Setia Haruman to stretching its boundaries

Setia Haruman is considering a listing, either locally or overseas, in three to five years and venturing beyond Cyberjaya.


GROWING CONCERN:Lao says Setia Haruman intends to keep the business flourishing even after Cyberjaya is developed.

SETIA Haruman Sdn Bhd, master developer of the country's first information and communications technology (ICT) hub Cyberjaya, may plan an initial public offering (IPO) in three to five years to raise funds.

It may consider a local IPO or list on a foreign exchange, Setia Haruman chief operating officer Lao Chok Keang said.

He said Setia Haruman was considering venturing beyond Cyberjaya to stretch its boundaries.

"We are currently a single-project entity with only Cyberjaya in our hands. We want to run it as a growing concern so that the business can flourish even after Cyberjaya is developed," Lao said.

Setia Haruman, 75 per cent held by Emkay Group and 25 per cent by UEM Group, has the rights to sell land parcels as well as plan, design and develop the infrastructure at Cyberjaya from 1997 until the project is developed by 2019.

In an interview with Business Times in Cyberjaya, Lao said that Setia Haruman may buy land on the outskirts of Cyberjaya and in other high-impact areas in the country to build up the company.

It may also venture to Vietnam, Cambodia and eastern European countries looking at similar developments like Cyberjaya.

"Cyberjaya is a planned city and there're only a few in the world. We have to create a character to sell the idea," Lao said.

He declined to elaborate on plans or say if the company was in talks with any parties.

"Our people are well equipped to handle projects overseas. We have expertise in housing, infrastructure development and building construction that requires specific ICT needs."

In the financial years 2006 and 2007, Setia Haruman achieved more than RM500 million sales, with 10 per cent profit margin.

Lao said there will be an improvement this year as the company has been selling more land in Cyberjaya to developers eyeing high-impact projects.

Setia Haruman has formulated a five-year plan, ending 2010, to sell land parcels for housing, research institutions, hospital and colleges.

"While it is difficult to attract people to come here, we are saying that the cost is lower to operate in Cyberjaya. We are already seeing a number of big names establishing a base here," Lao said.

Setia Haruman is promoting the digital city with other stakeholders - Multimedia Development Corp (MDeC), Sepang City Council and Cyberview Sdn Bhd - to ensure its sustainability.

"The driver for Cyberjaya is the government's investment through MDeC in bringing information technology companies here," Lao added.

By New Straits Times (by Sharen Kaur)