23/09/2025

BIZ & FINANCE TUESDAY | SEPT 23, 2025

READ OUR

HERE

14

Malaysian Paper

/thesun

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

Solarvest, Brookfield team up for clean energy projects

PETALING JAYA: Integrated engi neering solutions provider Keling ton Group Bhd, through wholly owned subsidiary Kelington Engi neering (S) Pte Ltd, has accepted a letter of award worth S$33 million (RM108 million) to undertake bulk gas distribution piping system works for an advanced packaging facility project in Singapore. The contract was awarded by a turnkey engineering specialist for the project owner, which is a global semiconductor manufacturer. The works are to begin immediately and are expected to be completed by December 2026. The project owner is a repeat customer, with Kelington having executed multiple facility ex pansion projects for them in Singapore. This latest facility focuses on high-bandwidth memory ad vanced packaging, a critical enabler for artificial intelligence (AI) appli cations that require advanced memory and storage solutions. Notably, the facility is the first in Singapore to be recognised by the Global Lighthouse Network for its use of big data infrastructure and Industrial Internet of Things to implement AI in manufacturing. Kelington CEO Raymond Gan ( pic ) said, “The group continues to benefit from the strong growth of KUALA LUMPUR: Malaysian clean energy player Solarvest Holdings Bhd has entered into a Joint Investment Framework Agreement with Brookfield, a Canadian invest ment firm, to develop, construct and operate at least 1.5 gigawatts (GW) of utility-scale solar and battery energy storage projects in Malaysia, with an estimated investment value of over RM5 billion. Solarvest executive director and group CEO Datuk Davis Chong Chun Shiong said the collaboration will accelerate Malaysia’s decarbon isation agenda in line with the National Energy Transition Roadmap. “As we planned, at least 1.5 gigawatts will be committed by both parties over the next three to five years,” he said at a press conference yesterday. Based on the cost benchmark of RM3.5 million per megawatt, the planned 1.5GW portfolio would translate into a total investment value of around RM5.25 billion. Chong said that for each project under the partnership, a special purpose vehicle will be established, with Solarvest holding 51% and Brookfield 49%. Funding is expected to be primarily debt-financed, with the balance raised through equity contributions by both parties. Chong said the partnership is specifically designed for deployment under the Corporate Renewable Energy Supply Scheme (Cress) to tap into surging corporate demand for green power. “The market is open and demand for Cress is starting right now. And we do expect over the next three to five years that demand will progressively grow.” He added that Solarvest remains on track to reach at least RM3 billion

the semiconductor industry, as more manufacturing plants are being built or expanded to keep pace with technological advance ments and strengthen local supply chains. Our global expansion strategy has positioned us well to capture these opportunities and consistently secure new contracts.” As at June 30, the group’s out standing order book stood at RM1.3 billion, providing strong earnings visibility. In following July and August, the group secured an additional RM407.9 million in contracts, with RM318.1 million contributed by projects in Singa pore and Europe. Including the latest RM108 million award in Singapore, the group’s order book continues to expand steadily. “Tender activities remain robust, and we anticipate further wins as global semiconductor manu facturers continue to accelerate investments to support next generation technologies. This latest award reinforces Kelington’s strong track record in executing complex engineering projects and positions the group to benefit from rising AI driven demand,” said Gan. Across global markets, the semiconductor industry continues to demonstrate resilient growth. According to the World Semi o Canadian firm’s first investment in Malaysia, with potential value of over RM5 billion in order book by the end of the financial year, excluding the Brookfield collaboration. “The current order book is RM1.2 billion as far as up to date today but we do have a couple of contracts that we are exploring. That and LSS5 make up our order book into RM2 billion. Then with the recent 470 megawatt project with Malakoff, that will be one of the EPCC revenue and order book that we are expecting to add in as well. So that will complete the target of RM3 billion in total,” Chong said. Brookfield owns and operates one of the world’s largest, most diversified portfolios of renewable power and transition assets with more than 270GW of operational and development capacity. The partnership is Brookfield’s first investment in Malaysia via its Catalytic Transition Fund, the firm’s primary vehicle to accelerate decarbonisation in emerging markets.

