Stay abreast with the latest happenings in Cahya Mata Sarawak Berhad (CMS).


CMS among Five Finalist for “Report of the Year” at Australasian Reporting Awards 2020

CMS is also First ASEAN Finalist in the 70-Year History of the ARA

Kuching (Sarawak), Thursday, 25 June 2020 – Cahya Mata Sarawak (CMS) was recently named one of five finalists for the “Report of the Year Award” at the prestigious 2020 Australasian Reporting Awards (ARA) event. CMS was also a recipient of an ARA Gold Award for distinguished reporting which enabled it to qualify as a finalist for the Report of the Year Award. CMS’ inaugural Integrated Report 2018 also had the added distinction of being the first ever report from a company within ASEAN to be selected as a finalist in the 70-year history of the ARA.

The winners of the 2020 ARA were announced yesterday over a virtual awards presentation event broadcast from Melbourne, Australia. Introduced in the 1950s, the annual ARA event celebrates private sector, public sector and not-for-profit organisations from Australia, New Zealand and throughout the Asia-Pacific region that uphold world class reporting standards.

The ARA Report of the Year Award is presented to the most outstanding annual report entered in the Awards. The finalists for this award are selected from among those reports that have received a distinguished Gold Award and are subject to further rigorous review by the ARA Awards Committee. All reports are benchmarked against stringent ARA criteria which are based on world best practice standards. CMS was one among 69 participants who won a Gold Award at the 2020 ARA event and the only Malaysian organisation to make the list of finalists. Two of the other four finalists hailed from Australia and the other two from New Zealand.

Commenting on CMS’ achievement was Group Managing Director, Dato Isaac Lugun who had this to say: “We are both humbled and elated to know that the quality of our maiden Integrated Report stands on par with other distinguished reports that uphold world best practices. This achievement underscores our commitment to excellence and to raising the standards of our reporting and disclosure.”

“Being a passionate, people-led organisation, CMS makes every effort to exceed the expectations of our discerning stakeholders and uphold the responsibilities we are entrusted with. We have endeavoured to approach our business in ways that truly preserve and create stakeholder value. I am pleased to say that CMS has been doing just that by remaining agile amidst an increasingly challenging playing field, as well as by rolling out relevant and focused business strategies.”

“Our move towards integrated reporting serves to capture in a more formal and transparent manner, the way in which CMS has been aligning strategy with value creation and performance. This has been happening for some time now across the Group and the resources that we utilise. By formally demonstrating how we are creating real value for our stakeholders over the short, medium and long-terms, we aim to strengthen stakeholder confidence and bolster our position as a preferred company on Bursa Malaysia.”

Dato Isaac went on to say, “We are honoured to be counted among the five finalists that hailed from diverse geographies and industry sectors. We also take pride in the fact that CMS was the only Malaysian entity (and a Sarawakian company at that) to be counted among the five finalists. We also have the double honour of knowing that we are the first organisation within ASEAN to have been nominated as a finalist since ARA’s inception some 70 years ago.”

According to the ARA Awards Committee, all five finalists achieved a very high standard in annual reporting with each finalist found to have committed to providing a report that responded to stakeholders’ needs with disclosures that were honest, open and genuine. In a world where trust in large corporations and government agencies is diminishing, the tenets of integrity, transparency and balanced reporting are the keys to rebuilding that trust. All of the finalists distinguished themselves in these areas and the overall standard was so high that judges had a very difficult task in selecting a winner.

Established in 1950 by a group of business leaders who were keen to establish awards for excellence in preparing annual reports, the ARA aims to constantly improve the standards of financial reporting and communication with stakeholders. The criteria for the ARA include an open and proactive stance towards communication, attention to detail and accuracy, a sensitivity and responsiveness to stakeholders, a willingness to put in the effort to communicate effectively, as well as a commitment to achieving and enhancing standards.

