Frontken Berhad Annual Report 2017

11 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2017 Chairman’s Message (cont’d) In spite of the decrease in revenue from the power generation industry, the profit only dropped marginally due to the Group’s effort in promoting multi- skilled and cross trained manpower coupled with better cost management. The Group sees some opportunity for growth in the provision of on- site activities, testing equipment and infrastructure support to provide our clients with a more comprehensive solution. The power generation industry will see an improvement in the coming year with the expected scheduled shutdown of major power plants starting in the first quarter of 2018. FRONTKEN SINGAPORE Frontken Singapore saw a positive pay off from the semiconductor business in FYE2017 with a recorded operating profit of RM4.4 million from a revenue of RM55.6 million. That was a 487.5% and 24.7% improvement respectively from the preceding year. While the Group’s semiconductor division in Singapore is growing by leaps and bounds, the engineering division unfortunately did not fare as well due to the shrinking business from the oil and gas industry. Last year, the semiconductor division concluded negotiations with one of the leading worldwide suppliers of high performance sensor solutions which will contribute positively to the Group’s performance in the years to come. While the Group anticipates oil price to improve in the coming year, we will not be complacent but will continue to streamline our operations to improve cost efficiency in the engineering division. Moving forward The results of 2017 was a reflection of what we are capable of and had made us more confident and cautiously optimistic about our future. Our performance over the years had encouraged us to continuously work harder in improving our operations with emphasis on productivity and innovations. While we are excited with what 2018 has to offer, we will not rest on our laurel and will continue to be vigilant to ensure that we will perform even better than 2017. We will continue to evaluate and explore appropriate opportunities to grow our business and increase our footprint. Our long term strategic goals are clear and we are committed to provide our clients with incomparable support and service to ensure long term fruitful relationship and at the same time ensuring maximum return to our shareholders. Acknowledgement On behalf of the Board, I would like to thank our Board of Directors for its continuous guidance and steadfast support throughout the year. I would also like to extend my sincere thanks to all my colleagues for their dedication and irrepressible drives and commitment in working together to achieve our vision. To the customers, suppliers, business associates, government authorities as well as regulators of the countries in which we operate, we thank you for giving us the opportunity to work with you and the support that you have given us. Last but not least, we would like to extend our sincere gratitude to our loyal shareholders and stakeholders for your continual support, trust and confidence in us. NG WAI PIN Chairman / Chief Executive Officer