LGMPC rendered dormant over performance, changes to business model, says minister

 Plantation and commodities minister Noraini Ahmad says all staff of the Malaysian Rubber Board subsidiary were offered a mutual separation scheme.

Plantation and commodities minister Noraini Ahmad said LGM had appointed a commercial property management company to manage its properties, while the board itself had taken over management of its plantations.

PETALING JAYA:

The decision to render LGM Properties Corporation (LGMPC), the property and plantation management subsidiary of the Malaysian Rubber Board, or Lembaga Getah Malaysia (LGM), dormant was made following a study of its performance since 2018 and changes to its long-term business model.

Plantation and commodities minister Noraini Ahmad said all LGMPC staff were offered and accepted a mutual separation scheme, with none absorbed into LGM.

Noraini said this during the committee stage debate on the 2027 budget for her ministry in the Dewan Rakyat in response to questions from Willie Mongin (GPS-Puncak Borneo).

Willie had asked about the rationale behind the decision to render LGMPC’s operations dormant and the fate of its employees, among other matters.

Noraini said a study of LGMPC’s performance was carried out in 2020 by several committees within the board.

“LGMPC’s annual operating costs were estimated at RM30 million to RM40 million. Based on these costs, it was found that its business model was not viable,” she said.

She said LGM appointed a commercial property management company to take over the management of its properties, while the board itself had taken over management of its plantations.

LGMPC’s assets were transferred to LGM, which conducted a physical audit from January to July this year, she said, adding that the board had also developed an asset inventory monitoring system.

Willie had suggested earlier that the board conduct a comprehensive asset audit, develop a digital inventory system, and establish key performance indicators to increase rental revenue, reduce maintenance costs, and optimise property utilisation following the decision concerning LGMPC.

He said there were concerns that some of the board’s properties appeared to be poorly maintained and increasingly dilapidated.

“Government assets should not merely be kept in storage but must be managed professionally so that they can generate economic returns for the country,” he said. - FMT