KUALA LUMPUR (Jan 15): Building support services firm KJTS Group Bhd (KL:KJTS) is planning to operate two businesses in Singapore, involving cooling services and mobile facility maintenance services.

The group's wholly owned unit KJ Technical Services Sdn Bhd signed an agreement with Singapore-based Cyclect Investments Pte Ltd on Wednesday, to set up a 49:51 joint venture company for the businesses, according to a bourse filing.

The cooling services will be the primary business for the JV company, while mobile facility maintenance services will be the secondary business, said KJTS.

“The JV represents a new opportunity for the group to expand its business further to the Singapore market that would enable the group to tap into new revenue streams and expand its market reach in Singapore,” the group added.

The JV company will offer energy management services to customers, which may include conducting energy audits as well as engineering, construction, and maintenance of tailored cooling-as-a service (CaaS) solutions.

KJTS said its investment in the JV company, will have a capital of S$10,000 (RM32,899), will be funded by the group’s internally generated funds and bank borrowings.

As at end-September 2024, KJTS’ cash and bank balances stood at RM64.57 million, while its borrowing amounted to about RM3 million.

Shares in KJTS closed a sen or 1.13% lower to 87.5 sen on Wednesday, valuing the group at RM602 million.