SCIB cancels RM49mil facility following strategic divestment


SCIB executive chairman Datuk Chong Loong Men

PETALING JAYA: Sarawak Consolidated Industries Bhd (SCIB) has cancelled a financing facility of up to RM49mil with Malaysian Industrial Development Finance Bhd (MIDF) following the strategic divestment of its manufacturing arm, a move aimed at strengthening the group’s balance sheet and sharpening its focus on construction and EPCC activities.

The cancellation relates to term financing-i facilities previously approved under the Soft Financing Scheme for Automation and Modernisation for SCIB Concrete Manufacturing Sdn Bhd (SCM), an indirect wholly owned subsidiary.

MIDF has confirmed that the cancellation took effect on Jan 29, 2026, with no drawdown or utilisation made under the facilities and no outstanding obligations.

The move follows SCIB’s earlier announcements on the proposed disposal of its entire equity interest in SCM to YTL Cement (Sarawak) Sdn Bhd, which is expected to unlock value and position the group as a net-cash player with lower gearing.

Executive chairman Datuk Chong Loong Men said the divestment has reduced SCIB’s reliance on external financing, making the facilities unnecessary. SCIB said the cancellation will not materially affect its financial metrics or shareholding structure for the financial year ended December 2025.

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