For latest information, can join us at

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88

With GE 15 in just few days away, we pray that Malaysia will be in good hand of politician that are voted into power. I believe that foreign fund and investor will start to flock back into Malaysia when a new government is formed. Currently, sector that are attractive in Malaysia will be the oil and gas industry and the related supply chain.

As the world is pivoting away from dirty energy sources and heading into renewable and clean energy, Malaysia is sitting on the sweet spot to export excess clean energy production to energy hungry country like Japan, South Korea and China.

Today will be just touching on Project Safina and its potential effect to MUHIBAH (5703) MUHIBBAH ENGINEERING (M) BHD

As you can see from below, MUHIBAH provide vast range of business services support the oil and gas industry and other construction and energy industry as well.

The Project Safina is an initiative by Petronas to build 100 OSV in 4 years, replacing the current aging servicing ship. This project which is launched in 2019 got delay due to Covid19.

Petronas invites bids for building of 16 OSVs | The Edge Markets

However, things are restarting back as global economy had pick up again with supportive crude oil prices to support the oil and gas industry.

AMIM applaud decision by Petronas to renew the ageing fleet of Offshore Support Vessels (OSVs) (malaysiakini.com)

This round, all the ship will be built by local shipyard which are registered with AMIM (Association of Marine Industry of Malaysia)

Here are the member list of AMIM

Members of Association Of Marine Industries Of Malaysia (AMIM)

MUHIBAH shipyard is one of the members.

There are many other shipyards that are registered with AMIM, amongst them is SYSCORP. The recent run up of SYSCORP share price could be very well reflecting the positive momentum from the busy ship building activities for the coming few years.

Building 1 ship alone will take 18 months to 24 months to complete. 

With a balance of 84 OSV yet to be tendered out, we can foresee shipyard will be busy for the next 5 years.

MUHIBAH is very attractive currently, looking at its prospect and the current price at RM 0.415

With the share price trading at the lowest level in history, the current price might see a sweet investment point as the oil and gas industry in Malaysia pick up next year.

IMPORTANT NOTICE

Please be informed that I am not a professional or certified analyst. I am not a licensed consultant, just a normal retail investor. I am just sharing my ideas and opinion on the market outlook. Any company mentioned should not be interpreted as a buy/sell/trade call. Please do your own research and buy/sell/trade at your own risk.

For latest information, can join us at

Blog https://targetinvest88.blogspot.com

Telegram https://t.me/targetinvest88