2 days ago
HSS Engineers bids for four data centres, eyes global growth
HSS Engineering Behad Excutive Vice Chairman Tan Sri Ir. Kuna Sittampalam spekas during press confences at Sime Darby Conventio Centre (6/6/202). —AZHAR MAHFOF/The Star
KUALA LUMPUR: HSS Engineers Bhd is bidding for four data centre-related projects as part of a broader push for global growth.
The projects include Sime Darby Data Centre Phase 2, Infinaxis Phase 2, Princeton Digital Group, and NTT Global Data Centres.
Its group general manager, Anand Sharvanandan, said the company is also exploring new opportunities in Indonesia.
"We have already completed two data centre projects in Johor - one in Sedenak and another for Yondr's Yellowwood Phase 1,' he told reporters at a press conference following the company's annual general meeting.
Anand said the company has also just completed the first phase of K2 Strategic Infrastructure Malaysia Sdn Bhd's project and was recently appointed for Phase 2, with the team mobilised in March.
"In addition, we are involved in several ongoing projects, including facilities in Kempas, Johor; Bagan Datuk, Perak; and Yellowwood Phase 2.
"We are also working on two new data centres in Cyberjaya, Infinaxis and Basis Bay,' he said.
The group's current order book for data centres stands at approximately RM70 million, with a tender book of around RM30 million.
Meanwhile, HSS Engineers executive vice chairman Tan Sri Kuna Sittampalam said the group remains confident of maintaining strong growth in the financial year ending Dec 31, 2025 (FY2025) and beyond, as it expands and diversifies across multiple sectors and international markets.
He added that the group's RM2.1 billion order book provides earnings visibility for the next eight years, building on momentum from a record-high net profit of RM25.2 million in FY2024.
Key projects within the order book include the Pan Borneo Highway Sabah Phase 1A, Westport 2 Expansion Development, Klang Valley Double Tracking Phase 2, East Coast Rail Link, Jajaran Rel Selangor Kita, various water infrastructure developments, and data centre projects in Malaysia and abroad.
He said the group maintains a healthy tender book of RM475 million and continues to pursue new contracts domestically and overseas.
"We have secured RM65 million in contract wins year to date.
"The group's overall order book currently stands at RM2.07 billion. FY2025 looks promising for us, both domestically and internationally, with several opportunities showing strong potential,' he said.
On international operations, he said the group is on track to meet its target of deriving 25 per cent of revenue from overseas projects by 2027.
"In Indonesia, we have acquired a 12 per cent stake in PT Oriental Indonesia, establishing a strategic foothold in the market,' he said.
In Iraq, Kuna said the group is currently working on the Baghdad Metro contract - a seven-line, US$17.5 billion project.
"We are in a 50:50 joint venture, with total fees amounting to RM1.5 billion (US$1 = RM4.23).
"We are also in the final stages of contract negotiations for project management consultancy for the Najaf-Karbala high-speed rail (HSR), which will connect the two cities. If secured, the Najaf-Karbala contract would be worth US$100 million, also under a 50:50 arrangement,' he said.
As of March 31, 2025, overseas projects contributed 18.8 per cent of the group's revenue, underpinned by multiple contract wins in developing Asian markets, he added. - Bernama
