KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) is actively bidding on construction contracts totalling RM3 billion and aims to secure between 17 and 24 per cent from the bidding tender after considering the post-pandemic regulations and restrictions into the equation.
"We are aiming at winning contracts in affordable housing projects under the Ministry of Housing and Local Government like the 1Malaysia Civil Servants Housing Scheme (PPA1M), 1Malaysia People's Housing Programme (PR1MA) and Syarikat Perumahan Negara Bhd (SPNB) in Terengganu and Kelantan," SCIB group managing director and chief executive officer Rosland Othman told The New Straits Times.
With a current order book value at RM1.3 billion, translating into healthy earnings visibility up to 2026, the company is also tendering construction contracts for roadworks and highways in Sabah, Sarawak, Perlis, and Johor.
Rosland said other projects the company is bidding on include government projects such as hospitals, schools, mosques, and office buildings.
"The construction of the schools will mainly be based in Sarawak, while for the hospitals, the project will be in Selangor.
"We are also bidding for industrial buildings such as a waste treatment plant located in Kedah," he said.
Rosland said SCIB is looking to support numerous state-funded people-centric construction projects in Sarawak to provide a better infrastructure to the people in Sarawak.
The potential prospect that lies ahead includes the upcoming launches of second trunk road, coastal road, project rumah mesra rakyat, Sekolah DAIF Sarawak, government hospital and health clinic, Sarawak water supply grid programme, and others.
When asked about the market trends for mixed-use developments in Sarawak, Rosland said while mixed-use developments tend to be springing up in major urban areas such as the Klang Valley, in Kuching, the landed residential sector remains the backbone of the property market and continues to experience steady growth.
"Mixed-use developments are still lacking in Kuching, however, factors such as
accessibility to amenities, education, healthcare, employment, and daily social life has led to demand for high-rise properties in urban areas like Kuching, Miri, Sibu and Bintulu.
"Therefore, we can see the recent high-rise residential projects were mostly developed as part of a mixed-use development or serviced apartments," he said.
Rosland said with the shift of the capital city of Indonesia from Jakarta to Kalimantan in the next few years, Sarawak could potentially be the next sophisticated hub as Kalimantan is geographically nearer to Sarawak.
"Major developments in the state have been plotted by the Malaysian government in the National Recovery Plan (NRP) to complete with the metropolis soon, and we intend to capitalise on it," he said.
Rosland said SCIB does not intend to invest or purchase landbanks for any mixed-used developments in the short term.
"Our focus now would be to find the opportunity to collaborate with potential joint venture partners to develop projects and share resources and expertise," he said.
SCIB posted revenue of RM26.5 million for the first quarter (Q1) quarter ended 30 September 2021 (FY22), with the manufacturing division is the largest contributor to revenue at RM19.1 million, followed by the construction/EPCC (engineering, procurement and construction) division recorded revenue of RM7.4 million.
For the quarter, SCIB registered both a loss before tax (LBT) and loss after tax (LAT) of RM2.7 million, mainly due to higher operational costs caused by stringent standard operating procedures and initial mobilisation cost for local projects.
"We have re-strategised our geographical positioning by taking a closer look at potential emerging markets especially in the home and neighbouring countries covering East and West Malaysia, Brunei, Indonesia, and India.
"We will continue our participation in the development of affordable housing schemes like PR1MA and PPAM projects, securing roadwork construction and maintenance projects as well as EPCC and construction of hospitals and schools both in Peninsular Malaysia and East Malaysia," Rosland said.