KUALA LUMPUR (April 8): Sarawak Consolidated Industries Bhd (SCIB) said it has accepted a revised contract worth RM162 million for the construction of high-rise residential units in Kota Bharu, Kelantan under the PR1MA Corp Malaysia affordable homes scheme.

This came after the group's wholly owned unit SCIB Properties Sdn Bhd executed a novation agreement with AUEI Teras Holding Sdn Bhd on April 5 to appoint another wholly owned subsidiary, SCIB Industrialised Building System Sdn Bhd (SIBS), as the main contractor for the project.

The initial contract, valued at an estimated RM120 million, was awarded to SCIB Properties back in May 2021.

In a bourse filing on Monday, SCIB said that under the revised contract, SIBS is required to deliver 632 residential units in Sering district within a 36-month period, followed by a 24-month defect liability period upon issuance of a certificate of completion and compliance for each section.

SCIB said that the revised contract is expected to contribute positively to the group’s future earnings, as any profit attributable to the group would be realised in stages during the tenure and progress of the contract.

In a separate statement, SCIB managing director Ku Chong Hong said the revised contract not only strengthens the group's position in the construction sector but also reflects the group's dedication to contributing to Malaysia's affordable housing landscape.

"We are honoured to be part of a project that resonates with our values of delivering high-quality living spaces while adhering to the highest standards of construction and environmental sustainability. SCIB looks forward to a successful collaboration with AUEI and PR1MA, driving the PR1MA housing project towards timely completion and setting new benchmarks in the affordable housing segment," he said.

SCIB shares settled one sen or 2.98% lower at 32.5 sen, giving the group a market capitalisation of RM208.08 million. Year to date, the stock has declined by 65.24%.