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Enhancing Value for Shareholders
In line with the Keppel Group’s direction, Keppel Land
will strive to achieve higher return on equity as the
Company transforms itself to become more
development-based with less emphasis in investment
property holdings. The Company will also focus on
structuring asset-light deals which produce good
earnings without the commitment of heavy capital.
The Economic Value Added (EVA) approach has been
adopted, and is one of the financial performance
indicators tracked regularly. Eventually, EVA targets
will be incorporated into the staff’s performance
management system to align their interests with those
of the Company.
The Company will continue to enhance shareholder
value by leveraging on the intangible assets that are
not captured in the balance sheet, but which the
Group has grown over the decades, namely the
Company’s brand name, management expertise,
networks and regional presence. These strengths are
currently being leveraged on to grow the property
fund business.
I would like to thank our staff for their willingness and
understanding in making sacrifices during this difficult
time. Since January 2002, management has taken a
pay-cut of 7-10% and wages have been frozen across
the board.
I would also like to welcome two new directors,
Mr Lim Ho Kee and Associate Professor (Dr) Tsui Kai Chong,
to the Board. With their valuable experience, I am
confident they will contribute to the re-making
of Keppel Land.
Finally, I would like to take this opportunity to thank
shareholders, business partners and customers for
their support. Prospects ahead are challenging as the
markets in which Keppel Land operates in continue to
undergo political and economic change. However,
with the support of all stakeholders, Keppel Land is
cautiously optimistic that it will stage a turnaround in
2002, barring unforeseen circumstances.
Chairman’s Message
15
Acknowledgements
As the Singapore economy heads for a re-making,
there will be implications for the real estate business.
I encourage staff to continue to change their mindsets
and acquire new skills to be adept at the asset-light
approach that the Company has embraced.
Lim Chee Onn
Chairman
Singapore, 22 March 2002