KUALA LUMPUR: Gadang Holdings Bhd plans to participate in the open tender for the three work packages under the Sabah portion of the Pan Borneo Highway worth RM925 million in the first quarter of 2020.

This is in addition to some RM1 billion worth of construction jobs it has already bidded for.

Khew Check Kiet, managing director of Gadang’s construction division, said the group is also awaiting the opportunity to submit its bids for the Sarawak portion of the Pan Borneo Highway, as well as the East Coast Rail Link (ECRL) project, for which it has been shortlisted.

Khew, who was speaking to reporters after Gadang’s annual general meeting yesterday, said the group expects the coming year to be challenging, especially for its construction division.

“The recent Budget [2020] announced by the finance minister [shows] that the allocation for government projects is quite minimal as compared to the previous year’s … and most of the budget [allocations] were for ongoing projects.

“In Peninsular Malaysia, there is not much of infrastructure work. That is why [we think] it is going to be a challenging year, with so many [market] players chasing after the limited projects that are going to be rolled out,” he said.

Khew said Gadang had made bids for a hospital project in Pasir Gudang, a kiosk in the Tun Razak Exchange (TRX), a highway project in Penang, as well as bridgework in Sarawak.

The total value of the bids submitted adds up to about RM1 billion, and any outcome is expected earliest by next year, said Gadang executive director and chief financial officer Kok Pei Ling, who was also present.

Gadang had a balance order book of RM1.14 billion, comprising the Klang Valley Mass Rapid Transit package V206, Cyberjaya Hospital, TRX tunnel, public realm and steel bridge, as well as Refinery and Petrochemical Integrated Development projects as at August.

On Oct 14, Works Minister Baru Bian told the Dewan Rakyat that the government had agreed to award another three work packages for Pan Borneo Sabah in the first quarter of 2020 (1Q20) — namely packages 28, 29 and 30 — which will involve upgrading work at the Telupid and Beluran Exits, spanning almost 60km and costing RM925 million.

Apart from 12 other packages that were earlier awarded, the remaining 20 packages are expected to be tendered under the 12th Malaysia Plan between 2021 and 2025, subject to the federal government’s approval, the minister said.

Meanwhile, Kok said Gadang had set up a company in Singapore and had started tendering for potential bored piling subcontracts.

The group is allocating about RM20 million for the purchase of two to three units of bored pile machines next year to support its Singapore venture.

Over at its property division, Gadang Land Sdn Bhd chief operating officer Yu Kang Huai said the group is targeting RM272.6 million in sales for the current financial year ending May 31, 2020 (FY20).

The bulk of the sales is expected to be generated from Laman View at Maple Residence in Cyberjaya, The Vyne Residensi at Salak South here, and Elegan at Putra Perdana in Puchong.

As at 1QFY20 ended Aug 31, Gadang had achieved RM34 million in sales value.

Planning is also under way for the group’s 21-acre (8.5ha) Kwasa Damansara land which, according to Yu, will be used to build 780 residential units comprising both high-rise and landed properties, worth RM707.3 million in gross development value.

Gadang’s share price eased half a sen to 72 sen yesterday, bringing it a market capitalisation of RM524.2 million.