Encorp inks initial pact for Felda staff housing project

KUALA LUMPUR (June 5): Encorp Bhd (KL:ENCORP) has signed an initial pact that may lead to a contract to build staff housing for the Federal Land Development Authority.

The memorandum of understanding (MOU) sets out the intention of the agency also known as Felda to appoint Encorp as the contractor for the proposed project, pending the execution of a letter of acceptance and definitive agreements, according to an exchange filing.

“We are deeply committed to providing modern, well-planned and quality residential environments for the well-being of the Felda workforce,” said Encorp chief executive officer Ahmad Harzimi Mohd Taib in a separate statement.

Felda is Encorp’s largest shareholder with a 62.3% stake held through Felda Investment Corporation Sdn Bhd. As a result, two non-independent non-executive directors of Encorp who are nominees of Felda Investment Corp are deemed to have interest in the MOU.

The pact is non-binding but serves as a basis for further negotiations pending a formal definitive agreement.

The MOU may open more opportunities to secure projects for the public sector, Encorp noted.

The collaboration follows earlier projects undertaken by Encorp for Felda, including the first phase of the Lamanda Chuping development in Perlis, which was completed in 2024.

Shares of Encorp were up by half a sen or 4.4% to 12 sen at Friday's noon break, giving the property developer and construction firm a market capitalisation of RM38 million.

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