KUALA LUMPUR, Feb 24 — The Finance Ministry (MOF) will dissolve dormant Minister of Finance (Incorporated) (MOF Inc) companies after the companies resolve issues related to financial obligations, said Deputy Finance Minister Liew Chin Tong.
The Auditor General's Report (AG Report) 1/2026 reported that 36 dormant companies with net liabilities totalling RM1.248 billion required continued support from the government, agencies or parent companies to settle their respective financial obligations.
He said that although the MOF Inc companies had become dormant, meaning they were inactive or had no commercial activities and no management, some of the companies could not be dissolved because they had financial obligations, such as debts that needed to be paid off.
"There are also companies that are in the process of liquidation or facing legal claims that need to be resolved first. If these issues have been resolved, the dormant companies will be dissolved," he said when winding up the motion on the AG Report on the 2024 financial statements of Federal agencies in the Dewan Rakyat today.
A total of 116, or 18.1 per cent of the 641 Federal companies, were identified as dormant.
Liew was replying to the queries of Betong MP Datuk Richard Rapu@Aman anak Begri, Permatang Pauh MP Muhammad Fawwaz Mohamad Jan, Parit MP Muhammad Ismi Mat Taib, Kuala Krai MP Abdul Latiff Abdul Rahman, and Rantau Panjang MP Datuk Siti Zailah Mohd Yusoff on the government's actions in managing companies with dormant status for more than five years.
Concerning the dividend issue mentioned in the AG Report, he said the decision not to declare dividends by several subsidiaries, including entities under Petronas, was made based on the board's consideration of cash flow requirements, investment commitments, asset maintenance, and capital strengthening.
"Despite recording profits, priority is given to operational sustainability and reinvestment. At the same time, Petronas, through its parent company, Petroliam Nasional Bhd, has paid a dividend of RM32 billion to the government for the financial year 2024, showing that the group's contribution is valued comprehensively," Liew said.
For Cenviro Sdn Bhd and Cradle Fund Sdn Bhd (CFSB), the decision not to pay dividends was in line with their respective dividend policies and actual cash positions.
“Cenviro used profits and available cash for the redemption of redeemable convertible preference shares totalling RM100 million and maintained sufficient cash for operational needs and capital commitments.
“CFSB, on the other hand, faces operating cash flow constraints, reliance on grants and some unrealised profits; therefore, dividends were not declared for 2022 and 2023 with the approval of the board and notified to the MOF in accordance with the MOF Inc Guidelines 2024,” he said.
As for IJN International Sdn Bhd, the deputy minister noted that its profit was insignificant compared to the contribution of its main subsidiary, Institut Jantung Negara Sdn Bhd, and that funds were needed for operational expansion. Nonetheless, the company acknowledged the need to apply for a dividend exemption and would improve its policy.
Meanwhile, SIRIM Calibration Sdn Bhd and SIRIM Academy Sdn Bhd also suspended dividends during the financial recovery and asset reinvestment phase.
"For the 2023 financial year, SIRIM Academy has returned to stability and declared dividends with the approval of the board," Liew said.
On the proposal to require profitable companies to pay dividends, he stressed that dividend payments are the board’s decision based on a comprehensive assessment of cash requirements, investment commitments and market risks.
“Good accounting profits and financial ratios indicate the company’s current stability, but the distribution decision also takes into account the company’s medium and long-term commitments.
“The existing approach, as set out in the MOF Inc Corporate Governance and Board of Directors Guidelines (2024), provides the board with the flexibility to make appropriate commercial judgments that do not affect the company’s financial position to ensure that the company remains sustainable and competitive, in line with corporate governance principles and the company’s legal framework,” Liew added.
