Pemaju Industries Ordered To Pay RM8 Million Plus As Final Award To David Shen

Permaju Industries Berhad and its subsidiary have been ordered to pay more than RM8 million following a final arbitration award relating to unpaid professional fees and loss of income claims.

The company said it received the final award on 11 May 2026 from sole arbitrator Chong Thaw Sing in an arbitration involving architect David Shen I-Tan, who operates under the name Arkitek Konsult Sabah.

Under the award, Permaju Property Sdn Bhd is required to pay RM2.6 million to David Shen for outstanding professional fees.

Meanwhile, Permaju Industries itself was ordered to pay RM5.13 million for loss of income arising from what the tribunal described as Permaju’s “tort of inducement to breach contract”.

The tribunal dismissed the claimant’s request for pre-award interest.

In addition, the arbitrator ordered Permaju Property and Permaju Industries to bear the arbitration costs taxed at RM241,571.17, with the subsidiary responsible for two-thirds of the amount and Permaju bearing the remaining one-third.

Permaju Property was also ordered to pay party-and-party costs of RM120,000, while Permaju Industries must pay a further RM60,000 in legal costs.

The sums awarded must be settled within four weeks from the date of the award. Failing payment within the stipulated period, further interest of 5% per annum will apply until full settlement is made.

The arbitration stemmed from claims brought by David Shen relating to professional services rendered and alleged contractual breaches involving the respondents.

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