KJTS Group Berhad and Stonepeak Confirm a Joint Venture Targeting Investments of Up to RM1.5 Billion in Cooling Assets in Malaysia

KUALA LUMPUR, 14 MARCH 2025 – KJTS Group Berhad (“KJTS” or the “Company”), a leading provider of energy-efficient cooling solutions, has announced the formation of a joint venture between its wholly-owned subsidiary, KJ Technical Services Sdn Bhd (“KJTS SB”) and Stonepeak, a leading alternative investment firm specialising in infrastructure and real assets. This partnership is on the basis of 90% equity interest held by Stonepeak, with the remaining 10% equity interest held by KJTS SB. The joint venture entity will target investments of up to RM1.5 billion in cooling infrastructure assets to support Malaysia’s growing energy demands and accelerate the transition toward more sustainable cooling solutions.

The joint venture will be structured through a newly established entity (“JV Company), which will focus on developing and investing in and/or owning district cooling assets in Malaysia. With increasing urbanisation and potential rising energy costs, the demand for efficient cooling solutions is expected to grow significantly. By leveraging innovative technology, predictive maintenance, and data-driven optimisation, the JV Company aims to enhance efficiency, reduce energy consumption, and support Malaysia’s net-zero ambitions.

We believe this investment aligns with Malaysia’s Energy Efficiency and Conservation Act (EECA) 2024, the National Energy Efficiency Action Plan (NEEAP) 2016–2025, and the Green Technology Master Plan (GTMP) 2021–2030. It also complements the ASEAN Cool Initiative, positioning Malaysia as a leader in regional cooling infrastructure advancements. We believe the JV Company provides a strong platform for expanding cooling solutions that reduce reliance on traditional energy-intensive cooling methods.

Under the terms of the agreement, KJTS SB will lead asset identification and acquisition while ensuring alignment with the energy transition strategy. In providing engineering, procurement, construction and maintenance (EPCC) services, KJTS SB will apply its engineering expertise to deliver high-efficiency cooling solutions. Additionally, as a provider of operation and maintenance (O&M) services, KJTS SB will implement performance-based guarantees to maximise efficiency, reliability, and cost savings for end-users.

Stonepeak will contribute financial capital and strategic oversight, guiding the JV Company’s investment strategy and portfolio expansion. With extensive experience in global infrastructure investments, Stonepeak brings valuable industry relationships and expertise in scaling high-impact energy transition projects. The JV Company is structured to balance financial leadership with operational expertise, ensuring a sustainable and scalable model for long-term success.

Both parties have agreed on clear governance protocols, including structured decision-making, financial reporting, and compliance with international regulatory standards. KJTS SB will also deploy advanced real-time system monitoring, predictive maintenance, and data-driven optimisation techniques to enhance the operational efficiency of cooling assets.

“Our partnership with Stonepeak is an important step in expanding our cooling infrastructure footprint. As demand for sustainable cooling grows, this joint venture strengthens our ability to deliver efficient, scalable solutions that support Malaysia’s energy transition and economic growth,” said Azura Binti Azman, Independent Non-Executive Chairman.

With an investment target of up to RM1.5 billion, this initiative underscores the long-term potential of Malaysia’s cooling sector. By modernising infrastructure and scaling up high-efficiency cooling assets, the JV Company aims to set a new standard for energy-efficient cooling solutions in the region.