Everyday our dreams get bigger

Everyday, 

our dreams 

get bigger 

Annual Report 2005

Contents 

1. Message to Shareholders 5. Financial Highlights 7. Financial Review 11. Awards & Accolades 

12. Year in Review 18. Personnel Review 20. Board of Directors & Senior Management 22. Corporate 

Information 24. Directors’ Report and Audited Financial Statements for the Year ended 31 December 2005 

72. Supplementary Information 81. Statistics of Shareholdings 82. Notice of Annual General Meeting 

84. Notice of Book Closure 85. Proxy Form

Everyday, we make 

water cheaper, 

cleaner and more 

accessible for 

billions around 

the world


we grow 

from strength 

to strength 

The year 2005 saw the successful delivery of 

the first seawater desalination plant in Singapore. 

Located in Tuas, the SingSpring Desalination 

Plant was completed three months ahead of 

schedule. The year also marked the groundbreaking 

of our seawater desalination plant in 

Tianjin, China. 

These landmark projects made headlines news 

and attracted the world’s attention. We are 

confident that with our track record, more 

windows of opportunities will be opened for 

us and everyday, we will grow from strength 

to strength as we attain greater heights. 

Besides Singapore and China, we will continue 

our expansion in regions such as India and the 

Middle East where the need for water continues 

to be crucial. 

01

AR2005 

Message from Group CEO and President, Olivia Lum 

Financial Performance 

In 2005, we remained steadfast in our focus on key business areas, a strategy that resulted in 

strong growth earnings for the year. 

During the year, we achieved a net profit of S$49.2 million, a good 76 percent increase from 

the previous year. Group revenue almost doubled from S$88.7 million to S$131.5 million. We 

have also strengthened our cash position to S$96.4 million from S$61.3 million the year before 

while earnings per share improved 66 percent to 9.2 cents. 

Over the last eight years, both our profit and sales have grown by a compounded average rate 

of 55 percent a year. 

Recurring Revenue Stream 

In 2005, Hyflux focused on Build-Own-Operate/Build-Own-Transfer (BOO/BOT) projects in the 

region. Such projects would yield a long term recurring revenue stream. When our current slate 

of BOO/BOT projects, which amount to a total capacity of some 500,000 m 3 /day, start operations 

progressively over the next three years, we can look forward to a recurring income stream of 

some S$80 to S$90 million annually for the next 20 to 30 years. 

We have set ourselves the target of increasing the contribution of recurring income from the 

current 2 percent to some 10 to 20 percent of the Group’s revenue in the medium term of three 

to five years. In the long term, we hope to establish ourselves in the BOO/BOT market, notching 

up recurring income that will constitute 30 to 40 percent of total Group’s revenue. We plan for 

this to be a good mix of EPC (Engineering, Procurement, and Construction) projects and DBOO 

(Design-Build-Own-Operate) projects for a balanced revenue structure. 

Asset-light Strategy 

In 2005, we adopted an asset-light strategy with the divestment of 50 percent of the SingSpring 

Desalination Plant at Tuas, the sale and leaseback of Hyflux Building, and the formation of a joint 

venture, SinoSpring, to invest in BOO/BOT projects in China. To aid our business expansion 

in China and beyond, we will continue to adopt an asset-light strategy by divesting our interest 

in capital intensive BOO/BOT projects. This strategy allows us to unleash financial resources 

and release debt capacity to take on new projects and expand into new markets. 

02

Reverse Osmosis Building, SingSpring Desalination Plant 

Human Capital and Infrastructure 

The year saw a 47 percent increase in our global headcount and the establishment of new 

offices in China as well as in India. The move is vital in providing support for our expansion and 

to enhance our project execution capabilities in existing markets such as China and Singapore 

and the development of new overseas markets such as India and the Middle East. 

Research & Development 

Hyflux continued to invest in R&D to improve its product offerings and the competitiveness of 

its processes during the year. As part of this investment, we now have more than 100 staff in 

the R&D department, comprising some 50 research scientists and engineers. This enlarged 

specialist team provides us with the competitive edge to stay ahead in technological advancement, 

application and process development. 

