KUALA LUMPUR: UBG Bhd stands to benefit from a plethora of potential jobs in Malaysia and the Middle East once it buys a controlling interest in Putrajaya Perdana Bhd and Loh & Loh Corp Bhd.
“The companies we propose to acquire fit six key categories: good professional management, healthy cash reserve with low negligible debt, strong cash-flows, leaders in their respective specialisation and niche fields, strategic industries enabling MESEA (Middle East South-East Asia) cross-border work, and synergies for overall MESEA strategy,” said UBG deputy chairman Syed Ahmad Alwee Alsree in a statement.
From the entry of new shareholders arising from the proposed acquisitions, UBG would be able to tap more development projects in not only Malaysia but also Abu Dhabi and Kuwait where construction opportunities amount to US$280bil and US$300bil respectively.
“The rationale behind this whole scheme is that we have identified UBG’s focus in terms of opportunities and key growth drivers moving forward such as construction in Iskandar Development Region (IDR), Sarawak (Economic) Corridor, renewable energy and Middle East initiatives such as construction, infrastructure and water infrastructure,” said a source close to UBG.
Putrajaya Perdana has identified RM17.4bil worth of construction projects in Malaysia.
Its current projects in Malaysia are said to be worth RM1.1bil and there is an estimated RM15.2bil worth of work from the IDR Node 1 under the Mubadala consortium.
The source said the tax exempt status of Node 1 would also help boost the bottomline of Putrajaya Perdana as it begins construction jobs there.
In Sarawak, the company could see more jobs from the Sarawak Economic Corridor. One avenue is from the huge hydro potential where more than 20 gigawatts of electricity could be generated.
For the medium to long term, Putrajaya Perdana is said to actively pursuing RM16.8bil worth of jobs in Abu Dhabi and Kuwait, which include a wide range of opportunities at the Zero Energy City and construction jobs for the armed forces in Abu Dhabi.
Another avenue is the construction of energy efficient buildings.
For Loh & Loh, the company is eyeing water-related projects. The source said one possibility would be the construction of the dam and pumping station from the Pahang side for the Pahang-Selangor interstate raw water transfer project.
In terms of property development, Loh & Loh has the River View Kemensah, a project in Selayang and the Pasarakyat land.
It is also looking to branch off into environmental projects as it aims to leverage on Water Engineering Technology Sdn Bhd (WET), a company under the group’s umbrella.
WET, a provider of wastewater solutions, has completed projects such as the sewerage pumping stations in Putrajaya and the Georgetown priority sewerage scheme.