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PETALING JAYA, April 28 -- SC Estate Builder Bhd (SCBuild) plans to invest between RM9 billion and RM13.5 billion in 10 years as it is gearing into the renewable energy (RE) business in Malaysia particularly in solar power plants and solar power on the roof.
Chairman and managing director Alex Loh Boon Ginn said currently about 90 per cent of the company’s income came from its construction segment and the balance from the building material business.
“We are optimistic on the outlook for the group in the coming year with the expansion into RE business and is targeting the business to contribute 30 to 40 per cent to our revenue in the next five years.
“This effort was in line with the group aspiration to help Malaysia achieve Low Carbon Footprint Country or net-zero carbon emission by 2050,” he said at the media briefing here today.
Loh noted the group’s subsidiary SC Estate Energy Sdn Bhd had obtained approval from the Sustainable Energy Development Authority (SEDA) to be listed under the Registered Solar PV Investor Directory on Jan 27.
SCBuild is now in the midst of hiring relevant technical personnel in order to prepare the company to apply and obtain its licence for engineering, procurement, construction and commissioning (EPCC) from SEDA and the Energy Commission (ST), he shared.
“We hoped to get the licence by the end of this year in order for us to be in full swing into this RE business,” he said.
Touching on the large investment the group intended to make for the RE business, he said the construction company intended to raise capital via loan stock or bond issuance to embark on the 10-year project.
He said SCBuild planned to build 2,000-3,000 Megawatt (MW) solar power plants within 10 years in phases with 200 to 300 MW to be build per year.
Loh said the company is currently in talks with the government to allocate it with about 3,642 hectares of land to build the solar power plants.
“Investment and development will be staggered as we also need to secure leasing land from the government.
“Initially, the project will be constructed in the Northern region -- Kedah and Perlis -- as the states have higher peak sun hour, suitable for solar power generation,” he explained.
Besides that, Loh said the group also planned to undertake the construction of 2,000 to 3,000 units of affordable houses with solar power on the roof within 10 years.
The houses are expected to be priced from RM300,000 with the initial project in the pipeline to build 500 units of houses in Kedah with a gross development cost of RM150 million and expected to commence early next year, he said.
Meanwhile, for the construction segment, SCBuild was in the midst of finalising a proposal to acquire a construction company, Visi Sempena Sdn Bhd, for RM60 million to expand its construction business.
“We are striving to secure more contracts from the government and the private sector in the construction segment as well as other related industries such as RE on solar power plants, solar power on the roofs, affordable houses and infrastructure works and related businesses to replenish our order book,” he added.