MMC looking to expand overseas to strengthen presence
19 May 2020
MMC Corporation Bhd is looking to expand overseas to enable the group to establish a bigger presence that will lead to more opportunities.
Its group managing director Datuk Seri Che Khalib Mohamad Noh said, however, Malaysia will remain the primary location of operations for the group.
“The management is of the view that replicating the company’s proven business model overseas could be an effective strategic move towards realising greater growth, given suitable opportunity.
“Overseas expansion reduces our dependence on a single geographic location and further diversifies our income. As such, we are constantly on the look-out to venture into industries in which we have existing experience and expertise, and countries where we are already familiar with,” he said in MMC’s 2019 Annual Report.
Besides, the group will also continue to leverage on its inherent strengths towards realising set business goals and targets, while creating value for stakeholders.
Che Khalib said the company’s businesses operate in key sectors of the economy and play vital roles in their respective value chains, nation building and the nation’s economy.
He said there are also new opportunities to tap into and the Alam Flora acquisition has opened the pathway to penetrate into the high potential environmental services niche segment, and in Malaysia, the environmental services sector remains a largely untapped market with considerable potential for growth.
“With regards to energy, the ongoing focus on renewable energy especially solar and small hydro provide opportunities for the group. Having secured the biogas and small hydro projects, we are well-placed to expand further when bids for large-scale solar are called,” he said.
The reintroduction of competitive bidding, opening up of fuel sourcing, access to transmission grids and the liberalisation of the retail segment are likely to enhance efficiency along the value chain and in turn, drive down production costs, and this will generate steady income for the group, he said.
In addition, the water industry also presents encouraging opportunities, given the stronger focus placed by the government towards achieving water security, there has been a growing shift towards addressing water issues, by both the private and public sector.
He said the group’s engineering division may also undertake studies on existing government plans and where possible, recommend more effective alternatives based on its own proposed concepts and designs, whereby operational excellence and cost efficiency will be further prioritised.
Meanwhile, for the industrial development division, industrial property remains comparatively resilient compared to residential or commercial property.
He said foreign direct investment appears to be improving and the group are ready with a vast amount of infra-ready landbank, mainly located in high-growth industrial areas such as Senai, Johor and Kulim, Kedah.
“Our ports and logistics division will continue to serve as the core revenue generator for the group. The focus remains on responding to increasing competition by expanding capabilities, strengthening our partnership with the shipping alliances, and targeting the hinterland to boost cargo volumes. We will continue to focus on optimising the synergistic possibilities between our ports, both commercially and operationally,” he added.