KUALA LUMPUR: The SACC Mall will be demolished to pave the way for the Shah Alam Sentral (SA Sentral) mega development in the Section 14 area, according to Datuk Mahmud Abbas, group chief executive officer of the Selangor State Development Corporation (PKNS).
According to Mahmud, a world-class exhibition centre would replace the SACC Mall.
He said that PKNS plans to develop SA Sentral as a central business district (CBD) across 64.7-hectares of land as part of its transformative initiative.
It was reported that the estimated RM2 billion rejuvenation project will involve several plots in the Section 14 area including Shah Alam Convention Center.
According to Mahmud, SA Sentral will feature residential developments, commercial spaces, and cultural heritage elements, similar to Kuala Lumpur's golden triangle.
"What we are trying to do is revitalise Section 14 of Shah Alam and make it into a CBD. In order to make a successful CBD, you need businesses to be there.
"The area will have the elements of residential, commercial, offices, parks, recreation, a library, an exhibition area, and an LRT station, among others," he told Business Times.
Mahmud noted that PKNS is shifting from its previous image as a low-cost housing developer to become more commercially driven, necessitated by reduced state funding, including land premiums.
"We spend RM63 million a year for CSR. If we take 5.0 per cent of the net margin from housing development to cover the CSR cost, we have to sell RM1.2 billion worth of property," he said.
He also said that PKNS no longer focuses on building affordable housing, as other developers are now meeting that demand.
Looking ahead, PKNS aims to quadruple it current revenue to RM8 billion by 2030.
As PKNS celebrates its 60th anniversary, it is rebranding to reinforce its position as a key player in achieving the goals of the Selangor First Plan (RS-1).
Mahmud said that the company has diversified beyond property development, with subsidiaries in renewable energy, waste management, and medical device manufacturing through Worldwide Holdings Sdn Bhd.
Additionally, another unit, Selgate Corp Sdn Bhd offers healthcare services, while Selangor Industrial Corp Sdn Bhd engages in trading building materials, insurance, smart and green technology, and rooftop solar.
Mahmud said that the company's power plant in Pulau Indah, expected to be operational by the end of the year, will generate an additional RM2 billion in revenue.