ANNUAL

REPORT
2020
 GAMUDA

CONTENTS ANNUAL REPORT 2020

OVERVIEW OF LEADERSHIP &

GAMUDA BERHAD STRUCTURE
2 Our Presence 42 Group Organisation Structure

4 Corporate Information 44 Profile of Board of Directors

6 Group Corporate Structure 53 Profile of Group Senior Management

MANAGEMENT
DISCUSSION & SUSTAINABILITY
ANALYSIS
A. STRATEGIC REVIEW 60 General Disclosures

10 Statement from the Group Managing Director 82 Economic

19 Key Performance Indicators 86 Environment

100 Social

B. PERFORMANCE REVIEW

20 Chief Financial Officer’s Statement

30 Five Years Group Financial Highlights

CORPORATE
GOVERNANCE
32 Group Segmental Performance

33 Group Quarterly Performance 132 Corporate Governance Overview Statement

35 Statement of Value Added and Distribution 141 Training Programmes Attended by Directors

36 Share Performance 142 Statement on Risk Management and Internal Control

37 Investor Relations 144 Risk Management Committee Report

40 Financial Calendar 146 Audit Committee Report

41 Bonds and Credit Ratings 147 Statement on Internal Audit

148 Additional Compliance Information

150 Statement on Integrity and Governance Unit

 44 AGM th
Annual General Meeting: Broadcast Venue: Date & Time:
44th Annual General Meeting Auditorium, Level 2, Menara Gamuda, Block D Tuesday, 8 December 2020
of Gamuda Berhad PJ Trade Centre, No. 8, Jalan PJU 8/8A 10.00 a.m.
Bandar Damansara Perdana, 47820 Petaling Jaya
Selangor Darul Ehsan

ACHIEVEMENTS LIST OF MAJOR

PROPERTIES
152 Media Highlights 352 List of Major Properties

154 Awards and Achievements

FINANCIAL SHAREHOLDER
STATEMENTS INFORMATION
160 Directors’ Responsibility Statement 353 Analysis of Securities of Company

161 Directors’ Report 358 Issued Share Capital

168 Statement by Directors 361 Notice of Annual General Meeting

168 Statutory Declaration 368 Administrative Details

169 Independent Auditors’ Report

176 Consolidated Income Statement Form of Proxy

177 Consolidated Statement of Comprehensive Income

178 Consolidated Statement of Financial Position

Scan me

180 Consolidated Statement of Changes in Equity

182 Consolidated Statement of Cash Flows

184 Income Statement

185 Statement of Comprehensive Income

186 Statement of Financial Position

View our Annual Report, accounts and other information
187 Statement of Changes in Equity about Gamuda Berhad at www.gamuda.com.my

188 Statement of Cash Flows

190 Notes to the Financial Statements

GAMUDA BERHAD 197601003632 (29579-T)

Our Presence

Bahrain

India Taiwan
Qatar

Vietnam

Malaysia

Singapore

Australia

Established in 1976, Gamuda has

grown over the years to become
MALAYSIA’S LEADING INFRASTRUCTURE
and PROPERTY DEVELOPER.

2 01 Overview of Gamuda Berhad

 ANNUAL REPORT 2020

Malaysia Vietnam

Urban Rail Transport in Greater KL Inter-State Rail Transport Property Development

– Klang Valley Mass Rapid Transit – Electrified Double Track – Celadon City, Ho Chi Minh City
(KVMRT) Project (EDTP) (Ipoh-Padang – Gamuda City, Hanoi

• MRT Kajang Line Besar) Sewage Treatment Plant

• MRT Putrajaya Line – Yen So Sewage Treatment Plant, Hanoi
World’s First Dual-Purpose
First Digital IBS Factory in Malaysia Tunnel Taiwan
– Gamuda Industrialised Building – Stormwater Management and
Rail Transport
System (Gamuda IBS) Road Tunnel (SMART) – Kaohsiung Metropolitan Mass Rapid
Transit
Property Development Water Regulating Dam, Water
Marine Project
– Gamuda Cove Treatment and Power Plant – Marine Bridge – Guan Tang
– Gamuda Gardens – Sungai Selangor Dam – Seawall – Taipei Port
– twentyfive.7 – Rasa & Bukit Badong Water
Treatment Plants (SSP1 &
– Horizon Hills Qatar
SSP3)
– Jade Hills Public Infrastructure
– Prai Power Station
– Bukit Bantayan Residences – Dukhan Highway
– Kundang Estates – Hamad International Airport
Urban Transformation in Penang
– Madge Mansions
– Penang Transport Master Plan
– The Robertson Bahrain
(PTMP)
– HighPark Suites Bridges
– Gamuda Walk – Sitra Causeway Bridges
Public Infrastructure
– Gamuda GM Klang
– Pan Borneo Highway package
– Gamuda GM Bukit Bintang India
(WPC-04), Sarawak
– Kota Kemuning
– Kuantan Bridge Key Urban Links
– Valencia
– Hospital Universiti Kebangsaan – Durgapur Expressway
– Bandar Botanic Malaysia – Panagarh-Palsit Highway
– Gamuda Biz Suites – Lumut Naval Harbour
– North Butterworth Container Singapore
Key Intra-Urban Expressways and Terminal
Property Development
Highways in Greater KL – Batang Lupar Bridge, Sarawak – OLÁ
– Damansara-Puchong Highway
– GEM Residences
(LDP)
Public Infrastructure
– Shah Alam Expressway (SAE)
– Gali Batu Multi-Storey Bus Depot
– Western Kuala Lumpur Traffic
Dispersal Scheme (SPRINT)
Australia
Property Development
– 661 Chapel St., Melbourne
Public Infrastructure
– Gamuda Engineering (Australia) Pty Ltd

01 Overview of Gamuda Berhad

3
GAMUDA BERHAD 197601003632 (29579-T)

Corporate Information

YBHG DATO’ MOHAMMED HUSSEIN

Chairman

YBHG DATO’ LIN YUN LING

Group Managing Director

YBHG DATO’ IR HA TIING TAI

Deputy Group Managing Director

YTM RAJA DATO’ SERI ELEENA BINTI

ALMARHUM SULTAN AZLAN MUHIBBUDDIN
SHAH AL-MAGHFUR-LAH
Non-Independent Non-Executive Director

BOARD OF
DIRECTORS YBHG TAN SRI DATO’ SETIA HAJI AMBRIN BIN BUANG
Independent Non-Executive Director

YM TUNKU AFWIDA BINTI TUNKU A.MALEK

Independent Non-Executive Director

PUAN NAZLI BINTI MOHD KHIR JOHARI

Independent Non-Executive Director

Alternate to
ENCIK MOHAMMED RASHDAN BIN MOHD YUSOF
YBhg Dato’ Lin Yun Ling
Deputy Group Managing Director

Alternate to
YBHG DATO’ UBULL DIN OM
YBhg Dato’ Ir Ha Tiing Tai
Managing Director of Gamuda Engineering

4 01 Overview of Gamuda Berhad

 ANNUAL REPORT 2020

Audit Committee Registered Office/Corporate Office

• YM Tunku Afwida binti Tunku A.Malek (Chairperson) Menara Gamuda
• YBhg Dato’ Mohammed Hussein D-16-01, Block D, PJ Trade Centre
• Puan Nazli binti Mohd Khir Johari No. 8, Jalan PJU8/8A
Bandar Damansara Perdana
Nomination Committee 47820 Petaling Jaya
Selangor Darul Ehsan
• YBhg Dato’ Mohammed Hussein (Chairman) Tel : 603-7491 8288
• YM Tunku Afwida binti Tunku A.Malek Fax : 603-7728 9811
• Puan Nazli binti Mohd Khir Johari Email : gbcosec@gamuda.com.my
Web : www.gamuda.com.my
Remuneration Committee
• YBhg Dato’ Mohammed Hussein (Chairman) Share Registrar
• YTM Raja Dato’ Seri Eleena binti Tricor Investor & Issuing House Services Sdn Bhd
Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-lah (197101000970 (11324-H))
• YBhg Dato’ Lin Yun Ling Unit 32-01, Level 32, Tower A
Vertical Business Suite
Company Secretaries Avenue 3, Bangsar South
No. 8, Jalan Kerinchi
• Ms. Lim Soo Lye
59200 Kuala Lumpur
(LS 0006461) (SSM PC NO. 201908002053) Tel : 603-2783 9299
• Ms. Pang Siok Tieng Fax : 603-2783 9222
(MAICSA 7020782) (SSM PC NO. 201908001079) Email : is.enquiry@my.tricorglobal.com
Web : www.tricorglobal.com
Company Registration No.
197601003632 (29579-T) Tricor’s Customer Service Centre
Unit G-3, Ground Floor, Vertical Podium
Avenue 3, Bangsar South
Date and Place of Incorporation
No. 8, Jalan Kerinchi
6 October 1976, Malaysia 59200 Kuala Lumpur

Listing Date Auditors

10 August 1992 Ernst & Young PLT
202006000003 (LLP0022760-LCA) & AF 0039
Investor Relations Chartered Accountants
Level 23A, Menara Milenium
Mr Clarence Boudville
Jalan Damanlela
Level 17, Menara Gamuda
Pusat Bandar Damansara
Block D, PJ Trade Centre 50490 Kuala Lumpur
No. 8, Jalan PJU 8/8A Tel : 603-7495 8000
Bandar Damansara Perdana Fax : 603-2095 5332
47820 Petaling Jaya Website : www.ey.com
Selangor Darul Ehsan
Tel : 603-7491 2682 Stock Exchange Listing
Fax : 603-7727 4594
Main Market of Bursa Malaysia Securities Berhad
Email : IR@gamuda.com.my
Stock Code: Gamuda
Stock No: 5398

Principal Banker
Malayan Banking Berhad

01 Overview of Gamuda Berhad

5
GAMUDA BERHAD 197601003632 (29579-T)

Group Corporate Structure

CONSTRUCTION

Domestic

• Gamuda Engineering Sdn Bhd 100% • Gamuda Naim Engineering and Construction 65%
• Gamuda Geo Sdn Bhd 100% (GNEC) Sdn Bhd
• Gamuda M&E Sdn Bhd 100% • SRS Consortium Sdn Bhd 60%
• Gamuda Building Ventures Sdn Bhd 100% • MMC-Gamuda Joint Venture Sdn Bhd 50%
• Masterpave Sdn Bhd 100% • MMC Gamuda KVMRT (PDP) Sdn Bhd 50%
• Gamuda Trading Sdn Bhd 100% • MMC Gamuda KVMRT (T) Sdn Bhd 50%
• Megah Sewa Sdn Bhd 100% • MMC Gamuda KVMRT (PDP SSP) Sdn Bhd 50%
• G. B. Kuari Sdn Bhd 100% • Naim Gamuda (NAGA) JV Sdn Bhd 30%
• Gamuda Industrial Building System Sdn Bhd 100%
• Megah Capital Sdn Bhd 100%
• Megah Management Services Sdn Bhd 100%
• Gammau Construction Sdn Bhd 100%
• Gamuda Tunnel Engineering Sdn Bhd 100%

International

• Gamuda Engineering (Australia) Pty Ltd 100% • Gamuda-WCT (India) Private Limited 70%
• Gamuda (Offshore) Private Limited 100% • Dong-Pi Gamuda Joint Venture (Taiwan) 70%
• Gamuda Overseas Investment Ltd 100%

PUBLIC COMPANY LIMITED BY GUARANTEE

Yayasan Gamuda
Oversees the Group’s charitable efforts for community investments and development that focuses primarily on educational
aid and empowering social enterprises for community improvement.
Enabling Academy, through funding by Yayasan Gamuda, conducts an Employment Transition Prrogramme that trains and
places young adults with autism into companies.

6 01 Overview of Gamuda Berhad

 ANNUAL REPORT 2020

PROPERTY

Domestic

Property Development
• Gamuda Land Sdn Bhd 100% • Madge Mansions Sdn Bhd 100%
• Bandar Serai Development Sdn Bhd 100% • Valencia Development Sdn Bhd 100%
• Dinamik Atlantik Sdn Bhd 100% • Gamuda Land Leisure Sdn Bhd 100%
• Gamuda Land (Botanic) Sdn Bhd 100% • Lifestyle Heritage Sdn Bhd 100%
• Gamuda Land (Kemuning) Sdn Bhd 100% • Intensif Inovatif Sdn Bhd 100%
• Gamuda Land (T12) Sdn Bhd 100% • Horizon Hills Development Sdn Bhd 50%
• Highpark Development Sdn Bhd 100% • Gamuda GM Klang Sdn Bhd 50%
• Idaman Robertson Sdn Bhd 100% • Gamuda GM Sdn Bhd 50%
• Jade Homes Sdn Bhd 100% • Hicom-Gamuda Development Sdn Bhd 50%
• Usaha Era Fokus Sdn Bhd 100%

Property Management, Maintenance and Landscaping Golf and Country Club

• Botanic Property Services Sdn Bhd 100% • Bandar Botanic Resort Berhad 100%
• Gamuda Land Property Services Sdn Bhd 100% • Jade Homes Resort Berhad 100%
• Jade Homes Property Services Sdn Bhd 100% • Danau Permai Resort Berhad 50%
• Valencia Township Sdn Bhd 100% • Horizon Hills Resort Berhad 50%
• Gamuda Parks Sdn Bhd 100%
• Discovery Wetlands Sdn Bhd 100%
• Horizon Hills Property Services Sdn Bhd 50%
• Kota Kemuning Nursery & Landscaping Sdn Bhd 50%

International
• Gamuda (Australia) Pty Ltd 100% • Gamuda (Luxembourg) S.a.r.l 100%
• Gamuda (Singapore) Pte Ltd 100% • Gamuda Yoo Development Aldgate S.a.r.l 90%
• Gamuda Land (HCMC) Joint Stock Company 100% • Gem Homes Pte Ltd 50%
• Gamuda Land Vietnam Limited Liability Company 100% • Anchorvale Pte Ltd 50%

CONCESSIONS

Domestic

Expressway Tolling and Management Water Related

• Kesas Sdn Bhd 70% • Gamuda Water Sdn Bhd 80%
• Sistem Penyuraian Trafik KL Barat Sdn Bhd 52%
• Syarikat Mengurus Air Banjir & Terowong Sdn Bhd 50%
• Lingkaran Trans Kota Sdn Bhd 44%

International
• Mapex Infrastructure Private Limited (India) 50% • Emas Expressway Private Limited (India) 50%

01 Overview of Gamuda Berhad

7
MANAGEMENT
DISCUSSION &
ANALYSIS
A. STRATEGIC REVIEW

10 Statement from the Group Managing Director

19 Key Performance Indicators

B. PERFORMANCE REVIEW

20 Chief Financial Officer’s Statement

30 Five Years Group Financial Highlights

32 Group Segmental Performance

33 Group Quarterly Performance

35 Statement of Value Added and Distribution

36 Share Performance

37 Investor Relations

40 Financial Calendar

41 Bonds and Credit Ratings

GAMUDA BERHAD 197601003632 (29579-T)

Statement from the Group Managing Director

YBHG DATO’ LIN YUN LING

Group Managing Director

Dear Shareholders,
The COVID-19 pandemic has brought to the
fore an urgency to future-proof our business
in a world affected by the triple crisis of climate
change, biodiversity loss and unsustainable
exploitation of natural resources. According
to scientific studies over the past decade, the
loss of nature and biodiversity due to the
expansion of human activities exposes us to
increased zoonotic risks. At the same time,
climate change has manifested itself through
extreme weather events that happened all too
frequently in recent years, from rising sea As a major engineering, infrastructure and
levels, severe flooding, worsening drought, to property group, Gamuda is actively involved
devastating wild fires of increasing severity.
in circular construction beyond mere
All these have disrupted business activities,
impacted the quality of life and increased the compliance to reduce greenhouse gas
risks of doing business. emissions over the next two decades.

As a major engineering, infrastructure and property group, As we seek to build a sustainable future, we have enhanced
Gamuda is actively involved in circular construction beyond our value creation strategy with the sustainability framework
mere compliance to reduce greenhouse gas emissions over Build Right. For Life. which mapped out a detailed blueprint to
the next two decades. We are aligning our corporate decisions help us achieve sustainable growth while delivering our purpose;
based on these long-term goals. We are also committed to as outlined in the accompanying Sustainability Report 2020.
biodiversity conservation, through intensifying Gamuda Parks’ Anchored on three key pillars – Our People and Community;
agenda to ensure nature conservancy of both flora and fauna, Planning, Design and Construction, as well as Environmental
within our developments. We want to safeguard a sustainable and Biodiversity Stewardship, we are guided by the sustainability
environment for future generations by minimising the usage of framework to create diverse solutions that are good for the
natural resources and drastically reducing our carbon footprint. planet, people and Gamuda’s ecosystem of companies and
This is achievable by leveraging on technological advancement stakeholders. Such solutions are in line with the circular
and innovation that have been our core strengths. economy goals such as green building, energy management
and smart cities. The Gamuda value creation strategy encapsulates
and integrates the 17 United Nations Sustainable Development
Goals (UN SDGs) in our business operations.

10 02 Management Discussion & Analysis • Strategic Review

 ANNUAL REPORT 2020

PRIORITISING OUR PEOPLE

With the outbreak of the COVID-19 pandemic, we moved quickly Our property arm, Gamuda Land, expanded its digital footprint
to implement frequent and rapid testing to enable prompt during MCO by partnering popular e-commerce shopping
detection, tracing and isolation. We remodelled our centralised platforms in the country to reach a broader pool of potential
labour quarters to ensure greater separation and to provide customers. The partnership was aimed at promoting property
quarantine facilities. This rapid response made us among the online, increasing online engagements with prospects, and
first companies to obtain the Government’s approval to continue assist in the arrangements of a private viewing of our property
critical works during the movement restriction periods. products.

To further enhance our COVID-19 preparedness, we have set We continue to forge ahead by adopting new forms of digital
up an internal reverse transcription polymerase chain reaction technologies to ensure business continuity across the Group.
(RT-PCR) testing lab to allocate sufficient control measures to We were able to maintain efficiency and perform business-
prevent infection and mitigate the risk of spreading the virus, critical operations through collaborative and user-friendly
which will support our larger objective of ensuring business cloud-based solutions and other remote workforce technology
continuity. to empower our employees.

ACCELERATING DIGITALISATION
We continue to push ourselves for more engineering innovations, 200 man-hours required to complete a traditional survey with
by accelerating the digitalisation efforts in underground and limited data collected. We use a photogrammetry process which
tunnel construction. We have effectively digitalised the construction converts hundreds of overlapping images captured by drones
of the Klang Valley Mass Rapid Transit (KVMRT) using intelligent to a 3D site mesh to develop a photo-realistic site representation.
Building Information Modelling (BIM) These are made available across the
integration, while capitalising on the project via a common data environment
ability of drones to acquire large to enable interoperability across
volumes of data with extraordinary cloud-based BIM and GIS data
speed, which can then be processed We have effectively digitalised the platforms. These reliable and accurate
and shared on the cloud for multiple models are used to quickly measure
BIM and Geospatial Information
construction of the Klang Valley
distances, areas and volumes, saving
System (GIS) applications and used Mass Rapid Transit (KVMRT) using enormous amounts of manual effort
for regular site progress monitoring. intelligent Building Information for surveyors and engineers.
Thanks to the high precision, acute
mobility, phenomenal speed and
Modelling (BIM) integration, while
We also integrate augmented reality
relatively low cost of data capture, capitalising on the ability of drones (AR) technology with BIM and GIS,
the use of drones along the 13.5km to acquire large volumes of data using mobile devices to overlay 3D
of twin bored tunnels and 17 BIM elements in true scale onto real
construction sites have allowed us to
with extraordinary speed, which can
world work sites before, during and
reinvent site surveying. then be processed and shared on post construction. Our engineers
the cloud for multiple BIM and quickly identify discrepancies and
By digitalising the process through clashes between the design and
the usage of drones, surveying time
Geospatial Information System (GIS)
installed environments. By addressing
has been substantially reduced to an applications and used for regular issues virtually, we ensure accuracy
average of two man-hours of drone site progress monitoring. while avoiding costly rework and site
flight with about half-day of post modifications.
processing per site, compared with

Strategic Review • 02 Management Discussion & Analysis

11
GAMUDA BERHAD 197601003632 (29579-T)

Statement from the Group Managing Director

UPSKILLING WORKFORCE

As we continuously raise our game in engineering and

construction, we also make sure our people are upskilled
through exposure to a range of digital tools to remain dynamic
and resilient in this competitive industry. We develop our own
training and development programmes in collaboration with
relevant partners aimed at equipping workers for our projects.
The resulting pool of trained personnel becomes a valuable
asset to the Group’s new skill requirements. The BIM Training
Academy is one example, set up to lead the change in construction
industry, while preparing a qualified and multi-skilled workforce
with a strong foundation in science and technology to embrace
Industry 4.0. The objective is to train and upskill our employees
and subcontractors on the latest construction technologies, in
particular BIM, to maintain their resilience in this highly
automated age.

BOLSTERING OPERATIONAL EFFICIENCY THROUGH

Delayering, where accountability is driven down the leadership
TECHNOLOGY
chain, with ERP making timely, accurate data and analysis
Beyond construction, we have streamlined internal processes available for informed decision-making, spotting opportunities
such as implementing digital procurement by adopting the SAP for innovation and cost reduction;
Ariba procurement system since October 2018, which enables
transparent and equal-opportunity sourcing of building materials Adopting leading practices for efficient processes that
and services to improve efficiency, governance and to maximise differentiate us competitively when delivered more consistently
savings. As we contend with the industry headwinds, we must and effectively across the Group;
further leverage on digital technologies such as analytics and
artificial intelligence to drive productivity and maximise profit. Data integrity and consistency allow us to use tools to promote
process automation;
In a world where sustainability is gaining tremendous traction,
improving the lagging productivity of construction also goes a Extending the core ERP for better customer engagement,
long way in bolstering the world’s climate action. According to using analytics to grow sales, and
an article in The Economist, while the construction sector is
the biggest user of raw materials and resources, consuming Improving productivity and efficient use of raw materials and
half of the global steel production and 3 billion tonnes of raw resources, less wastage and advocating sustainability
material, it is estimated that the productivity increase in throughout our operations.
construction is a quarter of manufacturing in the past 25 years.
This underpinned our decision to invest in modernising our
New technology requires the Group to retool how we operate.
Group Enterprise Architecture through the deployment of a new
The systems, processes, roles and organisational culture that
generation cloud Enterprise Resource Planning (ERP) platform
have served us well through the last four decades will not be
that will provide the foundation for the Group to streamline
sufficient in enabling us to realise our strategic goals and gain
current and build future business capabilities. Most importantly,
market share. With a modern ERP as the enabling platform,
it is consistent with our move to become an agile organisation
we are embarking on a programme of transforming how we
that is quick and nimble in how we respond to changes in the
operate as an organisation by reskilling our workforce to capably
market, and where teams are built around end-to-end
leverage on digital platforms where appropriate, but most
accountability:
importantly by focusing on data as a corporate asset.

12 02 Management Discussion & Analysis • Strategic Review

 ANNUAL REPORT 2020

REIMAGINING HOMES

RM24
The ongoing COVID-19 pandemic has transformed the way we
live and interact in more ways than one. On a broader
environmental level, latest research and studies are increasingly MILLION
pointing to the link between zoonotic risks stemming from the Tree preservation programme
loss of nature and biodiversity, and the prevalent existence of within the nature sanctuary of
new pandemics. As a developer of homes and developments, Gamuda Cove.
Gamuda is uniquely positioned in the role we play in the built
environment.

We commit to set it right from the start, at the master planning Beyond relaxation and safety, our future living spaces need
and design stage so that biodiversity and nature conservation flexible solutions to cater for post-pandemic trends with greater
can take place at a meaningful scale, while the reduction of emphasis on health and well-being, where natural light,
greenhouse gas emissions can be designed and incorporated good ventilation and green spaces become a priority. Homes
into a development. Proper planning and execution by creating will also need to be multi-functional, or convertible to
bicycle lanes and waterways at the design stage for instance, accommodate additional lifestyle functions such as work. As
will allow emission reduction plans to flow through a development more people begin to embrace sustainable living, future homes
life cycle. In addition, we are stepping up biodiversity protection need to have embedded green features driven by advanced
and conservation by cultivating endangered flora and fauna technology to support energy-efficient appliances and the shift
species in our developments, while conducting educational towards incorporating renewable energy to reduce power costs.
programmes among our residents on living sustainably in
coexistence with nature. To enhance biodiversity conservation, we have allocated
RM24 million on tree preservation programme within the nature
This is aligned with our aim to increase livability for our sanctuary of our development, Gamuda Cove. We established
homebuyers as we seek to capture the opportunity to reconfigure Gamuda Parks Arboretum with the remit to introduce plant or
the space we live in as customers adjust themselves to a new tree species that suit the habitat. Where appropriate, we revive
reality where working from home is increasingly becoming a endangered species or reintroduce native species. The Arboretum
new-normal. We are cognisant from our purchasers’ feedback includes a living-tree museum in a Riparian Jungle setup within
to live more in the suburbs and having increased space to enjoy the area of Wetlands Forest Park in Gamuda Cove, as part of
nature given the pandemic situation and social distancing. our conservation and carbon sequestration efforts for the Group.

REBUILDING GREENER ECONOMY THROUGH INFRASTRUCTURE

In a built environment, interconnectivity through efficient public As an infrastructure builder, we strongly believe that accelerating
transport system is the essence of developing a sustainable the adoption of public transport to reduce usage of single or
city and raising the living standards of its residents. With a low occupancy vehicles will improve Malaysia’s emissions in
population of 32 million, Malaysia has a disproportionately high line with our committed national targets under the Paris
carbon dioxide emission per capita – at 7.27 tonnes, double Agreement. Malaysia’s current public modal share is still far
that of Thailand’s and higher than even China’s 6.59 tonnes. too low when compared with benchmark green cities. With the
Malaysia’s greenhouse gas emissions amounted to 250.3 million impending completion of MRT Putrajaya Line construction, we
tonnes in 2019, up from 241.6 million tonnes in 2017. Aside are in the position to propose that the planned MRT 3, or the
from fossil-fuel based power generation, other main sources Circle Line project, be revived soon to ensure the continuity of
of emissions were from transportation and waste generation. this key infrastructure since this final line is also the most
crucial loop that completes the urban rail transportation system
The reason behind Malaysia’s disproportionately high emissions in Greater Kuala Lumpur and increases the public transport
is attributable to the reliance on privately-owned vehicles. There modal share to 40%.
were 29.4 million vehicles on our roads, with 13.8 million cars
and 13 million motorcycles. Malaysia’s transport sector is
responsible for spewing 61.4 million tonnes of carbon dioxide
equivalent in 2015, making it the second biggest polluting sector
after electric power generation.

Strategic Review • 02 Management Discussion & Analysis

13
GAMUDA BERHAD 197601003632 (29579-T)

Statement from the Group Managing Director

An efficient and affordable public transportation is not only

more sustainable for the planet, but is also essential in providing
economic accessibility to the lower-and-middle-income groups.
Some of the targeted benefits for the B40 (Bottom 40%) includes
With the impending completion of MRT improving their access to schools and hospitals, creating job
opportunities, improving lifestyle, and bridging the economic
Putrajaya Line construction, we are in the gaps by allowing them a higher disposable income with less
position to propose that the planned MRT 3, monthly expenses needed on transportation as opposed to driving.
or the Circle Line project, be revived soon
More importantly, the revival of some major infrastructure
to ensure the continuity of this key projects in the country will provide a much-needed lift to
infrastructure since this final line is also expedite economic recovery after the pandemic setback stalled
the most crucial loop that completes the growth. Projects such as the MRT 3 play a crucial role in pump
priming the domestic economy in times of a downturn, and are
urban rail transportation system in Greater a tested way in past crises to stimulate growth considering the
Kuala Lumpur and increases the public multiplier effect in terms of job creation and the trickle-down
transport modal share to 40%. impact on the construction and industrial sub-sectors. Among
the planned infrastructure projects, MRT 3 is one that can be
implemented in the immediate future.

along the way. This has culminated in the successful development

of our Autonomous Tunnel Boring Machine (A-TBM), which
could be operated with human oversight rather than control.
The Malaysian invention of the A-TBM, designed by MMC Gamuda
KVMRT (T) Sdn Bhd, has landed us a number of prestigious
international awards. These include the Technical Product/
Equipment Innovation of the Year Award at the 2019 International
Tunnelling and Underground Space Association (ITA) Tunnelling
Awards in Miami, Florida. The innovation also received recognition
at the New Civil Engineer Tunnelling Awards 2019 in the UK
sponsored by the British Tunnelling Society in the category of
Innovation in Tunnel Excavation.

Our A-TBM was developed 100% in-house by our local engineers

and utilises Artificial Intelligence (AI) Control Algorithms to
autonomously operate our TBMs on the MRT Putrajaya Line
with proven tangible improvements in productivity, safety and
quality for tunnel construction. The design breakthrough
has aided the foundation for our further technological advancement
TECHNOLOGICAL LEADERSHIP IN TUNNELLING
this year and beyond. The cloud-based big data system for TBM
With an emphasis on technology, Gamuda has established a data is currently being developed by an in-house team of local
proven track record of continuous innovation in construction, talents. We are implementing AI and machine learning integration
particularly in tunnelling, with a highly skilled talent pool armed to glean insights from TBM data for enhanced A-TBM performance,
with digital skills and a diverse supply chain. Starting from the increased 360° awareness and improved risk management in
construction of the Stormwater Management and Road tunnelling. The A-TBM development experience also led to our
Tunnel (SMART) in 2004, we have progressively accumulated pioneering Augmented Reality for BIM, which brings 3D models
valuable experience in underground construction beneath Kuala to portable devices overlaid on camera feeds which will be
Lumpur’s difficult terrains, while developing and innovating on used by the trained worker for precision construction and
high-technology machinery to improve the tunnelling process collaboration.

14 02 Management Discussion & Analysis • Strategic Review

 ANNUAL REPORT 2020

INITIAL FOOTING IN AUSTRALIA

Our creativity and constant strive to innovate for improved efficiency, coupled with the Group’s expertise in highway, railway and
underground construction have put us on a sound footing for infrastructure project tenders in Australia. We are actively bidding
for over AUD10 billion worth of projects in New South Wales, Victoria, Queensland and Western Australia. Our track record
through award-winning and world-leading projects, including the KVMRT, has enabled our entry into Australia, allowing us to
become a contender for project tenders involving railways and highways in the country. We are optimistic that our long-term
plans will bode well for us to gain a foothold in their infrastructure programmes.

PENANG SOUTH ISLANDS

Up north, our SRS Consortium is responsible for delivering the Sustainable Waste Management will include plans to manage
various public transport components for the Penang Transport all the different types of waste from PSI to reduce carbon
Master Plan, including highways, the reclamation of three new footprint, greenhouse gas emissions and provide a greener
islands, common infrastructure works on the islands and master environment. This includes the adoption of waste separation at
planning, investors marketing and land tenders. The Masterplan source with UDG guidelines for lot developers to comply.
Design Competition for the new Penang South Islands (PSI) On-site food composting to recycle kitchen and yard waste to
development was concluded, which saw BIG - Bjarke Ingels reduce landfill waste for a cleaner environment. Pneumatic
Group from Denmark with Hijjas Architect & Planner being waste collection system will be implemented in high rise
selected as the Lead Masterplan Designer out of 124 submissions residences. The plan also includes the adoption of the soon
of ideas and proposals from 26 countries. The PSI is envisaged available Waste to Energy facility in Penang to convert commercial
to raise the game for Penang as an investment destination for food waste to renewable energy, from biomass to biogas, to
global corporations, combining advanced technologies that cater further reduce the landfill volume; conforming to existing
for future generation industries, with the masterplan and design practice of hazardous waste management by respective authorities
concepts embracing the key ESG principles. where waste is collected and managed separately by appointed
waste management companies. Industrial wastewater will be
The PSI will see a major shift in the adoption of renewable required to be pre-treated prior to discharge to external drain
energy, waste management and water resource management, with monitoring sensors to be installed to monitor effluent
while reducing carbon footprint and greenhouse gas emissions quality.
to future-proof the land and environment for the future
generations beyond the 40% reduction in carbon emissions

40%
through the Low Carbon Cities Framework. Our attention to >
smart city design and planning; from data collection, data
processing and data application, will facilitate the provision of
intelligent services. Renewable energy in the form of solar
photovoltaic system will be installed to harness clean energy, CARBON EMISSIONS
while island wide solar-powered street lighting and electrical Low Carbon Cities Framework
vehicle (EV) charging stations will be provided in all public
spaces. A similar concept will be endorsed in the Urban Design
Guidelines (UDG) for the individual lot developers to adopt. SMART INDUSTRIAL

100%
Based on the Sustainable Energy Development Authority PARK &
Malaysia’s (SEDA) guidelines, the first island, or Island A, alone DEPOT
can derive about 45% (during peak hour irradiance) of its total
estimated power requirement from solar power energy solutions Power demand with
of the planned roof surfaces of public amenities and building renewable energy
rooftops in each individual development zone. From this, the

100%
smart industrial park and depot can potentially meet 100%
(during peak hour irradiance) of its power demand with renewable
energy.
Redundant fibre optics
& power redundancy

Strategic Review • 02 Management Discussion & Analysis

15
GAMUDA BERHAD 197601003632 (29579-T)

Statement from the Group Managing Director

Smart mobility, putting pedestrians, bicycles and water transport ahead of cars will be the key
transport mode that will complement the system of public transport of roads, e-bus, trams and
LRT to provide the first and last mile connectivity. To this end, more than 30km of bicycle cum
walking tracks islandwide and about 7km of navigational waterway for water taxis have been
planned to provide avenues for green mode of mobility. Pedestrian friendly footpaths
landscaped with close intervals of covered stop points for both cyclists and pedestrians will
further encourage the shift to move towards a greener mode of transport.

Cognisant of Penang’s water stress situations, PSI aims to do Island wide smart infrastructures comprising 100% redundant
more and make water resource management more sustainable. fibre optics and power redundancy, 5G/4G network for digital
A dual-purpose Sewerage Treatment Plant (STP) that doubles connectivity, CCTVs, smart poles, solar powered street lighting
as a water reclamation plant will reclaim sewage water to high and EV charging stations will be provided at public spaces while
quality reuse water benchmarked to US EPA Standards for the UDG will ensure the same design concept is maintained
unrestricted urban and industrial non-potable uses to reduce and followed through. Integrated smart traffic and parking
the overall freshwater demand. It is estimated that the recycled guidance system to manage traffic and provide real-time
water will meet 100% of the industrial non-potable water response plan for any incident and forecast on parking availability
demand and this translates to an overall reduction of freshwater and shortest navigation route and time – with all real time data
demand by about 60% for Island A. Dual external water piping collection and monitoring through a common platform in a
to industrial plots will be part of the external common common control centre will be provided.
infrastructure provided. Intertwined with landscape features,
the coastal shorelines will be protected from potential storms, Smart mobility, putting pedestrians, bicycles and water transport
waves and floods besides preventing erosion, maintaining the ahead of cars will be the key transport mode that will complement
water quality, clarity, pollutant and sediments. Urban planning the system of public transport of roads, e-bus, trams and LRT
with rainwater harvesting and dual piping system will further to provide the first and last mile connectivity. To this end, more
reduce freshwater demand for non-potable uses. than 30km of bicycle cum walking tracks islandwide and about
7km of navigational waterway for water taxis have been planned
PSI also has future-proofed for climate change and rising sea to provide avenues for green mode of mobility. Pedestrian
levels, taking into account Malaysia’s trend and the United friendly footpaths landscaped with close intervals of covered
Nations Intergovernmental Panel on Climate Change (IPCC) stop points for both cyclists and pedestrians will further
assessment by allowing for a sea level rise of 9mm per year, encourage the shift to move towards a greener mode of transport.
representing a 200% buffer.

The Smart Industrial Park core of about 750 acres focusing on INDUSTRIALISED BUILDING SYSTEM
the electrical and electronics (E&E) and semiconductors industry
Since pioneering Malaysia’s first digital Industrialised Building
is zoned strategically, incorporating important features critical
System (IBS), we have successfully handed over more than
to the adoption of Industry 4.0 technologies; providing an
1,000 residential units ahead of schedule with eight projects,
integrated and seamless ecosystem with the Service Hub of
or more than 5,000 residential units under construction. Moving
about 160 acres commercial zone that primarily provides the
forward, we aim to transform further the building construction
enabling support for the manufacturing and E&E players in the
industry and uplift the prefab supply chain with the adoption
areas of technical components and training vis-à-vis the
of a new business model – supply and installation of prefab
Global Business Services (GBS) campus and training academy,
products for developers and building contractors from the rising
software parks, industry-led Centre(s) of Excellence, Research
demand for a high-quality prefab product supply. Partnering
and Development (R&D) labs, Artificial Intelligence (AI) institutes,
with building industry stalwarts and utilising automation and
digital enterprises, etc.
robotic construction on a cloud-based software for seamless
digital design would accelerate the adoption of prefab products
across the industry and elevate the supply chain for improved
quality, safety and productivity.

16 02 Management Discussion & Analysis • Strategic Review

 ANNUAL REPORT 2020

ENABLING ACADEMY
ENABLING ACADEMY As an organisation, we believe inclusion and diversity are paramount.

7 th Gamuda has benefitted from the dedication of many talented employees

over the years, and we need to ensure our growth is more sustainable,
BATCH equitable, and inclusive. It is with this vision in mind that we set up the

63
Enabling Academy (EA) in 2017, aimed at preparing more people with
autism for gainful and sustainable employment. EA conducts a
three-month Employment Transition Programme (ETP) sponsored by
CANDIDATES Yayasan Gamuda to equip young adults in the autism spectrum disorder
with relevant soft skills and job training, and place them into partner

>30
companies that share the same vision in embracing diversity and inclusion
in their workforce. As we continue to scale up with our 7th batch of EA
trainees, we are proud and delighted that EA has successfully assisted
PARTNER COMPANIES 63 candidates in securing jobs with over 30 reputable partner companies
based on their respective strengths.

FINANCIAL PERFORMANCE IN FY2020

MRT Putrajaya Line progress was picking up while the property
division and expressways were delivering steady results up
until the imposition of movement restrictions. The unprecedented Property sales rebounded sharply in Q4,
movement restrictions in the third quarter of this financial year, coming in at RM1 billion, almost on
triggered by the COVID-19 pandemic, have resulted in work
stoppages at all construction and property projects, coupled
par with the quarterly sales in Q4
with low traffic plying all our highways. As a result, Q3 earnings FY2019. Core earnings in Q4 recovered
were at a low of RM40 million compared with RM175 million to RM131 million as productivity levels are
in Q2.
almost back to Pre-MCO levels.
As the movement restrictions were gradually eased in Q4, the
Group’s construction and property projects picked up pace and
the traffic volumes were trending upwards. Property sales
rebounded sharply in Q4, coming in at RM1 billion, almost on ANNUAL CORE
par with the quarterly sales in Q4 FY2019. Core earnings in Q4
EARNINGS OF

RM520
recovered to RM131 million as productivity levels are almost
back to Pre-MCO levels.

For the full financial year, the Group posted revenue of

RM6.8 billion in one line, a decrease of 5% year-on-year. MILLION
Excluding a one-off non-cash impairment of RM148 million on 26% decrease from last
IBS assets, the Group posted an annual core earnings of year’s RM700 million in
RM520 million, a 26% decrease from last year’s RM700 million earnings
in earnings.

The one-off non-cash impairment on IBS assets of

RM148 million was set aside as the Group temporarily shuts
down one of its two IBS factories due to the slow pace of
building construction caused by the stringent COVID-19 induced
standard operating procedures imposed by the authorities.
Building contractors were only able to operate at about half
capacity.

Strategic Review • 02 Management Discussion & Analysis

17
GAMUDA BERHAD 197601003632 (29579-T)

Statement from the Group Managing Director

80%
KEY ACHIEVEMENTS AND MILESTONES
The year was marked by the following major achievements and milestones.

The Group’s 60%-owned SRS Consortium Sdn Bhd has on 1 July 2020 executed the Completion for MRT Putrajaya
master agreement with the State Government of Penang on its appointment as the Line as at September 2020
Project Delivery Partner (PDP) to manage and deliver the Penang Transport Master
Plan (PTMP). The PDP’s work scope comprises the Light Rail Transit (LRT), Pan
Island Link highways and reclamation of islands.

As the Turnkey Contractor for the MRT Putrajaya Line, MMC Gamuda has achieved Final

200
a cumulative progress of 80% completion for the elevated, underground, and systems
works as of September 2020, which is on schedule. A major milestone was achieved
with our final TBM breakthrough at the wall of the upcoming Ampang Park MRT
station in July, after having travelled over 700 metres from the starting point at
Conlay Station. The TBM’s final 200-metre journey was completed during the MCO
METRE
with special approval from the authorities to safeguard both our workers and the
TBM for Ampang Park MRT
public. Despite the delays arising from the reduced productivity and supply chain
Station Completed during
disruptions due to the pandemic, as well as challenges posed by more difficult
the MCO
geographical terrains compared with the Kajang Line, we are on track for the full
opening of the MRT Putrajaya Line in January 2023.

APPRECIATION
I would like to record my heartfelt gratitude to our Board of Directors, stakeholders, shareholders, management and employees
for your unwavering trust, support and patience, especially through this challenging period. Without your consistent guidance,
assistance, hard work and support, it would not have been possible for us to maintain our resilience and continue to deliver
respectable financial performance every year.

We will continue to grow the business through hard work and a dedication to invest in our people and technology to deliver
sustainable value for all stakeholders.

YBHG DATO’ LIN YUN LING

Group Managing Director

18 02 Management Discussion & Analysis • Strategic Review

 ANNUAL REPORT 2020

Key Performance Indicators

MARKET CONSTRUCTION
CAPITALISATION ORDER BOOK
2020: 2020:

RM8.9 BILLION
RM7.0 BILLION
2019: RM9.2 billion 2019: RM10.0 billion

PROPERTY SALES REVENUE CORE EARNINGS

2020: 2020: 2020:

RM2.2 BILLION
RM6,805 RM520 MILLION MILLION
2019: RM3.1 billion 2019: RM7,181 million 2019: RM700 million

CORE RETURN ON DIVIDEND NET DEBT TO

EQUITY (ROE) PAYOUT EQUITY RATIO
2020: 2020: 2020:

6.1% 6 sen 0.30

TIMES
2019: 8.7% 2019: 12 sen
2019: 0.39 times

Strategic Review • 02 Management Discussion & Analysis

19
GAMUDA BERHAD 197601003632 (29579-T)

Chief Financial Officer’s Statement

MR. SOO KOK WONG

Chief Financial Officer

The COVID-19 – induced movement

restrictions eclipsed half of FY2020 and
had caused the significant drop in Q3
earnings. As the movement restrictions
were eased in Q4, the Group’s core
earnings are on the road to recovery.

FINANCIAL PERFORMANCE ANALYSIS

COVID-19 – induced movement restrictions eclipsed half of Overall, the Group posted a revenue of RM6,805 million for the
FY2020 current financial year ended 31 July 2020, a decrease of 5%
compared with RM7,181 million revenue achieved in FY2019.
On 11 March 2020, the World Health Organization (WHO) declared
Core net profit of RM520 million (excluding one-off non-cash
COVID-19 a worldwide pandemic. In Malaysia, an unprecedented
impairment of RM148 million on IBS assets) was 26% lower
Movement Control Order (MCO) to restrict movement nationwide
compared with last year’s RM700 million.
began on 18 March 2020 in an effort to stem community
transmission of the disease. Different forms of lockdown were
One-off non-cash impairment of RM148 million from the
also imposed in other countries where the Group operates,
temporary shutdown of one of two IBS factories
such as Vietnam, Singapore, Taiwan and Australia. In Malaysia,
movement restrictions were eventually relaxed in early May As the pace of building works slowed because contractors were
2020 as the authorities moved towards a more targeted approach only able to operate at about half capacity due to the stringent
in containing the disease. health and safety control measures imposed by the authorities,
the Group temporarily shut down its smaller IBS factory at
Q3 earnings hit by movement restrictions; Q4 core earnings Sepang and consolidated all operations at the larger IBS Banting
on road to recovery factory. As a result, the Group set aside a one-off non-cash
impairment of RM148 million and posted a loss of RM17 million
During the MCO period, all works virtually stopped, except
in the fourth quarter of the financial year. Subsequent to this
works deemed critical to public safety. All property galleries
impairment, the Group does not expect any further impairment
were also closed. Daily traffic plying all four highways dropped
on the IBS assets in the foreseeable future.
significantly; only 10%-20% of pre-MCO traffic levels. As a
result, the Group recorded significantly lower revenue and
earnings in Q3 (February to April 2020). Movement restrictions
across the country were gradually eased in May 2020 and the
Group’s performance improved remarkably in Q4 (May to July
2020) as property sales sharply rebounded. Works at all
construction and property projects gradually picked up
pace and traffic plying the expressways were returning to
pre-movement restrictions level.

20 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

GROUP FINANCIAL PERFORMANCE

2020

RM‘million Q1 Q2 Q3 Q4 2020 2019 Var

REVENUE 1,801 2,225 989 1,790 6,805 7,181 -5%

CORE NET PROFIT 174 175 40 131 520 700 -26%

Less: One-off impairment on IBS assets – – – (148) (148) – –

NET PROFIT 174 175 40 (17) 372 700 -47%

Sharp rebound in Q4 property sales Traffic returning to Pre-MCO levels

The third quarter property sales were badly affected as all During the MCO, the expressways’ traffic volumes have dropped
works virtually stopped and all sales galleries were closed significantly compared to pre-MCO levels. As the movement
during the MCO period. As the movement restrictions were restrictions were eased in Q4, the traffic volumes of the
gradually eased in Q4, property sales rebounded sharply to expressways were trending up, compared to pre-MCO levels,
RM1 billion, compared with RM244 million in Q3, and almost as follows:
on par with the quarterly sales of RM1.1 billion in Q4 FY2019.
As a result, Gamuda Land sold RM2.2 billion worth of properties KESAS and LITRAK – 100%
in FY2020, lower than the RM3.1 billion sales of last year.
Engineering & Construction SPRINT – 98%
Property Development Water & Expressway

SMART – 88%

CORE NET PROFIT

BY DIVISION

29%
33%
2020 2019 34%
42%
RM520
MILLION
RM700
MILLION

25% 37%

Engineering & Construction Property Development Water & Expressway

Performance Review • 02 Management Discussion & Analysis

21
GAMUDA BERHAD 197601003632 (29579-T)

Chief Financial Officer’s Statement

GAMUDA ENGINEERING

The implementation of each PTMP component will be

formalised at a later stage when the financial architecture
is mutually agreed with the Penang State Government.
The PDP fee for the PTMP components varies between
Moving forward, the construction 5.0%-5.75%.
division’s resilience is underpinned by its
order book of RM7 billion. In the Masterplan Design Competition for the PSI development
that was concluded recently, BIG – Bjarke Ingels Group
from Denmark with Hijjas Architect & Planner won the
competition and was selected as the Lead Masterplan
Strong order book of RM7 billion; Construction progress back
Designer.
on track
The construction division’s core net profit (excluding one-off The reclamation works for the 2,300-acre Island A is
non-cash impairment of RM148 million on IBS assets) dipped targeted to commence in the first quarter of 2021.
by 27% to RM173 million compared with RM237 million last
year. During the MCO, all construction works stopped, except (c) Sarawak
for works deemed critical for public safety (e.g. tunnelling
(i) Pan Borneo Highway Package (WPC-04) (Pantu Junction
works) in compliance with COVID-19 – induced standard operating
to Btg Skrang)
procedures (SOP). However, the projects’ productivity were
ramped up following the relaxation of movement restrictions The Sarawak Pan Borneo Highway package (WPC-04)
in the last quarter of the financial year. Nonetheless, the project’s scope which includes the widening and
construction division will remain resilient for the next two years upgrading of the existing 89.3km long highway from
with a secured order book of RM7 billion. 2-lane single carriage road to a 4-lane dual carriageway
of JKR R5 standard, is progressing on schedule with
(a) MRT Putrajaya Line overall cumulative progress at 55% as at August 2020.
Naim Engineering Sdn Bhd – Gamuda Berhad JV is
As at 31 July 2020, MRT Putrajaya Line’s overall cumulative
the contractor.
progress is on schedule; Elevated tracks at 80% and
Underground tracks at 78%. The system testing with
(ii) Batang Lupar Bridge at Sri Aman Town
progressive energisation and running of the electric trains
are in progress for Phase 1 (Sungai Buloh – Kentonmen In February 2020, Naim Engineering Sdn Bhd-Gamuda
station), while underground works are nearing completion Berhad JV accepted the award of the Second Trunk
and the track handover for Systems works is in progress Road (Package B3) Proposed Batang Lupar Bridge
for Phase 2 (Kentonmen – Putrajaya station). Productivity No.2 at Sri Aman Town project valued at RM224 million.
level is almost back to pre-MCO levels. The project is expected to be completed in June 2024.
The overall cumulative progress as at August 2020
(b) Penang Transport Master Plan was at 1%.
Gamuda’s 60%-owned SRS Consortium had on 1 July 2020
signed the Master Agreement with the Penang State
Government in respect of the appointment of the Project CONSTRUCTION
Delivery Partner (“PDP”) to manage and deliver the Penang
Transport Master Plan (“PTMP”). The major components CORE NET PROFIT

RM173
of Phase 1 of the project are Reclamation Works (“Penang
South Reclamation Island A”), Light Rail Transit (“LRT”)
from George Town to Island A of the Penang South Islands
(“PSI”) and Pan Island Link 1 (“PIL1”) highway. MILLION

22 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

(d) Taiwan (f) Gali Batu Multi-Storey Bus Depot, Singapore

(i) Marine Bridge In November 2019, Greatearth Corporation-Gamuda Berhad
Joint Venture was awarded by the Land Transport Authority
Gamuda’s 70%-owned joint venture with a Taiwanese
of Singapore (LTA) a SGD$260 million contract for the
company is constructing a 1.23km marine bridge for
Gali Batu Multi-Storey Bus Depot. The project consists of
CPC Corporation Taiwan, a state-owned petroleum
a three-storey administrative building, a five-storey dormitory
company which is expected to be completed in
and a five-storey main depot equipped with parking spaces
November 2022. Construction of temporary access
for 715 buses, refueling and washing facilities, repair and
bridge and working platform is nearing completion,
maintenance facilities with cutting-edge technology to cater
and offshore piling works are progressing well.
for the operation of electric buses. The contract duration
The overall cumulative progress as at August 2020
is 41 months.
was at 19%.
The overall cumulative progress as at 31 July 2020 is at
(ii) Seawall for Reclamation Project
1% due to restriction of the Circuit Breaker in Singapore.
In December 2019, Gamuda’s 70%-owned joint venture The project resumed operations in early August with physical
with a Taiwanese company has won the tender to site clearing and hoarding installation.
construct 4,014m of seawall structure with contract
price of NTD6,817 million (equivalent to RM932 million) (g) Gamuda IBS
for Taiwan International Ports Corporation, a
Gamuda Industrial Building Systems (Gamuda IBS) operates
state-owned port operation company. The project is
from its factories in Sepang and in Banting. With these
expected to complete in March 2025. The overall
two factories, Gamuda IBS has the capacity to produce
cumulative progress as at end August 2020 is at 2%,
10,000 units per year of solid walls and slabs, double-wall,
with construction of caisson fabrication yard progressing
pre-stressed slab, bathroom pods and other special elements
as planned.
that applies to both affordable and high-end residential
and commercial unit. Gamuda IBS produced the units for
(e) Gamuda Australia
Gamuda Land as well as other property developers.
Gamuda (Australia) Branch and Gamuda Engineering
(Australia) Pty Ltd are well established and expected to As the pace of building construction slowed during the
contribute positively. We are actively bidding for over year because the contractors were only able to operate at
AUD10 billion worth of projects in New South Wales, about half capacity due to stringent health and safety
Victoria, Queensland and Western Australia. Notable projects control measures imposed by the authorities, the Group
currently under tender are the AUD2.6 billion M6 Motorway temporarily shuts down its smaller IBS factory at Sepang
in New South Wales and the AUD20 billion Sydney Metro and consolidated all operations at the larger IBS Banting
West project. factory. As a result of this shut down, the Group incurred
a one-off non-cash impairment of RM148 million.

Performance Review • 02 Management Discussion & Analysis

23
GAMUDA BERHAD 197601003632 (29579-T)

Chief Financial Officer’s Statement

GAMUDA LAND

Overseas projects continued to lead in sales performance; contributing two-thirds of overall sales

RM‘million Q1 Q2 Q3 Q4 2020 2019 Var

Property Sales 509 430 244 1,003 2,186 3,070 -29%
Unsold Completed Properties 853 697 22%

High-rise properties make up 90% of unsold completed

properties
As at 31 July 2020, the unsold completed properties stood at
Gamuda Land sold RM1 billion worth RM853 million, mainly comprises high-rise properties located
of properties in Q4, a sharp rebound in Klang Valley and Johor, are gradually being sold as the
Group placed more efforts to monetise the slow-moving stocks
from the previous quarter sales, and at a reasonable profit margin. To extend market reach, the
almost on par with the RM1.1 billion Group has expanded its digital footprint via its Online Deals
platform. Seamless online to offline experience is provided with
sold in Q4 FY2019. the reactivation of all Experience Galleries since May 2020.

Overseas
During the third quarter of the financial year, the COVID-19
pandemic triggered the movement restrictions imposed in all The two developments in Vietnam, Gamuda City in Hanoi and
countries where the Group’s projects are located. All sales Celadon City in Ho Chi Minh City continued to deliver steady
galleries were also closed, resulted in lower property sales of sales performance and remained the biggest contributor of
RM244 million in Q3. However, in Q4, Gamuda Land sold overseas sales. Sales at 661 Chapel St. in Melbourne, Australia
RM1 billion worth of properties, a sharp rebound from the picked up significantly this year and the newly-launched OLÁ,
previous quarter sales, and almost on par with the RM1.1 billion an executive condominium with a GDV of SGD660 million at
sold in Q4 FY2019. As a result, the property division sold Anchorvale Crescent in Singapore, pre-sold one-third
RM2.2 billion worth of properties compared with RM3.1 billion or SGD230 million worth of properties since its launch in
sold last year. mid-March 2020.

Core net profit dipped to RM127 million, a decrease of 51% GAMUDA LAND
Year-on-Year (YoY) compared with last year’s RM259 million.
Nevertheless, the Group’s property sales in Vietnam continued CORE NET PROFIT

RM127
to do well while OLÁ, the Group’s latest property project in
Singapore, pre-sold one-third of its properties since its launch.
Overseas property projects continued to lead in sales performance;
contributing two-thirds of overall property sales, mainly from
Vietnam and Singapore property projects. Unbilled property MILLION
sales totalled RM3.3 billion at the end of FY2020. The property
division remains committed to grow core business segments
and to reduce inventories.

24 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Malaysia
Sales from local projects were adversely affected during the These catalytic placemaking initiatives are intended to refresh
MCO but gradually recovered following the easing of movement and redefine public spaces in the new developments, build a
restrictions in early May 2020. sense of place and character that promotes community well-
being. The combination of recreational facilities and outdoor
In spite of consumer sentiment to due to the COVID-19 pandemic, entertainment such as the Paya Indah Discovery Park and the
established projects such as Horizon Hills and Jade Hills and TownSquare themed retail and F&B enclave, all within the
newer developments such as Gamuda Gardens, twentyfive.7 self-contained Gamuda Cove development puts us on a strong
and Gamuda Cove have seen increases in take-up rate during footing when market conditions improve.
the last quarter of the year since the ease of movement
restrictions due to their location, product offering and the Gamuda Gardens’ Waterfront Village, a lakeside retail village
attractions of the various placemaking initiatives. with a collection of F&B outlets, retail brands, recreational and
wellness elements and a clubhouse, is ready to welcome the
Situated next to the 1,100-acre Paya Indah Discovery Wetlands, first group of residents.
Gamuda Cove is accessible directly via the newly-opened Elite
highway interchange. The Discovery Park @ Gamuda Cove At twentyfive.7, the Quayside Mall target for opening at the end
opened its doors to the public in January 2020. This 23-acre of this year provides a variety of F&B, entertainment and
park is a new tourism hub filled with thrilling activities such shopping experience for the Kota Kemuning and greater Shah
as Aerobar, indoor go-karting, a beach pool club featuring a Alam communities.
5m diving platform as well as F&B outlets.

GAMUDA INFRASTRUCTURE CONCESSION

Water

Traffic returning to Pre-MCO Levels SPLASH, 40%-owned by Gamuda, was sold to Pengurusan Air
Selangor Sdn Bhd (Air Selangor) for RM2.55 billion. To-date,
RM1.97 billion had been received while the balance proceeds
Expressways of RM578 million will be settled in eight equal annual instalments.
During the MCO, the daily traffic volume at all four expressways In September 2020, Gamuda had successfully monetised the
were badly affected and dropped significantly to only 10%-20% balance proceeds by selling it via an Asset Backed Securitisation
from pre-MCO levels. Since the ease of movement restrictions, structure.
traffic volumes of all expressways are trending up to between
88% and 100% compared to pre-MCO levels. The division remained Based on the debt settlement agreement that Gamuda Water
resilient and reported higher core net profit of RM220 million, entered into with Air Selangor to settle its long outstanding
an increase of 8% compared to last year’s RM204 million. debts from SPLASH, RM152 million had been received as
scheduled while the balance of RM610 million will be repaid
in eight annual instalments.
CONCESSION
The operations and maintenance of the Sungai Selangor Water
CORE NET PROFIT Treatment Plant Phase 3 (SSP 3) undertaken by Gamuda Water

RM220
under the new Operations and Maintenance agreement is going
on smoothly and the collection is on time.

MILLION

OTHER COMPREHENSIVE GAIN – RM92 MILLION

Included in the other comprehensive income for the year is a net foreign exchange gain of RM93 million. The foreign exchange
gain resulted from gain on foreign currency translation of the Group’s overseas assets due to a weaker Ringgit Malaysia.

Performance Review • 02 Management Discussion & Analysis

25
GAMUDA BERHAD 197601003632 (29579-T)

Chief Financial Officer’s Statement

CONSOLIDATED CASHFLOW ANALYSIS FOR FY2020

CASH BALANCE

RM2.8 BILLION
Stronger operating cash inflow from ongoing construction
projects particularly MRT Putrajaya Line during the year as
well as robust cashflow from concession business.

Improved cash balance of RM2.8 billion on the back of strong operating cash inflows

RM‘million 2020 2019

Net cash generated from operating activities 596 485

Net cash generated from investing activities 185 497
Net cash generated from/(used in) financing activities 138 (766)
Effects of exchange rate changes 24 10

Net increase in cash at year end 943 226

Cash & bank balances and investment securities 2,792 1,849

Stronger operating cash inflow from ongoing construction projects particularly MRT Putrajaya Line during the year as well as
robust cashflow from concession business.

TOTAL BORROWINGS

Refinance borrowings to lock-in long dated borrowings at low interest rates

Borrowing due for repayment in

RM‘million <1 year >1 year Total

Total borrowings 2,513 2,952 5,465

The interest rate cuts, domestically and internationally, allowed the Group to lower its borrowing cost by 1% during the year.
At the time of writing this statement, the Group further refinanced RM600 million short term debts to long term fixed rate debts
with tenure of up to 10 years at prevailing low interest rates.

26 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

CAPITAL MANAGEMENT

Healthy balance sheet with a prudent gearing of 0.3 times

RM‘million 2020 2019

Total borrowings 5,465 5,144

Total cash & bank balances, and investment securities (2,792) (1,849)

Net borrowings 2,673 3,295

Owners’ equity and non-controlling interests 8,968 8,462

Net gearing ratio (times) 0.30 0.39

The Group’s approach to capital management is to maintain a strong credit rating for its borrowings and healthy capital ratios
in order to support its businesses. The Group aims to maintain a prudent net gearing of not more than 0.7 times. At the end
of this year, the Group’s net gearing ratio improved to 0.30 times as a result of stronger operational cash inflows.

The Group’s overseas projects are financed by borrowings denominated in the local currency of the country which the business
is located in order to provide a natural hedge on the Group’s foreign currency exposure. The Group will continue to lock-in the
borrowing cost with long dated fixed-interest rate borrowings such as bonds at an opportune time.

NET CASH GENERATED GEARING

FROM OPERATING RATIO
ACTIVITIES

RM596 0.3
TIMES
MILLION

CASH BALANCE

RM2.8 BILLION

Performance Review • 02 Management Discussion & Analysis

27
GAMUDA BERHAD 197601003632 (29579-T)

Chief Financial Officer’s Statement

CONSOLIDATED FINANCIAL POSITION ANALYSIS FOR FY2020

Higher liquidity and stronger cash position

RM‘million 2020 2019 Var

Non-current assets 9,002 9,104 -1%

Current assets 9,526 8,076 18%

Total assets 18,528 17,180 8%

Non-current liabilities 3,673 3,612 2%

Current liabilities 5,887 5,106 15%

Total liability 9,560 8,718 10%

Owners’ equity 8,541 8,063 6%

Current ratio (times) 1.6 1.6 0.0

Net assets per share attributable to equity holders (RM) 3.40 3.26 0.14

Total assets Owners’ equity

The Group’s total assets increased by 8% YoY on the back of Owners’ equity increased by 6% to RM8,541 million as a result
higher cash inflow from operations, resulted in higher cash of the increase in earnings and gain on foreign currency
balances at approximately RM2.8 billion. translation of the Group’s overseas assets due to the weaker
Ringgit Malaysia.
Total liabilities
Current ratio (current assets/current liabilities)
Total liabilities of the Group increased by 10% YoY primarily
contributed by the net drawdown of borrowings of RM320 million The Group’s current ratio, a yardstick that measures the state
to reserve cash for future operational use. of the Group’s financial liquidity, remained at 1.6 times this
year. Overall, the current ratio indicates that the Group has
adequate liquidity to meet its short term commitments.

CURRENT
RATIO

1.6
TIMES
Group’s financial liquidity, remained at
1.6 times this year indicates that the
Group has adequate liquidity to meet its
short term commitments.

28 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

CAPITAL EXPENDITURE REQUIREMENTS

No major capital expenditure is expected in the next financial year other than the normal operational expenditure as all major
construction and property development projects are in full swing.

DIVIDEND PAYOUT

2020 2019

Dividend per share (sen) 6.00 12.00

Dividend payout ratio (%) 40% 42%

The Group paid a dividend of 6 sen per share for the current year, half of the 12 sen per share dividend paid last year, as the
earnings were halved.

The dividend paid for the current year aligns with Gamuda’s dividend payment guideline to pay out at least 30% of its annual
earnings. Over the past five years, the Group paid between 42%-56% of its earnings as dividends to shareholders.

MR. SOO KOK WONG

Chief Financial Officer

Performance Review • 02 Management Discussion & Analysis

29
GAMUDA BERHAD 197601003632 (29579-T)

Five Years Group Financial Highlights

REVENUE CORE NET PROFIT OWNERS’ EQUITY

RM6,805 MILLION
RM520 MILLION
RM8,541 MILLION

7,181 7,153
6,805 832 8,541
8,063
7,594 7,488
5,703 700 700 6,878
626
4,171 520

2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016

PROPERTY TOTAL TOTAL

SALES ASSETS BORROWINGS
RM2.2 BILLION
RM18,528 MILLION
RM5,465 MILLION

3.6 18,528
17,180
16,629
3.1 15,666
14,169 5,737
5,465 5,243
5,144
2.4 4,808
2.2 2.1

2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016

30 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Financial Year Ended July

2020 2019 2018 2017 2016

RM‘million (Restated) (Restated)

FINANCIAL RESULTS
Revenue as reported in audited financial statements 3,663 4,565 4,217 3,212 2,122
Share of joint ventures' revenue 3,142 2,616 2,936 2,491 2,049

Revenue 6,805 7,181 7,153 5,703 4,171

Core profit before tax 733 901 1,051 924 781

Less: One-off items
– Impairment on IBS assets (148) – – – –
– Loss on disposal of SPLASH – – (300) – –
– Impairment on Gamuda Water’s trade receivables – – (7) – –
– Impairment on SMART's expressway – – – (98) –

Profit before tax 585 901 744 826 781

Core net profit 520 700 832 700 626

Less: One-off items
– Impairment on IBS assets (148) – – – –
– Loss on disposal of SPLASH – – (300) – –
– Impairment on Gamuda Water’s trade receivables – – (5) – –
– Impairment on SMART's expressway – – – (98) –

Net profit 372 700 527 602 626

KEY INFORMATION OF FINANCIAL POSITION

Total Cash & Bank Balances and Investment Securities 2,792 1,849 1,623 1,042 1,473
Total Assets 18,528 17,180 16,629 15,666 14,169
Total Liabilities 9,560 8,718 8,651 7,809 6,955
Total Borrowings 5,465 5,144 5,737 5,243 4,808
Share Capital (No. of shares) 2,514 2,472 2,468 2,451 2,419
Owners' Equity 8,541 8,063 7,594 7,488 6,878
Total Equity 8,968 8,462 7,978 7,858 7,214

FINANCIAL RATIOS
Core Earnings Per Share (sen) 20.89 28.36 33.83 28.84 25.99
Basic Earnings Per Share (sen) 14.94 28.36 21.43 24.78 25.99
Share Price at Year End (RM) 3.56 3.71 3.60 5.30 4.87
Core Price Earnings Ratio (times) 17.04 13.08 10.64 18.39 18.74
Price Earnings Ratio (times) 23.83 13.08 16.80 21.39 18.74
Core Return on Owners' Equity % 6% 9% 11% 9% 9%
Return on Owners' Equity % 4% 9% 7% 8% 9%
Core Return on Total Assets % 3% 4% 5% 4% 4%
Return on Total Assets % 2% 4% 3% 4% 4%
Dividend Payout to Earning Ratio % 40% 42% 56% 49% 46%
Net Gearing Ratio (times) 0.30 0.39 0.52 0.54 0.46

Performance Review • 02 Management Discussion & Analysis

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GAMUDA BERHAD 197601003632 (29579-T)

Group Segmental Performance

Financial Year Ended July

2020 2019 2018 2017 2016

RM‘million (Restated) (Restated)

GROUP REVENUE
Engineering and Construction 4,789 4,138 4,066 3,327 2,571
Property Development 1,521 2,547 2,575 1,868 1,122
Water and Expressway 495 496 512 508 478

Revenue 6,805 7,181 7,153 5,703 4,171

GROUP PROFIT BEFORE TAX

Engineering and Construction 239 283 367 269 192
Property Development 173 314 261 215 176
Water and Expressway 321 304 423 440 413

Core Profit Before Tax 733 901 1,051 924 781

Less: One-off items (148) – (307) (98) –

Profit Before Tax 585 901 744 826 781

GROUP CORE NET PROFIT

Engineering and Construction 173 237 296 225 146
Property Development 127 259 219 165 163
Water and Expressway 220 204 317 310 317

Core Net Profit 520 700 832 700 626

Less: One-off items (148) – (305) (98) –

Net Profit 372 700 527 602 626

By Geographical
Revenue Core Net Profit
(RM’million) (RM’million)

5,687 5,576
453

270 250 247

1,605
1,118

2020 2019 2020 2019 2020 2019 2020 2019

Malaysia Overseas Malaysia Overseas

32 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Group Quarterly Performance

RM’million Financial Year Ended 31 July 2020

2020
For the period ended
2020
YTD
4th
Jul-20
3rd
Apr-20
2nd
Jan-20
1st
Oct-19

Revenue as reported in audited financial statements 3,663 927 549 1,091 1,096
Share of joint ventures' revenue 3,142 863 440 1,134 705

Revenue 6,805 1,790 989 2,225 1,801

Core profit before tax 733 231 65 220 217

Less: One-off items
– Impairment on IBS assets (148) (148) – – –

Profit before tax as reported in audited financial statements 585 83 65 220 217

Core net profit 520 131 40 175 174

Less: One-off items
– Impairment on IBS assets (148) (148) – – –

Net Profit as reported in audited financial statements 372 (17) 40 175 174

Basic earnings per share (sen) 14.94 (0.69) 1.60 7.07 7.02
Core earnings per share (sen) 20.89 5.20 1.60 7.07 7.02
Dividend per share – single tier (sen) 6.00 – – – 6.00
Net assets per share attributable to equity holders (RM) 3.40 3.40 3.42 3.34 3.35

By Quarters
Revenue and Core Profit Before Tax (PBT)
(RM’million)

2020
2,225
1,790 1,801
Revenue
PBT
989
231 220 217
65

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter

2019
1,977 1,870
1,725 1,609
Revenue
PBT
216 236 223 226

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter

Performance Review • 02 Management Discussion & Analysis

33
GAMUDA BERHAD 197601003632 (29579-T)

Group Quarterly Performance

RM’million Financial Year Ended 31 July 2019

2019 (Restated)
For the period ended
2019
YTD
4th
Jul-19
3rd
Apr-19
2nd
Jan-19
1st
Oct-18

Revenue as reported in audited financial statements 4,565 1,499 1,037 1,125 904
Share of joint ventures' revenue 2,616 478 688 745 705

Revenue 7,181 1,977 1,725 1,870 1,609

Core profit before tax 901 216 236 223 226

Less: One-off items – – – – –

Profit before tax as reported in audited financial statements 901 216 236 223 226

Core net profit 700 179 176 173 172

Less: One-off items – – – – –

Net Profit as reported in audited financial statements 700 179 176 173 172

Basic earnings per share (sen) 28.36 7.25 7.13 7.02 6.97
Core earnings per share (sen) 28.36 7.25 7.13 7.02 6.97
Dividend per share – single tier (sen) 12.00 – 6.00 – 6.00
Net assets per share attributable to equity holders (RM) 3.26 3.26 3.25 3.17 3.16

34 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Statement of Value Added and Distribution

The statement of value added shows the total wealth created by the the Group and its distribution to stakeholders, with the
balance retained in the Group for reinvestment and future growth.

2020 2019
RM‘million (Restated)

VALUE ADDED:
21%
Revenue 6,805 7,181
Operating expenses (6,122) (6,249) 37%
Other income 214 218 2020
Share of profits of associated companies RM1,205 14%
and joint ventures 308 313 million
Total value added for distribution 1,205 1,463
28%
DISTRIBUTION:

To employees
– Salaries & other staff costs 257 253

To Governments
– Taxation 161 149 17%
To providers of capital
– Dividends
– Finance cost
149
139
296
117
41% 2019 10%
– Non-controlling interest 53 52
RM1,463
million
Retained for future reinvestment & growth
– Depreciation and amortisation 223 192 32%
– Retained profits 223 404

Total Distributed 1,205 1,463

RECONCILIATION:
Net Profit for the year attributable equity holders 372 700
Add: Depreciation and amortisation 223 192 Distribution
Finance cost 139 117
To employees
Staff costs 257 253
To government
Taxation 161 149
To providers of capital
Non-controlling interest 53 52
Retained for future
Total Value Added 1,205 1,463 reinvestment and growth

Performance Review • 02 Management Discussion & Analysis

35
GAMUDA BERHAD 197601003632 (29579-T)

Share Performance

STOCK EXCHANGE TRADING NAME STOCK CODE

Bursa Malaysia Securities Bhd Gamuda 5398

Daily Average Volume (’000) Share Price (RM)

35,000 6.00

30,000
5.00

25,000
4.00

20,000

3.00

15,000

2.00
10,000

1.00
5,000

0 0.00
2016 2017 2018 2019 2020

Closing Share Price Daily Average Volume

Share Price Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 April-20 May-20 June-20 July-20

High (RM) 3.79 3.70 3.83 3.88 3.94 4.30 4.13 3.45 3.36 3.92 4.05 3.75

Low (RM) 3.50 3.40 3.58 3.58 3.61 3.80 3.22 2.36 2.79 3.17 3.39 3.23

Daily Average
Volume ('000) 4,106 2,967 3,285 2,243 2,177 4,170 7,878 8,879 2,962 4,751 4,346 3,541

36 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Investor Relations
INVESTOR RELATIONS – POLICY, PRACTICES AND PROGRAMMES (2) Building Trust and Credibility
The Board recognises Investor Relations (IR) as a key component A highly regarded and credible management team is one of
of its Corporate Governance obligations. To meet the high the prerequisites for any investor. The Board recognises that
expectations of the investment community, the Board has set trust and credibility can only be built up over time, and requires
up a dedicated IR unit headed by the Group Managing Director, a long-term commitment to protecting investors’ interests. As
and assisted by the Senior Group General Manager, Investor such, the Board takes all necessary steps to ensure that critical
Relations, to provide direct access to top management in all investor issues are addressed promptly, effectively and accurately
matters pertaining to Investor Relations. so that investors are always kept abreast of corporate
developments and have a broad and clear understanding of
The Board’s primary objective is to provide all necessary strategic issues.
information to the financial community such that shareholders,
investors and potential investors can make an informed judgement (3) Fostering High Quality Relationships
on the fair value of the company’s shares consistently over
High quality relationships can only be nurtured by continuously
time. By doing so, this will help to create demand for the
engaging with the investment community, both through good
company’s shares, and eventually optimise the company’s cost
times as well as during difficult periods. In this respect, the
of capital. To enhance the effectiveness of the IR unit, the Board
IR unit conducts regular scheduled dialogue sessions with
has instituted a comprehensive IR policy and programme with
investors to provide corporate updates, explain the Group’s
the following objectives, guidelines and mandates:-
strategic direction, outline business prospects, and clarify
financial issues. Should circumstances require, unscheduled
(1) Equal Access to Information
dialogue sessions are occasionally arranged to explain and
As a publicly listed group, the Board is acutely aware of the clarify any major corporate developments. Through these
need to always provide fair and equal access to information dialogue sessions, valuable feedback on various issues is often
for all classes of investors. Investors play an important role in obtained from the investment community.
the successful growth and development of the Group. The Board
therefore treats all classes of investors equally, notwithstanding (4) Maintaining Open and Honest Communication Channels
the wide range of investors, many of whom have differing
Given the cyclical nature of the Group’s key business sectors,
investment objectives and mandates. The IR unit caters to the
business prospects are not always necessarily positive. Given
demands of all types of investors, including retail and institutional
this reality, the Board believes in portraying an honest assessment
investors, short and long-term investors, and domestic and
of the group’s business prospects, even if prospects may not
foreign investors.
be particularly bright. In doing so, it is hoped that investors
will obtain a realistic understanding of the business cycles, and
In line with IR best practices, all investors are provided with
will be in a better position to make informed investment
the relevant corporate information as and when requested.
decisions.
Price sensitive information is always disclosed to Bursa Malaysia
before being disclosed to any individual investor. As far as is
practicable, all requests for investor meetings are completely
fulfilled. In addition, the IR unit actively reaches out to overseas
investors on a regular basis to meet with those who are not
able to travel to Malaysia.

Following the COVID-19 pandemic, private and small group

investor meetings and regional investor conferences are now
primarily conducted virtually, particularly with global investors
who still face restrictions in international travel.

Performance Review • 02 Management Discussion & Analysis

37
GAMUDA BERHAD 197601003632 (29579-T)

Investor Relations

PROGRAMMES AND ACTIVITIES The COVID-19 pandemic has forced major changes in all areas
of everyday life. Working from home (WFH) has become a norm
A dedicated Investor Relations (IR) unit has been set up by the
for several companies, whilst face-to-face meetings, events
Board to implement effective IR programmes and activities in
and conferences have now gone virtual. IR activities too have
line with its IR policies. This unit is ultimately headed by the
incorporated the new norms. Investor conferences and quarterly
Group Managing Director, whilst the day-to-day activities are
investor briefings have gone fully virtual since the MCO, and
handled by the unit’s Senior Group General Manager.
there is every indication that this will continue even after the
pandemic ends.
As a proud founding member of the Malaysian Investor Relations
Association (MIRA) several years ago, Gamuda today continues
Prior to the MCO, other IR activities include participating in
to actively support MIRA’s IR objectives and activities as a
international and domestic investor conferences, going on
Corporate Member.
marketing roadshows, hosting teleconferences, responding to
email and telephone enquiries, catering to numerous requests
IR Activities
for private meetings with investors and financial analysts, and
FY2020 was a highly eventful year, particularly in the second organising trips for investors to visit our overseas and domestic
half of the FY. It started with an unexpected change in government project sites.
in February 2020, following the surprise resignation of the
Pakatan Harapan (PH) government led by Tun Mahathir. This The following is a summary of all IR activities during FY2020.
led to a new Perikatan Nasional (PN) government being formed. Large group events such as investor conferences, investor
Within weeks, this political crisis was soon followed by an briefings and group meetings have been carried out virtually
unprecedented health crisis, the COVID-19 pandemic. This forced since the MCO.
the new government to institute an unprecedented country-wide
Movement Control Order (MCO), effectively a lockdown which
No. of
required all non-essential activities to totally cease. Non-essential
Type of Event Investment Centre Meetings
businesses completely stopped, offices closed, national and
state borders sealed, and Malaysians were told to stay indoors.
Investor Conferences Kuala Lumpur, Hong Kong, 14
This lockdown soon resulted in an economic crisis, which the
London, Bangkok,
new government was forced to address by implementing several
Singapore
economic rescue packages.
Investor Briefings Kuala Lumpur 4
The MCO was soon replaced with the Conditional Movement
Control Order (CMCO) which gradually allowed various sectors Project Site Visits Kuala Lumpur 4
of the economy to reopen. As the pandemic was gradually Teleconference Calls Various 15
brought under control, the CMCO was replaced by the Recovery
Movement Control Order (RMCO). The RMCO will continue to Private Meetings Various 53
be in force until the end of 2020.

38 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Key IR Issues Electronic Communication

Investors’ focus was markedly different in the first and second Broader investor communication also takes place via our
halves of the FY. In the first half, key IR issues revolved around corporate website at www.gamuda.com.my as well as through
the usual questions about upcoming construction projects, the Annual Report, Annual General Meeting (AGM) and
particularly MRT 3 and PTMP, progress on the ongoing MRT Extraordinary General Meeting (EGM).
Putrajaya Line project, and updates on the property division.
In the second half of the FY, following the unexpected change There is a wealth of information online. All announcements
in government, global pandemic and the subsequent economic made to Bursa Malaysia are updated on our corporate website
crisis, investors switched focus towards trying to assess the as soon as practicable. In addition, slides and notes from the
impact of the political, health and economic crises on our quarterly investor briefings are also uploaded on our website
various business segments. Notably, there was substantial for the benefit of shareholders unable to attend these briefings.
investor concerns over the Group’s cash flows, financial health
and ability to endure a prolonged lockdown, especially during
Annual General Meeting
the initial weeks of the MCO. Over time, investors started turning
bearish once the extent and scale of the economic damage In line with the new practices, the group’s AGM will be held
became evident, as well as the realisation that the pandemic virtually this year. The Board seeks to encourage shareholder
was not going to end soon. attendance at its virtual AGM. The Chairmen of the Audit,
Remuneration and Nomination Committees, together with other
Towards the end of the FY, investor interest started to increase Directors will usually attend the AGM. Shareholders are
following the signing of the PDP agreement for the PTMP encouraged to raise any pertinent issues at the meeting.
project. Prospects for the domestic construction sector also
brightened up when the government indicated its interest in
reviving the High Speed Rail (HSR) project which was deferred
by the previous PH government. Investor interest was also
supported by the encouraging progress made by our Australian
construction JVs after being shortlisted to tender for some of
the key infrastructure projects being implemented.

Performance Review • 02 Management Discussion & Analysis

39
GAMUDA BERHAD 197601003632 (29579-T)

Financial Calendar

DIVIDENDS
First interim single tier
Announcement – Friday, 13 December 2019
Entitlement – Tuesday, 28 January 2020
Payment – Tuesday, 25 February 2020

ANNOUNCEMENT OF CONSOLIDATED RESULTS

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Friday, Wednesday, Wednesday, Friday,

13 December 2019 25 March 2020 24 June 2020 25 September 2020

ANNUAL GENERAL MEETING

Notice of Annual General Meeting 44th Annual General Meeting
Monday, 9 November 2020 Tuesday, 8 December 2020

40 02 Management Discussion & Analysis • Performance Review

 ANNUAL REPORT 2020

Bonds and Credit Ratings

Rating : AA3/Stable/P1
Outlook : Stable

Gamuda Berhad
(i) RM800 million Islamic Medium-Term Notes Programme (2013/2038).

(ii) RM800 million Islamic Medium-Term Notes Programme (2008/2028).

(iii) RM5 billion Islamic Medium-Term Notes Programme (2015/2045) and RM2 billion Islamic Commercial Papers Programme
(2015/2022) with a combined limit of RM5 billion.

Rating : AA3/Stable/P1 Rating : A1/Stable

Outlook : Stable Outlook : Stable

Bandar Serai Development Sdn. Bhd. Projek Smart Holdings Sdn. Bhd. (SMART)
RM1 billion Islamic Medium-Term Notes Programme (2014/2044) RM330 million Islamic Medium-Term Notes Facility ("Sukuk
and RM500 million Islamic Commercial Papers Programme Musharakah") (2015/2032).
(2014/2021) with a combined limit of RM1 billion.

Rating : AA3/Stable/P1 Rating : A+/Developing

Outlook : Stable Outlook : Developing

Gamuda Land (T12) Sdn. Bhd. Sistem Penyuraian Trafik KL Barat Sdn. Bhd.
RM2 billion Islamic Medium-Term Notes Programme (2020/2050)
(SPRINT)
and RM500 million Islamic Commercial Papers Programme RM510 million Islamic (2016/2020).
(2020/2027) with a combined limit of RM2 billion.

Rating : AA2/Stable Rating : AA2/Stable

Outlook : Stable Outlook : Stable

Kesas Sdn. Bhd. Lingkaran Trans Kota Sdn. Bhd. (LITRAK)

RM735 million Islamic Medium-Term Notes Facility ("Sukuk • RM1.15 billion Islamic Medium-Term Notes I Facility ("Sukuk
Musharakah") (2014/2023). Musharakah") (2008/2023).

• RM300 million Islamic Medium-Term Notes II Facility ("Sukuk

Musharakah") (2008/2023).

Performance Review • 02 Management Discussion & Analysis

41
GAMUDA BERHAD 197601003632 (29579-T)

Group Organisation Structure

BOARD OF DIRECTORS
• YBHG DATO’ MOHAMMED HUSSEIN • YBHG DATO’ LIN YUN LING
Chairman Group Managing Director
• YTM RAJA DATO’ SERI ELEENA BINTI • YBHG TAN SRI DATO’ SETIA HAJI AMBRIN BIN BUANG
ALMARHUM SULTAN AZLAN MUHIBBUDDIN Independent Non-Executive Director
SHAH AL-MAGHFUR-LAH
• PUAN NAZLI BINTI MOHD KHIR JOHARI
Non-Independent Non-Executive Director
Independent Non-Executive Director

YBHG DATO’ UBULL DIN OM

YBHG DATO’ IR CHOW CHEE WAH
Managing Director,
Chairman, Gamuda Land
Gamuda Engineering

Malaysia MR NGAN CHEE MENG

• Klang Valley Mass Rapid Transit (KVMRT) Chief Executive Officer, Gamuda Land
1. MRT Kajang Line
Malaysia Vietnam
2. MRT Putrajaya Line • Gamuda Cove • Celadon City,
• Gamuda Industrialised Building System • Gamuda Gardens Ho Chi Minh City
(Digital IBS) • twentyfive.7 • Gamuda City, Hanoi
• Pan Borneo Highway Package (WPC-04), Sarawak • Horizon Hills
Singapore
• Batang Lupar Bridge, Sarawak • Jade Hills
• OLÁ
• Penang Transport Master Plan (PTMP), Penang • Bukit Bantayan Residences • GEM Residences
• Kundang Estates
Singapore • Madge Mansions Australia
• Gali Batu Multi-Storey Bus Depot • The Robertson • 661 Chapel St.,
• HighPark Suites Melbourne
Taiwan • Gamuda Walk
• Marine Bridge – Guan Tang • Gamuda GM Klang
• Seawall – Taipei Port • Gamuda GM Bukit Bintang
• Kota Kemuning
Australia • Valencia
• Gamuda Engineering (Australia) Pty Ltd • Bandar Botanic
• Gamuda Biz Suites

42 03 Leadership & Structure

 ANNUAL REPORT 2020

• YBHG DATO’ IR HA TIING TAI ALTERNATE DIRECTORS:

Deputy Group Managing Director
• ENCIK MOHAMMED RASHDAN BIN MOHD YUSOF
• YM TUNKU AFWIDA BINTI TUNKU A.MALEK Alternate to YBhg Dato’ Lin Yun Ling and Deputy Group
Independent Non-Executive Director Managing Director
• YBHG DATO’ UBULL DIN OM
Alternate to YBhg Dato’ Ir Ha Tiing Tai and Managing Director
of Gamuda Engineering

BOARD COMMITTEES

• Audit
• Risk Management
• Nomination
• Remuneration

YBHG DATO’ HJ IR AZMI BIN MAT NOR

Group Executive Director, HEAD OFFICE
Infrastructure Concessions

• KESAS • Finance & Management Accounting

• LITRAK • Gamuda Capital & Business Development
• SPRINT • Information Services & Cyber Security
• SMART • Human Resource & Administration
• Gamuda Water • Legal & Company Secretary
• Group Corporate Communications & Sustainability
• Corporate Development
• Investor Relations

• Internal Audit
• Integrity and Governance Unit

03 Leadership & Structure

43
GAMUDA BERHAD 197601003632 (29579-T)

Profile of Board of Directors

YBhg Dato’ Mohammed Hussein has been on the Board as

Chairman since 12 December 2013.

Previously, YBhg Dato’ Mohammed Hussein was with the Malayan

Banking Berhad (“Maybank”) Group for 31 years, during which
time he held various senior management positions including
Head of Corporate Banking, Head of Commercial Banking,
Head of Malaysian Operations, Managing Director of Aseambankers
Malaysia Berhad (now known as Maybank Investment Bank
Berhad) and Executive Director (Business Group). The last
position held prior to his retirement from the Maybank Group
in 30 January 2008 was Deputy President/Executive Director/
Chief Financial Officer. Presently, he is also Chairman of the
Corporate Debt Restructuring Committee (“CDRC”) sponsored
by Bank Negara Malaysia to facilitate the resolution and
restructuring of major corporate debts.

YBhg Dato’ Mohammed Hussein’s wide and varied organisational

experience in commercial and investment banking and his
YBHG DATO’ MOHAMMED HUSSEIN exposure to many other industries have enabled him to provide
Chairman advice to the Board and make him ideally suited to chair the
Board as well as the Remuneration and Nomination Committees.
Nationality: Malaysian
YBhg Dato’ Mohammed Hussein obtained a Bachelor of Commerce
Age: 70 degree majoring in Accounting from the University of Newcastle,
New South Wales, Australia. He is an alumnus of the Advanced
Management Programme, Harvard Business School, Boston,
Gender: Male
USA and attended several management programmes in Wharton
Business School (Philadelphia, USA) IMD (Lausanne, Switzerland)
and INSEAD (Fontainebleau, France). He is also a Fellow of the
Asian Institute of Chartered Bankers.
BOARD COMMITTEE MEMBERSHIP
• Member of Audit Committee YBhg Dato’ Mohammed Hussein has no family relationship with
• Chairman of Remuneration Committee any Director and/or major shareholder of the Company, has no
• Chairman of Nomination Committee conflict of interest with the Company and has no conviction for
any offences within the past five years (other than traffic
OTHER DIRECTORSHIPS: offences, if any) and there was no public sanction or penalty
PUBLIC COMPANIES imposed by the relevant regulatory bodies during the financial
year.
• Bank of America Malaysia Berhad
• Credit Guarantee Corporation Malaysia Berhad
YBhg Dato’ Mohammed Hussein attended all six board meetings
held during the financial year ended 31 July 2020.
LISTED ISSUERS
• Hap Seng Plantations Holdings Berhad
• Syarikat Takaful Malaysia Keluarga Berhad

44 03 Leadership & Structure

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YBhg Dato’ Lin Yun Ling has been on the Board as Managing
Director since 10 February 1981.

