At Tasik Kenyir, Malaysia’s largest man-made lake in Terengganu, Cypark Resources Bhd
is undertaking one of its most technically demanding jobs – a RM1.96bil engineering, procurement, construction and commissioning (EPCC) contract for a 595MW floating solar farm with a battery energy storage system.
The project is set within a landscape shaped by submerged remnants of former forests, fluctuating water levels and sensitive ecological zones.
It comes as Cypark shifts from an asset-heavy model towards a more balanced strategy with greater focus on EPCC activities.
This follows years of building a sizeable portfolio of owned generation assets and in-house execution capabilities through projects such as the second round of the large-scale solar programme (LSS2) and LSS3.
Today, Cypark’s total installed capacity is about 400MW, making it one of the largest listed pure-play renewable energy (RE) players on Bursa Malaysia.
“We were previously more asset-focused, which meant heavy upfront capital and long payback periods.
“Moving forward, we are adopting a more disciplined strategy that blends selective asset exposure with increased EPCC opportunities,” chairman Tan Sri Abdul Wahid Omar tells StarBiz 7 in an exclusive interview.
Abdul Wahid, a seasoned corporate figure and former chairman of Bursa Malaysia, will mark his first year as Cypark chairman in June.
His involvement in Cypark predates his chairmanship, having first invested in the group in 2021 through a private placement exercise, taking up a 1.82% stake or 15 million shares.
The investment came at a time when the group was raising funds to support the completion of its 98MW floating solar plant at Danau Tok Uban (DTU) in Kelantan under LSS2, and a 100MW solar farm in Merchang, Terengganu under LSS3 – both of which had faced delays and cost pressures amid pandemic-related disruptions. The initial private placement, however, was insufficient to fully fund the projects, prompting Cypark to undertake another fundraising exercise later.
It was during this period that Jakel Group, a bumiputra textile retailer, emerged as Cypark’s single largest shareholder through its investment arm in early 2023.
Jakel Capital Sdn Bhd currently holds a 21.47% stake in the company.
Subsequently, management undertook a strategic refinancing exercise to stabilise the balance sheet and support the completion of key projects.
Following Abdul Wahid’s appointment, governance was strengthened, with Datuk Hamidah Moris, more popularly known as Ami Moris, transitioning from executive chairman to group managing director.
Although now a non-executive chairman, Abdul Wahid says he remains actively involved in advising management as Cypark navigates its next phase of growth.
“This is not an easy business. Cypark itself has gone through ups and downs over the years,” he says, adding that the group’s strength lies in its ability to execute RE projects in more technically challenging environments.
Abdul Wahid adds that he is cautious about pursuing conventional ground-mounted solar projects involving large-scale land clearing, favouring alternatives such as floating solar and agrivoltaics – where solar structures are elevated high enough to allow agricultural activities underneath – that allow dual land use.
Unknown to many, Cypark developed Malaysia’s first solar farm on a rehabilitated landfill in Pajam, Negri Sembilan, under the feed-in tariff programme in 2012.
The experience later expanded into larger RE developments, including the DTU floating solar project, strengthening its capabilities in non-conventional solar deployment.
Cypark also ventured into waste-to-energy (WTE), culminating in the commissioning of the country’s first fully operational large-scale WTE plant at Ladang Tanah Merah, Negri Sembilan, in late 2022.
Coming back to the Kenyir project, it is being undertaken via a consortium with Sunview Group Bhd for TNB Power Generation Sdn Bhd and Terengganu Inc as the project owners.
Cypark holds a 60% stake in the consortium, translating to an effective participation of about RM1.2bil of the total contract value.
Can Cypark deliver?
Ami contends that the project is particularly challenging as Tasik Kenyir is a flooded forest reservoir created in the 1980s, although the floating solar installation will occupy only a relatively small portion of the lake’s 15,000-ha area.
“There are still submerged trees, nearby elephant sanctuaries, endangered wildlife species and Orang Asli communities.
“So everything has to be done very carefully with strong environmental safeguards,” she says.
“One of the biggest lessons from DTU was stakeholder engagement, especially with local fishing communities.
“Initially, there was resistance, but over time studies showed that floating solar did not negatively impact the environment as feared.”
That project also provided valuable technical experience – lessons Ami describes as “invaluable” for Kenyir.
Given the project’s scale, Ami says procurement has become “a key strategic lever” to manage costs amid supply chain volatility and higher freight rates stemming from the Middle East conflict, particularly given the large volume of solar panels required and the tightly timed deployment schedule.
“Construction is slated to begin in September, with margins expected to be in the mid-teens,” she says.
Cypark is also currently bidding for about RM2.2bil worth of EPCC jobs and is hopeful of securing at least one more “meaningful” contract in the near-term.
Elaborating on its EPCC shift, Ami explains that tariffs for utility-scale RE projects have become increasingly competitive with the entry of larger industry players.
“The RE landscape has changed.
“Large balance-sheet players can afford to own assets at lower returns because their cost of capital is different. But we have to remain disciplined.
“We cannot just chase megawatts for the sake of headlines,” Ami says, pointing to Cypark’s participation in the LSS5+ programme where it holds a 49% stake alongside Sunview Group’s 51%.
“That’s why projects like Kenyir are important for us.
“It allows us to monetise our execution capabilities through faster-turnaround EPCC earnings without necessarily taking on full balance-sheet risk.”
Cypark is also leaning on its WTE segment as a long-term growth driver.
It has entered into an agreement with the government to proceed with its WTE Phase 2 expansion, although details are still subject to final negotiations.
“So when Cypark undertook what was, at the time, a fairly trailblazing investment to build the Phase 1 WTE plant, there were many operational challenges because waste profiles are highly specific to local context, including dietary habits and consumption patterns,” Ami shares.
She recalls that as a first mover, there was no domestic playbook to rely on, requiring continuous operational adjustments after commissioning.
It also exposed commercial realities, including a mismatch between the original tipping fee and the actual investment and operating requirements needed to run an efficient plant capable of supplying electricity to the grid.
She says WTE operations are now stable and generating core operating profits, with Cypark looking to bid for selected projects under the government’s planned 18 WTE rollout nationwide.
Improving operations and a stronger EPCC focus are expected to support Cypark’s financial recovery over the next few years.
The company has been making losses for the past three quarters and is likely to remain in the red for financial year ending April 30, 2026 (FY26).
Ami sees FY27 improving towards breakeven, while FY28 is expected to mark a more meaningful turnaround driven by stronger EPCC execution.
Against this backdrop, Cypark shares have seen limited investor attention, although the Kenyir job win drew some interest in early April.
The stock closed at 68 sen at last look, down from this year’s high of 78 sen on April 10.
