PENANG: Penang Development Corporation has trimmed down its workforce by about one third under its restructuring exercise last year.

Chief Minister Tan Sri Dr Koh Tsu Koon said out of 335 employees at the parent body, 123 were offered transfer letters to PDC-owned subsidiaries in December last year to trim down the workforce.

Only 35 employees accepted the transfer while the rest resigned,Dr Koh, who is also PDC chairman, told reporters at PDC's annual Chinese New Year open house.

There were now 212 employees stationed at the parent body, he said.

He said that under the restructuring, employees transferred were assured of employment until retirement, a benefit never offered before under other similar exercises.

Most employees had hit the maximum salary scale many years ago and the restructuring has created more positions with a higher scale,he said.

He said the restructuring was necessary as PDC role in developing and selling industrial land had diminished and fewer employees were needed.

PDC's bottom line is not affected as we are not dependent on land sale,?he said.

Rosli Jaafar who was the previous deputy general manager, has been appointed as the new acting general manager after the restructuring.

On a related matter, Dr Koh confirmed that the PDC board had approved the management buyout (MBO) of its subsidiary, PenEvents Sdn Bhd, by its former chief executive officer Ong Ban Seang.

He declined to reveal details about the buyout, saying that it was improper to do so until it was accepted by the buyer.