SHAH ALAM, Nov 17 — Selangor has generated significant revenue through dividends from its subsidiaries, investments, and water charges, with more expected in the coming years from new sources like the Zero Discharge Policy (ZDP) and dark fibre initiatives.
Addressing the Selangor State Legislative Assembly, Menteri Besar Dato’ Seri Amirudin Shari noted that the state government has collected around RM40 million annually since 2022 from dividends alone.
He said the dividends came from its subsidiaries, channelled through the Selangor State-Owned Companies, Statutory Bodies and Government Agencies Contribution Trust Fund (Tasasba).
He pointed out that Selangor’s water abstraction charges — a fee imposed for extracting raw water from natural sources — has earned the government around RM35 million, against a RM70 million target this year.
“The ZDP is still being enacted, but once it’s implemented, we expect it to generate up to RM100 million, with an estimated RM50 million next year, directly benefiting the state,” he said during the question-and-answer session here today.
Amirudin said this in response to Hulu Klang assemblyman Datuk Seri Mohamed Azmin Ali on how the state government has diversified its revenue sources.
The menteri besar also highlighted returns on investments, including from mini hydro projects that generated RM300,000 last year and RM500,000 this year from a RM10 million loan, adding that the Pulau Indah Power Plant (PIPP) generated RM20 million from a RM150 million loan, with a dividend rate of 13.1 per cent.
He also said the state will introduce new initiatives next year, including the Dark Fibre Masterplan, which will support data centres and internet connectivity.
Other revenue sources, he said, include the Selangor Advance investment programme, which invested around RM275.38 million during the Covid-19 pandemic to assist contractors.
To date, the initiative has returned RM64 million — an average of 7 to 8 per cent higher than traditional deposits or certain investment funds.
On concerns raised by Azmin over the ability of Menteri Besar Selangor (Incorporated), or MBI, to sustain dividend payments given its sizeable financial commitments, Amirudin said early contributions channelled through Tasasba were preliminary steps before MBI and its subsidiaries could generate returns through structured investments, as seen with Pulau Indah and other projects.
