OCR entity signs agreement with PKNP to participate in Pahang portion of ECRL

Taraf Raya Sdn Bhd (Taraf Raya) being the vehicle of Pahang State Government to manage Pahang portion of the 640-km ECRL
OCR will participate in the joint venture to manage, administer and ensure the involvement and development of local contractors and industries of Pahang

Selangor, Malaysia, 19 June 2020 – OCR Group Berhad (OCR, Bloomberg: ONC:MK; Reuters: OCRG.KL) announced today that its 40%-owned associate company Landasan Surimas Sdn Bhd has entered into a joint venture agreement with Perbadanan Kemajuan Negeri Pahang (PKNP) to set up 70:30 joint venture Taraf Raya.

The establishment of Taraf Raya is to provide mechanical and civil works (excluding tunnelling works) relating to East Coast Rail Link Project (ECRL) within the State of Pahang, subject to the final contract to be entered between Taraf Raya, Malaysia Rail Link Sdn Bhd and China Communications Construction (ECRL) Sdn Bhd.

The RM44 billion ECRL will encompass approximately 640 km in length and from Kota Bahru to Port Klang. It is envisaged to feature 14 passenger stations, 5 combined passenger and freight stations as well as 1 freight station, out of which 7 stations are located within the State of Pahang. The entire project is targeted to be completed by December 2026.

Currently, OCR has also been appointed by Yayasan Pahang to undertake a project management consultation role, which entails overseeing the Yayasan Pahang’s affordable housing scheme in Pahang encompassing over 25,000 residential units over the next 15 years. This includes OCR’s PRIYA Scheme Kuantan development, which is expected to be completed in 2021.

Prior to undertaking this role, OCR had already recognised Pahang’s potential as a rapidly-growing economic hub through its vast land area and strategic location, hence OCR’s recent property development ventures of PRIYA Scheme Kuantan and next to be launched Vertex Kuantan to cater to this strategic market.

The collaboration with PKNP will promote the interests of the Pahang state and its people, be part of the long-term urbanization and assuring that the home-grown contractors reap benefits towards the sustainable growth for the larger community upon completion of ECRL.

This is also aligned with OCR’s growth strategy of building a stronger recurring income stream within its current scope of operations in property development, construction and project management consultation. The Group is currently transforming its business strategies to focus on a more sustainable earnings base.