KUALA LUMPUR (July 15): Advancecon Holdings Bhd (KL:ADVCON) is working with the Perak government for the development, construction, operation, management, and maintenance of centralised labour quarters (CLQs) in the state, with the aim of addressing the increasing demand from industrial manufacturers for workers' accommodation.
In a filing with Bursa Malaysia on Monday, Advancecon said its wholly owned subsidiary Advancecon Ventures Sdn Bhd had entered into a joint-venture (JV) cum shareholders’ agreement with a unit of the Perak State Development Corporation (PKNPk), Perak Equity Sdn Bhd, to regulate the rights and obligations between the parties in the JV.
Under the terms of the agreement, Advancecon Ventures will retain a 70% stake in the JV company, CLQ Silvervalley Sdn Bhd, while Perak Equity will hold the remaining 30% stake.
Advancecon, an earthworks and civil engineering specialist, will contribute its technical, sales and marketing expertise for the execution of the JV's projects, focusing on upgrading and constructing new CLQs.
Advancecon said the initial phase of the group’s CLQ collaboration with PKNPk aims to accommodate 12,000 workers over the next five years, paving the way for further CLQ developments to strengthen the state’s industrial infrastructure.
"This JV agreement marks a significant milestone in our partnership with PKNPk to deliver high-quality workers accommodation that meets the increasing needs from industries investing in Perak," Advancecon group chief executive officer Datuk Phum Ang Kia said in a separate statement.
"We are dedicated to leveraging our expertise to support the state’s economic growth and ESG (environmental, social and governance) agenda, and collaborate on more CLQ projects going forward," he added.
The JV is a follow-up to the collaboration between Advancecon and PKNPk, which began in 2022, when they initiated a pilot project to develop CLQs in Perak. The collaboration saw the completion of the refurbishment of two accommodation blocks at Asrama Murni, Jelapang in Perak, in 2023.
"One of the accommodation blocks is already fully occupied, serving the workforce of a prominent multinational corporation," Advancecon said.
Besides that, the state government, through Perak Corp Bhd (KL:PRKCORP), is also working with Advancecon to jointly develop the main infrastructure of the Silver Valley Technology Park Industrial Hub, with an estimated gross development value of over RM1 billion.
Under the JV signed in November last year, debt-ridden Perak Corp will be entitled to a revenue share of 35% based on the net development value, while Advancecon will be entitled to 65%.
At Monday's noon market break, Advancecon shares were up half a sen or 1.82% at 28 sen, giving the group a market capitalisation of RM160.8 million.