With a 12g940 head on a 998/1098 block, if a 'hotter' camshaft is fitted it will almost certainly be necessary to 'pocket' the block to clear the valves.
However, a 1098 engine will not really rev above about 6000 rpm due to the crankshaft limit on the long stroke engine.
Best recommendation is an MG Metro or Kent 266 cam (they are almost identical).
Lightly gas-flow the head to improve the 'breathing'.
Whilst it's in pieces and if modifying for increased power do a complete engine strip down. Measure everything accurately.
Check main & big end journals and have the crank re-ground if necessary and fit new main & big end bearing shells. Fit new crank thrust bearings to give crank float a maximum of 0.005".
Remove the pistons/rods and inspect/measure the bore wear and re-bore with new pistons if necessary.
Fir new cam bearings if the old ones are scored. Fit new cam followers.
Fit a new oil pump & timing chain.
Measure, calculate and machine to achieve a Compression ratio of between 9.75 and 10:1. You MUST measure and check the valve to block deck clearances very accurately when using the 940 head.
For a 1098 engine with a 266/MG Metro cam a 3.44:1 FDR is very good, or even a 3.2:1 for good cruising.
Don't rev it over 6000 rpm!