KUCHING: Pansar Bhd is exploring potential concession models with the Sarawak government to strengthen the company’s market presence, diversify its revenue streams and support long-term business growth, says its chairman Dato James Tai Cheong @ Tai Chiong.
In the construction sector, he said Pansar group will continue to evaluate selective opportunities in overseas markets while focusing primarily on opportunities within Sarawak and the domestic market.
“The construction industry continues to face significant cost pressures from rising material, labour and logistics costs even after the (COVID-19) pandemic,” Tai said in the company’s 2026 annual report.
As at March 31, 2026, Pansar’s construction & infrastructure segment had an outstanding order book of about RM1.9 billion, with most projects extending through to 2029, according to the company in its management discussion and analysis report.
During the year under review, the group secured several new projects, including the design and build works for dual carriageways, pipeline replacement, and road upgrading and riverbank protection works.
The order book was further boosted as Pansar secured a RM234.9 million contract for the Betong’s water treatment plant project in May, this year.
Pansar achieved a key milestone with the completion of the 4.9km long Batang Lupar Bridge, which was recently opened to traffic.
Tai said with a healthy outstanding order book of about RM2 billion, this provides the group with a solid foundation for future growth.
“Supported by a steady stream of projects, particularly within Sarawak, the group remains well positioned to capitalise on available opportunities,” he added,
Tai noted that under the 13th Malaysia Plan, the Sarawak government had announced that it will aggressively pursue a target of RM100 billion in investments over the next five years towards achieving Post-COVID-19 Development Strategy (PCDS) 2030 targets.
Growth will be focused on continued civil and energy-related infrastructure development as well as sustainability and green initiatives.
For the new financial year, he said the group continues to exercise vigilance as it prepares for a more challenging operating environment.
“Factors contributing to this outlook include geopolitical tensions, currency volatility, changes in government policies, and the anticipated impact of a super El Nino (dry weather) event.
“Domestically, key policy changes, including the expansion of the sales and service tax (SST), revised vehicle load regulations by the Road Transport Department, and the rationalisation of diesel subsidiaries under the Subsidised Diesel Control System (SKDS) are expected to increase operating costs across several divisions (of the group),” he added.
Tai said Pansar group’s resilience is built on its ability to adapt to changing market conditions.
“Drawing on our experience in navigating previous economic downturns, we remain prepared to rethink, recalibrate, and refine our strategies when necessary. We will continue to leverage our strengths, including deep local market knowledge, strong customer relationship and a commitment to quality craftsmanship and service excellence.
“We will maintain our focus on driving sustainable sales growth through targeted marketing initiatives; enhance customer engagement, and operational efficiency. Through these measures, the group is well-positioned to respond effectively to external challenges while building a more agile, resilient and customer-centric business for the future,” he added.
Besides the largest revenue earner in construction and infrastructure, Pansar group’s other business segments include marine & industrial; building & construction materials; agro engineering; electrical & air conditioning; heavy equipment and mechanical & electrical.
In FY2026, Pansar group posted a 14.4 per cent jump year-in-year in group revenue to RM1.3 billion, and net profit of RM23.3 million.
During the financial year under review, Tai said the group strengthened its financial position by reducing its total debt by RM115.4 million or 38.8 per cent to RM181.7 million, improving net debt-to-equity ratio to 0.4 times.
