Pintaras says no planned capex for first half of FY16

SHAH ALAM: Pintaras Jaya Bhd will not spend on capital expenditure in the first half of its financial year 2016 due to the continued subdued outlook for the piling industry.

"Excess capacity in the industry has led to a reduction in margins. If things pick up in the second half we will resume capex again," it's managing director Chiu Hong Keong said at a press conference earlier Tuesday.

He said that spending on capex now would mean higher expenditure as most of its machinery was imported from Europe and Japan.

"We are thankful we have spent earlier," he said.

He added while outlook for the industry remains subdued presently, he expects it to pick up again in FY17 once the MRT 2 and LRT3 contracts are given out.