KUALA LUMPUR: Ireka Corp Bhd’s subsidiary Ireka Engineering & Construction Sdn Bhd has been awarded a contract by 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 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 and property development.
“It also shows 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.
“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 day 0.5 sen, or 0.74%, higher at 68 sen apiece on the back of 9.71 million shares traded.