PETALING JAYA: Sunway Construction Group Bhd (SunCon) has secured a RM1.5bil contract to undertake construction works for the Rapid Transit System Transit-Oriented Development (RTS TOD) at Bukit Chagar, Johor.
In a filing with Bursa Malaysia, SunCon said the contract was awarded to its wholly-owned subsidiary, Sunway Construction Sdn Bhd (SCSB), by Sunway Integrated Properties Sdn Bhd (SIPSB), an indirect wholly-owned subsidiary of Sunway Bhd.
SunCon said the award will involve the construction and completion of a multi-storey park and ride building for the RTS TOD project, drop-off and pick-up facility, immigration customs and quarantine complex connection, the perimeter ring road and retaining walls (Part A).
Additionally, the contract will also entail the construction and completion of a retail mall, podium and top side at Bukit Chagar station (Part B).
“The notice to proceed (NTP) shall be issued to SCSB in separate phases, each corresponding to the commencement of different parts of the works.
“Following the signing of the letter of award, the first NTP has been received for Part A Works, with a commencement date of March 5, 2025 and an expected first section completion by November 2026 and an overall completion for Part A Works by November 2027.”
SunCon said the commencement and completion dates for Part B shall be confirmed in the subsequent NTP, which will be issued at a later date.
SunCon said the works will not have any effect on its share capital and substantial shareholders’ shareholding, as it does not involve any allotment or issuance of new shares by the company.
“The works are not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of SunCon Group for the financial year ending Dec 31, 2025 (FY25).
“However, barring any unforeseen circumstances, the works are expected to contribute positively to the earnings of SunCon Group for FY25 onwards.”
The contract is deemed a related-party transaction as Evan Cheah Yean Shin is a director and major shareholder of SunCon, an alternate director to his father Tan Sri Jeffrey Cheah Fook Ling on the board of Sunway, as well as a director of several subsidiaries and a major shareholder of Sunway.
SunCon said its total outstanding order book currently stood at RM7.6bil.
“The total new projects secured by SunCon Group this year including the abovementioned works for the RTS TOD project amounted to RM1.7bil,” it said.–THE STAR
