KUALA LUMPUR: Umno Supreme Council member Datuk Seri Dr Puad Zarkashi has criticised the decision to establish SG4 Group Sdn Bhd, a new jointly-owned company by the four Perikatan Nasional-led state governments.
He said that the initiative is politically motivated, noting that it is unprecedented for four states to share ownership of a company.
This shared ownership, he said, could create complications related to labour, assets, shares, and the board of directors.
The Rengit assemblyman also questioned the company's future if any of the states currently led by Perikatan Nasional - Terengganu, Kelantan, Perlis, and Kedah - were to fall to other parties.
"What will happen to the SG4 Company if one or two PN state governments change hands? Terengganu, Kedah, and Perlis could potentially be reclaimed by BN.
"Therefore, the establishment of the company has political motives, not business ones. Especially since its advisor is Tun Dr Mahathir Mohamad (former Prime Minister)," Puad said in a post on his Facebook.
Yesterday, the four PN-led state governments established the company to drive development in their states, focusing on five key areas.
Pas secretary-general Datuk Seri Takiyuddin Hassan said each state would hold a 25 per cent share in the company, which was registered a few months ago.
The five focus areas include infrastructure and logistics, trade investment and industries, agriculture and food security, education and nation-building, and new revenue streams.
Takiyuddin also cited rare earth elements and green technology as potential business opportunities.
Meanwhile, Dr Mahathir said the initiative aims to ensure that economic benefits are distributed fairly, with a particular focus on these economically disadvantaged states.