On Aug 13, 2021, SCIB had accepted a letter of award from KHSB for engineering, procurement, construction and commissioning (EPCC) contracts.

This involved capital equipment procurement as well as leasing concession for the procurement, supply, installation, testing and commissioning of medical equipments.

However, SCIB and KHSB have mutually agreed to the former withdrawing from the project.

As part of the withdrawal, KHSB will reimburse under a settlement agreement, the commitment fee amounting to RM1.65 million that SCIB had paid out in two tranches.

SCIB said the withdrawal from the contracts will not have any material effect on the gearing, earnings per share and net assets of the company for the financial year ending June 30.

In September 2021, SCIB announced it had bagged an RM80 million contract from KHSB to supply medical equipments for a specialist hospital in Johor Bahru.

The company said the contract was for a minimum 10 years and should be mutually extended for another five years from the date of full completion of the project.

“The company is enforcing its rights under the contracts and taking the necessary measures to protect SCIB’s interests in mitigating the risks arising from the long delay or non-movement of project progress due to the uncertainties and inability to secure the necessary operator for the project.

“Additionally, this decision was made due to reviewing and updating our order book records to reflect the current situation,” group managing director Rosland Othman said.

An investment holding company, Main Market-listed SCIB manufactures and sells concrete products for use in the construction and infrastructure sectors primarily in Malaysia.

SCIB’s share price was unchanged at 3.17pm today at 16 sen, valuing the company at RM93.4 million.