Founder Group Limited (NASDAQ: FGL) announced it secured an additional engineering, procurement and construction contract valued at approximately $8.6 million under Malaysia's Large Scale Solar 5 programme.

The Malaysian solar photovoltaic systems provider will design, construct, test and commission a 9.5 MW solar facility scheduled to achieve commercial operation by May 1, 2027. The company collaborated with a solar investment company on the RM34 million contract.

Founder Group's total contract value under the LSS5 programme now reaches approximately $17.7 million, according to the company's statement.

The LSS5 programme, also called Peralihan Tenaga SuRiA (PETRA), supports Malaysia's target of achieving 70 percent renewable energy installed capacity and carbon neutrality by 2050.

"This new LSS5 contract, coming shortly after our recently announced LSS5 award, demonstrates the accelerating trust in our technical capability and reinforces the momentum we are building across Malaysia's utility-scale solar market," said Chief Executive Officer Lee Seng Chi.

Lee stated the company aims to leverage this contract to secure additional opportunities under the potential LSS6 programme and Corporate Renewable Energy Sourcing Schemes.

According to MBSB Investment Bank Bhd research cited in the announcement, Malaysia may launch LSS6, potentially adding 2GW of solar capacity with battery energy storage system requirements. The research suggests solar could account for more than half of Malaysia's power capacity mix by 2050.

Founder Group focuses on large-scale solar projects and commercial and industrial solar projects in Malaysia.