MRCB-Theta Edge JV wins RM3.03 billion Penang Mutiara Line systems contract; Batu Kawan's MKH buy becomes unconditional

RM3.03 billion systems award advances Penang Mutiara Line

Malaysian Resources Corp Bhd's 90:10 unincorporated joint venture (JV) with Theta Edge Bhd secured a RM3.028 billion contract from Malaysia Rapid Transit Corporation Sdn Bhd (MRT Corp) to deliver the railway systems for the Penang Mutiara Line light rail transit project, according to a Bursa Malaysia filing on Aug 6.

The MRCB-Theta Edge JV was appointed turnkey contractor for the engineering, procurement, design, construction, testing, commissioning and maintenance of the railway systems under Package STC. The scope includes electric trains and depot equipment, signalling and train control, automatic platform gates, trackwork, power supply and distribution, supervisory control and data acquisition (SCADA) systems, telecommunications and information technology systems, as well as the automatic fare collection system. MRCB said the contract is expected to contribute positively to future earnings and is subject to normal construction risks, including fluctuations in material and equipment prices. None of its directors or major shareholders has an interest in the project other than through their shareholdings in the company.

The award advances the Penang Mutiara Line into its railway systems phase, committing expenditure on rolling stock, signalling, power systems and trackwork over a delivery period of nearly six years. The works are scheduled for completion within 68.8 months from the commencement date.

Fresh subcontract awards underline continuing build-out

Two Malaysian contractors disclosed fresh data centre-related subcontracts on Aug 6, underscoring continued opportunities for specialist contractors across the sector's supply chain. Southern Score Builders Bhd's 51%-owned SJEE Engineering Sdn Bhd secured a RM146.53 million subcontract for medium-voltage electrical works from an undisclosed local construction company. The subcontract commenced on July 27, 2026 and is scheduled for completion on Jan 15, 2028.

Separately, AWC Bhd's wholly owned Qudotech Sdn Bhd accepted a RM23.08 million subcontract for plumbing, silo tank and internal sanitary works from an undisclosed Malaysia-incorporated joint venture between two construction companies. The works commenced on April 24, 2026 and are expected to be completed on June 10, 2027. The project location was not disclosed. Meanwhile, Selangor Investment, Trade and Mobility Committee chairman Ng Sze Han said data centre development had not placed pressure on the state's domestic water supply. Pengurusan Air Selangor Sdn Bhd maintains a treated water reserve margin of 16.23%, equivalent to 1,055 million litres per day, compared with projected future data centre demand of 632 million litres per day.

Ng said Selangor approved 39 data centre projects between 2021 and 2025, while developers are required to finance their own water infrastructure, maintain three days' storage capacity and comply with a 30% local-content requirement.

Batu Kawan's MKH acquisition becomes unconditional, triggering mandatory offer

Batu Kawan Bhd's proposed acquisition of shares in MKH Bhd became unconditional after Batu Kawan shareholders approved the transaction at an extraordinary general meeting on Aug 5.

Its wholly owned subsidiary, Whitmore Holdings Sdn Bhd, acquired a 29.6% stake in MKH through two tranches completed on June 3 and June 9 before increasing its direct holding to 32.8% through open-market purchases between June 15 and July 17. Completion of the remaining share acquisition under the share sale agreement is due within seven days of Aug 6. Upon completion, Whitmore's direct interest in MKH is expected to rise from 32.8% to about 50.9%.

As the share sale agreement has become unconditional, Whitmore is required to extend an unconditional mandatory takeover offer for the remaining MKH voting shares not already held by it and Batu Kawan at RM2.00 per share.

Also on the radar today

Today's roundup

Infrastructure and industrial development again dominated Malaysian property news across Aug 6 and the morning of Aug 7. The RM3.028 billion Penang Mutiara Line railway systems contract advanced the state's first LRT project into its next delivery phase, while fresh data centre-related subcontract awards showed demand continuing to spread through specialist contractors. Corporate activity remained active as Batu Kawan's acquisition of MKH became unconditional, putting the group on track for majority control, alongside further industrial property transactions in Nilai, Cheras and Puchong. Penang also remained in focus through a statewide heritage-building safety review and the approval of a new private hospital joint venture.