Gamuda to invest RM7.5 billlion in 2016 in construction division

Gamuda to invest RM7.5 billlion in 2016 in construction division

KUALA LUMPUR, Dec 7 — Gamuda Bhd will invest about RM7.5 billion in financial year 2016 in its construction division, said Group Managing Director Datuk Lin Yun Ling.

He said for property development, Gamuda has invested RM2 billion in three townships and allocated another RM2 billion for infrastructure, interchanges and roads for the townships.

Lin said for 2016, the company will invest an additional RM3.5 billion in property development, bringing its total investments to about RM7.5 billion.

“We will obtain the kind of gearing that we are comfortable with of about 0.7% of our equity,” he told reporters at a press conference in conjunction with the company’s annual general meeting here today.

Lin said for calendar year 2015, Gamuda has spent about RM4.5 billion in Vietnam, Singapore and Melbourne, among others.

“In terms of capital expenditure (capex), usually we don’t see a fine line for every 12 months of the year, but by and large, the construction division doesn’t require very much capex, aside from investments,” he said.

Commenting on the outlook of the construction industry, he said it should be positive as the government is embarking on a lot of railway projects, adding it is a good time to make capital investments and analyse the cost structure to help mitigate the slowdown in the economy.

“These projects have many multiplier effects and benefit economic growth, generating a lot of jobs and consumer demand,” Lin said.

On plans to venture abroad, Lin said the company would focus on deepening its investments in the seven countries it operates in — Malaysia, Vietnam, Singapore, Taiwan, India, Australia and Qatar.

Meanwhile, on the Penang Transport Master Plan (PTMP), Lin said Gamuda will conduct an impact study on the feasibility of a proposed RM27 billion reclamation project, the findings of which will be displayed to the public in six months.

“The important thing now is what the public think about it, whether they oppose it or otherwise.

“The impact studies would be analysed for the project’s benefits, costs, disadvantages or adverse impact.

“This would be considered a more holistic approach,” he added.

–BERNAMA

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