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MTQ Corporat ion Limi ted Annual Repor t 2012/13 3
CHAIRMAN’S STATEMENT
A big challenge for the Group moving ahead will
be integrating the newly acquired operations and
ensuring that they continue to do well as individual
businesses and also star t to reap benefits from the
wider association. Retaining and elevating manpower
is a perennial issue facing companies like MTQ. We
aim to unlock synergies between the existing and
newly acquired businesses and want to move into
a commanding position to cross-sell the enlarged
range of products and services to a much broader
base of clients. Manpower policies continue to make
it extremely difficult to grow organically in Singapore.
We continue to look for productivity gains through
equipment upgrades and process reviews where we
can. In Bahrain, while there are no similar regulatory
restrictions on recruitment of foreign labour, we face
the challenge of recruiting adequate supervisory
staff and developing the local team so that they can
maximise the output of the facility. With Neptune, we
have acquired an experienced team of about 250 full-
time professionals, whom we will look to develop and
grow to complement our manpower teams elsewhere.
This is an impor tant par t of the Neptune acquisition
and it is very much our intention to retain this team
and grow where the market allows us to.
Our Australian engine systems operations remained
profitable, but recorded tepid sales growth. The
challenge of broadening our engagement with
national OEMs and resource-centric companies
remains an on-going one.
Overall, the Group’s financial position remains healthy
which allows us to plan ahead to suppor t existing
businesses as well as to explore oppor tunities. Our
banks have been suppor tive in helping us to expand
our footprint.
The Board is recommending a tax-exempt (one-tier)
final dividend of 2.0 Singapore cents per ordinary
share, which is subject to shareholders’ approval
at the for thcoming Annual General Meeting. The
Board has also under taken a 1 for 4 bonus share
offer to existing shareholders to reward them for their
continuing suppor t. Subject to regulatory approval,
these new shares will be eligible for the proposed
final dividend which will result in an effective full year
tax-exempt dividend of 4.5 Singapore cents per share.
The Board has also been conscious of the need to
raise corporate governance standards, par ticularly
in light of the recommended guidelines given under
the revised Code of Corporate Governance 2012 (the
“2012 Code”) issued on 2 May 2012. Key developments
for MTQ include the appointment of Mr. Nicholas
Campbell Cocks as our Lead Independent Director.
Mr. Cocks has been on the Board since October
2010 and also sits on the Remuneration Committee.
I want to thank him for assuming this responsibility.
With effect from 6 May 2013, both Mr. Ong Choo Eng
and Mr. Christopher Ho Han Siong have been re-
designated as Independent Directors of the Company.
With the re-designation, five out of seven directors
on our Board are independent directors. I thank the
Board for its suppor t and guidance in the past year.
I would also like to thank all our customers, business
par tners and shareholders for their continuous
suppor t, and express my hear tfelt gratitude to the
management team and staff for their hard work and
dedication. We are optimistic about the prospects
for the Group in the new year and will continue to
focus on delivering shareholder value while growing
our businesses.
KUAH KOK KIM
Non-Executive Chairman