MOF seeks to convert RM165m govt loan to UDA Holdings into equity

• Details on the loan tenure and interest rates were not disclosed in the Dewan Rakyat's order paper.

KUALA LUMPUR (March 9): Putrajaya is seeking Parliament approval to convert some RM165.28 million government loan to UDA Holdings Bhd into equity investment, effectively forgiving these borrowings to the Ministry of Finance-owned property developer, according to motions filed to the Dewan Rakyat.

“This House resolves, in accordance with the provisions of paragraph 8(3)(a)(iv) of the Financial Procedure Act 1957, that the government through the Minister of Finance (Incorporated), makes an investment by converting RM165.28 million of The Government of Malaysia loan to UDA, a company owned by the Minister of Finance (Incorporated) into equity equivalent to 165.28 million ordinary shares at value of RM1 per share,” the motion read.

Details on the loan tenure and interest rates were not disclosed in the Dewan Rakyat's order paper.

UDA, formerly the Urban Development Authority, was established in 1971 to advance the nation’s urban development.

It was listed on the Main Board of Kuala Lumpur Stock Exchange in 1999, and was subsequently delisted from Bursa Malaysia in 2007 to become a wholly-owned subsidiary of Khazanah Nasional Bhd before being transferred to the Ministry of Finance in the following year.

The motion, filed to Dewan Rakyat on March 1, is the third motion queuing on the August House orders, after the ongoing debate on the Supply Bill 2023 (revised Budget 2023) and Ministry of Home Affairs’ motion for the Printing of Qur’anic Texts (Amendment) Bill 2023.

Dewan Rakyat is slated to conclude and pass the policy stage debate for the revised Budget 2023 on Thursday (March 9) with Prime Minister Datuk Seri Anwar Ibrahim set to deliver the winding up speech in the evening.

The House will subsequently move into the committee stage debate for the Federal Government’s budget until Mar 28, before it deals with other bills and government’s businesses through April 4.