The Board of Directors of Mudajaya wishes to announce that on 29 June 2026, its subsidiary, Mudajaya Corporation Berhad ("MCB"), was served with a Notice of Arbitration dated 29 June 2026 by China Communications Construction (ECRL) Sdn Bhd ("CCC").
Background
MCB filed for an adjudication under the Construction Industry Payment & Adjudication Act 2012 (CIPAA) against CCC on 26.12.2025 for the under-certified sum of RM10,946,719.17 under Interim Payment Certificate No. 22 ("IPC 22") for works under "Engineering, Procurement and Construction of the East Coast Rail Link Project: Construction and Completion of Stations, Ancillary Buildings and other Associated Works (Package 3) for Location: Dungun, Kemasik and Chukai" ("Project").
On 31.05.2026, the Adjudicator delivered the Adjudication Decision in favour of MCB for the sum of RM7,773,695.18, together with interest, costs and expenses. By reason of CCC's failure to comply with the Adjudication Decision and make payment to MCB, MCB filed an Application to enforce the Adjudication Decision as if it is a Judgment or Order of the High Court. The matter is fixed for further case management on 29.07.2026.
In its Notice of Arbitration, CCC seeks the following relief:
(i) DECLARE that CCC is not obligated to pay MCB the adjudicated amount of RM7,773,695.18 awarded in the Adjudication Decision and that CCC is not obligated to pay to MCB any amount in excess of the sums certified in the IPCs; and
(ii) ORDER MCB to pay additional costs, loss and expenses, liquidated damages, management fee, interest and others totalling a sum of RM22, 747,392.29.
MCB denies that it is liable for the claims made by CCC, and will seek legal representation to defend the claims and to make counterclaims for monies due and owing by CCC to MCB. Save for the amount claimed, legal fees and disbursements in connection with the relief sought, no further financial impact on the Group is to be expected
The Company is unable to provide further information pertaining to these arbitration proceedings, given that it is still at its early stage, and by reason of confidentiality of such proceedings. The Company will continue to make the necessary announcements, to the extent needed to comply with its disclosure obligations under the relevant listing rules of Bursa Malaysia, should there be any material developments in relation to this matter and will modify and/or update its disclosures as appropriate.
This announcement is dated 2 July 2026.