Four PKENPS subsidiaries suffer losses

KANGAR, July 2 — Only four out of 10 Perlis State Economic Development Corporation’s (PKENPS) subsidiaries and joint venture companies have suffered losses, Menteri Besar Azlan Man said.

The companies are Perlis Property Sdn Bhd which suffered losses of RM21,205, Putra Palace Sdn Bhd (RM1,157,855), Perlis NCER Trading Sdn Bhd (RM48,192) and Perlis Marine Engineering Sdn Bhd (RM1,799,642).

Azlan said among the main reasons for the losses were the lack of projects following the decline in government’s allocation and private investment, the implementation of minimum wage and the increase in employers’ contributions for workers, which had caused the increase in their overall costs of operation, besides the tough competition in their industries.

In a bid to overcome the problems and to ensure its other subsidiaries would not suffer the same condition, PKENPS, together with the management of the companies had taken aggressive measures to secure a project or a job, he said in reply to Ismail Kassim (BN-Tambun Tulang) at the state assembly sitting here today.

He said Pens Holding Sdn Bhd, for example, managed to get the tender for the Timah Tasoh Flood Diversion Project worth RM41 million this year and was expected to complete the job in 24 months.

He said Perlis Marine Engineering, on the other hand, was in the midst of finalising the agreement for a project to supply tug boats to the Transport and Logistics Ministry of Benin Republic, besides bidding for a project in Abu Dhabi, in the United Arab Emirates.

At present, Azlan said Modern Spectrum Sdn Bhd was also bidding for several potential projects.

The menteri besar said PKENPS had also given certain projects to its qualified subsidiaries, while carrying out restructuring exercise in uncompetitive companies in line with PKENPS Strategic Plan 2013-2017.

He said the PKENPS Group of Companies Executive Committee had also carried out periodical monitoring activities on the subsidiaries, which had also resulted in helping Perlis Property Sdn Bhd and reducing the accumulated losses suffered by the Putra Palace Hotel. – Bernama

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