KUALA LUMPUR: Selangor Dredging Bhd is “refocusing” its efforts in Singapore where it has completed five property development projects since entering the market in 2004, on anticipation that the economy and property prices there will be trending upwards.

Selangor Dredging recently bought two land plots in the city state — one in Draycott Park measuring 17,442 sq ft and the other in Serangoon Road measuring 31,705 sq ft — which it plans to develop into condominium buildings with a combined gross development value (GDV) of over RM900 million.

“We know Singapore’s economy and property prices have bottomed up and are in the midst of growing. So we will refocus on our efforts in Singapore for the next six to 12 months,” the group’s managing director Teh Lip Kim told reporters after its annual and extraordinary general meetings here today.

For the Draycott Park project, Teh said the property will be sold at about S$3,200 per sq ft while the Serangoon Road development will be priced at about S$1,800 per sq ft. Both projects are expected to be launched in the first half of 2018.

“Our experiences in Singapore have been very good. Every unit from the previous five projects have been sold, which is why we are [going ahead] with two more. Moving forward, I think we will continue to have more property developments in Singapore,” Selangor Dredging chairman Eddy Chieng said.

“As you know, there are other buyers of different nationalities in Singapore besides the locals such as the Indonesians, Thais and Indians as well as others from all over the region who are willing to buy properties in Singapore,” Chieng added.

Still, cementing its position beyond Malaysian shores does not mean Selangor Dredging is abandoning its business opportunities domestically.

It presently has land in Serdang and Melawati in the Klang Valley, and a plot in Batu Ferringhi, Penang sized at 18.9 acres, 23.6 acres and 5.8 acres respectively. Further, the group will be busy with two local projects, namely UNA in Jalan Peel, Cheras, and the third phase of SQwhere in Kota Damansara.

UNA, with 316 units of serviced apartments, together with Phase 3 of the Sqwhere mixed development, will have a combined GDV of more than RM600 million.

“[Klang Valley] is our home ground, so we will continue to pursue development activities and opportunities here,” Chieng said.

And while Selangor Dredging remains cautious of the property market’s outlook going forward, it is confident of its sustainability, given the strategic locations of its landbanks.

“When it is cold, you dress up in thick clothes and vice versa when the weather is hot. It’s the same with business — you adapt according to the economic climate. If it is conducive, we will develop more lands but if it is still soft and weak, we can afford to hold back projects because we have existing and ongoing ones which will last us for the next few years,” Chieng said.

“Our landholdings are in established areas, so we are confident of our future,” he added.

Meanwhile, Teh said Selangor Dredging's decision to return to the mining business was because it expects to benefit from the current exchange rate.

Earlier this year, Selangor Dredging announced it is buying a 20% equity interest in Webcon Mining Sdn Bhd for some RM20 million. Webcon is involved in the mining, extraction, excavation and sale of iron ore in Bukit Besi, Terengganu.

For over two decades since its establishment in 1962, Selangor Dredging's sole business was tin mining and was the first Malaysian company to construct and operate a dredge. It operated two dredges in Dengkil, Selangor.

“We wanted to invest in certain companies, whereby cost is denominated in ringgit but sales or exports are in US dollar. So while we produce in Malaysia, we sell the products in US dollar,” Teh said.

“Additionally, the people who sold us the shares guaranteed us there are six million tonnes of iron ore in that piece of land. As the machinery has been set up and production has started, there is a level of certainty in income stream,” she added.

The first bulk of income from its mining division is expected to be recognised beginning 2018, Teh said.

Selangor Dredging shares inched up 2 sen or 1.79% to close at RM1.14 today, giving it a market capitalisation of RM477.26 million.