SEAPORT-001 | Sabah Maritime Intelligence Portal v4.5

0 EXECUTIVE INTELLIGENCE ASSESSMENT

STRATEGIC ASSESSMENT

Sabah's maritime sector is at a critical inflection point. SBCP operates at 100%+ utilization (502K TEU vs 500K capacity) while its RM900M expansion (WCT-CCCC JV) sits at ~18% completion — creating an acute congestion crisis with 8-day vessel wait times. DP World assumed full operational control 9 Sep 2024 (51% equity), integrating Sabah into an 88.3M TEU global network; Q1 FY2025 post-handover saw Suria revenue -37.6% YoY as SBCP flows shifted to JV. FY2025 consolidated: RM277.8M revenue (+2.5%), PBT RM61.5M, PAT RM46.5M. The RM84.3B Sabah economy depends on three commodity pillars — crude petroleum (RM21.3B), palm oil (RM17.3B via 128 mills, 4.27M t CPO), and LNG (RM4.6B) — all subject to price volatility. Key edge: SBCP THC at ~RM280/TEU is 28% below Port Klang (RM390 post-Jul 2025) — a significant competitive tariff advantage for BIMP-EAGA routing.

VALUATION CONCLUSION: DCF analysis yields intrinsic value range of RM1.06-RM2.76/share across scenarios. Current price RM1.63 sits at base-case fair value, with asymmetric upside if concession extends (+63% to RM2.76). ROCE (~2.9% FY24) below WACC (6.87%) signals current value destruction — but expansion completion reverses this by 2029 under base case. Peer comparison confirms extreme undervaluation at 6.94x P/E vs sector median 19.7x.

KEY INTELLIGENCE JUDGMENT

Under base scenario, SBCP reaches 750K TEU by 2030, generating RM225M revenue at 25% EBITDA. Concession extension (expires Aug 2034) is the single largest binary risk — failure eliminates ~60% of terminal value. Probability-weighted expected value across scenarios: RM1.84/share (+13% upside). Entry signal: below RM1.40 with expansion progress >30%.

CONFIDENCE RATINGS

Financial DataHIGH

Throughput ModelHIGH

DCF ValuationMEDIUM

SBCP TimelineMEDIUM

Trade ForecastsHIGH

Commodity PricesMEDIUM

Concession Ext.LOW

SecurityHIGH

LeadershipHIGH

ESG / Green PortMEDIUM

WorkforceMEDIUM

Dividend PolicyHIGH

Port SpecificationsHIGH

Shipping LinesHIGH

Debt & CapexHIGH

Analyst CoverageMEDIUM

Sabah PoliticsHIGH

BIMP-EAGA RoutesMEDIUM

Customer Conc.MEDIUM

Climate RiskHIGH

Legal / RPTHIGH

Mega-ProjectsMEDIUM

Historical Fin.HIGH

INVESTMENT THESIS

CAUTIOUS OVERWEIGHT

Asymmetric upside if concession extended + SBCP on revised timeline

SCENARIO TARGET PRICE

RM1.63

vs current RM1.63

1 KEY PERFORMANCE INDICATORS

2 DCF VALUATION MODEL — SURIA CAPITAL NEW

WACC Components

Risk-Free Rate	3.57%	10Y MGS (Feb 2026)
Beta	0.52	Low systematic risk
Equity Risk Premium	6.00%	Malaysia ERP
Cost of Equity (Ke)	6.69%	CAPM: 3.57+0.52*6.0
Cost of Debt (Kd)	6.09%	After-tax: 4.57%
Equity Weight	79.2%	RM646.7M mkt cap
Debt Weight	20.8%	RM170M incl. MFRS16 leases
WACC	6.87%	Discount rate
Terminal Growth	2.5%	Below MY GDP 3-4%
Concession End	Aug 2034	8.5yr remaining

DCF Output by Scenario MODEL

10-Year Free Cash Flow to Equity (RM Millions)

3 SENSITIVITY ANALYSIS — SHARE PRICE IMPACT NEW

WACC vs Terminal Growth (RM/share)

TEU CAGR vs Rev/TEU (RM/share)

Key Variable Impact on Valuation

Probability-Weighted Valuation MODEL

Scenario	Fair Value	Probability	Weighted	Upside
Bull	RM2.76	25%	RM0.69	+69%
Base	RM1.63	50%	RM0.82	0%
Bear	RM1.06	25%	RM0.27	-35%
Expected Value		100%	RM1.78	+9.2%

PROBABILITY RATIONALE

Bull 25%: Requires concession extension + SBCP on-time + commodity upswing (3 concurrent catalysts = low probability). Base 50%: SBCP completes mid-2028 with moderate delays + concession extension probable (most likely single path). Bear 25%: Further delays + commodity downturn + Sarawak competition + concession risk (multiple negative factors must coincide). Expected value RM1.78 suggests ~9% upside from current RM1.63.

Valuation Football Field (RM/share) MULTI-METHOD

4 PEER VALUATION COMPARISON NEW

Operator	Market	TEU (M)	Revenue	EBITDA %	P/E	EV/EBITDA	ROE	Mkt Cap
Suria Capital	Malaysia	0.50	RM278M	~39%	6.94x	2.93x	3.9%	RM584M
Westports	Malaysia	10.98	RM2.34B	~55%	19.7x	13.6x	26.3%	RM15.2B
ICTSI	Philippines	14.50	$3.23B	66%	19.9x	~15x	28%+	PHP1.33T
Adani Ports	India	~20	INR38Kcr	72.5%	28.4x	~18x	18%+	INR3.55Tcr
DP World	UAE/Global	88.3	$20.0B	27.2%	~12x	~10x	15%	$25B+
PSA Int'l	Singapore	40.9	SGD7.7B	~35%	Private		—	Private

PEER ANALYSIS

Suria trades at 65% discount to sector P/E (6.94x vs median 19.7x) and 80% discount on EV/EBITDA (2.93x vs 13.6x). This reflects: (1) concession expiry risk, (2) sub-WACC ROCE, (3) small-cap illiquidity, (4) single-asset concentration. If concession extends and ROCE exceeds WACC post-expansion, re-rating to 12x P/E = RM2.76 share price (+69%). The discount is a combination of real risk and market mispricing.

Valuation Multiple Comparison

5 SURIA CAPITAL HOLDINGS — FINANCIAL MODEL 5765.KL

Revenue & Profitability (RM Millions) 5-YEAR

Margin Analysis (%)

Revenue Segmentation FY2024

ANALYST NOTE

Post DP World handover (Sep 2024), port revenue now flows through JV — FY2025 a "transitional year." 5 segments: Port Ops, Contract & Engineering, Ferry Terminal, Logistics & Bunkering, Property (Jesselton Docklands). Property revenue recognition (JDA1) = key diversification driver. FY2025 consolidated: RM277.8M rev, RM61.5M PBT, RM46.5M PAT. Total assets RM1.43B, equity RM1.18B.

Balance Sheet & Valuation

Share Price	RM1.63	Market Cap	RM584M
P/E	6.94x	EV/EBITDA	2.93x
P/Book	0.49x	Div Yield	1.78%
Total Assets	RM1.43B	Total Debt	RM170M
D/E	3.9%	Cash & ST Inv	RM284M
ROCE	~2.9%	WACC	6.87%
ROE (FY25)	3.9%	ROE (FY24)	2.9%
52W High/Low	RM2.17/1.38	Analyst	HOLD RM1.79
Payout Ratio	24.2%	DPS 10yr CAGR	-6.4%

VALUATION

ROCE ~2.9% (FY24) below WACC 6.87% = value destruction. P/Book 0.49x prices concession risk. Extension confirmation could re-rate to 0.8x P/Book = RM2.76 (+69%). Cash & ST investments RM284M vs RM170M total liabilities (incl. MFRS16 leases; bank borrowings RM44.9M) = strong net cash position. ROE ~3.9% depressed by RM1.18B equity base.

Historical Financial Performance (10-Year Trend) NEW

Year	Revenue (RM M)	PBT (RM M)	PAT (RM M)	EPS (sen)	DPS (sen)	Trend
FY2015	236.7	73.2	52.8	14.7	4.00	PEAK ERA
FY2016	223.1	61.4	44.2	12.3	4.00	DECLINE
FY2017	218.9	58.7	42.1	11.7	3.50	DECLINE
FY2018	231.5	63.8	45.9	12.8	3.50	RECOVERY
FY2019	245.2	66.1	47.6	13.3	3.50	GROWTH
FY2020	212.4	45.7	32.9	9.2	3.50	COVID
FY2021	228.6	56.3	40.5	11.3	3.00	RECOVERY
FY2022	271.0	70.4	50.6	14.1	3.00	POST-COVID PEAK
FY2023	259.8	56.2	40.4	11.3	3.00	NORMALISE
FY2024	271.1	47.1	33.87	9.45	3.00	DPW TRANSITION
FY2025	277.8	61.5	46.5	13.0	3.00	PROPERTY BOOST

10-YEAR FINANCIAL PATTERN

Revenue range-bound RM212-277M over decade. FY2022 post-COVID peak at RM271M. FY2025 breaks through at RM277.8M driven by Jesselton Docklands Phase 1 revenue recognition (Q3 property: RM81.1M, +75% QoQ). Core port revenue structurally compressed post-DPW handover as SBCP flows shift to 51% JV. Auditor: KPMG PLT (consistent). No qualified opinions. Cash & ST investments: RM284M (bank borrowings only RM44.9M) — strong liquidity provides 18+ months runway.

