As part of the SCA, the government has approved IJM’s proposal to restructure toll rates on the NPE.
KUALA LUMPUR: IJM Corp Bhd
has entered into a supplemental concession agreement (SCA) with the government to formalise the 15km New Pantai Expressway (NPE) extension and expand the existing NPE concession period.
The agreement, signed between the Works Ministry and New Pantai Expressway Sdn Bhd (NPE), a wholly- owned subsidiary of IJM, also covered the construction of a new Syed Putra toll plaza.
As part of the SCA, the government has approved IJM’s proposal to restructure toll rates on the NPE.
The restructuring is expected to generate savings of about RM191mil in compensation payments for the government.
Works Ministry secretary-general Datuk Seri Azman Ibrahim signed on behalf of the government while IJM group chief executive and managing director Datuk Lee Chun Fai represented NPE.
In a statement, IJM said the elevated NPE extension would ease travel across southern Kuala Lumpur running from Pantai Dalam toll plaza to Jalan Istana via Jalan Syed Putra.
The new link connects the NPE, Sungai Besi Expressway and the upcoming Laluan Istana-Kiara Expressway, offering motorists access to the city and supporting the Kuala Lumpur Traffic Master Plan 2040 to divert through-traffic from the city centre.
Construction of the NPE Extension will begin in the fourth quarter of 2025 and is expected to take 48 months, with IJM having secured approvals from two financial institutions to provide up to RM1.4bil in project financing, reinforcing the group’s readiness to begin works as scheduled.
Separately, IJM has also released results for its first quarter ended June yesterday (1Q26), which saw net profit improving by 10% year-on-year (y-o-y) to RM95.6mil while revenue strengthened 23.4% to RM1.73bil.
Attributing the better turnover to higher contributions by its construction as well as manufacturing and quarrying divisions, the group said construction work activities during 1Q25 has increased in tandem with its higher order book.
“Higher share of profit in joint ventures also contributed to the division’s improved earnings in 1Q26,” it added in a filing with Bursa Malaysia.
Commenting on its toll segment, IJM said the division reported a pre-tax profit of RM21mil for 1Q26, an increase of 44.4% y-o-y, mainly due to lower losses from overseas tollways and reduced share of losses from associates.
Compared with the preceding quarter ended March, net profit slid 25.9%, as turnover also slid 3.2%, on what the constructor said was a result of the lower profit contribution from its property development division.
Looking ahead, IJM said its construction business would continue to focus on the timely execution and completion of its RM12.9bil order book in hand, including its share of outstanding order book from joint ventures and associates, comprising the newly secured large scale data centre in Johor and the NPE extension.
“Given the high outstanding order book in hand, the division is expected to perform better in FY26,” it pointed out.
At the same time, IJM said its property division is expected to maintain a satisfactory performance in the current financial year on the back of its unbilled sales of about RM1.67bil.
“The toll division is expected to maintain its performance as its mature highways continue to provide the group with a strong recurrent revenue and cashflow stream whilst the newer highways are undergoing the gestation period before achieving maturity.
“The recently secured NPE 2 will provide long-term earnings visibility for the division,” said IJM.
