KUALA TERENGGANU, March 2 ― More than 50 Terengganu state-owned subsidiaries that have ceased business operations and are dormant will be wound-up to save on government’s spending.
Mentri Besar Ahmad Samsuri Mokhtar said the winding-up was expected to save of hundreds of thousands of ringgit annually that previously used for the companies’ governance despite not contributing to the state’s economy.
“Some of them don’t run any business at all. We don’t know why no steps have been taken then. If we don’t close down these companies, we still have to bear the administrative costs amounting to hundreds of thousands of ringgit annually because they have to pay to the company secretary to do the auditing as well as individuals governing those companies.
“Once the companies wound-up, the state government then can focus on the performing companies while the hundreds of thousands of ringgit can be channelled to more important matters,” he told reporters after the Ummah dinner here yesterday.
Ahmad Samsuri said most of the companies were subsidiaries of Terengganu Incorporation and ran businesses almost similar to each other resulting in unhealthy competition.
In fact, he said, that some of the companies were involved in non-core businesses such as producing merchandises for the state government.
“The next step is that we will merge some of the companies under business segments that we already have, such as hotel, plantation, oil and gas and construction.
“Once we merge the state-owned companies, all the assets can be shared and the company will be bigger and stronger, easier to compete with other companies out there,” he said. ― Bernama
