51 Performance Revi ew Sect ion 02 Annual Report 2022 MANAGEMENT DI SCUSS ION & ANALYS I S RANHILL BERSEKUTU SDN BHD (“RBSB”) As a result of its aggressive bidding efforts, RBSB replenished its order book to RM367 million as at end FY2022. The order book will provide revenue and earnings visibility for 2-5 years. The securing of projects were achieved against a tumultuous backdrop of general elections and a recovering domestic economy, where both private and public spending on infrastructure projects were still far below pre-pandemic levels. General Elections 15 (“GE15”) had led to many projects being deferred to FY2023. RBSB continued to register steady progress in completing all projects in hand in FY2022. These included Ranhill’s LSS4 landmark project and various water supply related and flood mitigation infrastructure projects nationwide. The financial close of the 50 MW LSS4 solar PV project in Bidor, Perak was protracted and this subsequently, delayed the progress of physical works and resulted in lower revenue recognition (derived from the project). The project has received an extension of time of five months with a new SCOD date of 30 November 2023. RBSB is expediting work towards achieving completion. As at 31 December 2022, physical progress achieved is on track with where land clearing is completed. Procurement of major components and equipment has commenced and works are scheduled to start by Q1 2023. Other project highlights include the infrastructure engineering works and related services for the KLIABaggageHandling SystemReplacement contract. RBSB was also awarded the design and construction of two specialist hospitals. These are the new, 155-bed, 10-storey Avisena Specialist hospital in Shah Alam and the second, the construction and refurbishment of the 250-bed, 8-storey Puteri Hospital Johor Bahru. RBSB’s scope of works for both hospitals comprises design and consultancy as well as project management. In Q1 2023, RBSB secured another hospital project from Avisena Group located in Cyberjaya. The hospital contract awards are significant as it marks our entry into a niche field of construction that requires specialised technical expertise and capabilities. There is also a growing demand for more hospitals to be built nationwide to cater to population expansion and to provide high-quality, accessible healthcare. The experience gained in designing and building both hospitals will enable RBSB to bid for future contracts, both in Malaysia and the region. Another notable highlight was RBSB’s involvement in several flood mitigation projects. Among these was the RM2.93 million contract for JPS in Kota Belud, Sabah. Other projects secured included project tenders by NRECC for Study of Development of New Water Resources in Kelantan (contract value RM1.0 Million) as well as Development of Hilltop Water Resources at Genting Highlands for Genting Berhad at RM1.70 million. The Kota Belud flood mitigation project it is also significant as with the onset of climate change, there will likely be more requirements for flood mitigation projects nationwide. Many geographical locations in Malaysia are susceptible to flood risks and will require solutions. Having proven our capabilities with the Kota Belud flood mitigation project, Ranhill stands in good stead to bid for similar projects going forward. In FY2022, RBSB established its Building Information Modelling (“BIM”) unit towards improving the efficiency and constructability of its design proposals. BIM enables closer collaboration between all stakeholders by facilitating seamless sharing of information and the ability to eliminate design conflicts and errors. BIM can also be utilised to calculate resource and manpower requirements. With the establishment of its BIM unit, from the contract that was secured in 2021 for BIMmanagement for the Sarawak Metro KUTS Line (RM 1.97 million), RBSB has secured a new BIM management contract for the baggage handling system upgrade in KLIA. Multi-disciplinary engineering firm with a proven 50-year track record Projects in more than 21 countries created throughout Asia, the Middle East and Africa ISO 9001:2015 (Quality Management System) ISO 14001:2015 (Environment Management System) ISO 45001:2018 (Occupational Health and Safety Management System) ISO 37001:2016 (Anti-Bribery Management System)
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