SCGBHD (0225): SOUTHERN CABLE GROUP BERHAD to ride on high demand for cables, wires demand for infrastructure, 5G network expansion
Southern Cable Group Bhd (SCG) aims to ride on higher demand for cables and wires as the nation embarks on its infrastructure growth and 5G network expansion plans.
KUALA LUMPUR: Southern Cable Group Bhd (SCG) aims to ride on higher demand for cables and wires as the nation embarks on its infrastructure growth and 5G network expansion plans.
The cable and wire manufacturer had seen higher orders for power cables and wires, including power, renewable energy, telecommunications, and construction and infrastructure sectors.
The large orders are in line with gradually improving economic activities as more states in Malaysia enter Phase III and IV of the National Recovery Plan.
Managing director Tung Eng Hai said the company is optimistic of higher power cable and wire sales going forward, following Malaysia's aim to spur the economy after the Covid-19 lockdowns.
"New projects will support this under the 12th Malaysia Plan (12MP) and the upcoming Budget 2022.
"We are upbeat on significant investments into new data centres and rollout of the 5G network nationwide, in line with Malaysia's target to become a digital economy leader in the region by 2030," he said in a statement today.
Tung said SCG would look at the supply of more communication cables and wires and related communications equipment such as rectifiers and power and distribution systems.
"We will leverage on our 28 years of history in supporting Malaysia's developments and strong track record in supplying essential sectors such as power and energy, telecommunications, and construction and infrastructure.
"We have also supplied to major projects such as the Mass Rapid Transit, Refinery and Petrochemical Integrated Development (RAPID) project in Johor, and many others," he said.
Under the 12MP, a total of RM43 billion is expected to be invested over the next five years to improve the 4G network and accelerate the implementation of the 5G network nationwide.
Additionally, the government would spend RM7.7 billion under Jalinan Digital Negara (JENDELA) in Sabah and Sarawak to provide 100 per cent 4G coverage in populated areas and widen 5G and fixed-line broadband coverage to nine million premises by 2025.
In September 2021, SCG secured a RM30.4 million rectifier systems supply contract from Telekom Malaysia Bhd (TM) for its regional hubs in Peninsular and East Malaysia.
The contract would support TM's ongoing expansion to accelerate digital connectivity and 5G rollout via the JENDELA plan.
https://www.nst.com.my/business/2021/10/740516/southern-cable-ride-high-demand-cables-wires-demand-infrastructure-5g
