Photo: Bernama
IPOH: A total of 27 subsidiary companies under the Perak State Economic Development Corporation (SEDC) have been shut down for not performing, says Datuk Seri Saarani Mohamad (pic).
The Perak Mentri Besar said not only the companies were not performing and not contributing to the state government, but these subsidiaries were also a burden to their parent companies.
“During my budget speech recently, I did mention that overall all government-linked companies must contribute RM100mil towards the state in stages until 2030.
“This is the figure set and expected by the state government, and thus all GLCs must plan ahead each project and development carefully,” he said at the launch of the start of a mixed development project known as Piccadilly@Greentown here Tuesday (Jan 24).
On abandoned development projects in the state, and what action the state government had planned, Saarani said most development projects were left midway due to the movement control order in place at the time of the Covid-19 pandemic.
He said once the movement control order was lifted, prices of building materials skyrocketed, and most workers had gone back to their home countries.
Saarani said many developers were unable to continue with the work.
“However, the Local Government Development Minister Nga Kor Ming has stated plans to revive such projects.
“In Ipoh city itself, there are several old flats that require attention, which were already in the plans to be demolished and rebuilt.
“I have told the exco member in charge to liaise with the ministry on the plans,” he added.
He said developers tied with the state government that failed to carry out development projects would be terminated.
“However there are a lot of private developers, where the sales and purchase agreement are done between the companies and the buyers, that the state is unable to blacklist them,” he said.