CMS Highlights Actions to Regain Business Momentum Following Sarawak’s First Virtual AGM

Kuching (Sarawak), Sunday, 21 June 2020 – Following the conclusion of its virtual 45th Annual General Meeting (AGM), Cahya Mata Sarawak Berhad (CMS or the Group) has come to the fore to reaffirm the proactive actions it is taking to regain business momentum amidst the Recovery Movement Control Order (RMCO) phase.

On 18 June 2020, CMS concluded the first ever online AGM to be held by a Sarawakian public-listed company. This year, the Company out of concern for the well-being and safety of its shareholders and in compliance with MCO regulations, conducted its 45th AGM via live webcast as well as Remote Participation and Voting (RPV) facilities.

The live webcast was broadcast from the auditorium at Menara Symphony in Petaling Jaya with only a handful of CMS’ key senior management in attendance. Meanwhile shareholders participated remotely from the comfort of their smart devices or personal computer/notebooks. During the AGM proceedings, shareholders were able to ask questions in the chat box and submit their votes in real-time. To ensure the AGM proceeded smoothly, CMS allowed proxy forms to be lodged electronically via the Boardroom Smart Investor Portal while voting was conducted by way of RVP electronic polling. An independent poll administrator was appointed to scrutinise, verify and validate the poll results. The AGM saw all the 11 ordinary resolutions that were tabled duly approved by CMS’ shareholders.

Commenting on the recently concluded AGM, CMS Group Managing Director, Dato Isaac Lugun had this to say: “Even as the Covid-19 pandemic has seen the onset of whole new set of challenges for all of us, we are pleased to return to some semblance of normality by being able to conclude this AGM  in a virtual manner. We are also pleased to report that despite the initial challenges of the MCO, we were still able to publish our Integrated Annual Report and Sustainability Report for 2019. Carrying the common theme “Creating Future Value”, both these reports are available for download from CMS’ corporate website at”

Dato Isaac went on to say, “While this unprecedented crisis has taken a toll on our nation, economy and people, we are glad to see many parties proactively working together to mitigate the effect of the pandemic and challenging but necessary MCO. As the leading listed corporation in the State of Sarawak, CMS on its part has sought to protect our business and stakeholders while preserving value in several ways.”

“Firstly, we have sought to prioritise employee safety and health by adopting protective measures and working practices to ensure workplace health and safety. Employee welfare too has been prioritised with full remuneration delivered on schedule. We have also sought to ensure the welfare of our suppliers and contractors and made a special effort to settle all outstanding invoices in a speedy manner to help alleviate any financial challenges that they may be facing.”

“To preserve shareholder value, our team was busy devising response plans and protocols during the lockdown. This gave us the means to swiftly re-commence operations in mid-May during the Conditional MCO period. Today, we continue to focus on ensuring sustainable long-term growth and upholding good shareholder returns.”

“To ensure our financial resilience, we are now laser-focused on implementing catch-up strategies following the reopening of our operations across the board. We continue to enhance operational efficiencies to attain cost savings and enhance cost control measures including rationalising our capital expenditure (capex). As such, non-essential capex has been minimised, while essential capex will be implemented in stages. On top of this, we continue to preserve cash for business operations and future investment.”

Dato Isaac also highlighted that CMS is back on its feet and primed to capture opportunities in three major growth areas within Sarawak. “Opportunities abound within the Sarawak Corridor of Renewable Energy (SCORE) and CMS’ associate company, OM Materials (Sarawak) Sdn Bhd, and subsidiary, Malaysian Phosphate Additives (Sarawak) Sdn Bhd, are well positioned to capitalise on the energy-intensive industries they are engaged in within SCORE.”

“On top of this, there are ample opportunities to be tapped via the unprecedented spike in infrastructure development in Sarawak. To this end, the Group’s Cement, Construction Materials & Trading, as well as Construction & Road Maintenance Divisions are ramping up their operations to cater to market needs. Finally, as Sarawak wholeheartedly embraces the Digital Economy, CMS is ready to play a leading role in telecommunications infrastructure development activities through our strategic stake in telco player, SACOFA Sdn Bhd.”

Dato Isaac also commented on CMS’ strategy moving forward: “CMS will continue to bring into play a three-pronged strategy which will see our team working to reposition and fortify our traditional core businesses; fully implement and grow our strategic businesses; and reposition and strengthen the CMS brand.”

