Non performing GLCs face risk of closure - Johor MB
The state government will not hesitate to close down government-linked companies found not to be competitive or profitable for the government.
Johor Menteri Besar Osman Sapian said this was because there were some GLCs in the state which were not performing and incurred losses to the state.
"For example, recently in JBiotech, there were two companies (under it) which I directed to close down because they were not competitive, as well as several other GLCs. There are companies that have huge assets, but do not generate income for the government, but rather losses, and other companies (other GLCs) have to cover (its losses).
"The purpose and goal of the government to set up GLCs is to help the government, to assist with infrastructure, to build schools and so on, but if the company does not give any returns, the government has to bear the losses," he told reporters today.