6 FREE CASH FLOW PROJECTION NEW

FCF Bridge — Operating CF to FCFE (RM M)

Cash Flow Model Detail

7 THROUGHPUT FORECASTING MODEL — 10-YEAR

SBCP Container Throughput Scenarios ('000 TEU) FORECAST

Projection Assumptions

Total Port System Throughput

8 SBCP EXPANSION TRACKER — RM899.81M

Completion

~18%

vs 100% target Feb 2025

82pp behind schedule

Revised Target

2027

2+ years delayed

WCT Holdings(60%)+CCCC(40%) JV

Total Capex

RM1.03B

Federal SEDIA funded

500K → 1.25M TEU

Infrastructure Specifications

Parameter	Current	Expanded	Change
Berth Length	500m	833m	+333m (+67%)
Berth Width	50m	100m	+100%
Draft Depth	12m	14m	+2m
Container Yard	15 ac	40 ac	+167%
Capacity	500K TEU	1.25M TEU	+150%
Crane GMPH	26	50	+92%

Congestion Crisis (Feb 2026)

Capacity Utilization100.4%

Vessel Wait Time8 days

Container Dwell4+ hours

Lorry QueueMiles-long

ECONOMIC IMPACT

Interim measures (temp yard +30K TEU, 24/7 govt services, RTG cranes) = ~6% relief only. Each month delay costs RM15-25M in economic losses. Yard utilization improved from 100% to 64% after Ro-Ro relocation.

9 REVENUE PROJECTION MODEL — SBCP POST-EXPANSION

Revenue by Scenario (RM Millions)

Revenue Model Detail

10 SABAH TRADE FLOWS & COMMODITY ANALYSIS

Export Composition 2024 (RM61.3B)

Trade Balance (RM Billions)

Key Trade Metrics 2024

Total Trade

RM107.8B

+2.7% YoY

Exports

RM61.3B

-2.3% YoY

Imports

RM46.4B

+10.2% YoY

Surplus

RM14.9B

-27.9% YoY

11 TRADE PARTNER ANALYSIS NEW

Trade Partner Composition (2024)

Import Source Growth (2024 YoY)

Palm Oil Export Destinations (Malaysia-wide, proxy)

Country	Volume (M t)	Share	Trend
India	3.03	17.9%	#1 (11yr)
China	1.39	8.2%	Stable
EU	1.29	7.7%	EUDR risk
Kenya	1.26	7.5%	Growing
Turkey	0.91	5.4%	Stable
Philippines	0.69	4.1%	BIMP-EAGA
Japan	0.60	3.6%	Stable

Container Freight Economics

Route/Metric	Value	Notes
East MY Port Premium	USD350-500/TEU	vs Port Klang rates
China→MY (20ft min)	RM703	Shenzhen origin
China→MY (40ft min)	RM1,171	Shenzhen origin
Shenzhen→P.Klang	5 days transit	Fastest route
Container Imbalance	41% empty globally	Sabah import-heavy
Cabotage Relief (2017)	-15 to -25%	Freight reduction
P.Klang THC (Jul25)	RM390/TEU	+30% from RM300

FREIGHT INTELLIGENCE

Sabah classified as "outport" by major carriers. 87.5% of boxes transit Port Klang hub. ES1 service (PIL+Evergreen+COSCO+CMA CGM, 13 vessels, May 2024) = first direct multi-carrier service. Cabotage exemption (2017) cut rates 15-25% but premium persists at USD350-500/TEU above Peninsular.

12 VESSEL & SHIPPING ECONOMICS NEW

SBCP Vessel Calls

~620/yr

Pre-expansion capacity

Avg Vessel Size

~1,500 TEU

Feedermax class

Post-Expansion

4-5K TEU

Panamax capable (14m)

Vessel Size Distribution

Port THC Comparison (2025)

13 COMMODITY PRICE FORECASTS & PRODUCTION

Price Forecasts (USD) MEDIUM

Sabah Production

Commodity	2023	2024	Trend	Notes
CPO	4.50M t	4.27M t	-5.1%	26%+ MY; 128 mills
Crude Oil	~240K bpd	~239K bpd	Flat	42% MY production
LNG	~2M t	2.17M t	+8.5%	PFLNG3 2027
Cocoa	171 t	307 t	+79.7%	RM12B MY exports
Timber	—	+11%	Growing	JP22%,US11%,TW9%

EUDR IMPACT

Dec 2025 large cos, Jun 2026 smallholders. EU 2.66M t at risk. MSPO recognized. 3% check rate. Impact: premium pricing for compliant CPO favors certified Sabah producers.

14 SABAH PORT NETWORK

Port	Role	TEU 2024	Specialization	Depth	Investment	Status
SBCP	Container Hub	~350K	Containers, Transship	12→14m	RM900M	CONGESTED
Kota Kinabalu	Multi-function	Legacy	General, Cruise	—	RM4.2B	TRANSFORMING
Sandakan	East Coast Hub	60-70K	Palm, Timber	11m	Maint.	STABLE
Tawau	South Gateway	100-150K	CPO, Cocoa, Barter	—	RM70M	UPGRADING
Lahad Datu	Industrial Port	50-80K	Palm, Energy	20m	USD4B	MEGA
Kunak	CPO Specialist	Min	CPO 1,500 MT/d	—	Refinery	NICHE
Kudat	BIMP-EAGA	10-20K	PH corridor	—	CIQS	DEV
SBOT	Oil Terminal	N/A	Petroleum	—	—	OPS

15 COMPETITIVE BENCHMARKING — ASEAN 2024

ASEAN Port Throughput (M TEU)

Malaysia Port Market Share

INTELLIGENCE

Malaysia 29.4M TEU 2024 (+9%, 5th globally). P.Klang World #10. PTP first to 14M TEU. Sabah 502K = 1.7% national. THREAT: Bintulu Port 52M tonnes (+6.4% YoY), Sarawak state takeover RM1.8B approved Feb 2026 (Acts 858/859). Sarawak Ports Authority consolidating all ports by 2026. RM100B deep-sea port 2028 = existential competitor. SBCP must complete expansion before Sarawak online.

16 DP WORLD PARTNERSHIP

DPW Global TEU

88.3M

100+ countries

DPW Revenue

$20.0B

EBITDA $5.5B | 27.2%

Jebel Ali

15.5M

Cap: 19.4M | 80% util

SBCP Within DP World

DPW Equity	51%
Sabah Ports	49%
Revenue Model	Financial receivable
DPW Capex 2025	USD 2.5B global
SBCP vs Portfolio	0.57%

Target Margin	27%+
PKlang THC	RM300→390/TEU
PTP THC	USD75-80/TEU
Rev/TEU Growth	+13.9% YoY
DPW EBITDA Margin	27.2%

PARTNERSHIP ECONOMICS

Operational handover: 9 September 2024. Post-handover Q1 FY2025: Suria revenue -37.6% YoY to RM46M (SBCP revenue now flows to JV). Net profit -19% to RM12M. Financial receivable model = Suria's 49% share of JV profits replaces direct port revenue. DPW 27.2% EBITDA vs Suria 12% net = significant operating leverage. TOS + PCS integration expected to reduce dwell time 30-40% and improve throughput 10-15% on existing berths by 2027.

DP World SE Asia Portfolio NEW

Country	Port/Terminal	Details
Vietnam	SPCT Ho Chi Minh	Strategic gateway
Thailand	Laem Chabang	Strategic gateway
Indonesia	Belawan NCT	+1M TEU added 2024
Laos	Savan Logistics Dry Port	Acquired 2024
Malaysia	SBCP Sabah	51% JV since Sep 2024

DP World: 78 terminals, 40 countries, 119K employees. SBCP = 0.57% of global throughput. Regional HQ: Singapore (est. 2021).

DP World Leadership Change CRITICAL

13 Feb 2026: Chairman & Group CEO Sultan Ahmed bin Sulayem resigned after being named in Epstein Files release as co-conspirator. Not criminally charged.

New leadership:
• Chairman: HE Essa Kazim (effective 13 Feb 2026)
• Group CEO: Yuvraj Narayan (effective 13 Feb 2026)

SBCP Impact Assessment: Leadership change creates strategic uncertainty for emerging market JVs. Bin Sulayem personally signed the Sabah JV in April 2024. New CEO Narayan (ex-CFO) may prioritise portfolio rationalisation over expansion. Monitor for any changes to SBCP investment commitments.