A civil engineer, YBhg Dato’ Lin joined Gamuda in 1978 as a

senior project manager and became the Group Managing Director
at the age of 26, four years later. He remains at the helm of
the Group that has progressed from a small construction
set-up to Malaysia’s leading infrastructure and property
developer.

With his entrepreneurial vision and strategic leadership skills,

he is focused on growing the core businesses of the Group,
leveraging on the differentiated strengths of its talent pool.
The strategies for the Group have resulted in a sustained period
of growth in revenues and earnings in each of its core businesses.

The growth of the Group has also been led by consistent and
continuous innovation, the latest being significant investment
into automated digital production technology. Group-wide,
processes and systems are being placed on a common digital YBHG DATO’ LIN YUN LING
platform to ensure future competitiveness. Group Managing Director

YBhg Dato’ Lin holds a Bachelor of Science (Honours) degree Nationality: Malaysian
in Civil Engineering from King’s College, London, University of
London, UK. Age: 65

YBhg Dato’ Lin has no family relationship with any Director

Gender: Male
and/or major shareholder of the Company, has no conflict of
interest with the Company and has no conviction for any offences
within the past five years (other than traffic offences, if any)
and there was no public sanction or penalty imposed by the
BOARD COMMITTEE MEMBERSHIP
relevant regulatory bodies during the financial year.
• Chairman of Risk Management Committee
YBhg Dato’ Lin attended four out of six board meetings held • Member of Remuneration Committee
during the financial year ended 31 July 2020.
OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
• Yayasan Gamuda

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GAMUDA BERHAD 197601003632 (29579-T)

Profile of Board of Directors

YBhg Dato’ Ir Ha, a civil engineer, has been on the Board since
1 February 1990. He was promoted to Deputy Group Managing
Director on 1 June 2012.

As Deputy Group Managing Director, YBhg Dato’ Ir Ha, who has

42 years of extensive and successful experience in large-scale
design-and-build (DAB), build-operate-transfer (BOT) and project
delivery partner (PDP) projects, plays a key role in helping to
drive the Group’s engineering and construction and infrastructure
concession business divisions both locally and internationally.

Currently, through the Company’s role as the project turnkey

contractor, he directs and oversees the construction of the
massive KVMRT project. He is also helping the Group expand
its engineering and construction business into Australia, Taiwan,
Singapore and other regional markets.

His strong engineering expertise and extensive experience in

delivering large and complex engineering projects enable him
YBHG DATO’ IR HA TIING TAI to contribute effectively to the Group’s business and to the
Deputy Group Managing Director Board.

Nationality: Malaysian YBhg Dato’ Ir Ha holds a Bachelor of Engineering (Honours)

degree from University of Malaya. He is a Professional Engineer
Age: 66 registered with the Board of Engineers, Malaysia; a Chartered
Structural Engineer and a Chartered Engineer registered with
the Engineering Council, UK; a Fellow of the Institution of
Gender: Male
Engineers Malaysia; a Fellow of the Institution of Civil Engineers,
UK; a Fellow of the Institution of Structural Engineers, UK and
a Fellow of the Chartered Institution of Highways And
Transportation, UK.
BOARD COMMITTEE MEMBERSHIP
• Member of Risk Management Committee YBhg Dato’ Ir Ha has no family relationship with any Director
and/or major shareholder of the Company, has no conflict of
OTHER DIRECTORSHIPS IN PUBLIC COMPANIES interest with the Company and has no conviction for any offences
• Danau Permai Resort Berhad within the past five years (other than traffic offences, if any)
and there was no public sanction or penalty imposed by the
relevant regulatory bodies during the financial year.

YBhg Dato’ Ir Ha attended all six board meetings held during

the financial year ended 31 July 2020.

46 03 Leadership & Structure

 ANNUAL REPORT 2020

An advocate and solicitor, YTM Raja Dato’ Seri Eleena has been
on the Board since 1 June 1992.

YTM Raja Dato’ Seri Eleena’s extensive experience in legal

practice enables her to contribute significantly to the Board.

YTM Raja Dato’ Seri Eleena was a Barrister-at-Law from

Lincoln’s Inn, London, UK. She was called to the English Bar
in 1985. Upon returning to Malaysia, she worked with an
international firm in Kuala Lumpur and was called to the
Malaysian Bar in 1986. She set up her own legal practice Messrs
Raja Eleena, Siew, Ang & Associates in 1987 of which she is
presently a senior partner.

YTM Raja Dato’ Seri Eleena is also a trustee in several charitable

organisations such as Yayasan Sultan Azlan Shah, Yayasan
Tuanku Bainun, Yayasan Cemerlang, Yayasan Gamuda and Pusat
Kreatif Kanak-Kanak Tuanku Bainun. These organisations
conduct a variety of activities which focus on community
development, improving and upholding education at all levels, YTM RAJA DATO’ SERI ELEENA BINTI
promotion of sports, exploring and expanding children’s creativity ALMARHUM SULTAN AZLAN MUHIBBUDDIN SHAH
through performing arts, and preservation of heritage and AL-MAGHFUR-LAH
tradition, culture, social or art, which includes upkeep of the Non-Independent Non-Executive Director
historical buildings and artefacts.
Nationality: Malaysian
YTM Raja Dato’ Seri Eleena has no family relationship with any
Director and/or major shareholder of the Company, has no Age: 60
conflict of interest with the Company and has no conviction for
any offences within the past five years (other than traffic
Gender: Female
offences, if any) and there was no public sanction or penalty
imposed by the relevant regulatory bodies during the financial
year.
BOARD COMMITTEE MEMBERSHIP
YTM Raja Dato’ Seri Eleena attended five out of six board
meetings held during the financial year ended 31 July 2020. • Member of Remuneration Committee

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES

• KAF-Seagroatt & Campbell Berhad
• Yayasan Gamuda
• Yayasan Sultan Azlan Shah
• Yayasan Tuanku Bainun

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GAMUDA BERHAD 197601003632 (29579-T)

Profile of Board of Directors

YBhg Tan Sri Dato’ Setia Haji Ambrin Bin Buang joined the
Board on 28 September 2018.

YBhg Tan Sri Dato’ Setia Haji Ambrin holds a Degree in Economics
from the University of Malaya and a Masters in International
Business from the University of South Carolina, USA.

He was appointed the Auditor General of Malaysia on 22 February

2006 upon his retirement after having served the Government
(Malaysian Civil Service) for over 35 years. He completed his
tenure as Auditor General of Malaysia on 22 February 2017.

His working career includes experience in the Ministry of

Trade and lndustry from 1971 to 1982 and was appointed as
Deputy Director, Small Scale Industries Division in 1981.
He has also served in the Malaysian Timber lndustry Board
from 1982 to 1987 and the National Institute of Public
Administration from July 1987 to 1991.

YBhg Tan Sri Dato’ Setia Haji Ambrin was also attached to the
Malaysian Embassy in Tokyo, Japan from 1992 to March 1995
as Minister for Economic Affairs and Deputy Head of Mission.
He was a Senior General Manager for the Kuala Lumpur
YBHG TAN SRI DATO’ SETIA HAJI AMBRIN International Airport Berhad from April 1995 to February 1999.
BIN BUANG He was the State Secretary of the Selangor State Government
Independent Non-Executive Director from March 1999 to September 2001 and Secretary General of
the Ministry of Education till his appointment as Auditor General
of Malaysia.
Nationality: Malaysian
On 16 May 2016, YBhg Tan Sri Dato’ Setia Haji Ambrin was
Age: 71
conferred an Honorary Doctorate Award which carries the title
Prof. (Dr.) by IIC University of Technology, Cambodia. In 2017,
Gender: Male he was awarded an Honorary Doctorate in Accounting by
Universiti Kebangsaan Malaysia and appointed Adjunct Professor
by Universiti Utara Malaysia. He is currently a member of
Dewan DiRaja Selangor. He was formerly a Board Member of
BOARD COMMITTEE MEMBERSHIP the Malaysian lnstitute of Integrity.
• None
For the past 12 years, he has been a frequent speaker presenting
OTHER DIRECTORSHIPS: his views and perspective on public sector auditing, good
PUBLIC COMPANIES governance and integrity at many seminars and conferences
organised domestically and internationally.
• Yayasan Pelaburan Bumiputra
YBhg Tan Sri Dato’ Setia Haji Ambrin was appointed as the
LISTED ISSUERS Chairman of the Special Investigation Committee on procurement,
• Lingkaran Trans Kota Holdings Berhad governance and finance on 3 July 2018.
• BIMB Holdings Berhad
YBhg Tan Sri Dato’ Setia Haji Ambrin has no family relationship
with any Director and/or major shareholder of the Company,
has no conflict of interest with the Company and has no
conviction for any offences within the past five years (other
than traffic offences, if any) and there was no public sanction
or penalty imposed by the relevant regulatory bodies during
the financial year.

YBhg Tan Sri Dato’ Setia Haji Ambrin attended all six board
meetings held during the financial year ended 31 July 2020.

48 03 Leadership & Structure

 ANNUAL REPORT 2020

A chartered accountant, YM Tunku Afwida joined the Board on

1 June 2012. She was redesignated as the Chairperson of Audit
Committee on 28 September 2018.

YM Tunku Afwida has held senior roles in investment banks.

From 2006 until 2008, she was Chief Executive Officer (CEO)
and Executive Director (ED) of Kenanga Investment Bank Berhad.
Prior to that, from 2003 to 2006, she was CEO and ED of MIMB
Investment Bank Berhad (now known as Hong Leong Investment
Bank Berhad) and from 1995 to 2003, she was ED/Chief Investment
Officer of Commerce Asset Fund Managers Sdn Bhd.

She is currently a Director and shareholder of Asia Equity

Research Sdn Bhd, a company licensed by the Securities
Commission of Malaysia to provide advisory services in corporate
finance including compliance and funding advisory related
services.

YM Tunku Afwida possesses vast financial, analytical and risk

management experience, enabling her to provide invaluable
input to the Board and Audit Committee.

YM Tunku Afwida holds a Bachelor of Science (Honours) degree

in Economics and Accountancy from City University London, YM TUNKU AFWIDA BINTI TUNKU A.MALEK
UK; qualified as a Chartered Accountant from the Institute of Independent Non-Executive Director
Chartered Accountants in England and Wales and is a member
of the Malaysian Institute of Accountants.
Nationality: Malaysian
YM Tunku Afwida has no family relationship with any Director
Age: 55
and/or major shareholder of the Company, has no conflict of
interest with the Company and has no conviction for any offences
within the past five years (other than traffic offences, if any) Gender: Female
and there was no public sanction or penalty imposed by the
relevant regulatory bodies during the financial year.

YM Tunku Afwida attended all six board meetings held during BOARD COMMITTEE MEMBERSHIP
the financial year ended 31 July 2020. • Chairperson of Audit Committee
• Member of Nomination Committee
• Member of Risk Management Committee

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES/

LISTED ISSUERS
• Telekom Malaysia Berhad
• SAM Engineering & Equipment (M) Berhad

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GAMUDA BERHAD 197601003632 (29579-T)

Profile of Board of Directors

Puan Nazli joined the Board on 7 March 2016.

After completing her tertiary education, Puan Nazli joined

Aseambankers Malaysia Berhad (now known as Maybank
Investment Bank Berhad) from September 1981 to January
1996, holding various positions. Her last position before she
left ASEAM was Head of Project Development.

In February 1996, Puan Nazli joined Percon Corporation Sdn Bhd

(Percon), a wholly-owned subsidiary of Permodalan Nasional
Berhad as the General Manager (Corporate Services). At Percon,
she was tasked to put in place a financial and corporate
restructuring scheme for the company. The job involved
enhancing, strengthening and developing Percon’s competitive
position in the field of engineering and construction and at the
same time, developing the corporate direction for Percon.
At group level, Puan Nazli represented Percon’s interests in
various subsidiaries and associate companies ranging from
road concession to property development, both locally and
PUAN NAZLI BINTI MOHD KHIR JOHARI abroad. She left Percon in July 2002 and is not attached to any
Independent Non-Executive Director particular company at present.

Nationality: Malaysian Puan Nazli’s vast exposure in a variety of industries has

contributed positively to her analytical and conceptual approach
Age: 66 in decision making. Her extensive people-management and
general management experience both at corporate and
line-management levels also enables her to provide invaluable
Gender: Female
inputs to the Board and Audit Committee.

Puan Nazli holds a Bachelor of Science in Business Administration

from The George Washington University, Washington D.C., USA
BOARD COMMITTEE MEMBERSHIP
and a Master of Business Administration from Syracuse
• Member of Audit Committee University, Syracuse, New York, USA.
• Member of Nomination Committee
Puan Nazli has no family relationship with any Director
OTHER DIRECTORSHIPS IN PUBLIC COMPANIES and/or major shareholder of the Company, has no conflict of
• Lingkaran Trans Kota Holdings Berhad interest with the Company and has no conviction for any offences
within the past five years (other than traffic offences, if any)
and there was no public sanction or penalty imposed by the
relevant regulatory bodies during the financial year.

She attended all six board meetings held during the financial
year ended 31 July 2020.

50 03 Leadership & Structure

 ANNUAL REPORT 2020

Encik Mohammed Rashdan or widely known as Danny, joined

Gamuda on 1 May 2018 and was appointed as the Alternate
Director to YBhg Dato’ Lin Yun Ling on 28 September 2018.

Encik Rashdan has 26 years of experience in the corporate

finance and investment banking industry, corporate consultancy
and the financial services sector. He served as Executive Director
(Investments) of Khazanah Nasional Berhad from 2010 to 2012
and as Chief Executive Officer of Maybank Investment Bank
Berhad from 2008 to 2010. Prior to that, he was Managing
Director of BinaFikir Sdn Bhd from 2003 to 2008 and was
Managing Director in QuantePhi Sdn Bhd, a boutique corporate
finance advisory firm he founded in 2012, until December 2017.

Encik Rashdan leads the Group Capital function which undertakes

a strategic performance oversight function and thus oversees
the appropriate capital allocation to all of the Group’s core
business divisions of Engineering, Property and IBS. He works
closely with the Group Chief Financial Officer in Performance
Monitoring of these divisions, to constantly evaluate the efficacy ENCIK MOHAMMED RASHDAN BIN MOHD YUSOF
of Group strategy and its implementation. He also oversees the Alternate Director to YBhg. Dato’ Lin Yun Ling and
Group’s Corporate Finance function, which manages all of the Deputy Group Managing Director
Group’s acquisitions and disposals, and new ventures.
Nationality: Malaysian
He also oversees the Group’s investment into technology and
innovation under our Digital Transformation effort, to enhance Age: 49
the Group’s competitive edge. In line with this, he plays a key
role in growing the business for Gamuda IBS, the country’s
Gender: Male
first digital and robotic Industrialised Building System facility
in Malaysia.

Currently, he is focused on assisting the Group Managing

BOARD COMMITTEE MEMBERSHIP
Director in our contractual participation and delivery of the
Penang South Islands (“PSI”) and the Penang Transport Master • None
Plan (“PTMP”) projects.
OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
Encik Rashdan holds a Master of Arts (Honours) Degree in • None
Economics from the University of Cambridge, United Kingdom.
He is a Chartered Accountant and a Member of the Institute
of Chartered Accountants in England and Wales (ICAEW) and
the Association of Corporate Treasurers (ACT) of the United
Kingdom.

Encik Rashdan has no family relationship with any Director

and/or major shareholder of the Company, has no conflict of
interest with the Company and has no conviction for any offences
within the past five years (other than traffic offences, if any)
and there was no public sanction or penalty imposed by the
relevant regulatory bodies during the financial year.

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GAMUDA BERHAD 197601003632 (29579-T)

Profile of Board of Directors

YBhg Dato’ Ubull joined the Board as the Alternate Director

to YBhg Dato’ Ir Ha Tiing Tai on 2 January 2015.

YBhg Dato’ Ubull joined Gamuda in 1988 and has held various
positions in the Gamuda group. In the following 31 years, he
advanced rapidly through various business and operational roles
within the Group and is currently the Managing Director of
Gamuda Engineering Sdn Bhd. He has been involved in several
notable projects, namely the Electrified Double Track Project
(Ipoh-Padang Besar), Sungai Selangor Water Supply Scheme
Phase 3, Shah Alam Expressway, Damansara-Puchong Expressway
and SPRINT Highway. He is currently involved in the Tunnelling
and Underground works for the KVMRT project and the
Pan Borneo Highway package (WPC-04) project.

YBhg Dato’ Ubull holds a Bachelor Degree in Housing, Building

and Planning from Universiti Sains Malaysia. He is the
Vice President of Master Builders Association Malaysia.

YBHG DATO’ UBULL DIN OM YBhg Dato’ Ubull has no family relationship with any Director
Alternate Director to YBhg Dato’ Ir Ha Tiing Tai and and/or major shareholder of the Company, has no conflict of
Managing Director of Gamuda Engineering Sdn Bhd interest with the Company and has no conviction for any offences
within the past five years (other than traffic offences, if any)
Nationality: Malaysian and there was no public sanction or penalty imposed by the
relevant regulatory bodies during the financial year.
Age: 58

Gender: Male

BOARD COMMITTEE MEMBERSHIP

• Member of Risk Management Committee

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES

• None

52 03 Leadership & Structure

 ANNUAL REPORT 2020

Profile of Group Senior Management

YBHG DATO’ GOON HENG WAH YBHG DATO’ HAJI AZMI BIN MAT NOR
Aged 64, Malaysian (Male) Aged 62, Malaysian (Male)
Group Executive Director, Gamuda Berhad Group Executive Director, Gamuda Berhad

A civil engineer, YBhg Dato’ Goon has years of experience in YBhg Dato’ Haji Azmi was appointed to the Board of Directors
the fields of engineering, construction, and infrastructure, in on 24 September 2001 and remained a member until September
particular large-scale infrastructure project mobilisation and 2018 when he resigned as part of the board composition revamp
implementation. for the purposes of complying with the Code on Corporate
Governance to reconstitute the Board comprising majority of
Dato’ Goon was appointed to the Board of Directors on 1 June Independent Directors. Dato’ Haji Azmi continues to be part of
1992 and remained a member until September 2018 when he Gamuda Group’s Key Senior Management Team as an Executive
resigned as part of the board composition revamp for the Director.
purposes of complying with the Code on Corporate Governance
to reconstitute the Board comprising majority of Independent A civil engineer, Dato’ Haji Azmi has worked as Resident
Directors. Dato’ Goon continues to be part of Gamuda Group’s Engineer at the Public Works Department (JKR) of Pahang and
Key Senior Management Team as an Executive Director. Selangor. His last position with the Public Works Department
(JKR) was as Assistant Director to the Central Zone Design
During his career in Gamuda, Dato’ Goon has successfully Unit of JKR Kuala Lumpur (Road Branch).
steered and managed the pioneering teams to complete various
overseas construction projects in Qatar, Bahrain, and India Dato’ Haji Azmi has extensive experience in developing and
namely, the Dukhan Highway, Hamad International Airport, Sitra managing the implementation of the Group’s complex
Causeway Bridges, Durgapur Expressway and Panagarh-Palsit infrastructure concession projects in Malaysia. He continues to
Highway. play a significant leadership role in overseeing the operations
of the Group’s infrastructure concessions, ranging from
Dato’ Goon is also responsible for the overall oversight and expressways to water-related projects and others. Besides
project management of the Klang Valley MRT (KVMRT) Project. infrastructure concession projects, Dato’ Haji Azmi is also deeply
Under his stewardship, the MRT Kajang Line was successfully involved in the Company’s role as Project Delivery Partner in
completed ahead of time and within budget. In recognition of the implementation of the Klang Valley MRT (KVMRT) Project.
his strong leadership and proven track record, he was entrusted
once again to lead the ongoing MRT Putrajaya Line which covers Dato’ Haji Azmi holds a Bachelor of Science (Honours) Degree
a larger scope of work and a more complex geological condition. and Masters of Science in Highway Engineering, both from
University of Strathclyde, Glasgow, Scotland, UK.
Dato’ Goon holds a Bachelor of Engineering (Honours) degree
from the Polytechnic of South Bank, UK (now known as London OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
South Bank University). • Lingkaran Trans Kota Holdings Berhad
• Kesas Holdings Berhad
OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
• Danau Permai Resort Berhad

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GAMUDA BERHAD 197601003632 (29579-T)

Profile of Group Senior Management

MR. NGAN CHEE MENG MR. SOO KOK WONG

Aged 55, Malaysian (Male) Aged 51, Malaysian (Male)
Chief Executive Officer, Gamuda Land Chief Financial Officer, Gamuda Berhad

Mr. Ngan was formerly the Chief Operating Officer before A chartered accountant, Mr. Soo Kok Wong was on the Board
assuming the position as Chief Executive Officer of Gamuda as an Alternate Director from 2013 to 2018. Now, Mr. Soo is
Land in January 2019. part of Gamuda Group’s Senior Management Team and holds
the position as the Chief Financial Officer of Gamuda.
Prior to 2017, Mr. Ngan was the Head of Finance of Gamuda
Land. As head of the finance function, Mr. Soo is responsible for the
Group’s financial management, treasury, investor relations,
He was appointed to the Board of Bandar Botanic Resort Berhad legal and company secretarial.
in October 2008. He also sits on the Boards of Jade Homes
Resort Berhad and several private limited companies. Mr. Soo was attached to Price Waterhouse Malaysia prior to
joining the Company in 1996. He has vast experience in
Prior to joining Gamuda, he was a Senior Consultant with accounting, tax, audit, finance, treasury and budgetary control.
Coopers & Lybrand (now known as PricewaterhouseCoopers)
and Group Accountant of the Building Materials Division at Mr. Soo is a fellow member of the Association of Chartered
Hong Leong Industries Berhad. He had also served as Senior Certified Accountants (ACCA), UK and a member of the Malaysian
Finance Manager with the SPRINT Highway concessionaire. Institute of Accountants.

Mr. Ngan is a qualified accountant registered with the Malaysian OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
Institute of Certified Public Accountants and a Chartered • None
Accountant registered with the Malaysian Institute of Accountants.

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES

• None

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MR. SZETO WAI LOONG DATO’ HJ ABDUL SAHAK BIN SAFI

Aged 61, Malaysian (Male) Aged 60, Malaysian (Male)
Project Director, Penang Transport Master Plan and Executive Director, Gamuda Land
Reclamation Works, SRS Consortium

Mr. Szeto Wai Loong started off his career as a cadet engineer Dato’ Hj Abdul Sahak assumed his current role as Executive
in 1979. He gained invaluable on-site experience working on Director in the Group’s property division in July 2016. He is
various types of rail projects for KTMB before being appointed also an Alternate Director in UEM Sunrise-Gamuda Joint Venture
as Project Manager to manage the construction of phase one of the Horizon Hills development in Johor Bahru.
and two of the Star Light Rail Transit System.
Since joining the Group in May 2001, he has been instrumental
Following this, he was put in charge of the construction of the in the conceptualisation and planning of several landmark
Riana Green Condominium project at Tropicana Golf and Country developments namely, Bandar Botanic in Klang, Valencia in
Resort between 1995 and 1997. Then, in 1997 to 1999, in his Sungai Buloh and Horizon Hills in Nusajaya, Johor.
capacity as Senior Project Manager he oversees the 31km
Tanjung Pelepas Port Rail Link Project. He is currently involved in the planning of Gamuda Cove, a new
development in Selangor spanning over 1,530 acres, and Gamuda
Prior to joining Gamuda, Mr. Szeto was also involved in the Gardens, an 810 acres mixed development located north of
Tunnel Link project connecting Suria KLCC and the KL Convention Kuala Lumpur.
Centre, refurbishment of the Impiana Hotel and the construction
of the 39-storey Commerce Asset Holding Berhad tower, after Dato’ Hj Abdul Sahak was formerly with The Lion Group -
which he was posted to Delhi to oversee the Civic Convention Property & Construction Division before joining Gamuda Land.
Centre Project for the Municipal Corporation of Delhi.
He holds a Bachelor of Science (Honours) degree in Housing
In June 2007, Mr. Szeto joined MMC Gamuda as General Manager Building and Planning (Arch) from Universiti Sains Malaysia.
responsible for the country’s largest infrastructure project at
the time, the 328km Electrified Double Track Project from Ipoh He is also an associate fellow in the Institute of Local Government
to Padang Besar. Studies (ILGS), Universiti Utara Malaysia.

In 2015, Mr. Szeto was entrusted to represent Gamuda in its OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
role in a joint venture partnership as the Project Delivery • None
Partner for the Penang Transport Master Plan. His tasks include
managing the preparation of feasibility studies, as well as design
and plan the implementation of the Light Rail Transit System
and the Pan Island Link Road.

Mr. Szeto holds a Diploma in Civil Engineering and also has

an MBA in General Management.

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES

• None

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GAMUDA BERHAD 197601003632 (29579-T)

Profile of Group Senior Management

EN. ADIL PUTRA BIN AHMAD MS. LIM SOO LYE

Aged 55, Malaysian (Male) Aged 55, Malaysian (Female)
Executive Director, Gamuda Engineering Director, Legal & Company Secretarial, Gamuda Berhad

En. Adil was appointed as the Executive Director in April 2013, Ms. Lim qualified as an Advocate & Solicitor of the High Court
and was also the Project Coordinator for MMC-Gamuda MRT of Malaya in 1990 whereupon she commenced legal practice
Putrajaya Line. He is currently involved in the construction in a reputable law firm in Kuala Lumpur. She continued in
planning for the Penang Transport Master Plan. legal practice until 1995, after which she joined a public listed
company as Head of its Legal Department.
He has extensive experience in managing and constructing
large scale infrastructure projects, including the Lebuhraya In 1996 Ms. Lim joined Gamuda as a Legal Manager. Her first
Damansara-Puchong, Shah Alam Expressway and the KVMRT responsibility was to set up an in-house legal department. Soon
project. after, she was given the responsibility of taking charge of the
company secretarial department whereby it was merged with
In the early years of his career, he was involved in the the legal department. She was appointed the Company’s joint
construction of the Ipoh-Lumut Highway as well as part of the Company Secretary in 1998 following the departmental merger.
North-South Expressway. Ms. Lim was promoted to her current position as Director,
Legal & Company Secretarial in January 2020.
En. Adil graduated with a Bachelor of Science in Civil Engineering
from the California State University in Long Beach, USA. He is As head of the Legal and Company Secretarial Division, Ms.
registered with the Board of Engineers Malaysia and is a Lim is responsible in overseeing and managing all legal matters
member of the Institution of Engineers, Malaysia. for the Group of Companies, including ensuring compliance
with all legal and regulatory requirements.
OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
• None Ms. Lim graduated with an LLB degree from University of
Malaya and qualified as an Advocate and Solicitor of the High
Court of Malaya in 1990.

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES

• None

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 ANNUAL REPORT 2020

MS. SREEJAYA MENON Ts. SHARIFAH ALAUYAH BINTI WAN OTHMAN

Aged 52, Malaysian (Female) Aged 60, Malaysian (Female)
Senior General Manager, Group Corporate Communications & Chief Integrity & Governance Officer,
Sustainability, Gamuda Berhad Integrity and Governance Unit, Gamuda Berhad

Ms. Sreejaya is the Head of Group Corporate Communications Sharifah Alauyah started her career with the Government in
and Sustainability at Gamuda Berhad. She has over 20 years 1984. After 15 years of service, she joined Gamuda Berhad’s
of experience in corporate and government relations, corporate water concession arm, Syarikat Pengeluar Air Sungai Selangor
citizenship, media relations, internal communications and Sdn Bhd (SPLASH) in April 2001. She left her General Manager
branding. position at SPLASH in May 2016.

She currently oversees the Group’s overall communications

From June 2016 until December 2019, Sharifah assumed her
strategy, corporate branding and reputation management. She
position as Chief Operating Officer of the Stormwater Management
is responsible for the Group’s sustainability initiatives as a
driver for growth, brand purpose and future-proofing for and Road Tunnel (SMART), one of Gamuda Berhad’s highway
governance. She is also the adviser for the Gamuda Women concessions.
Empowerment Network (GWEN) that advances the cause for
women to build their careers. Sharifah has been helming dual roles. Since March 2018 she
oversees the Group’s foundation, Yayasan Gamuda that focuses
Prior to joining Gamuda, she was Head of Corporate Affairs at primarily on education aid and community improvement since
the Securities Commission, the regulator of the Malaysian March 2018. Commencing January 2020, when she moved to
capital market. Her previous roles were in Citibank Berhad, Gamuda headquarters, Sharifah also heads Gamuda Berhad’s
American Express and Ogilvy & Mather. newly formed Integrity and Governance Unit as its Chief Integrity
& Governance Officer, responsible for ensuring good governance
Ms. Sreejaya holds a Master of Arts (MA) in Communication framework and ethical/bribery and corruption-free practices in
Management from the University of South Australia. the Group.

OTHER DIRECTORSHIPS IN PUBLIC COMPANIES From a civil environmental engineering background, Sharifah
holds a Post-Graduate Diploma in Environmental Engineering
• None
(Water & Sanitation) from the International Institute for Hydraulic
and Environmental Engineering in Delft, The Netherlands, a
General Additional Information Bachelor of Science (Honours) in Civil Engineering from University
1. None of the Group Senior Management has any family
of Strathclyde in Scotland and a Diploma in Civil Engineering
relationship with and is not related to any director and/or
from UiTM Malaysia.
major shareholder of Gamuda Berhad.
2. None of the Group Senior Management has any conflict of
interest with Gamuda Berhad. Sharifah is a Professional Technologist registered with the
3. None of the Group Senior Management has conviction for Malaysian Board of Technologist (MBOT) since 2017.
any offences within the past five years (other than traffic
offences, if any) and there was no public sanction or penalty OTHER DIRECTORSHIPS IN PUBLIC COMPANIES
imposed by the relevant regulatory bodies during the financial • None
year.

03 Leadership & Structure

57
SUSTAINABILITY
60 General Disclosures

82 Economic

86 Environment

100 Social
Purple Heron, Ardea Purpurea,
commonly found at Paya Indah Discovery Wetlands
GAMUDA BERHAD 197601003632 (29579-T)

Sustainability Report
Build Right.
For Life.
WE EMBRACE OUR UNIQUE RESPONSIBILITY AND ABILITY TO SHAPE THE STRATEGY FOR ENVIRONMENTAL AND BIODIVERSITY
CONSERVATION AT THE DESIGN, PLANNING AND CONSTRUCTION STAGE. IT IS OUR MISSION TO ENSURE THE EMISSION
REDUCTION PLAN IS INCORPORATED INTO A CITY OR A DEVELOPMENT TO ALLOW GREENHOUSE GAS REDUCTION TO BE
ADOPTED SEAMLESSLY THROUGHOUT THE PROJECT DEVELOPMENT LIFE CYCLE. THAT WAY, WE DOUBLE DOWN ON OUR
EFFORTS BY HELPING THE RESIDENTS OF OUR BUILT ENVIRONMENT AND THE USERS OF OUR INFRASTRUCTURE IN
LOWERING THEIR RESPECTIVE CARBON FOOTPRINTS TOO.

Gamuda has accumulated years of experience in fostering Our innovations have won us international accolades. Our
positive change and legacies in the economic, environmental, Autonomous Tunnel Boring Machine garnered the Technical
social and governance sphere. Gamuda Parks is the umbrella Product/Equipment Innovation of the Year award at the 2019
programme encompassing our efforts in biodiversity and nature International Tunnelling and Underground Space Association (ITA)
conservation and preservation, which are crucial in creating Tunnelling Awards in Florida, and received recognition by the
wildlife corridors to mitigate human-animal conflict while British Tunnelling Society in the category of Innovation in Tunnel
protecting endangered wildlife species. An arboretum Excavation 2019 Award, in New Civil Engineering Tunnelling
was established by drawing on the native knowledge of Festival. We also received the coveted Sword of Honour from
Orang Asli, or indigenous people, and the scientific research of the British Safety Council last year for upholding safety and
arborists to cultivate plant and tree species that suit the habitat, health at the workplace for the KVMRT Putrajaya Line project.
and where appropriate we revive endangered species or reintroduce
native species. These trees will later be replanted at our future Gamuda is actively involved in circular construction, and we
development sites under the Advance Tree Planting initiative. are finalising plans to lower our total greenhouse gas emissions
over the next two decades towards low carbon by 2030 and
We are taking strong guardianship of the Paya Indah Discovery carbon neutral by 2040 across all our operations. Corporate
Wetlands to conserve the biodiversity of this natural sanctuary decisions will then be aligned with these long-term goals.
and raise public awareness about the importance of wetlands,
which are the habitats to an estimated 90% of the living species We are aware of the urgency to protect the planet against the
in the world. triple crisis of climate change, biodiversity loss, and unsustainable
exploitation of natural resources. The consequences of failing
As a leading engineering and construction company, Gamuda to do so collectively are dire. The evidence is clear that we
continues to play a prominent role in social enhancement with must tackle this with greater resolve and urgency while elevating
appropriate training, development, and exposure to our employees, sustainability risk management to the top of our corporate
supply chain, stakeholders, and community. We constantly agenda. There are four key material matters we are focused
upskill our workforce and contractors to match the increasingly on – economic performance, climate action and biodiversity,
sophisticated infrastructure projects that we embark on, and innovation, and safety and health. In better managing a pandemic
we often set up specialised training centres that cater to the crisis, we have set up an internal polymerase chain reaction
niche requirements of our undertakings. From the Gamuda (PCR) testing lab to support our larger objective of ensuring
Plant Operator School, which raises the competency of machine business continuity.
plant operators, to the Tunnelling Training Academy and BIM
Academy, we have partnered with global experts from Siemens, We have now formalised our value creation strategy in the
Bosch to Herrenknecht to equip our workers and other industry sustainability framework, anchored on three key pillars – Our
participants in Malaysia with the best know-how in infrastructure People and Community; Planning, Design and Construction as
building. With a great emphasis on safety, we have been leading well as Environmental and Biodiversity Stewardship. This is the
the Malaysian construction industry standards with the result of our learnings throughout the journey of sustainability
establishment of the KVMRT Safety Training Centre. reporting, which has come to the fourth year in 2020.

Gamuda’s strengths lie in innovation. This is reflective in This year, we share our annual updates on what we have done
Gamuda’s cutting-edge projects, the latest of which will be the and what we plan to do to enhance sustainability in our business
upcoming Penang South Islands. It is not just a low carbon based on the global frameworks and goals such as the Global
development; the smart industrial park will be powered by Reporting Initiative and the United Nations Sustainable
renewable energy, and we are incorporating low carbon mobility Development Goals. This report provides our stakeholders with
into the masterplan to encourage the usage of more bicycles a summary of our programmes and efforts in safeguarding a
and water transport instead of fueled-vehicles. sustainable environment for future generations.

60 04 Sustainability
 ANNUAL REPORT 2020

About
This Report

REPORTING APPROACH REPORTING PERIOD

Gamuda Sustainability Report 2020 focuses on the sustainability This report refers to the financial year period from 1 August
strategy, current performance and future plans of the Group, 2019 to 31 July 2020 (unless indicated otherwise).
namely on the material Economic, Environmental, Social and
Governance aspects of business operations.

This report has been prepared in reference to the Global

SCOPE AND BOUNDARIES
Reporting Initiative (GRI) Standards and aligns to the statutory
listing requirements prescribed by Bursa Malaysia Securities This report covers all our main activities, and key business
Berhad (Bursa Malaysia). operations in Malaysia, mainly engineering and construction,
and property division for which we have direct managerial
The reporting principles covered in this report include: control, unless otherwise specified. Accordingly, the following
entities have been excluded:
Stakeholder Inclusiveness: capturing our stakeholder’s • Our joint ventures and associate companies
expectations and concerns; • Our water and expressway concessions

Sustainability Context: presenting our performance in the

wider context of sustainability;
INDEPENDENT ASSURANCE
Materiality: identifying and prioritising the key sustainability We have obtained assurance for selected GRI Standard material
issues that our Group encounters; matters for our current report. We acknowledge the credibility
and importance of independent verification and have hereby
Completeness: reporting all sustainability topics that are obtained assurance on selected key sustainability indicators.
relevant to our Group, and those that influence our stakeholders. Kindly refer to page 127 for the Limited Assurance Statement

The Materials established as the reporting perimeters in this

report are as stated below:

GRI 201 Economic Performance 2016

REFERENCES
GRI 304 Biodiversity 2016 References to ‘Gamuda’, ‘the Company’, ‘the Organisation’,
‘the Group’ and ‘we’ refer to Gamuda.
GRI 305 Emissions 2016

GRI 401 Employment 2016

FEEDBACK
GRI 403 Occupational Health and Safety 2016
We value our stakeholders’ feedback to continuously improve
GRI 404 Training and Education 2016 our reporting and sustainability practices. You are welcomed
to contact us at:
GRI 405 Diversity and Equal Opportunity 2016 gcc@gamuda.com.my

GRI 413 Local Communities 2016 +603 7491 8288

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Sustainability Report

MEMBERSHIP

Master Builders Association Malaysia (MBAM) The Australian Airports Association (AAA)
Women in Rail (WIR) Malaysia Construction Contractors Association (CCA) Western Australia
Real Estate & Housing Developers’ Association (REHDA) Civil Contractors Federation (CCF)
Malaysian Investment Development Authority (MIDA) Committee for Economic Development of Australia (CEDA)
Kuala Lumpur Business Club (KLBC) Tunnelling and Underground Construction Society Singapore
American Malaysian Chamber of Commerce (AMCHAM) (TUCSS)

Roads Australia (RA) Taiwan Regional Engineering Contractors Association

Infrastructure Sustainability Council of Australia (ISCA) New South Wales Indigenous Chamber of Commerce (NSWICC)

MANAGING OUR SUPPLY CHAIN

Our supply chain has always been a pivotal part of business, SAP S/4HANA also enables us to use digital tools to promote
especially in creating value beyond the Group. We strive to process automation; better customer engagement, using analytics
strengthen the relationship with our suppliers with continuous to grow sales; and improving productivity and efficient use of
engagements and instilling good business ethics. Our efforts raw materials and resources. This encourages less wastage
are centred on ensuring fair and transparent procurement and advocates sustainability throughout our operations.
practices through diligent evaluation.
Gamuda’s principles of good procurement practices are governed
In the last financial year, we have gone up a notch with our by the Group Procurement Policy.
digital procurement platform, SAP Ariba e-procurement.
The platform allows us to better manage the procurement Following pre-assessment, regular performance monitoring is
processes from call for tender process to award. The system conducted throughout the working period upon the awarding
is auditable and ensures that the procurement life cycle is of contracts to ensure all supply chains adhere to the necessary
more transparent and accurate. requirements that have been outlined and uphold their reputation
and credentials beyond just product and service quality.
During the Movement Control Order (MCO) when we were
working remotely, it became apparent that we had to rethink As part of our process to influence sustainability further into
our approach to business continuity, system availability, our supply chain, we are revising our evaluation criteria for
accessibility, resilience and security. Hence, we invested in vendor selection to have more sustainability-related requirements
SAP S/4HANA, a new generation cloud-based enterprise resource such as biodiversity, environmental management system and
planning (ERP) platform that will provide the foundation for the sustainability policies. In line with our efforts to create sustainable
Group to current processes and build future business capabilities. cities for the communities, we will be evaluating suppliers on
their experience in sustainable construction such as green
SAP S/4HANA is consistent with our move to become an agile buildings, BIM technology and smart cities for relevant projects
organisation in responding to fast-changing market. Teams are moving forward.
built around end-to-end accountability, where accountability is
driven down the leadership chain. This is coupled with ERP Our procurement strategy will focus on building the awareness
making timely, accurate data and analysis available for informed on sustainability throughout the supply chain and forming strong
decision-making, and to identify opportunities for innovation alliances among vendors to better adopt sustainable construction.
and cost reduction. As a Group, we want to influence the industry especially our
supply chain to better embrace sustainability in the near future.

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 ANNUAL REPORT 2020

Sustainability
Achievements
EdgeProp Malaysia’s Best Managed and FIABCI World Prix d’Excellence Awards 2020 Malaysia Landscape Architecture Awards
Sustainable Property Awards 2020 Master Plan Category (World Gold Award) 2020
• ILAM Malaysia’s Sustainable Landscape for Gamuda City Batu Patong Kelabit Eco Lodge – Green
Award (Gold) for Horizon Hills Initiative Award (Excellence)
This award recognises the project that best
• Building a Sustainable Development Award embodies excellence in all the real estate This award recognises programmes, events,
(Winner) for Gamuda Land disciplines involved in its creation. It illustrates campaigns or landscape architecture projects
concretely the FIABCI ideal of ‘providing that contribute towards the enhancement of
These awards recognise developers and projects
society with the optimal solution to its property city greenery and community well-being.
that are designed, built and maintained
needs’. Some of the key criteria include
for sustainable and best-in-class property
Architecture and Design, Environmental Impact,
management.
and Community Benefits.

Malaysia Technology Excellence Awards PropertyGuru Asia Property Awards 2020 StarProperty.my Awards 2020
(MTEA) 2020 Special recognition for ESG, Sustainable The Earth Conscious Award – Best Sustainable
Winner of Augmented & Virtual Reality – Design, Sustainable Construction and Building Development (Excellence) for Gamuda Cove
Engineering for BIMAR app Communities
This award goes to the development that has
This award recognises and honours enterprises This award recognises real estate developers sustainability in mind. The winning project
that lead the charge in developing ground- who are relentless in their pursuit to be socially showcases environment-friendly elements in its
breaking projects, digital services, reimagined and environmentally responsible in their day-to- planning, design and construction processes.
strategies and technological initiatives day processes. Beyond that, the development encourages
environmental sustainability as a way of life.

British Safety Council 2019 British Safety Council 2019 British Safety Council 2019
Sword of Honour Award for KVMRT (Sungai International Safety Award Best in Country International Safety Award (with Distinction)
Buloh-Serdang-Putrajaya Line) Award for MMC Gamuda for KVMRT (Sungai Buloh-Serdang-Putrajaya
Line) Underground
This award is bestowed to companies that have This award recognises overall ‘best in class’
demonstrated exemplary management of health, submissions based on submissions from the This award recognises organisations from around
safety and environmental risks, with a five-star same country of any industry. the world which has shown a true dedication
rating and a score of at least 92% in previous to keeping their workers and workplaces safe.
OSH audit.

British Safety Council 2019 EdgeProp Malaysia’s Best Managed Property RISM Excellence Awards 2019
International Safety Award (Sector Awards Awards 2019 Contribution Towards Sustainability in
under the Construction and Property Activities ILAM Malaysia’s Sustainable Landscape Award Construction for Gamuda Berhad
Category) for MMC Gamuda (Silver) for Valencia
This award recognises concerted efforts in
This award recognises overall ‘best in class’ This award recognises projects and spaces that ensuring the socio-economic and environmental
submissions to the International Safety Awards, are designed, built and maintained based on viability of the development by creating liveable
by industry sector. sustainability criteria such as ecological and communities and delivering value through
environmental values, community-oriented innovation for greater environmental, economic
planning and design besides aesthetics and and social impact.
creativity.

StarProperty.my Awards, 2019 Technical Product/Equipment Innovation 2019

Best Health and Wellness Development (Excellence), The Long Life Innovation in Tunnel Excavation 2019
Award 2019 for Horizon Hills
Winners are recognised by International Tunnelling and Underground
This award recognises the development with comprehensive health, Space Association and leading British Tunnelling Society New Civil Engineer
fitness and rejuvenation facilities. The project is dedicated to providing (NCE)  for the most ground-breaking innovation and outstanding projects
wellness living and is designed with a holistic approach to provide the in tunnelling and underground space use.
residents with opportunities for a healthy lifestyle.

Forbes – The World’s Best Employers 2020

1 ISO 9001: 2015
The only Southeast Asia-based company to be listed onto the Top 50
2 ISO 14001: 2015 The final list is composed of 750 multinational and large corporations headquartered in 45 countries based on
3 ISO 45001: 2018 employees feedback on the company’s response to the COVID-19 pandemic, image, economic footprint, talent
development, gender equality, and social responsibility.

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Sustainability Report

Key
Highlights
ECONOMIC ENVIRONMENT

• Gamuda Parks Arboretum set

up to introduce and regenerate
plant or tree species that suit the
• Sustainable Building habitat.
Development • Tap on the native knowledge of
• BIMAR,
The Earth Conscious Award. indigenous people and
an Augmented Reality professional studies by arborists
application was developed to • Best-in-Class Property to cultivate species in the living-
allow real-world visualisation Management tree museum.
of 3D building designs via ILAM Malaysia’s Sustainable Landscape
mobile device during site Award.
inspections. Guardianship of Paya Indah
Recognised with the • The Responsible Developer Discovery Wetlands, a sanctuary
Malaysia Technology EdgeProp Malaysia’s Best Managed for 244 bird species, 12 mammals
Excellence Award 2020. and Sustainable Property Awards 2020. and 19 reptiles; about 90% of living
species in the world live around
• Autonomous • Best Property Development wetlands.
Tunnel Boring Machine Putra Brand Award 2019.
uses Artificial Intelligence
Control Algorithms to operate Participating in the IUCN Red
TBMs with autonomous List Species Conservation
control. Winner of the since 2018.
International Tunnelling
and Underground Space • Top 84 Council Overall
Association in Miami & Excellence in Upholding Health 26 flora and
Innovation in Tunnel and Safety at the Work Place 36 fauna species identified
Excavation 2019 in and Acing a Comprehensive under the IUCN Red List.
London. Safety Audit
Sword of Honour 2019, International
Safety Awards 2019 Distinction and
Five Star Occupational Health and >5% replanted with
Safety Audit 2018. 14 endangered tree species.

• The First Malaysian-based

company to achieve Advanced tree planting
accreditation 5,975 native species
from the Office of the Federal Safety planted.
Commissioner, the accreditation of
Federal Level for work safety and
99% health in the Australian construction
Local Malaysian sector.
supplier and vendors. Tree Preservation Survey
• Lendlease Safety Award Tree planting, interactive nature
Completing TRX Residences Plot 1C board with QR code application, tree
and achieving 450,000 hours tagging and topsoil harvesting.
LTI-Free.

64 04 Sustainability
 ANNUAL REPORT 2020

SOCIAL

280,000 trees in
Urban Green Reserve
>1,600 acres.
• Since 2017, Enabling Academy
• COVID-19 preparedness: Gamuda has trained 63 candidates in
As much as 35% started our own polymerase chain 7 batches, equipping them with
landscaped area in reaction (PCR) testing lab and is relevant skills for employment.
Gamuda developments. the first private Malaysian
company to do so. • 60% of graduates secured
jobs at partner companies that
Coupled with an in-house ambulance share our vision for inclusive,
• The Plate to Plant and testing at all our construction equitable, and sustainable
Campaign reduces and sites, Gamuda is among the most growth.
repurposes food waste well-equipped local private
generated throughout companies that is prepared in • Gamuda is the first private
Gamuda’s offices and managing this pandemic crisis with company to operate such
developments. close collaboration with the Ministry of Employment Transition
• Food-composting machines Health. Programme in Malaysia.
collects up to 100kg of food
waste daily at each Gamuda • Produced Malaysia’s 1st
sites, which are processed into
Employment Transition
organic compost for landscapes
Programme Trainer’s
in Gamuda developments.
Manual as a resource for
special education teachers,
vocational trainers and job
• Developing the workforce and supply
coaches for people with autism
chain through customised training
and other disabilities.
programmes such as Gamuda Plant
Penang’s Inaugural Operator School, Tunnelling Training
Climate Action Week 2019 Academy and BIM Academy.
Riverside Clean-up Programme
175kg of trash was collected. World-class trainings are designed in
collaboration with global brands
including Siemens, Bosch and
• Gamuda contributed a total of
Herrenknecht.
RM4 million to the annual
>7,700kg of fabric
Star Golden Hearts Award
waste was collected
since 2016, providing a platform
and repurposed
for humanitarian works
from Menara Gamuda, expansion, recognition and
twentyfive.7, Jade Hills,
English Language Unit (ELU)
to enhance the language promoting the act of kindness
Kundang Estates, HighPark
proficiency among employees. and altruism in the society.
Suites and Gamuda Cove.
1st construction company in
• Four winners have since
Malaysia to receive the 2019 received a sum channelling to
Monthly Recycling Innovation in Assessment Award
Drive with Tzu Chi the social enterprises they
recognised by the British Council. champion that benefit their
Foundation.
communities.

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Sustainability Report

Value Creation Strategy

We have enhanced our value creation strategy with the sustainability framework – “Build Right. For Life.” – that blueprints a
detailed roadmap to help us achieve sustainable growth while delivering our purpose. As a builder, developer and
operator, we are guided to create diverse solutions benefiting the planet, people and Gamuda’s ecosystem of companies and
stakeholders.

INPUTS ESG INTEGRATION

Financial Capital
We create long-term value for our clients,
Build sustainable business revenue

12.6
shareholders, business partners and employees.
Underpinned by a managerial culture that RM billion
and profitability while conserving
combines prudent financial management and the environment and improving
innovative mindset, we have a business model that Capital Employed communities.
generates virtuous growth. We share the benefits
of our performance for solid shareholder return.

Organisation & Human Capital Build a forward-looking organisation

Under the pack of trust that binds Gamuda’s all- • 4,284 employees (in the Group). that appreciates and invests in our
round performance is our capable and dedicated • Remodeled the Centralised Labour Quarters, conducted people’s professional development
employees. We invested in the human capital testing updated health policies, intensified cleaning while ensuring their well-being.
development cycle and have adopted a stronger and disinfection efforts, employee training and Influence the supply chain towards
framework so that our human capital is further procedures in response to COVID-19. adopting ESG and support the local
enhanced for continuous effective contribution while
marketplace.
aligning to integrity and transparency practices.

Manufactured Capital • 16 successful tunnel breakthroughs for MRT Putrajaya

As a builder, developer and operator, we play a Line.
key role in the transformation of cities and • Innovation of the Autonomous TBM (A-TBM), winning
regions. We endeavour to build a more sustainable the Technical Product/Equipment Innovation of the
Year award at the 2019 International Tunnelling and Build quality infrastructures and
world and leverage on our role as a private-
Underground Space Association (ITA). developments, with green and
sector partner working with the public interest
and climate resilience in mind. By applying our • Sword of Honour 2019, International Safety Award innovative products while creating
core competencies, we invest in innovations and Distinction and Five Star Occupational Health and opportunities for sustained value.
engage our network towards meaningful Safety Audit.
contributions to the UN SDGs. • Average 58 percent (Scope 1), 96 percent (Scope 2)
and 55 percent (Scope 3) lesser GHG emissions using
digital industrialised building systems (IBS) construction.

Social & Relationship Capital • Since 1996, Yayasan Gamuda has invested RM44.7 million
We integrate social responsibility issues into the and awarded 444 scholarships.
Group’s strategy. We value inclusive performance • More than RM4 million spent since 2016 to support
by being a responsible employer, business partner the Star Golden Hearts Award and Gamuda Inspiration
and community member. Hence, we place our Award on their worthy cause to ensure continuous
Build valued relationships with
stakeholders’ best interest as part of our decision progress in the communities.
societies towards integrated
making process. • Trained 63 adults with autism for sustainable
employment. partnerships and greater livability.
• Trained 1,000 Tunnel Training Academy graduates.
• Keeping the indigenous community in Bukit Cheeding,
Malaysia safe during the COVID-19 pandemic with
donations of face masks and hand sanitisers.

Natural Capital
We are committed towards a circular economy
to conserve and recover natural resources. The • 280,000 trees planted as part of Urban Green Reserve,
implementation of our business lines takes into covering more than 1,600 acres. Build developments that meet the
the account of our stakeholders to reduce carbon • Collaborated with the Department of Wildlife and needs of the present without
footprint across the value chain with forward- National Parks Peninsular Malaysia (Perhilitan) in compromising the natural resources
looking analysis and solutions for carbon neutrality maintaining the Paya Indah Discovery Wetlands. and ability for future generations to
and improvement in eco-efficiency performance. • Gamuda Group Sustainability Policy.
appreciate it.
We apply the ‘avoid-reduce-offset’ principle to • ISO 14001:2015 Environmental Management System.
our projects. We ensure integration of nature with
our design aspirations and products.

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 ANNUAL REPORT 2020

The Gamuda value creation approach encapsulates and integrates the 17 relevant United Nations Sustainable Development Goals
(UN SDGs) for business and financial aspects of ESG performance. We align the five capitals with performance, value creation
and specific standards. In recognising the COVID-19 pandemic that has brought the world to unchartered and challenging times,
we continue to engage our valued stakeholders closely to help support the business value chain and maintain key priorities
such as our employees’ well-being and keeping the worksites safe.

VISION AND STRATEGY VALUE CREATION VALUE SHARED WITH STAKEHOLDERS

VISION
ENGINEERING AND CONSTRUCTION
We aim to lead the region in innovative
breakthrough solutions for large-scale public • Continue to push ourselves for new engineering Revenue Dividend CORE PBT

6.8 733
per share
infrastructure and property development. innovations by accelerating digitalisation efforts RM RM
MISSION
in construction and project management.
• Upskill and reskill our workforce to use digital
billion 6
sen
million
We reliably deliver innovative world-class tools, mobile devices and automation at the
infrastructure and premier lifestyle properties for workplace.
our customers through our core businesses in
• Constantly streamline the critical processes
infrastructure development and construction,
operation of infrastructure facilities and property
that make up our value streams. 3.62%
development. • Enhance safety and health awareness and of employee shareholders for
practices at the workplace. share capital
STRATEGY • Adopt circular construction principles and
inculcating a sustainability approach in all
99%
Our strategy to achieve sustainable growth is
based on our 3C’s approach – Capacity, Capability our activities.
and Competitiveness building. • Build on our technological advancement and spent on local suppliers
innovation in tunnelling, underground
construction and digital manufacturing of
industrialised building systems (IBS).
Capacity Capability
Building through Development through PROPERTY DEVELOPMENT
increased human workforce upskilling,
capital investment and leveraging IT solutions and • Emphasis on getting it right from the beginning
major investments in application of new at the master planning and design stage,
plant and technology engineering and
construction technologies
building in harmony with the land where
nature conservation and biodiversity takes
31%
women in the
43%
women on
place at a meaningful scale. workforce Board
• Take a whole life cycle approach, incorporating
Competitiveness low carbon design and construction, promote
through more effective the use of renewable energy and generate
innovation, improved lower emissions throughout the project’s 1% workforce is
productivity and reliability
lifetime. differently-abled/adults with autism
VALUES • Differentiated and creative placemaking to
catalyse neighbourhood and community
• Take Personal Ownership
• Walk the Talk
development; creating experiences and
identities in our developments to connect
63 Academy
Enabling

• Adopt Open and Honest Communication people to our places. candidates (7 batches) since 2017
• Demonstrate Real Teamwork • Provide smart infrastructure in our developments
• Develop Our People with real-time data collection and monitoring 450,000 man hours completed
for community development and intelligent with no loss time injury
LEADERSHIP COMPETENCIES services. (Gamuda GEO, the first
• Promote smart mobility and last mile Malaysian-based sub-contractor
Lea
ing with ding connectivity to complement road transport. to win the Lendlease Safety
ad e vis
Le eopl ion
p Award for acing the Global
Y
VV B INFRASTRUCTURE CONCESSIONS Minimum Requirement)
SA
US

Take
LE

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We continue to operate our water and highway
INE

Lea ts

ownership
resu

Gamuda Land – Winner of the

PEOP
Leading
change

concessions that have powered the nation and

ding
SS SAVVY

Responsible Developer,
l

Develop our Walk the

people talk provided the Group with steady recurring incomes
over the years. EdgeProp Malaysia’s Best
Demonstrate Adopt Open
Managed and Sustainable
real and Honest
As Malaysia’s largest intra-urban highway Property Award 2020
open

teamwork Communication
Lea nd a

concessionaires, we have helped spur the growth

SE
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in g
din nd

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us adin
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S AV of our nation by constructing and operating some

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ith
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xib
ilit
y Leading with projects spanning railways, highways, expressways, landscape area in Gamuda
confidence dams, water and sewerage treatment plants. developments

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Sustainability Report

Sustainability Risks and

Opportunities
Material matters in Gamuda Materiality Matrix have an impact on our ability to create long-term value. These matters influence
the Group’s management, which steers the execution of our strategy. We identify matters with risks and opportunities as part
of the Risk Management Framework and our Sustainability Framework – Build Right. For Life. as guidance in providing solutions
for sustainable urbanisation and to reduce ESG-related risks. This approach leads the performance in key focus areas in the

Gamuda High
Sustainability Priority Sustainable
Framework Material Development Relevance Where Do We See Strategic
Pillars Matters Goals and Risk Opportunities Response

• Pillar 1 Economic A large part of the The Group gives high-level • Employ digital platforms for
Our People, Performance Group’s financial and attention to economic agile transformation across
Our order book performance-related risks, which our lines of business.
Community development is are reviewed to formulate • Stimulate organisational agility
subject to risks that improved business strategies by reskilling and upskilling to
• Pillar 2 are market and and responses for pre-emptive higher level all-rounder
Design, Government driven, actions. This includes strategic competencies.
Planning and intense competitive investments on acquisitions and
Construction landscapes, evolving disposals that could have a • Focus on the 3Cs – Capacity,
customer demands, material impact on the Group’s Capability, and Competitiveness.
• Pillar 3 disruptive technology share value. • Adopt targeted strategies to
Environmental and external develop and retain talent, and
and implications of Priority is focused on margins achieve diversity.
Biodiversity geopolitical rather than business volume as
Stewardship advances. part of the Group’s disciplined
risk management process. The
Key Risks common objective across all the
• Market and Group entities is to extend our
competition risk presence in high value-added
• Financial risk segments such as smart
• Operational risk industrial parks, to strengthen
internal synergies for targeted
growth in the transport
infrastructure projects, and
accelerate international growth.

• Pillar 2 Climate Climate change Builders play an influential role Getting the right mix from the
Design, Action and poses increasingly in shaping the transition to a low beginning at the integrated
Planning and Biodiversity cascading threats carbon economy that is crucial master planning and design
Construction for ecosystems, to lessen climate change risks. stage, building in harmony with
human health, and This in turn brings new surroundings.
• Pillar 3 the global economy. opportunities and business
Environmental This is in addition to growth while conserving most of Gamuda Parks to promote
and the construction our natural resources. biodiversity conservation,
Biodiversity sector risk as it is enhancement and the
Stewardship heavily reliant on Better and more flexible preservation of native species.
natural resources adaptation strategies, policies,
for its operations and measures can be put in Gamuda Parks Arboretum where
and sustained place to reduce projected arborists can congregate under
growth. climate extremes throughout the one umbrella with the aim to
project life-cycle analysis. This preserve and revitalise plants and
Key Risks includes increasing green spaces trees within urban settings and to
• Financial risk for social and environmental educate people to care and
• Operational risk integration in projects, adopting commune with nature.
• Reputational risk biodiversity management, and
• Zoonotic-pandemic carbon offset programmes for Stewardship of the Paya Indah
related risk ecological mitigation, protection, Discovery Wetlands with the
and regeneration. Selangor State Government will
further bolster our efforts to
educate the public on climate
action, biodiversity conservation
and coexisting with nature.

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high priority material matters, aligned to the materiality within the key elements of integrated reporting and guidelines by Bursa
Malaysia and Global Reporting Initiative (GRI). We undertake well-considered risks to optimise business returns while considering
the holistic impact on corporate sustainability.

Gamuda High
Sustainability Priority Sustainable
Framework Material Development Relevance Where Do We See Strategic
Pillars Matters Goals and Risk Opportunities Response

• Pillar 2 Innovation Delay for advancement Double down on our strengths Digitalisation is key to
Design, in innovation impedes with differentiated planning and ensure our continued
Planning and growth into new technology-enabled project relevance and expansion of
Construction products and areas execution and delivery. our business. It enables us
including challenges to to be agile in responding to
attract and retain As an innovative leader in some changes in our operating
talents. Services and fronts, we continue to promote environment taking into
products of standard a culture of innovation, consideration the economic,
business models may cultivating a data driven mindset environmental and social
risk obsolescence if with improvements in data changes in a built setting.
the Group is not literacy and digital dexterity. These shifts provide
well-equipped with the opportunities for the Group
changing skillsets Modernise our digital platforms on the development of
from the advent of and construction technology to eco-efficient solutions that
disruptive technology streamline and power our are central to the Group’s
and market innovators. current and future business businesses focused on
capabilities. forward-looking issues for
Key Risks competitive advantage.
• Technological and Focus on data as a corporate
cyber risk asset.
• Financial risk
• Operational risk
• Reputational risk

• Pillar 1 Safety and Maintaining a high • Partner with building industry Gamuda is committed to
Our People, Health level of safety and advocates, utilise automation provide a safe, healthy, and
Our health standards is of and robotic construction to conducive environment for
Community paramount importance accelerate the adoption of its employees, workers, and
across the Group, prefabricated products across communities where we have
particularly at the the industry and elevate the a business presence. The
construction sites supply chain for improved Group clinched the Sword of
centred around busy quality, safety and Honour 2019, International
urban areas where the productivity. Safety Award Distinction,
risks are greatest. • Institutionalise and embed and Five Star Occupational
the experience from the Health and Safety Audit.
Key Risks KVMRT Safety Passport
• Financial risk Training Programmes across In Australia, Gamuda
• Operational risk the organisation. became the first Malaysian-
• Reputational risk based company to achieve
• Gamuda Plant Operator accreditation from the Office
School (GPOS) that has been of the Federal Safety
running since 1997 to provide Commissioner and pre-
trained heavy equipment and qualification to work with
crane operators for the Transport for New South
construction industry. Wales roadworks level R5,
• Tunnelling Training Academy bridgeworks level B4, and
(TTA) and Construction financial level F150+
Training Centre (CTC) to (unlimited).
develop higher skilled
workforce, enhance
construction standards and
uplift safety at the worksites.

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Sustainability
Governance and Framework
Gamuda as a company that has experience and presence The Board of Directors (BOD) has general oversight of the
globally, recognise the responsibilities we have in delivering Group’s sustainability strategy and performance. The BOD
not only quality but ethical and valued services and products. reviews the progress and sets the aspirations on sustainability
We continue to strive in practising and implementing sound matters. The senior management that is led by the Group
corporate governance practising in all our business activities. Managing Director, oversees the sustainability matters for the
We ensure the governance aspects are well aligned to both Group that include setting the direction, targets and driving the
local and global requirements, especially governance expectations Group’s objectives on sustainability. Working alongside, the
of the country we have businesses with. Chief Sustainability Officer develops ongoing strategies to
operationalise our sustainability programmes, monitors and
In Malaysia, our core business governance mirrors the Malaysian advises the step progress to support the Group’s sustainability
Code on Corporate Governance (MCCG) and adherence to related goals.
industrial best practices. The Group is committed to instill good
governance through an extensive system of monitoring, meaningful The Sustainability Steering Committee (SSC) comprises the
policies, standard processes, training and effective communications. leads of businesses and sustainability matters (e.g. Biodiversity
and Occupational Safety and Health). Together, SSC is responsible
We govern our sustainability matters (Economic, Environment for managing all related information and performs assessments
and Social) through a comprehensive governance structure that on sustainability related programmes.
is strongly held by risk and business representation. It sees
an integrated collaboration by the Board of Directors, Senior The Sustainability Working Council (SWC) is responsible for
Management, Chief Sustainability Officer, Business Leads and monitoring all related performance data and performing
Business Representatives. assessments on sustainability related programmes. The SWC
meets on a monthly basis while SSC, quarterly to discuss on
The risk committee acts independently to ensure long-term the Group’s performances and plans. The SWC members act
sustainability aspects are compliant with the sustainability as sustainability ambassadors to promote sustainability within
principles. This all-inclusive governance approach eases our the Group.
process in identifying regulatory issues and risks, preparing
risk mitigation strategies as well as evaluating gap between
corporate governance standards and corporate governance
practices within the company.

Gamuda Sustainability Governance Structure

Board of Directors

Risk Management
Committee
Senior Management
Chaired by Group Managing Director

Chief Sustainability Officer

Sustainability Steering Committee

Sustainability Working Council

For further information on our corporate governance and risk management, kindly refer to:
• Corporate Governance – pages 132 to 151
• Integrity and Governance Unit (Anti-Bribery and Corruption Policy, Code of Business Ethics and Whistleblowing) – pages 150 to 151 or
https://gamuda.com.my/for-investors/corporate-governance/

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Gamuda Group Sustainability Framework

OUR SUSTAINABILITY BLUEPRINT

VISION MISSION STRATEGY

We aim to lead the region in innovative We reliably deliver innovative world- To achieve sustainable growth through
breakthrough solutions for large scale class infrastructure and premier our 3C’s approach – Capacity, Capability
public infrastructure and property lifestyle properties for our customers and Competitiveness.
development. through our core businesses in
infrastructure development and
construction, operation of infrastructure
facilities and property development.

OUR PILLARS

Pillar 1 Pillar 2 Pillar 3

Our People and Design, Planning and Environmental and
Our Community Construction Biodiversity Stewardship

OUR FOCUS

GOVERNANCE

Economic Environment Social

• Economic Performance • Climate Action • Safety and Health

• Innovation • Biodiversity • Employee Management
• Supply Chain Management • Effluents and Waste • Customer Satisfaction
• Governance • Water Management • Stakeholder and Community
• Indirect Economic Impacts • Materials Relations
• Marketing and Labelling • Land Remediation, Contamination • Customer Privacy
or Degradation

OUR GLOBAL ALIGNMENT

Global Reporting Initiative (GRI)

OUR APPROACH

Adopt Open
Our Values Take Personal Demonstrate Real Develop Our
Walk the Talk and Honest
Ownership Teamwork People
Communication

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Stakeholder
Engagement
Our stakeholders are an integral part of our business, thus understanding and addressing their expectations is key towards
further strengthening the relationship. The involvement of our key stakeholders is essential to our sustainability journey,
particularly in identifying areas for improvements and defining the expectations on our sustainability areas.

We have nurtured a good relationship with our stakeholders by emphasising and prioritising the people, product quality,
personalised services, social impact, economic performance and our diligence in complying with relevant laws and regulations.

The table showcased below has been revised as per data we have collated from our engagements with stakeholders throughout
FY2020.

Addressed by
Material
Frequency of Sustainability
Stakeholders Type of Engagement Engagement Area of Interest Outcomes Matters

Customers • Social media • Weekly • Product quality • Understand the • Customer

• Newsletter • Quarterly • Customer service Group’s aspiration Satisfaction
• Circulars and email • As needed and experience and current policies • Customer
• SnagR/FieldView • As needed • Product/services on sustainability, Privacy
• Gamuda Land mobile • Ongoing • Safety and health especially on • Marketing and
application • Smart and delivering quality Labelling
• Customer portal • Ongoing sustainable cities product/services • Stakeholder and
• Events and campaigns • Ongoing Community
• Loyalty programme • Ongoing Relations

Employees • Town hall • As needed • Company direction • Good understanding • Safety and
• Meetings and performance of the Group’s Health
• SHE committee meetings • Career development sustainability • Employee
• Trainings and workshops and training direction and efforts, Management
• Focus group discussions opportunities that include updated • Governance
• Surveys • Workplace safety and policies and plans. • Economic
• Internal communications health • Being part of Performance
• Newsletter • Well-being of management’s
• Workplace by Facebook employees forward-looking
• Effective ideation process.
communication
between employees
• Fair and competitive
remuneration
practices
• Work-life balance
• Climate action

Suppliers and • E-procurement system • Ongoing • Transparency in • Improve awareness • Supply Chain
Contractors • Supplier training • As needed procurement on Group’s Management
programmes processes sustainability • Governance
• Supplier evaluation • Annual/ • Knowledge sharing direction and
• Email Biennial and capacity building commitment while
• As needed • Implementation of understanding the
e-Procurement (SAP policies, culture and
Ariba and values
BuildSpace)

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Addressed by
Material
Frequency of Sustainability
Stakeholders Type of Engagement Engagement Area of Interest Outcomes Matters

Local • Community development • Ongoing • Community • Strengthening the • Stakeholder and

Community programmes development and relationship with Community
• Info centres for MRT support communities where Relations
Putrajaya Line • Quality, safety, health businesses are • Safety and
• Company website and and environment present while making Health
social media (QSHE) a meaningful impact • Biodiversity
• Collaboration with • Communication on on the societies • Governance
partners for community our development
development plans and projects
• Events and roadshows

Shareholders • In-house, one-to-one and • Continuous • Operational and • Strengthening • Economic

and Investors small group meetings financial performance relationships with Performance
with stakeholders • Shareholder returns shareholders and • Governance
• Annual General Meeting • Annually • Business strategy, investors, and
(AGM) risk management improve corporate
• Extraordinary General • As needed and corporate credibility
Meeting (EGM) of governance
Shareholders • Sustainability
• Financial results • Quarterly performance
announcements
• Dialogue/teleconference • Continuous
between the Group and
investors
• Non-Deal Roadshows • As needed
• Plan visits/business • Annually
showcase

Regulators • Industry workshops • Ongoing • Regulatory • Ensure strong • Climate Action

• Meetings and compliance compliance with • Biodiversity
consultations • Improving regulations through • Safety and
• Reporting construction sector regular reporting and Health
• Inspections productivity communication with • Effluents and
• Collaboration and • National Housing regulators Waste
partnerships Policy • Governance
• Events • Climate action • Water
• Smart and Management
sustainable cities • Land
• Community Remediation,
development and Contamination
support and Degradation

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Materiality
MATERIALITY ASSESSMENT Materiality Assessment Process
Evaluation of priority or materiality assessment is a vital part
of our sustainability reporting exercise. The process allows us
to better align our reporting content to various stakeholder
areas of interest while defining our boundaries. Through our
five-step materiality assessment, we are able to conclude the
utmost important areas of interest on sustainability for the Current State
Group. Assessment

The closed loop assessment begins with the Group’s current

state assessment to understand areas of improvement in
comparison to the previous years. We utilise media and subject
matter’s inputs from various experts to identify local and global
sustainability trends that are relevant to Gamuda. We ensure
that perspectives from our internal and external stakeholders
are well accounted via engagements and surveys conducted Local and
throughout the financial year. Global Alignment

Based on the stakeholder engagement exercise, we then conduct

focus group discussion, meetings and interviews with the
management to prioritise the material matters and ensure the
materials remain relevant to Gamuda’s business.

The validation process concludes the material assessment with

agreement from the Board on the finalised Materiality Matrix Stakeholder
and alignment to the Group’s Sustainability Framework. Engagement

We aim to review our Materiality Matrix every year against the

changing business landscape, emerging trends, regulatory
development, as well as insightful stakeholder feedback to
ensure we are responding to the issues that have the greatest
impact on our business and stakeholders.
Management Discussion
(Prioritisation)
MATERIALITY MATRIX
In FY2020, we have identified 17 sustainability matters that are
based on influence on stakeholder assessment and decisions,
and significance of economic, environmental and social impacts
(between medium to high). For FY2020, we have revisited and
reassessed our sustainability matters. Through our internal
material assessment, we concluded to retain all our five (5)
material matters. Our material matters focus mainly on climate Validation
change (climate action and biodiversity) for environment, safety
and health for social, and innovation and economic performance
for economic.

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Our materiality matrix for FY2020 is illustrated below:

High

Economic
Performance
Governance
Influence on Stakeholder Assessment and Decisions

Climate Action
Indirect Economic Impacts (Emissions & Energy
Management)
Innovation

Biodiversity
Safety and Health
Economic/Governance Effluents & Waste
Environmental Water Management

Social

Employee
Materials Customer
Management
Our Top Satisfaction
High Priority
5
Supply Chain
4
Management
3 Land Remediation,
Contamination Stakeholder and
2
or Degradation Community Relations
1
Marketing and Labelling Customer Privacy
1 2 3 4 5
Low High Medium Significance of Economic, Environmental and Social Impacts High

Economic/Governance Environment Social

• Economic Performance • Climate Action • Safety and Health

• Innovation • Biodiversity • Employee Management
• Customer Satisfaction • Effluents and Waste • Marketing and Labelling
• Supply Chain Management • Water Management • Stakeholder and Community
• Governance • Materials Relations
• Indirect Economic Impacts • Land Remediation, Contamination • Customer Privacy
or Degradation

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Supporting UN SDGs
The United Nations Sustainable Development Goals (UN SDGs), also known as the Global Goals, is a universal call to action to
protect the planet and ensure that everyone enjoys peace and prosperity by 2030. Malaysia together with other world leaders
adopted the 2030 Agenda at the United Nations General Assembly in New York on 25 September 2015. This is a global commitment
towards a more sustainable, resilient and inclusive development, with 17 Sustainable Development Goals (SDGs) and 169 targets.
The 2030 Agenda has been shaped by relevant United Nations (UN) agreements and conventions as well as the experiences and
achievements gained through the Millennium Development Goals (MDGs), the global development agenda spanning the period
2000–2015.

SUPPORTING UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

17 1

16 2

15 3

4
14

13 5

6
12

11 7

10 8
9

Gamuda Key Support for SDGs

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We believe our role as a global citizen, we hold the commitment too alongside the nation and global aspirations such as the
UN SDGs. Over the years, we have focussed on three main aspects of sustainability in our “Build Right. For Life.” journey –
promoting innovation, creating sustainable cities and emphasising the environment we build at. This is aligned with UN SDG
Goals #9 (Industry, Innovation and Infrastructure), #11 (Sustainable Cities and Communities) and #13 (Climate Action).

• Enabling Academy • Building a Sustainable Nation • Bandar Botanic • Paya Indah Discovery Wetlands
Refer pages 117 to 118 Refer pages 80 to 81 Refer page 96 Refer page 99

• Gamuda Plant Operator School • Enabling Academy • Gamuda Parks

Refer page 102 Refer pages 117 to 118 Refer pages 97 to 99

• Tunnelling Training Academy

Refer pages 103 and 119

• International Women’s Day • Autonomous TBM • E-waste • Gamuda Parks Biodiversity

Refer page 115 Refer pages 122 to 124 Refer page 95 Strategy
Refer pages 97 to 99
• Building Information Modelling
• Women in Engineering • Food Waste to Compost
Refer page 125 • IUCN Species Conservation
Refer page 116 Refer page 94
Refer page 98
• Drone Surveying
Refer page 121

• Tunnel Boring Machine

Refer page 124

• Tunnelling Innovation
Refer pages 120 to 121

• Gamuda Gardens Solar • Enabling Academy • Gamuda Gardens Solar • Star Golden Hearts Award
Programme Refer pages 117 to 118 Programme Refer page 114
Refer page 95 Refer page 95

• Greenhouse Gases Monitoring

and Reporting
Refer page 88

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Our Sustainability Footprint

A Timeline Feature

1994-1999 2011
2001 Tunnelling Training Academy (TTA)
– Damansara-Puchong
Highway (LDP) • Catalyse capacity building and
Panagarh-Palsit and
– Shah Alam Expressway job preparedness for specialised
Durgapur Expressways
(SAE) tunnelling skills
Connecting communities
– Western Kuala Lumpur outside Malaysia through • The world’s 1st TTA to use
Traffic Dispersal Scheme intra-urban highways tunnel boring machine
(SPRINT) technology
Connecting communities in Refer page 81
Malaysia through our Refer pages 103 and 119
intra-urban highways

Refer page 81

2011
MRT Kajang Line
2002 • Greener integrated connectivity
• The daily ridership is estimated
SMART
to be about 400,000 passengers
• A Climate mitigation – flood
1997 prevention and emission
Refer page 80
Gamuda Plant Operator reduction from traffic
School • The world’s 1st dual-
Malaysia’s only one-stop purpose tunnel
training centre for plant
operators Refer page 80

Refer page 102

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2016
Gamuda IBS 2017
• Promoting local digitalisation Enabling Academy
through new construction Preparing more people with
technology while reducing autism for gainful and sustainable
Greenhouse Gases employment
• For building affordable houses
Refer pages 117 to 118
• Upskilling job for tomorrow
• Opportunity for locals

Refer page 81

2018
Gamuda Parks
2016 • Ensure biodiversity and
Yayasan Gamuda communal space is integrated
Foundation arm that focuses • Promote flora and fauna in
primarily on educational aid, Gamuda developments for
empowering social enterprises and biodiversity conservation
individuals for community
improvement Refer pages 97 to 99

Refer page 126

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Building A Sustainable Nation

How We Have Made Impact

GREENER INTEGRATED CONNECTIVITY:

SMART – A CLIMATE MITIGATION
MASS RAPID TRANSIT

As a leading builder of urban infrastructure, Gamuda is aware of Rail is one of the most efficient and environmentally friendly mode
its responsibility in designing, building and operating structural of public transport. Gamuda is at the forefront of building a greener
elements that are both innovative and sustainable. The Group is city in Kuala Lumpur through its involvement in the construction
fully committed to this mission and has been a pioneer in producing of the Klang Valley Mass Rapid Transit (KVMRT).
infrastructure that not only contributes to improved and more
sustained urban development, but also delivers optimal social, The MRT is a greener and cleaner mode of transportation compared
environmental and economic outcomes by considering the complex to travelling in cars, as the train is estimated to account for
interlinkages between different infrastructure systems and aspects only about six percent of carbon emission per passenger. The total
of sustainability. carbon emission per passenger for a MRT train is accounted at

The 9.7km-long and 13.2m in diameter SMART, or Stormwater 37.5g CO2, compared with 600g CO2 for a car and 330g CO2 for a
Management and Road Tunnel is a showcase of our technological bus. An affordable and efficient public transportation enhances
innovation being the world’s first dual-purpose tunnel serving the mobility for the poor and vulnerable groups, thus creating a more
twin objectives of diverting flood waters and relieving traffic inclusive community. A less congested road also greatly improves
congestion in Kuala Lumpur. SMART has been mitigating stormwater the livability of the city.
flooding since 2007. To put this into perspective, the rehabilitation
costs by the town council for flooding in 1971 amounted to RM36 KVMRT forms part of a modern rail-based network that seamlessly
million, while the 2003 flooding amounted to RM100 million. With integrates with the existing Light Rail Transit (LRT), KL Monorail
SMART, some 30,000 road users are now able to travel safely and Line, Keretapi Tanah Melayu Berhad (KTMB) Komuter, Kuala Lumpur
comfortably every day. International Airport (KLIA) Transit Express Rail Link (ERL), as well
as intracity and intercity bus routes. By providing a reliable and
The project has won praises and accolades, including: affordable public transport system, Malaysia targets to increase
the public transport modal share for Kuala Lumpur to 40 percent
UN Habitat Scroll of Honour Award in 2011 in 2030, from 12 percent in 2009.

CNN listing as one of the world’s Top 10 greatest tunnels The 51km Kajang Line was the first of the three lines of KVMRT
that was opened to the public since 2017, bolstering urban
connectivity. The second line connecting the administrative capital
National Geographic produced a documentary as part of its
of Putrajaya is currently under construction, and is on track for
Megastructure series completion by 2023.

Our Impact Our Impact

World’s 1st dual purpose tunnel Providing Connectivity for 400,000 commuters
• Mitigate flash floods in Kuala Lumpur City Centre (sustainable per day (MRT Kajang/Putrajaya line)
urban design against climate risk) • Providing a green travel alternative by offsetting vehicles on the
• Provide an alternative – reduce traffic congestion and road and reduce congestion indirectly (carbon footprint offset)
shortening travel time (reduce carbon footprint from average • Provide social connectivity – bridging different economic
30,000 daily riders) demographics

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BRIDGING SOCIAL AND ECONOMICAL CONNECTIVITY: PROMOTING LOCAL DIGITALISATION –

THE HIGHWAYS INDUSTRIALISED BUILDING SYSTEM (IBS)

Gamuda recognises that transportation and mobility are central to The Fourth Industrial Revolution (Industry 4.0) ushered in an era
sustainable development, especially for a developing country. The in which the widespread use of digital technology applications such
construction of roads provides a huge multiplier effect on the local as augmented reality and artificial intelligence are seen across all
economy by spurring development along the transportation system, facets of manufacturing. Industry 4.0 is transforming project
thus boosting job opportunities and business activities. Sustainable deliveries in property development in a way that manufactured
transportation also enhances economic growth and improves homes will now become a mainstay.
accessibility through the facilitation of people and goods.
To stay at the forefront of this emerging trend, we have led the
Our flagship highway projects include the 34.5km Shah Alam digital IBS adoption in Malaysia with the nation’s first two plants
Expressway (SAE), which serves as a major inter-urban expressway located in Sepang and Banting respectively. Digital IBS is a powerful
connecting several key industrial and residential areas from Kuala production system to deliver end products that are error-free with
Lumpur, Cheras, Petaling Jaya, Subang Jaya, Shah Alam to Klang, high precision and quality.
terminating at the access road to Westport in Port Klang.

The Damansara-Puchong Highway (LDP), spanning 40km from Sri We have the capacity to build pre-fabricated homes and bathroom
Damansara to Puchong has spurred the growth and businesses pods at our factory, which will be fully tested prior to installation
of several major developments along it, including Kepong, Taman on-site. This digital manufacturing capability creates higher income
Tun Dr Ismail and Bandar Sunway, while opening new growth areas job opportunities in Malaysia.
such as Puchong and Penchala. The 26km SPRINT Highway serves
as a critical spine road network, supporting infrastructure and Gamuda actively supports the Construction Industry Transformation
catalysing growth and development to the west of Kuala Lumpur. Programme (CITP), a national agenda to equip the industry with
highly productive, environmentally sustainable and globally
A joint venture under the Group, Naim Gamuda (NAGA) JV Sdn competitive players, while focusing on safety and quality standards.
Bhd is currently building the Pan Borneo Highway package
(WPC-04), an 89.4km section from Pantu Junction to Batang Skrang We collaborated with the Construction Industry Development Board
in Sarawak. Through its construction of the Pan Borneo Highway, (CIDB) to promote IBS and BIM adoption in the housing industry
which connects the two Borneo states, Gamuda is facilitating a in Malaysia. A strategic partnership was also formed with CIDB’s
sustainable urbanisation in East Malaysia. A UNDP report on subsidiary, Construction Research Institute of Malaysia (CREAM),
Malaysia Inland Waterway Transport System in Sarawak noted that to work together on data sharing and information research to help
the construction of transport networks in Sabah and Sarawak was improve construction productivity in Malaysia. This collaboration
trailing the expansion of the road and rail systems in Peninsular will produce significant benchmarks for future policy making and
Malaysia. The Pan Borneo Highway package (WPC-04) will bolster implementation of schemes in support of Malaysia’s IR 4.0 ambition.
accessibility to basic infrastructure in rural settlements in the two
states and help reduce the urban-rural development gap. Our Impact

Outside Malaysia, Gamuda has completed the colossal Panagarh- Nation’s 1st digital IBS factory
Palsit and Durgapur Expressways in India, and was involved in the
construction of the 42.5km Dukhan Highway in Qatar as part of Produces 55% Targeted to build
Greenhouse Gases Affordable Job
the emirate’s road modernisation initiative ahead of the 2022 FIFA Opportunity
every month* Houses
World Cup.
* In-house comparative study conducted on twentyfive.7 Sales Gallery
(conventional method) and Gamuda Cove Phase 1A (IBS Technology)

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Economic
SUPPORTING THE SDGs

Goal 8 
Promote sustained, inclusive and sustainable economic growth,
full and productive employment and decent work for all
8.1 Promote local businesses and indirectly the local
economy through support on local procurement
8.2 Promote economy generation through development of
projects that are labour-intensive

82 Gamuda Cove, Selangor, Malaysia

04 Sustainability
 The Group ensures the business
operations are aligned with all our
governance aspects. This is essential
to further strengthen the trust and
confidence of our diverse stakeholders.

OUR PLAN
• Align to Government’s policy to acquire products
and services locally first for all our projects and
developments
• No discrimination towards suppliers
• Support small and medium-sized suppliers
• Educate local suppliers on new procurement topics
such as sustainable supply chain and digital procurement
• All major suppliers need to be of ISO 140001 certified
in the future
• Ensure all business operations are aligned with Group’s
governance aspects

“Good buildings come from good people,

and all problems are solved by good design.”
– Stephen Gardiner

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DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED

(GRI 201-1)

WHY IT MATTERS HOW WE APPROACH IT

(GRI 201-1) (GRI 103-1) (GRI 201-1) (GRI 103-2) (GRI 103-3)

Our financial growth is important for us to continue pursuing As a Group, we are constantly striving towards the achievement
our business aspirations especially as a regional physical builder. of our goals and targets in the realm of economic performance
Through positive performance and effective management, our while upholding our commitment to sustainable operations and
Group strives to sustain investments through new business the highest professional standards. The Group ensures the
opportunities and growing operations. Our continuous growth business operations are aligned with all our governance
indirectly promotes stronger contribution to gross domestic aspects. This is essential to further strengthen the trust and
product (GDP) of the countries we operate, while directly confidence of our diverse stakeholders. For further details on
improving local social conditions. our corporate governance aspects, kindly refer to page 132
section of this report.

18% 13%
29%
Value Value
Generated 21% Distributed
57% RM1,205 25% RM1,205
million million
37%

Value Generated Value Distributed

RM683 million RM257 million RM341 million

Net Operating Income To Employees To Providers of Capital
(salaries and other employee costs) (dividend to owners, finance cost, dividends to
RM214 million
non-controlling interest)
Other Income RM161 million
To Governments RM446 million
RM308 million Retained for Future Reinvestment and Growth
(taxation, excluding deferred taxes)
Share of Profits of Associated (depreciation and amortisation, deferred taxes,
Companies and Joint Ventures retained profits)

Our direct economic value distributed to stakeholders in FY2020

Further information on our economic performance can be found in:

• Statement from the Group Managing Director on pages 10 to 18
• Five Years Group Financial Highlights on pages 30 to 31
• Group Segmental Performance on page 32
• Statement of Value Added and Distribution on page 35
• Financial Statements on pages 176 to 351

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LOCAL PROCUREMENT

(GRI 204-1)

WHY IT MATTERS HOW WE APPROACH IT

(GRI 204-1) (GRI 103-1) (GRI 204-1) (GRI 103-2) (GRI 103-3)

As a leading engineering and construction group in Malaysia, We are aligned with the Government’s policy to buy local
Gamuda was responsible in building some of the nation’s most products and services first for all our projects and developments.
important and strategic infrastructure, including the SMART Our priority is to always procure through local suppliers, unless
tunnel, Electrified Double Track Project (Ipoh – Padang Besar) specified otherwise by a client, or when local suppliers are
and the Klang Valley Mass Rapid Transit system. As an industry unable to meet the specified requirements for a certain product
leader and a responsible corporate citizen, we recognise our or service. We are open to all vendors and suppliers to submit
role in spearheading the advancement of the construction sector their proposals without discrimination and in support of small
by maintaining, nurturing and supporting a vibrant local supply and medium-sized suppliers, supplier companies owned by
chain. It is crucial for us to ensure that the spillover effect of women or suppliers that are owned by or recruit workers from
the country’s infrastructure investment properly flows through members of vulnerable, marginalised, and under-represented
to medium and smaller contractors and suppliers down the social groups.
value chain, ultimately achieving the objective of stimulating
the local economy. In order to formalise and increase our local procurement, the
Group has formed partnerships with local suppliers to customise
From the Group’s perspective, sourcing locally results in multiple many parts for the use of digital platforms, thereby reducing
economic benefits. Local procurement contributes to improved the need to import. We continuously engage all of our vendors
risk management as we can secure timely delivery compared and suppliers to better align our expectations on topics such
to overseas shipment. The Group always proactively engages as sustainability and quality. The Group also provides training
its local suppliers and that gives us a tighter control over the for our suppliers and vendors, especially local service providers
product quality, as well as the time of delivery, while the total on newer areas of deliverables to ensure that they are exposed
cost is often cheaper to buy local. This helps us to minimise as the global ones. The most recent training that was conducted
the risk of project delays, cost overrun and ensure quality primarily focused on e-procurement using digitalised platform.
delivery. Local procurement also allows for more accurate We hope to create strong awareness on sustainable supply
budget forecasting and risk mitigation since many variable chain in the upcoming engagements. In extension of that
factors such as foreign exchange rates, tax implications, shipping aspiration, we hope to appoint only ISO 14001 certified suppliers
and fuel surcharges are more predictable compared to overseas as our major supplier by FY2021.
sourcing. Without the need to ship from abroad, we are essentially
registering lower carbon footprint by sourcing locally while All matters related to local sourcing are overseen by the respective
enabling local supply chain growth. procurement heads of the projects, with the Group Procurement
Director leading the group-wide processes for alignment.
Gamuda IBS (Industrialised Building System), an end-to-end
digital IBS solutions provider, sourced more than 90 percent
of its requirements locally. The idea of Gamuda IBS is to mainly OUR PERFORMANCE
serve the local market (Malaysia). The materials sourced are (GRI 204-1)
from local suppliers. Even the factory is managed wholly by
local talents. Gamuda IBS is a service product that promotes It is Gamuda’s common practice to prioritise domestic sourcing
local supply chain while catalysing the local economy. whenever possible, in support of the Malaysian Government’s
buy local first campaign. This is demonstrated through the
99 percent by value being spent on suppliers in Malaysia

99%
Spent on local suppliers
throughout FY2020. In a further breakdown, approximately 75
percent of the total amount spent in that year was for suppliers
that are based in Greater Kuala Lumpur. The concentration of
in FY2020 suppliers on the central region of Peninsular Malaysia reflects
our significant locations of operation where most of our ongoing
•L ocal suppliers refer to companies registered in Malaysia. projects are based, which are mostly centred around Greater
• The percentage include the whole Group procurement value excluding Kuala Lumpur. The proximity gives us greater assurance in
joint ventures and associates (except for MRT Putrajaya Line –
timely delivery of supplies. We will continue striving to maintain
included in the percentage).
• Information for the percentage of spent on local suppliers for at least 95 percent locally sourced product and services for
FY2020 has been assured through Limited Assurance exercise with our future projects as a support for our local supply chain.
Ernst and Young.

