Sunway Construction Group Bhd (KL) has further strengthened its project portfolio with the awarding of an additional RM347 million contract for tenant improvement works (TIWs) at the Sedenak Tech Park (STeP) data centre project in Johor. This strategic move, confirmed through SunCon’s bourse filing on Wednesday, signifies the project’s elevated value, now reaching a cumulative RM3.5 billion from the initial RM3.2 billion.
Strengthening Its Position with Major Contracts
Awarded by Yellowwood Properties Sdn Bhd, these additional TIWs reflect SunCon’s commitment to catering to the burgeoning demands of Malaysia’s tech infrastructure. Despite the increased contract value, SunCon noted that the scheduled completion remains on track, with all phases of both the notice to proceed (NTP) works and the TIWs slated for completion by February 2026.
This expansion aligns with SunCon’s reputation for handling large-scale projects, reaffirming its role as a critical player in Malaysia’s construction and infrastructure landscape. The company’s momentum this year has been particularly robust, securing new projects worth RM3.9 billion and maintaining an outstanding order book of RM7.8 billion.
A Proven Track Record in Data Centre Projects
The awarded TIWs follow SunCon’s significant additional works valued at RM1.5 billion in June for the JHB1X0 data centre (NTP 4), which nearly doubled the initial contract of RM1.7 billion secured at the close of 2022. This pattern of securing follow-up contracts demonstrates SunCon’s reliability and the trust it garners from key stakeholders in large-scale developments.
The Role of Sunway Bhd and Market Performance
As a 54.56%-owned subsidiary of Sunway Bhd—under the stewardship of prominent tycoon Tan Sri Dr Jeffrey Cheah Fook Ling—SunCon benefits from the robust support and strategic direction of one of Malaysia’s leading conglomerates. This backing bolsters SunCon’s market credibility and operational stability.
Despite the announcement of the additional contract, shares of Main Market-listed SunCon saw a slight dip, closing two sen or 0.4% lower at RM4.48 on Wednesday. However, the year-to-date performance of the stock tells a different story, showcasing a significant increase of 131%, a testament to investor confidence and the company’s strong operational results. With a market capitalisation of RM5.79 billion, SunCon remains a notable contender in the construction industry.
Conclusion
The expansion of SunCon’s contract at the Sedenak Tech Park highlights not only the company’s growing presence in the tech and data centre construction sector but also its capability to deliver complex projects efficiently. As the demand for data infrastructure in Malaysia continues to surge, SunCon is well-positioned to leverage its expertise and contribute to the nation’s growth in the digital era.
