KOTA TINGGI: Shutting down and merging 23 unprofitable Rural and Regional Development Ministry subsidiaries has resulted in a big improvement in their performance, said Minister Datuk Seri Dr Ahmad Zahid Hamidi.
He said an initial performance report indicated that 100 subsidiaries had shown profits.
"Based on the initial report received, very drastic changes have occurred. Subsidiaries that were making losses have been directed by me to be closed and merged with profitable subsidiaries.
"So we transformed some of the subsidiaries from being liabilities to becoming profitable entities.
"The closure and merger of the subsidiaries with profitable companies were to ensure that employees weren't laid off."
Zahid said this after at the ministry's workshop for programmes under its purview.
In his address, Zahid, who is deputy prime minister, said Perda Venture and Keda Group of Companies were among the subsidiaries that had reported profits in the first eight months of this year.
"Perda Venture recorded a profit of RM2.7 million while the Keda Group of Companies made a profit of RM243,706."
Meanwhile, he said there were three approaches to maintain villages' competitiveness.
"Firstly, through heritage cultivation, which can be done by conducting business without forsaking the heritage of a community.
"Secondly, by providing education for rural communities.
"Support like public tuition classes by the Rubber Industry Smallholders Development Authority and Kedah Regional Development Authority, and skills training by the Community Development Department and GiatMara, will increase villagers' knowledge and boost children's educational opportunities and family finances.
"Thirdly, maximising the use of natural assets. For instance, rural communities should be encouraged to develop unused land to generate income."