Main Market-listed engineering services group AWC Berhad (“AWC” or the “Group”), via its wholly-owned subsidiary Ambang Wira Sdn Bhd (“AWSB”), has received official confirmation from the Ministry of Works (KKR) that the Malaysian Government has approved a one-year extension of the current ten-year Concession Agreement, which was due to expire on 31 December 2025. The extension will run from 1 January 2026 to 31 December 2026.
Along with the approval, KKR provided a copy of the Interim Agreement under the existing Privatisation Agreement for Building Support Services for Government Buildings in the Southern Zone and Sarawak Zone, which will take effect upon execution by both parties. While no specific contract sum is stipulated, the estimated value of works under this one-year extension is approximately RM63.7 million, based on prevailing rates and the scope of services under the existing concession.
The Concession Agreement covers the management, maintenance, and upkeep of Federal Government buildings in the Southern Zone (Malacca, Negeri Sembilan, and Johor) and Sarawak Zone, including services under the Critical Asset Refurbishment Programme (CARP).
Dato’ Ahmad Kabeer bin Mohamed Nagoor, Group CEO/President of AWC Berhad, said:
“We are pleased to secure the 1-year extension, which reflects our proven track record and the confidence placed in us by KKR. Having managed this concession since 1998, we remain committed to delivering high-quality services for the Government’s facilities management needs. At the same time, we are actively preparing for the tender of the new concession.”
AWC has been managing and maintaining Federal Government buildings in the Southern and Sarawak Zones since June 1998, with a 10-year renewal commencing in 2016, expiring in December 2025. The CARP runs concurrently with the concession.
The extension provides earnings clarity and strengthens the Group’s recurring revenue base, bringing total contracts announced for FY26 to approximately RM257 million. The Group’s divisions continue to maintain a healthy tender pipeline, actively pursuing new opportunities, and AWC maintains a positive outlook while remaining prudent amid broader macroeconomic developments.
