SHAH ALAM, The dynamic transformation of the Selangor State Development Corporation (PKNS) in exploring high-value and commercial property development has enabled the agency to continue contributing to the state government, its chief executive officer Datuk Mahmud Abbas said.
He said this approach allows PKNS to contribute RM63 million annually in the form of corporate social responsibility (CSR) to the state government, thereby driving the state’s aspirations to balance development and stimulate Selangor’s economy.
‘PKNS is still building affordable homes, but at the same time, we need to venture into businesses that can generate more profit. Unlike in the past, PKNS now has to pay land premiums like other private developers.
‘…and not to forget, PKNS’s annual CSR is RM63 million. If we are only selling houses priced at RM300,000 per unit, with a profit margin of around RM15,000, how can we carry out our CSR with such profits?
He said this at a press conference after the forum ‘PKNS: Future-Proofing Sel
angor’s Real Estate Opportunities’ held in conjunction with the agency’s 60th anniversary, which was officiated by Menteri Besar Datuk Seri Amirudin Shari here today.
Mahmud said PKNS, which was once the sole developer in the Selangor property sector in its early days, now faces challenges as companies that were previously contractors for its projects have also become involved in the state’s real estate sector.
As a result, he said PKNS needs to become more commercially oriented in the future by expanding into various sectors, including renewable energy, waste management, healthcare, hospitality and technology, in addition to developing high-value properties.
Mahmud also clarified that this business transformation does not mean that PKNS has deviated from its founding agenda of building low-cost homes for the people.
‘The PKNS enactment does not include any clause stating that PKNS was established solely to build low-cost houses. Instead, the enactment states that PKNS is to develop the state’s socio-econ
omy by constructing industrial buildings and similar projects,’ he pointed out.
On the forum, Mahmud said that the participation of over 300 attendees, including government agencies, industry leaders, investors and property consultants, will enable PKNS to enhance its strategic partnerships, thereby opening up opportunities to explore new business areas in the future.
‘After 60 years, we can no longer just reflect on history; instead, we must look forward and identify the types of projects and businesses that have potential for future involvement,’ he said.
Source : BERNAMA News Agency
