- The restructuring exercise undertaken by Prasarana Malaysia Bhd’s will take some time to complete due to the current economic situation
The restructuring exercise undertaken by Prasarana Malaysia Bhd’s will take some time to complete due to the current economic situation, managing director Datuk Azmi Abdul Aziz said yesterday.
“We need more time to move forward but it is something that we have to do to make sure that the investment in public transport would be sustainable and not just hoping to get government funding.
“We must start looking at how we can manage all these investments in future.”
Prasarana, the state-owned urban public transport operator, is undergoing a second round of restructuring exercise to make itself sustainable to meet its debt obligations.
According to RAM Ratings, Prasarana’s debts had expanded to RM13.91 billion as at end of last year from RM11.91 billion as at end of 2013. Prasarana posted pretax losses of more than RM860 million last year.
Its first corporate restructuring plan was carried out in January 2013, which saw the creation of four entities, namely Rapid Rail Sdn Bhd, Rapid Bus Sdn Bhd, Prasarana Integrated Management and Engineering Services Sdn Bhd, and Prasarana Integrated Development Sdn Bhd.