KUALA LUMPUR: Engineering and project management consultant HSS Engineers Bhd is eyeing the vast potential in the Asean region, particularly Indonesia and the Philippines, in addition to India.
In a statement yesterday, HSS said the increased attention to the Asean region is in light of the significant public investments in large-scale transportation infrastructure, private sector projects and overall economic development.
“Besides this, the group is also looking to venture into recurring income and long-term based contracts, with a focus towards the power sector, namely renewable energy sources such as solar, biogas and biomass.
“This is in response to the target set by the Energy, Science, Technology, Environment and Climate Change Ministry to increase the country’s renewable energy levels to 20% by 2030, from 2% currently,” it said.
In line with these endeavours, HSS Engineers has proposed a revision in the utilisation of the remaining RM24mil in initial public offering (IPO) proceeds, with proceeds previously earmarked for expansion into India to now also include the Asean region, and revised upwards to RM6mil from RM5mil previously.
“Furthermore, the group proposed RM12mil of the IPO proceeds to be reallocated from investment into facility management and Building Information Modelling to venture into recurring income and long term-based contracts, with a focus on the power sector,” it said.
Executive vice-chairman Tan Sri Kunasingam V. Sittampalam said HSS Engineers plans to leverage on its engineering consulting expertise to take part in this boom.
“The group has already made inroads into Indonesia with the completion of three projects for PT Adaro Energy Tbk prior, and are looking for further opportunities in the country and actively tendering for infrastructure projects in the Philippines to undertake similar works,” he said.
HSS Engineers foresees a strong increase in demand for renewable energy in Malaysia, where current levels are still far off the government target.
“We will enter the renewable power industry by targeting long-term contracts, which will be able to provide the group with a stable revenue base,” he added. — Bernama