MISC Annual Report 2017

103 Strategy & Performance BUSINESS RISK & MITIGATING ACTIONS Summary of Business Risk Mitigating Actions  • Deferment or cancellation of offshore projects due to the prolonged Oil & Gas sector slump. • MHB has strategies through business diversification into non-offshore construction business and other product expansion while bidding beyond the region and increasing market presence. This is done through developing new collaboration with other partners to leverage on their global presence for full-fledged EPCIC projects. • MHB has also embarked on initiatives to ensure the bidding price is competitive to improve its success rate. • A productivity improvement initiative was also implemented to achieve operational excellence, manage wastages and idling to reduce leakages and ensure optimisation of project profit through material management and cost management efficiency. • Improve asset utilisation and capacity expansion. Construction work of Dry Dock No. 3 has commenced and this will provide additional capacity and overall flexibility of arrangement in various dry docking works. MANAGEMENT DISCUSSION & ANALYSIS MARINE & HEAVY ENGINEERING