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

CMSB’s Dato Isaac Lugun Dedicates Huge Brandlaureate Win to Company’s Employees

Kuching (Sarawak) November 5, 2019 – Cahya Mata Sarawak Berhad (CMSB) this week celebrated winning the much coveted and highly regarded ‘BrandLaureate – Conglomerate Award 2019’. In picking-up the prestigious accolade, CMSB not only continues to surpass its mantra of being ‘The Pride of Sarawak’ but is also rapidly forging a new mantra for itself and that new mantra is that of becoming one of the State’s ‘Most Admired Companies’.

The World Brands Foundation presented, ‘The BrandLaureate World Best Brands Awards 2019 – Conglomerate’ to CMSB’s Group Managing Director, Y Bhg Dato Isaac Lugun at an exclusive black-tie event at the Shangri-La Hotel, Singapore on 31 October 2019. Dato Isaac said, “The company has worked tirelessly on delivering absolute excellence to all of our stakeholders, whether they are our customers, partners, employees or even the communities in which we operate. It is this pursuit of excellence that sees Cahya Mata Sarawak Berhad receiving this award and being in the company of such esteemed, iconic and global brands that are also represented here tonight.”

‘The BrandLaureate – Conglomerate Award 2019’ is based on seven strict and stringent criteria namely; (1) Strength and Performance of the brand; (2) Innovation in product development and relevance of products; (3) Engagement factor of the brand with its customers; (4) Ability to influence the industry with its expertise and know-how; (5) Ability to influence and impact communities with its products and services; (6) The brand is respected by its peers and emulated on its initiatives and (7) Contributions to the industry, community and development of the country.

“This year alone, we have won a global CSR award, retained our FTSE4Good standing and now, we add the BrandLaureate to our list of accolades. These awards are all true testaments to the commitment and dedication of all Cahya Mata Sarawak’s employees, and it is my honour to collect this award tonight for them, in recognition of their efforts,” concluded Dato Isaac.

Grand Prize Winner

“My Home My Community” At Bandar Samariang

Kuching (Sarawak), 29 October 2019 – “My Home My Community” at Bandar Samariang held at Mydin Mall Samariang last Saturday was a huge success with an estimated 5,000 visitors attending the event. This community event was jointly organised by Projek Bandar Samariang Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Sarawak Berhad and CATS FM.

The fun-filled day started with a Zumba session inside the mall – the instructor and members from Zumba Fitness led the crowd with fun moves and upbeat music to get them going.

A colouring contest was also held where schools in and around Bandar Samariang sent their most talented students to participate. All the participants were given goodie bags while the top three winners each brought home a trophy and hamper.

A blood donation campaign was also held where all successful donors received a 5 kg bag of rice each as a token of appreciation.

Project Bandar Samariang also took this opportunity to donate two water dispensers to SMK Bandar Samariang and one unit of 43” TV to SK Bandar Samariang.

In the evening, visitors were treated to a KONSERT CATS Day Out, starting from 7pm until midnight with various local celebrities such as Dayang Nurfaizah, Hael Husaini and many more, belting out their popular songs to entertain the crowd.

Throughout the event, many lucky draw winners were announced with the grand prize being a 49” Samsung TV.

Commenting on the event, Cahya Mata Sarawak’s Group Managing Director, Dato Isaac Lugun said, “We are not just building a township. Our objective is also to build a vibrant and sustainable community”.

Projek Bandar Samariang is the anchor developer at Bandar Samariang. Their latest property package – Alam Impian consists of single-storey terrace, double-storey terrace and single-storey semi-detached units, with price ranging from RM268,888 to RM382,888. Units are available for booking.

For more information on Projek Bandar Samariang’s property and promotion, kindly contact 019 8581666 (Aaron), 012 8220557 (Alex), 012 8085055 (Charlotte), 012 8856685 (Cherrie), 012 8288119 (Melissa) or 012 9311887 (Tisa).

dato_isaac

CMSB to Undertake Strategic Restructuring

Kuching (Sarawak), 18 October 2019 – Cahya Mata Sarawak Berhad (CMSB) today announced a strategic restructuring at Board level which will allow Y Bhg Datuk Syed Ahmad Alwee Alsree to retire after serving the Group for more than 15 years.

Over the last 12 months, in preparation for the strategic restructuring, CMSB has implemented a planned, measured and robust succession plan. The restructuring allows Datuk Syed to relinquish all his roles at CMSB.

Explaining the move, CMSB’s Chairman, Y Bhg Tan Sri Abdul Rashid Bin Abdul Manaf, said; “Datuk Syed Ahmad has been a loyal and faithful servant of CMSB for over a decade-and-a-half. His contributions to the development and growth of CMSB are immeasurable, as is our thanks and appreciation to him.”

Y Bhg Datuk Syed Ahmad Alwee Alsree, said; “My time with CMSB has been an amazing journey. I have seen the company grow by leaps-and-bounds, from 2004 when I joined as the Group General Manager of HR, through my time as Deputy Group Managing Director and then ultimately as Group Executive Director. It gives me endless pride to know that I played a role in CMSB reaching status it now holds. However, after 15 years, it is time for a new challenge and this restructuring delivers that opportunity.

The company’s robust succession planning will see the highly experienced 23-year CMSB veteran Y Bhg Dato Isaac Lugun, take the helm as Group Managing Director.

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.