cover rationale - ChartNexus

ENGINEERING, CONSTRUCTION AND
OVERSEAS OPERATIONS
The Group continues to play a major role in
the nation’s civil engineering and construction
sector. Through its subsidiaries, MRCB
Engineering Sdn Bhd (MESB) and Zelleco
Construction Sdn Bhd (ZCSB), MRCB has
established a strong track record in this
industry. Amongst past projects that MRCB has
successfully completed in the past include the
new Tawau Airport, numerous power plants
and the Plaza Sentral office blocks at Kuala
Lumpur Sentral.
During the financial year under review, the
Group continued to build on this core
expertise and successfully completed the
building of the RM200 million Matriculation
College in Labuan for the Ministry of
Education. For this project, MRCB was
responsible for the design, construction,
commissioning and maintenance of the
sprawling campus, which can accommodate
3,000 students. Labuan is a growing
international offshore financial centre and the
Matriculation College is a symbol of its
aspirations as a regional centre for education.
Given the difficult operating and logistic
conditions, the completion of the project
within a tight fourteen-month schedule and to
receive the satisfaction of the client was no
small achievement. The college is a testimony
to the quality and timely delivery assured by
MRCB’s construction division.
At the international level, MRCB continues the
development of the Pearl Valley Signature Golf
Estate & Spa in the Winelands District of
Capetown, South Africa. The first 9 holes of
the Jack Nicklaus-designed 18-hole golf course
will be opened for play in January 2003 with
the remainder in April 2003. The project also
includes the development of 500 residential
plots, each enjoying a breathtaking view of
the surrounding mountains, vineyards and
orchards.
On the corporate level, MRCB has entered
into a sale and purchase agreement to divest
a majority 70% stake in Zelleco Engineering
Sdn Bhd (ZESB) for a nominal consideration of
RM1 only. As part of the divestment, ZESB
undertakes to pay MRCB RM10.5 million. The
business decision to divest arose as the steel
structure fabrication is no longer seen to be a
core component of the engineering and
construction division. A strategic minority stake
will be retained to ensure continuity of supply
as and when necessary.
For the future, MRCB intends to leverage on
its good track record and expertise in the
construction sector to achieve its target of
securing a total order book value that reflects
its status as one of the premier engineering
and construction groups in Malaysia. The
Group is confident that this can be achieved
by seizing opportunities in the Malaysian
Government’s pump priming strategy,
particularly in large-scale infrastructure
development announced under its RM7.3
billion fiscal stimulus package in 2001. The
Group will also take advantage of
opportunities opening up in developing
countries due to globalisation and trade
liberalisation.
ENERGY
The Energy Division continues to support the
Group’s focus on its core activities related
to power generation, transmission and
distribution. In light of the revitalised demand
Laporan Tahunan 2002 Annual Report
OPERATIONS REVIEW
67