SELANGOR Umno will rent out its headquarters in Shah Alam by year-end to optimise its finances following its 14th general election defeat, said its state chief, Ismail Sabri Yaakob.

The party, which used to govern Malaysia’s richest state until the 2008 general election, has had to rely on Umno’s headquarters for funding.

The Malaysian Anti-Corruption Commission (MACC) had also frozen Selangor Umno’s bank accounts in its investigation into 1Malaysia Development Bhd (1MDB) amid claims that some of its funds had been siphoned off for political activities.

It, however, remains to be seen whether the whole building would be leased or only some of the floors of the nine-storey building.

Ismail, confirming an earlier report by The Malaysian Insight, said the state chapter would hold discussions on the issue before a decision was made.

Selangor Umno deputy chief Mat Nadzari Ahmad Dahlan, meanwhile, said a final decision would be made by the end of this year.

“We will discuss this internally but on principle, we don’t think Selangor Umno needs to occupy the whole building.

“We only need two floors and the building has nine floors. We will rent them out, for sure,” he told The Malaysian Insight.

The Malaysian Insight previously reported that a bank and a hotel had expressed interest in renting out the building.

Mat Nadzari added the party also needed to generate income to continue functioning and that moving operations to a smaller premise in Jalan Ipoh, Kuala Lumpur, was a possibility. 

“We will give ourselves until year-end to optimise our income through our properties, especially this state headquarters.”

He also said it was possible federal government agencies currently occupying the state headquarters may move out once their tenancy agreements ended.

“This will add to our financial pressure. That’s why we are looking at all possibilities to generate income.” – September 23, 2018.