Founder Group Limited Announces Additional US$8.6 Million Contract Under Malaysia’s Large Scale Solar Programme

Founder Group (NASDAQ: FGL) secured an additional EPC contract worth RM34 million (~US$8.6 million) under Malaysia’s Large Scale Solar 5 (LSS5) programme for a 9.5 MW solar facility.

Rhea-AI Summary

Founder Group (NASDAQ: FGL) secured an additional EPC contract worth RM34 million (~US$8.6 million) under Malaysia’s Large Scale Solar 5 (LSS5) programme for a 9.5 MW solar facility. The project is scheduled to reach commercial operation no later than May 1, 2027.

Founder Group’s total LSS5 contract value now stands at about RM70 million (~US$17.7 million). Management said it intends to pursue further awards under potential LSS6, CRESS and regional solar opportunities to build recurring revenue.

Positive

• New EPC contract of RM34 million (~US$8.6M) for a 9.5 MW plant
• Total LSS5 contract backlog of RM70 million (~US$17.7M)
• Commercial operation target set for May 1, 2027
• Management intends to pursue LSS6 and CRESS opportunities to grow recurring revenue

Negative

• Project completion tied to a May 1, 2027 commercial-operation deadline
• Concentration of announced contracts in LSS5 Malaysia programmes increases policy dependency risk

Argus Mar 25 session

-18.06% close to close Open Argus

Details

News Market Reaction – FGL

On Mar 25, the day this news came out, FGL closed 18.06% below the previous close.

Data tracked by StockTitan Argus for the Mar 25 session.

Key Figures

New EPC contract value: US$8.6 million New EPC contract value (RM): RM34 million Total LSS5 contracts: US$17.7 million +5 more

New EPC contract value

US$8.6 million

Additional LSS5 contract announced March 25, 2026

New EPC contract value (RM)

RM34 million

Additional LSS5 contract under Malaysia’s LSS5 programme

Total LSS5 contracts

US$17.7 million

Total contract value secured under LSS5 to date

Total LSS5 contracts (RM)

RM70 million

Aggregate contract value under LSS5 programme

Plant capacity

9.5 MW

Capacity of solar facility to be built under LSS5

Commercial operation deadline

May 1, 2027

Scheduled latest commercial operation date for LSS5 facility

Malaysia RE target

70 percent

Renewable-energy installed capacity target by 2050

Potential LSS6 capacity

2 GW

Possible added solar capacity under future LSS6 programme

Historical Context

5 past events · Latest: Mar 16

5 events

1. Mar 16

   LSS5 solar contract

   24h Move

   -1.7%

   Secured RM19.5M (≈US$5M) EPC contract for 5.5MW LSS5 solar plant.

2. Mar 09

   CGPP solar contract

   24h Move

   -4.7%

   Won ≈RM16M (US$4.14M) EPCC contract for 25.4MW CGPP solar project.

3. Mar 03

   Nasdaq compliance

   24h Move

   -5.4%

   Regained compliance with Nasdaq minimum US$1 bid price requirement.

4. Feb 20

   Listing deficiency notice

   24h Move

   -15.9%

   Nasdaq notice of deficiency in minimum 500,000 publicly held shares.

5. Feb 06

   Share combination

   24h Move

   -27.5%

   100-for-1 share combination to address Nasdaq bid price requirements.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

epcc, solar photovoltaic (pv), large scale solar 5 (lss5), battery energy storage systems (bess), +2 more

6 terms

epcc technical

"a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider"

EPCC stands for Engineering, Procurement, Construction and Commissioning — a type of turnkey contract where a single contractor designs a project, buys the equipment and materials, builds the facility, and brings it into operation. For investors, EPCC matters because it concentrates project responsibility and often fixes price and schedule risks with the contractor, much like hiring one builder to deliver a finished house instead of managing multiple trades yourself.

solar photovoltaic (pv) technical

"solutions provider for solar photovoltaic (PV) systems in Malaysia"

Solar photovoltaic (PV) describes panels or cells that convert sunlight directly into electricity using a physical effect in semiconductor materials, much like roof tiles that produce power instead of just covering a house. For investors, PV matters because it creates predictable streams of energy production and potential revenue, carries upfront installation and maintenance costs, and is sensitive to government incentives and electricity prices, all of which affect returns and asset value.

large scale solar 5 (lss5) technical

"under Malaysia’s Large Scale Solar 5 (“LSS5”) programme"

A numbered procurement round for large-scale solar power projects in which a government or utility invites bids to build and operate solar farms and sign long-term power agreements; think of it like a public auction to add new solar capacity. It matters to investors because winning projects secure future revenue streams and can change a developer’s growth prospects, affect power prices and grid supply, and signal policy support or risk for the renewable-energy sector.

battery energy storage systems (bess) technical

"adding another 2GW of solar capacity alongside requirements for battery energy storage systems (BESS)"

Battery energy storage systems (BESS) are large installations that store electricity in batteries and release it when needed, like a giant rechargeable battery for the power grid. They matter to investors because they help smooth out supply and demand, support more renewable energy, and create new revenue streams (selling stored power, providing backup and stability), which can change utility costs, business models, and the value of energy-related companies.

renewable‑energy (re) technical

"achieve a target of 70 percent renewable‑energy (RE) installed capacity"

