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

CMS Property’s Rivervale takes Sarawak’s property market to new heights with big win at ‘SHEDA Excellence Award’

CMS Property’s Rivervale takes Sarawak’s property market to new heights with big win at ‘SHEDA Excellence Award’

Kuching (Sarawak) January 17, 2020 – CMS Property Development Sdn Bhd (CMSPD) continues to prove to be a leading force in the Sarawak property market, winning the prestigious ‘SHEDA Excellence Award’ in the ‘Strata Development (High Rise)’ category for Rivervale Condominium at the recent industry-regulators annual gala dinner. The ‘SHEDA Excellence Award’ was based on four strict criteria namely; (1) Project Overview; (2) Architecture & Design; (3) Marketing Strategy and (4) Community Benefits & Environmental Consideration.

Y. Bhg Dato Isaac Lugun, Group Managing Director of Cahya Mata Sarawak Berhad said, “The company went to great lengths in strategising and planning during the conceptualisation of Rivervale. We wanted to build a safe, secure and serene living environment for its residents, however, we wanted more than that. We want to enable a total living ecosystem that featured fun, functionality, nature and community. That’s why you find Rivervale the way you do, packed full of amenities and facilities which include a kid’s room, mini movie theatre, game room and an open garden with Japanese koi swimming in the stream. Other facilities include a gym, playground, swimming pool, kid’s pool-jacuzzi, bbq area, gazebo and a sitting terrace. All of that, set on the backdrop of nature’s lush green beauty brings the feeling of living in an urban oasis.”

Currently, approximately 80 per cent of the Rivervale Condominium is sold , with demand for most of the 146 units of Blocks A and B garnering increasing interest with all the facilities expected of a high-rise luxury living.

“This award, along with the 2015 and 2017 awards received for The Isthmus and Rivervale Residences respectively, speaks magnitudes to the standards that we strive to achieve in the properties we build.,” Dato Isaac concluded.

CMS Roads Puts Sarawak on the Global Map for Road Excellence with International Roads Federation Awards Win

CMS Roads puts Sarawak on the Global Map for Road Excellence with International Roads Federation Awards Win

Kuching (Sarawak), 19 December 2019 – CMS Roads Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Sarawak Berhad (CMSB), was recently among just 12 elite road industry companies from around the world to be recognised by The International Road Federation (IRF) at their prestigious annual Gala Awards Dinner in Las Vegas (Nevada – USA).

Speaking about the award, CMSB’s Group Managing Director, Y Bhg Dato Isaac Lugun said, “This is the big one for the road industry and I simply cannot upsell the achievement enough. There is no bigger award in the industry, and we won outright in the category of ‘QUALITY MANAGEMENT – LONG TERM MANAGEMENT AND MAINTENANCE’, for our excellence in maintaining and developing State roads in Sarawak.

“The State Government’s foresight and vision to implement all those years ago a Performance Based Contracts (PBC) system for road development and maintenance was at the time revolutionary. It meant that contractors and concessionaires were accountable for their work and their response times in fixing any damages caused by rains, floods, tree falling or just wear-and-tear. In fact, our average response time of under one-hour (58.89 minutes to be precise) to be onsite was 30% to 40% faster than the accepted global standard. This again hails the State Government for introducing PBC’s which ultimately holds the roads concessionaires accountable and responsible. It also shows that our CMS Roads are the best Roads team in the State, highly trained, completely dedicated and have an experience level that is second to none.”

CMS Roads has over the years spared no expense in training staff, recruiting the best people, developing cutting edge innovations in R&D and purchasing state-of-the-art equipment, as can be noted by the statement by International Roads Federation Chairman, Abdullah Al-Mogbel who said, “”This year, the IRF honors 12 projects from around the world, each leading the way in innovation across major road & highway disciplines. The selection was made by an international panel of senior road development specialists. As an industry, we understand the importance of setting a long-term agenda for our research activities and capital investments. By promoting innovations and the successes in our industry, we can provide a forward-looking road map for others to follow”.

“This year has been a real year of recognition for CMS. Never in the history of CMS have we picked up so many prestigious globally recognised and globally coveted awards. BrandLaureate – Conglomerate Award 2019, Gold at the 11th Global CSR Summit Awards, retaining Our FTSE4Good Rating and now this ‘International Roads Federation Quality Management – Long Term Management and Maintenance’. I am so proud of everyone at CMS and every division” concluded Dato Isaac.

