as extracted from Annual Report 2025
Tan Sri Abdul Rashid bin Abdul Manaf
Chairman, Independent Non-Executive Director
Dear Valued Shareholders,
On behalf of the Board of Salcon Berhad, I am pleased to present the Integrated Annual Report
and Audited Financial Statements of the Company and its subsidiaries ("the Group") for the
financial year ended 31 December 2025, reflecting a year of strategic progress and investment
for future growth.
Resilient Performance in a Transitional Year
FY2025 was a year of resilience and strategic positioning for the Group. Despite continued uncertainties arising from geo-political tensions and tariffs imposed by the US, Malaysia's growth remained supported by resilient domestic demand and sustained national investment in infrastructure and water security. Against this backdrop of subdued global growth and external headwinds, Salcon remained focused on its strategic priorities, maintaining disciplined financial management while continuing to strengthen its core competencies.
During the financial year under review, the Group recorded revenue growth by 25.4% to RM374.2 million while PBT moderated by 69.4% to RM5.3 million in FY2025 compared to previous year. This reflects deliberate investments to strengthen the Group's long-term growth platform, particularly in healthcare and new business segments.
Despite this, the Group maintains a strong financial position, supported by a sound balance sheet and healthy cash and cash equivalents of RM137.3 million.
Strengthening Our Core While Advancing Growth
The Malaysia Government continued investment in water and wastewater infrastructure reinforces strong fundamentals for the Group's core business. These initiatives aim to ensure a sustainable and reliable supply of treated water, safeguard the environment and enhance resilience against extreme weather conditions. Aligned with these national priorities, Salcon remains committed to delivering projects that create sustainable outcomes and contribute to Malaysia's long term development.
This year, the Engineering and Construction Division secured several major contracts in water and wastewater with a combined value of approximately RM337 million. These wins reinforce Salcon's strategic position and provide momentum for sustainable growth.
In June 2025, shareholders approved the diversification into healthcare and energy-related businesses, expanding the Group's growth platform beyond its core water infrastructure segment. The Group's principal activities to include healthcare and energy-related businesses. This strategic expansion broadens our growth platform while remaining closely aligned with our core capabilities. As these new segments progress through their early development stages, robust governance and strategic oversight continue to underpin disciplined and sustainable growth.
Advancing Our Sustainability with Purpose
Sustainability is embedded in our strategy and operations to our strategy, shaping how we operate, innovate and create long-term value. Through our projects, products and services, the Group contributes to advancing the United Nations Sustainable Development Goals (UNSDGs).
In April 2025, we successfully completed Langat 2 Package 3: Residuals Management System for Langat 2 Water Treatment Plant, a landmark project with a handling capacity of 120 tonnes per hour. This achievement sets new benchmarks in engineering innovation, sustainability and operational excellence, thereby supporting national objectives in water security and advancing Malaysia's transition towards sustainable residual management and lower carbon footprint.
The achievement was recognised by Malaysia Book of Records ("MBOR") and the Malaysian Water Association ("MWA"), reflecting both technical innovation and operational excellence, via:
- MBOR awards for the Longest Pipe Conveyor System and the Longest Shaftless Screw Conveyor System for Water Treatment Residual; and
- MWA Excellence Award 2025 – Best Contractor for the Construction of Water Treatment Plant Residual Management System.
In recognising our other achievement in sustainable water supply, we have been accorded MWA Excellence Award 2025 for Best Contractor for Project Value more than RM100 million through Package 2A – Construction of 1,130 MLD Langat 2 Water Treatment Plant project which was completed and commercially operational since 2020.
Looking Ahead
As we progress, we recognise challenges that we face in the external environment and the need to continue building resilient businesses for the future. Our focus remains on strengthening our core business while carefully pursuing growth in new sectors. Guided by our four key drivers: cost and operational effectiveness, strategic diversification, technology and innovation and embedding sustainability across the Group, we are well positioned to navigate near-term uncertainties and deliver long-term value creation.
The Group expects its recent investments and expansion initiatives to progressively contribute to earnings in the near future.
Acknowledgments and Appreciation
On behalf of the Board, I extend our sincere appreciation to the Government, regulators, industry partners and agencies for their continued support and collaboration. I also wish to thank my fellow Board members for their guidance and strategic foresight.
To our employees, thank you for your determination and commitment throughout the year. To our shareholders, customers, partners and suppliers, we are grateful for your ongoing trust and support.
We remain committed to executing our strategy, delivering sustainable growth and creating long-term value for our stakeholders.
Thank you.
Tan Sri Abdul Rashid bin Abdul ManafChairman, Independent Non-Executive Director