UEM EDGENTA BERHAD ANNUAL REPORT 2021 1 2 3 4 5 6 7 MANAGEMENT DISCUSSION & ANALYSIS 71 70 BUSINESS REVIEW BUSINESS REVIEW ASSET CONSULTANCY Our Asset Consultancy division, represented by Opus Consultants has a strong track record of delivering service excellence in asset consultancy & management, engineering design & consultancy, project advisory, planning & management as well as research and development. The Group’s mission is to bring the best out of clients’ investments through innovative and practical solutions, effectively making us a leader in the Asset Consultancy industry. KEY FOCUS AREAS Project Management Engineering & Technical Asset Management FINANCIAL PERFORMANCE REVENUE (RM mil) • Continue to pursue opportunities in the Pan Malaysia Strategy, and explored opportunities to expand our footprint in other markets • Incorporate innovative project funding solutions in our project proposals • Evaluate our position and opportunities in emerging areas within the ESG space • Continue to become an integrator of technology to modernise Project Management and Asset Management services • Continue to enhance resources capabilities via training programmes to increase competitiveness MITIGATING ACTIONS • Uncertainty in the infrastructure sector • Postponement by the Government on anchor projects such as Klang Valley Mass Rapid Transit 3 (“KVMRT”) project and Klang Valley Double Tracking Phase 2 (“KVDT2”) project • Slow project progress during COVID-19 pandemic KEY CHALLENGES 2021 82.5 2020 88.1 PBT (RM mil) 2021* 2020 Expand business capabilities by offering new services • Collaborated with a Rail Technology Partner for Asset Management in Rail • Secured Keretapi Tanah Melayu Berhad (“KTMB”) Rolling Stock Procurement Consultancy Service with an emphases on the asset life-cycle approach, the work marks OPUS’ first foray into rail asset management • Secured our first 1-year contract to provide Independent Safety Audit services for the Sungai Besi – Ulu Kelang Expressway (“SUKE”) project KEY INITIATIVES Actively pursue new markets and opportunities • Secured a 3-year NMM contract for the North-South Expressway (“NSE”), NorthSouth Expressway Central-Link (“ELITE”), Malaysia Singapore Second Crossing (“LINKEDUA”), Butterworth-Kulim Expressway (“BKE”), Penang Bridge and LPT2 • Received an Extension of Time and Scope with a cost from the Sarawak Pan Borneo Highway contract for Independent Consulting Engineer (“ICE”) services • Entered initial stage of establishing a joint venture with PPES Consults Sdn. Bhd. as a strategic partner to strengthen our position in Sarawak RESULTS On-going Initiatives • Completed assessment of our first field trial on sustainable pavement technology using the cold recycled mix in collaboration with Taiping Municipal Council • Commenced the second field trial on the cold recycled mix at the NSE • Initiated trial for drone technology application using photogrammetry for asset inspection works on road and rail assets Deploy cutting-edge technologies to inspire sustainable outcomes • Accelerated local capacity building to support expansion into Sabah and Sarawak • Amplify business development activities to pursue infrastructure opportunities Intensify implementation of our Pan Malaysia expansion strategy OUTLOOK • We expect challenges to remain in the infrastructure sector, as spending priorities may continue to revolve around COVID-19 related matters • Thus, in the current market environment, we believe innovative funding is a probable option to stimulate the infrastructure industry • The Business will continue to explore opportunities in environmental sustainability initiatives in order to support Malaysia’s climate change adaption and plan to be carbon-neutral by 2050 KEY ACHIEVEMENTS Renewal of Network Maintenance Management’s contract for North-South Expressway and Lebuhraya Pantai Timur 2 for a duration of 3 years through a concessionaire agreement Commenced construction of 5 cable-stayed bridges in Sarawak Coastal and Second Trunk Road (“CSTR”) Project, where Batang Lupar Cable-Stayed Bridge 2 will have the longest span length of 450 metres in Malaysia Appointed by Projek Lintasan Kota Holdings (“PROLINTAS”) to provide Independent Safety Audit Services for a period of 1 year for Sungai Besi – Ulu Kelang Expressway Project Executed indicative term sheet for a proposed joint venture with PPES Consults Sdn Bhd, a wholly owned subsidiary of Sarawak Economic Development Corporation (“SEDC”) through Opus Consultants (Sarawak) Sdn Bhd (19.4) 8.2 * Including one-off staff rationalisation cost for Built Environment team and impairment for receivables from a Client
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