Mara Inc drafting property valuation policy, to focus only on domestic investments, says PAC

• The policy aims to ensure consistent, accurate, and transparent valuations that comply with professional standards. It will cover, among other aspects, property acquisition, disposal, and investment strategies both domestically and abroad.

KUALA LUMPUR (March 5): Mara Incorporated Sdn Bhd (Mara Inc) is currently drafting a comprehensive property valuation policy, which is expected to be submitted for board approval in this quarter, according to the Public Accounts Committee (PAC).

The policy aims to ensure consistent, accurate, and transparent valuations that comply with professional standards. It will cover, among other aspects, property acquisition, disposal, and investment strategies both domestically and abroad.

“This policy will come into effect after receiving approval from the Mara Inc board of directors,” the PAC stated in its follow-up report on Mara Inc’s management, tabled in Parliament on Wednesday.

The drafting of the new policy follows the PAC’s report last November, which found that Mara Inc, the wholly owned property unit of state-linked investment holding company Mara Corp, had purchased overvalued properties in London and Australia in 2013 and 2014.

These properties include Dudley International House, an eight-floor student dormitory at 51 Queen Street, and 333 Exhibition Street in Melbourne, purchased in 2013.

The two properties were acquired for a total of RM72.64 million but are now valued at only RM47.45 million, or 65.3% of the purchase value, according to the PAC.

Another property, Beaumont House in London, was purchased in 2014 for RM78.53 million, but is currently valued at RM74.1 million (94.4% of purchase value).

In its latest report, the PAC emphasised that the new policy must always be adhered to and updated after obtaining approval from the Mara Inc board.

The bipartisan committee further noted that Mara Inc stated all investment approvals follow Mara Corp’s investment policy, and the company will now focus solely on domestic businesses and projects.

“[The] PAC once again emphasises the need for scrutiny, compliance, and improvement of existing guidelines and policies to ensure that the Mara Inc property scandal is not repeated in the future,” the report stated.

Mara Corp is owned by Majlis Amanah Rakyat (Mara), an agency formed to aid, train, and guide Bumiputeras in the areas of business and industry, to centrally manage all of the agency’s strategic and commercial entities. The agency falls under the purview of the Ministry of Rural and Regional Development (KKDW).

Mara Inc FY2024 profit up 59%

On the financial front, the PAC said that Mara Inc’s profit after tax for the financial year 2024 (FY2024) rose 59% to RM18.46 million, from RM11.6 million in the previous year.

The strong performance in FY2024 is expected to result in Mara Inc paying a RM1.6 million dividend to Mara Corp.

Despite this, the PAC reminded Mara Inc to ensure that all debts are paid regularly, in accordance with the established Debt Settlement Plan.

According to Mara Inc’s head of finance Afiq Ashari Suriyadi, the company’s debt was reduced to RM190.6 million by the end of December 2024, after signing a debt settlement agreement with Mara, which included the transfer of one asset as part of the repayment.

However, the report did not specify which asset was transferred.

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