DRB-Hicom to cut reliance on auto, property sectors

PETALING JAYA: DRB-Hicom Bhd is looking to reduce its dependence on the automotive and property sectors, which collectively account for more than 80% of the group's revenue currently.
The group wants to lower the two sectors' contribution to about 50% of total revenue within the next five years.
DRB-Hicom chairman Tan Sri Mohd Khamil Jamil said this could be done through the strengthening of the group's postal and logistics businesses, which will be housed under Pos Malaysia Bhd.
DRB-Hicom shareholders gave the green light for the disposal of the group's entire stake in KL Airport Services Sdn Bhd (KLAS) to Pos Malaysia for RM749.35 million at an extraordinary general meeting (EGM) yesterday.
The group sees the growth of the logistics industry in Malaysia as an opportunity that must be captured immediately, says Khamil.
"This merged businesses between Pos Malaysia and KLAS will create an end-to-end integrated logistics fulfilment provider encapsulating services such as warehousing, haulage, courier, customs clearance at ports and airports, to cater for both domestic and regional businesses," he said.
Currently, DRB-Hicom has a combined warehouse capacity of 1.78 million square feet.
At yesterday's EGM, DRB-Hicom shareholders also voted in favour of the disposal of part of a piece of freehold industrial land in Section 28, Shah Alam, to Pos Malaysia for RM69 million.
Upon completion of the two transactions, DRB-Hicom's shareholding in Pos Malaysia will increase to 53.5% from 32.2%.