EVD BERHAD Secures Significant Subcontract for Traffic Control System

In a strategic move that underscores its expanding footprint in the transportation ICT sector, EVD BERHAD has secured a lucrative RM18 million subcontract for the East Klang Valley Expressway (EKVE) traffic control and surveillance system. This development, announced on May 26, 2025, marks a pivotal moment for the Malaysian government-owned enterprise, traditionally known for its specialization in textiles and garments.

The contract, awarded to EVD’s wholly-owned subsidiary, EV-Dynamic Sdn Bhd, by WZR Property Sdn Bhd, the main contractor, involves the comprehensive supply and installation of a state-of-the-art traffic control and surveillance system. The project, which commenced on May 21, 2025, is set to unfold over a 21-week period, with critical milestones including the completion of Section 1 by July 30, 2025, and Section 2 by October 30, 2025. Each phase encompasses internal testing and commissioning, ensuring the system’s efficacy and reliability.

This venture into the transportation sector not only diversifies EVD BERHAD’s portfolio but also positions it as a key player in the burgeoning field of transportation ICT solutions. The company’s ability to secure such a significant contract reflects its growing expertise and reputation in providing comprehensive system solutions beyond its traditional domain.

Financially, the contract is anticipated to bolster EVD BERHAD’s future earnings, earnings per share, and net assets per share, signaling a positive trajectory for the company’s financial health. Despite the company’s shares closing unchanged at 5.5 sen on the day of the announcement, the market capitalization stood at RM24.5 million, with the contract expected to contribute positively to the company’s valuation over time.

The completion of this project within the stipulated timeframe is crucial, as any delays could result in a daily penalty of RM18,000 to the main contractor, underscoring the importance of timely execution and the potential financial implications of the contract.

As EVD BERHAD ventures into new territories, this contract not only represents a significant financial opportunity but also a strategic expansion of its business operations. The successful execution of this project could pave the way for further diversification and growth, reinforcing EVD BERHAD’s position in the Malaysian market and beyond.

In conclusion, EVD BERHAD’s foray into the transportation ICT sector through this RM18 million subcontract for the EKVE traffic control system is a testament to its adaptability and strategic vision. As the company embarks on this new chapter, stakeholders and industry observers alike will be keenly watching its progress, anticipating the broader implications for its future growth and diversification efforts.