The government may consider terminating TH Plantations Bhd's (THP) asset sale as there are many matters that need to be reviewed, the Dewan Rakyat was told today.
Deputy Minister in the Prime Minister's Department (Religious Affairs) Ahmad Marzuk Shaary said the sale of THP's assets would not resolve the company's debt burden; instead, it would require a debt restructuring to manage the cash flow.
“Seventy-five per cent of loans taken by THP are from (parent company) Tabung Haji. The important question here is what's all the hurry in selling (THP's subsidiaries) when commodity prices are in the recovery process,” he said in response to questions by Tan Sri Noh Omar (BN-Tanjong Karang) on the justification for the asset sale as well as on the area and number of plantations being disposed of.
Ahmad Marzuk said the decision to divest the 14 THP subsidiaries, which own a combined 76,957 hectares (ha) or 76.2 per cent of the group's land totalling 100,976ha as at Dec 31 last year, was made during the Pakatan Harapan administration in August 2019.
He said checks by the Prime Minister's Department (Religious Affairs) found four of the 14 subsidiaries were profitable. They are THP Ibok, THP Pelita Sadong, THP Pelita Gedong and Hydroflow.
According to THP's 2019 annual report, as at Dec 31, 2019, THP Ibok owned 958ha in Terengganu, THP Pelita Sadong owned 4,567ha in Sarawak, THP Pelita Gedong owned 8,011ha in Sarawak, and Hydroflow had 5,583ha in Sarawak.
The decision to sell the plantations was made when palm oil prices saw a serious decline which led to the THP subsidiaries incurring losses.
According to Ahmad Marzuk, Pakatan Harapan's action which affected relations with China and India, led to a plunge in palm oil exports and prices.
On THP's disposal of its 70 per cent equity interest in THP-YT Plantation Sdn Bhd to TDM Bhd (a subsidiary of the Terengganu state government), he said the RM7 million sale of THP-YT, which owns a total plantation land of 2,594ha in Terengganu, was being finalised and the transaction was done at market price.
Also being finalised was the disposal of 100 per cent of Bumi Suria Ventures Sdn Bhd and Maju Warisan Mas Sdn Bhd, which own 6,514ha in Sarawak, to non-Bumiputera company Tamaco Plantation Sdn Bhd, he said.
He said the RM170 million sale of the two companies was still at the Economic Planning Unit's approval consideration stage, as such sale to a non-Bumiputera company must get the EPU's green-light.
The sale of Bumi Suria Ventures and Maju Warisan Mas was awaiting approval to determine whether the sale was done at market price and whether the divestment would impact THP's long-term planning and profitability.
Ahmad Marzuk said under the Perikatan Nasional (PN)-led government, investor confidence had improved and crude palm oil prices were recovering following a revival in international trade relations.
-- BERNAMA
Bernama
Wed Jul 22 2020
Ahmad Marzuk Shaary said the sale of THP's assets would not resolve the company's debt burden; instead, it would require a debt restructuring to manage the cash flow. - File
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.