FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
07
CHAIRMAN’S STATEMENT
(CONT’D)
We also recognise that the strength of an organisation
ultimately depends on the quality of its human capital.
To ensure the Group has the ability to retain and attract
the best talent, we are currently reviewing our existing
compensation and benefits program. Starting with defining a
performance oriented culture, we will introduce compensation
programs that reward and incentivised employees who
perform well.
Appreciation
In closing, I would like to thank my fellow directors for
their valuable counsel. On behalf of the Board, I would like
to express our appreciation to the management and staff
for their contributions and commitment. We would also
like to extend our gratitude to Mr Hendrik Gezinus Tappel
and Mr Tan Lai Heng, both of whom will be retiring by
rotation as Directors in accordance with the Company's
Constitution and not seeking re-election at the upcoming
Annual General Meeting, for their valued contributions
over the years. Mr Tappel will retain his position with our
Group as Managing Director of Frencken Europe B.V.
Last but not least, we wish to thank our valued customers,
shareholders, business partners and suppliers for their
continued support and patronage to Frencken Group.
Tan Sri Larry Low Hock Peng
Non-Executive Non-Independent Chairman
The IMS Division witnessed steady progress in FY2015
as the division continued its strategy to focus on the
automotive business. During the year, the division’s
plants in Thailand and Johor as well as its operations in
Switzerland, were successfully qualified as suppliers for
key customers in the automotive industry. To further
expand its footprint in this sector, the division intends to
shift the focus of its Indonesia and Thailand operations to
the automotive business and also explore the possibility
of expanding its automotive manufacturing operations in
China and India.
The IMS Division has also been making headway with its
initiatives to improve operational efficiency and product
quality control. This has been most evident at our plant
in Penang where the operations are benefiting from
improvement programs to resolve certain quality, cost and
efficiency issues.
At the Group level, a key development has been the
creation of an operational field unit which will help us
to strengthen customer relationships, as well as enable
us to develop additional business opportunities. This
unit consists of customer-focused business development
professionals who are tasked with securing “First Right
of Refusal” for business opportunities with customers of
both divisions, and improving customer communications
and support through seamless workflow with our factory
operations.
