Extracted from Annual Report 2025
Engineering & Construction Division
Operation Review
In line with the Government's national water agenda, the Engineering & Construction Division has continued to play its role in upgrading and improving Malaysia's water and wastewater infrastructure. These initiatives are fundamental to bolstering national water security, improving the quality of life for the people of Malaysia, protecting the environment and supporting sustainable economic growth.
During the year, the Division strategically focused on capacity enhancement, network renewal and wastewater infrastructure upgrades. The project portfolio reflects this focus, encompassing the construction of new treatment facilities, rehabilitation and replacement of ageing pipelines and the expansion of sewerage networks to support growing urban and industrial developments.
Major new projects secured in FY2025 include:
1. Jernih Raw Water Pipeline and Water Treatment Plant in Melaka for PAAB (RM167.0 million)
2. Replacement of Old / Dilapidated Pipes in Kota Bharu, Kelantan for PAAB (RM70.5 million)
3. Batu Kawan Industrial Park Sewer Upgrade, Penang for Penang Development Corporation (RM88.8 million)
4. Sewerage Reticulation Works for Taman Bukit Cheras Sewerage Treatment Plant Redevelopment Project, Kuala Lumpur (RM11.0 million)
In FY2025, the Division successfully completed several strategic water and wastewater projects, reinforcing technical capabilities, supporting regulatory compliance and contributing to environmental protection:
1. Package 3: Design and Build Dewatered Residual Disposal System for Langat 2 WTP for PAAB
2. Existing STP and NPS works for Proposed Developments at Taman Bunga Raya, Mukim Serendah, Selangor
3. Sewer reticulation project in Seberang Perai, Penang
The major on-going projects under this division as at February 2026 are as below:
1. Customer Call Center, Sandakan for Sandakan Water Department
2. 10.44 MW Small Hydro Power Plant @ Sg. Selangor Dam
3. Replacement of Old / Dilapidated Pipes in Kota Bharu, Kelantan
4. Jernih Raw Water Pipeline and Water Treatment Plant in Melaka
5. Design and Build of STP 1A at North Hummock Estate, Mukim Raja, Petaling, Selangor
6. Sewerage Treatment Plant and three pumping stations at Setia Alaman, Kapar, Selangor
7. Sewerage Pipeworks @ Batu Kawan Industrial Park for PDC
Outlook
The Group remains optimistic on the water sector's prospects underpinned by the Government's sustained focus on water security, aggressive NRW reduction targets and climate resilience infrastructure.
Looking ahead, the Division will strategically prioritise NRW programmes by capitalising on national allocations for pipe replacement and network optimisation; O&M services through securing revenue streams from long-term O&M contracts; delivery of strategic water and wastewater infrastructure projects including STPs and flood mitigation initiatives; and development of innovative climate-resilient water infrastructure.
As at 31 December 2025, the Division's outstanding order book stood at RM405.7 million, providing strong earnings visibility. Furthermore, with a pipeline of tenders valued at RM4.385 billion for both local and international projects, the Engineering & Construction Division is well-positioned to support national water security objectives and deliver sustainable, long-term value for stakeholders.
Glove Manufacturing Division
Operation Review
The Malaysian glove industry navigated a complex landscape in 2025. While demand showed early signs of recovery, industry conditions remained constrained by tariff uncertainties, intensifying competition particularly from China, and rising operating costs. These dynamics continued to affect customer purchasing behaviour and business planning across the sector.
Despite these challenges, JREMT recorded an increase in production volumes to 147.4 million pieces of gloves, representing a 5.3% increase from 140 million pieces in FY2024. The growth was primarily driven by higher customer orders from the US market, supported by tariff differentials that reduced the competitiveness of Chinese exported gloves and redirected some demand towards Malaysian manufacturers.
To complement its manufacturing operations and diversify its revenue stream, JREMT expanded its consultation services in underpenetrated markets where demand for glove manufacturing expertise and turnkey solutions continues to grow.