17 LOGISTICS & CORRIDORS

Pan-Borneo Highway (Sabah)

Phase 1A (706km) — 82.55%Q1 2026

Phase 1B — 3.70%2028

Phase 2 (96km Tamparuli-Ranau)Planning

Total: RM27B | Rail feasibility Q3 2026 | 39 projects to 2030

Industrial Parks

Facility	Size	Investment	Status
KKIP	8,320 ac	RM11.2B	AT CAPACITY
POIC Lahad Datu	4,400 ac	RM3.5B	EXPANDING
SOGIP Sipitang	~100% occ	RM29.87B	Esteel RM31B \| SAMUR RM4.6B
Jesselton	14.2 ha	RM4.2B	PHASE 1

18 INVESTMENT PIPELINE

Active Investments (RM Billions)

BIMP-EAGA Regional Context

EAGA Economy

$1.34T

18% of 4-country GDP

EAGA Trade

$166B

21.7% members' total

FDI Inflows

$20.7B

+6.1% | 64.9% regional

Infra Pipeline

$67B

217 projects

19 RISK ASSESSMENT MATRIX

20 SECURITY & GEOPOLITICAL

ESSCOM Maritime 5YR ZERO

Kidnappings since Jan 2020 | Threat: LOW (PCG Jan 2025)

Overall	LOW
Sulu Piracy	CONTAINED
PH Claim	DORMANT
SCS	ELEVATED

ESSZONE (est. 25 Mar 2013): 10 districts incl. Sandakan, Tawau, Lahad Datu, Kunak, Semporna. Commander: Datuk Victor Sanjos. Forces: PDRM + MAF + MMEA.
Timeline: 2013 Lahad Datu intrusion (56 militants KIA) → 2016 peak (17 kidnappings, 58 crew) → 2017 multi-nation transit corridors → 2020+ zero incidents.
2024-28 plan: AI-enhanced surveillance, long-range cameras (Indrasabah, Banggi), ESSCOM Fusion Centre, tactical floating barges, fibre optic installation.
Insurance: Marine premiums track ReCAAP data. War Risk policies may be required for piracy cover. Sulu-Celebes classified "moderate" risk — adds cost vs SCS routing.

MA63 Revenue Claim

Current: 5% petroleum royalty
Claim: 40% revenue entitlement (MA63)
Impact: 20% royalty @ $69/bbl = +RM3-5B/yr
Status: Negotiating; politically sensitive

Port Impact: Higher state revenue = accelerated infrastructure, industrial parks, logistics modernization.

21 STRATEGIC TIMELINE 2024-2035

22 CABOTAGE POLICY & PORT TARIFF ANALYSIS NEW

Cabotage Policy Impact on Sabah

Factor	Detail	Impact
Policy Origin	1980 Merchant Shipping Ordinance	MY-flagged vessels only for domestic trade
2017 Exemption	Non-MY ships allowed Pen↔Sabah	Freight -15 to -25%
2024 Status	Exemptions partially revoked	Costs re-escalating
Price Premium	Consumer goods +30% vs Peninsular	Construction materials +20%
Container Imbalance	80% imports at SBCP	Carriers recover via elevated inbound rates
Dependency	90%+ goods via maritime	No rail/road alternative to Peninsula

CABOTAGE INTELLIGENCE

Sabah classified as "outport" by major carriers. 87.5% of containers transit Port Klang hub. The 2017 exemption cut freight 15-25%, but 2024 partial revocation threatens to reverse gains. If full cabotage restored, Sabah shipping costs could rise 10-20%, directly impacting port competitiveness and consumer prices. Future exemption = 10-20% freight reduction in Year 1.

Port Tariff Comparison (2025-26)

Port	THC/TEU	vs SBCP	Notes
SBCP	~RM280	—	RM200/20ft, RM300/40ft (derrick)
Port Klang	RM390	+39%	Phased: RM300→345→375→390
Tanjung Pelepas	~RM340	+21%	USD75-80/TEU equiv
Singapore	~RM530	+89%	USD120-130/TEU
Vietnam (avg)	~RM220	-21%	Regional low-cost competitor

TARIFF ARBITRAGE

SBCP's THC at RM280/TEU is 28% below Port Klang (RM390 post-Jul 2025). This is a significant competitive advantage for BIMP-EAGA routing. P.Klang's 30% increase (RM300→390, phased Jun 2025-Jan 2027) could drive regional cargo toward lower-cost alternatives including expanded SBCP. Sabah Ports Authority tariff framework dates to 1977 regulations — modernization overdue.

23 PALM OIL EXPORT LOGISTICS CHAIN NEW

Sabah Palm Oil Infrastructure

Metric	Value	Context
CPO Production	4.27M tonnes	26%+ of Malaysia total
Plantation Area	1.55M hectares	Largest state by area
Palm Oil Mills	128 mills	34.7M t FFB capacity
Oil Extraction Rate	20.4%	Highest in Malaysia
POIC Lahad Datu	4,400 acres	60 investments, 20m draft
Tank Farm Cap	20,000 MT	POIC liquid bulk
Kunak CPO Terminal	1,500 MT/day	Dedicated CPO specialist

LOGISTICS CHAIN

Plantation → 128 Mills (FFB processing) → Pipe rack network → Tank farms (POIC Lahad Datu 20,000 MT) → Port terminals (Lahad Datu 20m draft, Sandakan 11m, Kunak specialist) → Export vessels. POIC is APEX-designated Tender Port for CPO and Palm Olein Futures. Downstream: CPO refineries, biodiesel plants, biomass processors all co-located.

Major Sabah Palm Oil Exporters

Company	Scale	Key Metric
Wilmar International	230,951 ha planted	World's largest palm oil trader
KL Kepong (KLK)	Major refinery ops	Downstream integration
FGV Holdings	26.7% planted area	Govt-linked; 3 key landscapes
Hap Seng Plantations	HQ Lahad Datu	$780M export revenue (2024)
Genting-Musim Mas	~27% exports	Tabin, Tawau, Lower Sugut

EUDR EXPOSURE

EU 2.66M t palm oil imports at risk under EUDR. Large companies Dec 2025, smallholders Jun 2026. MSPO certification recognized by EU (3% check rate). Certified Sabah CPO commands premium pricing. 43% of Malaysia FFB from smallholders — compliance support critical. Sabah's high OER (20.4%) makes certified CPO more cost-efficient per tonne.

24 COMPETING PORTS THREAT ANALYSIS NEW

Sarawak Ports — Primary Threat

Port	Throughput	Status	Threat Level
Bintulu Port	52M tonnes	State takeover RM1.8B (Feb 2026)	HIGH
Samalaju Industrial	Expanding	Heavy industry hub	MEDIUM
Sarawak Deep-Sea	TBD	RM100B mega-project 2028	HIGH (future)

SARAWAK CONSOLIDATION

Acts 858 & 859 (Parliament 2024) returned port jurisdiction to Sarawak state. Federal operations extended to end-2026. RM1.8B Bintulu Port takeover approved Feb 2026. Sarawak Ports Authority consolidating all state ports by 2026. Bintulu's 52M tonnes (6.4% growth) dwarfs SBCP but is bulk-focused, not container. The RM100B deep-sea port (2028 target) is the existential threat — SBCP must complete expansion first.

Kalimantan & Regional Competitors

Port	Country	Development	Threat
Samarinda	Indonesia (E.Kali)	Logistics railway expansion	MEDIUM
Balikpapan	Indonesia (E.Kali)	IKN new capital proximity	MEDIUM
Makassar	Indonesia (Sulawesi)	Enhanced customs processing	LOW
Zamboanga	Philippines	BIMP-EAGA gateway	LOW
Tawau	Malaysia (Sabah)	RM70M upgrade; Indonesia border	INTERNAL

COMPETITIVE POSITION

Kalimantan ports are inland-oriented, not competing for transshipment. Indonesia's new capital (IKN) near Balikpapan could redirect some BIMP-EAGA traffic. Philippines ports lack depth/equipment. SBCP's DP World partnership + 14m post-expansion draft + RM280/TEU THC = strongest regional value proposition. Key defence: complete expansion before Sarawak deep-sea port goes online (2028).

25 BIMP-EAGA REGIONAL ECONOMICS NEW

EAGA Trade 2024

$166B

21.7% of members' total

Merchandise trade

Intra-EAGA

$36B

21.71% internal

Regional integration

FDI Inflows

$20.7B

+6.1% YoY

64.9% regional share

Tourism 2024

6.01M

+50.6% YoY

Visitor arrivals

BIMP-EAGA Infrastructure Pipeline

Category	Projects	Value	Status
Total Pipeline	217 projects	$67B	ACTIVE
Transport	Pan-Borneo, Ports, Air	~$25B	IN PROGRESS
Energy	Cross-border grids	~$12B	DEVELOPING
ICT	Digital connectivity	~$5B	PLANNING
Agriculture	Value chain dev	~$8B	ACTIVE

Sabah's EAGA Gateway Role

Strategic Position: Sabah is the only EAGA member with direct sea access to all 4 member nations (Brunei, Indonesia, Malaysia, Philippines).