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 SUSTAINABILITY
REPORT

Environment
SUPPORTING THE SDGs
Goal 7
Ensure access to affordable, reliable, sustainable and modern energy for all
7.2 Implement and promote renewable energy at townships and
developments
7.3 Implement and promote energy efficient initiatives at all aspects of
design and implementation

Goal 12
Ensure sustainable consumption and production patterns
12.3 Implement food waste to compost and used to nurture land
12.5 Integrate water recycling system, an improved water
management approach through on-site treatment plant

Goal 13
Take urgent action to combat climate change and its impacts
13.2 Promote national carbon reduction targets and policies through
various technological implementation and initiatives such as
conservation and carbon offset programmes
13.3 Educating the younger generation on climate and biodiversity
through the GParks Rangers programmes

Goal 15
Protect, restore and promote sustainable use of terrestrial ecosystems,
sustainably manage forests, combat desertification, and halt and reverse land
degradation and halt biodiversity loss
15.1 Ensure the conservation of flora and fauna especially IUCN Red List
15.2 Promote and educate the conservation of environment
15.9 Integrate ecosystems such as wetlands into local planning and
development processes

Goal 17
Strengthen the means of implementation and revitalise the global
partnership for sustainable development
17.17 Encourage and promote effective public-private partnership for
environmental conservation

86 Paya04Indah
Sustainability
Discovery Wetlands, Selangor, Malaysia
 Biodiversity underpins the provision of clean air,
water and food, and helps mitigate climate change.
It also supports human health and adds value to the
economy by providing jobs in agriculture, industry,
tourism and leisure, and many other sectors via
payment through ecosystem services.

OUR PLAN
• Increase the measuring and reporting scope of our
Greenhouse Gas Emissions
• Implement biodiversity conservation and preservation
through Gamuda Parks
• Arboretum and congregation of arborists for nature
expansion
• Emphasis on biodiversity throughout our construction
life cycle
• Strong guardianship of Paya Indah Discovery Wetlands
• Promote renewable energy at our developments
• Encourage advanced tree planting to ensure new trees
are introduced to environment at our developments
rather than displacing it
• Promote environmental education especially to the
younger generation
• Monitor and study IUCN Red List species

“Right here, right now is where we draw the line.

The world is waking up. And change is coming
whether you like it or not.”
– Greta Thunberg

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EMISSIONS

(GRI 305-1) (GRI 305-2)

WHY IT MATTERS Our Mass Rapid Transit (MRT) projects green initiatives:
(GRI 305-1) (GRI 305-2) (GRI 103-1)
MRT stations are designed with open-sided concept to allow
In 2019, the earth’s surface temperature was almost one Celsius natural lighting and ventilation (less dependency on electricity
degree warmer than the 20th century average. In the last few in the day). It is estimated to reduce energy consumption by
years, global temperature have been consistently among the about 30 percent
hottest on record. The recent exponential change in global
temperature and climate related issues are due to an increase
Trees that were removed during the construction phase are
in human activities and the demand for energy. Climate change
replaced with new landscaping trees with a ratio of 1:2
will not only impact communities but also businesses in the
long run. Thus, we are actively taking steps to lower our carbon
Construction is performed in a modular process, thus reducing
emissions and are open to ideas in providing solutions towards
impacted green space for storage and onsite works
building a low carbon society.

During construction, light emitting diode (LED) and compact

fluorescent lamps are used. Besides that, CCTV that were
HOW WE APPROACH IT
(GRI 305-1) (GRI 305-2) (GRI 103-2) installed at the project sites for security are powered by
solar panels
We acknowledge that we are part of an industry that requires
high energy consumption and has a significant carbon footprint
from our business activities. Thus, understanding our emission OUR PERFORMANCE
sources is vital in order to focus our reduction efforts. In FY2020, (GRI 305-1) (GRI 305-2)
we had conducted various simulation, projection and baseline
studies on our Greenhouse Gases (GHG). We continue fine- As a leading engineering and construction company in Malaysia,
tuning our measurement and monitoring processes to capture Gamuda is committed to contribute to the national agenda of
more scientific information. For example, we had conducted reducing GHG emissions intensity of GDP by 45 percent by 2030
a Group level measurement and monitoring exercise for relative to the emissions intensity of GDP in 2005. Gamuda is
Scope 1 and Scope 2 GHG emissions. committed to catalysing our nation’s pledge towards carbon
reduction through the following key aspects:
Besides evaluating our GHG performance, we practice efficient
energy management for our developments. We adopt building Reduce GHG and pollutant emissions through the development
energy codes and green building rating tools that allow us to of climate change strategy and risk assessment
manage energy consumption in a more efficient manner that
brings about reductions in carbon emissions at various stages Implement improved data quality control to ensure accurate
of the building’s life cycle. One of our priority stages includes GHG emissions data
the designing and planning phase. We strive to incorporate
sustainable design in all our projects. Explore opportunities to participate in GHG partnership
programmes

Enhance existing sustainability governance structure to

enhance integration of climate change agenda into the Group’s
sustainability and corporate strategy

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Gamuda has embarked on its GHG emissions reporting since The exercise included five main sites that cover different aspects
FY2019 and will continue to expand the depth and scope. In of our construction activities: Menara Gamuda representing our
FY2020, we completed a GHG measurement and monitoring headquarters (operational unit), KVMRT Project – Ampang Park
exercise for our Group as part of our plan forward with better Underground Station representing a railway project, twentyfive.7
GHG traceability. The exercise was conducted using the GHG Sales Gallery representing a show unit, Gamuda Walk representing
Protocol Corporate Accounting and Reporting Standard (“GHG a mall and Kota Permai Golf & Country Club representing a
Protocol”) methodology and leveraging on the ENCORD club.
Construction CO2e Measurement Protocol (“ENCORD Protocol”)
which is built on GHG Protocol as a guide for construction
companies.

Total Scope 1 Emissions Emissions Contributed (tonnes CO2e)

9,459.88 KVMRT
Putrajaya Kota
Line twentyfive.7 Permai Golf
– Ampang – Sales Gamuda & Country Menara Total Scope
6,071.36 Park Station Gallery Walk Club Gamuda 1 Emission

FY2020 12.1 8.6 0.2 1,266.1 0.02 1,287.02

1,287.02 FY2019 12.11 0.07 0.01 6,058.72 0.45 6,071.36

FY2018 14.89 0.00 0.00 9,444.38 0.61 9,459.88

FY2020 FY2019 FY2018

Total Scope 2 Emissions Emissions Contributed (tonnes CO2e)

KVMRT
Putrajaya Kota
4,723.20 4,758.62 4,621.81 Line twentyfive.7 Permai Golf
– Ampang – Sales Gamuda & Country Menara Total Scope
Park Station Gallery Walk Club Gamuda 2 Emission

FY2020 409.9 123.2 1,581.3 1,136.0 1,472.8 4,723.20

FY2019 98.66 130.39 1,593.19 1,368.54 1,567.84 4,758.62

FY2018 0.00 71.47 1,616.68 1,385.29 1,548.37 4,621.81

FY2020 FY2019 FY2018

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BIODIVERSITY

(GRI 304-1)

WHY IT MATTERS HOW WE APPROACH IT

(GRI 304-1) (GRI 103-1) (GRI 304-1) (GRI 103-2)

Gamuda believes that biodiversity lies at the heart of sustainable We launched Gamuda Parks in 2018 as an overarching programme
development and human well-being, and its conservation forms to maintain the parks within our developments in a systematic
the core of the UN 2030 Agenda for Sustainable Development. and consistent way while providing a platform to consolidate
Biodiversity underpins the provision of clean air, water and all our related efforts in biodiversity enrichment, conservation,
food, and helps to mitigate climate change. It also supports education, and township management. We subsequently
human health and adds value to the economy by providing jobs formalised the key guiding principles under the Gamuda Parks
in agriculture, industry, tourism and leisure, and many other Biodiversity Policy, of which the strategies and initiatives outlined
sectors via payment through ecosystem services. Biodiversity will be executed by the Gamuda Parks Working Committee.
acts as a key indicator that defines the health of an ecosystem
as the more biodiverse the ecosystem, the healthier the The role and responsibilities of the Gamuda Parks working
environment is for the community to inhabit. committee include design and research to ensure our biodiversity
and resource conservation requirements have been incorporated
We believe that biodiversity is reflective of the richness, variety into Gamuda Land’s property developments. The committee is
and ultimately the health of an environment, and rich natural also responsible to coordinate audits on the progress of each
environments, in turn, support and enrich our living conditions. goal specified in this policy.
As a leading property developer, Gamuda Land has always
promoted the philosophy of listening to the land and living in In addition, the committee functions as the project manager to
harmony with the natural environment, as we realise that liaise with external parties such as environmental consultants
connecting with the nature promotes a sense of well-being and and external advisors for site environmental assessments.
keeps us happy. It provides support in the implementation of biodiversity initiatives
during the construction and post-construction phases as well.
As we harness the finite land resources for township development,
we are fully aware that we need to do this mindfully so as to
mitigate and minimise negative impact caused by the project,
while at the same time preserving and enriching the natural
environment to leave a net positive impact. We are determined
to ensure that development and nature preservation can
co-exist to improve the living quality for the human being. We
acknowledge that it is our responsibility to create a conducive
space for our residents while being mindful to the flora and
fauna in the vicinity.

At Gamuda Land, our landscape architects are the practitioners

of biodiversity preservation as they seek to integrate nature
into the spaces at our projects. Marrying biodiversity conservation
with our developments was never an afterthought. We believe
that studying the biodiversity state of the site before any
intervention would make us cautious of the land that we are
working on. This is a planning process conducted ahead of time
to ensure that the sustenance of the biodiversity is well-kept
even years after the township has matured.

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We have lined up a robust list of strategies and actions for biodiversity conservation and enrichment, as follows:

Gamuda Parks
Biodiversity
Strategy
Establishment of
Conservation and Preservation of
urban forest in
educational Melicope Lunu Akenda
all Gamuda Land
programme in (Tenggek Burung) in
developments using
Paya Indah Discovery Gamuda Cove central
Miyawaki
Wetlands park
technique
Carbon
sequestration exercise
and tree tagging with
online database
Introduction of
Biodiversity
Hopea Subalata, a
assessment in Food waste
critically endangered
Kota Kemuning and awareness
tree species under IUCN
Gamuda Gardens programme
Red List in Gamuda
for FY2020/2021
Gardens
Establishment of
Establishment
Wetland Forest Park, a Composting
of Advanced
90-acre recreational and yards in all
Tree Planting
conservation zone in developments
nursery
Gamuda Cove
Food waste
management at Reuse construction
Menara Gamuda and waste as landscape
all Gamuda Land element
developments

HOW WE MONITOR IT OUR PERFORMANCE

(GRI 304-1) (GRI 103-3) (GRI 304-1)

We regularly conduct a biodiversity baseline audit and follow- The site of Gamuda Cove, a township development by Gamuda
up with an annual progress report whereby Gamuda Parks will Land, is adjacent to areas within the Paya Indah Discovery Wetlands,
consolidate information from all developments. which has high biodiversity value such as wildlife hotspots.

An internal audit is conducted for the annual progress report The area falls under the Protected Landscape category. Gamuda
based on the targets stated in Gamuda Parks Biodiversity Policy. is operating the Paya Indah Discovery Wetlands as part of plans
Data is consolidated from all developments under Gamuda to conserve biodiversity in the area, while raising public
Land. This is further supported with an external audit involving awareness through ecotourism. The total operational site
external advisors to review the findings from the reports by measures 1113.85 acres.
consultants and advise on Gamuda Parks biodiversity action
plan. The wetlands area reserve and recreational park is located
within the Dengkil district in the Selangor state in Malaysia.
With this systematic approach in place, we can monitor our There are 11 lakes within the wetlands, namely: Tasik Driftwood,
biodiversity achievements and progress by comparing results Tasik Teratai, Tasik Typha, Tasik Telipok, Tasik Palma, Crocodile
from the annual progress reports with the baseline audit. Lake, Tasik Resam, Tasik Kuning, Hippo Lake, Tasik Sendayan,
and Tasik Rusiga.

In FY2019/FY2020, we spent about RM644,000 on biodiversity

conservation programmes. Out of this, Gamuda Parks allocates
a budget of RM50,000 to RM70,000 for every biodiversity
assessment at a site.

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Integrating Biodiversity and Living Space

Biodiversity has been an integral part of consideration when creating a living space that has a seamless integration of nature
and living space. We strive to ensure the original biodiversity of a place is retained or otherwise flourishes under our care. We
also believe that the communities and spaces we create deserve a well-planned, clean and safe environment that integrates
technologies to enhance the living experience. The integration between needs of living space and nature is our main objective
when we create our developments in Gamuda to ensure at least 11 percent of the total development area is reserved as
landscape area (above the requirements of the authorities).

Percentage of
Landscape Area Landscape No. of
No. Development (acres) Area Trees Planted
1 Kota Kemuning 421.6 23% 82,500
2 Valencia 101.3 35% 16,726
3 Bandar Botanic 192.4 16% 66,770
4 Madge Mansions 0.2 10% 313
5 The Robertson 1.9 63% 634
6 HighPark Suites 3.4 77% 620
7 Jade Hills 57.3 16% 9,454
8 Horizon Hills 357.1 30% 50,513
9 Bukit Bantayan Residences 1.3 7% 629
10 twentyfive.7 17.7 7% 1,472
11 Kundang Estates 21.3 24% 4,351
12 Gamuda Gardens 50.6 6% 12,422
13 Gamuda Cove 25.9 2% 4,752
14 Celadon City 42.79 19% 5,615
15 Gamuda City 24.5 6% 3,896
16 Yen So Park 236.57 42% 20,516
TOTAL 1556 281,183

• Percentage of landscape area is the landscape area/development area.

• Landscape area includes green area, golf course, streetscape planting and waterbody only.
• Information for the percentage of landscape area has been assured through Limited Assurance exercise with Ernst and Young (assurance
excludes overseas developments – Celadon City, Gamuda City and Yen So Park).

INTERNATIONAL UNION FOR CONSERVATION OF NATURE (IUCN) RED LIST SPECIES CONSERVATION

(GRI 304-4)

WHY IT MATTERS
(GRI 304-4) (GRI 103-1)

Gamuda is fully committed to identify where our operations Gamuda realises that monitoring and protecting endangered
will pose a threat to endangered plants and animals, and take species is a material sustainability issue to us after the
appropriate steps to safeguard those species from further harm. occurrence of human-wildlife conflict and coexistence at our
Our commitment is underscored by an understanding that when construction sites and within our completed developments. For
a species becomes endangered, it is a sign that the ecosystem instance, there were concerns among residents at Jade Hills
is slowly falling apart. Each species that is lost will then trigger when they encountered wildlife such as bats in the neighbourhood.
a domino effect and lead to further loss of other species within Since bats play an important role as pollinators, the proposed
its ecosystem. solution to kill the bats was dismissed, but we had taken pains
to keep fruit trees that attract bats further away from the
residential units in future developments to maintain a harmonious
co-living environment while encouraging pollination.
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HOW WE APPROACH IT OUR PERFORMANCE

(GRI 304-4) (GRI 103-2) (GRI 304-4)

Apart from the annual biodiversity audit, we have put up nature The total species with conservation importance under IUCN
interpretative signages in Valencia and Gamuda Gardens to Red List were recorded from biodiversity audits were 26 flora
help educate our residents about the biodiversity around them and 36 fauna species, as listed below.
to respect the surrounding nature. On top of that, emergency
response posters and signages have been added in many of IUCN Red
the developments developed by Gamuda Land to inform the List Species
residents of the most appropriate measures when encountering Identified Flora Fauna
wildlife, so as to minimise the risk of danger to both man and
wildlife. Critically • Hopea subalata • Yangtze giant
endangered • Kopsia arborea soft-shell turtle
• Yellow-headed
We also plan to procure Hopea Subalata (Merawan Kanching),
tortoise
a critically endangered species for Gamuda Gardens that is
• Asian forest
found only within the Kanching Forest Reserves.
tortoise
• Radiated tortoise
HOW WE MONITOR IT Endangered • Afzelia xylocarpa • Malaysian giant
(GRI 304-4) (GRI 103-3) • Anisoptera costata tortoise
• Hopea helferi • Masked Finfoot
We monitor our progress and achievement by comparing results
• Shorea roxburghii • Yellow-headed
in the baseline biodiversity audit with a subsequent biodiversity
• Pterocarpus indicus temple turtle
audit. This effort is complemented with internal and external
• Pterocarpus • Pig-nosed turtle
audits.
macrocarpus
A summary of the audit results for FY2019/FY2020 shows that Vulnerable • Dalbergia latifolia • Ambonia box
we have achieved five percent of endangered tree species listed • Dipterocarpus alatus turtle
under IUCN for every project during the period. • Dipterocarpus • Black marsh
chartaceus turtle
We recorded 26 flora and 36 fauna species with conservation • Dipterocarpus kerrii • Giant Asian pond
importance from biodiversity audits, respectively, within the • Hopea mengarawan turtle
vicinities of Jade Hills, Gamuda Gardens, Gamuda Cove, and • Hopea odorata • Javan Myna
Paya Indah Discovery Wetlands, Celadon City and Valencia. • Khaya senegalensis • Lesser Adjutant
• Melicope lunu- • Pig-tailed
Gamuda Parks planted 6,000 native species of trees in our akenda Macaque
Advanced Tree Planting nursery, including Shorea roxburghii • Pimenta racemose • Red-footed
(White Meranti), which is classified as endangered in Malaysia. • Shorea materialis tortoise
Gamuda Parks also practices “Legacy Planting” by reintroducing • Swietenia
more than 14 endemic tree species of conservation importance macrophylla
for Advanced Tree Planting in Gamuda Gardens, Kundang Estates
Near • Agathis borneensis • Ashy Tailorbird
and Gamuda Cove.
Threatened • Dryobalanops • Black Hornbill
aromatica • Black Magpie
• Elaeocarpus • Black-bellied
grandiflorus Malkoha
• Dypsis lutescens • Buff-necked
• Hopea griffithii Woodpecker
• Podocarpus • Chestnut-bellied
polystachyus Malkoha
• Shorea sumatrana • Fiery minivet
• Glossy Ibis
• Grey-headed Fish
eagle
• Jambu Fruit Dove
• Oriental Pied
Hornbill

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INITIATIVE
FOOD WASTE TO COMPOST

The United Nations Food and Agriculture Organisation can be more efficient in land and water use, leaving a
estimated 1.3 billion tonnes of food waste is generated globally positive impact on climate change and livelihoods.
every year. According to Solid Waste Corporation, Malaysians
alone generate a whopping 16,688 tonnes of food waste daily A Group-wide Plate to Plant Programme was conducted at
– enough to feed 12 million people three times a day. Menara Gamuda and Jade Hills to reduce the food waste
generated throughout the office blocks and commercial
When food residues decompose in landfills, they emit highly dining outlets. Food composting machines were installed at
polluting greenhouse gases, of which 47 percent is the Menara Gamuda and Jade Hills to collect up to 100kg of
combustible methane. Therefore, we should adopt a circular food waste daily at each site, while our employees, residents
economy to save on handling costs and reduce the bulk of and food operators were encouraged to support this initiative
waste that goes to the landfills. By reducing wastage, we by throwing leftovers into the designated bins.

Old Way New Way

Solid Compost

147kg
Compost

150kg
per week Compost Machine
per month
for landscape
in Gamuda
developments

Liquid Compost

Food Waste 12.6 liter

30kg
per month

daily

Food waste to compost

TUNNEL BORING MACHINE – RECYCLED WATER

Water management plays an important role in the assessment

of  a construction project’s impact  on the environment,
particularly in civil engineering.  A large amount  of water  is
typically used in the construction process — for cooling, general
cleaning, transporting excavated material and to keep
pressure on our Tunnel Boring Machines (TBMs). Therefore,
to minimise the negative impact of our projects on  the
environment, we seek to cleanse, reuse and recycle the
water  at our construction sites as much as possible.  
 
This is achieved by treating our discharged construction
effluent with our onsite water treatment plants, following
which the treated water will be reused for our tunnel
construction processes. This recycled water is also utilised
for activities such as wheel washing and dust suppression. Treat about About
We treat about 600 m3 of water daily at each of our tunnelling
construction sites, or 50 percent of our total daily water
600m
water daily
3
50%
total daily water
demand is supplied with recycled water.

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INITIATIVE
E-WASTE

As our lives become increasingly dominated by digital gadgets,

we move on to new devices with ever-evolving technology
at an increasingly fast pace. However, the improper disposal
of old electrical and electronic devices that we leave behind
will be detrimental to our health and environment as they
contain hazardous components that can leak into our
surroundings through landfills.

In view of the rising amount of e-waste that all of us generate

as we chase newer technologies, Gamuda held an E-waste
Recycling Week on 10 to 16 February this year at our office
to facilitate the collection of these old digital devices by a
recycler licensed by the Department of Environment under
the Ministry of Environment and Water. The encouraging
Held an E-waste

2,000kg Recycling
participation from our employees saw us collecting Collected
2,000kg of e-waste including unwanted computer parts,
electrical home appliances and gadgets for recycling.
Week
e-waste

GAMUDA GARDENS SOLAR PROGRAMME

We seek to reduce our carbon footprint by supporting the

usage of renewable energy whenever possible, which
also results in savings of electrical bills. We invested
RM1.08 million to install solar photovoltaic panels on the
rooftop of Gamuda Gardens sales gallery and badminton
hall, measuring 1,880 sq metre with a total capacity of
310.2 kWh. The power generated is used to energise the
central lake’s fountain and waterfall, while the extra energy
will be switched for utilisation at the sales gallery.

The project is estimated to result in annual energy saving

of about 250,000 kWh on average, with an electricity saving
of about RM90,000 per year on average.

Invested Measuring Saving of about Saving of about

RM1.08 310.2 250,000 RM90,000

million kWh kWhaverage
per year on average

to install solar total capacity

photovoltaic panels

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ENVIRONMENTAL CONSERVATION

BANDAR BOTANIC

Our property development division, Gamuda Land, is committed was formed in May 2020 to oversee the maintenance and
to ensuring the long-term sustainability of its developments. cleanliness of the Botanic Park, which was often littered with
This remains uncompromised years after the projects are rubbish and affected by broken and poorly maintained facilities.
completed. The once beautiful park was part of Gamuda Land’s development
planning to create a lush green environment for the community
In June 2020, Gamuda Land was named Malaysia’s Responsible to enjoy the serene beauty of nature, but has gradually fallen
Developer: Building Sustainable Development Award 2020 at into a state of neglect, partly due to the confusion about the
EdgeProp Malaysia’s Best Management and Sustainable park’s gazetted status and which authority was responsible for
Property Award. This was in recognition of the company’s its upkeep.
unrelenting dedication to solve the sewerage problem at its
master-planned development Bandar Botanic in Klang, One of the first initiatives by the task force was to organise
Selangor. The fact that the development and sewerage system the park clean-up which saw about 400 people attended,
had been handed over to the local authorities didn’t stop including residents from surrounding neighbourhoods,
Gamuda Land from delivering on its promise to homebuyers volunteers, as well as non-governmental organisations and
and helped find a solution. The award was proof that we are local authorities. Officials from MPK and the Selangor Drainage
dedicated to ensure the livability and sustainability of the and Irrigation Department were also present to listen to the
developments we built which was also awarded the prestigious residents’ woes.
FIABCI Property Award of Distinction for Best Master Plan
in 2003. Among the proposed outcomes achieved through the task force
include the engagement of a contractor to take care of the
Our commitment in upholding the integrity of the developments park’s cleanliness with another contractor hired by the residents
we built was demonstrated through the task force set up to to prune the trees. Both the residents and the authorities also
tackle residents’ complaints against deteriorating conditions discussed boosting the security around the area to prevent the
of the recreational area within the Bandar Botanic developments. recurrence of house break-ins through the park, as well as
Under the facilitation of Gamuda Land, a task force comprising improvement of the lake area to resolve flooding issues during
residents’ representatives and Klang Municipal Council (MPK) downpours.

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ENVIRONMENTAL CONSERVATION

GAMUDA PARKS

Gamuda Parks was set up in May 2018 to formalise our efforts With these efforts, it is rewarding when experts tell us that
in land and biodiversity conservation. As a developer, our in our two developments, over 140 species of small mammals,
philosophy is to listen to the land whenever we acquire a new birds and insects can be found. Our guiding principle for
parcel. We seek to work with the land without changing the conservation has always been to leave the land in better
terrain, allowing it to return to its natural state to encourage shape than when we first received it. This in turn will provide
the spread of flora and fauna. It’s all about mindful planning our residents a natural and sustainable environment to live
to conserve existing trees and replanting only species that are in harmony with.
native to the land, which will in turn support local birds and
insects.

Advanced Tree Planting Arboretum

As part of the biodiversity conservation, we conduct advanced Coming up next in 2021, Gamuda Parks plans to develop an
tree planting to ensure there will be sufficient greenery in the arboretum to regenerate flora and fauna species, and address
development and various plant species to create a balanced the issue of climate change and carbon storage value. This
ecosystem, while promoting native species. We procure desired includes a horticulture nursery for the propagation of green
and identified trees in advance, nurture and monitor them at stock and creating a circular economy from the organic waste
our nursery for at least two years before planting them onsite for the sustainable use of green resources. The concept is
so that our township community would not have to wait for the akin to having our private forest reserve institute in which
trees to grow. Advanced tree planting is different from we are able to plant new trees from the seedling stage to
transplanting as the young trees are directly planted after preserve the rich variety of trees in Malaysia.
transporting, resulting in less stress to the trees and faster
recovery.

Advanced Regenerate

tree flora and

Gamuda Parks plans to

develop an
Desired trees are
identified in

advance planting to grow

arboretum faunaspecies

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ENVIRONMENTAL CONSERVATION

GAMUDA PARKS

Education IUCN
The GParks Rangers programme was created to inspire the In the future, we will require all new Gamuda Land developments
younger generation, comprising children aged between five to conduct a biodiversity audit prior to construction, which will
and 12 years old, to care about nature and instil a sense of be repeated annually to measure the biodiversity levels by
environmental responsibility within them. During the year, collating information regarding genetic, species and ecosystem
GParks Rangers reinforced the concept of “Living with Nature” diversity. A summary of the endangered species on the
to foster environmental sensitivity and further promote nature International Union for Conservation of Nature (IUCN) Red List
to the community and the younger generation through their found 26 species from six biodiversity audits. We aim to preserve
programmes. This is in line with the UN Sustainable at least five percent of these valuable tree species, and houses
Development Goal 4: Quality Education and the National Policy various fauna in all of our new developments, subject to site
on Biological Diversity 2016-2025. feasibility.

Inspire the

younger Care about

nature
generation
comprising children
and instil a sense
of environmental
aged between responsibility
5 and 12 years old

Found

26 species
during our latest
biodiversity audit

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ENVIRONMENTAL CONSERVATION

GAMUDA PARKS

Paya Indah Discovery Wetlands We comply with the standards set by The Department of
Wildlife and Natural Parks Peninsular Malaysia (PERHILITAN)
We obtained approval in principle to partner with the Ministry
in all our works at PIDW. In the future, we want to be in
of Water, Land and Natural Resources and the Selangor State
compliance with higher international standards with an aim
Government to jointly manage and operate Paya Indah Discovery
for PIDW to be added to The Ramsar Convention on List of
Wetlands (PIDW). We are dedicated to the conservation of this
Wetlands of International Importance, known as Ramsar sites,
natural sanctuary to 244 species of birds, 12 mammals and 20
in five to seven years. In addition, we will promote the wetlands
reptiles. We are also dedicated to allocate resources to educate
as an ecotourism destination, with plans to rebrand it as
our children about the importance of wetlands biodiversity – it
Discovery Wetlands by adding family-friendly activities such
is estimated that about 90 percent of the living species in the
as cycling, fishing, bird watching, horse riding and bamboo
world lives around wetlands.
trail walking.  Hot air balloons will also be set up for those
interested to witness the aerial view of the beautiful wetlands.
Comprising 11 interlinked lakes, marshes and lowland tropical
forests, PIDW is also the natural habitat to 142 aquatic plants
We hope this nature conservation project will be able to leave
and animals, 40 types of fish, as well as 220 types of terrestrial
a positive impact on the society. We are committed to create
plants and herbs. We have invested about RM6 million to
a higher environmental awareness to the public by imparting
refurbish and upgrade the facilities and amenities in PIDW, but
knowledge about protecting and restoring nature to visitors
no reconstruction or redevelopment of the area has been done
at PIDW. Since the commencement of our conservation project,
due to its nature of being reserved wetlands and majority of
we observed an improvement of migratory birds in the area
the areas in PIDW are zoned as conservation areas.
with the bird species rising to 244 birds from 225 previously.

Conservation of Conservation of Conservation of

244 12 20
species
of birds
mammals reptiles

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 SUSTAINABILITY
REPORT

Social
SUPPORTING THE UN SDGs
Goal 4 
Ensure inclusive and equitable quality education and promote lifelong
learning opportunities for all
4.4 & 4.5 P
 romote equal access for all women and men, especially
youths to have technical skills that prepare them for
employment, decent jobs or entrepreneurship

Goal 5
Achieve gender equality and empower all women and girls
5.5 Promote women in engineering and management (and Board)

Goal 8
Promote sustained, inclusive and sustainable economic growth, full
and productive employment and decent work for all
8.5 Prepare differently-abled people to embrace working environment

Goal 9
Build resilient infrastructure, promote inclusive and sustainable
industrialisation and foster innovation
9.4 Promote innovation and technology that encourages resource
use efficiency

Goal 11 
Make cities and human settlements inclusive, safe, resilient and
sustainable
11.1 & 11.3 C
 atalyse the inclusivity and sustainable urbanisation while
integrating sustainable human settlement planning and
management

Goal 17 
Strengthen the means of implementation and revitalize the global
partnership for sustainable development
17.17 Encourage and promote effective public-private partnership in
catalysing the education and employability of differently-abled
people

Gamuda Cove, Selangor, Malaysia

 It is our aim to sustain, support and develop
the local communities through education,
development programmes, environmental
conservation and sustainability advocacy
so that we can mutually thrive to build a
sustainable planet for the future generations.

OUR PLAN
• Tunnelling Training Academy – produce a skilled
workforce in the highly specialised field of tunnel
construction
• KVMRT Safety Training Centre – prioritise safety
and health with best-in-class practices
• BIM Academy – promote a qualified and
multi-skilled workforce on the latest construction
technologies essential in Industry 4.0
• Gamuda Plant Operator School – promote training
on machine operation for construction works
• Enabling Academy – enable adults with autism to
embrace the working culture and provide
employability
• Engaging indigenous communities for education and
employment opportunities in biodiversity conservation

“You can dream, create, design, and build the

most wonderful place in the world. But it
requires people to make the dream a reality.”
– Walt Disney
GAMUDA BERHAD 197601003632 (29579-T)

Sustainability Report

TRAINING TYPES

WHY IT MATTERS registered with DOSH to be trained as crane operators, we are

(GRI 404-2) (GRI 103-1) contributing to the social sustainability of the nation by upgrading
the skills of local residents. As many as 75 percent of Malaysia’s
As a key infrastructure builder, Gamuda conducts high-risk and certified crane operators are trained by GPOS.
high-skilled construction works at densely populated areas.
Therefore safety is important and we need to ensure our workers Meanwhile, the KVMRT Safety Training Centre was established
are well equipped with the specific knowledge and safety in collaboration with CIDB and National Institute of Occupational
awareness to operate at our project sites, and that the level Safety and Health (NIOSH) as a pioneering institution aimed at
of competency amongst them is consistent. Establishing our elevating the Occupational, Safety and Health (OSH) standards
own training centres that cater to the specific requirements of of the whole MRT Putrajaya Line project. It was set up as part
our projects have led to increased work efficiency and allowed of the plan to reduce risks and practices that are deemed
us to be more professional as we execute the infrastructure hazardous to address rising public concerns and scrutiny over
projects. the construction industry. In line with this objective, the KVMRT
project, especially the Putrajaya Line, was made an example
On the ground for our various projects, we strive to equip all by the Government to set the benchmark for best practices for
our employees with proper and structured training before they the construction industry in Malaysia.
begin work as this is important to ensure all the tools, equipment
and machineries are operated in a safe manner. Through proper The purpose-built construction competency and safety training
training, we could reduce downtime and maintenance cost while centre covers OSH training as well as skills to train workers
ensuring the smooth operation throughout the project duration. involved in specific high-risk jobs and electrified rail infrastructure
construction. Based on our experience from the construction
HOW WE APPROACH IT of the MRT Kajang Line, the majority of the construction accidents
(GRI 404-2) (GRI 103-2) (GRI 103-3) occurred during lifting operations, or workers falling from
heights.
Gamuda Plant Operator School (GPOS) was established in 1997
to streamline the different competency levels of earthmoving Following the opening of the KVMRT Safety Training Centre,
plant operations in Malaysia as prior to that, construction contractors for KVMRT projects must send their worker for
workers learnt to operate tower cranes from experienced safety induction courses, and we established a safety passport
colleagues on the job. While it was initially set up as a non- system to ensure that all workers working in the KVMRT project
profit centre catering to our own internal needs, GPOS has sites must have earned the necessary qualifications. Arrangements
since extended training services to other construction companies were also made to ensure all subcontractors, crane companies,
in Malaysia, beyond focusing on just our employees to raise transporters and suppliers also receive adequate training, while
the nation’s overall vocational skills and competencies. free courses were provided to crane operators to ensure they
are totally competent to manoeuvre a crane during lifting,
GPOS currently offers three categories of training – skills considered as one of the most high-risk activities in construction.
competency, safety, awareness and youth apprenticeship With increased training and tighter safety strategy, the number
programmes. These programmes enable plant operators to of fatality and injury related accidents have declined during
obtain Certificates of Competency, which is recognised by the construction of MRT Putrajaya Line compared with MRT
government regulatory bodies such as the Department of Kajang Line.
Occupational Safety and Health (DOSH) and Construction Industry
Development Board (CIDB). The Construction Management Programme (CMP) is offered
via the Construction Training Unit (CTU) to boost the quality of
In over two decades, GPOS has trained more than 45,000 our managers by utilising real site work exposure to train young
trainees in crane and earthmoving plant operation as well as site supervisors and engineers. This programme facilitates training
safety and health programmes across the country. Training with internationally benchmarked construction skills adopted
includes tower crane, crawler crane, mobile crane, gantry or from the best practices in Australia, Europe and Singapore to
overhead crane, forklift and earthmoving plant operations. GPOS provide a springboard to the careers of trainees in the dynamic
remains the only private training academy for crane operators construction industry. CMP courses are accredited by CIDB for
in the country and since the Government only allows Malaysians Civil and Structural or Building and Architectural Works.

102 04 Sustainability
 ANNUAL REPORT 2020

collaboration with international experts from Siemens, Bosch

to Herrenknecht from Germany, tailoring to the requirements
of the projects. We jointly developed the training on the operation
and maintenance of the Variable Density Tunnel Boring Machine
(VDTBM) with supplier Herrenknecht to cater to the complex
geological conditions in Greater Kuala Lumpur. Kindly refer to
page 119 for Tunnelling Training Academy.

We are one of the first companies in the Southeast Asian region

and among the very few in the world to implement BIM Level
2 for an infrastructure project of this scale and complexity. We
are the first main contractor in Malaysia to be BIM Level 2
certified by a leading training and certification body, the British
The world class Tunnelling Training Academy (TTA) is Asia’s Research Establishment. In furthering the competencies in
first academy designed to produce a skilled workforce in the digital construction, a BIM Academy was established with the
highly specialised field of tunnel construction, while simultaneously aim of training over 1,000 employees and subcontractors from
supporting the required specialist skills volume needed to roll 2020-2022 to be able to design and operate this automated
out the KVMRT project. Training courses are designed in process using BIM software for our employees.

Types of Training conducted by GPOS for FY2020 Types of Training conducted by BIM Academy for FY2020

Types of Training Types of Training

1 Rigging and Sligging 1 BIM related Training*

2 Crane Safety Inspection and Lifting Gears 2 Viewpoint for Projects (VFP) training*

Fieldview (FV) – Combined Installation Programme

3 Crawler Crane Operator 3 (CIP) training*

4 Lifting Supervisor* 4 Augmented Reality for Construction Validation*

5 Mobile Crane 5 Fieldview Training on-sites for data collection*

6 Overhead Crane 6 Fieldview Training on Gamuda Building unit sites*

Fieldview Training on-sites for COVID-19 QR Code

7 Tower Crane 7 system for temperature tracking and RTK results*

* Information on the type and scope of programmes implemented and assistance provided to upgrade employee skills for FY2020 has been
assured through Limited Assurance exercise with Ernst and Young.

Reduce LTIFR from 1.94 in FY2019 to 1.27 in FY2020

Objectives:
To reduce number of LTI
Safety Passport Scheme
Increase trainer’s competency

Upskill workers to become skilled/competent workers

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Sustainability Report

SAFETY AND HEALTH

WHY IT MATTERS
(GRI 403-2) (GRI 103-1)

Gamuda believes that our people are our most valuable asset,
and creating a safe work environment has become the Group’s
primary objective in ensuring the safety, health and welfare of
the people are protected. Our people refers to not only the
employees and workers but is inclusive of subcontractors,
suppliers and any other person who is impacted by the work
we deliver. We trust that by ensuring our construction site is
safe, it also keeps the public safe. Construction sites are usually
located in busy areas where there is general public movement.
Inadequate safety protocols can allow objects to fall on innocent
bystanders, putting people not connected to the project at risk.

As safety and health are of paramount importance to the Group, We take lessons learnt from accidents involving high-risk
we aim to continuously improve our safety and health performance activities and use that as a basis to improve on the gaps in
through robust risk assessments and controls as well as the our safety and health practice. A thorough and transparent
adoption of best practices and procedures. Our Safety, Health investigation will be conducted in the event of an accident to
and Environment (SHE) Policy outlines the relevant processes identify any gaps in work process, and the investigation findings
and approach that sets our high safety and health standards will be used to enhance our process to prevent recurrence of
while also meeting regulatory requirements. This policy is the incident. Subsequently, we conduct ongoing monitoring and
regularly reviewed to strengthen our safety and health evaluation of the enhanced process to maintain its effectiveness.
performance and ensure it remains relevant to our business
objectives. In FY2020, the Group enhanced the Occupational
Safety and Health (OSH) Standard by adopting the Australian HOW WE APPROACH IT
standard which meets the requirement beyond Malaysia. (GRI 403-2) (GRI 103-2) (GRI 103-3)

Our safety and health standard is governed by the QSHE Policy

We adhere to stringent safety requirements for all the high-risk
(Quality, Safety, Health and Environment) established by Gamuda
activities at our construction sites, such as working at heights,
Berhad and Gamuda Engineering Sdn Bhd, and signed by the
crane and lifting operation, and plant and machinery management
managing directors of both companies.
to reduce the number of accidents arising from these activities.
These safety efforts have resulted in Gamuda’s accreditation
The policy stipulates that Gamuda is committed to being an
under the Work Health and Safety Accreditation Scheme
industry leader in QSHE by providing timely delivery of quality
administered by the Office of the Federal Safety Commissioner,
products and services, safe and healthy working condition and
Australia until November 2022.
an environmentally sustainable and responsible approach to
our business.
By adhering to strict safety and health rules, Gamuda has
managed to reduce the number of major injury accidents (Class
We aim to meet the needs and expectations of our customers
1, 2, and 3) involving high-risk activities (working at heights,
and other stakeholders, and we either comply with or exceed
crane and lifting operation, and plant and machinery) at the
the relevant legal and other requirements when it comes to
workplace from nine cases in FY2019 to four cases in FY2020.
safety and health standard. We are determined to prevent safety
and health incidents and environmental pollutions by continuously
As a leading construction company, having a safe work
improving our QSHE management system and performance to
environment has contributed to safeguarding reputation and
uphold the safety and health standard.
supporting our local and international project tenders. Our
emphasis on safety and health also boosted the morale of our
employees, helped us retain our pool of skilled manpower, and
contributed towards developing a safe work culture.

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Gamuda is driven to integrate the QSHE requirements into our Training and development for employees and workers in FY2020:
business processes by inculcating a self-regulating mindset in
Safety, Health and Environment induction for all new
our employees by encouraging them to take personal ownership
employees
of all safety and health matters. Our projects are built from
teamwork and we seek to keep everyone safe by adopting open
and honest communication to foster real teamwork. Most Emergency Response Team (ERT) training by internal and
importantly, we want to develop our people so that they are external parties (e.g. BOMBA and St John Ambulance)
equipped with sufficient skills and knowledge to keep everyone
safe at work.
Safety, Health and Environment (SHE) Work Instruction on
High-Risk Activities Training
The proper methodology is in place to keep track of our OSH
performance and progress in a systematic way. At Gamuda,
safety is everyone’s responsibility, all the way from the top
management to the workers on the ground. To uphold the Emergency Drill
standard, we have set KPIs for every project sites and these
results are reflected in Gamuda’s OSH performance.
Competency Training (e.g. Integrated Management System
(IMS) Lead Auditor, Rigging and Slinging, Scaffold Inspector
Gamuda has dedicated substantial resources to maintain and and Lifting Supervisor)
enhance our OSH performance. There are dedicated OSH Team
at the headquarters and our project sites, and we regularly
conduct OSH-related training. SHE Committee
SHE committee is established at all project sites to lead the
In line with the Group’s digitalisation strategy, we are gradually implementation of SHE initiatives and to monitor SHE performance.
digitalising some processes. We have digitalised OSH monitoring, SHE committee meetings are conducted at least once a month
evaluation and performance analysis using Fieldview and Tableau. to serve as a platform in ensuring timely communication and
We started using Fieldview for SHE Inspection in the previous effective Hazard Identification, Assessment of Risk and
year. This year, the usage of Fieldview has been expanded to Opportunity, and Controls (HIAROC) process implementation.
Internal Audit, PTW Implementation, Plant and Machinery Employees and workers may also communicate and provide
Inspection and Site Daily Progress Report. feedback to management through the following channels:

Gamuda adopts an integrated management system for our

OSH processes. This is certified under ISO 9001, 14001 and 1 Toolbox and pre-task briefing
45001.
Involvement in HIAROC during Job Safety Analysis
We are constantly monitoring our OSH practice through regular 2 and Method Statement review
daily and weekly inspections, in addition to Safety and Health
Committee inspection and monthly Inspection by SHE personnel 3 During incident investigation process
at the project sites. This is enhanced by the internal audit as
well as external audit conducted by a certification body such
Discussions during corporate and project level SHE
as SIRIM. Our operations in Australia is subjected to inspection 4 committee meetings
by the Federal Safety Commissioner (FSC) Australia.

At Gamuda, all safety and health related matters come under 5 Management Review Meetings
the oversight of the Head of QSHE Department. At the project
level, this is the responsibility of the respective heads of projects.
The SHE committee team carries out regular site visits to guide
We have maintained a zero non-conformance report (NCR) for our workers in implementing the Group’s best practices and
the past 11 years consistently for the SIRIM audit result. The minimising harm at the workplace. We have put in place an
5-Star SHASSIC award was presented to RSKU Puncak Bestari, Incident Investigation and Reporting procedure to respond to
RSKU Bandar Serai and RSKU Cyber Valley from Construction any safety and health related occurrences reported by employees
Industry Development Board (CIDB) during CIDB SHASSIC Day or workers on site. Incidents reported will be investigated by
2020. We also obtained TABAS (Tapak Bina Sejahtera) for RSKU trained personnel and preventive or mitigating actions will be
Cyber Valley from Majlis Perbandaran Sepang. implemented. Data and trends gathered from these incidents
will be reviewed critically to enhance existing SHE strategies
and procedures.

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OUR PERFORMANCE
(GRI 403-2)

The close attention given to OSH has led to several awards Gamuda Land was also praised by Malaysia’s Works Minister
and recognitions. Gamuda Engineering was accredited by Dato’ Sri Haji Fadillah Yusof for stepping up its precautionary
Office of the Federal Safety Commissioner, Australia (OFSC), workplace actions as part of COVID-19 containment measures,
5-Star SHASSIC Award and British Safety Council Award, just which exceeded the benchmark imposed by the industry regulator,
to name a few. Gamuda Land, on the other hand was awarded CIDB. The Works Ministry visited twentyfive.7 development in
EdgeProp Malaysia’s Responsible Developer: Building Sustainable June 2020 for a construction site inspection to ensure developers
Development Award 2020 in June. in the country are keeping up with CIDB’s new standard operating
procedure (SOP).

MRT Putrajaya Line

Total Man- Average Injury Total Work Lost

Hours Worked Man-Power Class 1 Class 2 Class 3 Class 4 Rate* Day Lost Day Rate#

29,647,276 12,957 0 1 18 57 0.51 441 2.97

Class 1 – An incident that results in the death of an employee due to an occupational activity
Class 2 – An incident which involves injury to an employee that prevents the person from following his normal occupation and involves permanent
disability
Class 3 – An incident which involves injury to an employee that prevents the person from following his normal occupation for 4 days or more
Class 4 – An incident resulting in lost time of less than 4 days which requires medical treatment or clinic or hospital
Information on the types of injury and injury rate (for MRT Putrajaya Line) has been assured through Limited Assurance exercise with Ernst
and Young.

* Formula to calculate Injury Rate: Number of injury (class 1, 2, 3 and 4)/total manhours worked X 200,000
#
Formula to Lost Day Rate: Number of workday lost/total manhours worked X 200,000

GAMUDA BERHAD (Gamuda Engineering, Menara Gamuda and projects)

Injury Lost Time Injury Frequency

Total Man-Hours Worked Average Man-Power Rate Rate (LTIFR)

40,053,544 16,744 0.25 1.27

Projects include MRT Putrajaya Line, Pan Borneo (WPC-04) and Belfield

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DIVERSITY AND EQUAL OPPORTUNITY

WHY IT MATTERS OUR PERFORMANCE

(GRI 405-1) (GRI 103-1) (GRI 405-1)

Gamuda recognises that to achieve its purpose, it must be a Gamuda’s commitment to build a diverse and inclusive workplace
leader in relation to workplace diversity and equality. is reflected in the composition of our workforce, which is well
represented by each age group as well as gender. In FY2020,
We employ a diverse workforce so that we can tap into a wider 33 percent of our employees are under 30 years old, with
talent pool with different background and expertise, thereby 56 percent of them aged between 30-50. We have 12 percent
generating creative solutions that will help the Group stay of employees who are over 50 years old. We believe it is
competitive in the ever-challenging and globalised business important to have a workforce comprising a balanced number
environment. of experienced as well as up-and-coming young workers to
ensure the succession and continuity of the business as the
We do not discriminate against gender, marital status, race, experience accumulated could be passed down through
nationality, ethnicity, or age. Our guiding principles are to collaboration.
promote and protect basic human and, labour rights and values
to achieve our collective goal for excellence. Besides age diversity, Gamuda is also supportive of raising
women’s participation in the labour market. The Group has
taken the initiative to ease concerns of working women, especially
HOW WE APPROACH IT young mothers looking for an affordable and reliable childcare
(GRI 405-1) (GRI 103-2) (GRI 103-3)
centre that is near to their workplace. This value added
The Group practices non-discrimination when it comes to benefit acts as one of the elements to attract and retain our
performing organisational activities. Although the popular belief women in the workplace. In FY2020, 31 percent of our employees
is that a construction company may tend to promote male are female.
employees, Gamuda does not discriminate in that manner. We
provide equal opportunities for all to be part of our innovative
team of builders. For more information on how we value talents
without discriminating based on gender, kindly refer to the
‘Women in Engineering’ section on page 116.

Besides at the working level, we also ensure that women are

part of our highest governance levels. Our Group key governance
positions are led by females such as Group Human Resources
and Administration, Group Corporate Communications and
Sustainability, Group Chief Sustainability Officer, Legal and
Company Secretarial, and the Integrity and Governance Unit.
The drive to promote women in management extends to the
Board level, with three out of seven of the members are female.
We hope to continue having this mixture of leadership in the
Group and be a precursor towards a company for all.

Other than promoting gender equality, we also do not condone

any kind of discrimination especially for key processes such
as employee hiring, employee benefits, appraisal, remuneration,
promotion or legal action due to non-compliance. We strongly
believe that any form of appreciation or retribution should be
a consequence of individual workmanship or actions.

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The Group’s Gender Diversity for FY2020

9% 22% 31% 39% 28%

69% 31%
91% 78% 69% 61% 72%
Total number of employee for FY2020: 4,284
* Excluding Joint Venture, Subsidiaries and Associates Top Senior Middle Executive Non-
Management Management Management Executive

Male Female

The Group’s Age Diversity for FY2020

91%
80%

57%
55% 53%
52% 51% 47% 45% 47%
37%
37% 38%
33%
18%

12% 11% 11% 9%

6% 8%
2%
0% 0%
FY2020 FY2019 FY2018 Top Senior Middle Executive Non-
Management Management Management Executive

<30 years old 30-50 years old<30 years>50

oldyears old
30-50 years old >50 years30-50
<30 years old old years old >50 years old

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NEW EMPLOYEE HIRES AND EMPLOYEE TURNOVER

WHY IT MATTERS A Cessation of Service policy is in place to help manage employee

(GRI 401-1) (GRI 103-1) resignation. We will conduct a formal exit interview to obtain
feedbacks on reasons for resignation, which allows us to ensure
Gamuda views our people as the greatest asset of the Group. actions are taken to improve and close any necessary gaps
As an infrastructure company, our success is heavily dependent that may exist.
on engineering excellence and expertise to drive technological
advancement. This core competency is deeply rooted in the The new hires and employee turnover are managed by our
knowledge and dedication brought by our employees, as humans talent managers from the Group Human Resources. They assist
are behind each technology advancement and breakthrough. the business to manage and advise on the required resources.
Heads of departments are given the responsibilities to manage
This is evidenced by our latest award-winning (Autonomous the resource planning.
Tunnel Boring Machine, A-TBM), a true Malaysian innovation
designed by an in-house team of engineers at MMC Gamuda The Group has dedicated resources in place through the various
that is undertaking the Klang Valley Mass Rapid Transit HR teams to manage the full cycle of employment experience
construction project. Therefore, efficient manpower planning is at Gamuda, from hiring right through managing the employee’s
important for Gamuda to maintain an optimal level of talents exit. This includes the teams responsible for Talent Acquisitions,
to sustain the business. At the same time, we seek to keep HR Operations, Compensation and Benefits, as well as Talent
employee turnover to a minimum by providing a positive employee Management. On the technology front, we have invested in
experience overall through continuous engagement and retention computer systems and have the relevant HR processes in place
strategies. for the management of our employments.

Our hiring activity will typically increase when the Group embarks We continuously strategise our annual plans to build our talent
on a new project. This is balanced against a healthy turnover pipeline through Employer Branding initiatives. We constantly
as this will enable the replenishment and growth of new talents engage with university students both locally and abroad through
with new skill sets. workshops and talks, career fairs, internship programme intakes
and employer branding by participating in various publications
The management of our human capital is a material sustainability and activities. In addition, we have built a strong social media
matter as our people are the primary stakeholder that drives presence on several platforms with assistance from the Group
the business, bringing innovation to our projects. All of these Corporate Communications and Sustainability department.
will have an indirect impact on the construction and engineering
industry in Malaysia due to Gamuda’s position as an industry Our ongoing branding efforts have resulted in Gamuda being
leader. An event that may alter the Group’s hiring and retention recognised in the latest Graduan Brand Awards as the sector
rate would be an industry slowdown or a lack of new business leader in the Construction and Property Development industry.
for the Group to sustain its workforce expansion. We have maintained our top five positions in the awards for
the past three years.

HOW WE APPROACH IT To monitor our approach in employment management, we

(GRI 401-1) (GRI 103-2) (GRI 103-3)
conduct internal audits to ensure check and balance in the
Whenever a new hire joins the Group, they will be introduced process and feedback are collected on areas that needed
to the Group’s structure and work culture through a formal improvement. The respective business unit’s HR representatives
orientation programme that promotes an informed on-boarding will oversee the evaluation and the findings are discussed with
experience. These new hires will undergo a supervised and the Head of HR.
structured on-boarding programme within their departments
during their probationary period. The Recruitment and Selection
Policy is in place for everyone to view and follow when hiring
is concerned.

We also share Gamuda Values with new employees and equip

them with awareness on discipline, sexual harassment and
grievance guidelines and policies during the Corporate Induction
Programme for all new employees.

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OUR PERFORMANCE
(GRI 401-1)

We hired 497 new employees in FY2020, representing 14 percent Our employment data consist of those from Gamuda Berhad,
of our total workforce. The turnover rate stood at 9.2 percent, Gamuda Engineering, Gamuda Land, Clubs and other subsidiary
slightly lower than the 10 percent recorded in the previous companies of the Group in Malaysia, Australia, Singapore and
year. Our employee turnover rates have been relatively stable Taiwan. The data excludes those from our joint venture and
over the past three years, with a turnover rate of 9 percent in associate companies.
FY2019.

Gamuda’s commitment to diversity and inclusivity is demonstrated

in the well-balanced number of experienced employees compared
with younger employees being hired during the year. Of the
total new hires in FY2020, 33 percent are under 30 years old,
while 55 percent are 30-50 years old. The remaining 12 percent
are over 50 years old.

New hires

By Gender By Age Group

No. of Employees Rate of new employee

hires by age category (%)
265

205
62% 38%
8%
6%
308 189 27 1%

<30 years old 30-50 years old >50 years old

Turnover

By Gender By Age Group

No. of Employees Turnover Rate (%)

207

70% 20%
120

235 100 8
6%
3%
0.2%

<30 years old 30-50 years old >50 years old

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BENEFITS PROVIDED TO FULL-TIME EMPLOYEES

WHY IT MATTERS HOW WE APPROACH IT

(GRI 401-2) (GRI 103-1) (GRI 401-2) (GRI 103-2)

We are committed to provide competitive benefits that promotes We continuously review and refine the employee benefits to
health and well-being while appreciating the workforce as part suit the current needs of employees. We conduct frequent
of our ecosystem. These benefits can improve our bottom line employee engagements through different mediums such as
by engaging employees to care for themselves. Healthier town hall meetings and appraisal sessions. The Group ensures
employees mean lowering the risk for sick days, bringing that all employees understand their benefits through roadshows
employees best selves to work every day and be available for and ongoing communication. Rewards and compensations are
their lifestyle needs. As a company that promotes family values, offered on a merit basis, according to the employee’s performance.
we extend our employee benefits to the family members Rewards and benefits matters are overseen by the Group
especially on key aspects such as health and flexible working Rewards Team and respective HR representatives.
arrangement. By providing these benefits, we hope to journey
longer with the employees and retain our valuable talents within
the Group.

OUR PERFORMANCE
(GRI 401-2)

We offer comprehensive packages of benefits to our full-time employees to care for their overall well-being, such as healthcare,
insurance, leaves, as well as retirement benefits. The table below lists some of the key benefits offered:

Types of benefit Details

Leaves Annual Leave, No Pay Leave, Sick or Hospitalisation Leave, Marriage Leave, Paternity Leave, Maternity
Leave, Family Care Leave, Examination Leave, Compassionate Leave, Prolonged Illness Leave,
Replacement Leave

Flexi-Wellness Outpatient, Additional Pre and Post Natal Expenses, Annual Medical Check-up, Wellness Membership,
Optical, Dental, Vaccination

Allowance and Professional Membership Subsidy, Childcare Subsidy, Business Travel Reimbursement (BTR)
Subsidy

Insurance Group Term Life Insurance, Surgical and Hospitalisation Insurance, Personal Accident Insurance

Flexi-Work Staggered Working Hours, Flexi Time, Seasonal Flexi-Time, Flexi Place, Flexi Lunch Hours, Replacement
Arrangement Hours, Work from Home (WFH)

Others Car Park Facility, Retirement benefits, Bona Fide benefits, Employee Education Assistance

Full-time employees refers to those working on a permanent or contract basis with Gamuda only, excluding our joint ventures
and associate companies.

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LOCAL COMMUNITIES

WHY IT MATTERS Kuala Langat North Forest Reserve – As an adjacent landowner,

(GRI 413-1) (GRI 103-1) we have committed towards the funding and resources to the
rehabilitation of the Kuala Langat North Forest Reserve that
As a socially responsible corporate citizen, Gamuda supports covers about 2,372 acres of peat swamp forest. This is aimed
local communities. We aim to create social value to the local at arresting the further degradation of the site to preserve the
communities by fostering collaboration or partnership across biodiversity of this natural resource that is of significance to
sectors with government, media and community members. We rare animal species such as the Malayan Sun Bear and Leopard,
believe this will lead to a more equitable and inclusive solution as well as the Orang Asli communities.
in delivering a positive impact to society.
The Peatland Water Management and Forest Rehabilitation
Communities where we operate are critical to our long-term work is implemented in partnership with NGO Global Environment
success while our operations can affect these local stakeholders. Centre, the Selangor State Forestry Department and the Orang
It is our aim to sustain, support and develop the local communities Asli Development Department. The objectives of this programme
through education, development programmes, environmental are to establish a local community group to help in forest
conservation and sustainability advocacy. patrols in the prevention of fire, to support the implementation
of the Forest Fire Management Plan, and to create awareness
among primary school children in peat swamp forest conservation.
HOW WE APPROACH IT, OUR PERFORMANCE
(GRI 413-1) (GRI 103-2) (GRI 103-3)
Junior Peatland Forest Ranger and Peatland Forest Ranger
We actively engage the indigenous children, families and Programmes – Together with BOH Plantation, we have invested
communities to tap their expertise and knowledge with the in the Junior Peatland Forest Ranger and Peatland Forest
natural habitat of flora and fauna in our biodiversity conservation Ranger Programmes, aimed at educating students on peat
works, while offering them education and employment opportunity swamp forest. A total of 126 students and 25 teachers from
in return to effectively reduce the disadvantage faced by the various schools in Kuala Langat, Hulu Selangor and Kuala
aboriginal people in Malaysia. Selangor districts benefitted from these programmes.

Our approach to engaging and supporting indigenous people is International Day for Biological Diversity 2020 – Gamuda Parks
articulated in several programmes, which seek to ensure our collaborated with Think City for the first time in its digital
relationship contribute to their economic empowerment, social campaign due to the ongoing COVID-19 pandemic. The campaign
development needs, and cultural well-being. saw a total of 1048 participants.

Orang Asli (indigenous) Temuan Villages – we encourage the Face masks production to support indigenous and underprivileged
enhancement of the craft and skills, and preservation of communities – We collaborated with The Asli Co in making and
traditional knowledge for medical and plant gardening with the distributing 500 reusable cotton face masks to the Orang Asli
five Orang Asli Temuan Villages that are located within the and homeless communities.
vicinity of our developments – Gamuda Cove and Paya Indah
Discovery Wetlands.

Wild Tree Seed Bank – a project jointly conducted with native

communities towards the propagation of tree species at Gamuda
developments. Wild tree seeds are collected in an ex-situ
conservation nursery site at Pulau Kempas, Dengkil. Using the
traditional knowledge and experiences from the native
communities, tree species are identified for conservation, with
saplings then planted at our developments and arboretum to
support Gamuda Parks’ policy of planting more than 50 percent
of native trees at our project sites.

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PRESERVING TRADITIONAL
KNOWLEDGE
FOR MEDICINAL PLANT GARDENING
A knowledge transfer workshop for
medicinal plant gardening, benefitting
community in terms of food security NATIONAL POLICY ON
BIOLOGICAL DIVERSITY
GOAL 5
“We have improved the
UPSKILL TRAINING
LOCAL COMMUNITY ENGAGEMENT

capacity, knowledge and

OF TEMUAN WOMEN skills of all stakeholders to
Training provided to women from the conserve biodiversity”
Temuan Orang Asli community to sew
and sell reusable face masks

of reusable face masks

500 pieces to native communities
and homeless

WILD TREE SEED BANK

CONSERVATION OF TREE SPECIES NATIONAL POLICY ON
Propagation of tree species with BIOLOGICAL DIVERSITY
conservation value GOAL 3
“We have safeguarded all
our key ecosystems, species
Melicope lunu-akenda preserved and
2000 procured for Gamuda Cove
and genetic diversity”

Engagement with native community Procuring of Melicope Lunu Akenda in nursery Making of reusable mask

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INITIATIVE
QLASSIC

Quality Assessment System in Construction (QLASSIC) QLASSIC Scores

is a voluntary third party assessment with CIDB to
evaluate the workmanship of a building construction 85%
based on the Construction Industry Standard (CIS7:2014). 78%
QLASSIC enables the quality of workmanship between 76% 75%
73%
construction projects to be objectively compared
through a scoring system. In FY2020, our Gamuda Land
HighPark Suites received the QLASSIC certification with
a score of 75 percent.
The Robertson – Phase 1 (Tower 1) The Robertson – Phase 2 (Tower 2 & 3)
RSKU Jade Hills Gamuda Walk HighPark Suites

STAR GOLDEN HEARTS AWARD (SGHA)

Since 2016, we have contributed more than RM4 million to The nominations cut across all categories ranging from
the annual Star Golden Hearts Award and Gamuda Inspiration individuals, NGOs, social enterprises and companies. The
Award a joint initiative by The Star, Star Foundation, and range of benevolent, public-spirited and altruistic causes
Yayasan Gamuda to celebrate the work of unsung heroes include education, environment and social purposes. The
who go the distance in helping those in need irrespective charitable initiatives involve employment, entrepreneurship,
of race, culture and religion. This is reflective of the values youth empowerment, digital literacy, waste management,
we hold dear as an organisation to galvanise and recognise nature conservation, urban agriculture, ecotourism, community
an entire ecosystem of humanitarian and inclusive initiatives. welfare for the homeless and urban poor, disabled with
special needs, water and sanitation in rural and indigenous
Every year, the number of nominations received increases communities, and animal welfare.
double fold. In 2020, more than 500 nominations were
received. This is a reflection of the growing humanitarian Each year, 10 outstanding individuals or groups are chosen
ecosystem in Malaysia over the years when we received 100 as award winners and among them a Gamuda Inspiration
nominations when SGHA first started in 2016. Award winner will be selected to receive a grant of RM50,000
in contribution towards their cause. This resonates with our
goal in empowering community-building efforts that leave
a positive impact on the lives of others through socio-
economic development.

2019 2017
Sujana Mohd Rejab Barefoot Mercy
Makes 3D-printed Provides electricity and
prosthetic limbs for education support to
disabled children; enabling improve quality of life in
them to have equal access
rural Sarawak.
to a quality life with dignity.

2018 2016
UmieAktif Kedai Jalanan
Empowers underprivileged Set up ‘Kedai Jalanan’, a
mothers in Chow Kit through pop-up store to clothe the
sewing and crafting skills. homeless with dignity.

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INITIATIVE
INTERNATIONAL WOMEN’S DAY

On 6 March 2020, we organised an event for our employees At present, 33 percent of the board is made up of women,
at Menara Gamuda to mark the International Women’s Day, who constitute the board. While we are supportive of equal
a global day in celebration of the social, economic, cultural opportunity for women’s participation in the labour force
and political achievements of women. through family-friendly employment policy and facilities,
continual participation remains the most critical workplace
At Gamuda, we strongly believe in the power of harnessing issue. Currently 31 percent of the workforce in Gamuda
the potential of women and we are dedicated in providing comprises of women, compared to 29 percent in 2019.
all the support we can to help keep women in the workforce
while they strive to raise a family at the same time. Gamuda The highlight of the event during the International Women’s
is committed to invest in our employee to go on contributing, Day this year was the “Stay On, Everyone Wins” forum that
move up the corporate ladder and be eligible for decision- we hosted, aimed at building awareness on empowering
making roles in the boardroom – and we want them to do women at workplace and its significance. Featuring Malaysia’s
so deservingly, on their own merits. longest-serving Minister of International Trade and Industry
Tan Sri Rafidah Aziz, the forum discussed how, in more
recent decades, gender gaps at work were found to have
been based on women’s own decisions that were influenced
by social norms rather than a result of overt discrimination.

Family
43%
Women on
31%
Women in the
friendly
employment policy
Board workforce and facilities

GAMETIZE

As the Group continues to further drive Gametize is a flexible learning platform that
digitalisation, Gamuda’s Talent Management can be customised for any training topic,
is leveraging on technology to facilitate which is especially useful during the year
knowledge and skill development among our when social distancing have affected physical
employee by utilising a mobile learning training plans. Gametize uses online quizzes,
gamification application called Gametize. diagrams and flashcards to entice learners
to complete challenges toward defined
learning objectives.
Classroom training is no longer the only
way to learn and acquire skills, and
The Gametize way of e-learning in bite-sized
gamification is the latest and more interesting
modules that takes only 10-15 minutes to
way to learn. Gamification is well-suited for
complete has proven to be popular not only
today’s learners who have grown up with
among the younger audience, but also among
technologies and want strong engagement
the tech-savvy seniors in Gamuda.
while learning, as the game-based mechanics
and aesthetics motivate action and problem
solving.

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INITIATIVE
WOMEN IN ENGINEERING
While engineering is a male-dominated profession, Gamuda We also seek to retain more female employees in the
is dedicated to shake up the perception and diversify its workforce through a host of benefits under the
workforce with a more gender-balanced talent pool. We Women@Work initiative, offering options to women to raise
constantly offer opportunity and encourage women to take their family amid career development such as extended
up roles that are traditionally occupied by men, and we are maternity leave and Flexi Work Arrangement to accommodate
proud to know many women who took up the challenge to the needs of working mothers.
persevered and excelled in the tasks assigned to them.
From a specialty instructor who conducts fire safety training
for all site workers working underground at the MRT Kajang
Line, to a site engineer who was promoted to become the
Section Head of KLCC East underground station, we have
groomed many female workers who excelled in the engineering
roles along with their male counterparts.

To further increase female participation in our workforce,

we have started the Gamuda Women Empowerment Network
(GWEN), aimed at providing women a support network to
help advance their careers. Through GWEN, we hope to
encourage more women participation especially at managerial
Increase
female
and senior levels. We want to educate our workforce in removing Encourage more
cultural impediments about women in leadership positions as
well as discuss the types of policy measures needed to promote participation in
women
participation
more diversity and inclusion in the workplace. our workforce

PANDEMIC PREPAREDNESS

COVID-19
Gamuda adhered to all regulations and guidelines issued by
the Malaysia Government in response to the COVID-19 outbreak
to safeguard our employees and communities from the disease.

Malaysia entered a period of Movement Control Order (MCO)

from March 18 to May 4, when almost all businesses and
economic activities were halted and people were ordered to
stay at home under the Government’s directive. This followed
by Conditional Movement Control Order (CMCO) from May 4 to
June 9 with more relaxed regulations following a decline in personnel from the Group Human Resources and Admin, Group
COVID-19 cases in the country. Most economic sectors and Corporate Communications and Sustainability, and the Quality,
activities were allowed to operate during this time with strict Safety, Health and Environment (QSHE) departments, while the
adherence to business standard operation procedures (SOPs) Board aided the management as appropriate. We had also
such as social distancing and keeping patrons’ contact details revised the Emergency Response Plan and included COVID-19
for tracing purposes. Movement restrictions in Malaysia were as a potential emergency.
further relaxed under the Recovery Movement Control Order
(RMCO) phase between June 10 and December 31. Gamuda responded to the Government’s directives with several
key measures, mainly related to the establishment of a process
A special committee was set up to handle the pandemic, which related to testing and contact tracing to ensure that early
consists of the COVID-19 Steering Committee headed by the detection of COVID-19 can be done to prevent further spread
Managing Director of Gamuda Engineering Sdn Bhd, the COVID-19 of the virus. Centralised Quarantine Quarters (CQQ) were set
Working Committee, Business Unit and Project Task Force. The up to serve as facilities to quarantine Patients Under Investigation
COVID-19 response plan is chaired by the Group Managing (PUIs) while they wait for confirmation on the COVID-19 status.
Director through a Steering Committee for business resumption, We had also introduced testing approaches such as RT-PCR
led by the Managing Director of Gamuda Engineering and the and Antibody RTK tests, and redesigned the Centralised Labour
CEO of Gamuda Land. The Working Committee consist of Quarters (CLQ).

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PANDEMIC PREPAREDNESS

We have set up our RT-PCR testing facility to enhance our premises. We are in 100 percent compliance with the Government
COVID-19 control measures to bolster infection prevention while guidelines at both Menara Gamuda and our project sites.
mitigating the risk of the spread of the virus within our workforce. Gamuda’s commitment in adhering to the SOPs has helped our
This in turn will support our business continuity plan. Our project sites obtain the approval from the Ministry of International
internal testing process is not intended to replace the Ministry Trade and Industry (MITI). Special approval was granted to
of Health’s RT-PCR test, but rather to support the Group’s continue works at selected MRT Underground sites during the
operations by preventing downtime and cost through the rapid MCO with stringent adherence to precautionary safety measures
establishment of any potential infection cases promptly. In the and a limited workforce, as tunnelling works could not be
event of an internal test turned out to be COVID-19 positive, we temporarily halted due to public safety risk.
would follow the usual practice of sending the case to a MOH
Accredited Laboratory for due process. In such an event, we will We are cognisant of the need to take care of the mental
be better prepared for the eventual outcome and this will enable well-being of our employees due to the prolonged MCO period.
us to take speedy action to prevent spread through isolation Action was taken to organise sharing sessions online for all
employees on a frequent basis to help ease the effect of
Other preventive measures put in place include having our isolation. Throughout this period, we have boosted internal
employees working from home at the beginning of movement communications through Workplace and other platforms to
restriction period, while facilitating social distancing at our keep our employees updated about the pandemic.

No. of RTK Test conducted – 72,495 (as of July 2020)

No. of RT-PCR conducted – 19,495 (as of July 2020)

Objectives:
COVID-19 PREVENTIVE To prevent spreading of COVID-19 pandemic at our workplace and to support
MEASURES BY GAMUDA government initiatives in fighting the COVID-19 pandemic

Develop procedures and work instruction on COVID-19 preventive measures

Establish CQQ at every CLQ

UPSKILLING AND RESKILLING MALAYSIANS

ENABLING ACADEMY We are aware of the tremendously positive impact this programme
could bring to the society and we aim to share our experience
Over the years, Gamuda has benefitted from the dedication and
more widely. To facilitate the replication of more ETPs
hard work of many talented Malaysians who chose to build
nationwide, EA has developed and published a Trainer’s Manual,
their career with us. This contributed to the Group’s success
the first in Malaysia that is used by the EA team to conduct
and market-leading position we enjoy today. Gamuda is
Course I (Personal Development for Career Sustainability) and
determined to contribute back in building the community that
Course II (Job Skills Development).
built us, by making our growth more sustainable and our
success more inclusive.
These courses are useful to help equip job seekers on the
autism spectrum, in particular those with high-functioning
This vision has led us to launch the Project Differently-Abled
autism, for sustainable employment. Nevertheless, the concept
in 2013, which resulted in the Group’s hiring of 20 employees
and contents of EA ETP can be adapted to suit the needs of
with autism. The project was also a precursor to the establishment
youths in general to prepare them as they transition to life
of the Enabling Academy (EA) in 2017, aimed at preparing more
after school and employment. As such, the Trainer’s Manual
people with autism for gainful and sustainable employment.
works as a guide and resource book for special education
teachers, vocational trainers and job coaches for persons with
The Enabling Academy seeks to achieve this mission through
disabilities and other youths in general.
an Employment Transition Programme (ETP) that trains and
places young adults on the autism spectrum into companies
The EA team is planning a nationwide outreach to share the
that embrace diversity and inclusion in their workforce. The
EA ETP manual to the relevant educators, practitioners and job
three-month programme sponsored by Yayasan Gamuda
coaches to enhance their existing programme to better equip
comprises two courses designed to equip trainees with the
these youths to achieve sustainable employment and independent
relevant soft skills and practical job training that are essential
living.
for employability.

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UPSKILLING AND RESKILLING MALAYSIANS

No. of EA Graduates
Current Partner Companies
Employed

DRB-HICOM Bhd
CIMB Bank Berhad
Agrifert Malaysia Sdn Bhd
Macro Dimension Concrete Sdn Bhd
Feruni Ceramiche Sdn Bhd
Brick Dotcom Sdn Bhd
Hap Seng Land Sdn Bhd
Gamuda believes that employment is particularly challenging SalesCandy International Sdn Bhd
for people with autism because societal institutions like SalleWan Property Management Sdn Bhd 27
workplaces, organisations and tertiary institutions are often not Maran Road Sawmill Sdn Bhd
ready or lack the willingness and ability to engage with persons
with disabilities as full employees and citizens of society. We UNIQLO Malaysia Sdn Bhd
want to help raise the awareness that society are in it together HSBC Electronic Data Processing
to tackle this challenge and we need to embrace persons with (Malaysia) Sdn Bhd
disabilities in ways that acknowledge their potential. OCBC Bank (Malaysia) Berhad
Nehemiah Reinforced Soil Sdn Bhd
According to Professor Dan Goodley, Co-Director for iHuman
at the University of Sheffield in the U.K., many people in the Roche (Malaysia) Sdn Bhd
world adopted a deficit perspective about persons with disabilities United Overseas Bank (Malaysia) Bhd
which views them as lacking, lowered in capacity and unable
to act as full members of society. This view is wrong as it does Gamuda Group
not recognise the potential of persons with disabilities and
Gamuda Berhad
those with autism to work just like other colleagues when
offered specific kinds of support in their activities as employees. Gamuda Engineering Sdn Bhd
6
MMC Gamuda KVMRT (T) Sdn Bhd
However, we all need help at work and none of us can do our Gamuda Trading Sdn Bhd
jobs in isolation. With that view in mind, EA had designed a
series of activities that seek to put in place the support needed Self-Employed
by employees with autism, focusing on capacity building. This
Caryn Personal Care Sdn Bhd
approach assumes competence on the part of individuals with
autism and persons with disabilities in general. (Family business)
Snack Stall at Damansara Jaya
3
We hope that through supporting people with autism into work, Food Court
we are also respecting and promoting a diverse workforce that Vegetable Supplier (Provide dispatch
is positive and in turn contribute towards building a more service)
inclusive and sustainable organisation. Our efforts with EA and
the Trainer’s Manual is aligned with UN Sustainable Development Total 36
Goal 4 (Quality Education), 8 (Decent Work and Economic
Growth), and 10 (Reduced Inequalities). Awareness Sessions for Companies from 2017 – July 2020

Our Impact No. of FY2020 FY2019 FY2018 FY2017 Total

Public Awareness
Outreach on the
150 Companies Sessions 5 33 31 28 97

Employability of 1,963 Local Communities Participants 102 639 367 238 1,346
persons with autism
by Enabling Academy 2,235 Gamuda Employees
Companies 4 60 58 28 150

All data are since 2017

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UPSKILLING AND RESKILLING MALAYSIANS

TUNNELLING TRAINING ACADEMY About 1,000 trainees have been trained at TTA and worked
in MRT Kajang Line, of which 30 percent of the workforce
Gamuda has accumulated years of deep experience and
are from Sabah and Sarawak. Training at TTA focuses on
highly specialised knowledge in tunnelling works through
the operation and maintenance of the Variable Density TBM
the various underground construction jobs in the Klang
(VD TBM) that was jointly developed by Gamuda and the
Valley and abroad. Our tunnel building track record includes
TBM supplier, Herrenknecht from Germany, to meet the
the world’s first dual-purpose Storm Water Management
complex geological conditions in the Klang Valley.
and Road Tunnel (SMART), the Western Kuala Lumpur
Traffic Dispersal Scheme (SPRINT), the Electrified Double
TTA students first undergo theory and simulator training at
Track Project (Ipoh – Padang Besar), Kaohsiung Metropolitan
the academy in Kota Kemuning, Shah Alam, and they will
MRT in Taiwan, the Klang Valley Mass Rapid Transit (KVMRT)
subsequently be posted to KVMRT job sites including Cochrane,
Kajang Line, as well as the Putrajaya Line which is under
Bandar Malaysia, Titiwangsa, and Chan Sow Lin. Some are
construction.
also posted to Malaysia’s first TBM Refurbishment Plant
located in Pusing, Ipoh.
Social sustainability is an important aspect of these mega
infrastructure projects we embarked on in Malaysia, and we
The training modules, which take up to 16 weeks for specialist
believe these specialised skillsets must be passed on to
training, cover TBM operation, tunnel electrical application,
empower and enrich a new generation of youths, so as to
ring building, cutting disc changing, to bi-component grouting
help develop the local workforce in support of the country’s
and will equip graduates for roles ranging from assistant
aspiration to move up the value chain.
TBM operator, erector operator, tunnel mechanic and
electrician, to tunnel crew.
With this in mind, the Tunnelling Training Academy (TTA)
was set up by the joint venture between Gamuda and MMC
A significant number of TTA graduates were later promoted
Corp in 2011 during the construction of the MRT Kajang
to become electricians, mechanics, operators and supervisors,
Line to address the shortage of a competent workforce for
in line with Gamuda’s objective to upskill Malaysians and
tunnelling works. Aimed at producing highly skilled workforce
providing them with career growth opportunities.
in the local tunnelling works, RM10 million was invested to
set up the academy in Shah Alam, Selangor to meet the
Beyond Malaysia, tunnel-related expertise is a field that has
need for the construction of the KVMRT project. An additional
a huge demand globally. TTA constantly collaborates with
RM2 million a year is spent on the operations of the TTA.
leading international players such as Siemens and Bosch
to ensure only the best solutions are deployed to deliver
The establishment of TTA, the world’s first learning institution
our tunnelling jobs. For instance, TTA collaborated with
specialised in Tunnel Boring Machine (TBM) technology,
Siemens to localise a course on Programmable Logic
helps reduce Malaysia’s dependence on foreign labour for
Controller (PLC) module for tunnel electricians. This is an
construction projects, fulfilling the country’s requirements
important course as mastering the PLC is akin to controlling
for skilled labour for upcoming infrastructure projects. This
the brains of the TBM and tunnel electricians will be better
specialised and niche training also elevates the standard of
equipped to understand all the mechanisms that control the
the national technical and vocational training and education
VD TBM. TTA also invested in Bosch training facilities through
(TVET) initiative, making it on par with other specialisation
the VD TBM’s electro-hydraulic system to train tunnel
globally.
mechanics on the mechanical and hydraulic components of
the TBM.
TTA works closely with the Education Ministry, Human
Resources Ministry, the Youth and Sports Ministry and leading
To replicate the success of TTA while supporting Gamuda’s
TVET institutions in the country such as Institut Latihan
expansion into the Australian infrastructure market, plans
Perindustrian (ILP) and Akademi Binaan Malaysia (ABM) to
are underway to set up a TTA in Sydney to provide transferrable
select the graduates to join our training.
skills to the workforce for the benefits of the industry.

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TUNNELLING INNOVATION ROADMAP

A proven track record of continuous innovation in construction, particularly within our niche of tunnelling with a highly skilled
talent pool armed with digital skills and diverse supply chain.

SMART TUNNEL PRECAST SFRC TECHNOLOGY LOCAL TBM REFURBISHMENT

Listed by Cable News Pioneers of Steel Fibre Reinforced Partnered local engineering SMEs to
Network, CNN as one of the Concrete (SFRC) technology in the set-up a facility to refurbish eight Kajang
world’s Top 10 greatest region for precast tunnel segment Line TBMs for the upcoming Putrajaya
tunnels, SMART is the world’s production offering increased Line utilising over 70 percent locally
first traffic and stormwater productivity and improved manufactured parts, offering cost savings
management tunnel built with durability benefits. Upskilled four to the Government and upskilling our
the largest TBM in South East local precast SMEs. local workforce in the process.
Asia at the time.

2011
2002 2013 2016
TUNNELLING TRAINING ACADEMY VARIABLE DENSITY (VD) TBM
The world’s first tunnelling academy The VD TBM is a multimode TBM
set-up to produce a highly skilled designed specifically to address the
local workforce which has provided unique challenge of tunnelling in KL’s
Technical and Vocational Education, notoriously difficult karstic limestone
and Training (TVET) to 1,000 geology. It is a culmination of our
Malaysian tunnellers reducing our lessons learnt from the SMART project
reliance on foreign expertise. in 2004 and was the key contributor to
safe tunnelling on the MRT Kajang Line
.

TECHNICAL INNOVATION
OF THE YEAR AWARD 2014
International Tunnelling &
Underground Space Association
London, UK

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>RM40 million
2,400+
Upskilled Direct R&D Investment 3 International
Innovation Awards

DIGITAL CONSTRUCTION TUNNEL COMMAND CENTRE WEB 3D GLOBAL INFORMATION

SYSTEM (GIS) PORTAL
Digitalisation of processes for a Integrated tunnel construction and
paperless workflow with crisis management centre utilising Integration of drone and BIM assets
construction data and information cloud technology for 360° awareness onto a common web platform.
housed on a Common Data and real-time connectivity to all Digitising the construction landscape
Environment (CDE) as a single TBMs operating on the Putrajaya on the cloud was a first for the
source of truth accessible on mobile Line. region.
devices in real-time.

2018
DRONE SURVEYING SPEARHEADING BIM IN THE 2019
REGION AUTONOMOUS TBM (A-TBM)
Winner of Bentley Year in
Infrastructure 2019 Reality First main contractor in Malaysia to Our A-TBM was developed 100 percent
Modelling Award for novel use of be BIM Level 2 certified by a leading in-house by our local engineers and
drone surveying for BIM and GIS training and certification body, the utilises Artificial Intelligence (AI)
capture. British Research Establishment Control Algorithms to autonomously
(BRE). Established BIM Academy to operate the TBMs on the Putrajaya
train more than 1,000 professionals Line with proven tangible
in BIM utilisation. improvements in productivity, safety
and quality for tunnel construction.

TECHNICAL EQUIPMENT INNOVATION OF

THE YEAR AWARD 2019
International Tunnelling & Underground
Space Association Miami, USA

INNOVATION IN TUNNEL EXCAVATION OF

THE YEAR AWARD 2019
New Civil Engineer London, UK

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LOCAL IN-HOUSE DEVELOPMENT UTILISING KEY INDUSTRY 4.0 ENABLING TECHNOLOGIES

Creating a platform for driving continuous growth, increasing productivity, raising innovation capabilities and creating higher
skilled digital employment.

AUTONOMOUS TBM (A-TBM) TUNNEL INSIGHT

Upskilling and reskilling Artificial Big Data

existing and future labour Intelligence (AI) Analytics
pool need to be at the heart
of Malaysia’s transformation
Systems
Cloud Computing
Integration

I N D U S T R Y 4 . 0 E N A B L I N G T E C H N O L O G I E S
Inclusive involvement of
SMEs is critical to power a
holistic step up in labour
productivity across the
economy

Significant evolution in
• Winner of two international innovation • A cloud-based big data system currently
innovation capabilities and
awards and acclaimed as a “significant under development by our in-house
collaboration platforms is
milestone event in the history of innovation team. Utilises AI and machine
essential to foster the
underground construction for the world” learning to glean insights from TBM data
development of and access
by the International Tunnelling Association. for enhanced A-TBM performance,
to cost-effective technologies
increased 360° awareness and improved
that address specific sector • Our A-TBM system garnered global
risk management in tunnelling.
needs attention, cementing our position as one
of the leading innovative tunnelling • Works as an extension of our A-TBM
contractors internationally. technology offering predictive and
prescriptive analytics for actionable
• Developed 100 percent in-house by our
insights.
local engineers and uses AI control
algorithms to autonomously operate TBMs • Upskilling opportunities for our local
on the Putrajaya Line. Local tunnel software engineers to build big data lakes
operatives are upskilled as systems and pipelines with analytics in the Google
Good digital infrastructure is supervisors of the A-TBM system. Cloud Platform in tandem with AI and
required to enable reliable machine learning techniques.
and secure Industry 4.0
operations

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ROBACCA BIM-AR NEXT GEN 5G IOT

Autonomous Augmented Internet of

Robots Reality Things (IoT)

System
Cloud Computing Cloud Computing
Integration

I N D U S T R Y 4 . 0 E N A B L I N G T E C H N O L O G I E S

• Our ROBot Assisted Cutter Change • Winner of Malaysia Technology • Leveraging modern 5G networks to
Apparatus (ROBACCA) is a human Excellence Award – Augmented Reality deliver real-time monitoring of ground
assistive and autonomous robotic tool Category 2020. and building conditions, offering
which reduces the exposure of humans increased safety and reduced risk
• Developed by our in-house engineers
to dirty and dangerous tunnelling during critical tunnelling operations.
extending and mating our Building
environments. It represents the first
Information Modelling (BIM) technology • The large quantity of sensors, the scale
step towards fully automated
with Augmented Reality (AR). The of our projects and the criticality of
maintenance of TBMs.
generated 3D walkthroughs allow real- real-time information make this an
• ROBACCA is currently in the final time detection of clashes and errors ideal Internet of Things (IoT) use case.
prototyping phase and will move into onsite thus minimising rework costs Complementary data streams will be
beta testing soon. and enhancing collaboration. fed into our A-TBM and Tunnel Insight
systems.
• Design, development and prototyping • Upskilling of engineers and surveyors
have been carried out by our own utilising this system as part of their • Upskilling opportunities for software
in-house engineers and programmers construction workflow and further engineers to develop IoT and cloud
in partnership with local manufacturing enhancing our lead in our BIM based data pipelines and cultivation
and automation SMEs with 100 percent capabilities ahead of our competition. of local supply chain for IoT devices.
local fabrication and components.

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PROMOTING INNOVATION

The Malaysian invention of the A-TBM, designed by MMC Gamuda

KVMRT (T) Sdn Bhd, has landed us a number of prestigious
international awards in late 2019. These include the Technical
Product/Equipment Innovation of the Year award at the 2019
International Tunnelling and Underground Space Association
(ITA) Tunnelling Awards in Miami, Florida. The innovation also
received recognition at the Tunnelling Festival Awards in the
UK sponsored by the British Tunnelling Society in the category
of Innovation in Tunnel Excavation.

The A-TBM stood out as a new approach to tunnelling as the

world’s first automated system comprising custom artificial
intelligence control algorithms enabling autonomous control of
TBMs. The system analyses machine data in real-time and
assumes control of steering, advance, excavation and slurry
sub-systems with minimal human input. The overall result of
TUNNEL BORING MACHINE this autonomous TBM is safer tunnelling, which means improved
Gamuda strives to make lives better and the planet greener cost and programme efficiency. Our A-TBM has resulted in
through technology and innovation, and we always seek to push tangible benefits including faster response time and higher
the boundaries with design breakthroughs that would transform accuracy.
the industry. This is also aligned with the UN Sustainable
Development Goal 9, which aims for industry innovation and The idea of creating this autonomous TBM had stemmed from
infrastructure development to leave a positive impact on the the difficult terrains in the Klang Valley encountered during
society. the construction of the MRT Kajang Line. We had decided to
deploy the variable density tunnel boring machines (VDTBMs),
Our quest for excellence was yet again demonstrated through which was relatively new at the time. The VDTBMs are a mix
the technological advancement we made with key equipment between earth pressure balance and slurry machines where
used in our core business of constructing underground tunnels the density of slurry can be adjusted and are highly effective
as part of the public transport infrastructure – the tunnel boring as they can maintain pressure ahead of the cutter head through
machine (TBM). A TBM is used to excavate tunnels with a a variety of terrains. We would continue to utilise the same
circular cross-section through a variety of soil and rock strata. technology for the construction of the Putrajaya Line.

