Eng - IOI Group

management’sdiscussionandanalysis • review of core business operationsINTRODUCTIONThe Group’s property businesses comprise property development and investment and property development remains thecore business of the Group. These activities are principally carried out by our 65% owned listed subsidiary, IOIProperties Berhad.The Group’s property development projects are mainly located in Puchong in the Klang Valley and Southern Johor, eachinvolving sizeable tracts of land planned for self contained townships whilst property investment comprises officebuilding and retail space are mostly located in our self contained townships.The Group’s competitive advantage is in township development where we are well located in growth corridors, haveexcellent track record to draw demand and have the flexibility in planning and in tailoring product mix to prevailingmarket conditions.OPERATIONSWe experienced a declining trend from the first to the third quarter of FY 2003 due principally to the unfolding of a spate ofnegative events which affected the overall sentiment of house buyers despite the availability of low mortgage rates.61IOI Corporation BerhadAnnual Report 2003