08 November, 2008
Kuala Lumpur: Nehemiah Reinforced Soil Sdn Bhd aims to raise
revenue contribution from overseas operations to 30 percent over the next
three years from about 10 percent currently based on its expansion plan.
Chief executive officer Dr Nehemiah Lee said it was time for the
company to focus its resources on expanding into overseas markets such as
Australia, India, Hong Kong, Vietnam, Sri Lanka, Bangladesh, Kazakhstan
"Conservatively, we expect 30 percent turnover in the next three years
to come from our infrastructure projects overseas," he told reporters
after the opening of the company's International Technical Conference
According to Lee, a significant portion of overseas revenue will come
from Australia and India.
He said while China may be an attractive market, the company would take
a cautious approach by first establishing itself in Hong Kong.
For emerging markets like Vietnam, Lee said with a population of more
than three times that of Malaysia and rising disposable income, there was
pressure to upgrade from motorcycles to four-wheel vehicles, making it
necessary to build flyover and highway interchanges.
"We have made several exploratory trips to Vietnam and in the first
quarter next year we hope to set up a representative office there," he
For Australia, Lee said the business and engineering community was able
to appreciate and pay for good technology.
He said a joint venture company has been incorporated in New South
Wales through partnership to explore business opportunities in Australia,
New Zealand and the Pacific islands.
The company concerned is expected to receive approval from the Road
Transport Authority of New South Wales by year-end, Lee said.
"Hopefully, with this, we will see some construction projects starting
in Australia by second quarter next year," he said.
Currently, Nehemiah has joint ventures or agents appointed in India,
Sri Lanka, Singapore, Brunei and Bangladesh, as well as in Sabah and
The Mokhali flyover interchange in Bangladesh was built using Nehemiah
Wall, a patent that Lee currently holds in Australia, India, South Korea
Asked about the company's listing plan, Lee said it would look for the
right time to be listed in view of the current market situation.
"Perhaps three to five years from now, I think we are ready, especially
(with) more diversified income stream from overseas market," he said.
Nehemiah posted a revenue of RM39 million last year, RM22 million in
2006 and RM19 million in 2005.
Lee did not rule out the impact of the economic slowdown affecting the
company's revenue this year.
"This year we expect it (revenue) to be slightly less than RM39
The big job we secured recently will come in only by early next year.
We will not be having a large turnover like 2007," he said.
The company recently signed an agreement with MMC-Gamuda worth RM57
million for jobs on the double-tracking rail project from Ipoh to Padang
Besar which is due for completion by 2011.-Bernama