Stay updated with the latest developments in Cahya Mata Sarawak Berhad (CMS) through our series of press releases.

Ir. Vincent Tang_media

CMS Expert Shares Best Practices and Insights for Construction on Peat

Kuching (Sarawak), 28 August 2019 – Recently, over 100 professional engineers attended a ‘knowledge sharing’ session, organised by The Institution of Engineers (IEM), Malaysia (Sarawak Branch) in collaboration with Swinburne University of Technology (Sarawak Campus) on the ‘Guidelines for Construction on Peat and Organic Soils in Malaysia’.

At the event, Senior Project Director at Cahya Mata Sarawak Berhad (CMS), Ir. Vincent Tang Chok Khing, who is a registered Professional Engineer with Practising Certificate (P.Eng) from the Board of Engineers Malaysia (BEM), shared his 35 years of experience in the field. He is also a fellow member of the Institution of Engineers Malaysia (Civil), an Ordinary Member of the Road Engineering Association of Malaysia, and an Immediate Past Chairman of IEM, Sarawak Branch and former Head of Project/Senior Regional Manager of Southern Regional Office at JKR Sarawak. Ir. Vincent is arguably one of the most well-versed practitioners in the country to lead the debate on this topic.

Speaking at the event, Ir. Vincent said, “Peat is a type of soil formed over hundreds of years. In essence, peat is an accumulation of partially decomposed vegetable or organic matter, which contains high water content and high large void ratio. This high level of void ratio combined with the often-saturated water content makes construction on a peat base unpredictable and problematic which poses many challenges.”

The talk delivered a clear understanding of best practices with overview of the guidelines regarding peat design that was developed from over 25 years of Malaysian experience dealing with the subject.

Ir. Vincent presented a range of topics from detailed compilation of peat occurrences throughout Malaysia, to appropriate soil investigation methods and the criteria for road and earth fills design on peat. He also shared various case studies on the construction of roads and earth fills on peat, as well as to expound the design methodology with emphasis on design parameters estimation from basic properties including natural moisture content and organic content.

Dato Isaac Lugun, Group CEO – Corporate said, “CMS invests heavily in R&D throughout all of our industries in our portfolio, but what makes CMS special and admired is the fact that we do not monopolise the information, instead we share it with our industry peers in order to ensure real and consistent State-wide growth delivered with absolute quality. This talk by Ir. Vincent Tang is yet another proof-point of this ethos.”

Financials_Property Development Division

Cahya Mata Sarawak Berhad’s Financial Performance for the First Six Months Of 2019

Kuching (Sarawak), 27 August 2019 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its financial performance for the first six months of 2019 (1H 2019). The Group reported a total revenue of RM817.35 million for 1H 2019, representing an increase by 9% in comparison to the preceding year’s corresponding period’s (1H 2018) revenue of RM750.27 million. Its pre-tax profit (PBT) of RM128.06 million for 1H 2019 was, however, lower by 27% than 1H 2018’s PBT of RM175.94 million.

The Group’s profit after tax and non-controlling interests (PATNCI) of RM82.10 million for 1H 2019 was also 37% lower than 1H 2018’s PATNCI of RM130.60 million. Earnings per share (EPS) stood at 7.65 sen versus 12.16 sen reported for the corresponding six-month period of last year.

The lower profit in this period was mainly attributable to weaker profits from the Group’s associates, especially OM Materials (Sarawak) Sdn Bhd. Furthermore, CMSB’s Cement and Construction & Road Maintenance Divisions also recorded lower profits during this period although, collectively, the Group’s traditional core businesses, which also includes the Construction Materials & Trading and Property Development Divisions, have done better. It reported a collective PBT of RM126.57 million in 1H 2019, an improvement by 7%, in comparison to 1H 2018’s PBT of RM118.66 million.

The Group’s Cement Division reported a 19% lower PBT of RM31.67 million in 1H 2019 compared to 1H 2018’s PBT of RM39.19 million, despite 8% improvement in its revenue. The lower PBT was attributable to the higher cost of imported clinker, which has increased due to the spike in global demand driven by the reduction of clinker production in China and strong regional demand especially from Bangladesh and the Philippines. The cost of coal has also increased in this period, by as much as 17%, and impacted the Division’s profit margin.

The Construction Materials & Trading Division registered a strong PBT of RM39.96 million, an increase of 71% in comparison to 1H 2018’s PBT of RM23.41 million. The higher PBT is mainly attributable to the 27% higher revenue, 1% higher gross profit margin and a reversal of provision of RM9 million.  Even without the reversal of provision, the Division’s PBT of RM30.96 million for 1H 2019 would have been 32% stronger than the corresponding six-month period of last year.

