KUALA LUMPUR: Kejuruteraan Asastera Bhd's (KAB) subsidiary KAB Telco Sdn Bhd is forming a joint venture with MRH Empire Sdn Bhd to foray into the telecommunication infrastructure sector.
It said KAB Telco will have a 60% stake in the joint venture while MRH will own the remaining 40% of the partnership, which will pursue existing and new telecommunication projects in Malaysia.
According to the group, MRH has obtained approvals to survey and develop up to 1,342 sites throughout East and West Malaysia for the development of telecommunication towers.
The approval to survey and develop will provide MRH with the rights to build, own and operate telecommunication facilities at all the premises of one of the government ministries of Malaysia.
"Based on the milestones set by the Malaysian government in terms of connectivity, we believe that we are on a path of exponential growth.
"We expect the development of all the sites to be ready by 2025 and upon the completion of all sites, the expected Gross Development Value (GDV) will be worth more than RM500 million," said KAB managing director Datuk Lai Keng Onn in a statement.
He noted that this is KAB's first local partnership to build and operate telecommunication towers although the group is working closely with its partner to leverage its expertise in the telecommunication industry, which includes supplying telco towers, building fibre optic capabilities and developing In Building Coverage (IBC) and Small Cell.