PETALING JAYA: Cable and wire manufacturer Southern Cable Group Bhd is scaling up its high-voltage (HV) capabilities to capture rising demand driven by Malaysia’s data centre surge.
The group recently secured official product certification from the national utility provider, Tenaga Nasional Bhd (TNB), to supply high-capacity underground transmission cables.
The certification for 132kV XLPE cables with Milliken conductors of up to 1,800 sq mm positions the group to support the heavy-load power requirements of Malaysia’s national grid expansion.
The latest certification expands Southern Cable’s addressable market, building on its TNB vendor status for supplying up to 800 sq mm underground HV cables since 2015.
Reflecting robust market demand, the group’s HV cable sales grew by over 500% year-on-year, surpassing RM100 million in FY25.
Managing director Tung Eng Hai said securing the high-voltage certification builds on the group’s established track record of supporting the national grid, qualifying it as one of the select few domestic players to supply high-capacity cables for Malaysia’s power infrastructure.
“Our ongoing capacity expansions position us to meet the surge in local demand, providing the scale to enable the nation’s grid enhancements and renewable energy transition.”
To address increasing demand across the power grid, renewable energy, and data centre sectors, the group’s expansion initiatives remain on track to be completed this year and in 2027.
Enhancing its upstream capabilities, the group’s newly operational aluminium furnace has tripled rod capacity to over 60,000 tonnes annually. Additionally, a new plastic compounding facility will be commissioned later this year to reduce reliance on imports and optimise cost efficiencies.
To boost downstream production, an additional facility is on schedule to be completed by the end of 2026, expanding cable and wire capacity to 60,000km per year.
Furthermore, new production lines will be installed this year and next.
Moving forward, Southern Cable’s growth trajectory is supported by a robust RM924.9 million in total orders in hand as of March 31, 2026.
At the group’s annual general meeting today, shareholders approved a final single-tier dividend of 1.83 sen per share. In addition to the earlier paid 1.20 sen, the total dividends for FY25 amount to 3.03 sen per share, equivalent to a payout of RM32.8 million. The 25% payout ratio surpasses the group’s 15% dividend policy.
