This was due to plants and facilities owners reducing their capital expenditure – an ongoing trend since mid-2017 – which led to a significant reduction in jobs in the market, says Mun Siong, such that many service providers including the group’s competitors becoming willing to accept jobs at significantly lower profit margin to maintain their workforce.
SINGAPORE (May 8): Mun Siong Engineering reported a loss of $0.5 million for 1Q18 compared to $0.1 million in earnings a year ago, due to a significant decline in quarterly revenue and compressed profit margins.
Revenue fell 36.7% to $13.5 million from $21.4 million previously due to lower sales, which resulted from the group’s management adopting “careful stances towards acceptance of new jobs” in view of prevailing market conditions and to preserve profitability.
