MANAGEMENT DISCUSSION AND ANALYSIS PROSPECTS AND OUTLOOK The Group has an estimated construction and manufacturing balance order book of approximately RM1.38 billion and RM0.35 billion respectively as at 31 December 2022, contributed by numerous construction contracts and supply contracts. The balance order book is expected to support the Group’s performance in 2023. Notwithstanding, rising cost of raw materials, higher energy costs and commodity prices and shortage of workers will continue to weigh on our operation and profitability. In response to these challenges, the Group has taken measures such as placement of advance bulk purchase orders to lock in raw materials supply at a better bulk purchase price, adoption of IBS construction, whenever possible, to reduce reliance on labour, and negotiate with suppliers for early payment discount. Other than the aforesaid challenges, other key challenges and risks include operational, credit, liquidity, human resources and market risks. Please refer to pages 60 to 61 of this Annual Report for nature of the key risks and the Group’s control measures to mitigate the risks. • • • Focus in the execution of projects in hand Leverage on the diversified construction services track record to bid for new public and private sector projects Undertake in-house projects CONSTRUCTION DIVISION • • • Bid for precast products orders from Singapore and Malaysia markets, including those in relation to MRT line, rail line and private sector IBS orders Establish new market for quarry products Expansion of production line MANUFACTURING DIVISION • • • Development of 60 units of semi-detached houses in Johor with GDV of RM66 million Launching of 16 units of bungalows in Selangor with GDV of RM48 million Development planning of land bank in hand and in the pipeline PROPERTY DEVELOPMENT DIVISION FOCUS AND STRATEGIES FOR 2023 Annual Report 2022 24
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