Selangor ,1 April – MGB Berhad (“MGB” or the “Group”), a leading construction and property development solutions provider and a subsidiary of LBS Bina Group Berhad, is pleased to announce that its wholly-owned subsidiary, MGB Construction & Engineering Sdn Bhd, has accepted a Letter of Award (“LOA”) from Lien Dak Builders Sdn Bhd for the proposed development of a Centralised Labour Quarters (“CLQ”) in Bukit Tambun, Penang.
The LOA has an estimated contract value of RM200.74 million, consisting of construction of the main building works, which will be carried out in two phases. The first phase involves the development of a 19-storey CLQ comprising 408 units of workers’ hostel, complemented by 4-storey facilities block featuring a parking floor, a centralised waste depot, and two security posts. The second phase will feature an 18-storey CLQ comprising 358 units of workers’ hostel and a utilities floor. Construction is targeted for completion within 21 months.
The CLQ project is designed to provide well-organised, systematic accommodation for foreign workers across the state of Penang, pursuant to the state’s aspiration to centralise workers closer to industrial locations and reduce congestion and social issues. Additionally, it also prioritises safety and improved accommodation standards, particularly for foreign workers and gradually reduce the number of temporary labour quarters in the region.
For this project, MGB will be mobilizing a combination of manpower and technological expertise in the form of its reputable and established IBS precast concrete panels and elements all the way up north to Penang. Casted in a controlled environment, the consistency and uniformity of IBS precast concrete panels and elements can save construction time by up to 33% and on-site labour by up to 31% when compared to conventional construction. MGB is close to completing over 15,000 units of apartments and landed houses using IBS precast concrete panels and elements, solidifying its effectiveness and efficiency of its usage in the construction process.
The Penang CLQ development also reflects MGB’s growing role in delivering purpose-built, socially responsible infrastructure that support workforce welfare while meeting increasing stringent regulatory and operational standards. Designed to provide structure, compliant, and high-quality accommodation, the project aligns with national initiatives to improve living conditions for the foreign workforce and promote sustainable urban development.
Commenting on the award, Tan Sri Dato’ Sri Ir. (Dr.) Lim Hock San, MGB’s Group Executive Chairman, said:
” As we continue to expand and seek growth, we continue to improve our operational strength and proven track record in completing and delivering large-scale, purpose-built development. As a recognised construction company, we continue to seek growth in our core business, and by combining a disciplined and planned approach with our latest digitalised tools and software when executing our projects to ensure timely completion, we are able to strengthen our brand identity and create long-term value for our stakeholders.
Following the award of the project with a letter of award value of approximately RM200.74 million, the Group’s total outstanding order book will be increased to approximately RM1.29 billion as of 28 February 2026, where unbilled sales from its property development remains at a steady RM 394.94 million for the same period.
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