Energy that comes from natural sources that replenish themselves—such as sunlight, wind, moving water, geothermal heat and biological materials—used to generate electricity, heat buildings or fuel vehicles. Investors care because renewable energy projects and companies can offer long-term, predictable revenue streams like a rented asset (panels or turbines), reduce exposure to fossil-fuel price swings and benefit from policy support and growing demand for cleaner power, affecting returns and risk profiles.

corporate renewable energy sourcing schemes (cress) technical

"under LSS6, Corporate Renewable Energy Sourcing Schemes (CRESS) to create electricity"

Corporate renewable energy sourcing schemes (CRESS) are programs companies use to secure electricity from renewable sources through contracts, direct purchases, or shared projects—think of a company agreeing to buy a farmer’s crop each season to lock in supply and price. Investors care because these arrangements can lower and stabilize energy costs, reduce regulatory or reputational risks tied to carbon emissions, and affect future cash flow and valuation as markets price sustainability and energy exposure.

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Company’s Total Contract Value Under Programme Now US$17.7 Million

KUALA LUMPUR, Malaysia, March 25, 2026 (GLOBE NEWSWIRE) -- Founder Group Limited (NASDAQ: FGL) (“Founder Group” or the “Company”), a leading engineering, procurement, construction, and commissioning (EPCC) solutions provider for solar photovoltaic (PV) systems in Malaysia, today announced that, in collaboration with a prominent solar investment company, it has secured an EPC contract valued at RM34 million (approximately US$8.6 million) under Malaysia’s Large Scale Solar 5 (“LSS5”) programme.

As per the newly signed contract, Founder Group will undertake the design, construction, testing and commissioning of the 9.5 MW solar facility the Company agreed to build under LSS5 earlier this month. That facility is scheduled to achieve commercial operation not later than May 1, 2027.

To date, Founder Group has secured total contract value of about RM70 million (approximately US$17.7 million) under LSS5.

Also known as Peralihan Tenaga SuRiA (PETRA), LSS5 is part of the Malaysian government’s ongoing efforts to achieve a target of 70 percent renewable‑energy (RE) installed capacity and carbon neutrality by 2050. This ambitious RE installed capacity is considered a significant step for the adoption of solar energy in the country, reinforcing the nation’s long‑term commitment to clean energy transition.

According to MBSB Investment Bank Bhd (MBSB Research), Malaysia may soon launch LSS6, potentially adding another 2GW of solar capacity alongside requirements for battery energy storage systems (BESS). This launch, said MBSB, could support a multi-year growth trajectory for solar players, with solar projected to account for more than half of Malaysia’s power capacity mix by 2050.

“This new LSS5 contract, coming shortly after our recently announced LSS5 award, demonstrates the accelerating trust in our technical capability and reinforces the momentum we are building across Malaysia’s utility‑scale solar market,” said Founder Group Chief Executive Officer Lee Seng Chi.

“The Company aims to leverage this milestone to secure additional contracts under LSS6, Corporate Renewable Energy Sourcing Schemes (CRESS) to create electricity from renewable sources, and from various regional solar opportunities, thereby laying the foundation for sustained recurring revenue generation.”

About Founder Group Limited

Founder Group Limited is a pure-play, end-to-end EPCC solutions provider for solar PV facilities in Malaysia. The company’s primary focus is on two key segments: large-scale solar projects and commercial and industrial (C&I) solar projects. The company’s mission is to provide customers with innovative solar installation services, promote eco-friendly resources and achieve carbon neutrality.

For more information on the Company, please visit https://www.founderenergy.com.my/.

Safe Harbor Statement

This press release contains forward-looking statements that reflect our current expectations and views of future events. Known and unknown risks, uncertainties and other factors, including those listed under “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission, may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You can identify some of these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements involve various risks and uncertainties. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. We qualify all of our forward-looking statements by these cautionary statements.

CONTACT INFORMATION:

For media queries, please contact:

Founder Group Limited
info@founderenergy.com.my

Investor Relations Inquiries:

Skyline Corporate Communications Group, LLC
Scott Powell, President
1177 Avenue of the Americas, 5th Floor
New York, New York 10036
Office: (646) 893-5835
Email: info@skylineccg.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Founder Group (FGL) announce on March 25, 2026 about LSS5 contracts?

Founder Group announced an additional RM34 million (~US$8.6M) EPC award for a 9.5 MW plant. According to the company, this raises its total LSS5 contract value to about RM70 million (~US$17.7M) and targets COD by May 1, 2027.

How large is the solar project in the RM34 million contract for FGL and when will it operate?

The newly awarded project is a 9.5 MW solar facility scheduled for commercial operation no later than May 1, 2027. According to the company, Founder Group will handle design, construction, testing and commissioning under the EPC scope.

What is the total contract value Founder Group (FGL) has under Malaysia’s LSS5 after this award?

After the latest award, Founder Group has approximately RM70 million (~US$17.7M) in LSS5 contracts. According to the company, this total reflects multiple LSS5 EPC awards secured to date across Malaysia.

How might LSS6 and related programmes affect Founder Group’s (FGL) growth prospects?

LSS6 and CRESS could create new tender opportunities supporting multi-year growth for solar providers. According to the company, a potential LSS6 launch may add capacity and support Founder Group’s aim to win additional utility-scale contracts.