Fibromat (M) Berhad Secures RM283.5 Million Contract for Central Spine Road: A Strategic Leap into Infrastructure with Strong ESG Focus

Fibromat (M) Berhad, a renowned name in geotechnical solutions and specialist engineering, is charting a bold new course. Through its wholly-owned subsidiary, MTS Fibromat (M) Sdn Bhd, the Group has been awarded a significant Letter of Award (LOA) worth RM283.5 million by Casa Hartamas Sdn Bhd. This contract is for the execution and completion of key geotechnical and erosion control works under the Central Spine Road (CSR) Package 2 and Section 2A in Kelantan, Malaysia.

A Bold Step into Infrastructure Development

The two-year project, commencing on 15 May 2025, marks Fibromat’s maiden venture into large-scale infrastructure construction. The awarded scope includes critical segments from the Sungai Lakit Bridge to Gua Musang and Paloh 2—vital arteries that are part of the government's effort to improve connectivity in East Coast Malaysia.

What makes this a pivotal move for Fibromat isn’t just the scale of the project, but its strategic alignment with the company’s long-term vision of evolving from a specialist geotechnical player to a full-fledged infrastructure solutions provider.

"This project marks a significant milestone for Fibromat (M) Berhad as it represents our first foray into infrastructure construction services," said Mr. Danny Ng Kian Boon, Managing Director and CEO of Fibromat. “It’s a strong endorsement of our capabilities and opens up an entirely new frontier for our group.”

Strengthening Financial and Strategic Position

The project is expected to contribute positively to Fibromat’s financial performance over the next 2 to 3 financial years. With this LOA, the company’s outstanding order book now stands at approximately RM317.8 million as of 15 May 2025—a clear sign of strong forward visibility.

Danny Ng elaborated, “This move aligns with our aim to strengthen our presence in the infrastructure segment and enhance the value proposition of Fibromat (M) Berhad for our shareholders.”

An Embedded Commitment to ESG Values

More than just growth and profitability, this project provides Fibromat a platform to extend its commitment to Environmental, Social and Governance (ESG) standards—an area increasingly critical to investors, regulators, and communities alike.

Environmental Stewardship

Fibromat’s core business in erosion and sediment control positions it uniquely to deliver road construction works with minimal environmental disruption. The project scope includes not only traditional construction elements such as pavement and drainage but also environmental protection works—an area where Fibromat's expertise in geosynthetics and biomass-based erosion control systems will shine.

As part of its sustainability agenda, the Group is expected to integrate eco-friendly materials, reduce soil erosion, and maintain biodiversity through thoughtful engineering. These efforts will mitigate carbon footprint and protect the fragile ecosystems of Kelantan's highland and riverine zones.

Social Responsibility

The construction of the Central Spine Road enhances rural connectivity, economic inclusivity, and access to public services in underserved regions of Kelantan. Local communities stand to benefit from job creation, economic upliftment, and improved mobility.

Moreover, Fibromat has a strong track record of engaging local contractors and workforce in its operations—a practice expected to continue under this project, thereby boosting community empowerment and socioeconomic development.

Governance and Compliance

Fibromat’s collaboration with government-linked entities such as Jabatan Kerja Raya (JKR) and its layered subcontracting relationship through Casa Hartamas and Core Value Sdn Bhd signifies robust governance protocols.

The company’s public listing on Bursa Malaysia also subjects it to stringent reporting and disclosure obligations, ensuring transparency, accountability, and adherence to best corporate practices.

Looking Ahead

With this contract, Fibromat is not only building a road but paving the way toward becoming a diversified infrastructure player that balances profitability with purpose. Its ESG-driven approach—backed by technical expertise and strategic foresight—positions it strongly to ride the wave of sustainable development sweeping across Malaysia.

In the words of Mr. Danny Ng, “We remain confident that our focus on high-impact, high-integrity projects will continue to drive positive financial and societal outcomes for Fibromat and its stakeholders.”

As Malaysia advances its national infrastructure agenda, players like Fibromat (M) Berhad are proving that growth, responsibility, and innovation can indeed go hand in hand.