Cypark Resources Berhad is undergoing a major business transformation by shifting from an asset-heavy business model to focusing mainly on Engineering, Procurement, Construction, and Commissioning (EPCC) activities. The company said this move comes as the renewable energy sector becomes increasingly competitive with the entry of larger players that have access to lower financing costs. Managing Director Datuk Ami Moris explained that the EPCC-focused strategy will allow Cypark to generate faster earnings from project execution while reducing the financial burden of heavy upfront investments and long payback periods.
One of the key projects supporting this transition is the 1.96 billion Ringgit contract for the development of a 595 MW floating solar farm with a battery energy storage system at Tasik Kenyir in Terengganu, Malaysia’s largest man-made lake. The project is being carried out through a consortium where Cypark holds a 60 percent stake, while Sunview Group owns the remaining 40 percent.
The project faces several environmental and technical challenges due to the unique conditions at Tasik Kenyir, which include submerged forest remains, nearby elephant sanctuaries, endangered wildlife habitats, and indigenous Orang Asli communities. Construction activities are expected to begin in September, with anticipated profit margins in the mid-teens range. The company also highlighted the importance of strategic procurement due to fluctuations in solar panel prices and freight costs caused by global geopolitical conflicts.
Cypark expects this strategy shift to support its financial recovery after several consecutive quarters of losses. The company aims to achieve financial breakeven by 2027 and return to profitability by 2028 as major EPCC projects move forward. It is also bidding for around 2.2 billion Ringgit worth of new EPCC contracts and plans to participate in future waste-to-energy projects.
Subscribe to get the latest posts sent to your email.
