By Debra Chong
KUALA LUMPUR, Nov 3 - The DAP wants the federal government to investigate Silterra Malaysia Sdn Bhd, the country's leading manufacturer of semiconductors and wafer fabricators and a subsidiary of Khazanah Nasional, for its continuing "calamitous" losses over the years.
Its national publicity secretary Tony Pua told reporters in a press conference in Parliament this morning the company which makes computer chips had been suffering significant losses despite the government's injection of RM5.2 billion since 1994.
He noted that Silterra incurred a loss of RM1 billion last year, RM646 million in 2006 and RM864 million in 2005.
"What is most fearful is the fact that Silterra is seeking an additional RM8.5 billion to fund its expansion in operations despite the fact that its shareholder capital has been reduced from RM5.2 billion to only RM798 million in 2006, possibly even lower in 2007," added the MP for Petaling Jaya Utara.
Pua said that Malaysia had fallen behind in manufacturing technology in the past decade and were no longer regionally competitive as Singapore.
He noted that the island nation had managed to convinced a French semi-conductor company, Soitec which produces a sophisticated chip used in popular game consoles such as the latest version of the PlayStation3 and Xbox, to set up a S$700 million manufacturing plant there last year.
"Singapore became the only country in Asia that it trusts well enough to set up its first manufacturing campus outside of France," Pua said.
"Khazanah Nasional and the Finance Minister must explain to Parliament on the extraordinary losses incurred to date, the continued viability of Silterra and if viable, what are the critical measures being put in place to rescue its subsidiary from the intensive care unit.
"Do we have what it takes to compete in this particular sector, or would it be more beneficial for Malaysia to lay emphasis and invest in high-technology sectors which it actually possess competitive advantages?" he queried.
Also at the same press conference, party secretary-general Lim Guan Eng said he hoped Deputy Prime Minister Datuk Seri Najib Razak would speak on this matter in Parliament tomorrow when he is expected to present his economic stabilisation package.
"Look at the size. It's RM5.2 billion going down the drain," the Penang Chief Minister observed.
He asked that Najib who is also the Finance Minister to include measures that will benefit the citizens directly and not just corporations.
He asked that Najib who is also the Finance Minister to include measures that will benefit the citizens directly and not just corporations.
Lim emphatically urged Najib to consider the DAP's 4-pronged economic survival strategy: to give RM6,000 a year to each Malaysian household earning less than that sum a month; to reduce corporate tax rates to 17 per cent; to reduce the current electricity tariff and to adjust fuel prices on a daily basis.
The MP for Bagan also called on Najib to reduce the number of lottery draws conducted by companies such as Magnum, Da Ma Cai and Sports Toto from its present 10 times a week to a maximum of six draws a week to minimise the adverse impact on the family.
"At the moment, 10 is too many," Lim said, and added: "Why let these betting companies earn so much?" -- TMI
1 comment:
More sand down the drain!!
Cut loss and get out now before it becomes another Perwaja or PKFZ blood-sucking bottomless hole!!
These people at Silterra do not know or care the competition they are facing but are happy to spend as long as it's the Taxpayer who is footing the bill.
Ask then to put in their own money and you'll see how fast the rats will desert the sinking ship!!
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