SEMBCORP CONSTRUCTION IS FIRST LOCAL CONTRACTOR TO WIN MORE THAN S$1BILLION ORDER IN A SINGLE YEAR

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1 PRESS RELEASE SEMBCORP CONSTRUCTION IS FIRST LOCAL CONTRACTOR TO WIN MORE THAN S$1BILLION ORDER IN A SINGLE YEAR 1. SembCorp Construction set a record in the local construction industry by winning $1.028 billion worth of contracts in 1998, according to the results of the BCA Singapore Top 30 Construction Companies Survey. 2. Its major contracts included the LRT Systems for Sengkang and Punggol, Changi Airport MRT Station, SATS Inflight Catering Centre 3, 17 blocks of stackup factories at Woodlands and a commercial cum residential project in Tianjin, China, called The Exchange. 3. The construction arm of listed SembCorp Industries, the company was formed from the merger of Singapore Technologies Construction and the building and civil division of Sembawang Engineering & Construction in December The merger created one of the largest construction companies in ASEAN. SembCorp is Well Placed to Embrace C21 Strategic Thrusts 4. The recent launch of Construction 21 (C21) aims to address the current inefficiencies in the construction industry and transform it into a knowledge industry. Given that upstream decisions have an impact on downstream construction processes, the C21 Study addressed issues across the construction value chain, from design to construction and to maintenance. 5. One of the main causes of low productivity in the industry is the lack of integration of activities across the construction value chain where design is segregated from construction or other downstream processes. Closer integration

2 among the industry players in carrying out a project would facilitate the adoption of good practices as many of such practices (buildability, safety and maintainability) have to be considered or specified at the design stage. This will bring about higher efficiency and productivity. 6. SembCorp Construction s main forte is in building and civil engineering construction and design consultancy. With its own in-house multi-disciplinary design division and its capability to manufacture its own specialised precast components, SembCorp is well placed to embrace the C21 strategic thrusts. 7. The integration of its design, construction and precasting capabilities has created important competitive benefits, such as buildable designs, fast-track construction, better quality construction, and cost savings. The company has won 8 BCA Best Buildable Design Awards and eleven BCA Awards for Construction Excellence between 1987 and Sembcorp Construction is also active globally. Said Mr Paul Chain, the President of SembCorp Construction, "The merger had added a boost to the company s regionalisation drive, as it now has additional resources and greater financial strength to pursue major projects in the region. The company started its first overseas project in 1988 in China and, to-date, has undertaken about 40 projects in 20 cities outside Singapore". Ranking by Contracts Awarded 9. Besides SembCorp Construction, two other construction companies have done well in Evan Lim & Company Pte Ltd shot up from 22 nd position to the second position, chalking up $400 million worth of contracts. The major projects secured were the National Institute of Education Building at Nanyang Avenue and a 9 multi-storey warehouse complex at Jurong Port Road. BBR Holdings (S) Ltd was placed third, with a total of $326 million. Its major contracts included the Cantonment Complex and a warehouse at Jalan Buroh. 10. Eight companies also made their debut in the contracts awarded list: Seatown Construction Pte Ltd (10 th ), Antara Koh Pte Ltd (18 th ), Keng Heng

3 Construction Pte Ltd (19 th ), Evergreat Construction Company (Pte) Ltd (22 nd ), Deenn Engineering Pte Ltd (24 th ), Chew Eu Hock Construction Company Pte Ltd (27 th ), Lean Hin Lee Contractor & Trading (Pte) Ltd (28 th ) and Chip Huat Construction Co Pte Ltd (29 th ). Ranking by Turnover 11. This year s Top 10 in the Turnover List had a total turnover of $3.57 billion, a 10.5% increase over 1997 s total of $3.23 billion. SembCorp Engineering Pte Ltd (formerly known as Sembawang Engineering and Construction Pte Ltd) retained its top place with a turnover of $711 million. Econ International Ltd secured the second spot with $449 million while SembCorp Construction retained its third position with a turnover of $428 million. 12. As in 1997, 1998 s turnover list remained relatively stable with 21 companies from last year s list appearing in this year s ranking. There were four new entrants to the list: Koon Construction and Transport Company Pte Ltd (5 th ), Chew Eu Hock Construction Company Pte Ltd (16 th ), Rotary Engineering Limited (20 th ) and Kimly Construction Pte Ltd (21 st ). BCA SINGAPORE TOP 30 CONSTRUCTION COMPANIES (By Contracts Awarded) POSITION COMPANY TOTAL CONTRACTS AWARDED (S$) 1 ** SEMBCORP CONSTRUCTION PTE 1,027,852, EVAN LIM & COMPANY PTE 399,602,927 3 # BBR HOLDINGS (S) 326,077, L&M GROUP INVESTMENTS LIMITED 302,193, CHIP ENG SENG CONTRACTORS (1988) PTE 265,370, PILLAR CORPORATION PTE 251,895, LOW KENG HUAT (SINGAPORE) LIMITED 217,990, ENG LIM CONSTRUCTION CO PTE 205,100, STRAITS CONSTRUCTION CO PTE 200,265, SEATOWN CONSTRUCTION PTE 199,212,159

