MRCB bidding for RM600 million worth of construction projects

KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) is currently bidding for RM600 million worth of construction projects.

The results of these projects, which are mostly locally based, will be known within the next three months, said chief executive officer Mohamed Razeek Hussain.

"We are confident of getting about RM250 million worth of projects," he said during a media briefing after the group's annual general meeting here on Thursday June 3.

According to Mohamed Razeek, the group currently has an order book with close to RM3 billion worth of construction and engineering projects. MRCB, he said, has been pre-qualified for the extension of the light rail transit (LRT) project for the Ampang and Kelana lines.

Mohamed Razeek also said that MRCB was confident that the group's revenue will cross the RM1 billion this year with significant improvement in profitability. This, he said, was because all business units in property, construction and building services were showing sustainable growth.

For the financial year ended Dec 31, 2009, the MRCB group recorded a turnover of RM921.6 million and pre-tax profit of RM46.49 million.

MRCB's massive development in KL Sentral is a major contribution to the group, Mohamed Razeek said.
The project, comprising office buildings, international hotels and lifestyle shops, will be completed by 2016.

Another MRCB project, the Eastern Dispersal Link, an eight-kilometre highway in Johor Baharu which enables commuters from Singapore to bypass traffic within the city, is scheduled to be completed by September 2011.
MRCB's Duta-Ulu Kelang Expressway (DUKE), which was opened to traffic in May 2009, has shown a steady increase in daily traffic volume, Mohamed Razeek said.

"We are looking forward to positive contributon from the DUKE highway in three to four years," he said.
Mohamed Razeek said most of MRCB projects are due to be completed in 2011 and 2012.

"With the anticipated maturity of KL Sentral development by 2016, there is an urgency for the group to increase its landbank," he said.

MRCB is actively pursuing new landbank in the Kuala Lumpur city centre of around one to two acres and in the Klang Valley of over 20 acres.

"We have identified the land areas concerned and are talking to landowners. We hope to conclude the deals as soon as possible," Mohamed Razeek said.

MRCB, he said, was also applying for approval from the local authorities for the construction of student apartments in Australia.

"The gross development value of the project is A$57 million. It is a joint venture with other Malaysian partners for which we have invested A$6.5 million to acquire a stake in the joint venture company," he added.

On overseas expansion, Mohamed Razeek said MRCB was keen on projects in South-East Asia in areas which the group already has core competency. -- Bernama