TAFI accepts RM135 mil related-party construction job in Setia Alam

PETALING JAYA (July 16): TAFI Industries Bhd’s wholly owned subsidiary, TAFI Home & Office Sdn Bhd (THOSB), has accepted a letter of award for a RM135 million contract from Armani KPF2 Development Sdn Bhd (AKDSB) for the construction, completion and maintenance of structural and architectural works for a mixed-use development in Setia Alam, Selangor.

It said in a Bursa Malaysia filing on Wednesday that the contract, which excludes sales and service tax (SST), covers the main building and associated works for a proposed 37-storey mixed-use development at No. 4 (PT 26539), Jalan Setia Dagang AG U13/AG, Setia Alam, Shah Alam.

The development comprises 498 serviced apartments, 500 SOHO units, 17 shop offices and 352 retail units, together with an eight-storey podium car park, facilities including male and female musollahs, a Muslim funeral room, multipurpose hall, event hall and office space, as well as a guardhouse.

The construction period is 42 months from the commencement date of July 21, 2026. The final account is to be completed within 15 months from the date of the certificate of practical completion.

TAFI said the contract is expected to contribute positively to the group’s earnings and net tangible assets for the financial years ending June 30, 2027 to June 30, 2030.

The group said the contract constitutes a recurrent related party transaction (RRPT), for which shareholders’ mandate had been obtained at TAFI’s 21st annual general meeting held on Nov 20, 2025.

According to the filing, Datuk Seri Azlan Bin Azmi, Datuk Seri Wong Sze Chien, Datuk Seri Ong Chee Kean and Abdul Malek Bin Jalil are directors of both TAFI and AKDSB.

Koperasi Generasi Felda Baru Bhd (KGFB), formerly known as Koperasi Permodalan Felda Malaysia 2 Bhd, is also a substantial shareholder of both TAFI and AKDSB.

TAFI said save for the disclosed interests, none of its other directors, major shareholders or persons connected with them has any direct or indirect interest in the letter of award or the contract.

The board said the acceptance of the contract is in the best interests of the company.

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