Latest news with #RM6bil
The Star
07-07-2025
- Business
- The Star
Capturing land windfalls for the people in Penang
Closed: Aerial view of the Penang Turf Club. — Filepic/The Star AS Penang faces unprecedented transformations in land use and real estate, the proposed sale of the Penang Turf Club (PTC) land underscores a deeper issue: how should extraordinary land value gains – especially from land originally granted for public or recreational use – be recaptured for public benefit? According to a report in The Star on June 10, 146 ordinary members of the PTC voted in favour of selling the club's 81ha site in George Town, paving the way for a transaction that could yield up to RM6bil once the land is rezoned for commercial use ('Penang Turf Club members vote for land sale during EGM'; online at
The Star
24-06-2025
- Business
- The Star
Third fixed link still on hold but work on LRT bridge to start
GEORGE TOWN: While work on one new crossing between Penang's island and mainland is about to start, discussions for yet another crossing has been going on for years. In fact, the idea of a third fixed link between Penang Island and the mainland was first proposed in the early 2010s as part of the Penang Transport Master Plan. It was originally conceived as an undersea tunnel between Gurney Drive and Bagan Ajam, a 7km tunnel to run 11m beneath the seabed, costing over RM6bil. It was to be funded partly through a land swap involving reclaimed parcels along the Gurney Drive coastline. The project was awarded to Consortium Zenith Construction Sdn Bhd, a special purpose vehicle appointed to undertake the tunnel's feasibility studies and construction. However, the plan never received approval due to cost concerns, political transitions and questions about its financing model. In 2023, the state government signalled a shift, favouring a conventional bridge instead. However, that has run into concerns by Penang Port Sdn Bhd, which indicated that the third bridge would at least need to have 100m of vertical clearance to allow large cruise and cargo vessels through. The main span, without piers or pillars, would need to stretch as far as 2km to prevent interference with shipping lanes. While that plans remains on the drawing board, another more recent idea is bearing fruit – the light rail transit (LRT) bridge under the Federal Government-funded Mutiara Line. The LRT system will link Komtar with the upcoming Silicon Island off the island's southern coast and is expected to serve key locations including SPICE Arena, the airport and the Bayan Lepas industrial zones. The LRT bridge includes a crossing to Butterworth to connect an LRT station in Macallum Street Ghaut with Penang Sentral. It is learnt that the LRT bridge will be 4km long and may include pedestrian and cycling paths as part of a broader multi-modal design. PPSB has specified a vertical clearance of 60m to 62m, with a required mid-channel span of at least 600m to allow ship navigation. On the mainland, the bridge is expected to reach land near the Crowne Plaza Hotel along Jalan Bagan Luar, about 1km north of Penang Sentral. Early-stage construction work on several LRT station sites on the island has begun.
The Star
09-06-2025
- Business
- The Star
Sarawak funding powers Quality Concrete's showing
KUCHING: The Sarawak government's big funding for water infrastructure projects has greatly benefitted concrete product manufacturer Quality Concrete Holdings Bhd , particularly in the rising demand for the company's high-density polyethylene (HDPE) pipes. In the 12-month period to Jan 31, 2025 (FY25), Quality Concrete's sales of own manufactured HDPE and M-PVC pipes surged by an impressive 126.8% to RM19.6mil from RM8.65mil a year ago. 'This growth was fuelled by increasing demand stemming from Sarawak's comprehensive water infrastructure enhancement plans, which include a RM1.1bil pipe replacement initiative and RM6bil rural treated water supply programme spanning the next five years,' said group executive chairman Tiang Ching Kok. He said the HDPE pipes were widely utilised for water reticulation and as protective channels for underground utilities, such as telecommunication and electrical cabling. In addition, Quality Concrete also manufactures multi-layer unplasticised polyvinyl chloride (UPVC) pipes, engineered with high-impact resistance to meet the demanding requirements of sewerage networks and water supply systems. These products, essential components in municipal infrastructure, play a pivotal role in water distribution, flood mitigation and utility service provision in both urban and rural developments. Tiang said the company's construction arm has expanded its presence in the water infrastructure sector by submitting proposals and forming strategic partnerships with leading technology providers to design, build and operate water treatment plants, particularly in underserved areas in Sarawak. 'These efforts signal our readiness to tap into high-impact, government-driven opportunities aligned with national priorities,' he said in the company's annual report. He said Quality Concrete continues to explore new business models and strategic collaborations within the water infrastructure sector. Through ongoing engagements with established technology providers, the company aims to diversify its revenue base by expanding into municipal and rural water treatment solutions. This includes the deployment of modular systems, containerised units and hybrid treatment models tailored to underserved communities. Tiang said in 1Q26, the company's construction division secured three new contracts worth RM295mil, with three other major projects ongoing. 'The division is well positioned to capitalise on national infrastructure priorities, including the Sarawak-Sabah Link Road, Jendela broadband expansion and various flood mitigation and water infrastructure upgrades. 'Furthermore, potential involvement in strategic infrastructure projects, such as Kuching's proposed deepsea port and new airport, present opportunities for long-term order book growth,' he added. As a core pillar of the company's operations, the manufacturing segment has ready-mixed concrete (RMC) plants located in Kuching, Sibu, Mukah and Batang Igan. The RMC plants produce custom-grade ready-mixed concrete tailored to meet diverse project specifications, as well as precast concrete piles integral to foundation works to cater for both government-driven infrastructure development and the private sector projects such as residential building projects. As part of its strategic expansion,the group has recently ventured into the production of hot mix asphalt to support ongoing and future road construction projects. 'This new capability includes the manufacturing of high-quality hot mix asphalt for public roads and infrastructure, enabling seamless collaboration with the company's road maintenance division for a more integrated and efficient project delivery. 'The move also strengthens vertical integration within the company, enhancing operational synergy and providing greater control over key inputs for its road development and rehabilitation contracts,' said Tiang, pointing out that asphalt prices have gone up by about 15% since 2020. In 2020, Quality Concrete was awarded a 10-year concession to maintain state roads in Sri Aman and Betong divisions in southern Sarawak. 'Government plans to expand concession scopes could lead to recurring income while the group's solid performance and operational track record position it well for the 2028 concession renewal, and future bids for federal road maintenance projects, including sections of the Pan Borneo Highway,' Tiang said. In addition to its core business of manufacturing (also involving production of sawn timber and engineered wood products) and construction, Quality Concrete also has a property development arm with a landbank of 81ha located in Kuching and Johor Baru. Tiang said once property market conditions stabilise, the company plans to unlock value of the landbank by undertaking mid-income housing and mixed-use township projects, particularly in the fringe area's Kuching city's fringe areas. Going forward, Tiang said a key strategic priority for Quality Concrete is to intensify efforts to secure higher-margin infrastructure and concession-based projects, particularly in sectors such as road maintenance, water treatment infrastructure and essential public works that promise long-term income stability and robust returns. 'The company is also actively evaluating opportunities under public-private partnership frameworks, with a growing emphasis on playing an integrated role in the project value chain through potential adoption of design, build, operate and transfer or design, build and operate models, where appropriate,' he added.