Though our key business focus is in water, we are also expanding into industries that are related 

to environmental protection and renewable biomass. Our core competency in membrane 

technology has enabled us to provide cutting-edge solutions to reduce wastes for these industries 

and at competitive cost. An example of this is the use of Hyflux’s proprietary membranes for the 

organic acid industry in China. 

Our collaboration with local and foreign academia and research institutes will continue to 

complement and strengthen our team. In tandem with the development of technologies, we 

continue to actively seek ways to commercialise these developments so as to benefit the 

industries and to remain competitive. 

Looking Ahead to 2006 

Going forward, we will intensify our efforts in growing our overseas business and build on our 

portfolio of global projects. Although competition is expected to be strong, we will continue to 

sharpen our competitive edge. With a well proven track record, we are confident that we will 

remain ahead of the competition. 

According to World Water Vision, the population worldwide has tripled and water use has 

increased six fold in the 21st century. The greatest increase in demand for water is expected 

to be from Asia because of the high population concentration and the limited availability of clean 

water supply. According to a United Nations Report, Asia is home to 60 percent of the world’s 

population and yet, it only has access to 36 percent of the world’s fresh water supply. 

In China, 400 of the 669 cities do not have sufficient water supply and 110 cities face severe 

water shortages. Currently, 77 percent of its effluent discharges remain untreated and 70 percent 

of its population does not have access to safe drinking water. 

03

India is also facing a similar situation as there is limited pollution control in many parts of India. 

With growing population and rapid industrialisation, the country is fast running out of clean water. 

Hyflux is well aware of the opportunity these countries will provide in our growth. It remains our 

aim to focus on building our presence for a sustainable growth in the years to come. 

Corporate Governance and Transparency 

We firmly believe in implementing best practices in corporate governance to uphold the high 

standards expected of us. As a listed company, Hyflux bagged the Most Transparent Award 

at the SIAS Investors’ Choice Award 2005 for the second consecutive year and we are 

honored to be recognised for our efforts in disclosure and transparency. 

Thank You All 

On a personal note, I would like to thank all my staff for their commitment and dedication to the 

vision of this company and for their sterling efforts in 2005. Our journey is set and we are all in 

it together. 

To Hyflux’s shareholders, business partners and customers, my heartfelt appreciation for the 

trust and confidence you have in us. 

The scene in the global water industry is an exciting one and I look forward to taking the journey 

into 2006 with all of you. I am confident that we will continue to grow from strength to strength 

and in 2006, Hyflux will deliver yet another year of stellar performance. 

