Guocoland

GuocoLand (Malaysia) Bhd’s wholly owned subsidiary GLM Emerald Hills (Cheras) Sdn Bhd has been ordered to pay RM6.36 million to Barisan Performa Sdn Bhd in an arbitration proceeding concerning a terminated construction contract.

In a filing with Bursa Malaysia today, GuocoLand said the dispute arose from a contract under which Barisan Performa was appointed as contractor for site clearance, earthwork, and related works on a parcel of land.

The contract was later terminated, with GLM Emerald Hills asserting that the termination was mutually agreed upon.

However, Barisan Performa claimed that the termination amounted to a repudiation of contract.

On June 16, 2025, the arbitrator awarded Barisan Performa a total of RM6,360,847.45.

This includes RM1.24 million for work completed and materials left at the site, and RM5.12 million in loss of profit due to what the arbitrator deemed unlawful repudiation.

The award also includes interest at 5% per annum on the awarded sum from the date due until full payment, and incidental costs amounting to RM414,487.94.

GuocoLand noted that a provision of RM1.24 million had already been recognised earlier, resulting in an estimated net financial impact of RM5.54 million from the arbitration award.

The company said GLM Emerald Hills is currently consulting its solicitors on the next course of action, including a possible move to set aside the award.

GuocoLand added that it will make further announcements if there are any material developments on the matter. — TMR

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