Annual Report 2012 - IOI Group

The Malaysian property market outlook is expectedto remain positive especially in the landed propertysegment. With the Group’s proven track record intownship development as well as the good locationof our townships, we are confident that the Groupwill perform better in FY2013. As for our developmentprojects in Singapore, the continued resilientperformance of the mass market segment willensure that the Group’s more recent mass marketprojects continue to do well, although the high-endmarket segment is still affected by uncertainty in theglobal economic environment and cooling measuresintroduced by the Government of Singapore. Overall,the Group remains optimistic on the long-termprospects of its property development business. Aspart of the Group’s strategy in boosting up itsinvestment properties portfolio, the Group hasembarked on its flagship project called IOI CityDevelopment comprising a mega shopping mall,two office towers and a hotel in Putrajaya. This newaddition will provide the Group with stable recurringincome as well as potential capital gains in thefuture.The Group’s resource-based manufacturing divisioncontinues to face margin pressures due to Indonesia’sdifferential export duty structure. However, thissegment should still perform satisfactorily due toresilient demand from the food industry for specialtyoils and fats and the established multinationalcustomer base enjoyed by both our specialty fatsand oleochemical business.ACKNOWLEDGMENTSDespite the many challenges faced, the Group hasperformed satisfactorily during the year underreview. I wish to express my personal gratitude andappreciation to our Management and all ouremployees for their contribution, dedication andloyalty throughout these challenging times. Inaddition, I would like to take the opportunity toextend a warm welcome to Mr Cheah Tek Kuang,who was appointed to the Board effective from 22August 2012.I also wish to thank all our customers, businesspartners, Government authorities, shareholders andfellow Board members for their continued strongsupport to the Group.Thank you.TAN SRI DATO’ LEE SHIN CHENGExecutive ChairmanTop: The environmentalfriendlySouth Beachdevelopment in Singapore wasaccorded two Building &Construction Authority (“BCA”)Green Mark Platinum Awardsfor its Residential andCommercial components.Bottom: An artist’s impressionof IOI City Mall; a maincomponent of the 36-acre IOICity Development locatedwithin IOI Resort City,Putrajaya.Annual Report 2012IOI CORPORATION BERHAD 11