New Straits Times, Photo Credit to New Straits Times
clock 12-04-2019
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Cahya Mata Sarawak Remains Confident Despite Goverment Change

Cahya Mata Sarawak Bhd (CMSB) is in the process of getting an extension for general construction and maintenance activities for 6,260 kilometres of roads in the state of Sarawak before the contract expires in June this year.

Group Chief Executive Officer Datuk Isaac Lugun said the company have held the concession for several years now and confident in maintaining large infrastructure works despite the change of government.

"We are confident of getting it (extension)," Lugun said when asked what would be the projected loss of revenue if the firm fails to gain the concession.

Lugun also expressed confident that CMSB's role as the Pan Borneo Highway's project delivery partner (PDP) will not be compromised despite the project is now being reviewed by the Pakatan Harapan government.

"We have a firm contract signed with the government. If there is a change, it's just the model change to the PDP. They want a turnkey contractor, but haven't disclosed how the turnkey contractor model would work," he said.

CMSB has been awarded package six for the highway and a major supplier of construction materials for the project at an approximate cost of RM16 billion.

Lugun, who was a speaker and panelist at the 8th Bursa Malaysia-Hong Leong Investment Bank Stratum Focus series themed, "Sarawak: Journey in Transformation", also denied CMSB's links to former Barisan Nasional Sarawak Chief Minister and current Governor Abdul Taib Mahmud and his family.

"The Employees Provident Fund, Sarawak Economic Development Corporation and Lembaga Tabung Haji shares in CMSB are more substantial and cumulatively stand at 26.63%," he said when asked on shareholding in the firm.

"Foreign holdings are at 15%, which is the largest amount of foreign shareholding in Sarawak in comparison to Taib's shareholding."

It should be noted however that CMSB's share price dropped significantly to RM2.16 per share on May 25, 2018 and after the 14th General Elections before slowly recovering.

Regional Corridor Development Authority (RECODA) Chief Executive Officer Datuk Ismawi Ismuni who was also present said total investments secured for Sarawak Corridor of Renewable Energy (SCORE) is RM33.64 billion from 22 projects approved thus far.

He also shared that RECODA is studying the possibility of developing a smaller dam in Lawas with a capacity to generate 200 megawatts of electricity.

"This is is part of SCORE overall goal as we would like to attract industries that use power or electricity for their activities," he said.

"However, we also realise there will be limitations in terms of power supply and have a good number of energy intensive industries already operating in the SCORE. We will continue to attract downstream industries which consume less electricity, but are knowledge and high-technology based."

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