SEDC’s: Catalysts to Development or Under-Performing?

SEDC’s:SEDC’s:Catalysts to Catalysts to

Development or Under-Development or Under-Performing?Performing?

Perbadanan Kemajuan Negeri Kedah

BackgroundBackground

Incorporated in 1965Incorporated in 1965

Established under State Enactment 5/1965Established under State Enactment 5/1965

A government statutory body to:A government statutory body to:– InitiateInitiate– PlanPlan– ImplementImplement– PromotePromoteSocio economic and industrial development Socio economic and industrial development projects in the state of Kedahprojects in the state of Kedah


Role of KSDCRole of KSDC

““To spearhead the economic development To spearhead the economic development through an integrated approach by through an integrated approach by

adopting a work culture that emphasizes adopting a work culture that emphasizes on integrity, creativity, discipline, and on integrity, creativity, discipline, and

quality in order to provide an efficient and quality in order to provide an efficient and professional service with the realization of professional service with the realization of an overall socio-economic responsibility an overall socio-economic responsibility

and the creation of future corporate and the creation of future corporate leaders.”leaders.”

Perbadanan Kemajuan Negeri KedahHousing

IndustrialMajor ActivitiesMajor Activities

Plantation

Services Investment

Manufacturing

Tourism

Property


PlantationPlantationRubber estates:Rubber estates:– Laka Temin, Bukit Kayu HitamLaka Temin, Bukit Kayu Hitam– Bukit Perak, PendangBukit Perak, Pendang– Ladang Sungai Ular, KulimLadang Sungai Ular, Kulim

Total plantation land – more than 8,000 hectaresTotal plantation land – more than 8,000 hectares

Factory:Factory:

– Kilang Hevea Bukit Perak, PendangKilang Hevea Bukit Perak, Pendang

Provide more than 2,000 job opportunitiesProvide more than 2,000 job opportunities


PlantationPlantation

More than 4,000 hectares have been More than 4,000 hectares have been developed into townships, industrial and developed into townships, industrial and commercial developmentcommercial development

New areas are being acquired to replace New areas are being acquired to replace and increase the plantation area and increase the plantation area


BKT KAYU HITAM

DARULAMAN

MERGONG

GURUN

B.ARANG

K. KETIL

HI-TECHKULIM

T. BATU

SG PETANI

IndustrialIndustrial

Industrial ParksIndustrial Parks– 10 sites10 sites– 1600 Hectares1600 Hectares– 1991 – 20051991 – 2005

Approved Approved investment: investment: RM30.212 billionRM30.212 billion

Employment Employment opportunity: opportunity: 112,000112,000


Kulim Hi-Tech Park (KHTP)Kulim Hi-Tech Park (KHTP)

LocationLocation: Mukim Padang Cina : Mukim Padang Cina Kulim, Kedah Darul AmanKulim, Kedah Darul Aman

AreaArea: 4,080 acres/ 1,651 hectares: 4,080 acres/ 1,651 hectares

Status of FundingStatus of Funding: PKNK, Federal : PKNK, Federal Government and financial institutionsGovernment and financial institutions


Manufacturing Services

USA Japan Malaysia Others Germany

47% 53%

RM2.07 B

RM0.16 B

RM2.3 BM

RM6.76B

Manufacturing Sector – Investment by Country

Investment in KHTP - by SectorsInvestment in KHTP - by Sectors

RM4.0 B

Total Investment in KHTP: RM 20 Total Investment in KHTP: RM 20 BillionBillion


Manufacturing CompaniesManufacturing Companies


QT | SERVICESQT | TECHNOLOGY

Best Solution Provider HEXATECH

Supporting CompaniesSupporting Companies


InvestmentInvestment

CompaniesCompanies NosNos EquityEquity

Wholly Owned Companies (100%)Wholly Owned Companies (100%) 2626 100%100%

Subsidiaries Companies (50% - 99%)Subsidiaries Companies (50% - 99%) 33 51% - 99%51% - 99%

Associated Companies (30% - 49%)Associated Companies (30% - 49%) 1010 30% - 50%30% - 50%

Investment Companies (0% - 29%)Investment Companies (0% - 29%) 1515 Below 30%Below 30%

Listed CompaniesListed Companies 1212

Unit TrustUnit Trust 11

6767

As at 31 December 2005

Total investment: RM 187 millionTotal investment: RM 187 million


InvestmentInvestmentMajor activities of companies:Major activities of companies:– PlantationPlantation

Kumpulan Ladang-Ladang Perbadanan (Kedah) Sdn BhdKumpulan Ladang-Ladang Perbadanan (Kedah) Sdn Bhd

Gula Padang Terap Plantations Sdn BhdGula Padang Terap Plantations Sdn Bhd

– Construction and Property DevelopmentConstruction and Property DevelopmentBina Darulaman BerhadBina Darulaman Berhad

Ideal Appraisal Sdn BhdIdeal Appraisal Sdn Bhd

– MedicalMedicalKedah Medical Centre Sdn BhdKedah Medical Centre Sdn Bhd

Unomedical Sdn BhdUnomedical Sdn Bhd

– TourismTourismKedah Resort Sdn BhdKedah Resort Sdn BhdGrand Central Enterprises Sdn BhdGrand Central Enterprises Sdn Bhd


