Perak shuts down 27 subsidiaries to save costs

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FREE MALAYSIA TODAY. 25TH JANUARY: The Perak state government has shut down 27 of its subsidiaries identified as non-performing and burdensome to save costs.

Menteri besar Saarani Mohamad said the Perbadanan Kemajuan Negeri Perak (PKNP) subsidiaries affected by the closure were not carrying out business activities and had failed to contribute to the state government.

“We found that they were not performing, had no business and were not able to give back to the government. They were a burden to the parent company which had to pay salaries and so on.”

Saarani spoke to reporters after the inauguration and opening ceremony of the Piccadilly@Greentown project by Raja di-Hilir Perak Raja Iskandar Dzurkarnain Sultan Idris Shah here today.

He also said the state government is targeted to gradually receive a total contribution of RM100 million from all government-linked companies (GLCs) by 2030.

He said all GLCs must carry out thorough planning for every development or project given by the government to make a profit.

Asked about several abandoned housing projects in Perak, Saarani said he had asked state housing and local government committee chairman Ng Shy Ching to work with the local government development ministry to address the matter.

“At the Perak Housing and Property Board meeting, it was mentioned that the projects of several companies were halted due to the movement control order.

“They also faced excessive price hikes in construction materials when they resumed work on-site and faced issues getting workers,” he said.
Earlier, in his speech, Saarani said the Piccadilly@Greentown project was a sustainable housing and business development with complete infrastructure and quality facilities.

He said the project could support the objectives of the Prosperous Perak 2030 Plan, contributing to the formation of a prosperous and livable community.

This was in line with the state government’s commitment to take a holistic approach to support the property sector, he added.