KUALA LUMPUR, 22 September 2025 — Kelington Group Berhad has clinched a SGD33 million (RM108 million) contract through its wholly owned subsidiary Kelington Engineering (S) Pte. Ltd. to build a bulk gas distribution piping system for a cutting-edge advanced packaging facility in Singapore. The project underscores Kelington’s expanding role in the semiconductor supply chain, at a time when demand for advanced memory and AI-driven technologies continues to surge.
The contract, awarded by a turnkey engineering specialist on behalf of a leading global semiconductor manufacturer, will see Kelington deliver works immediately, with completion targeted for December 2026. The facility itself is a landmark project, focusing on high-bandwidth memory advanced packaging—an essential component for artificial intelligence applications that demand high-performance memory and storage. Significantly, it is the first facility in Singapore recognised by the Global Lighthouse Network for integrating big data infrastructure and the Industrial Internet of Things (IIoT) to deploy AI in manufacturing.
Strengthening Semiconductor Ties
The project marks another collaboration with a repeat customer for Kelington, reinforcing the group’s reputation for executing complex engineering contracts in advanced technology environments. Chief Executive Officer Ir. Raymond Gan (顏漢慶) said the award highlights Kelington’s ability to capture opportunities in an industry expanding rapidly to meet technological advancements and secure supply chains.
“Our global expansion strategy has positioned us well to consistently secure new contracts. With tender activity remaining robust, we are confident of further wins as semiconductor manufacturers accelerate investments to support next-generation technologies,” Gan said.
Expanding Order Book and Earnings Visibility
As at 30 June 2025, Kelington’s outstanding order book stood at RM1.3 billion, providing healthy earnings visibility into 2026. Additional contract wins in July and August amounted to RM407.9 million, with Singapore and European projects contributing the bulk. Including this latest award, the group’s order book continues to expand steadily, underlining its strong execution pipeline across regions.
Kelington is also extending its geographical reach, establishing a new subsidiary in Japan to support client expansion plans, with discussions underway for future contracts. This diversification strengthens the group’s presence in key semiconductor hubs and enhances its positioning for sustained growth.
Industry Backdrop: AI and Data Centres Drive Demand
The global semiconductor market continues to register robust growth. According to the World Semiconductor Trade Statistics, industry sales reached US$346 billion in the first half of 2025, an 18.9% increase year-on-year. The surge is largely driven by the build-out of data centre infrastructure and soaring demand for AI-related applications. With high-bandwidth memory forming a crucial part of these ecosystems, Kelington’s involvement in advanced packaging facilities situates it at the heart of this structural growth story.
Investor Angle
For investors, the contract win highlights Kelington’s dual strengths: sectoral positioning in the high-growth semiconductor value chain and geographical diversification across Asia and Europe. Its order book visibility suggests earnings resilience, while new contracts tied to AI and data centre demand could deliver margin upside. Risks remain in execution timelines and cost pressures, but the repeat nature of customer engagement provides confidence in continuity.
Kelington’s steady pipeline of wins and proactive expansion into Japan reflect a company aligning itself with long-term industry growth drivers, providing an appealing narrative for investors seeking exposure to Asia’s semiconductor infrastructure build-out.
