Friday June 8, 2007

By THE STAR

PETALING JAYA: Wijaya Baru Global Bhd expects to commence work on a mixed development project, which has an estimated gross development value of RM2.22bil, by mid-2008.

Chairman Datuk Seri Abdul Azim Mohd Zabidi said after the company AGM and EGM yesterday that shareholders approved the proposed purchase of 379.03 acres of leasehold land from Pulau Indah Marina Resort Sdn Bhd for RM130mil.

“We (via associate company Wijaya Baru Sdn Bhd) are now developing the Port Klang Free Zone, so the land will complement this zone,” he said, adding that the project would enhance the company’s property development and construction activities.

He said the gross development cost of the new project would be about RM1.69bil and completion was slated for end-2012.

Abdul Azim said the associate company was also in negotiations with the Government for two sizeable projects. If awarded the projects, the group’s revenue could receive a significant boost, he said.

Last year was a challenging year for Wijaya Baru, as it had to deal with reductions in monthly timber quota to as low as 10,000 cu m from 23,500 cu m in the first half of 2005.

“We applied for additional quota earlier this year with the authorities in Sarawak and hope to hear from them soon,” Abdul Azim said.

Going forward, the group intends to focus on its construction and medical divisions to offset the performance of its timber business.

Abdul Azim said Wijaya International Medical Centre Sdn Bhd’s (WIMC) showed improved contributions to group revenue last year.

“WIMC registered more than 4,000 medical records in 2006 from 548 in 2005,” he said, attributing this to a rise in the number of patients, including those from overseas.

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