The Star
03-06-2025
- Business
- The Star
IJM continues to target more job wins for FY26
PETALING JAYA: IJM Corp Bhd is aiming for a higher project replenishment target for its financial year 2026 (FY26) despite missing its target again in its FY25 ended March 31, analysts say. UOB Kay Hian Research (UOBKH Research) said that the construction and property group guided for a higher replenishment range of between RM6bil and 7bil in FY26 after the release of its FY25 results, which beat expectations. A decent chunk of the replenishments will be from the delayed New Pantai Expressway (NPE) extension worth RM1.4bil and government housing project in Nusantara, Indonesia, estimated at RM1bil. Other key replenishment opportunities include the Penang LRT, the Penang Airport and road projects in Sabah and Sarawak. For FY25, IJM reported a core net profit of RM526.9mil, up 55.5% year-on-year following recognition of major construction milestones that saw its construction-segment earnings picking up significantly during 4Q25. Otherwise, UOBHK Research said that property sales had softened due to delayed launches, while infrastructure earnings declined due to lower throughput for tolls and ports. The construction segment's order book came in at RM11.1bil, comprising RM6.6bil from local jobs and RM4.5bil from foreign jobs in Singapore and Britain. Total job replenishments for the division stood at RM2.7bil. Meanwhile, Hong Leong Investment Bank Research (HLIB Research) said the recent approval for the long-awaited RM1.4bil NPE extension project will lift the group's order book. 'With this win, IJM has hit 40% of our FY26 contract-win assumption and we anticipate more wins this year mainly from data centres and the Nusantara project in Indonesia. 'On the balance-sheet front, IJM's low net gearing of 0.28 times provides ample space to fund the projects,' HLIB Research said. According to the research house, the NPE extension project will be fully funded by the company with no financial commitment from the government. The 15km extension will be fully elevated, linking three major highways – IJM's existing NPE and Besraya highways – with the upcoming LIKE Expressway. Construction will begin in the third quarter of this year with completion slated in 2029. Once operational, the NPE extension is poised to add to IJM's recurring income stream, said HLIB Research. As for the group's property division, UOBKH Research said total property sales came in at RM1.5bil in FY25 as delayed launches back in 3Q25 resulted in sales coming in at the lower end of IJM's target. Unbilled sales stood at RM1.54bil and going forward, IJM is targeting RM2bil in sales in FY26 in line with its previous guidance prior to the delays. As for the group's British ventures, contributions from its newly acquired JRL Group Holdings Ltd could begin as early as FY26. 'The current construction churn rate for the JRL Group is around £400mil with net margins of between 2% and 3%. 'While JRL is currently loss-making, this is largely due to balance-sheet issues causing project delays, which should be solved via a capital injection,' UOBKH Research said. The research house has a 'buy' rating on the stock with a higher target price of RM3.15 from RM3 before.
The Star
21-05-2025
- Business
- The Star
Shah Alam project bolsters MRCB earnings
PETALING JAYA: The RM2.94bil Shah Alam Sports Complex project awarded to Malaysian Resources Corp Bhd (MRCB) by Menteri Besar Selangor Inc solidifies the company's engineering and construction expertise in large-scale public infrastructure, according to MIDF Research. It said this project builds on MRCB's track record from the successful delivery of the KL Sports City redevelopment in 2017. 'This latest undertaking is expected to enhance MRCB's technical standing, especially in public-sector and sports-related infrastructure,' the research house said, noting that this would be the company's fourth major contract in 2025. It added that projects won by MRCB this year would bolster the medium-term earnings visibility and reinforces confidence in the company's ability to consistently replenish its order book, where the construction order book stood at RM26.1bil as at end-December 2024. For this year, the order book has grown to RM6bil. As the contract sum for the project would be settled via a combination of cash and land, MIDF Research expects that the land swap, to be capped at RM200mil and subject to mutually agreed valuation, could present future upside in replenishing the company's property development inventory and support earnings. MRCB's landbank gross development value (GDV) stood at RM37.8bil as at end-December 2024, with additional parcels such as land in Cyberjaya still pending GDV confirmation. MIDF Research has maintained a 'buy' recommendation on the stock and maintained target price for the shares at 56 sen. It has kept its earnings forecast unchanged pending the release of the company's first quarter ended March 31, 2025 results to be released on May 30. It noted that together with the projects awarded this year and the reinstatement of five LRT stations, the latest project underscores the recommendation.