Amid the challenging environment, JREMT continued to enhance operational efficiencies through targeted cost control measures, strict adherence to regulatory and quality standards and ongoing innovation to enhance product differentiation. Production facilities and lines were upgraded through the adoption of new technologies aimed at improving product quality, operational efficiency and overall competitiveness.
JREMT remains committed to embedding ESG principles across its operations, with emphasis on product quality, employee welfare, environmental stewardship and community wellbeing. In recognition of its people-first approach, JREMT was awarded by EPF for the Best Employer Award for Central Wilayah Region during the year.
Outlook
The outlook for the glove sector remains cautious amid ongoing geopolitical developments and intensifying competitive pressures from regional expansion. While structural challenges persist in the near term, JREMT will continue to prioritise operational efficiency, product differentiation, quality excellence and disciplined cost management to strengthen business resilience and adaptability as market conditions evolve.
Technology Services Division
Operation Review
The transition to a Dual Network ("DN") model for the deployment of 5G networks marked a key milestone in Malaysia's digital infrastructure landscape. Leveraging its existing capabilities and connectivity infrastructure, VBT secured a 10-year contract with CelcomDigi in August 2025 to provide high-speed broadband connectivity across the Klang Valley. In the same month, VBT also signed an agreement with U Mobile for the provision of bandwidth services for 29 sites for a period of 10 years.
These long-term contracts are expected to generate stable recurring revenue while positioning VBT to support the ongoing nationwide rollout of 5G infrastructure. To ensure network resilience and service reliability, VBT operates a 24-hour network monitoring system and helpdesk that enables real-time monitoring and rapid incident response.
Under its enterprise business segment, VBT expanded its connectivity footprint by securing 21 new enterprise business sites and successfully delivering 20 sites in FY2025, supporting the growing connectivity needs of enterprise customers.
Outlook
Malaysia's digital infrastructure sector is expected to maintain positive momentum in 2026, driven by continued expansion of 5G networks, increasing investments in data centres and wider adoption of cloud and digital technologies. The DN model is anticipated to further accelerate infrastructure investment and network deployment while intensifying competition within the telecommunication sector.
Against this backdrop, the Division will focus on strengthening its infrastructure footprint and deepening strategic partnerships with telecommunications operators and enterprise customers. The Division remains well-positioned to capture emerging opportunities arising from Malaysia's growing digital ecosystem.
Renewable Energy Division
Operation Review
Malaysia's RE sector continues to expand rapidly, surpassing its target of 31% driven by the National Energy Transition Roadmap ("NETR").
In January 2025, Mentari Kamuning Sdn. Bhd. ("MKSB"), a 70%-owned subsidiary of Energy Valley, executed the New Enhanced Dispatch Agreement ("NEDA") Connection Agreement with Tenaga Nasional Berhad ("TNB") to design, construct, own, operate and maintain a 7-megawatt ("MWac") solar energy generating facility in Sungai Siput, Kuala Kangsar, Perak. The project is currently under development and is expected to generate stable revenue over a 21-year concession period upon commercial operations, generating approximately 15 gigawatt-hours of solar energy annually and avoiding an estimated 11,700 tonnes of CO2 emissions per year.
The Division's successful commissioning of the 862.5 kWp solar energy facility at Gemas, Negeri Sembilan in June 2024 provides a steady income stream while supporting energy efficiency and the transition to green power generation. In FY2025, the Division generated 3.72 GWh of solar energy from its existing assets in Malaysia and the UK, contributing to a total CO2 avoidance of 2,405 metric tonnes.
Beyond solar, Inergist is also exploring other RE sources including hydro and developing integrated solutions with Battery Energy Storage System ("BESS") through strategic collaborations. These initiatives will further advance sustainable energy adoption in Malaysia while optimising socio-economic benefits and supporting the nation's decarbonisation agenda.
Outlook
The Malaysian RE sector is entering a defining phase in 2026, with rapid capacity growth unfolding amid intensifying competition and market consolidation. LSS programmes, rooftop initiatives and niche opportunities continue to underpin expansion while evolving regulations and customer expectations drive a shift toward integrated, scale-driven solutions.