A vision from a young Malaysian tunnel manager that began Nevertheless, the concurrent construction of the Kajang Line
in 2015 during the construction of the MRT Kajang Line to and the beginning parts of the Putrajaya Line coupled with a
increase efficiency in the tunnelling work and to reduce risks, shortage of skilled personnel to operate the VDTBMs had
such as human error or erratic machine operation when eventually prompted us to try automating the steering of TBM
operating under the most sensitive conditions, has led to the to reduce the reliance on human operators. We subsequently
design of a TBM that could be operated with human oversight developed three sub-sytems beyond auto-steering, auto-advance,
rather than control. auto-excavation and auto-slurry – which means our automation
covers all main tasks of a TBM operator. We have progressively
An in-house working team was eventually formed in July 2018 applied our A-TBM technology to our VDTBMs working on the
and within four months, the algorithms for auto-steering were Putrajaya Line with success.
written, synchronised into TBM programmable logic controllers
(PLCs), and validated on a machine mining underneath a In addition to lowering the risks to human lives by automating
13-lane highway. Within a year, the system was expanded into the TBM system, the higher efficiency of the A-TBM as compared
three more major sub-systems of tunnelling. This Autonomous to the conventional TBM also helps reduce the greenhouse gas
TBM (A-TBM) system has been deployed on our TBMs currently emissions with less water and electricity consumption required
excavating 13.5km of twin running tunnels under the Kuala in its operation. That in turn contributes toward the global fight
Lumpur city centre. against climate change and is in line with the UN SDG 12
(Responsible Consumption and Production) as well as 13 (Climate
Action).

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PROMOTING INNOVATION

DIGITAL CONSTRUCTION WITH BIM, DRONES & GEOGRAPHICAL

INFO SYSTEM (GIS)
In this age of Fourth Industrial Revolution (Industry 4.0), the
advent of big data, Internet of Things, and artificial intelligence
and other enabling technologies have allowed for greater
innovations and efficiency in the ways infrastructure and homes
are built.

Gamuda has been at the forefront of embracing and spearheading

technology to transform and innovate our products and services
to stay ahead, and one of the more significant digitalisation we
adopted in our construction processes is the Building Information
Modelling (BIM) technology.

BIM is a computerised system that facilitates multi-stakeholder

coordination while allowing for greater precision and speed in Subsequently, the BIM platform allows the conceptualised 3D
the design and implementation of construction plans. BIM designs to be further developed by combining architectural,
integrates information and communicates real-time changes structural, mechanical, electrical and plumbing elements — all
where all design data is captured online on a collaborative within the cloud-based system allowing everyone working on
platform and all design clashes are resolved before construction. the project access to real-time updates. The seamless integration
It creates a model which contains digital description for every from design to construction is completed with digital manufacturing
aspect of the project, providing various benefits throughout the under Gamuda IBS (Industrialised Building System), whereby
entire project lifecycle. the virtual designs are turned into reality with robotics production
to make faster home-building at more affordable prices by
This leads to cost saving, increased productivity, and allows making the process more efficient and error free.
for better collaboration, communication, as well as risk mitigation.
As a Group, we are proud that the use of BIM, in combination
At our Klang Valley Mass Rapid Transit construction sites, with other Industry 4.0 technologies has propelled us on our
we use BIM tools such as Viewpoint for Projects and Fieldview efforts to contribute toward building a more sustainable future
for Common Data Environment (CDE) efforts. These BIM tools for both Gamuda and the future generations.
integrate into the Geospatial Information System (GIS) that
allows unified data in terms of access to information. This data In November 2019, our project joint venture MMC Gamuda
is presented on an interactive dashboard enabling decision KVMRT (T) Sdn Bhd beat two other finalists from Madinah and
making and construction progress updates to be more efficient. China to clinch the first place in the Reality Modelling Category
The entire digitalised process is aided by the use of other high- at the Year in Infrastructure Bentley Awards. The annual awards
technology tools such as laser scanning, drones, and Virtual programme honours the extraordinary work of Bentley Systems,
Reality. Incorporated, users worldwide for advancements in infrastructure
design, construction and operations and it was Gamuda’s second
The synergistic nature of the Group’s core businesses means time winning an award from Bentley Systems.
that we can leverage on the progress made in construction to
make our home-building processes more efficient as well. The MMC Gamuda presented our extensive use of multiple Bentley
BIM technology is also adopted by our property arm, Gamuda software, particularly that of Bentley Systems ContextCapture
Land, as part of its digitalisation plan to build smarter reality modelling software, to generate digital twins of our
developments for a sustainable living environment. construction sites in the MRT Putrajaya Line project. Using
drones to capture hyper-realistic visuals which are then overlaid
BIM is now incorporated into every stage of the property on BIM designs, MMC Gamuda has effectively reinvested
development at Gamuda Land. Starting at the feasibility study conventional surveying and regular site reporting with digitisation.
stage, information on the existing nature of a site is captured
and fed into the BIM platform, giving designers a greater
understanding of the proposed site and making better decisions
to develop it. By analysing this information, our designers will
then optimise each design and development to achieve higher
Green Building Index scores to fulfil the Group’s commitment
to make the urban environment more liveable and sustainable.

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COMMUNITY INVESTMENT

YAYASAN GAMUDA
Yayasan Gamuda was established in 2016 to oversee the Group’s
charitable efforts while ensuring all these initiatives are aligned
with Gamuda’s aspirations for community investments and
development. The foundation arm that focuses primarily on
educational aid and empowering social enterprises for community
improvement has year after year contributed to various impactful
causes, be it a Group initiative or an external movement.

These efforts invariably aligned with the United Nations’

Sustainability Development Goals 4 (Quality Education) and 6
(Clean Water and Sanitation).

Gamuda strongly believes in contributing back to build the

community that made us, and Yayasan Gamuda is our way to
institutionalise the efforts to reinvest the profits earned in areas
that will bring about significant social and economic difference
in the places we do business. for their cause. The winner for 2019 was Sujana Mohd Rejab,
whose efforts enabled physically impaired individuals to have
Every year, Yayasan Gamuda conducted three recurring anchor equal privileges and access to a quality life with dignity. Other
projects under its Local Community Engagement initiatives, past winners were UmieAktif (2018), a social enterprise project
namely the Gamuda Scholarship, Enabling Academy, and the which empowers underprivileged mothers in the Chow Kit area
Star Golden Hearts Award. through sewing and crafting skills; Barefoot Mercy (2017), which
brings light and builds schools in rural Sarawak; and Kedai
Since 1996, Yayasan Gamuda has invested RM44.7 million and Jalanan (2016), a pop-up store that clothes the homeless with
awarded 444 scholarships to outstanding Malaysian students dignity.
to complete their tertiary education every year at the best
universities in Malaysia, including at the local campus of foreign In addition to these anchor projects that were initiated, Yayasan
universities. We do this by awarding funds covering the course Gamuda also funds initiatives that meet our objectives for
fees and welfare of scholars, as well as engagement and community enhancement.
development activities throughout the funded period. In reflection
of the Group’s core businesses, scholarships are offered to Yayasan Gamuda adheres to several guiding principles to ensure
those pursuing engineering, quantity surveying, development that all initiatives we support are in line with the Group’s
and urban planning, property and real estate management, and aspirations for community investments. We want our projects
architecture. to be transformative and be able to uplift our beneficiaries with
real, effective change that would otherwise not have been
Gamuda has set up the Enabling Academy in 2017, aimed at possible. All our activities are sustainable in itself, as well as
preparing more people with autism for gainful and sustainable promote self-sustainability in the lives of the beneficiaries for
employment. The Enabling Academy conducts an Employment the longer term.
Transition Programme that trains and places young adults with
autism into partner companies that embrace diversity and We also wish to empower so our beneficiaries are able to
inclusion in their workforce. become independent and empowered to take control of their
own destiny. We strive to be inclusive, and Yayasan Gamuda
Yayasan Gamuda has been supporting the Star Golden Hearts activities need to promote inclusiveness in the community. To
Award since 2016. The event honours and celebrates the work make an impact, we focus on activities where we have the
of unsung Malaysian heroes who go the extra mile to help knowledge and commitment to make a meaningful difference.
those in need irrespective of race, culture and religion, which We promote partnership, as we believe that being co-participants
are the values we hold dear as an organisation. The award with the beneficiaries in the change process will encourage
serves as an encouragement for increasingly more Malaysians and promote ownership for both parties.
to rise and become better citizens. Each year, ten (10) individuals
or groups are chosen as award winners, and out of the 10, a Lastly, we want to ensure our target projects are in line with
Gamuda Inspiration Award winner is chosen to receive RM50,000 the UN Sustainable Development Goals 4 and 6.

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Limited Assurance
Statement
Independent Limited Assurance Statement to the Management and Directors of Gamuda Berhad

Our Conclusion:
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that
causes us to believe that the Subject Matter as presented in Gamuda Berhad’s FY2020 Sustainability Report have not been
prepared and presented fairly, in all material respects, in accordance with the Criteria defined below.

Scope of Work
Ernst & Young PLT (“EY” or “we”) have been engaged by Gamuda Berhad (“Gamuda”) to perform limited assurance in accordance
with the International Standard on Assurance Engagements (“ISAE”) 3000 Revised, Assurance Engagement other than Audits or
Review of Historical Financial Information, over selected key performance indicators (“KPIs”) included in Gamuda’s FY2020
Sustainability Report (“SR2020”) for the financial year ended 31 July 2020.

Subject Matter
Our limited assurance engagement was performed for the selected KPIs listed in the table below, as presented in the SR2020:

Material GRI Standards

Matters 2016 Selected KPIs Scope

Biodiversity Non-GRI Percentage of Percentage of landscape area for the following projects:
landscape areas
1. Kota Kemuning 8. Horizon Hills
2. Valencia 9. Bukit Bantayan
3. Bandar Botanic 10. twentyfive.7
4. Madge Mansions 11. Kundang Estates
5. The Robertson 12. Gamuda Gardens
6. HighPark Suites 13. Gamuda Cove
7. Jade Hills

Innovation GRI 404-2(a) Type and scope of Type and scope of programs implemented and assistance provided
programs implemented to upgrade employee skills for the following programs:
and assistance 1. Building Information Modelling (BIM) Academy
provided to upgrade
2. Gamuda Plant Operator School (GPOS)
employee skills
3. Construction Training Unit (CTU)
4. Tunnelling Training Academy (TTA)

Safety and GRI 403-2 Types of injury and Types of injury and rates of injury for the following:
Health injury rate (IR) 1. 36 stations for MRT Putrajaya Line (27 elevated, 9 underground)

Supply Chain GRI 204-1(a) Proportion of spending Percentage of the procurement budget used for significant locations
Management on local suppliers of operation that is spent on suppliers local to that operation for
the following:
1. Gamuda Group developments within Malaysia (excluding joint
ventures)
2. MRT Putrajaya Line

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The scope of our work was limited to the selected KPIs presented A limited assurance engagement undertaken in accordance
in the SR2020 and did not include coverage of data sets or with ISAE 3000 involves assessing the suitability in the
information unrelated to the data and information underlying circumstances of Gamuda’s use of the criteria specified as the
the selected KPIs and related disclosures; nor did it include basis of preparation used for the selected KPIs and related
information reported outside of the SR2020, comparisons against disclosures presented in the SR2020, assessing the risks of
historical data, or management’s forward-looking statements. material misstatement thereof, whether due to fraud or error,
responding to the assessed risks as necessary in the
Criteria circumstances, and evaluating the overall presentation of the
selected KPIs and related disclosures in the SR2020.
The Criteria for our procedures are:
• The Global Reporting Initiative (“GRI”) Sustainability Reporting Summary of Procedures Performed
Standards 2016; and
A limited assurance engagement is substantially less in scope
• Gamuda’s relevant policies and procedures
than a reasonable assurance engagement in relation to both
risk assessment procedures, including an understanding of
Gamuda’s Responsibility
internal control, and the procedures performed in response to
The management of Gamuda is responsible for the collection, the assessed risks. The procedures we performed were based
preparation, presentation and implementation of the Subject on our professional judgement and included inquiries, observation
Matter in accordance with the Criteria; and for implementing of processes performed, inspection of documents, analytical
appropriate risk management, internal controls and maintaining procedures, evaluating the appropriateness of quantification
of records in respect of the Subject Matter so that it is free methods and reporting policies, and agreeing or reconciling
from material misstatement, whether due to fraud or error; with underlying records.
and making estimates that are reasonable.
Our procedures included, but were not limited to:
Our Independence and Quality Control • Gaining an understanding of Gamuda’s business, internal
We have complied with the independence and other ethical processes and approach to sustainability
requirements of the Code of Ethics for Professional Accountants • Conducting interviews with key personnel and collating
issued by the International Ethics Standards Board for evidence to understand Gamuda’s process for reporting
Accountants, which is founded on fundamental principles of performance metrics and disclosures, including inquiring
integrity, objectivity, professional competence and due care, regarding risks of misstatement and quality controls to
confidentiality and professional behaviour. address risks
• Conducting limited assurance procedures over the selected
Our firm applies International Standard on Quality Control 1 KPIs and disclosures, including:
and accordingly maintains a comprehensive system of quality
− Undertaking analytical procedures to support the
control including documented policies and procedures regarding
reasonableness of the metric data
compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements. − Checking that the calculation Criteria have been applied
as per the methodologies for the selected KPIs within
Our Responsibility the report
− Identifying and testing assumptions supporting calculations
Our responsibility is to perform our limited assurance engagement
to express our conclusion on whether anything has come to − Testing, on a sample basis, underlying source information
our attention that causes us to believe that the selected KPIs to check accuracy of the metric data
and related disclosures as presented in the SR2020 are not − Performing recalculations of performance metrics using
prepared, in all material respects, in accordance with the input data
Criteria. − Checking that measurements made at the end of the
reporting period are timely entered in the records and
We have performed our limited assurance engagement in the sustainability report
accordance with the terms of reference for this engagement
agreed with Gamuda, including performing the engagement in We believe that the evidence obtained is sufficient and appropriate
accordance with the ISAE 3000, issued by the International to provide a basis for our limited assurance conclusions.
Auditing and Assurance Standards Board. This Standard requires
that we plan and perform our engagement to obtain limited
assurance about whether the selected KPIs and related
disclosures as presented in the SR2020 are free from material
misstatement.

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Limited Assurance Other Matters

Procedures performed in a limited assurance engagement vary Information relating to prior reporting periods has not been
in nature and timing from, and are less in extent than for, a subject to assurance procedures. Our report does not extend
reasonable assurance engagement. Consequently, the level of to any disclosures or assertions relating to future performance
assurance obtained in a limited assurance engagement is plans and/or strategies disclosed in the SR2020. The maintenance
substantially lower than the assurance that would have been and integrity of Gamuda’s website is the responsibility of
obtained had a reasonable assurance engagement been Gamuda’s management. Our procedures did not involve
performed. Our procedures were designed to obtain a limited consideration of these matters and, accordingly we accept no
level of assurance on which to base our conclusion and do not responsibility for any changes to the selected KPIs and related
provide all the evidence that would be required to provide a disclosures, the SR2020 or to our independent limited assurance
reasonable level of assurance. report that may have occurred since the initial date of presentation
on the Gamuda’s website.
While we considered the effectiveness of management’s internal
controls when determining the nature and extent of our Restriction of Use and Liability
procedures, our assurance engagement was not designed to
Our work has been undertaken to enable us to express a limited
provide assurance on internal controls. Our procedures did not
assurance conclusion on the matters stated above in our report
include testing controls or performing procedures relating to
provided to the management and directors of Gamuda in
checking aggregation or calculation of data within IT systems.
accordance with the terms of our engagement, and for no other
purpose.
Inherent Limitations
Inherent limitations of assurance engagements include use of Our report is intended solely for the management and directors
judgement and selective testing of data, which means that it of Gamuda and should not be used by any other parties. To
is possible that fraud, error or non-compliance may occur and the fullest extent permitted by the law, we do not accept or
not be detected in the course of performing the engagement. assume liability to any party other than the directors of Gamuda,
Accordingly, there is some risk that a material misstatement for our work, for this report, or for the conclusion we have
may remain undetected. Further, our limited assurance reached.
engagement is not designed to detect fraud or error that is
immaterial. We agree to the publication of this assurance report in the
SR2020 for the financial year ended 31 July 2020, provided it
There are additional inherent risks associated with assurance is clearly understood by recipients of the SR2020 that they
engagements performed for non-financial information given the enjoy such receipt for information only and that we accept no
characteristics of the subject matter and associated with the duty of care to them whatsoever in respect of this report.
compilation of source data using definitions and methods for
determining, calculating, and estimating such information that
are developed internally by management. The absence of a
significant body of established practice on which to draw, allows
for the selection of different but acceptable measurement
techniques which can result in materially different measurements Ernst & Young PLT
and can impact comparability. The precision of different 202006000003 (LLP0022760-LCA) & AF 0039
measurement techniques may also vary. Qualitative interpretations
of relevance, materiality and the accuracy of data are subject Kuala Lumpur, Malaysia
to individual assumptions and judgements. In particular, where 22 October 2020
the information relies on factors derived by independent third
parties, our assurance work has not included examination of
the derivation of those factors and other third-party information.

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GRI Content Index

GRI Page GRI Page
Disclosure Disclosure
Standards Reference Standards Reference

ORGANISATIONAL PROFILE REPORTING PRACTICE (CONT’D.)

GRI 102-1 Name of the organisation Front cover, GRI 102-48 Restatements of information –
Back cover
GRI 102-49 Changes in reporting –
GRI 102-2 Activities, brands, products and 6-7
GRI 102-50 Reporting period 61
services
GRI 102-51 Date of the most recent report 61
GRI 102-3 Location of headquarters Back cover,
5 GRI 102-52 Reporting cycle 61
GRI 102-4 Location of operations 2-3 GRI 102-53 Contact point of questions regarding 61
the report
GRI 102-5 Ownership and legal form 6-7
GRI 102-54 Claims of reporting in accordance with 61
GRI 102-6 Markets served 2-3
the GRI Standards
GRI 102-7 Scale of the organisation 19, 108
GRI 102-55 GRI content index 130-131
GRI 102-8 Information on employees and other 108, 110 GRI 102-56 External assurance 127-129
workers
DISCLOSURE: DIRECT ECONOMIC VALUE GENERATED AND
GRI 102-9 Supply chain 62, 85 DISTRIBUTED
GRI 102-10 Significant changes to organisation and – GRI 103-1 Explanation of the material topic and 84
its supply chain its boundary
GRI 102-11 Precautionary principle or approach – GRI 103-2 The management approach and its 10-17,
GRI 102-12 External initiatives – components 32, 35, 84

GRI 102-13 Membership of associations 62 GRI 103-3 Evaluation of the management 35, 84
approach
STRATEGY
GRI 201-1 Direct economic value generated and 84
GRI 102-14 Statement from senior decision-maker 10-18 distributed
ETHICS AND INTEGRITY DISCLOSURE: PROCUREMENT PRACTICES
GRI 102-16 Values, principles and norms of GRI 103-1 Explanation of the material topic and 85
71
behaviour its boundary
GOVERNANCE GRI 103-2 The management approach and its 85
components
GRI 102-18 Governance structure 70, 133
GRI 103-3 Evaluation of the management 85
STAKEHOLDER ENGAGEMENT
approach
GRI 102-40 List of stakeholder groups 72-73
GRI 204-1 Proportion of spending on local 85
GRI 102-41 Collective bargaining agreements – suppliers

GRI 102-42 Identifying and selecting stakeholders 72-73 DISCLOSURE: EMISSION

GRI 102-43 Approach to stakeholder engagement 72-73 GRI 103-1 Explanation of the material topic and 88
its boundary
GRI 102-44 Key topics and concerns raised 72-73
GRI 103-2 The management approach and its 88
REPORTING PRACTICE components
GRI 102-45 Entities included in the consolidated 262-278 GRI 103-3 Evaluation of the management 88
financial statements approach
GRI 102-46 Defining report content and topic 61 GRI 305-1 Direct (Scope 1) GHG emissions 89
boundaries
GRI 305-2 Energy indirect (Scope 2) GHG 89
GRI 102-47 List of material topics 75 emissions

130 04 Sustainability
 ANNUAL REPORT 2020

GRI Page GRI Page

Disclosure Disclosure
Standards Reference Standards Reference

DISCLOSURE: BIODIVERSITY – PROTECTED AREAS DISCLOSURE: DIVERSITY AND EQUAL OPPORTUNITY

GRI 103-1 Explanation of the material topic and 90 GRI 103-1 Explanation of the material topic and 107
its boundary its boundary

GRI 103-2 The management approach and its 90-91 GRI 103-2 The management approach and its 107
components components

GRI 103-3 Evaluation of the management 90-91 GRI 103-3 Evaluation of the management 107
approach approach

GRI 304-1 Operational sites owned, leased, 91 GRI 405-1 Diversity of governance bodies and 108
managed in, or adjacent to, protected employees
areas and areas of high biodiversity
value outside protected areas

DISCLOSURE: BIODIVERSITY – IUCN RED LIST DISCLOSURE: EMPLOYMENT – HIRE AND TURNOVER

GRI 103-1 Explanation of the material topic and 92 GRI 103-1 Explanation of the material topic and 109
its boundary its boundary

GRI 103-2 The management approach and its 92-93 GRI 103-2 The management approach and its 109
components components

GRI 103-3 Evaluation of the management 93 GRI 103-3 Evaluation of the management 109
approach approach

GRI 304-4 IUCN Red List species and national 93 GRI 401-1 New employee hires and employee 110
conservation list species with habitats turnover
in areas affected by operations

DISCLOSURE: OCCUPATIONAL HEALTH AND SAFETY DISCLOSURE: EMPLOYMENT – BENEFIT

GRI 103-1 Explanation of the material topic and 104 GRI 103-1 Explanation of the material topic and 111
its boundary its boundary

GRI 103-2 The management approach and its 104-105 GRI 103-2 The management approach and its 111
components components

GRI 103-3 Evaluation of the management 105 GRI 103-3 Evaluation of the management 111
approach approach

GRI 403-2 Types of injury and rates of injury, lost 106 GRI 401-2 Benefits provided to full-time 111
days, and number of work-related employees that are not provided to
fatalities temporary or part-time employees

DISCLOSURE: TRAINING AND EDUCATION DISCLOSURE: LOCAL COMMUNITIES

GRI 103-1 Explanation of the material topic and 102 GRI 103-1 Explanation of the material topic and 112
its boundary its boundary

GRI 103-2 The management approach and its 102 GRI 103-2 The management approach and its 112
components components

GRI 103-3 Evaluation of the management 102-103 GRI 103-3 Evaluation of the management 112
approach approach

GRI 404-2 Programs for upgrading employee 103 GRI 413-1 Operations with local community 112-114
skills and transition assistance engagement, impact assessments, and
programs development programs

04 Sustainability
131
GAMUDA BERHAD 197601003632 (29579-T)

Corporate Governance Overview Statement

THE BOARD OF DIRECTORS (“BOARD”) OF GAMUDA BERHAD (“GAMUDA” OR “COMPANY”) PRESENTS

THIS STATEMENT TO PROVIDE SHAREHOLDERS AND INVESTORS WITH AN OVERVIEW OF THE CORPORATE
GOVERNANCE PRACTICES OF THE COMPANY UNDER THE LEADERSHIP OF THE BOARD DURING THE
FINANCIAL YEAR 2020 AND UP TO THE DATE OF THIS STATEMENT. THIS OVERVIEW TAKES GUIDANCE
FROM THE KEY CORPORATE GOVERNANCE PRINCIPLES AS SET OUT IN THE MALAYSIAN CODE ON
CORPORATE GOVERNANCE (“MCCG”).

The Corporate Governance Overview Statement is made pursuant SUMMARY OF CORPORATE GOVERNANCE PRACTICES
to Paragraph 15.25(1) of the Main Market Listing Requirements
In manifesting the Group’s commitment towards sound corporate
(“Listing Requirements”) of Bursa Malaysia Securities Berhad
governance, the Group has benchmarked its practices against
(“Bursa Securities”) and guidance was drawn from Practice
the relevant promulgations as well as other best practices.
Note 9 of Bursa Securities’ Listing Requirements and the
Gamuda has applied all the Practices encapsulated in the MCCG
Corporate Governance Guide (3 rd Edition) issued by Bursa
for the financial year ended 31 July 2020 with the exception of
Securities. It should be read together with the Corporate
the following practice:-
Governance Report (“CG Report”) prepared based on a prescribed
format as enumerated in Paragraph 15.25(2) of the Listing
Recommended CG Practice in MCCG
Requirements so as to provide a detailed articulation on the
application of the Company’s corporate governance practices Leveraging technology to facilitate remote
vis-à-vis the MCCG. The CG Report is available on the Company’s Practice 12.3 participation and voting at general meetings.
website at www.gamuda.com.my.
The explanation on the above departure is disclosed in the
COMMITMENT FROM THE BOARD CG Report.
The Board recognises the importance of maintaining a high
In line with the latitude accorded in the application mechanism
standard of corporate governance practices within Gamuda and
of MCCG, the Company has provided forthcoming and appreciable
its subsidiary companies (collectively “Group”) and devotes
explanations for the departure from the said practice.
considerable effort to identify and formalise best practices.
The explanations on the departure are supplemented with a
Good corporate governance is crucial to sustain the Group in
description on the alternative measures that seek to achieve
the long-run through the ever changing regulatory and market
the Intended Outcome of the departed Practice, measures that
environment. The Board sees corporate governance as an
the Company has taken or intends to take to adopt the departed
integral part of the Group’s business strategy.
Practice as well as the timeframe for adoption of the departed
Practice. Further details on the application of each individual
The Board believes that sound and effective corporate practices
Practice of MCCG are available in the CG Report.
are fundamental to the smooth, effective and transparent
operation of a company and its ability to attract investment,
protect the rights of shareholders and stakeholders, and enhance PRINCIPLE A:
shareholder value. BOARD LEADERSHIP AND EFFECTIVENESS
I. Board Responsibilities
The Board will continuously evaluate the status of the Group’s
corporate governance practices and procedures with a view to The primary role of the Board is to protect and enhance
adopt and implement the best practices in so far as they are long-term shareholder value. It sets the overall strategy
relevant to the Group, bearing in mind the nature of the Group’s for the Group and supervises executive management.
businesses and the size of its operations.
It also ensures that good corporate governance policies
and practices are implemented within the Group. In the
course of discharging its duties, the Board acts in good
faith, with due diligence and care, and in the best interest
of the Company and its shareholders.

132 05 Corporate Governance

 ANNUAL REPORT 2020

A framework of delegated authority is in place consistent In discharging its duties with due care, skill and diligence,
with the structure of delegation below the Board level. the Company led by the Group Managing Director are
The Board reserves to itself certain key matters to approve, driven and guided by the Value Creation Strategy as
including the Group’s strategic plans, major capital illustrated in pages 66 to 67 of this Annual Report.
expenditure, corporate governance issues, dividend policy
and external financial reporting. This Value Creation Strategy has been formalised and is
disseminated to employees and continuously reinforced
The Board delegates responsibility for the day-to-day through their tenure with the Group.
operation of the businesses to the Group Managing Director
who is assisted by the Deputy Group Managing Directors
and Key Senior Management and recognises his responsibility
for ensuring that the Company operates within a framework
of prudent and effective controls.

BOARD
Responsible for providing stewardship and oversight of the Group’s business affairs

Audit Committee (“AC”) Nomination Committee (“NC”) Remuneration Committee (“RC”)

Review of financial reporting, Review candidatures for Board Review and oversee administration
internal controls, related party appointment and re-appointment of remuneration policies and
transactions and conflicts of as well as annual assessment of procedures of Directors and Key
interest, internal audit as well as the Board, Board Committees and Senior Management.
external audit processes. Directors.

GROUP MANAGING DIRECTOR

Responsible for the overall business and implementation of Board policies, decisions and powers within
delegated limits for all matters except those reserved for the Board or delegated to Board Committees

Risk Management Committee Division Directors

Head of Internal Audit Business Units

Chief Integrity & Governance Officer

As depicted in the above illustration, Board Committees The Board receives the minutes of all Board committee
have been established to assist the Board in its oversight meetings at the following Board meeting and is presented
function with reference to specific responsibility areas. with a verbal report from each committee Chair on significant
It should however be noted that at all times, the Board areas of discussion and key decisions. To assist each
retains collective oversight over the Board Committees. committee in discharging its responsibilities, each committee
These Board Committees have been constituted with clear has an annual meeting planner that sets out the scheduled
terms of references and they are actively engaged to ensure items of business and reports to be considered during the
that the Group is in adherence with good corporate year.
governance.

As a step up on overall responsibility for risk oversight,

the Board will continue to assess whether this oversight
is to be carried out either by the full Board or through
delegation to one or more standing committees comprising
majority of independent directors.

05 Corporate Governance
133
GAMUDA BERHAD 197601003632 (29579-T)

Corporate Governance Overview Statement

The Board articulates its roles and responsibilities in its All members of the Board, whether as a whole or in their
Directors’ Handbook, and describes those areas reserved individual capacity, have access to the advice and services
for the Board’s determination. The Board had adopted the of the Company Secretaries on all matters relating to the
Directors’ Handbook in 2002. The Board believes that the Group to assist them in the furtherance of their duties.
Directors’ Handbook, which sets out the roles, duties and The Board is regularly updated and kept informed by the
responsibilities of the Company Directors and the broader Company Secretaries and the Management of the
issues of directors’ ethics, amongst others, collectively requirements such as restriction in dealing with the
with the various policies, procedures and practices that securities of the Company and updates as issued by the
have been in place for a long time, the Constitution of the various regulatory authorities including the latest
Company and statutory and regulatory requirements, have developments in the legislations and regulatory framework
effectively encapsulated the essence of the suggested affecting the Group.
contents of a Board charter.
Besides the Directors’ Handbook, the Board has adopted
There is a clear division of responsibilities at the helm of a Directors’ Code of Conduct on 28 September 2016.
the Company to ensure a balance of authority and power, In addition to the Company Directors’ Code of Ethics
as the roles of the Chairman and the Group Managing established by the Companies Commission of Malaysia,
Director are distinct and separate. The Chairman of the the Directors’ Code of Conduct is the Board’s commitment
Company is an Independent Non-Executive Director, who towards establishing a corporate culture which prescribes
through the Board, provides effective oversight over ethical conduct that permeates throughout the Company
Management and reflects the Company’s commitment to and ensuring the implementation of appropriate internal
uphold corporate governance. systems to support, promote and ensure its compliance.
The Directors’ Code of Conduct is available for reference
The Chairman leads the Board by setting the tone at the on Gamuda’s corporate website at www.gamuda.com.my.
top, and managing the Board effectiveness by focusing on
strategy, governance and compliance. Where necessary, The Board recognises the importance of prompt and timely
the Chairman will conduct a separate session with the dissemination of accurate and sufficient information
Non-Executive Directors (“NEDs”) to allow for discussion concerning the Company and its Group to shareholders,
on any pertinent issues raised by the NEDs and/or issues investors and other stakeholders to enable them to make
from the Management, as may be shared by the Chairman an informed decision. A Corporate Disclosure Policy for
with the other NEDs. For the financial year under review, the Group was adopted on 28 September 2016 to set out
the Chairman conducted one separate session with the the policies and procedures on disclosure of material
NEDs on 17 October 2019 to deliberate on the Directors’ information of the Group is being addressed,
remuneration. following emphasis by Bursa Securities as outlined in
Bursa Securities’ Corporate Disclosure Guide. Accordingly,
The Board is supported by suitably qualified and competent the Group Managing Director and/or the Executive Director
Company Secretaries who are members of the relevant evaluate the release of all major communications to
professional bodies. They are accountable directly to the investors or Bursa Securities. The Corporate Disclosure
Board through the Chairman of the Board on all Board Policy is also available for reference on Gamuda’s corporate
and governance matters. The Company Secretaries also website at www.gamuda.com.my.
has an internal reporting line to the Group Managing
Director on corporate secretarial and legal matters in
respect of the business.

The appointment of Company Secretaries is based on

the capability and proficiency determined by the Board.
The Constitution of the Company permits the removal of
Company Secretaries by the Board.

134 05 Corporate Governance

 ANNUAL REPORT 2020

Recognising the importance of Information Technology With the growing use of drones across many of the Group’s
(“IT”) Governance, information security and cybersecurity projects as they are potentially very useful for surveying,
threats to the Group, the Enterprise Wide Information studying new projects, site monitoring, progress reporting,
Security Policy (“EWISP”) was further enhanced to the safety assessments and for producing video or photos for
latest version 3.1 on 4 July 2019. The revision included the marketing and corporate communications, a drone use
Statement of Applicability where all Entities of Gamuda policy was put in place on 30 January 2019 to ensure that
Group are to adhere to the EWISP and any deviation must all the Company employee are using drones safely, effectively
be approved by the Directors of that entity and the Group and in compliance with the current regulations in Malaysia.
Personnel Working Committee. The main objective is to A Gamuda Drone Standard Operating Procedures (“SOP”)
preserve Confidentiality, Integrity, Availability and Governance has also been developed and ongoing drone pilot training
of Gamuda’s information assets and to serve the following was set up for the Company staff.
purposes:-
II. Board Composition
1. Employees understand and adhere to the policy
statements. During the financial year under review, the Board comprises
one (1) Group Managing Director, one (1) Deputy Group
2. Acquaint employees with information security risks
Managing Director, and a significant presence of five (5)
and the expected way to address these risks.
NEDs of whom four (4) are Independent Directors. Hence,
3. Provide guidance to third parties with whom Gamuda the Board’s composition has fully complied with the
exchanges and share information. provisions of the Listing Requirements of Bursa Securities
for independent non-executive directors to make up at
4. Clarify employees’ responsibilities and duties with
least one third (1/3rd) of the Board membership and for a
respect to the protection of information resources.
director who is qualified under Paragraph 15.09 (1) (c)
5. Enable managers and other employees to make of Bursa Securities’ Listing Requirements to sit on the
appropriate decisions in relation to information security. Audit Committee.
6. Reduce leakage and vulnerability caused by improper
control.

The EWISP is available on Gamuda Employee Services

(“GES”) for ease of access by employees of the Group. 29%

The Board views procurement as a critical area that needs 4 Independent Directors
to undergo transformation to a more strategic discipline 2 Executive Directors
and value-adding function to Gamuda’s business. In order 57% 1 Non-Executive Director
to survive the current industry volatility and responding to
the pressure to deliver projects in a more transparent and 14%
cost-effective manner, steps have been undertaken to
re-invent procurement and to ensure that the Group stay
resilient. Procurement and supply chains are of the highest
importance from the very beginning of every project that
Gamuda undertake as a Group. The Group Digital Length of tenure of Independent Directors
Procurement Platform was rolled out in financial year 2018 0 to 2 Years 3 to 4 Years 6 to 7 Years 8 to 9 Years
to make procurement more transparent and effective; 1 Director 1 Director 1 Director 1 Director
by using a consistent, collaborative approach leveraging
on the SAP Ariba platform that embraces supply chain and
procurement best practices to improve value and sustainable
savings.

05 Corporate Governance
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GAMUDA BERHAD 197601003632 (29579-T)

Corporate Governance Overview Statement

The Board composition which comprises majority Independent The Board is a firm believer in promoting diversity in its
Directors also conforms with Practice 4.1 of the MCCG membership, including gender, ethnicity and age, and
namely, Gamuda, being classified as a Large Company is strives to maintain the right balance for effective functioning
recommended to maintain a Board that is significantly of the Board.
independent.
Recognising the benefits of diversity in its broad spectrum,
The biographical particulars of the Directors are set out the Board has adopted a Diversity and Inclusion Policy on
in the Profile of Board of Directors section of this Annual 28 September 2016. The Board has consistently maintained
Report. An updated list of Directors of the Company and the 33% women directors on its Board as it believes that
their respective roles and functions has been maintained women directors will add value to Board discussions by
on the website of the Company together with the updated bringing new perspectives, approaches and ideas to help
biographical particulars of each Director. the Group succeed. Under the current Board composition,
women representation on the Board is 43%, which has
The Board is satisfied that the current composition with exceeded the 30% requirement.
majority Independent Directors does fairly represent the
investment of the majority and minority shareholders in Across the Group, the respective proportions of male and
the Company. The current Board brings with it a broad female employees on the Board, in the workforce and
range of business, financial, technical and public service across the business (now reported at a global level) as at
background. 31 July 2020 are illustrated below.

Proportion of Women on the Board Proportion of Women in Workforce

57% 43% 69% 31%

4 3 4,211 1,904
FY2020 FY2019 FY2020 FY2019

Women 43% 43% Women 31% 29%

Men 57% 57% Men 69% 71%

Number of Women 3 3 Number of Women 1,904 1,872

Number of Men 4 4 Number of Men 4,211 4,653

 or details on ethnic, age and gender diversity in Gamuda’s workforce, please refer to the Sustainability Report set out in pages 107 to 110
F
of this Annual Report.

The Company Directors are professionals in the fields of engineering and construction, finance, accounting, legal and
experienced senior public administrators.

Together, they bring a wide range of competencies, capabilities, technical skills and relevant business experience to ensure
that the Group continues to be a competitive leader within its diverse industry segments with a strong reputation for
technical and professional competence.

136 05 Corporate Governance

 ANNUAL REPORT 2020

The Board composition in terms of each of the Director’s industry and/or background experience, age and ethnic composition
is as follows:-

Industry/ Age Ethnic

Background Experience Composition Composition Gender

Engineering
Construction and

Public Services

Banking

Finance
Accounting/

Legal

50 to 59 years

60 to 69 years

70 to 79 years

Bumiputera

Non-bumiputera

Male

Female
Directors
Dato’ Mohammed Hussein

Dato’ Lin Yun Ling

Dato’ Ir Ha Tiing Tai

Raja Dato’ Seri Eleena binti Almarhum Sultan

Azlan Muhibbuddin Shah Al Maghfur-lah

Tan Sri Dato’ Setia Haji Ambrin Bin Buang

Tunku Afwida binti Tunku A.Malek

Nazli binti Mohd Khir Johari

The profile of the Board members are set out on pages 44 to 52 of this Annual Report.

To ensure the continued effectiveness of the Board, Following the two (2) evaluations, the Board concluded
the Company undertakes a formal evaluation each year in that the Board as a whole and its Board Committees have
order to assess the effectiveness of the Board and the been effective in their overall discharge of function and
Audit Committee. duties. The following matters were highlighted during the
course of the aforesaid evaluations:-
During the financial year 2020, an annual evaluation of the
• Future Board candidate to have background in engineering,
effectiveness of the Board as a whole and an annual
infrastructure development, construction or property
self-evaluation of the Audit Committee were conducted
development;
internally. The evaluation process is led by the Nomination
Committee’s Chairman and supported by the Company • Allow sufficient time for Board to review major investment
Secretaries. The evaluation results are considered by the proposals; and
Nomination Committee, which then make recommendations
• Need for a special Board meeting to discuss on the
to the Board and are aimed at helping the Board to
Group’s broad strategy on an annual basis.
discharge its duties and responsibilities.
The Board regularly reviews the independence of each
The evaluation is based on specific criteria, covering areas
Independent Director by undertaking annual assessment
such as the Board composition and structure, principal
of the independence of its Independent Directors.
responsibilities of the Board, the Board process and Board
The criteria for assessing the independence of an Independent
governance.
Director were developed by the Nomination Committee
with the support of the Company Secretaries which include
The 2019/2020 Evaluations of the Board Performance and
the relationship between the Independent Director and the
the 2019/2020 Audit Committee Self-Assessment have
Company and his/her involvement in any significant
been structured to ensure a balanced and objective review
transaction with the Company. In addition, all Directors
by the Directors and the Audit Committee, respectively for
are required to disclose to the Board any conflicts of
the above key areas.
interest or duty and material personal interest in any
matter that relates to the affairs of the Company.

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Corporate Governance Overview Statement

III. Remuneration After due consideration on market trends together with

the Company’s performance and given market uncertainties,
The Board has in place a Remuneration Policy for Directors
the Board on the recommendations of the Remuneration
and Key Senior Management which is clear and transparent,
Committee has decided that:
designed to support and drive business strategy and
long-term objectives of the Gamuda Group. • the total remuneration of the Executive Directors remained
unchanged except for a slight adjustment to the
In this regard, the Remuneration Committee is responsible remuneration of one of the Director;
to review the said policy from time to time to ensure the
• no salary increments and bonus were awarded for all
same remain competitive, appropriate, and in alignment
Group senior management of the Company except for
with the prevalent market practices. The said policy was
bonus payment to two key senior management;
approved by the Board for adoption on 27 June 2018 and
is available for reference on Gamuda’s corporate website • the total remuneration (Directors’ fee and meeting fee)
at www.gamuda.com.my. of the Chairman and the NEDs (including Independent
Directors) remain unchanged for the financial year ended
The Remuneration Committee’s main responsibility is to 31 July 2020 since their remuneration was revised in
review and recommend to the Board the framework of financial years 2018 and 2019 respectively.
Executive Directors’ and Key Senior Management’s
remuneration, in particular, the remuneration packages Due to the unprecedented Movement Control Order (“MCO”)
for the Executive Directors in all its forms, drawing from followed by the Restricted MCO triggered by the COVID-19
outside advice, where necessary and fees payable to the pandemic, the Group has implemented employee pay cuts,
NEDs. The Remuneration Committee aims to ensure that Employees Separation Scheme, digital transformation to
Directors’ remuneration is competitive, motivates good reduce manpower, etc. In line with these measures,
performance and loyalty, and supports growth in shareholder the Executive Directors, Group Senior Management and
value. affected employees (based on salary range bracket) have
given their consent to a salary reduction up to 30% with
During the financial year under review, the Remuneration effect from May 2020 for Executive Directors and Group
Committee undertook the following reviews of the Senior Management and the rest in June 2020. To
remuneration packages prepared by the Human Resource demonstrate support of the initiatives taken by the Company
Department:- in response to the COVID-19 pandemic, the NEDs (including
1. The Group Managing Director’s and Deputy Group Independent Directors) have also voluntarily agreed to take
Managing Directors’ remunerations; a 10% reduction in their fees for the financial year under
review.
2. The NEDs (including Independent Director) remuneration;
and Detailed information on the Directors’ remuneration for
3. Group Senior Management’s remunerations. the financial year 2020 on a named basis are disclosed
under Note 6 of the Financial Statements section in this
The objective of the above reviews was to align the Executive Annual Report while the detailed information of the
Directors’ and NEDs’ remuneration packages with the Company’s top five Group Senior Management on a named
remuneration of Executive Directors and NEDs from peer basis are disclosed under Practice 7.2 of the CG Report.
companies in the same industries.

From the findings, it appears that the remuneration for

the top 3 Executive Directors namely, Group Managing
Director and Deputy Group Managing Directors are
comparable with most public listed companies benchmarked.

138 05 Corporate Governance

 ANNUAL REPORT 2020

PRINCIPLE B: EY has attended two out of the five Audit Committee

EFFECTIVE AUDIT AND RISK MANAGEMENT Meetings of the Company held to discuss their audit plan,
audit findings and the financial statements. EY will highlight
I. Audit Committee
to the Board through the Audit Committee matters that
The Audit Committee takes on the role of assisting the require the Audit Committee’s or the Board’s attention
Board in the discharge of its fiduciary duties, the responsibility together with the recommended corrective actions thereof.
of overseeing the financial reporting process and ensuring The Management of the Company is held responsible for
that the results of the Company’s operations are fairly ensuring that all these corrective actions are undertaken
presented in its financial statements. within an appropriate time frame.

The composition of the Audit Committee is in line with The Audit Committee also meets EY without the presence
Practice 8.1 of the MCCG which requires that the Audit of the Executive Directors and Management as this allows
Committee Chairman and the Board Chairman to be held for free and honest exchange of views and opinions on
by different Independent Director of the Company. matters related to external auditors’ audit and their findings.
For this purpose, the Audit Committee and EY met twice
 full Audit Committee Report is set out on page 146 of this
A (September 2019 and June 2020) during the financial year
Annual Report. under review.

The effectiveness, performance and independence of the The Audit Committee has considered the provision of the
external auditor i.e. Ernst & Young PLT (“EY”) is reviewed non-audit services by EY during the financial year under
annually by the Audit Committee. If it becomes necessary review and concluded that the provision of these services
to replace the external auditor for performance or did not compromise their independence and objectivity.
independence reasons, the responsibility for the selection,
appointment and removal of the external auditor has been The total amount of audit fees paid/payable to the
delegated to the Audit Committee by the Board pursuant external auditors is RM1,478,000/- (2019: RM1,541,000.00).
to the External Auditor Policy which was approved by the The non-audit fees incurred for services rendered to the
Board on 28 September 2017. The External Auditor Policy Group by the external auditors and its affiliates for the
is available for reference on Gamuda’s corporate website financial year ended 31 July 2020 was RM1,079,000 (2019:
at www.gamuda.com.my. A review of the said policy was RM146,000.00). The Group’s non-audit fees are mainly in
carried out on 23 September 2020 by the Audit Committee relation to the provision of the (i) Company taxation services
to streamline the policy with the By-Laws (on Professional and tax advisory, (ii) sustainability reporting services and
Ethics, Conduct and Practice) of the Malaysian Institute of (iii) advisory services on proposed sale of toll highways.
Accountants (“MIA By-Laws”).
Significant related party transactions of the Group for the
EY has provided the required confirmation of their financial year are disclosed in Note 41 of the Financial
independence to the Audit Committee that they are and Statements section in this Annual Report. Except for those
have been independent throughout the conduct of the audit disclosed in the Financial Statements, there were no
engagement during the financial year ended 31 July 2020 material contracts of the Group involving Directors’ and
in accordance with: major shareholders’ interest during the period.
• MIA By-Laws; and
The Audit Committee has reviewed the related party
• the International Ethics Standards Board for Accountant’s transactions that arose within the Group to ensure that
Code of Ethics for Professional Accountants’ Independence the transactions were fair and reasonable, not detrimental
requirements. to the minority shareholders and were in the best interests
of the Company.
The Audit Committee has on 18 June 2020 and 23 September
2020, reviewed the suitability and independence of EY and II. Risk Management and Internal Control Framework
is satisfied that EY has met the relevant criteria prescribed
under Paragraph 15.21 of the Listing Requirements of The Board is satisfied that risk management policies and
Bursa Securities. Thus, the Audit Committee has procedures designed and implemented by the Management
recommended that the Board endorses EY’s re-appointment of the Company through the Risk Management Committee
for the ensuing financial year and recommends that the is prudent in ensuring that effective internal control and
shareholders of the Company approves EY’s re-appointment risk management systems are in place to enable risk to
at the 44th AGM. be assessed and managed.

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Corporate Governance Overview Statement

The Risk Management Committee’s focus is on the Group’s As part of its corporate governance initiatives, the Company
key operational risks and policy issues that could have an has set up a full-time Investor Relations (“IR”) unit which
impact on the Group’s viability and sustainability. The work primary role is to implement effective IR policies and
of this Committee forms an important part of the Group’s programmes. A comprehensive IR report enumerating its
control function. Significant risks faced by the business policy, practices and programmes, during the financial year
are identified and evaluated based on the likelihood and under review are as set out on pages 37 to 39 of this
potential impact of each risk and where necessary, actions Annual Report.
to mitigate the risks were also identified.
II. Conduct of General Meetings
 he Risk Management Committee Report is set out on pages
T
144 to 145 of this Annual Report Gamuda’s annual general meeting is an important means
of communicating with its shareholders. To ensure effective
The Board also takes into consideration advice from the participation of and engagement with shareholders at the
Audit Committee and the Risk Management Committee, Forty-third (“43rd”) Annual General Meeting (“AGM”) of
reports received from the external auditors and any other Gamuda held on 5 December 2019, all members of the
related matters which have come to its attention. Board were present at the 43rd AGM to respond to questions
raised by the shareholders or proxies.
 he Statement on Risk Management and Internal Control
T
of the Group which provides an overview of the state of The Chairman of the Board chaired the 43rd AGM in an
internal control within the Group, is set out on pages 142 orderly manner and allowed the shareholders or proxies
to 143 of this Annual Report. to speak at the AGM. The Deputy Group Managing Director
presented the Company’s responses to the questions raised
III. Integrity and Governance Unit (“IGU”) by the Minority Shareholder Watch Group and the Group’s
operation review and business outlook of the core businesses
In line with the Strategic Plan of Integrity and Governance to the shareholders. The senior management of the Company
Unit (IGU) 2019-2021 by the Malaysian Anti-Corruption and the Company external auditor, Ernst & Young, were
Commission (MACC), the establishment of IGU was approved also present to respond to any enquiries from the
by the Board on 13 December 2019 to showcase its strong shareholders.
commitment towards upholding integrity.
In line with good corporate governance practice, more than
The Statement by IGU enumerating its activities during the 21 days’ notice has always been given for AGMs every year.
financial year under review are set out on pages 150 to For this year’s 44th AGM scheduled for 8 December 2020,
151 of this Annual Report which encompasses the adoption the Notice is issued on 9 November 2020. The notification
of the following two policies, namely:- of the publication of the Annual Report 2020 and the Notice
• The Anti-Bribery and Corruption Policy; and of 44th AGM are published on the Company’s website and
on Bursa Malaysia’s website respectively.
• Whistleblowing Policy and Procedures (supersedes the
Whistleblowing Policy adopted by the Group in 2011). Commencing from the Fortieth AGM of the Company in
2016, poll voting using electronic voting system was
conducted. In view of the COVID-19 pandemic and as part
PRINCIPLE C: of the Company’s precautionary measures, the Company
INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL will leverage on technology by holding a fully virtual AGM
RELATIONSHIP WITH STAKEHOLDERS i.e. through live streaming and using Remote Participation
I. Communication with Shareholders and Investors and Voting Facilities to enhance the quality of engagement
with its shareholders and facilitate further participation by
The Company strives to maintain an open transparent shareholders at the forthcoming 44th AGM.
channel of communication with its shareholders, institutional
investors, analysts and the public at large with the objective This Corporate Governance Overview Statement was
of providing as clear and complete picture of the approved by the Board of Gamuda on 7 October 2020.
Group’s performance and financial position as possible.
Communication with shareholders and investors are of
considerable importance to the Company.

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Training Programmes Attended by Directors

For the financial year ended 31 July 2020, all Directors have attended the following training programmes:-

Director Topic

Dato’ Mohammed Hussein • Digital Upskilling for Boards

• Enhancing Corporate Governance By Understanding Legal Liabilities
“Act or Resign”
• BAMB BOD Training on Lines of Business [Fixed Income, Currencies, Commodities (“FICC”)]
• Corporate Leadership Symposium 2020 – Sustainability and Digitalisation: A New Normal
– (Speaker) Board Case: How do Companies Drive and Implement Sustainability?
• BAMB Directors’ Training on Webex
• Enabling Executive & Board Meeting with Microsoft Teams Training
• LHAG Live Webinar – Corporate Liability for Corruption Offences: The Time Has Come,
Are You Ready
• Fide Webinar: Sir Howard Davies, RBS
• Training on Global Information Security (GIS)

Dato’ Lin Yun Ling • Enhancing Corporate Governance By Understanding Legal Liabilities
“Act or Resign”

Dato’ Ir Ha Tiing Tai • Enhancing Corporate Governance By Understanding Legal Liabilities

“Act or Resign”

Raja Dato’ Seri Eleena binti • Enhancing Corporate Governance By Understanding Legal Liabilities
Almarhum Sultan Azlan “Act or Resign”
Muhibbuddin Shah
Al-Maghfur-lah

Tunku Afwida binti • Pelancaran Pelan Strategic Unit Integrity & Governans SPRM
Tunku A.Malek • Global telecoms trends, with a specific focus on 5G and its implication on industry structure
• Briefing on the Corporate Liability Provision under MACC Act (Amendment) 2018
• International Directors Summit 2019 – The Trust Compass: Resetting the Course
• Presentation on 5G Technologies by Ericsson, Huawei, Nokia and ZTE
• FinTech and its Impact to Capital Markets
• APOS 2019: Powering Asia’s Digital Ecosystem
• Business Trend and Outlook
• Internal Audit for Board and Audit Committee

Nazli binti Mohd Khir Johari • Enhancing Corporate Governance By Understanding Legal Liabilities
“Act or Resign”
• ICDM International Directors Summit 2019
• Section 17A Malaysian Anti-Corruption Commission (Amendment) Act 2018
• Dealings in Listed Securities, Closed Period & Insider Trading

Tan Sri Dato’ Setia Haji • Enhancing Corporate Governance By Understanding Legal Liabilities
Ambrin bin Buang “Act or Resign”

Mohammed Rashdan bin • Enhancing Corporate Governance By Understanding Legal Liabilities

Mohd Yusof “Act or Resign”
(Alternate to Dato’ Lin Yun Ling) • Macquarie Malaysia Macro and Policy Day
• Khazanah Megatrends Forum 2019
• Post Budget 2019 Forum
• Leading Urban Sustainability Workshop
• BCG Virtual Leaders Roundtable/Macroeconomic Prespectives on COVID-19
• KLBC Dialogue Session with Special Advisor to Prime Minister on Public Health
• Invest Malaysia 2020 – The Capital Market Conversation:
Economy Recovery: Policies and Opportunities

Dato’ Ubull Din Om • Enhancing Corporate Governance By Understanding Legal Liabilities

(Alternate to Dato’ Ir Ha Tiing Tai) “Act or Resign”

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Statement on Risk Management and Internal Control

BOARD’S RESPONSIBILITY KEY RISK MANAGEMENT AND INTERNAL CONTROL FEATURES
The Board of Gamuda Berhad (the Group and the Company) The Group’s risk management and internal control systems
affirms the overall responsibility for maintaining a sound system comprises the following key processes:
of risk management and internal control so as to safeguard
shareholders’ interests and the Group’s assets. The system of • Clearly defined operating structure, lines of responsibilities
risk management and internal control is designed to manage, and delegated authority. Various Board and Management
but may not totally eliminate the risk of failure to achieve Committees have been established to assist the Board in
business objectives. Accordingly, such systems can only provide discharging its duties. The committees are:
reasonable and not absolute assurance against material error,
misstatement or losses. Board Committees

The Board confirms that there is an ongoing process of 1 Audit Committee

identifying, evaluating and managing all significant risks faced
by the Group that has been in place for the year and up to the
date of approval of this Statement for inclusion in Annual Report. 2 Nomination Committee
The process is regularly reviewed by the Board and is in
accordance with the Statement on Risk Management and Internal
Control: Guidance for Directors of Listed Issuers (SRMICG) and 3 Remuneration Committee
the Group’s Risk Management Policies and Procedures.
4 ESOS Committee
RISK MANAGEMENT
The risk management framework, which is embedded in the
Management Committees
management systems of the Group, clearly defines the authority
and accountability in implementing the risk management process
and internal control system. The Management assists the Board 1 Risk Management Committee*
in implementing the process of identifying, evaluating and
managing significant risks applicable to their respective areas
of business and in formulating suitable internal controls to 2 Budget Committee
mitigate and control these risks.
3 Group Personnel Committee
The business development team is responsible for assessing
and evaluating the feasibility and risk impact that prospective
investments would have on the Group. For ongoing business 4 Information Technology Steering Committee
operations, risk assessment and evaluation is an integral part
of the annual business planning and budgeting process.
5 COVID-19 Steering Committee
The Management of each business unit, in establishing its
business objectives, is required to identify and document all
* With Board representation
possible risks that can affect their achievement, taking into
consideration the effectiveness of controls that are capable of
mitigating such risks. • Feasibility study, risk impact and assessment on new
investments/projects is evaluated by the business development
Operational Managers or Heads of Departments are responsible team for the Board’s deliberation.
for identifying risks that may have impact in meeting their unit’s
business objectives. Risks identified are evaluated in accordance • Internal control activities have been established in all business
with the likelihood of occurrence and significance. Thereafter, units with clearly defined lines of responsibilities, authority
risks are ranked according to the impact on the Business Unit, limits for major capital expenditure, contract awards and
and control measures are formulated to mitigate these risks. other significant transactions, segregation of duties,
Identified risks and control measures are reviewed by the Head
performance monitoring and safeguarding of assets.
of the respective Business Unit. Each business unit’s identified
risks, and the controls and processes for managing them are
• Systematically documented Policies & Procedures, and
tabulated in a risk assessment report.
Standard Operating Procedures are in place to guide
During the year, the significant risks of business units were employees in their day-to-day work. These policies and
presented to the Risk Management Committee for their procedures are reviewed regularly and updated when
deliberation. necessary.

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• As part of managing the day-to-day business operations, • The Board of our associated companies include our
the Group uses a budgetary control system whereby all representatives. Information on the financial performance
business units prepare business plans, budgets and control of these associated companies is provided regularly to the
measures to mitigate identified risks. These business plans Management and Board of the Company via regular
and budgets are reviewed and approved by the Budget management reports and presentations at Board meetings.
Committee, which is chaired by the Group Managing Director
and subsequently presented to the Board. • In respect of joint ventures entered into by the Group, the
Management of the joint ventures, which consist of
• A comprehensive reporting system comprising budgets, key representations from the Group and other joint venture
business indicators and performance results on operations partners, are responsible to oversee the administration,
are made available to the Senior Management. This flow of operation and performance of the joint venture. Financial
information is for the Senior Management to review business and operational reports of these joint ventures are provided
unit’s performance against budgets and performance regularly to the Management of the Company.
indicators on a monthly basis.
The Group Managing Director and the Chief Financial Officer
• An Integrated Management System, incorporating have provided the Board with assurance that the Group risk
ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 requirements management and internal control system is operating adequately
have been established and implemented to enable high and effectively. All internal control weaknesses identified during
quality, cost effective, reliable, safe and environmental the period under review have been or are being addressed.
friendly products and services. There were no major internal control weaknesses that require
disclosure in the Annual Report. The Management continues
• A performance management system with clearly defined to review and take measures to strengthen the risk management
business objectives and targets are set for relevant employees. and control environment.
Employees’ performances are monitored, appraised and
rewarded according to the achievement of targets set.
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
• Training and development programmes are identified and The External Auditors have performed limited assurance
scheduled for employees to acquire the necessary knowledge procedures on the Statement in accordance with the Malaysian
and competency to meet their performance and job Approved Standard on Assurance Engagements, ISAE 3000
expectations. (Revised), ‘Assurance Engagements Other than Audits or Reviews
of Historical Financial Information’ and AAPG 3, ‘Guidance for
• An adequately resourced Internal Audit Department, which Auditors on Engagements to Report on the Statement on Risk
reports directly to the Audit Committee, conducts regular Management and Internal Control included in the Annual Report’.
reviews on integrity and effectiveness of the Group’s system They have reported to the Board that nothing has come to their
of internal controls. attention that causes them to believe the Statement intended
to be included in the Annual Report is not prepared, in all
• Executive Directors and Senior Management conduct regular material respects, in accordance with the disclosures required
site visits and communicate with employees of different by Paragraphs 41 and 42 of SRMICG, nor is the Statement
levels to have first-hand knowledge of significant operational factually inaccurate.
matters and risks.
This Statement is made in accordance with the resolution of
the Board dated 7 October 2020.

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Risk Management Committee Report

MEMBERSHIP MANAGING OPERATIONAL RISK
The Risk Management Committee (RMC) is chaired by the Group Risk Management Framework
Managing Director and comprises not less than five members.
Risk Management activities are guided by the Group’s Risk
The members of the RMC are Executive Directors, Heads of
Management Policies and Procedures. The risk universe covers
Business Divisions and an Independent Director.
a range of activities that determine the risk profile inherent in
the nature of the business which would compromise the business
1. YBHG DATO’ LIN YUN LING
objectives and sustainability if it is not properly addressed.
Chairman/Group Managing Director
Risk factors of Business Units and Projects are associated with
2. YBHG DATO’ IR HA TIING TAI
the environment faced and the Management’s operating style
Member/Deputy Group Managing Director
and can be broadly classified into two main categories:
3. YBHG DATO’ HAJI AZMI BIN MAT NOR • External Risk.
Member/Executive Director, Head of Infrastructure • Internal Risk.
Concessions
Risk Identification, Evaluation and Ranking
4. YBHG DATO’ GOON HENG WAH
Member/Group Executive Director The Management of each Business Unit and Project, in
establishing its business objectives, are required to identify and
5. MR SAW WAH THENG document all possible risks that can affect their achievement
Member/Group Executive Director taking into consideration of the effectiveness of controls that
are capable of mitigating such risks.
6. YM TUNKU AFWIDA BINTI TUNKU A.MALEK
Member/Independent Non-Executive Director Operational Managers or Heads of Departments are responsible
to identify risks that may have impact on meeting their unit’s
7. YBHG DATO’ CHOW CHEE WAH business objectives.
Member/Chairman, Property Development
The risk identification process shall also take into consideration
8. YBHG DATO’ UBULL DIN OM of the:
Member/Managing Director, Engineering and • Risk specific to the achievement of business objectives.
Construction
• Risk with potential impact on the success and continuity of
the business.
TERMS OF REFERENCE
Thereafter, identified risks are evaluated as follows:
The RMC shall meet at least once a year, or at any time deemed • Probability or likelihood of occurrence.
appropriate by the RMC Chairman to discharge its duties. The
• Significance of the risk.
quorum for any meeting of the RMC shall not be less than half
of its composition.

The principal duties and responsibilities of the RMC are as

follows:
• Identify current and potential business, operational and
sustainability risks that have a major impact on the Group’s
projects and businesses, which prevent it from achieving its
goals and objectives.
• Advise the Board on risk related issues and recommend
strategies to mitigate critical risks.
• Provide oversight, direction and guidance on the Group’s
risk management structure, process and support system.
• Review and assess adequacy of risk management policies
and framework for identifying, measuring, monitoring and
controlling risks.

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Risk Mitigation Measures

Risk mitigation measures are developed to manage major risks. These include:

Engineering and Infrastructure

Property
Major Risk Mitigation Measures Construction Concessions
Division
Division Division
Market
Tracking economic and market conditions
Effective strategies on product, pricing and promotions
Operations
Compliance with Information Security Policy and Procedures
Data backup and disaster recovery measures
Robust procurement system
Close monitoring of construction work progress
Stringent quality and safety standards
Competent and experienced personnel
Engaging with relevant government agencies
Compliance with statutory requirements
Adequate insurance coverage
Compliance with Anti-Bribery and Corruption Policy
Public
Sustaining good client relationship
Adequate security measures
Responsive Public Relations units
Effective emergency response teams
Sustainability
Economic performance
Climate action and biodiversity
Innovation
Safety and health

Identified risks and risk mitigation measures are reviewed and finalised by the Heads of Business Units and Projects before
being presented to the RMC and the Board.

Risk Reporting and Monitoring

Each Business Unit’s and Project’s identified risks, the controls and processes for managing them are tabulated in a risk
assessment report. Significant risks of Business Units and Projects are presented to the RMC for their deliberation.

Risk monitoring is an ongoing process, the RMC and the Board are monitoring the Group’s business risks as part of their annual
assessment for proper disclosure in the Annual Report.

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Audit Committee Report

MEMBERSHIP iii. matters arising from the audit of the Group in a meeting
with the External Auditors without the presence of any
The current composition of the Audit Committee is as follows:
executive officer of the Group;
1. YM TUNKU AFWIDA BINTI TUNKU A.MALEK iv. the performance of the External Auditors and the
Chairperson/Independent Non-Executive Director recommendations to the Board on their reappointment and
remuneration;
2. YBHG DATO’ MOHAMMED HUSSEIN
v. the Audit Committee Report and its recommendation to
Member/Independent Non-Executive Director
the Board for inclusion in the Annual Report;
3. PUAN NAZLI BINTI MOHD KHIR JOHARI vi. the Statement of Corporate Governance, Statement on Risk
Member/Independent Non-Executive Director Management and Internal Control and its recommendation
to the Board for inclusion in the Annual Report;
ATTENDANCE OF MEETINGS vii. the risk-based annual audit plan and resource requirement
proposed by the Internal Auditors for the Group;
During the financial year ended 31 July 2020, the Audit Committee
met five times. The attendance of the Committee members is viii. the audit reports presented by the Internal Auditors on
as follows: major findings, recommendations and Management’s
responses thereto;

Name of Directors Attendance ix. the results of follow-up audits conducted by the Internal
Auditors on the Management’s implementation of audit
YM Tunku Afwida binti Tunku A.Malek 5/5 recommendations;
x. related party transactions as required under the Listing
YBhg Dato’ Mohammed Hussein 5/5 Requirements to ascertain that the transactions are
conducted at arm’s length prior to submission for the
Puan Nazli binti Mohd Khir Johari 5/5 Board’s consideration and, where appropriate, shareholders’
approval;

TERMS OF REFERENCE xi. share option allocations pursuant to the ESOS of the
Company during the financial year under review that was
The information on the terms of reference of the Audit Committee verified by the Internal Auditors. The Audit Committee was
is available on the Company’s website. satisfied that the allocation of share options pursuant to
the ESOS during the financial year ended 31 July 2020 was
SUMMARY OF AUDIT COMMITTEE’S ACTIVITIES in compliance with the criteria set out in the ESOS by-laws
and by the ESOS Committee; and
During the financial year, the Audit Committee met five times.
Activities carried out by the Audit Committee included the xii. the Anti-Bribery & Corruption (ABC) Policy and the
deliberation and review of: Whistleblowing Policy and Procedures under the purview
of the Integrity and Governance Unit (IGU), which reports
i. the Group’s quarterly and year-end financial results prior to the Audit Committee, and its recommendation to the
to submission to the Board for consideration and approval, Board for approval.
focusing particularly on matters relating to changes in
major accounting policies, significant and unusual events,
compliance with accounting standards and other disclosure
requirements;
ii. the audit planning memorandum of the External Auditors
in a meeting to discuss their audit strategy, audit focus
and resources prior to commencement of their annual
audit;

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Statement on Internal Audit

The Internal Audit function of the Company is performed by The relevant audit reports were presented to the Audit Committee
in-house Internal Audit Department (IAD). IAD reports directly for deliberation and forwarded to the Management for the
to the Audit Committee and maintains its impartiality, proficiency necessary corrective actions to be taken.
and due professional care. The Internal Audit Charter defines
the authority, duties and responsibilities of IAD. The Internal Audit activities during the financial period is
summarised below:
The principal roles of IAD are to evaluate and improve the
i. prepared annual audit plan for deliberation and approval
effectiveness of internal control, governance and risk management
by the Audit Committee;
processes. Furthermore, IAD provides independent and objective
assurance to the Board and Management on the adequacy and ii. performed operational audits on business units and projects
integrity of the company’s internal control systems. of the Group to ascertain the adequacy and integrity of
their system of internal controls, governance and risk
IAD adopts a risk-based audit approach when preparing its management;
annual audit plan. Main factors to be taken into consideration
iii. performed statutory compliance audits including related
are Risk Assessment, Budget and Business Plan, Senior
party transactions and ESOS allocations;
Management’s input and results of previous audits. The annual
audit plan covers the business units and projects of the Group iv. made recommendations for improvement where weaknesses
and is approved by the Audit Committee. and/or non-compliances were found;
v. conducted follow-up reviews to determine the adequacy,
effectiveness and timeliness of actions taken by the
PRACTICES AND FRAMEWORK
Management on audit recommendations and provided
IAD is guided by the internal policies and procedures as well updates on their status to the Audit Committee.
as the Professional Practices Framework and the Internal
Control Framework of the Committee of Sponsoring Organisation
of the Treadway Commission (COSO) in assessing and reporting RESOURCES AND CONTINUOUS DEVELOPMENT
on the adequacy and effectiveness of the internal control,
There are 18 internal auditors in the Group. The total cost
governance and risk management processes.
incurred during the year was RM2,084,750 (This includes 9
auditors based at business units and projects. Cost incurred:
RM554,590).
SCOPE AND COVERAGE
During the year, IAD has undertaken independent audit A majority of the employee have relevant qualifications and all
assignments on business units and projects of the Group in employees are encouraged to continuously enhance their
accordance with the approved annual audit plan. Among the knowledge, skills and competencies through relevant professional
scope of coverage are: courses, seminars, training courses and on-the-job training.
i. Marketing and Sales;
ii. Collection and Credit Control;
iii. Customer Service;
iv. Public Relations and Communications;
v. Contracts Management;
vi. Procurement Management;
vii. Project Management;
viii. Production Management;
ix. Human Resource Management;
x. Office Administration;
xi. Management of Assets;
xii. Statutory Compliance.

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Additional Compliance Information

1. MEETING RECORDS OF DIRECTORS FOR FINANCIAL YEAR (“FY”) 2020

Board Committee

Risk
Board of Audit Nomination Remuneration Management
Name of Director Directors NED* Committee# Committee Committee Committee

Dato’ Mohammed Hussein 6/6 1/1 5/5 2/2 1/1

Dato’ Lin Yun Ling 4/6 1/1 1/1

Dato’ Ir Ha Tiing Tai 6/6 1/1

Raja Dato’ Seri Eleena Almarhum Sultan

5/6 1/1 1/1
Azlan Muhibbuddin Shah Al-Maghfur-lah

Tan Sri Dato’ Setia Haji Ambrin Buang 6/6 1/1

Tunku Afwida Tunku A.Malek 6/6 1/1 5/5 2/2 1/1

Nazli Mohd Khir Johari 6/6 1/1 5/5 2/2

Total number of meetings for FY2020 6 1 5 2 1 1

Chairman
Member
Non-Member

Notes:-
* One Non-Executive Directors session was held on 17 October 2019
#
Two private sessions were held between the Audit Committee and the external auditors, Ernst & Young PLT i.e. on 23 September 2019
and 18 June 2020

2. UTILISATION OF PROCEEDS
During the financial year, there were no proceeds raised from any corporate proposal.

3. AUDIT AND NON-AUDIT FEES

The amount incurred with respect to audit fees and non-audit related fees paid to external auditors for the financial year
ended 31 July 2020 are as follows:-

Company Group
Type of Services RM’000 RM’000

Audit services 328 1,478

Non-audit services 950 1,079

Total 1,278 2,557

The Group’s non-audit fees incurred accounted for 42% of the total fees payable and were mainly in relation to the provision
of the (i) Company taxation services and tax advisory, (ii) sustainability reporting services and (iii) advisory services on
proposed sale of toll highways.

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4. MATERIAL CONTRACTS INVOLVING DIRECTORS’/CHIEF EXECUTIVES’/MAJOR SHAREHOLDERS’ INTERESTS

Save as disclosed under Note 41 of the Financial Statements in this Annual Report, there were no material contracts entered
into by the Company or its subsidiaries involving the interest of its Directors, Chief Executive who is not a Director or major
shareholders still subsisting at the end of the financial year ended 31 July 2020.

5. EMPLOYEES’ SHARE OPTION SCHEME

The Employees’ Share Option Scheme (2015/2020) of the Company (“ESOS”) was implemented on 10 April 2015 and was
effective for five years from 10 April 2015 to 9 April 2020.

As at the date of expiry of the ESOS on 9 April 2020, 204,525,000 ESOS remained unexercised. Pursuant to Clause 14.1 of
the ESOS By-Laws, all share options lapsed upon the expiry of the ESOS.

The total number of options granted, exercised and outstanding (as adjusted) under the ESOS, are set out in the table
below:-

Number of Options
(since commencement of ESOS to 9 April 2020)

Grand Total Directors

Description RM’000 RM’000

(a) Granted 278,555 8,645

(b) Exercised 74,030 3,100

(c) Lapsed 204,525 5,545

Percentages of options applicable to Directors and Senior Management under the ESOS:-

During the Financial Year up to Since Commencement up to

Directors and Senior Management 9 April 2020 9 April 2020

(a) Aggregate maximum allocation 50% 50%

(b) Actual granted 2% 10%

The Company did not grant any options over the ordinary shares pursuant to the ESOS to the Non-Executive Directors of
the Company.

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Statement on Integrity and Governance Unit

THE INTEGRITY AND GOVERNANCE UNIT (IGU) WAS ESTABLISHED IN JANUARY 2020 AS THE GROUP’S
COMMITMENT TO UPHOLD GOOD GOVERNANCE AND TO CONDUCT ITS BUSINESSES IN A LAW-ABIDING,
ETHICAL AND PROFESSIONAL MANNER.

IGU FRAMEWORK AND FOCUS

The IGU is headed by a Chief Integrity and Governance Officer IGU has 4 core functions:
(CIGO), currently assisted by two Integrity and Governance
Officers (IGO). As an independent entity, IGU reports directly
to the Audit Committee. 1 Complaints Management

IGU will implement a sound governance framework, ensure Detection and Verification
pragmatic policies are in place and periodically review, promote
2
and sustain a culture of ethical business practices in the Group.
By instituting and embracing effective internal controls, consistent 3 Integrity Strengthening
awareness and educational progammes and communication,
acts of misconducts involving fraud, corruption, abuse of power
and violation of the code of conduct and ethics within the Group 4 Governance
can be prevented.

IGU ACTIVITIES
During the financial period, IGU established new policies, reviewed and revised the Group’s existing governance-related Policies
and Procedures, embarked on compulsory courses and undertook awareness programmes as follows:

No. FY2020 Milestones Remarks

1 Newly established Policies: Accessible from the Gamuda

1. Anti-Bribery and Corruption Policy Statement by Group Managing Director website and employees’ portal
2. Anti-Bribery and Corruption Policy

Revised Policies and Procedures:

1. Whistleblowing Policy and Procedures
2. Gifts and Benefits Policy

2 Certified Integrity and Governance Officer Training programme 17 August – Compulsory programme,
10 September 2020 attended by CIGO

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No. FY2020 Milestones Remarks

3 Bi-annual Report submission to Malaysian Anti-Corruption Commission (MACC) 20 January 2020 and
3 July 2020

4 No. of Seminars attended by CIGO & IGOs 3

5 No. of IGU in-house Awareness and Communication programmes for employees/ 3

stakeholders

6 No. of Meetings and Engagements with MACC 5

FORWARD PLAN
Gamuda Organisational Anti-Corruption Plan (GACP)
IGU is the Secretariat to assist the Group develop its 3-year Organisational Anti-Corruption Plan (GACP), for implementation in
early 2021.

The GACP will comprehensively map out the corruption-risk internal control framework for the Group’s business activities.
Potential high-risk areas or weaknesses in areas of the Group’s business operations that could lead to potential corruption
risks will be identified and addressed through solutions provided in the plan. Regular monitoring and review of the GACP will
be conducted during its 3-year implementation, to gauge the plan’s effectiveness.

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Media Highlights

152 06 Achievements
 ANNUAL REPORT 2020

06 Achievements
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AWARDS and
ACHIEVEMENTS
* GAMUDA BERHAD
* GAMUDA LAND
* MMC GAMUDA JOINT VENTURE

GAMUDA BERHAD

• Batu Patong Kelabit Eco Lodge – Green Initiative Awards • Best Performing Stock (Highest Returns to Shareholders Over
(Excellence), Malaysia Landscape Architecture Awards 2019 Three Years), The Edge Billion Ringgit Club Awards 2015
• Gamuda Berhad – Contribution Towards Sustainability in • International Achievement Award, Yen So Sewage Treatment
Construction, RISM Excellence Awards 2019 Plant, Malaysian Construction Industry Excellence Awards
(MCIEA) 2015
• Gamuda Berhad – The Innovation in Assessment Prize, The
British Council Assessment Research Awards 2019 • 5-Star SCORE Rating, Construction Industry Development Board
Malaysia SCORE Programme 2014
• Gamuda IBS – Winner, The Highest Investment by Domestic
Companies in Selangor, Selangor Investor Appreciation • Highest Profit Growth Company (Construction), The Edge Billion
Awards 2018 Ringgit Club Awards 2014
• Industry Excellence Awards (Main Market), The Highest Standard • MBAM Honorary Builder, Master Builders Association Malaysia
of Reporting in Annual Report, Construction and Infrastructure Awards 2014
Project Companies, NACRA 2018
• Highest Profit Growth Company (Construction), The Edge Billion
• Pan Borneo Highway package (WPC-04) Sarawak project Pantu Ringgit Club Awards 2013
Junction to Batang Skrang – Best Overall Performing Works
Package, July - December 2018, Project Assessment System • Overall Best Managed Company in Malaysia (Mid Cap), Asia
(PROJAS) 2018 Money Awards 2013

• Best Project Award (Infrastructure), Malaysian Construction • Best Performing Stock (Construction), The Edge Billion Ringgit
Industry Excellence Awards (MCIEA) 2017 Club Awards 2013

• The Highest Return on Equity Over Three Years (Construction), • Property and Construction Sector, Malaysia’s 100 Leading
The Edge Billion Ringgit Club Awards 2017 Graduate Employers 2012

• Inclusiveness & Diversity Reporting Awards 2017 (Silver), NACRA • Asia’s Best Managed Companies, Euromoney, 2008
2017 • Best Under a Billion 200 Companies, Forbes Global, 2005
• Builder of the Year Award, Malaysian Construction Industry • Kaohsiung MRT, The Environmental Bureau Of Kaohsiung
Excellence Awards (MCIEA) 2016 Country Government, Republic of China, Air Quality Protection
• Best Corporate Responsibility (CR), Initiatives Award (Big Cap Model Award, 2003
Companies), The Edge Billion Ringgit Club (BRC) Corporate • Best Under a Billion 200 Companies, Forbes Global, 2002
Awards 2016
• Best Managed Company and Strongest Commitment to Enhancing
• Most Profitable Company (Highest Return on Equity Over Three Shareholder Value, Finance Asia, 2002
Years), The Edge Billion Ringgit Club Awards 2015

154 06 Achievements
 ANNUAL REPORT 2020

GAMUDA LAND

• Celadon City, Vietnam – Best High End Condo Landscape • Joya, Gamuda Gardens – The Cornerstone Award - Best Landed
Architectural Design (Diamond Centery), PropertyGuru Vietnam Development (Excellence), StarProperty.my Awards 2019
Property Awards 2020
• Pangsapuri Danau Seri, Valencia – The Edge – PEPS Value
• Celadon City, Vietnam – Best Masterplan Design, PropertyGuru Creation Excellence Awards (Residential Category) (Winner),
Vietnam Property Awards 2020 The Edge Property Excellence Awards 2019
• Celadon City, Vietnam – Best Sporting Facility, PropertyGuru • Ambang Botanic 2, Phase 27 – The Edge – PEPS Value Creation
Vietnam Property Awards 2020 Awards (Mention), The Edge Property Excellence Awards 2019
• Gamuda Land Vietnam – Special Recognition in Sustainable • Gamuda Gardens in Gamuda City, Hanoi, Vietnam – Outstanding
Design, PropertyGuru Vietnam Property Awards 2020 Overseas Project Award, The Edge Property Excellence
Awards 2019
• Gamuda Land Vietnam – Special Recognition for Sustainable
Construction, PropertyGuru Vietnam Property Awards 2020 • Gamuda Land – Property Development (Bronze), Putra Brand
Awards 2019
• Gamuda Land Vietnam – Special Recognition for Building
Communities, PropertyGuru Vietnam Property Awards 2020 • 661 Chapel St – Commercial and Residential Design, Good
Design Awards, Architectural Design 2019
• Gamuda Land Vietnam – Special Recognition for ESG,
PropertyGuru Vietnam Property Awards 2020 • Celadon City – World Silver Winner under the Master Plan
category, FIABCI World Prix d’Excellence Awards 2019
• Gamuda Land Vietnam – Best Developer, PropertyGuru Vietnam
Property Awards 2020 • Jade Hills – Gold Award for Above 10 Years Non-Strata Residential
Category, EdgeProp Malaysia's Best Managed Property
• Gamuda Land – Top Ranked Developer of the Year,
Awards 2019
StarProperty.my Awards 2020
• Horizon Hills – Gold Award for Below 10 Years Multiple-Owned
• Horizon Hills – The Southern Star Award (Excellence),
Strata Residental Category, EdgeProp Malaysia's Best Managed
StarProperty.my Awards 2020
Property Awards 2019
• twentyfive.7 – The Family Friendly Award (Excellence),
• Valencia – Silver Award for EdgeProp-ILAM Malaysia’s Sustainable
StarProperty.my Awards 2020
Landscape Award, EdgeProp Malaysia's Best Managed Property
• Gamuda Cove – The Earth Conscious Award - Best Sustainable Awards 2019
Development (Excellence), StarProperty.my Awards 2020
• Horizon Hills – Best Landed Development (Malaysia), PropertyGuru
• Gamuda City – Winner, World Gold under the Master Plan Asia Property Awards 2019
category, FIABCI World Prix d’Excellence Awards 2020
• Horizon Hills – Best Landed Development (Iskandar), PropertyGuru
• Gamuda Land – Winner, EdgeProp Malaysia’s Responsible Asia Property Awards 2019
Developer: Building Sustainable Development Award,
• Horizon Hills – Best Township Development (Iskandar),
EdgeProp Malaysia’s Best Managed and Sustainable Property
PropertyGuru Asia Property Awards 2019
Awards 2020
• Kundang Estates – The Cornerstone Award – Best Landed
• The Cove Precinct, Horizon Hills – Below 10 years Non-Strata
Development (Excellence), StarProperty.my Awards 2019
Residential Category (Gold), EdgeProp Malaysia’s Best Managed
& Sustainable Property Awards 2020 • Gamuda Gardens – The Earth Conscious Award – Best Sustainable
Development (Excellence), StarProperty.my Awards 2019
• The Robertson – Below 10 Years Mixed-Development Category
(Silver), EdgeProp Malaysia’s Best Managed & Sustainable • Gamuda Cove – The Five Elements Award (above 500 acres)
Property Awards 2020 – Best Comprehensive Township (Excellence), StarProperty.my
Awards 2019
• Horizon Hills – EdgeProp-ILAM Malaysia’s Sustainable Landscape
Award (Gold), EdgeProp Malaysia’s Best Managed & Sustainable • Horizon Hills – The Long Life Award – Best Health and Wellness
Property Awards 2020 Development (Excellence), StarProperty.my Awards 2019
• Kota Permai Golf & Country Club – Best Golf Experience in • Horizon Hills – The Luxury Series Award – Best Luxury
Selangor, Clubhouse Magazine & Tourism Selangor 2020 Development (Bungalow Residence), StarProperty.my
Awards 2019
• Kota Permai Golf & Country Club – Asian Tour Destinations,
Asian Tour 2020 • Kundang Estates – The Neighbourhood Award (below 500 acres)
– Best Boutique Township (Excellence), StarProperty.my
• Gamuda Bhd (Property Division) – The Edge Top 10 Property
Awards 2019
Developers Awards, The Edge Property Excellence Awards 2019

06 Achievements
155
GAMUDA BERHAD 197601003632 (29579-T)

Awards and Achievements

GAMUDA LAND

• HighPark Suites – The Small is Big Developments Award – • Jade Hills – ILAM Malaysia’s Sustainable Landscape Award
Best Small Home Development (Excellence), StarProperty.my 2018, EdgeProp.my
Awards 2019
• The Hills Precinct, Horizon Hills – Malaysia’s Best Managed
• Gamuda Land – Top Ranked Developer of the Year, Property Award 2018. Category: Non-Strata (Residential) – Under
StarPropety.my Awards 2019 10 years 2018, EdgeProp.my
• Kota Permai Golf & Country Club – Best Managed Golf Club • Gamuda Gardens – Landscape Master Plan Award (Excellence),
in Asia Pacific (Second Runner-Up), Asian Golf Awards 2019 ILAM's Malaysia Landscape Architecture Awards 2018
• Kota Permai Golf & Country Club – Asia Pacific Order of Zenith, • Jadite Suites, Jade Hills – Landscape Development Award
Asian Golf Awards 2019 (Merit), ILAM's Malaysia Landscape Architecture Awards 2018
• Kota Permai Golf & Country Club – Top 3 Best Overall Golf • D’Suites, Horizon Hills – Landscape Development Award (Honour),
Experience in Malaysia, Pargolf People’s Choice Awards 2019 ILAM's Malaysia Landscape Architecture Awards 2018
• Kota Permai Golf & Country Club – Top 3 Best Maintained Golf • Gamuda Cove – Landscape Master Plan Award (Honour), ILAM's
Course in Malaysia, Pargolf People’s Choice Awards 2019 Malaysia Landscape Architecture Awards 2018
• Kota Permai Golf & Country Club – Top 3 Best Greens in • Lake Garden, Jade Hills, Landscape Design Award (Merit),
Malaysia, Pargolf People’s Choice Awards 2019 ILAM's Malaysia Landscape Architecture Awards 2018
• Kota Permai Golf & Country Club – Top 3 Best Corporate • twentyfive.7 – The Poseidon Award, Starproperty.my Award 2018
Tournament Venue in Malaysia, Pargolf People’s Choice Awards (Honours)
2019
• The Robertson – The Skyline Award, Starproperty.my Award
• Kota Permai Golf & Country Club – Top 3 Best Customer Service 2018 (Merit)
in Malaysia, Pargolf People’s Choice Awards 2019
• Horizon Hills Phase 2D3 – Winner, The EDGE-PEPS Value
• Kota Permai Golf & Country Club – Top 3 Best F&B – Halfway Creation Excellent Awards 2018
Hut in Malaysia, Pargolf People’s Choice Awards 2019
• Gamuda Land – Property Development (Bronze), Putra Brand
• Kota Permai Golf & Country Club – Top 100 Golf Courses in Awards 2018
Asia, Golf Travel China and Golf Travel Korea 2019
• Horizon Hills – The Best Family Centric Development, StarProperty.
• Horizon Hills Golf & Country Club – Best Golf Course in Malaysia my Jewels of Johor 2018 (Excellence)
(First Runner-Up), Asian Golf Awards 2019
• Horizon Hills – The Best Sustainable Development, StarProperty.
• Horizon Hills Golf & Country Club – Top 3 Best Greens in my Jewels of Johor 2018 (Excellence)
Malaysia, Pargolf People’s Choice Awards 2019
• Horizon Hills – The Best Safety Feature Development, StarProperty.
• Horizon Hills Golf & Country Club – Top 3 Best Clubhouse, my Jewels of Johor 2018 (Excellence)
Pargolf People’s Choice Awards 2019
• Gem Residences – Winner, International Property Award, Asia
• Gamuda Gardens – Merit Design Excellence Award (Above 500 Property Awards, Architecture & Development Category 2018
acres), Malaysia Institute of Planners (MIP) Planning Excellence
• Yen So Sewage Treatment, Gamuda City, Vietnam – Environmental
Awards 2018
(Rehabiliation/Conservation), FIABCI World Prix d'Excellence
• Yen So Park Masterplan – Merit Innovative Planning Award Awards 2018
(Masterplan Sector), Malaysia Institute of Planners (MIP) Planning
• Horizon Hills Golf & Country Club – Winner of HAPA Golf Course
Excellence Awards 2018
of the Year, Hospitality Asia Platinum Awards (HAPA) Regional
• Horizon Hills & Iskandar Puteri – Best Luxury Landed (Completed) Series Awards 2018
& Best Southern Development (Completed), iProperty Development
• Kota Permai Golf & Country Club – Winner of HAPA Golf Course
Excellence Awards 2018
of the Year, Hospitality Asia Platinum Awards (HAPA) Regional
• Horizon Hills Golf & Country Club – 1st Runner-Up, Best Course Series Awards 2018
in Malaysia, Asian Golf Awards 2018
• Gamuda Berhad – Property Division, The Edge Top 10 Property
Developers Awards 2018

156 06 Achievements
 ANNUAL REPORT 2020

MMC GAMUDA JOINT VENTURE

• Winner of Augmented & Virtual Reality (Engineering), Malaysia • Innovation Award for Variable Density in Tunnelling Technique
Technology Excellence Awards 2020 for the Building Information for KVMRT (Sungai Buloh-Kajang Line) Underground Package,
Modelling in Augmented Reality (BIMAR) application Malaysian Construction Industry Excellence Awards (MCIEA) 2017
• Winner of Innovation in Tunnel Excavation Award, New Civil • Asia Geospatial Excellence Award 2017 for Application of Geospatial
Engineer Tunnelling Awards 2019 for the Autonomous Tunnel Technology in Digital Engineering by Geospatial Media &
Boring Machine Communications
• Winner of Technical Product/Equipment Innovation, ITA Tunnelling • Young Tunneller of the Year Award for KVMRT (Sungai Buloh-
and Underground Space Awards 2019 for the Autonomous Tunnel Kajang Line) Underground Package, International Tunnelling
Boring Machine Awards 2016
• Winner of Reality Modelling Category, Year in Infrastructure • Winner, (with Distinction) Underground Portion of KVMRT (Sungai
Bentley Awards 2019 for the use of Bentley Systems ContextCapture Buloh-Kajang Line), British Safety Council International Safety
reality modelling software to generate project wide digital twins Award 2015
from drone captured visuals overlaid on Building Information
Modelling (BIM) design • Honorary Certification for Safety and Health of KVMRT (Sungai
Buloh-Kajang Line), Underground by Department of Occupational
• British Safety Council’s Health and Safety Audit, Four Star Rating Safety and Health (DOSH) in 2015
for KVMRT (Sungai Buloh-Kajang Line) Underground Package,
British Safety Council 2019 • Best Major Infrastructure Project (Special Mention) for the
Electrified Double Track Project (Ipoh – Padang Besar), Malaysian
• Sword of Honour Award for KVMRT (Sungai Buloh-Serdang- Construction Industry Excellence Awards (MCIEA) 2015
Putrajaya Line), British Safety Council 2019
• Winner of Technical Innovation of the Year for the Variable Density
• Public Services Architecture Award for KVMRT (Sungai Buloh- Tunnel Boring Machine (VD TBM), KVMRT (Sungai Buloh-Kajang
Serdang-Putrajaya Line) Elevated Station Serambi Design, Line) – Underground, NCE International Tunnelling and Underground
Asia Pacific Property Awards 2019 Space Awards 2014
• International Safety Award (with Distinction) for KVMRT • National Occupational Safety and Health (OSH) Excellence Award
(Sungai Buloh-Serdang-Putrajaya Line) Underground, British Safety 2012, Construction Category for the Electrified Double Track
Council 2019 Project (Ipoh – Padang Besar)
• International Safety Award (Sector Awards) for Construction & • United Nations Scroll of Honour Award for SMART Tunnel, World
Property Activities Category, British Safety Council 2019 Habitat Day 2011
• International Safety Award for Best in Country Award, British • Runner Up of FIABCI Prix d’Excellence Awards, Specialised Project
Safety Council 2019 (Purpose Built) Category for SMART Tunnel, International Real
Estate Federation (FIABCI) 2011
• British Safety Council Occupational Health and Safety Audit, Five
Star Rating, British Safety Council 2019 • Best International Project for SMART Tunnel, British Construction
Industry Award 2011
• Community Engagement Award for KVMRT (Sungai Buloh-Serdang-
Putrajaya Line) Underground, Ground Engineering Awards 2019 • Design and Construction Excellence Award for SMART Tunnel by
Institution of Engineers Malaysia 2011
• Winner of Public Service Architecture Malaysia for MRT Line 2
Elevated Station Planning & Design, Asia Pacific Property • Special Award for National Contribution for SMART Tunnel,
Awards 2019 Malaysia Property Award by International Real Estate Federation
(FIABCI), Malaysian Chapter 2011
• Finalist for New Civil Engineer TechFest Smart Use of Machinery
(Unmanned aerial vehicle) Awards 2019 for the submission of • Best Contractor Award for SMART Tunnel, Malaysian Construction
Drone Surveying for BIM and GIS data capture Industry Excellence Award 2011 by CIDB
• BIM Level 2 Excellence Award 2018 (Winner) for Civil Contractor • Special Award for Innovation for SMART Tunnel, Malaysian
Category by MRT Corp Construction Industry Excellence Award 2011 by CIDB
• Builder’s Award (Civil Engineering Construction category) for • Special Award for Environment for SMART Tunnel, Malaysian
KVMRT Sungai Buloh-Kajang (SBK) Line underground package, Construction Industry Excellence Award 2011 by CIDB
44 th International Federation of Asian and Western Pacific
Contractors’ Associations (IFAWPCA) 2018 • Special Award for National Contribution for SMART Tunnel,
Malaysia Property Award by International Real Estate Federation
• Highly Commended Community Engagement Award for KVMRT (FIABCI), Malaysian Chapter 2010
(Sungai Buloh-Kajang Line) Underground Package, Civil Engineer
Tunnelling Awards 2017 • British Construction Industry Award 2008 for SMART Tunnel

• Winner of BIM Advancements in the Rail & Transit Category, • Best Contractor Award for SMART Tunnel, Malaysian Construction
Bentley’s Be Inspired Awards 2017 for the use of BIM technology Industry Excellence Award 2008 by CIDB
in designing and constructing the KVMRT (Sungai Buloh-Serdang- • Special Award for Innovation for SMART Tunnel, Malaysian
Putrajaya Line) Construction Industry Excellence Award 2007 by CIDB
• Special Award for Environment for SMART Tunnel, Malaysian
Construction Industry Excellence Award 2007 by CIDB

06 Achievements
157
FINANCIAL
STATEMENTS
160 Directors’ Responsibility Statement

161 Directors’ Report

168 Statement by Directors

168 Statutory Declaration

169 Independent Auditors’ Report

176 Consolidated Income Statement

177 Consolidated Statement of Comprehensive Income

178 Consolidated Statement of Financial Position

180 Consolidated Statement of Changes in Equity

182 Consolidated Statement of Cash Flows

184 Income Statement

185 Statement of Comprehensive Income

186 Statement of Financial Position

187 Statement of Changes in Equity

188 Statement of Cash Flows

190 Notes to the Financial Statements

GAMUDA BERHAD 197601003632 (29579-T)

Directors’ Responsibility Statement

In respect of Audited Financial Statements for the financial year ended 31 July 2020

The Directors are required by the Companies Act, 2016 (“Act”) and the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad to prepare the financial statements for each financial year in accordance with the Malaysian Financial Reporting
Standards (“MFRS”), International Financial Reporting Standards and requirements of the Act in Malaysia.

