KUALA LUMPUR, April 26 — PLB Engineering Bhd has signed a memorandum of understanding (MoU) with China Railway No.3 Engineering Group Co Ltd (CR3) and SRA Builder Sdn Bhd to collaborate and partake in the affordable housing segment.
PLB said the MoU was in support of the Malaysia’s National Housing Policy on affordable housing and complemented China-Malaysia economic and trade cooperation for mutual benefits, which would improve the bilateral political and economic relationship between the two countries.
“PLB, CR3 and SRA shall make use of their respective expertise, experiences, resources and channels to promote affordable housing projects development in Malaysia,” it said in a filing to Bursa Malaysia.
PLB said it has undertaken the development of 7,000 units of affordable housing in Tingkat Paya Terubong 5, North East District, Penang and has the intention to appoint an unincorporated consortium to be jointly owned by CR3 and SRA as the development’s main contractor.
The MoU would also serve as a strategic alliance with CR3 and SRA to further expand PLB’s business in property development and sustain the group’s business competitiveness locally.
PLB said the MoU does not have any legally binding effect until the parties enter into a definitive agreement that is expected to be signed within 12 months from the date of the memorandum.
“The execution of the MoU is not expected to have any material effect on the revenue, net assets, earnings and gearing of PLB for the current financial year ending Aug 31, 2019.
“Nonetheless, should the (development) project collaboration (in Penang) materialise, PLB expects a positive contribution to the future earnings of the company. The execution of the MoU has no effect on the issued and paid-up share capital and the substantial shareholders’ shareholding in PLB,” it said. — Bernama