Yes.

Firstly, by restructuring the MOF soft loan that will improve PKA’s cash flow position and hence avoid potential default by 2012. At 4% rate, the interest on the soft loan from MOF will amount to between RM2.506 billion (contract term to 2036) and RM7.506 billion (extended term to 2051).

Interest savings can be realized through a reduction in interest rate or by introducing interest-free period until PKFZ reaches full tenancy (expected in 2018). The quantum of savings depends on the size of the rate reduction or duration of the interest-free period.

Secondly, management of PKA is able to turnaround the project, making it viable and hence improving its cashflow position. Viability of PKFZ in future depends on marketing, improvement of economic climate, domestic and regional competition and multi-agency approval environment.

The management team at PKFZ will be strengthened for this purpose.