Olivia Lum 

Group CEO & President 

04

AR2005 

Financial Highlights 

Key Financial Data 

(S$’000) FY2001 FY2002 FY2003 FY2004 FY2005 

Revenue 27,235 45,267 81,172 88,655 131,542 

Profit Before Tax and 

Minority Interests 9,447 11,803 19,941 28,844 50,257 

Minority Interests 5 402 246 1,772 2,910 

Profit Attributable to Shareholders 7,355 12,261 19,510 26,104 46,276 

Shareholders’ Equity 31,366 53,915 85,479 112,647 189,446 

Total Assets 43,247 72,414 115,854 300,131 382,345 

Net Assets 31,367 53,915 85,479 112,647 197,169 

Net Assets Value per share (cents) 17.60 22.82 27.35 35.68 36.80 

Earnings per share (cents) 2.8 3.6 5.08 5.55 9.21 

Dividend per share (cents) 0.50 1.50 0.70 1.27 1.35 

Return on Revenue (%) 27.0% 27.1% 24.0% 30.2% 35.2% 

Return on Equity (%) 23.4% 22.7% 22.8% 23.8% 24.4% 

Group Revenue By Country 

80 

70 

72.9 

73.5 

60 

$’million 

50 

40 

30 

20 

10 

0 

11.2 

12.4 

3.7 

23.9 

19.8 

1.5 

48.4 

32.1 

0.7 

9.1 

6.7 

34.0 

24.1 

FY 01 FY 02 FY 03 FY 04 FY 05 

Singapore PRC Others 

05

Group Revenue Growth 

$’million 

140 

120 

CAGR 40% 

100 

80 

60 

40 

20 

0 

12 15 

FY 01 

19 26 

FY 02 

37 44 

FY 03 

30 59 

FY 04 

43 88 

FY 05 

1H 

2H 

Profit Attributable to Shareholders 

Earnings Per Share 

$’million 

S$ Cents 

50 

46.3 

10 

9.21 

40 

CAGR 44% 

8 

CAGR 27% 

30 

26.1 

6 

5.08 

5.55 

20 

19.5 

4 

3.6 

12.3 

2.8 

10 

7.4 

2 

0 

FY 01 

FY 02 FY 03 FY 04 FY 05 

0 

FY 01 

FY 02 FY 03 FY 04 FY 05 

Returns on Equity 

Net Assets Value Per Share 

% 

25 

20 

23% 

23% 

23% 

24% 

24% 

S$ Cents 

40 

35 

30 

27.35 

35.68 

36.80 

15 

25 

22.82 

20 

17.60 

10 

15 

5 

10 

5 

0 

FY 01 FY 02 FY 03 FY 04 FY 05 

0 

FY 01 FY 02 FY 03 FY 04 FY 05 

06

AR2005 

Financial Review 

Key Financial Data 

(S$ Million) FY2004 FY2005 Increase 

Revenue 88.7 131.5 48% 

Earnings before interest, tax, depreciation 32.7 54.4 66% 

& amortisation (EBITDA) 

Earnings before interest & tax (EBIT) 29.2 50.1 72% 

Profit attributable to Shareholders 26.1 46.3 77% 

Earnings per share (EPS) (cents) 5.55 9.21 66% 

Net asset value (NAV) per share (cents) 35.7 36.8 3% 

(a) Overview 

For FY2005, net profit for the Group grew 77% to S$46.3 million. Basic earnings per share 

increased by 66% to 9.21 cents. 

(b) Revenue 

Group revenue grew 48% year-on-year to S$131.5 million. 

Group Revenue by Sector 

81% 

44% 

Industrial 

FY2004 

19% 

FY2005 

56% 

Municipal 

The revenue growth was driven mainly by higher municipal sales in Singapore and the Middle 

East. Municipal sales of S$74.2 million accounted for 56% of total revenue as compared to 19% 

last year. 

This increase was contributed largely by revenue from higher municipal sales from Singapore: 

a result of recognising 50% of the remaining engineering, procurement and construction (EPC) 

revenue of the SingSpring project as well as the cost for the SingSpring plant upon completion 

of the divestment of a 50% equity stake in SingSpring Pte Ltd. Prior to the divestment, all revenue 

of the EPC work for the SingSpring project was eliminated on consolidation as SingSpring was 

then wholly owned by the Company. The remaining municipal sales were revenue from the 

completion of design work for the desalination plants in China (Liaoning and Tianjin) and the 

Middle East. 

07

Industrial revenue amounted to S$56.6 million as compared to S$64.9 million last year as fewer 

industrial water projects were undertaken in China. In FY2005, the Group focused on higher 

yield and, in some cases, much larger liquid processing projects in the country. These larger 

industrial projects have a longer gestation period. 

Group Revenue by Country 

FY2004 

FY2005 

8% 

10% 

18% 

26% 

82% 

56% 

Singapore 

China 

Middle East/Others 

(c) Profit Attributable to Shareholders 

Raw materials, consumables and accruals increased by 94% to S$69.5 million as compared 

to a 48% increase in revenue. 

Personnel expenses rose by 79% to S$16.7 million. These investments in human capital were 

necessary to support the growth of the business, with more resources expended in research 

and development; in developing new markets such as India; in growing our existing markets; 

and in enhancing our project execution capabilities. Hence, the Group’s headcount increased 

by 47% to 682 as compared to 465 last year. About 70% of such personnel are technically or 

engineering trained. 

Other operating expenses rose by 45% to S$15.3 million. This was due largely to higher revenue 

and higher costs in developing new markets; and securing and executing larger sized projects. 

Depreciation and amortisation increased by 18% to S$4.2 million. This was due mainly to the 

acquisition of property, plant and equipment. After the application of FRS 102 on 1 January 

2005, cost of share-based payment was S$2.3 million. 

