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

Handover-of 18 units of Raintree Square  Commercial Shophouses at The Isthmus to UCSI

Raintree Square Set To Spearhead The Retail And Leisure Scene At The Isthmus

Kuching (Sarawak), Thursday, 11 October 2018 marked a special day in the transformation of The Isthmus as it pivots from a workplace and education point during the day, into a hub of activity at night. Today, UCSI Peterson Properties Sdn Bhd (UCSI) took possession of the keys for 18 units of commercial shophouses at ‘Raintree Square’ from CMS Land Sdn Bhd. It is envisioned that Raintree Square will be the centerpiece and catalyst for leisure and lifestyle in the area. In the last few years, The Isthmus has started to blossom, and this is the latest transformation of an area that will become an iconic venue in Kuching, boasting eateries, retail outlets and entertainment outlets, all set on the backdrop of the majestic Sarawak Riverfront.

Mr Vincent Kueh, Head of CMS Property Development Division handed over a symbolic key to UCSI’s Project Director Mr Goh Tze Meng at the central atrium of Raintree Square.

With the purchase of 18 units of two blocks strata titled 3-storey commercial shophouses at The Isthmus’ Raintree Square, UCSI is looking to expand their existing campus and to accommodate their growing number of curricular activities.

According to Mr Vincent, “The expansion of UCSI into Raintree Square will create fantastic opportunities for complementary businesses such as food & beverage and other attractive retail outlets. It also symbolises the growth of The Isthmus as Kuching’s newest central business district, reflecting the growing confidence of investors to invest in this area”.

The Isthmus is evolving into an exciting and dynamic development where one will see and experience an integrated development with a high-tech business centre, an education centre, a lifestyle food & beverage hub, a convention centre, international hotels, retail malls and shopping outlets.

To cater to the growth of The Isthmus, potential shop-owners/investors are welcome to purchase units at Raintree Square. Raintree Square 3-storey commercial shops are strata titled and ready with Occupational Permit.

Interested investors who want more information, can call 082-237 777, email at sales@cmsp.cmsb.com.my or access www.cmsproperty.com.my.

Image 1 - Fogging

The War Against Dengue To Be Taken To A Whole New Level

Kuching (Sarawak), Friday, 28 September 2018 – Whilst PPES Works (Sarawak) Sdn Bhd has for several months taken every preventative measure to eradicate Aedes mosquitoes at their Sarawak Museum Campus and Heritage Trail site, the recent news that six of their onsite staff and three people from surrounding areas had been exposed to dengue has driven the company to take their efforts to the next level.

Andy Lee Kuok Ping, Site Project Manager said, “Let me start by happily confirming that all who were admitted with dengue have now been treated and released from hospital and will make a full recovery. Our teams are visiting them to see how they are doing and bring along fruits as a small “get well soon” gesture. Since September 4th, 2018, we have fogged the area 14 times and have constantly cleared stagnant water, however with the volume and frequency of the rain, the primary drainage system becomes clogged causing new ponding areas which leads to more larvae. With this in mind, we are ramping-up our efforts to an almost military-like campaign to help protect everyone in the area to the best of our abilities.”

Fogging alone does not kill the larvae, it just chases away the mosquitoes. So, while PPES Works and CMSB have engaged a private contractor to conduct mosquito fogging now daily, they are also funding a greater counteroffensive in the war on dengue with new initiatives and weapons.

  1. Every personnel who enters the area must be properly attired, will receive mosquito patches and will be sprayed by a non-aerosol water-based mosquito repellent.
  2. Every morning, a team of 20 people comprising general site staff and safety officers will comb for hotspots, deploy anti-mosquito larvae chemicals and dispose of stagnant water.
  3. Every Saturday there will be a Gotong-Royong featuring 70 staff and subcontractor workers to search and destroy potential mosquito breeding ground.
  4. Hiring of additional water pumps to drain areas where post rain ponding occurs.

