PN to review Harapan's decision to sell TH Plantations' subsidiaries
The Perikatan Nasional (PN) government is reviewing the previous Pakatan Harapan administration's decision to sell several subsidiaries of TH Plantations Bhd, the agriculture business arm of Tabung Haji, said Deputy Minister in the Prime Minister's Department (Religious Affairs) Ahmad Marzuk Shaary.
Marzuk (above) said with the sale of 14 out of 19 TH Plantations subsidiaries, its plantation size would be reduced from 100,976ha to around 24,000ha.
The Perikatan Nasional (PN) government is reviewing the previous Pakatan Harapan administration's decision to sell several subsidiaries of TH Plantations Bhd, the agriculture business arm of Tabung Haji, said Deputy Minister in the Prime Minister's Department (Religious Affairs) Ahmad Marzuk Shaary.
Marzuk (above) said with the sale of 14 out of 19 TH Plantations subsidiaries, its plantation size would be reduced from 100,976ha to around 24,000ha.
He said four out of the 14 subsidiaries on sale are profitable.
"The decision to sell the plantations was made at a time when the crude palm oil (CPO) price saw a serious decline, causing the TH Plantations subsidiaries to suffer losses.
"The fall was due to the previous government's actions of not safeguarding trade relations with China and India, thus causing palm exports to dramatically decline," he said in a parliamentary written reply.
The PAS Pengkalan Chepa MP was responding to a question from BN's Tanjong Karang MP Noh Omar (below) who asked about the sale.
"After PN took over the government in February, investor confidence has increased and the palm oil price has also recovered due to the international trade relationship that has been fostered.
"Therefore, the Prime Minister's Department will reevaluate the appropriateness of all decisions to sell the plantations on a large scale," Marzuk added.
He said one of the sales involved disposing of TH Plantations' 70 percent stake in THP-YT Plantations Sdn Bhd to TDM Berhad, a company owned by the Terengganu government.
This sale, involving 2,594ha of land, is according to market value and is being finalised, he added.
It was reported in March that THP-YT Plantations Sdn Bhd was sold for RM7 million.
Marzuk said another proposed sale involved TH Plantations' Bumi Suria Ventures Sdn Bhd and Maju Warisan Mas Sdn Bhd involving 6,514ha to Tamaco Plantation Sdn Bhd, which he pointed out is a non-Bumiputera company.
This deal is awaiting approval from the Economic Planning Unit to determine whether the sale is according to the market price, he added.
It was reported in December last year that the two loss-making companies would be sold for a combined RM170 million.
"The Prime Minister's Department (Religious Affairs) under PN, as the trustee of Tabung Haji depositors, will always protect their interest, Tabung Haji's assets and Muslims in the country," Marzuk said.
Tabung Haji is a fund set up to help Muslims fulfil their pilgrimage obligations.
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