Chairman's Reflections

DATO’ MOHAMAD NASIR AB LATIF
Chairman
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Strengthening
For Resilient Futures
Dear Stakeholders,

Having successfully navigated an extended period of societal and economic upheaval due to the pandemic, we embraced the path to economic recovery while continuing to address complex challenges. Despite concerns such as a climate crisis, geopolitical tensions, inflationary pressures, and interest rate rises impacting various industries, including ours, we viewed these times as opportunities for strategic growth and adaptation. By reassessing our position in this dynamic environment, we reaffirmed our commitment to our diversification strategy and aligned it even more closely with industry changes and global shifts. In doing so, we continued our efforts to strengthen our foundation for a more resilient future.

+3.0%

GLOBAL ECONOMIC GROWTH IN 2023

3.7%

MALAYSIA’S ECONOMY EXPANDED MODERATELY

Group Managing Director's Review

DATUK IMRAN SALIM
Group Managing Director
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Integrating
sustainability for enduring value

Dear Stakeholders,

In 2023, MRCB completed major projects and commenced new ones, signalling the onset of a new growth cycle. Our efforts were also centred on integrating sustainability into all aspects of our activities, expanding our diversification strategy, seizing opportunities, and effectively managing risks to ensure sustainable value creation over the long term.

RM2.5 BILLION

REVENUE

RM134 MILLION

PROFIT BEFORE TAX

2023 Key Highlights

GROUP REVENUE

RM2.5 BILLION

21%

2022: RM3.2 billion

PROFIT BEFORE TAX

RM134 MILLION

13%

2022: RM154 million

NET GEARING

0.16 TIMES

50%

2022: 0.32 times

SHAREHOLDERS’ FUNDS

RM4.6 BILLION

2%

2022: RM4.5 billion

NET ASSETS PER SHARE

RM1.03

2%

2022: RM1.01

DIVIDEND

1.00 SEN
GROSS DEVELOPMENT VALUE OF LAND BANK
RM31 BILLION
TOTAL LAND BANK
1,148 ACRES
EXTERNAL CLIENT CONSTRUCTION ORDER BOOK
RM26.1
BILLION
ACHIEVED PROPERTY SALES OF
RM831.3
BILLION
LRT3 PHYSICAL CONSTRUCTION PROGRESS
92 %

A

ESG RATING

FTSE4Good Index Score
3.6

from 3.2 in 2022

ZERO

Cybersecurity & Customer Data Breaches

ZERO

Lost Time, Minor Injuries & Major Injuries
38%

of MRCB employees are women

Achieved

81%

QLASSIC score for TRIA Residences @ 9 Seputeh

Complied with Malaysian Code on Corporate Governance

41
out of 43 Practices

4
out of 5 Step-Ups

49%

Reduction in Scope 1 & Scope 2 Carbon Emissions Intensity from 2020 baseline

Achieved a
5-STAR
SHASSIC rating for our PR1MA Brickfields development from CIDB

Total prisoners/ offenders upskilled via PEKA@MRCB

460

AWARDS

ESG POSITIVE IMPACT AWARDS

Gold Award for Governance, Reporting & Transparency (Large Corporation Category)

THE EDGE ESG AWARDS 2023

Silver for Most Consistent Performer Over Five Years

UN GLOBAL COMPACT NETWORK MALAYSIA & BRUNEI FORWARD FASTER SUSTAINABILITY AWARDS

Partnership for the Goals Recognition for PEKA@MRCB Programme

    FINANCIAL HIGHLIGHTS

    GROUP REVENUE

    RM2.5BILLION

    21%

    2022: RM3.2 billion

    PROFIT BEFORE TAX

    RM134MILLION

    13%

    2022: RM154 million

    NET GEARING

    0.16 TIMES

    50%

    2022: 0.32 times

    SHAREHOLDERS’ FUNDS

    RM4.6BILLION

    2%

    2022: RM4.5 billion

    NET ASSETS PER SHARE

    RM1.03

    2%

    2022: RM1.01

    DIVIDEND

    1.00SEN

    BUSINESS HIGHLIGHTS

    GROSS DEVELOPMENT VALUE OF LAND BANK
    RM31 BILLION
    TOTAL LAND BANK
    1,148 ACRES
    EXTERNAL CLIENT CONSTRUCTION ORDER BOOK
    RM26.1 BILLION
    ACHIEVED PROPERTY SALES OF
    RM831.3 BILLION
    LRT3 PHYSICAL CONSTRUCTION PROGRESS
    92 %

    ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) HIGHLIGHTS

    A

    ESG RATING

    FTSE4Good Index Score
    3.6

    from 3.2 in 2022

    ZERO

    Cybersecurity & Customer Data Breaches

    ZERO

    Lost Time, Minor Injuries & Major Injuries
    38%

    of MRCB employees are women

    Achieved

    81%

    QLASSIC score for TRIA Residences @ 9 Seputeh

    Complied with Malaysian Code on Corporate Governance

    41
    out of 43 Practices

    4
    out of 5 Step-Ups

    49%

    Reduction in Scope 1 & Scope 2 Carbon Emissions Intensity from 2020 baseline

    Achieved a
    5-STAR
    SHASSIC rating for our PR1MA Brickfields development from CIDB

    Total prisoners/ offenders upskilled via PEKA@MRCB

    460

    AWARDS

    ESG POSITIVE IMPACT AWARDS
    Gold Award for Governance, Reporting & Transparency (Large Corporation Category)
    THE EDGE ESG AWARDS 2023
    Silver for Most Consistent Performer Over Five Years
    UN GLOBAL COMPACT NETWORK MALAYSIA & BRUNEI FORWARD FASTER SUSTAINABILITY AWARDS
    Partnership for the Goals Recognition for PEKA@MRCB Programme

      Value Creating Business Model

      Inputs

      Human Capital

      • 1,669 skilled professionals that propel the company forward

      • 36 health and safety programmes

      Intellectual Capital

      • With over 50 years of various industry experience, we have built a strong brand name as a pioneer, including two decades of expertise in Transit Oriented Development, coupled with an enviable track record in green building and rail and road infrastructure development

      • Patented proprietary modular construction technology through MBS

      Natural Capital

      • ISO 14001 compliant (Environmental Management Systems)

      • 1,148 acres of land bank

      Social & Relationship Capital

      • Over 120,000 stakeholders engaged

      Financial Capital

      • Share capital: RM4.4 billion

      • RM5 billion Sukuk programme, RM450 million issued in 2023

      • Total borrowings: RM1.8 billion

      Manufactured Capital

      • RM31 billion GDV land bank

      • RM1.8 billion GDV of ongoing property development projects

      • RM11.7 billion worth of ongoing infrastructure projects

      • RM26.1 billion external client construction order book

      OUR BUSINESS ACTIVITIES

      Operating Context

      • Property & Construction Market

      • Evolving Customer Trends

      • Environmental Stewardship

      • Competitive Landscape

      • Regulatory Environment

      • Technology & Digitalisation

      Risks & Mitigations

      • Project Delivery Risk

      • Marketing Risk

      • Liquidity Risk

      • Business Continuity Risk

      • Environmental, Social and Governance (ESG) Risk

      • Regulatory Risk

      • Quality Risk

      • Safety, Health & Environment Risk

      • Concentration Risk

      Material Matters

      GOVERNANCE

      • Ethics & Principles

      • Governance & Compliance

      ECONOMIC

      • Product Quality & Responsibility

      • Economic & Business Performance

      • Indirect Economic Impacts

      • Responsible Procurement & Supplier Assessment

      SOCIAL

      • Health & Safety

      • Employee Engagement & Well-Being

      • Customer Engagement

      • Diversity & Equal Opportunity

      • Labour Practice

      • Local Community Engagement

      • Human Rights

      ENVIRONMENT

      • Materials Management

      • Sustainable Construction

      • Waste

      • Climate Transition Risk

      • Physical Climate Risk

      • GHG Emissions

      • Biodiversity

      Outputs

      Human Capital

      • Women make up 38 % of the workforce

      • 11.7 % mean employee gender pay gap

      • 6.4 average training hours per employee

      • Achieved >1-million man hours without LTI for Sentral Suites, PR1MA Brickfields and TRIA 9 Seputeh

      Intellectual Capital

      • Received Silver Award for Most Consistent Performer Over Five Years at The Edge ESG Awards 2023

      • Received Gold at the 2023 Australasian Reporting Awards

      • Received Gold Award for Governance, Reporting & Transparency in the Large Corporation Category at the ESG Positive Impact Awards 2022

      • Patented the MBS Technology in 20 countries and pending patents in an additional 11 countries

