Ranhill relocates corporate HQ from KL to Johor Baru

KUALA LUMPUR: Ranhill Holdings Bhd has relocated the current corporate headquarters in Kuala Lumpur to Johor, in a bid to strengthen its core business in the southern region and Sabah and Sarawak.

This will see a significant improvement in organisational and operational efficiencies for the group in the country.

Johor Baru is the site of its largest operating centre, SAJ Ranhill Sdn Bhd, followed by others in Kota Kinabalu, Sabah, and various third-tier cities in China.

Ranhill president and chief executive Tan Sri Hamdan Mohamad said streamlining operations will enable its businesses to progress to the next level. While rising operational costs in Kuala Lumpur contributed to the move to a certain degree, there is also immense potential to be tapped in Johor Baru, which has seen tremendous development over the past decade, he said.

“By relocating, the group can adopt a more agile organisational structure. Being closer to our three main operating sites will also support our aim to be more relevant and responsive to our businesses and key external stakeholders.

“In addition, the move will allow us to have a more efficient cost management structure in place and further develop talent as we strive for operational excellence at our three operating centres,” Hamdan said in a statement.

Through SAJ Ranhill, the group is currently the exclusive water operator for Johor, providing water supply services to the second most populous state in Malaysia. It remains the group’s key business given its mandate as the sole water service provider in Johor, contributing almost 75% to Ranhill’s total revenue in FY2016.

Over the years, SAJ Ranhill has consistently fulfilled key performance indicators set by the National Water Services Commission (SPAN) since the migration to a licensing regime for water supply services in 2009.

The group expects to see further growth on the back of increasing demand for water in Johor, particularly given new housing developments and industrial areas.

In December 2016, SAJ Ranhill inked a memorandum of understanding with Indah Water Konsortium to conduct a joint review on the joint billing exercise with the intention to pursue the integration of water and sewerage services in Johor, which is expected to contribute to the group’s profitability.