MISC Annual Report 2017

35 Strategy & Performance MISC2020 JOURNEY PRIORITIES OBJECTIVES JOURNEY SO FAR (2017) MOVING FORWARD (2018-2020) Offshore Business • Explore acquisition opportunities arising from asset divestments by Oil & Gas players globally. • Pursue organic growth when oil price recovers. • Remain active in exploring acquisition opportunities in the domestic and international market. • Actively participated in bidding exercises for offshore projects in South East Asia, Brazil and India. • Successfully negotiated contract extension for existing charter contracts. • Continue pursuing potential projects in Asia and expanding international footprint. • Build strategic alliances to strengthen capability in deepwater assets. • Increase capacity and capability to bid for large scale deepwater projects. • Design comprehensive project and country based financing framework with selected lenders, financiers and investors. Marine & Heavy Engineering • Develop larger recurring income base e.g. marine repair business. • Commenced construction work of Dry Dock No. 3 that offers additional capacity in the marine repair business. • Obtained license to provide downstream plant maintenance and turnaround services to PETRONAS. • Established partnership with international player to bid for the PETRONAS Integrated Downstream Contract. • Continue developing Oil & Gas services capability for onshore (plant maintenance & turnaround, process module fabrication) and offshore (Hook-Up and Commissioning (HUC) & Platform maintenance). • Manage cost and process efficiency. • Revised commercial bidding procedure for process standardisation. • Ongoing cost database initiatives to help reduce time, ensure price consistency and improve bidding process efficiency exercise. • Develop partnership with vendors and subcontractors by identifying 2 to 3 reliable key subcontractors for each discipline (i.e piping, blasting & painting, structural etc) to develop a win-win partnership model. • Strengthen onshore construction & fabrication capabilities. • Focus on price competitiveness and operational excellence via bid cost reduction and productivity improvement initiatives. • Up-skilling manpower through capability development programme.