“There are opportunities for HSS Engineers to expand regionally.”
DATUK NITCHIANANTHAN BALASUBRAMANIAM, HSS Engineers chief executive officer
KUALA LUMPUR: Consultant HSS Engineers Bhd remains optimistic this year, backed by a strong RM962.5 million order book.
“Following the acquisition of SMHB Engineering, our enlarged group’s order book swelled to RM962.5 million,” said executive vice-chairman Tan Sri Kuna Sittampalam.
Two months ago, HSS Engineering completed the acquisition of SMHB Engineering Sdn Bhd for RM270 million, which served as a dual-pronged expansion into water and transport sectors.
SMHB is the lead engineering consultant in water projects such as the development of Sungai Selangor Phases 1, 2 and 3, the Pahang-Selangor raw water transfer project and the strategic planning for water distribution within Selangor and Kuala Lumpur.
On growth prospects, Kuna said the company was on a lookout for more acquisition opportunities.
“We still have RM24 million from our initial public offering proceeds, raised in August 2016, that we can tap for strategic mergers and acquisitions,” he said after the company’s shareholders meeting, here, yesterday.
Also present were HSS Engineers chief executive officer Datuk Nitchiananthan Balasubramaniam, chief operating officer Sharifah Azlina Raja Kamal Pasmah and chief financial officer Ng Kuan Yee.
Nitchiananthan said HSS Engineers was on the lookout to expand regionally because government spending for road, rail, sea and airport infrastructure in six countries — Malaysia, Indonesia, Singapore, the Philippines, Thailand and Vietnam — was expected to hit US$81 billion (RM319 billion) by 2025 compared with US$47 billion in 2015.
“There are opportunities for HSS Engineers to expand regionally. Southeast Asia’s infrastructure growth would be driven by increased population and urbanisation, accelerated mobility and demand for transportation and increase trade competitiveness,” he said.