The Directors are responsible to ensure that the audited financial statements give a true and fair view of the financial position,
financial performance and cash flows of the Group and the Company for the financial year. Where there are new accounting
standards or policies that become effective during the year, the impact of these new treatments would be stated in the notes
to the financial statements, accordingly.

In preparing the financial statements, the Directors have:

• adopted appropriate and relevant accounting policies and applied them consistently;
• made judgments and estimates that are reasonable and prudent;
• ensure that all applicable accounting standards have been followed; and
• prepared financial statements on a “going concern” basis as the Directors have a reasonable expectation, having made
enquiries, that the Group and the Company have adequate resources to continue operations for the foreseeable future.

The Directors are responsible to ensure that the Group and the Company keep accounting records which disclose the financial
position of the Group and of the Company with reasonable accuracy, enabling them to ensure that the financial statements
comply with the Act.

The Directors have overall responsibility for taking such steps as are reasonably available to them to safeguard the assets of
the Group and of the Company to prevent and detect fraud and other irregularities.

160 07 Financial Statements

 ANNUAL REPORT 2020

Directors’ Report
The directors have pleasure in presenting their report together with the audited financial statements of the Group and of the
Company for the financial year ended 31 July 2020.

PRINCIPAL ACTIVITIES
The principal activities of the Company are that of investment holding and civil engineering construction.

The principal activities of the subsidiaries, associated companies and joint arrangements are described in Notes 17, 18 and 19
to the financial statements respectively.

RESULTS

Group Company
RM’000 RM’000

Profit for the year 424,190 238,084

Attributable to:
Owners of the Company 371,680 238,084
Non-controlling interests 52,510 –

424,190 238,084

There was no material transfer to or from reserves or provisions during the financial year other than as disclosed in the financial
statements.

In the opinion of the directors, the results of the operations of the Group and of the Company during the financial year were
not substantially affected by any item, transaction or event of a material and unusual nature other than as disclosed in the
financial statements.

DIVIDENDS
The amount of dividends paid by the Company since 31 July 2019 were as follows:

RM’000

In respect of the financial year ended 31July 2020:

First interim dividend of 6 sen per ordinary share declared on 13 December 2019
– Dividend paid by issuance of new shares on 25 February 2020 pursuant to the Company’s Dividend
Reinvestment Plan 71,387
– Dividend paid by cash on 25 February 2020 77,503

148,890

At the Extraordinary General Meeting of the Company held on 5 December 2019, the shareholders of the Company resolved to
approve the Company’s Dividend Reinvestment Plan (“DRP”). The authority was granted to the Company to allot and issue new
shares in the Company pursuant to the DRP.

The DRP provides an option to the shareholders to reinvest either all or a portion of the declared dividends in new shares in
lieu of receiving cash. Shareholders who elect not to participate in the option to reinvest, will receive the entire dividend wholly
in cash.

A total of 19,829,839 new ordinary shares were issued on 25 February 2020 at an issue price of RM3.60 per share under the
First DRP, amounting to RM71,387,420. The remaining portion of RM77,503,049 was paid in cash on 25 February 2020.

The directors do not recommend the payment of any final dividend in respect of the current financial year.

07 Financial Statements
161
GAMUDA BERHAD 197601003632 (29579-T)

Directors’ Report (Cont’d.)

DIRECTORS OF THE COMPANY

The names of the directors of the Company in office since the beginning of the financial year and at the date of this report are:
Y Bhg Dato’ Mohammed bin Haji Che Hussein
Y Bhg Dato’ Lin Yun Ling*
Y Bhg Dato’ Ir. Ha Tiing Tai*
YTM Raja Dato’ Seri Eleena binti Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-lah
Y Bhg Tan Sri Dato’ Setia Haji Ambrin bin Buang
YM Tunku Afwida binti Tunku A.Malek
Puan Nazli binti Mohd Khir Johari
Encik Mohammed Rashdan bin Mohd Yusof
(alternate to Y Bhg Dato’ Lin Yun Ling)
Y Bhg Dato’ Ubull a/l Din Om*
(alternate to Y Bhg Dato’ Ir Ha Tiing Tai)

* Directors of the Company and certain subsidiary(ies)

DIRECTORS OF THE SUBSIDIARIES

The names of the directors of the Company’s subsidiary(ies) since the beginning of the financial year to the date of this report,
excluding those who are already listed above are:
Adil Putra bin Ahmad
Ahcene El Boulhais (Appointed w.e.f. 01.07.2020)
Ajit Singh Rai (Appointed w.e.f. 30.06.2020)
Andrew Edward Kesik
Aw Sei Cheh (Appointed w.e.f. 01.07.2020)
Azmi bin Mohamad
Beh Boon Ewe (Appointed w.e.f. 01.07.2020)
Carine Lacroix (Appointed w.e.f. 30.07.2020)
Carla Maria Alves Silva (Appointed w.e.f. 01.07.2020)
Caroline Baker
Chan Kong Wah
Chew Wee Hwang
Chua Kheng Sun
Dato’ Chow Chee Wah
Dato’ Goon Heng Wah
Dato’ Haji Abdul Sahak bin Safi
Dato’ Haji Azmi bin Mat Nor
Dato’ Mohd Azizi bin Mohd Zain
Dato’ Lim Kean Seng (Appointed w.e.f. 07.08.2020)
Dato’ Noordin bin Alaudin
Dato’ Seri Ir. Kamarul Zaman bin Mohd Ali
Datuk Hasmi bin Hasnan
Devananda Naraidoo
Dr. Ooi Lean Hock
Eoin Conroy (Appointed w.e.f. 01.07.2020)
Foong Vooi Lin
Goh Chee Young
Hajah Siti Zubaidah binti Haji Abd Jabar (Appointed w.e.f. 04.09.2020)
Khor Thiam Chay
Liang Kai Chong
Looi Hong Weei

162 07 Financial Statements

 ANNUAL REPORT 2020

Directors’ Report (Cont’d.)

DIRECTORS OF THE SUBSIDIARIES (CONT'D.)

The names of the directors of the Company’s subsidiary(ies) since the beginning of the financial year to the date of this report,
excluding those who are already listed above are: (cont'd.)
Low Kim Teik
Mohd Roslan bin Sarip
Ng Hau Wei
Ng Kit Cheong
Ngan Chee Meng
Rishi Kumar Emrit
Saw Wah Theng
Sazally bin Saidi
Sim Kwong Yong
Soo Kok Wong
Szeto Wai Loong
Tan Ek Khai
Tan Sri Datuk Ooi Kee Liang
Tang Meng Loon
Tariq Syed Usman
Teh Teck Seong
Vaneeta Bickoo Brelu-Brelu
Wong Mun Keong
Wong Tsien Loong
Yap Peng Loong
Yee Yew Weng
Yeoh Hin Kok
Chua Chong Num (Resigned w.e.f. 01.01.2020)
Mohamed Reza bin Abdul Rahim (Resigned w.e.f. 07.08.2020)
Wong Ping Eng (Resigned w.e.f. 01.07.2020)
Hajah Norita binti Mohd Sidek (Resigned w.e.f. 03.09.2020)

DIRECTORS' BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the
Company was a party, whereby the directors might acquire benefits by means of acquisition of shares in or debentures of the
Company or any other body corporate, other than those arising from the share options granted pursuant to the Employees’
Share Option Scheme (“ESOS”).

Since the end of the previous financial year, no director has received or become entitled to receive a benefit (other than benefits
included in the aggregate amount of emoluments received or due and receivable by the directors or the fixed salary of a full-
time employee of the Company as shown below) by reason of a contract made by the Company or a related corporation with
any director or with a firm of which he is a member, or with a company in which he has a substantial financial interest, except
as disclosed in Note 41 to the financial statements.

Directors’ benefits are as disclosed in Note 6 to the financial statements.

DIRECTORS’ AND OFFICERS’ INDEMNITY

The Company maintains a liability insurance for the directors and officers of the Company and its subsidiaries throughout the
financial year, which provides insurance cover of RM50,000,000. The amount of insurance premium paid by the Company for the
financial year ended 31 July 2020 was RM91,000.

07 Financial Statements
163
GAMUDA BERHAD 197601003632 (29579-T)

Directors’ Report (Cont’d.)

DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, the interests of directors of the Company at the end of the financial year
in shares, options over shares and warrants in the Company and its related corporations during the financial year were as
follows:

Number of ordinary shares

Bought/
Dividend
reinvestment
Gamuda Berhad 1 August 2019 plan Sold 31 July 2020

Direct holding

Y Bhg Dato’ Lin Yun Ling 75,035,736 – – 75,035,736

Y Bhg Dato’ Ir. Ha Tiing Tai 26,936,276 447,724 – 27,384,000
YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin
Shah Al-Maghfur-lah 225,000 3,750 – 228,750
Encik Mohammed Rashdan bin Mohd Yusof 450,000 7,500 – 457,500
Y Bhg Tan Sri Dato’ Setia Haji Ambrin bin Buang 4,000 – – 4,000

Indirect holding

Y Bhg Dato’ Ir. Ha Tiing Tai# 86,000 1,000 – 87,000

YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin
Shah Al-Maghfur-lah* 118,000,000 1,708,333 (3,208,333) 116,500,000

#
Deemed interest through son
* Deemed interest through Generasi Setia (M) Sdn. Bhd.

Employees’ Share Option Scheme (“ESOS”)

Number of ordinary shares

1 August 2019 Granted Expired 31 July 2020

Y Bhg Dato’ Lin Yun Ling 4.46 1,500,000 – (1,500,000) –

3.65 – 750,000 (750,000) –
Y Bhg Dato’ Ir. Ha Tiing Tai 3.65 – 400,000 (400,000) –
Y Bhg Dato’ Ubull a/l Din Om 4.46 325,000 – (325,000) –
3.84 325,000 – (325,000) –
4.78 65,000 – (65,000) –
3.65 – 180,000 (180,000) –
Encik Mohammed Rashdan bin Mohd Yusof 3.38 1,600,000 – (1,600,000) –
3.65 – 400,000 (400,000) –

164 07 Financial Statements

 ANNUAL REPORT 2020

Directors’ Report (Cont’d.)

DIRECTORS’ INTERESTS (CONT’D.)

Warrants 2016/2021

Number of warrants

1 August 2019 Bought Sold 31 July 2020

Direct holding

Y Bhg Dato’ Lin Yun Ling 12,883,600 – – 12,883,600

YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin
Shah Al-Maghfur-lah 40,300 – – 40,300
Encik Mohammed Rashdan bin Mohd Yusof 550,000 – – 550,000

Indirect holding

Y Bhg Dato’ Ir. Ha Tiing Tai# 12,800 – – 12,800

YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin Shah
Al-Maghfur-lah* 12,000,000 – (3,310,000) 8,690,000

#
Deemed interest through son
* Deemed interest through Generasi Setia (M) Sdn. Bhd.

Other than as disclosed above, none of the other directors of the Company at the end of the financial year had any interest in
shares, options over shares or warrants of the Company or its related corporations during the financial year.

ISSUANCE OF SHARES
During the financial year, the total numbers of issued and paid-up ordinary shares of the Company has been increased from
2,472,322,033 to 2,513,527,654 by way of:

(a) issuance of 20,899,000 new ordinary shares for cash arising from the exercise of share options under the Company’s ESOS
as disclosed in Note 26(c) to the financial statements;

(b) issuance of 476,782 new ordinary shares for cash arising from the exercise of Warrants 2016/2021 at the exercise price of
RM4.05 per warrant in accordance with the Deed Poll dated 22 January 2016 as disclosed in Note 26(c) to the financial
statements; and

(c) issuance of 19,829,839 new ordinary shares pursuant to the First DRP at the price of RM3.60 per share.

The ordinary shares issued from the exercise of ESOS, Warrants 2016/2021 and DRP shall rank pari passu in all respects with
the existing issued ordinary shares of the Company except that they shall not be entitled to any dividends, rights, allotments
and/or other distributions, the entitlement date of which is prior to the date of allotment of the new shares arising from the
exercise of ESOS, Warrants 2016/2021 and First DRP.

07 Financial Statements
165
GAMUDA BERHAD 197601003632 (29579-T)

Directors’ Report (Cont’d.)

EMPLOYEES’ SHARE OPTION SCHEME

The Gamuda Berhad Employees’ Share Option Scheme (“ESOS”) was approved by shareholders at the Extraordinary General
Meeting held on 4 December 2014 and is effective for 5 years from 10 April 2015 to 9 April 2020.

As at 9 April 2020, 204,525,000 ESOS remain unexercised. Pursuant to Clause 14.1 of the ESOS By-Laws, all options lapsed
upon the expiry of the ESOS.

The principal features of the ESOS, details of share options granted and lapsed as at 31 July 2020 are disclosed in Note 26(e)
and Note 26(g) to the financial statements.

WARRANTS 2016/2021
On 7 March 2016, the Company allotted and issued 400,984,509 new Warrants 2016/2021 (“Warrants”) at an issue price of RM0.25
per Warrant on the basis of 1 Warrant for every 6 existing ordinary shares held in the Company (“Rights Issue of Warrants”).

The Warrants are valid for exercise for a period of 5 years from its issue date and will expire on 6 March 2021. During this
period, each Warrant entitles the registered holder to subscribe for 1 new ordinary share in the Company at any time on or
after 7 March 2016 to 6 March 2021, at an exercise price of RM4.05 per Warrant in accordance with the Deed Poll dated 22
January 2016. Any Warrants not exercised by its expiry date will lapse thereafter and cease to be valid for all purposes. As at
the reporting date, 387,221,000 Warrants remained unexercised.

OTHER STATUTORY INFORMATION

(a) Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps:
(i) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance
for doubtful debts and satisfied themselves that all known bad debts have been written off and that adequate allowance
had been made for doubtful debts; and
(ii) to ensure that any current assets which were unlikely to realise their values as shown in the accounting records in
the ordinary course of business had been written down to an amount which the Group and the Company might be
expected so to realise.

(b) At the date of this report, the directors are not aware of any circumstances which would render:
(i) the amount written off for any bad debts or the amount of the allowance for doubtful debts in the financial statements
of the Group and of the Company inadequate to any substantial extent; and
(ii) the values attributed to the current assets in the financial statements of the Group and of the Company misleading.

(c) At the date of this report, the directors are not aware of any circumstances which have arisen which would render adherence
to the existing method of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.

(d) At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or
financial statements of the Group and of the Company which would render any amount stated in the financial statements
misleading.

(e) At the date of this report, there does not exist:

(i) any charge on the assets of the Group or of the Company which has arisen since the end of the financial year which
secures the liabilities of any other person; or
(ii) any contingent liability of the Group or of the Company which has arisen since the end of the financial year.

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Directors’ Report (Cont’d.)

OTHER STATUTORY INFORMATION (CONT’D.)

(f) In the opinion of the directors:
(i) no contingent or other liability has become enforceable or is likely to become enforceable within the period of twelve
months after the end of the financial year which will or may affect the ability of the Group or of the Company to meet
their obligations when they fall due; and
(ii) no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the
financial year and the date of this report which is likely to affect substantially the results of the operations of the
Group or of the Company for the financial year in which this report is made.

(g) The Company has been granted exemption by the Companies Commission of Malaysia for its three subsidiaries from having
to comply with Section 247(3) of the Companies Act 2016 to adopt a financial year end which coincides with that of its holding
company for the financial year ended 31 July 2020 as follows:
(i) Gamuda Land Vietnam Limited Liability Company and Gamuda Land (HCMC) Joint Stock Company with June financial
year end; and
(ii) Gamuda – WCT (India) Private Limited with March financial year end.

SIGNIFICANT EVENTS
Significant events are as disclosed in Note 42 to the financial statements.

AUDITORS AND AUDITORS’ REMUNERATION

The auditors, Ernst & Young PLT, have expressed their willingness to continue in office.

Auditors’ remuneration is as follows:

Group Company
RM’000 RM’000

Ernst & Young PLT 1,478 328

Other auditors 96 53

1,574 381

INDEMNIFICATION OF AUDITORS
To the extent permitted by law, the Group and the Company have agreed to indemnify its auditors, Ernst & Young PLT, as part
of the terms of its audit engagement against claims by third parties arising from the audit. No payment has been made to
indemnify Ernst & Young PLT during the financial year nor since the end of the financial year.

Signed on behalf of the Board in accordance with a resolution of the directors dated 8 October 2020.

Dato’ Mohammed bin Haji Che Hussein Dato’ Ir. Ha Tiing Tai
Chairman Deputy Group Managing Director

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Statement by Directors
Pursuant to Section 251(2) of the Companies Act 2016

We, Dato’ Mohammed bin Haji Che Hussein and Dato’ Ir. Ha Tiing Tai, being two of the directors of Gamuda Berhad, do hereby
state that, in the opinion of the directors, the accompanying financial statements set out on pages 176 to 351 are drawn up in
accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the
Companies Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as
at 31 July 2020 and of their financial performance and cash flows for the year then ended.

Signed on behalf of the Board in accordance with a resolution of the directors dated 8 October 2020.

Dato’ Mohammed bin Haji Che Hussein Dato’ Ir. Ha Tiing Tai
Chairman Deputy Group Managing Director

Statutory Declaration
Pursuant to Section 251(1)(b) of the Companies Act 2016

I, Soo Kok Wong, being the officer primarily responsible for the financial management of Gamuda Berhad, do solemnly and
sincerely declare that the accompanying financial statements set out on pages 176 to 351 are in my opinion correct, and I make
this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations
Act, 1960.

Subscribed and solemnly declared by

the abovenamed Soo Kok Wong
at Petaling Jaya in Selangor Darul Ehsan
on 8 October 2020. Soo Kok Wong

Before me,
Chin Chia Man (No. B449)
Commissioner for Oaths

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 ANNUAL REPORT 2020

Independent Auditors’ Report

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Opinion
We have audited the financial statements of Gamuda Berhad, which comprise the statements of financial position as at 31 July
2020 of the Group and of the Company, and the income statements, statements of comprehensive income, statements of changes
in equity and statements of cash flows of the Group and of the Company for the year then ended, and notes to the financial
statements, including a summary of significant accounting policies, as set out on pages 176 to 351.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the
Company as at 31 July 2020, and of their financial performance and their cash flows for the year then ended in accordance
with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies
Act 2016 in Malaysia.

Basis For Opinion

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing.
Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Independence and Other Ethical Responsibilities

We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and
Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Code of Ethics for Professional Accountants
(including International Independence Standards) (“IESBA Code”), and we have fulfilled our other ethical responsibilities in
accordance with the By-Laws and the IESBA Code.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the Group and of the Company for the current year. These matters were addressed in the context of our audit
of the financial statements of the Group and of the Company as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.

We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements section
of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed
to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the basis of our audit opinion on the
accompanying financial statements.

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GAMUDA BERHAD 197601003632 (29579-T)

Independent Auditors’ Report (Cont’d.)

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D.)

Key Audit Matters (cont’d.)
1. Revenue and cost of sales from property development activities
A significant proportion of the Group’s revenues and profits are derived from property development contracts which span
more than one accounting period. For the financial year ended 31 July 2020, property development revenue and cost of
sales are as follows:
Property development activities
Revenue: RM1,321,316,000 (36% of Group’s revenue)
Cost of sales: RM835,445,000 (32% of Group’s cost of sales)

The Group has determined that certain performance obligations in relation to property development activities are satisfied
over time and thus recognises revenue from this activity over time.

The amount of revenue and profit recognised from property development activities are dependent on, amongst others, the
extent of costs incurred to the total estimated costs of construction to derive the percentage-of-completion; the actual
number of units sold and the estimated total revenue for each of the respective projects.

We identified revenue and cost of sales from property development activities as areas requiring audit focus as significant
management’s judgement and estimates are involved in estimating the total property development costs.

In addressing this area of focus, we performed, amongst others, the following procedures:

i. Obtained an understanding of the internal controls over the accuracy and timing of revenue recognised in the financial
statements, including controls performed by management in estimating the total property development cost, profit
margin and progress of development projects;

ii. For individually significant projects, we read the sales and purchase agreements entered into with customers to obtain
an understanding of the specific terms and conditions;

iii. Evaluated the assumptions applied in estimating the total property development costs for each property development
phase by examining documentary evidence such as letters of award issued to contractors to support the budgeted
gross development cost. We also considered the historical accuracy of management’s forecasts for the similar property
development projects within the Group in evaluating the estimated total property development costs;

iv. Observed the progress of the property development phases by performing site visits and examined the physical completion
progress reports. We have also discussed the status of on-going property development phases with management,
finance personnel and project officials;

v. Evaluated management’s assessment on whether provision for liquidated ascertained damages is required through
supporting documents such as the sales and purchase agreements for the rates, extension of time approvals and work
progress report indicating the reasons for the delay and efforts to catch up for phases whereby actual progress is
behind planned progress; and

vi. Evaluated the determination of progress of development projects by examining supporting evidence such as contractors’
progress claims and suppliers’ invoices.

The Group’s disclosure on property development costs recognised is included in Note 13(b) to the financial statements.

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 ANNUAL REPORT 2020

Independent Auditors’ Report (Cont’d.)

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D.)

Key Audit Matters (cont’d.)
2. Revenue and cost of sales from construction contracts
A significant proportion of the Group’s revenues and profits are derived from construction contracts which span more than
one accounting period. For the financial year ended 31 July 2020, construction revenue and cost of sales are as follows:
Construction contracts
Revenue: RM1,624,739,000 (44% of Group’s revenue)
Cost of sales: RM1,400,467,000 (54% of Group’s cost of sales)

The Group has determined that certain performance obligations in relation to construction activities are satisfied over time
and thus recognises revenue from this activity over time.

We identified construction contract revenue and cost of sales as areas requiring audit focus as these areas involved significant
management’s judgement and estimates including:

i. Judgement and estimates made in the determination of whether variations in contract works should be included in the
contract revenue; and

ii. Estimates made in respect of the total estimated contract costs (which forms part of the computation of percentage-
of-completion for the construction contracts).

In addressing this area of focus, we performed, amongst others, the following procedures:

i. Read the contract to obtain an understanding of the specific terms and conditions;

ii. Obtained an understanding of the relevant internal controls over the accuracy and timing of revenue recognised in the
financial statements, including controls performed by the management in estimating variation orders, claims, total
contract costs, profit margin and progress of construction projects;

iii. Observed the progress of the constructions by performing site visits and examined the physical completion progress
reports. We have also discussed the status of on-going constructions with management, finance personnel and project
officials;

iv. Evaluated management’s assessment on whether provision for liquidated ascertained damages is required through
supporting documents such as the construction agreements for the rates, extension of time approvals and work progress
report indicating the reasons for the delay and efforts to catch up for phases whereby actual progress is behind planned
progress;

v. Agreed the contract sum to approved variation order forms with respect to variations in contract works and claims for
costs not included in the contract price;

vi. Evaluated the assumptions applied in the determination of the progress of construction projects in light of supporting
evidence such as letters of award, approved purchase orders, sub-contractors’ claims and invoices; and

vii. Evaluated the determination of progress of construction projects by examining supporting evidence such as contractors’
progress claims and suppliers’ invoices.

The Group’s disclosure on contract assets/liabilities is included in Note 22 to the financial statements.

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171
GAMUDA BERHAD 197601003632 (29579-T)

Independent Auditors’ Report (Cont’d.)

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D.)

Key Audit Matters (cont’d.)
3. Impairment of property, plant and equipment (“PPE”) in a subsidiary, Gamuda Industrial Building System Sdn. Bhd. (“GIBS”)
The carrying amount of GIBS’s PPE as at 31 July 2020 is RM394,881,000.

GIBS is involved in the manufacturing and installation of prefabricated concrete panels for construction of buildings. The continued
decline in demand for products has led to a decrease in production volume, excess capacity and hence, the under-utilisation of
PPE. This gives rise to impairment indications for the carrying amounts of the PPE. Accordingly, the Group had performed an
impairment assessment on the assets in the subsidiary by estimating the recoverable amount applying the value-in-use (“VIU”)
method. Estimating the VIU involves estimating the future cash inflows and outflows that will be derived from the cash generating
unit, and discounting them at an appropriate rate.

Due to the significance of the amount and the subjectivity involved in estimating the VIU, we identified this as our area of
audit focus as the impairment assessment involves determining the recoverable amounts using a discounted cash flow
approach which is complex and highly judgemental. Significant assumptions applied in the discounted cash flow, including
revenue growth rate is affected by the local market demand for the subsidiary’s products, and the economic conditions
surrounding the property development sector. Judgement was also applied in determining the appropriate rate to discount
the future cash flows to its present value.

In addressing this area of focus, we performed, amongst others, the following procedures:

i. Obtained an understanding of the relevant internal controls over estimating the recoverable amount of the PPE;

ii. Evaluated the management’s assumptions on revenue growth rate, gross profit margin and utilisation rate against the
Group’s plan to supply the prefabricated concrete panels for use in the Group’s future development projects;

iii. Assessed the appropriateness of the discount rate used to determine the present value of the cash flows and whether
the rate used reflects the current market assessments of the time value of money and the risks specific to the asset
is the return that investors would require if they were to choose an investment that would generate cash flows of
amounts, timing and risk profile equivalent to those that the entity expects to derive from the asset; and

iv. Analysed the sensitivity of the key assumptions by assessing the impact of changes to the key assumptions on the
recoverable amount.

The aforementioned impairment assessment gave rise to impairment loss amounting to RM148,100,000 in the financial
statements of the Group for the year ended 31 July 2020.

The Group’s disclosure on PPE is included in Note 12 to the financial statements.

4. Impairment of investment in a subsidiary – GIBS

The carrying amount of the Company’s investment in the wholly-owned subsidiary – GIBS as at 31 July 2020 is RM655,000,000
which accounted for approximately 6% of the Company’s total assets.

The continued losses reported by the Company’s subsidiary, GIBS, indicated that the carrying amount of the investment in
subsidiary may be impaired. Accordingly, the Company had performed an impairment assessment on the investment in the
subsidiary by estimating the recoverable amount applying the value-in-use (“VIU”) method. Estimating the VIU involves
estimating the future cash inflows and outflows that will be derived from the cash generating unit, and discounting them
at an appropriate rate.

Due to the significance of the amount and the subjectivity involved in estimating the VIU, we identified this as our area of audit
focus as the impairment assessment involves determining the recoverable amounts using a discounted cash flow approach which
is complex and highly judgemental. Significant assumptions applied in the discounted cash flow, including revenue growth rate
is affected by the local market demand for the subsidiary’s products, and the economic conditions surrounding the property
development sector. Judgement was also applied in determining the appropriate rate to discount the future cash flows to its
present value.

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 ANNUAL REPORT 2020

Independent Auditors’ Report (Cont’d.)

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D.)

Key Audit Matters (cont’d.)
4. Impairment of investment in a subsidiary – GIBS (cont’d.)
In addressing this area of focus, we performed, amongst others, the following procedures:

i. Obtained an understanding of the relevant internal controls over estimating the recoverable amount of the investment
in the subsidiary;

ii. Evaluated the management’s assumptions on revenue growth rate, gross profit margin and utilisation rate against the
Group’s plan to supply the prefabricated concrete panels for use in the Group’s future development projects;

iii. Assessed the appropriateness of the discount rate used to determine the present value of the cash flows and whether
the rate used reflects the return that investors would require if they were to choose an investment that would generate
cash flows of amounts, timing and risk profile equivalent to those that the entity expects to derive; and

iv. Analysed the sensitivity of the key assumptions by assessing the impact of changes to the key assumptions on the
recoverable amount.

The aforementioned impairment assessment gave rise to impairment loss amounting to RM285,000,000 in the financial
statements of the Company for the year ended 31 July 2020.

The Company’s disclosure on investments in subsidiaries are included in Note 17 to the financial statements.

We have fulfilled the responsibilities described in the Auditors’ responsibilities for the audit of the financial statements section
of our report, including in relation to these matters.

Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address
the matters below, provide the basis of our audit opinion on the accompanying financial statements.

Information Other than the Financial Statements and Auditor’s Report

The directors of the Company are responsible for the other information. The other information comprises the annual report,
but does not include the financial statements of the Group and of the Company and our auditors’ report thereon, which we
obtained prior to the date of this auditors’ report, and the annual report, which is expected to be made available to us after
the date of this auditors’ report.

Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not
and will not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial
statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially
misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report,
we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.

When we read the annual report, if we conclude that there is a material misstatement therein, we are required to communicate
the matter to the directors of the Company and take appropriate action.

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GAMUDA BERHAD 197601003632 (29579-T)

Independent Auditors’ Report (Cont’d.)

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D.)

Responsibilities of Directors for the Financial Statements
The Directors of the Company are responsible for the preparation of financial statements of the Group and of the Company that
give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards
and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal control as the
Directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free
from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Group’s
and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the Group or the Company or to cease
operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved
standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s
internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and
of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Company
to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including
the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions
and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision
and performance of the group audit. We remain solely responsible for our audit opinion.

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 ANNUAL REPORT 2020

Independent Auditors’ Report (Cont’d.)

to the members of Gamuda Berhad (Incorporated in Malaysia)

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS (CONT’D.)

Auditors’ Responsibilities for the Audit of the Financial Statements (cont’d.)
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters
in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

In accordance with the requirements of the Companies Act 2016 in Malaysia, we report that the subsidiaries of which we have
not acted as auditors, are disclosed in Note 17 to the financial statements.

OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act
2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.

Ernst & Young PLT Tan Shium Jye

202006000003 (LLP0022760-LCA) & AF0039 No. 02991/05/2022J
Chartered Accountants Chartered Accountant

Kuala Lumpur, Malaysia

8 October 2020

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GAMUDA BERHAD 197601003632 (29579-T)

Consolidated Income Statement

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000
Note (Restated)

Revenue 4 3,662,964 4,565,062

Other income 213,750 217,544
Construction contract costs recognised as contract expenses (1,400,467) (1,301,331)
Land and development costs (835,445) (1,606,469)
Highway maintenance and toll operations (32,540) (32,907)
Changes in inventory of finished goods and work in progress (29,429) (9,905)
Purchases - raw and trading materials (189,534) (261,338)
Production overheads (72,639) (92,531)
Staff costs 5 (256,919) (253,045)
Depreciation and amortisation (223,127) (192,128)
Other operating expenses (272,138) (327,687)

Profit from operations 7 564,476 705,265

Impairment of property, plant and equipment (148,100) -

Profit from operations after impairment 416,376 705,265

Finance costs 8 (139,340) (117,321)
Share of profits of associated companies 116,245 126,634
Share of profits of joint ventures 192,181 186,534

Profit before tax 585,462 901,112

Income tax expense 9 (161,272) (148,844)

Profit for the year 424,190 752,268

Profit attributable to:

Owners of the Company 371,680 700,186
Non-controlling interests 52,510 52,082

424,190 752,268

Earnings per share attributable to owners of the Company (sen)

Basic 10(a) 14.94 28.36
Diluted 10(b) 14.94 28.36

Net dividends per ordinary share (sen) 11 6.0 12.0

Profit attributable to owners of the Company can be analysed as follows:

Core profit for the year 519,780 700,186

Less: Impairment of property, plant and equipment of GIBS (148,100) –

Profit attributable to owners of the Company, as reported 371,680 700,186

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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 ANNUAL REPORT 2020

Consolidated Statement of Comprehensive Income

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000
(Restated)

Profit for the year 424,190 752,268

Other comprehensive income/(loss):

Other comprehensive income/(loss) to be reclassified to profit or loss in

subsequent periods:

Foreign currency translation (Note 27) 100,198 30,433

Share of associated companies’ foreign currency translation (Note 27) (6,661) 295
Net asset accretion in an associated company arising from capital contribution (Note 27) 4,821 6,080

98,358 36,808
Other comprehensive income/(loss) not to be reclassified to profit or loss in
subsequent periods:

Fair value remeasurement on defined benefit plan (Note 29) (6,568) (3,185)
Income tax effect 589 89

(5,979) (3,096)

Total comprehensive income for the year 516,569 785,980

Total comprehensive income attributable to:

Owners of the Company 464,889 733,744
Non-controlling interests 51,680 52,236

516,569 785,980

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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GAMUDA BERHAD 197601003632 (29579-T)

Consolidated Statement of Financial Position

As at 31 July 2020

31.07.2020 31.07.2019 01.08.2018

RM’000 RM’000 RM’000
Note (Restated) (Restated)

Assets
Non-current assets
Property, plant and equipment 12 1,063,066 1,155,510 1,009,191
Land held for property development 13(a) 3,169,895 2,919,183 2,655,137
Investment properties 14 455,501 432,815 363,886
Land use rights 15(a) - 1,470 1,895
Right-of-use assets 15(b) 15,138 - -
Concession development expenditure 16 1,355,472 1,306,472 1,421,203
Interests in associated companies 18 952,787 970,789 1,773,824
Interests in joint arrangements 19 1,057,348 1,201,332 998,623
Other investments 20 812 812 812
Deferred tax assets 32 40,665 41,767 40,434
Receivables 21(b) 890,835 1,074,294 1,005,967

9,001,519 9,104,444 9,270,972

Current assets
Property development costs 13(b) 1,847,214 1,885,356 2,083,252
Inventories 13(c) 917,734 765,197 490,639
Receivables 21(a) 2,223,689 1,938,030 1,842,188
Contract assets 22 1,701,664 1,604,295 1,276,378
Tax recoverable 44,056 34,158 42,293
Investment securities 23 644,467 396,664 384,271
Cash and bank balances 25 2,147,202 1,452,272 1,238,634

9,526,026 8,075,972 7,357,655

Total assets 18,527,545 17,180,416 16,628,627

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Consolidated Statement of Financial Position (Cont’d.)

As at 31 July 2020

31.07.2020 31.07.2019 01.08.2018

RM’000 RM’000 RM’000
Note (Restated) (Restated)

Equity and liabilities

Equity attributable to owners of the Company
Share capital 26 3,620,946 3,469,729 3,452,940
Reserves 4,920,146 4,592,894 4,140,928

Owners’ equity 8,541,092 8,062,623 7,593,868

Non-controlling interests 426,502 399,317 383,681

Total equity 8,967,594 8,461,940 7,977,549

Non-current liabilities
Payables 30(a) 235,550 197,982 143,396
Contract liabilities 22 38,446 50,786 61,168
Provision for liabilities 37 111,309 29,978 27,936
Deferred tax liabilities 32 335,904 375,794 407,319
Long term Islamic debts 33 2,135,000 1,975,000 2,465,000
Long term borrowings 34 817,171 982,741 1,784,964

3,673,380 3,612,281 4,889,783

Current liabilities
Payables 30(b) 1,760,450 1,844,392 1,629,297
Contract liabilities 22 1,353,551 942,039 546,376
Provision for liabilities 37 171,660 74,573 53,824
Short term Islamic debts 33 690,000 690,000 890,000
Short term borrowings 34 1,822,960 1,495,917 596,736
Tax payable 87,950 59,274 45,062

5,886,571 5,106,195 3,761,295

Total liabilities 9,559,951 8,718,476 8,651,078

Total equity and liabilities 18,527,545 17,180,416 16,628,627

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Consolidated Statement of Changes in Equity

For the financial year ended 31 July 2020

Attributable to owners of the Company

Non-distributable Distributable
Share Other Retained Non–
capital Option reserves profits controlling Total
(Note 26) reserves (Note 27) (Note 28) Total interests equity
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 August 2019 (as previously stated) 3,469,729 72,584 341,874 4,187,120 8,071,307 399,317 8,470,624
Effect of adoption of MFRS 123 (Note 2.2(c)) – – – (8,684) (8,684) – (8,684)

At 1 August 2019 (as restated) 3,469,729 72,584 341,874 4,178,436 8,062,623 399,317 8,461,940
Total comprehensive income – – 99,188 365,701 464,889 51,680 516,569

Transactions with owners:

Issuance of ordinary shares pursuant to:
Exercise of ESOS (Note 26(f)) 70,950 – – – 70,950 – 70,950
Conversion of Warrants (Notes 26 and 27) 2,050 – (119) – 1,931 – 1,931
Share options granted under ESOS – 18,202 – – 18,202 – 18,202
Share options exercised under ESOS 6,830 (6,830) – – – – –
Transfer share options reserves to retained profits
upon expiry of ESOS – (83,956) – 83,956 – – –
Acquisition of equity interest from non-controlling
interest – – – – – (900) (900)
Dividends paid by a subsidiary to non-controlling
interests – – – – – (23,595) (23,595)
Dividends paid to shareholders (Note 11)
– Dividend reinvestment plan 71,387 – – (71,387) – – –
– Cash settlement – – – (77,503) (77,503) – (77,503)

Total transactions with owners 151,217 (72,584) (119) (64,934) 13,580 (24,495) (10,915)

At 31 July 2020 3,620,946 – 440,943 4,479,203 8,541,092 426,502 8,967,594

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Consolidated Statement of Changes in Equity (Cont’d.)

For the financial year ended 31 July 2020

Attributable to owners of the Company

Non-distributable Distributable
Share Other Retained Non–
capital Option reserves profits controlling Total
(Note 26) reserves (Note 27) (Note 28) Total interests equity
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 August 2018 (as previously stated) 3,452,940 57,733 305,494 3,780,458 7,596,625 383,681 7,980,306
Effect of adoption of MFRS 123 (Note 2.2(c)) – – – (2,757) (2,757) – (2,757)

At 1 August 2018 (as restated) 3,452,940 57,733 305,494 3,777,701 7,593,868 383,681 7,977,549
Total comprehensive income – – 36,654 697,090 733,744 52,236 785,980

Transactions with owners:

Issuance of ordinary shares pursuant to:
Exercise of ESOS (Note 26(f)) 8,800 – – – 8,800 – 8,800
Conversion of Warrants (Notes 26 and 27) 4,739 – (274) – 4,465 – 4,465
Share options granted under ESOS – 18,101 – – 18,101 – 18,101
Share options exercised under ESOS 3,250 (3,250) – – – – –
Dividends paid by a subsidiary to non-controlling
interests – – – – – (36,600) (36,600)
Dividends paid to shareholders (Note 11) – – – (148,083) (148,083) – (148,083)
Dividends payable to shareholders (Note 11) – – – (148,272) (148,272) – (148,272)

Total transactions with owners 16,789 14,851 (274) (296,355) (264,989) (36,600) (301,589)

At 31 July 2019 (as restated) 3,469,729 72,584 341,874 4,178,436 8,062,623 399,317 8,461,940

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Consolidated Statement of Cash Flows

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000
(Restated)
Cash flows from operating activities
Profit before tax 585,462 901,112
Adjustments for:
Amortisation:
– Concession development expenditure 137,160 127,982
– Land use rights – 425
Depreciation:
– Right-of-use assets 4,286 –
– Property, plant and equipment 74,711 56,594
– Investment properties 6,970 7,127
Provision/(reversal) for:
– Liabilities 4,518 4,490
– Retirement benefits obligations (1,077) 7,472
– Short term accumulating compensated absences 1,296 1,324
Property, plant and equipment written off 2,753 31
Net (gain)/loss on:
– Disposal of property, plant and equipment (458) (510)
– Disposal of investment properties (2,223) (24,055)
– Unrealised foreign exchange – 31
Fair value gain on embedded derivatives (1,459) (2,957)
Share of profits of:
– Associated companies (116,245) (126,634)
– Joint ventures (192,181) (186,534)
Impairment of:
– Trade receivables 1,197 38,963
– Property, plant and equipment 148,100 –
Share options granted under ESOS 18,202 18,101
Distribution from investment securities:
– Islamic (9,594) (8,773)
– Non-Islamic (10,460) (4,868)
Profit rate from Islamic fixed deposits (15,104) (9,553)
Interest income from non-Islamic fixed deposits (83,154) (69,546)
Net unwinding of discount (11,866) (43,059)
Finance costs 123,095 106,720
Operating profit before working capital changes 663,929 793,883
(Increase)/decrease in:
– Land held for property development (187,123) (171,756)
– Property development costs 669,973 154,370
– Receivables (147,142) (80,046)
– Inventories (545,714) 97,976
Increase in payables 610,734 127,879
Cash generated from operations 1,064,657 922,306
Income taxes paid (183,037) (159,973)
Finance costs paid (282,405) (275,838)
Lease interest paid (735) –
Retirement benefit obligations paid (2,167) (1,772)
Net cash generated from operating activities 596,313 484,723

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Consolidated Statement of Cash Flows (Cont’d.)

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000
(Restated)
Cash flows from investing activities
Purchase of property, plant and equipment (175,384) (253,790)
Additions to:
– Land held for property development (219,700) (229,227)
– Investment properties (9,882) (88,522)
– Right-of-use assets (3,821) –
– Expressway development expenditures (6,829) (13,251)
Proceeds from:
– Disposal of property, plant and equipment 798 793
– Disposal of investment properties 4,805 63,622
Net purchase from disposal of investment securities (247,803) (12,393)
Acquisition of additional interest in a subsidiary (900) -
Capital repayment from an associated company 11,024 159,996
Additional of interest in joint ventures (net) 77,399 (187,156)
Placement of deposits with tenure more than 3 months (257,292) (109,582)
Dividend received from:
– Associated companies 121,383 776,048
– Joint ventures 267,000 175,800
Distribution received from investment securities:
– Islamic 9,594 8,773
– Non-Islamic 10,460 4,868
Profit rate received from Islamic fixed deposits 15,104 9,553
Interest income received from non-Islamic fixed deposits 83,154 69,546
Net cash (used in)/generated from investing activities (320,890) 375,078
Cash flows from financing activities
Net drawdown/(repayment) of borrowings and debts 320,030 (594,357)
Repayment of lease liabilities (5,763) –
Proceeds from:
– Exercise of ESOS 70,950 8,800
– Conversion of warrants 1,931 4,465
Dividends paid to:
– Shareholders (225,775) (148,083)
– Non-controlling interests (23,595) (36,600)
Net cash generated from/(used in) financing activities 137,778 (765,775)
Net increase in cash and cash equivalents 413,201 94,026
Effects of exchange rate changes 24,437 10,029
Cash and cash equivalents at beginning of year 1,081,123 977,068
Cash and cash equivalents at end of year (Note 25) 1,518,761 1,081,123

Reconciliation of liabilities arising from financing activities:

The table below details changes in the Group’s borrowings and debts arising from financing activities, including both cash and
non-cash changes.

2020 2019
RM’000 RM’000
At 1 August 2019/2018 5,143,658 5,736,700
Repayment of borrowings and debts (1,539,397) (1,243,066)
Drawdown of borrowings and debts 1,859,427 648,709
Effects of exchange rate changes 1,443 1,315
At 31 July 5,465,131 5,143,658

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Income Statement
For the financial year ended 31 July 2020

2020 2019
Note RM’000 RM’000

Revenue 4 1,526,170 2,420,370

Other income 203,266 215,112
Construction contract costs recognised as contract expenses (961,966) (1,144,640)
Staff costs 5 (71,353) (71,314)
Depreciation (7,092) (7,212)
Other operating expenses (2,164) (39,537)

Profit from operations 7 686,861 1,372,779

Impairment of cost of investment in GIBS (285,000) -

Profit from operations after impairment 401,861 1,372,779

Finance costs 8 (136,133) (120,976)

Profit before tax 265,728 1,251,803

Income tax expense 9 (27,644) (23,149)

Profit for the year 238,084 1,228,654

Net dividends per ordinary share (sen) 11 6.0 12.0

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Statement of Comprehensive Income

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000

Profit for the year 238,084 1,228,654

Other comprehensive loss:

Other comprehensive income/(loss) to be reclassified to profit or loss in

subsequent periods:
Foreign currency translation (Note 27) (4,609) (1,179)

Other comprehensive income/(loss) not to be reclassified to profit or loss in

subsequent periods:
Fair value remeasurement on defined benefit plan (Note 29) (678) (558)
Income tax effect 163 134

Other comprehensive loss for the year, net of tax (5,124) (1,603)

Total comprehensive income for the year 232,960 1,227,051

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Statement of Financial Position

As at 31 July 2020

2020 2019
Note RM’000 RM’000

Assets
Non-current assets
Property, plant and equipment 12 197,636 281,491
Investment properties 14 9,812 9,965
Right-of-use assets 15(b) 1,584 -
Investments in subsidiaries 17 5,269,376 4,526,481
Interests in associated companies 18 253,218 253,218
Interests in joint arrangements 19 177,627 177,627
Other investments 20 733 733
Deferred tax assets 32 5,565 2,228
Receivables 21(b) 11,691 88,970
Due from subsidiaries 24 938,380 844,703
6,865,622 6,185,416

Current assets
Inventories 13(c) 1,148 1,952
Receivables 21(a) 918,887 895,020
Contract assets 22 33,465 19,425
Due from subsidiaries 24 2,692,721 2,030,013
Investment securities 23 581,850 340,371
Cash and bank balances 25 195,532 65,184
4,423,603 3,351,965
Total assets 11,289,225 9,537,381

Equity and liabilities

Share capital 26 3,620,946 3,469,729
Reserves 2,540,597 2,445,274
Owners’ equity 6,161,543 5,915,003

Non-current liabilities
Payables 30(a) 73,540 67,789
Due to subsidiaries 36 7,766 -
Long term Islamic debts 33 1,750,000 1,300,000
1,831,306 1,367,789

Current liabilities
Payables 30(b) 208,049 380,160
Contract liabilities 22 1,006,232 790,073
Due to subsidiaries 36 350,904 168,449
Short term Islamic debts 33 400,000 300,000
Short term borrowings 34 1,314,080 600,298
Tax payable 17,111 15,609
3,296,376 2,254,589
Total liabilities 5,127,682 3,622,378
Total equity and liabilities 11,289,225 9,537,381

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Statement of Changes In Equity

For the financial year ended 31 July 2020

Non-distributable Distributable
Other Retained
Share Option reserves profits
capital reserves (Note 27) (Note 28) Total
RM’000 RM’000 RM’000 RM’000 RM’000

Company
At 1 August 2019 3,469,729 72,584 101,214 2,271,476 5,915,003
Total comprehensive income – – (4,609) 237,569 232,960

Transactions with owners:

Issue of ordinary shares pursuant to:
Exercise of ESOS (Note 26(f)) 70,950 – – – 70,950
Conversion of Warrants (Notes 26 and 27) 2,050 – (119) – 1,931
Share options granted under ESOS – 18,202 – – 18,202
Share options exercised under ESOS 6,830 (6,830) – – –
Transfer share options reserves to retained profits
upon expiry of ESOS – (83,956) – 83,956 –
Dividends paid to shareholders (Note 11)
– Dividend reinvestment plan 71,387 – – (71,387) –
– Cash settlement – – – (77,503) (77,503)

Total transactions with owners 151,217 (72,584) (119) (64,934) 13,580

At 31 July 2020 3,620,946 – 96,486 2,444,111 6,161,543

Company
At 1 August 2018 3,452,940 57,733 102,667 1,339,601 4,952,941
Total comprehensive income – – (1,179) 1,228,230 1,227,051

Transactions with owners:

Issue of ordinary shares pursuant to:
Exercise of ESOS (Note 26(f)) 8,800 – – – 8,800
Conversion of Warrants (Notes 26 and 27) 4,739 – (274) – 4,465
Share options granted under ESOS – 18,101 – – 18,101
Share options exercised under ESOS 3,250 (3,250) – – –
Dividends paid to shareholders (Note 11) – – – (148,083) (148,083)
Dividends payable to shareholders (Note 11) – – – (148,272) (148,272)

Total transactions with owners 16,789 14,851 (274) (296,355) (264,989)

At 31 July 2019 3,469,729 72,584 101,214 2,271,476 5,915,003

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Statement of Cash Flows

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000

Cash flows from operating activities

Profit before taxation 265,728 1,251,803
Adjustments for:
Depreciation:
– Right-of-use assets 134 -
– Property, plant and equipment 6,805 7,057
– Investment properties 153 155
Provision/(reversal) for:
– Retirement benefits obligations 556 771
– Short term accumulating compensated absences (142) 332
Property, plant and equipment written off 2 7
Net gain on:
– Disposal of property, plant and equipment (319) (280)
– Unrealised foreign exchange (25,661) (32,550)
Impairment of trade receivables - 38,311
Impairment of cost of investment in GIBS 285,000 -
Share options granted under ESOS 18,202 18,101
Dividend income from:
– Subsidiaries (89,046) (166,288)
– Associated companies (100,053) (771,518)
– Joint ventures (267,000) (175,800)
Distribution from investment securities:
– Islamic (7,011) (736)
– Non-Islamic (7,553) (1,980)
Profit rate from Islamic fixed deposits (1,949) (1,815)
Interest income from:
– Non-Islamic fixed deposits (755) (954)
– Subsidiaries (161,783) (153,716)
Net unwinding of discount (7,480) (37,793)
Finance costs 132,813 117,829
Operating profits before working capital changes 40,641 90,936
(Increase)/decrease in:
– Net amount due from/(to) subsidiaries (526,972) (1,065,410)
– Receivables 52,100 (101,167)
– Inventories 804 2,740
Increase in payables 277,476 383,919
Cash used in operations (155,951) (688,982)
Dividend received 456,099 1,113,606
Income taxes paid (29,316) (16,988)
Finance costs paid (132,813) (117,829)
Retirement benefit obligations paid (466) –
Net cash generated from operating activities 137,553 289,807

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Statement of Cash Flows (Cont’d.)

For the financial year ended 31 July 2020

2020 2019
RM’000 RM’000

Cash flows from investing activities

Purchase of property, plant and equipment (26,358) (32,000)
Purchase of right of use assets (536) –
Proceeds from disposal of property, plant and equipment 410 385
Net purchase of investment securities (241,479) (318,867)
Capital injection in subsidiaries (624,595) (688,165)
Acquisition of additional interest in a subsidiary (900) –
Long-term advances to a subsidiary company (407,500) –
Capital redemption from:
– A subsidiary company 5,100 –
– An associated company – 159,996
Proceeds on redemption of:
– Loan stocks by a subsidiary – 800,000
Distribution received from investment securities:
– Islamic 7,011 736
– Non-Islamic 7,553 1,980
Profit rate received from Islamic fixed deposits 1,949 1,815
Interest income from:
– Non-Islamic fixed deposits 755 954
– Subsidiaries 161,783 153,716
Net cash (used in)/generated from investing activities (1,116,807) 80,550

Cash flows from financing activities

Net drawdown/(repayment) of borrowings and debts 1,262,333 (249,821)
Proceeds from:
– Exercise of ESOS 70,950 8,800
– Conversion of warrants 1,931 4,465
Dividend paid to shareholders (225,775) (148,083)
Net cash generated from/(used in) financing activities 1,109,439 (384,639)

Net increase/(decrease) in cash and cash equivalents 130,185 (14,282)

Effects of exchange rate changes 163 233
Cash and cash equivalents at beginning of year 65,184 79,233
Cash and cash equivalents at end of year (Note 25) 195,532 65,184

Reconciliation of liabilities arising from financing activities:

The table below details changes in the Company’s borrowings and debts arising from financing activities, including both cash
and non-cash changes.

2020 2019
RM’000 RM’000

At 1 August 2019/2018 2,200,298 2,450,000

Repayment of borrowings and debts (343,603) (1,169,744)
Drawdown of borrowings and debts 1,605,936 919,923
Effects of exchange rate changes 1,449 119
At 31 July 3,464,080 2,200,298

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

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Notes to the Financial Statements

– 31 July 2020

1. CORPORATE INFORMATION
The Company is a public limited liability company, incorporated and domiciled in Malaysia, and is listed on the Main Market
of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is located at
Menara Gamuda, PJ Trade Centre, No. 8, Jalan PJU 8/8A, Bandar Damansara Perdana, 47820 Petaling Jaya, Selangor Darul
Ehsan.

The principal activities of the Company are that of investment holding and civil engineering construction. The principal
activities of the subsidiaries, associated companies and joint arrangements are described in Notes 17, 18 and 19 respectively.

The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors
on 8 October 2020.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation
The financial statements of the Group and of the Company have been prepared in accordance with Malaysian Financial
Reporting Standards (“MFRS”), International Financial Reporting Standards and the requirements of the Companies Act
2016 in Malaysia.

The financial statements are presented in Ringgit Malaysia (“RM”) and all values are rounded to the nearest thousand
(“RM’000”) except when otherwise indicated.

The financial statements of the Group and of the Company have been prepared on the historical cost basis except as
disclosed in the accounting policies below.

Considerations in respect of COVID-19 (coronavirus) and the current economic environment

On 11 March 2020, the World Health Organisation (“WHO”) declared COVID-19 a worldwide pandemic. The Group
operates in a few geographical locations, mainly in Malaysia, Vietnam, Singapore, Taiwan and Australia. With widespread
concerns about the ongoing COVID-19 pandemic, the Government of Malaysia had declared a Movement Control Order
(“MCO”) from 18 March 2020 to 12 May 2020. The MCO was revised to the Conditional MCO (“CMCO”) from 4 May 2020
to 9 June 2020, followed by Recovery MCO (“RMCO”) up to 31 December 2020. The impact of COVID-19 pandemic on
the Group’s business activities outside Malaysia varied amongst countries. The operations in Vietnam and Taiwan
continued to operate normally with additional health and safety procedures imposed by the respective governments,
whereas in Singapore and Australia there were lockdowns for several months.

This had led to the temporary cessation of some business activities and caused delays in construction and property
development activities. The financial performance of the Group and of the Company was consequently affected. The
Group and the Company are of the view that the impact of COVID-19 is short term and expect that the business
operations will return to normal when the RMCO and lockdowns are fully relaxed.

The Group and the Company are taking the necessary steps to mitigate the risks arising from the COVID-19 pandemic,
including the prudent management of their cashflows from their operating, investing and financing activities. With 70.6%
(2019: 69.8%) and 24.0% (2019: 29.7%) of revenue contributed from Malaysia and Vietnam respectively, the Group does
not expect significant disruptions in operations.

At the reporting date, the Group is in net current assets position of RM3,639,455,000 (2019: RM2,969,777,000) with an
amount of RM1,518,761,000 (2019: RM1,081,123) cash and cash equivalents. The Group maintains a gearing ratio of
30% (2019: 39%).

The Group has taken into consideration the COVID-19 impact and the current economic environment on the basis of
preparation of this financial statements. The directors continue to consider it appropriate to adopt the going concern
basis of accounting in preparing the financial statements.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)

2.2 Changes in accounting policies
The accounting policies adopted are consistent with those of the previous financial year except as follows:

On 1 August 2019, the Group and the Company adopted the following new and amended MFRSs:

Effective for annual periods beginning on or after 1 January 2019

MFRS 16 Leases
Amendments to MFRS 3 Business Combinations: Previously Held Interest in Joint Operation (Annual Improvements
to MFRSs 2015-2017 Cycle)
Amendments to MFRS 9 Prepayment Features with Negative Compensation
Amendments to MFRS 11 Joint Arrangements: Previously Held Interest in Joint Operation (Annual Improvements
to MFRSs 2015-2017 Cycle)
Amendments to MFRS 112 Income Tax Consequences of Payments on Financial Instruments Classified as Equity
(Annual Improvements to MFRSs 2015-2017 Cycle)
Amendments to MFRS 119 Plan amendment, Curtailment or Settlement
Amendments to MFRS 123 Borrowing Costs Eligible for Capitalisation (Annual Improvements to MFRSs 2015-2017
Cycle)
Amendments to MFRS 128 Long Term Interest in Associates and Joint ventures
IC Interpretation 23 Uncertainty over Income Tax Treatments

Other than the adoption of MFRS 16, the application of these amendments, improvements and interpretation did not
have any material impact on the Group’s and the Company’s current period or any prior period and is not likely to
affect future periods financial statements.

(a) First time adoption of MFRS 16 Leases

The Group and the Company have adopted MFRS 16, using modified retrospective method from 1 August 2019,
and have not restated its comparative for the 2019 reporting period, as permitted under the specific transitional
provisions in the standard.
(i) Adjustments recognised on adoption of MFRS 16
Upon adoption of MFRS 16, the Group and the Company applied a single recognition and measurement
approach for all leases for which it is the lessee, except for short-term leases and leases of low-value assets.
The Group and the Company recognised lease liabilities to make lease payments and right-of-use assets
representing the right to use the underlying assets. In accordance with the modified retrospective method of
adoption, the Group and the Company have not restated its comparative for the 2019 reporting period.
(ii) Practical expedients applied
In applying MFRS 16 for the first time, the Group and the Company have used the following practical expedients
permitted by the standard:
• the use of a single discount rate to a portfolio of leases with reasonably similar characteristics;
• reliance on previous assessment on whether leases are onerous;
• the accounting for operating leases with a remaining lease term of less than 12 months as at 1 August
2019 as short-term leases;
• the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial
application; and
• the use of hindsight in determing the lease term where the contract contains options to extend or terminate
the lease.
The Group and the Company have also elected not to reassess whether a contract is, or contains a lease at
the date of initial application. Instead, for contracts entered into before the transition date, the Group and the
Company relied on its assessment made when applying MFRS 117.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(a) First time adoption of MFRS 16 Leases (cont’d.)
(iii) Impact of MFRS 16
Impact on the financial statements:
The associated right-of-use assets for land, buildings and motor vehicles were measured on a retrospective
basis as if the new rules had always been applied. There were no onerous lease contracts that would have
required an adjustment to the right-of-use assets at the date of initial application.

Lease assets recognised previously as land use rights in previous financial year, were derecognised. Right-
of-use assets were recognised and presented separately in the statement of financial position.

The impact of changes to the statements of financial position of the Group and of the Company resulting from
the adoption of MFRS 16 Leases as at 1 August 2019 are as follows:

As at Effect of As at
31 July 2019 MFRS 16 1 August 2019
RM’000 RM’000 RM’000

Group

Non-current assets
Land use rights 1,470 (1,470) –
Right-of-use assets – 16,920 16,920

Non-current liabilities
Lease liabilities – (10,975) (10,975)

Current liabilities
Lease liabilities – (4,475) (4,475)

Company

Non-current assets
Right-of-use assets – 2,521 2,521

Non-current liabilities
Lease liabilities – (1,771) (1,771)

Current liabilities
Lease liabilities – (750) (750)

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(a) First time adoption of MFRS 16 Leases (cont’d.)
(iii) Impact of MFRS 16 (cont’d.)
Impact on the financial statements: (cont’d.)
The reconciliation between the operating lease commitments disclosed applying MFRS 117 to the lease liabilities
recognised at the date of initial application of 1 August 2019 is as follows:

RM’000

Group
Operating lease commitments disclosed as at 31 July 2019 8,438
Discounted at the incremental borrowing rate of 4.70% as at 1 August 2019

Add/(less):
Commitments relating to leases of low value assets (237)
Commitments relating to short-term leases (1,374)
Adjustments as a result of a different treatment of extension and termination options 8,623

Lease liabilities recognised as at 1 August 2019 15,450

Analysed as:
Current lease liabilities 4,475
Non-current lease liabilities 10,975

15,450

Company
Operating lease commitments disclosed as at 31 July 2019 401
Discounted at the incremental borrowing rate of 4.70% as at 1 August 2019

Add/(less):
Commitments relating to short-term leases (87)
Adjustments as a result of a different treatment of extension and termination options 2,207

Lease liabilities recognised as at 1 August 2019 2,521

Analysed as:
Current lease liabilities 750
Non-current lease liabilities 1,771

2,521

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(a) First time adoption of MFRS 16 Leases (cont’d.)
(iii) Impact of MFRS 16 (cont’d.)
Impact on the financial statements: (cont’d.)
The following are the amounts recognised in profit or loss:

Group Company
RM’000 RM’000

Depreciation expense of right-of-use assets (Note 7) 4,286 134

Interest expense on lease liabilities (Note 8) 735 91

Total amount recognised in profit or loss 5,021 225

(b) Adoption of Annual Improvements to MFRS Standards 2015–2017 Cycle: MFRS 123 Borrowing Costs – Borrowing
costs eligible for capitalisation
The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to
develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended
use or sale are complete.

An entity applies these amendments to borrowing costs incurred on or after the beginning of the annual reporting
periods beginning on or after 1 January 2019.

There is no significant impact to the Group upon adoption of this standard.

(c) MFRS 123: Borrowing Costs relating to over time transfer of constructed good (Agenda Decision 4 (“AD4”))
In March 2019, the International Financial Reporting Standard Interpretation Committee (“IFRIC”) concluded that
interest cost should not be capitalised for assets created under the percentage-of-completion method i.e. receivables,
contract assets and inventories as these assets do not meet the definition of qualifying assets.

On 20 March 2019, the Malaysian Accounting Standards Board allowed the affected entities to apply the changes
in accounting policies to their financial statements in relation to AD4 beginning on or after 1 July 2020.

The Group has complied with the requirements of the IFRIC Agenda Decision on borrowing costs and has reflected
the impact for the financial year ended 31 July 2020.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(c) MFRS 123: Borrowing Costs relating to over time transfer of constructed good (Agenda Decision 4 (“AD4”))
(cont’d.)
The effect of the adoption of AD4 on the financial statements as at 1 August 2018 and 31 July 2019 are as follows:
Consolidated income statement
For the financial year ended 31 July 2019

As Effect of
previously adoption of As
stated MFRS 123 restated
RM’000 RM’000 RM’000

Revenue 4,565,062 – 4,565,062

Other income 217,544 – 217,544
Construction contract costs recognised as contract
expenses (1,301,331) – (1,301,331)
Land and development costs (1,622,430) 15,961 (1,606,469)
Highway maintenance and toll operations (32,907) – (32,907)
Changes in inventory of finished goods and work in
progress (9,905) – (9,905)
Purchases - raw and trading materials (261,338) – (261,338)
Production overheads (92,531) – (92,531)
Staff costs (253,045) – (253,045)
Depreciation and amortisation (192,128) – (192,128)
Other operating expenses (327,687) – (327,687)

Profit from operations 689,304 15,961 705,265

Finance costs (91,931) (25,390) (117,321)
Share of profits of associated companies 126,634 – 126,634
Share of profits of joint ventures 184,842 1,692 186,534

Profit before tax 908,849 (7,737) 901,112

Income tax expenses (150,654) 1,810 (148,844)

Profit for the year 758,195 (5,927) 752,268

Profit attributable to:-

Owners of the Company 706,113 (5,927) 700,186
Non-controlling interests 52,082 – 52,082

758,195 (5,927) 752,268

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(c) MFRS 123: Borrowing Costs relating to over time transfer of constructed good (Agenda Decision 4 (“AD4”))
(cont’d.)
The effect of the adoption of AD4 on the financial statements as at 1 August 2018 and 31 July 2019 are as follows:
(cont’d.)
Consolidated statement of financial position
As at 31 July 2019

As Effect of
previously adoption of As
stated MFRS 123 restated
RM’000 RM’000 RM’000

Assets
Non-current assets
Property, plant and equipment 1,155,510 – 1,155,510
Land held for property development 2,919,183 – 2,919,183
Investment properties 432,815 – 432,815
Land use rights 1,470 – 1,470
Concession development expenditure 1,306,472 – 1,306,472
Interests in associated companies 970,789 – 970,789
Interests in joint arrangements 1,201,555 (223) 1,201,332
Other investments 812 – 812
Deferred tax assets 40,924 843 41,767
Receivables 1,074,294 – 1,074,294

9,103,824 620 9,104,444

Current assets
Property development costs 1,886,996 (1,640) 1,885,356
Inventories 774,933 (9,736) 765,197
Receivables 1,938,030 – 1,938,030
Contract assets 1,604,295 – 1,604,295
Tax recoverable 34,158 – 34,158
Investment securities 396,664 – 396,664
Cash and bank balances 1,452,272 – 1,452,272

8,087,348 (11,376) 8,075,972

Total assets 17,191,172 (10,756) 17,180,416

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(c) MFRS 123: Borrowing Costs relating to over time transfer of constructed good (Agenda Decision 4 (“AD4”))
(cont’d.)
The effect of the adoption of AD4 on the financial statements as at 1 August 2018 and 31 July 2019 are as follows:
(cont’d.)
Consolidated statement of financial position
As at 31 July 2019 (cont’d.)

As Effect of
previously adoption of As
stated MFRS 123 restated
RM’000 RM’000 RM’000

Equity and liabilities

Equity attributable to owners of the Company
Share capital 3,469,729 – 3,469,729
Reserves 4,601,578 (8,684) 4,592,894

Owners’ equity 8,071,307 (8,684) 8,062,623

Non-controlling interests 399,317 – 399,317

Total equity 8,470,624 (8,684) 8,461,940

Non-current liabilities
Payables 197,982 – 197,982
Contract liabilities 50,786 – 50,786
Provision for liabilities 29,978 – 29,978
Deferred tax liabilities 375,794 – 375,794
Long term Islamic debts 1,975,000 – 1,975,000
Long term borrowings 982,741 – 982,741

3,612,281 – 3,612,281

Current liabilities
Payables 1,844,392 – 1,844,392
Contract liabilities 942,039 – 942,039
Provision for liabilities 76,645 (2,072) 74,573
Short term Islamic debts 690,000 – 690,000
Short term borrowings 1,495,917 – 1,495,917
Tax payable 59,274 – 59,274

5,108,267 (2,072) 5,106,195

Total liabilities 8,720,548 (2,072) 8,718,476

Total equity and liabilities 17,191,172 (10,756) 17,180,416

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(c) MFRS 123: Borrowing Costs relating to over time transfer of constructed good (Agenda Decision 4 (“AD4”))
(cont’d.)
The effect of the adoption of AD4 on the financial statements as at 1 August 2018 and 31 July 2019 are as follows:
(cont’d.)
Consolidated statement of financial position
As at 31 July 2018

As Effect of
previously adoption of As
stated MFRS 123 restated
RM’000 RM’000 RM’000

Assets
Non-current assets
Property, plant and equipment 1,009,191 – 1,009,191
Land held for property development 2,655,137 – 2,655,137
Investment properties 363,886 – 363,886
Land use rights 1,895 – 1,895
Concession development expenditure 1,421,203 – 1,421,203
Interests in associated companies 1,773,824 – 1,773,824
Interests in joint arrangements 1,000,538 (1,915) 998,623
Other investments 812 – 812
Deferred tax assets 41,401 (967) 40,434
Receivables 1,005,967 – 1,005,967

9,273,854 (2,882) 9,270,972

Current assets
Property development costs 2,083,015 237 2,083,252
Inventories 491,758 (1,119) 490,639
Receivables 1,842,188 – 1,842,188
Contract assets 1,276,378 – 1,276,378
Tax recoverable 42,293 – 42,293
Investment securities 384,271 – 384,271
Cash and bank balances 1,238,634 – 1,238,634

7,358,537 (882) 7,357,655

Total assets 16,632,391 (3,764) 16,628,627

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.2 Changes in accounting policies (cont’d.)
(c) MFRS 123: Borrowing Costs relating to over time transfer of constructed good (Agenda Decision 4 (“AD4”))
(cont’d.)
The effect of the adoption of AD4 on the financial statements as at 1 August 2018 and 31 July 2019 are as follows:
(cont’d.)
Consolidated statement of financial position
As at 31 July 2018 (cont’d.)

As Effect of
previously adoption of As
stated MFRS 123 restated
RM’000 RM’000 RM’000

Equity and liabilities

Equity attributable to owners of the Company
Share capital 3,452,940 – 3,452,940
Reserves 4,143,685 (2,757) 4,140,928

Owners’ equity 7,596,625 (2,757) 7,593,868

Non-controlling interests 383,681 – 383,681

Total equity 7,980,306 (2,757) 7,977,549

Non-current liabilities
Payables 143,396 – 143,396
Contract liabilities 61,168 – 61,168
Provision for liabilities 27,936 – 27,936
Deferred tax liabilities 407,319 – 407,319
Long term Islamic debts 2,465,000 – 2,465,000
Long term borrowings 1,784,964 – 1,784,964

4,889,783 – 4,889,783

Current liabilities
Payables 1,629,297 – 1,629,297
Contract liabilities 546,376 – 546,376
Provision for liabilities 54,831 (1,007) 53,824
Short term Islamic debts 890,000 – 890,000
Short term borrowings 596,736 – 596,736
Tax payable 45,062 – 45,062

3,762,302 (1,007) 3,761,295

Total liabilities 8,652,085 (1,007) 8,651,078

Total equity and liabilities 16,632,391 (3,764) 16,628,627

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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D.)

2.3 Standards and interpretations issued but not yet effective
The Group and the Company have not adopted the following standards and interpretations that have been issued, but
yet to be effective:
Effective for annual periods beginning on or after 1 January 2020:

Amendments to MFRS 3 Business Combinations - Definition of a Business

Amendments to MFRS 9, Interest Rate Benchmark Reform
MFRS 139 and MFRS 7
Amendments to MFRS 101 Presentation of Financial Statements – Definition of Material
Amendments to MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors – Definition
of Material
Effective for annual periods beginning on or after 1 June 2020:
Amendments to MFRS 16 COVID-19 - Related Rent Concession

Effective for annual periods beginning on or after 1 January 2021:

MFRS 17 Insurance Contracts

Effective for annual periods beginning on or after 1 January 2022:

Amendments to MFRS 3 Reference to the Conceptual Framework

Effective for annual periods beginning on or after 1 January 2023:

Amendments to MFRS 101 Classification of Liabilities as Current or Non-current

Deferred:
Amendments to MFRS 10 and Sale or Contribution of Assets between an Investor and its Associate or Joint
MFRS 128 Venture

The directors expect that the adoption of the above standards will have no significant impact to the financial statements
in the period of initial application.

2.4 Basis of consolidation

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the
reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial
statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied for
like transactions and events in similar circumstances.

The Company controls an investee if and only if the Company has all the following:
(i) Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the
investee);
(ii) Exposure, or rights, to variable returns from its investment with the investee; and
(iii) The ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and
when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant
facts and circumstances in assessing whether it has power over an investee, including:
(i) The contractual arrangement(s) with the other vote holders of the investee;
(ii) Rights arising from other contractual arrangements; and
(iii) The Group’s voting rights and potential voting rights.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.4 Basis of consolidation (cont’d.)
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes
to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control
over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses
of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the
date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the
non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the
Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-
controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss.
Any investment retained is recognised at fair value.

2.5 Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the
aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any
non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the
non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net
assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the
acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope
of MFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognised in the statement
of profit or loss in accordance with MFRS 9. Other contingent consideration that is not within the scope of MFRS 9 is
measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the
amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired
and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration
transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities
assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the
reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration
transferred, then the gain is recognised in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of
impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the
Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets
or liabilities of the acquiree are assigned to those units.

Where goodwill has been allocated to a cash-generating unit (“CGU”) and part of the operation within that unit is
disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation
when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the
relative values of the disposed operation and the portion of the cash-generating unit retained.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.6 Investment in associated companies and joint ventures
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate
in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have
rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing
control.

The considerations made in determining significant influence or joint control are similar to those necessary to determine
control over subsidiaries. The Group’s investment in its associate and joint venture are accounted for using the equity
method.

Under the equity method, the investment in an associate or a joint venture is initially recognised at cost. The carrying
amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate or joint
venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount
of the investment and is not tested for impairment separately.

The statement of profit or loss reflects the Group’s share of the results of operations of the associate or joint venture.
Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has been a
change recognised directly in the equity of the associate or joint venture, the Group recognises its share of any changes,
when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between
the Group and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.

The aggregate of the Group’s share of profit or loss of an associate and a joint venture is shown on the face of the
statement of profit or loss outside operating profit and represents profit or loss after tax and non-controlling interests
in the subsidiaries of the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Group.
When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss
on its investment in its associate or joint venture. At each reporting date, the Group determines whether there is
objective evidence that the investment in the associate or joint venture is impaired. If there is such evidence, the Group
calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture
and its carrying value, and then recognises the loss within ‘Share of profit of an associate and a joint venture’ in the
statement of profit or loss.

Upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and
recognises any retained investment at its fair value. Any difference between the carrying amount of the associate or
joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds
from disposal is recognised in profit or loss.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.7 Investment in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed
sharing of control of an arrangement, which exists only when decisions about the relevant activities require the
unanimous consent of the parties sharing control.

The Group and the Company as joint operators recognise in relation to their interests in joint operations:
(i) their assets, including their shares of any assets held jointly;
(ii) their liabilities, including their shares of any liabilities incurred jointly;
(iii) their revenue from the sale of their shares of the output arising from the joint operations;
(iv) their shares of the revenue from the sale of the output by the joint operations; and
(v) their expenses, including their shares of any expenses incurred jointly.

The Group and the Company account for the assets, liabilities, revenues and expenses relating to its interest in joint
operations in accordance with the FRSs applicable to the particular assets, liabilities, revenues and expenses.

Profits and losses resulting from transactions between the Group and its joint operation are recognised in the Group’s
consolidated financial statements only to the extent of unrelated investors’ interests in the joint operation.

2.8 Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired
in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets
are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated
intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in
profit or loss in the period in which the expenditure is incurred.

(a) Expressway development expenditure

Expressway development expenditure (“EDE”) comprises development and upgrading expenditure (including interest
charges relating to financing of the development of the expressway) incurred in connection with the concession.
EDE is measured on initial recognition at cost. Following initial recognition, EDE is carried at cost less accumulated
amortisation and any accumulated impairment losses. The policy for the recognition and measurement of impairment
losses is in accordance with Note 2.13.

Assets under construction included in EDE are not depreciated as these assets are not yet available for use.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.8 Intangible assets (cont’d.)
(a) Expressway development expenditure (cont’d.)
EDE is amortised upon commencement of tolling operations over the concession period based on the following
formula:

Amortisation of EDE is included in profit or loss.

Actual Traffic Volume For The Year

Opening Net Carrying Amount
X Of EDE Plus Current
Actual Traffic Volume For The Year Plus Projected Year Additions
Traffic Volume To Completion

Periodic traffic studies are performed by an independent traffic consultant in order to support the projected toll
revenue for the remaining concession period. The projection was based on the latest available traffic study.

(b) Other intangible assets

Other intangible assets acquired separately are measured initially at cost. Following initial acquisition, other
intangible assets are measured at cost less any accumulated amortisation and accumulated impairment losses.

Other intangible assets with finite useful lives are amortised over the estimated useful lives and assessed for
impairment whenever there is an indication that the other intangible asset may be impaired. The amortisation
period and the amortisation method for other intangible assets with finite useful lives are reviewed at least at the
end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future
economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate,
and are treated as changes in accounting estimates. The amortisation expense on other intangible assets with
finite lives is recognised in the statement of profit or loss in the expense category that is consistent with the
function of the intangible assets.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine
whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is
made on a prospective basis.

Other intangible asset is derecognised upon disposal (i.e. at the date the recipient obtains control) or when no
future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the
asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the statement of profit or loss.

Other intangible assets of the Group comprise of quarry rights and and water development expenditure.

The quarry rights are attributable to G.B. Kuari Sdn. Bhd. which have been granted the rights to operate quarry
for a period of 30 years ending Year 2022.

The water development expenditure (“WDE”) is attributable to Gamuda Water Sdn. Bhd. which have been granted
the rights to manage, operate and maintain Sungai Selangor Water Treatment Plant Phase 3 (“SSP 3”) for a period
of 8 years. WDE comprises of rehabilitation and restoration capital expenditure in connection with the operations
and maintenance of water concession.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.9 Property, plant and equipment and depreciation
All items of property, plant and equipment are initially recorded at cost. The cost of an item of property, plant and
equipment is recognised as an asset if, and only if, it is probable that future economic benefits associated with the
item will flow to the Group and the Company and the cost of the item can be measured reliably.

Subsequent to recognition, property, plant and equipment except for freehold land are stated at cost net of accumulated
depreciation and accumulated impairment losses, if any. When significant parts of plant and equipment are required
to be replaced at intervals, the Group and the Company depreciates them separately based on their specific useful
lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and
equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are
recognised in profit or loss as incurred. The present value of the expected cost for the decommissioning of an asset
after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

Freehold land has an unlimited useful life and therefore is not depreciated. Construction in progress included in
property, plant and equipment are not depreciated as these assets are not yet available for use.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, at the following annual
rates:
Buildings 2% – 13%
Plant and machinery 5% – 20%
Office equipment, furniture and fittings 10% – 33%
Motor vehicles 12% – 25%

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
(i.e. at the date the recipient obtains control) or when no future economic benefits are expected from its use or
disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is
derecognised.

The carrying values of property, plant and equipment are reviewed for impairment when events or changes in
circumstances indicate that the carrying value may not be recoverable. The policy for the recognition and measurement
of impairment losses is in accordance with Note 2.13.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.10 Leases
Accounting policies applied until 1 August 2019
A lease is an agreement whereby the lessor conveys to the lessee in return for a payment, or series of payments,
the right to use an asset for an agreed period of time.

Finance leases
Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership
are classified as finance leases. Finance leases are capitalised at the lease’s commencement at the lower of the fair
value of the leased property and the present value of the minimum lease payment.

Each lease payment is allocated between the liability and finance charges so as to achieve a periodic constant rate
of interest on the remaining balance of the liability. The corresponding rental obligations, net of finance charges, are
included in payables. The interest element of the finance cost is charged to profit or loss over the lease period so
as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. The
property, plant and equipment acquired under finance leases is depreciated over the shorter of the useful life of the
asset and the lease term.

Initial direct costs incurred by the Group in negotiating and arranging finance leases are added to the carrying amount
of the leased assets and recognised as an expense in profit or loss over the lease term on the same basis as the
lease expense.

Property, plant and equipment acquired under finance lease contracts are depreciated over the estimated useful life
of the asset, in accordance with the annual rates stated in Note 2.9 above. Where there is no reasonable certainty
that the ownership will be transferred to the Group, the asset is depreciated over the shorter of the lease term and
its useful life.

Operating leases
Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Operating lease payments are recognised as an operating expense in the statement
of comprehensive income on a straight-line basis over the lease term.

Sale and leaseback transactions

When a sale and leaseback results in a finance lease, any gain on the sale is deferred and recognised as income
over the lease term. Any loss on the sale is immediately recognised as an impairment loss when the sale occurs.

If the leaseback is classified as an operating lease, then any gain is recognised immediately if the sale and leaseback
terms are demonstrably at fair value. Otherwise, the sale and leaseback are accounted for as follows:

– If the sale price is below fair value then the gain or loss is recognised immediately other than to the extent that
a loss is compensated for by future rentals at below market price, then the loss is deferred and amortised over
the period that the asset is expected to be used.

– If the sale price is above fair value, then any gain is deferred and amortised over the useful life of the asset.

– If the fair value of the asset is less than the carrying amount of the asset at the date of the transaction, then that
difference is recognised immediately as a loss on the sale.

Assets leased out by the Group under operating leases are included in property, plant and equipment in the statement
of financial position. They are depreciated over their expected useful lives on a basis consistent with similar owned
property, plant and equipment. Lease income (net of any incentives given to lessees) is recognised over the term of
the lease on a straight-line basis.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.10 Leases (cont’d.)
Accounting policies applied from 1 August 2019
The Group assesses whether a contract is, or contains, a lease, at the inception of the contract. The Group recognises
a right-of-use asset and corresponding lease liability with respect to all lease arrangements in which it is the lessee,
except for low-value assets and short-term leases with 12 months or less.

(i) Right-of-use assets

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-
use assets and the associated lease liabilities are presented as a separate line item in the statement of financial
position.

The right-of-use asset is initially measured at cost. Cost includes the initial amount of the corresponding lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial direct
costs, less any incentives received.

The right-of-use asset is subsequently measured at cost less accumulated depreciation and any accumulated
impairment losses and adjust for any remeasurement of the lease liabilities. The right-of-use asset is depreciated
using the straight-line method from the commencement date to the earlier of the end of the useful life of the
right-of-use asset or the end of the lease term. If the Group and the Company expect to exercise a purchase
option, the right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts
from the commencement date of the underlying asset. The policy for the recognition and measurement of
impairment losses is in accordance with Note 2.13 to the financial statements.

(ii) Lease liability

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments that are not paid at the commencement date, discounted by using the rate of implicit in the
lease.

The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured
when there is a change in the future lease payments (other than lease modification that is not accounted for
as a separate lease) with the corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recognised in profit or loss if the carrying amount has been reduced to zero.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.

(iii) Short term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that
have a lease term of 12 months or less from the commencement date and do not contain a purchase option).
It also applies the lease of low-value assets recognition exemption to leases of office equipment that are
considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised
as expense on a straight-line basis over the lease term.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.10 Leases (cont’d.)
Accounting policies applied from 1 August 2019 (cont’d.)
Group as a lessor
As a lessor, the Group determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of
the risks and rewards incidental to ownership of the underlying asset to the lessee.

(i) Finance leases

The Group classifies a lease as a finance lease if the lease transfers substantially all the risks and rewards
incidental to ownership of an underlying asset to the lessee.

The Group derecognises the underlying asset and recognises a receivable at an amount equal to the net
investment in a finance lease. Net investment in a finance lease is measured at an amount equal to the sum
of the present value of lease payments from lessee and the unguaranteed residual value of the underlying
asset. Initial direct costs are also included in the initial measurement of the net investment. The net investments
is subject to MFRS 9 impairment on impairment of financial assets. In addition, the Group reviews regularly the
estimated unguaranteed residual value.

Lease income is recognised over the term of the lease using the net investment method so as to reflect a
constant periodic rate of return. The Group revises the lease income allocation if there is a reduction in the
estimated unguaranteed residual value.

(ii) Operating leases

The Group classifies a lease as an operating lease if the lease does not transfer substantially all the risks and
rewards incidental to ownership of an underlying asset to the lessee.

The Group recognises lease payments received under operating lease as lease income on a straight-line basis
over the lease term.

Group as a lessee
A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially
all the risks and rewards incidental to ownership to the Group is classified as a finance lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property
or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance
charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of
the liability. Finance charges are recognised in finance costs in the statement of profit or loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the
Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated
useful life of the asset and the lease term.

An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an operating
expense in the statement of profit or loss on a straight-line basis over the lease term.

Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms
and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred
in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised
over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period
in which they are earned. The accounting policy for rental income is set out in Note 2.19(b)(ii).

