Annual Report 2019
Our revenue profile continues to shift away from fiber optic cables to our new business of engineering services, manufacturing of engineered plastics, and production and export of thixotropic compounds which were nonexistent five years ago – constituted about 62% of the Group’s turnover in 2019. We expect our new businesses to further increase their contribution to the Group’s revenue in the years to come.
FY2019 was a difficult year for the fiber optic cables industry in Malaysia. Factors including rising raw materials cost, lower industry price levels, ringgit weakness and the influx of cheap imports contributed to the overall weak industry situation. In addition, general macro uncertainties over the past twelve (12) months saw a big drop in demand for fiber optic cable, and our selling margins were adversely reduced due to foreign competition and the inability to pass on increased cost to key customers.
On behalf of our Board of Directors, I would like to thank our customers, business partners and associates for their continued trust and confidence in us. Our heartfelt gratitude to our shareholders for their continuing support and confidence in OPCOM.
I would like to also thank the Board, management team and all employees for their wise counsel, hard work, and commitment to drive OPCOM forward.
Last but not least, I would also like to thank our past Chairman, Tan Sri Mokhzani Mahathir for his stewardship of the Group over the past ten (10) years.
Dato’ Mohamed Sharil Bin Mohamed Tarmizi
Chairman and Independent Non-Executive Director