KUALA LUMPUR: Optimistic over its prospects, HSS Engineers Bhd is expecting more project rollouts in the second half of 2019
In a statement today, the group said it would allocate a portion of the unutilised proceeds from its initial public offering (IPO) to an expansion into infrastructure projects in Indonesia and the Philippines.
Unutilised proceeds that were earmarked for expansion into India have been increased to RM6mil from RM5mil previously to include the Asean region, it said.
"We will continue to leverage on our expertise and track record to tender for projects in the railway, road and water sectors, as well as deliver on our order book of more than RM500mil," said executive vice chairman Tan Sri Kuna Sittampalam.
Of the remaining proceeds, RM12mil will be reallocated from investment to facility management and building information modeling in the renewable energy sector while RM6mil will go towards repaying borrowings for the purchase of SMHB Engineering Sdn Bhd.
Meanwhile, Kuna said the local construction sector looks to be on a better footing with the resumption of the East Coast Rail Link project and the ongoing tenders for water sector projects.
According to the statement, the Ministry of Water, Land and Natural Resources recently called for tenders to solve non-revenue water issues.
"Together with water regulator Suruhanjaya Pengurusan Air Negara, the parties are taking steps towards increasing water tariffs to allow full cost recovery for provision of water supply service," it said.
Furthermore, Pengurusan Asset Air Berhad’s consolidation of eight out of 11 states’ water assets in Peninsular Malaysia pave the way for more capital injection for construction of new intakes, water treatment plants, distribution systems and pipe replacement works.
The group's tender book currently stands at over RM300mil in the rail, road and water sectors.