SCIB signs agreement for mixed-use development in Bintulu

KUCHING (Jan 6): Sarawak Consolidated Industries Bhd (SCIB) has entered into a development agreement to jointly undertake a residential and commercial project in Bintulu.

In a statement on Tuesday, SCIB said the project will be undertaken through its wholly owned subsidiary, SCIB Development Sdn Bhd (SCIB Development), in collaboration with the registered landowners of Lot 88, Kemena Land District.

The project site, which is the Lot 88, Kemena Land District, is a vacant parcel measuring about 11.1 hectares at Sungai Sibiau, Bintulu.

It is planned as a mixed-use development comprising residential and commercial components, subject to regulatory approvals.

SCIB said development is expected to be carried out in three phases, starting with residential units, followed by commercial components at a later stage.

Phase 1 involves the development of residential units and is to be completed within four years from the date SCIB Development receives approved building plans, or within seven and a half years from the date of the agreement, whichever is earlier.

Phase 2, also comprising residential units, is scheduled to be completed within two and a half years after the completion of Phase 1.

Phase 3 involves the development of commercial units and is expected to be completed within two and a half years after Phase 2.

Under the agreement, SCIB Development will act as the project developer and will be responsible for planning, securing approvals and executing the development works.

The landowners will be entitled to 23 per cent of the project’s gross development value, based on mutually agreed terms.

As the project is still at an early planning stage, SCIB said the overall development value and financial contribution have yet to be determined.

Executive chairman Datuk Chong Loong Men said the the agreement is in line with the group’s longer-term strategy to broaden its business base.

“This project allows us to extend our footprint into property development while building on our established engineering and construction capabilities.

“Bintulu remains a strategic location, and we believe this collaboration positions the group for sustainable growth over the medium to long term,” he said.

SCIB added that the project forms part of its broader efforts to build a more diversified and resilient business platform by combining its construction expertise with selective property development opportunities.

In its filing with Bursa Malaysia, it said the agreement is not expected to have any material effect on the earnings, net assets and gearing of SCIB and its group of companies for the financial year ending Dec 31, 2025.

The group also expects the project to contribute to its long-term growth while creating value for the local community in Bintulu.