KUALA LUMPUR: SILK Holdings Bhd is confident of retaining
its double-digit growth in total traffic volume on the Kajang-Silk Highway next year with the areas being served continuing to mature.

"Last year, total traffic volume rose by 14.3 per cent to 51.8 million vehicles and we are positive of maintaining the double-digit growth next year," its executive chairman Datuk Mohd Azlan told reporters after the company's annual general meeting here today.

He said the 37km highway will also see positive spill-over effect from the Mass Rapid Transit (MRT) project as this will make Kajang more attractive.

"MRT project will help to boost the population growth in this area as few stations will be build within the highway vicinity," he added.

SILK Holdings is also expected to undertake a lane expansion
programme in order to cater to the increase in traffic flow, Mohd Azlan said, adding that the major portion of its capital expenditure in 2013 will be for the highway infrastructure division.

Without stating the amount involved, Mohd Azlan said the lane expansion programme will be done in four areas.

"We have already done one expansion lane in The Mines-Kajang bypass and next year we expect to commence our second project in UPM-Uniten interchange."

The highway division currently contributes 25 per cent to the group's total revenue, while the major contribution comes from the oil and gas services division.

For the financial year ended July 31, 2012, SILK Holdings recorded a reduced loss after tax and minority interest of RM680,000 compared with a loss of RM11.24 million the previous year.

Revenue for the year improved to RM341.06 million from RM247.73 million previously.

Mohd Azlan said although the combination of the two divisions recorded losses, the marginal losses were considerable improvement as revenue for the year continued on the fifth year of uptrend.--BERNAMA