PENGERANG: The Rural and Regional Development Ministry's move to close and merge 23 agency subsidiaries that failed to generate profit have brought drastic changes to the performance of companies under the ministry, says Datuk Seri Ahmad Zahid Hamidi.

He said the initial report he received stated that the 100 agency subsidiaries that were still under the ministry have shown overall profits.

“We have been able to pass the level of a company from being a cost centre to a profit centre. This is an early success achieved by the ministry," added Ahmad Zahid, who is both the Deputy Prime Minister and Rural and Regional Development Minister.

Ahmad Zahid said this when met after attending the Rural and Regional Development Ministry’s retreat at Desaru Convention Centre here on Thursday (July 25).

He also said the merger of subsidiaries that failed to generate profit with profitable companies has also been able to avoid staff layoffs.

Earlier in his speech, Ahmad Zahid said among the subsidiaries that recorded profits during the first six months of this year were Perda Venture with a record profit of RM2.7mil and the Keda group of companies with RM243,706.

He also called on companies that operate in prosperous areas and often have better access to skilled labour, advanced technology and financial resources to also help other companies to grow and profit.

Ahmad Zahid then said that the ministry should apply socio-economic values to a level beyond mere financial metrics.

"It encompasses the wider impact of our economic activities on the community, integrating both financial and non-financial benefits that contribute to the overall development and well-being of rural communities," he added.

He said that in order to ensure that core socioeconomic values were established, the ministry must create job opportunities that not only provide income but also provide purpose, stability and the ability to contribute meaningfully to society.

In addition, he said, the Rural and Regional Development Ministry should provide access to good and quality education to empower villagers to create innovation and drive economic growth.

"In increasing social inclusion, it is our responsibility to ensure that villagers are not marginalised, given opportunities in economic activities and then create a rural community that has a voice and a role to implement," he said.

He added the shift in innovation and technology would be a catalyst for sustainable economic growth, thus allowing the overflow to be enjoyed by all people in rural areas with no one being left behind.

"Lastly, with access to good infrastructure and financial assistance, it can not only guarantee a better quality of life but raise their dignity in their contributions to the country. The concept I bring is a holistic balancing of economic growth and social equality," he said.

He added this simultaneously ensures that the benefits of economic activity can be widely shared and further build a future where prosperity and well-being are not the privilege of a few people, but the rights of all, especially rural communities.

https://www.thestar.com.my/news/nation/2024/07/25/rural-ministry039s-move-to-close-merge-subsidiaries-has-improved-performance-says-zahid