KUALA LUMPUR – The Housing and Local Government Ministry’s main housing agency, PR1MA Corporation Malaysia, recorded a net loss amounting to RM257 million in 2022.
According to the 2022 Auditor-General’s Report released today, PR1MA also registered liabilities amounting to RM5.746 billion in the same year.
The report attributes the loss to the decline in revenue from home and commercial sales, totaling RM0.435 billion. This reflects a 33.7% reduction from RM1.292 billion in 2021 to RM0.857 billion in 2022.
Apart from that, the report also underscored concerns about PR1MA’s ability to meet its Islamic medium-term note loan (sukuk Tranche 2) repayment, considering the agency’s cash and cash equivalent balance as of December 31, 2022.
“The Sukuk loan balances amounted to RM3.792 billion (2021: RM4.542 billion).
“PR1MA needs to pay the debts by the year 2027, including Sukuk Tranche 2, amounting to RM1.750 billion, which will mature in October this year.
“Based on cash and cash equivalents amounting to RM0.428 billion as of December 31, 2022, PR1MA encounters difficulties in repaying Sukuk Tranche 2,” the report said.
The A-G has recommended that PR1MA re-evaluate its development strategy for residential and commercial projects based on current needs and market conditions.
According to the report, this re-evaluation is essential to ensure the marketability of completed residential and commercial units, thereby enabling PR1MA to attain its project development objectives.
The report also urged PR1MA to ensure the achievement of the agency’s cash projections from the sales of residential and commercial units.
This is to fund operational activities and to settle the sukuk Tranche 2 amounting to RM1.750 billion, maturing in October this year, it said. – March 6, 2024