Malaysia Airports Holdings Berhad 100 >> Our Performance Ma n a g e m e n t D i s c u s s i o n a n d A n a ly s i s The major achievement of MACS ME was in securing the extension of the IT maintenance support contract for another five years from December 2019 to December 2024, with a total contract value of QAR388.7 million. This is notable because we first secured the contract for an initial three years beginning December 2014. It was extended for a second term from December 2017 till December 2019. The third term for a further five years is testament to our performance in delivering the contractual obligations and support services effectively at DOH, a five-star airport. We had also secured change/variation orders under the facilities management services for the site office, warehouse and associated facilities. The contract was extended for another 14 months from December 2019 till April 2021, after which we will participate in the retender exercise. It was an equally challenging year for us in Qatar due to the pandemic. The Ministry of Public Health had put in place new health and safety regulations for workplaces and project implementation, causing some delays and additional compliance costs, particularly as the regulations change in tandem with public health considerations. We had adjusted staff accommodation, transportation and working hours, and also made available personal protective equipment (PPE) and IT equipment to adapt to the new business norms and regulations. MACS (Malaysia operations) MACS’s revenue decreased 32.6% YoY to RM11.8 million in 2020, due to the deferment of ACSPP projects from MASB Airports and several projects for the installation of Aeronautical Ground Lighting (AGL). However, during the year, we completed the two aircraft ground lighting (AGL) projects at LGK and PEN. This was achieved despite disruptions caused by the pandemic to the production of the AGL equipment in Europe, and the reduction in cargo shipment schedules between Europe and Asia. We also had to contend with managing interstate movement of staff, contractors and field experts to complete the projects during a period when such travel was severely limited by the Movement Control Orders in force. Another significant project was the ASQ Workshop and engagement with all relevant stakeholders in KUL to refine and focus their efforts on delivering the service standards and quality required for the airport to achieve top 10 ranking in the ASQ survey. Those efforts formed part of the team effort to propel KUL into the top 10 in 2020, with a vastly improved score of 4.98/5. UTW Despite the challenges of 2020, revenues for UTW stood at RM117.3 million, a decrease of 4.7% YoY. These gains were achieved on the back of LEAN management initiatives, cost optimisation and improved productivity. Among the highlights for 2020 are the renewal of facilities management agreements in relation to KUL (encompassing KLIA1, klia2 and KUL ancillary buildings) for a duration of three years. In addition, UTW gained new facilities management clients, namely SPIRIT Aerosystems Malaysia, Cainiao Aeropolis eWTP Hub and Novugen Pharma (Malaysia). There were challenges faced this year in relation to the pandemic, particularly in streamlining the terms and deliverables of existing contracts in light of the new norms and health and safety requirements. However, our initiatives had helped clients save and avoid costs. For example, under our Lean Six Sigma Management programme, we completed eight key initiatives delivering cost savings and contract cost optimisation of over RM18.0 million to Malaysia Airports. In addition, UTWhas delivered a digital platform for maintenance of washrooms at KUL which has improved service quality, increased efficiency and optimised operational costs. The improvements have also contributed to KUL’s performance in the ASQ and Quality of Service (QoS) surveys. An example of the technology advancement is the UTW Smart Asset Solution Management that provides a digital platform for UTW and its clients relating to maintenance works. The digital platform covers maintenance workflows such as activities, verifications, user complaints, approvals as well as real time dashboards and reports, simplifying and streamlining maintenance workflows for both UTW and its clients. UTW has also invested in the formation of a sanitisation squad to undertake disinfection activities at the airports. This includes installation of UV sanitisation equipment at escalators, washrooms and baggage areas. These methods were trialled at the airports and upon receiving approval from the Ministry of Health, they were extended to all external clients’ facilities.
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