Boustead Targets To Grow Revenue To RM30 Bln In 5 Years
GEORGE TOWN, Aug 5 (Bernama) -- Boustead Holdings Bhd (BHB) is targeting to increase group revenue from about RM12 billion currently to RM30 billion within the next five years through a business restructuring that focuses on defence, property development and commercial services.
BHB group managing director Datuk Dr Ahmad Sabirin Arshad said the conglomerate company, which started as an agricultural company with activities such as selling coconuts and warehousing, is undergoing a transformation by targeting at least 30 per cent local content in the development of national defence industry technology products by 2030.
He said BHB planned to develop about 400 vendors in the defence industry ecosystem, thus creating a new industry that could generate wealth for the country.
"We have been given a new focus by shareholders and the Defence Ministry, in line with the National Defence Industry Policy launched last January, to focus on three main areas, namely, defence, property development and commercial services.
"We want to ensure that Malaysia is ready and capable to assist the government in defence, although the country has always prioritised peace," he told reporters after attending the soft launch of Boustead 200 Year Journey here today.
Boustead celebrates its bicentennial in 2028.
Ahmad Sabirin said BHB was also given the responsibility to lead four national defence projects announced by the government, namely, satellite development, rolling chassis for armoured vehicles, light weapons production and the development of the Combat Management System.
Apart from the defence sector, he said BHB was also given the mandate to develop the Batu Cantonment strategic development project with the Armed Forces Fund Board, which involves relocating nine existing military camps before the area is developed into a new commercial hub in the capital.
Ahmad Sabirin said BHB will also continue to strengthen its subsidiaries in the tourism and insurance sectors to support the group's growth.
Chairman General (Rtd) Tan Sri Abdul Aziz Zainal said at the same event that the transformation implemented was to ensure the best returns to stakeholders, especially contributors and members of the Malaysian Armed Forces.
He said the responsibility entrusted to the company must be discharged with full accountability and sound governance to ensure its long-term sustainability that has stood strong for 200 years.
On the development of the defence industry, Abdul Aziz said BHB will forge strategic alliances with international partners to acquire technology transfer and enhance national capabilities.
He said BHB will select credible partners to ensure that technology transfer is effectively implemented in line with the target of achieving at least 30 per cent local content in the defence industry by 2030.
Boustead Hotels and Resorts Sdn Bhd chairman Datuk Seri Norliza Abdul Rahim was also present at the soft launch.
-- BERNAMA