“Barring unforeseen circumstances, our ambition of achieving an annual PATNCI of RM500 million within five years and realising our softer target of becoming the most admired Sarawak public-listed company are still very realistic targets to us. Despite the challenges besetting our economy and many companies, we are confident of getting back on track to regain whatever momentum we have lost,” concluded Dato Isaac.


CMS Reassures Market of Sufficient Cement Supply

Kuching (Sarawak), Sunday, 17 May 2020 – Following a recent outcry by some contractors that an inadequate supply of cement is hindering them from recommencing construction activities, Cahya Mata Sarawak Berhad (CMS or the Group) is stepping forward to reassure the market that there will be a sufficient supply of cement effective Monday, 18 May 2020.

In response to concerns by certain parties, CMS Group Managing Director, Dato Isaac Lugun had this to say: “We would like to reassure all construction players that an adequate supply of cement is being prepared for distribution to the market effective tomorrow and not after Gawai as inferred by some. In fact, as of 15 May 2020, the operation of the Group’s wholly owned subsidiary, CMS Cement Industries Sdn Bhd (CMS Cement or the Company) in Sibu was up and running in full compliance with all standard operating procedures (SOPs) outlined by the relevant authorities.”

“All the Company’s other cement production and distribution facilities are being prepared in full compliance with the stringent SOPS set and we anticipate that all our cement manufacturing operations throughout Sarawak will be in full swing by tomorrow. Barring unforeseen circumstances, this essentially means that the supply of cement will be made available to local businesses throughout Sarawak effective Monday, 18 May 2020 and not later as implied.”

Dato Isaac also went on to say, “The CMS Group realises its responsibility to provide an uninterrupted supply of cement to the state of Sarawak. In line with this, our business continuity plan mandates that we always have a minimum reserve stock of cement in our silos. Given that construction activities were not allowed during the Movement Control Order, this stock remains untouched and we are ready to meet the demand for cement once our operations commence.”

The CMS Group does not foresee any supply issues moving forward. Currently CMS Cement operates using a system of authorised dealers where it has over 25 dealers servicing its customers throughout the state. These dealers actually began taking orders from customers earlier last week. CMS Cement advises its customers to place their orders through their respective dealers and to ensure that their dealers in turn place their purchase orders accurately and in a timely manner with the nearest CMS Cement sales office.

The CMS Group operates production and distribution facilities in every major town within Sarawak. These include two plants in Kuching (the Mambong Integrated Plant and the Pending Grinding Plant), one plant in Bintulu (the Bintulu Grinding Plant), as well as bulk terminals in Sibu and Miri.

“Through our strategically located plants and terminals (all of which are outfitted with packing and bulk distribution capabilities), the market can rest assured that all of Sarawak’s main centres of economic activity, namely Kuching, Sibu, Bintulu, Miri, as well as the emerging markets of Samalaju, Mukah, Lawas and their hinterlands, will have a stable and sufficient supply of quality bag and bulk cement to meet their needs effective 18 May 2020”, added Dato Isaac.

CMS Cement produces the CEM 1 42.5N and 32.5N grades of cement. Through these products, it provides its customers a range of cement product types that meet general and specific project requirements at different price points. A third product, the premium grade 52.5N grade (MS EN 197-1 standard) Portland Cement, is produced for export purposes and to meet the needs of projects that have a specific need for a higher-grade cement.

CMS Cement to Recommence Sarawak Manufacturing Operations on 15 May 2020

Kuching (Sarawak), Monday, 11 May 2020 – In line with the recent announcement by the Sarawak State Government that most economic sectors will be allowed to operate amidst the Conditional Movement Control Order (CMCO), CMS Cement Industries Sdn Bhd (CMS Cement or the Company) is currently readying its cement manufacturing operations  to serve the Sarawak market once again.

