PETALING JAYA: UEM EDGENTA BHD is eyeing a new growth area for the company by targeting projects from the recently announced 11th Malaysia Plan (11MP).
The total asset management company said key infrastructure projects from the 11MP would need regular maintenance and service.
“We know these projects will be the key economic drivers for the next five years.
“We are optimistic on this front as they make up more than half of the projects under the plan,” UEM Edgenta managing director and chief executive officer Azmir Merican said after the company’s AGM yesterday.
“If you look at our track record, I believe we are in a good position to undertake all these, more so especially after the three-way merger between Faber Group Bhd, Opus Group Bhd and Projek Penyelenggaraan Lebuhraya Bhd (Propel),” he added.
The merged company secured several major local and overseas contracts worth more than RM4.72bil in 2014 and 2015.
According to its press release, these contracts include the RM1.03bil asset management services for a women and children’s hospital over a 27-year period, six New Zealand Transport Authority Highway maintenance and operations contracts worth more than NZ$35mil (RM92.32mil) in fees over the next seven years, a runway upgrade for KLIA and the recently announced RM3.07bil 10-year new concession agreement for hospital support services.
The company also secured the North South Expressway road upgrade of Kampung Sungai Serai to Rawang Highway Exit, infrastructure works related to the Pengerang Integrated Complex in Johor and a five-year NZ$20mil (RM52.81mil) project by the Royal Commission for Jubail and Yanbu.
Azmir also said the merged entity was well positioned to expand the scope of its healthcare services to include more offerings that are demanded by the sector.
“For industrial services, we are working to expand into asset maintenance, plant operations improvements, turnaround services and the oil & gas sector,” he said.
The company will be allocating RM120mil for capital expenditure this financial year 2015 (ending Dec 31) mainly for the upgrade of its machinery.
UEM Edgenta will also be streamlining some of its operations to boost profit margins.
“We are looking at restructuring some our key cost elements. It is one of the key areas that we will focus on for the next one to two years,” Azmir said.
The company derived 53% of its FY14 revenue from its Malaysian operations, followed by New Zealand (25%), Canada (12%), Australia (6%) and the United Kingdom (4%).