Melaka to shutter loss-making subsidiaries, says CM

 

Ab Rauf Yusoh said a holistic assessment is being carried out on the potential of the 67 state subsidiaries in Melaka. (Facebook pic)

MELAKA: State government subsidiaries that are not generating profits or showing progress will be shut down to reduce their financial burden, said Melaka chief minister Ab Rauf Yusoh.

Rauf said a holistic assessment of the 67 subsidiaries’ potential and progress is being conducted, and their operations will cease if it is determined that they cannot be independent and lack sustainable business plans.

The criteria being evaluated include their ability to pay salaries and conduct business without having to rely on assistance from the state government, among other things.

“We have identified the uncompetitive subsidiaries and will give them the opportunity to present their business plans.

“We are bound by existing enactments, so we cannot continue to sustain the subsidiaries that are incurring losses. We have no choice but to shut down their operations,” he told reporters after officiating at a workshop on financial performance and top management governance enhancement for state government subsidiaries here today.

Rauf said employees at the affected subsidiaries will be transferred to other subsidiaries that are more competitive and capable of generating income and profits.

He urged all subsidiaries to seize the investment opportunities brought in by the state government in various sectors and improve their incomes.

“Through the investment policy that we have outlined, we expect a lot of investments to pour into Melaka in the future. This is the best opportunity for these subsidiaries to contribute to the state’s development,” he said. - FMT