(From left) Instacom Engineering Sdn Bhd executive director Wong Say Khim, Instacom group chief executive officer Anne Kung and director Thomas Ngu Sing Hieng during the media briefing held at 360 Urban Resort Hotel.
KUCHING: Instacom Group Bhd (Instacom) is set for relisting on the Main Board of Bursa Malaysia on Oct 8, 2012, by way of a Reverse Takeover (RTO) of I-Power Bhd (I-Power), which will enable it to raise funds for further expansion.
Incorporated in 2001, Instalcom is a subcontractor in Sabah and Sarawak, which is now principally involved in provision of telecommunication engineering and services such as providing full turnkey design and engineering solutions for telco networks.
The first breakthrough for Instacom came in late 2004 when it was appointed by a local telco and concurrently with the offer by Malaysia Debt Ventures to provide a sizeable RM43 million loan facilities.
Instacom currently undertakes work nationwide with concentration in the southern region of Klang Valley, Malacca and Johor as well as East Malaysian states of Sabah and Sarawak. It also has bases in the northern states of Penang and the East Coast of Terengganu.
Such presence gives Instacom an edge over its competitors to bid for and participate in major projects which have been implemented by the Malaysian government that are expected to be constructed over the next five to 10 years.
This include the government Integrated Radio Network project, and the Universal Service Provision project to bring access to underserved areas as well as the high speed broadband (HSBB) project.
According to its chief executive officer Anne Kung Soo Ching during the media briefing held yesterday, the positive outlook of the telecommunication sector spending in Malaysia alongside with steady growth of telco network services market here allowed Instacom to leverage on the growth opportunities going forward.
“The telco service market is expected to register a compounded annual growth rate of RM3.3 per cent during the period from 2010 to 2015. Meanwhile, the household broadband penetration rate is projected to reach 75 per cent in 2015,” she added.
Going forward, the ‘boom’ would drive the need for more efficient connectivity, which would in turn benefit Instacom given that telecommunications network service market in the country was expected to reach RM6.7 billion in market size in 2016, based on the projection by Protege Associates.
In addition, the group was also expected to benefit from the rollout of the HSBB and broadband for the general public (BBGP) under the on-going National Broadband initiatives.
Past completed contracts by Instacom for the financial year ending Dec 31 2009 (FYE2009) to FYE2011 was worth approximately RM175.35 million and its order book as of September stood at RM35 million.
Kung pointed out that its clients and project sponsors encompassed all the main players in the telecommunications industry, including telco companies and state-backed companies.
Its ability to deliver services to the clients and project sponsors was underpinned by its trained and skilled workforce numbering around 300 personnel. “Many of them have undergone the required training on the equipment currently deployed in the industry.”