KUALA LUMPUR (Dec 21): Stage and express bus service operator Epicon Bhd (formerly known as Konsortium Transnasional Bhd) has partnered with PNSB Construction Sdn Bhd (PCSB), a subsidiary of Permodalan Negeri Selangor Bhd (PNSB), to develop an affordable housing project in Rawang, Selangor.

In a filing to Bursa Malaysia, Epison said it has inked a consortium agreement with PCSB to establish a consortium to develop the housing project, Rumah Idaman MBI, that will have 2,251 housing units, and to explore future collaborations of such nature.

PCSB is predominantly involved in constructing and developing various projects under PNSB and the Selangor state government. PNSB is a subsidiary of the Selangor state government, under the supervision of the Menteri Besar Inc (MBI).

The collaboration between Epicon and PCSB does not amount to an award of contract at this juncture, Epicon said.

Under the consortium agreement, Epicon is responsible as the main turnkey contractor of the project and if awarded, shall lead the consortium to undertake and complete the project’s construction.

Epicon may identify and recommend a qualified party to be the project’s property developer, subject to PCSB consent, and to ensure that the project is completed on schedule.

It is also required to meet all financial commitments for the project, provide all necessary resources, and carry out all work at its own costs and expenses within the schedule.

PCSB, on the other hand, shall facilitate and assist in the planning and strategising of the consortium for maximum returns and to procure the relevant approvals for the projects.

Epicon group chief executive officer (CEO) Clement Toh believes that the group’s expertise can mitigate the high construction costs in affordable housing projects.

“By emphasising value engineering, we have developed a model that not only keeps construction costs in check but also ensures the delivery of high-quality projects. Therefore, we create a win-win situation for all stakeholders involved from investors to future homeowners,” said Toh in a separate statement.

Toh said the group is breaking away from the normal method where developers appoint contractors for their projects.

“Typically, developers appoint contractors for their projects, but in our case, we are reversing this norm. We will approach developers who are interested in the project,” he noted.

He said this approach allows the group greater control and alignment with its sustainable and affordable housing mission, while opening avenues for collaboration and innovation in the construction sector.

“We will make the necessary announcements regarding the award of the construction contract for the Rawang project by the identified main developer at a later stage," he said.

Meanwhile, PCSB head Wan Afnizam Wan Moran said the Rumah Idaman MBI development aligns with the Selangor state government’s aspiration to provide 200,000 affordable housing units to the people of Selangor under the “Kediaman Kita Selangor” initiative.

“This proposed Rumah Idaman MBI project will be a significant addition to the existing Mukim Rawang township, an inclusive township that people from various backgrounds can call home. As Selangor’s population continues to grow rapidly, it is vital that B40 [Bottom 40% income group] residents are given an opportunity to become homeowners in a conducive, clean and well-designed environment," said PNSB CEO Raja Ahmad Shahrir Iskandar Raja Salim.

Shares in Epicon settled half a sen or 1.27% higher to 40 sen on Thursday (Dec 21), with a market capitalisation of RM237.92 million. The counter has risen 100% since the beginning of this year from a 20 sen low.