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Cahya Mata Sarawak Berhad Taking Early Steps to Address New Corruption Law

Kuching (Sarawak) December 13, 2019 – Cahya Mata Sarawak (CMS), one of Sarawak’s largest corporations today took definitive and decisive steps against corruption and bribery by hosting an engagement session with hundreds of the company’s vendors, suppliers and partners in attendance. The engagement session declared an absolute ‘Zero Tolerance To Bribery and Corruption’ and urged all in attendance to do their part in stamping out these practices.

Cahya Mata Sarawak’s newly appointed Group Managing Director, Y Bhg Dato Isaac Lugun, in his opening address stated, “CMS takes a zero-tolerance approach to all forms of bribery and corruption. We expect our directors, employees, vendors and third-party representatives to do the same. We urge our stakeholders do so as well. CMS is committed to high standards of ethical, moral and legal business conduct.”

Furthermore, CMS has been working closely over recent months with PwC Malaysia in preparation and readiness for the introduction of the MACC Act Section 17A’s Corporate Liability Provision. Every area of potential risk within the company is being analysed and overhauled with new procedures and protocols to be implemented before 1 June 2020. CMS has even implemented an anonymous reporting process where any employee, representative, supplier or contractor can be reported if they are in breach of CMS’ Code of Conduct or Ethics Policies in any way. In fact, MACC Sarawak’s Assistant Commissioner, Encik Marcel Bulan Ak Ngabong who was also a panelist at the engagement, commended CMS for its efforts and said that “CMS has done well in getting ready so far and is the first Sarawakian company to carry out this form of exercise with its vendors and other third-parties.”

“17A is a positive move for all of Malaysia because no matter what business you are in, contract awards will be based solely on meritocracy which means standards will increase, quality will increase, and competitiveness will be the halo effect that the customers and end users will enjoy. For everyone in this room, the implications are to be embraced because the playing field is fair and open. If CMS is the most qualified, experienced and capable, we will win the tender and likewise for you as our partners and vendors, you have the assuredness of fairness and business equality.”

“The roll-out of the new procedures and protocols will of course need time and most of all support, from all companies, suppliers, vendors and customers who must collectively adopt a ‘Zero Tolerance To Corruption’ approach. But we are confident that if we embrace this mantra then together, we can become a leading light for global business to follow.”

Financials_CRM Division

CMSB in Prime Position to be Major Facilitator of State’s Road Connectivity Plans

Kuching (Sarawak), 6 December 2019 – PPES Works (Sarawak) Sdn Bhd (PPES Works), a 51% owned subsidiary company of Cahya Mata Sarawak Berhad (CMSB), today moved swiftly to allay any fears surrounding their roads business following the announcement that the current State roads maintenance contract will on 1 January 2020, be subdivided between PPES Works and a number of new roads concessionaries.

Speaking about the new State road maintenance allocation, CMSB’s Group Managing Director, Y Bhg Dato Isaac Lugun said, “We have always maintained that we are not a monopoly, and this proves it. We applaud the State for their move because competition in any market naturally breads competitive efficiency. This can only be good for the public and the road users.”

When asked about the reduction in contract for CMSB, Dato Isaac Lugun said, “Firstly, we maintain the lion’s share of the contract but secondly and most importantly is that you have to see the bigger picture here. CMSB has already done our part in laying the foundations of Sarawak’s existing roads and we have set an extremely high standard and benchmark for the new concessionaries to follow and pick-up the mantle. Now, we can focus on the bigger challenges and opportunities where our unrivalled expertise, experience, R&D and state-of-the art technology is really needed.”

“We don’t see this as a marginalization of our work scope, but rather as an opportunity to play a pivotal role in future road maintenance work in the State. Intra-state connectivity will be the arteries of socio-economic growth and the Sarawak State Government has a massive infrastructure plan that will see State-wide road connectivity becoming a priority as we head towards our State’s 2030 goals. We believe that we are best positioned to facilitate and make the connectivity plan a reality.”

Financial_Construction Materials & Trading

Cahya Mata Sarawak Berhad’s Financial Performance For The First Nine Months Of 2019

Kuching (Sarawak), 26 November 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its financial performance for the first nine months of 2019 (PE2019). The Group reported a total revenue of RM1.28 billion for PE2019, an increase by 6% in comparison to the preceding year’s corresponding period’s (PE2018) revenue of RM1.22 billion. Its pre-tax profit (PBT) of RM230.85 million for PE2019 was, however, lower by 20% than PE2018’s PBT of RM289.25 million.

