SLGC Bhd says it is responding to rising construction material costs with client-proposed specification and brand changes, negotiations with subcontractors, and early price agreements with suppliers. The company has not disclosed a percentage increase in its construction costs or quantified the savings from these measures.
What value engineering means in SLGC’s response
In The Edge Malaysia’s Oct. 6, 2026 report, value engineering is described as working with a client to consider material or specification alternatives while aiming to maintain project performance. SLGC managing director Yong Zheng Lin said the company had proposed these exercises to clients, including changes to specifications or brands.
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These are proposals made with clients, not evidence that a particular substitution was approved or that project costs fell by a measured amount. The report does not identify specific materials, brands, projects, or savings.
Three measures SLGC reported
Client-side specification or brand alternatives
SLGC said it had suggested changing specifications or brands as one way to offset cost pressure. Whether an alternative is suitable depends on the client and project requirements; the report does not detail the approval process or technical criteria.
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Negotiating with subcontractors
The company also reported negotiating with subcontractors. The report gives no contract terms or quantified outcome, so this should be understood as a cost-management action rather than proof of savings.
Locking in material prices early
SLGC said it was securing material prices early with suppliers. Early price agreements can address exposure to later price changes for the materials covered, but the report does not state which materials were involved, how long prices were fixed, or how much cost volatility was avoided.
How much have SLGC’s costs risen?
The Oct. 6 report attributes margin pressure to higher construction costs and oil prices, but it provides no percentage increase in SLGC’s costs. Yong did not quantify the rise, and the company did not disclose a measured reduction attributable to value engineering, subcontractor negotiations, or supplier pricing. No specific cost-increase or savings figure can be concluded from the report.
What the measures mean for SLGC’s project pipeline
The report distinguished two separate workload figures. SLGC management reported a tender book of more than RM1 billion, with an estimated success rate of 10% to 15%. Separately, the company had RM1 billion in unbilled contract value as at Aug. 12, 2026, which was expected to be recognised progressively through FY2030. A tender book represents opportunities being pursued; unbilled contract value relates to awarded work yet to be billed. Neither figure establishes the profitability or cost outcome of future projects.
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FY2025 revenue rose while net profit fell
The Edge reported FY2025 revenue of RM324 million, up from RM229.64 million in FY2024, and net profit of RM13.99 million, down from RM16.03 million. It reported that residential projects accounted for 74.95% of FY2025 revenue and non-residential projects for 25.05%. These figures are attributed to The Edge’s report, rather than presented here as independently checked against company filings.
Data-centre opportunities were still exploratory
As of The Edge’s Oct. 6, 2026 report, Yong said SLGC was exploring and discussing data-centre opportunities but had not secured a deal. That is a dated status update, not confirmation of the company’s position after that date.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Company and market context
The report describes SLGC as a Malaysian design-and-build construction services provider for residential and non-residential projects, serving property developers and building owners. It also reports that the company debuted on Bursa Malaysia’s ACE Market on Oct. 6, 2026. On that publication date, its shares were reported down 3 sen, or 10.7%, at 25 sen, giving it a reported market value of RM140 million. Those are historical market figures, not current share-price information.
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