KUALA LUMPUR: Main Market-listed engineering services group AWC Bhd’s wholly owned subsidiary, Ambang Wira Sdn Bhd (AWSB), has received a letter from the Ministry of Works on the extension of its current 10-year concession, which will expire on December 31, 2025.
The group said in a statement that the extension was for a further one year commencing from January 1, 2026, to December 31, 2026.
AWC Group Chief Executive Officer and President, Datuk Ahmad Kabeer Mohamed Nagoor, said having managed the concession since 1998, the group remains confident in its capabilities and would continue delivering high-quality services to support the government facilities’ management needs.
“At the same time, we are actively preparing and working closely on the tender for the new concession,” he added.
AWC said the Ministry of Works has also enclosed a fair copy of the interim agreement in respect of the existing privatisation agreement for building support services for government buildings in the Southern Zone and Sarawak Zone, for execution by both AWSB and the government.
“The interim agreement will take effect upon execution by both parties,” said AWC.
The group said while the interim agreement does not stipulate a specific contract sum, the estimated value of works under the one-year extension is RM63.7 million, based on the prevailing rates and scope of services under the existing concession.
AWC said the concession agreement involved the management, maintenance and upkeep of federal government buildings across the Southern Zone covering Malacca, Negeri Sembilan and Johor as well as the Sarawak Zone.
The group said these services have historically included the Critical Asset Refurbishment Programme (CARP) under the existing concession framework.
AWC has been responsible for the management, maintenance and upkeep of the federal government buildings across the Southern Zone and the Sarawak Zone since June 1998 under a concession structure.
The concession was subsequently renewed for 10 years, commencing in 2016 and is set to expire in December 2025. The CARP runs concurrently with the concession.
Ahmad Kabeer said the extension gave AWC earnings clarity and enhances its recurring revenue base while also bringing the total contracts announced in financial year ending June 30, 2026 to approximately RM257 million.
“Meanwhile, all our key divisions continue to maintain a healthy tender pipeline as our team actively pursues new opportunities. Overall, the group maintains a positive outlook while remaining prudent and attentive to developments within the broader macroeconomic environment,” he added. – BERNAMA
