Kimlun Corporation Berhad Annual Report 2020

'VSUIFS UIF (SPVQ T DPOTUSVDUJPO BSN XJMM VOEFSUBLF DPOTUSVDUJPO works for in-house property development projects as detailed in the FOTVJOH TFDUJPO PG UIJT SFQPSU .FBOXIJMF UIF (SPVQ XJMM CF TFMFDUJWF and remain cautious in the bidding of other private sector projects, to mitigate credit risks. 5IF (SPVQ XJMM DPOUJOVF UP JNQMFNFOU UIF GPMMPXJOH NFBTVSFT UP NJUJHBUF UIF JNQBDU PG UIF $07*% QBOEFNJD UP UIF (SPVQ T business: (i) take the necessary precautionary and safety measures at our business premises and work sites in accordance with guidelines from health authorities and government bodies; (ii) frequent senior management operational meetings to strategize, identify and solve operational issues; (iii) communicate with suppliers on their stocks readiness and procure alternative suppliers/supplies to improve supply chain lead times where necessary; and (iv) explore and implement, where workable, cost optimization measures Singapore Construction Sector The Building and Construction Authority of Singapore (“BCA”) projects the total construction demand in 2021 (i.e. the value of construction contracts to be awarded) to range between S$23 billion and S$28 billion. This is an improvement from the S$21.3 billion (preliminary estimate) in 2020 during the ongoing COVID-19 pandemic. MANAGEMENT DISCUSSION AND ANALYSIS The public sector is expected to drive the construction demand in 2021, to between S$15 billion and S$18 billion with an anticipated stronger demand for public housing and infrastructure projects. Some of the upcoming major public sector projects scheduled to be awarded this year include various contracts under the Jurong Region MRT Line, the Cross Island MRT Line Phase 1 and the Deep Tunnel Sewerage System Phase 2. Private sector construction demand is projected to be between S$8 billion and S$10 billion in 2021. BCA projects the bulk of private sector construction demand in 2021 to comprise development of the remaining en-bloc residential sites, major retrofitting of commercial developments as well as construction of high-specification industrial buildings to meet business needs. BCA expects a steady improvement in construction demand over the medium term. It is projected to reach between S$25 billion and S$32 billion per year from 2022 to 2025. Our subsidiary, SPC, has very strong track record in the supply of precast components including TLS, concrete rail sleepers and jacking pipes to large public sector infrastructure projects in Singapore including Singapore MRT projects, Deep Tunnel Sewerage System Phase 2 and Singapore Power’s underground cable tunnel. Further, SPC has been a frequent supplier of IBS components to various projects in Singapore. With its strong track record in Singapore, SPC is well positioned to compete for further potential sales orders from MRT and sewerage projects. Annual Report 2020 024