Malaysia Heavy Industries

VIEWPOINT The Heavy Industries of Malaysia Berhad (HICOM) was clearly at the brink of the downward handbuild of its business endeavors. Tan Sri Nasruddin, HICOMs Chairman of the Board renowned on the guilds annual report for the form ended 31 show 1987 that HICOMs lackadaisical cognitive operation was severely affected by the prevailing depressed economic condition. For one, the s misfortunatedown in the construction industry plunged HICOMs payoff of steel billets and cement. On another undertaking, the passenger car mart was expected to hit a short-lived trajectory which curbed the companys volume of intersection below the desired level. Furthermore, the production of motorcycle engines was also reduced by a of import margin. Despite the overall operating inefficiencies and economic turbulence at hand, HICOMs property development companies had performed relatively fair which enter sales more than half of its industrial lots, 70% of low cost flats residential houses and 80% of medium cost houses. simply these were not sufficient for HICOM to recover the losses it had incurred since the preceding twelvemonth as they were not doing a great job collectively.

On its Profits and Loss Accounts for the Year Ended 31 March 1987, HICOM recorded a net loss of M$ 117,753 as a group (all business interests) and had only a hapless M$ 18,150 income as a company. Added to the losses of HICOM, the steep preference by 80% of Yen had also caused the company commodious exchange losses coupled with the write-off of deferred project wasting disease amounting to M$2.04 incurred in the prior years which were subsequently say no longer feasible for implementation. All these adverse impart of the group was mainly due to the losses suffered by HICOMs subsidiaries Perwaja Trengganu Sdn Bhd (PTSB), PROTON and Kedah Cement Sdn Bhd (KCSB), where it incurred losses after tax of M$ 157.66, M$ 39.445, and M$ 68.61 respectively. Prime Minister Mahathir