PUTRAJAYA – Subsidiaries under the Ministry of Rural and Regional Development (KKDW) which are not generating profits will be closed or revamped as the ministry does not want to continue shouldering the burden, according to Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Zahid, who is also the Rural and Regional Development Minister, said he had ordered all chairmen of agencies under KKDW to monitor the performance of their respective entities.
“Please turn them around. Those that are not profitable should find ways to contribute profit to the agency or KKDW.
“If not, my order is to close. This is very important so that we do not have to feed loss-making entities in our organisation,” he said when delivering his KKDW 2024 Address, here today.
Zahid said several subsidiaries under KKDW had been closed last year as they were not making a profit and the list of companies will be announced in the coming Parliament sitting.
“There were already closures, we also offered management buyout to the management of the companies concerned. We are giving them norminal payment for them to continue if they leave the ministry,” he said in a press conference after the ceremony.
Zahid said the move to change or close loss-making subsidiaries is a new model and that Prime Minister Datuk Seri Anwar Ibrahim had been informed.
He said the prime minister also ordered subsidiaries under the Minister of Finance Incorporated to carry out the same approach as being implemented in KKDW. – January 5, 2024