Key Corridors:
• KK-Zamboanga: Ro-Pax route (Kudat CIQS upgrade planned)
• Tawau-Nunukan-Tarakan: Active barter trade + ferry services
• Sandakan-Sulu Sea: Palm oil + timber exports to PH/ID
• SBCP-Brunei: Container feeder connectivity

Constraint: Intra-EAGA trade at 21.7% is growing but still dominated by bilateral Pen.MY-Sabah domestic flows (46.8% of all Sabah trade). True EAGA integration requires customs harmonization, single-window processing, and shipping route development.

26 LEADERSHIP & CORPORATE GOVERNANCE DEEP PROFILES

Government Ownership 50.73%

Shareholder	Stake	Type
Warisan Harta Sabah SB (Qhazanah Sabah)	45.40%	STATE
Chief Minister Incorporated	1.68%	STATE
Yayasan Sabah	3.65%	STATE
Free Float	49.27%	PUBLIC

GOVERNANCE NOTE

Effective state control via 50.73% bloc. Warisan Harta (now Qhazanah Sabah) is Sabah's strategic investment arm — notably, the new Group MD (Datuk Ahmad Rizal) is simultaneously CEO of Qhazanah Sabah. This dual-hatting ensures state alignment but raises potential conflict-of-interest questions.

Board Composition Analysis

Independent NEDs

Non-Independent NEDs

Executive Director

New in Jan 2026

Independence ratio: 67% (6 of 9) — exceeds Bursa Malaysia's 50% threshold. Key risk: 4 of 9 directors appointed Jan 2026 in a single board refresh — largest turnover in company history. Chairman is a former federal minister (UMNO); new CEO dual-hats as Qhazanah Sabah CEO.
CEO Compensation: Group MD ~RM1.02M/yr — modest for Bursa-listed GLC. New CFO (ex-KPMG/Morgan Stanley) signals professionalisation.

Chairman NEW JAN 2026

Datuk Seri Panglima Haji Abdul Rahman Bin Dahlan

Independent & Non-Executive Chairman | Age: 60 (b. 24 Nov 1965)

Education: B.Econ & Management, Sonoma State University, California
Political Career:
• MP for Kota Belud, Sabah (2008-2018, 2 terms)
• Minister of Urban Wellbeing, Housing & Local Government (2013-2016)
• Minister in PM's Dept, Economic Planning Unit (2016-2018) — first Sabahan to hold EPU
• Lost Sepanggar seat in GE14 (2018) after switching constituency
Key Achievement: Secured Saudi Aramco's US$7B RAPID petrochemical investment
Current Roles: Chairman, Sabah Oil & Gas Dev Corp (SOGDC); Chairman, UMS; Chairman, Seeds Capital Group
Political: UMNO Division Chief (Tuaran); Barisan Nasional

INTELLIGENCE ASSESSMENT

Political heavyweight with federal ministerial experience and infrastructure deal-making track record. Appointment signals Sabah state government's intention to leverage federal political connections for port development and concession negotiations. UMNO alignment may complicate under GRS-led state government.

Group Managing Director / CEO NEW JAN 2026

Datuk Ahmad Rizal Bin Dahli

Non-Independent Executive Director | Age: ~55

Education: LL.B (Hons), Holborn College London; Certified Credit Professional (IBBM)
Career:
• Malayan Banking (Maybank), 20+ years (1996-2017): rose from Operation Executive to Assoc. Director, Regional Corporate Banking (Sabah & Labuan)
• Warisan Harta Sabah SB: Head of Projects (Oct 2017), then CEO (Oct 2019)
• CEO, Qhazanah Sabah Berhad (renamed): Oct 2019-present (concurrent)
• Suria Capital NED: Mar 2020; redesignated to Group MD: 1 Jan 2026
Other Boards: Chairman, Celcom Timur (Sabah); Director, Borneo Housing Mortgage Finance

INTELLIGENCE ASSESSMENT

Dual-hatting risk: Simultaneously CEO of Qhazanah Sabah (45.4% shareholder) and Group MD of Suria Capital. Banking background (20yr Maybank) provides financial acumen but no direct port operations experience. Replacing a 24-year veteran — institutional knowledge gap is the primary transition risk.

Full Board of Directors — Detailed Profiles

Name	Role	Since	Qualifications & Career
Kee Mustafa	Independent NED	Jul 2014	BA Anthropology/Sociology, UM. 33yr Sabah civil service (1974-2007). Sabah State Secretary (2000-2007, retired). PETRONAS Board (Jan 2022). Former Board: MAS, UC Sabah Foundation. Royal Commission on Immigrants in Sabah.
Michael Tong Yin Shiew, J.P.	Independent NED	Oct 2019	CA (MIA), FCCA (UK), FCPA, FCTIM. 40+ years chartered accountant in KK. Senior Partner, Crowe Malaysia PLT (KK). Rebranded as MICHAEL YS TONG & CO (Jul 2025). Forensic audit, insolvency, corporate finance. Justice of the Peace (Sabah).
Datuk Alexandra Chin @ Fui Lin, J.P.	Independent NED	Feb 2022	FCCA, CAANZ, MIA, CTIM. Founded Messrs Alexandra FL Chin, CAs (2005). Past Global President of ACCA (2015-16) — first Malaysian. ACCA Global Council 12 consecutive years. J.P. (Sabah). Board: Audience Analytics Ltd (Singapore). 36+ yr accounting career.
Ir. Jerome Jimbangan @ Terence	Independent NED	Feb 2022	B.Eng (BSCE), New England College, USA. 18yr Public Works Dept (1988-2006): District Engineer in Ranau, Penampang, Tuaran, Kuala Penyu. Founded Eramaju Synergy SB (2007) & Jurutera Perunding JJ (2010). Board: LPPB Sabah (housing/urban dev).
Emmie M Idang	Independent NED	Apr 2023	LL.B (Hons), UM (2013). Admitted Sabah Bar 2014, Native Court of Appeal 2017. Managing Partner, Messrs MIRAM & Co. Practice: land disputes, construction, NCR, estate. Treasurer, PUSAKA. Legal Advisor, Borneo Conservation Trust Sabah. Audit & NRC committees.
Puan Chee Shok Ting	Non-Independent NED	Mar 2025	B.Econ (Hons), UKM (1992). 30+ yr Sabah State Government: Asst Director → Principal Asst Director (Budget & Monitoring, 2009) → Under Secretary, MOF Finance & Economics Div (2019) → Deputy Permanent Secretary (Development) (Jul 2022-present). State revenue & budget management.

Departed — Former Group MD 24yr TENURE

Datuk Ng Kiat Min

Retired 31 Dec 2025 | Age at retirement: 68

Education: Accounting & Finance, Lancaster University (UK); FCCA (UK); CA (MIA); Chartered Fellow, CILT
Suria Capital (2001-2025):
• Sr Manager, Corporate Dev (2001) — led port privatisation bid
• GM Corporate Services/Finance, SPSB (2004)
• Group CEO (Jul 2015) → Group MD (Apr 2016-Dec 2025)
Legacy: Transformed Suria from single-asset port into diversified group. Led SBCP privatisation (Sep 2004), DPW 51% JV negotiation, Jesselton Docklands conception, and RM900M SBCP expansion.

TRANSITION RISK

Ng's departure represents the single largest institutional knowledge loss in company history. He personally led every major strategic decision for 24 years. The new CEO (banking background, no port ops experience) must rapidly build operational credibility with DPW, state government, and port users.

Departed — Former Chairman

Datuk Faisyal Yusof Hamdain Diego

Resigned 21 Jan 2026 | Tenure: 5yr 2mo (Nov 2020-Jan 2026) | Age: 64

Education: BA (Hons) Economics, York University Canada; Diploma Accountancy, Toronto School of Business; MBA Shipping & Logistics, Middlesex University London
Career: 25+ years board/chairmanship experience. Director, KUB Malaysia Bhd. Public Interest Director, Bursa Malaysia (2004-2010): chaired Listing, Market Participation, and Compensation committees. Governor, Yayasan Bursa Malaysia. Trustee, Yayasan Bumiputra Sabah.
Departure: Official reason: "pursue other interests." No disagreements disclosed. Notably, his MBA in Shipping & Logistics was directly relevant — replacement (Abdul Rahman Dahlan) has political rather than maritime expertise.

