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Our BusinessPhilOsOPhy& MOdel• QualityProducts• ExcellentService• MaximisingStakeholdersReturn•GoodCorporateGovernance•SocialResponsibilities• Safety,Health&Environment• EfficiencyDriven•EmployeesWelfare•Teamwork•Innovations

VisiOn• Tobetheleadingborepilingandbridge specialistinthemarketsweserve.

MissiOn• Providing innovative solutions that leverage on our

capabilities as the preferred bore piling and bridgespecialistinMalaysia.

•Todeliversustainablevaluethatdeterminesabetterfutureforall.

COntents Vision&Mission

01 CorporateProfile

02 CorporateMilestones

04 CorporateInformation

05 CorporateStructure

06 KeyManagement’sProfile

08 BoardofDirectors

10 Directors’Profile

18 Chairman’sStatement

Ikhmas Jaya Group Berhad (“IJGB” or the “Group”) was founded in 1992 by Dato’ Ang Cheng Siong (Group Managing Director), Dato’ Ir. Dr. Khoo Ping Sen (Executive Director), Siew Mun Lout (Executive Director) and Yap Yoon Fatt (Head of Plant Division). IJGB is principally involved in engineering and construction of piling and foundation, bridges and buildings. Since the Group’s establishment, IJGB has accumulated an extensive track record of completed projects for both the public and private sectors to a total contract value of approximately RM2.7 billion.

IJGB is highly recognised in the industry for its diverse expertise and experiences across multiple discipline of engineering and has been involved in a number of high-profile projects such as the award-winning Putra and Prai Bridges, Klang Valley Mass Rapid Transit-Kajang Line, Kelana Jaya Light Rail Transit Extension, Paradigm Mall and KL Eco City just to name a few. Armed with its own in-house design and engineering professionals, IJGB is a competitive and formidable participant in the marketplace as a total multi-skilled solutions provider with a competitive edge and versatility to secure projects.

COrPOrate PrOfile

Completed projects for

both the public and private

sectors to a total contract value of

approximately rM2.7

Billion

21 Group4-YearFinancialHighlights

22 Management Discussion&Analysis

27 SustainabilityStatement

33 CorporateGovernanceOverviewStatement

47 AuditandRiskManagementCommitteeReport

52 StatementonRiskManagementandInternalControl

55 Directors’ResponsibilityStatement

56 FinancialStatements

134 AdditionalComplianceInformation

135 ListofProperties

137 AnalysisofShareholdings

140 NoticeofAnnualGeneralMeeting

FormofProxy

2006IkhmasJayaSdn.Bhd.undertookpilingandfoundationworksforanadministrationcomplex,“PusatPentadbiranKerajaanPersekutuan”inPrecinct5,Putrajayawhichwascompletedin2008.

2008IkhmasJayaSdn.Bhd.commencedpilingandfoundationworksforParadigmMallinKelanaJaya,Selangor.

2009IkhmasJayaSdn.Bhd.undertookthefollowing:a) thedesignandconstructionofatrainingcentre

fortheRoyalMalaysiaPolice(PULAPOL)inTerengganu;and

b) theinfrastructureworks,groundimprovement,bridgestructures,drainages,roadworks,landscapeandassociatedworksforJBNusajayaHighway

- Section2:CH2400toCH 9500whichwascompletedin2011.

2010IkhmasJayaSdn.Bhd.undertookthedesignandconstructionofthePraiSwingBridgeinmainlandPenangfortherailwayelectrificationanddoubletrackingprojectfromIpohtoPadangBesarwhichwascompletedinAugust2013.

2012a) RekavistaSdn.Bhd. undertookcontiguousboredpilewall,

earthworks,pilingandbasementstructureworksforParcelCoftheKLEcoCityprojectatBangsar,KualaLumpurwhichwascompletedinMay2014;

b) IkhmasJayaSdn.Bhd. securedanadditionalcontractforthe

substructureworksandelevatedroadwayforParcelDoftheKLEcoCityproject;and

c) IkhmasJayaSdn.Bhd. wasawardedacontracttoundertakebore

piling,caissonpilesandmicropilesworksforPackageV8oftheKlangValleyMassRapidTransitSungaiBuloh-KajangLineprojectinSelangor.

1994IkhmasJayaSdn.Bhd.securedandcommencedourfirstprojectforthedesign,constructionandcommissioningofwaterpipelayingworksfromSentulHillReservoirtoKualaLumpurCityCentreDevelopmentAreawhichwascompletedin1995.

1997IkhmasJayaSdn.Bhd.wasawardedtwo(2)contractstoconstructbridgesinPutrajayaasfollows:a) BridgeBR10;andb) PutraBridge;bothofwhichwerecompletedin

1999.

2001IkhmasJayaSdn.Bhd.securedacontractfortheconstructionofabridgeinChenor,Pahangwhichwascompletedin2004.

2002Rekavista(Sarawak)Sdn.Bhd.securedandcommenceditsfirstprojectfortheconstructionofasecondaryschoolinSibu,Sarawakwhichwascompletedin2004.

2003IkhmasJayaSdn.Bhd.securedourfirstbuildingborepilingcontractfortheconstructionofadiaphragmwallforPrinceCourtMedicalCentre,aprivatehospitalinKualaLumpurwhichwascompletedinthesameyear.

2004IkhmasJayaSdn.Bhd.securedourfirstinfrastructureborepilingprojectfortheconstructionofcontiguousboredpilewallsfortheGombakRiverDiversionfloodmitigationprojectinKualaLumpurwhichwascompletedin2006.

COrPOrateMilestOnes

IKHMAS JAYA GROUP BERHAD • Annual Report 201802

2013a) IkhmasJayaSdn.Bhd. undertooktobuildasuperstructureandother

finishingworksincludingM&EandinteriordesignworksforDamai88serviceapartmentsinAmpang,KualaLumpur;and

b) IkhmasJayaSdn.Bhd.undertookinfrastructureworksforSubangSkyparkTerminalRailwayTrack-Phase1,arailwayprojectbetweenSaujanaandSkyparkTerminalinSubang.

2014ReceivedtheIEMOutstandingEngineeringAchievementAwardforthedesignandconstructionofthePraiSwingBridgeinmainlandPenangfortherailwayelectrificationanddoubletrackingprojectbetweenIpohandPadangBesarbytheInstitutionofEngineers,Malaysia.

2015a) ListedontheMainMarketofBursaMalaysia

SecuritiesBerhad.b)Relocatedandexpandedourprefabricated

buildingssystemmanufacturingfacility.c) LetterofawardfromMRCBBuildersSdn.Bhd.

foratotalcontractvalueofRM161.12million.

2016a) AwardedaRM166.40millioncontractto

undertaketheconstructionofaserviceapartmentforStarEffortSdn.Bhd.

b) LetterofawardfromKayanganKemasSdn.Bhd.foratotalcontractvalueofRM65.30millionforsub-contractworksfortheconstructionofabridge.

c)LetterofawardfromGallimontDevelopmentSdn.Bhd.foratotalcontractvalueofRM173.50millionfortheconstructionofa49storeyblockofservicedapartments.

2017a) LetterofAwardfromMMCEngineeringServicesSdn.

Bhd.forRM13.85millionforJackingPits/ShaftusingcontiguousBoredPileMethod;and

b)AwardedaRM33.81millioncontractfromSymphonyCrescentSdn.Bhd.fortheconstructionandcompletionofpilingandsubstructureworkfor2blocksofbusinesstower.

