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JCorp Allocates RM800 Million Capex This Year
calendar18-04-2014 | linkBernama | Share This Post:

18/04/2014 (Bernama) - Johor Corporation (JCorp) will allocate RM800 million for capital expenditure (capex) this year as part of the strategy to further grow its core businesses.

President and Chief Executive Datuk Kamaruzzaman Abu Kassim said the core businesses, namely, property, plantation and healthcare, will continue to drive the group's earnings with the enormous future potential.

Speaking to reporters at the launch of JCorp's annual report here Thursday, he said the three sectors contributed 85 per cent to last year's pre-tax profit of RM1.37 billion.

"The plantation sector is expected to continue reporting impressive earnings in 2014, driven by the higher fresh fruit bunches yield, an anticipated higher crop production with the increasing maturity of young fields, and low production costs for crude palm oil, alongside efficient management of oil palm estates," he added.

Also present was JCorp Chairman Datuk Seri Mohamed Khaled Nordin, who is also the Johor Menteri Besar.

On the oil and gas sector, Kamaruzzaman said the group is gradually building its business in tapping the potential of Southern Johor as the regional oil and gas hub.

Aiming to make it as one of the core businesses by 2017, the group is preparing the necessary foundation for this, including the infrastructure to attract investors in upstream and downstream activities.

"At the moment, we are focusing on being an enabler (for the industry). If an opportunity arises for us to go further, we will grab it. At the moment, oil and gas contributes about five per cent to the group's turnover," Kamaruzzaman said.

Through E.A. Technique, which is slated to be listed on Bursa Malaysia by the third quarter of this year, the group will strengthen its marine vessel services for the provision of transport and offshore storage as well as port services.

According to Kamaruzzaman, Tanjung Langsat Port together with the Tanjung Langsat Industrial Complex will play a significant role in capturing opportunities, especially in growing the group's oil and gas businesses.

Meanwhile, Mohamed Khaled said the group's strategic business transformation plan implemented in 2012, had successfully driven it on a steady path, while steering the business through global economic uncertainties.

"With the Asean Economic Community in place by 2015, the group will further explore opportunities in the region, while at the same time promote Johor as a regional hub for the economic community," he added.