The global financial crisis, the competition for fuel oil and natural gas as well as the global agenda on climate change. You would probably have heard of these global challenges facing most energy businesses. Closer to home, the lack of natural fuel oil sources present energy security considerations for a tiny country like Singapore. As a Singapore-based company, PowerSeraya faces a similar challenge and recognises the need to pursue a fuel diversification path to ensure that our business continues its sustainable growth path in the medium- to long-term. All these on the back of increased competition from new players entering the energy scene.

Yet, flip to the other side and you'll see opportunities abound too for PowerSeraya to grow sustainably into the future. The global agenda on climate change is gathering pace, which means this presents opportunities for us to explore cleaner and alternative sources of energy.

Operating in a knowledge-based economy can only seek to heighten our awareness of the need to nurture existing and attract new human capital, as well as build our social capital (or networks and relationships as some may call it) to drive the company's growth.

These factors point to the increasing need for PowerSeraya to balance the economic, social and environmental aspects of the business – so we can continue to deliver profits for our shareholders and at the same time, ensure due consideration is given to the environment and society.

In the same vein, the heart of our business success lies with our people. It stems no doubt from the fact that we take pride in nurturing our staff. Our management enjoys an excellent relationship with the union and works closely with them to enhance worker productivity while ensuring a healthy work-life balance in the organisation. This supports the values of tripartism (a unique collaborative relationship between companies, the unions and the government for the country's economic well-being) that has worked well for PowerSeraya.

The recent restructuring exercise was conducted successfully to align with the operational philosophy practices of our new parent company YTL Power International Berhad. This move benefited staff with new job experiences, expanded training opportunities and enhanced core technical competencies. The vital role the union has played in the restructuring exercise has enabled PowerSeraya to make a smooth transition during the restructuring exercise with minimal impact to our business operations and customers.

The remodification of our existing combined cycle plants to co-generate steam in addition to electricity, has created not only an additional revenue stream, but also allowed us to gain higher operational efficiency. This move to modify our existing plant assets also marks a key progressive step in realising our vision of becoming an integrated energy company.

Additionally, our new 800MW Combined Cycle Plant will be operational in 2010, which will enable us to achieve even greater levels of thermal efficiency, reduce the use of carbon intensive fuels and potentially reduce carbon dioxide emissions by a further 10% from existing levels. This corresponds with the resource efficiency goals highlighted in the Sustainability Development Blueprint of Singapore.

Our engagements with our stakeholders continue on the environmental and social fronts. Recent community investments include the establishment of an Energy Learning Hub at our adopted school Greenridge Secondary School to educate youths on the inter-relationship between energy and climate change. Every year, we sponsor significant environmental events like Clean and Green Singapore, as well as support environmental NGOs and social charities through fund-raising events like the CEO Semakau Run.

We collaborate and organise joint environmental initiatives like the 1 Degree Up Challenge and International Coastal Cleanup with external parties to raise environmental awareness to the wider community. Our customers are encouraged to go green by signing up for our e-billing features. They are also empowered with the knowledge to better manage their energy consumption through orientation programmes that teach them how to better understand their energy bills.

Internally, we seek to galvanise our staff into eco-action and 'walk the talk' on energy conservation. Besides getting our staff involved in green activities, we endeavour to nurture them with a heart for the needy and have made incremental steps to enhance our social contributions either through volunteering efforts or donations in kind. For example, our staff volunteers have participated in social outreach initiatives involving disadvantaged children from Child@Street 11. Every month, about 60% of our employees also make voluntary contributions to the Community Chest via the SHARE programme.

Beyond that, we continue to nurture and invest in talented youths through our scholarship programme with the Nanyang Technological University of Singapore. Internships are also offered to selected students each year so they can gain practical work experience with the company.

In essence, PowerSeraya's sustainability journey will require a constant balancing act of economic, environmental and social imperatives. The company recognises it has a part to play in climate change action and remains committed to this environmental stewardship role while fulfilling its obligation to its shareholders to bring economic returns. As the company works towards greater sustainability for the future, it is my hope that our employees will similarly adopt sustainable practices in their own lives and be life-changers to the people around them.



John Ng Peng Wah
Chief Executive Officer
PowerSeraya Ltd