- Selangor state subsidiaries performed poorly last year with only eight of 28 companies under the MBI recording profits
Serdang Member of Parliament Dr Ong Kian Ming described this as shocking, saying transforming and consolidating MBI was going to be a challenge for Menteri Besar Mohamed Azmin Ali.
He said that while the proposed restructuring of the various companies currently under MBI did make sense on paper, he questioned whether it needed to be done through Darul Ehsan Investment Group (DEIG).
“Whether or not this restructuring needs to take place under DEIG or directly under MBI is still cause for debate.
“Right now, there is little information on the website of DEIG to indicate that there is any coherent strategy,” said the DAP MP in a statement.
Of the loss-making companies, he said Kumpulan Darul Ehsan Bhd (KDEB), which is the main holding company under MBI, experienced an after-tax loss of RM144.4 million for the 2014 financial year (FY).
Kumpulan Hartanah Selangor Bhd (KHSB) experienced a massive RM235 million in after-tax losses in FY2014 on the back of RM31.5 million in revenue.
Ong added that five out of the seven subsidiaries of Permodalan Negeri Selangor Berhad (PNSB) were dormant companies which did not register a single sen of revenue in FY2014 and which registered after-tax losses ranging from less than RM4,000 for PNSB Construction to RM16.8 million for PNSB Development.
All of MBI’s leisure and hospitality assets experienced after-tax losses ranging from RM294,000 for the Bukit Beruntung Golf and Country Resort to RM1.95 million for Brisdale International Hotels to RM7.01 million for Perangsang Hotels and Properties.
Ong said that perhaps more than DEIG, what was needed for the companies and subsidiaries under MBI was a process similar to what the federal GLCs went through and were still going through under the GLC Transformation Programmr that seemed to have yielded positive results for most of the companies involved.
He said that for some of the perpetually unprofitable and non-core companies, divestment or winding up should be seriously considered.
“For those which are deemed as strategic assets and which have a record of loss-making, a turnaround programme must be identified and put in place.”
Ong said Azmin needed to restructure, consolidate and transform these companies and assets in a well thought out and strategic manner with the maximum amount of transparency possible.