SCIB Plans Strategic Asset Disposal Valued at RM151.19 Million

Sarawak Consolidated Industries Berhad (SCIB) is embarking on a significant strategic restructuring, marked by the planned disposal of assets valued at around RM151.19 million. This move, overwhelmingly supported by shareholders at an Extraordinary General Meeting, signals a clear alignment with the group's future direction. The disposals include the entirety of its stake in SCIB Concrete Manufacturing Sdn. Bhd. for RM113 million and seven land parcels collectively valued at RM38.19 million.

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This move allows the company to unlock significant value from its manufacturing business and land bank.

Executive Chairman Datuk Chong Loong Men emphasized that these actions will allow the company to unlock substantial value from its manufacturing business and land bank. "We are resetting SCIB to a stronger foundation and focus," he stated. This strategic repositioning is designed to bolster SCIB's financial standing through improved cash flow and liquidity, enabling the company to pursue more substantial and sustainable opportunities within the Engineering, Procurement, Construction, and Commissioning (EPCC) segment.

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We are resetting SCIB to a stronger foundation and focus.

The Malaysian construction sector, particularly in East Malaysia, continues to benefit from robust infrastructure spending. Projects such as the Sarawak-Sabah Link Road are expected to sustain demand for engineering and construction services. With shareholder approval secured, SCIB is poised to enter its next growth phase, armed with a clearer strategic focus, a healthier balance sheet, and enhanced capital discipline. This strategic pivot is crucial for SCIB to maximize asset value and solidify its position as a more focused EPCC player, better equipped to navigate the dynamic construction landscape.

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With shareholder approval secured, SCIB is now positioned to execute its next phase of growth with a clearer strategic focus, a stronger balance sheet, and better capital discipline.