KOTA TINGGI: Proactive measures, setting of Key Performance Indicators (KPIs), a clear direction, and a Profit Centre Thinking approach are crucial for the profitability of subsidiaries under the Rural and Regional Development Ministry, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Zahid, who is also Rural and Regional Development Minister, said that in the first six months of this year, the performance of companies under his ministry surged due to governance and management practices that aligned with the standards set by the Finance Ministry, the Malaysian Anti-Corruption Commission, and Treasury Circulars.
He said his ministry also added several Standard Operating Procedures (SOPs), especially regarding Return on Investment (ROI), based on transforming the ministry’s companies from cost centres into profit centres.
"All these companies have achieved the expected performance, with no reporting losses, although they have yet to make significant profits.
"I am confident that with the mergers and synergies I directed six months ago, we will see 100% of subsidiary companies providing profit returns in the form of dividends to the parent agency," he told reporters after delivering the summary of the Rural and Regional Development Ministry Settlement Program at a hotel near here on Friday (July 26).
He said among the subsidiaries that reported profits are Risda Estate Sdn Bhd, which recorded a profit of RM7.1mil, Kolej Risda Sdn Bhd (RM1.26mil), Sinergi Perdana Sdn Bhd (RM6.3mil), Ketengah Holding (RM8.66mil), Ketengah Perwira Sdn Bhd (RM14mil), and Perda Venture Incorporated (RM2.7mil).
Ahmad Zahid added that his ministry also aims for all regional development authorities to finance their management costs and corporate social responsibility activities without budget injections from the Finance Ministry and the Development Ministry within the next 10 years.
"The budget for the Development Ministry for 2024 is RM11.55bil. I believe that in the next 10 years, we can project a certain percentage reduction in the budget,” he said. – Bernama
