SLGC turns to specification changes to manage higher construction costs
The ACE Market debutant has tenders exceeding RM1 billion and estimates a success rate of 10% to 15%, according to its managing director.
SLGC Bhd said it is proposing changes to project specifications and material brands to help offset higher construction costs. Managing director Yong Zheng Lin outlined the measures on Oct 6 after the company's listing on Bursa Malaysia’s ACE Market.
Yong said clients were being offered value-engineering options, which involve revising a project’s materials or specifications while maintaining its performance. The company said it was also seeking terms with subcontractors and fixing supplier prices for materials in advance.
Higher oil prices have added to construction costs and put pressure on margins amid geopolitical tensions. Yong did not quantify the increase in costs.
As at Aug 12, SLGC had RM1 billion in unbilled contracts for construction projects under way. That value is due to be recognised progressively across five financial years through FY2030. Yong said the company was discussing possible data centre work but had not secured a deal.
For FY2025, which ended Dec 31, 2025, net profit fell from RM16.03 million to RM13.99 million, while revenue increased from RM229.64 million to RM324 million. Residential work accounted for 74.95% of revenue; non-residential projects contributed 25.05%.
SLGC provides design and construction services to Malaysian property developers and building owners. Its shares traded at 25 sen at the reported snapshot, a decline of three sen or 10.7%, giving it a market value of RM140 million.
