Stay abreast with the latest happenings in Cahya Mata Sarawak Berhad (CMS).


Cahya Mata Sarawak Berhad Increases Stake In MPAS Project

Kuching (Sarawak), Monday, 14 January 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce that its wholly-owned subsidiary company, Samalaju Industries Sdn Bhd, subscribed for 64,242,800 new ordinary shares in Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) for a total cash consideration of RM64.24 million.

Pursuant to this subscription, the shareholders and their respective shareholdings in MPAS are as follows:

Name of Shareholder Before Subscription After Subscription
No. of Shares Held % No. of Shares Held %
Samalaju Industries Sdn Bhd 127,542,400 49.94 191,785,200 60.00
Malaysian Phosphate Venture Sdn Bhd 86,856,800 34.01 86,856,800 27.17
Arif Enigma Sdn Bhd 41,000,000 16.05 41,000,000 12.83
Total 255,399,200 100.00 319,642,000 100.00

MPAS was set up as a joint venture company to construct and operate an integrated phosphate complex in Samalaju Industrial Park, Sarawak. The construction work of the plant is currently on-going and the first phase, comprising three integrated plants, is targeted to be complete by end of 2020. The plant will produce Yellow Phosphorous, Technical Grade Phosphoric Acid and Food Grade Phosphoric Acid, with an annual production capacity of 48,000 metric tons (MT), 75,000 MT and 60,000 MT respectively.

Commenting on the subscription, CMSB’s Group Chief Executive Officer – Corporate, Dato Isaac Lugun, said: “This is a strategic move to increase our footprint in the Sarawak Corridor of Renewable Energy (SCORE). The increase in our stake in MPAS is also in line with our growth strategy for our strategic investments to drive the next wave of growth for CMS Group. In particular, the aim of this growth strategy is for our traditional core businesses and our strategic investments to equally contribute to double the Group’s earnings in the next five years.”

“MPAS’ first phase of production is expected to commence by end of 2020 and this project is expected to contribute significantly towards our Group’s earnings in the future.” added Dato Isaac Lugun.

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Cahya Mata Sarawak Berhad Acquires 56% Equity Interest In Borneo Granite Sdn Bhd Through CMS Resources Sdn Bhd

Kuching (Sarawak), Thursday, 29 November 2018 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce that CMS Resources Sdn Bhd (CMSR), a 51% owned subsidiary company of CMSB had, on 29 November 2018 entered into a Share Sale and Purchase Agreement with Kasuma Resort Sdn Bhd (KRSB) for the acquisition of 56,000 ordinary shares, representing 56% equity interest in Borneo Granite Sdn Bhd (BGSB) from KRSB for a total cash consideration of RM 31 million. The remaining 49% equity interest in CMSR is owned by Sarawak Economic Development Corporation.

Commenting on the acquisition, CMSB’s Group Chief Executive Officer – Operations, Mr Goh Chii Bing, said: “The Acquisition is a strategic investment by the Group in a granite quarry located in the southern region of Sarawak, which is a very limited natural resource in the State. Granite is required in large quantities for the construction of the Pan Borneo Highway project and this investment positions CMSR as the key supplier of granite for this project.”

CMSR also took into consideration the unaudited net assets of BGSB as at 31 August 2018, the market value of its plant and machinery, its financial performance and the tenure of its quarry licence under Permodalan ASSAR Sdn Bhd. Upon the acquisition, BGSB is expected to generate a strong upward trajectory in its future earnings, with a positive cash flow in the years to come under the management of CMSR.

The quarry occupies about 139 hectares of land with two hill reserves. It is readily operational and has a logistic advantage for outbound delivery through a waterway enabling CMSR to immediately solve the present shortage of stones instead of acquiring a greenfield granite reserve, which will take a minimum of two years to be operational.

The acquisition is set to further expand the CMSB group’s quarry operations and a planned strategic investment to secure a reliable and immediate source of granite stone for the Group’s existing and impending projects.

Mr Goh Chii Bing added: “BGSB is targeting an annual production of 1.0 million metric tons. Combined with CMSR’s second production line with an annual production output of 1.3 million metric tons at Sibanyis Quarry, we will see a significantly enhanced capacity expansion of CMSR’s quarry operations. This is particularly timely as peak demand of stones materials for Pan Borneo Highway project is between 2019 to 2021; particularly the requirement to use granite stones for its premix wearing course.

“BGSB is well placed to benefit from other projects such as the pending implementation of the coastal road and the second trunk road project by the State Government. In addition, more infrastructure projects are already in the pipeline to be implemented over the next two years by the State Government through open tenders. These projects are expected to create huge demand for stones during the construction period, even after the Pan Borneo Highway project’s completion.

“We believe that our growth strategy for our strategic investments is beginning to come to fruition, whereby our traditional core businesses and our strategic investments are coming together to meet the growing demands of a rapidly developing State.”

