This article first appeared in The Edge Malaysia Weekly on June 16, 2025 - June 22, 2025

Construction and property company Vizione Holdings Bhd (KL:VIZIONE) has terminated two major contracts collectively valued at RM1.24 billion in a span of two months. Both were terminated amicably.

In December 2023, Vizione accepted a letter of award (LOA) from Permaju Property Sdn Bhd, a wholly-owned subsidiary of Permaju Industries Bhd (KL:PERMAJU), for a turnkey project involving the design, construction and delivery of three apartment blocks comprising 1,344 units in Jalan Sepangar, Menggatal, Sabah, valued at RM490 million.

The period for completion was 36 months from the commencement date. Eighteen months later or halfway through the 36-month period, Vizione announced that both parties (Vizione and Permaju) had on June 11, 2025 agreed to mutually terminate the LOA with immediate effect.

Despite the relatively large value of the contract, Permaju did not make any announcement on the award to Vizione or about the resubmission of plans or the termination.

Vizione clarified that no work related to the LOA had commenced even though 18 months had passed, and no material costs were incurred since its acceptance. As such, the termination was amicable.

Prior to this, on April 30 this year, Vizione terminated a RM750 million contract for the construction of a 22-storey office tower with car parks, two blocks of apartments and related facilities in Gombak, which it had secured in May 2024 from privately held Fields of Forest Sdn Bhd.

On this termination, Vizione says that Fields of Forest was unable to finalise its project development mix due to prevailing market uncertainties, which led to delays in obtaining amended building plans and advertising permits, and faced funding issues. As such, the termination was also amicable.

But Vizione is not doing well. For its third quarter ended February 2025, it suffered a net loss of RM79.42 million on RM192.66 million in revenue, and had accumulated losses of RM194.1 million. Coincidentally, Vizione and Permaju have common shareholders.

Minority shareholders of Vizione, formerly known as Astral Supreme Bhd, should be asking what is going on. Vizione has been loss making for five years. How did the company, which has a RM38.7 million market cap,  secure such big contracts?

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