KUALA LUMPUR: Geosynthetics and erosion control specialist Fibromat Bhd is eyeing fresh fundraising to back its RM2 billion tender pipeline in infrastructure projects, alongside a RM700 million dam development.
CEO Danny Ng Kian Boon said the company recently secured RM10 million through BR Capital Malaysia’s peer-to-peer financing platform and is exploring additional options, including bank loans.
“We are definitely looking for fundraising because when we listed, our order book was only RM40 million. Now our order book is almost RM400 million, so naturally we need more funds,“ Ng said during the company’s second quarter FY2025 (Q2’25) results briefing today.
The group now has RM36 million in project financing facilities and is in talks with banks for further funding. Beyond loans, it also taps performance advances and letters of credit to fund raw material sourcing.
“We are talking to advisers and bankers to expand our loan, and how they can assist us. Because we need funding, definitely,“ Ng said.
Fibromat, which transferred to Bursa Malaysia’s ACE Market earlier this year in May, is moving up the value chain from being a lower-tier supplier to taking on direct contractor roles.
“The growth in just over three months has been very encouraging. Going forward, the opportunity for Fibromat is quite positive,“ Ng said.
He expects opportunities from its RM2.7 billion tender pipeline to extend into 2028–2029, providing long-term earnings visibility if awarded. “Depending on the project size, it could, you know, from once they call for bidding, until award, until completion, normally it will take about three years, at least.”
The government now only invites technically and financially strong players into selective tenders with a growing preference for design-and-build contractors, Ng said.
“There are two fundamental criteria for qualification. The first is technical – having the requisite expertise and proven experience to perform the task effectively.
“The second, and more critical, is financial – demonstrating the capacity to undertake and sustain the project. Only those who meet both requirements will be shortlisted among the select few.
“In addition, the government increasingly emphasises the ability to offer both design and execution capabilities. This integrated approach is precisely what enables us to step in as a design-and-build contractor,“ Ng explained.
Fibromat’s latest wins include an RM283 million Central Spine Road package in Kelantan secured in May, while bids are under way for major reclamation and ground treatment projects such as Penang’s Silicon Island development, as well as jobs in Malacca and Johor.
Fibromat recently acquired new prefabricated vertical drain assets and contracts worth RM46.9 million, expanding its fleet to 25 rigs, all of which are fully utilised.
Ng said Fibromat’s workforce has expanded from 80 at the time of its initial public offering to about 300 today.
“As we speak today, with the Central Spine Road and all the projects from prefabricated vertical drains, Fibromat’s workforce task force has increased to approximately 300 personnel internally. They range from labourers to professionals, all with the expertise to undertake the projects that you have seen,“ he added.
