The cable and wire manufacturer is upbeat about the significant investments into new data centres and the nationwide rollout of 5G network
by ANIS HAZIM / graphic by MZUKRI
SOUTHERN Cable Group Bhd, which has transferred its listing status to Bursa Malaysia’s Main Market, is targeting to ride on higher demand for cables and wires as more states enter Phase 3 and 4 of the National Recovery Plan.
The group’s MD Tung Eng Hai said the company is seeing higher orders for power cables and wires, including from the power, renewable energy, telecommunications, and construction and infrastructure sectors.
“In view of Malaysia’s aim to spur the economy after the Covid-19 lockdowns, we are optimistic of higher demand for power cable and wire sales going forward, supported by new projects under the 12th Malaysian Plan and Budget 2022,” he told the media conference yesterday.
The cable and wire manufacturer is upbeat about the significant investments into new data centres and the rollout of the 5G network nationwide in line with Malaysia’s target to become a digital economy by 2030.
“We will thus look to supply not only more communication cables and wires, but also related communications equipment such as rectifiers, and power and distribution systems,” he said.
The company has supplied its products to major projects such as the Mass Rapid Transit and the Refinery and Petrochemical Integrated Development project in Johor.
As of end September, its current orderbook stands at RM324 million with projects clinched from public utility companies like Tenaga Nasional Bhd, Telekom Malaysia Bhd (TM), Sabah Electricity Sdn Bhd and Petroliam Nasional Bhd.
Southern Cable secured an RM30.4 million rectifier systems supply contract from TM for its regional hubs in Peninsular and East Malaysia.
“The contract would support TM’s ongoing expansion to accelerate digital connectivity and 5G rollout via the National Digital Network Plan plan,” Tung stated.
Southern Cable ED Wong Meng Kee said the company has been able to pass down the impact of the increase in the price of raw materials and is not facing any supply shortage of materials.
The group has sourced from more suppliers as an alternative for the local shortage supply.
Southern Cable plans to market its surflex aluminium and automotive cable for the next year.
“We are going to target our surflex aluminium for the overseas market, especially in the US, and we have also developed our automotive cables, which are now under evaluation,” added the group MD
Tung said Southern Cable expects to produce its solar cable as part of its expansion plan next year.