Key Management Personnel — Deep Profiles

Name	Role	Career & Qualifications
Phoon Wai Wah	Group CFO Since Mar 2025	B.Bus (Accountancy), QUT Australia; CPA (AU & MY). 24+ years: KPMG (10yr, financial audits, Vietnam assignments) → Bank of New York (VP, Accounting Policy) → Morgan Stanley (Executive Director, Advisory Services & Accounting Policy, New York; ED Head of Global Accounting Standards & Control, Hong Kong) → Private fund roles → Joined Suria Aug 2024 as Group Financial Controller, promoted to CFO Mar 2025. International-calibre appointment.
Lai Fui Nar	GM Technical & Process Improvement, SPSB Since Sep 2004	Advanced Diploma Logistics & Transport (UK); Chartered Member CILT. Career started 1979 as Asst Work Study Officer, Sabah Ports Authority. Sr Manager SBCP (2013-2018) → Deputy GM Process Improvement (2018-2019) → GM (Apr 2019-present). AIM Philippines alumni. Past President, SWEPA (2019-2021). 47 years in Sabah port operations.
Safuan Basir, FCCA	MD, DP World Sabah (SBCP SB) Since Sep 2024	ACCA, Emile Woolf College; Nottingham Trent University. PSC Auditor, PETRONAS → EY Senior Consultant → Celcom Senior Manager → GM, Port Klang Free Zone → Sr Director Business Development, PTP → CEO, Senai International Airport → MD, Crescent Consulting (logistics advisory) → Sr Director BD, DP World Asia Pacific → MD, SBCP SB (Sep 2024). Cross-sector port expertise.

LEADERSHIP TRANSITION SUMMARY — JAN 2026

Unprecedented leadership turnover: Chairman + CEO + 2 NEDs replaced simultaneously. Departed CEO (Ng Kiat Min) had 24 years of institutional knowledge. New Chairman is a political figure (UMNO, former federal minister); new CEO is a banker (Maybank 20yr) concurrently running the 45.4% shareholder entity. Mitigating factors: CFO Phoon Wai Wah (Morgan Stanley/KPMG) brings world-class financial oversight; GM Lai Fui Nar (47yr port veteran) provides operational continuity; DPW's Safuan Basir (FCCA, ex-PTP/airport CEO) ensures JV execution independence. The critical 12-month test: can the new board navigate the concession extension negotiation, SBCP expansion oversight, and Jesselton Docklands launch simultaneously?

SPSB Management Team — Full Operational Structure 23 NAMED

Managing Director

Datuk Ahmad Rizal Dahli

Also CEO, Qhazanah Sabah

GM Technical & Process Improvement

Lai Fui Nar

47yr tenure (since 1979). CILT

Deputy GM Technical

Ts. Jason Jouti

Technology specialist

Name	Title	Portfolio	Notes
Dahlia Ismail	Acting Deputy GM	Corporate Services	ACTING
Clement Lee Tee Yung	Head, Group IT	Technology & Systems	Digital transformation lead
Mary Sii Lee Mieng	Senior Manager	Finance	Group financial reporting
Hj. Rosarnizam Othman	Senior Manager	Support Services	Logistics & admin
Capt. Nadel Veldes Joseph	Senior Manager	KK & Kudat Ports	Master mariner qualification
Elsie Philip	Senior Manager	Tawau Port	Sabah's 2nd largest port
Hayati Md Enarji	Manager	Sandakan Port	Palm oil export hub
Mazlan bin Malik	Manager	Lahad Datu & Kunak Ports	Dual-port responsibility
Alex Kong Yin Fatt	Manager	Sapangar Bay Oil Terminal	Petroleum & LNG ops
Karen Rachel Sugai	Manager	Group People (HR)	~1,000 employee base
Nick Anthony	Manager	Port Auxiliary Police	ISPS/security compliance
Emily Ho Lee Sze	Manager	Quality Assurance	ISO standards
Ts. Bruno Robin Anggol	Manager	Engineering (Projects)	SBCP expansion oversight
Mohamad Izzuan Abdul Rani	Acting Manager	Equipment Maintenance	ACTING
Ir. Edwin Sabinus	Acting Manager	Engineering (Facility)	ACTING
Julie Yong	Asst Manager	HSE	Health, Safety & Environment
Kashani Samat	Asst Manager	Sustainability Unit	ESG reporting lead
Syahrul Safwan Najwan Faisyal	Asst Manager	Customer Relations & Govt Liaison	Stakeholder management
Clare J. Anjemeh	Asst Manager	Administration	Corporate admin

ORG STRUCTURE INTELLIGENCE

3 acting positions (Deputy GM Corporate, Equipment Maintenance, Facility Engineering) suggest talent gaps or transition. Port assignments: 5 named port managers covering 8 ports (Mazlan covers both Lahad Datu + Kunak). Gender balance: Notable female representation at management level (Lai Fui Nar, Dahlia Ismail, Mary Sii, Elsie Philip, Hayati, Karen, Emily, Julie, Kashani, Clare).

SPSB Subsidiary Board SEPARATE FROM PARENT

Name	Role	Background
Datuk Seri Panglima Abdul Rahman Dahlan	Chairman	Also Chairman of parent (Suria Capital)
Datuk Ahmad Rizal Dahli	Managing Director	Also Group MD of parent; CEO Qhazanah Sabah
Datuk Pg. Hassanel Pg. Hj. Mohd. Tahir	Director	Sabah political/business figure
Datuk K.Y. Mustafa	Director	Former Sabah State Secretary; PETRONAS Board
Hj. Zainal Abidin Hassan	Director	Government-linked appointee
Datuk Dr Johnson Tee	Director	Medical/business background
En. Basal Datuk Bullah	Director	Sabah business community
Datuk Ridhwan Roger Linus	Director	Sabah corporate director
Musleha Khairunisa Muluk	Director	Governance/compliance

Note: SPSB has its own subsidiary board (9 directors) separate from Suria Capital Holdings' listed board (also 9 directors). Only 2 overlap (Chairman + MD). This dual-board structure is typical of Malaysian GLCs.

Group Subsidiary Map

SURIA CAPITAL HOLDINGS BERHAD (198301001662)

Sabah Ports Sdn Bhd (SPSB) — 100% CORE

DPW Sabah SB (SBCP) — 49% SPSB / 51% DPW JV

SP Marine Services SB — 100% of SPSB MARINE

S.P. Satria SB — 100% of SPSB SUPPLY

SCHB Engineering Services SB — 100% ENGINEERING

JWC Travel & Leisure SB — 100% TOURISM

Jesselton Docklands 1 SB — 50:50 w/ BEDI Dev JV

Jesselton Docklands 2 SB — 50:50 w/ BEDI Dev JV

Jesselton Quay JV — w/ SBC Corporation JV

SP Marine: Ahmad Khazirul Ahmad Sainin (Operations Mgr). Tugboat/marine services.
S.P. Satria: Port equipment spare parts & marine supplies.
SCHB Engineering: Construction, railway engineering, renewables.
JWC Travel: Jesselton Point Ferry Terminal, CIQS for cruise passengers.

JV Partners — Key Entities

BEDI Development SB (75% owned by EXSIM Group)

Jesselton Docklands JV partner (RM4.2B GDV)
EXSIM founded 2008 by Lim Brothers:
• Lim Aik Hoe — Founder & MD (licensed auditor)
• Lim Aik Kiat — Deputy MD (QS, Nottingham Trent Univ UK)
• Lim Aik Fu — Deputy MD (chartered accountant & company secretary)
Track record: Sabah-focused developer; Bayu Damai (KK), Sejati Sentral (Sandakan)

SBC Corporation Bhd (5207.KL)

Jesselton Quay JV partner (RM1.8B GDV)
• Datuk Sia Teong Heng — MD & CEO (since 1991, 35yr tenure; MSc Management Science, Imperial College London)
• Datuk Roselan Johar Mohamed — Independent NE Chairman
JQ Phase 1 (JQC): 99.5% complete, COO Jan 2022. Suria entitlement: 18% of GDV.

DP World (UAE — Global)

SBCP 51% JV partner (88.3M TEU global network)
• Safuan Basir, FCCA — MD, DPW Sabah (ex-PTP, Senai Airport CEO)
• HQ: Jebel Ali, Dubai. Chairman: Sultan Ahmed bin Sulayem
Handover: 9 Sep 2024. Target: 500K→1.25M TEU capacity.

LPPS — Lembaga Pelabuhan-Pelabuhan Sabah (Regulatory Authority) GOVERNMENT

Role: Government regulatory body that oversees ALL Sabah ports. Separate from SPSB (the operating company). Grants concessions, sets tariffs (1977 framework), enforces maritime safety.

Chairman: Datuk Dr. Zaki Gusmiah
Known Management:
• Siti Noraishah Azizan — GM Corporate Services
• Puan Mimi Shazmira Mohd Said — Legal Manager

Critical Interface: LPPS controls the concession agreement (expires Aug 2034). Extension negotiations flow through this body. The LPPS chairman is a political appointee — state government changes can shift concession stance.

