Boustead’s Malaysian Contract Win: A Strategic Expansion Move
Boustead Singapore Limited (SGX:F9D), a renowned name in infrastructure-related engineering and technology, has announced a significant milestone for its Real Estate Solutions Division. Through its Engineering & Construction (E&C) business under Boustead Projects Limited (BP), the company has secured a substantial Engineering & Construction contract in Malaysia valued at around MYR300 million, equivalent to approximately S\$90 million [[1]].
The contract involves the construction of a four-storey data center, a two-storey substation, and pumphouse, with the project slated for completion by the end of FY2026 [[1]]. This marks BP’s inaugural data center project in Malaysia, adding to its impressive portfolio of delivering facilities for Fortune 500 companies in various sectors [[1]].
The Managing Director of the E&C business, Mr. Thomas Chu, expressed optimism about the deal, citing it as one of the largest E&C contracts secured in Malaysia to date. Mr. Chu highlighted the importance of this win as it bolsters the company’s order backlog and leverages their expertise in design-and-build capabilities [[1]].
Despite a challenging macroeconomic environment and a slowdown in industrial developments in Singapore, Boustead remains committed to expanding its presence in key overseas markets. The strategy focuses on securing high-value contracts while maintaining a cautious approach towards high-risk projects [[1]].
For shareholders, the contract significantly enhances Boustead’s Real Estate Solutions Division’s order backlog to S\$141 million and the Boustead Group’s overall engineering order backlog to S\$248 million [[1]]. However, the contract is not anticipated to materially impact the Group’s profitability or earnings per share for the financial years ending March 2025 and March 2026 [[1]].
Boustead Singapore, established in 1828, continues to operate as a leader in engineering and development of key infrastructure and technology solutions. With a global network spanning 93 countries, the company remains a formidable player in the industry [[2]].
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Readers are encouraged to conduct their own research and consult with a financial advisor before making any investment decisions.
