T7 Global: ECRL price renegotiation a welcome move

A man looks at a map of the East Coast Rail Link (ECRL) during a ground-breaking ceremony in Tunjong, Kota Baru, April 11, 2018. — Bernama pic
A man looks at a map of the East Coast Rail Link (ECRL) during a ground-breaking ceremony in Tunjong, Kota Baru, April 11, 2018. — Bernama pic

KUALA LUMPUR, June 26 — T7 Global Bhd has welcomed the price renegotiation in the East Coast Rail Line (ECRL) project mooted by the new government.

Chairman Datuk Seri Dr Nik Norzrul Thani Nik Hassan said the move would result in more competitive pricing and enable the company to at least know the actual cost of the project.

“But to us, the cost remains the same because as long as we do our jobs and get paid with a decent profit, we will continue to do it,” he said.

Nik Norzrul Thani was speaking at a press conference after the company’s annual general meeting here today.

In March this year, T7 Global signed a new memorandum of understanding (MoU) with Terengganu state-owned company Eastern Pacific Industrial Corporation Bhd (EPIC) and CMC Engineering Sdn Bhd to form a consortium to undertake the construction of the ECRL project’s Terengganu parcel.

Meanwhile, Executive Deputy Chairman Tan Sri Tan Kean Soon assured that the effectiveness of the MoU remains unchanged despite the change of state government in Terengganu.

“EPIC still belongs to the state government despite a government change,” he said.

Nik Norzrul Thani reiterated that they are happy with the ECRL price review, saying it would provide good opportunities for strong and competitive companies.

Yesterday, Prime Minister Tun Dr Mahathir Mohamad said the government would proceed with the ECRL if it can obtain more favourable terms through renegotiation and if the project’s cost is reduced.

Asked if the company would collaborate with tycoon Tan Sri Vincent Tan’s Berjaya Group’s construction projects given that the latter is one of the substantial shareholders of T7 Global, he said: “We are not closed to collaborating with anybody, but Vincent Tan is our shareholder now, we will take whatever opportunities we have to collaborate in sync with him.” 

Vincent Tan has 22.2 million shares or 5.29 per cent in T7 Global.

Moving forward, Nik Norzrul Thani said T7 Global, as an oil and gas (O&G) services provider, would remain focused on the O&G segment and gradually expand into the infrastructure construction sector.

“Currently, the O&G segment contributes over 90 per cent of our revenue, the rest comes from construction and other segments,” he said.

He added that the company is not limited to government contracts, but is involved in private sector tenders as well.

In May this year, T7 Global proposed to diversify its business into the aerospace industry as part of its strategy to enhance its earnings stream, while reducing the dependency on the O&G sector.

Executive Director Tan Kay Vin said the company had earlier been involved in the construction of the Mass Rapid Transit 2 and several small packages of the project.

“We already have experience in the construction of infrastructure,” he said. — Bernama