Establishing Presence in Australia
In today’s global economy, establishing operations in foreign markets is a growing necessity for companies of all sizes. For Gamuda, the business of international expansion is not only familiar to us, but it is an arena that we have strived in for years.
We are considering more overseas projects to maintain the growth pace that we have been achieving over the past decade, with a compounded annual growth rate of 15% in terms of revenue and profit. To do that, the Group intends to grow it’s construction business from 20% to 50% in the next three years through projects in foreign markets such as Singapore, Taiwan and predominantly Australia.
The decision to establish our presence in Australia has a multiplier effect where it will benefit our Group, its people and both nations as a whole. We have always looked to Australia as a key market. This has been made evident through the establishment of Gamuda Australia – a wholly-owned subsidiary by Gamuda Berhad to act as part of the Group’s business diversification strategy, as well as an expansion of global networks of operations. Within Australia, our focus on the company’s core business involves infrastructure design, construction, operation and maintenance.
This strategy, coupled with our breakthrough solutions for delivering significant engineering projects globally, has not only enabled our entry into the Australian market but also makes us a strong contender for railway and highway project tenders in the country.
Through our collective efforts, Gamuda Australia is now considered our second-largest construction base in the region, and we are continuously making plans to invest and contribute to its economy in the many years to come.
Much like how the Gamuda Australia team has great strengths with combined local capabilities and global expertise, this will be further emulated in the projects we successfully tender.
From a Malaysian perspective, expanding to Australia will enhance our ability to tap into our local talents. As globalisation continues to accelerate in the 21st century, retaining top talents such as young engineers and graduates grows increasingly competitive. By expanding to Australia, we will hence be able to tap into strong Malaysian talents who would otherwise have moved to other countries to find suitable jobs on their own accord.
On the other side, we will also provide opportunities for local jobs and skills enhancement through training. Among the many advanced technologies unique to Gamuda is the Autonomous Tunnel Boring Machine (A-TBM). Developed in-house, the A-TBM is an AI-powered tunnelling system that has successfully cemented our position as one of the leading innovative tunnelling contractors internationally. The system allows for remote monitoring with the incorporation of Industry 4.0 technologies such as Big Data and the Internet of Things, creating higher-skilled digital employment.
Given the A-TBM’s prestige, we are well placed to contribute to the construction landscape in Australia. Thus, we foresee that there will be a demand for hundreds of specially trained tunnelling crews in projects across the country in the future. Aligning with our strategy to expand, we’ve hence made it our mission to invest and replicate our specialised Tunnelling Training Academy (TTA) to Australia, much like how we have done so in Malaysia through successful collaboration with some of the best technical and vocational education and training (TVET) institutions.
Employment enhancement and opportunities aside, strategic partnerships with local Australian businesses and supply chain would also serve as a great advantage to our expansion. Our strategy is to engage and establish joint ventures with local and international businesses, such as Tier One contractors in the country. We also plan to unlock Tier Two and Three contractors’ capacity using our significant experience and balance sheet to contribute to the Australian infrastructure landscape.
“Our growth over more than four decades is underscored by our differentiated strengths and expertise, brought about by a strategic workforce who constantly think up ideas that create new opportunities for the Group. As we build, we will continue to invest in strengthening our capabilities to deliver sustainable solutions for people everywhere.”
– Dato’ Lin Yun Ling
These partnerships would allow us to exchange knowledge, build rapport and strengthen relationships with our Australian counterparts. And in return, the diversity of projects coupled with the enrichment of working with people across different cultures will develop both our nations’ people into gaining invaluable international experience.
The M6 Stage 1 motorway is a highway extension that aims to relieve traffic by taking up to 2,000 heavy vehicles off surface roads per day, and create thousands of new jobs and support families across Sydney. Meanwhile, the Sydney Metro West Project is a new underground railway that will connect Greater Parramatta with the Central Business District. Standing at a total of A$20B worth, this project is speculated to create 10,000 jobs.
Through Malaysia and Australia’s combined efforts and expertise, we are confident that we will have the right people to pull these projects through. Watch our Business Outlook 2021 video to learn more about Australia through the lens of Dato’ Ubull Din Om, Managing Director of Gamuda Engineering.