KUCHING: Sarawak-based CCK Consolidated Holdings Bhd (CCK) expects tough times to persist for the local economy, but will see past investments bearing fruit in 2016 and beyond.
According to non-indendent non-executive chairman Datuk Tiong Su Kouk, the coming minimum wage hike was one such rise in costs for businesses hre.
“During the tabling of Budget 2016, Prime Minister Datuk Seri Najib Razak announced that the minimum wage for employees in Peninsular Malaysia will be raised by RM100 to RM1,000 per month and by RM120 from RM800 to RM920 for employees in East Malaysia, effective July 1, 2016.
“As such, we anticipate that this increment in wages will affect our costs,” he said in CCK’s Annual Report 2015.
“With tough times expected, we at CCK remain positive about 2016 and beyond. The investments made in the past few years are now gradually bearing fruit and we believe that our performances in the future will reflect the strength of our position.”
To note, for the financial year ended Dec 31, 2015, the group recorded a revenue of RM494 million as compared to RM451 million in the financial year ended Dec 31, 2014, an increase of 9.5 per cent.
“Profit before tax for 2015 was recorded at RM16 million, an increase of 24 per cent. Despite the difficult economic conditions, we are indeed pleased to have been able to continue our gradual recovery and reap the benefits of our investments during the past few years.
“Employee engagement remains a high priority as we believe that our people are our best assets,” he highligited.
“Recognising that we are in the food business, maintaining a high level of cleanliness and health among our employees is crucial. As such, we constantly strive to adhere to the standards of the Department of Safety and Health and the Ministry of Health.
“To ensure our employees are fully aware of this, there are always new training courses and new equipment introduced to ensure our employees are working in a safe and secure environment.”