PREMAS will focus on two overseas sectors, namely, Southeast Asia and Northeast Asia.

BUSINESS REVIEW

PREMAS forged ahead with its plans in Indonesia and Malaysia. With the formation of PT. PREMAS International in Jakarta in the first quarter of 2000, the company was able to provide comprehensive services to its property clients in Indonesia. It currently manages a number of commercial buildings and manages two shopping mall retrofitting projects. In the pipeline are portfolio management and development consulting appointments by large state-owned and public listed companies, including a large US bank and a state bank.

In Malaysia, PREMAS was retained as an asset management consultant of a prime Grade A office building in Central Kuala Lumpur, and will continue to develop its consulting business there.

Looking AHEAD PREMAS will develop a network of offices throughout the region. It will also extend the scope of services to cater to the various needs of the local markets.

BUSINESS REVIEW

PREMAS Shanghai, with a portfolio of high-end residential commercial projects and a combined staff strength of 150, now has the scale to compete effectively in this market.

In Hong Kong, the Company is targeting to secure major contracts to achieve economies of scale, while actively looking out for expansion opportunities. PREMAS Hong Kong successfully pre-qualified to participate in the tender for Hong Kong Housing Authority's (HKHA) Phased Service Transfer contracts, and aims to break into this new market segment in the months ahead.

LOOKING AHEAD

PREMAS will continue to focus on Hong Kong and Shanghai whilst establishing strategic alliance partnerships in Japan. The priority here is to achieve an ambitious revenue growth target and improve profit margin.

PREMAS Shanghai will build up showcase projects and enhance our existing expertise in Property Management and Real Estate Agency. At the same time, it will explore new business areas such as Carpark Management, Valuation and Township Management. Besides ongoing brand building, the Management will also look into acquisition, joint ventures and alliances as a means to achieving a year-on-year revenue growth target of 25%.

PREMAS Hong Kong has already been short-listed for another of HKHA's privatisation programmes – the Management-Buy-Out scheme. This will enhance its ability to compete effectively and secure more contracts.

PROPERTY SERVICES GROUP STRATEGY

PREMAS will intensify efforts to transform its business into a technologically driven property services group with a value-add focus. In doing so, it aims to increase its revenue from third party contracts significantly. It also aims to enhance performance and management services for intelligent buildings, life sciences and wafer fab facilities.

Through strategic joint ventures, PREMAS will enter selected overseas markets. It will also realise cost-savings through synergies and complementary areas of business within the CapitaLand Group.