Pg 147 - Berjaya Corporation Berhad

Berjaya Redang Beach and Spa Resort, Terengganu.drivers: (a) higher education programs within its existing globalnetwork of centres; (b) licensing its higher education programs toindependent private institutions globally; (c) distributing its highereducation program through its e-learning portal Purpletrain;(d) moving strongly into the growing professional and skillsdevelopment, vocational and training business; and (d) reachingout to other global students (outside its franchise network ofcentres) through its subsidiary NCC Education (UK).FUTURE OUTLOOKEconomic growth for the second half of the year is expectedto remain satisfactory as the Government makes adjustmentsto absorb risks from high oil prices and inflationary pressures.Nevertheless, domestic demand is forecasted to remain resilient,sustained by higher household disposable income arising fromfirm commodity prices, improvements in the performance of thestock market and a stronger Ringgit. Given this backdrop, theoverall outlook for the hotel and travel industry is expected toremain favourable in the current financial year.In the coming months and all through next year, our domestichotels and resorts will actively participate in the Visit Malaysia Year2007 activities and are poised to benefit from the higher inflow oftourists. The BHR division will continue to focus on strengtheningits marketing position, improving operational competitiveness,upgrading its properties and setting higher benchmarks for servicestandards, all of which form essential components in maintaininga competitive edge.The Timeshare Vacation Ownership market, on the other hand, isexpected to slow down due to the maturity stage of the industry,general market conditions and adverse publicity in recent months.In view of such demanding market conditions, the company willbe streamlining its staff force into a leaner structure in a move thatwill increase the efficiency and effectiveness of its operations.The future outlook for the Property Division remains upbeat. Witha wide product range that caters to all segments of the residentialmarket, the division’s diversification strategy has resulted in awider market segment, making it possible for the division to crosssell and enable the different components to feed on one another.The operating environment for legalized number forecast operatorsin Malaysia are highly regulated as they operate under strictGovernment policies and guidelines. In spite of this, the potentialfor growth remains strong as the industry is closely linked toconsumer spending patterns and sentiments. The increasingcrackdown on illegal number forecast operators by the authoritiesaugurs well for the industry which views the illegal market as itsmain competitor. With Sports Toto’s extensive network of outletsthroughout the country and the broad variety of games offered,opportunities exist for the company to achieve further marketpenetration and tap the industry’s revenue growth potential.DATO’ ROBIN TANChief Executive Officer30 August 2006The soon to be launched officeproject in Kuantan, Pahang.Berjaya Land Berhad (201765-A) Annual Report 200617