SCIB secures 16-month EPCC contract worth RM8.26m in Kelantan

• “This new development will reinforce SCIB’s financial stability and robustness and pave the way for future growth opportunities, thus creating long-term shareholder value.”

KUALA LUMPUR (July 4): Sarawak Consolidated Industries Bhd (SCIB) has secured a 16-month engineering, procurement, construction and commissioning (EPCC) contract worth RM8.26 million from MinDagang Resources Sdn Bhd.

SCIB said its wholly-owned subsidiary SCIB Industrialised Building System Sdn Bhd (SCIB IBS) received the letter of award and acceptance for Phase 6 of a proposed housing development containing 35 single-storey terraced house units in Jajahan Bachok, Kelantan.

According to a bourse filing on Tuesday (July 4), the civil engineering specialist said the contract is expected to contribute positively to its future earnings during the tenure and progress of the contract. 

The group said SCIB IBS is the principal subcontractor for the project, which is under the banner of SPP Development Sdn Bhd — a subsidiary of the Perbadanan Kemajuan Iktisad Negeri Kelantan. MinDagang Resources is the main contractor of the project.

It also said the project is part of the RM400 million federal grant for state housing that will offer secured payment to SCIB. SCIB has been loss-making since the second half of 2021.

“This new development will reinforce SCIB’s financial stability and robustness and pave the way for future growth opportunities, thus creating long-term shareholder value,” SCIB wrote.

“Moreover, the continuous business collaboration with state government entities not only enhances SCIB’s reputation but also opens up new opportunities for SCIB group.

“These strategic steps align with the company’s aim to sustain profitability while delivering value to all its stakeholders, amplifying SCIB’s financial resilience in a competitive marketplace,” SCIB added.

As of its third quarter ended March 31, 2023, SCIB’s order book stood at a cumulative contract value of RM495.3 million.