KUALA LUMPUR, March 6 — Perbadanan PR1MA Malaysia (PR1MA) has been advised to review its strategies for housing and commercial development projects in response to current market conditions and needs, according to the Auditor-General’s Report (LKAN) on the financial statements of federal agencies for the year 2022, tabled in the Dewan Rakyat today.

This review is important to ensure the marketability of completed residential and commercial units and to achieve PR1MA’s project development objectives to improve its cash position and cash equivalent.

"In 2022, PR1MA recorded a net loss of RM0.257 billion, primarily attributed to a decline in revenue from housing and commercial sales.

"Sales revenue decreased by RM0.435 billion or 33.7 per cent, reaching RM0.857 billion compared to RM1.292 billion in 2021 and PR1MA’s liabilities amounted to RM5.746 billion as of December 31, 2022,” read the report.

The report highlights the need for this reassessment to ensure that projected cash flows from residential and commercial unit sales can cover operational activities and repayments, particularly concerning the Sukuk Tranche 2 amounting to RM1.750 billion maturing in October 2024.

After receiving feedback on January 22, 2024, PR1MA has been advised to reorganise its fund utilisation strategy which entails prioritising existing commitments and delaying repayment of a portion of Sukuk Tranche 2 loans to focus on completing ongoing projects, including those instructed by the Housing and Local Government Ministry.

In addition, PR1MA has defined Eight Strategic Development Cores, placing emphasis on fostering partnerships and utilising designated land to create housing projects that promise substantial returns in the future. — Bernama