On behalf of the Board of Directors, I present the annual report of King Wan Corporation Limited (“King Wan”) for the financial year ended 31 March 2021 (“FY2021”).
For the whole of 2020, the Singapore economy contracted by 5.4%, a reversal from the 1.3% growth recorded in 2019. In particular, the construction sector shrank by 35.9%, a sharp retraction from the 1.6% growth posted in 2019, weighed down by weakness in both public sector and private sector construction works.(1)
The COVID-19 pandemic has undoubtedly imposed unprecedented challenges on the construction industry in Singapore where the Group is mainly operating in. During the “Circuit Breaker” period in Singapore from 7 April 2020 to 1 June 2020, almost all the construction activities were halted. Following the progressive easing of restrictions and as economies reopening after the “Circuit Breaker” period, the construction progress at sites is slowed down by the requirement to comply with the safe management measures. The manpower crunch is further exacerbated by the border restrictions on the entry of foreign workers from South Asia which has led to an increase in manpower cost. In addition, the stiff global competition for resources and increase in freight cost have also pushed up the cost of materials. We have also observed a plunge in the contracts awarded for construction works amid the prevailing market uncertainties.
To navigate this unprecedented global health and economic crisis, we adopted a proactive approach, through financial prudence and depended on our core competencies, to deliver our services in a more cost effective and efficient manner. We continue to be committed to enhance our capabilities to capture opportunities.