Pekat to benefit from tax breaks, government initiatives: MD Chin Soo Mau
23 Jun 2021
Tax breaks and other incentives by the government will continue to spur the development of the solar photovoltaic PV industry in Malaysia, said Pekat Group Bhd managing director Chin Soo Mau.
Initiatives such as the Green Technology Financing Scheme and the Green Investment Tax Allowance by Malaysian Investment Development Authority will spur growth in the renewable energy (RE) sector in tandem with the recovery in the construction sector.
Chin said Pekat would benefit from the favourable government initiatives, financial incentives and tax breaks for the solar PV industry, as well as the rebound in the construction sector, driven by the resumption of activities across all subsectors.
The company also stood to benefit from various solar PV programmes such as the latest rooftop solar initiative by the Energy and Natural Resources Ministry’s net energy metering 3.0 programme, he said in a statement in conjunction with its listing on Bursa Malaysia’s ACE Market today.
Government policies and incentives would act as growth catalysts in the Malaysian solar PV industry at different end-user segments like residential, commercial and industrial, Chin said.
Following its listing, he said Pekat was pushing ahead to expand its solar PV and earthing and lightning protection (ELP) business.
The company raised RM44.4 million from its public issue of 138.7 million new shares at 32 sen per share.
As at May 3 this year, Pekat had an order book of RM154.9 million, comprising RM92.8 million for solar PV projects and RM62.1 million for ELP projects.
Of this, RM117.2 million is expected to be billed in 2021, RM24.8 million in 2022, RM11.5 million in 2023 and RM1.4 million in 2024.
Based on the enlarged share capital of 645.0 million shares, Pekat is expected to have a market capitalisation of RM206.4 million after listing.