At the Group level, the divestment of SingSpring’s 50% equity stake resulted in a gain of S$3.8 

million. Gain on sale of property, plant and equipment of S$8.2 million was mainly related to the 

gain on sale of Hyflux Building. The application of FRS 39 on 1 January 2005 resulted in a fair 

value gain of S$12.9 million for the year. 

The effective income tax rate for the Group was about 2% in FY2005 due mainly to tax exemption 

granted to some subsidiaries in China and the Company as well as zero corporate tax rate in 

the Middle East. 

Overall, profit attributable to shareholders rose by 77% to S$46.3 million. 

(d) Earnings Per Share 

Basic earnings per share increased by 66% to 9.21 cents. 

08 

(e) Balance Sheet Review 

Shareholders’ equity increased by S$76.8 million or 68% to S$189.4 million, due to a S$39.0 

million increase in share capital and premium from the issuance of new shares to Istithmar; a 

net profit of S$46.3 million for the year; and a S$2.0 million employee share option reserve. The 

overall shareholders equity was partially offset by dividend payout of S$4.3 million and negative 

fair value reserve adjustment of S$9.5 million.

The adoption of FRS 102 on 1 January 2005 resulted in a positive fair value adjustment of S$0.8 

million and the adoption of FRS 39, also on 1 January 2005 resulted in a negative fair value 

adjustment of S$16.7 million. 

Non-current assets shrank by S$10.8 million due mainly to the completion of divestment of a 

50% equity stake in SingSpring and the sale of Hyflux Building. This was partially offset by 

increases in investment in associate by S$11.6 million and intangible assets by S$6.5 million. 

Working Capital increased by S$58.0 million from S$108.6 million to S$166.6 million. This was 

due mainly to a S$35.1 million increase in cash and cash equivalents. 

As a result of adopting FRS 39, fair value receivables was S$6.6 million. This was mainly derived 

from unrealised gains of financial derivatives which was partially offset by fair value provision of 

S$5.5 million. 

Other changes in working capital were in line with the higher revenue and the larger sized projects 

undertaken by the Group. Amounts due from related companies were primarily related to trade 

receivables and amounts recoverable from associate companies and joint ventures. Deferred 

income of S$1.6 million represented unrealised profits on sales to associates in the Group 

accounts. These unrealised profits will be realised and credited to the profit and loss account 

of the Group over the estimated economic useful lives of the underlying assets or when the 

Group divests its equity stake in the associates. 

Long-term loans decreased by S$33.9 million in FY2005, due mainly to the divestment of 

SingSpring. Together with the higher cash and cash equivalents balances, the net debt to equity 

ratio for the Group decreased to 0.05 in December 2005, as compared to 0.71 in December 

2004. Excluding the project finance loan, the Group was in a net cash position. 

(f) Cash Flows And Liquidity 

The Group’s cash position strengthened to S$96.4 million, higher by S$35.1 million as compared 

to a year ago. 

Net cash generated from operations increased by 158% to S$18.0 million as compared to S$7.0 

million last year. 

Cash used for investment activities decreased by 58% to S$47.7 million. This was due mainly 

to proceeds received from the sale of Hyflux Building and the sale of a 50% equity stake in 

SingSpring that totalled around S$44.6 million. The overall cash used for investment activities 

was partially offset by investments in associates of S$11.6 million. The S$92 million reduction 

in construction in progress was due mainly to the completion of the construction of SingSpring 

plant, which is now classified as property, plant and equipment. 

Cash generated from financing activities totalled S$64.7 million, representing a 53% decrease 

from last year. S$38.7 million was generated from the proceeds from the issuance of new shares 

and S$35.1 million was generated from the drawdown of project finance loan. The overall cash 

generated from financing activities was partially offset by dividend payment and repayment of 

short term loans. 

(g) Shareholder Returns 

Return on Equity and Dividends Per Share 

Return on equity maintained at about 24%, the same as FY2004, not withstanding the enlarged 

share capital due to the issuance of new shares and bonus issues during the year. 

For FY2005, the company is proposing a final dividend of 1.35 cents per ordinary share as 

compared to 1.27 cents in FY2004. 

Note: Figures for FY2004 have been restated to reflect the adoption of new and revised accounting standards. 