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.11 Service concession arrangements
The Group recognises revenue from the construction and upgrading of the infrastructure in accordance with its
accounting policy for construction contracts set out in Note 2.12. Where the Group performs more than one service
under the arrangement, consideration received or receivable is allocated to the components by reference to the
relative fair values of the services delivered, when the amounts are separately identifiable.

The Group recognises the consideration receivable as an intangible asset to the extent that it receives a right to
charge users of the public service. Intangible assets are accounted for in accordance with the accounting policy set
out in Note 2.8.

Subsequent costs and expenditures related to infrastructure and equipment arising from the Group’s commitments
to the concession contracts or that increase future revenue are recognised as additions to the intangible asset and
are stated at cost. Capital expenditures necessary to support the Group’s operation as a whole are recognised as
property, plant and equipment, and accounted for in accordance with the policy stated under property, plant and
equipment in Note 2.9. When the Group has contractual obligations that it must fulfil as a condition of its license to:
a) maintain the infrastructure to a specified standard or, b) to restore the infrastructure when the infrastructure has
deteriorated below a specified condition, it recognises and measures these contractual obligations in accordance with
the accounting policy for provisions in Note 2.16. Repairs and maintenance and other expenses that are routine in
nature are expensed to profit or loss as incurred.

2.12 Construction contracts

Where the financial outcome of a construction contract can be reliably estimated, contract revenue and contract costs
are recognised as revenue and expenses respectively by using the stage of completion method. The stage of completion
is determined by the proportion that contract costs incurred for work performed to date bear to the estimated total
contract costs.

Where the financial outcome of a construction contract cannot be estimated reliably, contract revenue is recognised
only to the extent of contract costs incurred that are likely to be recoverable. Contract costs are recognised as
expenses in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as
an expense immediately.

Contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work,
claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable
of being reliably measured.

When the total of costs incurred on construction contracts plus recognised profits (less recognised losses) exceeds
progress billings, the balance is classified as contract assets within trade receivables. When progress billings exceed
costs incurred on construction contracts plus recognised profits (less recognised losses), the balance is classified as
contract liabilities within trade payables.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.13 Impairment of non-financial assets
The Group assesses, the carrying amounts of the Group’s non-financial assets, other than land held for property
development, property development costs, deferred tax assets and inventories, at each reporting date, whether there
is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an
asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined
for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from
other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
In determining fair value less costs of disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation
multiples, quoted share prices for publicly traded companies or other available fair value indicators.

The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately
for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations
generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows
after the fifth year.

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an
indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists,
the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed
only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last
impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed
its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had
no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of
profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation
increase.

Goodwill is tested for impairment annually as at 31 July and when circumstances indicate that the carrying value
may be impaired.

Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which
the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss
is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.14 Inventories
Inventories are stated at the lower of cost or net realisable value, cost being determined on the weighted average
basis.

(a) Land held for property development

Land held for property development (classified within non-current assets) comprise land banks which are in
the process of being prepared for development but have not been launched, or where development activities
are not expected to be completed within the normal operating cycle. Such land is classified within non-current
assets and is stated at cost less any accumulated impairment losses.

Cost associated with the acquisition of land includes the purchase price of the land, professional fees, stamp
duties, commissions, conversion fees and other relevant levies.

Land held for property development is reclassified as property development costs at the point when development
activities have commenced and where it can be demonstrated that the development activities can be completed
within the normal operating cycle.

(b) Property development cost

Property development costs comprise all costs that are directly attributable to development activities or that
can be allocated on a reasonable basis to such activities.

Where the financial outcome of a development activity can be estimated reliably, property development revenue
and expenses are recognised in profit or loss by using the stage of completion method. The stage of completion
is determined by the proportion that property development costs incurred for work performed to date bear to
the estimated total property development costs.

Where the financial outcome of a development activity cannot be estimated reliably, property development
revenue is recognised only to the extent of property development costs incurred that are likely to be recoverable.
Property development costs are recognised as expenses in the period in which they are incurred.

Any expected loss on a development project, including costs to be incurred over the defects liability period, is
recognised as an expense immediately.

Property development costs not recognised as an expense are recognised as an asset, which is measured at
the lower of cost and net realisable value.

The excess of revenue recognised in profit or loss over billings to purchasers is classified as accrued billings
within trade receivables and the excess of billings to purchasers over revenue recognised in profit or loss is
classified as progress billings within trade payables.

(c) Completed properties

Costs comprise costs of acquisition of land including all related costs incurred subsequent to the acquisition
necessary to prepare the land for its intended use, related development costs to projects and direct building costs.

(d) Raw materials, panels and work in progress

The cost of raw materials includes the cost of purchase and other direct charges. The costs of panels and
work-in-progress comprise of raw materials, direct labour, other direct costs and appropriate proportions of
production overheads. Cost of inventories are accounted for using the weighted average cost method.

Net realisable value represents the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sale.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.15 Investment properties
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost, which reflects market conditions at the reporting date. Gains or losses
arising from changes in the fair values of investment properties are included in profit or loss in the period in which
they arise, including the corresponding tax effect. Fair values are determined based on an annual valuation performed
by an accredited external independent valuer applying a valuation model recommended by the International Valuation
Standards Committee or internal appraisals by the directors.

A property interest under an operating lease is classified and accounted for as an investment property on a property-
by-property basis when the Group holds it to earn rentals or for capital appreciation or both. Any such property
interest under an operating lease classified as an investment property is carried at cost.

Investment properties are derecognised either when they have been disposed of (i.e., at the date the recipient obtains
control) or when they are permanently withdrawn from use and no future economic benefit is expected from their
disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in
profit or loss in the period of derecognition. The amount of consideration to be included in the gain or loss arising
from the derecognition of investment property is determined in accordance with the requirements for determining
the transaction price in MFRS 15.

Transfers are made to (or from) investment property only when there is a change in use. For a transfer from investment
property to owner-occupied property, the deemed cost for subsequent accounting is the fair value at the date of
change in use. If owner-occupied property becomes an investment property, the Group accounts for such property in
accordance with the policy stated under property, plant and equipment, set out in Note 2.9 up to the date of change
in use.

2.16 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and
a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision
to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement
of profit or loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.17 Taxes
(a) Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted
or substantively enacted at the reporting date in the countries where the Group operates and generates taxable
income.

Current income tax relating to items recognised directly in equity is recognised in equity and not in the statement
of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(b) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all temporary differences, except:

– when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
profit nor taxable profit or loss; and

– in respect of taxable temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled
and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences, and the carry forward of
unused tax credits and unused tax losses can be utilised, except:

– when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and

– in respect of deductible temporary differences associated with investments in subsidiaries, associates and
interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that
the temporary differences will reverse in the foreseeable future and taxable profit will be available against
which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that
it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised
to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.17 Taxes (cont'd.)
(b) Deferred tax (cont'd.)
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when
the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred
tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition
at that date, are recognised subsequently if new information about facts and circumstances change. The
adjustment is either treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred
during the measurement period or recognised in profit or loss.

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right
to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities
relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets
and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
liabilities or assets are expected to be settled or recovered.

(c) Sales and Service Tax (“SST”)

The net amount of SST being the difference between output and input of SST, payable to or receivable from
the respective authorities at the reporting date, is included in other payables or other receivables in the
statements of financial position.

Revenue is recognised net of SST charged to customers. Expenses and assets are recognised inclusive of SST.
The amount payable to taxation authority is included as payables in the statement of financial position.

The effective date for SST in Malaysia is on 1 September 2018. Prior to this date, Malaysia was under the Goods
and Services Tax (“GST”) regime.

2.18 Employee benefits

(a) Short term benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the year in which
the associated services are rendered by employees of the Group. Short term accumulating compensated absences
such as paid annual leave are recognised when services are rendered by employees that increase their entitlement
to future compensated absences. Short term non-accumulating compensated absences such as sick leave are
recognised when the absences occur.

(b) Defined contribution plans

The Group participates in the national pension schemes as defined by the laws of the countries in which it has
operations. The Malaysian companies in the Group make contributions to the Employee Provident Fund (“EPF”)
in Malaysia, a defined contribution pension scheme. Contributions to defined contribution pension schemes are
recognised as an expense in the period in which the related service is performed.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.18 Employee benefits (cont’d.)
(c) Defined benefit plans
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit obligation
(derived using a discount rate based on high quality corporate bonds) at the end of the reporting period reduced
by the fair value of plan assets (if any), adjusted for any effect of limiting a net defined benefit asset to the
asset ceiling. The asset ceiling is the present value of any economic benefits available in the form of refunds
from the plan or reductions in future contributions to the plan.

The cost of providing benefits under the defined benefit plans is determined separately for each plan using the
projected unit credit method.

Defined benefit costs comprise service costs, net interest on the net defined benefit liability or asset and
remeasurements of net defined benefit liability or asset.

Service costs which include current service costs, past service costs and gains or losses on non-routine
settlements are recognised as expense in profit or loss. Past service costs are recognised when plan amendment
or curtailment occurs.

Net interest on the net defined benefit liability or asset is the change during the period in the net defined benefit
liability or asset that arises from the passage of time which is determined by applying the discount rate based
on high quality corporate bonds to the net defined benefit liability or asset. Net interest on the net defined
benefit liability or asset is recognised as expense or income in profit or loss. Remeasurements, comprising of
actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net
defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net
defined benefit liability), are recognised immediately in the statement of financial position with a corresponding
debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not
reclassified to profit or loss in subsequent periods.

The amount recognised in the consolidated statements of financial position represents the present value of the
defined benefit obligations adjusted for unrecognised actuarial gains and losses and unrecognised past service
costs, and reduced by the fair value of plan assets. Any asset resulting from this calculation is limited to the
net total of any unrecognised actuarial losses and past service costs, and the present value of any economic
benefits in the form of refunds or reductions in future contributions to the plan.

(d) Share based compensation

The Gamuda Berhad Employees’ Share Option Scheme (“ESOS”), an equity-settled, share based compensation
plan, allows the Group’s employees to acquire ordinary shares of the Company. The total fair value of share
options granted to employees is recognised as an employee cost with a corresponding increase in the share
options reserve within equity over the vesting period and taking into account the probability that the options
will vest. The fair value of share options is measured at grant date, taking into account, if any, the market
vesting conditions upon which the options were granted but excluding the impact of any non-market vesting
conditions. Non-market vesting conditions are included in assumptions about the number of options that are
expected to become exercisable on vesting date.

At each reporting date, the Group revises its estimates of the number of options that are expected to become
exercisable on vesting date. It recognises the impact of the revision of original estimates, if any, in the profit
or loss, and a corresponding adjustment to equity over the remaining vesting period. The equity amount is
recognised in the share option reserve until the option is exercised, upon which it will be transferred to share
premium, or until the option expires, upon which it will be transferred directly to retained profits.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.19 Revenue from contracts with customers and other income recognition
Revenue from contracts with customers is recognised when control of the goods or services is transferred to the
customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those
goods or services. Other income is recognised to the extent that they are probable that the economic benefits associated
with the transaction will flow to the Group and the other income can be reliably measured. Revenue and other income
are measured at the fair value of consideration received or receivable.

(a) Revenue recognition from contracts with customers

The following specific recognition criteria must also be met before revenue and other income are recognised:
(i) Engineering and construction contracts
Revenue from engineering and construction contracts is accounted for by the stage of completion method
as described in Note 2.12.

(ii) Property development

Property development contracts with customers may include multiple promises to customers and are
accounted for as separate performance obligations. Transaction price will be allocated to each performance
obligation based on the stand-alone selling prices. When these are not directly observable, they are
estimated based on expected cost-plus margin.

Revenue from property development is recognised as and when the control of the asset is transferred to
the customer. Depending on the terms of the contract and the laws that apply to the contract, control of
the asset may transfer over time or at a point in time. Control of the asset is transferred over time if the
Group’s performance does not create an asset with an alternative use to the Group and the Group has
an enforceable right to payment for performance completed to-date.

This is generally established when:

– the promised properties are specifically identified by its plot, lot and parcel number and its attributes
(such as its size and location) in the sale and purchase agreements and the attached layout plan and
the purchasers could enforce its rights to the promised properties if the Group seeks to sell the unit
to another purchaser. The contractual restriction on the Group’s ability to direct the promised residential
property for another use is substantive and the promised properties sold to the purchasers do not
have an alternative use to the Group; and

– the Group has the right to payment for performance completed to date and is entitled to continue to
transfer to the customer the development units promised and has the rights to complete the construction
of the properties and enforce its rights to full payments.

If control of the asset is transferred over time, revenue is recognised over the period of the contract by
reference to the progress towards complete satisfaction of that performance obligation. Otherwise, the
Group recognises the revenue at a point of time to the sale of completed properties and properties under
contract of sale when the control of the properties has been transferred to the customers and it is probable
that the Group will collect the consideration it is entitled to.

The Group recognises sales at a point in time for the sale of completed properties, when the control of
the properties has been transferred to the purchasers, being when the properties have been completed
and delivered to the customers.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.19 Revenue from contracts with customers and other income recognition (cont’d.)
(a) Revenue recognition from contracts with customers (cont’d.)
The following specific recognition criteria must also be met before revenue and other income are recognised:
(cont’d.)
(iii) Sale of goods and services
Revenue relating to the sale of goods is recognised net of discounts upon the transfer of risks and rewards.
Revenue from services rendered is recognised net of service taxes and discount as and when the services
are performed. Sale of goods and services of the Group includes trading of construction materials and
sales of manufactured products.

(iv) Supply of water and related services

Revenue from management, operation and maintenance of dams and water treatment facilities are
recognised net of discounts as and when the services are performed.

(v) Toll concession revenue

Toll revenue includes toll collection and Government compensation. Toll collection is accounted for as
and when toll is chargeable for the usage of the Highway.

The amount of Government compensation are recognised in profit or loss for the year after taking into
consideration the effects of the concession arrangement.

(vi) Dividend income

Dividend income is recognised when the right to receive payment is established.

(vii) Club membership entrance fees and annual fees

Membership entrance fees from members represent 20% of the membership fees whereas membership
annual fees represent the remaining 80% of the membership fees. The membership fees are received
upfront and recognised on a straight-line basis over the tenure of the membership.

(b) Other income

(i) Interest income
Interest is recognised on a time proportion basis that reflects the effective yield on the asset.

(ii) Rental income

Rental income is recognised on a straight-line basis over the term of the lease. The aggregate cost of
incentives provided to lessees is recognised as a reduction of rental income over the lease term on a
straight-line basis.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.20 Foreign currencies
(a) Functional and presentation currency
The Group’s consolidated financial statements are presented in Ringgit Malaysia (“RM”), which is also the parent
company’s functional currency. For each entity, the Group determines the functional currency and items included
in the financial statements of each entity are measured using that functional currency. The Group uses the
direct method of consolidation and on disposal of a foreign operation, the gain or loss that is reclassified to
profit or loss reflects the amount that arises from using this method.

(b) Transactions and balances

Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional
currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities
denominated in foreign currencies are translated at the functional currency spot rates of exchange at the
reporting date.

Differences arising on settlement or translation of monetary items are recognised in profit or loss with the
exception of monetary items that are designated as part of the hedge of the Group’s net investment in a foreign
operation. These are recognised in OCI until the net investment is disposed of, at which time, the cumulative
amount is reclassified to profit or loss. Tax charges and credits attributable to exchange differences on those
monetary items are also recognised in OCI.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value is determined. The
gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items
whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss,
respectively).

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or
part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration,
the date of the transaction is the date on which the Group initially recognises the non-monetary asset or non-
monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance,
the Group determines the transaction date for each payment or receipt of advance consideration.

(c) Group companies

On consolidation, the assets and liabilities of foreign operations are translated into RM at the rate of exchange
prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing
at the dates of the transactions. The exchange differences arising on translation for consolidation are recognised
in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is
reclassified to profit or loss.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying
amounts of assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign
operation and translated at the spot rate of exchange at the reporting date.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.20 Foreign currencies (cont’d.)
(c) Group companies (cont’d.)
The principal exchange rates used for every unit of foreign currency ruling at the reporting date are as follows:

2020 2019
RM RM

United States Dollar 4.238 4.126

Indian Rupee 0.057 0.060
New Taiwan Dollar 0.144 0.132
Qatari Riyal 1.155 1.125
Bahraini Dinar 11.225 10.918
100 Vietnam Dong 0.018 0.018
Australian Dollar 3.027 2.847
Singapore Dollar 3.083 3.015
Pound Sterling 5.508 –

2.21 Financial assets

Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through
other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow
characteristics and the Group’s business model for managing them. With the exception of trade receivables that do
not contain a significant financing component or for which the Group has applied the practical expedient, the Group
initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through
profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which
the Group has applied the practical expedient are measured at the transaction price determined under MFRS 15.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding.
This assessment is referred to as the SPPI test and is performed at an instrument level.

The Group’s business model for managing financial assets refers to how it manages its financial assets in order to
generate cash flows. The business model determines whether cash flows will result from collecting contractual cash
flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation
or convention in the market place (regular way trades) are recognised on the trade date, i.e. the date that the Group
commits to purchase or sell the asset.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.21 Financial assets (cont’d.)
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
– Financial assets at amortised cost (debt instruments)
– Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)
– Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
– Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

This category is the most relevant to the Group. The Group measures financial assets at amortised cost if both of
the following conditions are met:
– The financial asset is held within a business model with the objective to hold financial assets in order to collect
contractual cash flows; and
– The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest (“EIR”) method and are
subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or
impaired.

The Group’s financial assets at amortised cost includes trade receivables and loans to associates included under
other non-current financial assets.

Financial assets at fair value through OCI (debt instruments)

The Group measures debt instruments at fair value through OCI if both of the following conditions are met:
– The financial asset is held within a business model with the objective of both holding to collect contractual cash
flows and selling; and
– The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses
or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial
assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the
cumulative fair value change recognised in OCI is recycled to profit or loss.

The Group’s debt instruments at fair value through OCI includes investments in quoted debt instruments included
under other non-current financial assets.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.21 Financial assets (cont'd.)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated
upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured
at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for
trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not
solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective
of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair
value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on
initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with
net changes in fair value recognised in the statement of profit or loss.

This category includes derivative instruments and listed equity investments which the Group had not irrevocably elected
to classify at fair value through OCI. Dividends on listed equity investments are also recognised as other income in
the statement of profit or loss when the right of payment has been established.

A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is separated from the host
and accounted for as a separate derivative if: the economic characteristics and risks are not closely related to the
host; a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative;
and the hybrid contract is not measured at fair value through profit or loss. Embedded derivatives are measured at
fair value with changes in fair value recognised in profit or loss. Reassessment only occurs if there is either a change
in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value through profit or loss category.

A derivative embedded within a hybrid contract containing a financial asset host is not accounted for separately. The
financial asset host together with the embedded derivative is required to be classified in its entirety as a financial
asset at fair value through profit or loss.

Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is
primarily derecognised (i.e. removed from the Group’s consolidated statement of financial position) when:
– The rights to receive cash flows from the asset have expired; or
– The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and
either
(a) the Group has transferred substantially all the risks and rewards of the asset, or
(b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the
asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case,
the Group also recognises an associated liability. The transferred asset and the associated liability are measured on
a basis that reflects the rights and obligations that the Group has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of
the original carrying amount of the asset and the maximum amount of consideration that the Group could be required
to repay.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.22 Impairment of financial assets
The Group recognises an allowance for expected credit losses (“ECLs”) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with
the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original
effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit
enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible
within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the
remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore,
the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at
each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic environment.

For debt instruments at fair value through OCI, the Group applies the low credit risk simplification. At every reporting
date, the Group evaluates whether the debt instrument is considered to have low credit risk using all reasonable and
supportable information that is available without undue cost or effort. In making that evaluation, the Group reassesses
the internal credit rating of the debt instrument. In addition, the Group considers that there has been a significant
increase in credit risk when contractual payments are more than 30 days past due.

The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain
cases, the Group may also consider a financial asset to be in default when internal or external information indicates
that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit
enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering
the contractual cash flows.

2.23 Cash and cash equivalents

Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand and short-term
deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-
term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the
Group’s cash management.

2.24 Share capital and share issuance expense

An equity instrument is any contract that evidences a residual interest in the assets of the Group and the Company
after deducting all of its liabilities. Ordinary shares are equity instruments.

Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs.
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in which
they are declared.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.25 Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.

The measurement of financial liabilities depends on their classification, as described below:

(a) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Group that are not
designated as hedging instruments in hedge relationships as defined by MFRS 9. Separated embedded derivatives
are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the
initial date of recognition, and only if the criteria in MFRS 9 are satisfied.

(b) Other financial liabilities

The Group’s and the Company’s other financial liabilities include trade and other payables, Islamic debts and
borrowings.

Other financial liabilities are recognised initially at fair value plus directly attributable transaction costs and
subsequently measured at amortised cost using the effective interest method.

After initial recognition of loans and borrowings, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit
or loss.

Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is
recognised in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of
financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an
intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.26 Derivative financial instruments and hedge accounting
Initial recognition and subsequent measurement
The Group uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward
commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract
is entered into and are subsequently remeasured at fair value. Derivatives are carried as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as:

– Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an
unrecognised firm commitment;
– Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular
risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency
risk in an unrecognised firm commitment; or
– Hedges of a net investment in a foreign operation.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to
which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being
hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements
(including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined).

A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
– There is ‘an economic relationship’ between the hedged item and the hedging instrument.
– The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship.
– The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item
that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge
that quantity of hedged item.

Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below:

Cash flow hedges

The effective portion of the gain or loss on the hedging instrument is recognised in OCI in the cash flow hedge reserve,
while any ineffective portion is recognised immediately in the statement of profit or loss. The cash flow hedge reserve
is adjusted to the lower of the cumulative gain or loss on the hedging instrument and the cumulative change in fair
value of the hedged item.

To manage its risks, particularly interest rate risks and foreign currency risk, the Group has entered into cross-
currency interest rate swap arrangements with financial institutions.

The amounts accumulated in OCI are accounted for, depending on the nature of the underlying hedged transaction.
If the hedged transaction subsequently results in the recognition of a non-financial item, the amount accumulated in
equity is removed from the separate component of equity and included in the initial cost or other carrying amount of
the hedged asset or liability. This is not a reclassification adjustment and will not be recognised in OCI for the period.
This also applies where the hedged forecast transaction of a non-financial asset or non-financial liability subsequently
becomes a firm commitment for which fair value hedge accounting is applied.

For any other cash flow hedges, the amount accumulated in OCI is reclassified to profit or loss as a reclassification
adjustment in the same period or periods during which the hedged cash flows affect profit or loss.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.27 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes
a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset.
All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and
other costs that an entity incurs in connection with the borrowing of funds.

2.28 Deferred revenue

Deferred revenue comprise the following:
(a) Advance maintenance fees and license fees
Fees received from third parties to upkeep the inter-change at the expressway and for the exclusive rights to
design, construct, operate and manage ancillary facilities along the expressway, are recognised in profit or loss
on a straight line basis over the remaining concession period.

(b) Government compensation

Compensation received from the Government for the imposition of revised toll rates lower than those as provided
for in the respective Concession Agreements, which is taken to profit or loss over the period the compensation
relates.

2.29 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability takes place either:
(a) In the principal market for the asset or liability, or
(b) In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)

2.29 Fair value measurement (cont’d.)
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

(a) Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities

(b) Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable

(c) Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.

2.30 Land use rights

Land use rights are initially measured at cost. Following initial recognition, land use rights are measured at cost less
accumulated amortisation and any accumulated impairment losses. The land use rights are amortised over their lease
terms.

2.31 Contract assets and contract liabilities

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the
Group performs by transferring goods or services to a customer before the customer pays consideration or before
payment is due, a contract asset is recognised for the earned consideration that is conditional.

A contract liability is the obligation to transfer goods or services to a customer for which the Group has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Group transfers goods or services to the customer, a contract liability is recognised when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognised as revenue or other income when the
Group performs the contract.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the Group’s financial statements requires management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities
at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could
require a material adjustment to the carrying amount of the asset or liability affected in the future.

In the process of applying the Group’s accounting policies, management did not make any significant judgement which may
have significant effect on the amount recognised in the financial statements.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have
a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below:

(a) Revenue for property development activities and construction contracts

The Group and the Company recognise contract or property development revenue and expenses in the profit or loss
by using the stage of completion method. The stage of completion is determined by the proportion that contract or
property development costs incurred for work performed to date bear to the estimated total contract or property
development costs.

Significant estimation is involved in determining the stage of completion, the extent of the contract or property
development costs incurred, the estimated total contract or property development revenue and costs, as well as the
recoverability of the contracts or development projects. In making the estimation, the Group evaluates based on past
experiences and by relying on the work of specialists.

Where the total actual revenue and cost incurred are different from the total estimated revenue and cost incurred,
such differences will impact the contract profit or losses recognised.

The carrying amount of the Group’s property development costs at the reporting date is disclosed in Note 13(b).

The carrying amount of the Group’s and the Company’s contract assets/(liabilities) for construction contracts at the
reporting date is disclosed in Note 22.

(b) Deferred tax assets

Deferred tax assets are recognised for all unused tax losses, unabsorbed capital allowances and other deductible
temporary differences to the extent that it is probable that taxable profit will be available against which the unused
tax losses, unabsorbed capital allowances and other deductible temporary differences can be utilised. Significant
management judgement is required to determine the amount of deferred tax assets that can be recognised, based
upon the likely timing and level of future taxable profits together with future tax planning strategies. The total carrying
value of recognised and unrecognised tax losses, capital allowances and other deductible temporary differences of the
Group and of the Company are as disclosed in Note 32.

(c) Provision for development cost

The Group recognises a provision for development cost in respect of development projects undertaken by its subsidiaries.
In determining the provision, the Group has made assumptions in relation to the development cost incurred on the
completed phases. The carrying amount of provision for development cost at the reporting date is disclosed in Note
37(a).

If the actual claims differ by 5% from management’s estimates, the Group’s profit for the year will increase/decrease
by RM2,067,000 (2019: RM3,107,000).

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT'D.)

Key sources of estimation uncertainty (cont'd.)
(d) Provision for affordable housing
Provision for affordable housing is recognised for anticipated losses to be incurred for the development of low cost
housing under the requirements of the local Government attributable to a premium housing project. The Group is of
the view that the expected costs should be accrued progressively as and when the premium housing is constructed.
The provision for affordable housing represents the shortfall between the cost of constructing affordable housing and
the economic benefits expected to be received from the purchasers of affordable housing in the development of
affordable housing on involuntary basis. This provision is capitalised in the form of common costs for development of
premium housing based on the following conditions:

– The master and building plans is approved;

– The developer commenced development; and
– Sales of the affordable housing are controlled, whereby eligibility of buyers is dictated by the authority and the
developer has no ability to impose selling price higher than what the authority dictates.

In determining the provision for affordable housing, estimates and assumptions are made by the Group on the structure
and construction costs in constructing the affordable housing. In making those judgements, the Group evaluates the
provisions based on past experience.

The carrying amount of the Group’s provision for affordable housing as at reporting date is disclosed in Note 37(b).

(e) Impairment of investments in subsidiaries, associated companies and joint ventures

The Group and the Company assess at each reporting date whether there are indicators of impairment for its investments
in subsidiaries, associated companies and joint ventures. This involves measuring the recoverable amounts which
includes fair value less costs to sell and valuation techniques. Valuation techniques include the use of discounted cash
flow analysis, considering the current market value indicators and recent arms-length market transactions. These
estimates provide reasonable approximations to the computation of recoverable amounts.

The carrying amount of the investment in GIBS as at 31 July 2020 was RM655,000,000. During the financial year, the
Company has recognised impairment of RM285,000,000 in the investment of GIBS. The Company carried out the
impairment test based on measuring the recoverable amounts which includes fair value less costs to sell and valuation
techniques. Valuation techniques include the use of discounted cash flow analysis, considering the current market value
indicators and recent arms-length market transactions. These estimates provide reasonable approximations to the
computation of recoverable amounts.

If the management’s estimated gross margin had been lowered by 1%, the carrying amount of the investment in GIBS
would be further impaired by RM12,200,000. If the management’s estimated pre-tax discount rate applied to the
discounted cash flows had been raised by 1%, the carrying amount of the investment in GIBS would be further impaired
by RM20,200,000. If the management’s estimated revenue growth rate had been lowered by 10%, the carrying amount
of the investment in GIBS would be further impaired by RM26,200,000.

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– 31 July 2020

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D.)

Key sources of estimation uncertainty (cont’d.)
(f) Provision for expected credit losses of trade receivables and contract assets
The Group uses a provision matrix to calculate ECLs for trade receivables and contract assets. The provision rates are
based on days past due for groupings of various customer segments that have similar loss patterns (i.e. by geography,
product type, customer type and rating, and coverage by letters of credit and other forms of credit insurance).

The provision matrix is initially based on the Group’s historical observed default rates. The Group will calibrate the
matrix to adjust the historical credit loss experience with forward-looking information. For instance, if forecast economic
conditions (i.e. gross domestic product) are expected to deteriorate over the next year which can lead to an increased
number of defaults, the historical default rates are adjusted. At every reporting date, the historical observed default
rates are updated and changes in the forward-looking estimates are analysed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs
is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic
conditions. The Group’s historical credit loss experience and forecast of economic conditions may also not be representative
of customer’s actual default in the future.

(g) Impairment assessment on property, plant and equipment (“PPE”)

The Group and the Company assess whether there are any indicators of impairment for all non-financial assets at
each reporting date.

The carrying amount of the property, plant and equipment of the Group as at 31 July 2020 was RM394,881,000. During
the financial year, the Group has recognised impairment in respect of its subsidiary, GIBS’s, property, plant and
equipment of RM148,100,000. The Group carried out the impairment test based on a variety of estimation including the
value in use of the cash-generating unit (”CGU”) to which the property, plant and equipment are allocated. Estimating
the value in use requires the Group to make an estimate of the expected future cash flows from the CGU and also to
choose a suitable discount rate in order to calculate the present value of those cash flows.

If the management’s estimated gross margin had been lowered by 1%, the property, plant and equipment would be
further impaired by RM12,200,000. If the management’s estimated pre-tax discount rate applied to the discounted cash
flows had been raised by 1%, the property, plant and equipment would be further impaired by RM20,200,000. If the
management’s estimated revenue growth rate had been lowered by 10%, the property, plant and equipment would be
further impaired by RM26,200,000.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

4. REVENUE
Revenue of the Group and of the Company consists of the following:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Engineering and construction contracts 1,624,739 1,686,398 1,070,071 1,306,752

Sales of development properties 1,321,316 2,121,863 – –
Trading of construction materials 81,423 163,880 – –
Sales of manufactured products 62,073 43,998 – –
Quarry sales 55,258 28,170 – –
Supply of water and related services 165,557 170,297 – –
Toll concession revenue 314,835 308,982 – –
Dividend income from subsidiaries – – 89,046 166,288
Dividend income from associated companies – – 100,053 771,518
Dividend income from joint ventures – – 267,000 175,800
Others 37,763 41,474 – 12

3,662,964 4,565,062 1,526,170 2,420,370

Timing of revenue recognition:

– At a point in time 1,642,129 1,210,550 456,099 1,113,618
– Over time 2,020,835 3,354,512 1,070,071 1,306,752

3,662,964 4,565,062 1,526,170 2,420,370

Supplementary information on revenue of the Group inclusive of the Group’s share of revenue of joint ventures are as
follows:

2020 2019
RM’000 RM’000

Revenue of the Group 3,662,964 4,565,062

Share of revenue of joint ventures:
– Engineering and construction contracts 2,953,308 2,198,418
– Property development and club operations 173,742 400,403
– Water and expressway concessions 14,909 17,315

6,804,923 7,181,198

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– 31 July 2020

5. STAFF COSTS

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Wages and salaries: 321,835 332,726 121,095 140,227

– Company 31,908 23,047 31,908 23,047

– Joint operations 89,187 117,180 89,187 117,180
– Subsidiaries 200,740 192,499 – –

Bonus – 23,116 – 5,381

Directors’ remuneration (Note 6) 13,420 15,842 12,676 14,533
Short term accumulating compensated absences 1,296 1,324 (142) 332
Defined contribution plans 23,866 25,781 3,285 4,667
Provision for retirement benefit obligations (1,233) 7,305 441 643
Share options granted under ESOS 17,957 17,609 17,982 17,609
Social security costs 3,605 3,267 180 138
Other staff related expenses 53,242 44,937 2,320 4,379

433,988 471,907 157,837 187,909

Less: Amount capitalised in qualifying assets:

– Property development costs (Note 13(b)) (37,763) (39,255) – –
–  Investment properties (Note 14) (556) (2,785) – –
– Costs of contract assets from
  construction (Note 22(a)) (126,942) (164,807) (86,484) (116,595)

Less: Amount classified as highway

  maintenance and toll operations (11,808) (12,015) – –

256,919 253,045 71,353 71,314

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– 31 July 2020

6. DIRECTORS' REMUNERATION

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Directors

Executive:
Salaries 11,275 13,143 10,695 12,055
Defined contribution plans 1,596 1,871 1,522 1,727
Provision for retirement benefit obligations 156 167 115 128
Share options granted under ESOS 245 492 220 492
Other emoluments
– Allowances 148 169 124 131
– Benefits-in-kind 684 1,258 589 829

14,104 17,100 13,265 15,362

Non-executive:
Fees 716 774 716 774
Other emoluments
– Allowances 175 172 175 172
– Benefits-in-kind 28 98 28 98

919 1,044 919 1,044

Total 15,023 18,144 14,184 16,406

Analysis excluding benefits-in-kind:

Total executive directors’ remuneration

excluding benefits-in-kind (Note 5) 13,420 15,842 12,676 14,533
Total non-executive directors’ remuneration
excluding benefits-in-kind (Note 7) 891 946 891 946

Total directors’ remuneration excluding benefits-in-kind 14,311 16,788 13,567 15,479

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– 31 July 2020

6. DIRECTORS' REMUNERATION (CONT'D.)

The details of the remuneration paid by the Group and the Company to each director who served during the financial years
ended 31 July 2020 and 31 July 2019 are as follows:

Salaries,
bonus Other
and EPF Fees emoluments* Total
2020 RM’000 RM’000 RM’000 RM’000

Directors

Executive:
Y Bhg Dato’ Lin Yun Ling 5,414 – 291 5,705
Y Bhg Dato’ Ir. Ha Tiing Tai 3,063 – 247 3,310
Encik Mohammed Rashdan bin Mohd Yusof 3,740 – 175 3,915
Y Bhg Dato’ Ubull a/l Din Om 654 – 119 773

12,871 – 832 13,703

Non-executive:
Y Bhg Dato’ Mohammed bin Haji Che Hussein – 189 122 311
YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin Shah
Al-Maghfur-lah – 117 12 129
Y Bhg Tan Sri Dato’ Setia Haji Ambrin bin Buang – 117 12 129
YM Tunku Afwida binti Tunku A.Malek – 149 31 180
Puan Nazli binti Mohd Khir Johari – 144 26 170

– 716 203 919

* Included in other emoluments are allowances and benefits-in-kind.

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– 31 July 2020

6. DIRECTORS' REMUNERATION (CONT'D.)

The details of the remuneration paid by the Group and the Company to each director who served during the financial years
ended 31 July 2020 and 31 July 2019 are as follows: (cont’d.)

Salaries,
bonus Other
and EPF Fees emoluments* Total
2019 RM’000 RM’000 RM’000 RM’000

Directors

Executive:
Y Bhg Dato’ Lin Yun Ling 5,852 – 225 6,077
Y Bhg Dato’ Ir. Ha Tiing Tai 3,245 – 215 3,460
Encik Mohammed Rashdan bin Mohd Yusof# 4,093 – 151 4,244
Y Bhg Dato’ Goon Heng Wah^ 262 – 165 427
Y Bhg Dato’ Haji Azmi bin Mat Nor^ 294 – 140 434
Mr Saw Wah Theng^ 247 – 130 377
Y Bhg Dato’ Ubull a/l Din Om 676 – 54 730
Y Bhg Dato’ Ir. Chow Chee Wah^ 132 – 151 283
Ir. Chan Kong Wah^ 130 – 122 252
Mr Soo Kok Wong^ 83 – 74 157

15,014 – 1,427 16,441

Non-executive:
Y Bhg Dato’ Mohammed bin Haji Che Hussein – 211 174 385
YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin Shah
Al-Maghfur-lah – 130 22 152
Y Bhg Tan Sri Dato’ Setia Haji Ambrin bin Buang# – 109 16 125
YM Tunku Afwida binti Tunku A.Malek – 164 32 196
Puan Nazli binti Mohd Khir Johari – 160 26 186

– 774 270 1,044

#
Appointed w.e.f. 28 September 2018
^ Resigned w.e.f. 28 September 2018
* Included in other emoluments are allowances and benefits-in-kind.

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– 31 July 2020

7. PROFIT FROM OPERATIONS

The following items have been included in arriving at profit from operations:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000
(Restated)

Amortisation:
– Land use rights (Note 15(a)) – 425 – –
– Concession development expenditure (Note 16) 137,160 127,982 – –
Auditors’ remuneration:
– Statutory audits:
– Group’s auditors 1,478 1,541 328 280
– Other auditors 96 104 53 24
– Other services 1,079 146 950 140
Right-of-use assets (Note 15(b)):
– Depreciation 4,286 – 134 –
Investment properties (Note 14):
– Depreciation 6,970 7,127 153 155
– Net gain on disposal (2,223) (24,055) – –
Non-executive directors’ remuneration (Note 6) 891 946 891 946
Share options granted under ESOS 18,202 18,101 18,202 18,101
Property, plant and equipment (Note 12):
– Depreciation 74,711 56,594 6,805 7,057
– Written off 2,753 31 2 7
– Net gain on disposal (458) (510) (319) (280)
Net provision for liabilities (Note 37) 4,518 4,490 – –
Expenses relating to leases:
– Short-term leases 2,985 – 1,481 –
– Low value assets 350 – 1 –
Rental expense:
– Land – 2,359 – –
– Premises – 991 – 34
Hire of plant and equipment – 3,698 – –
Loss/(gain) of foreign exchange:
– Realised (118) 1,126 – (3,312)
– Unrealised – 31 (25,661) (32,550)
Rental income:
– Premises (1,883) (775) (5,443) (5,285)
– Others (2,331) (2,361) (41) (176)

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

7. PROFIT FROM OPERATIONS (CONT’D.)

The following items have been included in arriving at profit from operations: (cont’d.)

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000
(Restated)

Impairment of:
– Property, plant and equipment (Note 12) 148,100 – – –
– Investments in subsidiaries (Note 17) – – 285,000 –
– Trade receivables (Note 21(i)) 1,197 38,963 – 38,311
Share of profits of associated companies 116,245 126,634 – –
Share of profits of joint ventures 192,181 186,534 – –
Fair value gain on embedded derivatives (Note 35) (1,459) (2,957) – –
Distribution from investment securities:
– Islamic (9,594) (8,773) (7,011) (736)
– Non-Islamic (10,460) (4,868) (7,553) (1,980)
Profit rate from Islamic fixed deposits (15,104) (9,553) (1,949) (1,815)
Interest income arising from:
– Non-Islamic fixed deposits (83,154) (69,546) (755) (954)
– Significant financing component (Note 22(b)) (60) (2,133) – –
– Subsidiaries – – (161,783) (153,716)
Unwinding of discount:
– Notional interest income (28,111) (53,660) (10,800) (40,940)

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– 31 July 2020

8. FINANCE COSTS

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000
(Restated)

Profit rate on Islamic medium term notes 124,755 140,779 87,718 88,920
Interest expense on:
– Commercial papers 17,321 7,176 17,321 7,176
– Revolving credits 34,677 31,601 27,147 21,733
– Term loans 88,830 118,859 – –
Lease liabilities (Note 31) 735 – 91 –
Unwinding of discount
– Notional interest expense 16,245 10,601 3,320 3,147
Others 579 728 622 –

283,142 309,744 136,219 120,976

Less:
Interest expense capitalised into:
– Contract assets and liabilities (Note 22(a)) (4,792) (5,556) (86) –
– Property development costs (Note 13(b)) (138,505) (185,450) – –
– Property, plant and equipment (Note 12) (483) – – –
– Investment properties (Note 14) (22) (1,417) – –

139,340 117,321 136,133 120,976

9. INCOME TAX EXPENSE

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000
(Restated)

Income tax:
Malaysian income tax 128,648 115,608 29,730 25,553
Foreign income tax 77,047 38,263 2,152 25
(Over)/under provision in prior years (3,880) 28,449 (1,064) 3,594

201,815 182,320 30,818 29,172

Deferred tax (Note 32):

Relating to origination and reversal of temporary
differences (32,429) (13,512) (2,604) (5,146)
Over provision in prior years (8,114) (19,964) (570) (877)

(40,543) (33,476) (3,174) (6,023)

161,272 148,844 27,644 23,149

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

9. INCOME TAX EXPENSE (CONT’D.)

Domestic current income tax is calculated at the Malaysian statutory tax rate of 24% (2019: 24%) of the estimated assessable
profit for the year. Taxation for other jurisdictions is calculated at the rates prevailing in respective jurisdictions.

A reconciliation of income tax expense applicable to profit before tax at the statutory income tax rate to income tax expense
at the effective income tax rate of the Group and of the Company is as follows:

2020 2019
RM’000 RM’000
(Restated)

Group
Profit before tax 585,462 901,112

Taxation at Malaysian statutory tax rate of 24% (2019: 24%) 140,511 216,267
Effect of different tax rates in other countries (12,219) 170
Income not subject to tax (10,730) (39,012)
Expenses not deductible for tax purposes 69,278 24,814
Effects of tax on share of profits of associated companies and joint ventures (74,022) (75,160)
Utilisation of previously unrecognised tax losses, unabsorbed capital allowances and
other deductible temporary differences (1,294) (9,326)
Deferred tax assets not recognised in respect of current year’s tax losses, unabsorbed
capital allowances and other deductible temporary differences 61,742 22,606
(Over)/under provision of income tax in prior years (3,880) 28,449
Over provision of deferred tax in prior years (8,114) (19,964)

Income tax expense for the year 161,272 148,844

2020 2019
RM’000 RM’000

Company
Profit before tax 265,728 1,251,803

Taxation at Malaysian statutory tax rate of 24% (2019: 24%) 63,775 300,433
Effect of different tax rates in other countries 410 10,717
Income not subject to tax (119,724) (300,238)
Expenses not deductible for tax purposes 80,408 9,520
Deferred tax assets not recognised in respect of unutilised tax losses 4,409 -
(Over)/under provision of income tax in prior years (1,064) 3,594
Over provision of deferred tax in prior years (570) (877)

Income tax expense for the year 27,644 23,149

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– 31 July 2020

9. INCOME TAX EXPENSE (CONT’D.)

Tax savings during the financial year arising from:

Group

2020 2019
RM’000 RM’000

Utilisation of previously unrecognised tax losses (1,253) (3,077)

Utilisation of previously unabsorbed capital allowances (41) (4,720)
Utilisation of previously unrecognised other deductible temporary differences - (1,529)

(1,294) (9,326)

Details of deferred tax assets not recognised are stated in Note 32 to the financial statements.

10. EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY

(a) Basic
Basic earnings per share is calculated by dividing the profit for the year attributable to ordinary equity holders of the
Company by the weighted average number of ordinary shares in issue during the financial year.

2020 2019
(Restated)

Profit for the year attributable to ordinary equity holders of the Company (RM’000) 371,680 700,186

Weighted average number of ordinary shares in issue (‘000) 2,487,793 2,468,613

Basic earnings per share (sen) 14.94 28.36

(b) Diluted
Diluted earnings per share is calculated by dividing the profit for the year attributable to ordinary equity holders of
the Company by the weighted average number of ordinary shares in issue during the financial year plus the weighted
average number of ordinary shares that would be issued on conversion of all dilutive potential ordinary shares from
exercise of ESOS and Warrants into ordinary shares. The ESOS and Warrants are deemed to have been converted into
ordinary shares at the date of the issue of the ESOS and Warrants.

2020 2019
(Restated)

Profit for the year attributable to ordinary equity holders of the Company (RM’000) 371,680 700,186

Weighted average number of ordinary shares in issue ('000) 2,487,793 2,468,613

Adjusted for:
Assumed shares issued from the exercise of ESOS ('000) – 476

Adjusted weighted average number of ordinary shares in issue and issuable ('000) 2,487,793 2,469,089

Fully diluted earnings per share (sen) 14.94 28.36

There have been no other transactions involving ordinary shares between the reporting date and the date of authorisation
of these financial statements.

The ESOS has expired on 9 April 2020.

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– 31 July 2020

11. DIVIDENDS

Group and Company

Net dividends per

Amount ordinary share

2020 2019 2020 2019

RM’000 RM’000 sen sen

Dividends recognised in respect of

financial year ended 31 July 2020
– First interim dividend declared
on 13 December 2019
(a) Dividend paid by issuance of new shares
on 25 February 2020 pursuant to the
Company's Dividend Reinvestment Plan 71,387 – – –
(b) Dividend paid via cash on 25 February 2020 77,503 – 6.0 –

Dividends recognised in respect of

financial year ended 31 July 2019
– First interim dividend declared on
14 December 2018 and paid on
25 January 2019 – 148,083 – 6.0
– Second interim dividend declared on
27 June 2019 and paid on
6 August 2019 – 148,272 – 6.0

148,890 296,355 6.0 12.0

The Company's first Dividend Reinvestment Plan was completed on 26 February 2020 upon the listing and quotation of
19,829,839 new Gamuda Share at RM3.60 per share on the Main market of Bursa Malaysia Securities Berhad.

The directors do not recommend the payment of any final dividend in respect of the current financial year.

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– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT

Other
property,
Land and plant and Construction
buildings* equipment** in-progress Total
Group RM’000 RM’000 RM’000 RM’000
At 31 July 2020
Cost
At 1 August 2019 671,335 775,824 76,526 1,523,685
Additions 44,642 64,017 66,725 175,384
Transfer from investment properties (Note 14) 61,117 524 3,395 65,036
Reclassification upon completion 66,938 37,962 (104,900) –
Disposals – (4,317) – (4,317)
Write-offs (5,765) (4,868) – (10,633)
Exchange differences 3,687 533 279 4,499
At 31 July 2020 841,954 869,675 42,025 1,753,654

Accumulated depreciation
At 1 August 2019 90,997 277,178 – 368,175
Recognised in profit or loss (Note 7) 26,499 48,212 – 74,711
Capitalised in contract assets from construction
(Note 22(a)) – 109,610 – 109,610
Transfer from investment properties (Note 14) 992 – – 992
Disposals – (3,975) – (3,975)
Write-offs (3,377) (4,503) – (7,880)
Exchange differences 694 161 – 855
At 31 July 2020 115,805 426,683 – 542,488

Accumulated impairment loss

At 1 August 2019 – – – –
Recognised in profit or loss (Note 7) 63,704 84,396 – 148,100

At 31 July 2020 63,704 84,396 – 148,100

Net carrying amount

At 31 July 2020 662,445 358,596 42,025 1,063,066

Included in the additions to property, plant and equipment are mainly as follows:

RM’000

Sales gallery and sports centre 110,861

Other plant and machinery 45,122
Vehicles, office equipment, furniture and fittings 19,401

175,384

Impairment of property, plant and equipment

During the financial year, the Group has recognised impairment in respect of its subsidiary, GIBS’s property, plant and
equipment of RM148,100,000.

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– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT'D.)

Other
property,
Land and plant and Construction
buildings* equipment** in-progress Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cost
At 1 August 2018 525,516 494,125 258,185 1,277,826
Additions 4,960 128,376 120,454 253,790
Reclassification upon completion 138,739 163,296 (302,035) –
Disposals – (8,462) – (8,462)
Write-offs – (1,719) – (1,719)
Exchange differences 2,120 208 (78) 2,250

At 31 July 2019 671,335 775,824 76,526 1,523,685

Accumulated depreciation and impairment loss

At 1 August 2018 72,197 196,438 – 268,635
Recognised in profit or loss (Note 7) 18,827 37,767 – 56,594
Capitalised in contract assets from construction
(Note 22(a)) – 52,625 – 52,625
Disposals – (8,179) – (8,179)
Write-offs – (1,688) – (1,688)
Exchange differences (27) 215 – 188

At 31 July 2019 90,997 277,178 – 368,175

Net carrying amount

At 31 July 2019 580,338 498,646 76,526 1,155,510

Included in the additions to property, plant and equipment are mainly as follows:

RM’000

Industrial Building System ("IBS") factory, plant and machinery 136,256

Other plant and machinery 50,991
Sales gallery and sports centre 57,718
Vehicles, office equipment, furniture and fittings 8,825

253,790

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

* Land and buildings

Long term
Freehold leasehold
land land Buildings Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 95,853 23,030 552,452 671,335
Additions – 19,851 24,791 44,642
Transfer from investment properties 1,238 24,213 35,666 61,117
Reclassification upon completion – – 66,938 66,938
Write-offs – – (5,765) (5,765)
Exchange differences – 393 3,294 3,687

At 31 July 2020 97,091 67,487 677,376 841,954

Accumulated depreciation

At 1 August 2019 – 1,502 89,495 90,997

Recognised in profit or loss – 391 26,108 26,499
Transfer from investment properties – – 992 992
Write-offs – – (3,377) (3,377)
Exchange differences – 45 649 694

At 31 July 2020 – 1,938 113,867 115,805

Accumulated impairment loss

At 1 August 2019 – – – –
Recognised in profit or loss – – 63,704 63,704

At 31 July 2020 – – 63,704 63,704

Net carrying amount

At 31 July 2020 97,091 65,549 499,805 662,445

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

* Land and buildings (cont’d.)

Long term
Freehold leasehold
land land Buildings Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cost
At 1 August 2018 95,853 22,816 406,847 525,516
Additions – – 4,960 4,960
Reclassification upon completion – – 138,739 138,739
Exchange differences – 214 1,906 2,120

At 31 July 2019 95,853 23,030 552,452 671,335

Accumulated depreciation and impairment loss

At 1 August 2018 – 1,300 70,897 72,197
Recognised in profit or loss – 197 18,630 18,827
Exchange differences – 5 (32) (27)

At 31 July 2019 – 1,502 89,495 90,997

Net carrying amount

At 31 July 2019 95,853 21,528 462,957 580,338

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

** Other property, plant and equipment

Office
equipment,
Motor furniture Plant and
vehicles and fittings machinery Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 46,033 125,524 604,267 775,824
Additions 2,591 16,661 44,765 64,017
Transfer from investment properties – 13 511 524
Reclassification upon completion – 5,176 32,786 37,962
Disposals (977) (490) (2,850) (4,317)
Write-offs – (3,975) (893) (4,868)
Exchange differences 57 454 22 533

At 31 July 2020 47,704 143,363 678,608 869,675

Accumulated depreciation
At 1 August 2019 25,265 79,731 172,182 277,178
Recognised in profit or loss 3,311 19,576 25,325 48,212
Capitalised in contract assets from construction 1,816 717 107,077 109,610
Disposals (879) (345) (2,751) (3,975)
Write-offs – (3,612) (891) (4,503)
Exchange differences 10 301 (150) 161

At 31 July 2020 29,523 96,368 300,792 426,683

Accumulated impairment loss

At 1 August 2019 – – – –
Recognised in profit or loss – – 84,396 84,396

At 31 July 2020 – – 84,396 84,396

Net carrying amount

At 31 July 2020 18,181 46,995 293,420 358,596

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

** Other property, plant and equipment (cont’d.)

Office
equipment,
Motor furniture Plant and
vehicles and fittings machinery Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cost
At 1 August 2018 44,406 97,531 352,188 494,125
Additions 2,858 17,857 107,661 128,376
Reclassification upon completion – 15,048 148,248 163,296
Disposals (1,246) (4,343) (2,873) (8,462)
Write-offs – (723) (996) (1,719)
Exchange differences 15 154 39 208

At 31 July 2019 46,033 125,524 604,267 775,824

Accumulated depreciation and impairment loss

At 1 August 2018 21,606 66,945 107,887 196,438
Recognised in profit or loss 3,048 16,964 17,755 37,767
Capitalised in contract assets from construction 1,699 831 50,095 52,625
Disposals (1,141) (4,331) (2,707) (8,179)
Write-offs – (698) (990) (1,688)
Exchange differences 53 20 142 215

At 31 July 2019 25,265 79,731 172,182 277,178

Net carrying amount

At 31 July 2019 20,768 45,793 432,085 498,646

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

Other
property,
Land and plant and Construction
buildings* equipment** in-progress Total
Company RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 165,015 213,741 17,187 395,943
Additions – 26,358 – 26,358
Reclassification upon completion – 17,187 (17,187) –
Disposals – (2,155) – (2,155)
Write-offs – (2,050) – (2,050)
Exchange differences – 177 – 177

At 31 July 2020 165,015 253,258 – 418,273

Accumulated depreciation and impairment loss

At 1 August 2019 26,883 87,569 – 114,452
Recognised in profit or loss (Note 7) 3,242 3,563 – 6,805
Capitalised in contract assets from construction
(Note 22(a)) – 103,428 – 103,428
Disposals – (2,064) – (2,064)
Write-offs – (2,048) – (2,048)
Exchange differences – 64 – 64

At 31 July 2020 30,125 190,512 – 220,637

Net carrying amount

At 31 July 2020 134,890 62,746 – 197,636

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT'D.)

Other
property,
Land and plant and Construction
buildings* equipment** in-progress Total
Company RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cost
At 1 August 2018 165,015 84,530 121,888 371,433
Additions – 5,474 26,526 32,000
Reclassification upon completion – 131,227 (131,227) –
Disposals – (6,380) – (6,380)
Write-offs – (1,180) – (1,180)
Exchange differences – 70 – 70

At 31 July 2019 165,015 213,741 17,187 395,943

Accumulated depreciation and impairment loss

At 1 August 2018 23,641 45,376 – 69,017
Recognised in profit or loss (Note 7) 3,242 3,815 – 7,057
Capitalised in contract assets from construction
(Note 22(a)) – 45,763 – 45,763
Disposals – (6,275) – (6,275)
Write-offs – (1,173) – (1,173)
Exchange differences – 63 – 63

At 31 July 2019 26,883 87,569 – 114,452

Net carrying amount

At 31 July 2019 138,132 126,172 17,187 281,491

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

* Land and buildings

Long term
Freehold leasehold
land land Buildings Total
Company RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019/31 July 2020 659 5,611 158,745 165,015

Accumulated depreciation and impairment loss

At 1 August 2019 – 953 25,930 26,883
Charge for the year – 68 3,174 3,242

At 31 July 2020 – 1,021 29,104 30,125

Net carrying amount

At 31 July 2020 659 4,590 129,641 134,890

At 31 July 2019
Cost
At 1 August 2018/31 July 2019 659 5,611 158,745 165,015

Accumulated depreciation and impairment loss

At 1 August 2018 – 885 22,756 23,641
Charge for the year – 68 3,174 3,242

At 31 July 2019 – 953 25,930 26,883

Net carrying amount

At 31 July 2019 659 4,658 132,815 138,132

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

** Other property, plant and equipment

Office
equipment,
Motor furniture Plant and
vehicles and fittings machinery Total
Company RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 1,152 37,824 174,765 213,741
Additions 79 2,668 23,611 26,358
Reclassification upon completion – – 17,187 17,187
Disposals (305) (50) (1,800) (2,155)
Write-offs – (1,210) (840) (2,050)
Exchange differences 11 148 18 177

At 31 July 2020 937 39,380 212,941 253,258

Accumulated depreciation
At 1 August 2019 907 30,936 55,726 87,569
Recognised in profit or loss 13 3,550 – 3,563
Capitalised in contract assets from construction 36 192 103,200 103,428
Disposals (258) (6) (1,800) (2,064)
Write-offs – (1,210) (838) (2,048)
Exchange differences 23 41 – 64

At 31 July 2020 721 33,503 156,288 190,512

Net carrying amount

At 31 July 2020 216 5,877 56,653 62,746

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

12. PROPERTY, PLANT AND EQUIPMENT (CONT’D.)

** Other property, plant and equipment (cont’d.)

Office
equipment,
Motor furniture Plant and
vehicles and fittings machinery Total
Company RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cost
At 1 August 2018 1,720 40,520 42,290 84,530
Additions 182 1,298 3,994 5,474
Reclassification upon completion – – 131,227 131,227
Disposals (759) (3,834) (1,787) (6,380)
Write-offs – (189) (991) (1,180)
Exchange differences 9 29 32 70

At 31 July 2019 1,152 37,824 174,765 213,741

Accumulated depreciation
At 1 August 2018 1,558 30,934 12,884 45,376
Recognised in profit or loss 9 3,806 – 3,815
Capitalised in contract assets from construction 15 190 45,558 45,763
Disposals (684) (3,834) (1,757) (6,275)
Write-offs – (186) (987) (1,173)
Exchange differences 9 26 28 63

At 31 July 2019 907 30,936 55,726 87,569

Net carrying amount

At 31 July 2019 245 6,888 119,039 126,172

Included in property, plant and equipment incurred during the year are:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Finance costs (Note 8) 483 – – –

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

13. INVENTORIES

Group

2020 2019
RM’000 RM’000
Note (Restated)

Non-current
Land held for property development (a) 3,169,895 2,919,183

Current
Property development cost (b) 1,847,214 1,885,356
Other inventories (c) 917,734 765,197

2,764,948 2,650,553

Total inventories 5,934,843 5,569,736

(a) Land held for property development

Freehold Leasehold Development

land land costs Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 48,370 2,011,842 858,971 2,919,183
Cost incurred during the year – – 406,823 406,823
Transfer to property development costs
(Note 13(b)) (7,330) (135,479) (21,922) (164,731)
Exchange differences – 8,620 – 8,620

At 31 July 2020 41,040 1,884,983 1,243,872 3,169,895

At 31 July 2019
Cost
At 1 August 2018 48,370 2,111,354 495,413 2,655,137
Cost incurred during the year – 12,370 388,613 400,983
Transfer to property development costs
(Note 13(b)) – (113,854) (25,055) (138,909)
Transfer to investment properties (Note 14) – (4,595) – (4,595)
Exchange differences – 6,567 – 6,567

At 31 July 2019 48,370 2,011,842 858,971 2,919,183

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

13. INVENTORIES (CONT’D.)

(b) Property development costs

Freehold Leasehold Development

land land costs Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cumulative property development costs
At 1 August 2019 (as previously stated) 96,848 2,374,641 4,326,295 6,797,784
Effect of adoption of MFRS 123 (Note 2.2(c)) – – (15,216) (15,216)

At 1 August 2019 (as restated) 96,848 2,374,641 4,311,079 6,782,568

Costs incurred during the year – 54 921,911 921,965
Transfer from land held for property
development (Note 13(a)) 7,330 135,479 21,922 164,731
Transfer to investment property (Note 14) – – (83,905) (83,905)
Reversal of completed projects (40,934) (170,534) (814,023) (1,025,491)
Transfer to completed inventories (39,830) (52,913) (300,434) (393,177)
Exchange differences – 34,492 89,845 124,337

At 31 July 2020 23,414 2,321,219 4,146,395 6,491,028

Cumulative costs recognised in profit or loss

At 1 August 2019 (as previously stated) 39,003 1,244,930 3,626,855 4,910,788
Effect of adoption of MFRS 123 (Note 2.2(c)) – – (13,576) (13,576)

At 1 August 2019 (as restated) 39,003 1,244,930 3,613,279 4,897,212

Recognised during the year 3,125 167,074 496,880 667,079
Reversal of completed projects (40,934) (170,534) (814,023) (1,025,491)
Exchange differences – 21,937 83,077 105,014

At 31 July 2020 1,194 1,263,407 3,379,213 4,643,814

Property development costs at 31 July 2020 22,220 1,057,812 767,182 1,847,214

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

13. INVENTORIES (CONT'D.)

(b) Property development costs (cont'd.)

Freehold Leasehold Development

land land costs Total
Group RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cumulative property development costs
At 1 August 2018 (as previously stated) 150,059 2,289,394 3,448,759 5,888,212
Effect of adoption of MFRS 123 (Note 2.2(c)) – – 1,914 1,914

At 1 August 2018 (as restated) 150,059 2,289,394 3,450,673 5,890,126

Costs incurred during the year – 27,448 1,470,614 1,498,062
Transfer from land held for property
development (Note 13(a)) – 113,854 25,055 138,909
Transfer to investment property (Note 14) (770) (4,909) (15,537) (21,216)
Reversal of completed projects (25,378) (4,416) (380,861) (410,655)
Transfer to completed inventories (27,063) (65,301) (280,170) (372,534)
Exchange differences – 18,571 41,305 59,876

At 31 July 2019 (as restated) 96,848 2,374,641 4,311,079 6,782,568

Cumulative costs recognised in profit or loss

At 1 August 2018 (as previously stated) 50,401 922,851 2,831,945 3,805,197
Effect of adoption of MFRS 123 (Note 2.2(c)) – – 1,677 1,677

At 1 August 2018 (as restated) 50,401 922,851 2,833,622 3,806,874

Recognised during the year 13,980 318,372 1,122,423 1,454,775
Reversal of completed projects (25,378) (4,416) (380,861) (410,655)
Exchange differences – 8,123 38,095 46,218

At 31 July 2019 (as restated) 39,003 1,244,930 3,613,279 4,897,212

Property development costs at 31 July 2019 57,845 1,129,711 697,800 1,885,356

Included in land held for development and property development costs incurred during the year are:

Group

2020 2019
RM’000 RM’000
(Restated)

Staff costs (Note 5) 37,763 39,255

Finance costs (Note 8) 138,505 185,450

Freehold land of the Group with a carrying value of RM63,560,000 (2019: RM64,520,000) has been pledged as securities for
loan facility as set out in Note 34(c)(i).

The leasehold lands under development of the Group with a carrying value of RM302,633,000 (2019: RM303,714,000) has
been pledged as securities for term loans as disclosed in Note 34(a)(i) and Note 34(a)(ii).

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

13. INVENTORIES (CONT’D.)

(c) Other inventories

Group

2020 2019
RM’000 RM’000
(Restated)

Completed properties - properties held for sale 853,423 696,669

Prefabricated concrete panels 40,324 40,445
Crusher run and aggregates 11,054 9,656
Consumables, spares and materials 12,933 18,427

917,734 765,197

During the financial year, the amount of inventories recognised as an expense by the Group was RM539,157,000 (2019:
RM308,403,000).

Company

2020 2019
RM’000 RM’000

Consumables and spares 1,148 1,952

During the financial year, the amount of inventories recognised as an expense by the Company was RM5,532,000 (2019:
RM10,484,000).

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

14. INVESTMENT PROPERTIES

Freehold Leasehold Construction

land land Buildings in-progress Total
Group RM’000 RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 21,393 76,380 208,835 152,297 458,905
Additions – 2,314 3,501 4,067 9,882
Transfer from property development costs
(Note 13(b)) – – – 83,905 83,905
Transfer to property, plant and equipment
(Note 12) (1,238) (24,213) (36,190) (3,395) (65,036)
Disposals – – (2,582) – (2,582)
Reclassification upon completion 129 4,004 54,613 (58,746) –
Exchange differences – 721 1,998 170 2,889

At 31 July 2020 20,284 59,206 230,175 178,298 487,963

Accumulated depreciation
At 1 August 2019 – 3,362 22,728 – 26,090
Recognised in profit or loss (Note 7) – 1,145 5,825 – 6,970
Transfer to property, plant and equipment
(Note 12) – – (992) – (992)
Exchange differences – 103 291 – 394

At 31 July 2020 – 4,610 27,852 – 32,462

Net carrying amount

At 31 July 2020 20,284 54,596 202,323 178,298 455,501

Fair value
At 31 July 2020 39,212 81,974 345,505 178,298 644,989

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

14. INVESTMENT PROPERTIES (CONT’D.)

Freehold Leasehold Construction

land land Buildings in-progress Total
Group RM’000 RM’000 RM’000 RM’000 RM’000

At 31 July 2019
Cost
At 1 August 2018 25,261 63,627 222,480 73,242 384,610
Additions – 2,870 397 85,255 88,522
Transfer from land held for property
development (Note 13(a)) – 4,595 – – 4,595
Transfer from property development costs
(Note 13(b)) 770 4,909 – 15,537 21,216
Disposals (4,638) – (36,870) – (41,508)
Reclassification upon completion – – 21,856 (21,856) –
Exchange differences – 379 972 119 1,470

At 31 July 2019 21,393 76,380 208,835 152,297 458,905

Accumulated depreciation
At 1 August 2018 – 1,931 18,793 – 20,724
Recognised in profit or loss (Note 7) – 1,066 6,061 – 7,127
Disposals – – (1,941) – (1,941)
Exchange differences – 365 (185) – 180

At 31 July 2019 – 3,362 22,728 – 26,090

Net carrying amount

At 31 July 2019 21,393 73,018 186,107 152,297 432,815

Fair value
At 31 July 2019 40,627 79,352 299,780 152,297 572,056

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

14. INVESTMENT PROPERTIES (CONT’D.)

Freehold
land Buildings Total
Company RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019/31 July 2020 5,697 7,583 13,280

Accumulated depreciation
At 1 August 2019 – 3,315 3,315
Recognised in profit or loss (Note 7) – 153 153

At 31 July 2020 – 3,468 3,468

Net carrying amount

At 31 July 2020 5,697 4,115 9,812

Fair value
At 31 July 2020 43,563 16,237 59,800

At 31 July 2019
Cost
At 1 August 2018/31 July 2019 5,697 7,583 13,280

Accumulated depreciation
At 1 August 2018 – 3,160 3,160
Recognised in profit or loss (Note 7) – 155 155

At 31 July 2019 – 3,315 3,315

Net carrying amount

At 31 July 2019 5,697 4,268 9,965

Fair value
At 31 July 2019 37,243 16,901 54,144

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

14. INVESTMENT PROPERTIES (CONT'D.)

The following are recognised in profit or loss in respect of investment properties:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Rental income 10,785 17,728 880 1,164

Direct operating expenses (9,109) (7,189) (111) (147)

Included in investment properties incurred during the year are:

Group

2020 2019
RM’000 RM’000

Staff costs (Note 5) 556 2,785

Finance costs (Note 8) 22 1,417

Fair value of investment properties was estimated by the directors based on internal appraisal of market values of comparable
properties or based on valuation performed by an independent professional valuer.

Other details of fair value of investment properties are further disclosed in Note 43.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

15. (a) LAND USE RIGHTS

Group

2020 2019
RM’000 RM’000

At 1 August 2019/2018 1,470 1,895

Effect on the adoption of MFRS 16 (Note 2.2(a))
– Transfer to Right-of-use assets (Note 15(b)) (1,470) –
Amortisation for the year (Note 7) – (425)

At 31 July – 1,470

(b) RIGHT-OF-USE ASSETS

The Group and the Company have lease contracts for office spaces and office equipments with contract terms ranging
from 2 to 5 years and do not contain variable lease payments.

The carrying amounts of right-of-use assets recognised and the movements during the year is as follows:

Group Company
2020 2020
RM’000 RM’000
Cost
At 1 August 2019 – –
Effect on the adoption of MFRS 16 (Note 2.2(a)) 15,450 2,521
– Transfer from land use rights (Note 15(a)) 1,470 –
Additions 3,821 536
Exchange differences 46 18
At 31 July 2020 20,787 3,075

Accumulated depreciation
At 1 August 2019 – –
Recognised in profit or loss (Note 7) 4,286 134
Capitalised in contract assets from construction (Note 22(a)) 1,353 1,353
Exchange differences 10 4
At 31 July 2020 5,649 1,491

Net carrying amount

At 31 July 2020 15,138 1,584

The right-of-use assets consist of the following:

Group Company
2020 2020
RM’000 RM’000
Land 9,503 –
Building and office space 3,697 1,160
Motor vehicles 1,255 –
Office equipment 683 424
15,138 1,584

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

16. CONCESSION DEVELOPMENT EXPENDITURE

Expressway Water Total

Group RM’000 RM’000 RM’000

At 31 July 2020
Cost
At 1 August 2019 1,851,533 – 1,851,533
Additions 6,829 179,331 186,160

At 31 July 2020 1,858,362 179,331 2,037,693

Accumulated amortisation
At 1 August 2019 545,061 – 545,061
Amortisation for the year (Note 7) 117,434 19,726 137,160

At 31 July 2020 662,495 19,726 682,221

Net carrying amount

At 31 July 2020 1,195,867 159,605 1,355,472

At 31 July 2019
Cost
At 1 August 2018 1,838,282 – 1,838,282
Additions 13,251 – 13,251

At 31 July 2019 1,851,533 – 1,851,533

Accumulated amortisation
At 1 August 2018 417,079 – 417,079
Amortisation for the year (Note 7) 127,982 – 127,982

At 31 July 2019 545,061 – 545,061

Net carrying amount

At 31 July 2019 1,306,472 – 1,306,472

The expressway development expenditure is pledged as securities for borrowings as disclosed in Note 33(b).

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES

Company

2020 2019
RM’000 RM’000

Redeemable unsecured loan stocks 400,000 400,000

Unquoted shares, at cost 4,817,091 4,196,696
Long-term advances 407,500 –
Less: Accumulated impairment losses (355,215) (70,215)

5,269,376 4,526,481

(a) Current financial year

(i) Capital injection in subsidiaries
The Company has subscribed to new ordinary shares in the following subsidiaries during the financial year:

2020 2019
RM’000 RM’000

Bandar Serai Development Sdn. Bhd. 300,000 55,000

Gamuda Land (Kemuning) Sdn. Bhd. 255,000 45,000
Dinamik Atlantik Sdn. Bhd. 22,000 60,000
Gamuda Land (Botanic) Sdn. Bhd. 20,000 100,000
Gamuda Land Sdn. Bhd. 19,248 –
Intensif Inovatif Sdn. Bhd. 2,000 –
Gamuda Industrial Building System Sdn. Bhd. – 28,165
High Park Development Sdn. Bhd. – 80,000
Jade Homes Sdn. Bhd. – 320,000

618,248 688,165

(ii) Incorporation of a new subsidiary in Luxembourg

The Company has injected a total cash consideration of RM6,347,000 (GBP1,166,000) in Gamuda Luxembourg S.a.r.l.,
a wholly-owned subsidiary of the Company during the year to acquire a residential building in Central London,
United Kingdom.

(iii) Redemption of shares

During the financial year, Valencia Development Sdn. Bhd., a wholly-owned subsidiary of the Company has redeemed
5,100,000 ordinary shares of RM1.00 per share, amounting to RM5,100,000.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(a) Current financial year (cont’d.)
(iv) Additional investment in a subsidiary company
The Company has acquired additional 900,000 of ordinary shares of RM1.00 per share which represents 5% interest
from non controlling interest for a cash consideration of RM900,000 in Gamuda Paper Industries Sdn. Bhd. which
is in the business of renting of properties.

(v) Long term advances

The advances to a subsidiary are capital in nature.

(vi) Impairment of investment in a subsidiary

During the financial year, the Company has recognised impairment in respect of its investment in a subsidiary,
GIBS of RM285,000,000, due to impairment provided on GIBS’s PPE of RM148,100,000 (as disclosed in Note 12)
and losses incurred by GIBS of RM136,900,000.

(b) Previous financial year

Redemption of redeemable unsecured loan stocks
Megah Capital Sdn. Bhd., a wholly-owned subsidiary of the Company had redeemed the redeemable unsecured loan
stocks, amounting to RM800,000,000.

(c) Interests in subsidiaries

The Company’s interests in the subsidiaries are analysed as follows:

Proportion of
ownership

2020 2019
Name of company % % Principal/Economic activities

Subsidiaries incorporated in Malaysia

Gammau Construction Sdn. Bhd. 100 100 Property investment

Ganaz Bina Sdn. Bhd. 100 100 Dormant

Gamuda Land Sdn. Bhd. 100 100 Property investment and holding company

Gamuda Land Leisure Sdn. Bhd. 100 100 Theme park operator

Gamuda Land Property Services Sdn. Bhd.* 100 100 Provision of property maintenance and
management services

Usaha Era Fokus Sdn. Bhd.* 100 – Investment holding

Gamuda Paper Industries Sdn. Bhd. 100 95 Rental of properties

GPI Trading Sdn. Bhd. 100 95 Dormant

Gamuda Water Sdn. Bhd. (“Gamuda Water”) 80 80 Management, operation and maintenance of
dams and water treatment facilities and the
treatment, production and supply of water

Gamuda Industrial Building System Sdn. Bhd. 100 100 Manufacturing and installation of prefabricated
(“GIBS”) concrete panels for construction of buildings

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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(c) Interests in subsidiaries (cont’d.)
The Company’s interests in the subsidiaries are analysed as follows: (cont’d.)

Proportion of
ownership

2020 2019
Name of company % % Principal/Economic activities

Subsidiaries incorporated in Malaysia (cont’d.)

Jade Homes Sdn. Bhd. 100 100 Property development of Jade Hills

Gamuda Parks Sdn. Bhd. 100 100 Supplying and planting of landscaping materials
and provision of landscaping services for
property development

Jade Homes Resort Berhad 100 100 Proprietor and operator of a clubhouse

Jade Homes Property Services Sdn. Bhd.* 100 100 Property maintenance services

Gamuda Land (Botanic) Sdn. Bhd. 100 100 Property development of Bandar Botanic and
Kundang Estates

Bandar Botanic Resort Berhad 100 100 Proprietor and operator of a clubhouse

Botanic Property Services Sdn. Bhd.* 100 100 Property maintenance services

Masterpave Sdn. Bhd. 100 100 Road surfacing works, manufacture and supply
of concrete, beams and surfacing materials

Megah Capital Sdn. Bhd. (“Megah Capital”) 100 100 Investment holding and trading

Megah Management Services Sdn. Bhd. 100 100 Insurance agent

Megah Sewa Sdn. Bhd. 100 100 Hiring, distribution and repairing plant,
machinery and equipment

Valencia Development Sdn. Bhd.* 100 100 Property development of Valencia

Valencia Township Sdn. Bhd.* 100 100 Management of a gated residential townships
including a clubhouse, golf course and other
common properties, services and facilities
contained therein

Madge Mansions Sdn. Bhd. 100 100 Property development of Madge Mansions

Highpark Development Sdn. Bhd. 100 100 Property development of HighPark Suites

Idaman Robertson Sdn. Bhd. 100 100 Property development of The Robertson

Gamuda Land (Kemuning) Sdn. Bhd. 100 100 Property development of twentyfive.7
(“GL Kemuning”)

Gamuda Land (HCMC) Sdn. Bhd. 100 100 Property investment

Bandar Serai Development Sdn. Bhd. 100 100 Property development of Gamuda Gardens
(“Bandar Serai”)

Dinamik Atlantik Sdn. Bhd. 100 100 Property development of Bukit Bantayan
Residences

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(c) Interests in subsidiaries (cont’d.)
The Company’s interests in the subsidiaries are analysed as follows: (cont’d.)

Proportion of
ownership

2020 2019
Name of company % % Principal/Economic activities

Subsidiaries incorporated in Malaysia (cont’d.)

Lifestyle Heritage Sdn. Bhd.* 100 100 Dormant

Gamuda Land (T12) Sdn. Bhd. 100 100 Property development of Gamuda Cove

Discovery Wetlands Sdn. Bhd. 100 – Operate and maintain the Wetlands reserve

Kesas Holdings Berhad (“KESAS Holdings”) 70 70 Investment holding; holding company to the
concession holder of an expressway

Kesas Sdn. Bhd. 70 70 Design, construction and maintenance of Shah

Alam Expressway, and development and
management of toll operations

G.B. Kuari Sdn. Bhd. 100 100 Quarrying, manufacturing of premix and laying
of road operations

Gamuda Trading Sdn. Bhd. 100 100 Trading of construction materials

Gamuda Naim Engineering and Construction 65 65 Undertake civil engineering and building
(GNEC) Sdn. Bhd. construction of Pan Borneo Highway project
and Batang Lupar Bridge project in Sarawak

SRS Consortium Sdn. Bhd. 60 60 Undertake the role of project delivery partner
for the implementation of an alternative
transport master plan compromising
different public transport components in
Penang and the provision of new reclamation
sites

Intensif Inovatif Sdn. Bhd.* 100 100 Dormant

Gamuda Engineering Sdn. Bhd. 100 100 Civil engineering and building construction

Gamuda Geo Sdn. Bhd.* 100 100 Sub-structure and geotechnical works

Gamuda M&E Sdn. Bhd.* 100 100 Provision and maintenance of mechanical and
electrical services

Gamuda Building Ventures Sdn. Bhd.* 100 100 Building construction

Gamuda Tunnel Engineering Sdn. Bhd.* 100 100 Undertake tunnelling works

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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(c) Interests in subsidiaries (cont’d.)
The Company’s interests in the subsidiaries are analysed as follows: (cont’d.)

Proportion of
ownership

2020 2019
Name of company % % Principal/Economic activities

Subsidiaries unincorporated in Malaysia

Held by Gamuda Engineering Sdn. Bhd.:

Held by Gamuda M&E Sdn. Bhd.:

GME-CI (GIBS2) Joint Venture* 55 55 Undertake the Mechanical and Electrical works
of new Gamuda Industrial Building System
(“GIBS”)

GME-CI (Serai) Joint Venture* 55 55 Undertake the Mechanical and Electrical works
of Gamuda Gardens

GME-CI (HKLCP) Joint Venture* 55 55 Undertake construction works for the ”Hospital
Kuala Lumpur Car Park” project

GME-CI (T12TP) Joint Venture* 55 55 Undertake construction works for the project
“Gamuda Cove Toll Plaza”

GME-CI (TTWS) Joint Venture* 60 – Undertake the Mechanical and Electrical works
of Mass Rapid Transit 2 (“MRT 2”) project
(Titiwangsa Station)

GME-CI (KBNS) Joint Venture* 60 – Undertake the Mechanical and Electrical works
of MRT 2 project (Escape Shaft 2)

GME-CI (UGW) Joint Venture* 60 – Undertake the Mechanical and Electrical works
of MRT 2 project (Escape Shaft 3)

Subsidiary incorporated in British Virgin Islands

Gamuda Overseas Investment Ltd.* 100 100 Investment holding

Subsidiary incorporated in Mauritius

Gamuda (Offshore) Private Limited* 100 100 Investment holding

Subsidiary incorporated in India

Held by Gamuda (Offshore) Private Limited:

Gamuda - WCT (India) Private Limited*# 70 70 Civil engineering

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(c) Interests in subsidiaries (cont’d.)
The Company’s interests in the subsidiaries are analysed as follows: (cont’d.)

Proportion of
ownership

2020 2019
Name of company % % Principal/Economic activities

Subsidiaries incorporated in the Socialist

Republic of Vietnam

Gamuda Land Vietnam Limited Liability Company 100 100 Undertakes the Yen So Park, sewage
(“GLVN”)#^ treatment plant and Gamuda City
Development in Hanoi, Socialist Republic of
Vietnam

Held by Gamuda Land (HCMC) Sdn. Bhd.:

Gamuda Land (HCMC) Joint Stock Company 100 100 Undertakes development of Celadon City in Ho
(“HCMCJSC”)#^ Chi Minh City, Socialist Republic of Vietnam

Subsidiary incorporated in Singapore

Gamuda (Singapore) Pte. Ltd. (“GB Singapore”)^ 100 100 Investment holding

Subsidiary incorporated in Australia

Gamuda (Australia) Pty Ltd (“GB Australia”)^ 100 100 Property development of 661 Chapel St.,
Melbourne

Gamuda Engineering (Australia) Pty Ltd* 100 100 Civil engineering and construction

Subsidiary incorporated in Luxembourg

Gamuda (Luxembourg) S.a.r.l.* 100 – Investment holding

Gamuda Yoo Development Aldgate S.a.r.l.* 90 – Property investment

Subsidiary unincorporated in Taiwan

Dong-Pi Gamuda Joint Venture (“Dong-Pi”)^ 70 70 Undertakes civil engineering and construction
works for Marine Bridge Project in Taiwan

* Audited by firms of auditors other than Ernst & Young, Malaysia

#
Financial year end which does not coincide with that of its holding company
^ Audited by member firms of Ernst & Young Global in the respective countries

For the purpose of consolidating the subsidiaries with different financial year ends, the audited financial statements
of the subsidiaries for the financial period from 1 August 2019 to 31 July 2020 have been used for consolidation for
the Group’s financial statements.

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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

17. INVESTMENTS IN SUBSIDIARIES (CONT’D.)

(d) Non-controlling interests (“NCI”) in subsidiaries
The summarised financial information of the subsidiaries that have non-controlling interests which are material to the
Company before intra-group elimination are as follows:

Other subsidiaries –
Gamuda Water Kesas Holdings Dong-Pi individually immaterial Total
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
NCI percentage of ownership
interest and voting interest
(%) 20 20 30 30 30 –
Dividend paid to NCI – – (22,200) (36,600) – – (1,395) – (23,595) (36,600)
Carrying amount of NCI 140,973 128,330 248,441 237,169 5,100 – 31,988 33,818 426,502 399,317
Total comprehensive income
allocated to NCI 12,644 13,691 33,472 29,245 5,100 – 464 9,300 51,680 52,236

Summarised statements of
financial position
Non-current assets 776,725 695,266 1,203,588 1,314,746 – – 19,932 29,704 2,000,245 2,039,716
Current assets 196,573 97,581 341,851 313,253 328,455 – 286,562 275,160 1,153,441 685,994
Non-current liabilities (80,760) (1,536) (601,327) (720,939) – – (22,187) (2,913) (704,274) (725,388)
Current liabilities (187,670) (149,663) (115,974) (116,496) (311,455) – (192,593) (197,584) (807,692) (463,743)
Net assets 704,868 641,648 828,138 790,564 17,000 – 91,714 104,367 1,641,720 1,536,579

Summarised statements of
comprehensive income
Revenue 165,557 170,297 314,835 308,982 157,383 – 231,525 287,426 869,300 766,705
Profit for the year 63,374 68,423 111,771 97,585 16,456 – 3,114 26,621 194,715 192,629
Total comprehensive income/
(loss) 63,220 68,455 111,573 97,483 17,000 – (197) 28,396 191,596 194,334

Summarised statements of
cash flows
Cash flows generated from/
(used in)/operating activities 178,128 (60,490) 167,454 193,641 4,984 – (8,750) 30,589 341,816 163,740
Cash flows (used in)/generated
from investing activities (179,860) 5,522 18,660 194,272 – – (1,418) (11,496) (162,618) 188,298
Cash flows generated from/
(used in) financing activities 13,062 54,500 (164,000) (212,000) – – 11,000 (16,000) (139,938) (173,500)
Net increase/(decrease) in cash
and cash equivalents 11,330 (468) 22,114 175,913 4,984 – 832 3,093 39,260 178,538

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 ANNUAL REPORT 2020

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

18. INTERESTS IN ASSOCIATED COMPANIES

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Unquoted shares, in Malaysia:

At cost:
– Ordinary shares 3,304 3,304 3,304 3,304
– Redeemable preference shares 190,290 190,290 190,290 190,290

193,594 193,594 193,594 193,594

Group's share of post-acquisition reserve,
net of dividends receivable 211,089 147,657 – –

404,683 341,251 193,594 193,594

Unquoted shares, outside Malaysia:

At cost:
– Ordinary shares 11 11 – –
– Redeemable preference shares 25,967 36,991 – –

25,978 37,002 – –
Group's share of post-acquisition reserve,
net of dividends receivable 28,179 51,228 – –

54,157 88,230 – –

Total unquoted shares 458,840 429,481 193,594 193,594

Quoted shares, in Malaysia:

At cost:
– Ordinary shares 59,624 59,624 59,624 59,624
Group’s share of post-acquisition capital reserves 153,521 148,700 – –
Group's share of post-acquisition reserve,
net of dividends receivable 280,802 332,984 – –

493,947 541,308 59,624 59,624

Total 952,787 970,789 253,218 253,218

Market value:
Quoted shares, in Malaysia 920,229 1,058,264 920,229 1,058,264

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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

18. INTERESTS IN ASSOCIATED COMPANIES (CONT’D.)

(a) Current financial year
Redemption of redeemable preferences shares (“RPS”) held by the Company in an associated company
During the financial year, Suria Holding (O) Pvt. Ltd. has redeemed RPS held by Gamuda (Offshore) Private Limited for
cash consideration of RM11,024,000.

(b) Interest in associated companies

The Group’s and the Company’s interests in the associated companies are analysed as follows:

Proportion of
ownership

2020 2019
Name of company % % Principal/Economic activities

Associated companies

Incorporated in Malaysia

Syarikat Pengeluar Air Selangor Holdings Berhad 40 40 Investment holding and provision of management
(“SPLASH Holdings”) services

Sistem Penyuraian Trafik KL Barat Holdings 52 52 Investment holding; holding company to the
Sdn. Bhd. (“SPRINT Holdings”) concession holder of an expressway – SPRINT
Highway

Lingkaran Trans Kota Holdings Berhad 44 44 Investment holding and provision of management
(“LITRAK Holdings”) services; holding company to the concession
(Quoted shares in Malaysia) holder of an expressway – Damansara –
Puchong Highway (“LDP”)

Naim Gamuda (NAGA) JV Sdn. Bhd. (“NAGA”) 30 30 Civil engineering and construction

Unincorporated in Malaysia

Held by Gamuda Engineering Sdn. Bhd.:

Lim Hoo Seng – Gamuda Engineering 30 30 Civil engineering and construction

Joint Venture *

Incorporated in Mauritius

Held by Gamuda (Offshore) Private Limited:

Suria Holding (O) Pvt. Ltd.*# 50 50 Investment holding; holding company to the
concession holder of Durgapur Expressway,
India

Gamuda – WCT (Offshore) Private 50 50 Investment holding; holding company to the

Limited*# concession holder of Panagarh – Palsit, India

* Audited by firms other than Ernst & Young, Malaysia

#
Financial year end of 31 July

All associated companies have financial year end of 31 March/31 December, other than those marked with #. For the
purpose of applying the equity method for associated companies with financial year end of 31 March/31 December, the
last audited financial statements available and the management financial statements to 31 July of the associated
companies have been used.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

18. INTERESTS IN ASSOCIATED COMPANIES (CONT’D.)

(c) Summarised financial information of material associated companies
The summarised financial information of the material associated companies which are accounted for using the equity
method as as follows:

Other associates –
LITRAK Holdings SPRINT Holdings SPLASH Holdings individually immaterial Total
2020 2019 2020 2019 2020 2019 2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Summarised statements of
financial position
Non-current assets 1,354,415 1,409,613 1,335,876 1,390,194 577,778 650,000 49,320 46,689 3,317,389 3,496,496
Current assets 617,875 680,711 355,084 386,001 1,772 16,175 187,597 521,313 1,162,328 1,604,200
Non-current liabilities (606,194) (788,978) (1,184,149) (1,374,952) – – – (1,402) (1,790,343) (2,165,332)
Current liabilities (224,715) (266,758) (258,069) (182,934) (1,040) (22) (100,159) (359,148) (583,983) (808,862)

Net assets 1,141,381 1,034,588 248,742 218,309 578,510 666,153 136,758 207,452 2,105,391 2,126,502
Summarised statements of
comprehensive income
Results
Revenue 437,939 518,048 223,652 235,987 – – 271,435 363,484 933,026 1,117,519
Profit/(loss) for the year 220,757 251,140 30,431 18,737 18,705 72,911 8,540 (32,771) 278,433 310,017
Reconciliation of net assets to
carrying amount as at year
end
Group’s share of net assets 493,533 450,770 74,623 65,493 231,404 266,461 62,690 97,528 862,250 880,252
Fair value on acquisition in
excess of net assets 90,537 90,537 – – – – – – 90,537 90,537

Carrying amount in the

statements of financial position 584,070 541,307 74,623 65,493 231,404 266,461 62,690 97,528 952,787 970,789

Group’s net share of profit/(loss)

for the year 95,455 109,422 9,129 5,621 7,482 29,164 4,179 (17,573) 116,245 126,634

Other information
- Group’s share of dividend 57,514 57,514 – – 42,539 714,005 21,330 4,529 121,383 776,048

07 Financial Statements
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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000
(Restated)

Unquoted shares at cost:

– Malaysia 355,603 355,603 289,627 289,627
– Outside Malaysia 7,538 7,538 – –
Advances to joint ventures 200,893 278,292 – –
Group's share of post-acquisition reserves, net of
dividends receivable 591,766 658,351 – –
Less: Accumulated impairment losses (98,452) (98,452) (112,000) (112,000)

1,057,348 1,201,332 177,627 177,627

(a) Current financial year

(i) Advances to a joint venture
Gamuda (Singapore) Pte. Ltd., a wholly-owned subsidiary of the Company advances a cash consideration of
RM13,891,000 (SGD4,565,000) in Anchorvale Pte Ltd., a 50% joint venture of the Group to carry out the development
project on the land parcel at Anchorvale Crescent site earmarked for executive condominium development.

