KUALA LUMPUR: KUB Malaysia Bhd will invest more than RM100 million to build a hygienic waste incinerator in Labuan as a new source of income to maintain its profit level.
KUB posted a pre-tax profit of RM7.5 million for fiscal year 2013, which was 162 per cent higher than the previous year. Its operating profit was RM7.7 million against an operating loss of RM12.3 million in fiscal year 2012.
KUB managing director Datuk Wan Mohd Nor Wan Ahmad is confident the company will double its pre-tax profit this year as it diversifies and hives off non-core assets, such as A&W Restaurants (Thailand) Co Ltd.
He said 70 per cent of pre-tax profit and revenue for fiscal year 2014 will be derived from plantation, agriculture and liquefied petroleum gas businesses. “The rest will come from A&W Malaysia, property, engineering and construction, and our ICT business,” he said after KUB’s shareholders’ meeting, here, yesterday
For A&W Thailand, Wan Mohd Nor said KUB is looking for new offers to acquire the business for more than RM5 million. This is after it struck off an earlier deal to sell it to a Malaysian investor in Thailand.
The incinerator in Labuan will generate 100 tonnes of waste a day, which will be converted into three megawatts electric energy daily.
KUB’s partner for the project is Japan-based IHI Enviro Corp, a resources, energy and environment management company.
It also plans to build incinerators in Malacca and Johor through direct negotiations with the government.