KUALA LUMPUR (Nov 19): Construction services firm TCS Group Holdings Bhd (KL:TCS) has secured a contract worth RM611.3 million, almost seven times its market capitalisation of RM90.9 million, to build a new highway and to upgrade roads under Phase 1B of the Pan Borneo Highway.

The job, known as Work Package 32, covers the 18.2km stretch between Telupid and Kampung Lumou Baru in Sabah, which is to be developed into a dual carriage highway with four new bridges, according to TCS's bourse filing on Tuesday.

The contract was secured through its wholly owned TCS Construction Sdn Bhd on Tuesday, which had accepted the Letter of Award (LOA) for the project from Jabatan Kerja Raya Sabah. The group is expected to start work on the project on Dec 20 and to complete it by June 19, 2028.

“We are delighted to be involved in a major infrastructure project and to contribute towards the upgrading of infrastructure works in Sabah. With the recent contract wins by the group, we are looking to continue building on this healthy momentum to seize more jobs,” said TCS managing director Datuk Tee Chai Seng in a statement.

TCS Group provides construction services for buildings, infrastructure, civil and structural works in Malaysia.

It is also involved in the J Satine mixed development project, which had recently been ordered to halt works as authorities investigate cracks that appeared on the shear walls, columns and floors of the condominium project in Wangsa Maju, following complaints from nearby residents about an explosion at the site in early November.

The main contractor of the project, TCS, had issued a statement saying it was working with the developer and consultants to investigate the cracks. The project is a joint venture between Gandingan Jakel Sdn Bhd and Platinum Victory.

TCS shares closed half a sen or 3.4% higher at 15 sen on Tuesday, with a market capitalisation of RM90.9 million.