Saturday, 12 September 2020
Dato Isaac Lugun aims to set up another milestone for CMS.
The Cahya Mata Sarawak Berhad (CMS) of today is an independent, professionally run business in pursuit of value creation for its stakeholders.
“We need to adapt and evolve amidst an increasingly challenging playing field to achieve our ambitions and strengthen our fundamentals,” said its Managing Director Dato Isaac Lugun who is pushing this agenda.
He has identified a three-pronged strategy to lay a solid foundation and set strategic direction for the group to remain relevant and be best-in-class in its market segments.
The First Prong – Reposition and fortify our traditional core businesses
The first prong of this strategy calls for CMS to reposition and fortify all traditional core businesses.
For those who are unfamiliar with the group, CMS’ traditional core businesses lie in cement, construction materials and trading, construction and road maintenance as well as property development.
To fortify its core businesses, Isaac emphasized the need for CMS to strengthen collaboration with the State Government.
CMS and the State government have enjoyed a long standing and valued relationship for almost four decades. Isaac pointed out that it is a marriage of strengths.
“We have successfully collaborated on many milestone infrastructure projects. A move in the right direction to escalate this relationship and the first realignment step was to dispose two per cent interest in PPES Works and CMS Resources to SEDC (Sarawak Economic Development Corporation) which will result in SEDC holding 51 per cent of each entity upon completion of the transaction.”
“We are fully committed to assist the State in realizing its infrastructure development agenda. Our goal is to work together for the benefit of the State and its people,” said Isaac.
The new landmark of Sarawak – the new Sarawak Museum was a project of CMS.
The Second Prong – Fully implement and grow strategic businesses
As the State moves into a new era of growth with (Sarawak Corridor of Renewable Energy (SCORE), CMS’ expansion path is moving into a new trajectory to take advantage of the business investment opportunities in energy-intensive industries.
The second prong mandates that CMS ramps up efforts on strategic investments which centre on export-oriented industries within the SCORE.
“We evaluated a number of businesses to secure our future and saw that renewable energy was key. It is the one asset that Sarawak as a State has ample resources of, especially hydro power.
“It was this attraction that saw us making strategic investments in ferrosilicon and manganese alloys smelter operations under OM Materials (OM) and an integrated phosphate complex under Malaysian Phosphate Additives (MPA).
“Today, CMS is the only Sarawakian company with a footprint in SCORE. By doing so, the Sarawak State will attract further foreign investment in downstream industries,” said Isaac.
CMS also owns strategic stakes in telecommunication infrastructure via SACOFA Sdn Bhd (50 per cent stake) as well as in other listed companies namely KKB Engineering Berhad (20 per cent stake) and Kenanga Investment Bank Berhad (26.25 per cent stake).
“We constantly review our strategic investment portfolio to diversify from our traditional core and maximize returns for our shareholders,” commented Isaac.
The wielders at OM Materials Sarawak Sdn Bhd. (Picture courtesy of CMS)
The Third Prong – Reposition and strengthen the CMS brand
While financial performance and growth are of utmost importance, CMS is also paying significant attention to reposition and strengthen its brandname.
This is well underway with appointment of its high calibre professional management team, institutionalized shareholdings and strong corporate governance.
By keeping a steadfast focus on responsible business practices and sustainable growth, the group continues to create tangible stakeholder value and ensure long-term success.
“One of the tangible manners in which we continue to create value for our stakeholders is via upholding the agenda of sustainability within CMS.
“Our aim is to create a vibrant performance-driven workplace, be a leader in good environmental practices, and serve as a model for giving back to the community.”
CMS has an outstanding sustainability record. It won the coveted CSR Leadership Gold Award at the Global CSR Awards 2019 and remains the only Sarawakian company to be made a constituent of the FTSE4Good Bursa Malaysia index.
“To be an investible company, business and financial performance are just one side of the coin. Institutional investors are increasingly putting emphasis on sustainability and governance,” said Isaac.
CMS clinker plant at Mambong. (Picture courtesy of CMS)
Becoming Sarawak’s Most Admired Company
“To help us maintain our growth momentum, we have identified key foundation stones that underly our strategies. We are keeping a laser-focus on outcomes to attain our next stage of growth and to achieve RM500 million profit in 5 years’ time.”
CMS firmly believes that growth can only happen if there is sustained, dynamic, cohesive and engaging leadership in place.
To make the CMS vision a reality, Isaac is convinced that he has put in place a capable team from senior leadership to division heads. Currently, all executive positions and the subsidiary boards are filled by professionals who bring a wealth of expertise and experience.
To achieve transformational efficiencies across the organization, CMS is embracing digitalisation and innovation in a more robust manner.
“CMS’ Digital Transformation initiative will enhance the Group’s productivity, cost efficiency, accessibility and digital security for the long-term. This will eventually see all our businesses operate on a single unified platform.”
“We inculcate specific values that will help engender our growth momentum. Integrity, passion, grit, teamwork and accountability are the guiding principles of our corporate culture.
“While building our businesses, we also aim to impart the right ethics to our team to carry on the shinning CMS torch.”
“We believe that by continually posting resilient and profitable results, as well as by upholding stellar business ethics, transparency and absolute dedication to compliance, CMS is well on its way to becoming ‘Sarawak’s Most Admired Company’,” said Isaac.— DayakDaily
CMS project: Samalaju Resort Hotel. (Picture courtesy of CMS)