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

CMS Roads Sdn Bhd – The Driving Force Behind Rejuvenation Of Kampung Murud Plaman

Accessibility to Education Is a Fundamental Key in ‘Building Sustainable Communities’

Kuching (Sarawak), Thursday, 25 April 2019 – Since Cahya Mata Sarawak Berhad (CMSB) launched its ‘Building Sustainable Communities’ initiative under their ‘Doing Good’ CSR banner in March 2019, the company has been continuously searching for communities where they can make a long-term difference in uplifting lives, enhancing lifestyles and creating growth opportunities for the communities they work with.

Recently, a team of 120 CMS Roads Sdn Bhd employees descended on Kampung Murud Plaman, completely renovating a dilapidated community hall which will soon be equipped with a childrens’ library, inclusive of lights and fans. But the company did not stop there. Their next project will see them undertake a school rehabilitation project at SK Engkabang in Saratok.

According to Jason Lee, Head of Corporate Reputation & Communications, “PPESW BPSB JV Sdn Bhd is majority owned by CMSB and under our ‘Building Sustainable Communities’ initiative, we fully support the massive investment by PPESW BPSB JV to completely transform SK Engkabang by enhancing the school’s facilities and to provide significantly more classrooms for children to receive the education they deserve. Education is the largest single pivot to ‘Building Sustainable Communities’.

“Over the course of the next one year, PPESW BPSB JV will be constructing seven new classrooms with attached lavatory facilities to accommodate an additional 245 pupils. In addition, there will be a hostel block for both male and female pupils which can accommodate 20 students respectively. Finally, a single storey teacher’s quarters will also be built. While the total cost is RM2.8 million and will take one year to complete, it is a worthwhile endeavor if we are to prove what we say when we are looking to ‘Build Sustainable Communities’.

The continued focus on ‘Doing Good’ and ‘Building Sustainable Communities’ is beginning to have a positive impact on the company, with people sitting-up and paying attention to CMSB’s efforts, bagging Gold at the 11th Global CSR Summit and Awards earlier this month, followed by a top ten placing in the JobStreet Survey of the most preferred employers in Sarawak. The Group’s reputation is fast growing and transforming them into the most admired company in Sarawak.

CMS Bags Gold At The 11th Global CSR Summit & Awards

Cahya Mata Bags Gold At The 11th Global CSR Summit & Awards

Kuching (Sarawak), Tuesday, 16 April 2019 – Cahya Mata Sarawak Berhad’s (CMS) reputational stock continues to fly high these days and is clearly winning the ‘hearts and minds’ of the Sarawakian people, through their increased efforts in setting the bar as a true citizen of the community.

Speaking about CMS’ accomplishments of late, Jason Lee, Head of Reputation & Corporate Communications, CMS said; “While we have been an active CSR force in the community for nearly two decades through our ‘Doing Good’ CSR volunteerism, we have kept pretty low-key about what we do. Now however, other people have started to talk about our work, our efforts and our successes. Third party endorsement is something you just can’t beat. In its truest form, third party testimony is an absolute barometer for the reputation of CMS and the trust people have in CMS.”

“This CSR Leadership Award has been earned by everyone at CMS who have contributed 363,926 man-hours across 393 different projects since we started the initiative 17 years ago. With these kinds of figures, it is no wonder that people are sitting up and taking notice of Cahya Mata Sarawak as the force for positive, lasting change that we are making in the community. We recently launched a CSR Facebook page which has also received incredible positive feedback, garnering over 500 followers and well-wishers in less than 30 days.”

“We invite readers to ‘like’ our Facebook page at and nominate a community where you think CMS ‘Doing Good’ team under the ‘Building Sustainable Communities’ initiative can make positive, long lasting changes to elevate the standard and quality of life of Sarawakians.”

“Reputation and trust are not something that can be bought. We have to work every single day on our ethics, integrity, compliance and corporate citizenship in order to reach our goal of being one of Sarawak’s most admired companies.”


Dawn of a New Era in Road Management and Maintenance – Workshop on Performance-Based Contracts Opens in Kuching

Dawn of a New Era in Road Management and Maintenance – Workshop on Performance-Based Contracts Opens in Kuching

Kuching (Sarawak), Monday, 25 March 2019 – The International Roads Federation (IRF) and Cahya Mata Sarawak Berhad (CMSB) co-organised workshop titled ‘Performance-Based Contracts’ (PBC) – with the tagline ‘Spurring Growth, Connecting Sarawakians’ – at the Borneo Convention Centre Kuching. This marks an important milestone towards a new gold standard and global benchmark in quality for the management and maintenance of roads.