2018a) LetterofawardfromKerjayaProspek(M)Sdn.Bhd.

foratotalcontractvalueofRM78.00millionforsub-contractworkstoexecuteandcompletetheMarineBridgecrossingthesealinkingJalanSeriTanjungPinangtoSTP2Island,embankmentatgradeandallotherassociatedcivilengineeringworksfortheproposedSeriTanjungPinang(Phase2)Development(STP2),PulauPinangforMessrsTanjungPinangDevelopmentSdn.Bhd.

b) LetterofawardfromKementerianSumberAsli&AlamSekitar/JabatanPengairanDanSaliranMalaysiaforatotalcontractvalueofRM101.85milliontoundertaketheproject“RancanganTebatanBanjirSungaiPendang,KedahDarulAman:MenaiktarafSungaiChoras/SungaiSaladanStruktur-struktursertaKerja-kerjaBerkaitan”.

c) LetterofawardfromPutrajayaVenturesSdn.Bhd.foratotalcontractvalueofRM58.75millionforthecontract“Package1:TheProposedDemolitionworksofexisting3storeyofficebuildingwitha2levelbasementand2storeybungalowandproposedconstructionandcompletionofsubstructureworksconsistofa2levelparkingareaatBasement1,Basement2andpartlylevel1andassociatedworksonLot155,JalanAmpang,KualaLumpur.

d) LetterofawardfromMudajayaCorporationBerhadforatotalcontractvalueofRM38.52milliontoundertakesubcontractboredpilingworks(Zone2and3)fortheConstructionandCompletionofLightTransitRailLine3(LRT3)fromBandarUtamatoJohanSetiaPackageGS01:guideway,stations,parkandride,ancillarybuildingsandotherassociatedworks.

IKHMAS JAYA GROUP BERHAD • Annual Report 2018 03


COrPOrateinfOrMatiOn

Dato’ Syed Ariff Fadzillah bin Syed AwalluddinIndependentNon-ExecutiveChairman

Dato’ Ang Cheng SiongGroupManagingDirector

Dato’ Ir. Dr. Khoo Ping SenExecutiveDirector

Siew Mun LoutExecutiveDirector

Ang Wei ZhenExecutiveDirector

Dzulkifli David bin AbdullahIndependentNon-ExecutiveDirector

Yuen Choong LaiSeniorIndependentNon-ExecutiveDirector

Tan Ming-LiIndependentNon-ExecutiveDirector

BOARD OFDIRECTORS

COMPANY SECRETARIESCynthiaGloriaLouis(MAICSA7008306)ChewMeiLing(MAICSA7019175)

PRINCIPAL BANKERS• AmBank(M)Berhad• BangkokBankBerhad• MalayanBankingBerhad• MBSBBankBerhad• PacLeaseBerhad (AMemberofOCBCGroup)

STOCK EXCHANGE LISTINGMainMarketofBursaMalaysiaSecuritiesBerhad

AUDIT & RISKMANAGEMENT COMMITTEEChairmanYuenChoongLai

MembersDato’SyedAriffFadzillahbinSyedAwalluddinDzulkifliDavidbinAbdullahTanMing-Li

REGISTERED OFFICEUnit621,6thFloor,BlockAKelanaCentrePointNo.3,JalanSS7/19KelanaJaya47301PetalingJaya,SelangorDarulEhsanTel:(03)78809699Fax:(03)78808699

AUDITORSKPMGPLT(LLP0010081-LCA&AF0758)Level10,KPMGTower8,FirstAvenueBandarUtama47800PetalingJaya,SelangorDaruEhsanTel:(03)77213388Fax:(03)77213399

STOCK NAME/CODEIKHMAS/5268

NOMINATION &REMUNERATION COMMITTEEChairmanDato’SyedAriffFadzillahbinSyedAwalluddin

MembersYuenChoongLaiDzulkifliDavidbinAbdullahTanMing-Li

SHARE REGISTRARBoardroomShareRegistrarsSdnBhd(378993-D)(formerly known as Symphony Share Registrars Sdn Bhd)Level6,SymphonyHousePusatDaganganDana1JalanPJU1A/4647301PetalingJaya,SelangorDarulEhsanTel:(03)78418000Fax:(03)78418151

HEAD OFFICENo.35,37&39,JalanPJU1A/41BPusatDaganganNZXAraJaya,PJU1A47301PetalingJaya,SelangorDarulEhsanTel:(03)78850626/0612/0691Fax:(03)78830720Web:www.ikhmasjaya.comE-mail:[email protected]


COrPOratestruCture

100%IkhmasJayaSdn.Bhd.

60%MM2Building

SystemSdn.Bhd.

60%BESpecialistSdn.Bhd.

100%IJGeotechnicSdn.Bhd.

100%ExofieldPropertyManagementSdn.Bhd.

100%IkhmasEquipment

Sdn.Bhd.

100%RekavistaSdn.

Bhd.

100%Rekavista(Sarawak)

Sdn.Bhd.

100%MM2BuildersSdn.Bhd.

Ikhmas Jaya Group Berhad


Dato’ Ang Cheng SiongGroupManagingDirectorForhisprofile,kindlyrefertotheDirectors’Profileonpage11ofthe2018AnnualReport.

Dato’ Ir. Dr. Khoo Ping SenExecutiveDirectorForhisprofile,kindlyrefertotheDirectors’Profileonpage12ofthe2018AnnualReport.

Siew Mun LoutExecutiveDirectorForhisprofile,kindlyrefertotheDirectors’Profileonpage13ofthe2018AnnualReport.

Ang Wei ZhenExecutiveDirectorForhisprofile,kindlyrefertotheDirectors’Profileonpage14ofthe2018AnnualReport.

Key ManageMent’sPrOfile


1. Family Relationship with Director and/or Substantial Shareholder Save for Mr Ang Wei Zhen, the Executive Director who is the

son of Dato’ Ang Cheng Siong, the Group Managing Director and a Substantial Shareholder of the Company, none of the Key Management have any family relationship with any Director and/or Substantial Shareholder of the Company.

2. Conflict of Interest None of the Key Management have any conflict of interest with the Company.

3. Conviction for Offences Other than traffic offences, if any, none of the Key Management has been

convicted for offences within the past 5 years.

notes:

Tham Fook SunMale•Malaysian•Aged50•ChiefFinancialOfficerHeisaFellowMemberoftheAssociationofCharteredCertifiedAccountants(ACCA-UK)andalsoaCharteredAccountantoftheMalaysianInstituteofAccountants(MIA).HejoinedIkhmasJayaon26September2017astheChiefFinancialOfficer.

HestartedhistaxcareerwithErnst&YoungandauditcareerwithDeloitteToucheTohmatsu.

He hasmore than 25 years of relatedwork experiencewith amanagerial rolein financial reporting, audit, tax planning and compliance, corporate financeandcorporateaffairs inmanyprivate limitedcompanies (suchasShellMalaysiaTrading,KABGroup,AcmarInternational,HalimMazminetc.)andlocalpubliclistedcompanies(suchasTuriya,MKLand,HoWahGenting,MelewarIndustrialGroup,BerjayaLandetc.)spanningacrossvariousindustries–investmentholding,trading,manufacturing,propertymanagement,propertyinvestmentanddevelopment,andconstruction.

Yap Yoon FattMale•Malaysian•Aged56•HeadofPlantDivisionMrYap completed his Sijil PelajaranMalaysia in 1981 and started his career as aSurveyAssistant in1982. In1994,he joinedIkhmasJayaastheSeniorOperationsManager and were promoted to his current position in 2010. He has more than25yearsofexperience in theconstructionfield in theareasof sitesupervisionofheavy construction equipment for bored piles and earthworks includingmanagingand handling the site workers involved in earthworks, bore piling and basementconstructions.

Key ManageMent’sProfile

4. Public Sanction or Penalty None of the Key Management

have any public sanction of penalty imposed by any regulatory bodies during the financial year.