The Construction & Road Maintenance Division reported a PBT of RM34 million for 1H 2019, 24% lower than 1H 2018’s PBT of RM44.76 million. This was due to the Division’s lower year-on-year revenue by 9%, 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, the Division also reported 4% lower gross profit margin as there was a one-off item in 1H 2018, in the form of arrears received, amounting to RM3.51 million.

The Group’s Property Development Division reported a strong PBT of RM20.95 million for 1H 2019 compared to RM11.30 million reported for the corresponding period in 2018. This is mainly attributable to the profit recognition from a land sale, higher number of condominium and apartments units sold as well as higher rental income from unsold apartments.

From its associates, the Group recorded a share of profit of RM25.71 million in 1H 2019, lower by 66% than 1H 2018’s profit of RM74.88 million. This was mainly due to the lower contribution by OM Materials (Sarawak) Sdn Bhd, CMSB’s 25%-owned associate company, which contributed RM5.31 million in 1H 2019 to the Group. This contribution was lower by 89% in comparison to 1H 2018 as the Company had then posted a stellar share of profit of RM48.48 million. The lower profit 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’s Group Chief Executive Officer – Corporate, Dato Isaac Lugun, said: “The result for the first half of 2019 has mostly been impacted by the performance of our associate company OM Materials (Sarawak). Although OM Material (Sarawak)’s prospects in the immediate-term are challenging mainly due to the 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, coming mostly from the competitive power price offered in Sarawak, and its strong global presence. Once the market rebounds, we believe that OM Materials (Sarawak) will again post a similar stellar financial performance it did in 2018. The Group also remains positive on its other associate companies including Sacofa Sdn Bhd, Kenanga Investment Bank Berhad and KKB Engineering 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, we expect their growth to continue and be driven by the ongoing Pan Borneo Highway project and the State government’s increased spending on infrastructure. As seen in the State’s record budget for 2019, RM9.07 billion is spent on development which in part will fund the implementation of major infrastructure projects including the Coastal Road and Second Link Road, tenders for which have started being awarded, the Water Grid and Electricity projects and the State government’s push for rural development. This ensures that the State will be a pocket of increased construction activity for the next few years and this is expected have a positive impact on our traditional core businesses as they are involved heavily in the supply of construction materials.”

“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.

“Continually aiming to post good and strong profits while staying true to our business ethics, transparency and dedication to compliance, Cahya Mata Sarawak Berhad, is well on its way to becoming ‘Sarawak’s Most Admired Company’.” concluded Dato Isaac Lugun.

Cheque presentation ceremony to charitable organisations_media

CMS Tribal Run Becomes Anticipated Annual Event in the Sarawak Calendar

Kuching (Sarawak), 5 August 2019 – First organised in 2015 as a way for CMS employees to raise donations for community-based charities and also to promote healthier living, the CMS Tribal Run has grown in strength, year-on-year.

This year, the CMS Tribal Run exceeded our expectations with over 3,200 participants in just Kuching alone. In fact, this year’s edition of the CMS Tribal Run, was extended to Miri in addition to Kuching!

Runners turned up bright and early, energized and showing their jovial spirit with a great number dressed in their traditional regalia, adding even more vibrancy and colour to the fun-filled activity.

The CMS Tribal Run in Miri was flagged-off at the Marina Park earlier in July 2019, with a 5km Fun Run/Walk attracting some 500 eager and enthusiastic runners.

The second flag-off took place on 4 August 2019 at Wisma Mahmud, Kuching, which started with a 10km Competitive Race followed by a 5km Fun Run and last but not least the 3km Family Run/Walk. In addition to the race itself, there were also prizes for “Best Tribal Wear” which saw throngs of participants adorned in their stunning tribal regalia.

Staying true to the tagline “CMS Cares! 100% Goes to Charity”, all of the registration fees collected amounting to an astonishing RM154,800 was donated evenly among 12 charitable bodies; three of which are from Miri, i.e. Parents Association of The Special Children Miri (PIBAKIS), Malaysia Red Crescent Miri Chapter’s Dialysis Centre and The Ten Ringgit Club, whereas the remaining nine are from Kuching, ie. Persatuan Prihatin Ibu Tunggal Bahagian Kuching (CARE Kuching), Home of Peace, Mental Health Association of Sarawak, Dyslexia Association of Sarawak, Sarawak Turf & Equestrian Club (STEC) Kidney Foundation, Persatuan Dialisis Cahaya Kuching, Sarawak Children Cancer Society, Sarawak Society for the Deaf and the Sarawak Society for the Prevention of Cruelty (SSPCA).