09


the fruits of 

our labour 

get sweeter 

Minister Lim Swee Say 

and Grassroot Members at the 

Highest Point of the SingSpring 

Desalination Plant

AR2005 

Awards & Accolades 

For BUSINESS EXCELLENCE 

Hyflux CEO named Singapore’s Top Executive 

Olivia Lum, Hyflux’s founder and Group CEO and President, was conferred the title of Singapore’s 

Corporate Executive of the Year at the Asiamoney Annual Awards 2005. Hailed as one of 

Asia Pacific’s most dynamic executives, Ms Lum was honoured for her drive, astuteness and 

vision – the same qualities that distinguish Hyflux as an organisation. 

Hyflux ranked Best Under a Billion by Forbes Asia 

Forbes Asia magazine designated Hyflux one of the 200 best small companies 

in Asia Pacific in 2005. The annual Best Under a Billion ranking recognises 

the best companies in Asia Pacific with revenue under US$1 billion a year, 

based on criteria such as profitability, a track record of giving value to shareholders 

and the display of economic dynamism and entrepreneurial effectiveness. 11 

Singapore firms made it to the list in 2005. 

Hyflux lauded as one of Singapore’s fastest growing companies 

Hyflux was saluted as one of the 50 fastest growing companies in Singapore 

at the Fastest Growing 50 Certification Awards 2005, ranked by DP 

Information Group, and supported by Ernst & Young, IE Singapore, SPRING 

Singapore and The Business Times. 

Hyflux CEO named Businessman of the Year 

Ms Olivia Lum became the first woman in the 20-year history of the Singapore 

Business Awards to clinch the title of Businessman of the Year for 2004. 

She was accorded the award for “her outstanding drive, vision and 

entrepreneurial achievement in building Hyflux Ltd into one of Asia’s most 

dynamic and innovative water and fluid treatment companies with its own 

brand of membrane technology.” 

For INVESTOR RELATIONS 

Hyflux bagged Most Transparent Company title 

Hyflux took home the Most Transparent Company Award in the services/utilities/agriculture 

category at the Investors’ Choice Awards 2005 organised by the Securities Investors Association 

of Singapore. This is the second consecutive year that Hyflux has clinched the award. 

For INNOVATION AND TECHNOLOGY 

Hyflux triumphed in first Global Water Awards 

In a signal achievement, the Seletar NEWater plant and Chestnut Avenue 

Waterworks in Singapore – both designed and built by Hyflux – were honoured 

at the inaugural Global Water Awards 2005, given out by Global Water 

Intelligence, UK. 

According to the judges, “The Seletar NEWater plant sets the standard for 

water recycling projects around the world. The Chestnut Avenue Water 

Treatment Plant shows UF (Ultrafiltration) systems at their best.” 

11

AR2005 

Year in Review 

JANUARY 

• Hyflux signs a co-operative agreement to build, own 

and operate a S$107 million membrane-based organic 

plant, with an annual capacity of 30,000 tonnes in 

Shizuishan City of Ningxia Province, China. 

• On a state visit to Thailand, the President of Singapore, 

President S. R. Nathan, presents the dragon-fly, Hyflux’s 

flagship air-to-water portable water machine, to King 

Bhumibol Adulyadej of Thailand. 

FEBRUARY 

• Hyflux wins a S$103 million contract to design, build and 

operate a 38,000 m 3 /day reverse osmosis seawater 

desalination plant at The Palm Jumeirah, Dubai, and a 

40,000 m 3 /day membrane bioreactor treatment plant for 

Dubai Metals and Commodities Centre. 

MARCH 

• Hyflux stock is promoted from the Singapore Exchange 

Main Board to the Straits Times Index, where it is listed 

as an index stock. 

APRIL 

• Hyflux secures a S$3.6 million deal 

to design, build and supply two 

leachete treatment plants for Harbin 

City of Heilongjiang Province, China. 

• Hyflux signs an agreement with 

the National University of Singapore 

to collaborate on research into 

membrane and materials technology. 

• Hyflux transfers its 50 percent equity 

stake in the SingSpring Desalination 

Plant to Temasek Holdings in order 

to focus on its core competencies 

in engineering, procurement and 

construction and membrane 

development. 

12

MAY 

• Hyflux signs a Cooperative Agreement to build China’s largest seawater desalination plant 

worth S$155 million for the Dagang District of Tianjin City, China. 

