KUCHING: KKB Engineering Bhd has taken legal action against Fook Lai Construction & Development Sdn Bhd to recover an outstanding sum exceeding RM10 million.
The company has initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) against Fook Lai.
The dispute stems from a subcontract awarded on August 30, 2022, for structural steel works related to the proposed glove factory at Petchem Industrial Park, Tanjung Kidurong, Bintulu, also known as the Sarawak Medical Innovation & Technology Hub.
“KKB is claiming against Fook Lai for the outstanding progressive claims amounting to RM10,059,082.30,” the steel fabricator said in a filing with Bursa Malaysia yesterday.
KKB said the legal action against Fook Lai is not expected to have any material effect on the earnings, net assets and gearings of KKB group for the financial year ending 31 December, 2024.
It also assured that the proceedings would not have any significant operational impact on the group.
“To the best of our knowledge.none of the directors and/or major shareholders and/or person connected with them has any interest,direct or indirect,in the abovementioned legal action.The board will make further announcements if there are any material developments on the above matter,” added KKB.
Located at Batu Kawa New Township, Fook Lai’s main business activity is property development and construction, with special emphasis on government, commercial and industrial projects.The company describes itself as a leading contractor in Sarawak and has a proven track record of completion and timely delivery of government,commercial and industrial projects.
In a non-related corporate move, Sealink International Bhd’s chief executive officer (CEO) and managing director Yong Kiam Sam had acquired 650,000 shares in the company at 29.5sen each on December 20, 2024.
Also a major shareholder,Yong has raised his direct interest in the Miri-based shipbuilder and ship charter company to 69,588,699 units (13.918 per cent). Yong also has an indirect interest of 154,797,600 shares (30.96 per cent) in the company, bringing his total shareholdings in Sealink to nearly 44.88 per cent.
In the first nine months of 2024, Sealink posted strong financial results, with group net profit surged to RM25.66 million on revenue of RM104.4 million as compared to RM1.35 million and RM80 million respectively in the same period 2023.
The higher profits resulted from higher vessel utilisation and improved charter rates.
