KUALA LUMPUR: Selangor Dredging Bhd is adopting a prudent approach for the next 12 months in view of volatile market conditions and economic uncertainties.
Managing director Teh Lip Kim said the group had embarked on various cost-savings measures, including a 20 per cent reduction in director's fees.
"In our efforts to become more prudent, various departments have also been directed to trim operational costs and employees are also multi- tasking", Teh said at Selangor Dredging's 59th virtual annual general meeting (AGM) today.
Teh said its hospitality division had implemented cost cutting measures by reducing outsourced workers, freezing various positions in F&B and engineering and operational cost by energy saving measures.
On upcoming launches, she said Selangor Dredging had planned to launch a project in Singapore called Myra towards end-2020.
"Myra would be located at Meyappa Chettiar Road and Woodsville Close in District 13. Comprising only 85 residences in 12 storeys, this freehold development is located 150 metres from the Potong Pasir MRT station.
"For Malaysia, we have two distinct projects in the pipeline including condo villas in Serdang and Melawati (just on the outskirts of Kuala Lumpur)," she said.
The group registered a pre-tax profit of RM6.58 million on the back of a marginally lower turnover of RM243.85 million.
After accounting for taxation, the group posted a net loss of RM4.48 million, compared to RM 24.42 million net profit posted in the previous corresponding period.
This was because of a once-off impairment cost for four pieces of land held for development amounting to a total of RM14 million.
During the year under review, the group focused primarily on unsold stock for completed developments together with developments under construction.
Teh said Selangor Dredging would continue with marketing efforts for its existing projects, namely SqWhere and UNA in Malaysia, together with JUI Residences and One Draycott in Singapore.
SqWhere in Sungai Buloh was completed in July 2019 and has been well received due to its excellent connectivity.
Over in Cheras, under construction is UNA located at Jalan Peel, comprising 316 units of service apartments, with retail units on the Ground Floor.
She said in Singapore, the group's waterfront development called JUI Residences located along Serangoon Road in District 12 had also been warmly received.
"The development overlooks the Kallang River and has a conserved building, the National Aerated Water Company (NAWC) factory within the premises," Teh said.
There had also been interest in One Draycott located at District 10, mere minutes away from the Scotts/Orchard Road shopping belt, she added.
"When completed, this single tower project with striking gold and black façade would feature 64 exclusive units," she said.
In the hospitality division, she said Hotel Maya in Jalan Ampang here had seen higher occupancy rates of 45 per cent, from 38 per cent posted in the previous year.
This was mainly due to various initiatives undertaken to revive the brand, coupled with efforts to make the hotel more appealing to guests.
"The hotel is embarking on a refurbishing programme to make it more appealing.
"When completed, refurbished rooms would feature a Malaysian heritage concept with batik designs produced by local artisans from Kelantan," she said.
On its involvement in the mining sector, she said its associate company Fortress Minerals Ltd was a leading high-grade iron ore producer in Bukit Besi, Terengganu.
"It has contributed RM8.34 million of net profit to the group during the financial year," she added.
