Completion of Komplek Dewan Undangan Negeri Sarawak

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MESSAGE FROM
THE GROUP MANAGING DIRECTOR
Firstly, let me express my appreciation
to everyone, especially to the staff
members of Bina Puri Group of
Companies. Thank you and may
everyone in good health, enjoy the
happy moments with your family.
In 2008, Bina Puri remained focused and
resilient in under difficult conditions and
downturn experienced throughout the
world by continuing to secure new projects
while completing a few landmark projects
in our order book. Indeed, we were also
recognized by our country’s Construction
Industry Board (“CIDB”) as Malaysia’s “Best International Builder”.
We registered a record revenue of RM676.5 million and pre-tax
profit of RM8.13 million. Although revenue increased by eleven
percent (11%), pre-tax profit declined by 5%. This was due to
escalation of construction raw materials which had spiraled
upwards on average by more than 50%.
We believe new opportunities have started to open up with the
timely introduction of a number of fiscal and financial initiatives
undertaken by the Malaysian Government to strengthen the
domestic economy as shown by the RM67 Billion stimulus
package. With our Bina Puri’s excellent performance and track
record, we are confident that we will be one of the major
beneficiaries to undertake some of the earmarked projects, thereby
adding value to our stakeholders. Our commitment to building
shareholders’ value, our experienced operations staff together with
our long standing ties with suppliers and sub-contractors are part
of our core value.
Our prospects remain vibrant, with a total book order of RM2.7
billion which consists of projects in Malaysia and overseas, namely
United Arab Emirates, Brunei, Pakistan and Thailand. In 2008, the
Group secured RM 830 million new projects with a higher
percentage of it in Malaysia (85% ) as compared to the previous
year (43%). Recognition and accolades have encouraged Bina Puri
to raise our standards further. As mentioned, we were proud
recipients of the CIDB International Achievement Award for our
projects in Thailand and the Innovative Award for the Bangplee
Project in Thailand.
The Construction Division will continue to be the core driver of the
Group as it accounts for 80% of the Group’s revenue. With raw
materials stabilizing, we anticipate that this division will have a
better year.
Our 50% associate, KL-Kuala Selangor Expressway Bhd, (KLSEB),
the concessionaire for KL-Kuala Selangor Expressway (KLS
Expressway), has finally started construction of the RM958 million
expressway after close to 10 years of anticipation. The
construction works had commenced on 28 October 2008 with
Mudajaya Corporation Berhad appointed as the Turnkey
Contractor after going through a competitive tendering and
evaluation process. The KLS Expressway is targeted to be
completed by 2011. On 13 January 2009, KL-Kuala Selangor
Expressway Bhd, has successfully achieved its financial close with
Bank Pembangunan Malaysia Berhad for the Istisna’ Facility of
RM740.0 million and Islamic Development Bank for the IstisnaaWa
Ijaraara’ facility of RM300.0 million.
The Property Division recorded an impressive revenue of RM46.9
million (RM35.6 million in 2007) and a profit before tax of RM3.1
million (RM2.6 million in 2007).The improved results were due to
progressive profits recognized from the Jesselton Condominium
and Taman Malawa Jaya, Phase 2 sold during the year. Having
successfully launched Phase 2 of Taman Malawa Jaya in Kota
Kinabalu, which comprised of 4 storey walkup Apartments totaling
96 units, the Property Division is now focusing on launching its
latest development in JesseltonView@Hilltop comprising 1 block
of 80 units of modern and contemporary condominium built over
2 acres of land.
This new development is located at the highest point in Hilltop
Luyang, Kota Kinabalu, a well sought after address. Jesselton View
@ Hilltop will be another niche development after the success of
our high end 15-storey Jesselton condominium at Jalan Bersatu off
Jalan Damai, Kota Kinabalu which is now recognized as one of the
top address in the city.
The quarry and ready mix concrete division recorded a revenue of
RM91.2 million (RM107.8 million in 2007) and a profit before tax
of RM2.8 million (RM3.3 million in 2007), while the Polyol Division
recorded a revenue of RM18.7 million (RM23.3 million in 2007)
and a profit before tax of RM20,000 (RM961,000 in 2007).
The year 2009 looks to be a promising year. While executing the
many projects that are on-hand,we are also aggressively bidding
for new orders within and outside Malaysia. We are confident of
securing more than RM1.5billion in new projects for 2009 as a
whole as our success rate over the past few years have been good.
Until 15th May 2009, we have managed to secure new projects in
excess of RM1billion, with the major portion of it being the RM693
million contract to build 2,000 houses in Brunei. We believe Brunei
will be a promising base for the Group as Thailand was in 2006.
We also hope the KLS Expressway when completed in 2011, will
assist to bring the Group recurring income. We are confident that
the other divisions will perform better as everyone will be extra
motivated to achieve targets with new Key Performance Indicators
are being set for each divisions and departments.
Our staffs are the most valuable resource and are vital to the
Group. Recently, we awarded The “Best Employee Awards” to
recognize the achievements and contributions of each individual
to the Group. Congratulations to the receivers.
Our active Kelab Sukan & Sosial Bina Puri had initiated many
activities including outing, bowling tournament, badminton
tournament, table tennis tournament and others. These activities
serve as a platform of interaction and communication between the
members in the Group. The Sports Club led by Tuan Syed Nasser
is currently planning on the Group’s family day which will be held this year. I would
like to encourage all staff to stay healthy by participating in sports events
organized by the Sports Club or if not, at your own initiative. Staying fit and
healthy is an important ingredient towards quality living both at work and at
home. Malaysians in general tend to neglect exercise while enjoying excess
consumption of food.
Bina Puri has always supported the Government’s call to be a good corporate
citizen. We supported the National Blood Bank, where Blood Donation Drive are
organized periodically at the Head Office in Selayang and we made contributions
to Sichuan Earthquake, China and the Gaza-Palestin Campaign.
Last but not least, we encourage individuals to excel in their studies and academic
performance. For that reason, we provide Undergraduate Scholarship Awards to
our employees’ children pursuing degree and professional courses and presented
the Educations Incentives for students and staff who perform well in their
examinations and studies for primary, secondary, tertiary and professional levels.
Finally, let me once again express my appreciation to the staff and management.
We shall strive to work together and harder in achieving our goals. May good
health be with all of us and our family members.
SENATOR TAN SRI DATUK TEE HOCK SENG, JP
Group Managing Director
BULETIN
B O A R D
MAY 2009
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ADVISOR
YB Senator Tan Sri Datuk Tee
Hock Seng, JP
EDITORIAL BOARD
Chief Editor
Surati Sujor
HQ
Nor Paizah Abd Wahab
Mohd Yusof Kasiron
Mohd Badrun Arshad
Sabah/Sarawak Office
Patricia Pereira
Supporting Writers
Matthew Tee
Norhalizah Alias
Erniza
Saripah Mohamad
Simaporn Sumklang
M. Natthanicha
Mehwish Raza
Linda Lim
Suraya Mat Arif
Chin Yoke Yin
Human Resources
Department
Joanne Ng
Elaine Keh
Jane Lee
Jenny Tan
Innes Chen
Cheng Kai San
Sia Bee Yoke
Ronaiza Abd Ghani
Low Yoke Lan