From soaring highs to a shocking downfall: The breathtaking saga of Sarawak Cable's epic tumble. Imagine a company that was once the shining beacon of Sarawak's economic boom, only to plummet into a abyss of debt and disgrace. It's a story that grips you from the start, reminding us how quickly fortunes can flip in the business world. But here's where it gets controversial—did political ties fuel its rise, or were they the hidden chain that dragged it down? Stick around, because this tale is packed with twists that most people overlook, from bizarre business bets to courtroom dramas.
Dated December 5, 2025, at 7:00 AM, this narrative unfolds the meteoric ascent and crushing collapse of Sarawak Cable Berhad, a firm that went from being Sarawak's corporate darling to a cautionary tale of financial ruin. Based in Petaling Jaya, Sarawak Cable was hailed as a symbol of the state's growth in infrastructure and economy. Yet, its glow has faded dramatically amid mounting debts, internal scandals, and legal skirmishes. To top it off, it faced the embarrassment of being booted off Bursa Malaysia's listing in July this year. Let's break this down step by step, so even newcomers to corporate stories can follow along easily.
Founded back in 1998, Sarawak Cable seemed destined for greatness right from the get-go. It hit a sweet spot after going public in 2010, transforming into Malaysia's top producer of power cables and raking in over RM1.2 billion in yearly sales. Post-listing, it entered a phase of rapid growth, expanding aggressively with smart strategic plays that expanded its horizons.
One of the game-changers was its 2014 takeover of two key competitors—Universal Cable (M) Bhd and Leader Cable Industry Bhd—for a combined RM210 million. This merger catapulted the group to the top spot as Malaysia's biggest cable maker and a powerhouse in Southeast Asia. Suddenly, it could reach global markets, shipping high-voltage cables to lucrative spots like Australia, Singapore, New Zealand, and the Middle East. Think of it as leveling up in a video game, where each acquisition unlocks new worlds.
Eager to climb even higher, Sarawak Cable shifted gears from just making cables to becoming a full-service power solutions expert. This meant branching into fabricating steel poles and towers, applying hot-dip galvanisation (a protective coating process that prevents rust, perfect for outdoor structures), and even building transmission lines and small hydro plants. Picture this as evolving from a simple toolmaker to a one-stop shop for energy projects. This pivot landed them big wins, such as a juicy RM619 million contract for a 500kV transmission line in Sarawak, plus supply deals for Tenaga Nasional Bhd (Malaysia’s main electricity provider) and work on the Petronas Pengerang Integrated Petroleum Complex in Johor. It felt like the world was their playground—everything aligned for endless success.
And this is the part most people miss: the company's stellar 'shareholder pedigree,' as they call it in business circles. Backed strongly by the Sarawak state government through its investment arm, Sarawak Energy, it gained prime access to projects from the state's utility and even Tenaga Nasional. But the real eyebrow-raiser was its biggest shareholder, Mahmud Abu Bekir Taib, son of former Sarawak Chief Minister Abdul Taib Mahmud. He owned an 18.64% stake, with Sarawak Energy holding 13.13% as of March this year. Abu Bekir chaired the board as a non-executive from 2009, later stepping down to director in late 2024.
Now, here's where it gets controversial. Many saw this connection to the Taib family—a powerful political dynasty—as a golden ticket, opening doors that others could only dream of. Was it a strategic advantage, leveraging state ties for contracts? Or was it a double-edged sword, inviting scrutiny over favoritism and potential corruption? Opinions split here: some argue it was essential for navigating Malaysia's business landscape, while critics whisper about undue influence. What do you think—did these ties build the empire or pave the way for its fall? Let's explore the controversies that followed.
The unraveling began with bold moves outside their core expertise. Diversification can be brilliant, but Sarawak Cable's choices were downright puzzling and costly. Take their 2016 splurge on a brand-new Airbus EC225 Super Puma helicopter, costing around RM100 million. The plan? Lease it out for surveying infrastructure and power lines. But fate dealt a cruel blow: just after delivery, a deadly crash of the same model in the North Sea led to a worldwide grounding of all EC225s. No flights meant no revenue, yet financing bills kept piling up. By 2020, they ditched the aviation venture, swallowing massive losses that bled the company dry.
Their foray into transmission projects also hit roadblocks. In 2014, they snagged a RM257 million gig from Petronas to construct a 275kV high-voltage line at the Rapid project in Pengerang, Johor, slated for 2016 completion. Delays, cost blowouts, and fines turned it into a nightmare, finishing in 2018 and leaving Sarawak Cable on the hook for penalties. This fiasco caused RM47.6 million in pre-tax losses for their construction arm, pushing the company into its first annual net loss (RM36.3 million) in over a decade for FY2017. From there, it was a downhill slide: escalating debts, creditor lawsuits, and whispers of poor management.
By September 2022, alarms blared from the external auditor, who refused to endorse the FY2022 financials due to insufficient evidence and doubts about the company's survival. Placed on Bursa Malaysia's 'Practice Note 17' list—think of it as a red alert for troubled firms requiring a turnaround plan—Sarawak Cable struggled to right the ship. Loans ballooned to RM393.77 million by year's end in 2023, with core units Universal Cable and Leader Cable sued by banks. In July 2023, the High Court imposed interim judicial management over unpaid legal fees, hindering recovery efforts.
A potential savior, UK-based Serendib Capital Ltd, fizzled out in May 2024 amid failed negotiations, sparking more lawsuits involving ex-chairman Abu Bekir. With debts spiraling and no viable plan, Bursa suspended trading on May 28, 2025, and delisted the company on July 15, 2025. Today, it operates as a private unlisted entity, with shareholder rights safeguarded by Malaysia's Companies Act 2016. Yet, the future looks grim, as untangling this financial web demands serious effort.
As the turmoil quiets post-delisting, attention turns to the courts to salvage what remains of this once-proud Sarawak icon. Was this fall inevitable, or could better decisions have averted disaster? Do you believe the Taib family's involvement was more of a boon than a burden, or vice versa? And in an era of corporate scandals, does this story highlight the risks of mixing politics with business? Share your views in the comments—we'd love to hear your take on whether Sarawak Cable could rise again or if it's a lesson in hubris. Subscribe to our newsletter for more insider scoops delivered straight to your inbox.
