The Boustead Group has endured its fair share of trying years and it has never impeded us from pursuing the
opportunities that lay inherent within our six divisions. This year was no exception as we weathered another difficult year,
emerging with a profit before tax of RM269 million from our key business concerns.
Decelerating from 2.6% in 2014 to 2.4%, global growth once again fell shortin 2015. The poor growth has been
associated with continued growth lag in emerging and developing economies, weaker capital flows as well as subdued
It was certainly a year of challenges which included the rapid slump in
Brent crude oil prices which negatively impacted crude palm oil prices, the
dramatic slowdown of the Chinese economy and the weakening of the
Ringgit against the USD.
Despite the challenging economic environment, Malaysia recorded a
sizable GDP growth of 5% in 2015 mainly due to sustained private consumption
and growth in critical domestic sectors.
Faced with depressed economic conditions both domestically and globally, the Group delivered a profit
after tax of RM139 million. Net assets per share was RM5.56 whilst shareholders' funds stood at RM5.8 billion as at
31 December 2015.
The Group declared a fourth interim dividend of 4 sen. This will bring
total dividend for the year to 20 sen, representing a 4.7% yield based on the
closing price for the fiscal year.
The world today is increasingly global and talent mobility puts enormous
pressure especially on developing nations like Malaysia, to identify, attract,
develop and more importantly, retain talent.
To compete with more developed nations, we must place greater
emphasis on building leadership skills and providing our workforce with not
just jobs but career opportunities. Only with a strong talent pool can we aspire
to reach developed nation status.
In supporting the nation's aspirations, the Boustead Group's human capital
strategy is premised on our strong performance culture. We continue
to encourage the growth of our workforce through talent development
programmes and employee engagement initiatives.
While a modest recovery was seen in major high-income countries in 2015,
growth forecasts for these nations in 2016 have been marked down given the
appreciation of the United States Dollar and the impact slowing trade in Asia is
expected to have on Japan.
Despite rising geopolitical concerns and soft external demand, the Eurozone
is expected to see subtle recovery. A gradual slowdown and rebalancing
in China is expected, together with the stabilisation of commodity prices and a
steady increase in global interest rates.
Growth for the Malaysian economy is expected to be supported by domestic
demand. However, in 2016, the economy is predicted to continue to face a
challenging operating environment.
To overcome this, the government's 2016 recalibrated National Budget
focuses on strengthening domestic resilience in order to enable us to
benefit from the recovery of the global economy.
Most importantly, we will redouble our efforts to deliver value and fulfil
our objectives to achieve another successful year.
As we close the books on a challenging year, I would like to thank my fellow Board members for the depth of
knowledge and insight they bring to the table. My utmost gratitude also for the diligence demonstrated by our
management and staff.
We are appreciative of the confidence placed in us by our major shareholder, Lembaga Tabung Angkatan Tentera.
To our shareholders, financiers, business associates, consultants and regulatory authorities, we are thankful for
your steadfast support.
GEN. TAN SRI DATO' MOHD GHAZALI HJ. CHE MAT (R)
1 March 2016
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