PETALING JAYA: Bursa Malaysia-listed Powerwell Holdings Bhd, via its wholly owned subsidiary Powerwell International Sdn Bhd,today entered into a memorandum of understanding (MoU) to acquire a majority stake in M Electrical & Engineering Sdn Bhd, a Malaysia-based electrical and engineering solutions provider with a growing presence in the Asean region.
Powerwell International will acquire 55% equity interest in M Electrical & Engineering from Chen Choong Hee in a deal valued at RM8.25 million.
M Electrical & Engineering, established in 2017, specialises in manufacturing, supplying, and fabricating customised electrical switchboards and panels. The company provides panel assembly services, wiring works, inspections and participates in solar power farm projects in Malaysia and Australia.
The strategic acquisition puts Powerwell at the forefront of driving the electrical industry. The group aims to revolutionise the electrical industry by developing state-of-the-art electrical houses (e-houses), which are customisable, preassembled, and pretested modular power substations.
Powerwell will capitalise on M Electrical & Engineering’s exceptional expertise in panel assembly, wiring craftsmanship, inspections, and electrical switchboard testing, complemented by Powerwell International’s established industry presence.
Powerwell International managing director Datuk Adam Yee Hee Hoon said, “E-houses represent a major innovation in the electrical industry, combining efficiency, cost-effectiveness, and adaptability into a plug-and-play solution. We are enthusiastic about the strategic acquisition of M Electrical & Engineering as it allows us to lead the development of e-house technology and tap into the immense growth potential in the Apac region.”
The growing demand for reduced cost, risks, and delivery time propels the electrical industry away from traditional practices and towards e-house technology. These customised, preassembled, and pre-tested modular power substations are ideal for various applications, including industrial, utilities, renewable energy, outdoor switchgear, and moveable or mobile substations.
“The transformation in the electrical industry is unmistakable,” Yee said, as e-houses offer an efficient, cost-effective, and swift solution, perfectly aligning with the industry’s evolving demands.
Aside from that, e-houses are gaining traction due to the rising demand for mobile substations in various sectors such as telecommunications infrastructure projects, manufacturing industry, and infrastructure under the ‘Smart City Project’. E-houses are also complementing power demand drivers in Malaysia, including data centres, public infrastructure projects, smart cities, mobile power stations for manufacturing, and mega rail projects.
Investments and strategic initiatives by market players, particularly in the oil & gas industry, are also fuelling the growth of the Asia-Pacific e-house market. The region’s e-house market is projected to experience robust growth, surging from US$383 million (RM1.8 billion) in 2022 to US$591 million by 2028, reflecting a compound annual growth rate of 7.5% from 2022 to 2028.
The acquisition is well timed, considering the rapid increase in data centre investments in Malaysia, which has received RM76 billion in investments from 2021 until March this year.
Malaysia is poised to become the region’s next data centre hub, attracting global players such as Amazon Web Services, Google, and Microsoft. The development of e-houses will be pivotal in supporting the growing demand for mission-critical digital infrastructures, data management, and storage.
