Sarawak Consolidated Industries Berhad Accelerates Business

MoU with IRIX SDN. BHD.

Paving the Path for Mutual Growth and Progress

KUCHING, SARAWAK (11 JULY 2023) – Industrialised building systems specialist, Sarawak Consolidated Industries Berhad ("SCIB" or the "Company"), is delighted to announce the formation of a Memorandum of Understanding ("MoU") with IRIX SDN. BHD. ("IRIX"). As part of the Project SEA-H2X (SEA-Hainan-Hong Kong Express) ("the Project"), SCIB is poised to subscribe to up to 30% of IRIX SEA H2X SDN. BHD. issued capital.

The estimated value of the Company’s involvement in the Project amounting to Ringgit Malaysia Two Hundred Fifty Million (RM250,000,000.00), the venture offers substantial financial rewards and the promise of exciting growth opportunities for SCIB. It further fortifies the Company's financial stability and opens new vistas for expansion and value creation.

IRIX SEA H2X SDN. BHD. is part of an international subsea cable consortium to build the Project. The initiation of the MoU marks a transformative step in SCIB's growth strategy, setting the stage for a collaborative partnership with significant potential benefits. The joint venture is projected to provide both companies with ample opportunities to leverage their combined strengths and resources, ensuring the successful execution of the Project.

"The selection of SCIB as a strategic collaborator for this significant project underscores our strong capabilities and robust reputation in the industrialised building system sector," said Mr. Ku Chong Hong, the Managing Director of SCIB. "We eagerly anticipate the mutually beneficial outcomes this project promises to bring and look forward to strengthening our relationship with IRIX and other partners for more such ventures in the future."

Beyond the immediate financial prospects, the MoU further aligns with SCIB's overarching goal of fostering long-term growth, profitability, and value delivery for its stakeholders. The Project is testament to SCIB's unwavering commitment to enhancing shareholder value, reinforcing its financial resilience, and bolstering its standing in the competitive marketplace.

As the Company moves into the future, it expects this MoU and subsequent collaboration with IRIX to offer a wealth of benefits. From providing enhanced market exposure and competitive advantage to fostering innovation and knowledge exchange, this collaboration is set to significantly contribute to SCIB's continued success.

As of to date, SCIB’s order book stood at a cumulative contract value of RM365.99 million, demonstrating the Company's robust market performance and promising trajectory. The collaboration with IRIX on the Project SEA-H2X marks a new chapter in SCIB's growth story, offering a bright outlook for its future endeavours.