SELANGOR Menteri Besar Tan Sri Abdul Khalid Ibrahim yesterday defended the state's desire to play a part in making the Port Klang Free Zone (PKFZ) a success.

Khalid (PKR-Bandar Tun Razak) told the Dewan Rakyat that he had visited the free trade zone recently to check on the investments which had gone into it as well as the money spent on land purchase and construction work.

The PKFZ in Pulau Indah, located on a 400ha site and managed by Port Klang Free Zone Sdn Bhd (PKFZSB), has become an issue following the start-up cost of the facility which has ballooned to more than RM4 billion.

The area comes under the Port Klang Authority, which is under the auspices of the Transport Ministry and Minister of Finance Incorporated.

"I feel that the use of such a large amount of money will have a considerable impact on the state's economy," said Khalid.
He said the money spent on the construction and development of PKFZ could not be determined on a commercial basis alone.

He added that it was essential to take such a position as the returns on the investment in terms of construction and development could not be recouped for at least another 20 or 30 years.

"We do not want it to continue to be a burden," he said adding that the Selangor government was willing to play its part in ensuring the PKFZ remained viable and turn it into a successful project.

Khalid explained the state's position following a heated exchange between Datuk Seri Tiong King Sing (BN-Bintulu) and Lim Kit Siang (DAP-Ipoh Timur) over the PKFZ.

"If it was no good, why was Selangor willing to buy it," shouted Tiong at Lim.

He called on the former opposition leader to get his facts and understanding on the project right instead of continuously criticising it.

"It is self-financing ... if you continuously condemn it ... who will want to invest in it," he said.

Earlier, Lim had demanded full government accountability and responsibility for the RM4.6 billion PKFZ project.

He questioned the project's viability, history of alleged impropriety in land transactions, illegal issue of Letters of Support, Cabinet bailouts and retrospective ratification of illegal decisions by previous transport ministers.