PKA meets MoF on debt restructuring


The Port Klang Authority (PKA) is in talks with the Ministry of Finance (MoF) to restructure the RM3.8 billion debt that it incurred to develop the Port Klang Free Zone (PKFZ).

Transport Minister Anthony Loke said the Port Klang regulator had to repay loan instalments of RM222 million per annum, while its revenue was forecast at RM266 million this year.

“This means PKA would incur a cash deficit of nearly RM43 million a year after taking into account the administrative cost of RM80 million and capital expenditure of RM6 million.

“In order to cover the deficit, PKA needs to tap on its cash reserves every year.

“PKA is, therefore, discussing with the MoF on how to restructure its debt in order to reduce repayment and avoid diminishing its cash reserves,” he told a press conference yesterday.

Also present were Deputy Transport Minister Datuk Kamarudin Jaffar and PKA GM K Subramaniam.

Commenting on PKFZ, Loke said PKA should generate more revenue, through the free zone, as it presently brought in about RM80 million a year from the rental of industrial lots to private firms.

“It’s crucial to generate revenue for PKA to enable it to repay its debt,” Loke added. — Bernama