Speaking about the above and beyond aspect of the anti-dengue campaign, Jason Lee, Head of Corporate Reputation and Communications said, “We will be initiating talks with the Museum for long-term solutions such as the planting of massive amounts of Citronella and Marigold plants. These plants do not ward off mosquitoes, but they do mask the scent (carbon dioxide emissions of breath) of humans so that the mosquitoes cannot detect and infect humans. There are other options that can be deployed such as the introduction of guppies or ikan longkang to eat the larvae in the more permanent ponding areas. As a final measure, we will be hiring an external third-party health and safety inspector to join us on a weekly or fortnightly site visit to see how else we can wipe out dengue in this area.”

“CMSB wants to be a true corporate citizen that makes life changing differences to people’s lives. Just fogging and chasing away the mosquitoes on a temporary basis will not achieve our long-lasting and life-changing goals. For that reason, we want to do it properly. Hopefully, our actions will help educate people in the surrounding area and also raise the bar for other contractors and developers to follow. This long-lasting and life-changing goals concept forms the basis of our soon to be launched new, holistic CSR programme,’ concluded Jason.

Tan Sri Abdul Rashid

Cahya Mata Sarawak Berhad appoints Tan Sri Abdul Rashid bin Abdul Manaf as Group Chairman

Kuching (Sarawak), Wednesday, 26 September 2018 – Cahya Mata Sarawak Berhad (CMSB) has announced the appointment of its new Group Chairman, Tan Sri Abdul Rashid bin Abdul Manaf, effective 1 October 2018. Tan Sri Abdul Rashid will be taking over the responsibility from Interim Group Chairman, Dato Sri Mahmud Abu Bekir Taib, who reverts to the post of CMSB Deputy Group Chairman.

Tan Sri Abdul Rashid started his career in 1970 in the Malaysia Judicial and Legal Service and served as Magistrate, President, Sessions Court and Senior Federal Counsel to the Income Tax Department. He left government service in 1997 to pursue his career as a practicing lawyer and subsequently in business. Tan Sri Abdul Rashid built a long and distinguished career across industries in the business world and has a respected track record in judicial and governmental affairs, where he first grew to eminence. He became one of the principal legal advisers to the Renong Conglomerate with involvement in various Federal Government transactions, on and off-shore, and in various infrastructure projects throughout the country. He was also a Commissioner for Oaths and Notary Public for many years.

Dating back to 1977, Tan Sri Abdul Rashid, has served in several key positions in Malaysian corporations. These included Chairman of S P Setia Berhad, Loh & Loh Corporation Berhad, Pohmay Holdings Berhad and SMIS Corporation Berhad – all companies listed on Bursa Malaysia. Upon completion of his Chairmanship term with S P Setia Berhad, Tan Sri Abdul Rashid set up Eco World Development Group Berhad, a public company listed on the main market of Bursa Malaysia Securities Berhad, which is principally involved in property development. He is now a Founder Director of the Company. Historically, Tan Sri Abdul Rashid was appointed a Director of Stamford College Berhad on 27 June 1994, demonstrating his versatility and dynamic approach to very different sectors on which he has been able to juxtapose his experience.

Dato Isaac Lugun, Group Chief Executive Officer – Corporate said of his appointment: “CMSB has grown tremendously, especially from a corporate governance perspective, under the stewardship of Y A M Tan Sri Syed Anwar Jamalullail over the last 12 years, and today we pay credit to his strong legacy and many achievements. After the retirement of Y A M Tan Sri Syed Anwar, Dato Sri Mahmud was appointed as the Interim Group Chairman while CMSB searched for an independent Chairman. We are now pleased to announce the appointment of Tan Sri Abdul Rashid as our new Independent Group Chairman, reinforcing our core belief in good corporate governance to ensure that independence, both in substance and in form, is upheld at all times.

“With his many years of experience and knowledge of the business and corporate world, Tan Sri Abdul Rashid’s appointment will prove pivotal to the growth of CMSB, helping build on our progressive outlook as a group of companies fundamental to the future growth and development of Sarawak. I have no doubt that his extensive and wide-ranging experience in industry sectors of particular relevance to CMSB will serve our four major stakeholders well; namely, our shareholders, the communities we serve, our customers and our employees. In all his capacities over the years, he has displayed remarkable strength and exceptional leadership that has delivered demonstrable and long-lasting results for those organisations in which he has been involved. Essentially, he is a leader that believes business can and should be dynamic and transformational – improving lives, achieving strong growth and building stronger communities.”

