Sedco to Shut or Buy Out Loss-Making Subsidiaries After One Year

21 January 2026

KOTA KINABALU: Subsidiaries under the Sedco Group that fail to turn a profit within one year will face either closure or a management buyout, said its Chairman, Datuk Masiung Banah, signalling a firm push for stronger governance and accountability across the group.

Masiung said continuing to support loss-making companies that burden the parent organisation would be counterproductive. “If we continue to defend companies that are making losses and weighing down the holding agency, it is like scoring an own goal,” he said.

He told reporters after delivering his Chairman’s Address at the Sedco Group General Managers’ Meeting here yesterday that all subsidiaries would be assessed based on their performance against set targets.

“We want to see their performance, whether targets are achieved or not. If they are not achieved, we must understand why. If they are achieved, then we need to improve further,” he said.

The Kuamut Assemblyman said Sedco would implement significant reforms in the governance of subsidiaries that are less competitive in their respective industries.

He added that companies failing to meet their key performance indicators (KPIs) would be required to submit comprehensive action plans to improve both operational performance and financial standing.

Masiung also said he and Sedco’s top management are currently reviewing the effectiveness of Chief Executive Officers (CEOs) across corporate entities within the group.

“Although there have been no serious reports of corporate misconduct involving the subsidiaries so far, their operations must be monitored every three months,” he said.

He added that he would personally conduct on-site visits from time to time to ensure closer oversight of subsidiary operations.

The Sedco Group currently oversees about 23 subsidiaries operating across various industries.

Masiung said three entities would be prioritised this year for their potential to drive Sabah’s economic value chain—Sedco Mining Sdn Bhd, the Kudat Blue Economy Park project and Borneo Cement (Sabah) Sdn Bhd.

Also present at the 2026 address was Sedco Group Deputy General Manager, Azrul Ahmad.