JAKS Resources Bhd, a construction and power holdings company specialising in water, other infrastructure projects and energy development, has indicated that the 12th Malaysia Plan (12MP) provides strong reasons for the company to penetrate into the Sabah market.
One glaring area is how the demand for electricity in Sabah continues to grow with the key issue being the lack of off-grid connectivity to meet the growing demand.
“The 12MP has highlighted strategies to improve the electricity supply chain through the development of a new power plant and the upgrade of the Sabah East-West grid transmission line to fulfil the increasing demand of electricity,” commented JAKS CEO Andy Ang Lam Poah.
“Additionally, cleaner electricity generation is highly encouraged through renewable energy power plants such as solar and hydropower plants.”
Towards his end, JAKS through its wholly owned subsidiary JAKS Solar Power Sdn Bhd has inked a memorandum of understanding (MOU) inked on July 8 with Qhazanah Sabah Sdn Bhd (formerly known as Warisan Harta Sabah Sdn Bhd) to explore opportunities to develop solar power and hydro power plants in Sabah.
To-date, the discussion in relation to the MOU is still on-going.
Accordingly, the 12MP indicated that the installed capacity of renewable energy is targeted to reach 31% of Malaysia’s total energy capacity by 2025 and by 2050, Malaysia is committed to become a carbon neutral country.
Moreover, a significant portion of the development allocation expenditure of RM400 bil under 12MP will be channelled towards the enhancement of infrastructure and basic facilities in Sabah and Sarawak.
Notably, the 1,150km Pan Borneo Highways are expected to continue. The Sabah Pan Borneo Highway project is currently 56% completed and is anticipated to complete by 2024, while the Sarawak Pan Borneo Highway is now 70% completed with full completion targeted by 2022.
The Government also aims to achieve a 98% access rate for clean and safe water and 99% accessibility for electricity supply within these states by 2025. Statistics reveals Sabah’s supply of electricity has achieved a coverage of 95% which is 4% below its 2025 target coverage of 99%.
In essence, the strategic plans under the 12MP demonstrates potential business opportunities for JAKS to expand its footprint in East Malaysia and hence, the Group remains optimistic on its future outlook, according to Ang.
“Given the above, JAKS has a great prospect in replenishing the group’s construction order book, particularly in building water treatment plants and sewage treatment, in addition to constructing highways,” he added.
