AME to invest RM25 million CAPEX to build new i-Stay@Indahpura workers’ dormitories

Worker dormitory i-Stay groundbreaking

Johor Bahru, Malaysia, 27 July 2020 –  Integrated industrial space solutions provider
AME Elite Consortium Berhad (AME, the Group, 腾宇集团, Bloomberg: AME:MK; Reuters: AMEE.KL) intends to invest RM25 million in capital expenditure to build two new blocks of
i-Stay@Indahpura workers’ dormitories to support the requirements of customers at its
i-Park@Indahpura industrial park.

The additional two dormitory blocks would be able to accommodate nearly 2,700 persons in total. Together with the existing dormitories in i-Stay@Indahpura, the additional blocks would increase the accommodation capacity in i-Stay@Indahpura by 54% to approximately 5,900 persons.

Upon completion in 2021, the Group’s enlarged dormitory capacity in i-Stay@Indahpura and i-Stay@Senai Airport City would increase to more than 8,400 persons.

Speaking at the groundbreaking ceremony recently, AME Executive Director Mr. Simon Lee said that workers’ accommodation formed an integral part of the Group’s holistic industrial park offering, enabling multinational corporations (MNCs) and domestic companies at i-Park industrial parks to provide their employees with living quarters near their workplaces that are comfortable, modern, clean and safe.

“AME has always offered a complete proposition to multinational and domestic corporations: our ability to custom-build their manufacturing facilities at our i-Parks, and accommodate their workforce at our i-Stay dormitories.

With the existing dormitories in i-Stay@Indahpura currently 99% occupied, the new dormitory blocks would expand our capacity to attract even more MNCs and local enterprises to establish their bases in our i-Park@Indahpura industrial park. This expansion reflects the growing popularity of our integrated industrial park as we seek to create a working and living environment that is conducive to their growth.

Moreover, Johor has been consistently ranked as Malaysia’s top foreign and domestic investment destinations, particularly from the manufacturing sector. We endeavour to reinforce this standing by expanding the capacity and features at our i-Park industrial parks, so that the state enhances its appeal to attract top-notch investments from all over the world.” – Executive Director, AME Elite Consortium Berhad

Statistics from Malaysian Industrial Development Authority (MIDA) reported that Johor had attracted a total of RM11.5 billion investments in manufacturing projects from foreign and domestic enterprises in 2019. This was reiterated in the first quarter of 2020, where Johor’s approved manufacturing projects amounted to RM1.6 billion in total – the third-highest amount in Malaysia in the period.

AME awarded the construction contract to Haily Construction Sdn Bhd. Construction will commence in August 2020, with targeted completion in October 2021.

Attending the groundbreaking ceremony were Mr. Simon Lee, Executive Director of AME and Mr. Yoong Woei Yeh, Director of Haily Construction Sdn Bhd.

AME currently constructs and operates two integrated industrial parks in Johor:
i-Park@Indahpura (Phase 3) and i-Park@Senai Airport City (Phases 1, 2, and 3). Both industrial parks feature custom-built industrial buildings within a well-planned gated and guarded compound, complemented by recreational facilities and workers’ dormitories.

Mr. Simon Lee further reiterated that the i-Stay workers’ dormitories allowed industrial park customers to uphold their commitment to provide conducive accommodation to employees. Similar to the existing dormitories, the two new blocks would include facilities such as a cafeteria, grocery store and multipurpose hall, as well as services including biometric security system, closed-circuit television, laundry and shuttle bus service.

“In addition to adding value to our customers, the workers’ dormitories contribute part of AME’s recurring revenue stream. This stable component complements our construction and property development segments, thus creating a resilient business model for the Group,” concluded Lee.

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