palm Oil Mill to increase its fresh fruit bunch processing capacity (BTS) from 45 tonnes per hour to 60 tonnes per hour.
“This will enable the processing capacity at the plant to accommodate as much as 280,000 tonnes of BTS supplies from Benta estates.
“And this will further increase to 345,000 tonnes per annum when approval is obtained from MPOB which will result in an additional 30 per cent increase in revenue or RM9 million a year for BWSB,” he said.
He said in terms of operating cost savings, the biogas plant would produce free methane gas which could be used to generate electricity and replace diesel for gensets at nearby factories and farms.
He said it is estimated that around 60 per cent to 70 per cent of diesel consumption requirements would be saved at the rate of RM400,000 a year in the operational costs of the plant and BWSB plantations.