Business Transformation Essential For Pkns To Remain Competitive - Group Ceo

SHAH ALAM, Aug 29 (Bernama) -- The Selangor State Development Corporation (PKNS) has been told to transform its business practices for a prosperous future and align its direction with its role as a leading developer in the state.

PKNS group chief executive officer Datuk Mahmud Abbas said that after six decades of establishment, PKNS, now advancing into a conglomerate era, must remain resilient and continue to evolve to compete with other leading property developers.

He said that the corporation's dynamic transformation in exploring high-value and commercial property development enables it to compete with other developers while contributing to the state government, including through corporate social responsibility (CSR) initiatives amounting to RM63 million annually.

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"PKNS has not deviated from its goal of building affordable homes, but after decades of operation and in line with economic development, we need to transform our business sector to ensure the corporation remains competitive.

"Previously, for every area where we developed affordable housing, we did not have to pay for land as these were provided free by the government. However, with current land prices and other infrastructure costs, we are incurring a loss of RM30,000 per unit," he said at a press conference following the forum Transformasi PKNS: Peluang dan Cabaran (PKNS Transformation: Opportunities and Challenges) held in conjunction with the agency's 60th anniversary today.

Mahmud said that to generate revenue and contribute to the state government, PKNS can no longer focus solely on building affordable homes but must instead venture into business sectors offering higher profits.

He said that this transformation does not mean PKNS deviates from its founding agenda; instead, the corporation remains committed to building 10,000 low-cost homes by 2030.

After exploring seven business sectors, including renewable energy, waste management, healthcare, hospitality, and technology, Mahmud said that the agency now aims to invest in artificial intelligence (AI) and data centres—areas identified as relatively untapped by local industry players.

"I am confident that PKNS can engage in and invest in these two areas, as we find that few of our people are involved. I am confident we can compete," he said.

Regarding the forum, Mahmud noted that the discussion, which featured three prominent corporate figures and was attended by 250 participants, served as a platform to discuss future trends, challenges, prospects, initiatives, and the transformation strategies necessary for PKNS to move toward a more sustainable, competitive and relevant conglomerate era.

"This forum not only has a significant impact on PKNS in maintaining its image as a stable and relevant development agency but also provides a platform for us to seek ideas that can advance the corporation to a higher level in the future," he added.

-- BERNAMA