BOard OfdireCtOrs

Dzulkifli David bin AbdullahIndependentNon-ExecutiveDirector

Tan Ming-LiIndependentNon-ExecutiveDirector

Ang Wei ZhenExecutiveDirector

Yuen Choong LaiSeniorIndependentNon-ExecutiveDirector


Dato’ Ang Cheng SiongGroupManagingDirector

Board ofdirectors

Dato’ Syed Ariff Fadzillah bin Syed AwalluddinIndependentNon-ExecutiveChairman

Dato’ Ir. Dr. Khoo Ping SenExecutiveDirector

Siew Mun LoutExecutiveDirector


Dato’ Syed Ariff Fadzillah bin Syed Awalluddin

Male • Malaysian • Aged 76 Independent Non-Executive Chairman(Appointed on 24 December 2014)

HeistheChairmanoftheNominationandRemunerationCommitteeandamemberof the Audit and Risk ManagementCommittee.

Dato’ Syed Ariff Fadzillah obtained aBachelor ofArts Degree in History fromUniversiti Malaya in 1967, a Diploma inDevelopmentAdministrationfromLondonSchool of Economics (now known asLondonSchoolofEconomicsandPoliticalScience) in1974andaMasterofArts inInternational Relations from New YorkUniversityin1984.

He began his career in 1967 as anAssistantDistrictOfficerofKulim,Kedahuntil 1969. In 1970, he joined the PublicServiceCommission,KualaLumpurasanAssistant Secretary until 1972 before hewastransferredtotheMinistryofForeignAffairs in the same year. Thereafter, hewas appointed as the First Secretaryin the High Commission of Malaysia inOttawa, Canada in 1973, theCharge’ deAffairesofMalaysiainTripoli,Libyain1976,PrincipalAssistant Secretary,Ministry ofForeign Affairs in Malaysia in 1979 and

subsequently, the Deputy PermanentRepresentativeofthePermanentMissionofMalaysiatotheUnitedNationsinNewYork between 1982 and 1986. In 1986,he was appointed as the Deputy ChiefofMission in theMalaysian Embassy inJakarta, Indonesiawhereheserveduntil1989. Subsequently, from1989 to 1991,heservedastheAmbassadorofMalaysiato Fiji with concurrent accreditations toTuvalu, Tonga, Western Samoa, Kiribatiand Nauru. He also served as theUndersecretaryattheMinistryofForeignAffairs in charge of Southeast Asia andSouth Pacific from 1991 to 1992. Priorto retiring inNovember2001, he servedas the Ambassador of Malaysia to theRepublicofKoreawithjointaccreditationto Mongolia from 1992 to 1995 andAmbassadorofMalaysiatoThailandfrom1996to2001.

HeiscurrentlytheChairman/IndependentNon-Executive Director of EcofirstConsolidated Bhd and Bermaz AutoBerhad.

direCtOrs’PrOfile


Dato’ Ang Cheng Siong

Male • Malaysian • Aged 64Group Managing Director

(Appointed on 5 December 2013)

As our Group Managing Director, Dato’Ang Cheng Siong is responsible for theoverall management, strategic planningandbusinessdevelopmentofourGroup.

He obtained his Diploma in BuildingTechnology from Tunku Abdul RahmanCollege (now known as Tunku AbdulRahman University College) in 1980.He subsequently obtained his Masterof Business Administration (Finance)degreefromtheUniversityofHull,UnitedKingdomin1992.

He began his career in 1980 withPembinaan LeowTuck Chui & Son Sdn.Bhd. as a Quantity Surveyor and left in1981. He then joined Syarikat ManongSdn. Bhd. in 1981 as a Site Supervisor.During his tenure in Syarikat ManongSdn. Bhd., he was promoted to SeniorSupervisor in 1983 and Site Agent in

1985. In 1988, he left Syarikat ManongSdn.Bhd.andjoinedHoHupConstructionCompany Sdn. Bhd. (now known as HoHup Construction Company Berhad) asa Tender Manager. In 1992, he set upIkhmasJaya.Subsequentlyin1994,heleftHoHupConstructionCompanyBerhadtomanageIkhmasJaya.

Hehasaccumulatedmorethan30yearsof extensiveexperience andexpertise intheconstructionfieldviahis involvementin various types of projects involvingbuildings, highways, dams, marineworks, laying pipes, bridges, breakwaterconstructions, sewerage treatmentplants,water supply projects and sportscomplexes.

directors’Profile


Dato’ Ir. Dr. Khoo Ping Sen

Male • Malaysian • Aged 67 Executive Director(Appointed on 5 December 2013)

Dato’Ir.Dr.KhooPingSenisresponsibleformanagingandsupervisingthedesignand method of construction for allprojects carried out by our Group. He isalso responsible for the special projectsundertakenbyourGroupandourGroup’sbusinessdevelopment.

He graduated with a Bachelor ofEngineering degree with Honours fromMonash University, Australia in 1975.He was granted the Monash UniversityGraduate Scholarship and pursued hisdoctorate degree at the same universityand obtained his Doctor of Philosophydegree in Civil Engineering majoring instructuresin1979.

He began his career in 1979 withWanMohamed & Khoo Sdn. Bhd. as anEngineer. He was promoted to thepositions of Senior Engineer, Associate,Senior Associate and Director before he

left the company in 1990. In 1990, hejoined Ho Hup Construction CompanySdn. Bhd. (now known as Ho HupConstruction Company Berhad) as aSenior Project Manager, where he wasinchargeof theDesignDepartmentandBore Piling Division. In 1997, he left HoHupConstructionCompanyBerhad as aGeneralManager to join Ikhmas Jaya inthesameyearastheManagingDirector.HehasbeenamemberoftheInstitutionofEngineers,Malaysiasince1983.

Hehasbeeninvolvedintheconstructionindustry formore than 35 years and hisexpertiseisintheareaofstructuraldesignwhich focuses on bridges, high-risebuildingsandindustrialbuildings.Healsospecialises in bore piling and foundationworks.

directors’Profile


Siew Mun Lout

Male • Malaysian • Aged 56Executive Director

(Appointed on 4 July 2014)

Mr Siew Mun Lout is responsible forthe day-to-day operations of all projectsundertakenbyourGroup.

He graduated with a Bachelor ofEngineering in Civil Engineering withHonours from the University of NewSouthWales,Australiain1987.

HebeganhiscareerwithSyarikatManongSdn. Bhd. in 1987 as Site Engineer.In 1990, he left Syarikat Manong Sdn.Bhd. and joined Ho Hup ConstructionCompany Sdn. Bhd. (now known as HoHup Construction Company Berhad) asa Site Engineer. He was subsequentlypromotedtothepositionsofConstructionEngineerandProjectEngineerbeforeheleftin1994tojoinIkhmasJayaasProject

Manager in thesameyear.Hewas thenpromoted to Senior Project Manager in1997andpromotedasGeneralManagerof Rekavista in 1998. Subsequently in2002, he was promoted to ExecutiveDirectorofIkhmasJaya.

Hehasmorethan25yearsofconstructionexperience in bridge works, earthworksand roadworks including breakwaterconstructions and was involved innumerous types of projects involvinghighways, dams, marine works, layingpipes, bridge constructions, bore pilingandbasementconstructions.

directors’Profile


Ang Wei Zhen

Male • Malaysian • Aged 35 Executive Director(Appointed on 4 July 2014)

As our Executive Director, Mr AngWeiZhen is responsible for developing andimplementingstrategicplanstopromotecostefficiencywithinourGroup’soveralloperations. He is also responsible forbusiness development. He graduatedwithaBachelorofAppliedSciencedegreemajoring in Construction ManagementandEconomicsfromtheCurtinUniversityofTechnology,Australiain2008.

