KKB Engineering Berhad announced that it has initiated adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 against Fook Lai Construction & Development Sdn. Bhd. for outstanding payment.

Under the agreement, KKB fad acceptance as sub-contract Work to supply, fabricate, painting & installation of structural steel works for a proposed glove factory for Petchem Industrial Park, Tanjung Kidurong, Bintulu, Sarawak [Sarawak Medical Innovation & Technology Hub (SMITH)] dated 30 August 2022, Fook Lai had engaged KKB the sub-Contract Work.

The company is claiming against Fook Lai for the outstanding progressive claims amounting to RM10,059,082.30.

It added the legal action initiated is not expected to have any material effect on the earnings, net assets and gearing for the financial year ending 31 December 2024. The legal action is also not expected to have any material operational impact the company.