State development corporations can learn a thing or two from PKNS

SHAH ALAM: The Selangor State Development Corporation, known locally as Perbadanan Kemajuan Negeri Selangor (PKNS), is an example of a successful agency basking in effective governance and strategic planning which other state development corporations nationwide, including the Sarawak Economic Development Corporation (SEDC) should emulate.

PKNS has made significant strides in developing Selangor. Established on August 1, 1964, it has improved the quality of life for local communities by providing better quality affordable housing and creating vibrant townships such as Shah Alam, Bandar Baru Bangi and Ampang.

Under the leadership of CEO Datuk Mahmud Abbas, PKNS has managed to stand out among state development corporations by not only undertaking numerous projects but also consistently generating profits.

Mahmud Abbas.

“We need to make profits or else we will have to answer to politicians and stakeholders,” said Mahmud Abbas at a recent media event ahead of PKNS’s rebranding exercise on Aug 8 marking its 60th anniversary.

This characteristic of profitability paired with accountability has set a benchmark for other state development corporations in the country which often rely heavily on state funding.

PKNS’s portfolio of ongoing developments includes impressive townships like Antara Gapi, Siera Alam, Kota Puteri, and Selangor Cyber Valley. These projects exemplify the corporation’s dedication to sustainable growth and community development.

Transparency and good governance have been key to PKNS’s success, especially in managing large-scale projects. This approach ensures that the corporation’s operations remain above board and beneficial to the public.

Despite his pivotal role in PKNS’s achievements, Datuk Mahmud Abbas remains modest, attributing the corporation’s success to the hard work and dedication of PKNS’ staff and management.

His leadership style stresses the importance of delivery and maintaining the trust of clients, which is crucial in any development sector.

In addition to its primary focus on real estate and township development, PKNS has diversified into various sectors including energy and power development, healthcare, green energy, and solar projects.

The corporation’s corporate social responsibility (CSR) initiatives alone amount to RM63 million annually, highlighting its commitment to giving back to the community.

PKNS’ yearly revenue is nearly four times that of the Selangor state government, a testament to its robust business model and strategic initiatives.

Looking to the future, PKNS aims to transform from a RM2 billion corporation into an RM8 billion entity within the next four years.

PKNS’ involvement extends to the hospitality industry, management companies, and real estate development, boasting 13 subsidiaries with plans to merge a few to enhance efficiency. These strategic moves are designed to streamline operations and maximise the corporation’s impact.

As PKNS continues to grow and innovate, it sets a powerful example for other state development corporations and agencies across the country. The corporation’s successful integration of transparency, good governance, and profitability serves as a blueprint for sustainable development and community enhancement.