VGI moved to increase its presence in the international market by setting up the joint venture firm – Titanium Compass Sdn Bhd – with three major out-of-home advertising firms in Malaysia.

They planned to acquire a 10-year contract to manage advertising platforms at 31 MRT stations and on 58 trains on the new 51km-SBK line.

The first phase of operation is expected by year-end, becoming fully operational by mid-2017.

Surachet Bumrongsuk, is chief executive officer of VGI Global Media, or VGI, a “Data Centric Media Hypermarket”. He revealed VGI’s decision to establish a Malaysia-incorporated joint-venture firm called Titanium Compass, or “TCSB”, jointly with the three major out-of-home (or OOH) advertising firms in Malaysia to operate advertising media platform business in the country.

The Malaysian partners include Puncak Berlian, a subsidiary fully owned by Redberry, Malaysia’s second largest OOH media agency.

They plan the country’s most diverse range of advertising platforms (e.g. airports, mass transits, office towers, cinemas); Utusan Airtime, a leading media publishing house; and Ikatan Asli, which operates more than 2,400 advertising billboards and screens throughout Malaysia. Initially, TCSB will be 19 per cent-owned by VGI, with Puncak Berlian, Utusan Airtime and Ikatan Asli holding 51 per cent, 20 per cent and 10 per cent equity stakes, respectively, in the company.

TCSB has made a tender offer for, and been awarded, a contract under which MRT Corp – developer of the new SBK (or ‘MRT1’) metro line, the first heavy rail line in Kuala Lumpur, with a distance of 51 kilometres -grants TCSB a10-year concession to manage advertising platforms at 31 stations and on 58 trains on the line. The project is expected to begin the first phase of operation by this year’s end and become fully operational by mid-2017.

After that, TCSB will raise its registered capital to MYR 18 million (or about Bt148.53 million), at a maximum, upon which VGI may increase its holding in the company to a new level of up to 30 per cent.

“The award of the contract for SBK (MRT1) line to TCSB marks a major milestone for our mission to increase our presence in the Asean economic community (or AEC) as a way to enhance our growth rates,” Surachet said.