KUANTAN: In a strategic move to restructure and further boost the performance of state-owned enterprises (government-linked companies or GLCs), the Pahang government has established the Pahang Investment Corporation (PIC).
Menteri Besar Datuk Seri Wan Rosdy Wan Ismail described PIC as an effort to streamline the existing 45 state-owned enterprises under one roof to ensure a steady revenue for the state’s coffers.
He said PIC would be responsible to scrutinise the stakeholders’ plans to start a new business or carry out joint-ventures efforts with other companies, plan strategic investments and ensure the GLCs have a promising future.
“When a company wants to venture into a business or be part of a joint-venture, it will be discussed in the PIC.
“We do not want the GLCs to end up facing problems midway through their business or suffer other setbacks.
“The move will allow the GLCs to be well-coordinated and be more productive. It will be easy for the state government to monitor and make changes if necessary,” he told reporters when met today.
Wan Rosdy said the PIC had received the approval from the state government and was in the midst of appointing its board of directors.
“As the menteri besar, I will be the PIC chairman, while the State Secretary (Datuk Seri Muhammad Safian Ismail) and a corporate figure will be (appointed) the board of directors.
“We will also appoint a general manager. Currently, I am waiting for the reply from the individual (corporate figure) to be appointed into the board and we hope to sort things our by year-end.
“This move (PIC) is in line with our target to boost the state revenues between 10 percent and 20 percent annually. PIC will also provide advice to the GLC to ensure they make the correct investment with promising returns,” he said.
Wan Rosdy said he had previously urged the 45 GLCs chief executive officers to look into ways to increase their company profit so that 15 percent of their revenues can be contributed to the state government.
“Some of the state-owned GLCs did not perform well, so we decided to setup the PIC to restructure and scrutinise the financial performance,” he said.
When asked if state-owned GLC which performed poorly would be closed or downsized, Wan Rosdy said he was waiting for the performance report from the respective CEOs before making any decision on the matter as it involved the welfare of the officers and staff.
"Issues (to close or downsize the GLC operations) is not any easy decision and we do not want to make a wrong move. I have informed the CEOs to set up an investment and risk committee, and all decisions should be discussed with the board of directors.
“If they perform poorly, then there has to be a paperwork and suggestions on ways to improve their performance. We are serious about efforts to increase the state revenues and the GLCs have to be committed in doing well in the future,” he said.
Meanwhile, Wan Rosdy said the state government would soon introduce the People’s Housing Fund (Tabung Perumahan Rakyat) which is a special initiative to provide low-cost homes for low and middle income families in Pahang.
He said the government’s policy is a 30-per cent low-cost housing units requirement imposed on developers for each residential project.
“Since some private developers do not want to build the low-cost units, we propose they could convert the 30 percent value (cost for building the hosing units) into cash (and channel it to) the People’s Housing Fund.
“Once there is enough cash in the fund, the state government will appoint contractors to build low-cost units in suitable areas.
“The idea for the fund is still in the early stages and we are prepared to discuss with housing developers. If they cannot build the low-cost homes (due to landscape reasons), maybe they can pay the cost to the fund and we can prepare the homes,” he said, adding the house fund initiative has been approved during the State Executive Council meeting.