Varia Announces Signing Of MoU With Sungai Klang Link For 52.5km Elevated Highway Project

Elevated Highway Project Marks New Milestone in Varia’s Infrastructure Contributions in Malaysia

KUALA LUMPUR, 8 MARCH 2024 – Varia Berhad ("Varia" or the "Group"), an experienced player in the field of construction and property development, is thrilled to announce the signing of a Memorandum of Understanding (“MoU”) with Sungai Klang Link Sdn. Bhd. ("SKL") to embark on the ambitious Sungai Klang Link Elevated Highway Project. This significant venture represents a strategic partnership aimed at harnessing Varia’s extensive construction expertise in the design, construction, operation, and management of this pivotal infrastructure development in the Klang Valley.

SKL, a special purpose vehicle company, has been actively engaged since 2019 in securing a concession agreement from the Government of Malaysia for the right to build, manage, own, and operate the Sungai Klang Link Elevated Highway. The proposed highway, spanning approximately 52.5 kilometres along the Klang river, is set to integrate seamlessly with existing highway networks through 7 proposed interchanges, providing an essential alternative route for road users in the region.

The project has garnered substantial support from various government departments and local authorities and is now at an advanced stage of securing final approval from the Government of Malaysia. Varia, with the Group’s comprehensive portfolio of construction works and a rich history of undertaking design and build projects, is uniquely positioned to contribute significantly to this venture.

Datuk Benson Lau, Managing Director of Varia commented, "We are thrilled to embark on this groundbreaking journey alongside SKL with the Sungai Klang Link Elevated Highway Project. This collaboration is not just a testament to Varia's commitment to enhancing Malaysia's urban infrastructure but also an opportunity to set new benchmarks in construction and design excellence. By combining our rich expertise in innovative construction solutions with our dedication to sustainable development, we are poised to deliver a project that will significantly ease traffic flow, improve connectivity, and contribute to the economic growth of the Klang Valley. We look forward to the positive changes this project will bring to the community and the environment.”

Datuk Hj. Mohd. Nazri bin Ismail, Managing Director of SKL added, "At Sungai Klang Link Sdn. Bhd., we are pleased to announce our collaboration with Varia Berhad on the Sungai Klang Link Elevated Highway Project. This partnership aligns with our goal to improve the transportation network in the Klang Valley by offering an additional route to ease traffic congestion. Varia Berhad's experience in managing significant infrastructure projects gives us confidence in the successful execution of this elevated highway. We anticipate that this project will contribute positively to the urban infrastructure, supporting more efficient transportation options. Our combined efforts aim to address the current challenges in urban mobility and serve as a practical addition to the region's infrastructure."

As at 8 March 2024, 5:00 P.M., Varia’s share price is RM0.890 with a market capitalisation of RM371.1 million, while the orderbook of the Group remains strongly at RM1.1 billion.