VICOM Ltd published on Apr, 16 2026 its responses to questions submitted by shareholders and the Securities Investors Association (Singapore) in advance of the group’s 45th Annual General Meeting scheduled for Apr, 22 2026.

The company said capital expenditure is expected to dip in FY2026 compared with FY2025, when most of the spending on the new Jalan Papan integrated testing hub was booked. Normal-level capex should resume in FY2027 after remaining carry-forward costs are incurred next year.

Management reiterated a dividend policy of paying out at least 70 percent of annual profit and stated that excess cash will be returned to shareholders after taking into account working capital and expansion needs.

Looking beyond one-off revenue from ERP 2.0 on-board unit installations, VICOM identified non-vehicle testing subsidiary SETSCO as the main growth driver, supported by the new Jalan Papan facility, which is slated to be fully operational in the second half of 2026. SETSCO’s joint venture with QAV Technologies in Malaysia is expected to scale its electromagnetic interference and compatibility testing services, with contributions targeted from 2027.

For FY2025, the core vehicle inspection business maintained performance year on year, though market share slipped to 72.3 percent, which management attributed to competitor pricing and the closure of the Ang Mo Kio inspection centre. The group also booked a non-cash impairment of 2.1 million Singapore dollars on goodwill related to JIC Inspection Services following the consolidation of operations and higher rental costs at the new site.

VICOM confirmed that its dormant Middle East associate remains unaffected by regional conflicts and that inspection requirements for electric vehicles are largely similar to internal-combustion cars, apart from emissions testing. The company added that margins on electric vehicle inspections could improve if new EV-specific tests are mandated in future regulations.