Meta Bright Group Secures RM60.0 Million Ready-Mix Concrete Supply Contract in Sabah

For the uninitiated, Meta Bright Group Berhad (KLSE: MBRIGHT) has strategically expanded its footprint in Sabah’s burgeoning infrastructure sector through the acquisition of a 70% stake in Expogaya Sdn. Bhd. (EXPO) for RM28.04 million. This acquisition, completed in January 2024, positions Meta Bright as a significant vertically integrated player in the construction industry, particularly in the manufacturing, trading, and supply of building materials such as ready-mixed concrete.

Today, Expogaya has further strengthened its market position by securing a concrete supply contract with Megamas Jaya Sdn. Bhd. Under this agreement, EXPO will supply ready-mixed concrete with an aggregate value of not less than RM60 million over a five-year period. This partnership enhances Expogaya’s role in supporting significant development projects in Sabah, including Megamas’s mixed-development “88 Avenue” in Kepayan, Kota Kinabalu, which is positioned near Kota Kinabalu International Airport.

The timing of the contract is particularly advantageous, coinciding with the Malaysian government’s substantial investment in Sabah’s infrastructure as outlined in Budget 2025. For example, the federal government has allocated RM6.7 billion to Sabah, focusing on key projects such as the Pan Borneo Highway and the Sabah-Sarawak Link Road (SSLR). The Pan Borneo Highway, a critical infrastructure project aimed at enhancing connectivity within Sabah and Sarawak, has seen significant progress.

Notably, seventeen work packages for Phase 1B in Sabah have been issued, with a contract value of RM9.7 billion, covering routes from Kota Belud to Kudat, Tawau to Kampung Lot M, and Telupid to Ranau. The overall expenditure for the Pan Borneo projects in both states has reached RM25.1 billion, all of these mega infrastructure projects may lead to heightened demand for construction materials.

Meta Bright’s strategic acquisition of EXPO and the substantial contract with Megamas Jaya now position the company to capitalise on these extensive infrastructure developments. By integrating upstream into the construction supply chain, Meta Bright is well-placed to contribute to and benefit from Sabah’s infrastructure expansion, aligning with the government’s vision for regional development and economic prosperity.

Last but not least, let’s not forget that as an investor, Meta Bright now presents untapped potential as a prime beneficiary of Sabah’s infrastructure boom.