(ii) Repayment of advance by a joint venture

GEM Homes Pte. Ltd., a 50% joint venture of the Group had repaid an amount of RM91,290,000 (SGD30,000,000)
to its holding company, Gamuda (Singapore) Pte. Ltd. upon completion of the project.

(b) Previous financial year

Additional investment in a joint arrangement
(i) Gamuda Land Sdn. Bhd., a wholly-owned subsidiary of the Company subscribed 18,625,000 ordinary shares for a
cash consideration of RM18,625,000 in Gamuda GM Klang Sdn. Bhd., a 50% joint venture to finance the working
capital for its wholesale business.

(ii) Gamuda (Singapore) Pte. Ltd., a wholly-owned subsidiary of the Company subscribed for 2,000,000 new ordinary
shares for a cash consideration of RM6,030,000 (SGD2,000,000) in Anchorvale Pte. Ltd., a 50% joint venture of the
Group to carry out the development project on the land parcel at Anchorvale Crescent site earmarked for executive
condominium development.

Advances to joint venture

Gamuda (Singapore) Pte. Ltd., a wholly-owned subsidiary of the Company advanced a cash consideration of RM162,502,000
(SGD53,803,000) in Anchorvale Pte. Ltd. (“Anchorvale”), a 50% joint venture of the Group to carry out the development
project on the land parcel at Anchorvale Crescent site earmarked for executive condominium development.

Advances to Anchorvale are unsecured and non-interest bearing. The advances would be repayable to joint venture
partners at the discretion of Anchorvale.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS (CONT’D.)

(c) Details of the joint arrangements are as follows:

Proportion of
ownership

2020 2019
Name of joint operations % % Principal/Economic activities

Unincorporated in Malaysia

Malaysia Mining Corporation Berhad 50 50 Undertake engineering, procurement, and construction of the
– Gamuda Berhad Joint Venture Electrified Double – Tracking from Ipoh to Padang Besar
Electrified Double Track Project Project
("MMC - Gamuda JV 2T")

MMC – Gamuda KVMRT (UGW) 50 50 Undertake the tunnelling, undergound works and such other
Joint Venture works in relation to the underground works package for the
Klang Valley Mass Rapid Transit Project Sungai Buloh – Kajang
Line ("KVMRT Line 1") and Klang Valley Mass Rapid Transit
Project Sungai Buloh – Serdang – Putrajaya Line ("KVMRT
Line 2")

Held by Gamuda Engineering Sdn. Bhd.:

Held by Gamuda M&E Sdn. Bhd.:

GME-SE Joint Venture (STW)* 50 – Undertake the construction works of Sentul West Station and
Escape Shaft 1

Held by Gamuda Engineering Sdn. Bhd.:

Lim Hoo Seng – Gamuda Engineering 50 50 Undertake the construction works for the high rise residential
(Stonor 3) Joint Venture* project at Jalan Stonor

Lim Hoo Seng – Gamuda Engineering 50 50 Undertake the construction works for expansion of the
(SCM) Joint Venture* existing Setia City Mall located at Setia Alam, Selangor

Gamuda Engineering – Lim Hoo Seng 50 50 Undertake the construction works for IOI Resort City project
(GEMS) Joint Venture*

Held by Masterpave Sdn. Bhd.:

Wai Fong – Masterpave (SSP UG) 50 50 Undertake the concrete works for KVMRT Line 2
Joint Venture

Unincorporated in Qatar

Sinohydro Corporation – Gamuda 51 51 Design and construct the airfield facilities, tunnel and
Berhad – WCT Engineering Berhad detention ponds of the New Doha International Airport in
Joint Venture (“Sinohydro – the State of Qatar
Gamuda – WCT JV”)^

Gamuda Berhad – WCT Engineering 51 51 Undertake civil engineering construction of a new highway
Berhad Joint Venture from the town of Shahaniya to the existing Zekreet
(“Gamuda – WCT JV”)^ interchange near the Dukhan industrial area in the State
of Qatar

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GAMUDA BERHAD 197601003632 (29579-T)

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS (CONT’D.)

(c) Details of the joint arrangements are as follows: (cont’d.)

Proportion of
ownership

2020 2019
Name of joint operations % % Principal/Economic activities

Unincorporated in Singapore

Greatearth-Gamuda Joint Venture^ 45 – Undertake construction of Gali Batu Multi-Storey Bus

Depot in Singapore

Name of joint ventures

Incorporated in Malaysia

Projek SMART Holdings Sdn. Bhd. 50 50 Undertake, carry out and implement the Stormwater
(“SMART Holdings”) Management and Road Tunnel Project (“SMART”)

MMC - Gamuda Joint Venture Sdn. Bhd. 50 50 Undertake, carry out and implement the Electrified
Double-Tracking from Ipoh to Padang Besar Project

Horizon Hills Development Sdn. Bhd. 50 50 Property development of Horizon Hills

(“Horizon Hills”):

Horizon Hills Resort Berhad 50 50 Undertake the management of a club and golf course

Horizon Hills Property Services Sdn. Bhd. 50 50 Undertake the management and maintenance of the
properties

MMC Gamuda KVMRT (PDP) Sdn. Bhd. 50 50 Undertake the role of a project delivery partner to
(“KVMRT (PDP)”) deliver fully functional operating railway system for
KVMRT Line 1

MMC Gamuda KVMRT (PDP SSP) Sdn. Bhd. 50 50 Undertake the role of a turnkey contractor to deliver fully
(“KVMRT (PDP SSP)”) functional operating railway system for KVMRT Line 2

MMC Gamuda KVMRT (T) Sdn. Bhd. 50 50 Undertake the tunnelling, underground works and such
(“Tunnel SB”) other works in relation to the underground works
package for KVMRT Line 1 and KVMRT Line 2

Hicom-Gamuda Development Sdn. Bhd. 50 50 Property development of Kota Kemuning

Held by Gamuda Land Sdn Bhd.:

Gamuda GM Sdn. Bhd.# 50 50 Operating and building management of Tower 1 of The

Robertson Suites, Bukit Bintang commercial complex

Gamuda GM Klang Sdn. Bhd.# 50 50 Developer and operator of a wholesale hub in GM Klang
Wholesale City located at Bandar Botanic, Klang

MRCB Gamuda Sdn. Bhd.* 50 50 Dormant

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 ANNUAL REPORT 2020

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS (CONT’D.)

(c) Details of the joint arrangements are as follows: (cont’d.)

Proportion of
ownership

2020 2019
Name of joint ventures % % Principal/Economic activities

Incorporated in Singapore

Held by Gamuda (Singapore) Pte. Ltd.:

GEM Homes Pte. Ltd.^# 50 50 Property development of GEM Residence in

Singapore

Anchorvale Pte. Ltd.^# 50 50 Property development of Anchorvale in Singapore

* Audited by firms other than Ernst & Young

^ Audited by member firms of Ernst & Young Global in the respective countries
# Financial year end of 31 July

All joint arrangements have financial year end of 31 March/31 December, other than those marked with #.

For the purpose of applying equity method for the joint ventures with financial year end of 31 December, the last audited
financial statements available and the management financial statements to 31 July of the joint ventures have been used.

Pursuant to MFRS 11: Joint Arrangements, Sinohydro-Gamuda-WCT JV and Gamuda-WCT JV are deemed to be joint operations
of Gamuda Berhad as the parties involved are undertaking economic activities that are subject to joint control.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS (CONT’D.)

(d) Summarised financial information of material joint ventures
The summarised financial information of the material joint ventures which are accounted for using the equity method
are as follows:

Other joint
KVMRT KVMRT (T) ventures –
Horizon GEMS (PDP SSP) (Line 1 & 2) SMART individually
Hills Homes Anchorvale (Line 2) (Underground) Holdings immaterial Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2020
Summarised statements of
financial position
Non-current assets 201,565 – 13,508 1,194,010 622,403 379,247 465,884 2,876,617
Current assets 1,439,817 359,301 1,334,274 1,981,579 900,840 55,774 547,044 6,618,629
Non-current liabilities (64,523) (45,371) (973,069) (1,130,818) (10,609) (304,890) (304,663) (2,833,943)
Current liabilities (760,689) (18,791) (21,408) (2,007,408) (1,316,867) (49,357) (373,022) (4,547,542)

Net assets 816,170 295,139 353,305 37,363 195,767 80,774 335,243 2,113,761

The above amounts of assets and

liabilities include the following:

Cash and cash equivalents 207,128 71,780 36,748 194,269 156,091 45,665 284,661 996,342

Current financial liabilities

(excluding trade and other
payables and provision) (133,262) – – – – (10,000) (28,007) (171,269)

Non-current financial liabilities

(excluding trade and other
payables and provision) (20,833) – (890,021) – – (304,890) (67,117) (1,282,861)

Summarised statements of
comprehensive income
Results
Revenue 175,927 82,560 – 4,806,167 2,843,808 29,819 144,908 8,083,189
Profit/(loss) for the year 55,120 7,840 (17,867) 303,594 72,385 (7,871) (29,773) 383,428

The above profit for the year

includes the following:

Depreciation and amortisation (2,833) – (2,621) (3,867) (9,052) (8,270) (18,282) (44,925)
Interest income 8,804 528 37 12,706 30,890 2,075 2,357 57,397
Income tax expense (19,202) 3,314 3,546 (99,264) (13,181) – (2,654) (127,441)
Finance costs (6,149) (5,318) (348) – – (17,847) (15,482) (45,144)

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS (CONT’D.)

(d) Summarised financial information of material joint ventures (cont’d.)
The summarised financial information of the material joint ventures which are accounted for using the equity method
are as follows: (cont’d.)

Other joint
KVMRT KVMRT (T) ventures –
Horizon GEMS (PDP SSP) (Line 1 & 2) SMART individually
Hills Homes Anchorvale (Line 2) (Underground) Holdings immaterial Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2019 (Restated)
Summarised statements of
financial position
Non-current assets 207,704 – – 429,408 765,611 386,731 396,859 2,186,313
Current assets 1,545,295 861,407 1,160,031 813,493 1,498,033 61,254 686,453 6,625,966
Non-current liabilities (191,602) (68,044) (804,162) (400,424) (8,936) (329,797) (278,974) (2,081,939)
Current liabilities (770,347) (299,094) (20,148) (604,709) (2,131,326) (29,542) (472,512) (4,327,678)

Net assets 791,050 494,269 335,721 237,768 123,382 88,646 331,826 2,402,662

The above amounts of assets and

liabilities include the following:

Cash and cash equivalents 242,583 43,008 558 8,979 73,072 51,533 316,422 736,155

Current financial liabilities

(excluding trade and other
payables and provision) (92,664) (292,757) – – – – (20,980) (406,401)

Non-current financial liabilities

(excluding trade and other
payables and provision) (145,833) – (804,162) – – (319,497) (82,020) (1,351,512)

Summarised statements of
comprehensive income
Results
Revenue 302,337 456,568 – 3,432,273 3,102,557 34,630 327,599 7,655,964
Profit/(loss) for the year 79,642 74,232 (777) 213,214 (56,899) (6,481) 70,136 373,067

The above profit/(loss) for the year

includes the following:

Depreciation and amortisation (2,923) – – (3,236) (11,529) (11,333) (8,244) (37,265)

Interest income 11,716 1,292 122 3,726 – 1,743 6,235 24,834
Income tax expense (25,205) (5,771) – (59,834) (11,092) – (28,355) (130,257)
Finance costs (7,975) (12,158) – – (39,977) (18,042) (9,024) (87,176)

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

19. INTERESTS IN JOINT ARRANGEMENTS (CONT’D.)

(d) Summarised financial information of material joint ventures (cont’d.)
The summarised financial information of the material joint ventures which are accounted for using the equity method
are as follows: (cont’d.)

Other joint
KVMRT KVMRT (T) ventures –
Horizon GEMS (PDP SSP) (Line 1 & 2) SMART individually
Hills Homes Anchorvale (Line 2) (Underground) Holdings immaterial Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2020
Reconciliation of net assets to
carrying amount as at
year end
Group's share of net assets 408,085 147,570 176,652 18,681 97,883 40,387 168,090 1,057,348

Group's share of profit/(loss)

for the year 27,560 3,920 (8,933) 151,797 36,192 (3,936) (14,419) 192,181

Other information – Group's share

of dividend (Note 4) 15,000 – – 252,000 – – – 267,000

Other joint
KVMRT KVMRT (T) ventures –
Horizon GEMS (PDP SSP) (Line 1 & 2) SMART individually
Hills Homes Anchorvale (Line 2) (Underground) Holdings immaterial Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

2019
Reconciliation of net assets to
carrying amount as at
year end
Group's share of net assets 395,525 247,135 167,861 118,884 61,691 44,323 165,913 1,201,332

Group's share of profit/(loss)

for the year 39,821 37,116 (388) 106,607 (28,450) (3,240) 35,068 186,534

Other information – Group’s share

of dividend (Note 4) 50,000 – – 52,500 – – 73,300 175,800

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

20. OTHER INVESTMENTS

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Unquoted shares, in Malaysia 50 50 50 50

Investment in transferable
club memberships 762 762 683 683

812 812 733 733

The fair value of other investments are disclosed in Note 43.

21. RECEIVABLES

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

Current (a)
Trade 1,748,551 1,880,471 758,657 953,467
Less: Allowance for impairment (132,083) (127,436) (130,018) (126,568)

1,616,468 1,753,035 628,639 826,899

Non-trade 607,221 184,995 290,248 68,121

2,223,689 1,938,030 918,887 895,020

Non-current (b)
Trade 858,341 1,049,433 11,413 88,970
Non-trade 32,494 24,861 278 –

890,835 1,074,294 11,691 88,970

Total receivables 3,114,524 3,012,324 930,578 983,990

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

Receivables of the Group and of the Company are analysed as follows:

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

(a) Current

Trade
Third parties 1,021,903 858,113 171,528 37,865
Associated companies (ii) 19,805 20,023 – –
Joint ventures (iii) 411,475 676,811 409,535 673,053
Joint venture partners 26,240 12,859 16,163 3,434
Advances to subcontractors 142,323 171,751 54,842 130,899
Retention sums 117,255 119,150 106,589 108,216
Stakeholder funds 9,550 21,764 – –

1,748,551 1,880,471 758,657 953,467

Less: Allowance for impairment (132,083) (127,436) (130,018) (126,568)

1,616,468 1,753,035 628,639 826,899

Non-trade
Associated companies (ii) 623 607 269 218
Joint ventures (iii) 51,023 36,118 10,637 11,321
Deposits 166,016 18,552 141,089 4,328
Prepayments 166,820 31,572 6,139 9,217
Sundry receivables 222,739 98,146 132,114 43,037

607,221 184,995 290,248 68,121

2,223,689 1,938,030 918,887 895,020

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

Receivables of the Group and of the Company are analysed as follows: (cont’d.)

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

(b) Non-current

Trade
Third parties 762,917 973,866 – 88,970
Joint ventures (iii) 76,499 70,521 – –
Retention sums 16,909 23 11,413 –
Stakeholder funds 2,016 5,023 – –

858,341 1,049,433 11,413 88,970

Non-trade
Joint ventures (iii) 12,424 12,352 – –
Deposits 11,123 10,839 278 –
Sundry receivables 13 – – –
Prepayments 8,934 1,670 – –

32,494 24,861 278 –

890,835 1,074,294 11,691 88,970

Included in trade receivables is an amount of RM743,131,000 (2019: RM771,191,000) for the supply of treated water by
Gamuda Water Sdn. Bhd. to Syarikat Pengeluar Air Sungai Selangor Sdn. Bhd. (“SPLASH SB”), of which RM693,776,000
shall be settled in 9 equal annual instalments in accordance with the debt settlement agreement signed with Pengurusan
Air Selangor Sdn. Bhd.

The remaining balance of RM49,355,000 shall be settled based on the credit term stipulated in the new operations and
maintenance agreement (Sungai Selangor Water Treatment Plant Phase 3).

As at reporting date, the receivables from SPLASH SB are neither past due nor impaired. The directors do not foresee
any issue in recovering the receivable amount.

The Group and the Company have no significant concentration of credit risk that may arise from exposures to a single
debtor or to group of debtors, other than an amount of RM743,131,000 (2019: RM771,191,000) due from SPLASH SB.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

(i) Current
Trade receivables
Trade receivables are non-interest bearing and are generally on 14 to 90 days (2019: 14 to 90 days) terms. Other credit
terms are assessed and approved on a case-by-case basis. They are recognised at their original invoice amounts which
represent their fair values on initial recognition.

Ageing analysis of trade receivables

The ageing analysis of the Group’s and the Company’s trade receivables are as follows:

Group

2020 2019
RM’000 RM’000

Neither past due nor impaired 1,261,372 1,548,887

1 to 30 days past due not impaired 217,997 72,302

31 to 60 days past due not impaired 33,961 20,828
61 to 90 days past due not impaired 16,437 13,874
91 to 120 days past due not impaired 13,924 7,024
More than 120 days past due not impaired 72,777 90,120

355,096 204,148
Impaired 132,083 127,436

1,748,551 1,880,471

Company

2020 2019
RM’000 RM’000

Neither past due nor impaired 480,540 807,586

1 to 30 days past due not impaired 148,099 19,313
Impaired 130,018 126,568

758,657 953,467

Receivables that are neither past due nor impaired

Trade and other receivables that are neither past due nor impaired are creditworthy debtors with good payment records
with the Group and the Company. None of the Group’s and the Company’s trade receivables that are neither past due
nor impaired have been renegotiated during the financial year.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

(i) Current (cont’d.)
Trade receivables (cont’d.)
Receivables that are past due but not impaired
The Group and the Company have trade receivables amounting to RM355,096,000 (2019: RM204,148,000) and RM148,099,000
(2019: RM19,313,000) respectively that are past due at the reporting date but not impaired. The receivables are related
to customers with on-going transactions and/or progressive payments, and unsecured in nature.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses.
The provision rates are based on days past due for grouping of various customer segments with similar loss patterns
(i.e. by geographical region, product type, customer type and rating). The calculation reflects the probability-weighted
outcome, the time value of money and reasonable and supportable information that is available at the reporting date
about past events, current conditions and for more than one year and forecasts of future economic conditions. Generally,
trade receivables are written-off if past due for more than one year and are not subject to enforcement activity. The
maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed
above.

Receivables that are impaired

The Group’s and the Company’s trade receivables that are impaired at the reporting date and the movement of the
allowance accounts used to record the impairment are as follows:

Group
Individually impaired

2020 2019
RM’000 RM’000

Trade receivables – nominal amounts 132,083 127,436

Less: Allowance for impairment (132,083) (127,436)

– –

Movement in allowance accounts:

At 1 August 2019/2018 127,436 88,408
Charge for the year (Note 7) 1,197 38,963
Exchange difference 3,450 65

At 31 July 132,083 127,436

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

(i) Current (cont’d.)
Trade receivables (cont’d.)
Receivables that are impaired (cont’d.)
The Group’s and the Company’s trade receivables that are impaired at the reporting date and the movement of the
allowance accounts used to record the impairment are as follows: (cont’d.)

Company
Individually impaired

2020 2019
RM’000 RM’000

Trade receivables – nominal amounts 130,018 126,568

Less: Allowance for impairment (130,018) (126,568)

– –

Movement in allowance accounts:

At 1 August 2019/2018 126,568 86,766
Charge for the year (Note 7) – 38,311
Exchange difference 3,450 1,491

At 31 July 130,018 126,568

Trade receivables that are individually determined to be impaired at the reporting date relate to debtors that have
defaulted in payments. These receivables are not secured by any collateral or credit enhancements.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

(ii) Due from associated companies

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000

Current
Trade 19,805 20,023 – –
Non-trade 623 607 269 218
20,428 20,630 269 218

The amounts due from associated companies are unsecured, interest free and repayable on demand.

(iii) Due from joint venture

Group Company
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000

Current
Trade 411,475 676,811 409,535 673,053
Non-trade 51,023 36,118 10,637 11,321
462,498 712,929 420,172 684,374

Non-current
Trade 76,499 70,521 – –
Non-trade 12,424 12,352 – –
88,923 82,873 – –
551,421 795,802 420,172 684,374

Current
Included in the trade receivables of the Group and of the Company is an amount of RM409,591,000 (2019: RM646,410,000)
due from its 50% owned joint venture, MMC Gamuda KVMRT (T) Sdn. Bhd. (“Tunnel SB”). Tunnel SB is the underground
works contractor for KVMRT Line 2.

Included in the non-trade receivables of the Group and of the Company are amounts due from joint ventures which
are unsecured, interest free and repayable on demand.

Non-current
Included in the trade receivables of the Group is an amount due from the sale of lands to a joint venture, Gamuda GM
Klang Sdn. Bhd. (“GMKSB”), by Gamuda Land (Botanic) Sdn. Bhd., a subsidiary of the Company. The amount of
RM71,517,000 (2019: RM67,084,000) is unsecured, non-interest bearing and repayable in 2 tranches on 27 April 2023
and 27 April 2024 respectively.

Included in the non-trade receivables of the Group represents a loan amounting to RM12,425,000 (2019: RM12,352,000),
given to GMKSB by Megah Capital Sdn. Bhd., a subsidiary of the Company. The loan is unsecured and repayable in 5
years or such other day mutually agreed upon. The interest of the loan is charged at 5.20% (2019: 5.20%) per annum.

Other details of fair value of non-current receivables are further disclosed in Note 43.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

The following table analyses the financial assets of the Group and of the Company in the statements of financial position
by the class of financial instrument to which they are assigned, and therefore by the measurement basis:

Financial
Fair value assets at
through amortised
profit or loss cost Total
Group Note RM’000 RM’000 RM’000

At 31 July 2020
Other Investments 20 812 – 812
Investment securities 23 644,467 – 644,467
Current receivables 21(a)
Third parties – 1,021,903 1,021,903
Associated companies – 20,428 20,428
Joint ventures – 462,498 462,498
Joint venture partners – 26,240 26,240
Retention sums – 117,255 117,255
Stakeholder funds – 9,550 9,550
Deposits – 166,016 166,016
Sundry receivables – 222,739 222,739
Non-current receivables 21(b)
Third parties – 762,917 762,917
Joint ventures – 88,923 88,923
Retention sums – 16,909 16,909
Stakeholder funds – 2,016 2,016
Deposits – 11,123 11,123
Sundry receivables – 13 13
Contract assets 22 – 1,701,664 1,701,664
Cash and bank balances 25 – 2,147,202 2,147,202

Total financial assets 645,279 6,777,396 7,422,675

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

The following table analyses the financial assets of the Group and of the Company in the statements of financial position
by the class of financial instrument to which they are assigned, and therefore by the measurement basis: (cont’d.)

Financial
Fair value assets at
through amortised
profit or loss cost Total
Group Note RM’000 RM’000 RM’000

At 31 July 2019
Other Investments 20 812 – 812
Investment securities 23 396,664 – 396,664
Current receivables 21(a)
Third parties – 858,113 858,113
Associated companies – 20,630 20,630
Joint ventures – 712,929 712,929
Joint venture partners – 12,859 12,859
Retention sums – 119,150 119,150
Stakeholder funds – 21,764 21,764
Deposits – 18,552 18,552
Sundry receivables – 98,146 98,146
Non-current receivables 21(b)
Third parties – 973,866 973,866
Joint ventures – 82,873 82,873
Retention sums – 23 23
Stakeholder funds – 5,023 5,023
Deposits – 10,839 10,839
Contract assets 22 – 1,604,295 1,604,295
Cash and bank balances 25 – 1,452,272 1,452,272

Total financial assets 397,476 5,991,334 6,388,810

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

The following table analyses the financial assets of the Group and of the Company in the statements of financial position
by the class of financial instrument to which they are assigned, and therefore by the measurement basis: (cont’d.)

Financial
Fair value assets at
through amortised
profit or loss cost Total
Company Note RM’000 RM’000 RM’000

At 31 July 2020
Other Investments 20 733 – 733
Investment securities 23 581,850 – 581,850
Current receivables 21(a)
Third parties – 171,528 171,528
Associated companies – 269 269
Joint ventures – 420,172 420,172
Joint venture partners – 16,163 16,163
Retention sums – 106,589 106,589
Deposits – 141,089 141,089
Sundry receivables – 132,114 132,114
Non-current receivables 21(b)
Retention sums – 11,413 11,413
Deposits – 278 278
Contract assets 22 – 33,465 33,465
Due from subsidiaries 24 – 3,631,101 3,631,101
Cash and bank balances 25 – 195,532 195,532

Total financial assets 582,583 4,859,713 5,442,296

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

21. RECEIVABLES (CONT’D.)

The following table analyses the financial assets of the Group and of the Company in the statements of financial position
by the class of financial instrument to which they are assigned, and therefore by the measurement basis: (cont’d.)

Financial
Fair value assets at
through amortised
profit or loss cost Total
Company Note RM’000 RM’000 RM’000

At 31 July 2019
Other Investments 20 733 – 733
Investment securities 23 340,371 – 340,371
Current receivables 21(a)
Third parties – 37,865 37,865
Associated companies – 218 218
Joint ventures – 684,374 684,374
Joint venture partners – 3,434 3,434
Retention sums – 108,216 108,216
Deposits – 4,328 4,328
Sundry receivables – 43,037 43,037
Non-current receivables 21(b)
Third parties – 88,970 88,970
Contract assets 22 – 19,425 19,425
Due from subsidiaries 24 – 2,874,716 2,874,716
Cash and bank balances 25 – 65,184 65,184

Total financial assets 341,104 3,929,767 4,270,871

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

22. CONTRACT ASSETS/(LIABILITIES)

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

Contract assets:

Construction (a) 853,867 369,396 33,465 19,425

Property development (b) 847,797 1,234,899 – –

1,701,664 1,604,295 33,465 19,425

Analysed as:
Current 1,701,664 1,604,295 33,465 19,425

Contract liabilities:

Construction (a) (1,316,934) (906,933) (1,006,232) (790,073)

Property development (b) (22,854) (24,408) – –
Deferred revenue (c) (52,209) (61,484) – –

(1,391,997) (992,825) (1,006,232) (790,073)

Analysed as:
Current (1,353,551) (942,039) (1,006,232) (790,073)
Non-current (38,446) (50,786) – –

(1,391,997) (992,825) (1,006,232) (790,073)

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

22. CONTRACT ASSETS/(LIABILITIES) (CONT’D.)

(a) Contract assets/(liabilities) from construction

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Construction contract costs

incurred to date 17,098,188 14,626,198 12,379,750 11,397,844
Recognised profits less
recognised losses 1,894,227 1,775,344 1,538,442 1,439,743
Progress billings received and
receivables (19,455,482) (16,939,079) (14,890,959) (13,608,235)

(463,067) (537,537) (972,767) (770,648)

Represented by:
Contract assets 853,867 369,396 33,465 19,425
Contract liabilities (1,316,934) (906,933) (1,006,232) (790,073)

(463,067) (537,537) (972,767) (770,648)

Analysed as:
Contract assets
Due within 1 year 853,867 369,396 33,465 19,425

Contract liabilities
Due within 1 year (1,316,934) (906,933) (1,006,232) (790,073)

The costs incurred to date on construction contracts include the following charges made during the financial year:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Depreciation:
– Property, plant and equipment (Note 12) 109,610 52,625 103,428 45,763
– Right-of-use assets (Note 15(b)) 1,353 – 1,353 –
Staff costs (Note 5) 126,942 164,807 86,484 116,595
Finance costs (Note 8) 4,792 5,556 86 –
Short-term leases:
– Rental of premises 20 33 – –
– Hire of plant and equipment 1,450 2,448 – –

Included in contract assets from construction is an amount due from the Government of Socialist Republic of Vietnam
(“GOVT”) to a subsidiary, Gamuda Land Vietnam Limited Liability Company (“GLVN”) amounting to RM193,348,000 (2019:
RM188,049,000).

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

22. CONTRACT ASSETS/(LIABILITIES) (CONT’D.)

(b) Contract assets/(liabilities) from property development

Group

2020 2019
RM’000 RM’000

Contract assets 847,797 1,234,899

– Accrued billings 789,226 1,219,432

– Others 58,571 15,467

Contract liabilities (22,854) (24,408)

– Progress billings (3,897) (21,769)

– Others (18,957) (2,639)

824,943 1,210,491

Others relating to cost of obtaining contracts or consideration payable to customers are recognised to profit or loss
when performance obligations are satisfied for the respective financial years.

Group

2020 2019
RM’000 RM’000

At beginning of the year 1,210,491 704,853

Consideration payable to customers 11,524 16,589
Revenue recognised during the year 1,321,316 2,121,863
Interest income relating to significant financing component (Note 7) 60 2,133
Progress billings during the year (1,742,618) (1,645,986)
Exchange differences 24,170 11,039

At end of the year 824,943 1,210,491

Analysed as:
Contract assets
Due within 1 year 847,797 1,234,899

Contract liabilities
Due within 1 year (22,854) (24,408)

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– 31 July 2020

22. CONTRACT ASSETS/(LIABILITIES) (CONT’D.)

(b) Contract assets/(liabilities) from property development (cont’d.)
Unsatisfied performance obligations:
Revenue expected to be recognised in the future relating to performance obligations that are unsatisfied (or partially
satisfied) as at the reporting date, are as follows:

Group

2020 2019
RM’000 RM’000

Within 1 year 1,283,066 1,279,199

Between 1 – 4 year 1,028,906 907,091

2,311,972 2,186,290

(c) Contract liabilities from deferred revenue

Group

2020 2019
Note RM’000 RM’000

Advance membership (i) (25,646) (25,402)

Concession revenue (ii) (26,563) (36,082)

(52,209) (61,484)

Analysed as:
Due within 1 year (13,763) (10,698)
Due after 1 year (38,446) (50,786)

(52,209) (61,484)

(i) Advance membership

Advance membership fees received are in connection with the provision of services by way of sporting and other
recreational facilities. The advance membership fees are recognised as income over the tenure of the membership
period which expires on 30 November 2066 and 30 September 2070 for Bandar Botanic Resort Berhad and Jade
Homes Resort Berhad respectively.

Group

2020 2019
RM’000 RM’000

Analysed as:
Due within 1 year (1,954) (1,179)
Due after 1 year (23,692) (24,223)

(25,646) (25,402)

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– 31 July 2020

22. CONTRACT ASSETS/(LIABILITIES) (CONT’D.)

(c) Contract liabilities from deferred revenue (cont’d.)
(ii) Concession revenue
Deferred revenue comprises advance maintenance fees, license fees, and government compensation in relation to
Kesas Sdn. Bhd.. Compensation received from the Government of Malaysia for the imposition of revised toll rates
lower than those as provided for in the Concession Agreement, which is taken to profit or loss over the period
the compensation relates.

Advance Advance
license maintenance Government
fees fees compensations Total
RM’000 RM’000 RM’000 RM’000

Group
At 31 July 2020
At 1 August 2019 (2,233) (1,350) (32,499) (36,082)
Amount recognised
– As revenue – – 8,700 8,700
– As other income 554 265 – 819

(1,679) (1,085) (23,799) (26,563)

Analysed as:
Due within 1 year (554) (255) (11,000) (11,809)
Due after 1 year (1,125) (830) (12,799) (14,754)

(1,679) (1,085) (23,799) (26,563)

At 31 July 2019
At 1 August 2018 (3,299) (1,626) (36,799) (41,724)
Amount recognised
– As revenue – – 4,300 4,300
– As other income 1,066 276 – 1,342

(2,233) (1,350) (32,499) (36,082)

Analysed as:
Due within 1 year (554) (265) (8,700) (9,519)
Due after 1 year (1,679) (1,085) (23,799) (26,563)

(2,233) (1,350) (32,499) (36,082)

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– 31 July 2020

23. INVESTMENT SECURITIES

2020 2019

Fair value Fair value

Carrying of quoted Carrying of quoted
amount investments amount investments
RM’000 RM’000 RM’000 RM’000

Group
Current
Portfolios:
Held as fixed deposit placements
– Islamic 188,684 188,684 225,813 225,813
– Non-Islamic 319,586 319,586 149,383 149,383
Others
– Islamic 61,794 61,794 1 1
– Non-Islamic 74,403 74,403 21,467 21,467

644,467 644,467 396,664 396,664

Company
Current
Portfolios:
Held as fixed deposit placements
– Islamic 178,890 178,890 198,885 198,885
– Non-Islamic 280,096 280,096 141,396 141,396
Others
– Islamic 61,794 61,794 1 1
– Non-Islamic 61,070 61,070 89 89

581,850 581,850 340,371 340,371

Investment securities represent funds placed with licensed fund managers. The portfolio of securities managed by the fund
managers comprise of money market funds, commercial papers, government bonds and fixed deposits. Investment securities
held as fixed deposit placements allow prompt redemption at any time.

Other details of fair value of investment securities are further disclosed in Note 43.

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– 31 July 2020

24. DUE FROM SUBSIDIARIES

Company

2020 2019
RM’000 RM’000

Non-current
Due from subsidiaries
– Non-trade 938,380 844,703

Current
Due from subsidiaries
– Trade 14,761 -
– Non-trade 2,677,960 2,030,013

2,692,721 2,030,013

3,631,101 2,874,716

The trade amounts due from subsidiaries have a normal credit term which ranges from 30 to 90 days (2019: 30 to 90 days).

The non-trade amounts due from subsidiaries are unsecured, interest free and are repayable on demand except for advances
of RM3,167,917,000 (2019: RM2,467,918,000) given to subsidiaries which bear interest at 3.58% to 5.35% (2019: 4.35% to
5.32%) per annum.

25. CASH AND BANK BALANCES

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Cash in hand and at banks 536,426 167,587 120,830 59,634

Housing Development Accounts:
– Islamic 163,074 99,213 – –
– Non-Islamic 34,521 37,209 – –

734,021 304,009 120,830 59,634

Deposits with licensed banks with:
– Tenures of less than 3 months
  – Islamic 225,112 247,116 60,000 5,550
  – Non-Islamic 559,628 529,998 14,702 –
– Tenures of more than 3 months
  – Islamic 156,888 11,019 – –
  – Non-Islamic 471,553 360,130 – –

Total cash and bank balances 2,147,202 1,452,272 195,532 65,184

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– 31 July 2020

25. CASH AND BANK BALANCES (CONT’D.)

For the purpose of statements of cash flows, cash and cash equivalents comprise the following as at reporting date:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Total cash and bank balances 2,147,202 1,452,272 195,532 65,184

Less: Deposits with tenures of more
  than 3 months (628,441) (371,149) – –

Total cash and cash equivalents 1,518,761 1,081,123 195,532 65,184

Included in total cash and bank balances of the Group and of the Company are interest bearing balances amounting to
RM1,973,436,000 (2019: RM1,403,474,000) and RM105,421,000 (2019: RM59,146,000) respectively.

Housing Development Accounts held pursuant to Section 7A of the Housing Development (Control and Licensing) Act 1966
and therefore, restricted from use in other operations.

The weighted average effective interest rates of deposits as at reporting date were as follows:

Group Company

2020 2019 2020 2019

% % % %

Licensed banks:
Malaysia 2.12 2.98 1.59 2.80
India 6.01 6.99 – –
Australia 0.89 1.46 – –
Vietnam 5.12 5.91 – –

The range of maturities of deposits as at reporting date were as follows:

Group Company

2020 2019 2020 2019

Days Days Days Days

Licensed banks 4 – 368 1 – 365 4 – 90 1–7

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– 31 July 2020

26. SHARE CAPITAL

Number of ordinary shares Amount

2020 2019 2020 2019

‘000 ‘000 RM‘000 RM‘000

Issued and fully paid:

At 1 August 2019/2018 2,472,322 2,467,992 3,469,729 3,452,940
Exercise of ESOS 20,899 3,228 70,950 8,800
Conversion of warrants 477 1,102 2,050 4,739
Issuance on dividend reinvestment scheme 19,830 – 71,387 –
Share options exercised under ESOS – – 6,830 3,250

At 31 July 2,513,528 2,472,322 3,620,946 3,469,729

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote
per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets.

(a) Under Companies Act 2016 in Malaysia, which came into effect on 31 January 2017, the concept of authorised share
capital is no longer applicable.

(b) In accordance with Section 74 of the Companies Act 2016 in Malaysia, the Company’s shares no longer have a par or
nominal value with effect from 31 January 2017.

Pursuant to Section 618 of the Companies Act 2016 in Malaysia, the amount standing to the credit of the Company’s
share premium account of RM997,407,000 became part of the Company’s share capital. There is no impact on the
number of shares in issue or the relative entitlement of any members of the Company as a result of this transition.

(c) During the financial year, the Company increased its issued and paid-up share capital from RM3,469,729,000 to
RM3,620,946,000 by way of:

(i) issuance of 20,899,000 new ordinary shares for cash arising from the exercise of share options under the Company’s
ESOS;

(ii) issuance of 476,782 new ordinary shares for cash arising from the exercise of Warrants 2016/2021 at the exercise
price of RM4.05 per warrant in accordance with the Deed Poll dated 22 January 2016; and

(iii) issuance of 19,829,839 new ordinary shares pursuant to the First DRP at the price of RM3.60 per share.

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– 31 July 2020

26. SHARE CAPITAL (CONT’D.)

(d) On 7 March 2016, the Company allotted and issued 400,984,509 new Warrants 2016/2021 (”Warrants”) at an issue price
of RM0.25 per Warrant on the basis of 1 Warrant for every 6 existing ordinary shares held in the Company (“Rights
Issue of Warrants”).

The Warrants are valid for exercise for a period of 5 years from its issue date and will expire on 6 March 2021. During
this period, each Warrant entitles the registered holder to subscribe for 1 new ordinary share in the Company at any
time on or after 7 March 2016 to 6 March 2021, at an exercise price of RM4.05 per Warrant in accordance with the
Deed Poll dated 22 January 2016. Any Warrants not exercised by its expiry date will lapse thereafter and cease to be
valid for all purposes.

The total number of warrants converted during the year are as follows:

Warrants
2016/2021

2020 2019
‘000 ‘000

At 1 August 2019/2018 387,698 388,800

Converted (477) (1,102)

At 31 July 387,221 387,698

(e) The Gamuda Berhad Employees’ Share Option Scheme (“ESOS”) was approved by the shareholders at the Extraordinary
General Meeting held on 4 December 2014 and became effective on 10 April 2015. With effect from 10 April 2015, the
Company issued options under the new ESOS for the eligible executive directors and employees of Gamuda Berhad
and its subsidiaries.

On 9 April 2020, 204,525,000 ESOS remain unexercised. Pursuant to Gamuda’s ESOS By-Law, all options lapsed upon
expiry of the ESOS.

The principal features of the ESOS were as follows:

(i) Full-time and confirmed employees within Gamuda Group and executive directors of Gamuda (“eligible person”)
are eligible to participate in the ESOS. Participation, however, is subject to the discretion of the Option Committee.

(ii) The ESOS shall be in force for a period of 5 years from 10 April 2015 provided that before the final year of the
ESOS, the Option Committee may extend for up to another 5 years the duration of ESOS commencing from the
expiration of the original 5 years. The duration of the ESOS shall not be more than 10 years from its effective
date.

(iii) The total number of new shares to be allotted under the ESOS shall not exceed 10% of the issued and paid-up
share capital of the Company at any point of time during the duration of the ESOS.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

26. SHARE CAPITAL (CONT’D.)

(e) The principal features of the ESOS were as follows: (cont’d.)

(iv) The subscription price for the new shares under the ESOS shall be the volume weighted average market price
of the shares as quoted on the Main Market of Bursa Malaysia Securities Berhad for the 5 market days immediately
preceding the date of offer of the options, or at par value of the share, whichever is higher.

(v) The aggregate number of shares to be offered to an eligible person shall be determined at the discretion of the
Option Committee after taking into consideration, amongst other factors, the position, performance, seniority and
the length of service that the eligible person has rendered and subject to the maximum allowable allotment of
shares for each eligible person.

(vi) The number of shares comprised in the ESOS options which remained unexercised or the exercise prices or both
may be adjusted following any alteration in the capital structure of the Company during the option period, whether
such alteration is by way of capitalisation of profits or reserves, right issues, consolidation of shares, sub-division
of shares or reduction of capital or otherwise howsoever taking place.

(vii) The options shall not carry any right to vote at any general meeting of the Company and a grantee shall not be
entitled to any dividends, right or other entitlements on his unexercised options.

(viii) The options granted under ESOS are not assignable.

(ix) There is no restriction on the grantee in exercising their ESOS options or selling their Gamuda Shares allotted
and issued pursuant to the exercise of their options.

Upon a sale of the Gamuda shares, if the net proceeds from the disposal are less than the Exercise Value (being
the Exercise Price multiplied by the number of Gamuda Shares sold), the entire net proceeds will be released
to the grantee.

However, if the net proceeds are more than the Exercise Value, an amount equivalent to the Exercise Value will
be released to the grantee. The balance proceeds not released to the grantee will be placed in an interest bearing
account for the benefit of the grantee. The balance proceeds (being the net proceeds less Exercise Value) together
with the attributable interest, if any, will be released to the grantee over the period of the scheme in accordance
with Gamuda’s ESOS By-Law on each anniversary of the scheme.

(x) The new shares allotted upon any exercise of the options shall rank pari passu in all respects with the existing
issued and paid-up ordinary shares of the Company except that the new shares so issued will not be entitled
for any dividends, rights, allotments and/or other distributions, the entitlement date of which is prior to the date
of allotment of the new shares.

(xi) No grantee shall participate at any time in more than one ESOS implemented by any company within the Gamuda
Group.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

26. SHARE CAPITAL (CONT’D.)

(e) The principal features of the ESOS were as follows: (cont’d.)

(xii) Options to subscribe for ordinary shares under the ESOS were granted on the following dates:

Exercise Number of
price options
Grant date RM ‘000 Exercise period

10 April 2015 4.46 69,947 10 April 2015 - 9 April 2020

24 November 2015 3.84 74,351 24 November 2015 - 9 April 2020
3 June 2016 4.78 44,815 3 June 2016 - 9 April 2020
8 November 2016 4.88 5,963 8 November 2016 - 9 April 2020
13 June 2017 5.36 13,349 13 June 2017 - 9 April 2020
28 November 2017 4.65 8,324 28 November 2017 - 9 April 2020
6 June 2018 3.38 14,670 6 June 2018 - 9 April 2020
18 December 2018 2.30 5,561 18 December 2018 - 9 April 2020
10 June 2019 3.44 8,504 10 June 2019 - 9 April 2020
8 November 2019 3.65 33,071 8 November 2019 - 9 April 2020

278,555

(f) Breakdown of aggregate proceeds received from share options exercised during the financial year and the fair value,
at exercise date, of ordinary shares issued are as follows:

2020 2019
RM’000 RM’000

Ordinary shares 20,899 3,228

Share premium 50,051 5,572

Aggregate proceeds received on shares issued 70,950 8,800

Aggregate fair value of ordinary shares at exercise date 80,792 11,872

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

26. SHARE CAPITAL (CONT’D.)

(g) The number and weighted average exercise prices (“WAEP”) of, and movements in, share options during the financial
year are as follows:

Number of share options

Movement during the year

Outstanding Outstanding
and exercisable and exercisable
at 1 August 2019 Granted Exercised Lapsed at 31 July 2020
ESOS exercise price ‘000 ’000 ’000 ’000 ’000

RM4.46 56,855 - - (56,855) -

RM3.84 39,555 - (846) (38,709) -
RM4.78 43,036 - - (43,036) -
RM4.88 5,665 - - (5,665) -
RM5.36 13,349 - - (13,349) -
RM4.65 8,278 - - (8,278) -
RM3.38 13,815 - (5,376) (8,439) -
RM2.30 3,547 - (2,419) (1,128) -
RM3.44 8,253 - (3,691) (4,562) -
RM3.65 - 33,071 (8,567) (24,504) -

192,353 33,071 (20,899) (204,525) -

WAEP 4.33 3.65 3.39 4.31

Number of share options

Movement during the year

Outstanding Outstanding
and exercisable and exercisable
at 1 August 2018 Granted Exercised at 31 July 2019
ESOS exercise price ‘000 ’000 ’000 ’000

RM4.46 56,855 - - 56,855

RM3.84 39,663 - (108) 39,555
RM4.78 43,036 - - 43,036
RM4.88 5,665 - - 5,665
RM5.36 13,349 - - 13,349
RM4.65 8,278 - - 8,278
RM3.38 14,670 - (855) 13,815
RM2.30 - 5,561 (2,014) 3,547
RM3.44 - 8,504 (251) 8,253

181,516 14,065 (3,228) 192,353

WAEP 4.40 2.99 2.73 4.33

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– 31 July 2020

26. SHARE CAPITAL (CONT’D.)

(h) Fair value of share options granted

The fair value of the share options granted under the ESOS is estimated at grant date using a binomial option pricing
model, taking into account the terms and conditions upon which the instruments were granted.

The fair value of share options measured at the respective date and the assumptions are as follows:

ESOS

BATCH 1 2 3 4 5 6 7 8 9 10

Exercise price, after rights

issue of warrants (RM) 4.46 3.84 4.78 4.88 5.36 4.65 3.38 2.30 3.44 3.65

Fair value of share options,

at the following grant dates
and modification dates (RM)
– Grant date 0.41 0.38 – – – – – – – –
– 12 February 2016 0.35 0.59 – – – – – – – –
– Grant date
– – 0.43 0.40 0.44 0.49 0.45 0.25 0.34 0.34

Weighted average
share price (RM)
– Grant date 5.19 4.50 4.86 4.90 5.38 4.65 3.38 2.20 3.39 3.39
– 12 February 2016
4.43 4.43 – – – – – – – –

Expected volatility
– Grant date 19.00% 23.00% 23.00% 20.00% 20.00% 20.00% 20.00% 30.00% 30.00% 30.00%
– 12 February 2016
23.00% 23.00% – – – – – – – –

Risk free rate

– Grant date 3.22% 3.24% 3.03% 2.97% 3.08% 2.94% 3.45% 3.46% 3.16% 3.16%
– 12 February 2016
3.25% 3.25% – – – – – – – –

Expected dividend yield# 3.00% 3.00% 3.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50%

The expected volatility is based on historical data and is not necessarily indicative of exercise patterns that may occur.

#
Expected dividend yield is assumed to be the same for all dates.

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– 31 July 2020

27. OTHER RESERVES (NON-DISTRIBUTABLE)

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Capital reserve
At 1 August 2019/2018 147,149 141,069 – –
Movement in capital reserve in an associated company 4,821 6,080 – –

At 31 July 151,970 147,149 – –

Foreign exchange reserve

At 1 August 2019/2018 97,800 67,226 4,289 5,468
Foreign currency translation 100,198 30,433 (4,609) (1,179)
Share of associated companies' foreign
currency translation (6,661) 295 – –
Non-controlling interests 830 (154) – –

At 31 July 192,167 97,800 (320) 4,289

Warrants reserve
At 1 August 2019/2018 96,925 97,199 96,925 97,199
Conversion of warrants (119) (274) (119) (274)

At 31 July 96,806 96,925 96,806 96,925

Total other reserves 440,943 341,874 96,486 101,214

28. RETAINED PROFITS

The Company may distribute dividends out of its entire retained earnings under the single tier system.

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– 31 July 2020

29. RETIREMENT BENEFIT OBLIGATIONS

The Group operates an unfunded, defined benefit Retirement Benefit Scheme (“the Scheme”) for its employees. Under the
Scheme, eligible employees are entitled to retirement benefits of 2.5% on the last drawn monthly basic salary for each
completed months of services on attainment of the retirement age of 60.

The amounts recognised in the statements of financial position are determined as follows:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Present value of unfunded defined benefit obligations,

representing net liability 55,607 52,260 6,162 5,394

Analysed as:
Current (Note 30(b)) 5,150 2,578 194 340

Non-current:
More than one year and less than two years 1,908 4,330 65 148
More than two years and less than five years 5,344 3,629 447 180
Five years or more 43,205 41,723 5,456 4,726
Amount included in payables (Note 30(a)) 50,457 49,682 5,968 5,054

Total 55,607 52,260 6,162 5,394

The amounts recognised in profit or loss are determined as follows:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Current service cost (3,727) 5,072 285 531

Interest cost 2,650 2,400 271 240

Total, included in staff costs and

  directors’ remuneration (Notes 5 and 6) (1,077) 7,472 556 771

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

29. RETIREMENT BENEFIT OBLIGATIONS (CONT’D.)

Movements in the net liabilities in the current year were as follows:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

At 1 August 2019/2018 52,260 43,367 5,394 4,065

Recognised in profit or loss (1,077) 7,472 556 771
Effect of re-measurement loss in other
comprehensive income 6,568 3,185 678 558
Contributions paid (2,167) (1,772) (466) -
Exchange differences 23 8 - -

At 31 July 55,607 52,260 6,162 5,394

The sensitivity analysis on the present value of the retirement benefit obligations below has been determined based on
reasonably possible changes of each significant assumption on the defined benefit obligation as of the end of the reporting
period, assuming if all other assumptions were held constant:

Increase/ 2020 Increase/ 2019

Group (decrease) RM’000 (decrease) RM’000

Discount rate +1% (5,846) +1% (5,345)

-1% 6,985 -1% 6,384

Expected rate of salary increases +1% 7,929 +1% 6,744

-1% (6,723) -1% (5,746)

Principal actuarial assumptions used:

2020 2019
% %

Discount rate 3.9 5.2

Expected rate of salary increases 7.0 – 11.0 7.0 – 11.0

The average duration of the defined benefit plan obligation at the end of the reporting year is 12 years (2019: 12 years).

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30. PAYABLES

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Non-current (a)
Trade 169,383 143,851 66,985 62,735
Non-trade 66,167 54,131 6,555 5,054

235,550 197,982 73,540 67,789

Current (b)
Trade 1,252,481 1,319,004 151,751 166,828
Non-trade 507,969 525,388 56,298 213,332

1,760,450 1,844,392 208,049 380,160

Total payables 1,996,000 2,042,374 281,589 447,949

(a) Non-current
Trade
Trade payables 411 – – –
Retention sums 159,147 143,851 57,160 62,735
Accruals 9,825 – 9,825 –

169,383 143,851 66,985 62,735

Non-trade
Retirement benefit obligations (Note 29) 50,457 49,682 5,968 5,054
Lease liabilities (Note 31) 9,854 – 587 –
Sundry payables 1,837 1,289 – –
Accruals 4,019 3,160 – –

66,167 54,131 6,555 5,054

235,550 197,982 73,540 67,789

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

30. PAYABLES (CONT’D.)

(b) Current

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Trade
Trade payables 373,758 536,272 34,901 15,492
Joint venture partners 45,032 19,047 711 160
Retention sums 154,671 138,767 17,748 8,565
Accruals 679,020 624,918 98,391 142,611

1,252,481 1,319,004 151,751 166,828

Non-trade
Associated companies 54 47 – –
Retirement benefit obligations (Note 29) 5,150 2,578 194 340
Lease liabilities (Note 31) 4,425 – 999 –
Sundry payables 316,324 176,974 4,702 11,028
Dividend payables – 148,272 – 148,272
Accruals 182,016 197,517 50,403 53,692

507,969 525,388 56,298 213,332

1,760,450 1,844,392 208,049 380,160

The normal trade credit term granted to the Group and the Company ranges from 30 to 90 days (2019: 30 to 90 days).

The amounts due to associated companies and joint venture partners are unsecured, interest free and repayable on
demand.

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– 31 July 2020

30. PAYABLES (CONT’D.)

The following table analyses the financial liabilities of the Group and of the Company in the statements of financial position
by the class of financial instruments to which they are assigned, and therefore by the measurement basis.

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

Financial liabilities
  at amortised costs
Current payables 30(b)
  Trade payables 373,758 536,272 34,901 15,492
  Associated companies 54 47 – –
  Joint venture partners 45,032 19,047 711 160
  Retention sums 154,671 138,767 17,748 8,565
  Sundry payables 316,324 176,974 4,702 11,028
  Dividend payables – 148,272 – 148,272
  Accruals 861,036 822,435 148,794 196,303
  Lease liabilities 31 4,425 – 999 –
Non-current payables 30(a)
  Trade payables 411 – – –
  Retention sums 159,147 143,851 57,160 62,735
  Sundry payables 1,837 1,289 – –
  Accruals 13,844 3,160 9,825 –
  Lease liabilities 31 9,854 – 587 –
Contract liabilities 22 1,391,997 992,825 1,006,232 790,073
Islamic debts 33 2,825,000 2,665,000 2,150,000 1,600,000
Borrowings 34 2,640,131 2,478,658 1,314,080 600,298
Due to subsidiaries 36 – – 358,670 168,449

8,797,521 8,126,597 5,104,409 3,601,375

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– 31 July 2020

31. LEASE LIABILITIES

The carrying amounts of lease liabilities and the movements during the year is as follows:

Group Company
2020 2020
RM’000 RM’000

At 1 August 2019 (previously stated) – –

Effect of adoption of MFRS 16 (Note 2.2(a)) 15,450 2,521

At 1 August 2019 (as restated) 15,450 2,521

Additions 3,821 536
Interest expense (Note 8) 735 91
Payment made during the year (5,763) (1,576)
Exchange differences 36 14

At 31 July 2020 14,279 1,586

Lease liabilities are analysed as follows:

Group Company
2020 2020
RM’000 RM’000

Current (Note 30(b)) 4,425 999

Non-current (Note 30(a)) 9,854 587

14,279 1,586

The remaining maturities of the lease liabilities as at 31 July 2020 is as follows:

Group Company
2020 2020
RM’000 RM’000

Not more than 1 year 4,425 999

Later than 1 year but not later than 2 years 4,705 537
Later than 2 years but not later than 5 years 5,149 50

14,279 1,586

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– 31 July 2020

32. DEFERRED TAX LIABILITIES/(ASSETS)

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000
(Restated)

At 1 August 2019/2018 (as previously stated) 334,870 365,918 (2,228) 3,929

Effect of adoption of MFRS 123 (Note 2.2(c)) (843) 967 – –

At 1 August 2019/2018 (as restated) 334,027 366,885 (2,228) 3,929

Recognised in profit or loss (Note 9) (40,543) (33,476) (3,174) (6,023)
Recognised in other comprehensive income (589) (89) (163) (134)
Exchange differences 2,344 707 – –

At 31 July 295,239 334,027 (5,565) (2,228)

Presented after appropriate offsetting as follows:

Deferred tax assets (40,665) (41,767) (5,565) (2,228)
Deferred tax liabilities 335,904 375,794 – –

295,239 334,027 (5,565) (2,228)

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as
follows:
Deferred tax liabilities of the Group:

Fair value
adjustment on
Accelerated expressway
capital development
Receivables allowances expenditure Land Total
RM’000 RM’000 RM’000 RM’000 RM’000

At 1 August 2019 84,305 163,134 142,212 7,483 397,134

Recognised in profit or loss 40,359 920 (24,931) (4,608) 11,740
Exchange differences 1,772 (119) (109) 1 1,545

At 31 July 2020 126,436 163,935 117,172 2,876 410,419

At 1 August 2018 62,395 189,343 156,248 17,575 425,561

Recognised in profit or loss 22,509 (26,836) (14,036) (10,092) (28,455)
Exchange differences (599) 627 – – 28

At 31 July 2019 84,305 163,134 142,212 7,483 397,134

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– 31 July 2020

32. DEFERRED TAX LIABILITIES/(ASSETS) (CONT’D.)

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as
follows: (cont’d.)
Deferred tax assets of the Group:

Unutilised Retirement Provisions

Unutilised capital benefit and
tax losses allowances obligations accruals Total
RM’000 RM’000 RM’000 RM’000 RM’000

At 1 August 2019 (as previously

stated) (4,002) (6,973) (9,844) (41,445) (62,264)
Effect of adoption of MFRS 123
(Note 2.2(c)) – – – (843) (843)

At 1 August 2019 (as restated) (4,002) (6,973) (9,844) (42,288) (63,107)

Recognised in profit or loss (15,556) (1,311) 6,854 (42,270) (52,283)
Recognised in other
comprehensive income – – (589) – (589)
Exchange differences – (47) (573) 1,419 799

At 31 July 2020 (19,558) (8,331) (4,152) (83,139) (115,180)

At 1 August 2018 (as previously

stated) (6,521) (4,649) (8,391) (40,082) (59,643)
Effect of adoption of MFRS 123
(Note 2.2(c)) – – – 967 967

At 1 August 2018 (as restated) (6,521) (4,649) (8,391) (39,115) (58,676)

Recognised in profit or loss 7,714 (1,354) (1,406) (9,975) (5,021)
Recognised in other
comprehensive income – – (89) – (89)
Exchange differences (5,195) (970) 42 6,802 679

At 31 July 2019 (as restated) (4,002) (6,973) (9,844) (42,288) (63,107)

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– 31 July 2020

32. DEFERRED TAX LIABILITIES/(ASSETS) (CONT’D.)

The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as
follows: (cont’d.)
Deferred tax liabilities of the Company:

Accelerated
capital
allowances
RM’000

At 1 August 2019 8,243

Recognised in profit or loss (268)

At 31 July 2020 7,975

At 1 August 2018 13,264

Recognised in profit or loss (5,021)

At 31 July 2019 8,243

Deferred tax asset of the Company:

Unutilised Retirement Provisions

Unutilised capital benefit and
tax losses allowances obligations accruals Total
RM’000 RM’000 RM’000 RM’000 RM’000

At 1 August 2019 – (6,363) (1,294) (2,814) (10,471)

Recognised in profit or loss (3,291) (696) (184) 1,265 (2,906)
Recognised in other
comprehensive income – – (163) – (163)

At 31 July 2020 (3,291) (7,059) (1,641) (1,549) (13,540)

At 1 August 2018 – (5,344) (975) (3,016) (9,335)

Recognised in profit or loss – (1,019) (185) 202 (1,002)
Recognised in other
comprehensive income – – (134) – (134)

At 31 July 2019 – (6,363) (1,294) (2,814) (10,471)

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– 31 July 2020

32. DEFERRED TAX LIABILITIES/(ASSETS) (CONT’D.)

Deferred tax assets have not been recognised in respect of the following items:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Unutilised tax losses 288,704 115,995 18,370 –

Unabsorbed capital allowances 190,923 161,337 – –
Other deductible temporary differences 56,411 6,838 – –

536,038 284,170 18,370 –

The availability of the unutilised tax losses and unabsorbed capital allowances for offsetting against future taxable profits
of the Group are subject to no substantial changes in shareholdings of the respective companies under the Income Tax
Act, 1967, and guidelines issued by the tax authority. Effective from YA 2019, unutilised tax losses are allowed to be carried
forward for a maximum period of seven years.

Deferred tax assets have not been recognised in respect of the above items as it is not probable that future taxable profits
will be available in the Company and certain subsidiaries against which the Group can utilise the benefits.

33. ISLAMIC DEBTS

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

Non-current
Medium term notes
– Unsecured (a) 1,850,000 1,600,000 1,750,000 1,300,000
– Secured (b) 285,000 375,000 – –

2,135,000 1,975,000 1,750,000 1,300,000

Current
Medium term notes
– Unsecured (a) 600,000 600,000 400,000 300,000
– Secured (b) 90,000 90,000 – –

690,000 690,000 400,000 300,000

Total Islamic debts 2,825,000 2,665,000 2,150,000 1,600,000

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– 31 July 2020

33. ISLAMIC DEBTS (CONT’D.)

Medium term notes (“MTNs”)
The MTNs are drawndown by:

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

Gamuda Berhad (a) 2,150,000 1,600,000 2,150,000 1,600,000

Bandar Serai Development Sdn. Bhd.
(“Bandar Serai”) (a) 300,000 600,000 – –
Kesas Sdn. Bhd. (b) 375,000 465,000 – –

2,825,000 2,665,000 2,150,000 1,600,000

The amount drawdown, maturity date and yield as at issuance dates of the MTNs are as follows:

(a) Murabahah MTN – unsecured

(i) Gamuda Berhad

Amount Issuance Yield at

drawdown Issuance Maturity tenure issuance date
RM’000 date date (years) %

Current
Issue No. 8 300,000 25.04.2016 23.04.2021 5 4.62
Issue No. 14 100,000 01.06.2020 02.06.2021 1 3.20

400,000

Non-current
Issue No. 9 500,000 23.11.2017 23.11.2022 5 4.83
Issue No. 10 400,000 16.03.2018 16.03.2023 5 4.79
Issue No. 11 100,000 27.11.2018 27.11.2023 5 4.79
Issue No. 12 200,000 18.11.2019 18.11.2026 7 4.12
Issue No. 13 300,000 18.11.2019 16.11.2029 10 4.26
Issue No. 15 250,000 29.06.2020 28.06.2030 10 4.10

1,750,000

2,150,000

Issue No.1 to No. 7 were redeemed upon maturity in previous years.

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– 31 July 2020

33. ISLAMIC DEBTS (CONT’D.)

Medium term notes (“MTNs”) (cont’d.)
The amount drawdown, maturity date and yield as at issuance dates of the MTNs are as follows: (cont’d.)
(a) Murabahah MTN – unsecured (cont’d.)
(ii) Bandar Serai

Amount Issuance Yield at

drawdown Issuance Maturity Tenure issuance date
RM’000 date date (years) %

Current
Tranche No. 2 200,000 27.10.2015 27.10.2020 5 4.78

Non-current
Tranche No. 3 100,000 28.08.2018 28.08.2023 5 4.69

300,000

Tranche No. 1 was redeemed upon maturity in November 2019.

The Islamic MTNs were drawndown by Bandar Serai, a subsidiary of the Company for the purpose of financing
the acquisition of leasehold land for Gamuda Gardens project in Rawang, Selangor. The facilities are unconditionally
guaranteed by the Company.

(b) Sukuk Musharakah Medium Term Notes (“Sukuk”) – secured

Group

2020 2019
RM’000 RM’000

Primary Sukuk 375,000 465,000

Secondary Sukuk 188,184 188,184

563,184 653,184
Less: Unamortised profit element (30,486) (49,072)

532,698 604,112
Less: Accumulated profit element charged to profit or loss (157,698) (139,112)

375,000 465,000

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– 31 July 2020

33. ISLAMIC DEBTS (CONT’D.)

Medium term notes (“MTNs”) (cont’d.)
(b) Sukuk Musharakah Medium Term Notes (“Sukuk”) – secured (cont’d.)
The remaining maturities of the borrowings are as follows:

Group

2020 2019
RM’000 RM’000

Less than one year 90,000 90,000

More than one year and less than two years 90,000 90,000
More than two years and less than five years 195,000 285,000

375,000 465,000

On 2 October 2014, Kesas Sdn. Bhd. issued its Islamic MTNs with an aggregate nominal amount of RM735 million. The
Sukuk is constituted by a Sukuk Musharakah Trust Deed dated 2 October 2014. The Sukuk were issued in 8 series,
with maturities from October 2016 to August 2023. The profit margin ranges from 4.55% to 4.85% (2019: 4.47% to
4.85%) per annum.

The Sukuk was issued to fully redeem its previously issued bonds (“BaIDS”), government support loan and redeemable
convertible unsecured loan stock (‘’RCULS’’).

The borrowings are secured by the following:

(i) whole or any part of the undertakings, revenues, rights and all the assets and properties of the subsidiary (both
present and future);

(ii) subject to any necessary authorisation under Section 7 of the Federal Roads (Private Management) Act 1984, all
the rights to demand, collect and retain toll as more particularly stated in Clause 2.1(c) (Grant of Concession) of
the Concession Agreement;

(iii) all the subsidiary’s rights, title and benefits in respect of other contracts entered or to be entered by the subsidiary
in relation to the operation and maintenance of the Expressway and proceeds received thereunder; and

(iv) all the subsidiary’s rights, interests, title and benefits in respect of the Designated Accounts.

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– 31 July 2020

33. ISLAMIC DEBTS (CONT’D.)

Medium term notes (“MTNs”) (cont’d.)
(b) Sukuk Musharakah Medium Term Notes (“Sukuk”) – secured (cont’d.)
In accordance with Clause 13.2(t) of the Sukuk Musharakah Trust Deed, no declaration or distribution of dividend
(“Distribution”) is allowed unless all of the following conditions have been complied with:

(i) no Dissolution Event has occurred or would occur following such payment or distribution of the Distributions;

(ii) the Projected Financial Service Cover Ratios (“FSCR”) as calculated on each Distribution Date shall not fall below
two point two five (2.25) times after such payment of the Distributions and for the purposes of testing the compliance
of the projected FSCR, the subsidiary shall submit a Compliance Certificate duly signed by a director of the
subsidiary in relation to the compliance of the Projected FSCR to the Facility Agent and the Sukuk Trustee;

(iii) the balance standing to the credit of the FSCR Account after such payment of the Distributions will not be less
than the minimum required balance; and

(iv) such Distribution, in the reasonable opinion of the Sukuk Trustee would not have a material adverse effect.

The weighted average effective interest rates for long term and short term borrowings (per annum) as at reporting date
are as follows:

Group Company

2020 2019 2020 2019

% % % %

MTNs 4.54 4.70 4.48 4.72

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– 31 July 2020

34. BORROWINGS

Group Company

2020 2019 2020 2019

Note RM’000 RM’000 RM’000 RM’000

Non-current
Term loans
– secured (a) 339,380 486,353 – –
– unsecured (b) 434,571 433,128 – –

773,951 919,481 – –

Revolving credits
– secured (c) 43,220 63,260 – –

817,171 982,741 – –

Current
Secured
Term loans (a) 162,353 209,282 – –
Revolving credits (c) 17,527 5,036 – –

179,880 214,318 – –

Unsecured
Term loans (b) – 533,152 – –
Revolving credits (c) 1,043,080 598,447 714,080 450,298
Commercial papers 600,000 150,000 600,000 150,000

1,643,080 1,281,599 1,314,080 600,298

Total current borrowing 1,822,960 1,495,917 1,314,080 600,298

Total borrowings 2,640,131 2,478,658 1,314,080 600,298

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

34. BORROWINGS (CONT’D.)

(a) Term loans – secured

The term loans are drawndown by:

Group

2020 2019
Note RM’000 RM’000

Gamuda Land (HCMC) Joint Stock Company ("HCMCJSC") (i) 87,353 254,874
Gamuda Land (Kemuning) Sdn. Bhd. ("GL Kemuning") (ii) 414,380 440,761

501,733 695,635

(i) On 30 March 2016, HCMCJSC, a subsidiary of the Company had drawdown the term loan for the purpose of
financing the working capital of the Celadon City project. The term loan bore interest rate ranging from 3.04% to
6.90% (2019: 4.09% to 5.23%) per annum.

The term loan is secured by leasehold land under development as disclosed in Note 13.

(ii) On 30 June 2016, GL Kemuning, a subsidiary of the Company had drawdown the term loan for the purpose of part
financing the acquisition of a leasehold land. On 17 November 2017, the Company has drawdown term loans for
the purpose of part financing of the twenty.five.7 project. GL Kemuning had drawdown additional term loan of
RM22,127,000 during the year. The term loans bore interest rate at a range of 3.54% to 4.41% (2019: 4.41% to
4.61%).

The term loan is secured by leasehold land under development as disclosed in Note 13.

Term loans are repayable as follows:

Group

2020 2019
RM’000 RM’000

Less than one year 162,353 209,282

Later than one year but not later than two years 125,528 74,630
More than two years and less than five years 213,852 382,457
Five years or more – 29,266

501,733 695,635

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– 31 July 2020

34. BORROWINGS (CONT’D.)

(b) Term loans – unsecured

The term loans are drawndown by:

Group

2020 2019
Note RM’000 RM’000

Gamuda (Singapore) Pte. Ltd. ("GB Singapore") (i) – 150,750

Megah Capital Sdn. Bhd. ("Megah Capital") (ii) 434,571 815,530

434,571 966,280

(i) On 26 September 2016, GB Singapore, a subsidiary of the Company had drawdown the term loan from Malayan
Banking Berhad in Singapore, to finance the working capital of GEM Residences project. The term loan is secured
by a corporate guarantee of the Company and bore interest rate of 3.43% (2019: 3.43%) per annum. GB Singapore
has fully repaid the term loan on 16 June 2020.

(ii) On 16 July 2015, as disclosed in Note 35, Megah Capital had swapped its term loan of USD100,000,000 at floating
USD interest rate of LIBOR plus 1.30% per annum through cross currency interest rate swap into RM379,500,000
at fixed rate of 4.58% per annum. Megah Capital has fully repaid the term loan on 16 July 2020.

On 30 October 2016 and 21 March 2017, as disclosed in Note 35, Megah Capital had swapped its term loans of
USD50,000,000 and USD50,000,000 respectively, at floating USD interest rate through cross currency interest rate
swap into RM207,000,000 and RM221,500,000 at fixed rate of 4.33% and 4.48% per annum, respectively.

The term loans mature five years from the date of first drawdown and is subject to offsetting arrangements as
disclosed in Note 43.

Term loans are repayable as follows:

Group

2020 2019
RM’000 RM’000

Less than one year – 533,152

Later than one year but not later than two years 434,571 –
More than two years and less than five years – 433,128

434,571 966,280

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

34. BORROWINGS (CONT’D.)

(c) Revolving credits

The revolving credits are drawndown by:

Group

2020 2019
Note RM’000 RM’000

Secured
Jade Homes Sdn. Bhd. ("Jade Homes") (i) 60,747 68,296

Revolving credits are repayable as follows:

Group

2020 2019
RM’000 RM’000

Less than one year 17,527 5,036

Later than one year but not later than two years 20,040 20,040
More than two years and less than five years 23,180 43,220

60,747 68,296

(i) On 1 August 2016, Jade Homes, a subsidiary of the Company, had drawdown the revolving credit from Public Bank
Berhad for the development cost of ongoing projects. The revolving credit is secured with a parcel of vacant
development land and bore interest rate of 4.12% (2019: 4.58%) per annum.

The revolving credit is secured by freehold land as disclosed in Note 13.

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Unsecured
Gamuda Berhad 714,080 450,298 714,080 450,298
Gamuda Naim Engineering and
Construction (GNEC) Sdn. Bhd. 129,000 118,000 – –
Gamuda Singapore Pte. Ltd. – 30,149 – –
Megah Capital Sdn. Bhd. 200,000 – – –

1,043,080 598,447 714,080 450,298

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– 31 July 2020

34. BORROWINGS (CONT’D.)

The weighted average effective interest rates for long term and short term borrowings (per annum) as at reporting date
are as follows:

Group Company

2020 2019 2020 2019

% % % %

Commercial papers 2.87 3.43 2.87 3.43

Revolving credits
Secured
– Ringgit Malaysia 4.12 4.58 – –
Unsecured
– Ringgit Malaysia 2.76 3.98 3.94 3.94
– Singapore Dollar – 3.35 – –
– US Dollar 3.47 3.90 3.47 3.90
– Taiwan Dollar 1.33 – – –

Term loans
– US Dollar 2.01 2.78 – –
– Vietnam Dong 5.34 5.70 – –
– Ringgit Malaysia 3.54 4.41 – –
– Singapore Dollar – 3.43 – –

35. DERIVATIVE LIABILITIES

Group

2020 2019
RM’000 RM’000

Cross currency interest rate swaps (6,071) (7,530)

The Group uses cross currency interest rate swap to manage some of the transaction exposure.

These contracts are not designated as cash flow or fair value hedges and are entered into for periods consistent with
currency transaction exposure and fair value changes exposure. Such derivatives do not qualify for hedge accounting.

At the reporting date, the Group loans denominated in United States Dollar (“USD”) amounting to USD100,000,000 (“USD
loan”) and at the same time entered into a cross currency interest rate swap (“CCIRS”). The CCIRS is to hedge against
interest rate and foreign exchange movements for the USD loan. This facility has been accounted for as embedded derivative
and measured at fair value through profit or loss.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

35. DERIVATIVE LIABILITIES (CONT’D.)

Contract amount CCIRS Maturity

The Group:
(a) USD50,000,000 (i) Pays fixed RM interest rate of 4.33% per annum on the RM contract 29 Oct 2021
(RM207,000,000) amount in exchange for receiving floating USD interest rate on the
USD contract amount; and

(ii) Receives USD in exchange for paying RM at a predetermined rate of 29 Oct 2021
RM4.14 to USD1.000; according to the scheduled principal and interest
repayment.

Effectively, the Group had swapped the USD50,000,000 loan to RM207,000,000 loan at RM fixed interest rate of 4.33%
per annum.

Contract amount CCIRS Maturity

The Group:
(b) USD50,000,000 (i) Pays RM fixed interest rate of 4.48% per annum on the RM contract 29 Oct 2021
(RM221,500,000) amount in exchange for receiving floating USD interest rate on the
USD contract amount; and

(ii) Receives USD in exchange for paying RM at a predetermined rate of 29 Oct 2021
RM4.43 to USD1.000; according to the scheduled principal and interest
repayment.

Effectively, the Group had swapped the USD50,000,000 loan to RM221,500,000 loan at RM fixed interest rate of 4.48%
per annum.

Derivatives are neither past due nor impaired and are placed with or entered into with reputable financial institutions with
high credit ratings and no history of default.

During the financial year, the Group recognised a gain of RM1,459,000 (2019: RM2,957,000) arising from fair value changes
of derivative. The fair value changes are attributable to changes in interest rate and foreign exchange rate. The Group’s
USD loan and CCIRS’s offset arrangement and the method and assumptions applied in determining the fair values of
derivatives are disclosed in Note 43.

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– 31 July 2020

36. DUE TO SUBSIDIARIES

Company

2020 2019
RM’000 RM’000

Non-current
Due to subsidiaries
– trade 7,766 –

Current
Due to subsidiaries
– trade 210,498 128,214
– non-trade 140,406 40,235

350,904 168,449

Total amounts due to subsidiaries 358,670 168,449

The trade amounts due to subsidiaries have a normal credit term which ranges from 30 to 90 days (2019: 30 to 90 days).

The non-trade amounts due to subsidiaries are unsecured, interest free and repayable on demand.

37. PROVISION FOR LIABILITIES

Provision for liabilities of the Group is analysed as follows:

Group

2020 2019
RM’000 RM’000
(Restated)

Current 171,660 74,573

Non-current 111,309 29,978

282,969 104,551

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– 31 July 2020

37. PROVISION FOR LIABILITIES (CONT’D.)

Provision for
Provision for Provision for Provision Provision for Provision for rehabilitation
development affordable for club heavy foreseeable and
costs housing membership repairs losses restoration
Note (a) Note (b) Note (c) Note (d) Note (e) Note (f) Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 1 August 2019 (as previously stated) 62,132 24,120 1,340 19,031 – – 106,623
Effect of adoption of MFRS 123
(Note 2.2(c)) – (2,072) – – – – (2,072)

At 1 August 2019 (as restated) 62,132 22,048 1,340 19,031 – – 104,551

Provision during the year 27,212 34,466 160 4,358 8,218 191,884 266,298
Utilisation during the year (42,705) (15,859) (740) – – (23,450) (82,754)
Unused amount reversed (5,126) – – – – – (5,126)

At 31 July 2020 41,513 40,655 760 23,389 8,218 168,434 282,969

At 1 August 2018 (as previously stated) 51,261 10,404 2,071 19,031 – – 82,767
Effect of adoption of MFRS 123
(Note 2.2(c)) – (1,007) – – – – (1,007)

At 1 August 2018 (as restated) 51,261 9,397 2,071 19,031 – – 81,760

Provision during the year 24,149 33,738 490 4,680 – – 63,057
Utilisation during the year (5,058) (21,087) (541) (4,680) – – (31,366)
Unused amount reversed (8,220) – (680) – – – (8,900)

At 31 July 2019 (as restated) 62,132 22,048 1,340 19,031 – – 104,551

Recognised in profit or loss during the financial year: (Note 7)

Group

2020 2019
RM’000 RM’000

Net provision for club membership 160 (190)

Provision for heavy repairs 4,358 4,680

4,518 4,490

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37. PROVISION FOR LIABILITIES (CONT’D.)

(a) Provision for development costs
Provision for development costs is in respect of development projects undertaken by its subsidiaries as they had a
present obligation as a result of a past event and it was probable that an outflow of resources embodying economic
benefits will be required to settle the obligation.

(b) Provision for affordable housing

The provision for affordable housing represents the present obligation for construction of low cost houses.

(c) Provision for club membership

Certain subsidiaries of the Group are obliged to offer club membership via incentive schemes offered.

(d) Provision for heavy repairs

Provision for heavy repairs relates to the estimated costs of the contractual obligations to maintain and restore the
highway infrastructure to a specified standard of serviceability.

(e) Provision for foreseeable losses

Provision for foreseeable losses represents the present obligation for losses expected to be incurred for construction
contracts.

(f) Provision for rehabilitation and restoration

Provision for rehabilitation and restoration relates to the estimated cost of contractual obligations to maintain and
restore the water treatment infrastructure to a specified standard of serviceability.

38. COMMITMENTS
Capital commitments

Group

2020 2019
RM’000 RM’000

Approved and contracted for:

  Property, plant and equipment 9,498 38,021

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– 31 July 2020

39. GUARANTEES
(a) The Company and its joint venture partner, MMC Corporation Berhad ("MMC"), issued parent company guarantees to
guarantee the due performance and obligations of MMC - Gamuda KVMRT (T) Sdn. Bhd. ("Tunnel SB") in the underground
works packages of the Klang Valley Mass Rapid Transit Project Sungai Buloh-Kajang Line ("KVMRT Line 1") and Klang
Valley Mass Rapid Transit Project Sungai Buloh-Serdang-Putrajaya Line ("KVMRT Line 2"). Tunnel SB is equally owned
by MMC and the Company.
During the financial year, the guarantee for KVMRT Line 2 was returned to the Company and its joint venture partner
following the conversion from Project Delivery Partner (”PDP”) model to Turnkey model in the previous financial year.

(b) The Company and its joint venture partner, MMC, have also issued parent company guarantees to guarantee the due
performance and obligations of MMC - Gamuda KVMRT (PDP SSP) Sdn. Bhd. ("PDP SSP") as the PDP of KVMRT Line
2 and subsequently, as Turnkey Contractor of KVMRT Line 2 following the conversion from PDP model to Turnkey
model. PDP SSP is equally owned by MMC and the Company.

(c) The Company and its joint venture partner, Naim Engineering Sdn. Bhd. (“NAIM”) have issued parent company guarantees
to guarantee the due performance and obligations of Naim Gamuda (NAGA) JV Sdn. Bhd. (“NAGA”) in the works package
contract for the development and upgrading of Pan Borneo Highway, Sarawak – WPC-04 (Pantu Junction to Btg Skrang).
The Company owns a 30% stake in NAGA and balance 70% stake is owned by NAIM.

(d) The Company and its partner, WCT Holdings Berhad formed a 51%:49% joint venture (“GWJV”) to undertake the design
and to construct the airfield facilities, tunnel and detention ponds of the New Doha International Airport Project in the
state of Qatar. Pursuant to the conditions of contract, GWJV is required to issue a performance bond of QAR336 million
(approximately RM378 million at the prevailing exchange rate on 31 July 2019) to the client to guarantee the due
performance and obligations of GWJV in the project. In January 2014, GWJV was issued with the initial acceptance
certificate signifying the completion of the project, pending issuance of the final acceptance certificate upon expiry of
the maintenance period in January 2015. The airport commenced operations in April 2014.

On 3 October 2019, the settlement agreement of the project was signed. The final acceptance certificate was issued
and the performance bond issued was returned to GWJV for cancellation.

The guarantees issued by the Company for the contracts in (a), (b) and (c) have not been crystallised because Tunnel SB,
PDP SSP and NAGA have been performed and met their obligations in compliance with the terms of the contract.

The directors are of the opinion that the transactions above have been entered into in the normal course of business.

40. MATERIAL LITIGATION

The Group and the Company are not engaged in any material litigation.

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– 31 July 2020

41. SIGNIFICANT RELATED PARTY TRANSACTIONS

(a) In addition to transactions detailed elsewhere in the financial statements, the Group and the Company had the following
transactions with related parties during the financial year:

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Professional services rendered by Raja Eleena,

Siew Ang & Associates, a firm in which a
director, YTM Raja Dato’ Seri Eleena binti
Almarhum Sultan Azlan Muhibbuddin Shah
Al-Maghfur-lah, has interest 1,358 816 – –

Rental received from subsidiaries – – (5,352) (5,285)

Interest receivable from subsidiaries – – (161,783) (153,716)

Dividend received from:

– subsidiaries – – 89,046 166,288
– associates 121,383 776,048 100,053 771,518
– joint ventures 267,000 175,800 267,000 175,800

The directors are of the opinion that the transactions above have been entered into in the normal course of business.

(b) Compensation of key management personnel (“KMP”):

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling
the activities of the entity either directly or indirectly.

The remuneration of key management personnel during the year was as follows:

Total KMPs’ remuneration

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Total 13,420 15,842 12,676 14,533

The details of Board of Directors’ remuneration are disclosed in Note 6.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

42. SIGNIFICANT EVENTS

(a) Proposed offers from MOF in relation to toll highway concessions
(Status: Considered lapsed)
On 21 June 2019, KESAS Holdings Berhad (“KESAS Holdings”), Gamuda’s 70% owned subsidiary, received a Letter of
Offer from Ministry of Finance Incorporated (“MOF”) in respect of its offer to acquire all the securities (including all
ordinary shares, preference shares and loan stocks) of KESAS Sdn. Bhd. (“KESAS Offer”). KESAS is a wholly owned
subsidiary of KESAS Holdings.

Simultaneously, each of the following associated companies and a joint venture company of Gamuda had on 21 June
2019, received a Letter of Offer from MOF for the following acquisitions:

(a) Sistem Penyuraian Trafik KL Barat Holdings Sdn. Bhd. (“SPRINT Holdings”), Gamuda’s 52% associated company,
received a Letter of Offer from MOF in respect of its offer to acquire all the securities (including all ordinary
shares, preference shares and loan stocks) of Sistem Penyuraian Trafik KL Barat Sdn. Bhd. (“SPRINT Offer”).
SPRINT is a wholly-owned subsidiary of SPRINT Holdings;

(b) Lingkaran Trans Kota Holdings Berhad (“LITRAK Holdings”), Gamuda’s 44% associated company, received a Letter
of Offer from MOF in respect of its offer to acquire all the securities (including all ordinary shares, preference
shares and loan stocks) of Lingkaran Trans Kota Sdn. Bhd. (“LITRAK Offer”). LITRAK is a wholly-owned subsidiary
of LITRAK Holdings; and

(c) Projek SMART Holdings Sdn. Bhd. (“SMART Holdings”), Gamuda’s 50% owned joint venture company received a
Letter of Offer from MOF in respect of its offer to acquire all the securities (including all ordinary shares, preference
shares and loan stocks) of Syarikat Mengurus Air Banjir & Terowong Sdn. Bhd. (“SMART Offer”). SMART is a
wholly-owned subsidiary of SMART Holdings.

(KESAS, SPRINT, LITRAK and SMART shall collectively be referred to as the “Expressway Concession Companies” and
each an “Expressway Concession Company”, and KESAS Holdings, SPRINT Holdings, LITRAK Holdings and SMART
Holdings shall collectively be referred to as the “Concession Holding Companies” and each a “Concession Holding
Company”).

Each Concession Holding Company shall negotiate and finalise the definitive agreements with MOF by 30 August 2019
or such other date as may be mutually agreed (“Cut-Off Date”), subject to the following:
(i) The results of the due diligence exercise being satisfactory to MOF; and
(ii) The approval of Cabinet of Malaysia.

Upon finalisation of the definitive agreements, each Concession Holding Company needs to fulfil the following conditions
precedent (“Conditions Precedent”) by 29 November 2019 or such other date as may be mutually agreed:
(i) The requisite shareholders’ approval for the disposal of respective Expressways Concession Company; and
(ii) The approval or consent of the creditors of the Concession Holding Companies and/or Expressways Concession
Companies, where applicable.

The proposed offer is inter-conditional upon each other.

On 29 August 2019, MOF and each of the Concession Holding Company had mutually agreed to extend the Cut-Off Date
for the finalisation of the respective definitive agreement from 30 August 2019 to 29 February 2020.

Subsequent to 29 February 2020, a new Federal Government took office. No extension of the Cut-Off Date has been
mutually agreed by MOF and each of the Concession Holding Company on the Offers. At this juncture, the Offers are
considered to have lapsed.

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– 31 July 2020

42. SIGNIFICANT EVENTS (CONT’D.)

(b) Appointment as Project Delivery Partner (“PDP”) for Penang Transport Master Plan (“PTMP”) project
The Company’s 60%-owned subsidiary, SRS Consortium Sdn Bhd was appointed as the PDP by the State Government
of Penang to manage and deliver the PTMP and had executed the Master Agreement on 1 July 2020.

The major components of Phase 1 of the project are:

(i) Reclamation Works (Penang South Reclamation Island A);
(ii) The Light Rail Transit (LRT) from George Town to Island A of the Penang South Islands; and
(iii) The Pan Island Link 1 (PIL1) highway.

The implementation of each PTMP component will be formalised at a later stage when the financial architecture is
mutually agreed with the Penang State Government. The PDP fee for the PTMP components varies between 5.0% –
5.75%.

(c) Formalisation of role as Turnkey Contractor for Klang Valley Mass Rapid Transit (“KVMRT”) Sungai Buloh-Serdang-
Putrajaya Line/Line 2 Project
On 17 January 2020, the Company and MMC Corporation Berhad (“MMC”) have formalised the role as Turnkey Contractor
with Mass Rapid Transit Corporation Sdn. Bhd. (“MRT Corp”), from the previous PDP role. The 50%-owned joint venture,
MMC Gamuda KVMRT (PDP SSP) Sdn. Bhd. (“PDP SSP”) will be responsible for the design, execution and completion
of the entire KVMRT SSP Line (for both above ground and underground) on a turnkey basis.

The following agreements were executed in respect of the formalisation of the Turnkey Contractor role:
(i) A Supplemental Agreement to the PDP Agreement between PDP SSP and MRT Corp; and
(ii) A Novation Agreement between PDP SSP, MMC Gamuda KVMRT (T) Sdn. Bhd. and MRT Corp.

(d) Award of construction contract for Seawall for Reclamation project in Taiwan
On 2 January 2020, the Company and Dong-Pi Construction Co. Ltd., a Taiwan company have been awarded the contract
to construct the 4,014 metres Seawall structure amounting to RM932 million (NT$6.82 billion) from Taiwan International
Ports Corporation, a Taiwan state-owned port operation company. The job will be undertaken via an unincorporated
subsidiary, Dong-Pi Gamuda Joint Venture in which the Company and Dong-Pi will hold 70% and 30% respectively.

(e) Proposed rights issue of warrants

(Status: Cancelled)
A renounceable rights issue of warrants in Gamuda (“Warrant(s) F”) on the basis of one (1) Warrant F at an issue price
of RM0.25 per Warrant F for every four (4) existing ordinary shares in Gamuda (“Gamuda Share(s)”) held on an
entitlement date to be determined later (“Proposed Rights Issue of Warrants”); and

On 6 September 2019, Bursa Malaysia Securities Berhad (“Bursa Securities”) granted the Company:
(i) Extension of time until 31 December 2019 for Gamuda to issue the circular in relation to the Proposal to its
shareholders; and
(ii) Extension of time until 26 February 2020, to complete the implementation of the Proposed Rights Issue of Warrants.

The extension of time for (i) and (ii) above was granted as the requisite approvals for the Proposed Acquisition of Toll
Highways by the Government of Malaysia have not been obtained.

On 31 December 2019, the board of directors of Gamuda resolved not to proceed with the Proposed Rights Issue of
Warrants.

