Subsidiary Restructuring Yields Positive Results For Kkdw - Ahmad Zahid

KOTA TINGGI, July 25 (Bernama) -- The decision by the Ministry of Rural and Regional Development (KKDW) to close and merge 23 unprofitable subsidiary companies has led to a significant improvement in the performance of companies under the ministry, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

Ahmad Zahid, who also heads KKDW, said that an initial report he received stated that 100 subsidiary companies under the ministry had shown overall profitability.

"We have successfully transitioned from 'cost centres' to 'profit centres'. This is an early achievement for KKDW," he told reporters after delivering a speech at the main programme of the ministry’s retreat at the Desaru Convention Centre here today.

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He added that merging the unprofitable subsidiaries with profitable ones had also prevented staff layoffs.

Earlier in his speech, Ahmad Zahid mentioned that among the subsidiaries that recorded profits in the first six months of this year were Perda Venture with a profit of RM2.7 million and the KEDA Group of Companies with RM243,706.

Meanwhile, he emphasised that companies operating in prosperous areas with better access to skilled labour, advanced technology, and financial resources should assist other companies to grow and generate profit.

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Ahmad Zahid also stressed the importance of KKDW staff adopting socio-economic values by integrating financial and non-financial benefits for the overall development and well-being of rural communities.

He said that to ensure socio-economic development, job opportunities must be created, and access to quality education should be provided to empower rural residents to innovate and drive economic growth.

"Finally, access to good infrastructure and financial aid not only ensures a better quality of life but also elevates their status to contribute to the country.

"In conclusion, the concept I present is a holistic approach to balancing economic growth and social equity," he said.

This, he added, would ensure that the benefits of economic activities were widely shared and helped build a better future, especially for rural communities.

-- BERNAMA