JOINT VENTURE BETWEEN OPTIXLAB SDN BHD (“OPTIXLAB”), HO HUP CONSTRUCTION COMPANY BERHAD (“HO HUP”), ROADBUILDER (M) HOLDINGS BERHAD (“ROADBUILDER”), IJM CONSTRUCTION SDN BHD [“IJM”], MUHIBBAH ENGINEERING (M) BERHAD [“MEB”] AND UNITED ENGINEERS (MALAYSIA) BERHAD [“UEM”] {“VENTURE”}
| UNITED ENGINEERS (MALAYSIA) BERHAD |
Contents :
In response to the Exchange’s query dated 9 August 2000 (ref: KM-000808-63659), UEM would like to provide the following additional information:-
1. The estimated value of the construction industry in Malaysia is RM20.0 billion a year. The Venture hopes to capture approximately 10% - 20% of this market.
2. The source and nature of revenue to be generated by the Venture is as follows:-
· Transaction fees chargeable on all tenders to be awarded through the portal;
· Transaction fees chargeable from trading transactions through the portal;
· Membership fees;
· Storefront subscription;
· One-time set-up fees;
· Merchant license fees; and
· Monthly subscription.
3. Internal feasibility study has been carried out by Teras Teknologi Sdn Bhd (“Teras”), a wholly-owned subsidiary of UEM. No other external consultant was engaged to carry out any feasibility study.
4. The financial risks associated with the Venture will be the costs to be incurred in the next six months for the marketing, promotion and continuous enhancement of the e-construction B2B portal estimated at RM1.6 million.
5. The e-construction B2B portal aims to become a comprehensive e-commerce site dedicated to the
- Malaysian construction industry. The site offers:-
· Secure online marketplace for construction bidding;
· Trading of building materials;
· Project hosting site to help simplify communications, collaborations and transactions
- among industry players; and
- Utilisation of the portal is expected to result in the following benefits for the users:-
· Access to the tenders from remote sites;
· Obtaining quotations from wider network of suppliers; and
· Lower administration costs.
- Teras has more than 100 employees, 60% of whom are professional technical staff, including contracted consultants specialising in various aspects of e-commerce. Teras has strategic alliances or partnerships with IBM World Trade Corporation (“IBM”) wherein IBM will provide research and development, relevant industry expertise and technical updates to complement and accommodate Teras in its projects and marketing activities.
Further to the above, we wish to inform the Exchange that the e-construction B2B portal called Binaonline.com operated by the JV Company was officially launched on 3 August 2000 by the Minister of Works, YB Datuk Seri S. Samy Vellu.
Query Letter Contents :
We refer to your announcement on 31 July 2000 in respect of the above mentioned
Venture.
In this connection, kindly furnish the Exchange with the following additional
information for public release:-
Estimated size of the target market of the services offered.
Source and nature of revenue to be generated by the Venture.
Outcome of any feasibility study undertaken and name of consultants, if any.
Financial risk associated with the Venture.
Business prospects of the Venture, including key assumptions.
Details of technical capability and competence in the Venture, including key
personnel or technical experts or consultants vital to the Venture, including
their qualifications and experience.
Please furnish the Exchange with your reply within two (2) market days from the
date hereof.
Yours faithfully
INDERJIT SINGH
Senior Manager, Listing Operations
WR/CKM
Announcement Info
| Company Name | UNITED ENGINEERS (MALAYSIA) BERHAD |
| Stock Name | UE(M) |
| Date Announced | 10 Aug 2000 |
| Category | General Announcement |
| Reference No | UE-000810-60607 |