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– 31 July 2020

43. FAIR VALUE

Fair value of financial instruments by classes that are not carried at fair value and whose carrying amounts are reasonable
approximation of fair value

Group Company

Carrying Carrying
amount Fair value amount Fair value
Note RM’000 RM’000 RM’000 RM’000

At 31 July 2020

Financial assets:
Current receivables 21 2,046,629 2,046,629 987,924 987,924
Non-current receivables 21 881,901 881,901 11,691 11,691
Contract assets 22 1,701,664 1,701,664 33,465 33,465
Due from subsidiaries 24 – – 3,631,101 3,631,101
Cash and bank balances 25 2,147,202 2,147,202 195,532 195,532

Financial liabilities:
Current payables 30 1,755,300 1,755,300 207,855 207,855
Non-current payables 30 185,093 185,093 67,572 67,572
Due to subsidiaries 36 – – 358,670 358,670
Contract liabilities 22 1,391,997 1,391,997 1,006,232 1,006,232
Islamic debts:
  – Medium term notes 33 2,825,000 2,825,000 2,150,000 2,150,000
Borrowings:
  – Term loans 34 936,304 936,304 – –
  – Revolving credits 34 1,103,827 1,103,827 714,080 714,080
  – Commercial papers 34 600,000 600,000 600,000 600,000

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

43. FAIR VALUE (CONT’D.)

Fair value of financial instruments by classes that are not carried at fair value and whose carrying amounts are reasonable
approximation of fair value (cont’d.)

Group Company

Carrying Carrying
amount Fair value amount Fair value
Note RM’000 RM’000 RM’000 RM’000

At 31 July 2019

Financial assets:
Current receivables 21 1,862,143 1,862,143 881,472 881,472
Non-current receivables 21 1,072,624 1,072,624 88,970 88,970
Contract assets 22 1,604,295 1,604,295 19,425 19,425
Due from subsidiaries 24 – – 2,874,716 2,874,716
Cash and bank balances 25 1,452,272 1,452,272 65,184 65,184

Financial liabilities:
Current payables 30 1,841,814 1,841,814 379,820 379,820
Non-current payables 30 148,300 148,300 62,735 62,735
Due to subsidiaries 36 – – 168,449 168,449
Contract liabilities 22 992,825 992,825 790,073 790,073
Islamic debts:
– Medium term notes 33 2,665,000 2,665,000 1,600,000 1,600,000
Borrowings:
– Term loans 34 1,661,915 1,661,915 – –
– Revolving credits 34 666,743 666,743 450,298 450,298
– Commercial papers 34 150,000 150,000 150,000 150,000

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

43. FAIR VALUE (CONT’D.)

The following methods and assumptions are used to estimate fair values of the following classes of financial instruments:

(i) Non-current receivables, payables and borrowings

The fair value of these financial instruments are estimated by discounting expected future cash flows at market
incremental lending rate/profit rate for similar types of lending or borrowing arrangements or Islamic debts at the
reporting date.

(ii) Cash and bank balances, current receivables and current payables
The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values due to their
short-term nature.

(iii) Financial guarantees

Fair value is determined based on probability weighted discounted cash flow method. The probability has been estimated
and assigned for the following key assumptions:
– The likelihood of the guaranteed party defaulting within the guaranteed period;
– The exposure on the portion that is not expected to be recovered due to the guaranteed party’s default; and
– The estimated loss exposure if the party guaranteed were to default.

Fair value hierarchy

The Group’s and the Company’s financial instruments are analysed in a three level fair value hierarchy based on the
significance of inputs.

The three level of fair value measurement hierarchy are:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group and the Company
can access at the measurement date

Level 2: Input other than quoted prices included within level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: Input for the asset or liability that are not based on observable market data (unobservable input)

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

43. FAIR VALUE (CONT’D.)

Quantitative disclosures of fair value measurement hierarchy for assets and liabilities:

Fair value measurement using

Quoted prices Significant Significant

in active observable unobservable
markets inputs inputs
Total (Level 1) (Level 2) (Level 3)
Group Note RM’000 RM’000 RM’000 RM’000

31 July 2020
Assets not carried at fair values but for which
fair values are disclosed
Investment properties 14 644,989 – – 644,989
Quoted interests in an associated company 18 920,229 920,229 – –

Assets measured at fair value

Other investments:
– Investment in transferable club memberships 20 762 – 762 –
Investment securities 23 644,467 644,467 – –

Liability measured at fair value

Derivative liabilities 35 (6,071) – (6,071) –

31 July 2019
Assets not carried at fair values but for which
fair values are disclosed
Investment properties 14 572,056 – – 572,056
Quoted interests in an associated company 18 1,058,264 1,058,264 – –

Assets measured at fair value

Other investments:
– Investment in transferable club memberships 20 762 – 762 –
Investment securities 23 396,664 396,664 – –

Liability measured at fair value

Derivative liabilities 35 (7,530) – (7,530) –

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

43. FAIR VALUE (CONT’D.)

Quantitative disclosures fair value measurement hierarchy for assets and liabilities: (cont’d.)

Fair value measurement using

Quoted prices Significant Significant

in active observable unobservable
markets inputs inputs
Total (Level 1) (Level 2) (Level 3)
Company Note RM’000 RM’000 RM’000 RM’000

31 July 2020
Assets not carried at fair values but for which
fair values are disclosed
Investment properties 14 59,800 – – 59,800
Quoted interests in an associated company 18 920,229 920,229 – –

Assets measured at fair value

Other investments:
– Investment in transferable club memberships 20 683 – 683 –
Investment securities 23 581,850 581,850 – –

31 July 2019
Assets not carried at fair values but for which
fair values are disclosed
Investment properties 14 54,144 – – 54,144
Quoted interests in an associated company 18 1,058,264 1,058,264 – –

Assets measured at fair value

Other investments:
– Investment in transferable club memberships 20 683 – 683 –
Investment securities 23 340,371 340,371 – –

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

43. FAIR VALUE (CONT’D.)

Financial instruments subject to offsetting arrangements
The Group entered into a Cross Currency Interest Rate Swap (“CCIRS”) to hedge against foreign currency and interest rate
movements for term loans which have an arrangement to settle simultaneously on due dates at a net basis.

The Group’s borrowings and derivatives that are off-set are as follows:

Gross Gross
carrying amounts Net
amount offset amounts
RM’000 RM’000 RM’000

As at 31 July 2020
Derivatives (Note 35) (6,071) 6,071 –
Borrowings (Note 34(b)) (428,500) (6,071) (434,571)

As at 31 July 2019
Derivatives (Note 35) (7,530) 7,530 –
Borrowings (Note 34(b)) (808,000) (7,530) (815,530)

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group and the Company are exposed to financial risks arising from their operations and the use of financial instruments.
The key financial risks include credit risk, liquidity risk, interest rate risk, market risk and foreign currency risk.

The Group operates within clearly defined guidelines that are approved by the Board.

The following sections provide details regarding the Group’s and Company’s exposure to the above-mentioned financial
risks and the objectives, policies and processes for the management of these risks.

(a) Credit risk

Credit risk is the risk of loss that a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade
receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange
transactions and other financial instruments.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(a) Credit risk (cont’d.)
Trade receivables and contract assets
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive
credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer
receivables and contract assets are regularly monitored.

An impairment analysis is performed at each reporting date using provision matrix to measure expected credit losses.
The provision rates are based on days past due for groupings of various customer segments with similar loss patterns
(i.e. by geographical region, product type, customer type and rating). The calculation reflects the probability-weighted
outcome, the time value of money and reasonable and supportable information that is available at the reporting date
about past events, current conditions and forecasts of future economic conditions. Generally, trade receivables are
written-off if past due for more than one year and are not subject to enforcement activity. The maximum exposure to
credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 21. The Group
does not hold collateral as security. The Group evaluates the credit risk with respect to trade receivables and contract
assets as low as there is no concentration of trade receivables except as disclosed in Note 21. The directors do not
foresee any issue in recovering the receivable amount.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Group’s treasury department in
accordance with the Group’s policy. The Group invests only on quoted debt securities with very low credit risk.

The Group’s maximum exposure to credit risk for the components of the statement of financial position at 31 July 2020
and 2019 is the carrying amount as illustrated in Note 43 except for derivative financial instruments. The Group’s
maximum exposure relating to financial derivative instruments is noted in the liquidity table below.

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– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(a) Credit risk (cont’d.)
Credit risk concentration profile
The Group determines concentrations of credit risk by monitoring the country and industry sector profile of its trade
receivables on an ongoing basis. The credit risk concentration profile of the Group’s trade receivables at the reporting
date are as follows:

Group

2020 2019

RM’000 % of total RM’000 % of total

By country:
Malaysia 1,833,914 80% 2,141,669 86%
Vietnam 431,482 19% 322,890 13%
India 18,907 1% 19,997 1%
Others 3,266 0% 201 0%

2,287,569 100% 2,484,757 100%

By industry sectors:
Engineering and construction 725,894 32% 889,917 36%
Property development and club operations 671,226 29% 691,945 28%
Water and expressway concessions 890,449 39% 902,895 36%

2,287,569 100% 2,484,757 100%

For the purpose of the above analysis, the following are included:

Group

2020 2019
RM’000 RM’000

Trade receivables – third parties 1,753,550 1,704,543

Due from associated companies – trade 19,805 20,023
Due from joint venture partners – trade 26,240 12,859
Due from joint ventures – trade 487,974 747,332

2,287,569 2,484,757

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(b) Liquidity risk
Liquidity risk is the risk that the Group or the Company will encounter difficulty in meeting financial obligations due
to shortage of funds. The Group’s and the Company’s exposure to liquidity risk arises primarily from mismatches of
the maturities of financial assets and liabilities. The Group’s and the Company’s objective is to maintain a balance
between continuity of funding and flexibility through the use of stand-by bank borrowings.

At the reporting date, approximately 46% (2019: 42%) of the Group’s debts and borrowings (Notes 33 and 34) will
mature in less than one year based on the carrying amount reflected in the financial statements. Approximately 49%
(2019: 41%) of the Company’s debts and borrowings (Notes 33 and 34) will mature in less than one year at the reporting
date.

Analysis of financial instruments by remaining contractual maturities

The table below summarises the maturity profile of the Group’s and the Company’s liabilities at the reporting date
based on contractual undiscounted repayment obligations.

2020

On demand
or within One to Over five
one year five years years Total
Group RM’000 RM’000 RM’000 RM’000

Financial liabilities:
Trade and other payables 1,755,300 185,093 – 1,940,393
Islamic debts
– Principal 690,000 1,385,000 750,000 2,825,000
– Profit 115,172 229,615 115,918 460,705
Borrowings
– Principal 1,822,960 817,171 – 2,640,131
– Interest 43,530 28,077 – 71,607

Total undiscounted financial liabilities 4,426,962 2,644,956 865,918 7,937,836

2019

On demand
or within One to Over five
one year five years years Total
Group RM’000 RM’000 RM’000 RM’000

Financial liabilities:
Trade and other payables 1,841,814 148,300 – 1,990,114
Islamic debts
– Principal 690,000 1,975,000 – 2,665,000
– Profit 109,029 185,756 – 294,785
Borrowings
– Principal 1,495,917 953,476 29,265 2,478,658
– Interest 80,335 77,495 376 158,206

Total undiscounted financial liabilities 4,217,095 3,340,027 29,641 7,586,763

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(b) Liquidity risk (cont’d.)
Analysis of financial instruments by remaining contractual maturities (cont’d.)

2020

On demand
or within One to Over five
one year five years years Total
Company RM’000 RM’000 RM’000 RM’000

Financial liabilities:
Trade and other payables 207,855 67,572 – 275,427
Due to subsidiaries 350,904 7,766 – 358,670
Islamic debts
– Principal 400,000 1,000,000 750,000 2,150,000
– Profit 92,390 199,537 115,918 407,845
Borrowings
– Principal 1,314,080 – – 1,314,080
– Interest 6,418 – – 6,418

Total undiscounted financial liabilities 2,371,647 1,274,875 865,918 4,512,440

2019

On demand
or within One to Over five
one year five years years Total
Company RM’000 RM’000 RM’000 RM’000

Financial liabilities:
Trade and other payables 379,820 62,735 – 442,555
Due to subsidiaries 168,449 – – 168,449
Islamic debts
– Principal 300,000 1,300,000 – 1,600,000
– Profit 70,446 132,896 – 203,342
Borrowings
– Principal 600,298 – – 600,298
– Interest 4,267 – – 4,267

Total undiscounted financial liabilities 1,523,280 1,495,631 – 3,018,911

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(c) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Group’s and the Company’s financial
instruments will fluctuate because of changes in market interest rates.

The Group’s and the Company’s exposure to interest rate risk arises primarily from their loans and borrowings.

The Group’s policy is to manage interest cost using a mix of fixed and floating rate debts. At the reporting date,
approximately 71% (2019: 71%) of the Group’s borrowings are at fixed rates of interest.

Sensitivity analysis for interest rate risk

At the reporting date, if interest rates had been 25 basis points lower/higher, with all other variables held constant,
the Group’s profit net of tax would have been RM3,062,000 (2019: RM2,875,000) higher/lower, arising mainly as a result
of lower/higher interest expense on floating rate loans and borrowings. The assumed movement in basis points for
interest rate sensitivity analysis is based on the currently observable market environment.

(d) Market price risk

Market price risk is the risk that the fair value or the future cash flows of the Group’s and the Company’s financial
instruments will fluctuate because of changes in market prices (other than interest or exchange rates).

The Group is exposed to market price risk arising from its investment in management fund. These instruments are
classified as held for trading financial assets. The Group does not have exposure to commodity price risk

Sensitivity analysis for market price risk

As at reporting date, if the quoted prices of the investment securities had been 5% higher/lower, with all other variables
held constant, the Group and the Company’s profit for the year would have been RM32,223,400 (2019: RM19,833,200)
and RM29,092,500 (2019: RM17,018,600) higher/lower.

(e) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.

Transactions in foreign operation are mainly denominated in the functional currency of the country it operates, and
other foreign currency transactions are kept to an acceptable level. The Group’s revenue that are denominated in
foreign currencies are as disclosed in Note 46.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(e) Foreign currency risk (cont’d.)
Included in the following statements of financial position captions of the Group and of the Company as at the reporting
date are balances denominated in the following major foreign currencies:

United
Vietnam Australian Singapore States Taiwan Indian Qatari Bahraini Pound
Dong Dollar Dollar Dollar Dollar Rupee Riyal Dinar Sterling Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 July 2020
Cash and bank
balances 1,014,724 53,728 10,997 58,694 10,056 42,878 1,451 291 19,580 1,212,399
Receivables 876,330 24,577 261 63 155,626 21,533 13,597 6 7,135 1,099,128
Payables (874,010) (15,903) (8,292) (45) (30,014) (1,423) (14,235) (1,899) (436) (946,257)
Borrowings (87,353) – – – (66,770) – – – – (154,123)

At 31 July 2019
Cash and bank
balances 826,930 16,977 563 1,052 – 42,075 4,536 434 – 892,567
Receivables 1,349,163 1,809 68 90 – 23,534 13,330 5 – 1,387,999
Payables (631,817) (3,039) (140) (51) – (1,477) (13,721) (14,401) – (664,646)
Borrowings (254,874) – (180,900) – – – – – – (435,774)

United
Australian Singapore Taiwan States Qatari Bahraini
Dollar Dollar Dollar Dollar Riyal Dinar Total
Company RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

At 31 July 2020:
Cash and bank balances 28,754 9,463 4,908 58,592 1,451 291 103,459
Receivables 23,424 261 6,421 – 13,597 6 43,709
Payables (15,002) (8,242) (640) – (14,235) (1,899) (40,018)
Borrowings – – (66,770) – – – (66,770)

At 31 July 2019:
Cash and bank balances – 356 – 1,019 4,536 434 6,345
Receivables – 68 – – 13,330 5 13,403
Payables – (116) – – (13,721) (14,401) (28,238)

The Group is also exposed to currency translation risk arising from its net investments in foreign operations, including
Vietnam, Australia, Singapore, Taiwan, India, Bahrain and Qatar. The Group maintains a natural hedge, whenever possible,
by borrowing in the currency of the country in which the business is located.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D.)

(e) Foreign currency risk (cont’d.)
Sensitivity analysis for foreign currency risk
The following table demonstrates the sensitivity of the Group’s profit before tax to a reasonably possible change in the
VND, AUD, SGD, USD, TWD, INR, QR, BHD and GBP exchange rates against the respective functional currencies of the
Group entities, with all other variables held constant.

Total profit for the year

Group Company
Increase/(decrease) Increase/(decrease)
2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000

VND/RM strengthened 5% (2019: 5%) 46,485 64,470 – –

weakened 5% (2019: 5%) (46,485) (64,470) – –

AUD/RM strengthened 5% (2019: 5%) 3,120 787 1,859 –

weakened 5% (2019: 5%) (3,120) (787) (1,859) –

SGD/RM strengthened 5% (2019: 5%) 148 (9,020) 74 15

weakened 5% (2019: 5%) (148) 9,020 (74) (15)

USD/RM strengthened 5% (2019: 5%) 2,936 55 2,930 51

weakened 5% (2019: 5%) (2,936) (55) (2,930) (51)

TWD/RM strengthened 5% (2019: 5%) 3,445 – (2,804) –

weakened 5% (2019: 5%) (3,445) – 2,804 –

INR/RM strengthened 5% (2019: 5%) 3,149 3,206 – –

weakened 5% (2019: 5%) (3,149) (3,206) – –

QR/RM strengthened 5% (2019: 5%) 41 208 41 208

weakened 5% (2019: 5%) (41) (208) (41) (208)

BHD/RM strengthened 5% (2019: 5%) (80) (698) (80) (698)

weakened 5% (2019: 5%) 80 698 80 698

GBP/RM strengthened 5% (2019: 5%) 1,314 – – –

weakened 5% (2019: 5%) (1,314) – – –

45. CAPITAL MANAGEMENT

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital
ratios in order to support its business and maximise shareholder value. The capital management approaches remain unchanged
for the current and previous years.

The Group monitors and maintains a prudent level of net gearing ratio, which is net debt divided by total capital, to optimise
shareholders value and to ensure compliance under debt covenants.

The Group includes within net debt, subordinate debts and borrowings less cash and bank balances and investment securities.
Capital includes equity attributable to the owners of the parent and non-controlling interests.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

45. CAPITAL MANAGEMENT (CONT’D.)

Group Company

2020 2019 2020 2019

RM’000 RM’000 RM’000 RM’000

Islamic debts 2,825,000 2,665,000 2,150,000 1,600,000

Borrowings 2,640,131 2,478,658 1,314,080 600,298
Less: Cash and bank balances (2,147,202) (1,452,272) (195,532) (65,184)
Investment securities (644,467) (396,664) (581,850) (340,371)

Net debt 2,673,462 3,294,722 2,686,698 1,794,743

Equity attributable to the owners

of the Company 8,541,092 8,062,623 6,161,543 5,915,003
Non-controlling interests 426,502 399,317 – –

Total capital 8,967,594 8,461,940 6,161,543 5,915,003

Net gearing ratio 30% 39% 44% 30%

46. SEGMENT INFORMATION

The Group reporting is organised and managed in three major business units. The segments are organised and managed to
the nature of products and services, specific expertise and technologies requirements, which requires different business and
marketing strategies. The reportable segments are summarised as follows:

(i) Engineering and construction – the construction of highways and bridges, airfield facilities, railway, tunnel, water
treatment plants, dams, general and trading services related to construction activities;

(ii) Property development and club operations – the development of residential and commercial properties and club
operations; and

(iii) Water and expressway concessions – the management of water supply and tolling of highway operations.

The Group’s chief operating decision maker monitors the operating results of its business segments separately for the
purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated
based on operating profit or loss which, in certain respects as explained in the table below, is measured differently from
operating profit or loss in the consolidated financial statements.

Transfer pricing between operating segments are on an arm’s length basis in a manner similar to transactions with third
parties.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

46. SEGMENT INFORMATION (CONT’D.)

Property
Engineering development Water and
and and club expressway
construction operations concessions Eliminations Consolidated
RM’000 RM’000 RM’000 RM’000 Note RM’000

2020
Revenue
Revenue as reported 1,835,784 1,346,788 480,392 – 3,662,964
Share of revenue of joint ventures 2,953,308 173,742 14,909 – 3,141,959

4,789,092 1,520,530 495,301 – 6,804,923

Inter-segment sales 354,370 – – (354,370) A –

Total revenue 5,143,462 1,520,530 495,301 (354,370) 6,804,923

Result
Profit from operations 59,443 253,451 251,582 – 564,476
Impairment of property, plant and
equipment of GIBS (148,100) – – – (148,100)
Finance costs (5,778) (91,271) (42,291) – (139,340)
Share of profits of associated
companies 137 – 116,108 – 116,245
Share of profits of joint ventures 185,496 10,620 (3,935) – 192,181

Profit before tax 91,198 172,800 321,464 – 585,462

Income tax expense (161,272)

Profit for the year 424,190

Non-controlling interest (52,510)
Profit attributable to Owners of the
Company 371,680

Core profit before tax 239,298 172,800 321,464 – 733,562

Less: Impairment of property, plant
and equipment of GIBS (148,100) – – – (148,100)

Profit before tax as reported 91,198 172,800 321,464 – 585,462

346 07 Financial Statements

 ANNUAL REPORT 2020

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

46. SEGMENT INFORMATION (CONT’D.)

Property
Engineering development Water and
and and club expressway
construction operations concessions Eliminations Consolidated
RM’000 RM’000 RM’000 RM’000 Note RM’000

2020 (cont’d.)
Assets and liabilities
Segment assets excluding interests
in associated companies and
joint arrangements 3,646,742 10,289,712 2,580,956 – 16,517,410
Interests in associated companies 8,533 – 944,254 – 952,787
Interests in joint arrangements 169,725 847,235 40,388 – 1,057,348

18,527,545
Segment liabilities
  Other liabilities (2,226,669) (1,468,729) (399,422) – (4,094,820)
  Borrowings (828,290) (4,183,614) (453,227) – (5,465,131)

(9,559,951)

Other information
Depreciation and amortisation 49,900 34,985 138,242 – 223,127
Non-cash items other than
depreciation and amortisation 147,412 2,817 4,938 – B 155,167
Additions to non-current assets 51,929 539,645 186,675 – C 778,249

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

46. SEGMENT INFORMATION (CONT’D.)

Property
Engineering development Water and
and and club expressway
construction operations concessions Eliminations Consolidated
RM’000 RM’000 RM’000 RM’000 Note RM’000

2019 (Restated)
Revenue
Revenue as reported 1,939,326 2,146,457 479,279 – 4,565,062
Share of revenue of joint ventures 2,198,418 400,403 17,315 – 2,616,136

4,137,744 2,546,860 496,594 – 7,181,198

Inter-segment sales 494,819 – – (494,819) A –

Total revenue 4,632,563 2,546,860 496,594 (494,819) 7,181,198

Result
Profit from operations 178,303 298,829 228,133 – 705,265
Finance costs (21,592) (68,041) (27,688) – (117,321)
Share of profits of associated
companies 20,207 – 106,427 – 126,634
Share of profits of joint ventures 105,935 83,840 (3,241) – 186,534

Profit before tax 282,853 314,628 303,631 – 901,112

Income tax expense (148,844)

Profit for the year 752,268

Non-controlling interest (52,082)
Profit attributable to Owners of the
Company 700,186

348 07 Financial Statements

 ANNUAL REPORT 2020

Notes to the Financial Statements (Cont’d.)

– 31 July 2020

46. SEGMENT INFORMATION (CONT’D.)

Property
Engineering development Water and
and and club expressway
construction operations concessions Eliminations Consolidated
RM’000 RM’000 RM’000 RM’000 Note RM’000

2019 (Restated) (cont’d.)

Assets and liabilities
Segment assets excluding interests
in associated companies and
joint arrangements 3,272,814 9,254,552 2,480,929 – 15,008,295
Interests in associated companies 9,297 – 961,492 – 970,789
Interests in joint arrangements 236,229 920,780 44,323 – 1,201,332

17,180,416
Segment liabilities
  Other liabilities (1,969,079) (1,136,052) (469,687) – (3,574,818)
  Borrowings (777,122) (3,846,941) (519,595) – (5,143,658)

(8,718,476)

Other information
Depreciation and amortisation 38,586 24,443 129,099 – 192,128
Non-cash items other than
  depreciation and amortisation 42,680 1,755 5,174 – B 49,609
Additions to non-current assets 191,455 550,913 14,178 – C 756,546

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

46. SEGMENT INFORMATION (CONT’D.)

Nature of adjustments and eliminations to arrive at amounts reported in the consolidated financial statements

A Inter-segment revenues are eliminated on consolidation.

B Other material non-cash expenses/(income) consist of the following items as presented in the respective notes to the
financial statements:

2020 2019
RM’000 RM’000

Property, plant and equipment written off 2,753 31

Unrealised loss on foreign exchange – 31
Net fair value gains on derivatives (1,459) (2,957)
Provisions 153,873 52,504

155,167 49,609

C Additions to non-current assets consist of:

2020 2019
Note RM’000 RM’000

Property, plant and equipment 12 175,384 253,790

Investment properties 14 9,882 88,522
Land held for property development 13(a) 406,823 400,983
Expressway and water development expenditure 16 186,160 13,251

778,249 756,546

Additions to non-current assets excludes interests in associated companies and interests in joint arrangements.

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Notes to the Financial Statements (Cont’d.)

– 31 July 2020

46. SEGMENT INFORMATION (CONT’D.)

Geographical information

Revenues Non-current assets

2020 2019 2020 2019
RM’000 RM’000 RM’000 RM’000

Malaysia 2,586,380 3,188,593 5,991,210 6,231,521

Outside Malaysia
– Vietnam 877,608 1,356,879 990,440 700,254
– Australia 41,593 19,590 1,967 –
– Taiwan 157,383 – 622 548
– Others – – 7,145 –

1,076,584 1,376,469 1,000,174 700,802

Consolidated 3,662,964 4,565,062 6,991,384 6,932,323

Share of revenue of joint ventures

– Malaysia 3,100,679 2,387,852
– Singapore 41,280 228,284

Total revenue 6,804,923 7,181,198

Non-current assets information presented above consist of the following items as presented in the consolidated statement
of financial position:

2020 2019
RM’000 RM’000

Property, plant and equipment 1,063,066 1,155,510

Land held for property development 3,169,895 2,919,183
Investment properties 455,501 432,815
Land use right – 1,470
Right-of-use assets 15,138 –
Concession development expenditure 1,355,472 1,306,472
Other investments 812 812
Deferred tax assets 40,665 41,767
Receivables 890,835 1,074,294

6,991,384 6,932,323

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GAMUDA BERHAD 197601003632 (29579-T)

List of Major Properties

Held as at 31 July 2020

Approximate
Year of age of
Valuation/ Year building NBV
No Location Tenure Usage Area Acquisition of expiry (Years) (RM’000)

1 Block D, PJ Trade Centre Leasehold 20 storey 2,048 2011 2104 11 128,340

No. 8, Jalan PJU 8/8A office tower/ sq m
Bandar Damansara Perdana Menara Gamuda
47820 Petaling Jaya
Selangor
2 No. 30, Jalan SS2/44 Freehold Bungalow 501 1991 – 34 278
47300 Petaling Jaya sq m
Selangor
3 No. 36/38, Jalan SS21/62 Freehold 2 blocks, 286 1991 – 26 863
47400 Petaling Jaya 4 storey sq m
Selangor shoplot/office
4 No. 39, Jalan SS22/23 Freehold 4 storey 153 2007 – 26 533
47400 Petaling Jaya shoplot/office sq m
Selangor
5 No. 53, Jalan SS22/23 Freehold 4 storey 153 2006 – 31 1,158
47400 Petaling Jaya shoplot/office sq m
Selangor
6 No. 55-61, Jalan SS22/23 Freehold 4 blocks, 612 1992 – 29 7,313
47400 Petaling Jaya 4 storey sq m
Selangor shoplot/office
7 No. 54-58, Jalan SS22/25 Freehold 3 blocks, 460 2006 – 28 4,087
47400 Petaling Jaya 4 storey sq m
Selangor shoplot/office
8 HS (D) 54871, PT No. 56274 Freehold Industrial 16,898 1995 – – 6,735
Mukim & District of Kelang estate/workshop sq m
Selangor
9 Lot 66100, Geran 331933 Freehold Industrial Land/ 66 2016 – 2 173,497
Mukim of Tanjung Duabelas Industrial acres
District of Kuala Langat Building System
Selangor (“IBS”) factory
10 Lot 195821, 195822 Leasehold Granite hill, 469,493 1991 2022 – 1,044
195823, 195824, 195825 limestone hill sq m
195826, 195827, 46482 and industrial
57417 all in the Mukim of Kampar land/quarry
District of Kinta, 31350 Ipoh, Perak
11 PT 183485 Leasehold Industrial estate/ 12,144 1991 2050 24 459
Meru Industrial Estate store sq m
Jelapang, 30020 Ipoh, Perak
12 PT 51683, Jalan Jelapang Leasehold Industrial estate/ 4,353 1991 2043 30 294
30020 Ipoh, Perak workshop sq m
13 No. 152, Jalan Gopeng Leasehold 3 storey 164 1991 2078 34 122
31350 Ipoh, Perak shoplot/office sq m
14 No. 158, Jalan Gopeng Leasehold 3 storey 163 1991 2078 34 129
31350 Ipoh, Perak shoplot/office sq m

352 08 List of Major Properties

 ANNUAL REPORT 2020

Analysis of Securities of Company

As at 1 October 2020

ANALYSIS OF SHAREHOLDINGS
Total Number of Issued Shares : 2,513,527,654 ordinary shares
Type of shares : Ordinary shares
Voting rights : 1 vote per share on a poll
No. of shareholders : 17,410

DISTRIBUTION OF SHAREHOLDINGS

No. of No. of
Size of Holdings Holders % Holdings %

Less than 100 526 3.02 11,231 0.00

100 – 1,000 4,518 25.95 3,293,361 0.13
1,001 – 10,000 9,110 52.33 36,362,046 1.45
10,001 – 100,000 2,457 14.11 70,953,141 2.82
100,001 – 125,676,381 (less than 5% of issued shares) 797 4.58 1,933,057,049 76.91
125,676,382 and above (5% and above of issued shares) 2 0.01 469,850,826 18.69

Total 17,410 100.00 2,513,527,654 100.00

SUBSTANTIAL SHAREHOLDERS
(as per Register of Substantial Shareholders and exclude bare trustee)

Direct Interest Indirect Interest

No. of No. of
Name of Substantial Shareholder Shares % Shares %

Employees Provident Fund Board 362,330,794 14.42 – –

Kumpulan Wang Persaraan (Diperbadankan) 206,750,614 8.23 – –

09 Shareholder Information
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GAMUDA BERHAD 197601003632 (29579-T)

Analysis of Securities of Company

As at 1 October 2020

DIRECTORS’ INTEREST IN ORDINARY SHARES OF THE COMPANY

(as per Register of Directors’ Shareholdings)

Direct Interest Indirect Interest

No. of No. of
Name of Director Shares % Shares %

Dato’ Mohammed Hussein – – – –

Dato’ Lin Yun Ling 75,035,736 2.99 – –
Dato’ Ir Ha Tiing Tai 27,384,000*3 1.09 87,000*1 *5

Raja Dato’ Seri Eleena binti

Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-lah 228,750 0.01 115,500,000*2 4.60
Tan Sri Dato’ Setia Haji Ambrin bin Buang 4,000 *5 – –
Tunku Afwida binti Tunku A.Malek – – – –
Nazli binti Mohd Khir Johari – – – –
Dato’ Ubull Din Om (Alternate to Dato’ Ir Ha Tiing Tai) – – – –
Mohammed Rashdan bin Mohd Yusof
(Alternate to Dato’ Lin Yun Ling) 457,500*4 0.02 – –

Notes:
*1 Through son
*2 Through Generasi Setia (M) Sdn Bhd
*3 Held in own name and in nominee name
*4 Held in nominee name
*5 Negligible

TOP 30 SHAREHOLDERS AS PER RECORD OF DEPOSITORS

(without aggregating the securities from different securities accounts belonging to the same Depositors)

No. of
No. Name Shares Held %

1 Citigroup Nominees (Tempatan) Sdn Bhd 281,177,126 11.19

– Employees Provident Fund Board
2 Kumpulan Wang Persaraan (Diperbadankan) 188,673,700 7.51
3 Amanahraya Trustees Berhad 115,912,400 4.61
– Amanah Saham Bumiputera
4 Generasi Setia (M) Sdn Bhd 102,000,000 4.06
5 Citigroup Nominees (Tempatan) Sdn Bhd 90,495,000 3.60
– Urusharta Jamaah Sdn Bhd (1)
6 Dato’ Lin Yun Ling 75,035,736 2.99
7 Amanahraya Trustees Berhad 70,000,000 2.78
– Amanah Saham Malaysia 2 – Wawasan
8 Citigroup Nominees (Tempatan) Sdn Bhd 62,471,765 2.48
– Exempt An for AIA Bhd
9 Amanahraya Trustees Berhad 55,717,800 2.22
– Amanah Saham Malaysia 3
10 Permodalan Nasional Berhad 50,870,700 2.02
11 Amanahraya Trustees Berhad 49,113,600 1.95
– Amanah Saham Bumiputera 3 – Didik

354 09 Shareholder Information

 ANNUAL REPORT 2020

TOP 30 SHAREHOLDERS AS PER RECORD OF DEPOSITORS (CONT’D.)

(without aggregating the securities from different securities accounts belonging to the same Depositors)

No. of
No. Name Shares Held %

12 Amanahraya Trustees Berhad 48,179,700 1.92

– Amanah Saham Malaysia
13 HSBC Nominees (Asing) Sdn Bhd 37,637,612 1.50
– JPMCB NA for Vanguard Total International Stock Index Fund
14 Cartaban Nominees (Asing) Sdn Bhd 36,270,136 1.44
– GIC Private Limited for Government of Singapore (C)
15 Amanahraya Trustees Berhad 33,500,000 1.33
– Amanah Saham Bumiputera 2
16 Citigroup Nominees (Tempatan) Sdn Bhd 31,183,666 1.24
– Employees Provident Fund Board (NOMURA)
17 HSBC Nominees (Asing) Sdn Bhd 30,232,417 1.20
– JPMCB NA for Vanguard Emerging Markets Stock Index Fund
18 Cartaban Nominees (Asing) Sdn Bhd 29,027,200 1.15
– Exempt An for State Street Bank & Trust Company (WEST CLT OD67)
19 Ng Kee Leen 28,002,252 1.11
20 Cartaban Nominees (Tempatan) Sdn Bhd 27,021,419 1.08
– PAMB for Prulink Equity Fund
21 Maybank Nominees (Tempatan) Sdn Bhd 26,000,000 1.03
– Maybank Trustees Berhad for Public Ittikal Fund (N14011970240)
22 Lembaga Tabung Haji 25,000,000 0.99
23 Citigroup Nominees (Asing) Sdn Bhd 22,122,601 0.88
– Exempt An for Citibank New York (Norges Bank 14)
24 Dato’ Ir. Ha Tiing Tai 21,666,000 0.86
25 Amanahraya Trustees Berhad 21,066,100 0.84
– Public Islamic Dividend Fund
26 Citigroup Nominees (Tempatan) Sdn Bhd 18,071,700 0.72
– Great Eastern Life Assurance (Malaysia) Berhad (PAR 1)
27 Amanahraya Trustees Berhad 17,767,368 0.71
– Public Ittikal Sequel Fund
28 Dato’ Goon Heng Wah 15,888,771 0.63
29 Citigroup Nominees (Tempatan) Sdn Bhd 15,008,396 0.60
– Great Eastern Life Assurance (Malaysia) Berhad (PAR 3)
30 Maybank Nominees (Tempatan) Sdn Bhd 13,885,005 0.55
– MTrustee Berhad for Principal Dali Equity Growth Fund (UT-CIMB-Dali) (419455)

Total 1,638,998,170 65.19

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355
GAMUDA BERHAD 197601003632 (29579-T)

Analysis of Securities of Company

As at 1 October 2020

ANALYSIS OF WARRANT HOLDINGS

WARRANTS 2016/2021 (“WARRANTS”)
No. of Warrants unexercised : 387,221,749
Exercise price : RM4.05
Expiry date : 6 March 2021
Voting rights at a meeting of : 1 vote per warrant holder on a show of hands
  Warrant Holders 1 vote per warrant on a poll
No. of Warrant Holders : 6,332

DISTRIBUTION OF WARRANT HOLDINGS

No. of No. of
Size of Holdings Holders % Holdings %

Less than 100 93 1.47 4,451 0.00

100 – 1,000 1,792 28.30 867,317 0.23
1,001 – 10,000 2,074 32.75 10,846,056 2.80
10,001 – 100,000 1,821 28.76 72,885,514 18.82
100,001 – 19,361,086
(less than 5% of total Warrants unexercised) 552 8.72 302,618,411 78.15
19,361,087 and above
(5% and above of total Warrants unexercised) 0 0.00 0 0.00

Total 6,332 100.00 387,221,749 100.00

DIRECTORS’ INTEREST IN WARRANTS

(as per Register of Directors’ Warrant Holdings)

Direct Interest Indirect Interest

No. of No. of
Name of Director Warrants % Warrants %

Dato’ Mohammed Hussein – – – –

Dato’ Lin Yun Ling 12,883,600 3.33 – –
Dato’ Ir Ha Tiing Tai – – 12,800*1 *4

Raja Dato’ Seri Eleena binti

Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-lah – – 2,500,000*2 0.65
Tan Sri Dato’ Setia Haji Ambrin bin Buang – – – –
Tunku Afwida binti Tunku A.Malek – – – –
Nazli binti Mohd Khir Johari – – – –
Dato’ Ubull Din Om (Alternate to Dato’ Ir Ha Tiing Tai) – – – –
Mohammed Rashdan bin Mohd Yusof
(Alternate to Dato’ Lin Yun Ling) 550,000*3 0.14 – –

Notes:
*1 Through son
*2 Through Generasi Setia (M) Sdn Bhd
*3 Held in nominee name
*4 Negligible

356 09 Shareholder Information

 ANNUAL REPORT 2020

TOP 30 WARRANT HOLDERS AS PER RECORD OF DEPOSITORS

(without aggregating the securities from different securities accounts belonging to the same Depositors)

No. of
No. Name Warrants Held %

1 TA Nominees (Tempatan) Sdn Bhd 14,150,000 3.65

– Pledged Securities Account for Heng Teng Kuang
2 Dato’ Lin Yun Ling 12,883,600 3.33
3 Ng Kee Leen 9,411,000 2.43
4 RHB Nominees (Tempatan) Sdn Bhd 8,620,000 2.23
– Pledged Securities Account for Wong Tow Fock
5 CIMSEC Nominees (Tempatan) Sdn Bhd 8,500,000 2.19
– CIMB for Chow Chong Chek (PB)
6 Maybank Nominees (Tempatan) Sdn Bhd 8,083,400 2.09
– Pledged Securities Account for Ismail Ng Bin Jaafar Ng
7 Maybank Nominees (Tempatan) Sdn Bhd 6,411,100 1.66
– Etiqa Life Insurance Berhad (Prem Equity)
8 TA Nominees (Tempatan) Sdn Bhd 6,000,000 1.55
– Pledged Securities Account for Anitha Binti Mohamed Haniffa
9 Citigroup Nominees (Tempatan) Sdn Bhd 4,534,150 1.17
– Great Eastern Life Assurance (Malaysia) Berhad (Par 1)
10 Gan Voon Seng 3,527,900 0.91
11 CIMSEC Nominees (Tempatan) Sdn Bhd 3,234,100 0.84
– CIMB for Lee Choon Phooi (PB)
12 Er Chin Joo 3,000,000 0.77
13 Heng Teng Kuang 2,953,023 0.76
14 Tai Lee Development Sdn. Bhd. 2,800,000 0.72
15 Dato’ Goon Heng Wah 2,741,600 0.71
16 Tam Soon Sian 2,600,000 0.67
17 Zuriana Binti Din 2,580,000 0.67
18 Public Nominees (Tempatan) Sdn Bhd 2,530,700 0.65
– Pledged Securities Account for Chia Siya Heng (E-SS2)
19 Generasi Setia (M) Sdn Bhd 2,500,000 0.65
20 RHB Capital Nominees (Tempatan) Sdn Bhd 2,300,000 0.59
– Than Yen Heng
21 Yap Ai Synn @ Yap Ai Chin 2,225,000 0.57
22 Norman Bin Md Rabani 2,000,000 0.52
23 RHB Nominees (Tempatan) Sdn Bhd 2,000,000 0.52
– Pledged Securities Account for Tan Shiow Peng
24 Maybank Nominees (Tempatan) Sdn Bhd 1,900,000 0.49
– Lee Choon Phooi
25 Zaidi Bin Mohd Zin 1,900,000 0.49
26 Teh Kheng Hoe 1,856,300 0.48
27 Yap Pak Lim 1,740,000 0.45
28 Low Swee Chong 1,700,000 0.44
29 Hiew Chia Lin 1,580,000 0.41
30 Gan Lu Ter 1,563,500 0.40

Total 127,825,373 33.01

09 Shareholder Information
357
GAMUDA BERHAD 197601003632 (29579-T)

Issued Share Capital

Date/ No. of Cummulative
Year of Allotment Shares Allotted Description No. of Issued Shares

06.10.1976 2 Cash – Subscribers’ shares 2

26.12.1976 199,998 Cash 200,000

10.10.1977 200,000 Cash 400,000

30.07.1981 100,000 Cash 500,000

21.07.1984 500,000 Bonus Issue on the basis of 1 new ordinary share for 1,000,000
every 1 existing ordinary share held

24.07.1985 250,000 Cash 1,250,000

29.07.1985 500,000 Issued as consideration for the acquisition of several 1,750,000

companies

31.07.1986 750,000 Cash 2,500,000

30.07.1987 750,000 Bonus Issue in the proportion of 3 new ordinary shares 3,250,000
for every 10 existing ordinary shares held

30.07.1988 1,750,000 Bonus Issue in the proportion of 7 new ordinary shares 5,000,000
for every 10 existing ordinary shares held

30.07.1990 3,000,000 Bonus Issue in the proportion of 3 new ordinary shares 8,000,000
for every 5 existing ordinary shares held

29.04.1992 11,000,000 Bonus Issue in the proportion of 1,375 new ordinary shares 19,000,000
for every 1,000 existing ordinary shares held

29.04.1992 23,976,667 Issued as consideration for the acquisition of 42,976,667

Gammau Construction Sdn Bhd and Ganaz Bina Sdn Bhd

05.06.1992 19,086,333 Rights Issue in the proportion of 2,386 new ordinary 62,063,000
shares for every 1,000 existing ordinary shares held

18.01.1995 20,687,667 Bonus Issue in the proportion of 1 new ordinary share 82,750,667
for every 3 existing ordinary shares held

20.03.1995 7,757,875 Rights Issue in the proportion of 1 new ordinary share 90,508,542
for every 8 existing ordinary shares held

24.01.1996 – 26.12.1996 24,547,169 Issued pursuant to exercise of options under ESOS & 115,055,711
Conversion of Warrants 1995/2000

16.01.1997 153,407,614 Bonus Issue in the proportion of 4 new ordinary shares 268,463,325
for every 3 existing ordinary shares held

12.03.1997 19,175,951 Rights Issue in the proportion of 1 new ordinary share 287,639,276
for every 6 existing ordinary shares held

358 09 Shareholder Information

 ANNUAL REPORT 2020

Date/ No. of Cummulative

Year of Allotment Shares Allotted Description No. of Issued Shares

20.01.1997 – 24.11.1997 2,057,133 Issued pursuant to exercise of options under ESOS & 289,696,409
Conversion of Warrants 1995/2000

22.10.1998 – 31.12.1998 99,000 Issued pursuant to exercise of options under ESOS 289,795,409

07.01.1999 – 30.12.1999 15,979,428 Issued pursuant to exercise of options under ESOS & 305,774,837
Conversion of Warrants 1995/2000

05.01.2000 – 16.07.2000 37,201,999 Issued pursuant to exercise of options under ESOS & 342,976,836
Conversion of Warrants 1995/2000

03.03.2000 322,213,836 Bonus Issue in the proportion of 1 new ordinary share 665,190,672
for every 1 existing ordinary share held

31.01.2001 – 19.12.2001 807,000 Issued pursuant to exercise of options under ESOS 665,997,672

02.01.2002 – 27.12.2002 8,646,002 Issued pursuant to exercise of options under ESOS & 674,643,674
Conversion of Warrants 1996/2006 and 2001/2007

13.01.2003 – 31.12.2003 51,251,218 Issued pursuant to exercise of options under ESOS & 725,894,892
Conversion of Warrants 1996/2006 and 2001/2007

07.01.2004 – 23.12.2004 13,209,252 Issued pursuant to exercise of options under ESOS & 739,104,144
Conversion of Warrants 2001/2007

05.01.2005 – 29.12.2005 14,128,000 Issued pursuant to exercise of options under ESOS & 753,232,144
Conversion of Warrants 2001/2007

26.10.2006 – 29.12.2006 37,982,965 Issued pursuant to exercise of options under ESOS & 791,215,109
Conversion of Warrants 1996/2006 and 2001/2007

08.01.2007 – 28.12.2007 207,268,945 Issued pursuant to exercise of options under ESOS & 998,484,054
Conversion of Warrants 1996/2006 and 2001/2007

25.10.2007 994,963,054 Bonus Issue on the basis of 1 new ordinary share for 1,993,447,108
every 1 existing ordinary share held

09.01.2008 – 19.12.2008 12,736,000 Issued pursuant to exercise of options under ESOS 2,006,183,108

23.01.2009 – 22.12.2009 10,589,000 Issued pursuant to exercise of options under ESOS 2,016,772,108

11.01.2010 – 29.12.2010 29,439,485 Issued pursuant to exercise of options under ESOS & 2,046,211,593
Conversion of Warrants 2010/2015

04.01.2011 – 30.12.2011 21,563,311 Issued pursuant to exercise of options under ESOS & 2,067,774,904
Conversion of Warrants 2010/2015

03.01.2012 – 31.12.2012 18,690,762 Issued pursuant to exercise of options under ESOS & 2,086,465,666
Conversion of Warrants 2010/2015

09 Shareholder Information
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GAMUDA BERHAD 197601003632 (29579-T)

Issued Share Capital

Date/ No. of Cummulative

Year of Allotment Shares Allotted Description No. of Issued Shares

07.01.2013 – 30.12.2013 205,859,001 Issued pursuant to exercise of options under ESOS & 2,292,324,667
Conversion of Warrants 2010/2015

06.01.2014 – 29.12.2014 49,464,512 Issued pursuant to exercise of options under ESOS & 2,341,789,179
Conversion of Warrants 2010/2015

06.01.2015 – 22.06.2015 64,115,876 Conversion of Warrants 2010/2015 2,405,905,055

07.01.2016 – 28.12.2016 18,193,855 Issued pursuant to exercise of options under ESOS & 2,424,098,910
Conversion of Warrants 2016/2021

05.01.2017 – 29.12.2017 31,451,816 Issued pursuant to exercise of options under ESOS & 2,455,550,726
Conversion of Warrants 2016/2021

08.01.2018 – 07.09.2018 12,498,225 Issued pursuant to exercise of options under ESOS & 2,468,048,951
Conversion of Warrants 2016/2021

18.01.2019 – 23.12.2019 7,753,082 Issued pursuant to exercise of options under ESOS & 2,475,802,033
Conversion of Warrants 2016/2021

07.01.2020 – 13.04.2020 17,895,782 Issued pursuant to exercise of options under ESOS, 2,493,697,815
Conversion of Warrants 2016/2021

25.02.2020 19,829,839 Issued pursuant to First Dividend Reinvestment Plan 2,513,527,654

360 09 Shareholder Information

 ANNUAL REPORT 2020

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN that the Forty-fourth (“44th”) Annual General Meeting (“AGM”) of
Gamuda Berhad (“Gamuda” or “Company”) will be conducted fully virtual through live streaming
and online remote voting from the broadcast venue at the Auditorium, Level 2, Menara Gamuda,
Block D, PJ Trade Centre, No. 8, Jalan PJU 8/8A, Bandar Damansara Perdana, 47820 Petaling
Jaya, Selangor Darul Ehsan (“Broadcast Venue”) on Tuesday, 8 December 2020 at 10.00 a.m.
for the purpose of transacting the following businesses:-

AGENDA
1. To receive the Audited Financial Statements for the financial year ended 31 July 2020 [Please refer to
together with the Reports of the Directors and Auditors thereon. Explanatory Note No. 4 (a)]

2. To approve the payment of Directors’ fees for the financial year ended 31 July 2020. (Ordinary Resolution 1)

3. To approve the payment of Directors’ remuneration (excluding Directors’ fees) of up to an (Ordinary Resolution 2)
amount of RM350,000/- for the period from 9 December 2020 until the next annual general
meeting of the Company to be held in 2021.

4. To re-elect the following Directors of the Company who are retiring by rotation in
accordance with Clause 105 of the Constitution of the Company and, who being eligible,
offer themselves for re-election:-

a. YBhg Dato’ Mohammed Hussein (Ordinary Resolution 3)

b. YTM Raja Dato’ Seri Eleena binti Almarhum Sultan Azlan Muhibbuddin Shah (Ordinary Resolution 4)
Al-Maghfur-lah
c. YBhg Tan Sri Dato’ Setia Haji Ambrin bin Buang (Ordinary Resolution 5)

5 To re-appoint Ernst & Young PLT, the retiring Auditors and to authorise the Directors of (Ordinary Resolution 6)
the Company to fix their remuneration.

As Special Business:-

To consider and, if thought fit, to pass with or without modification(s), the following resolutions:-

6. Authority to issue Shares pursuant to Sections 75 and 76 of the Companies Act 2016 (Ordinary Resolution 7)

“THAT subject always to the Companies Act 2016, the Constitution of the Company and
the approvals of the relevant governmental regulatory authorities (if required), the Directors
of the Company be and are hereby empowered pursuant to Sections 75 and 76 of the
Companies Act 2016, to issue and allot shares in the Company, from time to time, and
upon such terms and conditions and for such purposes as the Directors of the Company
may, in their absolute discretion, deem fit, provided that the aggregate number of shares
to be issued pursuant to this resolution does not exceed ten percent (10%) of the
total number of issued shares of the Company for the time being AND THAT the
Directors be and are also empowered to obtain the approval for the listing of,
and quotation for the additional shares so issued on Bursa Malaysia Securities
Berhad [Company Registration No. 200301033577 (635998-W)] (“Bursa Securities”)
AND FURTHER THAT such authority shall continue to be in force until the conclusion of
the next AGM of the Company.”

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GAMUDA BERHAD 197601003632 (29579-T)

Notice of Annual General Meeting

7. Proposed Renewal of Share Buy-back Authority (Ordinary Resolution 8)

“THAT subject to the provisions of the Companies Act 2016, the Constitution of the Company,
the Main Market Listing Requirements of Bursa Securities and the approvals of the relevant
governmental regulatory authorities, the Company be and is hereby authorised to purchase
such number of ordinary shares of the Company (“Proposed Share Buy-back”) as may be
determined by the Directors of the Company, from time to time, through Bursa Securities
upon such terms and conditions as the Directors may deem fit in the interest of the Company
provided that:-

i. the aggregate number of ordinary shares to be purchased pursuant to this resolution

does not exceed ten percent (10%) of the total number of issued shares of the Company;
and

ii. an amount not exceeding the retained profits of the Company shall be allocated by the
Company for the Proposed Share Buy-back;

AND THAT at the absolute discretion of the Directors of the Company, upon such purchase
by the Company of its own shares, the purchased shares shall be cancelled and/or retained
as treasury shares and subsequently be cancelled, distributed as dividends or resold on
Bursa Securities and/or in any other manner as prescribed by the Companies Act 2016.

THAT the Directors of the Company be and are hereby empowered to do all acts and enter
into all such transactions, agreements and arrangements, and to execute, sign and deliver
for and on behalf of the Company, all such documents as the Directors may deem fit and
expedient in order to implement, finalise and give full effect to the Proposed Share
Buy-back with full powers to assent to any conditions, modifications, variations and/or
amendments (if any) as the Director may in their absolute discretion deem fit and in the
interest of the Company and/or as may be imposed or agreed to by any relevant authorities;

AND THAT the authority hereby given shall commence immediately upon the passing of this
resolution and shall continue to be in force until:-

i. the conclusion of the next AGM of the Company at which time it will lapse, unless
by an ordinary resolution passed at the AGM, the authority is renewed either unconditionally
or subject to conditions; or

ii. the expiration of the period within which the next AGM after that date is required
by law to be held; or

iii. revoked or varied by an ordinary resolution passed by the shareholders of the Company
in a general meeting,

whichever occurs first, but not so as to prejudice the completion of the purchase of its own
shares by the Company before the aforesaid expiry date and, in any event, in accordance
with the provisions of the Main Market Listing Requirements of Bursa Securities or any
other relevant authorities.”

362 09 Shareholder Information

 ANNUAL REPORT 2020

8. Issuance of New Shares in the Company (“Gamuda Shares”) pursuant to the Dividend (Ordinary Resolution 9)
Reinvestment Plan that provides Shareholders of the Company with an Option to Elect to
Reinvest their Cash Dividends into New Gamuda Shares (“Dividend Reinvestment Plan”)

“THAT pursuant to the Dividend Reinvestment Plan as approved by the shareholders of the
Company at the Extraordinary General Meeting of the Company held on 5 December 2019,
and subject to the approvals of all relevant regulatory authorities or parties being obtained,
where required, approval be and is hereby given for the Company to allot and issue such
number of new Gamuda Shares from time to time as may be required to be allotted and
issued pursuant to the Dividend Reinvestment Plan upon such terms and conditions and to
such persons as the Directors of the Company may, at its absolute discretion, deem fit and
in the best interest of the Company PROVIDED THAT the issue price of the said new Gamuda
Shares shall be fixed by the Directors of the Company at not more than ten percent (10%)
discount to the adjusted five (5)-day volume weighted average market price (“VWAMP”) of
the Gamuda Shares immediately prior to the price-fixing date, of which the VWAMP shall
be adjusted ex-dividend before applying the aforementioned discount in fixing the issue
price of the said new Gamuda Shares AND THAT such authority to allot and issue new
Gamuda Shares shall continue to be in force until the conclusion of the next AGM of the
Company;

AND THAT the Directors and the Secretaries of the Company be and are hereby authorised
to do all such acts and enter into all such transactions, arrangements and agreements and
to execute, sign and deliver for and on behalf of the Company, all such documents and
impose such terms and conditions as may be necessary or expedient in order to give full
effect to the Dividend Reinvestment Plan, with full powers to assent to any conditions,
modifications, variations and/or amendments (if any) including suspension and termination
of the Dividend Reinvestment Plan as the Directors may, in their absolute discretion, deem
fit and in the interest of the Company and/or as may be imposed or agreed to by any
relevant authorities.”

9. To transact any other business of which due notice shall have been given.

BY ORDER OF THE BOARD

LIM SOO LYE

(LS0006461) (SSM PC NO. 201908002053)

PANG SIOK TIENG

(MAICSA 7020782) (SSM PC NO. 201908001079)
Company Secretaries

Petaling Jaya
9 November 2020

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GAMUDA BERHAD 197601003632 (29579-T)

Notice of Annual General Meeting

Notes: c. Where a Member is an Exempt Authorised Nominee which

holds Securities for multiple beneficial owners in one (1)
1. Virtual Meeting
Securities Account (“Omnibus Account”), there is no limit
In order to curb the spread of Coronavirus Disease 2019 to the number of proxies which the Exempt Authorised
(“COVID-19”) and as part of the Company’s precautionary Nominee may appoint in respect of each Omnibus Account
measures, the 44th AGM of the Company will be held fully and, the appointment shall be invalid unless the Exempt
virtual through live streaming and online remote voting via the Authorised Nominee specifies the number of shares to be
Remote Participation and Voting facilities (“RPV”) provided by represented by each proxy.
Tricor Investor & Issuing House Services Sdn. Bhd. [Company
Registration No. 197101000970 (11324-H)] (“Tricor”) which are d. The instrument appointing a proxy shall be in writing
available on its TIIH Online website at https://tiih.online. Please (in the common or usual form) under the hand of the
follow the procedures provided in the Administrative Details appointer or his attorney duly authorised in writing or,
for the 44th AGM in order to register, participate and vote if the appointer is a corporation, either under the corporation’s
remotely via the RPV. seal or under the hand of an officer or attorney duly
authorised.
The Broadcast Venue is strictly for the purpose of complying
with Section 327(2) of the Companies Act 2016 (“CA 2016”) e. For Members who are individual persons, the appointment
which requires the Chairman of the meeting to be present at of a proxy may be made in a hard copy form or by electronic
the main venue of the 44th AGM. means. For Members who are not individual persons
(e.g. corporate member, Exempt Authorised Nominee, etc),
No Members or proxies shall be allowed to be physically the appointment of a proxy MUST be made in a hard copy
present at the Broadcast Venue on the day of the 44th AGM. form only. Forms of Proxy must be submitted in the following
manner, not less than forty-eight (48) hours before the time
2. General Meeting Record of Depositors appointed for holding the 44th AGM or at any adjournment
thereof:
For purposes of determining who shall be entitled to participate
at the 44 th AGM, the Company shall be requesting i. Hard copy (applicable for all Members)
Bursa Malaysia Depository Sdn Bhd [Company Registration The original signed Form of Proxy must be deposited
No. 198701006854 (165570-W)] to make available to the with the Share Registrar of the Company, Tricor Investor
Company pursuant to Clause 72 of the Constitution of the & Issuing House Services Sdn Bhd at Unit 32-01,
Company and Paragraph 7.16(2) of the Main Market Listing Level 32, Tower A, Vertical Business Suite, Avenue 3,
Requirements of Bursa Securities, a Record of Depositors as Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala
at 30 November 2020 and only a Depositor whose name appears Lumpur, Malaysia or alternatively, the Customer Service
on such Record of Depositors shall be entitled to participate Centre at Unit G-3, Ground Floor, Vertical Podium, Avenue
and/or vote at the 44th AGM or appoint a proxy or proxies to 3, Bangsar South, No. 8, Jalan Kerinchi, 59200
participate and/or vote on his/her behalf. Kuala Lumpur, Malaysia; OR

3. Proxy ii. Electronic form (applicable for individual Members only)

a. Every Member of the Company is entitled to:- You may also submit the Form of Proxy electronically
via TIIH Online website at https://tiih.online by following
i. appoint another person as his proxy to exercise all or the procedures provided in the Administrative Details
any of his rights to attend, participate and vote at the for the 44th AGM.
44th AGM and that proxy may but need not be a Member
of the Company. f. The Notice of AGM together with the Form of Proxy,
Administrative Details, Annual Report 2020 and the Share
ii. appoint more than one (1) person as his proxy provided
Buy-back Statement are published on the Company’s website
that he specifies the proportions of his shareholdings
at www.gamuda.com.my or Bursa Malaysia’s website at
to be represented by each proxy.
www.bursamalaysia.com.
b. Where a Member of the Company is an Authorised Nominee
Please follow the procedures provided in the Administrative
as defined under the Securities Industry (Central Depositories)
Details for the 44th AGM in order to register, participate
Act, 1991, it may appoint at least one proxy but not more
and/or vote remotely.
than two (2) proxies in respect of each Securities Account
it holds with ordinary shares of the Company standing to
g. Pursuant to Paragraph 8.29A(1) of the Main Market Listing
the credit of the said Securities Account. Where an Authorised
Requirements of Bursa Securities, all resolutions set out
Nominee appoints two (2) proxies in respect of each Securities
in this Notice will be put to vote by poll.
Account, the appointment shall be invalid unless the
Authorised Nominee specifies the proportions of the
shareholdings to be represented by each proxy.

364 09 Shareholder Information

 ANNUAL REPORT 2020

4. Explanatory Notes
a. Audited Financial Statements
The Audited Financial Statements are for discussion only as they do not require shareholders’ approval pursuant to the provision
of Section 340(1)(a) of the CA 2016. Hence, this matter will not be put for voting.

b. Ordinary Resolutions 1 & 2

Section 230(1) of the CA 2016 provides that the ‘fees’ of the directors and ‘any benefits’ payable to the directors of a listed
company and its subsidiaries shall be approved at a general meeting. Pursuant thereto, shareholders’ approval shall be sought
at this meeting for the payment of Directors’ fees and benefits payable to the Non-Executive Directors of the Company under
Resolutions 1 and 2.

i. Directors’ Fees
To demonstrate support of the initiatives taken by the Company in response to the COVID-19 pandemic, the Non-Executive
Directors (including Independent Directors) have voluntarily agreed to take a 10% reduction in their fees for FY2020,
the details of which are as set out in the right column of the table below:

Proposed for FY2020

Directors’ Fees (approval sought at
(as approved at AGMs) FY2017 FY2018 FY2019 44th AGM)

Independent RM175,000 RM215,000 RM210,833 RM189,000

Non-Executive Chairman per annum per annum per annum per annum

Independent RM135,000 RM135,000 RM160,000 RM144,000

Non-Executive Director per annum per annum per annum/ per annum/
RM164,167 RM148,500
per annum*/ per annum/
RM109,417 RM117,000
per annum# per annum

Non-Executive Director RM105,000 RM105,000 RM130,000 RM117,000

per annum per annum per annum per annum

* Re-designation of Audit Committee Chairman during the financial year under review
# Appointment of a new Independent Non-Executive Director during the year under review

The above proposal is made upon benchmarking against ii. Directors’ Remuneration
various companies across the industries with either The current Directors’ remuneration (excluding Directors’
similar market capitalisation, revenue or profit before fees) payable to the Non-Executive Directors of
tax and with peer companies in the construction and the Company comprises meeting allowances and
property industries. Based on the benchmark study benefits-in-kind.
thereof, the differentiation of the proposed fees for
the Independent Non-Executive Chairman from a At the Forty-third AGM of the Company held on
Non-Executive Director and an Independent Director 5 December 2019 (“43rd AGM”), the benefits payable to
(with no Board Committee membership) at 1.6 times the Non-Executive Directors of the Company from
and from Independent Non-Executive Directors (with 6 December 2019 until this meeting on 8 December 2020
Board Committee membership) at 1.3 times, were seen (12 months) was approved for an amount up to
as fair and equitable. RM320,000.00. The utilisation of this approved amount
as at 31 July 2020 is RM205,016/-. Based on the schedule
The payment of the Directors’ fees totalling RM715,500/- of meetings in the fourth quarter of 2020,
in respect of the financial year ended 31 July 2020 will an amount of RM69,703/- is expected to be utilised for
only be made if the proposed Resolution 1 is approved payment of meeting allowances and other benefits to
by the Company shareholders at this meeting pursuant the Non-Executive Directors. Hence, the expected total
to Clause 116 of the Constitution of the Company and utilised amount would be approximately 86% of the
Section 230(1)(b) of the CA 2016. approved amount.

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GAMUDA BERHAD 197601003632 (29579-T)

Notice of Annual General Meeting

The Directors’ remuneration (excluding Directors’ fees) are summarised as follows:-

Meeting Allowance Independent Independent

(per meeting) Non-Executive Chairman Non-Executive Director Non-Executive Director

Board of Directors RM2,000 RM2,000 RM2,000

Board Committees RM2,000 RM2,000 RM2,000

Directors’ benefits payable comprises leave passage, travel c. Ordinary Resolutions 3, 4 & 5
allowance, club membership subscriptions, insurance and
For the purpose of determining the eligibility of the Directors
medical and other claimable benefits including reimbursable
to stand for re-election at the 44th AGM and in line with
expenses incurred in the course of carrying out their duties
Practice 5.1 of the Malaysian Code on Corporate Governance,
as Company Directors.
the Nomination Committee has assessed each of the retiring
Directors under Resolutions 3, 4 and 5 and the findings
The total amount of Directors’ remuneration (excluding
were as follows:-
Directors’ Fees) payable to the Non-Executive Directors is
estimated to be up to RM350,000/- from 9 December 2020 i. The Board continues to be effective with each of its
to the next AGM in 2021 (Current Period) subject to the member demonstrating commitment of time and energy
shareholders’ approval, and taking into account various to their duties as well as their abilities to act in the best
factors including the number of scheduled meetings for interests of the Company in decision-making.
the Board of Directors (“Board”) and Board Committees
as well as the number of Non-Executive Directors involved ii. Their level of contribution to the Board’s deliberations
in these meetings. The estimated amount of remuneration through their skills, experiences and strength in qualities
also caters for unforeseen circumstances, for example, meet the demands of the business in line with the
the appointment of additional Directors and/or additional strategy of the Company.
unscheduled Board meetings as well as increase in premium
paid/payable for Directors’ and Officers’ Liability insurance Based on the results of the Annual Evaluation of Board
coverage. Performance 2019/2020, the individual Directors met
the performance criteria required of an effective and
The proposed Resolution 2, if passed, is to facilitate the high-performance Board.
payment of Directors’ remuneration (excluding Directors’
fees) on a monthly basis and/or as and when incurred. The Board (saved for YBhg Dato’ Mohammed Hussein and
The Board opined that it is just and equitable for the YBhg Tan Sri Dato’ Setia Haji Ambrin bin Buang) has vide
Non-Executive Directors to be paid such payment on such the Nomination Committee, also conducted the assessment
basis upon them discharging their responsibilities and on the independence of both YBhg Dato’ Mohammed Hussein
rendering their services to the Company. and YBhg Tan Sri Dato’ Setia Haji Ambrin bin Buang as
Independent Non-Executive Directors of the Company and,
In the event that the payment of Directors’ remuneration supports the Nomination Committee’s recommendation for
(excluding Directors’ fees) payable during the above period their re-election (who being eligible and have offered
exceeded the estimated amount sought at the 44th AGM, themselves for re-election) as Directors of the Company
shareholders’ approval will be sought at the next AGM. pursuant to Clause 105 of the Constitution of the Company.

Any Non-Executive Directors who are shareholders of the Any Director referred to in Resolutions 3, 4 and 5 who is
Company will abstain from voting on Resolutions 1 and 2 at a shareholder of the Company will abstain from voting
the 44th AGM. on the resolution in respect of his/her re-election at the
44th AGM.

366 09 Shareholder Information

 ANNUAL REPORT 2020

d. Ordinary Resolution 6 f. Ordinary Resolution 8

The Board has at its meeting held on 25 September 2020 Shareholders are advised to refer to the Statement to
approved the recommendation of the Audit Committee on Shareholders dated 9 November 2020, which is published
the re-appointment of Ernst & Young PLT as Auditors of on the Company’s website at www.gamuda.com.my or Bursa
the Company. The Board is satisfied that Ernst & Young Malaysia’s website at www.bursamalaysia.com for further
PLT has met the relevant criteria prescribed under Paragraph information.
15.21 of the Main Market Listing Requirements of
Bursa Securities which was concluded through the assessment g. Ordinary Resolution 9
carried out by the Audit Committee on the suitability and
Ordinary Resolution 9 if passed, will give authority to the
independence of Ernst & Young PLT.
Directors of the Company to allot and issue new Gamuda
Shares pursuant to the Dividend Reinvestment Plan in
e. Ordinary Resolution 7
respect of dividends declared after this AGM, and such
Ordinary Resolution 7 if passed, will empower the Directors authority shall expire at the conclusion of the next AGM of
to issue shares of the Company up to a maximum of ten the Company.
percent (10%) of the total number of issued shares of the
Company for the time being, for any possible fund-raising 5. Statement Accompanying Notice of AGM
activities for purposes of funding future investment projects,
[Pursuant to Paragraph 8.27(2) of the Main Market Listing
working capital, acquisitions and/or for strategic reasons.
Requirements of Bursa Securities]
The approval is a renewal of a general mandate and is
sought to provide flexibility and to avoid any delay and cost • Details of individuals who are standing for election (excluding
in convening a general meeting for such issuance of shares directors standing for a re-election) as Directors
for fund raising activities, including placement of shares.
There are no individuals who are standing for election as
This authority will, unless revoked or varied at a general Directors at the 44th AGM of the Company.
meeting, expire at the conclusion of the next AGM of the • Statement relating to general mandate for issue of securities
Company. At this juncture, there is no decision to issue new in accordance with Paragraph 6.03(3) of the Main Market
shares. Should there be a decision to issue new shares Listing Requirements of Bursa Securities
after the authorisation is sought, the Company will make
an announcement of the actual purpose and utilisation of Details of the general mandate to issue securities in the
proceeds arising from such issuance of shares. Company pursuant to Sections 75 and 76 of the CA 2016
are set out in Explanatory Note 4(e) of this Notice.
The Company did not issue any new shares under the
general mandate which was approved at its 43rd AGM.

09 Shareholder Information
367
GAMUDA BERHAD 197601003632 (29579-T)

Administrative Details
Forty-Fourth (“44th”) Annual General Meeting (“AGM”)

Date : Tuesday, 8 December 2020

Time : 10.00 a.m.
Broadcast Venue : Auditorium, Level 2, Menara Gamuda, Block D, PJ Trade Centre, No. 8, Jalan PJU 8/8A,
Bandar Damansara Perdana, 47820 Petaling Jaya, Selangor Darul Ehsan

MODE OF MEETING If you wish to personally participate in the 44th AGM, please
do not submit any Form of Proxy. You will not be allowed to
In support of the Government of Malaysia’s ongoing efforts to
participate in the 44th AGM together with your appointed proxy.
contain the spread of COVID-19 and as part of the Group’s
safety measures, the Company will conduct the 44th AGM on
If you have submitted your Form of Proxy prior to the 44th AGM
a fully virtual basis through live streaming and online remote
and subsequently decide to personally participate in the
voting at the Broadcast Venue. This is in line with the latest
44th AGM, please proceed to register yourself for RPV on TIIH
Guidance Note on the Conduct of General Meetings for Listed
Online website at https://tiih.online.
Issuers issued by the Securities Commission Malaysia on
13 October 2020, including any amendments that may be made
Corporate representatives of corporate members must deposit
from time to time.
their original or duly certified certificate of appointment of
corporate representative to Tricor no later than Sunday,
The Broadcast Venue is strictly for the purpose of complying
6 December 2020 at 10.00 a.m. in order to participate via RPV
with Section 327(2) of the Companies Act 2016 which requires
in the 44th AGM of the Company.
the Chairman of the meeting to be present at the main venue
of the 44th AGM. Members/proxies/corporate representatives
Attorneys appointed by power of attorney must deposit their
WILL NOT BE ALLOWED to attend the 44th AGM of the Company
powers of attorney with Tricor no later than Sunday, 6 December
in person at the Broadcast Venue on the day of the 44th AGM.
2020 at 10.00 a.m. in order to participate via RPV in the
44th AGM of the Company.
REMOTE PARTICIPATION AND VOTING FACILITIES (“RPV”)
A Member who has appointed a proxy or attorney or authorised
Members are to attend, speak [including posing questions to
representative to participate in the 44th AGM of the Company
the Board of Directors of the Company (“Board”) via real time
via RPV must request his/her proxy to register himself/herself
submission of typed texts] and vote (collectively, “participate”)
for RPV on Tricor’s TIIH Online website at https://tiih.online
remotely at the 44th AGM of the Company using RPV provided
by Tricor Investor & Issuing House Services Sdn Bhd (“Tricor”)
As the 44th AGM of the Company is a fully virtual AGM, Members
via its TIIH Online website at https://tiih.online including
who are unable to participate in the 44th AGM may appoint
posing questions to the Board or Management of the Company.
the Chairman of the meeting as his/her proxy and indicate
Please refer to the procedures for RPV.
the voting instructions in the Form of Proxy.
Members who appoint proxies to participate via RPV in the
44th AGM of the Company must ensure that the duly executed
Forms of Proxy are deposited either by hardcopy or electronic
means no later than Sunday, 6 December 2020 at 10.00 a.m.
in the following manner:
a. at Tricor Investor & Issuing House Services Sdn Bhd,
Unit 32-01, Level 32, Tower A, Vertical Business Suite,
Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala
Lumpur or its Customer Service Centre at Unit G-3, Ground
Floor, Vertical Podium, Avenue 3, Bangsar South, No. 8,
Jalan Kerinchi, 59200 Kuala Lumpur; OR
b. lodge electronically via Tricor’s TIIH Online website at
https://tiih.online (applicable to individual shareholders only).
The procedures on electronic lodgement of the Form of
Proxy are summarised in page 371 of this Annual Report.

Fax copies of the duly executed Form of Proxy are not acceptable.

368 09 Shareholder Information

 ANNUAL REPORT 2020

Members/proxies/corporate representatives/attorneys who wish to participate in the 44th AGM of the Company via the RPV are
to follow the requirements and procedures as summarised below:

Procedure Action
BEFORE THE DAY OF 44th AGM
(a) Register as a user with • If you have not registered as a user of TIIH Online, please refer to the tutorial guide posted
TIIH Online on the homepage for assistance to sign up. Registration as a user will be approved within one
working day and you will be notified via email.
• If you are already a user with TIIH Online, you are not required to register again. You will receive
an e-mail from Tricor notifying that the remote participation for the 44th AGM is available for
registration at TIIH Online.
• Login to TIIH Online website at https://tiih.online with your user name (i.e. e-mail address) and
password under the “e-Services” (as illustrated below).

(b) Submission of • Registration is open from Monday, 9 November 2020 until the day of the 44th AGM scheduled
registration for RPV for Tuesday, 8 December 2020. Member(s) or proxy(ies) or corporate representative(s) or
attorney(s) are required to pre-register their attendance for the 44th AGM to ascertain their
eligibility to participate in the 44th AGM using RPV.
• Login with your user ID and password and select the corporate event:
“(REGISTRATION) GAMUDA 44TH AGM”.
• Read and agree to the Terms & Conditions and confirm the Declaration.
• Select “Register for Remote Participation and Voting”.
• Review your registration and proceed to register.
• System will send an e-mail to notify that your registration for remote participation has been
received and will be verified.
• After verification of your registration against the General Meeting Record of Depositors dated
30 November 2020, the system will send you an e-mail confirming approval of your registration
for RPV. The procedures for using the RPV will also be set out in the email. In the event your
registration is not approved, you will also be notified via email.
IMPORTANT:
Whether:
– you are registering as a new user with Tricor’s TIIH Online, or
– you are already a registered user with Tricor’s TIIH Online and you are registering for use of the RPV for
the 44th AGM, please ensure that you register early to allow sufficient time for approval/verification so
that you are able to login to the meeting platform and/or use the RPV.

09 Shareholder Information
369
GAMUDA BERHAD 197601003632 (29579-T)

Administrative Details

Procedure Action
ON THE DAY OF 44TH AGM
(c) Login to TIIH Online • Login with your user ID and password for remote participation at the 44th AGM at any time
from 9.30 a.m. i.e. 30 minutes before the commencement of the 44 th AGM on Tuesday,
8 December 2020 at 10.00 a.m.
(d) Participating through • Select corporate event: “(LIVE STREAMING MEETING) GAMUDA 44TH AGM” to engage remotely
Live Streaming in the proceedings of the 44th AGM of the Company.
• If you have any question for the Chairman/Board, you may use the Query Box to transmit your
question. The Chairman/Board will try to respond to questions submitted by remote participants
during the AGM. If there is time constraint, the responses will be published on the Company’s
website at the earliest possible, after the 44th AGM.
(Note: Questions submitted online will be moderated before being sent to the Chairman to avoid
repetition)
(e) Online Remote Voting • Voting session commences from 10.00 a.m. on Tuesday, 8 December 2020 until a time when
the Chairman announces the end of the session.
To vote, select corporate event: “(REMOTE VOTING) GAMUDA 44TH AGM” or if you are on the
live stream meeting page, you can select “GO TO REMOTE VOTING PAGE” located below the
Query Box.
• Read and agree to the Terms & Conditions and confirm the Declaration.
• Select the CDS account that represents your shareholdings.
• Indicate your votes for the resolutions that are tabled for voting.
• Confirm and submit your votes.
(f) End of remote The Live Streaming will end upon announcement by the Chairman on the closure of the 44th AGM.
participation

Note to users of the RPV:

– Once your application to join the 44th AGM is approved, you will be granted the right to participate in the live stream
broadcast of the 44th AGM and to vote remotely. Your login to TIIH Online on the day of the 44th AGM will indicate
your presence at the virtual meeting.
– The quality of your connection to the live broadcast is dependent on the bandwidth and stability of the internet at your
location and the device you use.
– If you encounter any issues with logging-in, connection to the live streamed meeting or online voting, kindly call
Tricor Help Line at 011-40805616 / 011-40803168 / 011-40803169 / 011-40803170 for assistance or e-mail to
tiih.online@my.tricorglobal.com for assistance.

370 09 Shareholder Information

 ANNUAL REPORT 2020

ELECTRONIC LODGEMENT OF PROXY FORM

Procedures to lodge your Form of Proxy electronically via Tricor’s TIIH Online website are summarised below:

Procedure Action

BEFORE THE DAY OF 44TH AGM

(a) Register as a • If you have not registered as a user of TIIH Online, please refer to the tutorial guide posted on
User with TIIH Online the homepage for assistance to sign up. Registration as a user will be approved within one working
day and you will be notified via email.
• If you are already a user with TIIH Online, you are not required to register again. You will receive
an e-mail from Tricor notifying that the remote participation for the 44th AGM is available for
registration at TIIH Online.
• Login to TIIH Online website at https://tiih.online with your user ID (i.e. e-mail address) and password
under the “e-Services”.

(b) Submission of • After the release of the Notice of Meeting by the Company, login with your user ID (i.e. email
Form of Proxy address) and password.
• Select the corporate event: “GAMUDA 44TH AGM – SUBMISSION OF PROXY FORM”.
• Read and agree to the Terms & Conditions and confirm the Declaration.
• Insert your CDS account number and indicate the number of shares for your proxy(ies) to vote on
your behalf.
• Appoint your proxy(ies) and insert the required details of your proxy(ies) or appoint the Chairman
as your proxy.
• Indicate your voting instructions, FOR or AGAINST, otherwise your proxy will vote or abstain as
he/she thinks fit.
• Review and confirm your proxy(ies) appointment.
• Print Form of Proxy for your record.

VOTING PROCEDURE GENERAL MEETING RECORD OF DEPOSITORS

Voting at the 44th AGM of the Company will be conducted by Only Members whose names appear in the General Meeting
poll in accordance with Paragraph 8.29A of Main Market Listing Record of Depositors of the Company maintained by Bursa
Requirements of Bursa Malaysia Securities Berhad. Malaysia Depository Sdn Bhd as at 30 November 2020 shall
be entitled to participate in the 44th AGM or appoint proxies to
To facilitate the voting process, the Company has appointed participate on their behalf.
Tricor as the Poll Administrator to conduct the poll by way of
online remote voting and Coopers Professional Scrutineers
Sdn Bhd as the Scrutineers to verify the poll results.
(Please refer to “Online Remote Voting” under item (e) in the
table above on the procedures for online remote voting).

Upon completion of the voting session for the 44th AGM of the
Company, the Scrutineers will verify the poll results followed
by the Chairman’s announcement whether the resolutions are
duly passed.

09 Shareholder Information
371
GAMUDA BERHAD 197601003632 (29579-T)

Administrative Details

ANNUAL REPORT 2020 AND OTHER DOCUMENTS

The Company’s Annual Report 2020, Corporate Governance Report 2020, Statement to Shareholders in relation to the Proposed
Renewal of Share Buy-back Authority, Notice of the 44th AGM, Form of Proxy and this Administrative Details are available on
the Company’s website at www.gamuda.com.my and Bursa Malaysia’s website at www.bursamalaysia.com.

You may request for a printed copy of the Annual Report 2020 and the other documents mentioned above at https://tiih.online
by selecting “Request for Annual Report/Circular” under the “Investor Services” (as illustrated below). Nevertheless, we hope
that you would consider the environment before you decide to request for the printed copy.

PRE-MEETING SUBMISSION OF QUESTION(S) TO THE BOARD ENQUIRY

Members/proxies/corporate representatives may submit If you have any enquiry prior to the 44th AGM of the Company,
questions for the Board prior to the 44th AGM via TIIH Online please contact the following officers during office hours on
website at https://tiih.online by selecting “e-Services” to Mondays to Fridays from 9.00 a.m. to 5.30 p.m. (except public
login, pose questions and submit electronically no later than holidays):
Sunday, 6 December 2020 at 10.00 a.m. The Board will endeavour
to answer the questions received at the 44th AGM of the Company.
Tricor Investor & Issuing House Services Sdn. Bhd.

NO DOOR GIFT/LUNCH PACK General Line : +603-2783 9299

Fax Number : +603-2783 9222
There will be NO door gift or lunch pack for Members or proxies
who participate at the 44th AGM of the Company since the 44th Email : is.enquiry@my.tricorglobal.com
AGM will be conducted on a fully virtual basis. Contact persons : Mr. Tee Yee Loon
+603-2783 9242
The Board would like to thank all its Members for their kind (Yee.Loon.Tee@my.tricorglobal.com)
co-operation and understanding on this matter. Ms. Christine Cheng
+603-2783 9265
NO RECORDING OR PHOTOGRAPHY (Christine.Cheng@my.tricorglobal.com)

Unauthorised recording and photography are strictly prohibited Encik Zulkifli Bin Mohd Yusof
at the 44th AGM of the Company. +603-2783 9249
(Zulkifli@my.tricorglobal.com)

372 09 Shareholder Information

 Company Registration No.
197601003632 (29579-T)

Form of Proxy CDS account no. of authorised nominee (Note 1)

*I/We (full name and in block letters)

*NRIC/Passport/Company No. (compulsory) Mobile Phone No.:

Address (in block letters):

being a member of Gamuda Berhad (“the Company”) hereby appoint:-

First Proxy

Full Name (in block letters) NRIC/Passport No. Proportion of Shareholdings

No. of Shares %
Address:

*or failing *him/her,

Second Proxy (as the case may be)

Full Name (in block letters) NRIC/Passport No. Proportion of Shareholdings

No. of Shares %
Address:

or failing * him/her, the Chairman of the Meeting as * my/our Proxy to vote for * me/our behalf at the Forty-fourth Annual General Meeting
of the Company (“44th AGM”) to be conducted fully virtual via Remote Participation and Voting (“RPV”) at the Auditorium, Level 2,
Menara Gamuda, Block D, PJ Trade Centre, No. 8, Jalan PJU 8/8A, Bandar Damansara Perdana, 47820 Petaling Jaya, Selangor Darul Ehsan
on Tuesday, 8 December 2020 at 10.00 a.m. and at any adjournment thereof.

Resolution Ordinary Business For Against

1 Approval of Directors’ fees
2 Approval of payment of Directors’ remuneration (excluding Directors’ fees)
3 Re-election of YBhg Dato’ Mohammed Hussein as a Director
4 Re-election of YTM Raja Dato’ Seri Eleena binti Almarhum Sultan Azlan Muhibbudin Shah
Al-Maghfur-lah as a Director
5 Re-election of YBhg Tan Sri Dato’ Setia Haji Ambrin bin Buang as a Director
6 Re-appointment of Ernst & Young PLT as Auditors and to authorise the Directors to fix the
Auditors’ remuneration
Special Business
7 Ordinary Resolution:
Authority to Issue Shares pursuant to Sections 75 and 76 of the Companies Act 2016
8 Ordinary Resolution:
Proposed Renewal of Share Buy-back Authority
9 Ordinary Resolution:
Issuance of New Shares pursuant to the Dividend Reinvestment Plan
(Please indicate with an “X” or “√” in the appropriate box against the resolution how you wish your Proxy to vote. If no instruction is
given, this form will be taken to authorise the Proxy to vote at his/her discretion)

Signed this day of , 2020.

No. of Shares held

Signature/Common Seal of Shareholder

IMPORTANT: PLEASE READ NOTES OVERLEAF

Notes:
1. Applicable to shares held through a nominee account. 7. If the appointor is a corporation, the Form of Proxy shall be under the corporation’s seal or
2. In order to curb the spread of Coronavirus Disease 2019 (“COVID-19”), the 44th AGM will be under the hand of an officer or attorney duly authorised.
held on a fully virtual basis through live streaming and online remote voting via the Remote 8. If no name is inserted in the space provided for the name of your proxy, the Chairman of the
Participation and Voting facilities (“RPV”) provided by Tricor Investor & Issuing House Services Meeting will act as your proxy.
Sdn Bhd (“Tricor”) which are available on its TIIH Online website at https://tiih.online. Please 9. For Members who are individual persons, the appointment of a proxy may be made in a hard
follow the procedures provided in the Administrative Details for the 44th AGM in order to register, copy form or by electronic means. For Members who are not individual persons (e.g. corporate
participate and vote remotely via the RPV. member, Exempt Authorised Nominee, etc), the appointment of a proxy MUST be made in a
3. The Broadcast Venue is strictly for the purpose of complying with Section 327(2) of the Companies hard copy form only. Form of Proxy must be submitted in the following manner, not less than
Act 2016 which requires the Chairman of the meeting to be present at the main venue of the forty-eight (48) hours before the time appointed for holding the 44th AGM or at any adjournment
44th AGM. No members or proxies shall be allowed to be physically present at the Broadcast thereof:
Venue on the day of the 44th AGM. i. Hard copy (applicable for all Members):
4. Every Member of the Company is entitled to:- The original signed Form of Proxy must be deposited with the Share Registrar of the Company,
i. appoint another person as his proxy to exercise all or any of his rights to participate and/ Tricor Investor & Issuing House Services Sdn Bhd at Unit 32-01, Level 32, Tower A, Vertical
or vote at the 44th AGM and that proxy may but need not be a Member of the Company. Business Suite, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur,
ii. appoint more than one (1) person as his proxy provided that he specifies the proportions of Malaysia or alternatively, the Customer Service Centre at Unit G-3, Ground Floor,
his shareholdings to be represented by each proxy. Vertical Podium, Avenue 3, Bangsar South, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur,
5. Where a Member of the Company is an Authorised Nominee as defined under the Securities Malaysia; OR
Industry (Central Depositories) Act, 1991, it may appoint at least one (1) proxy but not more ii. Electronic means (applicable for Members who are individual persons only):
than two (2) proxies in respect of each securities account it holds with ordinary shares of the You may also submit the Form of Proxy electronically via TIIH Online website at
Company standing to the credit of the said securities account. If more than one (1) proxy is https://tiih.online by following the procedures provided in the Administrative Details for the
appointed, the appointment shall be invalid unless the Authorised Nominee specifies the 44th AGM.
proportions of the shareholdings to be represented by each proxy.
10. Only a Depositor whose name appears in the Record of Depositors as at 30 November 2020
6. Where a Member is an Exempt Authorised Nominee as defined under the Securities Industry shall be entitled to participate and/or vote in the 44th AGM via RPV or appoints a proxy or
(Central Depositories) Act, 1991, which holds ordinary shares in the Company for multiple proxies to participate and/or vote on his/her behalf.
beneficial owners in one (1) securities account (“Omnibus Account”), there is no limit to the
11. To register, participate and/or vote in the 44th AGM of the Company via RPV and appoint proxy/
number of proxies which the Exempt Authorised Nominee may appoint in respect of each
authorised representative, please follow the Procedures for RPV in the Administrative Details.
Omnibus Account it holds. If more than one (1) proxy is appointed in respect of each Omnibus
Account, the appointment shall be invalid unless the Exempt Authorised Nominee specifies the
number of shares to be represented by each proxy. * Delete where not applicable

fold here

AFFIX
The Share Registrar SUFFICIENT
STAMP
Gamuda Berhad (197601003632 (29579-T))
c/o Tricor Investor & Issuing House Services Sdn Bhd (197101000970 (11324-H))
Unit 32-01, Level 32, Tower A
Vertical Business Suite
Avenue 3, Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur.

fold here
Gamuda Berhad 197601003632 (29579-T)
Menara Gamuda, Block D, PJ Trade Centre
No. 8, Jalan PJU 8/8A, Bandar Damansara Perdana
47820 Petaling Jaya
Selangor Darul Ehsan, Malaysia
(603) 7491 8288 (603) 7728 9811 gcc@gamuda.com.my gamuda.com.my

GamudaBhd GamudaBhd GAMUDA gamudagroup Gamuda Berhad