KUALA LUMPUR: Widad Group Bhd aims to secure several new integrated facilities management (IFM) concessionaire contracts as infrastructure projects and the property sector in Malaysia shows promise to get back on track this year.
Executive chairman Datuk Feizal Mustapha said Widad expects demand and opportunities for the IFM market to grow this year.
"We have recently signed a heads of agreement (HoA) to manage two UiTM concessions which are worth about RM1.7 billion.
"This represents the diversification of our service offerings into the education industry which is a follow through for Widad to further strengthen its IFM segment.
"As of now, we will be focusing on offering our IFM services to the government, healthcare and education sectors," Feizal told the New Straits Times.
As at November last year, Widad had RM838 million of IFM concessionaire, bringing its total order book to about RM3 billion.
"We have a healthy pipeline of order book which can sustain us until 2022 and beyond. Besides that, we are equipped with the right resources and an experienced management team which positions us to bid for more major projects and win new contracts," he said.
Feizal pointed out that the demand for the IFM market was mainly derived from the public sector for the maintenance of government-based premises and facilities.
When asked on challenges, Feizal said factors affecting the IFM market included the growth of commercial buildings as well as continuous outsourcing of projects by both public and private sectors.
"IFM is expected to continue to be a growing market driven by the growing complexity of facilities management and our strong track record especially in integration leaves us hopeful for its prospects," he said.
On the government's decision not to sell the country’s largest highway comcessionaire PLUS Malaysia Bhd, Feizal said Widad had accepted the outcome and thanked the parties involved for professionally and respectfully handling the whole matter.
"We are fully in support of the government’s efforts in benefitting the rakyat, and we shall also continue to find ways to do good for the country," he said.
In its recent third-quarter results filing, Widad's posted a revenue of RM25.21 million, 38.46 per cent lower than in the same quarter last year. This was mainly due to completion of two construction works and an IFM contract in early financial year 2019.
However, higher proportion of contribution from IFM segment and an increase of five per cent rate charges in certain IFM contracts lifted the company's pre-tax profit by RM0.60 million or 6.20 per cent.
For the nine months period, revenue recorded was RM64.33 million or 35.25 per cent lower than a year before.
Construction contributed 55.60 per cent (2018: 60.91 per cent) while IFM contributed 44.40 per cent (2018: 39.09 per cent).
Lower revenue was attributable to completion of projects in both segments and slower construction activities, Widad exchange filing showed.