KUALA LUMPUR (Jan 30): Hartanah Kenyalang Bhd (KL:HKB) said on Friday that it has secured its largest contract to date worth some RM275 million to build a prison in Sibu.

The design-and-build contract will run for three years beginning Feb 9, 2026 until Feb 8, 2029, the Sarawak-based construction firm said in an exchange filing. The project was awarded by the Public Works Department to its wholly owned subsidiary Hartanah Construction Sdn Bhd.

“We are grateful that the Public Works Department has given us this opportunity to participate in building the Sibu Prison to assist the Ministry of Home Affairs to resolve the overcrowded situation in the existing prison,” managing director Seah Boon Tiat said in a statement.

The award boosts Hartanah Kenyalang’s total order book to RM567.7 million.

The contract follows Budget 2026 allocation for the construction of a new prison in Sibu. The new facility, which can accommodate up to 1,000 inmates upon completion, will replace the existing prison built in 1918 that currently has a capacity of about 450 inmates.

“This Sibu Prison will be equipped with modern facilities and equipment which is not only able to improve the living conditions and welfare of the inmates but also the working environment of the Sibu Prison’s officers,” Seah said.

Shares of Hartanah Kenyalang were unchanged at 18.5 sen, giving it a market capitalisation of RM111.51 million at noon break on Friday, ahead of the contract announcement. The stock was listed on the ACE Market in June last year, with an initial public offering price of 16 sen.