MQTech in Cambodia theme park joint venture

KUALA LUMPUR: Mould manufacturer MQ Technology Bhd (MQTech) expects its new business to contribute 50% to revenue in the next three years with the signing of a joint venture agreement with Cambodian Resort and Entertainment Co Ltd (CRE) to develop and manage a theme park in Cambodia.
MQTech, which specialises in high-precision mould-making and magnetic coils for hard-disk drives, had announced plans to build a theme park in Klebang, Malacca, in a bid to keep the company out of the red.
Speaking at a press conference yesterday, its executive director Edwin Silvester Das said the group, through its unit Star Acres Sdn Bhd, has entered into a memorandum of agreement (MoA) with CRE for the Jurassic theme park and casino project worth US$51.1 million (RM226.4 million).
Edwin said its theme park business will start contributing to its revenue by financial year ending 2017, with the launch of the first phase of the “Malacca Explorer Resort” in the first quarter of next year.
“Looking at the business, I am quite confident that we can turn around the company and be profitable by end of 2017,” he said.
Under the MoA, Star Acres and CRE will set up a 70:30 JV company, whereby the former will help to finance the development of the theme park on land provided by CRE, as well as the building of two blocks of serviced apartments.
MQTech executive director Robbie Hari Krishnan said the group has not decided on how it will raise funds for the investment, but mentioned that it will come from “various resources”.
The theme park project is expected to be completed within three years, whereas the serviced apartments project is to be completed within six years after the agreement signing.
Meanwhile, CRE will provide present facilities – which include a casino hall, hotel and restaurant – undertake the validity of all the licences, including casino licence, and finance the building of other facilities to help enhance the value of the project.
Edwin said the MoA is in line with the group’s plans to diversify its existing business to include the development and operation of theme parks, which is expected to provide a new source of income and reduce its reliance on its existing business.
Commenting on its manufacturing business, which now contributes the bulk of the company’s revenue, Edwin said he expects the business will see a 30% increase in revenue next year, from an estimated RM17 million currently.
“We are going into robotics and automation. Those two will be able to contribute at least a 30% increase in revenue. We should be securing (new) orders (for automation projects) in next one or two months,” he added.