The workshop is designed to help industry players stay on top of a fast-evolving and ever-innovative industry, which will condition the future of infrastructure development. By bringing together the industry leaders in the field of PBCs, the workshop aims to create a world-class benchmark for others to follow.

Offering an objective and balanced view on PBCs and alternative road management systems, the 2-day event is targeted at road and transport agencies’ executives, engineers and managers involved in highway maintenance, private consultants and contractors, engineering firms and service providers. It’s billed as an open and collaborative platform to share, discuss and determine strategies to improve the approach towards road management and maintenance.

The event was officiated by the Assistant Minister for Coastal Road, YB Datuk Haji Julaihi Bin Haji Narawi and comprise presentations by some of international community’s distinguished and influential industry experts in PBCs.

Cahya Mata Sarawak Berhad, through its wholly-owned subsidiary CMS Roads Sdn Bhd, was the first proponent for performance-based road maintenance contract in Malaysia, and shown it to be a shining example of success. This format is now attracting interest as an example to be migrated for other Malaysian road concession renewals or even for government agencies who have not yet opted for maintenance to be privatised, placing greater emphasis on the workshop as a focus for national attention.

The event programme included two particularly distinguished speakers representing the Asian Development and World Banks – Dr. Asif Faiz, a PBC advisor and Janusz Sobieniak, a PBC consultant. Dr. Asif Faiz is a former World Bank Highways Adviser and Infrastructure Sector Manager with some 40 years of experience in designing, managing and implementing transport development policies, programmes and projects in more than 40 developing countries. Janusz Sobieniak is an experienced and versatile Transport Engineer who has worked for 30 years with donor agencies on transport sector projects in more than 40 developing countries in Asia, Africa, Europe, Latin America and the Caribbean.

In opening the 2-day workshop, YB Datuk Haji Julaihi, highlighted some of the benefits of PBCs, which include: annual savings of 10% to 20%, faster and better response times, higher maintenance standards, simpler annual budgeting due to fixed rates for different types of work, the transfer of obligations and risks of work management from the State to the contractor and that they enable the contractor to incorporate new technologies and equipment.

In his welcoming address, Dato Isaac Lugun, CMSB Group Chief Executive Officer – Corporate, said: “This year’s theme of “Spurring Growth, Connecting Sarawakians” is very apt for this workshop.  CMS is proud to play an important role in maintaining nearly 20% of the State Roads in Sarawak [and we have] continuously improved performance as evidenced by the independently verified Road Maintenance Index.”

Artist Impression of the Bintulu Jepak Bridge

State Support to Usher In Construction of Sarawak Coastal Road with Bintulu – Jepak Bridge Crossing

Bintulu (Sarawak), Wednesday, 13 March 2019 – Known to the parties involved as ‘Package 5’, the scope of work includes the proposed construction and completion of the proposed Bintulu ‒ Jepak bridge crossing Kuala Kemena, which upon its completion will not only improve connectivity, but will be an addition to the stunning engineering marvels to grace the Sarawak skyline.

The statement, made today by CMSB, announces that PPES Works (Sarawak) Sdn Bhd (“PPES Works”) and China Communications Construction Company (M) Sdn Bhd (“CCCC”)  joint venture, PPES Works CCCC JV Sdn Bhd (“PPES Works CCCC JV”) has on 13 March 2019, received and accepted a Letter of Acceptance from the Sarawak State Government for Package 05: Proposed Construction And Completion Of The Proposed Bintulu – Jepak Bridge Crossing Kuala Kemena, Bintulu Division for a contract sum of RM 466,679,497.00.

PPES Works is a 51%-owned subsidiary company of CMSB with the remaining 49% equity interest held by Sarawak Economic Development Corporation.

Speaking about the joint venture, Mr Goh Chii Bing, CMSB Group Chief Executive Officer – Operations, said: “With the construction and opening of the iconic and hugely popular Darul Hana Bridge in Kuching, the CMSB Group of Companies has shown not only its engineering prowess but also placed itself at the heart of pioneering engineering achievements that are as aesthetically pleasing as they are functional.

