PKNS continues to drive Selangor’s economic distribution and growth

The state development agency has been the prime mover in advancing the economic state of Selangor, says MB

by SHAHEERA AZNAM SHAH

FOR an organisation that has been around for 54 years, the Selangor State Development Corp (PKNS) certainly has much to shout about.

As the oldest among state development agencies in the country, it has played a huge role in keeping Selangor’s glorious spot on the Malaysian map.

Last year, Selangor maintained its position as Malaysia’s top performing state, having contributed 23% to the country’s total gross domestic product (GDP).

In 2016, the state contributed 22.7% to the national GDP. In fact, the state’s GDP growth of 7.1% in 2017 surpassed the national GDP growth of 5.9% in the same year, making it one of the seven states that overtook the country’s benchmark.

Selangor also surpassed the national GDP per capita of RM42,218 with RM48,091.

PKNS staff having their attendance taken before entering the hall

PKNS, established on Aug 1, 1964, has played a big role in administering the state’s economic distribution and its socio-economic growth while raising income for the state.

At PKNS’ 54th anniversary celebration in Shah Alam recently, Selangor Mentri Besar (MB) Amirudin Shari, who is also the agency’s chairman, said the agency’s contribution to Selangor is undeniable as it has been the prime mover in advancing the economic state of Selangor.

“I want PKNS to keep reviving its original role of ensuring a fair distribution of economic and socio-economic growth that is guided by government policies in order to create stability, harmony and social justice especially in the state of Selangor,” he said.

He said PKNS has been a respected agency for the physical and socioeconomic development since its establishment under the administration of the then MB Datuk Harun Idris.

PKNS CEO Datin Dr Noraida Mohd Yusof said the agency will continue its efforts to remain relevant with the current economic climate for the benefit of the rakyat of Selangor.

She said PKNS has been the reference in other state’s development projects such as residential projects, as well as the conceptualisation and inception of new cities.

At the recent 54th anniversary celebration, Noraida said PKNS policies and procedures have also been used as the benchmark for many other state governments.

She added that PKNS has so far managed to weather the fluctuations in the property market, which is being plagued by a glut particularly in the high-end market.

“Throughout the years, the agency has helped developing new cities in Selangor and building homes of more than 1.6 million sq ft, as well as providing job opportunity to more than 300,000 rakyat of Selangor,” she said.

The PKNS staff having a good time together during the anniversary celebration

Since its establishment, PKNS has managed to transform itself into a premier property developer with a portfolio that includes 11 cities spanning across 10,000ha with more than 163,000 houses sold.

Shah Alam, Petaling Jaya and Kota Damansara were among the earlier townships that were pioneered by PKNS.

As at Oct 2017, PKNS held some 2,428ha of landbank in Selangor and the Klang Valley that had not been developed yet. PKNS is also set to acquire 40.5ha more.

Noraida said the agency’s cashflow as at May 31, 2018, was satisfactorily growing on the proceeds from house and land sales, investment dividends and other income.

“The proceeds gained from our investments and sales have been able to support all PKNS expenses including investments in our subsidiaries, staff salaries, employee incentives and other expenses,” she said in her speech at the anniversary celebration.

PKNS staff reciting Yassin at the event

As of May 31, 2018, PKNS has issued sukuk of RM1.2 billion and the fund has been fully utilised to fund several projects such as land premiums worth RM500 million, the financing of PKNS’ headquarters development worth RM200 million, a land acquisition for project development worth RM200 million and strategic investments worth RM300 million.

“This sukuk has never been used to finance PKNS’ administrative costs. Our previous sukuk issuance was in December 2017 worth RM100 million and it was used for the investment in Tropicana Indah Sdn Bhd (TISB).

“To date, RM21 million has been injected into TISB, while the remaining RM79 million has been kept i n investment instruments until requested by TISB later,” she said.

Amirudin said PKNS has also aligned itself with several state governments’ housing projects, as part of the “One Home One Family” goal, as outlined by the Selangor Housing Policy.

Among others, PKNS is expected to complete the construction of 2,235 units of affordable houses in Bukit Botak, Kota Puteri, Antara Gapi, Subang Bestari, Shah Alam and Gombak.

“And I was made to understand that more PKNS affordable home units will be built around Selangor Cyber Valley,” he said.

He added that Selangor has met the target of providing 20,000 affordable homes to be built by 2019.