Jati Tinggi awarded a major engineering contract by Tenaga Nasional in Johor
KUALA LUMPUR: Malaysian engineering company Jati Tinggi Group Bhd has secured a RM117.17 million contract from Tenaga Nasional Bhd (TNB). The contract covers the construction of a 275-kilovolt (kV) bulk supply connection for a data centre project in Johor. Under the Jati Tinggi TNB contract, the company will establish the TNB 275kV Jelutong switching station to support the data centre’s power needs. This project reflects ongoing infrastructure development in southern Malaysia to strengthen electrical capacity for critical industries.
The joint venture will initiate works completing within two years from commencement
TNB awarded the contract to a joint venture between Jati Tinggi Holding Sdn Bhd and Idiqa Holding Sdn Bhd. The joint venture operates on an unincorporated basis, with Jati Tinggi holding a 70 per cent profit share and Idiqa holding 30 per cent. According to a Bursa Malaysia filing, the joint venture received the official letter of acceptance from TNB.
The contract will commence from 16 December, with a total construction period of 730 days from the start date. The project scope includes the supply, erection, testing, and commissioning of the 275kV bulk supply connection linking the Jelutong switching station to the data centre. After completion, the agreement provides for a one-year defect notification period.
Official statements confirm Jati Tinggi TNB contract project scope and anticipated contributions to earnings
Jati Tinggi stated that the project is expected to contribute positively to the group’s future financial performance. This includes potential improvements in earnings, earnings per share, and net assets per share over the project period. The Jelutong switching station forms part of TNB’s wider infrastructure upgrade programme to improve power supply reliability in Johor and nearby regions.
TNB has highlighted that upgrades to substations and switching stations remain essential to meet rising electricity demand. Growing industrial and commercial activities, especially data centre operations, continue to drive this need. At present, no safety incidents have been reported in connection with the project’s commencement.
Industry observers note the importance of infrastructure projects for Malaysia’s energy sector development
Public discussions and industry commentary have underscored the importance of infrastructure projects such as this. Analysts emphasise that timely grid upgrades are crucial to support high-demand facilities, including data centres that underpin Malaysia’s digital economy. Many observers also view joint ventures among local firms as an effective way to combine expertise and resources for large engineering projects.
At the same time, stakeholders stress the need to maintain strict safety and environmental standards during construction and commissioning. These measures support sustainable development in line with national energy policies.
The Jati Tinggi TNB contract project’s completion will influence both logistical arrangements and engineering capabilities in Johor
In the short term, construction activities near the Jelutong switching station may require local traffic management and site safety measures. Authorities aim to reduce disruption while ensuring public and worker safety. Over the longer term, the completed facility is expected to strengthen the regional power network and support rising industrial electricity demand in Johor.
Furthermore, modern switching station technology can improve system efficiency and operational safety across the national grid. Overall, the Jati Tinggi TNB contract reflects Malaysia’s continued focus on upgrading critical infrastructure to support long-term industrial and technological growth.
Location: KUALA LUMPUR
Date: 2025-12-16