He began his career with Rider LevettBucknallPtyLtdinPerth,Australiain2008asaJuniorQuantitySurveyor,wherehewasprimarilyresponsibleforcarryingout

costestimationwork,documentcontrolsas well as producing bill of quantity.He left Rider Levett Bucknall Pty Ltd in2009 and subsequently joined IkhmasJaya inthesameyearasDeputyProjectManager and Senior Quantity Surveyor.He was part of the management teaminvolved in project coordination, projectmanagement, document control, costcontrolandcostforecasting.

directors’Profile


Dzulkifli David bin Abdullah

Male • Malaysian • Aged 72Independent Non-Executive Director

(Appointed on 24 December 2014)

Encik Dzulkifli David bin Abdullahgraduated fromUniversitiMalayawith aBachelorofArtsinEconomicsin1970.Hecompleted andobtainedhis professionalqualification from Institute of Cost andManagement Accountants (now knownas Chartered Institute of ManagementAccountants (CIMA)) in England, UnitedKingdomin1974.HeisamemberoftheNominationandRemunerationCommitteeand the Audit and Risk ManagementCommittee.

He began his career in 1975 with EssoProduction Malaysia Inc. (“EPMI”) inKuala Lumpur where he worked invariousaccountingandfinancecapacitiesincluding InternalControlSupervisorandFinancial Accounting Division Manageruntil 1981 when he was promotedto Special Assistant to the ManagingDirectorofEPMI.DuringhistenureastheSpecial Assistant, his responsibility wasmainly to be liaison person in assistingthecommunicationsbetweentheforeignprofessionals in the company and theteam in Petronas. His role included, butwasnotlimitedto,assistinginreviewingthe annual work program and budget,developingguidelinesforauthorisationtoactonmatters,arrangingmeetingsaswellas preparing all written communicationswithPetronas,trackingofcostrecoveriesand carrying out special assignmentsinstructedbytheManagingDirectorsuchas representing the company on theCommittee of International Chamber ofCommerce.

Subsequently, in 1982, he became theSupervisorofPlanningandBudgetingfor

theEngineeringDivisionofEPMIbeforebeing assigned to Esso Eastern Inc. inHouston,Texas,UnitedStatesofAmerica(“USA”) in 1984 and to Esso AustraliaLimitedinSale,Victoria,Australiain1985onaTemporaryForeignAssignment(TFA).In1986,hereturnedtoKualaLumpurandbecametheAssistantControllerofEPMIuntil1988whenhewaspostedtoEPMIin Kerteh, Terengganu to become theRegionalAccountingManager,apositionheserveduntil1992.

He returned toKualaLumpur in1992astheMaterialsDepartment (Procurement)Manager for EPMI and Esso MalaysiaBerhad (now known as Petron MalaysiaRefining&MarketingBhd) until 1997. Inthesameyear,hewasassignedtoExxonCompany International (ECI)NewJerseyas the South East Asia DownstreamProcurement Manager, based in KualaLumpuruntil1999beforehewaspostedtoFairfax,Virginia,USAin1999tobecomea member of the Global Procurement“Merger Transition Planning Team” forExxonMobil Corporation (“ExxonMobil”)until 2000. In 2001, hewas assigned toExxonMobilOil Indonesia Inc. inJakarta,Indonesia as the Procurement ServicesManageruntil2002whenheassumedtheroleastheAsiaPacificRegional“PurchasetoPay”ManagerforExxonMobil.

In2002,heretiredfromExxonMobilandstarted providing private consultancyservices in the area of supply chainmanagement to thegroupofcompaniesunder PT Bakrie and Brothers Tbk(“Bakrie and Brothers”) in Jakarta,Indonesia until 2003. In the same year

2003, he was appointed as the VicePresident of Procurement for PT BakrieTelecom Tbk and Senior Vice PresidentofProcurementofPTCakrawalaAndalasTelevisior commonlyknownasANTV inJakarta,Indonesia,bothofwhicharethesubsidiaries of Bakrie and Brothers. Inearly 2008, he left Bakrie and Brothersand returned to Malaysia. He currentlyfreelancesasaConsultantonsupplychainmanagement and management controlprocesses.

directors’Profile


Yuen Choong Lai

Male • Malaysian • Aged 55 Senior Independent Non-Executive Director(Appointed on 4 July 2014)

HeistheChairmanoftheAuditandRiskManagementCommittee and amemberof the Nomination and RemunerationCommittee.

Mr Yuen Choong Lai graduated fromUniversitiUtaraMalaysiawithaBachelor(Honours)Degree inAccounting in 1988before obtaining a Master of BusinessAdministration in Finance from theUniversity of Hull, United Kingdom in1992.HeobtainedhisCorporateFinanceQualification (CFQ) from the Institute ofChartered Accountants in England andWales(ICAEW)in2006andisamemberof the Corporate Finance Faculty of theICAEW.HeisalsoaCharteredAccountantandamemberoftheMalaysianInstituteof Accountants (MIA) since 1992 and aCertifiedPractisingAccountant(CPA)withCPAAustraliasince2008.

Hehasmorethan25yearsofexperiencein the finance and accounting, bankingandinvestmentindustry.

Presently, he is the Chief FinancialOfficerofFusionex InternationalPLC,aninternational software company. Hewasformerly the director of a local privatefinancial consultancy and investmentboutiquefirmthatspecialisesincorporateadvisory and investment from 1995 to2012.In1994,hewaswithKualaLumpurStockExchangeastheAccountantinthefinancedivisionoftheExchange.Priortothat,heembarkedonacareerinbankingwith Hongkong and Shanghai BankingCorporation Limited from 1989 to 1994.In 1988, he started his career in auditwithPriceWaterhouse&Co.Previously,hehasservedasNon-ExecutiveDirectorfor several public companies inMalaysiaincluding Kurnia Asia Berhad, KurniaInsurans (Malaysia) Berhad and AnalabsResourcesBerhad.

directors’Profile


Tan Ming-Li

Female • Malaysian • Aged 50Independent Non-Executive Director

(Appointed on 11 May 2015)

Ms Tan Ming-Li is a member of theNominationandRemunerationCommitteeand the Audit and Risk ManagementCommittee.

MsTanMing-Ligraduatedwithadoubledegree in Law (Hons) and Science fromUniversityofMelbourne,Australiain1993andhasbeenamemberoftheMalaysianBarsince1994.

She is currently a partner in the legalfirmofCCA (previouslypracticedunderCheang&Ariff) specialising in corporateandsecuritieslaw,wheresheisprincipallyinvolved in advising on capital markettransactions, mergers and acquisitions,

corporate restructuring as well as othercorporate finance related work. Priorto joining Cheang & Ariff in 1997, shepracticedlawinthefirmofAllen&Gledhill,Kuala Lumpur, in the areas of corporateandcommercial litigationand intellectualproperty. She is an Independent Non-ExecutiveDirectorofBPPlasticsHoldingBhd and Tune Protect Group Bhd. Sheis also aNon-ExecutiveDirector ofTuneInsuranceMalaysia Berhad, a subsidiaryofTuneProtectGroupBhd.

1. Family Relationship with Director and/or Substantial Shareholder

Save for Mr Ang Wei Zhen, the Executive Director who is the son of Dato’ Ang Cheng Siong, the Group Managing Director and a Substantial Shareholder of the Company, none of the other Directors have any family relationship with any Director and/or Substantial Shareholder of the Company.

2. Conflict of Interest None of the Directors have any conflict of interest with the Company.

3. Conviction for Offences None of the Directors have been convicted for offences within the

past five (5) years, other than traffic offences, if any.

4. Public Sanction or Penalty None of the Directors have any public sanction or penalty imposed by

any regulatory bodies during the financial year.

5. Board Meetings The number of board meetings attended by the

Directors of the Company are set out on 35 of this Annual Report.

