SHAH ALAM: Gamuda Bhd aims to increase overseas contribution for its construction business to 50% over the next three years from the current 20%, largely from its operations in Taiwan, Singapore and Australia.
Speaking to reporters after the group’s AGM and EGM today, managing director Datuk Lin Yun Ling (pix) said the group needs to seek revenue stream from overseas with the large number of contract wins by Chinese contractors in the local market.
He said with the scarcity of big projects domestically and the increased number of Chinese contractors in the market, this has resulted in local engineering talent shifting overseas.
According to Lin, Gamuda’s focus on the overseas markets is meant to hedge against the departure of such talents.
“We have no choice but to go overseas as many young engineers opt to head to Singapore and Australia, we feel it’s better for them to work for us in those countries, as we could bring them back once the situation has improved domestically.”
He highlighted that Australia will be Gamuda’s second home market as there is a sizeable order book in the country with few tenders in the pipeline.
Lin noted that it is not easy for Chinese contractors to penetrate into the Australian market as it has more stringent compliance requirements.
He also said the group is about to win its third project in Taiwan following the completion of the Kaohsiung metropolitan MRT in 2008 and the recent Marine Bridge project.
Overseas activities contribute 70% to its property development business.
On the Penang Transport Master Plan, Lin said Gamuda is expected to ink the project delivery partner (PDP) contract with the Penang state government in the next few weeks.
“Once the PDP agreement is signed, the design works will start, from LRT to the first island, or what we call Island A, and Pan Island Link, as well as reclamation work for South Island.”
The first work package of the LRT project will be out by the middle of next year.
Commenting on the government’s acquisition of four highways concessions from Gamuda, Lin said it is still waiting for the decision from the authorities. If the divestment materialises, the group will make a one-off special dividend to the shareholders.
