Chairman's Statement


It is our vision to be the leading integrated provider of infrastructure and utility services, lead and achieve a global presence in the industries we operate

When I was entrusted with the task to steer Perangsang Selangor to greater heights as the Chairman in March 2011, I agreed with the understanding that I could implement the turnaround over four Phases and four years.

 

The Phase 1 of the turnaround to improve the Corporate Structure and Organisational Structure of the Group was successfully completed with the appointment of new faces heading key positions within the Group.

 

We have also distinctly identified the profit and loss making subsidiaries and outlined strategic plans as well as policies for the turnaround plans. We have also reinforced the internal procedures, with the introduction of a new Standard Operating Procedure, Limits of Authorities and Financial Authority Limits.

 

The review of the Corporate Structure, uncovered major problems that have been plaguing the Group in the form of Joint Ventures that were inherited during the merger of SAP Holdings Berhad (SAP) and Brisdale Holdings Berhad (Brisdale) in 2003 and the formation of Kumpulan Hartanah Selangor Berhad as well as Kumpulan Perangsang Selangor Berhad.

 

The Joint Ventures dated as far back as 1991 had resulted in the Group suffering losses in terms of non-payment of profits due to the Group by the Joint Venture partners, abandoned projects on lands owned by the Group and the winding up of the joint venture partner resulting in the potential or even outright loss of land and revenues.

 

The Joint Ventures dated as far back as 1991 had resulted in the Group suffering losses in terms of non-payment of profits due to the Group by the Joint Venture partners, abandoned projects on lands owned by the Group and the winding up of the joint venture partner resulting in the potential or even outright loss of land and revenues.

 

Over this backdrop, the 2012 financial year will be challenging. The Group will have to remain competitive by continuously seeking ways to enhance economic growth while at the same time, strengthening operational efficiency.

 

This year is a crucial year for the preparation of our second year's development plans, which is to scrutinise our Balance Sheet items, Assets and Liabilities alike, unlock the value of our Group's assets in order to reduce the Group's Liabilities and increase investments in new growth areas. Our strategy is to improve our performance through a judicious mixture of new businesses and unlocking the economic value of assets of our existing investments.

 

Amongst the strategies being implemented in stages by the Group are unlocking the value of its assets in Bestari Jaya and Pulau Indah. A Memorandum of Understanding was signed with Sun Lohas Group Limited for a proposed development of the 4,976 acres of land into a "Lifestyle of Health and Sustainable" (LOHAS) city in Bestari Jaya. Another Memorandum of Understanding was also signed for the appointment of Norzakiah Architect as the master planner to develop 1,200 acres land on the eastern part of Pulau Indah into an integrated township.

 

Perangsang Selangor has also been looking into new areas of investments whilst rationalising existing investments. The new investments acquired recently are liquefied petroleum gas and prepaid mobile operator.

 

Perangsang Oil and Gas Sdn Bhd, wholly owned subsidiary of Perangsang Selangor; signed a Subscription and Shareholders' Agreement on 11 June 2012, with NGC Consolidated Holdings Sdn Bhd and NGC Energy for investment in LPG business via an acquisition of 40% equity stake in NGC Energy Sdn Bhd.

 

In the meantime, Perangsang Telco Sdn Bhd, another wholly owned subsidiary of Perangsang Selangor; signed an Investment and Shareholders' Agreement with Friendi Group, Dubai/Oman as a Mobile Virtual Network Operator (MVNO) in Malaysia to provide prepaid mobile voice and data telephony services to customers using the network of a local mobile operator. The business is acquired via an acquisition of 30% equity stake in Ceres Telekom Sdn Bhd, which will be launching the Friendi and Virgin Mobile brands of prepaid mobile soon.

 

We will maintain the momentum to pursue other new business opportunities and continue to drive the Company towards the growth path to improve shareholders' value in 2012.