KUALA LUMPUR, 25 August 2025 – Gamuda Berhad has announced that its joint venture company, Naim Gamuda (NAGA) JV Sdn Bhd, has been awarded a significant contract for the development of the Northern Coastal Highway, Limbang Work Package – Section 1. The award was made by the Regional Corridor Development Authority (RECODA), a Sarawak state government agency tasked with spearheading regional infrastructure development.
Under the contract, valued at RM1.1335 billion (excluding SST), NAGA will serve as the main contractor for the project. NAGA is a joint venture between Naim Engineering Sdn Bhd, which holds a 70% equity stake, and Gamuda Berhad, which owns the remaining 30%.
Project Scope and Timeline
The Limbang Work Package – Section 1 encompasses the construction of approximately 14.7 kilometres of a four-lane dual carriageway highway in the Limbang area. The package also includes the development of bridges, a flyover, extensive earthworks, and associated infrastructure. The project is expected to be completed within 48 months from the date of site possession.
Risks and Challenges
Gamuda highlighted several potential risks that could affect the project’s delivery, including the fluctuation of construction material prices, labour market constraints, and unpredictable weather conditions in Sarawak’s northern region. Despite these factors, the company expressed confidence in its ability to execute the project efficiently.
ESG and Regional Impact
Beyond physical infrastructure, the project is designed to support broader environmental, social, and governance (ESG) objectives. According to Gamuda, the highway will serve as a catalyst for socio-economic development by strengthening connectivity and trade links between Sarawak, Sabah, and Brunei Darussalam. Enhanced regional mobility is expected to stimulate investment and improve living standards in northern Sarawak.
Financial Contribution
The contract is projected to contribute positively to the revenue and earnings of Gamuda Group beginning from the financial year ending 31 July 2026 and continuing until the project’s completion. The company emphasized that none of its directors, major shareholders, or related parties have any direct or indirect interest in the project.
Looking Ahead
Gamuda affirmed that it will continue to update Bursa Malaysia with material developments relating to the Northern Coastal Highway project. This award marks another milestone in the company’s long-standing role as a key infrastructure player in Malaysia, particularly in the Sarawak region.
