Saturday, May 17, 2008

PKNS may choose to go it alone - The Star

May 17, 2008 By EDWARD RAJENDRA

THE Selangor State Development Corporation (PKNS), which has previously carried out development projects on a joint venture basis, is mulling over going on its own.

State housing and building maintenance committee chairman Iskandar Abdul Samad said most of the projects were joint ventures between PKNS and other construction companies and it was time for the state’s development arm to make a bold foray into the construction industry on its own.

Housing boom: Iskandar (right) speaking to Tong Chun Development Sdn Bhd director Ken Ng Chee Kean during the exhibition.

“The Selangor Government feels that PKNS is able to take flight on its own due to the numerous accomplished projects. Discussions are being held to plot the future of PKNS,” he said.

Earlier, Iskandar, who was at the PKNS Affordable Properties Sale 2008 in Shah Alam, had said that one of the main reasons for such a bold move was to avoid problems encountered with joint venture partners who absconded once the projects suffered.

“When this happens, PKNS has to shoulder the project and take the blame. If the project does well, the joint venture partner enjoys the profits. So, it's better for PKNS to go on its own and build a good name in the industry,” he said.

PKNS deputy general manager (administration and development) Md Nasir Md Arshad said the decision would be announced soon after all the details were finalised.

He added that the response for the property sale had been tremendous with sales touching RM12.5mil with 48 houses and shoplots sold in the first four days.

“Our target is to achieve at least RM144mil in sales from the total RM180mil in property showcased.

“We are encouraging civil servants, especially teachers, to buy their own houses as they are able to obtain quick loan approvals from the Finance Ministry,” he said.

PKNS housing manager Lokman Abdul Kadir said youngsters who have worked for at least five years should build their wealth through real estate, as it would give them a chance to retire rich.

“When you rent, you are throwing away money you can be putting towards your new home.

“Some rent a house in Petaling Jaya for RM1,200 and don’t even own the house after 10 years,” he said.

Lokman cautioned that when buying a home, a good neighbourhood should be chosen as it would not only play a pivotal role in family life, but also in the resale value of the property.

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