“Kerjaya Prospek wins RM75.46 million in an adjudication ruling against Yong Tai’s subsidiary over unpaid works on The Apple project in Melaka. Legal disputes and counterclaims continue.“
Johor Bahru, 14th May 2025, 01.02pm – Kerjaya Prospek Group Bhd has secured a RM75.46 million adjudication award against Yong Tai Bhd’s subsidiary over an alleged unpaid construction contract for a mixed-use development in Melaka known as The Apple.
The ruling, delivered by an adjudicator—a neutral party appointed to resolve construction payment disputes—orders Yong Tai’s wholly owned unit, Apple 99 Development Sdn Bhd, to pay the amount with interest to Kerjaya Prospek (M) Sdn Bhd (KPM), a wholly owned subsidiary of Kerjaya Prospek Group.
In a Bursa Malaysia filing on Tuesday, Kerjaya Prospek said the RM75.46 million awarded represents 71.8% of the RM105.14 million that KPM initially claimed under the dispute.
Yong Tai Responds, Says Award “Significantly Lower” Than Claimed
In a separate filing, Yong Tai confirmed the adjudication outcome but noted that the award was “significantly lower” than the original sum claimed. The group said it is currently seeking legal advice on the decision and will provide updates as material developments unfold.
Yong Tai also stated that the ruling is not expected to materially impact its financials, as the claimed sum has already been accounted for in Apple 99’s financial statements for the financial year ended June 30, 2024.
Background: Contract Dispute on “The Apple” Project
The dispute centres around a RM213.75 million contract awarded in 2016 to KPM for the construction of The Apple, a mixed development featuring a 16-storey hotel, a 32-storey serviced apartment tower, and an eight-storey podium car park.
KPM initially filed the adjudication application in November 2024, citing an outstanding payment of RM105.14 million. Before this, KPM had also initiated a lawsuit against Apple 99, alleging a breach of a February 2020 settlement agreement, and sought to enforce both the settlement and an associated hotel sale agreement.
In response, Apple 99 filed a counterclaim, asserting that a 2023 supplementary agreement had superseded the earlier terms. The company is seeking RM76.62 million in damages, alleging project delays and unrectified defects in the contract works.
The court trial is scheduled for October 2025, and both parties remain locked in litigation.
Additional Lawsuit Against Yong Tai and CEO
Beyond the adjudication, Kerjaya Prospek has filed a separate legal action against Yong Tai Bhd and its CEO, Datuk Boo Kuang Loon, seeking to hold them personally and corporately liable for the RM105.14 million as guarantors.
Market Reaction
On Tuesday, shares of Kerjaya Prospek closed unchanged at RM2.05, giving the construction group a market capitalisation of RM2.6 billion. Meanwhile, Yong Tai’s share price rose 8.11% or 1.5 sen to 20 sen, bringing its market cap to RM83.49 million.
