Perbadanan Kemajuan Negeri Perak (PKNPk), through its wholly-owned subsidiary Perak Equity Sdn Bhd, has entered into a joint venture shareholders’ agreement (JVSA) with Advancecon Holdings Berhad spearheaded the development of Centralised Labour Quarters (CLQs) in Perak.
The partnership delineates the roles and responsibilities of both entities in the development, construction, operation, management, and maintenance of CLQs on strategically located lands within the state. PKNPk, with its strategic vision and planning, and Advancecon, with its technical, sales, and marketing expertise, are well-equipped to execute these JV projects, which focus on upgrading and constructing new CLQ facilities.
This initiative aims to meet the increasing demands for high-quality and well-maintained workers’ accommodations from industrial manufacturers in Perak.
Under the terms of the agreement, Perak Equity will hold a 30% stake in the JV company, CLQ Silvervalley Sdn Bhd, while Advancecon’s subsidiary, Advancecon Ventures Sdn Bhd, will hold the remaining 70%.
This JV builds on the successful collaboration between PKNPk and Advancecon that began in 2022. Last year, Advancecon completed refurbishing two accommodation blocks at Asrama Murni, Jelapang in Perak, marking the pilot phase of this CLQ project collaboration.
The fully occupied block now serves the workforce of a prominent multinational corporation, a testament to the success of our partnership.
The initial phase of the collaboration aims to accommodate 12,000 workers over the next five years, setting the stage for more extensive CLQ developments to boost the state’s industrial infrastructure.
Datuk Redza Rafiq Abdul Razak, the Chief Executive of PKNPk, stated, “The CLQ project will be built and managed in compliance with the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) for the well-being of workers. It offers high standards and value-added services as more international and domestic companies support it with more tenants for future phases. This CLQ pilot project is in line with the Investor Friendly Programmes set out in the Perak Sejahtera 2030 Plan, which puts emphasis on five basic principles to drive sustainable, inclusive, and dynamic socio-economic development. The project will also be implemented in the Kerian industrial estate, Kamunting industrial park, Silver Valley Technology Park, Kinta District industrial area, and the Bemban and Seri Iskandar industrial parks. The implementation of this CLQ project signifies the state government’s commitment to supporting the rapid growth of industrial development in the state.
“Projects led by a state agency like PKNPk, such as the CLQ, often achieve substantial cost efficiencies. This financial advantage not only enhances the overall viability of such initiatives but also serves as a compelling proposition for investors, contributing positively to the economic growth and employment landscape in Perak”, said Redza.
Dato’ Phum Ang Kia, Group Chief Executive Officer of Advancecon Holdings Berhad, said, “This JV agreement marks a significant milestone in our partnership with PKNPk to deliver high-quality workers’ accommodation that meets the increasing needs of industries investing in Perak. We are dedicated to leveraging our expertise to support the state’s economic growth and ESG agenda and collaborate on more CLQ projects in the future,”
Additionally, Advancecon Holdings Berhad had recently entered into another Joint Development Agreement (JDA) with Perak Corporation Berhad (Perak Corp), a subsidiary of PKNPk Group, earlier this year to co-develop the Silver Valley Technology Park in Kanthan. With an estimated Gross Development Value of RM1.0 billion, this project is expected to attract RM14 billion in domestic and foreign direct investments over the next five to ten years.
Datuk Redza added, “Our vision for Perak involves not only enhancing its economic landscape but also significantly uplifting the living standards of its people. Through strategic infrastructure and development projects like these, we aim to position Perak as a pivotal economic hub in Malaysia, driving growth that benefits everyone in the state.”
Source – Perbadanan Kemajuan Negeri Perak (PKNPk)