Terengganu closes down two GLCs, to shut down eight more - MB
Last Update: 16/07/2019
KUALA TERENGGANU, July 16 (Bernama) -- The Terengganu government has closed down two government-linked companies and is set to shut down eight more for being inactive and no longer contributing to the economy of the state, it was stated today.
Menteri Besar Dr Ahmad Samsuri Mokhtar said the two companies were Permint Bina Bahan Sdn Bhd which manufactured red bricks using the traditional method and TI Food Ventures Sdn Bhd which operated the Chicken Cottage fast-food restaurant here.
The two companies were under the jurisdiction of the Terengganu Incorporate Sdn Bhd group.
Ahmad Samsuri told the State Legislative Assembly that eight other GLCs will also be closed down and that the process of winding up was taking place right now.
He was replying to an oral question from Tengku Zaihan Che Ku Abd Rahman (BN-Kuala Besut) who had wanted to know the number of Terengganu GLCs that had been closed down.
On the fate of the workers of the two GLCs already closed down, Ahmad Samsuri said RM75,989 in retrenchment payments had been made to the 17 workers of Permint Bina Bahan.
“Five permanent workers received a total of RM40,450 while 12 temporary workers got RM35,539. As for TI Food Ventures, all the 15 workers were offered jobs in other GLCs,” he said.
Ahmad Samsuri said TI Global Food Management Limited, also a GLC, will be closed down on July 31. The company manages the operations of the Chicken Cottage restaurant in Kuala Lumpur.
He also said that the state government is assessing the 39 GLCs which are no longer in operation and may wind up or be used as special purpose vehicles for new businesses.
Last March, Ahmad Samsuri said the winding up of inactive GLCs is aimed at saving state funds as the companies no longer contributed to the Terengganu economy.