Brem bidding for jobs worth up to RM2b

PETALING JAYA: Brem Holding Bhd, which is involved in civil engineering and construction, property development and water supply services, is tendering for up to RM2 billion worth of projects.

“We hope that we can secure about 20% of our (overall) tender bids,” managing director Tan Sri Khoo Chai Kaa told reporters after the group’s 37th AGM here yesterday.

He said Brem’s order book stands at RM600 million, and this will keep the group busy for the next two to three years.

On its existing water supply system project in Papua New Guinea (PNG), Brem’s only one abroad, Khoo said the group is still waiting for the authorities’ approval for the second phase of the RM1.2 billion project.

“We are still waiting for good news for the PNG water works. We have spent a lot of time on the presentation for the second phase ... (so far) it sounds good from the authorities.”

Khoo said Brem is also looking for new overseas opportunities.

In 1997, the group secured a 22-year concession agreement to build, operate and transfer a water plant in PNG through its indirect subsidiary company, PNG Water Ltd. The concession period will end in June 2019.

As the PNG government is expected to upgrade the country’s water pumping distribution system, Brem aims to secure a new contract there for water supply and services as its current concession will be expiring next year.

Brem’s current water plant project contributed about 17% to its revenue for its financial year ended March 31, 2018 (FY18).

On the property segment, the group is expecting to increase property sales, boosted by aggressive marketing plans, through its subsidiary company, Harmony Property Sdn Bhd. It is currently developing residential properties in Prima Pelangi, Segambut Dalam, Kuala Lumpur.

Nevertheless, Brem expects the short-term prospect of the property industry will remain challenging.

“Hard times (right now). We expect our margin to remain in a range of 5% to 10%,” Khoo said.

For the first quarter ended June 30, 2018, the group’s net profit jumped 36.6% to RM4.97 million, compared with RM3.64 million in the previous corresponding quarter.