Ireka pre-qualified for RM2.5 billion worth of projects

KUALA LUMPUR: Ireka Corporation Bhd, which is seeking external jobs, has been pre-qualified for projects worth RM2.5 billion from the private sector, which may contribute significantly to its 2011 and 2012 financial years.
"On the breakdown, I would say 50 percent residential and office projects and the remaining involving infrastructure and housing," said its director Lai Voon Hon after the group's annual general meeting here today.
Without giving much details, Lai said the outcome on some of the projects would be known by year-end, with two projects being on a joint venture basis with foreign parties.
The group's order book currently stood at RM1.14 billion, of which RM673.77 million remained outstanding, he said.
Lai said that Ireka was also eyeing some government projects, including extension of the Light Rail Transit (LRT) system.
He said the improvement in market sentiment, resulting in lower construction material prices and labour cost, augured well for the group's intention to seek external jobs.
"The recent decline in the prices of steel bars and other construction materials is expected to improve the operating margins of construction business," said Ireka chairman Abdullah Yusof.
On overseas expansion, Lai said Ireka remained focused on Vietnam but would also capitalise on opportunities arising in other countries.
"We want to leverage on our reputation in Vietnam," he said.
Going forward, Ireka group financial controller Monica V.H. Lai said that it would venture into real estate investment trusts (REITs) if the opportunity arose. -- Bernama