GUH to invest in RE to broaden income base


  • Corporate News
  • Monday, 27 Apr 2020

Group managing director Datuk Seri Kenneth H’ng (pic) told StarBiz that the group had been exploring opportunities in Asia Pacific.“We have started talking to a few parties but nothing concrete has turned up yet."

GEORGE TOWN: GUH Holdings Bhd plans to invest in the renewable energy (RE) business to broaden its income base.

Group managing director Datuk Seri Kenneth H’ng told StarBiz that the group had been exploring opportunities in Asia Pacific.

“We have started talking to a few parties but nothing concrete has turned up yet.

“Once the movement control order (MCO) is over, we will follow up with the exploration, ” he said.

H’ng said the group is interested in solar, hydro, and wind power projects.

“We see good potential in the RE business, and we hope to venture into the business in the next two years.

“A medium-size project of 30MW will cost between RM150mil and RM180mil to develop and can support 20,000 homes, ” H’ng said

A solar power plant of 200MW can support about 70,000 homes.

According to an Expert Market Research (EMR) report in 2019, nearly 2455GW of RE was installed globally.

“According to the research, the installations are expected to grow at compounded annual growth rate (CAGR) of 7.6% between 2020 and 2025 to reach 3,812GW by 2025.

“The Asia Pacific is the fastest-growing region for the industry. The region accounts for nearly 27% of the global industry share.

“China, one of the significant countries in the regional market, has the largest capacity for hydropower, wind, and solar energy plants.

“Hydropower is the leading resource in the region, with offshore wind and the solar area being the most exploited renewable resources in Asia, ” he said.

On the group’s core business, H’ng said because of the Covid-19 outbreak, it would take at least a year for the global economy to recover.

“Because our printed-circuit boards (PCB) are used mainly in consumer electronic products, we can expect a slowdown in the demand for PCBs over the next 12 months as there will be a rise in unemployment across the globe.

“About 60% of the PCBs produced at the Bayan Lepas plant is exported to the South-East Asia region, while the remainder is sold within the multi-national corporations in Malaysia, ” he added.

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GUH , Kenneth H'ng , invest , RE , broaden , income , Asia Pacific ,

   

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