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

CMS Highlights Actions to Regain Business Momentum Following Sarawak’s First Virtual AGM

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Kuching (Sarawak), Sunday, 21 June 2020 – Following the conclusion of its virtual 45th Annual General Meeting (AGM), Cahya Mata Sarawak Berhad (CMS or the Group) has come to the fore to reaffirm the proactive actions it is taking to regain business momentum amidst the Recovery Movement Control Order (RMCO) phase.

On 18 June 2020, CMS concluded the first ever online AGM to be held by a Sarawakian public-listed company. This year, the Company out of concern for the well-being and safety of its shareholders and in compliance with MCO regulations, conducted its 45th AGM via live webcast as well as Remote Participation and Voting (RPV) facilities.

The live webcast was broadcast from the auditorium at Menara Symphony in Petaling Jaya with only a handful of CMS’ key senior management in attendance. Meanwhile shareholders participated remotely from the comfort of their smart devices or personal computer/notebooks. During the AGM proceedings, shareholders were able to ask questions in the chat box and submit their votes in real-time. To ensure the AGM proceeded smoothly, CMS allowed proxy forms to be lodged electronically via the Boardroom Smart Investor Portal while voting was conducted by way of RVP electronic polling. An independent poll administrator was appointed to scrutinise, verify and validate the poll results. The AGM saw all the 11 ordinary resolutions that were tabled duly approved by CMS’ shareholders.

Commenting on the recently concluded AGM, CMS Group Managing Director, Dato Isaac Lugun had this to say: “Even as the Covid-19 pandemic has seen the onset of whole new set of challenges for all of us, we are pleased to return to some semblance of normality by being able to conclude this AGM  in a virtual manner. We are also pleased to report that despite the initial challenges of the MCO, we were still able to publish our Integrated Annual Report and Sustainability Report for 2019. Carrying the common theme “Creating Future Value”, both these reports are available for download from CMS’ corporate website at www.cmsb.my.”

Dato Isaac went on to say, “While this unprecedented crisis has taken a toll on our nation, economy and people, we are glad to see many parties proactively working together to mitigate the effect of the pandemic and challenging but necessary MCO. As the leading listed corporation in the State of Sarawak, CMS on its part has sought to protect our business and stakeholders while preserving value in several ways.”

“Firstly, we have sought to prioritise employee safety and health by adopting protective measures and working practices to ensure workplace health and safety. Employee welfare too has been prioritised with full remuneration delivered on schedule. We have also sought to ensure the welfare of our suppliers and contractors and made a special effort to settle all outstanding invoices in a speedy manner to help alleviate any financial challenges that they may be facing.”

“To preserve shareholder value, our team was busy devising response plans and protocols during the lockdown. This gave us the means to swiftly re-commence operations in mid-May during the Conditional MCO period. Today, we continue to focus on ensuring sustainable long-term growth and upholding good shareholder returns.”

“To ensure our financial resilience, we are now laser-focused on implementing catch-up strategies following the reopening of our operations across the board. We continue to enhance operational efficiencies to attain cost savings and enhance cost control measures including rationalising our capital expenditure (capex). As such, non-essential capex has been minimised, while essential capex will be implemented in stages. On top of this, we continue to preserve cash for business operations and future investment.”

Dato Isaac also highlighted that CMS is back on its feet and primed to capture opportunities in three major growth areas within Sarawak. “Opportunities abound within the Sarawak Corridor of Renewable Energy (SCORE) and CMS’ associate company, OM Materials (Sarawak) Sdn Bhd, and subsidiary, Malaysian Phosphate Additives (Sarawak) Sdn Bhd, are well positioned to capitalise on the energy-intensive industries they are engaged in within SCORE.”

“On top of this, there are ample opportunities to be tapped via the unprecedented spike in infrastructure development in Sarawak. To this end, the Group’s Cement, Construction Materials & Trading, as well as Construction & Road Maintenance Divisions are ramping up their operations to cater to market needs. Finally, as Sarawak wholeheartedly embraces the Digital Economy, CMS is ready to play a leading role in telecommunications infrastructure development activities through our strategic stake in telco player, SACOFA Sdn Bhd.”

Dato Isaac also commented on CMS’ strategy moving forward: “CMS will continue to bring into play a three-pronged strategy which will see our team working to reposition and fortify our traditional core businesses; fully implement and grow our strategic businesses; and reposition and strengthen the CMS brand.”

“Barring unforeseen circumstances, our ambition of achieving an annual PATNCI of RM500 million within five years and realising our softer target of becoming the most admired Sarawak public-listed company are still very realistic targets to us. Despite the challenges besetting our economy and many companies, we are confident of getting back on track to regain whatever momentum we have lost,” concluded Dato Isaac.

