MRCB on Saudi Sentral and Penang Monorail

MRCB to formalise Saudi venture this year
Published: 2008/03/27 BUSINESS TIMES
INVEST MALAYSIA 2008 CONFERENCE

MALAYSIAN Resources Corp Bhd (MRCB) is expected to formalise its Saudi Arabia venture to develop a US$2 billion (RM6.4 billion) property and urban transportation hub this year. "We hope to replicate what we've done here in KL Sentral," MRCB group managing director Shahril Ridza Ridzuan said. He declined to identify the group's partner in Saudi Arabia. KL Sentral, Malaysia's biggest bus and rail hub, include strategically located hotels, apartments and government offices. Shahril was speaking to reporters at the sidelines of the two-day Invest Malaysia 2008 conference held in Kuala Lumpur yesterday.

In January, Syarikat Prasarana Negara Bhd had given a letter of intent for the Penang monorail project to MRCB and its consortium partners, namely Penang Ports Sdn Bhd and Scomi Group subsidiary MTrans Transportation Systems Sdn Bhd.

There is concern that a change in government in Penang could evoke investment uncertainty.
Asked to comment on the proposed Penang monorail project, Shahril replied, "it cannot be said there is a delay or not when in the first place, the project has not been awarded." He also said it was premature to talk about the estimated cost of the proposed Penang monorail project as the route has not been finalised. While the project will be funded by the federal government, land on which the rail will run through will come under the state government's purview.

"Let us not speculate on what is going to happen. Both the federal and state governments have stated their intentions to implement mega projects, they will finalise the terms of the project," he said.

On key performance indicators for the current financial year, Shahril said the MRCB is on track to achieve a pre-tax profit of RM90 million on RM1.2 billion. "We're optimistic of a 30 to 40 per cent growth from last year," he said.