The Star (Malaysia)
PETALING JAYA: Muhibbah Engineering (M) Bhd will invest about US$30mil to upgrade the Sihanoukville International Airport in Cambodia over the next three years.
Managing director Mac Ngan Boon said building works would commence in phases and the entire project was expected to conclude by 2009.
Muhibbah, via joint-venture partner Societe Concessionaire de l’Aeroport, has held the concession of the Sihanoukville and two other international airports in Cambodia – Siem Reap Airport and Phnom Penh Airport – since 1995.
“The concession period for the three airports was recently extended by 20 years to 2040 by the Cambodian government,” Mac said, adding that the extension and new airport job were expected to boost Muhibbah’s construction order book as well as its earnings this year.
Group finance director Shirleen Lee said the new airport project was centred on doubling the capacity of the Sihanoukville airport.
She added that the group was involved in upgrading works, constructing a new terminal and new runways at the airport.
The group, Lee said, would hold an official opening ceremony for the recently completed airport terminal in Siem Reap, on Monday.
Mac was optimistic of Muhibbah's operations in Cambodia, which are growing at a compounded annual growth rate of 20% to 25%, thanks to the country’s booming tourism industry.
He added that the airport concessions in Cambodia and road maintenance in Malaysia contributed about half of the group’s profit.
According to a research report by a local bank-backed brokerage, Muhibbah’s earnings are expected to be further boosted by tourist arrivals in Cambodia which are expected to rise 30% per annum over the next few years.
The report added that the airport concession earnings would help the company weather any slowdown in the construction industry.
“Over the last 10 years, Muhibbah has diversified its earnings base to shipyard building, crane production and concession business. As such, the company is now less dependent on just construction,” it added.
The report also said the company stood a very good chance of securing sub-contract jobs for the second Penang bridge as Muhibbah had recently secured a RM48.4mil sub-contract piling job for the proposed widening of the existing bridge.
“As more details of the Ninth Malaysia Plan will be released by the government, we hope to get a clearer picture soon. We are hoping to secure the bridge project and some defence jobs under Mindef,” Lee said.
Besides its impressive order book of about RM1bil, Muhibbah is negotiating for local and overseas jobs worth RM2bil.
Lee said Muhibbah’s construction and engineering division had an order book of RM500mil, its shipbuilding division RM140mil and crane division RM350mil.
Muhibbah has ongoing overseas contracts in Sudan, Singapore and Cambodia, which contribute about 70% to the group’s annual turnover. Local operations account for the balance of the group's income.
The company, Mac said, was also seeking new markets especially in the Middle East, which could boost its bottom line.
Managing director Mac Ngan Boon said building works would commence in phases and the entire project was expected to conclude by 2009.
Muhibbah, via joint-venture partner Societe Concessionaire de l’Aeroport, has held the concession of the Sihanoukville and two other international airports in Cambodia – Siem Reap Airport and Phnom Penh Airport – since 1995.
“The concession period for the three airports was recently extended by 20 years to 2040 by the Cambodian government,” Mac said, adding that the extension and new airport job were expected to boost Muhibbah’s construction order book as well as its earnings this year.
Group finance director Shirleen Lee said the new airport project was centred on doubling the capacity of the Sihanoukville airport.
She added that the group was involved in upgrading works, constructing a new terminal and new runways at the airport.
The group, Lee said, would hold an official opening ceremony for the recently completed airport terminal in Siem Reap, on Monday.
Mac was optimistic of Muhibbah's operations in Cambodia, which are growing at a compounded annual growth rate of 20% to 25%, thanks to the country’s booming tourism industry.
He added that the airport concessions in Cambodia and road maintenance in Malaysia contributed about half of the group’s profit.
According to a research report by a local bank-backed brokerage, Muhibbah’s earnings are expected to be further boosted by tourist arrivals in Cambodia which are expected to rise 30% per annum over the next few years.
The report added that the airport concession earnings would help the company weather any slowdown in the construction industry.
“Over the last 10 years, Muhibbah has diversified its earnings base to shipyard building, crane production and concession business. As such, the company is now less dependent on just construction,” it added.
The report also said the company stood a very good chance of securing sub-contract jobs for the second Penang bridge as Muhibbah had recently secured a RM48.4mil sub-contract piling job for the proposed widening of the existing bridge.
“As more details of the Ninth Malaysia Plan will be released by the government, we hope to get a clearer picture soon. We are hoping to secure the bridge project and some defence jobs under Mindef,” Lee said.
Besides its impressive order book of about RM1bil, Muhibbah is negotiating for local and overseas jobs worth RM2bil.
Lee said Muhibbah’s construction and engineering division had an order book of RM500mil, its shipbuilding division RM140mil and crane division RM350mil.
Muhibbah has ongoing overseas contracts in Sudan, Singapore and Cambodia, which contribute about 70% to the group’s annual turnover. Local operations account for the balance of the group's income.
The company, Mac said, was also seeking new markets especially in the Middle East, which could boost its bottom line.
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