Kejuruteraan Asastera Bhd (KAB), an electrical and mechanical engineering services provider, through its wholly owned subsidiary KAB Telco Sdn Bhd (KABTEL) together with MRH Empire Sdn Bhd will formed a joint venture (JV) company to venture into the local telecommunication infrastructure sector business.
In a filing with Bursa Malaysia, KAB said the JV company which will be 60 per cent owned by KABTEL and 40 per cent owned by MRH, will exclusively pursue existing and new telecommunication projects in Malaysia.
KAB managing director Datuk Lai Keng Onn said the company’s venture into the telecommunication industry will grow KAB's stable recurring income apart from its current existing businesses.
“Based on the milestones set by the Malaysian government in terms of connectivity, we believe that we are on a path of exponential growth.
“We expect the development of all the sites to be ready by 2025 and upon the completion of all sites, the expected gross development value (GDV) will be worth more than RM500 million,” he said.
According to KAB, MRH has obtained approvals to survey and develop up to 1,342 sites throughout East and West Malaysia for the development of telecommunication towers.
“MRH has also entered into a memorandum of understanding with a local established telecommunication operator for joint business participation and cooperation over digital connectivity and infrastructure development for the 1,342 sites," it said.
KAB said the JV is the company's first partnership locally to build and operate telecommunication towers.
"That said, the company is working closely with its partner to leverage its expertise in the telecommunication industry which includes supplying telecom towers, building fibre optic capabilities and developing In Building Coverage (IBC) and Small Cell," it added.
Source: https://www.bernama.com/en/general/news.php?id=2073712