Leader Universal will continue to make its mark in Cambodia

via CAAI News Media

WITH some 15 years of investment history in Cambodia, Leader Universal Holdings Bhd (LUH) (4529) is set to continue making its mark in the country where many investors are now flocking to.

But with horror stories of how certain Malaysian investors got badly affected for focusing mainly on one country and placing their "eggs in one basket" such as Dubai, some may question whether LUH has over-committed itself in Cambodia.

"We have always invested with caution," said the company's managing director and chief executive officer Datuk Sean C.H. H'ng.

Pointing to its first independent power producer (IPP) project via Cambodia Utilities Pte Ltd which was completed and started operations in 1997, he said the investment has provided LUH with fairly good returns.

"We did not pursue the next two fuel oil-fired IPPs nor the hydro IPPs in Cambodia that came after this, but we pursued this coal-fired power plant (in Sihanoukville).

"There has been a span of 13 years before we embarked on any expansion in the country although we have many years of operating experience and extensive business networks in Cambodia," he added, saying that Leader is also looking at good investment opportunities outside of Cambodia but did not elaborate.

On where else in Cambodia is LUH looking to set up power plants in 10 years from now, H'ng said: "We have land for many years of expansion. We are leasing 20ha from our joint venture partner for the use of our 100MW coal fired power plant project.

"Our joint venture partner CIIDG, has sufficient land in the same area to cater for the expansion of an additional 700MW that has been planned to be implemented in the next few years."

LUH's strategic location near the deep sea for its latest power plant project in Sihanoukville, makes the area a logical site for any future expansion.

On how tough is it for a Malaysian company to be investing overseas, especially in a developing country like Cambodia, H'ng said: "I think it is always a challenge for any investment overseas, and not necessarily in Cambodia alone."

"There are many things to adapt to, from the local partners and local authorities, to local manpower capabilities and local cultures.

"Even growing the workforce can be a challenge. We have, however, been managing this aspect quite well and are confident that we can continue to do so," he said. - By Marina Emmanuel