This article first appeared in The Edge Malaysia Weekly on June 14, 2021 - June 20, 2021

A few weeks ago, Majuperak Holdings Bhd, an indirect subsidiary of the Perak government, was optimistic on the renewable energy business.

It had entered into a collaboration agreement with privately owned Cahya Suria Energy Sdn Bhd to develop large-scale solar farms in the state a year ago.

Majuperak’s role is to get the necessary sites and approvals for the solar farms while Cahya Suria Energy is the technical partner that will ensure the successful commissioning of the solar plants.

In a sudden turn of events last week, Majuperak announced that the collaboration with Cahya Suria had been terminated on the grounds that conditions precedent to the deal had not been met.

The condition, principally, is that the parties have to secure land for no less than 100mw capacity on the basis of three acres per mw from the Perak state government or its related companies for a large-scale solar plant within a year.

A key component of any solar farm venture is the availability of large tracts of land, which is why the role of Majuperak in the collaboration is crucial. Considering that Majuperak is 51% owned by a Perak state government agency, it is perplexing why the company and its partner have not been able to meet the condition.

The situation for Majuperak is even more interesting as it is categorised as a company with an insignificant business by Bursa Malaysia and needs to come up with a regularisation plan by March next year.

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