Qualampur: Giocynthetics and erosion control specialist Fibromat BHD RM700 million is looking towards the development of the RM2 billion tender pipeline in infrastructure projects along with dam development.
CEO Danny NG Kian Boon said the company has recently acquired RM 10 million through BR Capital Malaysia’s Peer-to-Pier Financing Platform and is searching for additional options including bank loans.
“We are definitely looking for money furnace because when we list, our order book was only RM40 million. Now our order book is about RM400 million, so naturally we need more money,” NG said during the company’s second quarter FY2025 (Q2’25) today during briefing.
The group now has RM36 million in project financing facilities and is interacting with banks for further funding. Beyond the loan, it also taps the display advances and credit letters to fund source of raw materials.
“We are talking to advisors and bankers to expand our debt, and how they can help us. Because we need funding, of course,” NG said.
Fibromat, which moved to the Ace Market of Bursa Malaysia earlier this year, is carrying forward the price chain to take direct contractor roles from a lower level supplier.
NG said, “The increase in only three months has been very encouraging. Moving forward, the opportunity for Fibromat is quite positive.”
He expects opportunities to expand from his RM2.7 billion tender pipeline to expand to 2028-2029, providing long-term income visibility if honored. “Depending on the size of the project, this can happen, you know, once they call for bidding, until the award, until it is fulfilled, it will usually take about three years, at least.”
The government now invites only technical and economically strong players to selective tenders, with the increasing preference for design-and-old contractors, NG said.
“There are two fundamental criteria for merit. The first is technical – expected expertise and proven experience to do the work effectively.
“Second, and more important, financial – demonstrating the ability to start and maintain the project. Only those who meet the requirements will be shortlisted among a few select people.
“In addition, the government emphasizes the ability to offer both fast design and execution capabilities. This integrated approach is exactly what enables us to step into a design-and-bed contractor,” NG explained.
The latest victory of Fibromat includes an RM283 million Central Spine Road Package in safe calendar in May, while the development of Penang’s Silicon Islands such as major reconsideration and ground treatment projects as well as bids for jobs in Malacca and Johor.
Fibromat recently acquired new prefabricated vertical drain assets and contracts of RM46.9 million, expanding its fleet to 25 rigs, all of which are fully used.
NG said that Fibromat’s workforce has expanded 80 at the time of its initial public offering, which is around 300 today.
“As we speak today, with all projects from Central Spine Road and prefabricated vertical drains, the workforce of Fibromat has increased to about 300 personnel internally in the task force. They are with expertise to start all projects from laborers to professionals, which you have seen,” they said.
