The Selangor State Development Corporation (PKNS) was established on 1 August 1964 under the Selangor State Development Corporation Enactment (1964) as a statutory body and development agency for the state of Selangor.
Its establishment was intended to uphold the country’s independence through just economic distribution and socio-economic growth that are guided by government policies to create stability, harmony and social justice, specifically in the state of Selangor. This aspiration is fulfilled through the development of new growth centres, exploration of vibrant and sustainable residential areas, and development of industrial and business centres as well as various investment activities.
From 1952 when it started as the Petaling Jaya Development Corporation, to now a conglomerate, PKNS is involved in several business sectors including power generation and healthcare. These include an upcoming 1,200 MW power plant in Pulau Indah, 2 waste-to-energy plants, solar power plant, and a hospital in Rawang which will be commissioned by the end of this year.
Through all its evolution, property development has been at the core of PKNS. One of its strengths has been building affordable homes, with a goal of having 10,000 affordable Rumah Selangorku homes by 2030.
Group CEO of PKNS, Dato’ Mahmud Abbas says that Selangor is well-positioned to benefit from the three mega-trends highlighted by Minister of Investment, Trade and Industry YB Tengku Datuk Zafrul during the Selangor International Business Conference. These are deglobalisation, the race to net-zero and digital transformation.
As such, PKNS has embarked on a number of projects to complement the efforts of the Selangor and Federal governments. For instance, the Shah Alam Sentral Project will, among other things, be the new hub to rival Kuala Lumpur’s Golden Triangle. It will spur the services sector through offering a conducive environment for start-ups and venture capital firms. In addition, the city will be partially powered by 500 MW of green energy, making it one of the first in the world to utilise green energy to such an extent and affirming PKNS’s commitment to environmental, social and governance (ESG) goals.
PKNS drives thought leadership in property development
It is vital for PKNS to meet the ever-evolving needs of property owners and investors, and for the Selangor government to provide the necessary assistance, in order for it to remain competitive.
This includes ensuring the availability of impactful features that will raise the value of their properties and increase take-up rates. For instance, the rising cost of private transportation, coupled with greater awareness of the carbon footprint that vehicles have on the environment, has made easy access to mass transit options a key selling point.
Image from MRT Corp
Given that the Selangor and Malaysia governments aim to achieve Net Zero emissions by 2050, it is important for developments to comply with ESG best practices. Offering green or sustainable energy options such as solar power and biogas has become a must, not just in commercial and industrial projects but also for residences as well.
Through offering high-end, high-value products, PKNS will not only be able to continue on its mission of uplifting Selangor’s economy but also continue with its CSR commitment to build affordable homes in Selangor.
It was with this in mind that “Future-Proofing Selangor’s Real Estate Opportunities” was created by PKNS. This Forum brought together industry and thought leaders to share their views and strategies on how to drive sustainable growth and development in Selangor’s real estate sector.
The panel of speakers comprised former Senior Selangor State Exco Member Dato’ Teng Chang Khim, Berjaya Infrastructure Chairman and Adviser to the Shah Alam Sentral Project Dato’ Richard Curtis, Sime Darby Property Group Managing Director Dato’ Seri Azmir Merican, L&L Holdings Founder and Director Dato’ Lim Kiu Hock, and Bank Muamalat Malaysia Chief Economist Dr Mohd Afzanizam Abdul Rashid. The session was moderated by The IBR Asia Group CEO Dato’ Beatrice Nirmala
Some takebacks from the panellists:
“For its upcoming Green Industrial Park Initiative in Kota Puteri, PKNS must not only position themselves as an industrial park developer but also a manager and service provider. Therefore, the organisation should make full use of the vast experience acquired in the past 60 years by providing all the comprehensive services to investors in the green sector.
Managing the maintenance, security, risk management, the centralised warehousing, and providing business solutions including financial solutions to the investors in the Park. In doing so, PKNS can become a prominent industrial park service provider, not only in Selangor or Malaysia, but also in the wider ASEAN region.” – Dato’ Teng Chang Khim
“Rising land costs are a challenge. One strategy to overcome that is to have recurring income, namely how we can maximise and have returns that will last a long time. Purpose-built student housing and other catalytic projects such as healthcare and education are areas of opportunity for PKNS. Sime Darby Property sees avenues of possible cooperation with PKNS for branding the RM300,000 – RM500,000 home market segment.” – Dato’ Seri Azmir Merican
“Starter homes are mainly for single or very small families”. As such, it is important for the township to have the right amenities and facilities. These include good security such as CCTV, easy access to public transport such as MRTs and LRTs, as well as walkways that allow easy foot traffic.” – Dato’ Lim Kiu Hock
Image from the Housing Development Board of Singapore
“PKNS is not just a property developer but also a community developer with a commitment to focus, not only on the needs of the customer but also the community at large.
Shah Alam Sentral’s unique selling point is being an integrated community and lifestyle hub, incorporating the typical things you expect in a neighbourhood that reflects the needs of the area”. – Dato’ Richard Curtis
“There are certain segments in the economy that are doing well, and this is helping enhance upward social mobility among people. These should be the target market for developers such as PKNS as property is still regarded as a viable investment.” – Dr Mohd Afzanizam Abdul Rashid
The Future-Proofing Selangor’s Real Estate Opportunities forum is the first in the series of a Thought Leadership Forums by PKNS aimed at fostering collaboration between public and private sector leaders to uplift Selangor’s socio-economic landscape in line with the goals of the First Selangor Plan (RS1).
