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Integrated Annual Report 2021
Financial Report 2021

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Our Strategic Roadmap

Our priority has always been business sustainability and creating meaningful value for our shareholders and stakeholders.

MRCB’s Growth Strategy (our Strategy) was developed with this in mind, and will guide us in becoming a responsible leader in the industries we operate in. Our Strategy outlines four Growth Principles, which are driven by seven Key Action Plans.

These principles and action plans will be carried out by our talented workforce, who are guided by strong core values and good corporate governance, in order to conduct our operations in an ethical and professional manner. We also believe that leveraging on technology will push MRCB to become a cost-efficient and future proofed business. Our Digitalisation & Automation Roadmap drives this initiative, as well as our investments in new construction methodologies and technologies.

Sustainability permeates through our entire organisation and underpins all our actions, going beyond ensuring sustained returns to capture the responsible use of natural resources. We believe that our Strategy, underpinned by our robust Sustainability Framework, will not only widen the gap between MRCB and its competitors to gain sustainable returns, but also create solutions to meet the market's existing and future needs.

  • STRENGTHEN CORE FOR SUSTAINABLE RETURNS

    Ensure Steady Pipeline of Projects

    Key Action Plan
    To secure and develop urban land, and tender for construction projects with relatively higher pre-qualification requirements and barriers to entry, with a focus on infrastructure


    Key Indicators

    • Revenue
    • Profit Before Tax
    • Finance Cost
    • Order Book
    • Land Bank
    2021 Key Initiatives
    • Continued to tender for projects
    • Continued to monetise RM2.8 billion GDV of ongoing property development projects and RM12.6 billion worth of ongoing infrastructure projects
    • Increased digital marketing of property development projects to counter the negative impact of COVID-19
    2021 Achievements
    • Submitted tenders worth RM0.5 billion
    • Grew external client construction order book by RM5.6 billion to RM27.3 billion, which will provide revenues beyond 2030
    • Achieved RM309.8 million property sales
    • Recorded 1,574 virtual viewings of 1060 Carnegie and over 7,900 virtual viewings of Sentral Suites in KL Sentral, the 9 Seputeh developments in Jalan Klang Lama and Alstonia in Bukit Rahman Putra
    • Net gearing remains within healthy levels at 0.28 times despite lower revenues as a result of the pandemic
    • Attracted funding through the issuance of an RM800 million perpetual Sukuk Murabahah

    Short-To-Medium-Term Priorities
    MRCB will continue to aggressively market its completed property units, which is valued at RM535.7 million, as well as continue to tender for engineering projects with relatively higher pre-qualification requirements and barriers to entry, such as infrastructure projects and complex building structures. We will also continue to focus on completing our existing projects to make up for the revenue shortfall experienced in 2021 as a result of the COVID-19 pandemic.

    Long-Term Priorities
    To continue to tender for large infrastructure projects such as the 52 km MRT3 Circle Line and work packages for the 709 km Sabah Pan Borneo Highway.

  • DIVERSIFICATION & OPERATIONAL EXPANSION

    GEOGRAPHICAL EXPANSION

    Key Action Plan
    Expand in existing and into new overseas markets, backed by sound strategy and robust implementation


    Key Indicators

    • International property sale
    • Revenue from international projects
    • International land bank/GDV
    2021 Key Initiatives
    • Continued marketing 1060 Carnegie in Melbourne, Australia
    • Sourced appropriate property development projects in Australia and New Zealand
    2021 Achievements
    • Sold 170 units of 1060 Carnegie in Melbourne, Australia
    • Achieved financial settlement for all 170 units sold from a total of 176 units available
    • Won the tender to develop the Aotea Central Over Station Development with a GDV of NZ$452 million in Auckland City Centre, New Zealand
    • Licensed MBS technology to a company in Hong Kong and one in Singapore for use in their ongoing high-rise construction projects

    Short-To-Medium-Term Priorities
    MRCB will focus on reaching financial settlement of the six remaining units in 1060 Carnegie and continue to explore prospects in Australia and New Zealand, as well as look for more overseas licensing opportunities to build a track record in the adoption of MBS technology.

