Ireka unit receives RM196mil contract for Langkawi connectivity project

KUALA LUMPUR: Ireka Corp Bhd's subsidiary Ireka Engineering & Construction Sdn Bhd secured a contract from Fec Telco Sdn Bhd with a provisional sum of RM196mil for the "fibre-to-the-home connectivity project" in Langkawi, Kedah.

Fec Telco is a wholly owned subsidiary of Wanland Metro Sdn Bhd.

Ireaka said in a statement that the contract will be undertaken in two sections over a period of two years.

In the civil works component, the group will supply and install fibre-optic cables and all related equipment, pole and commissioning works, while the second component will include all IT, operational support system and over-the-top services to targeted end-users.

“Ireka’s future direction is to focus on its 'Back-to-Basic' approach, where we focus on our core strength in construction, infrastructure works, telecommunication infrastructure development as well as property development.

"It also shows that the confidence that the market has over our expertise, experience and track record in the industry," said Ireka managing director Mohd Hasnul Ismar Mohd Ismail.

In August, Ireka signed a joint venture agreement with Wanland Metro to be the main contractor for its construction jobs.

It said this set the path for the group to participate in affordable housing projects, which offers a more reasonable risk profile given the current state of the property market in Malaysia.

"Going forward, Ireka will explore more fund-raising activities to strengthen its cashflow and balance sheet in order to undertake more projects in the future," it said.

Ireka shares ended the trading day 0.5 sen or 0.74% higher at 68 sen apiece on the back of 9.71 million shares traded.
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