CMS Reassures Market of Sufficient Cement Supply

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Kuching (Sarawak), Sunday, 17 May 2020 – Following a recent outcry by some contractors that an inadequate supply of cement is hindering them from recommencing construction activities, Cahya Mata Sarawak Berhad (CMS or the Group) is stepping forward to reassure the market that there will be a sufficient supply of cement effective Monday, 18 May 2020.

In response to concerns by certain parties, CMS Group Managing Director, Dato Isaac Lugun had this to say: “We would like to reassure all construction players that an adequate supply of cement is being prepared for distribution to the market effective tomorrow and not after Gawai as inferred by some. In fact, as of 15 May 2020, the operation of the Group’s wholly owned subsidiary, CMS Cement Industries Sdn Bhd (CMS Cement or the Company) in Sibu was up and running in full compliance with all standard operating procedures (SOPs) outlined by the relevant authorities.”

“All the Company’s other cement production and distribution facilities are being prepared in full compliance with the stringent SOPS set and we anticipate that all our cement manufacturing operations throughout Sarawak will be in full swing by tomorrow. Barring unforeseen circumstances, this essentially means that the supply of cement will be made available to local businesses throughout Sarawak effective Monday, 18 May 2020 and not later as implied.”

Dato Isaac also went on to say, “The CMS Group realises its responsibility to provide an uninterrupted supply of cement to the state of Sarawak. In line with this, our business continuity plan mandates that we always have a minimum reserve stock of cement in our silos. Given that construction activities were not allowed during the Movement Control Order, this stock remains untouched and we are ready to meet the demand for cement once our operations commence.”

The CMS Group does not foresee any supply issues moving forward. Currently CMS Cement operates using a system of authorised dealers where it has over 25 dealers servicing its customers throughout the state. These dealers actually began taking orders from customers earlier last week. CMS Cement advises its customers to place their orders through their respective dealers and to ensure that their dealers in turn place their purchase orders accurately and in a timely manner with the nearest CMS Cement sales office.

The CMS Group operates production and distribution facilities in every major town within Sarawak. These include two plants in Kuching (the Mambong Integrated Plant and the Pending Grinding Plant), one plant in Bintulu (the Bintulu Grinding Plant), as well as bulk terminals in Sibu and Miri.

“Through our strategically located plants and terminals (all of which are outfitted with packing and bulk distribution capabilities), the market can rest assured that all of Sarawak’s main centres of economic activity, namely Kuching, Sibu, Bintulu, Miri, as well as the emerging markets of Samalaju, Mukah, Lawas and their hinterlands, will have a stable and sufficient supply of quality bag and bulk cement to meet their needs effective 18 May 2020”, added Dato Isaac.

CMS Cement produces the CEM 1 42.5N and 32.5N grades of cement. Through these products, it provides its customers a range of cement product types that meet general and specific project requirements at different price points. A third product, the premium grade 52.5N grade (MS EN 197-1 standard) Portland Cement, is produced for export purposes and to meet the needs of projects that have a specific need for a higher-grade cement.

 

CMS Cement to Recommence Sarawak Manufacturing Operations on 15 May 2020

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Kuching (Sarawak), Monday, 11 May 2020 – In line with the recent announcement by the Sarawak State Government that most economic sectors will be allowed to operate amidst the Conditional Movement Control Order (CMCO), CMS Cement Industries Sdn Bhd (CMS Cement or the Company) is currently readying its cement manufacturing operations  to serve the Sarawak market once again.

A wholly owned subsidiary of Cahya Mata Sarawak Berhad (CMS or the Group), the Company is preparing to recommence business by rigorously observing all standard operating procedures (SOPs) to ensure speed to market is addressed. At the same time, CMS Cement is activating business continuity plans to ensure the preservation of its cement manufacturing business once operations are up and running.

The recommencement of CMS Cement’s operations will see its Sibu terminal becoming operational on 15 May 2020, while all its other cement-related operations across the State will come into full force on 18 May 2020. As the Sibu terminal is a key supplier to the Baleh Dam Project, the commencement of its operations has been prioritised.

Commenting on CMS Cement’s preparations to recommence business, CMS’ Group Managing Director, Dato Isaac Lugun had this to say: “As we prepare to ramp up the Group’s cement manufacturing operations, we are prioritising the safety of our employees and customers by bringing three key initiatives into play.”

“The first initiative will see us adhering strictly to the comprehensive SOPs outlined by the Sarawak State Government and the Ministry of Health.  Secondly, CMS Cement will carry out full sanitization of all its facilities covering offices, production plants, packing and loading bays and weighbridges. Thirdly, CMS Cement will be conducting medical screening for its staff to ensure only those who are pronounced Covid-19-free are allowed back to work. All these activities must be done properly and cannot be rushed, so a target commencement date of 18 May is feasible.”

