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Success stories
MHB Year of tremendous growth for MHB with net profit surging to RM68m, the first NPAT since 2017 short, it had to demonstrate ‘adaptation’ and ‘prudence’ to reverse four straight years of losses and return to profitability. Pandai Othman, CEO and Managing Director
How is MHB thriving? Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has embarked on a series of strategic shifts and transformations over the past two years, where these realignments have facilitated it to return to profitability at a far greater magnitude than previously expected. Now, with a healthy pipeline of projects awarded and currently being developed by both business divisions i.e., heavy engineering and marine, momentum is clearly gathering pace.
The solution Having conducted a thorough strategic risks and opportunities assessment, MHB enacted several transformations through 2022 that have driven its turnaround. The first focus was on capability development. Here, the company developed three functional core teams in the disciplines of Design Engineering, Transportation & Installation (T&I), and Hook-up & Commissioning (HUC). Alongside this, it also expanded the scope of its in-house work to strengthen self-reliance for critical processes, as well as upskilled numerous employees through external courses and on-the-job training.
The challenge The past decade has felt like an unrelenting conveyor belt of challenges. Year after year, companies operating in the energy space have been hit hard by the low oil price scenario from 2014/15, economic downturn and ongoing geopolitical tensions in various parts of the world. The COVID-19 pandemic in particular has caused disruptions, for instance, forced shutdowns of activities, new safety procedures, and a crunch in the supply of labour which often relies on seamless cross-border travel. MHB is no stranger to these dynamics. Faced with such a mix of challenges, its leadership embarked on a detailed reassessment of risks, challenges and opportunities. Indeed, if it was to emerge from this period of difficulty stronger, the company needed to realign its key strategic priorities to ensure sustainable growth and enhanced competitiveness. In
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EIC Survive and Thrive
Another key transformation executed was in the form of digitalisation. Named the PANTHERA initiative, the strategy centres around optimising and digitalising end-to-end Engineering, Procurement, Construction, Installation & Commissioning (EPCIC) supply chain management processes, from bid preparation through to end of warranty. Work processes will be documented, and data altered and used with transparency, reliability and traceability to establish a single source of truth for any particular project at any one time. Although this digitalising effort is still being implemented phase by phase, the company is already reaping its commercial benefits. The third key focus concerns culture, especially in regard to the way MHB approaches risk management. Over the last two years, the company has totally revamped its risk-related processes, setting up a host of standard procedures that made risk management compulsory, clear and transparent
2023