KPower healthcare unit awarded RM48.6m contract for airbags, Covid-19 test kits by Indonesian firm

PETALING JAYA: KPower Bhd’s wholly owned subsidiary KPower Healthcare & Technologies Sdn Bhd (KPHealthTech) has accepted a letter of award from Indonesia’s PT Biotech Maju Sejahtera (PT BMS) for the supply of airbags/ breathing bags for GeNose and GeNose Covid-19 test machines for a minimum contract price of US$12.025 million (RM48.64 million).

The contract is effective for 12 months from the acceptance date and will be governed under the laws of Indonesia.

The award is expected to contribute positively to the net assets, consolidated earnings and earnings per share of the company for the financial year ending June 30, 2021 to June 30, 2022.

KPower group managing director Mustakim Mat Nun said this contract enhances its role in combatting the pandemic while growing its healthcare segment in one of the most populous countries in the world. Including this new contract, it has clinched over RM70 million worth of contracts in the healthcare segment under KPHealthTech in Indonesia to date.

“Together with our logistics arm Chemtrax Sdn Bhd’s involvement via the transportation of nitrile butadiene rubber and synthetic latex which are key materials for rubber gloves, we believe that we can contribute to the global efforts against the Covid-19 pandemic.

“We are very interested in the healthcare space and this letter of award further solidifies our efforts in building the right structure for our healthcare and technologies segment. With the acquisition of 70% in Granulab (M) Sdn Bhd early last month, we have built in-house technical knowledge, the licence to manufacture and distribute medical devices in Malaysia as well as various international certifications,” said Mustakim.

He added that healthcare is a serious business with long-term prospects, as such it has been careful in strategising the right structure to support this business.

“Combined with our network and resources, we believe that our venture into this segment will be a worthwhile endeavour.”

The latest contract comes on the back of the group’s maiden foray into the healthcare and technology business with the acquisition of Granulab and the RM24 million contract to distribute the PCR Reagent Kit for Covid-19 in Indonesia in January 2021. Granulab is 30% owned by Sirim Tech Venture Sdn Bhd, a subsidiary of Sirim Bhd.