In a bourse filing dated 20 April 2022, KAB Telco (KABTEL) is forming a joint venture (JV) with MRH Empire Sdn Bhd (MRH) to venture into telecommunication infrastructure sector.
KABTEL is the subsidiary of Kejuruteraan Asastera Berhad (KAB). The later is an electrical and mechanical engineering services provider in Malaysia.
The JV company as stated under the agreement, 60 percent owned by KAB’s wholly-owned subsidiary KABTEL and 40 percent by MRH, will exclusively pursue existing and new telecommunication projects in Malaysia.
Presently, this JV is KAB’s first partnership locally to build and operate telecommunication towers.
That said, KAB is working closely with its partner to leverage its expertise in the telecommunication industry which includes supplying telco towers, building fibre optic capabilities and developing In Building Coverage (IBC) &
Small Cell.
Meanwhile, MRH has obtained approvals to survey and develop up to 1,342 sites throughout East and West Malaysia for the development of telecommunication towers. The approval to survey and develop will provide MRH with the rights to build, own and operate telecommunication facilities at all the premises of one of the government ministries of Malaysia.
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.
“This foray is the beginning of a new and exciting chapter for us. 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.” Dato’ Lai Keng Onn, Managing Director of KAB commented on the JV.
KAB managing director, Dato’ Lai Keng Onn, reiterates that the company’s venture into the telecommunication industry will grow KAB’s stable recurring income apart from its current existing businesses.
