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Cahya Mata (Sarawak) – Account Profile

@ Divagaar Siva

Overview

Cahya Mata Sarawak Berhad (CMS) is a prominent corporation listed on the Main Market of Bursa Malaysia, the Malaysian stock exchange. Established in 1974, CMS has been a pivotal player in the development of Sarawak, Malaysia’s largest state. Initially starting as the state’s first cement manufacturer, CMS has grown into a diversified conglomerate with a portfolio spanning over 35 companies involved in various sectors.

CMS has been a cornerstone in Sarawak’s rapid growth over the past 48 years. From its humble beginnings as a cement manufacturer, the company has diversified into various sectors including construction, road maintenance, property development, and financial services. In 2015, CMS expanded into telecommunications infrastructure, further solidifying its role as an infrastructure facilitator.

Core Business Divisions

CMS’s core business divisions include

  • Cement & Clinker
  • Construction & Construction Materials Trading & Agencies,
  • Oiltools
  • Green Technology
  • Phosphates & Stone Aggregates
  • Financial Services & Stone Aggregates
  • Hotel & Worker’s Accommodation
  • Industrialised Building System (IBS) Products & Solutions
  • Premix & Precast Concrete Products
  • Road Maintenance
  • Steel Fabrication & Engineering, Steel Pipe Manufacturing & Laying,
  • Telecommunications Infrastructure,
  • Township & Property Development
  • Wire Mesh

Strategic Investments and Expansions

  • CMS has leveraged its healthy balance sheet, local knowledge, experienced management team, and proven strategies to maximise its participation in Sarawak’s growth story. The company has strategically invested in energy-intensive industries and infrastructure projects, particularly within the Sarawak Corridor of Renewable Energy (SCORE).
    • A key project is the investment into Samalaju Industrial Park (SIP) through CMS’ Samalaju Development Division, spearheading the company’s participation in SCORE. CMS is involved in SIP through temporary workers’ camps, township developments, and energy-intensive industry investments.

Recent acquisitions

  • Oiltools Group, acquired on 6 September 2022, forming the new Oiltools Division
  • Cahya Mata Alam Sdn Bhd, acquired on 17 October 2022, focusing on environmental technology and sustainability
  • Cahya Mata Phosphates Industries Sdn Bhd, formerly known as Malaysian Phosphate Additives (Sarawak) Sdn Bhd, which strengthens CMS’s footprint in SCORE.
  • KKB Engineering Berhad: Cahya Mata holds a 20.05% stake in this Bursa listed Sarawak-based manufacturer of steel water pipes, gas canisters and fabricator of steel structures for commercial projects. It also manufactures onshore fabrication of offshore facilities for the Oil & Gas industry under its Petronas approved supplier licence.

Community and Corporate Responsibility

CMS is committed to giving back to the communities in which it operates. This is achieved through corporate philanthropy, strict adherence to health, safety, and environmental standards, and the ‘Doing Good’ employee volunteer program. The company is involved in various community outreach efforts, including financial aid, disaster relief, and charitable giving.

Cahya Mata Sarawak Berhad has been a key driving force in Sarawak’s economic development for nearly five decades. With a diversified portfolio and a commitment to sustainable growth, CMS continues to play a significant role in the state’s journey towards achieving developed status by 2030. Powered by a dedicated workforce and a strong corporate ethos, CMS is well-positioned to capitalise on future opportunities and continue its legacy of excellence

Financial Performance FY2023

As Sarawak’s leading infrastructure facilitator and a prime mover in the Sarawak growth story, Cahya Mata continued to make steadfast progress on several fronts in FY2023. The company reported a revenue of RM1.20 billion and a Profit Before Tax (PBT) of RM128.24 million

Financial Highlights (RM Millions):

Year202120222023
Revenue814.51,015.6 [+24.7%]1,200.0 [+18.2%]
Profit Before Taxation234.6398.0 [+69.6%]128.2 [-67.8%]
Proft After Taxation204.7289.9 [+41.6%]81.6 [-71.9%]