      • Completed projects that have licenced the technology in Singapore and Hong Kong

        • Licensed the MBS technology in Singapore and Hong Kong

      Natural Capital

      • 22,602 of Carbon Emissions - Scope 1 & 2 (tCO2e)

      • Subscribed to a monthly allocation of 1,206,000 kWh of electricity generated sustainably at the Celcom Tower, Plaza Alam Sentral and Penang Sentral

      • 49 % reduction in Scope 1 & 2 emissions (intensity)

      • Conducted physical risk financial quantification on the water stress and urban flood

      • All commercial development projects qualified for the Green Building Index accreditation

      Social & Relationship Capital

      • Strong network of 1,716 approved suppliers/sub-contractors supporting the business and ensuring alignment with overall sustainability commitments

      • Strategic engagement with 1,401 customers, including 425 customers for the Sentral Suites, VIVO, TRIA, Kalista, and Alstonia projects

      • 38 community programmes were conducted to 102,344 beneficiaries

      • 460 prisoners/offenders participated in PEKA@MRCB programme as site workers

      • Conducted 16 engagements to 673 investment community including seven ESG-specific sessions

      Financial Capital

      • RM2.5 billion generated in revenue

      • RM137.6 million profit before tax

      • Net gearing of 0.16 times

      • RM532 million cash generated from operations

      • Received in RM20.8million of income

      • Disposed of RM628million of properties

      • Achieved residential property sales of RM831.3million

      Manufactured Capital

      • RM831 million in property sales

      • Completed two key property development projects, TRIA 9 Seputeh (GDV:RM940 million) and Sentral Suites (GDV:RM1.6 billion)

      • Completed the construction of the Sungai Besi-Ulu Kelang Elevated (SUKE) Expressway CA2 Package

      • LRT3 achieved physical construction progress of 92 % and financial progress of 88 %

      • Launched VISTA in Gold Coast, Australia (GDV:RM1.5 billion) and Tujuh Residensi Kwasa Sentral (GDV:RM385 million)

      OUTCOMES

      Human Capital

      • RM239.6 million paid in salaries and benefits

      • Achieved a 5-Star SHASSIC rating for our PR1MA Brickfields development

      Intellectual Capital

      • Increased FTSE4Good Scores from 3.2 to 3.6 points (out of 4.0)

      • Established as a pioneer in Malaysia, transitioning from traditional to modular construction through our first development using MBS technology for our Residensi Tujuh, at Kwasa Sentral development

      • Expansion of our MBS technology overseas, marking international adoption in Singapore as well as newly completed two blocks of 19-storey student residences in Hong Kong

      • Upgraded MRCB’s MSCI ESG rating from ‘BBB’ to ‘A’

      • Collaborated with CIDB to enhance construction industry Technical and Vocational Education and Training construction programmes

      Natural Capital

      • Achieved our target of more than 4.2 % reduction of carbon emissions annually and sourced 55% of our energy consumption from renewable energy sources for three of our managed buildings

      • Increased Scope 3 data collection from supply chain to 88 % from 64%

      • Strategic collaboration with Bursa Malaysia in it’s Early Adopter Programme for Centralised Sustainability Intelligence Platform

      • Identified climate-related financial risks and opportunities aligned with the TCFD

      • Developed a new design policy for future sustainable developments and unavoidable damage to biodiversity caused by development projects

      Social & Relationship Capital

      • RM1,894 million or 99 % of procurement budget spent on local suppliers/ sub-contractors

      • Engaged with 751 of our suppliers/sub-contractors, of which 50 have completed UNGC’s “ESG Start” assessment

      • Achieved an overall customer service excellence score of 80% based on the customer experience survey for the Sentral Suites, VIVO, TRIA, Kalista, and Alstonia projects

      • RM5.3 million spent on local communities

      • Received Partnership For The Goals Recognition for PEKA@MRCB programme at the UN Global Compact Network Malaysia & Brunei Awards

      • Fostered innovation through MRCB’s Industrial Collaboration Programme by aligning business endeavours with Malaysia’s economic goals and awarded a total of 64 contracts to the ICP Project Providers, with an average value of between RM250,000 to RM500,000 per project

      Financial Capital

      • Increased Profit After Tax by 89% to RM101 million

      • Increased EPS by 56% to 2 sen

      • RM33 million tax paid to the Government

      • Delivered a dividend payout of RM45 million to its shareholders, reflecting a dividend of 1.0 sen per share