6. Directors’ Shareholdings The details of the Directors’ shareholdings in the

Company and its subsidiaries are disclosed on page 138 of this Annual Report.

notes:

directors’Profile


Dear Valued Shareholders and Stakeholders,

OnbehalfoftheBoardofDirectors, itismy privilege to once again presenttheannualreportandauditedfinancialstatements for Ikhmas Jaya GroupBerhad (“IJGB” or “The Group”) forthefinancialyearended31December2018(“FY2018”).

For FY2018, the Group recordeda revenue of RM308.2 million as

compared to RM303.2 millionrecordedintheprecedingyear.

The challenging and robustindustry changes, coupled withthe decelerating growth in thedomestic construction industrycontributed largely to the dismalperformance of the Group forFY2018.

Dato’ Syed Ariff Fadzillah bin Syed AwalluddinChairman

ChairMan’s stateMent


2018 was indeed a transformative yearwith changes and shifts in the country’sdirection driven by a newly elected andpeople centric Government premisedon competency, integrity, accountabilityand transparency.Theoutlook ispositivewithanticipationforstrongergovernance,prudentpublicfinancialmanagementandenhanced public service delivery whichwill see the country sail into new highseasofdynamicandprogressivegrowthintheforeseeablefuture.

Witha landscapenowofa transformingnation,theGroupispoisedtoharnessonits capabilities and abilities to build andcapitalizeonasolidinfrastructurebuildingas connectivity continues its dominanceas economic catalyst and investmentthemeofourbelovednationinthetwentyfirst(21st)century.

As per the latest projections from BankNegaraMalaysia (“BNM”), our country’sgross domestic product (“GDP”) isexpected to expand between 4.3% and4.8% in 2019. In 2018, our GDP grew4.7%. Inflation is expected to averagebetween0.7%and1.7% in2019versus1.0%recordedin2018.

Private sector spending would continueto be resilient as domestic demand isexpectedtogrow4.4%in2019.

Approved foreign direct investments inourcountry,whichisoneoftheprominentkey leading indicators of economicgrowthincreased48%toarecordhighofRM80.5billion in2018.Theaverage rateof realisation of investments is around60%to70%withinthefirsteighteen(18)months,thoughitissubjecttotheglobaloutlookandinvestorsentiment.

Meantime,ourcountrywouldcontinuetofacechallengesand risksat theexternalfront with moderating global growthand continued volatility in the financialmarkets.

On the domestic front, implementationof several election pledges will requireprudentmanagementofourfiscalbudget.

chairMan’s stateMent

The change from consumption basedGoods&ServiceTax(“GST”)backtoSales&ServiceTax(“SST”)andtheadjustmentto the fuel pricing mechanism in theabsence of compensatory measures forthe shortfall in fiscal revenue wouldconstrainthefiscalpolicyspaceandplacegreater reliance on less stable directtaxation and oil related revenue duringsuchatimewhenbothourdomesticandglobal economy are facing deceleratinggrowth.

Fourth (4th) quarter last year during thetabling of Budget 2019, the governmentallocated billions of Ringgit forinfrastructure developments, paving theway for the country to provide a muchneededpillarofsupportforoureconomy.

Among the projects listed include theRM32 billion Mass RapidTransit Line 2(MRT2) and the Pan-Borneo SarawakHighway or PBSH (RM2 billion). Also,thereisthemuchtalkedabouthigh-speedrail (HSR) linkingMalaysiaandSingaporewhich is estimated to cost more thanRM50billion.

The 11th Malaysia Plan or 11MP (2016-2020) has placed an even greaterpriority on public transport— especiallyconnectivityfromruralareastothecities.Someoftheseprojectshavestartedandareatvariousstagesofdevelopment.

Any new transition of changes in theenvironment of the industry is rarelywithout challenges but the Group isprepared and ready in every aspect toweatherthechangesthatcomealong.

Inaphaseofdeceleratinggrowththathasslowed down many in the industry, theGrouphasadoptedacautiousyetselectivestrategybyfocusingourcommitmentstoprojectsbyprospectiveclientswhichhavegoodcreditstanding.ThiswouldhelptheGroup tomanage its credit and liquidityrisksbetterandalsoenhancepossibilitiesto garner a more acceptable range ofmarginwith sufficient buffer to cater foranyunforeseencostoverrun.

Moving forward within the next twelve(12) to eighteen (18)months, theGroupforesees the business environment toremainchallengingandcompetitiveinviewof slowdown in our domestic economy,property market overhang, increasingregulatory compliance and deferment ofmegainfrastructureprojects.

Despite the challenges that lie ahead inthebusinessenvironment,theGroupwillcontinuetoadaptitspracticalapproachtoaddress the various challenges at hand.TheGroupwillcontinuetostrengthenitscore competencies, increase operationalefficiency and expand its capacity tosupport its continuous bid for newcontractsandeffortstogrowitsbusiness.

Our order book was solidified in 2018with construction jobs secured worthapproximatelyRM283.1million.Asat31December 2018, our order book stoodat approximately RM536.3 million. Suchorder book would give the Group goodearnings visibility for the next two (2)years.


chairMan’s stateMent

FINANCIAL PERFORMANCE

The Group recorded a higher revenue ofRM308.2millionforthecurrentfinancialyearended31December2018ascomparedtoRM303.2millionrecordedintheprecedingyearended31December2017.

Thetoplinerevenuehadremainedratherflattish as the three (3) newly securedprojectswere still in their initial take offphasewhilsttwo(2)oftheexistingmajorprojects i.e. thebridgeproject inMelakaandmallprojectinKualaTerengganuwerealready in their completion phase duringlastquarterofthecurrentfinancialyear.

Taking into account all probabilities ofmonetizationofourfinalworkclaims(forall of our completed projects)which arestillpendingcertificationandendorsementby consultants and clients amidst thechallenging operating environment thatthe construction industry is presentlyfacing,theGrouphaswrittenoffcontractcostsamountingtoRM39.4millionduringthecurrentfinancialyearunderreview.

Withouttakingintoaccounttheaforesaidcontract costs written off, the Groupwould have recorded a higher pre-taxprofitofRM3.2millionduringthecurrentfinancialyearunderreview.

Asa result of thecontract costswrittenoff,theGroupunderperformedwithalossbeforetaxofRM36.2millionascomparedtoprofitbeforetaxofRM9.7millionintheprecedingyear.After taking intoaccountitstaximpact,alossaftertaxofRM32.6million was recorded for the currentfinancial year ended 31 December 2018ascomparedtoaprofitaftertaxofRM5.9millionachievedintheprecedingyear.

Another key factor which contributed tothe said underperformance during thecurrentfinancialyearwasduetothefactthat a significant portion of the existingongoing projects were nearing theircompletionphaseofwhichtheirearningsaccretionbegantoplateauwhilstthenewprojects were still in the take-off phasewith earnings accretion being relativelyweakerincomparison.

DIVIDEND

TheBoarddoesnotproposethepaymentof a final dividend for the financial yearended31December2018.

OUTLOOK AND PROSPECTS

Thegovernmenthassaidthatitisplanningto transform the Malaysian constructionindustryby2020.Theplanaimstoimprovethe sector in a range of areas, includingsafety and professionalism, quality,environmental sustainability, productivityandinternationalisation.

In2019,thesectorisexpectedtosustainits growth following an increase in newplanned supply in the affordable homesandindustrialsegments.Thegovernmentestimatedthegrowthoftheconstructionsectorwillmoderateto4.5%in2019from4.9%in2018.

Conventional practices with labourintensity and heavy reliance onforeign workers continue to hamperworkmanship quality and productivitygrowth in the construction industry.The private sector and the regulatoryauthoritiesneedtoworkinacollaborativemannertoincentivisetheplayerstomovetowards increased automation, precastbuildingcomponentsand improvedworkmethodology to increase efficiency suchaswastereduction,efficientutilizationofenergy,morecost-effectivealternativesofbuildingmaterialsandetcforasustainablesolutionintheconstructionindustry.

