News: Crest Builder Targets RM600m Worth Of Construction Contracts This Year

Jun 13, 2019

Seeing an upside in the construction tender market, Crest Builder Holdings Bhd aims to secure RM500 million worth of construction contracts in the second half of 2019. 

This is in line with the company’s goal of having total construction contract wins of RM600 million this year, reported The Sun Daily.

So far, the company has secured RM100 million worth of projects, taking its current construction order book to RM1.4 billion, revealed managing director Yong Shang Min.

He expects the revenue contribution from the construction and property development segments to stand at a 75:25 ratio this year, compared to 50:50 in 2018.

Considering the gloomy outlook for Malaysia’s construction sector, Yong said the group has been selective and careful in tendering for projects.

“If you look at the general market, we agree it’s a little sluggish but it is bottoming up already. Based on the tender trends, it’s on the upside and currently moving upwards. We see a lot more prominent developers calling tenders and prequalification (exercise) for their projects. We expect the tender market to be busier,” he added.

Read: Check out the latest projects in town! 

Meanwhile, the group is unfazed by the delays in its projects. Three of the company’s projects – the development of the Malaysian Rubber Board (MRB) land in Jalan Ampang and the Kelana Jaya LRT area as well as the Latitud8 project in Dang Wangi –have been delayed for at least three years.

Yong noted that these projects are still awaiting the local authority’s approval, such as zoning for the Kelana Jaya LRT area as well as road alignments and land size reduction for the MRB project.

“The delay of the projects may turn out to be positive. If you see the last two years, the property trend was on the downside. There’s no point launching something when it’s on the downtrend. We rather launch it when it’s bottom up or on the upside,” he said.

Read: How these cities have performed in Q1 2019

Crest Builder’s main activity is the construction of high-rise buildings, with them securing construction contract wins amounting to RM625.9 million in 2018.

 

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M Jamil Ali
Senior Real Estate Negotiator
REN: 03920
ACEAKL ESTATE AGENCY SDN. BHD
hartanahmetro@gmail.com
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