KUALA LUMPUR (Feb 4): Sarawak Consolidated Industries Bhd (SCIB) has formally cancelled its RM49 million financing facilities after determining that the funds are no longer required, following the sale of its indirect wholly owned subsidiary, SCIB Concrete Manufacturing Sdn Bhd (SCM).
In a filing with Bursa Malaysia, SCIB said SCM has notified Malaysian Industrial Development Finance Bhd of the cancellation, confirming that no outstanding financial or legal obligations remain.
The move follows SCIB’s divestment of SCM to YTL Cement (Sarawak) Sdn Bhd, an indirect subsidiary of YTL Corporation Bhd, under a RM113 million transaction announced in November 2025.
The disposal aligns with SCIB’s strategy to streamline operations and concentrate on its core construction and engineering, procurement, construction and commissioning (EPCC) business. The company previously projected that the sale would generate a gain of RM11.29 million, expected to strengthen the group’s overall financial position.
Executive chairman Datuk Chong Loong Men said the divestment improves SCIB’s balance sheet and reduces reliance on external financing.
“As a result, these facilities are no longer necessary. This reflects our ongoing commitment to prudent financial management and optimising capital efficiency,” he said.
While SCIB’s operations are primarily outside the Klang Valley, the divestment highlights a broader trend of capital reallocation in industrial and construction sectors. For developers and investors in industrial land in Selangor, factory projects in Puchong, and industrial property in the Subang area, the move underscores the importance of efficient capital management and financial resilience in supporting large-scale infrastructure and industrial developments. The sale also reflects opportunities for strategic partnerships and consolidation in related construction and manufacturing sectors, which indirectly impacts demand for commercial property in KL and office space in Bukit Jalil through associated business activities.
On Tuesday, SCIB shares closed unchanged at 13.5 sen, giving the group a market capitalisation of RM99.5 million.
Malaysia