Strategic Priorities/Investments

  • Circular Economy: CMS has embraced the circular economy model, focusing on waste reduction, product longevity, and ecological regeneration. This initiative is spearheaded by Cahya Mata Alam, which serves as both a research and development centre and a manufacturing setup producing composite materials from natural organic fibres and recycled materials. These eco-compliant products have gained globally recognised certifications, providing environmentally friendly options for consumers and industries.
  • Energy Sector: In September 2022, CMS entered the oil and gas industry through the acquisition of Cahya Mata Oiltools Sdn. Bhd. This move has accelerated the Group’s growth, allowing it to leverage opportunities in the global oil tools service businesses across eight countries. The division reported revenue of RM281.27 million in FY2023 and contributed a Profit Before Tax (PBT) of RM28.32 million. The long-term growth prospects in this sector are expected to enhance the Group’s profitability.
  • Innovation and Commercialisation of Emerging Technologies: CMS is committed to innovation and the commercialisation of emerging technologies through its Digital Transformation initiative. This includes the phased implementation of Enterprise Resource Planning (ERP) systems across the Group, aimed at enhancing productivity, cost-effectiveness, accessibility, and digital security. This initiative ensures seamless integration and heightened efficiency across the Group.
  • Rebranding Exercise: In October 2022, CMS underwent a rebranding exercise to reflect its focus on becoming a multinational corporation committed to innovative practices and sustainable development. In 2023, CMS unveiled new brand identities across their divisions, improving their distinctness while also enhancing their overall alignment with group strategic objectives and sustainability goals.
  • Realising Core Value: CMS aims to foster economic growth and secure sustainable business development by offering market-relevant products and services. CMS ‘Core Value’ is driven by initiatives detailed below, following their guiding principle of ‘Achieving a better future’ through strategic planning and execution. Key initiatives include:
    • Embracing Innovation: Continuously explore global possibilities and new ideas to drive growth.
    • Strategic Partnerships: Collaborate with industry leaders, exemplified by the recent agreement between Cahya Mata Cement Sdn. Bhd. and Sinoma Industry Engineering (M) Sdn. Bhd.
    • Capacity Expansion: Establish new production lines, such as Clinker Line 2, to increase production capacity and reduce supply disruption risks.
    • Market Expansion: Create opportunities for export markets and diversify cement production.
    • Sustainable Practices: Maintain solid and sustainable profits, uphold prudent financial policies, and ensure a strong balance sheet.
    • Professional Management: Be led by an experienced and professional management team.
    • Corporate Governance: Enforce stringent corporate governance measures to build community ties and gain stakeholder support.
  • Environmental, Social & Governance (ESG): CMS is committed to ESG principles, focusing on reducing emissions and energy consumption, recycling waste, and aligning labor practices with local and international standards. The Group promotes diversity, inclusion, human rights, and career development while adhering to ethical business practices. A strategic partnership with the Malaysia Athletics Federation (MAF) pledges RM5 million to support athletics programs and grassroots initiatives, furthering CMS’s legacy of community enrichment and corporate philanthropy.

Challenges and Opportunities

Support for Circular Economies

Challenge: Cahya Mata has taken big strides in adopting the principles of a circular economy. They aim to promote waste reduction, product longevity and ecological regeneration. The company possesses technology to create eco-compliant products and services and has been recognised globally for these initiatives. CelcomDigi has the opportunity to provide services to promote growth and expansion of Cahya Mata’s circular economy initiatives.

Opportunities:

  • IoT Solutions for Waste Management: Implement IoT-based solutions to monitor and manage waste more efficiently in CMS’s manufacturing setups. This can include sensors for tracking waste levels, smart bins, and integrated platforms for real-time monitoring and reporting
  • Data Analytics for Product Lifecycle Management: Provide advanced analytics tools to track product longevity and resource usage, helping CMS to enhance their product designs for better ecological regeneration and compliance with global sustainability standards.
  • Material Traceability Solutions: Implement blockchain technology to ensure full traceability of materials from source to product, enhancing transparency and accountability in the circular economy model.
  • AI-Driven Efficiency Optimisation: Use AI algorithms to optimise resource use and production processes, reducing waste and improving the efficiency of CMS’s manufacturing operations.

