• CCC-ECRL confirmed that it had received the notice of adjudication from the Advancecon subsidiary, Advancecon Infra Sdn Bhd, which alleged outstanding payments for subgrade, drainage, and culvert works carried out under two sub-contract for the ECRL project.

KUALA LUMPUR (June 24): China Communications Construction (ECRL) Sdn Bhd (CCC-ECRL) said it has “wholly disputed” an alleged outstanding payment claim of RM15.22 million made by a subsidiary of Advancecon Holdings Bhd (KL:ADVCON) in relation to the latter’s works on the East Coast Rail Link (ECRL) project.

In a statement, CCC-ECRL confirmed that it had received the notice of adjudication from the Advancecon subsidiary, Advancecon Infra Sdn Bhd, which alleged outstanding payments for subgrade, drainage, and culvert works carried out under two sub-contract for the ECRL project.

“The payment claims served by Advancecon Infra have been wholly disputed by CCC-ECRL before operation of Section 6(4) of CIPAA,” the main contractor for the ECRL project said.

CIPAA, which stands for Construction Industry Payment and Adjudication Act 2012, is a Malaysian law designed to facilitate regular and timely payments in the construction industry and to provide a speedy and cost-effective dispute resolution mechanism through adjudication.

Section 6(4) stipulates that a non-paying party who fails to respond to a payment claim in the manner provided under this section is deemed to have disputed the entire payment claim.

“CCC-ECRL emphasises that it reserves all its rights and remedies in relation to the claim and will respond to the adjudication in accordance with the procedures prescribed under CIPAA,” CCC-ECRL added.

The statement came after Advancecon announced last Thursday (June 19) that the group had issued a notice of adjudication to CCC-ECRL concerning the payment dispute.

According to Advancecon’s filing, Advancecon Infra had submitted a payment claim on March 12, 2025, for outstanding sums of RM10.17 million and RM5.05 million, but CCC allegedly failed to make any payment.

Advancecon shares closed unchanged at 23.5 sen on Tuesday, valuing the group at a market capitalisation of RM137 million. The stock has dropped 13% compared to a year ago.