4 11 - HUA KOK REALTY (PTE) 190,094, LUM CHANG BUILDING CONTRACTORS PTE 177,091, HIAP HOE & COMPANY PTE 165,010, SUM CHEONG PILING PTE 158,065, KOH BROTHERS BUILDING & CE CONTRACTORS PTE 156,940, TIONG SENG CONTRACTORS (PTE) 146,900, SINGAPORE PILING & CIVIL ENGINEERING PTE 143,596, ANTARA KOH PRIVATE LIMITED 141,532, KENG HENG CONSTRUCTION PTE 139,884, NEO CORPORATION PTE 133,098, SANTARLI CONSTRUCTION PTE 132,972, EVERGREAT CONSTRUCTION COMPANY (PTE) 130,067, BESTBUILD DEVELOPMENT PTE 124,411, DEENN ENGINEERING PTE 119,776, WEE POH CONSTRUCTION CO PTE 107,603, ECON INTERNATIONAL LIMITED 105,795, CHEW EU HOCK CONSTRUCTION COMPANY PTE LEAN HIN LEE CONTRACTOR & TRADING (PTE) 103,877, ,500, CHIP HUAT CONSTRUCTION CO PTE 99,420, * SEMBCORP ENGINEERING PTE 99,363,816 TOTAL : 6,074,560,809 * ** SembCorp Engineering Pte Ltd is formerly known as Sembawang Engineering & Construction Pte Ltd Sembawang Engineering & Construction Pte Ltd clinched the 1st position in the 1997 survey. SembCorp Construction Pte Ltd is formerly known as Singapore Technologies Construction Pte Ltd.

5 Singapore Technologies Construction Pte Ltd clinched the 2nd position in the 1997 survey. # BBR Construction Systems Ltd clinched the 28th position in the 1997 survey. POSITION BCA SINGAPORE TOP 30 CONSTRUCTION COMPANIES (By Turnover) COMPANY TOTAL TURNOVER (S$) 1 * SEMBCORP ENGINEERING PTE 710,547,000 2 # ECON INTERNATIONAL LIMITED 448,963,000 3 ** SEMBCORP CONSTRUCTION PTE 428,494, JURONG ENGINEERING 314,203, KOON CONSTRUCTION & TRANSPORT CO PTE 310,129, L&M GROUP INVESTMENTS LIMITED 301,845, EVAN LIM & COMPANY PTE 292,585, NEO CORPORATION PTE 270,510, LIAN BENG CONSTRUCTION (1988) PTE 247,272, BORED PILING PTE 241,496, PILLAR CORPORATION PTE 241,408, ENG LIM CONSTRUCTION CO PTE 230,412, TONG TIEN SEE CONSTRUCTION PTE 220,925, KOH BROTHERS BUILDING & CE ONTRACTORS PTE 217,638, POH LIAN CONSTRUCTION PTE 191,562, CHEW EU HOCK CONSTRUCTION COMPANY PTE 179,997, LUM CHANG BUILDING CONTRACTORS PTE 171,924, LOW KENG HUAT (SINGAPORE) LIMITED 157,644, TONG HUP SENG CONSTRUCTION COMPANY PTE 156,471, ROTARY ENGINEERING LIMITED 148,854,000

6 21 - KIMLY CONSTRUCTION PTE 144,550, HO LEE CONSTRUCTION PTE 140,859, TIONG SENG CONTRACTORS (PTE) 140,734, ## BBR HOLDINGS (S) 140,111, TIONG AIK CONSTRUCTION PTE 131,767, SUM CHEONG PILING PTE 131,189, KEPPEL ENGINEERING PTE 125,762, WAN SOON CONSTRUCTION PTE 121,292, CHIP ENG SENG CONTRACTORS (1988) PTE 115,768, WOH HUP (PTE) 115,057,000 TOTAL : 6,789,977,174 * ** SembCorp Engineering Pte Ltd is formerly known as Sembawang Engineering & Construction Pte Ltd Sembawang Engineering & Construction Pte Ltd clinched the 1st position in the 1997 survey. SembCorp Construction Pte Ltd is formerly known as Singapore Technologies Construction Pte Ltd. Singapore Technologies Construction Pte Ltd clinched the 3rd position in the 1997 survey. # Econ Piling Pte Ltd clinched 14th position in the 1997 survey. ## BBR Construction Systems Ltd clinched the 17th position in the 1997 survey. Issued by the Building and Construction Authority on 21 October 1999

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