KAB sets up joint venture to expand into telecom infrastructure sector

PETALING JAYA: Kejuruteraan Asastera Bhd (KAB) through its direct subsidiary, KAB Telco Sdn Bhd (Kabtel), is forming a joint venture (JV) with MRH Empire Sdn Bhd to pursue telecommunication projects in Malaysia.

Under the agreement, the joint venture company is 60% owned by Kabtel and 40% by MRH.

The partnership is KAB’s first to build and operate telecommunication towers locally. The company leverages its experience in the telecommunication industry which includes supplying telco towers, building fibre optic capabilities and developing In Building Coverage (IBC) & Small Cell.

Meanwhile, MRH has obtained approvals to survey and develop up to 1,342 sites throughout East and West Malaysia for the development of telecommunication towers. The approval gives MRH the rights to build, own and operate telecommunication facilities at all the premises of one of the government ministries of Malaysia.

MRH has also entered into an MoU with a local telecommunication operator for digital connectivity and infrastructure development for the 1,342 sites.

The company expects the development of all the sites to be ready by 2025.

KAB managing director Datuk Lai Keng Onn said it is on a path of exponential growth based on the milestones set by the Malaysian government in terms of connectivity.

“We expect the development of all the sites to be ready by 2025 and upon the completion of all sites, the expected gross development value (GDV) will be worth more than RM500 million.”

Lai reiterates that the company’s venture into the telecommunication industry will grow KAB’s stable recurring income apart from its current existing businesses.