Withthisinsight,theGroupwillcontinueto intensify its efforts in pursuit ofsecuringahealthyorderbook tosustainits earnings moving forward. We fearnothing in the current climate, and weare poised to weather the storms withourdedicated,passionateandcombativeattitudestoovercomechallengesandtakeontheopportunitiesthatlieaheadinourpath.

ACKNOWLEDGEMENTS

OnbehalfoftheBoard,Iwishtoexpressour gratitude to the employees andmanagement of Ikhmas Jaya GroupBerhad for their dedication, diligence,professionalism and commitment inFY2018. I would also like to take thisopportunity to convey our appreciationto our clients, business associates,bankers, staff, shareholders and variousstakeholders for their continued supportand confidence in the Group during theyearunderreview.

Myheartfeltgratitudealsogoesouttothemanagementteamandallmembersoftheboard for their exceptional commitmentand performance, particularly during thistransformativeperiod.Withyoursteadfastsupport,wearewellpositionedtoremainresilient, accelerate our growth andimproveourperformance.

Dato’ Syed Ariff Fadzillah bin Syed Awalluddin IndependentNon-ExecutiveChairman


grOuP 4-yearfinanCial highlights

2015 2016 2017 2018

RM’000 RM’000 RM’000 RM’000

Revenue 268,656 242,567 303,166 308,193

Profit/(Loss) Before Tax 32,765 15,159 9,695 (36,226)

Profit/(Loss) After Tax 24,303 10,251 5,924 (32,607)

Share Capital 130,000 130,000 173,992 182,542

Group Earnings/(Loss) Per Share (Sen) 5.63 2.17 1.32 (5.33)

Total Assets 365,854 448,411 536,501 488,646

Net Assets per Share (RM) 0.36 0.37 0.39 0.32

2015201620172018

2015201620172018 2015201620172018

2015201620172018

(36,22

6)

(32,60

7)

268,65

6

242,56

7

303,16

6

308,19

3

365,85

4

448

,411

536,50

1

488,64

6

24,303

10,251

5,92

4

32,765

15,159

9,695

REVENUERM’000

TOTAL ASSETSRM’000

PROFIT/(LOSS) BEFORE TAXRM’000

PROFIT/(LOSS) AFTER TAXRM’000


TheyearinreviewFY2018wasayearthatreallytestedandchallengedIkhmasJayaGroupBerhad(“IJGB”)onallfronts.ThishasmadetheGroupstrongerandmorehardyandhasdriventheGrouptorealignitsoperationandbusinessstrategieswithintensityinfocusonreplenishingitsorderbooks.

The lack of major projects was not the sole contributor to IJGB’sunderperformance.The shortage of skilled labour and projectmanagementstaff,increasingregulatorycompliance,deferralinpaymentsbymajorclientswereallmajorcontributorstotheoverallresults.Thesewerethemainfactorsthatcontributedto thedelay inexecutiondeliveryofourmajorkeyprojectswhichdrivetherevenueofIJGB.

However,theGroupdidnotjustsitbackandwatchbutinsteadbouncedbackwithproactivecostoptimisationplantooverridethechallenges.

IJGBcontinuedtorightsizeitsorganisationanditscostoptimisationplantosustainitsoperationandcashflow.ThisresultedinthesignificantimprovementinitsoperatingcashflowinFY2018.

Moving forward, the Group would continuously be active in tendering formajorinfrastructureprojectswithgreateremphasisandfocusbeingplacedonbridgesandroadnetworks,borepilingandbasement(substructure)andalsofloodmitigationworkswhichistheGroup’sareaofspecialisationwhereintheGrouphasaccumulatedlotsofexperienceandexpertise.

TheyearinreviewforFY2018hasseenIkhmasJayaGroupBerhad(“IJGB”)overcomethechallengesandoddstobefirmlypoisedfortheyearahead.

ManageMentdisCussiOn & analysis

FINANCIAL PERFORMANCE

Financial Indicators 2018 2017 Variance (%)

Revenue RM’000 308,193 303,166 1.7(Loss)/ProfitBeforeTax RM’000 -36,226 9,695 >-100(Loss)/ProfitAfterTax RM’000 -32,607 5,924 >-100(Loss)/ProfitattributabletoownersofCompany RM’000 -28,961 6,929 >-100OrderBook RM’000 536,267 590,994 -9.3AverageGrossProfitMargin(BeforeContractcostswrittenoff) % 14.3 13.3 7.5EarningsBeforeContractcostswrittenoff,Interest,Tax,Depreciation&Amortization RM’000 32,881 44,631 -26.3(Loss)/Earningsperordinaryshare Sen -5.33 1.32 >-100NetAssetspershare RM 0.32 0.39 -17.9FinancialGearing % 30.12 44.03 -31.6CurrentRatio 1.18 1.46 -19.2


FINANCIAL PERFORMANCE (cont’d)

TheGroup recordedahigher revenueofRM308.2million for thecurrentfinancialyearended31December2018i.e.aslightincrease of RM5.0 million (or 1.6%) ascomparedtoRM303.2millionrecordedinthe preceding year ended 31December2017.

Thetoplinerevenuehadremainedratherflattish as the three (3) newly securedprojectswere still in their initial take offphase whilst two of the existing majorprojects i.e. thebridgeproject inMelakaandmallprojectinKualaTerengganuwerealready in their completion phase duringlastquarterofthecurrentfinancialyear.

During the current financial year underreview a lower gross profit margin of1.5%wasrecordedascomparedto9.8%gross profit margin achieved during theprecedingyear.

Without the contract costs written offamountingtoRM39.4million inthecostofsales,ahighergrossprofitofRM44.1millionwouldhavebeenachievedandtheaverageprojectmarginwouldhavebeensignificantlyhigherat14.3%.

Asa resultof thecontract costswrittenoff,theGroupunderperformedwithalossbeforetaxofRM36.2millionascomparedtoprofitbeforetaxofRM9.7millionintheprecedingyear.After taking intoaccountitstaximpact,alossaftertaxofRM32.6million was recorded for the currentfinancial year ended 31 December 2018ascomparedtoaprofitaftertaxofRM5.9millionachievedintheprecedingyear.

ManageMent discussion & analysis

CASHFLOW

2018(RM’000)

2017(RM’000)

Variance(%)

Netcashfrom/(usedin)operatingactivities 42,999 -1,556 >100

Netcashfrominvestingactivities 1,897 1,125 68.6

Netcash(usedin)/fromfinancingactivities -53,018 2,120 >-100

Net(decrease)/increaseincashandcashequivalents -8,122 1,689 >-100

Cashandcashequivalentsatbeginningoffinancialyear -27,138 -28,827 5.9

Cashandcashequivalentsatendoffinancialyear -35,260 -27,138 -29.9



CASHFLOW (cont’d)

TheGroup’snetcashfromoperatingactivitiesfortheyearimprovedfromadeficitofRM1.6milliontoasurplusofRM43.0millionandthiswasaresultofimprovedworkingcapitalmanagementwithamoresynchronisedandbettermatchingofprojectinflowsagainstoutflows.

The increase in net cash used in investing activities fromRM1.1million last year toRM1.9millionintheyearunderreviewwasduetotheadditionalcapitalexpendituresincurredtosupportthenewprojectsinhand.

ThedrawdownofnewcontractfinancingfacilitiesandproceedsfromprivateplacementofsharesfurtherenhancedtheliquidityofGroupasexistingbankborrowingscontinuedtobepareddowntoRM90.7millionin2018fromRM120.4millionin2017.

