AMAL builds upon O&G prospects

0

Company aims participation in civil works to tap growth potential in the sector

BINTULU: Over the past decade, Bintulu has been a hub for many oil and gas (O&G) related industries, on the back of its natural resources as well as development activities by both the government and private sectors towards improving its infrastructure and logistics.Further to the inclusion of Bintulu as one of the key areas in the Sarawak Corridor of Renewable Energy (SCORE), such development has helped many local industries in establishing themselves to become vital contributors towards fuelling up the O&G sector in the state.

In this respect, local provider of mechanical maintenance services for the O&G industry, Amalgamated Plant Engineering Sdn Bhd (AMAL), is aiming at becoming one of the most reliable, capable, dependable and trustworthy mechanical and civil engineering contractor in this region.

Its chief executive officer and managing director, Jun Ngau Wan, said AMAL is positioning itself to become one of the top Bumiputra mechanical and civil engineering contractors in this region, in line with the government’s aspiration to maximise Bumiputra participation in all industries.

“At this moment, AMAL is involved in a number of activities related to the O&G industry such as mechanical and civil engineering and the building of all kinds of industrial plant, as well as petroleum and gas refinery construction.

“It is also our wish to improve and progress, whereby our board of directors has decided to expand further into civil (works) in order to participate meaningfully in the construction industry, which is flourishing in the state and the country as a whole,” he told The Borneo Post recently.

Jun, who founded the company in 1994, also revealed that AMAL has done well financially but reiterates that it has not been the company’s sole focus.

“Since its inception, AMAL has contributed significantly to the imple­men­tation and completion of projects valuing appro­ximately RM150 million. For the past three years, our financial performance has been promising.

“However, we also believe that a company does not need to be huge to be a place to work, but it needs to put a big premium on valuing its employees. In AMAL, we believe that employees are the glue that holds the business together, from which success is created with the help of motivated employees.”

To this extent, Jun added that the management strives to provide good leadership skills and a healthy environment for those who work with the company.

“In providing these conditions, employees will be given the right tools to work with and a continual training program to work under. This will compel them to work harder in enhancing the company’s vision because they will be rewarded for being productive and innovative.

“Even throughout the financial crisis, AMAL was able to complete all its projects without compromising on quality and safety. We have maintained our integrity and trustworthiness by paying our creditors and servicing our loan regularly regardless of our financial constraint. Thank God, we managed to stay afloat until it was over,” he said.

Given these credentials, it was only appropriate that Jun was bestowed with two wins at the recent Global Award 2010 in Kuala Lumpur. For the event, the Kayan businessman bagged the Smart Entrepreneur Award (Individual category) and Gold Award (Medium Companies and Government-Linked Companies category).

On this, he commented, “It’s a challenge to the management to improve and develop better services in term of quality, safety, price and delivery. By the many awards and recognitions that we have received, it does enhance our image that should translate into better profitability in the future.

“To me, what is more important in securing contracts is your track record. In AMAL, I always stress on three key components: achieving high standards in both safety and quality of work, striving to complete all projects within the agreed time and cost, and committing to improving health, safety and environment (HSE) practices with the objectives of preventing accidents, occupational illness and environmental pollution.”

On HSE, AMAL allows a maximum of two inspections conducted by clients before the final acceptance, at the same time achieving zero Lost Time Injury (LTI), which has become the main criterion for any safety certification.

“Having all these recog­nitions does not allow us to be complacent. In fact, we are seeking to obtain the Occupational Safety and Health Management System (OSHMS) 18001 Certification by year 2012,” he added.

On SCORE, Jun believed the corridor would present a whole new spectrum of prospects going forward, but remained realistic on the challenges that came with it.

“What more to say about the implementation of SCORE? It presents great business opportunities for upcoming aspiring contrac­tors in mechanical, civil and structural engineering services. With it, there will be a bigger job market for our people, especially Sarawakians.

“However, it’s too early to comment as it is a long term initiative. We have been approached by a few potential international companies on what we can offer in the support services should the implementation of projects in SCORE are to be carried out in the future. For the time being, we are keeping our fingers crossed.

“Also, there will be great challenges. We believe many core industries to be developed under SCORE especially in infrastructure development, competition will intensify especially among technological based companies in years to come.”

Nevertheless, Jun viewed competition as a positive thing, treating his business rivals as ‘partners’ in getting projects done, as well as in the sharing of the challenges and technical know-how.

“To me, competition serves as a constant remin­der to improve the com­pany’s capabilities and not take things for granted. A positive approach would be to embrace changes. We cannot remain stagnant if we want to progress.”

On the company’s outlook, Jun pointed out several initiatives on improving its operational capabilities, but remained selective on the expansion outside of Malaysia.

“To better prepare ourselves for upcoming potential projects, AMAL acquired four acres of industrial land at Kidurong Industrial Estate last year for the construction of a permanent modern work-shop and office building there. This will provide enough space for future expansion of work-shop with complete storage facilities and equipment.

“In term of revenue, AMAL should be able to maintain its profit margin as we expect a number of projects to be awarded in the first and second quarter of 2010.

“On overseas expansion, I believe you have to analyse your own performance, be it on strengths or weaknesses and recognise what makes you comfortable. Then, you look at your competitors as well as the window of opportunities. In business, I always look for a win-win situation. So for now, we are not rushing to go global but are prepared to discuss potential business deals that are viable.”

In his parting note, Jun expressed his appreciation to his clients and to the Bintulu Development Authority (BDA) who has aided AMAL over the years.

“We believe that in achieving greater success in business, we have to work together with our clients to make things happen. They (the clients) deserve a thank you and appreciation from the business communities, as they are the ones who have made the projects viable and created business opportunities for the contractors.

“For BDA, established as the regional development authority more than 30 years ago, it has brought rapid transformation to Bintulu business com­munity. It is an irrefutable fact on how Bintulu has transformed itself from a small fishing village into a modern O&G township in the state. Towards our benefit, BDA has brought about an environment conducive to business in tandem with its mission in making Bintulu a great industrial and agricultural hub that attracts small and major multinational companies to Bintulu.”