MAIN Market-listed company DPS Resources Bhd has sealed a joint venture agreement (JVA) with agro-tourism player Mutiara Mahajuta Sdn Bhd for the development of a 170-acre land in Alor Gajah, Melaka.
The collaboration entered through the former’s wholly owned subsidiary DPS Energy Sdn Bhd will drive innovative projects in agro-tourism, crops, bio-farming, renewable energy (RE), solar farms and aquaponics.
DPS Energy which specialises in the construction and installation of solar farms, solar photovoltaic systems, AI (artificial intelligence) data centres, battery energy storage systems, gas turbine and power plants and other green energy and engineering work services is helmed by DPS Resources’ executive director Eugene Sow Chuan Sheng.
On the other hand, Mutiara has secured collaborative agreements with individual landowners for a comprehensive, long-term development of the land in three phases over an initial tenure of 30 years with an option for a 15-year extension.
The first phase of this ambitious project will focus on developing agro-tourism attractions, cultivating crops and establishing bio-farms and aquaponics systems.
The second phase will shift focus to RE, primarily through the development of a solar farm while in the third phase, Mutiara will undertake mixed development projects, including residential, commercial and industrial components.
The project duration is set between 21 to 25 years with DPS Energy holding the first right of refusal for further solar farm development or mixed-use projects. The profit-sharing structure allocates 35% of net profits to Mutiara and 65% to DPS Energy.
“Our collaboration with Mutiara Mahajuta is a strategic move to leverage our expertise in green energy and engineering services,” commented DPS Resources’ executive chairman Tan Sri Sow Chin Chuan.
“This project which aligns with our sustainable growth strategy also contributes to Malaysia’s renewable energy targets. We are committed to driving innovation in agro-tourism and RE while ensuring long-term benefits for our stakeholders and the community.”
Strategically located, the said land offers accessibility within 20 minutes to the Simpang Ampat Highway to Kuala Lumpur and 15 to 20 minutes to key locations such as Alor Gajah, Taman Cheng and the Melaka town.
This advantageous location combined with the project’s green environment and excellent sunlight exposure makes it ideal for solar energy production, thus further ensuring the project’s long-term profitability and contribution to the group’s financial stability.
More broadly, the JVA underscores DPS’s commitment to sustainable development which aligns with national goals for RE as well as environmental, social and governance (ESG) standards.
Malaysia RE Market is projected to grow significantly from 9.68 gigawatts in 2023 to 12.04 gigawatts by 2028 driven by increased investments and a national shift towards renewable energy.
The project will also create work and entrepreneurship opportunities while contributing to national food security and reducing the group’s carbon footprint in line with ESG perspectives.
At the close of today’s trading, DPS was up 2 sen or 3.33% to 62 sen with 1.75 million shares traded, thus valuing the company at RM152 mil. – July 23, 2024