“I’m sure that the partnership with China Communications Construction Company (M) Sdn Bhd, given its distinguished portfolio and past achievements, will be of great value to PPES Works as the two great companies unite to bring about a more connected and rapidly developing Sarawak.”

The agreement stipulates that the iconic bridge crossing Batang Kemena at Bintulu – Jepak be approximately 1,048 metres long with a four-lane double carriageway, with a cable-stayed bridge complete with a flyover over Jalan Tun Ahmad Zaidi, Jalan Tun Razak and the Jalan Abang Galau traffic junction, with an approximate four-kilometre connecting road.

It is understood that the tenure of the contract is for 48 months, commencing 3 April 2019, with completion targeted for 2 April 2023.

Financials_OMS Watermarked

Cahya Mata Sarawak Berhad Reports Record Profit In 2018

Kuching (Sarawak), Tuesday, 26 February 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its performance for the financial year ended 31 December 2018 (FY2018). The Group reported a total revenue of RM1.71 billion and a pre-tax profit (PBT) of RM375.37 million for FY2018, an increase by 9% and 17%, in comparison to the preceding year’s (FY2017) revenue of RM1.58 billion and PBT of RM321.29 million.

The Group’s profit after tax and non-controlling interests (PATNCI) of RM265.74 million was 28% higher than FY2017’s PATNCI of RM208.03 million. Earnings per share (EPS) also stood higher at 24.79 sen versus 19.36 sen for the previous 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 166% to RM108.12 million in FY2018 in comparison to FY2017’s PBT of RM40.64 million. The main contributor to this astounding performance is the strong turnaround of OM Materials (Sarawak) in 2018 as its plant achieved full production and commodity prices improved.

The Group’s Cement Division, however, reported a lower PBT of RM90.14 million in FY2018 compared to FY2017’s PBT of RM101.34 million – this despite 7% 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 2018. 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 driven by the reduction of clinker production in China and strong regional demand for clinker especially from Bangladesh and the Philippines.

The Construction Materials & Trading Division reported PBT of RM71.29 million for FY2018 which is 19% higher than FY2017’s PBT of RM59.71 million. The financial result in 2017, however, included a (one-off) provision of RM20 million for remedial works, without which the Division’s PBT for FY2018 would have been lower in comparison to FY2017. This is due to lower production rate as a result of State-wide shortage of quarry sand and lower gross profit margins from the premix and quarry operations as a result of increase in prices of bitumen and diesel. The Division is taking all steps to position itself to capitalise on the spike in the demand for construction materials in the State including to pursue strategic investments and expand its inventory. In line with this strategy, the Division had entered into a Share Sale and Purchase Agreement to acquire a 56% stake in Borneo Granite Sdn Bhd for RM 31 million, as announced on 29 November 2018. The quarry has a targeted annual production capacity of 1.0 million MT.

The Construction & Road Maintenance Division registered a strong PBT of RM90.38 million, comparable to FY2017’s profit of RM90.20 million. This was on the back of strong 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 3% stronger PBT of RM33.82 million from the Property Development Division compared to RM32.86 million reported for the preceding year. 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: “2018 was a most challenging year for CMSB. The Group was amongst a dozen of companies on Bursa Malaysia adversely affected by the result of the 14th General Election and against a backdrop of a softening construction market. Despite this, the Group showed its resilience and posted a record annual profit with a PATNCI of RM265.74 million for 2018 eclipsing the previous all-time high of RM248.15 million achieved in 2015. The strong performance was mainly attributable to the turnaround of our associate, OM Materials (Sarawak) Sdn Bhd and improved contributions from our other associate companies including SACOFA Sdn Bhd. The financial performance in 2018 has clearly shown that CMSB’s growth strategy for its strategic investments to drive the next wave of growth is coming 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 five years.”

“Going forward, we expect to see improved performance of our traditional core businesses of Cement, Construction Materials & Trading and Construction & Road Maintenance to be primarily driven by the Pan Borneo Highway project. It will also be supported by the State government’s increased spending on infrastructure, as seen in its 2019 record budget of RM9.07 billion for development which in part will fund the implementation of major infrastructure projects including the Coastal Road, Second Link Road, Water Grid and Electricity projects. This ensures that the State will be a pocket of increased construction activity for next few years 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 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 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.