KUALA LUMPUR: Umno Supreme Council member Datuk Seri Dr Puad Zarkashi has voiced strong concerns over the future of SG4 Bhd, a company jointly owned by the Perikatan Nasional (PN)-led states of Kedah, Kelantan, Terengganu, and Perlis.
His remarks came in response to comments by Pas secretary-general Datuk Seri Takiyuddin Hassan, who claimed that any political shifts in these states would have no impact on the company's operations.
Puad disagreed, saying that the shared ownership model between the states could lead to significant challenges if there was a change in government.
"If political parties fall out of alignment or if there is a leadership change in any of the states, shareholders may demand the value of their shares, potentially triggering a range of issues," he said in a Facebook post.
He said that it was unprecedented for state governments to share a single company and cautioned that governance complications could arise during power transitions.
Yesterday, Takiyuddin who is also the Pas secretary-general said there would be no impact on SG4 Group if any of the four states under PN switched to BN.
He said like other companies registered with the Companies Commission of Malaysia (SSM), any of its partners or shareholders were free to leave the company at any time.
Any other states are also welcome to join the company despite not sharing the same political allegiance, he added.
Takiyuddin had previously announced that the four PN-led states – Kedah, Terengganu, Kelantan, and Perlis – had formed SG4 Group to drive development in their regions.
Each state holds a 25 per cent share in the company, with an investment of RM250,000.
The company's focus areas include infrastructure, trade, agriculture, education, and potential opportunities in rare earth elements (REE) and green technology.