It's a govt mandate: Fajarbaru

It's a govt mandate: Fajarbaru
Business Times
Published: 2008/06/12

ESTABLISHED companies are partnering smaller firms to build parts of a RM3.45 billion rail contract because of a government mandate.This was explained by Datuk Low Keng Kok, managing director of Fajarbaru Builder Group Bhd. Fajarbaru is one of the companies that won a slice of the rail job.About three large companies have won contracts under a project to lay parallel railway tracks between Seremban and Gemas in Negri Sembilan.However, IJM Corp Bhd, Fajarbaru and Loh & Loh Corp Bhd had to partner smaller firms. IJM, for instance, won a RM490 million job but had to share 30 per cent of the work with Norwest Holdings Sdn Bhd.
Fajarbaru is partnering LTP Development Sdn Bhd, a Class A contractor, Low said. The contract is worth RM316 million."The federal government mandates that at least 30 per cent of the double tracking of railway packages go to Bumiputera contractors," he said.