ABG bets on modular construction with new unit

MANILA, Philippines — Asiabest Group International Inc. (ABG) plans to establish a new subsidiary aimed at expanding the group’s presence in modular construction as demand grows for faster and more cost-efficient building solutions.

The new unit, ABG Modular, will have an authorized capital stock of P100 million and an initial subscribed capital of P10 million, according to the company.

The new unit will serve as ABG’s platform to scale modern modular construction solutions across key sectors, including housing, commercial developments, infrastructure, schools and community facilities.

Modular construction refers to the construction of structures in prefabricated sections, or “modules,” which are done offsite in a factory setting, then transported to the project area for quick assembly.

The company said modular construction continues to gain traction among investors and property developers due to its ability to compress project timelines and reduce cost uncertainties, while delivering consistent quality compared with traditional construction methods.

ABG Modular is expected to pursue projects that require faster turnaround and predictable costs, as the industry shifts toward industrialized building systems.

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Integrated provider

Jan Michael Lim, ABG’s investor relations officer, said the planned subsidiary aligns with the group’s strategy of becoming a vertically integrated supply, logistics and manufacturing company.

“The planned creation of ABG Modular is grounded on our mission in becoming a vertically integrated supply, logistics and manufacturing powerhouse,” Lim said. “We will pursue more design-and-build contracts for housing developments and schools, translating speed, reliability and sustainability into real shareholder value.”

ABG Modular is initially planned to operate in partnership with Concrete Stone Corp. (CSC), one of the country’s established producers of precast concrete and aggregates.

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While ABG continues to pursue the full integration of CSC, the partnership is expected to leverage CSC’s production expertise to support the supply of precast components and scale up modular construction operations.

The company said modular construction could help address the country’s shortage in mass housing and school buildings, allowing for quicker project completion, improved margins and broader value creation in the domestic market.