Malakoff's new growth areas include securing more RE, WTE plants bids

KUALA LUMPUR: Malakoff Corporation Bhd will focus its strategic expansion, as part of its new growth areas, in securing bids for renewable energy (RE) and waste-to-energy (WTE) plants.

Chairman Datuk Hasni Harun noted that RE has been identified as one of the key areas of growth in the energy industry, both internationally as well as within Malaysia.

"The demand for power will continue to increase, as consumption increases in the longer term.

"Within Malaysia, the number of WTE plants are also set to expand as the government has announced its target of six WTE plants in the country by 2025,” he said in the company’s Annual Report released today.

He said the company would continue to explore and pursue potential investments in the power and water industry which would provide lucrative returns for its international business, especially in the Middle East and North Africa (MENA) region.

Hasni said as a sustainable energy player, the company would continue to focus on strengthening risk management approach to augment its business resilience and complementing its business development drive.

In order to continue creating value within the company operations and for its stakeholders, he said Malakoff would maintain a strict focus on cost savings and operations optimisation programmes.

"We remain optimistic that our focused strategic execution will continue to build long-term and meaningful value for our shareholders and stakeholders,” he said.

Malakoff is banking on the dissemination of vaccines throughout the world and in Malaysia to lead to an uptick in the global economy and more so as the World Bank has projected a 6.7 per cent growth for the country this year, bouncing from an economic contraction of 5.8 per cent in 2020.

Meanwhile, the company’s financial year 2020 (FY2020), revenue declined by 15.44 per cent year-on-year (YoY) to RM6.27 billion, mainly due to lower energy payments from its Tanjung Bin Power Sdn Bhd (TBP) and Tanjung Bin Energy Sdn Bhd (TBE) coal plants as a result of a reduction in the applicable coal price (ACP). -- Bernama