    Long-Term Priorities
    To grow MRCB Australia Holding Company Pty Ltd (MAH) with the aim of MAH becoming a very significant and sustainable long-term contributor to the Group, by recycling capital and reinvesting its profits from existing projects into a greater number of new projects.

    ENTER INTO NEW MARKETS

    Key Action Plan
    To expand our business in identified key new markets, such as the renewable energy and waste-to-energy (WTE) sectors, and other markets such as the industrial/logistics, co-living, co-working and assisted living property market segments


    Key Indicators

    • Contract awards for renewable energy and WTE
    • Project launches in new property market segments
    2021 Key Initiatives
    • Continued to engage and negotiate with key stakeholders in the renewable energy and WTE sectors
    • Laid further groundwork to successfully penetrate these new areas in the long run
    • Planned hybrid home and office units, which integrate working and living spaces
    2021 Achievements
    • Advanced negotiations for a WTE service agreement
    • Acquired 683.32 acres of land in Simpang Pulai, Perak to develop an industrial/logistics park
    • Developed plans for a new development with 266 SOHO units in Lot J, KL Sentral

    Short-To-Medium-Term Priorities
    MRCB will launch and market the Lot J development project in KL Sentral in 2023 and will lay the groundwork for entry into the industrial and logistics development segment, which is expected to be in demand over the next few years by multinational corporations looking for large, strategically located, bespoke developments meeting their sustainability requirements.

    Long-Term Priorities
    To continue to advance renewable energy projects and stormwater management solutions, and pursue the healthcare or aged-care facilities market within new and existing sites in the Klang Valley and East Malaysia.

  • TECHNOLOGY ADOPTION & INNOVATION

    ACHIEVE LEAN & EFFICIENT OPERATIONS

    Key Action Plan
    To improve data security and operational efficiency through robust business processes and the adoption of new technologies, anchored on MRCB's Digitalisation & Automation Roadmap


    Key Indicators

    • Productivity (Revenue/Employee)
    • Cost savings
    2021 Key Initiatives
    • Continued marketing 1060 Carnegie in Melbourne, Australia
    • Sourced appropriate property development projects in Australia and New Zealand
    2021 Achievements
    • Reduced costs through the digitalisation and automation of processes
    • Conducted operational cost rationalisation and value engineering exercises
    • Rationalisation of office spaces

    Short-To-Medium-Term Priorities
    MRCB will continue its cost rationalisation exercise and complete its Data Governance Framework Programme aimed at managing and protecting all of the Group's data and better managing all local and international data protection and data privacy regulations.

    Long-Term Priorities
    To continue to adopt digitalisation and automation to attain lean and efficient operations, leading to reduced headcount through natural attrition.

    LEVERAGE ON MRCB BUILDING SYSTEM (MBS)

    Key Action Plan
    To construct projects using MBS and license out our technology to other construction companies


    Key Indicators

    • Revenue from licensing MBS technology
    • Number of MBS projects
    2021 Key Initiatives
    • Conducted 21 ESG-specific engagement sessions and site visits to Kwasa Sentral to market and showcase MBS
    2021 Achievements
    • Licensed the MBS technology to two companies overseas for the construction of a 19-storey student residential development and temporary quarantine facility in Hong Kong, as well as a 12-storey nursing home and senior care centre in Singapore
    • Completed 35 classrooms for five schools in Putrajaya for the Ministry of Education using our MBS technology in approximately three months
    • Received the Sustainability Performance Award 2021 for SDG Ambition Benchmark 6 awarded by the United Nations Global Compact Malaysia & Brunei

    Short-To-Medium-Term Priorities
    We will launch our first 573-unit high-rise residential project in Kwasa Sentral, developed using our MBS technology, and continue to market MBS and secure projects that can benefit from modular applications, including developing schools, as well as affordable housing.

