Berjaya Property details RM1.30 bil funding breakdown for tyre manufacturing plant

PETALING JAYA (July 11): Berjaya Property Bhd (BProperty) has provided further details on its proposed joint venture (JV) to undertake the automotive tyre manufacturing business in Malaysia, including the breakdown of the estimated RM1.30 billion funding requirement for establishing the manufacturing plant.

In a Bursa Malaysia filing yesterday, BProperty said the additional information relates to its proposed JV announced on July 6, including estimated costs for construction works, land conversion and subdivision to be borne by Alam Baiduri Sdn Bhd (ABSB).

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Of this, RM60 million in site and land-related costs will be borne by ABSB, comprising general site clearing and earthworks, power supply infrastructure development, water supply infrastructure development, road and drainage development, and conversion premium and subdivision costs.

Estimated cost breakdown is as follows:

1) General site clearing and earthworks: RM2.5 million
2) Power supply infrastructure development: RM12 million
3) Water supply infrastructure development: RM8 million
4) Road and drainage development: RM17.5 million
5) Conversion premium and subdivision cost: RM20 million

For the establishment of the automotive tyre manufacturing plant, BProperty said the total funding requirement is estimated at RM1.3048 billion.

The largest allocation is for equipment procurement and installation at RM740.64 million, followed by construction, including engineering, building and civil works, at RM339.71 million.

Other allocations comprise land acquisition and related costs of RM156.66 million, initial working capital of RM45.50 million, and contingency costs of RM22.29 million.

Based on the disclosed figures, equipment procurement and installation accounts for about 57% of the total funding requirement.

The disclosure follows BProperty’s earlier announcement on the proposed JV dated July 6, 2026.

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