Monday 22 Jul 2024
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KUALA LUMPUR (March 6): The Ministry of Housing and Local Government's PR1MA Corporation Malaysia (PR1MA) may struggle to repay the second tranche of its sukuk, amounting to some RM1.75 billion, maturing in October this year.

According to the Auditor General's Report Year 2022, PR1MA has an Islamic medium term note loan repayment, with balances which amounted to RM3.792 billion (2021: RM4.542 billion).

“PR1MA needs to pay the debts by the year 2027, including Sukuk Tranche 2 amounting to RM1.750 billion, which will mature in October 2024. 

Based on cash and cash equivalent amounting to RM428 million as at Dec 31, 2022, PR1MA "will encounter difficulties to repay the Sukuk Tranche 2,” said the report.

The report noted that PR1MA incurred a net loss amounting to RM257 million and recorded liabilities amounting to RM5.746 billion in In 2022.

The audit recommends PR1MA to re-evaluate their development strategy of residential and commercial projects based on current needs and market conditions, to ensure marketability of completed residential and commercial units to be able to achieve PR1MA’s project development objectives.

The audit also suggested for PR1MA to ensure that cash projections from the sales of residential and commercial units can be achieved to fund operational activities, besides settling the Sukuk Tranche 2 amount.

Edited BySurin Murugiah
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