• Hyflux signs a Memorandum of Understanding with the Water Supply Group of Harbin City, 

with the exclusive right to conduct a feasibility study on a S$700 million Harbin Mopan Mountain 

Reservoir Water Supply Project, comprising a 450,000 m 3 / day raw water treatment plant and 

a 450,000 m 3 /day water purification plant. 

JUNE 

• Hyflux signs a Memorandum of Understanding with Changchun Water Group 

Co., Ltd, with the priority to conduct a feasibility study for wastewater treatment 

plants worth a total of S$160 million, to be built or upgraded with water 

recycling capability in Changchun, China 

JULY 

• A ceremony is 

held to mark the 

mechanical 

completion of 

the SingSpring 

Desalination 

Plant. 

AUGUST 

• The original contract for a 38,000 m 3 /day 

desalination plant for The Palm Jumeriah, 

Dubai, is expanded to a contract for two 

32,000 m 3 /day plants. The two plants will 

supply potable water to the hotels, 

condominiums and theme parks developments 

on The Palm Jumeriah. 

SEPTEMBER 

• The official opening of the SingSpring Desalination Plant is held to celebrate the landmark 

launch of Singapore’s first desalination plant by Guest of Honour, Singapore Prime Minister 

Lee Hsien Loong. The event is attended by some 800 local and international guests. Making 

the Right Turn, a commemorative book capturing the challenges and people involved in the 

landmark project, as well as the project’s history and milestones, is presented to Prime Minister 

Lee, and given out to the guests. 

• Hyflux presents its desalination capabilities 

to some 600 international industry experts 

attending the International Desalination 

Association (IDA) World Congress on Desalination 

and Water Reuse. The event is 

held in Singapore, with Hyflux as one of the 

major co-sponsors. 

13

OCTOBER 

• Hyflux plays host to Minister Lim Swee Say, who was leading a group of some 80 grassroots 

and community leaders keen to learn more about desalination. 

• Hyflux enters into a joint venture with Ramatex Berhad, Malaysia’s largest integrated textile 

and garment manufacturer, to invest in water treatment projects in China. The projects will be, 

in the most part, developed and built by Hyflux. 

• Singapore Prime Minister Lee Hsien Loong is the Guest Of Honour at the groundbreaking 

ceremony for the 100,000 m 3 /day seawater desalination plant at the Dagang District of Tianjin 

City, China. Also present were Ministers George Yeo and Tharman Shanmugaratnam, Minister 

of State Gan Kim Yong, Singapore’s Ambassador to China Chin Siat Yoon, Tianjin Mayor Dai 

Xiang Long and Tianjin Vice Mayor Yang Dong Liang. 

NOVEMBER 

• Hyflux presents its capabilities and technology to some 

5,000 international industry experts from more than 40 

countries attending Enviro Asia 2005, an exhibition on 

environmental management and technology held in Singapore. 

• Hyflux extends a warm welcome to some 220 local and 

international visitors at the SingSpring Desalination Plant. 

The foreign visitors are from China, Iran, Ukraine and Turkey. 

DECEMBER 

• Hyflux hosts some 35 local 

and international visitors at the 

SingSpring Desalination Plant. 

Between 13 September 2005 

to the end of the year, the 

plant received a total of 434 

visitors. 

14

Official opening of SingSpring Desalination Plant 

Hyflux made history in Singapore when it gave the nation its first ever seawater desalination plant. 

In the presence of more than 800 local and international guests gathered at Tuas on 13 September 

2005, Singapore Prime Minister Lee Hsien Loong declared the SingSpring Desalination Plant 

opened by turning on Singapore’s fourth national tap 1 . 

“Over the years, our water industry has grown into a dynamic 

and vibrant part of the Singapore economy. Hyflux, the parent 

company of SingSpring, is one of the leaders in this growing 

industry.” Singapore Prime Minister Lee Hsien Loong at the official opening 

of SingSpring Desalination Plant,13 September 2005 

With that, up to 136,380 m 3 of potable desalinated water, or 10 percent of Singapore’s daily 

water needs, can now be delivered daily to the republic’s water distribution network and supplied 

to the western part of Singapore. 

