CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Section 03 P E R F O RMAN C E 2 0 1 6 Cahya Mata Sarawak Berhad 26 pending completion of the adjoining township, when it is operational. More recently, the Samalaju Lodges are providing mid to long-term lodging for construction workers and their supervisors while the new township is under construction. The third core area involves the development of the new, approximately 2,000-acre Samalaju Eco Park Township and adjoining services, hotel and light industrial areas to create an attractive township to enhance the SIP’s appeal to investors, potential employees and support industries. The first phase of the Township was launched in 2015. SAMALAJU LODGES On the whole, the occupancy rate at Samalaju Lodges showed a slight decline in FY 2016 as compared to the previous year. A slowdown in construction activities at the SIP (given that most plants were at commercial production stage) and the prolonged illegal camps issue, had an adverse impact on occupancy. Meanwhile, new projects such as the Malaysian Phosphate Additives plant, Sarawak Energy Berhad’s Samalaju EHV Substation No. 2, and the Samalaju Combined Cycle Plant have not fully commenced physical onsite construction. Nevertheless, Samalaju Lodges remains the preferred mid-term accommodation choice for the operation and maintenance personnel from the plants in the vicinity of the SIP due to its accessibility and wide-ranging facilities. Samalaju Properties will endeavour to improve hospitality services and to upkeep sustain standards at the Lodges. It will also aim to maintain the current pricing structure despite persistent pressure from rising operational and material costs. Meanwhile, the marketing team continues to proactively identify and engage prospective tenants looking for short to medium-term accommodation at the SIP aided by the possibility always of reconfiguring the accommodation at the Lodges to meet clients’ needs. SAMALAJU ECO PARK Samalaju Eco Park was conceptualised out of a vision to provide a balanced, healthy and sustainable lifestyle to the thousands working at the SIP. Situated on 2,000 acres of land, the Samalaju Eco Park Township incorporates the natural semi-undulating terrain of the area, with the Township designed to preserve as much of the land’s natural landforms and gentle water bodies. Green and blue spaces in the form of parks, water bodies, community gardens and a golf course will eventually dot the Township and provide attractive living spaces for the community. Construction of the first residential phase comprising 256 units of apartment blocks was completed in September 2016, while construction of 16 units of two- storey shop lots is scheduled to be completed by the first quarter of 2017. SAMALAJU CENTRAL Samalaju Central is strategically located at the heart of the SIP. Within its radius are companies such as OM Sarawak, Pertama Ferroalloys (Bintulu) Sdn Bhd, Press Metal Sarawak Sdn Bhd, Tokuyama Malaysian Sdn Bhd and Sakura Ferroalloys Sdn Bhd. Designed as a visually attractive and well-planned commercial/service hub, the development spans an area of 81.4 acres and consists of a variety of development mixes. These include commercial and office spaces, food courts and eateries, as well as light industrial buildings and vacant lots for small and medium industries to complement the heavy industries within the industrial park. The first phase of Samalaju Central comprising 34 shops was completed in December 2016. Subsequent developments will be rolled out in phases in tandem with market demand. SAMALAJU RESORT-HOTEL The 175-room Samalaju Resort Hotel development, perched on a 23-acre site along Tanjung Similajau, offers stunning views of both the South China Sea and the Similajau National Park. Designed to be an oasis of calm amidst the hustle and bustle of the fast-growing SIP, the hotel comprises 148 rooms and suites, as well as nine chalets (housing three rooms each). The Hotel is equipped with amenities for both business travellers, and those looking for a comfortable getaway. Its amenities include swimming pools, a gym and games room, meeting and function rooms, a coffee house, a lounge, and a business centre. It also caters for corporate events, training sessions, meetings, and teambuilding exercises making it an excellent training venue for both the private and public sectors. The Hotel’s location, within short driving distance of the global companies that have established themselves at the SIP, makes it the accommodation of choice for employees of these companies, as well as the many subcontractors and consultants visiting Samalaju. Samalaju Resort Hotel achieved a major milestone when it celebrated its official opening on 18 October 2016 with His Excellency the Governor of Sarawak, Tun Pehin Sri Haji Abdul Taib Mahmud, officiating the launch. SAMALAJU LIGHT INDUSTRIAL PARK The 206-acre Samalaju Light Industrial Park, which is located adjacent to the Samalaju Township development, will offer semi-detached industrial units upon its completion. The Light Industrial Park is designed to cater to both small and medium-sized companies and other supporting industries looking to gain a foothold in the area. This proposed development will help create the critical mass of industries necessary for a vibrant industrial park. Planning and feasibility studies on the Light Industrial Park and planned units are currently underway. MANAGement DISCUSSION AND ANALYSIS