STATEMENT OF FINANCIAL POSITION

2018(RM’000)

2017(RM’000)

ASSETS

Non-currentassets 152,375 103,785

Currentassets 336,271 432,716

Total assets 488,646 536,501

EQUITY AND LIABILITIES

EQUITY

Sharecapital 182,542 173,992

Reserves -753 33,014

Total equity attributable to owners of the Company 181,789 207,006

Non-controllinginterest -6,237 -2,591

Total equity 175,552 204,415

Non-currentliabilities 27,989 35,229

Currentliabilities 285,105 296,857

Total liabilities 313,094 332,086

Total equity and liabilities 488,646 536,501

Net assets per share attributable to owners of the Company RM0.32 RM0.39

InFY2018,asaresultofthecontractcostswrittenoffbeingthedominantcontributorasmentioned above, total assets of theGroup decreased by RM47.9 million toRM488.6 million in 2018 from RM536.5millionin2017.

On the liabilities side, total liabilitiesdecreasedbyRM19.0millionmainlyduetotheparedowninbankborrowings.

Net assets per share stood at RM0.32ascomparedtoRM0.39intheprecedingyear.


CONTRACTS SECURED

IJGBorderbookwasfilledupwith additional construction jobsworth approximatelyRM283.1million secured in2018.Asat31December2018,ourorderbookstoodatapproximatelyRM536.3million.

No ProjectProject secured

in 2018(RM’000)

Order Book (As at31 December 2018)

(RM’000)

1 FloodMitigation-Sg.Pendang,Kedah 101,849 100,237

2 Lot155,JlnAmpang-Demolition&Substructure 52,000 49,814

3 LRT3(Zone2) 17,914 16,877

4 LRT3(Zone3) 18,425 15,290

5 LRT3(WCT) 5,595 4,015

6 MRT2:V204WCT 4,513 2,239

7 MarineBridge,Penang 78,000 73,187

8 OtherContracts 4,820 274,608

Total 283,116 536,267

FUTURE OUTLOOK

Asanticipatedlastyear,theconstructionindustryexpandedatarelativelyslowerpacein2018.

Withmoderatingexportgrowth,ourcurrentaccountisanticipatedtonarrowfurthertoRM28.0billioni.e.approximately2.0%ofgrossnationalincome(“GNI”)in2019.

Withourfiscaldeficittargettohoveraround3.4%ofgrossdomesticproduct(“GDP”)in2019,foreignfinancingcontinuestobeaprerequisiteandcriticalsourceoffundingforinvestmentsandinfrastructuredevelopmentsinourcountry.

AsperFourthQuarter2018QuarterlyBulletinfromBankNegaraMalaysia(“BNM”),ourcountry’sexternaldebtstoodatRM924.9billionor64.7%ofGDPasat31December2018 and RM637.4 billion or 68.9% of these external liabilities are denominated inforeigncurrencies.

Malaysia’sofficialinternationalreservesstoodatUSD102.4billionasatendofFebruary2019whichgaveaone(1)timecoverageofourshort-termexternalliabilities.

As at 31 December 2018, our country’s household debt totalled RM1.18 trillion i.e.approximately83.0%ofourGDPwhilstthefiscaldebtamountedtoRM741.05billioni.e.around52.0%ofourGDP.



FUTURE OUTLOOK (cont’d)

Anysignificantriskoffsentimentcausedby credit rating downgrade of our fiscaldebts, geopolitical risks, substantialeconomicslowdowninmajoreconomies,US-China trade disputes and regionalcurrency crisis exacerbated by furtherstrengthening of the USD could lead toaspirallingspikeup inyields (or interestrates) and depreciation of our Ringgit.Thiswouldhaveaverynegativespillovereffectwithseriousadverseconsequenceson our country’s economy and financialmarketswhicharehighlyleveraged.

Furthermore, the developmentexpenditure ceiling will be rationalisedfrom the original allocation of RM260billiontoRM220billionfortheoverall11thMalaysianPlan2016–2020asproposedduringitsmid-termreview.

Nevertheless,notwithstandingtheslowergrowth projection for the constructionindustry next year, we are cautiouslyoptimisticthatthesector’scontributiontotheGDPwillremainpositivein2019.

We also believe things could heat up inSarawak with a possible acceleration inthe rolloutofstate fundedprojectssuchastheRM5billioncoastalhighways,RM6billionsecondtrunkroadsandRM3billionwaterrelatedjobs.

Challenges remain as the governmentcontinuestoundertakestructuralreformsand recalibrate policies covering fiscal,subsidies, product and labour marketsas well as sectoral industries suchas telecommunications, construction,property, the government- l inkedcompanies,mediaandenergy.

Cost optimisation and value engineering are critical in strengthening our resilienceduring down cycles. For this, operational excellence initiatives to improve efficiency,reducecostsandenhancemarginswillbeinstituted.

In thenear-term, theManagement express a cautiousoutlookon short-termprivateinvestment growth as investors’ sentiment continue to be dampened by the stillconsiderableexternaluncertaintiessuchastheUS-Chinatradedispute,normalizationofUSmonetarypolicyaswellashowwillBrexitreallypanout.

Plansareinplacetoturnaroundtheunderperformingaspectsofthebusiness.ThefocusoftheGroupin2019willbetotallyencompassingintermsofstrategies,measuresandoperationalobjectivestofurthergrowandconsolidateourstandingsintheconstructionindustry.

Movingforward, theGroup iscautiouslyoptimisticofabetterperformingyearandabetteroutlookofthingstocome.Withaneyeontheexistingprojectsthatwouldbeintheaccelerationphase,welookforwardtobetterstreamingofrevenueandearnings.

Theyear2019wouldindeedbechallenging.Welookforwardtoitwitharenewedhope,andarefreshingpassiontogoatitagainandreachourgoals-ifnotbetterfortheoverallperformanceofIJGBin2019.



sustainaBilitystateMent

RESILIENCE IS ALL ABOUT BEING ABLE TO OVERCOME THE UNEXPECTED. THE GOAL OF RESILIENCE IS TO THRIVE. SUSTAINABILITY IS ABOUT SURVIVAL.

IkhmasJayaGroupBerhad’s(“IJGB”)solidfoundation isembeddedon its long-termmission of sustainable growth through continued effortswith an effective businessmodel.

Sustainabilityandencompassingdevelopmentcontinuetobeourcorefocusinordertoremainresilientintoday’sdynamicbusinesslandscape.Tofuture-proofourbusinesswhile creating an inclusive and balanced economic growth for all stakeholders, wecontinuously refineand strive tobe adaptive in innovative construction technologiesandcustomersolutions.

Ourpillarsofsupportarepremisedonasetofpristinecorporatevaluesandprincipleswhich treat and enrich all of our existing and potential stakeholders – shareholders,customers,suppliers,employees,regulatoryauthorities,fellowcorporatecitizensandwhosoeverinajustandequitableandsociallyresponsiblemanner.

The key metrics identified are economic performance and customer satisfaction,employeemanagement,healthandsafety,supplychainmanagement,innovationandgovernance.

IJGB’ssustainabilityframeworkhasalwaysbeendevelopedandfocusedbyprioritisingthe identifiedmaterialmatters tostreamlineourstrategy,measureperformanceandreflectthevaluecreationtoouroverallvisionandmission.Itisouraspirationforsuchtransparentdisclosuretoinstilandensureaccountability,identifyandmanagerisksandenabletheGrouptoembarkandcapturenewopportunities.

This section provides an understanding of our focus and approach with regards to sustainability, charting our commitment and path towards long term sustainable developments.


QUALITY HSE FOOTPRINTS THAT LEAD TO LASTING IMPRESSIONS

IJGB lists health and safety as a toppriority in our operations as we aim tosafeguardallouremployees,contractors,customers,suppliers, localcommunities,andotherstakeholders.DrivenbyarobustQuality, Safety, Health and Environment(QSHE) management system, weattempt to achieve zero fatality throughcontinuousmanagement,monitoringandimprovement of the Group’s health andsafetyperformance.

