KUALA LUMPUR: Construction player Haily Group Bhd (HGB) has secured a RM64 million construction contract from Meridin East Sdn Bhd (MESB), a wholly-owned subsidiary of Mah Sing Group Bhd, to build 327 residential units and two Tenaga Nasional Bhd (TNB) substations for the Meridin East township in Johor Bahru.
This contract, among HGB's largest to date and the fifth major job clinched by the company this year, brings the total contract value of its ongoing projects to RM697.51 million.
HGB's wholly-owned subsidiary, Haily Construction Sdn Bhd (HCSB), accepted a letter of award from MESB for constructing 327 units of double-storey terrace houses and the two TNB substations.
The two TNB substations and the houses, each measuring 20' x 70,' will be located in Parcel 2G of the Meridin East township at Taman Bestari Perdana, Mukim of Plentong, Johor Bahru in Johor.
HGB's contract involves Parcel 2G1 and Parcel 2G2, with 157 units and one TNB substation to be built in Parcel 2G1, while the remaining 170 units and one TNB substation will be built in Parcel 2G2.
The contract is scheduled to be completed within 15 months from the respective commencement dates of Parcel 2G1 and Parcel 2G2, which will be determined later.
HGB founder and executive director See Tin Hai said Meridin East is Mah Sing's largest mixed township development, with a total land size of 1,313 acres.
"HGB continues to benefit from the trust and reputation that we have built over the years, particularly in our ability to deliver outstanding service and maintain high standards of workmanship.
"With this in mind, we are positioned to continue riding the resurgence of activity in Johor's property development sector," he said in a statement.
He said that Johor has secured significant investments in oil and gas, data centres, and manufacturing projects over the past two years.
This bodes well for Johor's economy, which should also spill over to property development and construction activities.
"So far this year, we have secured total contracts worth RM272.15 million, far exceeding what we secured for 2022.
"We aim to continue building on this momentum by securing more high-value projects," he said.
As Malaysia's economy continues its steady recovery from the throes of the Covid-19 pandemic, HGB has secured several significant contracts, solidifying its position as one of Johor's leading contractors.
Major contracts bagged by the company this year include, amongst others, a RM53.80 million construction contract from Tasek Maju Realty Sdn Bhd to build 170 residential units for the Taman Mutiara Maju township and a RM32.66 million contract for the construction of 186 residential units in the Bandar Putra township from Nice Frontier Sdn Bhd, a member of IOI Properties Group Bhd.
Further, HGB also secured a RM78.28 million contract for the construction of 262 residential units in Pontian, Johor, from Gadang Holdings Bhd's subsidiary, Mandy Corporation Sdn Bhd, and an RM37.85 million contract for the construction of 77 commercial properties for Crest@Austin development for Austin Senibong Development Sdn Bhd.
HGB is a main contractor in the construction of residential and non-residential buildings in Johor.
The company also provides construction machinery and the agriculture sector, where it manages and harvests durians and other fruits.