Selangor Journal
Image for illustration purposes only. — Picture by PIXABAY

Selangor to be debt-free by next year, MB announces

By Danial Dzulkifly

SHAH ALAM, Nov 10 — Selangor is on track to fully settle all of its debts to the Federal government by 2024, marking a significant financial milestone for Malaysia’s most developed state.

Menteri Besar Dato’ Seri Amirudin Shari said, at present, Selangor’s debt liability with the Federal government stands at RM19.2 million, the majority of which were from past commitments related to its water supply project and Selangor State Trust Scheme (Asas).

Menteri Besar Dato’ Seri Amirudin Shari holding a copy of the 2024 Selangor Budget, shortly before its tabling in the Selangor State Legislative Assembly, at the State Secretariat Building, Shah Alam, on November 10, 2023. — Picture by FIKRI YUSOF/SELANGORKINI

He said clearing its debt obligations next year is a pivotal step in Selangor’s journey towards financial stability and sustainability, ensuring robust economic growth in the coming years.

“With the advantage of financial freedom, the state government has successfully demonstrated excellent governance in managing financial resources without compromising the quality of services to enhance the living standards of Selangor’s people,” he said when tabling the 2024 Selangor Budget today.

Amirudin added the settling of the debt liabilities next year would only involve the remaining RM1.893 million instalment payment for Asas.

The remaining RM17.314 million debt, which was for loans for Selangor’s water supply project, will be transferred to Pengurusan Aset Air Bhd.

He said this aligns with the Global Settlement Agreement for Selangor’s water industry restructuring.

The Menteri Besar also announced the decision to diversify its revenue streams, including leveraging on contributions and dividends from state government subsidiaries under Menteri Besar Selangor (Incorporated), or MBI.

This is part of the strategies to ensure revenue sustainability per the First Selangor Plan, which is designed to enhance the state’s economy and competitiveness for the next five years.

“The initial target is to collect a minimum of RM40 million in dividend revenues in 2024 from state government subsidiaries under MBI. This figure will be annually reviewed, taking into account the financial and economic landscape,” he said.

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