A N N U A L R E P O R T 2 0 0 1 - IGB Corporation Berhad

REVIEW OF OPERATIONSits construction, property development, manufacturingand quarrying as well as plantation divisions.The construction division maintained the mainstay ofthe group and account for 58.6% of its pretax profit.All other operating divisions, namely propertydevelopment, plantations, manufacturing andquarrying also showed improvement and maintainedtheir positive contribution to the group.During the financial year 2001, the constructiondivision secured a record RM1.77 billion worth ofconstruction contracts locally as well as overseas.Additionally, the leading position of IJM in theindustry was highlighted by the Builder of the Year2001 Award conferred by the Construction IndustryDevelopment Board.The year 2001 saw the completion and handing overof eight construction projects to clients. Notableprojects completed include the Pelabuhan TanjungPelepas Rail Link Project in Johor; Pantai MedicalCentre Extension in Bukit Pantai, Kuala Lumpur andChennai Bypass Phase 1 (connecting NH-4 andNh-5) in Tamil Nadu State, India.CORPORATE PLANS AND DIRECTIONIn line with the new corporate directions set forth inthe Merger, the Group had reviewed its activities,strategies and resources to rationalize its corebusinesses into strategic business groupings toimprove management efficiency, operationalstreamlining and the realization of synergies in a moreeffective manner as well as to bring eachdivision forward to fit in with the Group’s long termgrowth objectives. The Group’s businesseshave henceforth been strategized into distinctdivisions such as, property investment, propertydevelopment, property management, constructionmanagement and hotel. Property development andproperty management will spearhead the drive bythe Group to enhance its profitability and will bejoined by the Group’s other core businesses ofproperty investment, construction managementand hotel operations. Those non-core businesseswill be sold or downsized. At the same time, newbusiness ventures and opportunities, complementaryor synergistic to the Group, will continuously andproactively be pursued to widen the Group’searnings base.With the above objective in mind, high onthe Group’s agenda are efforts directed atstrengthening IGB from within and shaping a strongerfuture for the Group. To this end, the Group hasintensified its review directed towards maximizingvalue and returns from its assets. The Group will alsocontinually review all growth opportunities to ensurethey meet the strict criteria in terms of investmentreturn and impact on the Group’s financial position.In the Group’s continuing drive for constantexpansion and development, uppermost on the listof activities planned are to develop the balance ofthe existing site in Mid Valley City into its secondphase as well as to expand the hotel chains underthe Cititel brand. Plans are in place to expand theflagship of the Mid Valley Megamall to build a‘slightly higher class shopping mall’ as an extensionto the existing structure, with the objective toincrease visitations and add value to the centre. Theexpansion is also consistent with the Group’sstrategy to diversify its earning base by venturing intoproperty investments with sustained rental income.I must say that the unwavering support thatwe continue to enjoy from our customers isundoubtedly the strongest motivating factor for ourIGB Annual Report 2001 51