Enhancement in Energy Sector Operations

Challenge: Cahya Mata is a new player in the energy sector, with its recent acquisition of oil and gas firm, Oiltools. They plan to leverage opportunities in the oiltools industry, with a steady presence in 8 countries already. Being a new business unit for the company, CelcomDigi has the opportunity to provide services to enhance and optimise operations, as well as aid in the growth of the segment.

Opportunities:

  • 5G Connectivity: Deploy CelcomDigi’s 5G network to ensure high-speed, reliable communication across CMS’s oil and gas operations spread over eight countries. This can facilitate real-time data transfer, remote monitoring, and operation of oil tools service businesses.
  • Cloud Solutions: Offer robust cloud services to manage large volumes of data generated from global operations, enhancing data accessibility and security, crucial for the energy sector’s expansive data needs.
  • Predictive Maintenance Tools: Utilise IoT and AI to predict equipment failures and schedule maintenance proactively, reducing downtime and operational costs in the energy sector.
  • Remote Operation Capabilities: Develop remote monitoring and control systems for CMS’s oil and gas operations, allowing for safer and more efficient management of remote sites.

Digital Transformation & Technology Commercialisation

Challenge: Cahya Mata aims to commercialise emerging technologies as part of their Digital Transformation Initiatives. The company is pursuing operational excellence and seamless integration of technology to promote efficiency. CelcomDigi can help in their pursuit of a unified platform for operations that helps to increase productivity, cost-effectiveness, scalability, and accessibility across the group

Opportunities:

  • Innovation Labs: Collaborate to establish innovation labs that focus on developing and commercialising emerging technologies, fostering a culture of innovation within CMS.
  • Digital Twin Technology: Implement digital twin technology to simulate different operational scenarios in ERP systems, enhancing decision-making and strategic planning.
  • Enterprise Resource Planning (ERP) Integration: Support CMS’s digital transformation by integrating scalable and secure ERP solutions that enhance productivity and operational efficiency across various divisions.
  • Cybersecurity Solutions: As CMS expands its digital footprint, providing comprehensive cybersecurity solutions will safeguard sensitive commercial and operational data, crucial for maintaining business integrity and trust.

Branding and Corporate Identity Enhancement

Challenge: Cahya Mata has recently undergone a rebranding exercies in 2022. Their brand identity aims reflect their commitment to innovative practices and sustainable development. For sustained success and growth, CelcomDigi can offer services to help drive brand identity.

Opportunities:

  • Digital Marketing Tools: Provide advanced digital marketing tools and analytics to enhance CMS’s brand visibility and engagement across digital platforms.
  • Virtual Reality (VR) for Brand Experiences: Create VR experiences that showcase CMS’s commitment to sustainability and innovation, enhancing customer and stakeholder engagement.

Support for ESG Initiatives

Challenge: They have adopted a holistic approach towards sustainability through the development of Cahya Mata’s Sustainability Framework and Roadmap that encompasses environmental stewardship, social responsibility, economic resilience, and good governance in guiding corporate culture. Cahya Mata is involved in multiple operations and business segments each with their own constraints and challenges in terms of sustainability. CelcomDigi can provide tools and services that help streamline, standardise and promote sustainability initiatives across the group.

Opportunities:

  • Carbon Footprint Analysis Tools: Offer tools that calculate and analyse the carbon footprint of CMS’s operations, helping them to set targeted reductions and report on ESG performance.
  • Employee Wellbeing Programs: Develop digital platforms that support employee health and wellbeing, aligning with CMS’s focus on diversity, inclusion, and career development.
  • Smart Energy Management Systems: Implement systems to monitor and manage energy consumption efficiently, supporting CMS’s commitment to reducing emissions and aligning with ESG standards.
  • Sustainable Smart Offices: Create smart office solutions that promote energy efficiency, waste reduction, and optimal resource use, reflecting CMS’s sustainability and rebranding goals.