CMS-Mambong Dialogue Session

CMS and Mambong Dialogue Shows True Community Spirit

Kuching (Sarawak), Friday, 7 September 2018 – Since 2014, CMS Cement Industries (CMSCI) has openly sought to engage the Mambong communities that neighbours the company’s Integrated Cement Plant.

Speaking about the annual dialogue, Goh Chii Bing, Group Chief Executive Officer – Operations, said: “A few years ago, Mambong residents voiced their concerns over dust levels that were coating their houses, cars and even laundry. They also raised concerns over the speeds at which some lorries were travelling in the area. Driven by a desire to want to help address some of those issues, CMSCI embarked on the first dialogue session in 2014 to explain to the Ketua-Ketua Kaum (KKK) and Jawantankuasa KKK members that while the operations of the factory did create some dust, those levels were being monitored and were in compliance with relevant environmental regulations.  In fact, CMSCI implements an online Continuous Emission Monitoring System (CEMS) with sensors installed at chimneys identified by the Department of Environment (DOE).  These sensors are linked to both the control room at the plant as well as to the DOE server.  This means that if dust exceeds permissible levels, not only will an alarm be triggered in CMSCI, DOE would also be alerted.  As for the community’s concern about speeding vehicles, CMSCI was able to show them that such vehicles were not related to the operations of CMSCI, be they transporters or staff”.

“CMSCI saw the opportunity to be more than just another company operating in the vicinity of a kampung.  We have a chance to become a real partner to the development of the community, creating positive and lasting change” says Mr Goh.

In the years that followed, CMSCI not only became a leading employer in the community with some 60% of the workforce comprising residents within a 20 kilometer radius, but have initiated several programmes that will see long-term betterment and growth for the communities. During this latest dialogue session, KKK and JKKK members took a moment to express their thanks to CMSCI for their efforts in creating an English Reading Programme at St. Augustine’s School, which is a collaboration with Tunku Putra-HELP School for Primary 4-6 – a programme that has already seen very positive results. The residents expressed hope that the programme could be expanded to incorporate mathematics, however, they are aware that such programme expansions would require Ministry of Education approvals.  Additionally, they also recorded their appreciation to CMSCI for sponsoring 200 chairs to community churches.

Those present at the dialogue also applauded CMSCI for their continued efforts to engage and support the community in more meaningful ways. One resident said, “We are impressed and appreciate the efforts and commitments of CMS to support and engage the community. This engagement is a step in the right direction and other organisations should follow suit.”

Another resident said, “I am impressed because I originally felt that CMS was just politically driven. I can see now that CMS is doing a lot, akin to ‘Pusat Khidmat Mambong.”  To this note, Mr Goh reiterated that CMS is a caring and responsible corporate company, run by professional managers.

CMSCI is committed to their diligence in monitoring emission levels and is ready to support the community in engaging relevant authorities on ways to improve road safety as well as other common infrastructure.

This 5th annual dialogue was attended by Temenggong Bidayuh Bahagian Kuching, Temenggong Austin Dimin Anak Niyon, Representatives from MP Puncak Borneo, YB Willie Mongin’s office, Ketua-Ketua Kaum (KKK) and Jawatan KKK from various villages around Mambong and members CMSCI’s management team.

After the event, Jason Lee, Head of Corporate Reputation and Communications, said: “The CMS Group is relooking at the ways we do CSR in the future. We want to be a driver of holistic CSR where everything we do and everything we embark on positively changes not just individual lives but the lives of entire communities by enhancing their way of life through infrastructure, connectivity and opportunity.”

Financials_OMS Watermarked

Cahya Mata Sarawak Berhad Reports Significantly Improved Earnings for the First Six Months Of 2018

Kuching (Sarawak), Friday, 24 August 2018 – Cahya Mata Sarawak Berhad (CMSB – 2852) is pleased to announce its financial performance for the first six months of 2018 (1H 2018). The Group reported a total revenue of RM750.27 million and a pre-tax profit (PBT) of RM175.94 million for 1H 2018, an increase by 15% and 32%, in comparison to the preceding year’s corresponding period’s (1H 2017) result of RM650.23 million and RM132.91 million respectively.