Financials_OMS Watermarked

Cahya Mata Sarawak Berhad Reports Significantly Improved Earnings for the First Nine Months Of 2018

Kuching (Sarawak), Wednesday, 28 November 2018 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its financial performance for the first nine months of 2018 (PE2018). The Group reported a total revenue of RM1.22 billion and a pre-tax profit (PBT) of RM289.25 million for PE2018, an increase by 21% and 26%, in comparison to the preceding year’s corresponding period’s (PE2017) revenue of RM1.01 billion and PBT of RM230.46 million.

The Group’s profit after tax and non-controlling interests (PATNCI) of RM208.62 million was 42% higher than PE2017’s PATNCI of RM146.50 million. Earnings per share (EPS) also stood notably higher at 19.45 sen versus 13.64 sen reported for the corresponding nine-month period of last year.

The significant improvement in the Group’s financial performance was mainly due to the increase in the share of results of associates namely: OM Materials (Sarawak) Sdn Bhd, SACOFA Sdn Bhd, KKB Engineering Berhad and Kenanga Investment Bank Berhad. Collectively, their PBT catapulted by 685% to RM99.20 million in 2018 in comparison to PBT of RM12.63 million in PE2017. The main contributor to this astounding performance is the strong turnaround of OM Materials (Sarawak) this year as its plant has achieved full production coupled with improved commodity prices.

The Group’s Cement Division, however, reported a lower PBT of RM70.37 million in PE2018 compared to PE2017’s PBT of RM82.16 million – this despite 9% increase in its revenue. The lower PBT was mainly due to repair costs from the planned maintenance shutdown at its clinker plant during the first and third quarters of this year. The Division’s performance was further impacted by an increase in the price of imported clinker, a major raw material, due to the spike in global demand, following the reduction of clinker production in China and continued high demand for clinker especially from Bangladesh and the Philippines.

The Construction Materials & Trading Division reported a PBT of RM47.39 million for PE2018 which is 9% lower than PE2017’s PBT of RM52.14 million despite a 15% increase in revenue. This was attributable to the lower gross profit margins from the premix and quarry operations as a result of increase in prices of bitumen and diesel and lower production as a result of State-wide shortage of quarry sand. The Division is taking all steps to position itself to capitalise on the big spike in the demand for construction materials in the State including to pursue strategic investments and expand its inventory.

The Construction & Road Maintenance Division registered a strong PBT of RM66.51 million, an increase by 21% in comparison to PE2017’s profit of RM55.12 million. This was on the back of higher revenue from the construction of Pan Borneo Highway project, the Miri-Marudi road rehabilitation project and the Sarawak Museum project.

The Group also reported a stronger PBT of RM29.04 million from the Property Development Division compared to RM28.72 million for the corresponding period in 2017. This was mainly attributable to higher profit recognised from construction activities.

Commenting on the results, CMSB’s Group Chief Executive Officer – Corporate, Dato Isaac Lugun, said: “The improvement in our financial performance for the first nine months of this year has mainly been attributable to the strong turnaround of our associate, OM Materials (Sarawak) Sdn Bhd and improved contributions from our other associate companies including SACOFA Sdn Bhd. We believe that our growth strategy for our strategic investments to drive the next wave of growth for CMS Group is beginning to come to fruition. The aim of this growth strategy is for our traditional core businesses and our strategic investments to equally contribute to double the Group’s earnings in the next three to five years.”

“Meanwhile, we also expect steady performance from our traditional core businesses of Cement and Construction Materials despite the operational challenges being faced by the two Divisions. This is expected to come on the back of the Pan Borneo Highway project, which has received full backing by the Federal government, and is expected to drive the construction sector in the State for the next 2-3 years. It will also be supported by the State government’s increased spending on infrastructure, as it recently announced a record budget of RM9.07 billion for development which in part will fund the implementation of a few major infrastructure projects including the Coastal Road, Second Link Road and the State’s Water Grid project. This ensures that the State will be a pocket of increased construction activity unlike in Peninsular Malaysia where the research houses have lowered their outlook for the construction sector.”

“We are confident that CMSB will continue to maintain its strong growth potential and will remain resilient in spite of expected continuing headwinds. With its healthy balance sheet and diverse portfolio of businesses, the Group is well positioned to benefit in all key growth areas in Sarawak. We expect this to be through: OM Materials (Sarawak) Sdn Bhd in the Sarawak Corridor for Renewable Energy (SCORE) initiative, SACOFA Sdn Bhd in the State’s push to fully embrace the digital economy and PPES Works (Sarawak) Sdn Bhd, a joint venture with the Sarawak Economic Development Corporation (SEDC), and our other construction materials supply companies in the roll-out of the Pan Borneo Highway project and other major infrastructure projects recently announced by the State government.” added Dato Isaac Lugun.

Encik Suhadi Sulaiman and Encik Noor Azirhan Sahat officially launches PLC

CMS Launches New Eco-Friendly Portland Limestone Cement

Kuching (Sarawak), Tuesday, 13 November 2018 –  Cahya Mata Sarawak Berhad (CMSB – 2852), the State’s leading infrastructure facilitator, is pleased to announce that its Cement Division, today achieved another major milestone with the official launch of its new eco-friendly product – the Portland Limestone Cement (PLC).

