KUALA LUMPUR: Subsidiaries under the Rural and Regional Development Ministry have recorded profits as of September this year.
Deputy Rural and Regional Development Minister Datuk Rubiah Wang said this is attributed to increased governance and improved business plans that are aligned with the ministry's mission and national policies.
Rubiah said Ketengah Holding Sdn Bhd (Ketengah), especially has almost reached its RM55 million profit target in 2024.
"All these subsidiaries have now recorded profits, unlike last year. We especially congratulate Ketengah, which achieved pre-tax profits. The target for this year was RM55 million, but by September, it had already reached RM58.3 million in profits.
"Likewise, subsidiaries including Risda Group Holdings Sdn Bhd (Risda), Felcra Bhd (Felcra), and those affiliated with Kesedar Holdings Sdn Bhd (Kesedar), Perda Ventures Incorporated Sdn Bhd (Perda), Keda Holdings Sdn Bhd (Keda), and others also recorded profits.
"This demonstrates the proactive measures proposed and implemented based on recommendations by our minister (Datuk Seri Dr Ahmad Zahid Hamidi). They have successfully ensured that these subsidiaries achieve their targets and business plans," she told reporters after the ministry's subsidiary agencies retreat here today.
Risda's financial performance as of September amounted to RM33 million and is projected to reach RM70 million by the financial year ending Dec 31.
A dividend payment of RM109 million for 2023 was distributed to shareholders, marking a 106 per cent increase compared to the paid-up capital of RM103.42 million.
Felcra's financial performance as of September shows an increase in revenue, amounting to RM1,131.49 million compared to RM1,019.21 million for the same period in 2023.
Profit after tax as of September stood at RM116.27 million, compared to RM41.61 million for the same period in 2023.
Kesedar's financial performance stood at RM1.8 million as of September and is projected to reach RM2.7 million by year-end.
All three subsidiaries under Kesedar are expected to post profits in 2024.
Keda's financial performance as of September is encouraging, with two companies reporting profits while two others registered losses.
However, by the end of the year, based on sales revenue projections, Keda is expected to record improved profits.
Perda Ventures Incorporated's financial performance recorded a pre-tax profit of RM3.67 million as of September and is projected to remain profitable with a pre-tax profit of RM2.7 million by year-end.
Meanwhile, another agency, Kejora Holdings Sdn Bhd, recorded a profit of RM672,000 as of August and is projected to reach RM4.5 million by year-end.
Rubiah said during the presentations, these subsidiaries not only showcased well-prepared business plans but also displayed growth potential that could further benefit each respective company.
She attributed the profits to the business plans selected, which are aligned with the objectives of the ministry and national policies.
"The focus on food security, real estate, agrotourism and various other activities have been beneficial for the relevant agencies.
"This was achieved through well-coordinated and structured management, especially in governance, which strengthened the operations and brought profits to the subsidiaries."
She added that new targets, including profit projections, would be set in January next year at another retreat.