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新加坡telegram群组(www.tg888.vip)_Mudajaya poised for growth

admin2022-06-224

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,Group managing director and chief executive officer James Wong Tet Foh said: “It has been a tough two years but we have managed to return to profitability with our strategic thrust towards renewable energy, tighter controls on overhead spending, as well as the initiatives we have undertaken to reduce debt and improve working capital.”

PETALING JAYA: Mudajaya Group Bhd, which recently returned to the black, is poised for growth, especially in its power segment which had bolstered the group’s profit.

In a statement following its AGM yesterday, group managing director and chief executive officer James Wong Tet Foh said: “It has been a tough two years but we have managed to return to profitability with our strategic thrust towards renewable energy, tighter controls on overhead spending, as well as the initiatives we have undertaken to reduce debt and improve working capital.”

According to the statement, one of the key challenges faced by the group, besides the disruption arising from the pandemic, was the shortage of workers.

In an interview with StarBiz, Wong said: “We are fortunate that we still have the foreign workers with us during the pandemic. However, we lost more as their term expired.”

The group had taken various measures to address this issue including securing alternative sources for workers, revising the sequence of works and increasing resources, while also obtaining the necessary extension of time from its clients.

In addition, Wong said the group had recently received a new permit to bring foreign workers into the country.

With these measures, the group expects its current projects to be completed within the allotted contract periods.

On the hike in minimum wages, Wong said: “We were also conscious of the increment in minimum wage coming into play,” adding that the same applies to the increase in raw material costs.

Mudajaya was also allowed to renegotiate its contracts last year, including for the Light Rail Transit 3 (LRT3) project.

Currently, LRT3 is under construction with 70% progress and is expected to be completed by the end of this year, according to Wong.

On the country’s translation to renewable energy progress, Wong said: “While it is good to have renewables, we have not reached the state of stability. However, we are gradually translating to renewables.”

Mudajaya returned to black in its financial year 2021, posting a net profit of RM8.1mil.

In the first quarter ended March 31, 2022 (1Q22), the group posted a net profit RM2.4mil compared to a net loss of RM2.3mil in the same period a year ago.

The net profit for the quarter in review was mostly bolstered by its power segment that recorded a profit after tax of RM4.5mil.

“The group’s financial result is underpinned by earnings from the power sector, as it gives a stability to the earnings,” Wong said, adding that it takes away the fluctuations in the construction sector.

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