By THE STAR
KUALA LUMPUR: Malaysian Resources Corp Bhd (MRCB) expects a better fourth quarter on the back of moderating construction and building material prices, says group managing director Shahril Ridza Ridzuan.
The group posted a net loss of RM5.2mil for the second quarter ended June 30 amidst soaring construction costs, which resulted in substantially reduced margins despite a substantial increase in revenue to RM228.5mil from RM96.6mil in the previous corresponding period.
Due to accounting standards, Shahril said the company had to take into the books any possible increase in cost in its second quarter results even though the group was seeking variation-of-price compensation for some of its ongoing projects.
“The third quarter will still reflect the impact of the increase in electricity tariffs and fuel prices, which rose fairly high during the quarter,” he said after the unveiling of MRCB’s first Global Reporting Initiative (GRI)-based sustainability report on Wednesday.
MRCB has deferred some of its property launches until such time when material prices stabilise and the company is able to properly account for project costs.
“The price points of our projects will move up in tandem with rising building costs. New launches will have price adjustments to reflect those changes,” Shahril said.
On developments in the Middle East, he said the company had started work on a project in Saudi Arabia. “It’s something very similar to what we are doing at KL Sentral and Penang Sentral,” he said, adding that the project was still in the early design phase.
On its sustainability report, Shahril said: “We look at this report as an important first step to make sustainability a core value at MRCB. We are committed to transparency and making this information available to the public as we work towards our goals.”
The sustainability report includes key indicators on the group’s environmental and social governance performance.
It also highlights the importance of sustainable development as part of the group’s broader agenda, based on the G3 guidelines which have been harmonised with the United Nations Global Compact and other tools.