KUALA LUMPUR (Aug 17): Straits Energy Resources Bhd (KL:STRAITS) has proposed to diversify into engineering, procurement, construction and commissioning (EPCC) services, saying the move would allow it to pursue higher-value contracts in areas such as renewable energy, data centres and smart city infrastructure. The diversification is expected to result in the EPCC business contributing 25% or more of the group’s net profit, or diverting 25% or more of its net assets to an operation that differs widely from its existing businesses, said Straits Energy in a bourse filing on Monday. The EPCC business, it said, will be undertaken through its existing subsidiary Straits CommNet Solutions Sdn Bhd (SCS), whose principal activities currently include the provision of telecommunications and network services, information technology services and construction work. SCS is a CIDB-certified Grade G7 contractor, which allows it to undertake civil engineering and building construction projects without a limit on project value. Straits Energy said the certification, together with its Malaysia Digital status, would position the group to undertake high-value, end-to-end turnkey projects in areas such as renewable energy, data centres and smart cities. The group intends to tender for high-value infrastructure projects, including smart city and modern urban infrastructure developments, as well as renewable energy facilities such as solar photovoltaic farms and related power infrastructure. Straits Energy said it would leverage its existing technical expertise, project management capabilities and vendor network to expand its EPCC operations into sectors including oil and gas, smart city and public infrastructure, high-tech industrial and data centres, renewable energy and utilities, healthcare and education. The proposed diversification builds on the group’s expansion into telecommunications and network services, which was approved by shareholders in March 2023. Since then, revenue from the segment rose 93.12%, or RM97.96 million, to RM105.19 million for the 18-month financial period ended June