We face the economy at hand byleveraging on our ability to maximiseour resources and safe guarding ourenvironment,using innovativeprocessesallowedbytechnology.

The continuation of well spread outprojects will benefit the constructionindustry and the nation. This will alsoensurethesustainabilityoftheindustry.

We are impartial to stringent processessuch as examination, verification,validation and assessment on behalf ofour clients to ensure that systems andproducts are designed and constructedaccordingtospecifiedrequirements.

OPERATIONAL QUALITY IMPROVEMENT

Having achieved our certificationfor Occupational, Health and SafetyManagement Systems 18001 (“OHSAS18001”) and ISO 14001 in 2017, IJGBcontinues to provide relevant and muchneeded ISO-related training to ouremployeeswithemphasisoninternalizingand empowering them to enforce theimplementationofgoodHSEpracticesintheorganisation.

Inordertosustainourqualityperformanceanddeliveryofourprojects, key trainingandcoursesareconductedbytheGroupin order to achieve high compliancestandards.

Our new employees attended theinduction training for ISO 9001 in orderto prepare them to develop and providehigh standards in response to ourindustryneeds.IkhmasJayaSdnBhdandIJGB have both undergone a stringentsurveillance ISO9001auditexerciseandpassedwithgoodaccord.

The training programme that areconducted for quality standardimprovements, as well as for ISOStandards are those that are vital toourstaff. These programmes equipped theGroupwithwelltrainedstaffwhoprovidecompetitiveanddistinctknowledge.

KEY SUSTAINABILITY HIGHLIGHTS IN 2018

Health, safety and environment (HSE)are crucial elements in all our activities.We also require our partners includingsubcontractors to ensure HSE issuesare taken care of. HSE representativesfor project site are responsible tomakesure project is executed in compliancewith Health, Safety and Environmentalplan throughout the project duration toachievesafeprojectcompletion.TowardsachievingHSEobjective,variousactivitiesand trainingwereconducted to trainourpersonnel and to raise awareness abouthealth, safety and environmental issueatprojectsites.Intermsofenvironment,a few monitoring such as air quality,noise, vibration and water quality wereconducted during project executionto ensure with the Department ofComplianceEnvironment’srequirement.

sustainaBility stateMent


HSE TRAINING AND PROGRAMMES 2018

Date HSE Training & Programmes Project

2ndApril2018 NearMissAccidentawarenesscampaign MayangMall

28thApril2018 OSHDay2018 MayangMall

Workingatheighttraining Opus

Fire-FightingTraining Opus

13thJuly2018 ScaffoldErectionTrainingawareness BukitBintangCityCentre

14thJuly2018 SafeElectricalAwareness BukitBintangCityCentre

9thJuly2018 PPETrainingAwareness BukitBintangCityCentre

7thAugust2018 HotWorkTraining Ampang

17thAugust2018 PPETraining Ampang

18thNovember2018 Rigging&SignalmanTraining Ampang

17thOctober2018 SafetyWalkabout PulauPinang

19thDecember2018 WorkingatHeightTraining PulauPinang

WeeklyMonitoring Air,NoiseandVibrationMonitoring PulauPinang


TheseHSEtrainingsandprogrammesarefocusedinthefollowingkeyareas:• Planningforhazardidentification,risk

assessmentandriskcontrol,OHSASmanagement programme structureandresponsibility

• Training,awarenessandcompetence• Consultationandcommunication• Operationalcontrol• Emergency preparedness and

response• Performance measuring, monitoring

andimprovement



SPECIFIC CAMPAIGN AND ACTIVITIES 2018

OPUS,KualaLumpur

No. Activities Frequency

1 Fogging EveryWeek

2 Gotong-royong EveryWeek

3 Larvaciding EveryWeek

4 Toolboxmeeting EveryWeek

BukitBintangCityCentre


1 ToolboxMeeting Weeklybasis

2 SafetyCommitteeMeeting Every3months

NazaMatrade



2 MachineryInspection Weeklybasis

3 Larvaciding WeeklyBasis

4 Foggingactivity WeeklyBasis

PulauPinang


1 SafetyToolbox Weeklybasis

2 EnvironmentalToolbox Weeklybasis

Sg.Pendang


1 MachineryInspection Weeklybasis


3 SafetyInductiontonewworker MonthlyBasis

4 SignageInstallation 20thSeptember2018

TheseeffortswerecomplementedbyHSEsiteauditsthatwereconductedondaily,weeklyandmonthlybasisinvolvingsafetyandtechnical/projectteam.

TheGroupvaluesandplacesgreatemphasisonHSEinitiativesandwehaveadedicatedteamthatmanagesandmonitorsallHSEaspectsofprojectsandtoadviseonnecessaryactiontoensureasafeandsecureworkingenvironment.



ENVIRONMENT

IJGBremainscommittedtoenvironmentalsustainabilitymattersineachofthemarketsweoperatein.Aspartofourongoingeffortsto develop our own sustainability roadmap,wewill prioritise key environmental sustainabilitymatters that are important to ourbusinessesandstakeholders.

Wewant toenhance the chancesofwinning contracts and improvementson customer loyalty bydemonstratingenvironmentalresponsibility through recyclingefforts, reducingwastage,managingandhandlingwaste throughcostmonitoringprocessesandmoreusageofenvironmentallyfriendlybuildingmaterials.



RISK

IJGB has a robust risk management framework in place to safeguard our business interest and that of our stakeholders.TheframeworkisembeddedintheGroup’smanagementsystems,withclearlydefinedresponsibilities,authoritiesandaccountabilityforimplementingourriskmanagementprocessesandinternalcontrolsystem.Toensurecompliancewiththeseguidelines,ourinternalauditdepartmentregularlyreviewstheintegrityandeffectivenessoftheGroup’ssystemofinternalcontrols.

TheGroupassuresreasonableassurancethattheriskmanagementandreportingsystemsremainsound.OurrangeofpoliciesandprocessesinvolvesbothinternalandindependentcontrolssuchasInternalAudit,externalcertificationbodiesandexternalauditors.

Thesearedesignedtostriketherightbalancebetweencostandeffectiveness.Together,theyaimtohelpusachieveourbusinessobjectiveswhilecuttingtoanacceptableminimumtheriskofoperationalfailures,misstatements,inaccuraciesanderrors,fraudandnon-compliancewithlawsandregulations.

HUMAN CAPITAL DEVELOPMENT

Findingtherighttalentthatpossesstherightattitudeandtherightfitforthecompanyisadauntingandchallengingtaskbutonethatisnotnearimpossibleasourtalentacquisitionteamsaregearedandreadytomatchthatneedtoqualifiedandskilledtalents.

A senseof ownership is thedifferentiatedmentality of peoplewhowant to see their company thrive, ensuring stability, profitsandgrowth. It’s thatculturewhich iscultivatedhereat IJGB,thuscreatingequal ifnotprofessionalopportunitiesforgrowthanddevelopmentacrosstheorganisationalstructure.

A senseof ownership in job successgives themotivational drive andpride of achievement desiredby every professional in anorganisationthatseekslastingsuccess.

STAFF WELFARE

Insupportofsustainablegrowth,IJGBalsosupportslongtermsustainablerelationshipwithitsstakeholders,thatalsoincludesitsemployees.

ThereisastrongsenseofbelongingintheworkingenvironmenthereatIJGBwitheverysingleoneofourstaffmadetofeelthattheyareapartofthislargefamily.Weneverceasetoappreciatethemthrougheventslikebirthdaycelebrations,Christmas,NewYearcelebrations,CNY,HariRayaluncheonsandspecialoccasions.

TheGroupalsoprovideslogisticsupporttoouroutoftownstaffwithhomeaccommodation,andtransportinadditiontokeycommonbenefitsbeingenjoyedbyallstaff.

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