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MEDIA CLARIFICATION: Recent Reports Of Cahya Mata Sarawak Berhad Forming An Airline Are Erroneous And Baseless

31 January 2019

In response to recent media reports and social media posts purporting that Cahya Mata Sarawak Berhad (CMSB) is exploring expanding its business portfolio to include airlines, the company clarifies that this is absolutely and unequivocally untrue.

The photograph in question was used as a prop in an annual dinner event where everyone was taken on an imaginary journey to famous cities around the world. At each stop on the imaginary tour, there were performances depicting the heritage and culture of that city.

In no way is the mock artwork a prelude to us diversifying our portfolio into the airlines sector.

We would like to remind all netizens to be mindful that what they see on viral posts may not be real and maybe just another piece of fake news. At CMSB, we always practice transparency and full disclosure through the appropriate channels. If anyone needs clarification on any post they see, they are invited to checkout our Website at for the official news updates.

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

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

Kuching (Sarawak), Thursday, 31 January 2019 – Speaking about the recent CSR project in Kampung Murud Plaman, Jason Lee, Head of Group Corporate Reputation and Communications, said: “In late 2018, Cahya Mata Sarawak Berhad (CMS) heard that the residents of Kampung Murud Plaman did not have access to a stable water supply. We set out to remedy this situation and to meet our renewed CSR outlook, which is to not just be a benevolent benefactor to the communities, but to actually make real, tangible, long-lasting and positive changes to peoples’ lives through our new ethos of ‘Building Sustainable Communities’. After a site visit and several discussions, it turned out that Jabatan Air Luar Bandar was already taking action. So, we asked the Ketua Kampung, what else can we do for you that will enhance lives and enrich lives long-term. He told us the story of the new church and his vision for the old church.”

In the 1970’s, the community at Kampung Murud Plaman built a church that served them faithfully for five decades, but as the community grew, so did the need for a bigger church. Completed in 2012, the new church had the capacity to accommodate the needs of the community.

This left the old church to be utilised less and less over the years, eventually with a leaking roof and termite infestation in the beams, the old church had nearly seen the end of its days.

“While it was a pretty big challenge, we were delighted that our colleagues at CMS Roads Sdn Bhd (CMS Roads), led by Abdul Rahim Jamal, Senior Regional Manager, took up the baton and really drove this project forwards, generating support from other divisions and the local community members themselves.”

After two months of planning, on January 19th, 22nd and 26th over 120 people, led by CMS Roads, descended on Kampung Murud Plaman, changing the termite infested beams, replacing the entire roof and painted both the interior and exterior of the old church.

“We are all extremely proud of this project and the way it turned out. There are a few minor things to complete over the next few weeks but our colleagues at CMS Roads have shown that they are not just the best road builders in the State but also selfless community champions in the way they have driven this project, bringing in other CMS divisions and the community itself. Kampung Murud Plaman has turned out to be the perfect pilot for our new CSR focus of ‘BUILDING SUSTAINABLE COMMUNITIES’. It shows that CSR is more than just giving for the short term; it is delivering life-changing actions for the long term,” concluded Jason Lee.

CMS Roads Reports Miri-Marudi Road Rehabilitation Is Ahead Of Schedule And Nearing Completion

CMS Roads Reports Miri-Marudi Road Rehabilitation Is Ahead Of Schedule And Nearing Completion

Kuching (Sarawak), Tuesday, 29 January 2019 – Overcoming adverse weather conditions – including recent flash flooding – and braving rough terrain, the team at CMS Roads Sdn Bhd (CMS Roads) has reported that the rehabilitation of the Miri-Marudi road is both ahead of schedule and nearing its completion. Now in its final stages, CMS Roads has reported that a key focus area will be to ensure that the renewed road meets or exceeds the applicable road safety standards, helping to ensure the wellbeing of all those who travel between Miri and Marudi.

As of 25th January 2019, upgrading of the 43.2km road connecting Miri and Marudi is almost 3% ahead of its original 30-month schedule with more than 98% of the road rehabilitation complete. The latest major accomplishment reported by CMS Roads was the completion of premix surfacing works for the entire 43.2km stretch. Road users can now expect a smooth journey ahead of the forthcoming Chinese New Year celebrations when traffic is anticipated to increase as residents from both Miri and Marudi ‘balik kampung.’

Speaking about the latest update, Mr Goh Chii Bing, CMSB Group Chief Executive Officer – Operations, said: “January has been a milestone month for the Miri-Marudi road rehabilitation project with the premix surfacing complete. At the start of the project, we made a commitment that the road would be completely premixed before Chinese New Year 2019 and we have delivered on that promise. We’re proud of the efficiency and steadfastness of the CMS Roads team to reach this stage of the upgrading ahead of schedule; a herculean achievement given the many challenges along the way.

“As the project’s conclusion date draws near, and recognising recent media reports, I want to reassure the general public – especially the communities served by the road – that CMS Roads will continue to work with JKR on additional safety features, including signages, warning motorists about speed limits and potential hazards. On that point, I’d also like to stress that it’s of paramount importance that all road users take extra precautions when navigating stretches of the road that are particularly narrow or winding,” added Mr Goh Chii Bing.

Components of the upgrading process are already finished, with the road’s base works, premix surfacing, cement stabilisation works and pipe culvert installations all complete. The focus now is to complete the remaining installation of guardrails, painting of road lines and turfing works, and all these are expected to be completed by the end of February 2019.

The next and final update from CMS Roads is scheduled for end of Q1 2019, upon completion of this road rehabilitation project.


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.”