MRCB eyes waste-to-energy business

PETALING JAYA: Malaysian Resources Corp Bhd (MRCB) plans to venture into the renewable energy segment as it seeks to diversify its business presence and strengthen its revenue streams.

The group, which is principally involved in construction and property development, said that it has identified the waste-to-energy power generation as its future market, within the renewable energy segment.

In its latest 2019 annual report, MRCB group managing director Mohd Imran Mohamad Salim pointed out that the group plans to leverage on its existing engineering skill sets, particularly in the construction of power transmission lines and power plants, to venture into new markets.

“Apart from our ability to exploit our expertise in an area that is currently in high demand, the renewable energy business will also provide recurring long term revenues, which will help us diversify our current revenue stream and reduce earnings volatility that is inherent in our existing business model,” according to Mohd Imran.

He further added that there is an urgent need for Malaysia to move towards more sustainable household waste management solutions and clean energy production to reduce the impact on the environment and general well-being of the population.

This was largely because the space for landfills are growing increasingly scarce, particularly in urban areas, and total household waste is forecast to increase in line with the country’s population growth.

Commenting on the outlook of MRCB’S core businesses, he said the group possesses a “healthy pipeline” of property unbilled sales totalling Rm1.6bil and a large external client construction order book of Rm21.8bil.

“Revenue and profits from these projects will continue to be progressively recognised in line with construction progress in 2020 and beyond.

“Our strategic urban land bank of 323 acres, worth Rm32bil is also poised to provide a sustainable stream of revenue from development projects spanning 15 years and beyond,” he said.