AME thrives from global companies’ investments in Southeast Asia
26 Aug 2020
AME Elite Consortium Bhd says it is benefitting from higher investment flows into Malaysia by global companies, as its i-Park industrial parks capture the uptrend of companies relocation due to supply chain diversification and protracted US-China trade tensions.
AME had, in June and July respectively, clinched new deals to custom-build industrial properties for Enics AG and HQ Pack Sdn Bhd at its i-Park industrial parks.
The company is also building two new dormitory blocks for [email protected] to cater to growing demand from its enlarging i-Park clientele and incoming (foreign direct investment) FDI and (domesyic direct investment) DDI.
“FDI into Malaysia grew 3.1 per cent to RM31.7 billion in 2019, from RM30.7 billion in 2018,” AME said in a statement today.
In the first quarter of 2020, the Malaysian Investment Development Authority reported that it had approved RM37.4 billion of investments in the manufacturing, services and primary sectors, with RM11.1 billion from FDI and RM26.3 billion from DDI.
Capital-intensive projects continue to dominate the approved investments for the manufacturing sector.
A total of 23 projects with investments of at least RM100 million or more accounted for 86.5 per cent of approved investments for the sector in the same quarter.
AME said Johor remained one of the top states contributing to the total approved investments for the first quarter of 2020, highlighting the state’s attractiveness as both an FDI and DDI destination in Malaysia.
AME group managing director Kelvin Lee Chai said as Malaysia continued attracting FDI and growth-centric DDI, it had received increasing number of enquiries for its i-Park industrial properties.
“In the meantime, we are undertaking capacity expansion of our i-Stay workers’ dormitories to meet growing demand from existing i-Park clients, as well as to cater to increasing clientele in the future.
“Additionally, we offer i-Park clients the flexibility of choosing between custom build-and- transfer or long-term leasing of industrial properties, as per their requirements.”
Lee added while continuing to seek new sales, it was also actively looking for suitable landbanks in various states in Malaysia as part of its long-term growth strategy.
For the first quarter ended June 30 2020, AME’s property development and construction and engineering services segment faced operational disruptions due to the MOvemnet Control Order.
The temporary inactivity led to lower revenue of RM54.7 million and net profit to shareholders of RM5.3 million in Q1, compared to the previous corresponding quarter’s revenue of RM94.4 million and net profit to shareholders of RM13.1 million.
The company’s property investment and management services segment recorded 44.6 per cent higher revenue of RM8.7 million compared to RM6.0 million previously, while segment operating profit rose 39.6 per cent to RM7.0 million from RM5.0 million previously.
This was achieved on the back of increased occupancy rates and rental income from the company’s i-Stay workers’ dormitories, as well as higher rental income from leasing of industrial properties, both of which cater to its expanding i-Park clientele.
Source: NST Posted on : 26 August 2020