CHAIRMAN’S
STATEMENT
Suntec Real Estate Investment Trust
(“Suntec REIT”)
As at December 2015, Straits Trading’s
direct interest in Suntec REIT was
approximately 4%. Straits Trading’s
aggregate shareholding (including its
deemed interest in shares of Suntec
REIT held by ARA) as at January 2016
was 8.21%. This strategic shareholding
strengthens Straits Trading’s real estate
ecosystem by giving it an interest in
Suntec REIT which is managed by ARA
Trust Management (Suntec) Limited, a
wholly-owned subsidiary of ARA. The
investment in Suntec REIT also provides
a regular dividend income stream for
Straits Trading.
For more information on Suntec REIT
Limited, please visit
Far East Hospitality Holdings Pte. Ltd.
(“Far East Hospitality”)
Far East Hospitality, Straits Trading’s
30%-owned associate owns and
operates a combined portfolio of more
than 13,000 rooms under management
across close to 90 hotels and serviced
residences in seven countries and is the
largest hospitality operator in Singapore
with 18 hotels and serviced residences.
Outside of Singapore and Malaysia, Toga
Far East Hotels (“TFE Hotels”), a 50-50
joint venture between Far East Hospitality
and Australia’s Toga Group, owns and
operates hotels and serviced residences.
Straits Trading will look to capitalise
on this large and scalable hospitality
platform by leveraging on the inherent
synergies to grow its portfolio in ASEAN,
Australia, New Zealand and Europe.
For more information on Far East
Hospitality Holdings, please visit
Malaysia Smelting Corporation Berhad
(“MSC”)
The resources business under MSC
reported lower revenue and a loss
in 2015 due to lower sales quantity
of refined tin coupled with lower tin
prices compared with last year. Market
conditions continue to be challenging
due to the depressed global commodity
and resources sector. Although the
underlying core operations of MSC are
expected to perform satisfactorily in
2016, MSC’s Board remains cautious
on the impact of the low tin price and
foreign exchange fluctuations.
For more information on MSC, please
visit:
FINANCIAL PERFORMANCE
For the financial year ended 31
December 2015 (“FY2015)”, Straits
Trading posted a net profit of S$8.5
million. Overall contributions from the
Group’s associates and joint ventures
were higher in FY2015. Profit after tax
and non-controlling interests was lower
than 2014 principally due to the absence
of the one-off item arising from the
disposal of Straits Trading Building.
The Group’s revenue in FY2015 was
lower due to lower property revenue,
lower tin prices and lower sales quantity
of refined tin in the resources business.
DIVIDENDS
We are declaring an interim dividend
payout of 4 cents per share for FY2015.
We will continue to work towards a fair
and sustainable dividend policy, as our
businesses begin to generate stable
income streams.
BOARD CHANGES
Mrs Elizabeth Sam, who joined the Board
of Straits Trading in 2008, will be retiring
after serving her term. Mr Razman
Ariffin resigned from the Board on 18
March 2016. On behalf of the Board and
Management, I would like to thank them
for their many years of dedicated service,
and valuable contributions to the Group.
LOOKING AHEAD
The macroeconomic and geopolitical
outlook is looking increasingly
unpredictable. China continues to face a
number of challenges; the oil price has
dropped sharply as have the prices of
many other commodities. These factors
have led to a less than optimistic outlook
for the global economy. However,
we take comfort in the knowledge
that volatile markets and challenging
times often offer attractive long-term
investment opportunities. We are
confident that the Group’s disciplined
approach to managing and investing,
as well as its strong balance sheet, will
equip Straits Trading to deal with any
potential challenges and seize any
opportunities that lie ahead. With a
clear strategic direction, we will work
hard to steer our resources and build on
the experience we have gained through
the years to create long-term value
for shareholders.
Last but not least, we would like to
thank you, our shareholders, for your
confidence and support. We also
want to thank our fellow Directors for
their continued guidance, and fellow
employees at Straits Trading and its
subsidiaries, for their dedication
and commitment.
CHEW GEK KHIM
Executive Chairman
30 March 2016
4
THE STRAITS TRADING COMPANY LIMITED
