KUALA LUMPUR: Following its exit from the Light Rail Transit 3 (LRT3) project, George Kent (M) Bhd is focusing on new opportunities in the domestic and regional railway space under the 12th Malaysia Plan’s (12MP) policy enabler of enhancing connectivity and transport infrastructure.
In a statement, the group said it will leverage its expertise as a rail systems specialist in railway projects.
“George Kent’s track record of successful execution and timely delivery of the Light Rail Transit Ampang Line Extension (LRT2), coupled with the experience gained from the LRT3 project, augurs well for the group to expand its role in the rail network infrastructure,” it added.
In addition, the group said it is in a good position to strengthen its thriving water meter business by exploring opportunities in water infrastructure projects.
This is in view of the accelerated adoption of the Integrated Water Resources Management by the government under the 12MP.
The group is also looking to create a platform for strategic investments into companies with digital technology such as Internet of Things and artificial intelligence, which will serve as an extension of its smart metering development in the areas of urban solutions and sustainability as well as emerging technology.
“The platform will provide the group with access to new areas of growth opportunities. We believe exciting times are ahead for George Kent,” said group chairman Tan Sri Tan Kay Hock.
On Oct 13, George Kent disposed of its 50% equity interest in MRCB George Kent Sdn Bhd (MRCBGK), a joint venture to execute the LRT3 project, to Malaysian Resources Corp Bhd for RM53mil.
The group noted that the LRT3 project has a finite life for completion by end-2023 and about 60% of the works have been completed.
According to George Kent, the disposal provided an opportunity for the group to monetise the joint venture, which had zero cost of investment.
“The group had already recovered its original cost of investment in December 2017 upon receipt of a cash dividend of RM5mil as declared by MRCBGK.
“In addition, George Kent had benefitted from equity gains of RM57.2mil as at June 30, 2021, which were credited to the group’s retained earnings,” it said.