KAB signs agreement to enter telecommunications infrastructure sector


KEJURUTERAAN Asastera Bhd (KAB), a Malaysia-based electrical and mechanical engineering services provider, through its direct subsidiary, KAB Telco Sdn Bhd, is forming a joint venture (JV) with MRH Empire Sdn Bhd, a local strategic partner, to venture into telecommunication infrastructure sector.

Sixty percent of the JV company will be owned by KAB Telco and 40% by MRH Empire, and will exclusively pursue existing and new telecommunication projects in Malaysia.

This JV is KAB’s first partnership locally to build and operate telecommunication towers, and the company is working closely with its partner to leverage its expertise in the telecommunication industry, including supplying telecommunication towers, building fibre optic capabilities and developing In-Building Coverage and Small Cell.

Approvals to survey and develop up to 1,342 sites throughout East and West Malaysia for the development of telecommunication towers have been obtained by MRH Empire.

The approval to survey and develop will provide MRH Empire with the rights to build, own and operate telecommunication facilities at all the premises of one of the government ministries of Malaysia.

MRH Empire has also entered into a memorandum of understanding with a local established telecommunication operator for joint business participation and cooperation over digital connectivity and infrastructure development for the 1,342 sites.

KAB MD Datuk Lai Keng Onn (picture) stated that the company is honoured to have MRH Empire as its strategic partner to expand its reach into the telecommunication industry locally.

“This foray is the beginning of a new and exciting chapter for us,” he said.

“Based on the milestones set by the Malaysian government in terms of connectivity, we believe that we are on a path of exponential growth. We expect the development of all the sites to be ready by 2025, and upon the completion of all sites, the expected gross development value will be worth more than RM500 million.”

Aside from the telecommunication tower project, KAB has also announced several renewable energy tie-ups, building business inroads into Thailand and Indonesia.

Lai reiterated that the company’s venture into the telecommunication industry will grow KAB’s stable recurring income apart from its current existing businesses.