Key Stakeholders

YBhg. Dato Sri Sulaiman Abdul Rahman B Abdul Taib, aged 55, is the Group Managing Director of Cahya Mata Sarawak Berhad, appointed to the Board on 22 June 2021. He has extensive experience in both governmental and corporate roles, including serving as Malaysia’s Deputy Minister of Tourism and holding various executive positions within Cahya Mata and RHB Capital Berhad. He also serves as a director for several Cahya Mata subsidiary and associate companies.

Mandar Shrikrishna Namjoshi, appointed as Group Chief Financial Officer of Cahya Mata Sarawak Berhad, is responsible for the strategic management of the organisation’s global financial strategy. With over 25 years of experience in finance roles at companies like Johnson & Johnson, Fonterra, Olam, JDE Peets, and IFFCO, he brings significant expertise in Commercial Finance, Business Transformation, Risk Management, Treasury, and Corporate & Financial Planning.

Karl Vink, appointed as Chief Information Officer of Cahya Mata Sarawak Berhad, is responsible for the overall management and operations of CMS I-Systems Sdn Bhd, overseeing IT employees, systems, networks/servers, applications, and support services throughout the Group. With over 20 years of experience in IT, Technology, and Mass Communications across Southeast Asia, North America, and Europe, he previously served as CEO of Silver Lining Systems (SLS) Sdn Bhd/Silver Lining Software Pvt Ltd and held senior positions at Data Forest, Cocoon Security, JKV Media, Syrius Productions, and AV Solutions. He completed his education in Australia.

Kanesan Veluppillai, the Chief Strategic Communications Officer of Cahya Mata Sarawak Berhad, is responsible for the Group’s corporate strategies and oversees internal and external communications, advocacy, research, brand and marketing communication, and stakeholder relations. With over 35 years of experience in sectors such as financial services, automotive, property and infrastructure, transportation, and oil & gas, he has held senior management roles including CEO of US Artbank International Ltd, Deputy CEO of Scomi Group Berhad, and Group Director of Strategic Communications at DRB-HICOM Group.

Izzam Ibrahim, appointed as Group General Counsel of Cahya Mata Sarawak Berhad, is responsible for the Group’s Legal and Contract Management Services. With over 24 years of experience, he has expertise in corporate law, mergers & acquisitions, compliance and regulatory issues, anti-corruption, and corporate services, having worked with public listed companies, government-linked entities, private entities, and multinational corporations.

Choong Ju Tang, appointed as Acting Head of the Cement Division at Cahya Mata Sarawak Berhad, is responsible for the strategic direction, management, and performance of the Cement Division. With over 23 years of experience in the building materials industry, he has focused on commercial, operations, and business development aspects in Malaysia and Singapore, with short stints in Indonesia, the Philippines, Vietnam, China, and Korea.

Ishwinderjit Singh, appointed as Interim Chief Operating Officer of the Phosphates Division at Cahya Mata Sarawak Berhad, is responsible for the strategic direction, management, and performance of Cahya Mata Phosphates Industries Sdn. Bhd. With over 18 years of experience in Financial Management, he is a Fellow Chartered Certified Accountant (FCCA) (UK), a member of the Malaysian Institute of Accountants (MIA), and a Chartered Member of the Institute of Internal Auditors Malaysia (CMIIA). His expertise includes Financial Reporting, Forensic Accounting, Internal Auditing, and Corporate Risk Management. Prior to this role, he served as General Manager Group Finance at Cahya Mata Sarawak Berhad and Acting Chief Financial Officer at Sacofa Sdn. Bhd.

Shaun Mok Chek Wei, the Managing Director of Cahya Mata Development Sdn Bhd, is responsible for the strategic direction, management, and performance of the company. He focuses on the conceptualisation and delivery of the company’s land banks and identifies strategic development opportunities to ensure a robust pipeline of projects. With a career established in property development and consultancy services, he has held various management and directorial positions in Australia and Malaysia. Prior to joining CMS, he was the Chief Operating Officer at Triterra Sdn Bhd.

Account Profile
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