Fresh off announcing its involvement in the vaccine distribution, ACE market-listed Kanger International Berhad has secured construction work worth RM495.9 million via collaboration agreements with multiple main contractors.
Kanger will be undertaking the remaining amount of construction work at six construction projects located in Kuala Lumpur as well as in Pahang for these contactors. Kanger’s Executive Director, Mr. Steven Kuah Choon Ching said, “We are always looking for new opportunities to expand our income stream and are pleased to mark our maiden entry into the construction sector. The signing of the collaboration agreements today bodes well for the Group as it will immediately give Kanger construction contracts that will positively enhance the Group’s revenue and earnings over the next few years. This paves the way for us to enhance our track record in the construction industry and strengthen our profile when bidding for other projects in the near future.”
Under the terms of the collaboration agreements, Kanger will be responsible for the project management role and coordinate the remaining construction work of the projects. Kanger’s scope includes management of subcontractors appointed by the main contractors and the handling of financial matters which include fulfilling payments to the sub-contractors promptly.
All of the six construction projects are expected to be completed by December 2023. The progressive work done during the construction period of these projects are expected to contribute positively to Kanger’s financial performance in the next three financial years ending 31 December 2021, 2022 and 2023.
The collaboration agreements are subject to Kanger obtaining the relevant approvals from the shareholders as well as relevant regulatory authorities.