That RM388 million project accounts for 16% of its total order book of RM2.4 billion, which is a real durian runtuh.
This is the Bursa Malaysia announcement:
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http://www.bursamalaysia.com/website/bm/listed_companies/company_announcements/announcements/index.jsp
BINA PURI HOLDINGS BHD
Date Announced : 21/07/2011
Description : Cadangan Pusat Pentadbiran Negeri Sabah, Teluk Likas, Kota Kinabalu, Sabah (Fasa 1– Kerja-kerja Pembangunan)
Announcement Details/Table Section :
The Board is pleased to announce that Bina Puri Sdn. Bhd., a wholly-owned subsidiary of Bina Puri Holdings Bhd. has accepted the letter of award from the Director of Public Works, Headquarters in Kota Kinabalu, Sabah on 13 July 2011 for the project known as “Cadangan Pusat Pentadbiran Negeri Sabah, Teluk Likas, Kota Kinabalu, Sabah (Fasa 1 – Kerja-kerja Pembangunan)” for a contract sum of RM388,737,737.00. The duration of the construction period is 30 months.
With the above award, the Group’s current unbuilt book order stands at RM2.40 billion as at to date. In 2011, the Group had managed to secure new projects worth up to about RM500.00 million as at to date.
The contract is expected to contribute positively to the earnings of Bina Puri Group for the financial year ending 31 December 2011.
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Sabahans might wonder about the state’s significant oil and timber revenue, and look at the conditions of the roads, hospitals, employment opportunities as well as other more down to earth and direct indication of their well-being.
Maybe Sabahans do not desperately need another state government office with the mystery of rapidly increasing registered Sabahans is still unanswered.
Is Sabahans getting back its deserved share of its natural resources? Who are behind Bina Puri anyway? Are they a Sabahan owned, Sabahan run concern?
The Chairman of Bina Puri Group is Dato' Ir Wong Foon Meng
According to the profile page of its 2010 annual report and accounts:-
“He was elected as a State Assemblyman in Terengganu* in 1995 and subsequently appointed as a member of the State Executive Council (EXCO). He was appointed as Senator and elected as Deputy President of the Senate of Parliament of Malaysia in 2004. He was then elected as the President of the Senate from July 2009 until April 2010”
* as a MCA candidate
In the Chairman’s statement touching on “Business Outlook and Prospects”, Dato Wong has this comment :
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“….the world economy experienced the worst effects of the global financial crisis in the first half of 2009, ……. As a highly open economy, the Malaysian economy was similarly significantly affected ….
Against this backdrop, coupled with the Government’s growth impetus policies that included the roll-out of RM9billion in infrastructure projects, including a provision of RM4.7 billion for roads and bridges projects and RM2.6 billion for water supply and sewerage services, the Bina Puri Group will benefit accordingly”
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What the Chairman is saying, to this reader, is that when there is a world economy crisis hitting Malaysian soil, instead of taking measures to cut cost and leakages, raise the competitiveness of the nation, strengthen the safety nets for citizens, the BN administration will further increase the deficit budget, causing higher national debts and award more contracts to selected parties.
Understandably, the projects that prop up the Group are significantly public projects funded by tax payers. Was there any public tendering? Oh do shut up!
> 60% of the Group's revenue is derived from public project
According to the Group Managing Director, Senator Tan Sri Datuk Tee Hock Seng in his Review of Operations,
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“HIGHWAY CONCESSION
The construction of the 33 km KL-Kuala Selangor Expressway (LATAR Expressway) linking Kuala-Lumpur at Templer’s Park in the district of Gombak with the township of Ijok in the district of Kuala Selangor on the West Coast of the peninsular, has now entered into the final stage of construction and is on target to be fully operational in mid of 2011.
The Group is optimistic that the LATAR Expressway will contribute positively to our earnings from year 2016 onwards. With this project under our belt, the Group will strive to work at similar models which would contribute to recurring income"
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So we Malaysians better brace ourselves for more toll then. Looks like Bina Duri is really doing well in Semenanjung Malaysia and expanding across the South China Sea.
Ominously, the good senator added on:
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“PROPERTY DIVISION
The Group is placing more emphasis in this division and intends to built up a healthy portfolio and not to be over reliant on the construction division. The Group have development projects with over RM250 million in gross development value to be launched in 2011. We have streamlined our subsidiary company Bina Puri Properties Sdn Bhd to be the main driver of the Group’s property related projects.
……………..
This deal is good for the Group in that it provides us with positive guaranteed rental income in excess of RM40million.”
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So it is a valid question that whether Sabahans will be paying and guaranteeing rental to Bina Puri Group? The experience of us in Semenanjung paying rental to Putrajaya Holding Group for some VIP dwelling is not too thrilling, I’m afraid.
The good senator signed off his review by saying.
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“FUTURE PROSPECTS
….. construction has and will be the main impetus for the Nation’s growth and Bina Puri will play a major role towards Malaysia’s vision to achieving developed nation status by year 2020 in our execution of the Mega-Projects secured by the Group such as the KLIA 2 Airport and the Ampang LRT Line Extension.”
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Any open tendering? Oh for goodness sake, shut up please.
The biggest shareholders in Bina Puri Group are Jentera Jati Sdn Bhd and Bumimaju Mawar Sdn Bhd which are controlled by Tan Sri Syed Mokhtar Al-Bukhary and Tan Sri Tong Yoke Kim respectively, according to this press release by the Corp Communications Department of Bina Puri Holdings Berhad dated 23.02.2009.
http://www.binapuri.com.my/Inv_Info/press/2009/Feb/ED230209.pdf
Tan Sri Syed Mokhtar Al-Bukhary, one of the riches Malaysians controlling vast range of businesses and runs his famed university for many nationalities including Afghans, Albanians, Laotians, Yemenians, Ethopians ...in Kedah.
http://wangsamajuformalaysia.blogspot.com/2010/11/tradewinds-m-berhad-your-rice-and-sugar.html
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http://www.aiu.edu.my/sponsorship.html
The Albukhary Foundation Scholarship
Albukhary International University (AIU) is fully funded by the Albukhary Foundation, Malaysia and all students attending AIU shall be sponsored through the Scholarship described herein.
The Albukhary Foundation intends to make available ten (10) scholarships for each country to assist disadvantaged youths, mainly Muslim youths, to graduate with a degree from the Albukhary International University.
Instituted in 2003, the Albukhary Foundation Scholarship has been offered to 382 students from almost 50 countries of whom many are currently studying at the International Islamic University Malaysia.
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Oops, I still yet to name a single Sabahan.
Factors of considering are much harder to go ahead.
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