KUALA LUMPUR (June 27): Handal Energy Bhd has proposed to diversify its principal activities into two new business segments to further expand its revenue stream and earnings base.

The proposed new segments are telecommunications network infrastructure solutions and marine sand businesses, the company said in a filing with Bursa Malaysia on Tuesday (June 27).

The telecommunications business involves owning, operating and leasing out space for telecommunications towers, and setting up and integrating 5G private networks.

The marine sand segment involves extracting, operating, and domestic and export sales of marine sand, and its related business activities, it said.

Handal Energy said the proposed diversification was marked by two business milestones via its units, namely the award of a 10-year network facilities provider licence from the Malaysian Communications and Multimedia Commission in November 2022, and a 15-year concession for the extraction and sale of marine sand in Sabah in December 2022.

The board expects the new business segments to contribute 25% or more to the group’s net profit. Hence, it would like to seek shareholders' approval to undertake the proposed diversification, the filing said.

Its existing principal business involves the provision of integrated crane and pipeline engineering services to the oil and gas industry in Malaysia.