      Manufactured Capital

      • Ranked 4th for the Top-of-the-Chart Award at The Star Malaysia Developer Awards (MDA) 2023

      • Received the “Outstanding Overseas Project Award” for 1060 Carnegie at The Edge Malaysia Property Excellence Awards 2023

      • Received three PropertyGuru Asia Property Awards (Australia) 2023:

        • Best Boutique Developer – MRCB International
        • Best Lifestyle Development (Queensland) – 26 VISTA
        • Best Eco Friendly Apartment Development – 26 VIST

      • Achieved >70% QLASSIC rating for Residential-Sentral Suites and TRIA Residences @ Seputeh

      INPUTS

      Manufactured capital

      Financial capital

      Natural capital

      Human capital

      Intellectual capital

      Social & Relationship capital

      BUSINESS ACTIVITIES
      OUTPUTS
      OUTCOMES
      OUR STRATEGIC ROADMAP

      Our fervent commitment has consistently centred around ensuring the sustainability of our business and generating value for both our shareholders and stakeholders.

      Read more

      5-YEAR GROUP FINANCIAL HIGHLIGHTS

      • Revenue
        (RM’ MILLION)

        1,319

        1,199

        1,448

        3,205

        2,537

        2019

        2020

        2021

        2022

        2023

      • Profit/(Loss) Before
        Income Tax
        (RM’ MILLION)

        53

        (154)

        61

        154

        134

        2019

        2020

        2021

        2022

        2023

      • Profit/(loss) Attributable
        to Equity Holders
        (RM’ MILLION)

        24

        (177)

        16

        65

        101

        2019

        2020

        2021

        2022

        2023

        2019

        2020

        2021

        2022

        2023

      • Average Shareholders’ Funds
        (RM’ MILLION)

        4,799

        4,658

        4,532

        4,522

        4,563

        2018

        2019

        2020

        2021

        2022

        2019

        2020

        2021

        2022

        2023

      • Net Assets Per Share
        (RM)

        1.08

        1.03

        1.01

        1.01

        1.03

        2018

        2019

        2020

        2021

        2022

        2019

        2020

        2021

        2022

        2023

      • Basic Earnings/(loss)
        Per Share (SEN)

        0.54

        (4.02)

        0.36

        1.45

        2.26

        2019

        2020

        2021

        2022

        2023

      OUR PERFORMANCE

      Operating Profit
      RM148.8
      MILLION

      Unbilled Property Sales
      RM234.9
      MILLION

      Property Sales
      RM831.3
      MILLION

      Revenue
      RM737.8
      MILLION

      Sentral REIT & Sentral REIT Management Profit Contribution
      RM18.8 MILLION

      Daily Average Pedestrian Traffic (KL Sentral)
      220,000

      Daily Average Pedestrian Traffic (KL Sentral)
      220,000

      GDV of Land Bank
      RM31 BILLION

      Land Bank
      1,148 ACRES

      % of GDV from TODs
      81%

      Daily Average Pedestrian Traffic (Penang Sentral)
      25,000
      Revenue
      RM1,734.0
      MILLION

      Open Tenders
      RM30 BILLION

      External Client Order Book
      RM15,717
      MILLION

      Value Of Completed Project In 2023
      RM317 MILLION

      % Of Infrastructure Projects In External Client Order Book
      45%

      TRIA Residence

      OUR APPROACH TO SUSTAINABILITY

      Building Meaningful Places for a Better Tomorrow
      Read more
      OUR PERFORMANCE

      Social

      A Commitment to Empowering Our People, Customers, and Communities

      MRCB is committed to creating a positive impact on society. We are guided by our core values of being Courageous, Creative, Driven, Customer-centric, and Accountable, which shape our relationships with all stakeholders. We actively integrate SDG principles into our business operations, ensuring our practices contribute to the well-being of our workforce, customers, and community.

      Environmental

      SUSTAINABILITY ASPIRATION: NET ZERO CARBON BY 2050

      MRCB is firmly committed to driving a greener future in the course of its business. We adopt a comprehensive and pragmatic approach towards achieving Net Zero Carbon by 2050 in alignment with the Paris Agreement and in support of Malaysia’s national target of achieving Net Zero for Scope 1, 2, and 3 by 2050.

        Downloads

        Annual Integrated Report 2023

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        Financial Report 2023

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