The LRT3 project involves a 37-km line from Johan Setia in Klang to Bandar Utama, Petaling Jaya.
PETALING JAYA: Malaysian Resources Corp Bhd (MRCB), via unit Setia Utama LRT 3 Sdn Bhd (SULRT3), has secured a RM2.47bil contract for the LRT3 project.
In a filing with Bursa Malaysia, MRCB said the contract was awarded by Prasarana Malaysia Bhd and will comprise the proposed design, construction, completion, testing and commissioning of the reinstatement works of LRT3 from Bandar Utama to Johan Setia.
“The scope of the works includes the construction of five reinstated stations, the construction of two electric vehicle bus depots at Shah Alam and Johan Setia, supply of light rail vehicles, construction of other related infrastructure work and system works, to be completed in 48 months from the commencement date.
“The project will contribute positively to the future earnings of the MRCB Group.”
MRCB said the project will be exposed to the normal construction risks of materials price fluctuations.
“With its past experience and expertise, SULRT3 is well placed to mitigate these risks through its existing controls, measures and operational procedures.”
The LRT3 project involves a 37-km line from Johan Setia in Klang to Bandar Utama, Petaling Jaya.
The project was kicked off nearly a decade ago with an initial budget of RM10bil.
However, in July 2018, then Finance Minister Lim Guan Eng under the Pakatan Harapan government disclosed that the cost was some RM31.6bil.
Cost-cutting exercises officially approved by the government resulted in final costs reduced by 47% to RM16.6bil.
In a written parliamentary reply on Wednesday, Transport Minister Anthony Loke said the LRT3 line is scheduled to begin operations on Sept 30.
He said the line had reached 98.63% completion and is expected to be fully completed and handed over to Prasarana Malaysia by the turnkey contractor on July 31.
For the financial year ended Dec 31, 2024, MRCB’s net profit dipped to RM63.67mil from RM101.03mil in the previous corresponding period, while revenue dipped to RM1.65bil from RM2.54bil a year earlier.
In a statement, the group said the property development and investment division recorded revenue of RM286.7mil, down 61% compared to 2023.
It also reported an operating loss of RM17.6mil due to the completion of two large development projects and disposal gains from the sales of Menara CelcomDigi and Plaza Alam Sentral of RM56.8mil and RM93.4mil respectively in 2023.
“The weaker performance in 2024 was also due to the group’s new property development projects still being in their initial development phases, when there is very minimal revenue to be recognised.
“The division recorded RM836mil in property sales in 2024, including RM398.6mil from its Vista development in Gold Coast, Australia, which continues to see strong demand.”
MRCB said new launches in 2024 were hampered by additional approval requirements for all new developments in Kuala Lumpur, pushing them into 2025.
“The group has earmarked RM3.9bil worth of property launches in 2025, with RM1.9bil in Malaysia, RM1.5bil in New Zealand, and RM0.5bil in Australia, reflecting the group’s continued push for overseas diversification.”
It said key new overseas property development projects earmarked for launch in 2025 are MARIS, a 192-unit resort-style apartment development in Southport, Gold Coast with a gross development value (GDV) of RM533mil and The Symphony Centre transit-oriented development in Auckland, which has a GDV of RM1.1bil.