The Tuas plant was completed three months ahead of schedule, despite having to meet stringent 

plant specifications and safety and environmental conditions. This was made possible not only 

by the concerted teamwork of staff, suppliers and contractors, but also by the efforts of the 

PUB, Singapore’s national water agency. 

“I’m just in awe of the seemingly insurmountable challenges 

that we have overcome. This job has given us great confidence 

but it also reminds us to always remain humble.” 

Foo Hee Kiang, Hyflux Group Chief Operating Officer and Executive Vice President 

With completion brought forward, Hyflux was able to recognise the steady recurring income from 

the sale of water as well as the operations and maintenance revenue earlier than previously 

projected, from the third quarter of 2005 on. This income will continue for the next 20 years. 

Minister for the Environment and Water 

Resources, Dr Yaacob Ibrahim at Tuas 

15

16 

“The Tuas plant is an icon in 

Singapore’s vision of becoming 

a ‘hydrohub’.” 

The Straits Times, 18 July 2005 

When it opened in September 2005, the 

SingSpring Desalination Plant was not only 

Asia’s largest desalination plant, but also the 

world’s largest seawater reverse osmosis plant. 

The plant adopted reverse osmosis as it is the 

most cost-effective approach; together with a 

state-of-the-art energy recovery system, that 

made it one of the most energy efficient 

desalination plants in the world. 

This allowed the plant to deliver, in its first year, 

the world’s lowest tariff price for desalinated 

water of S$0.78 cents/m 3 . 

“When I look back at the Tuas 

project, I think we have reason to 

be proud of our work.” Bruce Sim, 

Hyflux Group Vice President, Global Projects 

A milestone project, the SingSpring Desalination 

Plant captured attention worldwide. 

Since its opening, the plant has been visited 

by more than 400 local and international 

dignitaries, including guests from China, India, 

Iran, Japan, Namibia and Turkey. 

“The Tuas Desalination Plant is 

an achievement Singapore should 

be proud of. ” 

Minister Lim Swee Say (right) 

Footnote 

1. Singapore’s water supply is managed through a fourtap 

strategy. The first three taps are water from local 

catchment areas, imported water from Johor, 

Malaysia, and reclaimed water (NEWater). Desalinated 

water is the nation’s newest source of water.


we grow 

the strength… 

of our People

AR2005 

Personnel Review 

Global Headcount 

2004 2005 Percentage 

Singapore 229 404 59% 

China 164 248 37% 

The Middle East 2 21 3% 

India 0 9 1% 

TOTAL 465 682 100% 

To support its vibrant growth, Hyflux grew its global headcount in 2005 by 47 percent – a move 

that swelled its staff number to 682 from 465. This increase was seen across the board, with 

a higher concentration in technical and engineering personnel. These two categories account 

for 70 percent of Hyflux’s workforce. 

“Don’t be afraid to surround yourself with talented people.” 

Olivia Lum, Hyflux CEO 

Staff Qualifications 

2005 

PHDs 2% 

Master Degree 12% 

General Degree 33% 

Diploma 34% 

Below Diploma 30% 

TOTAL 100% 

The Organisation concentrated on recruiting highly qualified manpower this year. Compared to 

the year before, Hyflux recruited 40 percent more PhD, masters and general degree holders. 

This saw the number of PhD holders in the R&D team soar to 13 from five. This approach is part 

of the Organisation’s strategy to maintain its competitive edge in technological competency and 

proprietary intellectual property development. 

In 2005, Hyflux kept up its intensive training efforts for its people. More than 30 staff benefited 

from external training in water treatment, environment management, plastics technology and 

plant design. They also attended conferences and seminars on related subjects. Scholarships 

were also given to staff to pursue postgraduate degrees and diplomas for continuing education. 

18

For non-technical staff, in-house training sessions were conducted that provided them with a 

working knowledge of water treatment and membrane technology. 

Hyflux recognises that excellent environment and health safety management is vital for long term 

success. To foster a strong culture of safety across the company, Hyflux launched an Environment 

and Safety Initiative in 2005. In-house training was carried out for some 250 staff in the areas 

of Zero Defects and Chemical and Occupational Safety and Health. To measure the effectiveness 

of the programme, the Environment and Health Safety Committee sets performance metrics and 

targets. For stakeholders, the programme serves as a concrete demonstration that Hyflux has 

a culture that involves the observance of environmental requirements and their due processes. 