    We will also continue to explore the adoption of MBS for other potential products and applications in the public sector such as Centralised Labour Quarters [CLQ), police accommodation and prisons, where speed of construction is a client priority.

    Long-Term Priorities
    To increase the percentage of developments constructed using MBS technology in Malaysia.

  • QUALITY PRODUCTS & PEOPLE

    UPHOLD GOOD GOVERNANCE

    Key Action Plan
    To create a culture that is committed to making ethical decisions based on the set policies and procedures, which result in high-quality products and good HSE practices


    Key Indicators

    • SHASSIC Score
    • Customer Satisfaction Survey
    • MCCG 2021 Compliance
    • MSWG-ASEAN Corporate Governance Scorecard
    2021 Key Initiatives
    • Established strict SOPs to curb the risk of COVID-19 infection
    • Organised regular toolbox talks to educate site workers and employees on best practices of HSE
    • Complied with world-class Quality, Environmental, Safety and Health systems through the adoption of ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007
    • Conducted ABMS training for staff
    • Conducted a Vaccination Drive for 1,000 employees, and a Booster Drive for 177 employees
    2021 Achievements
    • Achieved a 100% vaccination rate
    • Achieved a 4-Star SHASSIC rating for our Sentral Suites development from CIDB, which is the regulator of the construction industry in Malaysia
    • Achieved 95% Overall Purchaser Survey Score for 1060 Carnegie in Melbourne, Australia
    • Held 10 ABMS workshops for 1,124 staff and one whistleblowing webinar for 443 staff
    • Conducted 33 safety training sessions to a total of 794 people consisting of employees, site workers and sub-contractors
    • Distributed notification letters to our top suppliers informing them of our sustainability journey and intent to transition to more stringent sustainable procurement policies
    • Received the Industry Excellence Award for the Property Sector for the 2020 ASEAN Corporate Governance Scorecard Assessment
    • Conform to 39 out of the 43 Practices prescribed in MCCG 2021, together with 3 out of the 5 optional Step-Up Practices

    Short-To-Medium-Term Priorities
    MRCB will continue to monitor and measure the impacts of COVID-19 on our business and ensure all risks are well mitigated, as well as continue our commitment towards upholding good corporate governance and complying with all best practices.

    Long-Term Priorities
    To further improve operational and sustainability standards by adopting best practices and meeting global standards that will allow MRCB to compete with the very best internationally.

    DEVELOP A SKILLED WORKFORCE

    Key Action Plan
    To produce performance-driven employees that continuously strive to exceed our financial and non-financial targets while being responsive to external environment and customer demands


    Key Indicators

    • Number of staff trained
    • Average training hours/employee
    2021 Key Initiatives
    • Encouraged knowledge sharing between Management, in-house specialists and subject-matter experts
    • Launched the People Transformation Programme
    2021 Achievements
    • Spent approximately RM1.4 million on training activities
    • Conducted an average of 9.2 training hours per employee
    • Collaborated with HRD Corp to provide free access to 300 courses via the e-Latih digital learning platform for self-paced and flexible learning
    • Collaborated with the UNGC to allow employees free access to UNGC Academy, a digital learning platform with courses and resources from the world’s leading experts on sustainable development
    • Continued our Individual Development Plans for those high performing talents identified, aimed at narrowing skills gaps to equip future leaders
    • Conducted 10 People Transformation Accelerator Programme workshops for 348 employees to equip them with necessary leadership tools to sustain organisational transformation

    Short-To-Medium-Term Priorities
    We will continue to focus on our talent development and succession planning initiatives, including Individual Development Plans, with the aim of building a competent, driven workforce with clearly defined career paths so that our people can grow with the organisation. We will continue to upskill our people by utilising programmes developed by LinkedIn Learning and Leaderonomics, and will continue to roll-out the People Transformation Programme to all remaining staff to drive a more agile performance-driven organisation.

    Long-Term Priorities
    To develop a competent workforce with clear succession plans to ensure smooth business operations.