CMSR, a wholly-owned subsidiary of CMS Works Sdn Bhd, which is in turn a subsidiary of CMSB, had entered into a 15-year road maintenance contract in 2003 with the Sarawak government for the maintenance of state roads.

In a filing with Bursa Malaysia today, CMSB said the contract has been extended for a period of one year from July 1, 2018 to June 30, 2019 which was further to the six month extension that was granted by the state government on Dec, 4 2017 from Jan 1, 2018 to June 30, 2018.

The group said the extension was a prudent step as it allowed the state government to develop a comprehensive road management and maintenance contract strategy for its current total inventory of about 30,000km of state roads, out of which only 6,000km were being maintained by CMSR under the existing contract.

The contract extension was expected to contribute positively to CMSB group’s earnings during the tenure of the contract, it added.