Malayan Cement: Managing Director's Review

This financial year, Malayan Cement Berhad (MCB) Group recorded a revenue of RM2705.272 million and a profit before tax of RM129.221 million for the full year ended 30 June 2022. Although the effects of the COVID-19 pandemic continue to be felt and geopolitical issues around the world have led to an increase in commodity prices, I remain encouraged by the resilience of the Group in these challenging times.

The acquisition of YTL Cement Berhad’s entire cement and ready-mixed concrete businesses in Malaysia by MCB last year has put us in better stead to meet the demands of changing circumstances and benefitted our business. The exercise has allowed us to optimise our costs and efficiency as we have streamlined our operations, distribution, and logistics.

As the country now transitions into the endemic phase of COVID-19, we expect that the construction sector will start to recover. The latest annual report published by Bank Negara Malaysia projects a rebound growth of 5.3 – 6.3% over 2022, propelled by large scale infrastructure projects including the revival of the Mass Rapid Transit (MRT3) Circle Line. Our outlook on business and the economy is therefore cautiously optimistic.

In 2021, we honed in our focus on the sustainability of our operations and the solutions we offer to our customers. Having consulted both internal and external stakeholders, we prioritised this commitment and worked on providing the Malaysian construction industry with greener alternatives.

These include offerings under the ECOCem and ECOConcrete range. These products are made with lower carbon dioxide emission than conventional cement, Ordinary Portland Cement (OPC), and designated concrete.

At the same time, we are investing steadfastly in our operations. Over the last four years we have worked to reduce bottlenecking and focused on upgrading our equipment and capital resources. Over RM190 million has been invested to improve our emissions control and monitoring systems.

We have also taken steps towards increasing the use of alternative fuels and raw materials (AFR) at all four of our integrated cement plants. Traditional fuels have been replaced with alternatives from biomass, refuse-derived fuels and industrial waste. Our plants co-process between 200 000 and 300 000 MT of AFR annually.

Beyond policies, products, and operations, we are achieving our sustainability goals through our people.

At our cement plants, we are proactively identifying opportunities where our organisation can develop the in-house capacity to respond to the challenges posed by climate change. Workshops and training programmes are regularly held to enhance knowledge, formulate low carbon strategies, and develop action plans to achieve our ESG aspirations.

In 2019 we launched the YTL Cement Seminar Series to provide a platform for knowledge-sharing between experts and industry practitioners. Last year, we started the Masterclass Series aimed at educating tertiary students who are primarily in the fields of Engineering and Architecture. These series of seminars raised awareness on the importance and availability of greener materials and sustainable construction. They have been very well received and to-date, we have held 44 sessions, benefiting 4800 people.

The YTL Cement Scholarship programme, established in 2007, continues to play its role in Malaysia becoming a knowledge-based economy. Since its inception, we have awarded 75 scholarships and proudly, more than half of our past scholars have chosen to begin and build their careers with us.

I would also like to take this opportunity to highlight the work and initiatives of our dedicated CSR arm, BUILDS. It is the Group’s firm belief that efforts beyond business objectives should be steered by the pillars of education, community, and environmental sustainability.

Over the course of the year, we have participated in initiatives in collaboration with government institutions and non-profit organisations including Department of Environment (DOE), Lost Food Project and Persatuan Seni Jahitan Kreatif Malaysia. The benefit of this has been two-fold, on one hand boosting the morale of our people and volunteers and on the other, furthering the mission of the Group.

We expect the remainder of the year to be challenging due to high inflation and increased logistical cost caused by geopolitical instability. Malaysia is a relatively young nation with a high urbanisation, factors which will drive the demand for housing and infrastructure development. This is evident with the reactivation of The National Affordable Housing Council (MPMMN) to coordinate the construction of 500 000 affordable homes under the 12^th Malaysia Plan (12MP) by 2025.

Looking ahead, we will continue playing our part in the development of the nation not only by promoting sustainable construction with our range of low-carbon products but simultaneously extending further our products and services to meet future construction needs.

I would like to thank the MCB team for their dedication and commitment and I look forward to continuing to build better together.

Dato' Sri Michael Yeoh Sock Siong, Managing Director of Malaya Cement

Read the article online at: https://www.worldcement.com/asia-pacific-rim/31102022/malayan-cement-managing-directors-review/