KUALA LUMPUR: Hap Seng Consolidated Bhd aims to invest between RM300 million and RM500 million in capital expenditure (capex) for its core businesses this year.

Group managing director Datuk Edward Lee Ming Foo said Malaysia’s economic outlook is expected to remain stable, supported by strong domestic consumption and investments.

“Our core businesses are well poised to take advantage of the positive operating landscape and we aim to invest further in our existing portfolio to ensure the group continues to enhance shareholder value in a positive and sustainable manner,” he said after the company AGM yesterday.

The group spent about RM136 million on capex in the 2012 financial year (FY12).

Lee said the bulk of the capex will be channelled to improving roads and infrastructure, adding plant and equipment to Hap Seng’s plantations as well as for assets under construction, specifically for the group’s new quarry, investment property and the new Autohaus.

He said Hap Seng sees its automotive and property segments remaining the key drivers for the group’s performance this year.

On the automotive sector, Lee said the group plans to increase the dealerships for Mercedes-Benz vehicles in Malaysia and reduce or withdraw from the market in Vietnam following the introduction of increased government fees and registration taxes on car ownership.

For FY12 ended Dec 31, the group’s pre-tax profit increased to RM677.1 million from RM635 million for FY11. Revenue rose 9% to RM4 billion from RM3.6 billion previously. — Bernama

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