KUALA LUMPUR: HSS Engineers Bhd is looking to expand its presence in the water and power sectors, in line with projected increased government spending in these areas.
The engineering consulting firm has also set its sights on Indonesia and Philippines, in line with its strategy of expanding into Asean countries.
HSS executive vice chairman Tan Sri Kuna Sittampalam (pic) said the group’s growth strategies for the year ahead were to expand in the water, wastewater, power and renewable energy sectors, as well as regional expansion.
The group’s order book currently stands at RM962.5mil.
He said the group, which was recently appointed as an independent consulting engineer (ICE) for the Klang Valley MRT Line 3 (MRT3) project, expects government spending to move from its current focus on public transport infrastructure towards water and power-related infrastructure.
“It is where the government infrastructure is heading.
“We think the focus will move from public transport, and a lot more attention will be paid towards water.
“Another wave of spending is also expected in the power sector.
“In the future, our mix of work may not be so much on transport – we will take the opportunities as they come,” he said.
The two key aspects of water-related works, he said, would be non-revenue water and wastewater management.
“It has been reported that about 45km of old pipes need to be replaced, with an anticipated spending of about RM80bil,” he told reporters after the group’s AGM.
In December 2017, the portion of water-related works in HSS’ order book accounted for only 3%.
The group recently completed its acquisition of SMHB Engineering Sdn Bhd, an engineering consultancy company, which has water-related works representing 43% of its order book.
“Five years ago, the big spending was on highways.
“Now it is public transport, and spending on water is growing.
“We have the required expertise across the board of infrastructure works,” he added.
On its strategy of regional expansion, CEO Datuk B Nitchiananthan said the company is looking at Indonesia and the Philippines.
The group has already secured contracts with Indonesian energy group Adaro Energy, and recently completed a feasibility study on a coal collection and distribution network for the group.
“We are now in negotiations for the next stage of work,” he said.
In Philippines, the group has tendered for road projects and is confident of securing projects with a joint venture partner.
As for the power sector, he said the company was focused on the Malaysian market at the moment.
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