as extracted from Annual Report 2024
Tan Sri Abdul Rashid bin Abdul Manaf
Chairman, Independent Non-Executive Director
Dear Valued Shareholders,
On behalf of the Board of Salcon Berhad ("Company"), it is my privilege to present to you
the 2024 Integrated Annual Report and Audited Financial Statements of the Company and its
subsidiaries ("Group").
Celebrating 50 Years of Growth and Innovation
As we commemorate Salcon's 50th anniversary, we reflect on our journey from a water engineering and construction company in Shah Alam, Selangor, to a diversified group with a growing presence across sectors. While water remains our core business and a key strength, we have strategically expanded our presence across ASEAN and the UK, embracing advanced technologies while solidifying our position in the water and wastewater industry. Our portfolio now includes glove manufacturing, technology services, renewable energy, transportation, property development and healthcare, which is in line with our vision to transform lives for the better.
Resilience in a Challenging Global Landscape
Stepping into 2024, the world is confronted by unresolved geopolitical tensions, inflationary pressures, rising interest rates and climate-related issues. Despite these headwinds, Salcon has remained resilient, leveraging its agility to navigate uncertainties and seize emerging opportunities. While competition remains intense within the water and wastewater industry, strong relationship management has now become essential. At the same time, governmental support and infrastructure development initiatives continue to provide growth momentum.
In FY2024, we remained steadfast in rebuilding our profitability and made solid progress. Our results underscore our ability to navigate complex market conditions while staying committed to driving sustainable growth.
Advancing Our Sustainability Journey
Our commitment to sustainability remains at the core of our growth strategy. Aligned with this commitment, we have made significant strides in diversifying our business. This year, we gained momentum in our healthcare division through the acquisition of a 70% shareholding in SPH Dental Sdn. Bhd., marking our strategic expansion into the healthcare sector with a focus on enhancing lives and well-being.
Our strong positioning in Malaysia provides an excellent opportunity for Salcon to contribute toward sustainable development initiatives in our industry. This commitment was underscored by the Langat 2 Package 3 project, which is due for completion in April 2025. This project involves the design and construction of a 2,000-metre residual conveyance and disposal system, significantly reducing carbon emissions and minimising disruptions to local communities. Moving forward, we will remain committed to advancing sustainability the principles of the UNSDGs, particularly SDG 6 (Clean Water and Sanitation), SDG 9 (Industry, Innovation and Infrastructure) and SDG 13 (Climate Action).
Charting the Path Forward
Looking ahead, the global landscape remains fraught with continuing geopolitical tensions and economic volatility. Despite these challenges, Salcon will continue to progress with its journey to achieve its vision and shape a sustainable future that will contribute to the interest of the nation, industry and communities.
Our strategic direction is underpinned by our four key growth drivers: Cost and Operational Effectiveness, Strategic Diversification, Driving Technology and Innovation and Embedding Sustainability. These pillars will guide us in navigating tenacious uncertainties and an increasingly competitive market while reinforcing our position as a leading company in the water and wastewater industry.
Additionally, Salcon will continue to rebalance and rationalise our portfolio, prioritising capital allocation towards core businesses to drive long-term growth and resilience.
At the same time, we remain focused on maintaining a robust balance sheet that supports our sustainable future, ensuring profitable growth and strong cash generation for the short-term.
Acknowledgments and Appreciation
A key highlight of the year was hosting a delegation from the All-China Environment Federation ("ACEF") in September 2024. This esteemed delegation, comprised industry leaders and government officials from China, which further strengthened our international partnerships through valuable knowledge exchange and discussions on global best practices in water management.
On behalf of the Group, I would like to take this opportunity to express sincere gratitude for the support Salcon has received from the governments, its agencies, regulators and private employers and the opportunity to continue to serve in the market and partner in their development efforts. I also wish to express appreciation to our Board for their invaluable insights and guidance. To the Group's employees, our deepest gratitude for your hard work and dedication over the past year in driving Salcon's success. As for our shareholders, partners, suppliers and customers, we thank you for your continued trust and support in our journey.
Together, we reaffirm our commitment to creating long-term sustainable value and shaping a resilient and sustainable future for all.
Thank you.
Tan Sri Abdul Rashid bin Abdul ManafChairman, Independent Non-Executive Director