Mitrajaya Secures RM70 Million Construction Contract for Langkawi Serviced Apartment and Training Centre
Construction and engineering group Mitrajaya Holdings Bhd (KL:MITRA) has landed a RM70 million contract via its wholly owned subsidiary Pembinaan Mitrajaya Sdn Bhd to develop an eight-storey serviced apartment building in Langkawi that will also function as a training centre and recreational hub for staff.
In a filing with Bursa Malaysia, Mitrajaya revealed that the client is undisclosed due to a non-disclosure agreement (NDA), but the project will begin upon site possession expected at the end of June 2025, with a targeted completion timeline of 24 months.
🏗️ Project Scope: More Than Just Serviced Apartments
While formally described as a serviced apartment development, the building will double as:
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A training facility — possibly for corporate or hospitality staff development
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A recreational space — featuring lifestyle or wellness amenities for employee use
This dual-function design reflects new post-pandemic trends in workforce development where on-site accommodation and upskilling infrastructure are becoming critical to retaining and developing talent, especially in remote or tourism-centric locations like Langkawi.
📍 Why Langkawi? A Strategic Location for Workforce-Linked Developments
Langkawi, a duty-free island and eco-tourism hotspot, has increasingly seen hybrid infrastructure projects that serve both hospitality and institutional purposes. The island’s steady recovery in tourism, along with the ongoing Langkawi Development Blueprint, makes it an attractive site for:
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Staff accommodation for luxury resorts and hospitality groups
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Training centres for aviation, cruise, or logistics operators
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Corporate retreats or leadership campuses
With Langkawi International Airport located nearby and infrastructure enhancements ongoing (including ferry terminal upgrades and sustainable tourism initiatives), projects like this are expected to be part of long-term investment cycles in the island.
📊 Impact on Mitrajaya’s Financials and Order Book
Mitrajaya said the RM70 million contract will positively contribute to:
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Earnings and net assets for the financial years ending Dec 31, 2025 and 2026
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Cash flow stability over the two-year construction period
As of end-2024, the group reported an outstanding order book of RM1.02 billion, and this new project strengthens its revenue visibility into 2026.
🧾 Summary of Financial Context:
| Metric | Value |
|---|---|
| Contract Value | RM70 million |
| Duration | 24 months |
| Site Possession Date | End of June 2025 |
| Outstanding Order Book | RM1.02 billion (as of 2024) |
| Stock Price (Last Close) | 31.5 sen |
| Market Cap | RM244.49 million |
| YTD Stock Movement | -8.7% |
📈 Strategic Positioning: Mitrajaya’s Focus on Institutional and Hospitality Builds
Mitrajaya has built a reputation for handling diverse construction projects across:
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Public sector infrastructure
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Healthcare and institutional buildings
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Residential high-rises and hospitality developments
This Langkawi project further signals the group’s ability to secure niche, design-forward contracts, especially those requiring confidentiality or specialist construction integration.
🔍 Non-Disclosed Client: What It Could Suggest
While the client’s identity remains undisclosed, market observers speculate the project could be linked to:
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A hospitality group building staff accommodation near a major resort
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A government-linked entity developing a skills or education centre
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A multinational corporation setting up a regional training and incentive hub
These scenarios are consistent with both the building’s dual functionality and the strict NDA terms, often imposed by institutional or strategic investors.
✅ Conclusion: Langkawi Project Reinforces Mitrajaya’s Growing Portfolio
With the RM70 million Langkawi project now added to its books, Mitrajaya Holdings Bhd is maintaining its focus on specialised, high-value construction contracts that support long-term economic and tourism development.
As Malaysia intensifies its investments in infrastructure, tourism, and vocational training facilities, builders like Mitrajaya are poised to benefit from steady project flows, especially in strategic locations like Kedah, Penang, and Johor.