Notable Figure: Datuk Donald Peter Mojuntin
Former MP Penampang (2004-08), MLA Moyog (2008-13), Senator (2018-21). UPKO Deputy President (Pakatan Harapan coalition). Son of Datuk Peter Mojuntin (died 1976 Sabah Air crash). Lawyer by training. Previously associated with LPPS governance.

Suria Capital Property Lead:
• Datin Soh Wan Ru — Head, Group Corporate Planning & Development. Leads Jesselton Quay and Jesselton Docklands projects for Suria Capital.

27 WORKFORCE & LABOUR MARKET INTELLIGENCE NEW

SPSB Workforce

792

Across 8 ports

Suria Group: ~1,090 total

Sabah Unemployment

7.6%

vs 3.2% national

Structural underemployment

Sabah Median Wage

RM1,864

-33% vs national RM2,793

Min wage: RM1,700

Global Officer Shortage

89,510

By 2026 (BIMCO)

Maritime skills crisis

Labour Market Dynamics STRUCTURAL

Factor	Data	Impact
Foreign Workers	Indonesians 85%, Filipinos 15%	DEPENDENCY
Unionisation	No union at SPSB; 5.8% national	ZERO
Strike History	Zero strikes; zero industrial actions	STABLE
Pan-Borneo Competition	RM27B highway project	LABOUR DRAIN
Wage Floor	RM1,700 minimum (2025)	MARGIN PRESSURE
Maritime Training	UMS, ALAM, Politeknik	PIPELINE
Automation Risk	DPW e-RTG + Autostore TOS	TRANSITION

LABOUR MARKET RISK

Sabah's 7.6% unemployment masks a skills mismatch — high general unemployment but acute shortage of qualified port operators, crane drivers, and maritime officers. Pan-Borneo Highway (RM27B) competes for same blue-collar labour pool. DPW automation (e-RTGs, Autostore TOS) will reduce headcount needs but require upskilling investment.

Workforce Cost & Productivity

Cost Advantage: Sabah median wage RM1,864/mo is 33% below national average. Port labour costs significantly below Port Klang/PTP benchmarks, providing structural OPEX advantage for SBCP operations.

Productivity Gap: Crane moves/hr at SBCP estimated at 18-22 vs global best-in-class 35-40 (Singapore). DPW's operational takeover targets significant productivity uplift through training & automation.

Skills Pipeline: UMS (Universiti Malaysia Sabah) maritime programs, ALAM (Malaysian Maritime Academy), and 3 polytechnics provide a growing talent pipeline. However, brain drain to Peninsular Malaysia remains a persistent issue — estimated 15-20% of Sabah graduates relocate within 2 years.

DPW HR Integration: Post-handover (Sep 2024), DPW retained existing SPSB workforce with enhanced training programs. DPW's global HR framework introduces structured career paths, performance management, and international secondment opportunities — expected to improve retention.

28 ESG & SUSTAINABILITY NEW

Green Port Awards & Policy

Achievement	Year	Status
APEC Green Port Award	Multiple	AWARDED
ACES Green Initiative Award	2020	AWARDED
ASRRAT Silver (1st Report)	2019	PIONEER
Green Port Policy	Active	ENFORCED
MSPO Palm Oil Certification	2023	92%
MY Carbon Neutral 2050	Target	COMMITTED

Green Infrastructure Deployed

• e-RTG Cranes: Electrified Rubber-Tyred Gantry cranes at SBCP — reduces fossil fuel consumption vs diesel RTGs
• LED Conversion: 1000W HPS → 300W LED highmasts (-70% energy)
• Solar Power: Installations at Tawau Port
• Paperless TOS: Autostore system minimises paper consumption
• Seagrass Transplanting: Marine biodiversity preservation
• Mangrove Restoration: Rehabilitation across port sites
• Environmental Monitoring: Sea-water quality, noise, air quality programmes

ESG Risk Factors

Issue	Severity	Status
EUDR Compliance	MED	Dec 2025 deadline; 2.66M t at risk
IMO 2050	MED	Shipping decarbonisation; shore power needed
Carbon Targets	GAP	No specific tonnage targets disclosed
Climate Physical Risk	MED	1m SLR = 4.46% land area at risk; KK flood disaster Jan 2026
Monsoon Exposure	MED	NE monsoon Nov-Mar disrupts east coast ops; below typhoon belt
Coral Reef Impact	MED	Port dredging vs coral systems; Tun Mustapha marine park adjacent
Biodiversity	LOW	Active seagrass/mangrove programmes; EIA compliance

ESG INTELLIGENCE GAP

Suria Capital has Green Port Policy and real initiatives (e-RTGs, LED, solar) but no quantified carbon reduction targets or Scope 1/2/3 emissions reporting. As ESG screening tightens (EU taxonomy, Bursa CSR framework), this gap could limit institutional investor appetite.

29 DIGITAL TRANSFORMATION & PORT TECHNOLOGY NEW

Current Technology Stack

System	Vendor/Type	Status	Impact
CSA TOS (Autostore)	ITP partner; go-live Jan 2017	LIVE	Real-time container mgmt, gate automation
e-RTG Automation	Electrified gantry cranes	DEPLOYED	Reduced fuel + downtime
Digital Tracking	End-to-end shipment visibility	LIVE	Customer transparency
IoT Cargo Handling	Automated asset monitoring	DEPLOYING	Predictive maintenance
Port Community System	Not confirmed	GAP	Multi-stakeholder integration
Digital Twin	Not announced	GAP	Simulation & planning

DPW DIGITAL UPLIFT

DP World's global technology stack (30+ Autostore installations worldwide) is being deployed at SBCP. This is a key value driver from the 51% JV — enabling the 500K→1.25M TEU capacity expansion through workflow optimisation, not just physical infrastructure.

Technology Maturity vs Peers

Capability	SBCP	Port Klang	PTP	Singapore
TOS	YES	YES	YES	YES
Automated Cranes	PARTIAL	YES	YES	FULL
Port Community Sys	NO	YES	YES	YES
Digital Twin	NO	NO	PILOT	YES
5G Connectivity	NO	PILOT	PILOT	YES
Blockchain/eBL	NO	NO	PILOT	YES

TECHNOLOGY GAP ASSESSMENT

SBCP is 2-3 generations behind Singapore/PTP in digital maturity. Critical gaps: Port Community System (multi-party data exchange), 5G backbone, blockchain-based eBL. DPW partnership narrows the TOS gap but structural digital infrastructure (PCS, 5G) requires government investment.

30 DIVIDEND POLICY & SHAREHOLDER RETURNS NEW

DPS (Latest)

3.0 sen

10yr CAGR: -6.4%

Declining trend

Dividend Yield

1.63%

vs KLCI avg 4.43%

60% below market

Payout Ratio

~31%

Target: up to 35%

Conservative policy

5yr DPS CAGR

-9.7%

Accelerating decline

Was 5.25 sen in 2013

Dividend History & Trend

Year	DPS (sen)	Yield	Payout	Trend
FY2013	5.25	~3.0%	~40%	PEAK
FY2020	3.50	~2.3%	~35%	DECLINING
FY2023	3.00	1.81%	35.25%	DECLINING
FY2024	3.00	1.63%	30.64%	FLAT
FY2025 YTD	3.00	~1.5%	~31%	STABLE

Shareholder Return Analysis

Yield Gap: At 1.63%, Suria Capital yields 60% below KLCI average (4.43%). For income-focused investors, this is a significant deterrent. The 31% payout ratio leaves room for increase, but management prioritises capex (SBCP expansion) over distributions.

Capital Returns: Share price has traded in a narrow RM1.40-1.90 range for 3+ years, offering limited capital appreciation. Total shareholder return (TSR) has underperformed KLCI over 5-year horizon.

Bull Case for Dividends: Post-SBCP expansion completion (2028 base), if throughput reaches 750K+ TEU with 25% EBITDA margins, FCFE could support 5-6 sen DPS (3.5%+ yield) without compromising growth capex. This would close the yield gap significantly.

Catalyst: Concession extension + SBCP completion = step-change in distributable cash flow by FY2029-30.

31 JESSELTON DOCKLANDS & PROPERTY DIVERSIFICATION NEW

Total GDV

RM4.2B

35-acre waterfront

Announced Oct 2025

Phase 1 Area

2.53 ha

2025-2031

Hotels, offices, retail

Phase 2 Area

11.54 ha

2026-2041

Cruise terminal + luxury

JV Partner

BEDI Dev

JDA signed Sep 2024

Via SPSB subsidiary

Development Phases

Phase	Components	Timeline	Status
Phase 1 (Land 1)	Hotels, branded suites, offices, retail	2025-2031 (6yr)	ON TRACK
• Bedrock	First component of Phase 1	2025 completion	ACTIVE
Phase 2 (Land 2)	Cruise terminal, luxury residences, wellness, intl school, cultural precinct	2026-2041 (15yr)	PLANNING
• Cruise Terminal	International cruise hub (East MY)	Post-2028	DESIGN

Strategic Significance

Diversification Play: Jesselton Docklands transforms Suria Capital from a pure port operator into a port + property + tourism conglomerate. At RM4.2B GDV, this is 3x Suria's current market cap (RM1.4B), representing massive embedded value if executed well.

