Nex­gram seeks new part­ner for project

> Wants to team up with China com­pa­nies that al­ready have a unit in Malaysia to de­velop Angkasa Icon City


KUALA LUMPUR: Nex­gram Hold­ings Bhd is on the look­out for a new part­ner to un­der­take the de­vel­op­ment of Angkasa Icon City in Cy­ber­jaya, and ap­pears to be lean­ing to­wards com­pa­nies from China that al­ready have a pres­ence in Malaysia.

“If they (Chi­nese com­pa­nies) have a company in­cor­po­rated in Malaysia, we are open to dis­cussing with them. We give them pri­or­ity but we want them to be based lo­cally be­cause the au­thor­i­ties were not com­fort­able with us join­ing ven­ture with an off­shore company,” Nex­gram’s newly ap­pointed ex­ec­u­tive chair­man Datuk Don­ald Lim Siang Chai ( pix) told re­porters af­ter Nex­gram’s AGM here yes­ter­day.

The cor­po­rate of­fices por­tion of the mixed de­vel­op­ment project has been changed into that for a ho­tel, the de­sign of which is in progress.

Nex­gram via wholly owned sub­sidiary Nex­gram Land Sdn Bhd had en­tered into a joint de­vel­op­ment agree­ment (JDA) in May with Sey­chelles Is­land-in­cor­po­rated China Asian Cap­i­tal Hold­ing Ltd (CACH) to carry out the RM1.15 bil­lion project.

How­ever, the two par­ties de­cided to pull the plug on the part­ner­ship fol­low­ing the lapse of the JDA on Aug 18, 2017 and on the ba­sis of in­abil­ity to agree on com­mer­cial terms for the project.

Nex­gram is look­ing to turn around in fi­nan­cial year 2019 (FY19), driven by its in­for­ma­tion and com­mu­ni­ca­tions tech­nol­ogy (ICT) seg­ment, es­pe­cially via its IT se­cu­ri­ties ser­vices sub­sidiary Sen­sor­link Sdn Bhd. The ICT seg­ment is ex­pected to con­trib­ute to 70% of its rev­enue next year.

The group, which recorded a net loss of RM16.19 mil­lion in the fi­nan­cial year ended July 31, 2017, how­ever, ex­pects a con­tin­ued lack­lus­tre per­for­mance in FY18 given the less than favourable global eco­nomic con­di­tions as well as cash flow is­sues.

On the prop­erty front, in view of the tem­po­rary ban on lux­ury res­i­den­tial and com­mer­cial de­vel­op­ments by the gov­ern­ment, Nex­gram is shift­ing its focus to­wards the af­ford­able hous­ing seg­ment, whereby it is look­ing to de­velop units priced from RM300,000 to RM500,000 in the Klang Val­ley and other ma­jor ur­ban ar­eas. “We are dis­cussing with a few com­pa­nies and landown­ers. We have yet to con­clude any de­ci­sion. We hope by next year, we are able to firm up some of the joint ven­tures for af­ford­able homes projects,” Lim said. Mean­while, com­ment­ing on Nex­gram’s sec­ond at­tempt to re­move three di­rec­tors of R&A Telecom­mu­ni­ca­tion Group Bhd, Lim ex­plained that it was due to the “se­cre­tive” na­ture of the R&A board, which has not been keep­ing share­hold­ers in­formed of He claimed that R&A has not called for an AGM this year. The last AGM was held in June 2016. “They have to call for an AGM and let share­hold­ers ask ques­tions, so I be­lieve they are very se­cre­tive and that is not the way to run a listed company. We want to find right peo­ple to be there.” Nex­gram holds an eq­uity in­ter­est of 6.83% in R&A. On Bursa Malaysia yes­ter­day, Nex­gram closed un­changed at 3.5 sen on vol­ume of 402,500 shares.

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