Sime Darby Property expects to resolve labour shortage by 4Q
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- 01 Sep 2022
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Sime Darby Property Bhd (SDP) anticipates that the labour shortage issue would be resolved within the next two months and that it will hire more workers to speed up its progress by the end of the fourth quarter of this year (4Q22).
This is given that the group is currently experiencing a labour shortage of up to 50% at the site, compared to a 60% shortage in the first half of 2022 (1H22).
Group MD Datuk Azmir Merican said although nearly 30% of SDP’s projects were delayed due to these challenges, the company had successfully delivered five of its projects on time.
“We need to understand that as the economy recovers post-Covid-19, this is a unique situation where the supply chain is being activated, but it is not going in the direction we intended. This was something that was not unexpected.
“We have managed to bring down delayed projects due to labour shortages to around five to 10% now from 20%-30%. So, we will be able to hand over the rest of the projects by the end of this year,” he told reporters after SDP’s 2Q and 1H financial performance virtual briefing today.
Azmir said the group will continue to introduce more products that resonate with the market, given the encouraging demand from its recent launches and its continued financial strength of RM820 million and net gearing of 30.3% as at 1H22, which ensure it is well-positioned to fund future growth initiatives.
“SDP’s 1H performance has outperformed expectations to date and we are confident of surpassing the group’s financial year 2022 sales target of RM2.6 billion, underpinned by new launches worth RM2.8 billion in gross domestic value.
“For the remainder of the year, we are looking forward to many exciting new developments including the launch of the Battersea Power Station in the UK in October and the ongoing progress of our Industrial Development Fund through the joint venture with LOGOS Property, a new source of recurring income for the group in line with its long-term strategy,” he said.
Overall, the group outlook for the industry has been reasonably good in the current situation as buyers would tend to buy property from reputable developers that could deliver quality products and complete the property on time. Read More...
