Reference is made to the Company’s announcement dated 18 April 2019. Unless otherwise stated, the definitions used herein shall have the same meanings as set out in the announcement.  

Based on the Statement of Claim dated 27 December 2019 filed by IECSB in the arbitration, IECSB is seeking inter-alia, 372 days of extension of time or alternatively for time at large declaration, RM20,395,000.00 for loss and expense, RM29,250,000.00 for the amount allegedly due to IECSB  pursuant to the Statement of Final Account (based on a final contract sum of RM265,679,370.41) or alternatively any other amount assessed by the Arbitral Tribunal, interest on all sums directed to be paid from such date as the Arbitral Tribunal deems fit and costs.

UEML disputed all IECSB’s claims and counterclaimed IECSB for a total sum of RM34,374,000.00 which comprised of among others liquidated damages in the sum of RM27,288,000.00, defects rectification costs amounting to RM2,791,000.00, back charges and losses and expenses payable amounting to RM3,152,000.00 and all direct payment made by UEML to IECSB's sub-contractor amounting to RM1,143,000.00.

The Company wishes to inform that it has received the final award from the Arbitral Tribunal on 29 December 2025 where the Arbitral Tribunal declared, awarded, ordered and directed among others as follows (“Final Award”):

1. IECSB’s claim for extension of time in excess of what was granted by the architect is dismissed;
2. IECSB’s claim for declaration that time for completion was at large is dismissed;
3. IECSB’s claim for loss and expenses by reason of prolongation of the performance of the works is dismissed;
4. IECSB’s claim for the additional amounts in respect of Variation 17 and 52 of the Agreement is dismissed;
5. UEML’s claim for liquidated damages amounting to RM27,288,000.00 is allowed;
6. UEML’s claim for cost of rectifying defects is upheld in the amount of RM2,863,780.18 (which is inclusive of UEML’s claim for direct payment made and other backcharges);
7. The final account of the project is to be prepared on the basis that the final contract sum is RM265,296,973.50 (“Final Contract Sum”);
8. No award is made in respect of interest prior to the date of the Final Award. Interest shall only accrue at rate of 5% per annum on the amount due from one party to other from 21 days of the date of the Final Award until full payment;
9. IECSB shall pay UEML the cost of the arbitration proceedings in the sum of RM700,000.00 covering UEML’s legal costs and cost for engaging expert witness within 21 days from the date of the Final Award failing which UEML is entitled to interest at the rate of 5% per annum; and
10. IECSB shall reimburse UEML the arbitrator’s fees and administrative costs in the amount of RM240,977.64 within 21 days from the date of the Final Award failing which UEML is entitled to interest at the rate of 5% per annum.

After deducting the UEML’s claims allowed by the Arbitral Tribunal under the Final Award from the balance Final Contract Sum payable to IECSB, IECSB is required to pay UEML an amount of around RM2,097,165.35 plus costs and fee awarded by the Arbitral Tribunal amounting to RM940,977.64. The total sum payable by IECSB by UEML under the Final Award is therefore RM3,038,142.99 subject to deduction of any applicable tax.  

This announcement is dated 30 December 2025.