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Malaysian firm to add Myanmar to Asean investment destinations
Turbo-Mech Bhd, a regional distributor of rotating equipment for oil, gas and petrochemical industry, is eyeing opportunities in Myanmar, the StarBiz, a local business paper, quoted Gan Ching Lai, the company’s chairman as saiyng.
“We’re in seven Asean countries now. Our next potential country could be Myanmar,” he said after the company was listed on Bursa Malaysia main market yesterday.
“The country (Myanmar) has a large gas field, with foreign companies already developing it, and there is a need to pipe the gas from the south to north of Myanmar into the Yunnan province in China.”
Gan said Turbo-Mech was looking to collaborate with these foreign firms but said it was still too early to disclose any information.
“It’s still too early to say as we don’t expect to go into Myanmar so soon,” he said, adding that Turbo-Mech would focus on growing its business in the countries where it already had a presence.
Turbo-Mech has subsidiaries in Singapore, Indonesia and the Philippines; associated companies in Malaysia, Brunei and Thailand; and a representative office in Vietnam.
The company will use the bulk of its initial public offering (IPO) proceeds for expansion in Indonesia and Thailand.
According to Gan, Turbo-Mech intends to spend 2 million ringgit (1$=3.4 ringgit) to establish a light-fabrication yard in Rayong, Thailand, this year.
He said the political trouble in that country would not deter the company’s expansion plan.
“We’re not postponing our plans. Rayong is far away from Bangkok, which is where most of the trouble is.”
Turbo-Mech will also use 2 million ringgit of its IPO proceeds to open a workshop in Jakarta to provide maintenance, repair and overhaul services. Gan said the company planned to set up sales offices in Balikpapan, Kalimantan and Pekanbaru, Sumatra.
“These areas are considered to be the centre of oil and gas activities in Indonesia,” he said.