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and upgrade the country’s existing railway network with
several rail-based infrastructure projects earmarked to
be implemented in the near future.
Projects that are of particular interest to the Group are
the high-speed rail link between Kuala Lumpur and
Singapore, KVMRT Line 2 and 3, the southern Electrified
Double Track Project from Gemas to Johor Bahru, the LRT
3 extension project, as well as the East Coast Rail Route.
We envisage that with our good track record and
established capabilities in rail construction and
tunnelling, the Group will be in a strong position to
assist the Government in implementing some of its
initiatives, especially in rail infrastructure projects.
As for the property division, the property outlook for the
Group is good despite the cooling measures put in place
by Bank Negara Malaysia to calm rising prices in the local
property market and a subdued economy in Vietnam.
Based on the division’s sales projection, the division
expects further growth in FY2014.
The property market in Vietnam, however, is expected to
remain subdued for FY2014, but with the completion of
Celadon City’s two residential blocks and Aeon retail mall
by year end, sales should pick up. The division projects
a gradual recovery in its property sales in Vietnam from
FY2015 onwards.
The property development arm’s focus is now geared
towards maintaining the growth momentum by continuing
to engage in new property projects. New developments in
the Klang Valley, such as the Madge Mansions and The
Robertson, would contribute to the division’s short-term
earnings while the more recently acquired land in Kelana
Jaya and Rawang South will contribute to the division’s
earnings portfolio in the medium-term.
Despite the optimism, the Group also remains cautious,
given the highly competitive environment in the present
engineering and construction, infrastructure concessions
and property development businesses in Malaysia. Our
attention is directed at accelerating our operational
transformation as the game changer in the industry.
We will continue to strengthen and diversify our technical
capability, improve operational efficiency, manage our
expenditures prudently, and grow our business profitably
and responsibly.
In view of the many domestic opportunities, we shall
continue with our domestic focus, nurture our talents and
further improve our skills set to ensure that we remain
ahead of the competition.
Key risks for the Group include an unexpected economic
downturn, significant changes in Government spending
policies, unfavourable raw material price movements,
unforeseen problems or delays with the execution of
the KVMRT project, or additional drastic measures
implemented to curb the local property market. In
Vietnam, our property business continues to be sensitive
to the overall economic climate and the market response
to our product offerings.
On behalf of the Board, I would like to congratulate and
pay tribute to our employees for their hard work and
dedication that have contributed to the Group’s record
earnings. Our sincere thanks and appreciation to all our
shareholders, business partners, customers and all our
stakeholders for their unyielding confidence and support
towards the Group.
Last but not least, I also wish to thank my distinguished
colleagues on the Board for their invaluable support and
contribution throughout the year.
013
Performance
Review
Gamuda Berhad (29579-T)
Annual Report 2013