KUALA LUMPUR (May 14): MMC Corp Bhd is optimistic the prospect for the group will be good under the new Pakatan Harapan government as the newly-minted Prime Minister Tun Dr Mahathir Mohamad has signalled that the policy moving forward will be pro-business.

"As far as our company is concerned, I think it's very good if you look at the signal that has been given. I think as you know, the current prime minister is very business friendly. He has reemphasised his approach moving forward. I think the government will be more business friendly.

"Knowing Dr Mahathir, he's basically pro-business and will be looking at creating business opportunities for Malaysia," the group's managing director Datuk Seri Che Khalib Mohamad Noh told the media after its annual general meeting today.

He added that Dr Mahathir's earlier speeches have indicated that cargo movement between China and Malaysia is set to increase moving forward.

"Being a major logistics player in the country, we're well positioned to take part in this," he said.

For the currect financial year ending Dec 31, 2018 (FY18), Che Khalib said the cargo volume for the group is forecasted to grow by about 6% to 7% with the Port of Tanjung Pelepas Sdn Bhd expected to see 10% growth.

The group will also be focusing on its port business in FY18 and could see more merger and acquisition activities as it is an area that MMC Corp sees potential for expansion.

On the rejection to MMC Corp's proposal to acquire a 20% stake in Sabah Ports Sdn Bhd, Che Khalib said an appeal letter has been sent to the state government and the group is anticipating a response now that the general election has passed.

"If we have a role in Sabah port, we should be able to tap the vast potential of Sabah ports. One is in terms of cargo movement, and more important in terms of palm oil movement. It's an area we should be looking at in Sabah. Sabah produces a lot of palm oil.

"We are still interested. Hopefully the new government will give us the opportunity," he said.

As of writing, MMC Corp's share price jumped by 14% or 20 sen to RM1.63 with about 2.8 million shares traded.