MKH Annual Report 2018

34 MKH Berhad Annual Report 2018 SUSTAINABILITY REPORT Our Property Development and Construction Division has developed a wide range of successful property products to include integrated townships, transit-oriented developments, and a ordable homes that caters well to various market demands. We also acknowledge that strategically joining forces with fellow industry peers is a key factor in making a growing company successful. In line with our continued e orts to expand our land bank, our constant exploration for joint- venture opportunities has enabled the Group to identify and engage development opportunities with relatively lower upfront financial commitment. Partnering to develop a project also presents our Property Development and Construction Division with the opportunity to adopt new specialised knowledge in the construction industry, which further enhances our product o erings for the greater community. Through our joint-venture company Panasonic Homes MKH Malaysia Sdn Bhd established in 2016, we began to apply the pre-fabricated Industrialised Building System in the development of low-rise residential homes in our ongoing township development Hillpark @ Shah Alam North. With the aim of improving field production at our oil palm plantation, we have mechanised labour-intensive field operations resulting in average improvement of 20% in man-day productivity. Careful selection of machinery based on terrain conditions ensured maximum e ectiveness for harvesting and evacuation of FFB, shortening the transportation time of crops to the mill. This in turn ensured minimal double-handling of crop evacuation, resulting in optimum oil extraction rate and quality CPO. As the Plantation Division has loan borrowings mainly in United States Dollar (“USD”), and as such is exposed to movement in foreign exchange, we are vigilant in managing the foreign currency exchange movement and mitigate the e ect through exporting some portion of the CPO produced to generate USD income, resulting in a natural hedge. Artist's impression of ongoing transit-oriented high-rise development MKH Boulevard II located next to Kajang KTM and MRT Interchange Station We respect fellow industry peers and appreciates each engagement and collaboration opportunity to generate greater value for all