Selangor State Development
What we found
Ten Setia Alam house buyers sued Sazean Development and PKNS in Shah Alam over late vacant possession of their Anjung Sari homes. The buyers alleged that the developer blamed PKNS for delaying a required approval, and that PKNS failed to give the project to a reputable, financially capable company. These are the buyers' allegations.
The evidence
Delivery
NegativeThe Auditor General's Report on Selangor State Agencies, Year 2020 Series 1, found weaknesses in how PKNS ran its residential projects: housing built through appointed contractors performed poorly because projects finished later than originally scheduled, and property sales missed their cash-flow targets.
Regulatory and legal
House buyers at Anjung Sari in Bandar Setia Alam, a project by Sazean Development Sdn Bhd on land owned by PKNS, sued both companies over late vacant possession, alleging that PKNS failed to ensure the project went to a company able to complete it on schedule; the developer had told buyers the delay was due to PKNS's late approval.
2 more findings
Ten Setia Alam house buyers sued a housing developer and PKNS in Shah Alam.
In answer to the National Audit Department findings, the PKNS CEO said the corporation had set up a special team to monitor contractors, consultants and privatisation companies more closely on site, and had moved to a 'sell and build' model.
Corporate continuity
PKNS held about RM500 million of unsold property inventory, down from roughly RM1 billion in 4Q2021, plus unsold shop offices and factories.
2 more findings
Perbadanan Kemajuan Negeri Selangor (PKNS) was established on 1 August 1964 under the Selangor State Development Corporation Enactment 1964 as a statutory body and state-level development agency.
RAM Ratings affirmed PKNS's AA1/Stable and P1 ratings, citing a 'very high' likelihood of state support. It also noted standalone pre-tax losses in FY2024 and 1H FY2025, mainly from the energy segment.
Independent recognition
PositivePKNS won the Cornerstone Award for Best Landed Development, for Puteri Ariana in Kota Puteri, and a Family Friendly Award for Ixora at Antara Gapi at the StarProperty Awards 2024.