Taghill Wins RM3.08m Adjudication in Ipoh Property Dispute

Taghill Holdings Bhd (KL:TAGHILL), formerly known as Siab Holdings Bhd, has secured an adjudication ruling in favour of its wholly-owned subsidiary Taghill Projects Sdn Bhd against Dreamlike Development Sdn Bhd over unpaid construction works for a high-rise project in Ipoh.

The decision underscores both the growing reliance on Malaysia’s Construction Industry Payment and Adjudication Act 2012 (CIPAA) to resolve disputes, and the importance of payment security for contractors in the country’s property development sector.

The Adjudication Outcome

In its bourse filing on September 19, 2025, Taghill confirmed it had received the adjudicator’s decision dated September 17.

The Horizon @ Fair Park, Ipoh

The dispute centres around The Horizon @ Fair Park, a 22-storey serviced apartment project in Ipoh, Perak.

Contract Value: RM48.4 million (including variation orders).
Letter of Award Date: December 27, 2019.
Main Contractor: Taghill Projects Sdn Bhd.
Completion & Handover: March 2023, with works reportedly completed “without complaints”.

The project represents one of Ipoh’s higher-density residential offerings, reflecting the city’s evolving urban skyline and demand for serviced apartment living.

Timeline of the Dispute

March 2023 – Project officially handed over.
March 13, 2025 – Taghill Projects files a payment claim of RM4.91 million under CIPAA, covering both certified and uncertified works.
Mid-2025 – The dispute proceeds to adjudication.
September 17, 2025 – Adjudicator rules in Taghill’s favour, awarding RM3.08 million.

This decision highlights how CIPAA continues to serve as a timely and effective dispute resolution mechanism, protecting contractors from protracted non-payment issues.

Impact on Taghill

Despite the ruling, Taghill noted that the outcome is not expected to materially impact earnings, cash flows, or operations for its financial year ending May 31, 2026.

Award Value: RM3.08 million is relatively modest compared to Taghill’s overall operations.
Investor Sentiment: Shares closed unchanged at six sen on Thursday, valuing the group at RM93.37 million.
Cash Flow: While not transformative, the payment provides near-term liquidity and vindicates Taghill’s contractual rights.

Broader Implications for the Construction & Property Market

1. Contractor Protection Under CIPAA

Malaysia’s Construction Industry Payment and Adjudication Act 2012 was introduced to address late payment issues plaguing contractors. This case demonstrates how CIPAA:

Provides faster resolutions compared to traditional litigation.
Encourages developers to meet obligations.
Reduces financial strain on contractors who depend on progress payments.

2. Developer–Contractor Tensions

The Horizon case reflects a recurring issue in Malaysia’s property sector: developers delaying or disputing payments to contractors, often citing defects or non-conformance. While quality disputes are common, adjudicators typically require strong evidence to uphold such claims.

3. Ipoh’s Growing High-Rise Market

As Ipoh transitions from a low-rise city to one with more vertical living options, projects like The Horizon @ Fair Park signal new opportunities — but also highlight execution and financing risks. Investors considering Ipoh residential properties should pay close attention to developer track records and contractor relationships.

4. Investor Confidence in Small-Cap Builders

For smaller listed builders like Taghill, consistent dispute resolution outcomes build confidence among investors and subcontractors alike. Securing payment enhances credibility, positioning Taghill to bid for future contracts with stronger financial standing.

Taghill’s Transformation

Formerly known as Siab Holdings Bhd, the group rebranded to Taghill Holdings Bhd to better reflect its evolving business strategy.

Core Business: Construction and property-related services.
Subsidiary Role: Taghill Projects serves as the group’s construction arm, undertaking medium-to-large scale developments.
Future Direction: Strengthening its presence in the Malaysian property market, while building a reputation for project delivery and dispute resilience.

This adjudication win fits within its narrative of becoming a trusted mid-tier contractor in Malaysia’s increasingly competitive construction landscape.

Investor Takeaways

Cash Recovery
RM3.08 million provides immediate cash inflow, even if modest relative to the group’s size.
Legal Precedent
Confirms CIPAA as an effective enforcement tool, reassuring investors that Taghill can protect its interests.
Reputation Boost
The ruling enhances Taghill’s profile in the construction industry, potentially strengthening future tender bids.
Limited Financial Impact
While positive, the award will not dramatically shift earnings forecasts for FY2026. Investors should continue to assess Taghill on pipeline growth, project delivery, and cost management.

Conclusion

The adjudication win against Dreamlike Development provides vindication for Taghill Holdings Bhd, securing RM3.08 million in unpaid dues for its completed work on The Horizon @ Fair Park in Ipoh.

While the immediate financial impact is modest, the case underscores the importance of CIPAA in safeguarding contractor payments, particularly in Malaysia’s property sector where cash flow risks remain prevalent.

For the broader market, the outcome reinforces confidence in mid-tier construction firms like Taghill and serves as a reminder that developer–contractor dynamics can influence project success, investor sentiment, and property market stability.

As Ipoh and other secondary cities continue to grow their high-rise residential offerings, ensuring fair, timely payments will be key to sustaining both developer reputations and contractor viability.