This article first appeared in The Edge Malaysia Weekly on October 21, 2024 - October 27, 2024

For a private company that is little known outside Penang and Kedah, ECK Development Sdn Bhd has bagged more than its fair share of multibillion ringgit projects.

The company, which is the lead partner in the consortium that will build the RM6.3 billion Penang undersea tunnel connecting the mainland to the island, is now looking at a RM10 billion recycling centre in Seri Iskandar in Perak. The centre spanning more than 3,168 acres will transform a greenfield site into a recycling and waste management hub.

According to ECK’s group managing director, Tan Sri Khor Eng Chuen, the project started with the acquisition of the land in 2018 and since then, all approvals, including the environmental impact assessment, have been obtained. The groundbreaking ceremony is expected to be held next month.

ECK is believed to have become involved in the Penang undersea tunnel project in 2020 after the takeover of Consortium Zenith Sdn Bhd (CZSB), the company with the mandate to undertake the project. According to a company search, ECK holds 93.17% in CZSB.

In 2021, ECK signed an agreement with the Kedah state government to take up an 80% stake in a special purpose vehicle to develop the proposed Kulim International Airport. It was reported, however, that the company did not pay the down payment for the land acquisition and consequently exited the project. In any event, the airport project did not take off.

For a company undertaking multibillion ringgit deals, ECK has surprisingly made losses in four out of the five years from 2019 to 2023. According to a company search, it made a profit of RM56 million in the financial year ended Dec 31, 2020, but chalked up losses in the other years.

Nevertheless, ECK has declared dividends every year, paying out a cumulative sum of RM77 million between 2019 and 2023.

For a company that is loss-making, it will be interesting to see how it will finance its multibillion ringgit projects.

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