InvestmentInvestment

Public listed companies:Public listed companies:

1.1. Bina Darulaman BerhadBina Darulaman Berhad

2.2. SPK-Sentosa Corporation BhdSPK-Sentosa Corporation Bhd

3.3. EUPE Corporation BerhadEUPE Corporation Berhad


PropertyProperty

New Township:New Township:

–Bandar AmanjayaBandar Amanjaya

–Bandar DarulamanBandar Darulaman

–Bukit Kayu HitamBukit Kayu Hitam


TourismTourism

HotelHotel SP Inn, Sungai PetaniSP Inn, Sungai Petani

Gunung Jerai ResortGunung Jerai Resort

Hotel Grand Continental, Alor StarHotel Grand Continental, Alor Star

Darulaman Golf and Country ClubDarulaman Golf and Country Club

Kulim Golf and Country ResortsKulim Golf and Country Resorts

Telok Datai Resort, LangkawiTelok Datai Resort, Langkawi

Cinta Sayang Golf and Country Cinta Sayang Golf and Country ResortResort


ServicesServices

KSDC Insurance Brokers Sdn KSDC Insurance Brokers Sdn BhdBhd

Kedah Medical Centre Sdn BhdKedah Medical Centre Sdn Bhd


Restructuring of SocietyRestructuring of SocietyIndustryIndustry– Subsidized industrial landSubsidized industrial land

EntrepreneurEntrepreneur– Entrepreneurship Programmes through training, Entrepreneurship Programmes through training,

seminars and coursesseminars and courses

PropertyProperty– Shophouses at low rental for BumiputerasShophouses at low rental for Bumiputeras– Retailing outlets for BumiputerasRetailing outlets for Bumiputeras– Ready-built factories for SMI’s entrepreneurReady-built factories for SMI’s entrepreneur– Development of new townshipDevelopment of new township

TourismTourism– Development of hotels in new areasDevelopment of hotels in new areas


Catalysts to DevelopmentCatalysts to Development

Lead agency in Industrial Lead agency in Industrial developmentdevelopment

Development and promotion of new Development and promotion of new areasareas

Capital Intensive InvestmentsCapital Intensive Investments

Undertaking important projects of Undertaking important projects of the statethe state

Implementing social objectives of Implementing social objectives of the Governmentthe Government


Performance: 2001 – 2005Performance: 2001 – 2005

0

20

40

60

80

100

120

RM (in million)

2001 2002 2003 2004 2005

Year

Turnover

Gross Profit

Net Profit (BeforeTax)


Turnover – SectorialTurnover – Sectorial

2001

2004 2005

2003

Plantation

Industrial

Property

2002

57%

57%

93% 93%

53%


Gross Profit - SectorialGross Profit - Sectorial

-15

-10

-5

0

5

10

15

20

25

2001 2002 2003 2004 2005

Year

RM

(in

mil

lio

n)

Plantation

Industrial

Property


Accumulated ProfitAccumulated Profit

1980 – (RM 6 million)1980 – (RM 6 million)

1990 – RM 36 million1990 – RM 36 million

1995 - RM 325 million1995 - RM 325 million

2005 - RM 457 million2005 - RM 457 million


Accumulated ProfitAccumulated Profit

360370380390400410420430440450460470

2001 2002 2003 2004 2005

Year

RM

(in

Mil

lio

n)


AssetsAssets

-100

0

100

200

300

400

500

600

RM (in Million)

2001 2002 2003 2004 2005

Year

Fixed Asset

Net Current Asset

NTA


Constraints to Better Constraints to Better PerformancePerformance

ExternalExternal

– Limited ResourcesLimited Resources

– Policies & ProceduresPolicies & Procedures

– Political ConsiderationsPolitical Considerations

– Social ConsiderationsSocial Considerations

– Public Perceptions and ExpectationsPublic Perceptions and Expectations


Constraints to Better Constraints to Better PerformancePerformance

InternalInternal

– Limited Internal ResourcesLimited Internal Resources

– Government Policies and ProceduresGovernment Policies and Procedures

– Social ObligationsSocial Obligations


Kedah: Economic IndicatorsKedah: Economic Indicators

19901990 20002000 20042004

GDP (RM million)GDP (RM million) 3,5113,511 9,0999,099 10,93310,933

Per Capita GDP (RM Per Capita GDP (RM million)million)

2,6122,612 4,1374,137 6,0306,030

GDP GrowthGDP Growth 9.6% 9.6% (Annual Average (Annual Average

1990 - 1999)1990 - 1999)

6.4%6.4%


ConclusionsConclusions

PERFORMING andPERFORMING and CATALYSTS TO DEVELOPMENTCATALYSTS TO DEVELOPMENT

MADA

KEDAHCORP

KEDAHINVEST

YIK

PKB

LADA

KEDA

PKNK

KEDAHSTATE

PKNK

Thank YouThank You

SEDC’s: Catalysts to Development or Under-Performing?

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