Kuala Lumpur, October 13, 2025 — ES Sunlogy Bhd’s wholly-owned unit, Savelite Engineering Sdn Bhd, has agreed to a settlement plan to pay RM 1.12 million in judgment damages to Askey Media Technology Sdn Bhd under an eight-month instalment schedule, following a court ruling that upheld the claim.
The dispute relates to delayed completion of renovation works for a two-storey office and a one-storey warehouse, including mechanical and electrical installations. Originally contracted, Savelite completed the project on 16 September 2017, more than a year beyond schedule, resulting in claims for rental losses and compensation from Askey.
Legal Timeline & Liability
- Savelite initially defended the claim and counterclaimed for RM 721,807 based on adjudication in 2018.
- In January 2024, the High Court ruled against Savelite, ordering RM 768,900 in liquidated damages plus interest (5% per annum from September 2016) and RM 10,000 in legal costs.
- Savelite appealed, against which the Court of Appeal issued a stay in March 2024. However, the appeal was dismissed on 22 July 2025, upholding the earlier judgment.
- Askey’s solicitors issued a letter of demand on 1 October 2025 for RM 1,112,579.36 (principal + interest + costs).
Following negotiations, both parties reached a final settlement in early October 2025. Savelite is to pay RM 10,000 immediately for legal costs, and the balance via eight post-dated cheques totaling RM 1,120,733.39, with monthly payments from 15 October 2025 to 15 May 2026.
Askey has agreed not to commence execution or winding-up proceedings so long as Savelite adheres to the payment timetable.
Market Impact & Corporate Disclosure
Following the announcement, ES Sunlogy’s share price fell 1.5 sen (-3.9 %) to 37 sen, valuing the group at around RM 259 million. Notably, the stock has gained 23 % since its listing at 30 sen on 20 February 2025.
ES Sunlogy said it will continue monitoring the situation, and will disclose material developments as required by governance rules.
Strategic & Risk Considerations
- Cashflow Implications: The instalment plan spreads the financial burden, but the payments may stress Savelite’s liquidity if business operations do not generate sufficient cash.
- Execution Risk: Non-compliance with the instalment schedule could trigger full execution or legal action by Askey.
- Reputational & Contracting Impact: The legal dispute and delayed project may affect trust with future clients or tenders in construction or engineering works.
- Investor Confidence: The share price dip suggests that the market is pricing in not just the financial cost but also caution over corporate governance or project execution discipline.