Over and above that, Cahya Runners consisting of CMS top runners went the extra mile in its name and raised a whopping RM13,012 for the Society for Critically Sick Children (SOS Kids) and CMS matched that figure for Persatuan Kebajikan Kanak-Kanak Terencat Akal, Sarawak (PERKATA).

Group CEO – Corporate, Dato Isaac Lugun, said; “I am delighted to see the growing number of people who participate in our CMS Tribal Run every year. As I said some time ago, CMS Tribal Run is among the few, if not the only run in Sarawak where its entire registration fees are donated to charities and local communities. Not only do we as a company, encourage a more proactive and healthier lifestyle among Sarawakians, we are also able to give financial assistance to charities who service our underprivileged communities.”

This year’s CMS Tribal Run received tremendous support from Satria Realty, Revive, Moma, Milo and Indocafe. We also saw the same enthusiasm among the participants from the likes of Titanium Project Management, JKR (Sarawak), K&N Kenanga Investment Bank Bhd, RHB Bank, Borneo Convention Centre Kuching, Ernst & Young, Kuching Toastmasters Club, Sarawak Economic Development Corp, Nova Fusion, KKB Engineering, Kuching Water Board, SACOFA, Sara Resorts, Satria Realty, SCIB Concrete Manufacturing, Yung Kong Co. Berhad, Sarawak Energy Bhd and Hock Seng Lee.

Launching of CWP_media

Cahya Mata Sarawak launches Group Corporate Wellness Programme

Kuching (Sarawak), 12 July 2019 – Cahya Mata Sarawak (CMS) launched its in-house Health Surveillance Programme – Corporate Wellness Programme (CWP) on 1 July 2019. In collaboration with Rehab Concept, CMS CWP will be first rolled out to its 1,500 employees in the southern region, including Kuching, Kota Samarahan, Serian and Lundu before extending it to employees in the central and northern regions.

Speaking at the event, Mr Goh Chii Bing, Group Chief Executive Officer-Operations said, “At CMS, we take the health and well-being of our staff seriously. A large number of them are breadwinners and as a responsible employer, we have a part to play in ensuring that their health is well managed. One can never underestimate the importance of leading a healthy lifestyle. When our staff are healthy, they and their families are happy and of course, our productivity goes up, which is a bonus for CMS!”

Being the first of its kind in Sarawak, CMS takes the lead in offering an in-house health management programme for the benefit of employees’ health and wellness. The programme includes scheduled health screening for employees, health survey, and an on-going education programme to promote a healthy lifestyle among the workforce. During the health screening, a few parameters such as blood pressure, body mass index (BMI) and body fat percentage will be monitored by the team from Rehab Concept. The team will be also look into health interventions where necessary, such as weight and stress management. CMS CWP programme will run from 1 July 2019 to 30 June 2020.

The CMS CWP is yet another testament to the quality of the company and its people first ethos, further proof as to why CMS deservedly picked up gold at CSR Asia and ranked in the top 10 Sarawakian companies to work for in the recent LinkedIn polls. CMS is a company you can truly admire.

CMS Receives Silver And Bronze At International ARA 2019_media

CMS Receives Silver and Bronze at 2019 Australasia Reporting Awards

Kuching (Sarawak), Friday, 28 June 2019 – Cahya Mata Sarawak (CMS) recently received silver for their distinguished achievement in Sustainability Reporting and bronze for Annual Reporting at the 2019 Annual Australasian Reporting Awards (ARA) held in Melbourne, Australia. These reports were benchmarked against ARA criteria which are based on world best practice.

Speaking about the awards, Dato Isaac Lugun, Group Chief Executive Officer – Corporate said, “We are delighted to know that the quality of both our sustainability and annual reports stand on par with world best practice.”

“We take great pride in our Annual and Sustainability Reports as we believe it is one of the best ways to communicate with our stakeholders.  The reports demonstrate our commitment to good governance, transparency, compliance and ethics. Recognition like these are what makes CMS an admired company.”

The ARA was first founded in the 1950s by a group of business leaders who were keen to establish awards for excellence in preparing annual reports, constantly improving the standards of financial reporting and communicating with stakeholders. These awards are now known as the ARA and the recipient criteria entails an open willing attitude, attention to detail and accuracy, a sensitivity and responsiveness to stakeholders, a willingness to put in the effort to communicate effectively and a commitment to achieving and improving upon standards.

These awards are in addition to other similar recognitions achieved by CMS in Malaysia. CMS is the only Sarawak public-listed company and one out of 56 companies in Malaysia to be made a constituent of the FTSE4Good Bursa Malaysia Index, a testament to its strong sustainability practice. For its good track record of corporate disclosure, the Group has also qualified for Bursa Malaysia’s Green Lane Policy.