Central Global Berhad (CGB) through its wholly-owned subsidiary Proventus Bina Sdn Bhd (PBSB) has accepted a Letter of Award (LOA) from Mahiribu Sdn Bhd yesterday for the construction of the water supply reticulation system project for 2018 and 2019 worth RM15.2 million.
The industrial hi-temp masking tapes manufacturer and construction player said the project, which is under the purview of the Rural and Regional Development ministry, will see PBSB taking on the supply of plant, machinery, labour and material required for the construction and completion of the infrastructure.
CGB group managing director Chew Hian Tat said the project is expected to commence upon acceptance of the LOA and completed in April 2025.
“With this contract, CGB’s outstanding orderbook total stands at RM322.8 million. Once again, we are honoured to have been recognised for our capabilities in the infrastructure construction sub-sector.
“We strongly believe that the construction sector and demand for infrastructure will continue to grow robustly as proven by the 8.1% year-on-year growth in value of work done to RM32.4 billion between April and June 2023.
“From this figure, civil engineering accounted for the largest proportion of the sector’s output at 37.4% or RM12.1 billion,” said Chew in a statement yesterday.
CGB, through its wholly-owned sub-subsidiary RYRT International Sdn Bhd, has also been active in the civil engineering sub-sector in Sabah having bagged approximately RM464 million in contracts since 2020.
He further elaborated: “Sabah will continue to be our focus in the construction sector due to the sector’s growing prospects.
“This stems from the continuation and acceleration of major infrastructure projects in East Malaysia such as the Trans-Borneo highway in Sabah and Sarawak, Sabah-Sarawak Link Road Phase 2 as well as utility projects.
“To ensure a healthy replenishment of order book, we continue to actively bid for infrastructure projects amounting to RM4.4 billion as of 30 June 2023.”
Barring any unforeseen circumstances, Chew added the project is expected to contribute positively to the Group’s financial performance in the long run.
