Date: Friday, 26 September 2014
Category: Publication - The Edge Online
Category: Publication - The Edge Online
Business & Markets 2014
Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com
Friday, 26 September 2014 09:36
KUALA LUMPUR: Seeing a tough year ahead for the local construction sector, MTD ACPI Engineering Bhd has set its sights on expanding more in the overseas markets, said its president and chief executive officer (CEO) Datuk Dr Azmil Khalili Khalid.
Azmil said the local construction market is very competitive and no real big projects are coming up, hence it will have to depend on its parent company for more overseas construction jobs.
We are dependent on our parent company, MTD Capital Bhd, which is investing overseas and looking at working on projects in the countries that they are in. If they are successful, then MTD ACPI, being the construction arm, will get the construction business that is one of our major strategies, Azmil told reporters yesterday after the companys annual general meeting.
He noted that margins overseas are normally better as locally, many companies are hungry for jobs, and to remain competitive means their margins are squeezed.
We dont want to go into a project where margins are thin and we end up losing money. But when you talk about parent company businesses, at least we can negotiate on a turnkey design and the margins become slightly better, he said.
MTD Capital is in 14 countries and its construction division, whose works are done through MTD ACPI, is active in the United Arab Emirates, Sri Lanka, Singapore, Indonesia and the Philippines.
Malaysia still remains a target market but we have to expand our horizon and go overseas, which is what we have been doing, said Azmil.
Currently, its Malaysian operations contribute more to its revenue compared to its overseas jobs and it hopes that MTD Capital secures more projects, especially in Indonesia and the Middle East, so that there will be a trickle-down effect on MTD ACPI.
Earlier this year, the company secured a subcontract job worth RM40 million to manufacture and supply precast steel fibre-reinforced concrete tunnel lining segments for phase 1 of the Abu Hamour (Musaimeer) surface and ground water drainage tunnel in Qatar.
Apart from replenishing its order book, which currently stands at RM700 million and can only stretch until the end of next year, MTD ACPI is looking to improve its financial performance, which saw a net loss of RM2.11 million in the first quarter ended June 30, 2014 compared to a profit of RM701,000 in the previous corresponding period, despite its revenue climbing to RM85.34 million from RM67.49 million.
This article first appeared in The Edge Financial Daily, on September 26, 2014.
Written by Fatin Rasyiqah Mustaza of theedgemalaysia.com
Friday, 26 September 2014 09:36
KUALA LUMPUR: Seeing a tough year ahead for the local construction sector, MTD ACPI Engineering Bhd has set its sights on expanding more in the overseas markets, said its president and chief executive officer (CEO) Datuk Dr Azmil Khalili Khalid.
Azmil said the local construction market is very competitive and no real big projects are coming up, hence it will have to depend on its parent company for more overseas construction jobs.
We are dependent on our parent company, MTD Capital Bhd, which is investing overseas and looking at working on projects in the countries that they are in. If they are successful, then MTD ACPI, being the construction arm, will get the construction business that is one of our major strategies, Azmil told reporters yesterday after the companys annual general meeting.
He noted that margins overseas are normally better as locally, many companies are hungry for jobs, and to remain competitive means their margins are squeezed.
We dont want to go into a project where margins are thin and we end up losing money. But when you talk about parent company businesses, at least we can negotiate on a turnkey design and the margins become slightly better, he said.
MTD Capital is in 14 countries and its construction division, whose works are done through MTD ACPI, is active in the United Arab Emirates, Sri Lanka, Singapore, Indonesia and the Philippines.
Malaysia still remains a target market but we have to expand our horizon and go overseas, which is what we have been doing, said Azmil.
Currently, its Malaysian operations contribute more to its revenue compared to its overseas jobs and it hopes that MTD Capital secures more projects, especially in Indonesia and the Middle East, so that there will be a trickle-down effect on MTD ACPI.
Earlier this year, the company secured a subcontract job worth RM40 million to manufacture and supply precast steel fibre-reinforced concrete tunnel lining segments for phase 1 of the Abu Hamour (Musaimeer) surface and ground water drainage tunnel in Qatar.
Apart from replenishing its order book, which currently stands at RM700 million and can only stretch until the end of next year, MTD ACPI is looking to improve its financial performance, which saw a net loss of RM2.11 million in the first quarter ended June 30, 2014 compared to a profit of RM701,000 in the previous corresponding period, despite its revenue climbing to RM85.34 million from RM67.49 million.
This article first appeared in The Edge Financial Daily, on September 26, 2014.
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