Officiating the launch was Head of CMS Cement Division, Encik Suhadi Sulaiman accompanied by other senior officials from UNIMAS, CIDB, JKR, SHEDA, consultants, associations, cement dealers and customers.

Encik Suhadi Sulaiman in his opening speech, said: “Today, we are proud to launch our Portland Limestone Cement (PLC). It has always been our intention to give our customers options by offering products that will meet their various requirements and budgets. While our flagship product, the Portland Cement 42.5N is an all-purpose product that can be used for all type of structures, the Portland Limestone Cement (PLC) with a strength class of 32.5N is targeted for low-rise concrete structures such as single storey residential, office and commercial buildings. Its high workability and plasticity, makes the PLC ideal for plastering, bricklaying and is less susceptible to cracks during its drying process. It can also be used for construction of drains and rural or kampong roads. We are also quite excited by its potential as a binder for soil stabilisation. As we all know, Sarawak has vast areas with soft soil conditions and this has always present a huge challenge for construction works. Early trials done with UNIMAS on soil stabilisation have indicated that the PLC have certain properties which makes it ideal for use in such conditions. The best part of all is that PLC is priced lower than the Portland Cement 42.5N and our hope is that in some small way the PLC will help to make construction in Sarawak more economical.”

The event also included speakers from UNIMAS, Senior Lecturer, Associate Professor Dr Mohammad Ibrahim Safawi bin Mohd Zain who presented a topic on Lightweight Foam Concrete. He said, “UNIMAS has been undertaking extensive research on lightweight concrete with the main objective to use it for rural construction and hence the introduction of foam concrete to the local industries in Sarawak is timely, especially in addressing problems related to construction in peat or soft soil.”

The second speaker was Mr Yeo Shih Horng of Concrete Material Consultant (YSH Advanced Engineering & Structures) who spoke on ultra-high performance concrete, which is a class of concrete defined by its exceptionally high strength and durability.

Before the event came to a close, the guests were treated to a product demonstration by the CMS Cement Division’s Quality and R&D team on the application of PLC.

Taking almost two years to develop the PLC is an eco-friendly product, manufactured by grinding a special blend of clinker, gypsum and high-quality limestone under stringent quality control. It is ground to a higher fineness resulting in better water retention, cohesiveness and higher workability in mortar and concrete. This makes the PLC a highly versatile product that will give its users multiple benefits such as better workability, smoother finishing, improved cohesiveness, reduced bleeding, easy to mix, improved slump retention and good flowability. The PLC will be priced at RM10.00 – RM12.00 lower (subject to locations) than the Portland Cement 42.5N, thus allowing its users greater economies.

By offering more options in terms of product types, applications and prices, CMS Cement strives to continue its role since its establishment in 1974 as a strong and reliable supporter of the construction industry and development of Sarawak.

CMS has three cement plants, namely: The Pending Grinding Plant in Kuching, the Mambong Integrated Plant and Bintulu Grinding Plant. Both the Pending and Bintulu grinding plants have direct access to port facilities enabling CMS to export efficiently and economically both bagged and bulk cement to any location. Besides the three plants, CMS also has two bulk terminals at Sibu and Miri whereby bulk cement is shipped using dedicated all-weather bulk cement barges each fitted with a fully enclosed dust free pneumatic system and cargo holds fitted with aeration panels and a fluidised transport system. These investments are part and parcel of CMS’ commitment to ensure uninterrupted supply of cement to the construction industry in Sarawak.

To view/download PLC 32.5N Brochure: click here or

The fire victims sharing their experiences of that fateful day

CMS Comes To The Aid Of Four Fire Victims’ Families

Kuching (Sarawak), Friday, 2 November 2018 – Consistent with Cahya Mata Sarawak Berhad’s support of the communities in which it operates, CMS and its wholly-owned subsidiary CMS Cement Industries Sdn Bhd have donated RM15,000 to four families whose houses were burned down, losing their much loved and sentimental possessions to the fire. Thankfully, there was no loss of life or serious injuries.

A ceremony was held at the site of the tragedy where Encik Suhadi bin Sulaiman, Head of CMS Cement Division presented the cheques to the family members gathered in a spirit of camaraderie and togetherness.

The fire broke out on 16th October 2018 at Kampung Bintawa Hilir, Kuching, where three houses were completely burnt whilst another house was partially burnt.

Speaking about the tragedy, Encik Suhadi, said: “At CMS, we’re doing what we can to help these families get back on their feet at what is a very difficult time. Anyone who has lost their property to fire or a natural disaster knows that they have lost more than just a house – they have a lost a home.”

“Despite losing so much, materially, we are humbled by their positive attitude during such a difficult time – they are an inspiration to us all.”

According to one of the family members affected, Encik Sabeli bin Bujang, said: “Speaking on behalf of both myself and my neighbours, I am grateful to CMS for coming to our aid. This contribution will go a long way to help us rebuild our lives.”

CMS is committed in being a driver of holistic Community Social Responsibility, not only through the change in the lives of individuals but also in the lives of the entire communities.