A wholly owned subsidiary of Cahya Mata Sarawak Berhad (CMS or the Group), the Company is preparing to recommence business by rigorously observing all standard operating procedures (SOPs) to ensure speed to market is addressed. At the same time, CMS Cement is activating business continuity plans to ensure the preservation of its cement manufacturing business once operations are up and running.

The recommencement of CMS Cement’s operations will see its Sibu terminal becoming operational on 15 May 2020, while all its other cement-related operations across the State will come into full force on 18 May 2020. As the Sibu terminal is a key supplier to the Baleh Dam Project, the commencement of its operations has been prioritised.

Commenting on CMS Cement’s preparations to recommence business, CMS’ Group Managing Director, Dato Isaac Lugun had this to say: “As we prepare to ramp up the Group’s cement manufacturing operations, we are prioritising the safety of our employees and customers by bringing three key initiatives into play.”

“The first initiative will see us adhering strictly to the comprehensive SOPs outlined by the Sarawak State Government and the Ministry of Health.  Secondly, CMS Cement will carry out full sanitization of all its facilities covering offices, production plants, packing and loading bays and weighbridges. Thirdly, CMS Cement will be conducting medical screening for its staff to ensure only those who are pronounced Covid-19-free are allowed back to work. All these activities must be done properly and cannot be rushed, so a target commencement date of 18 May is feasible.”

In addition to these key initiatives, CMS Cement is also taking measures to enhance its facilities by improving ventilation at its offices as well as installing more shower bays and rest areas. At the same time, basic controls such as personal hygiene and social distancing will be strictly adhered to. All these initiatives once fully implemented will not only safeguard the staff of CMS Cement, but also all others who frequent its facilities such as its customers, contractors and transporters.

“While the rules are being relaxed under the CMCO and people begin to get back to their daily activities under the ‘new normal’, we must remain vigilant in our fight against Covid-19.  We urge all other public and private sector organisations within Sarawak to not let down their guard but take the necessary measures to keep their people safe. By working together, we will get through this crisis and emerge a stronger and more resilient State,” added Dato Isaac Lugun.


OM Materials (Sarawak) Donates RM1.4 Million of Protective Wear to Safeguard Front-Liners

Kuching (Sarawak), Wednesday, 22 April 2020 – OM Materials (Sarawak) Sdn Bhd, an associate company of Cahya Mata Sarawak Berhad (CMS), has stepped forward to donate RM1.4 million worth of Personal Protective Equipment (PPE) to government and medical front-liners.

The PPE comprising 10,000 disposable medical protective suits, 10,000 isolation gowns, 5,000 face shields, and 5,000 safety goggles will go a long way in safeguarding Sarawak’s front-liners tasked with the challenging duty of treating suspected and infected COVID-19 patients.

The donation was handed over today by CMS Group Managing Director, Dato Isaac Lugun and Mr Mustapha Bin Ismuni (both directors of OM Materials (Sarawak) Sdn Bhd), to Sarawak’s Deputy Chief Minister, Datuk Amar Douglas Uggah Embas (who is also the Chairman of the State Disaster Management Committee).

Commenting on the donation, the Executive Chairman of OM Materials (Sarawak) Sdn Bhd, Mr Low Ngee Tong said, “The COVID-19 pandemic is a global crisis of an unprecedented scale, no countries are exempt, and it has taken its toll on Sarawak. We are keen to assist the Sarawak Government in containing the spread of this pandemic”.

He added, “Given the limited capacity of current equipment supply chains, we are pleased to be able to sponsor the PPE as a show of our sincere support for the Sarawak Government, the front-line workers at Sarawak hospitals, and many others that have been working tirelessly in containing the pandemic. We sincerely hope that this small contribution will help ease the burden, and lift the spirits and confidence of front-line workers in discharging their challenging duties in treating COVID-19 suspect cases and patients”.

Commenting further on the donation, Dato Isaac Lugun said, “As a leading listed corporate entity in Sarawak, CMS will continue to support the Sarawak Government’s tireless efforts to contain the COVID-19 pandemic in Sarawak. We urge other corporate entities within Sarawak to step forward to lend their support. By working together, we will get through this crisis and emerge a stronger and more resilient State.”