KUCHING: Bintulu-based Harbour-Link Group Bhd is bullish on its business growth through capitalising on regional corridor developments in Sarawak and Sabah.
Group managing director Yong Piaw Soon said the group would further benefit from the economic activities generated by the inflow of foreign direct investments into Sarawak Corridor of Renewable Energy (SCORE) and Sabah Development Corridor (SDC).
“Initiatives by the Government to boost the country’s petroleum sector, especially with projects focusing on the development of global oil trading and storage business such as the refinery and petro-chemical integrated development (RAPID) in Pengerang, will also support future business growth of the group,” he said in the company’s newly released 2013 Annual Report.
Harbour-Link’s core business is providing shipping and total logistics services, with its footprints extending across the intra-Asian region. The group is also into engineeering and construction jobs.
Yong said the country’s logistics industry had bright prospects, supported by the ongoing economic growth and strong intra-Asian trade.
“Growth in cargo volumes is expected to continue, taking into consideration the resilience of the country’s external trade thus far. This is a positive indicator for the industry especially for import and export forwarding, as well as air and ocean freight related businesses.
“Looking forward, the coming period is expected to be favourable as we expect government’s measures such as the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP), will continue to cultivate a business environment that is conducive to the growth of our activities,” he added.
Yong said the group would further tap into the synergies of its integrated businesses to capitalise on its strength and nurture its capabilities for future opportunities.
“We are focused on growing the value of the services and products that we offer and to do this, we will continue our ongoing efforts to enhance the capabilities of our people.
“In an increasingly competitive employment market, we need to work harder and smarter to come up with effective strategies to attract, retain and develop talents,” he said.
For the full financial period ended June 30 this year, Harbour-Link recorded group’s pre-tax profit of RM17.6mil, down from M35.2mil a year ago, due to impairment of goodwill amounting to RM25.6mil. Group’s revenue fell by 10.6% to RM422.7mil year-on-year.
Yong attributed this to the completion of several major equipment supply projects.
However, he added, this was partly compensated by the substantial increase in the logistics and equipment rental businesses and marginal increase in the shipping business brought about by higher cargo volumes.
“Despite a contraction in revenue, the group managed to chalk up RM49.8mil in profit from operations, which is the best performance thus far.”