KUALA LUMPUR (Dec 3): Advancecon Holdings Bhd (KL:ADVCON) has achieved a second favourable adjudication ruling in its payment dispute with China Communications Construction (ECRL) Sdn Bhd (CCC) over work completed for the East Coast Rail Link (ECRL) project.
According to a Bursa Malaysia filing, Advancecon’s wholly-owned subsidiary, Advancecon Infra Sdn Bhd, received the adjudication decision on Tuesday (Dec 2), with the adjudicator directing CCC to pay RM3.33 million, plus 5% per annum interest from Sept 4, 2025 until full settlement.
CCC is also ordered to cover RM100,000 in adjudication costs and bear all fees for the adjudicator and the Asian International Arbitration Centre (AIAC), including reimbursing Advancecon Infra for sums advanced during the proceedings.
The adjudication, issued under Sections 7 and 8 of the Construction Industry Payment and Adjudication Act 2012 (CIPAA), is legally binding unless overturned by the High Court.
CEO Highlights Governance and Timely Payments
Advancecon Group CEO Datuk Phum Ang Kia said the ruling demonstrates the company’s commitment to disciplined project management.
“While the financial impact on FY2025 is not material, both outcomes reaffirm our entitlement to timely payments for completed work,” he stated.
This latest decision follows an earlier adjudication in October, in which Advancecon Infra was awarded RM7 million out of a RM10.17 million claim for another ECRL-related payment dispute.
Background on the ECRL Claims
Advancecon submitted claims in March 2025 for subgrade, drainage and culvert works along two stretches of the ECRL, where it has acted as a subcontractor since 2020. CCC allegedly did not make any payments on these claims, prompting Advancecon to initiate adjudication proceedings in June. The total outstanding claims amount to RM15.22 million.
Shares of Advancecon, a provider of earthworks and civil engineering services, closed at 20 sen, leaving the group with a market capitalisation of RM116.95 million. The stock has declined more than 23% year to date.
Sector Context
While primarily a civil engineering and infrastructure play, these outcomes highlight the importance of contractual compliance and timely payments in Malaysia’s construction and property development sectors — particularly in high-demand zones where projects intersect with commercial property in KL, office space in Bukit Jalil, and nearby industrial land in Selangor, factories in Puchong, and industrial property in the Subang area.
