Deputy Finance Minister Liew Chin Tong says 36 dormant MKD companies with RM1.25 billion in liabilities must resolve financial obligations before being wound up.
KUALA LUMPUR: The Ministry of Finance will dissolve dormant Minister of Finance (Incorporated) companies once they settle outstanding financial obligations.
Deputy Finance Minister Liew Chin Tong said this follows an Auditor General’s Report highlighting 36 dormant firms with net liabilities totalling RM1.25 billion.
“Some companies cannot be dissolved because they have financial obligations such as debts that need to be paid off,” Liew explained during a Dewan Rakyat session.
He stated these firms require continued government support to resolve their respective financial commitments.
The report identified 116, or 18.1%, of 641 federal companies as dormant, meaning they are inactive with no commercial operations.
Liew was responding to queries from several MPs regarding government action on companies dormant for over five years.
He clarified that dissolution awaits the resolution of issues like liquidation processes or pending legal claims.
On dividend payments, Liew said decisions by profitable subsidiaries, including Petronas entities, prioritise cash flow and reinvestment needs.
He noted Petronas paid a RM32 billion dividend to the government for the 2024 financial year.
For Cenviro Sdn Bhd, profits were used to redeem preference shares worth RM100 million.
Cradle Fund Sdn Bhd faced operating cash flow constraints and did not declare dividends for 2022 and 2023.
IJN International Sdn Bhd required funds for operational expansion and acknowledged improving its dividend policy.
SIRIM Calibration Sdn Bhd and SIRIM Academy Sdn Bhd suspended dividends during financial recovery phases.
Liew stressed dividend payments remain a board decision based on comprehensive financial assessments.
“The existing approach provides the board with flexibility to make appropriate commercial judgments,” he added.
This ensures companies remain sustainable and competitive in line with corporate governance principles.
The Sun Malaysia
