Salcon bidding for RM2.2 billion jobs

PETALING JAYA: Salcon Bhd, which was in the red posting a net loss of RM3.8 million in the first quarter of 2017, hopes to be profitable once its investments begin to bear fruit next year.
The water and wastewater specialist has diversified into the technology and Chinese tourism e-commerce segments, among others.
“I think we are having quite a few new start-ups and they do cost money. All this is like an investment for a short-term pain and a long-term gain. Next year we’ll be much better. We are still digesting,” said Salcon executive director Datuk Leong Kok Wah after the group’s AGM yesterday.
In 2016, Salcon registered a net profit of RM11.17 million, more than double the RM5.54 million in 2015.
He said over time these new business units will start contributing as much as its core business of water and waste water engineering, which contributes about 45-50% to the group’s revenue.
Among the projects on its plate is a mobile backhaul services project that Salcon, via its subsidiary Volksbahn Technologies Sdn Bhd, is developing with edotco Malaysia Sdn Bhd.
The project involves the fiberising of cell sites located within a 2-5km radius from LRT and monorail lines in the Klang Valley. Leong said this will begin contributing next year.
Salcon is actively bidding for RM2.2 billion worth of water and wastewater engineering jobs locally and regionally. Its order book stands at RM645 million, which will keep it busy for the next three years.
Meanwhile, the group is also looking to secure projects by tapping into the RM2 billion budget allotted by the government under Budget 2017 to improve capacity and address water supply issues in various states.
“We’re actively pursuing that. The government has got a lot of allocation for every budget. We try to secure some of these contracts,” Leong said.