KUALA LUMPUR: Existing projects, particularly those in the flagship KL Sentral area, will continue to drive growth at Malaysian Resources Corp Bhd (MRCB) in the coming year, as it aims to grow its pre-tax profit by 55% for FY11 ending Dec 31.

CEO Mohamed Razeek Hussain said the group has a lot on its plate with an order book of RM1.6 billion, of which RM1 billion is in construction jobs that will last the group more than two to three years.

“We are looking for substantial growth in 2011, mainly driven by existing projects. We are quite excited about 2011 and the ETP (Economic Transformation Programme) has helped boost confidence. Everyone ... is preparing for work and MRCB hopes to be a successful participant in these projects,” he told a press conference yesterday.

Currently, MRCB has two projects under the ETP, the St Regis Hotel and Residences in KL Sentral and the River of Life project. The River of Life involves the cleaning up and beautification of the Gombak and Klang rivers.

MRCB, along with its joint venture partner Ekovest Bhd, is still in negotiations with the government on the scope and cost of the River of Life project. MRCB and Ekovest received the letter of intent for the project from the government on Feb 22.

The project is an Entry Point Project identified in the Greater Kuala Lumpur National Key Economic Area under the ETP. It has been reported that the MRCB-Ekovest JV’s portion could be worth RM8 billion.

Razeek noted that the potential of real estate development in the River of Life project was enormous and MRCB hoped to be able to participate in it.

MRCB has tendered for RM2 billion worth of projects, including several building projects and packages of the LRT extension project.

“We have quite a lot on our plate. We have other projects in the pipeline. Penang Sentral has found its legs. We have submitted plans for approval,” Razeek said.

Most of the KL Sentral projects are on track and are expected to be completed by end-2012.

MRCB also expects its Eastern Dispersal Link (EDL) expressway in Johor Baru to be completed by September or November this year, and Razeek said tolling could start in February 2012.

As well as its target to grow pre-tax profit by 55% to 150 million for FY11, the property developer and construction group is aiming for a 30% increase in revenue to RM1.3 billion.

For FY10, it posted a net profit of RM67.3 million compared with RM34.6 million in FY09. Revenue crossed the RM1 billion mark from RM921.6 million in the previous year.

Razeek said there have been no developments in the 3,300-acre Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh as yet.

MRCB is thought to be poised to participate in the mega-development of the RRIM land given that the land has been alienated to the Employees Provident Fund (EPF), which is MRCB’s largest shareholder with a 41.53% stake.

On the Pudu Jail site, Razeek said, “We have an interest. We are one of the bidders.” He declined to elaborate on the details of the bid.

He also said there were no plans for any M&As for now, given the failed merger of MRCB and IJM Land Bhd.

This article appeared in The Edge Financial Daily, April 5, 2011.