Hextar Capital Secures RM60 Million Contract to Upgrade Sibu’s Jalan Oya

Hextar Capital Berhad has officially announced that its subsidiary, Legacy Core Sdn. Bhd., has secured a contract valued at RM60 million to undertake road upgrading works in Sibu, Sarawak.

The project was formalised following a Letter of Award issued by Doland (M) Sdn. Bhd. on 1 October 2026. Under the terms of the agreement, Legacy Core will be responsible for the comprehensive upgrading of Jalan Oya, a vital arterial route within the Sibu district.

While the original publisher notes the contract’s substantial value, specific technical milestones, the project’s estimated completion date, and the breakdown of work phases have not yet been disclosed by Hextar Capital. The appointment marks a significant operational development for the subsidiary as it takes on a major infrastructure mandate in East Malaysia.

This contract represents a notable win for the group’s construction and engineering segment. By undertaking work on a key route like Jalan Oya, Legacy Core is positioning itself to benefit from the ongoing development initiatives within Sarawak’s growing urban landscape, which has seen increasing federal and state investment in recent years.

For the average Malaysian resident and driver in Sibu, this project is expected to lead to tangible improvements in traffic flow and safety standards once completed. Jalan Oya is a critical artery for local commerce; upgrading the infrastructure could reduce travel times and alleviate the congestion often experienced by commuters and logistics providers operating in the area.

For local SMEs and the regional labour market, the injection of RM60 million into a localized infrastructure project is a positive signal. With the national unemployment rate holding steady at 3.0% as of July 2026, projects of this scale often create a ripple effect, necessitating a mix of skilled engineering talent and general manual labour, potentially providing a boost to local employment figures in Sibu.

The awarding of this contract occurs against a backdrop of a resilient national economy, which saw a robust 6.0% year-on-year GDP growth in the latest quarter. Despite the inflationary pressures felt by consumers, with headline inflation at 1.9% as of August 2026, infrastructure investment remains a key pillar for sustaining this growth momentum.

Furthermore, the project highlights the ongoing necessity for infrastructure maintenance and expansion, even as the country navigates shifting fuel costs, such as the current diesel price of RM5.27. Reliable road networks remain essential for controlling the cost of goods and services, as efficient logistics are highly sensitive to the quality of primary routes like Jalan Oya.

Investors and market observers will likely watch for further announcements regarding the project's timeline and potential impacts on Hextar Capital’s future earnings. As it stands, it remains unknown whether Legacy Core will engage local sub-contractors for the project or the exact scope of the upgrades planned for the road.