PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has affirmed its short-term rating of MARC-2IS on Bina Darulaman Bhd’s (BDB) RM100mil Islamic commercial papers programme for the fourth year running with a stable outlook.

       The Kedah State Development Corp subsidiary said MARC, in its latest rating review issued in August 2021, stated that the rating incorporated BDB’s competitive strength to undertake public infrastructure and construction contracts in Kedah, its available landbank for property development and adequate cash balances.“MARC’s report noted that BDB had continued its turnaround despite a challenging business environment in 2020 as a result of the Covid-19 pandemic,” it said in a statement yesterday.

       BDB reported a group profit before tax of RM8.5mil in the financial year ended Dec 31, 2020, up 26% from the previous year.

       President and group chief executive officer Faris Najhan Hashim said the MARC report effectively validated the company’s management strategy and execution to create a sustainable business model and generate long-term value to shareholders.

       “As a result of ongoing restructuring strategy towards long-term sustainable business profitability, BDB has realigned core businesses into two core divisions, namely, the property development division and engineering, construction and quarry division,” he said.

       Faris Najhan said the consolidation approach of resources and focus on the group’s core competencies has paid off and proved to be crucial to the group’s improved financial performance and competitiveness in 2020 and 2021.

       He added that the setting of strategic policy and direction by the board of directors, as well as the execution and delivery of those policies by senior management team had been harmonised to ensure the delivery of key company goals and key performance indicators.

       “The group’s continued rebalancing and optimisation of its core business operations was geared towards ensuring the continuity and resilience of BDB as a viable operating entity,” he said.

       “In order to achieve these outcomes, BDB’s board and management are committed to adopt a robust and independent decision-making process with regard to project investment, one that is based on data, insights and industry experience of the management team,” Faris Najhan added.

       He also noted that the ongoing national vaccination programme and the restarting of economic and business activity coupled with robust demand for affordable housing in Kedah would be a boost for BDB’s new growth. — Bernama

       amid improved business conditions in the coming months and years. — Bernama