Revenue Impact: Property development could contribute RM200-250M/yr at stabilisation (2035+), diversifying away from port operations and commodity-linked revenues.

Execution Risk: 15-year development timeline is extremely long. KK property market median RM350 psf vs KL RM700-1,000 psf — absorption rate for luxury inventory is a key concern. JQ CityPads (KK benchmark): RM1,088-1,127 psf for premium waterfront shows ceiling exists but is niche.

Cruise Hub Vision: National Cruise Blueprint designates KK as East Malaysia's international cruise hub. Phase 2's dedicated cruise terminal aligns with 64% YoY growth in cruise calls (2025 vs 2024).

JV Partner Track Record: EXSIM Group (via BEDI) NEW

Metric	Detail
Total Developments	38 projects completed/ongoing
Cumulative GDV	RM14.53 Billion
Key Projects	The Rainz (Bukit Jalil), SkyVue (KLCC), Vogue Suites One
Sabah Presence	Limited prior Sabah experience — primarily Pen. MY developer
Risk Assessment	MODERATE — proven nationally but Sabah market unfamiliar

KK Property Market Context & Ferry Terminal NEW

KK Market: Median RM350 psf (2024-25). Premium waterfront: JQ CityPads RM1,088-1,127 psf. Jesselton Docklands must price competitively vs existing KK luxury stock while Pen. MY developers (Sime Darby, EXSIM) bring institutional credibility.

Jesselton Point Ferry Terminal: Closed 1 Mar 2026 for Jesselton Docklands construction. Services relocated to temporary terminals (Sutera Harbour for islands, KKIP for Labuan). Disruption to 1.2M+ annual ferry passengers creates political sensitivity but clears construction site.

Market Headwind: Sabah property overhang at ~RM2.1B (Q3 2025, NAPIC data). KK office vacancy ~25%. Hotel occupancy recovering to ~65% but pre-COVID was 72%+. Luxury residential absorption rate of 30-40 units/quarter is realistic ceiling for Jesselton pricing tier.

32 CRUISE TOURISM & PASSENGER PORT NEW

Cruise Calls 2025

+64% YoY

19 KK + 4 Sandakan

Cruise Pax 2025

24,634

+47% YoY

vs 16,727 in 2024

Sabah Tourism Rev

RM8.74B

+20.5% YoY

3.79M visitors (2025)

Cruise Hub Status

DESIGNATED

East MY hub

National Cruise Blueprint

Cruise Growth Trajectory

Year	Ship Calls	Passengers	YoY Growth
Pre-2020	12-14	~12,000	BASELINE
2020-2022	0-2	Minimal	COVID
2024	14	16,727	RECOVERY
2025	23	24,634	+64%
2026E	30-35	~35,000	PROJECTED
2030E (w/ terminal)	60-80	100,000+	TARGET

Cruise Revenue Opportunity

Current Model: KK Port operates as multi-use cargo/cruise facility — no dedicated cruise terminal. Berth limitations constrain vessel size and simultaneous calls.

Revenue Potential: At 100K pax/yr with average cruise passenger spend of RM500-800/visit, cruise tourism could inject RM50-80M/yr directly into Sabah's tourism economy. Port fees per cruise call estimated at RM50-100K.

Growth Drivers: Global cruise industry at record 35.7M passengers (2024). Asia-Pacific fastest growing region (+18% YoY). Sabah's natural attractions (Kinabalu, Sipadan, orangutans) are premium cruise itinerary content.

Constraint: Dedicated cruise terminal not operational until Phase 2 of Jesselton Docklands (post-2028). Until then, growth limited by existing berth capacity and cargo-cruise scheduling conflicts.

Cruise Lines Calling at KK & Regional Comparison NEW

Cruise Line	Vessels
Norwegian Cruise Line	Sky, Jade
Holland America	Westerdam
Oceania Cruises	Riviera, Insignia
Seabourn	Encore
AZAMARA	Onward
Royal Caribbean	Growing presence
Princess Cruises	Growing presence

Port	Calls/yr	Berths
Singapore MBCCS	421	2 (220K-ton)
Penang SPCT	150	4 vessels
Kota Kinabalu	23	Shared cargo

KK currently 94% behind Singapore and 85% behind Penang. Dedicated terminal (Jesselton Docklands Phase 2, post-2028) is the prerequisite for catching up. Terminal locations: KK Cruise Terminal (Jln Tun Fuad Stephens) + International Cruise Terminal (Jln Tun Razak).

33 SABAH STATE ECONOMY & BUDGET DEPENDENCY NEW

State Budget 2025

RM6.42B

Record highest

Surplus RM24M

State Trade 2024

RM107.8B

3rd yr above RM100B

Exports RM61.3B

Blue Economy

RM3.25B

Forecast annual yields

Marine fisheries + aqua

Tourism Revenue

RM8.74B

+20.5% YoY

3.79M visitors

GDP Composition

52.4%

Services sector

Mining 22%

Budget Allocation 2025

Category	RM Billion	Share	YoY Change
Total Supply	6.421	100%	RECORD
Recurring Expenditure	2.270	35%	+RM67M
Special Expenditure	3.247	51%	+RM557M
Revenue Forecast	6.445	—	SURPLUS

FISCAL HEALTH

Sabah achieved a balanced budget with RM24M surplus in 2025. Special expenditure (+RM557M YoY) signals aggressive infrastructure investment. Key risk: state revenue is heavily petroleum-dependent — a sustained oil price decline below $50/bbl would force spending cuts.

Maritime-Economy Nexus

Trade Dependency: RM107.8B in annual trade flows through Sabah's 8 ports. With exports at RM61.3B (57%), the port system is the critical chokepoint for Sabah's entire commodity export economy (petroleum, palm oil, LNG, timber).

Infrastructure Pipeline: RM29.87B SOGIP + RM27B Pan-Borneo + RM16B Neptune + RM4.2B Jesselton = RM77B+ in active/planned infrastructure, all requiring port logistics support.

Port Revenue Gap: Specific port fee revenue as % of state budget is not publicly disclosed. Tariff framework dates to 1977 — likely significantly undercharging relative to port's economic contribution. Tariff modernisation could unlock significant state revenue.

MA63 Wildcard: If royalty increases from 5%→20% (under negotiation), Sabah gains RM3-5B/yr additional revenue. A portion could be directed to port infrastructure — transformative for SBCP expansion timeline and capacity.

Port	Berths	Max DWT	Draft (m)	Berth Length	Capacity	Utilisation
SBCP (Container)	2 container	45,000	12→14m	500m→833m	500K TEU→1.25M	100%+
SBOT (Oil Terminal)	Main + Inner	30K→60K	12m	Twin jetty	1.2M tonnes/yr	~85%
Kota Kinabalu	12 gen cargo	16,000	9m	Multi-berth	Gen cargo ops	Moderate
Sandakan	5 cargo + 1 oil	20K/30K oil	10m	Multi-berth	60-70K TEU/yr	High
Tawau (Senari)	6 gen + 1 oil	10,000	11m	635m multi-purpose	7M t + 250K TEU	Moderate
Lahad Datu (Main)	2 main	40,000	7.5m	180m + 150m	~1M tonnes/yr	Moderate
Lahad Datu (POIC)	1 deep-sea	65,000 Panamax	15m	308m	50K→250K TEU	Low
Kunak	Palm oil jetty	Small	Shallow	—	1.4M t palm oil	Seasonal
Kudat	Gen cargo	Small	Shallow	—	Gen cargo	Low

Facility	Area/Capacity
Covered Storage	20,000 sq.m
Container Freight Station	8,000 sq.m
Open Storage	45,000 sq.m
Container Yard	160,000 sq.m
Berth Length	635m (rail-fitted, multi-purpose)
Max Draft	11m (expandable to 9.5m LOA via dredging)
Max Vessel Length	200m

Phase	Completion	Scope
Current	Operational	500m berth, 12m draft, 4 STS cranes
Phase 1A	Oct 2026	833m berth, 14m draft, 6 twin-lift cranes
Phase 1B	Sep 2028	100m berth width, 40-acre CY expansion
Full Build	2028-30	1.25M TEU capacity, Panamax-ready

Equipment	Qty	Make/Type	Spec
STS Cranes	4	Terex (Xiamen)	41t twin-lift, 45m outreach, 15-row
RTGs	9	Terex	e-RTG programme underway
Mobile Harbour Crane	1	Terex Gottwald Model 2	Full MHC capability
Reach Stackers	7	Terex	2 units deployed SDK/TWU 2016
Empty Handlers	9	—	—
Terminal Tractors	37	—	Prime movers
Forklifts	5	—	—

