News

Reference is made to the previous announcement dated 25 March 2019 whereby Zelan Construction Sdn. Bhd. (“ZCSB”), a wholly-owned subsidiary of the Company, has initiated arbitration proceedings against Landasan Kapital (M) Sdn. Bhd. (“LKSB”) in respect of the disputes and differences arising between ZCSB and LKSB in relation to a project known as Cadangan Pembangunan Pusat Asasi Universiti Islam Antarabangsa Malaysia (“IIUM”) Di Mukim Hulu Lepar, Daerah Kuantan, Pahang Darul Makmur Fasa 3 – Bangunan-Bangunan Akademik Dan Kolej-Kolej Kediaman (“Project”).

The Board of Directors wishes to announce that ZCSB has, in the evening of 30 May 2025 received a decision from the Tribunal via Final Award dated 26 May 2025 in relation to the arbitration against LKSB. In the Final Award, the Tribunal has dismissed all ZCSB's claims against LKSB and ordered the following:-

1. In respect of LKSB Counterclaims:-

(i) ZCSB is to pay LKSB the sum of RM5,786,911.29 being the balance unpaid sum under the Subcontractor Progress Payment Certificates.

(ii) Further to subparagraph (i) above, ZCSB is to pay LKSB pre-award interest at:

(a) 5% per annum on RM1,081,280.88 from 31.12.2015 until the date of the Final Award.

(b) 5% per annum on RM4,570,763.02 from 5.2.2016 until the date of the Final Award.

(c) 5% per annum on RM113,666.90 from 28.2.2016 until the date of the Final Award.

(iii) ZCSB is to pay LKSB the sum of RM103,709.99 being the balance unpaid sum for Approved Variations.

(iv) ZCSB is to pay LKSB the sum of RM6,564,122.80 being the release of the 1st moiety of retention sum.

(v) Further to subparagraph (iv) above, ZCSB is to pay LKSB pre-award interest at 5% per annum on RM6,564,122.80 from 13.2.2016 until the date of the Final Award.

(vi) ZCSB is to pay LKSB the sum of RM6,564,122.80 being the release of the 2nd, moiety of retention sum.

(vii) Further to subparagraph (vi) above, ZCSB is to pay LKSB pre-award interest at 5% per annum on RM6,564,122.80 from 6.2.2018 until the date of the Final Award.

(viii) ZCSB is to pay LKSB the sum of RM509,881.03 on account of Additional Variations.

2. ZCSB is to pay LKSB the sum of RM2,827,272.19 in respect of costs and expenses.

3. ZCSB is to pay LKSB post-award interest at the rate of 5% per annum on all sums awarded from the date of the Final Award until full realisation.

The Company is in the midst of reviewing the Final Award and is considering all options available.

The Company will take necessary actions and further announcements will be made in respect of any material development thereof.

This announcement is dated 3 June 2025.