Guided by the NETR and Renewable Energy Transition Roadmap ("RETR") 2035, the Division is well-positioned to capitalise on opportunities in LSS, CGPP, CRESS and Solar ATAP. The Division will leverage its technical capabilities, strategic partnerships and disciplined execution to grow its energy asset base and deliver sustainable long-term returns.
Transportation Division
Operation Review
In FY2025, the Division continued to operate in a challenging market environment characterised by moderate demand and rising operating costs. Building on initiatives undertaken in FY2024, ECT continued to enhance operational efficiency through ongoing reviews of its fleet composition, ensuring resources were aligned with service requirements. Older and underutilised vehicles were disposed of strategically to optimise fleet utilisation and reduce maintenance costs.
The Division provided daily home shuttle transportation services for over 950 MNC employees and delivered 378,000 metric tonnes of edible oil through its logistics operations. The Division also focused on strengthening service reliability and maintaining long-standing relationships with key corporate clients. Concurrently, GF maintained its market presence by delivering consistent, on-time logistic services for the palm oil and soy oil sectors while managing operational costs prudently.
Outlook
Looking ahead, the Division remains steadfast in its pursuit of growth and innovation through enhanced customer service, strategic recruitment of skilled drivers and adoption of advanced fleet technologies. It aims to expand its customer base and diversify into emerging sectors while upholding its commitment to sustainability through green fleet solutions to reinforce competitiveness. These initiatives position the Division to navigate challenges while capitalising on opportunities within the transportation sector.
Healthcare Division
Operation Review
The Group's foray into the healthcare business is anchored in the robust, long-term fundamentals in primary care, particularly within the dental sector. Bloom Healthcare Group Sdn. Bhd. ("Bloom"), formerly known as Salcon Smile Sdn. Bhd., operates the Group's Healthcare Division as an integrated healthcare provider across dental, aesthetic, general practitioner and wellness segments.
In FY2025, Bloom significantly broadened its footprint and capabilities through the acquisition of TRIA Dental Specialist Centre, Wong & Sim Dental Surgery and JoyDental clinics in Penang. These expansions fortified the Group's presence in Northern Malaysia, where it now operates 11 dental clinics in Penang and Kedah.
Bloom has also strategically acquired several companies involved in the provision of healthcare, wellness and related activities through its subsidiaries, encompassing aesthetic, GP, spa and wellness services complementary to its core dental offering. Following these expansions, Bloom now operates 83 clinics nationwide, comprising 46 dental clinics, 10 aesthetic clinics, 25 GP clinics and 2 spa and wellness centres.
To enhance the patient journey, the Division has streamlined daily operations and centralised administrative functions to reduce patient waiting times. The Division continues to leverage technology and data analysis to optimise resource allocation and improve patient engagement.
Outlook
Malaysia is projected to become an aged nation by 2048, with 14% of the population aged 65 and above. This significant demographic shift, coupled with rising health awareness and medical tourism initiatives such as Malaysia Year of Medical Tourism 2026 ("MYMT 2026"), is expected to sustain long-term demand for primary healthcare services.
The Division is strategically positioned to capitalise on these tailwinds. Its focus will be on improving utilisation of facilities to capture greater market share in its core regions, while continuing to monitor and enhance clinical outcomes and service quality through stringent operational efficiency and cost management measures. The Division is supported by a team of over 150 qualified doctors as of April 2026.
The Division remains steadfast in its commitment to delivering sustainable growth and long-term stakeholder value while maintaining affordable, quality healthcare for the communities it serves.
Property Development Division
Operation Review
The Property Development Division, operating under Salcon Development Sdn. Bhd., undertakes niche property development and strategic property investments. The Asteriaz @ Kebun Teh joint venture project was officially launched in July 2025 and has achieved strong take-up rates. The development is progressing in line with the project timeline, with expected completion in 4Q2029.
Outlook
The Malaysian property market is expected to remain cautiously optimistic in 2026 despite macroeconomic uncertainties. The overhang of unsold residential properties continues to persist, driven by tighter financing conditions and cautious buyer sentiment.
The Division will continue to evaluate strategic land and joint venture opportunities that align with the Group's long-term objectives.