From left: Solarvest executive director Edmund Tan, managing director Lim Chin Siu, Chong, Cheng, Brookfield renewable power and transition senior vice-president Stefano Ghezzi and Solarvest chief investment officer Daniel Ruppert.

corporates, particularly data centres and semiconductor manufacturers. “Brookfield is committed to deploying significant capital into Malaysia where these strong market fundamentals align with its capabilities to deliver power and decarbonisation solutions to large corporates, hyperscalers and other key customers globally,” he said in a separate statement.

pleted and ongoing projects in Malaysia. Brookfield brings capital strength, low cost of funds and global corporate offtake relationships. Brookfield’s head of renewable power and transition for Asia Pacific, Daniel Cheng, said Malaysia is emerging as a regional leader in clean energy, supported by ambitious national targets and surging demand from utilities and

Malaysia was chosen due to its standing as one of Southeast Asia’s most attractive renewable energy markets, underpinned by robust demand fundamentals and a sup portive policy framework. Under the partnership, Solarvest will contribute its local development expertise and execution track record, having delivered more than 2.3GW of solar photovoltaic across com

Pos Malaysia to pilot new business models to tackle challenges

Kelington secures S$33m gas distribution piping works contract

KUALA LUMPUR: Pos Malaysia Bhd will begin piloting new business models from the fourth quarter of 2025 to address the challenges faced by traditional mail services and to drive future growth. Group CEO Charles Brewer said Pos Malaysia is facing declining mail volumes, reduced foot traffic at post offices and intense competition in the parcel delivery market. He said the company has little choice but to adapt, as traditional mail volume has fallen by 79% since 2012, with the average Malaysian household now receiving only 27 letters per year compared to 173 in 2012. “At the same time, the number of customers visiting our post offices continues to decline, while the parcel delivery market has become unsustainably crowded with more than 100 licensed operators,” he said at a recent media briefing. Pos Malaysia will run three proof of concept (POC) trials to test its transformation strategy. Brewer said the first initiative involves merging its mail and parcel networks into a single end-to-end delivery system, with 45% already integrated and completion targeted for 2028. “It allows for better utilisation of resources and improves efficiency, reduces the end-to-end cost per delivery, increases capacity, and sup ports our environmental goals by lowering emissions,” he said.

The second trial will test alternate day mail delivery in Sungai Siput, Perak, from Nov 1 to Jan 31 2026, covering standard mail, non-standard mail and registered mail. “Alternate-day delivery is already being used successfully in other countries. It aligns with changing mail volume trends, lowers costs, reduces congestion, and cuts carbon emissions,”Brewer said. The third trial will focus on the retail network, where eight existing post office locations will be closed and replaced with 13 agent-run outlets, also known as pick-up and drop-off points. For this POC, Pos Malaysia will expand the use of existing partners, such as Mail Boxes Etc, CollectCo and ATX, along with Pos Mini locations. Brewer said the changes were unavoidable, as the company must take bold steps to ensure long-term sustainability, both for its 16,000 employees and for Malaysians who rely on postal services. He elaborated that Pos Malaysia was also drawing on the experience of counterparts abroad. “We spoke with postal operators that have already undertaken this approach to learn what worked and what did not, so that through the POC we can apply those lessons to our own operations.” No retrenchments would take place during the trial phase, with excess staff to be reassigned to other roles within the organisation. – Bernama

conductor Trade Statistics, the global market generated US$346 billion (RM1.46 trillion) in the first half of 2025, representing an 18.9% year-on-year increase. This surge is fuelled by the build-out of data centre infrastructure and rising demand for artificial intelligence applications. In parallel, Kelington has established a subsidiary in Japan to support a client’s expansion plans, with discussions underway for upcoming projects.