KUCHING, Nov 29 — The state government today said the decision to take up equity in Zecon Medicare Sdn Bhd is purely a corporate investment venture with commercial consideration based on projected positive return on investment.
“Before considering this investment, the state government engaged professional financial-business consultant and corporate legal counsel to carry out risk return analysis,” State Financial Secretary’s Office (SFSO) said in a statement.
SFOS said the state government is always keen to explore opportunities for new revenue through commercial endeavours or fiscal revenue in order to ensure sustainability of its sound financial position.
“The state government also at all time ensures its financial affairs is managed in the most prudent and disciplined manners, where principle of good governance is upheld,” SFSO said in response to an earlier statement by Sarawak DAP chairman Chong Chieng Jen on the acquisition of shares in Zecon Medicare.
SFSO pointed out that Zecon Medicare has a stable business model which was given a long-term concession agreement that was entered into with the federal government, represented by the Ministry of Education and Universiti Kebangsaan Malaysia (UKM).
Besides investment in Zecon Medicare, SFSO said the state government has an investment in Normah Medical Specialist Centre (NMSC) in Petra Jaya, and owns the building of the National Heart Centre located in Kota Samarahan.
Chong, who is also the deputy minister of domestic trade and consumer affairs, has sought an explanation from the state government on the injection of RM300 million for a 49 per cent share in a joint venture with Zecon Berhad for the construction of the specialist hospital costing RM606 million.
He had said the RM300 million could be used by the state government to build at least one full-fledged hospital with 300 beds to serve a major town in Sarawak or few second-tier hospitals to serve rural folks.