The Group’s profit after tax and non-controlling interests (PATNCI) of RM130.60 million for 1H 2018 was 57% higher than 1H 2017’s PATNCI of RM83.30 million. Earnings per share (EPS) also stood notably at 12.16 sen versus 7.75 sen reported for the corresponding six-month period of last year.

The significant improvement in the Group’s financial performance was mainly due to 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 1101% to RM74.88 million during 1H 2018 from a loss of RM7.48 million in 1H 2017. The main contributor to this astounding performance is the strong turnaround at OM Materials (Sarawak) where a PATNCI of RM48.48 million was registered (for CMSB’s 25% share) compared to a loss of RM26.21 million for the corresponding period in 2017. This strong performance by OM Materials (Sarawak) is expected to be sustained if ferrosilicon and manganese alloy prices and production outputs are maintained at their current levels. The Group also recorded a robust profit contribution from SACOFA where a PBT of RM21.11 million was recorded compared to RM18.88 million for the corresponding period in 2017.

The Group’s Cement Division, however, reported a lower PBT of RM39.19 million in 1H 2018 compared to 1H 2017’s PBT of RM47.04 million despite an 8% increase in its revenue. The lower PBT was mainly due to repair costs from the planned plant maintenance shutdown carried at its clinker plant during the months of January and February this year. This was the first extensive maintenance shutdown exercise carried out by the Group since it took over the plant in 2007.  The Division’s performance was further impacted by an increase in the price of imported clinker due to tight supply in the international market which management seeks to mitigate through alternative supply sources.

The Construction Materials & Trading Division reported a PBT of RM23.41 million for 1H 2018 which is 21% lower than 1H 2017’s PBT of RM29.50 million despite a 10% increase in revenue. The lower PBT was mainly attributable to a sudden and acute shortage of raw materials supply: quarry aggregates and quarry sand, resulting from a steep spike in the demand for the materials from the Pan Borneo Highway project. Margin was also compressed by the recent increase in prices of bitumen and diesel. The Division is actively exploring for alternative supply sources to ensure its continuous production of premix.

The Construction & Road Maintenance Division registered a strong PBT of RM44.76 million, an increase by 24% in comparison to 1H 2017’s profit of RM36.11 million. This was on the back of higher revenue from the construction of Pan Borneo Highway project, the Miri-Marudi road rehabilitation project and the Sarawak Museum project.

The Group reported a lower PBT of RM11.30 million from the Property Development Division compared to RM23.57 million for the corresponding period in 2017. This was mainly attributable to lower sales in an increasingly challenging property market.

Commenting on the results, CMSB’s Group Chief Executive Officer – Corporate, Dato Isaac Lugun, said: “The improvement in our financial performance for first six months of this year has mainly been due to the strong turnaround of our associate, OM Materials (Sarawak) Sdn Bhd and improved contributions from our other associate companies including SACOFA Sdn Bhd. We believe that our growth strategy for our strategic investments to drive the next wave of growth for CMS Group is beginning to come 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 three to five years.”

“Meanwhile, we also expect improved performance from our traditional core businesses of Cement and Construction Materials despite the operational challenges being faced by the two Divisions including the recent overall downgrade of the construction sector by various research houses in Malaysia. This growth is expected to come from the Pan Borneo Highway, which is gradually gathering momentum, and is expected to drive the construction sector in the State for the next 2-3 years.”

“We are confident that CMSB will continue to maintain its strong growth potential and will remain resilient in spite of expected continuing headwinds. With its healthy balance sheet, the Group is well positioned to benefit in all key growth areas in Sarawak: through OM Materials (Sarawak) Sdn Bhd in the Sarawak Corridor for Renewable Energy (SCORE) initiative, through SACOFA Sdn Bhd in the State’s push to fully embrace the digital economy and through PPES Works (Sarawak) Sdn Bhd and our construction materials supply companies in the roll-out of the Pan Borneo Highway project and the State’s rural transformation plan.” added Dato Isaac Lugun.