MRCB eyes more construction projects

The land is located within the locality of Jalan Putra, Kuala Lumpur, and is approximately four kilometres to the north of KL city centre. Of the three parcels of land, only one parcel measuring 17,988.92 sq m has a freehold tenure

KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) is tendering RM6bil worth of construction jobs that are related to civil engineering projects, to beef up its construction segment.

MRCB executive director Mohd Imran Mohd Salim said the Bandar Malaysia integrated transportation terminal project was not included in its current tender book.

“Projects that we are tendering worth more than RM70mil per project and among them are rail-related, flood mitigation and civil-engineering related,” he told reporters after the company’s shareholder meeting on Tuesday.

It has been reported that MRCB is also tendering for projects such as 1,000 tonne-per-day incinerator project in Taman Beringin, Kepong, and the redevelopment of the KL Putra World Trade Centre (KL PWTC).

MRCB has a current construction orderbook of some RM7bil to sustain the company over the next five years.

Imran pointed out that the plan to spin off MRCB’s construction arm into a new listed entity is not the group main focus for now.

“Listing our construction arm into a separate entity is one of the option. But, it is not something that we are going to do now,” he said.

“We are working on strengthening our construction arm by improving its margins and orderbook,” he added.

Currently, the largest contributor to MRCB’s operating profit is its property development and investment segment, contributing some 83% to operating profit. This is followed by the infrastructure and environment segments, which contribute 11% and 2%, respectively.

When asked on the replenishment of MRCB’s construction orderbook, Imran said that the company was targeting to maintain its annual orderbook size between RM5bil and RM6bil.  

On the Bandar Malaysia project, MRCB announced on Jan 27 that it had entered into a non-binding memorandum of understanding with Wondrous Vista Development Sdn Bhd and Bandar Malaysia Sdn Bhd (now TRX City Sdn Bhd) to collaborate to develop the integrated transportation hub terminal at Bandar Malaysia.