Sarawak Consolidated Industries Berhad announced that the Company has issued a letter of withdrawal to Kencana Healthcare Sdn. Bhd. ("KHSB") for the proposed engineering, procurement, construction and commissioning ("EPCC") contracts involving a specialist hospital project located in Johor Bahru.

SCIB had accepted a letter of award from KHSB dated 13 August 2021 for EPCC contracts involving the capital equipment procurement as well as the leasing concession for the procurement, supply, installation, testing and commissioning of medical equipment. SCIB and KHSB have mutually agreed to the Company withdrawing from the project. As part of the withdrawal from the project, KHSB will reimburse under a settlement agreement, the commitment fee amounting to MYR 1.65 million that SCIB had paid out in two tranches.

The withdrawal from the contracts will not have any material effect on the gearing, earnings per share and net assets of the Company for the financial year ending 30 June 2023.