In addition to these key initiatives, CMS Cement is also taking measures to enhance its facilities by improving ventilation at its offices as well as installing more shower bays and rest areas. At the same time, basic controls such as personal hygiene and social distancing will be strictly adhered to. All these initiatives once fully implemented will not only safeguard the staff of CMS Cement, but also all others who frequent its facilities such as its customers, contractors and transporters.

“While the rules are being relaxed under the CMCO and people begin to get back to their daily activities under the ‘new normal’, we must remain vigilant in our fight against Covid-19.  We urge all other public and private sector organisations within Sarawak to not let down their guard but take the necessary measures to keep their people safe. By working together, we will get through this crisis and emerge a stronger and more resilient State,” added Dato Isaac Lugun.

OM Materials (Sarawak) Donates RM1.4 Million of Protective Wear to Safeguard Front-Liners

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Kuching (Sarawak), Wednesday, 22 April 2020 – OM Materials (Sarawak) Sdn Bhd, an associate company of Cahya Mata Sarawak Berhad (CMS), has stepped forward to donate RM1.4 million worth of Personal Protective Equipment (PPE) to government and medical front-liners.

The PPE comprising 10,000 disposable medical protective suits, 10,000 isolation gowns, 5,000 face shields, and 5,000 safety goggles will go a long way in safeguarding Sarawak’s front-liners tasked with the challenging duty of treating suspected and infected COVID-19 patients.

The donation was handed over today by CMS Group Managing Director, Dato Isaac Lugun and Mr Mustapha Bin Ismuni (both directors of OM Materials (Sarawak) Sdn Bhd), to Sarawak’s Deputy Chief Minister, Datuk Amar Douglas Uggah Embas (who is also the Chairman of the State Disaster Management Committee).

Commenting on the donation, the Executive Chairman of OM Materials (Sarawak) Sdn Bhd, Mr Low Ngee Tong said, “The COVID-19 pandemic is a global crisis of an unprecedented scale, no countries are exempt, and it has taken its toll on Sarawak. We are keen to assist the Sarawak Government in containing the spread of this pandemic”.

He added, “Given the limited capacity of current equipment supply chains, we are pleased to be able to sponsor the PPE as a show of our sincere support for the Sarawak Government, the front-line workers at Sarawak hospitals, and many others that have been working tirelessly in containing the pandemic. We sincerely hope that this small contribution will help ease the burden, and lift the spirits and confidence of front-line workers in discharging their challenging duties in treating COVID-19 suspect cases and patients”.

Commenting further on the donation, Dato Isaac Lugun said, “As a leading listed corporate entity in Sarawak, CMS will continue to support the Sarawak Government’s tireless efforts to contain the COVID-19 pandemic in Sarawak. We urge other corporate entities within Sarawak to step forward to lend their support. By working together, we will get through this crisis and emerge a stronger and more resilient State.”

CMS Donates RM1 Million to Help State in Time of Crisis

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Kuching (Sarawak), Tuesday, 7 April 2020 – As part of its efforts to help Sarawak mitigate the economic impact of the Covid-19 pandemic on the State, its people and businesses, Cahya Mata Sarawak Berhad (CMS) has come to the fore with a RM1 million donation towards the Sarawak State Disaster Relief Fund.

CMS’ Group Managing Director, Dato Isaac Lugun, handed over the donation to Sarawak’s Tourism, Arts and Culture Minister, YB Datuk Abdul Karim Rahman Hamzah who accepted it on behalf on Sarawak’s Deputy Chief Minister, Datuk Amar Douglas Uggah Embas (who is also the Chairman of the State Disaster Management Committee) at a brief handover ceremony held at Wisma Bapa Malaysia today.

Commenting on the donation, Dato Isaac Lugun said, “CMS fully appreciates the significant proactive efforts taken by the government to stop the spread of the pandemic . As the leading listed corporation in the State, CMS must lend a helping hand, in this unprecedented crisis, which we are doing today. We are also looking into the welfare of our suppliers and contractors.  We are making a special effort to settle all outstanding invoices from our suppliers and contractors to help alleviate the financial challenges that they are now facing.  All payments are made online so that the fund gets to them in a safe and speedy manner.”

He added, “Our hearts go out to the gallant doctors, nurses, administrators and supporting staff who risk their lives everyday by looking out for others. We salute their bravery and recognise the fine and crucial work they are all doing.

We trust other corporate entities will step forward to lend their support to the State. With a strong public and private sector cooperation, I am certain we will get through this crisis and emerge a stronger and more resilient State.”