Singapore Construction Sector The Building and Construction Authority (BCA) projects the total construction demand, i.e. the value of construction contracts to be awarded, to range between S$47 billion and S$53 billion in nominal terms in 2025. The strong demand is underpinned by the expected award of contracts for several large-scale developments, such as Changi Airport Terminal 5 (T5) and the expansion of the Marina Bay Sands Integrated Resort, alongside public housing development and upgrading works. Other contributors include high-specification industrial buildings, educational developments, healthcare facilities, Mechanical and Engineering contracts for the Thomson-East Coast Line Extension (TEL) and Cross Island Line (CRL), and infrastructure works for the Woodlands Checkpoint extension and the Tuas Port. Over the medium-term, BCA expects the total construction demand to reach an average of between S$39 billion and S$46 billion per year from 2026 to 2029. Our subsidiary SPC Industries Sdn. Bhd. (“SPC”) has very strong track record in the supply of precast components including TLS, concrete rail sleepers and jacking pipes to large public sector infrastructure projects in Singapore including Singapore MRT projects, Deep Tunnel Sewerage System Phase 2 and Singapore Power’s underground cable tunnel. Further, SPC has been a frequent supplier of IBS components to various projects in Singapore. With its strong track record in Singapore, SPC is well positioned to compete for further potential sales orders from Singapore. MANAGEMENT DISCUSSION AND ANALYSIS DIVIDEND POLICY While we do not adopt a formal dividend policy, our Company has been declaring dividends every year since its listing on the Main Market of Bursa Malaysia Securities Berhad in 2010. In respect of FY2024, the Board recommends a final single tier dividend of 2.0 sen per ordinary share. The recommended final dividend is subject to the shareholders’ approval at the forthcoming Annual General Meeting. Our Company is always mindful to reward our loyal shareholders who have supported our growth over the years while trying to strike a balance with the funding needs at our different development phases. Property Development Division The Group began the sales of a service apartment development project in Masai, Johor, namely Pinegate Residency Phase 1, with estimated gross development value (“GDV”) of approximately RM300 million, in January 2025. Further, its associate company, Astaka Kimlun Sdn Bhd, launched a service apartment development project in Johor Bahru, Johor, namely Arden Residence, with estimated GDV of approximately RM800 million, in March 2025. The developments receive encouraging response from the market and are expected to contribute positively to the Group’s profit. The Group expects to submit its development planning applications in relation to few of its land banks for the relevant authorities’ approval this year. 025 ANNUAL REPORT 2024
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