KUALA LUMPUR (Nov 3): Prestariang Bhd announced that it has signed a memorandum of understanding (MOU) with MIE Corporate Holdings Sdn Bhd to form a joint venture company (JVCo) for the supply of manpower - local and foreign - to the oil and gas (O&G) industry, including for the Refinery and Petrochemicals Integrated Development (RAPID) Project in Pengerang, Johor.

Before forming the JVCo, Prestariang, which operates University Malaysia of Computer Science & Engineering, will conduct a feasibility study covering market demand, business model, sourcing as well as operations and handling requirements, and economic assessments, it told the local bourse this evening.

On completing the study, Prestariang said it will take a 51% stake in the proposed JVCo while MIE will hold the remaining 49%.

Prestariang said the proposed JVCo will enable both parties to establish a scalable and profitable position in providing qualified and certified manpower solutions to the O&G industry.

“This venture will enhance Prestariang’s growth prospects in providing various professional and vocational courses for upskilling and reskilling of human capital in meeting the growing demand of the industry,” said Prestariang chief executive officer Dr Abu Hasan Ismail in a media statement today.

Meanwhile, MIE Corp views the joint-venture with Prestariang as a way forward for the group to ensure the smooth running of its projects, said director Datuk Khoo Chee Hiong in the statement.

MIE Corp, along with its partners, had in September bagged a US$1.3 billion contract to build a refinery unit on a 6,242-acre RAPID site.

According to Prestariang, MIE Corp can absorb locally-trained manpower as well as source for foreign skilled manpower for its O&G and related industries’ projects.

“When the project is off the ground, we would require mass acquisition of certified and skilled manpower. Prestariang is already established in acquiring, training, skilling, re-skilling, up-skilling, placing and managing local manpower for the O&G and ICT [information and communication technology] industries,” said Khoo.

Prestariang expects the MOU to “contribute positively” towards its growth plan, adding that it is in the group’s best interest.

“Such collaborations will not have any effect on the share capital and substantial shareholders’ shareholding of Prestariang,” it added.

Shares in Prestariang have been trending downward since peaking at its record high of RM2.34 on July 22 this year. The stock close 3 sen lower to RM1.67 today, giving it a market capitalisation of RM813.12 million.