Kuala lumpur: The Ministry of Finance (MoF) will dissolve dormant Minister of Finance (Incorporated) (MKD) companies once they have resolved their financial obligations, Deputy Finance Minister Liew Chin Tong announced.
According to BERNAMA News Agency, the Auditor General’s Report (AG Report) 1/2026 identified 36 dormant companies with net liabilities totaling RM1.248 billion that require continued support from the government, agencies, or parent companies to settle their financial obligations. Despite being inactive with no commercial activities, these companies cannot be dissolved until their debts are cleared.
“There are also companies in the process of liquidation or facing legal claims that need resolution first. Once these issues are resolved, the dormant companies will be dissolved,” Liew stated during the winding-up of the AG Report motion on the 2024 federal agencies’ financial statements in the Dewan Rakyat.
A total of 116, or 18.1 percent, of the 641 federal companies were identified as dormant. Liew responded to queries from several Members of Parliament about the government’s actions regarding companies with dormant status for over five years.
Regarding the dividend issue highlighted in the AG Report, Liew explained that the decision not to declare dividends by some subsidiaries, including those under Petronas, was based on cash flow requirements, investment commitments, asset maintenance, and capital strengthening. Despite profits, the focus remains on operational sustainability and reinvestment. Petronas paid a RM32 billion dividend to the government for 2024, reflecting the group’s comprehensive contribution.
For Cenviro Sdn Bhd and Cradle Fund Sdn Bhd (CFSB), the decision not to pay dividends aligned with their dividend policies and cash positions. Cenviro used profits for redeemable convertible preference shares redemption and maintained cash for operations and capital needs. CFSB faced cash flow constraints and did not declare dividends for 2022 and 2023, with board approval and MoF notification per MKD Guidelines 2024.
Liew noted that IJN International Sdn Bhd’s profit was minor compared to Institut Jantung Negara Sdn Bhd’s contribution, and funds were necessary for expansion. SIRIM Calibration Sdn Bhd and SIRIM Academy Sdn Bhd also suspended dividends during financial recovery and asset reinvestment. However, for 2023, SIRIM Academy returned to stability and declared dividends with board approval.
On the proposal to require profitable companies to pay dividends, Liew emphasized that dividend payments are a board decision based on cash requirements, investment commitments, and market risks. Good accounting profits and financial ratios indicate stability, but distribution decisions also consider medium and long-term commitments. The MKD Corporate Governance and Board of Directors Guidelines (2024) offer boards the flexibility to make commercial judgments ensuring sustainability and competitiveness, in line with governance principles and legal frameworks.