Port Klang Authority Still Owes Govt Rm3 2bil


The government extended a loan of RM3.8 billion to the Port Klang Authority in 2013 to underwrite the cost of developing the Port Klang Free Zone. (File pic)
PETALING JAYA: A total of RM3.2 billion out of the RM3.8 billion federal loan extended to the Port Klang Authority (PKA) remains outstanding, according to its general manager, K Subramaniam.
The loan was extended to PKA in 2013 to underwrite the cost of developing the Port Klang Free Zone (PKFZ).
Under the loan agreement, the port authority has to make an annual repayment of RM222 million from 2018 to the finance ministry.
Subramaniam said the PKA has been making the annual repayment to the federal government without fail.

He also revealed that in the last six years, PKA’s annual deficit and surplus had more or less cancelled out each other.
In 2023, PKA recorded a loss of RM600,000, he said.
“This year, our revenue is expected to surpass RM400 million, with a RM10 million surplus. We also have over RM500 million in reserves,” he said.
In 2018, transport minister Loke Siew Fook revealed that the annual payment PKA made to the federal government led to the authority experiencing a cash flow deficit of almost RM43 million seven years ago.
Asked how PKA managed to generate its expected revenue of RM400 million, Subramaniam attributed it to better management of its land assets and improved port services for higher returns.
As for a turnaround plan, he said: “We will further improve PKFZ’s operations to generate higher revenue with a higher rate of occupancy of warehouses and industrial park management services.” - FMT


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