The Group’s profit after tax and non-controlling interests (PATNCI) of RM154.93 million forPE2019 was also lower by 26% than PE2018’s PATNCI of RM208.62 million. Earnings per share (EPS) stood at 14.44 sen versus 19.45 sen reported for the corresponding nine-month period of last year.
The lower profit reported during this period was mainly attributed to weaker profits reported by the Group’s associate company, OM Materials (Sarawak) Sdn Bhd, due to the current depressed commodity market. In addition, CMSB’s Cement, Construction & Road Maintenance and Property Development Divisions have also reported lower profits during the first nine months of this year.

The Group’s Cement Division reported a 7% lower PBT of RM65.52 million in PE2019 compared to PE2018’s PBT of RM70.37 million, despite 10% improvement in its revenue. The lower PBT was attributable to higher imported clinker cost, which has increased due to the spike in global demand being driven by the reduction of clinker production in China because of environmental concerns and strong regional demand especially from Bangladesh and the Philippines, as well as higher coal cost.

The Construction Materials & Trading Division registered a strong PBT of RM63.59 million, an increase by 34% in comparison to PE2018’s PBT of RM47.39 million. The higher PBT is mainly attributable to the 19% higher revenue and a reversal of provision of RM9 million. Even without the reversal of provision, the Division’s PBT of RM54.59 million for PE2019 would have been 15% stronger than the corresponding nine-month period of last year.

The Construction & Road Maintenance Division reported a PBT of RM52.75 million for PE2019, 21% lower than PE2018’s PBT of RM66.51 million. This was due to the Division’s lower year-on-year revenue by 7%, mainly due to lower construction revenue resulting from completion of works and the expiry of the Federal road maintenance contract on 31 August 2018. Furthermore, a one-off item amounting to RM3.51 million was recognised in PE2018, in the form of arrears received, due to which the Division reported 2% lower gross profit margin in PE2019.

The Group’s Property Development Division reported a PBT of RM26.35 million for PE2019, lower than PE2018’s PBT of RM29.04 million, reflecting the current softening property market. This performance by the Division was attributable to the profit recognition from a land sale, steady ongoing sales of condominium and apartments as well as higher rental income from unsold apartments in Samalaju.

From its associates, the Group recorded a share of profit of RM55.80 million in PE2019, lower by 44% than PE2018’s profit of RM99.20 million. This was mainly due to the significantly lower contribution by OM Materials (Sarawak) Sdn Bhd, CMSB’s 25%-owned associate company. The lower profit by OM (Sarawak) was due to the recent weak commodity prices and the ongoing global trade-war which has been impacting the entire industry.

Commenting on the results, CMSB Group Managing Director, Dato Isaac Lugun, said: “The weaker result for the first nine months of 2019 is mainly attributable to the performance of our associate company OM Materials (Sarawak) as well as our traditional core businesses. For OM Material (Sarawak), although its prospects in the immediate-term remain challenging due to macro-economic factors, the Group remains confident on its longer-term prospects due to its position in the first quartile of the global production cost curve and its strong global presence. Once the market rebounds, as forecasted from second half of 2020 onwards, we are confident that OM Materials (Sarawak) will again post stellar financial performance as it did in 2018. The Group is also confident on continuing growth from its other associate companies including SACOFA Sdn Bhd, KKB Engineering Berhad and Kenanga Investment Bank Berhad which are part of our growth strategy for our strategic investments to drive the next wave of growth. The aim of this growth strategy is for our traditional core businesses and our strategic investments to counter-balance each other and in the long-term to equally contribute to double the Group’s earnings.”

On our traditional core businesses, despite the current challenging business environment, we expect their future growth to be driven by the ongoing Pan Borneo Highway project and the State government’s increased spending on infrastructure. As seen in the State’s budget for 2020, RM6.60 billion is allocated for development and a further RM21.67 billion of State’s fund has been set aside for the implementation of major infrastructure projects including the Coastal Road and Second Trunk Road, tenders for which have started being awarded, the Water Grid and Electricity projects, the State’s push for rural development and lastly for telecommunication structures. This ensures that the State will be a pocket of increased construction activity for the next few years and is expected to have a positive spill-over impact on our traditional core businesses.”

“CMSB will continue to maintain its strong growth potential and will remain resilient in spite of certain headwinds we foresee and are ready for. The Group is well positioned to benefit in all key economic drivers in Sarawak and is supported by its healthy balance sheet and its three-pronged growth strategy. Specifically, this strategy calls for CMSB to: firstly, reposition and fortify all traditional core businesses, secondly, to fully implement and grow the strategic businesses and, lastly, to reposition and strengthen the CMS brand.” added Dato Isaac Lugun.