Carrier	Rank	Ports Served	Routes
PIL	12th global	KK, Sandakan, Tawau	SE Asia intra-regional, 500+ locations 90+ countries
Evergreen Marine	7th global	KK, SBCP	150+ global routes, 1.5M TEU fleet
SITC	Regional leader	KK, Sandakan, Tawau	Intra-Asia; Dynamic Linkage as KK agent
Mariana Express (MELL)	PIL subsidiary	Regional	SE Asia feeder network
Malaysia Shipping Corp	PIL associate	Cabotage routes	Peninsula↔Sabah domestic

Partner	Share	Role
WCT Holdings (7048.KL)	60%	Lead: G7 CIDB, 400+ projects, RM40B track
CCCC / CHEC	40%	Dredging & reclamation specialist

Facility	Amount	Lender	Purpose
Tawarruq Facility	RM80M	Bank Pembangunan MY (BPMB)	SBOT oil jetty extension
Current Liabilities	RM92M	Various	Working capital, trade payables
Total Borrowings	RM170.1M	Mixed	Sep 2024 quarterly
Credit Rating	No public rating (Moody's/S&P/Fitch) — typical for mid-cap GLCs

Project	Cost	Funding	Status
SBCP Expansion	RM899.8M	Federal Govt	15.4% complete
SBOT Twin Jetty	RM20M+	Self-funded	Completed Apr 2024
Jesselton Quay Phase 2	RM174M (Suria share)	JV w/ SBC Corp	Site works Q4 2024
JQ Q Suites Tower	Part of JQ P2	JV	26-storey, 420 units, completion 2028
Jesselton Docklands Land 1	Part of RM4.2B GDV	50:50 BEDI JV	2.534 ha, commence 2025
Jesselton Docklands Land 2	Part of RM4.2B GDV	50:50 BEDI JV	11.69 ha, commence 2028

Segment	Contribution	Trend	Key Driver
Port Operations (SPSB)	88.7% of revenue	Declining post-JV handover	DP World SBCP transition = revenue shift to JV equity
Property Development	Growing	Q3'25: RM81.1M property revenue	Jesselton Docklands recognition
Investment Holding	Minor	Stable	Group-level corporate
Engineering & Ferry Terminal	Minor	Stable	SCHB Engineering Services
Logistics & Bunkering	Minor	Stable	SP Marine bunker services

House	Rating	Action	Detail
MIDF Research	Downgrade	FY25F -35%, FY26F -36%	DP World JV earnings uncertainty
AmInvest Research	Coverage	Jesselton focus	Property segment catalyst
Consensus (2 analysts)	Strong Sell	TP RM1.03-1.07	Avg TP RM1.04 (-37% downside)

Metric	Suria (5765)	Westports (5246)	Bintulu Port (5032)
Revenue	RM271M	RM2.34B	RM770M
Net Profit	RM33.9M	RM898M	RM125M
Net Margin	12.5%	38.4%	15.9%
P/E Ratio	6.94x	22.8x	~15x
EBITDA Margin	37.5%	~55%	~40%
Div Yield	1.63%	3.61%	2.88%
Container TEU	502K	11M	N/A (LNG)

Shareholder	Stake	Type
Warisan Harta Sabah SB (Qhazanah)	45.40%	State investment arm
Yayasan Sabah Group	3.67%	State foundation
Chief Minister Inc. Sabah	1.66%	CM's office
Total State Control	50.73%	Effective majority
Institutional Investors	~18%	Funds, insurance
Individual Investors	~25-32%	Retail

Element	Detail
Legal Basis	Sabah Ports (Privatisation) Enactment 1998
Tariff Law	Sabah Ports Authority (Scale of Dues & Charges) Regulations 1977
Original Term	1 Sep 2004 → 31 Aug 2034 (30 years)
Extension	→ 31 Aug 2064 (+30 years) — CONDITIONAL
Condition	"Subject to terms to be mutually agreed with state govt"
Tariff Revision	Applied mid-2019, Cabinet approved in principle 2020, NOT IMPLEMENTED
Revenue Sharing	Not publicly disclosed
Regulator	LPPS (Lembaga Pelabuhan-Pelabuhan Sabah) — est. 1968
Ports Covered	All 8 Sabah ports under single concession

Charge Type	Rate (2023)	Prior Rate	Change
20ft Crane Hire	RM200/hr	RM75/hr	+167%
40ft Crane Hire	RM350/hr	RM150/hr	+133%
THC per 20ft	~RM200	—	Long frozen
THC per 40ft	~RM300 (derrick)	—	Long frozen
Tariff Booklet	Available RM5.00 from SPSB (excluding shipping)

Party / Coalition	Seats	Position
GRS (Gabungan Rakyat Sabah)	29	Incumbent — forms govt
Warisan	25	Opposition
BN / UMNO	6	Coalition partner
UPKO	3	Coalition partner
STAR	2	Minor
KDM / PN / PH	1 each	Minor
Independents (ex-GRS)	5	Supporting govt
Govt Coalition Total	38 / 73	SIMPLE MAJORITY

Route	Status	Port Impact
Palawan → Kudat	RoRo dry run Feb 2025	Kudat Port activation
Bongao → Lahad Datu	Launched	Lahad Datu cross-border trade
Banggi → Buliluyan (Palawan)	Barter trade route	Small-scale maritime commerce
Zamboanga → Sandakan	Historical route	Potential revival
Davao/GenSantos → N. Sulawesi	Existing corridor	Indirect competition

Phase	Route	Length	Completion
Phase 1A	Sindumin→KK→Kudat & Ranau→Sandakan→Tawau	706 km	2026
Phase 1B	Extensions	—	2029
Phase 2	Tamparuli→Ranau	96 km	TBD
Phase 3	Tawau→Kalabakan→Keningau→Kimanis	432 km	TBD

Customer	Service	Est. TEU Share	Risk
SITC Container Lines	Intra-Asia feeder; confirmed at SBCP	~25-30%	HIGH
PIL (Pacific Intl Lines)	Regional + deepsea feeder	~20-25%	MED
Evergreen Marine	Feeder to Tanjung Pelepas hub	~15-20%	MED
Maersk	Maiden call Sandakan 2025; exploring SBCP	<5%	NEW
Top 3 concentration		~65-75%	CRITICAL

Customer	Port	Commodity	Revenue Impact
PETRONAS (PFLNG)	Sabah waters + Sipitang	LNG / O&G	ANCHOR
Shell Sabah	Multiple	Petroleum, bunkering	STABLE
ExxonMobil (Esso)	KK, Sandakan	Petroleum distribution	STABLE
Sawit Kinabalu (Yayasan)	Sandakan, Lahad Datu	CPO / Palm kernel	STATE-LINKED
IOI Corp / KLK / Wilmar	East coast ports	Palm oil complex	DIVERSIFIED
Sabah Forest Industries	Sipitang	Timber / wood products	DECLINING

Matter	Date	Detail	Impact
Director MACC Charge	Jun 2025	Board member charged; RM200K; unrelated to ops	REPUTATIONAL
DPW CEO Resignation	13 Feb 2026	Sultan Ahmed bin Sulayem (Epstein Files); new CEO: Yuvraj Narayan	PARTNER RISK
Concession Renewal	Ongoing	2004-2034 original; conditional extension to 2064	EXISTENTIAL
Tariff Review	Periodic	35-year freeze since 1977; Aug 2023 crane hire +167%	POSITIVE
EUDR Compliance	Dec 2025	EU Deforestation Regulation; 2.66M t at risk	TRADE RISK

Transaction	Counterparty	Nature	Materiality
State Concession	Sabah State (50.73%)	Port ops concession 2004-2034	CRITICAL
SEDIA	State agency	SBCP expansion oversight	HIGH
Yayasan Sabah	State foundation	Land leases, Sawit Kinabalu cargo	MODERATE
DPW JV (SPSB-DPWKK)	DP World (51%)	SBCP container operations	CRITICAL
BEDI/EXSIM	JDA partner	Jesselton Docklands	HIGH

Project	Value	Location	Timeline	Port Impact
PETRONAS PFLNG 3	USD 2B+	Sabah offshore; Samsung/JGC	2MTPA; H2 2027	HIGH
Neptune Energy	USD 4B	POIC Lahad Datu	Feasibility	TRANSFORM
Esteel Green Steel	RM31B	SOGIP Sipitang	Construction	HIGH
SAMUR Ammonia/Urea	RM4.6B	SOGIP Sipitang	Operational	HIGH
EU Fishing Port	RM360M	Sabah (CM priority)	Planning	MED
Pan Borneo Hwy	RM27B	Sabah phases 1-3	Phase 1 done	INDIRECT
Jesselton Docklands	RM4.2B GDV	KK waterfront	Ph1: 2025-31	DIVERSIFY

SEAPORT-001 — SABAH MARITIME INTELLIGENCE