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Sarawak
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These critical activities include,
amongst others, our ability to
continually
drive
shareholder
value, to ensure the well-being
of our employees, to ensure a
continued focus on improving our
product quality and to ‘Do Good’
while expanding our Corporate
Responsibility
activities.
These
and other economic activities
are essential to our make-up as a
responsible corporate entity, as such
we are absolutely committed to and
focussed on delivering long-term
sustainable economic growth.
ECONOMIC
THE ECONOMIC DIMENSION OF
SUSTAINABILITY REFERS TO THE CAPACITY
OF CMS TO GENERATE STEADY, IMPROVING
GROWTH IN RELATION TO OUR ECONOMIC
INDICATORS. WE VIEW THIS AS AN
IMPORTANT DIMENSION AS A STRONG,
STABLE AND SUSTAINABLE FINANCIAL
AND ECONOMIC SYSTEM SUPPORTS, NOT
JUST THE COMPANY, BUT VARIOUS OTHER
CRITICAL ACTIVITIES.
OUR EDGING STRATEGY
In a bid to counter sluggishmarket conditions, the lack of large scale greenfield
opportunities and operating constraints, we continue to explore the feasibility
of various significant growth opportunities. The new
Edging Strategy
, which
we rolled out in 2016, will see the Group focusing more closely on maximising
opportunities on the “edges” of our current businesses to create significant
growth.Often overlooked by companies, businesses in the “near field of vision”
or on the “edge” of a company’s range of focus often carry opportunities for
success with lower risks than a
Blue Ocean Strategy
or a greenfield expansion.
To this end, Senior Management in all our Core Divisions, excepting Samalaju
and ICT, have incorporated an
Edging Strategy
into their management plan
and budget for 2017. As an illustration, some of our strategies and goals for
2017 can be seen in the following:
“Edging” in Divisions
• Cement: New precast products, new cement types, exports, more private
sector sales;
• Construction Materials & Trading: New products, more services and
private sector sales;
• Property Development: Wider range of locations, Green products,
Property Development-initiated projects;
• Construction & Roads: More integrated works, widened concession
scopes, Lebuhraya Borneo Utara (LBU), new technologies, Construction &
Roads-initiated projects; and
• Capacity Output & Utilisation Rates: Identify lower output and rates, as
well as explore solutions.
“Edging” at HQ
• Processes: Continue incremental improvements in processes and results
to support growth;
• Financial Management: Maximise returns to commensurate with risk
profile;
• Procurement: To be competitive, effective and operate with integrity;
• IT: To operate in a secure, fast, user-friendly and disaster resistant manner;
• Corporate Communications: Improved communication of all our
messages; and
• Human Capital: Maximise realised potential of employees, sustain their
engagement and loyalty.
IN SUPPORT OF SARAWAK’S SUSTAINABLE GROWTH
As Sarawak’s leading infrastructure facilitator, CMS is committed to meeting
the needs of the State and helping transform it into a major regional economic
powerhouse. In 2016, we rolled out several initiatives that underscored our
commitment in this area.
Catalyst for change
On 8 November 2016, our Cement Division achieved a notable milestone
when it officially launched East Malaysia’s first Integrated Cement Plant.
Through combining the Division’s largest cement plant and its adjoining
clinker plant into a single entity, the new plant aims to meet the rising demand
for cement as the State undergoes rapid development with big projects such
as the Baleh Dam and the Pan Borneo Highway. It will also enable CMS to have
significant reserve production capacity to materially reduce the risk of supply
disruptions, pump supply into nearby export markets, as well as to produce
more than one type of cement.