PETALING JAYA: Construction and engineering, procurement, construction, and commissioning (EPCC) specialist Sarawak Consolidated Industries Bhd’s (SCIB) wholly owned subsidiary, SCIB Ecobuild Sdn Bhd, has entered into a co-development agreement with Inland World Sdn Bhd to jointly undertake a high-rise residential development in Penampang, Sabah.
The proposed development will be undertaken on two parcels of land, measuring about 0.84 acres and 0.811 acres respectively. The collaboration marks SCIB’s entry into the property development segment, enabling the group to leverage its established EPCC expertise across a broader portion of the property development value chain.
The development is expected to broaden the group’s earnings base by creating new revenue opportunities across both the property development and construction and EPCC segments, while contributing positively to the group’s long-term earnings growth.
SCIB’s future property development activities constitute a diversification of its business under the Bursa Malaysia Main Market Listing Requirements, and the group will make the necessary announcements and seek shareholders’ approval accordingly.
Under the co-development agreement, SCIB Ecobuild will be entitled to 80% of the project’s net development profit, with Inland World receiving the remaining 20% under the agreed profit-sharing arrangement. The profit-sharing structure reflects the respective roles and responsibilities of the parties under the collaboration.
SCIB said the project has progressed through the necessary planning and regulatory processes, with implementation to proceed in accordance with the terms of the co-development agreement.
Non-independent non-executive chairman Datuk Chong Loong Men commented, “This collaboration marks an important milestone in broadening SCIB’s earnings base while remaining closely aligned with our core construction and EPCC capabilities.
“By leveraging our expertise in project planning, cost management and construction execution, we are expanding our participation across the broader property development value chain in a disciplined and strategic manner. This approach supports our long-term growth strategy while creating sustainable value for our shareholders.”
He added, “Sabah is an important market for SCIB, and this Penampang development provides the Group with an opportunity to strengthen its presence in the state beyond its traditional construction and EPCC activities. We believe this collaboration provides a practical platform for SCIB to build its property development capabilities in a disciplined and sustainable manner while supporting the group’s long-term growth strategy.”
The Penampang project provides SCIB with an opportunity to expand its participation across the property development value chain, from project planning and management through to construction execution. As the project progresses, the collaboration is expected to diversify the group’s earnings base and strengthen SCIB’s long-term presence in Sabah.
Looking ahead, SCIB said it intends to pursue carefully selected development opportunities in strategic growth locations where its construction and EPCC capabilities can create execution efficiencies and cost advantages. The group believes this integrated approach will support the expansion of its project pipeline, broaden its earnings base and deliver sustainable long-term growth for its shareholders.