As a socially responsible corporate citizen, Hyflux continues to support a wide spectrum of 

community initiatives including the Community Chest as well as programmes for water, education 

and the environment. 

Additionally, Hyflux CEO Olivia Lum commits herself to public speaking engagements on the 

subject of entrepreneurship. She also hosts sessions on Hyflux premises where she shares her 

views on leadership, innovation and enterprise with organisations like the Singapore Nurses 

Association, Health Sciences Authority, and the Institute of Policy Development. 

As the President of the Singapore Water Association, Olivia also helps to spearhead the advance 

of the local water industry in the region and the world. 

In 2005, in recognition for their contributions and dedication to the company, Long Service 

Awards were conferred on eight staff. 

19

AR2005 

Board of Directors & Senior Management 

Board of Directors 

Olivia Lum 

Gay Chee Cheong 

Lee Joo Hai 

Teo Kiang Kok 

S Iswaran 

Christopher Murugasu 

Hamed Kazim (Appointed on May 2005) 

Senior Management 

1) Olivia Lum 


2) Deirdre Murugasu 

Senior Advisor to Group CEO & President 

3) Lim Kim Seng 

Group Deputy Chief Executive 

& Company Secretary 

4) Foo Hee Kiang 

Group Chief Operating Officer 

5) Grace Goh 

Group Chief Financial Officer 

& Company Secretary 

6) Ho Geok Choo 

Group Executive Vice President, 

Corporate Services and 

India & China Operations 

(Joined on March 2006) 

7) Hoe Kum Yoke 

Group Chief Technology Officer 

9) Ge Wen Yue 

Senior Vice President, Industrial, China 

10) Hurn David Charles 

Senior Vice President, Structured Projects 

11) Keh Eng Song 

Senior Vice President, Special Projects 

(Joined on March 2006) 

12) Freddy Soon 

Senior Vice President, CEO Office 

13) Benjamin Tan 

Senior Vice President, MENA Region 

(Joined on February 2006) 

14) Rose Tong 

Senior Vice President, Consumer Products 

15) Peter Wu 

Senior Vice President, Municipal, China 

16) Yang Ai Chian 

Senior Vice President, Legal & Contracts 

8) Rajnish Gopinath 

CEO, India and Senior Advisor to 


20

Board of Directors 

(top, left to right) 

Olivia Lum 


Lee Joo Hai 

Teo Kiang Kok 

(bottom, left to right) 

S Iswaran 


Hamed Kazim 

Senior Management 

1 2 3 4 

5 6 7 8 

9 10 11 12 

12 

13 14 15 16 

21

AR2005 

Corporate Information 

Company Secretaries 

Lim Kim Seng 

Grace Goh 

Audit Committee 

Lee Joo Hai (Chairman) 

Teo Kiang Kok 


Olivia Lum Ooi Lin 

Nominating Committee 

Teo Kiang Kok (Chairman) 

Lee Joo Hai 



Renumeration Committee 

Teo Kiang Kok (Chairman) 

Lee Joo Hai 




Management Committee 

Olivia Lum Ooi Lin (Chairman) 

Lim Kim Seng 

Grace Goh 

Foo Hee Kiang 

Rose Tong 

Peter Wu (Appointed on February 2006) 

Hoe Kum Yoke (Appointed on February 2006) 

Ge Wen Yue (Appointed on February 2006) 

Ho Geok Choo (Appointed on March 2006) 

Risk Management Committee 

Hamed Kazim (Chairman) 

Teo Kiang Kok 

S Iswaran 


Registered Office 

Hyflux Building 

202 Kallang Bahru Singapore 339339 

Tel: +65 6214 0777 

Fax: +65 6214 1211 

Share Registrar and Share Transfer Office 

Lim Associates (Pte) Ltd 

10 Collyer Quay 

#19-08 Ocean Building 

Singapore 049315 

Auditors 

Ernst & Young 

Certified Public Accountants 


#21-01 Ocean Building 


Partner-in-Charge (since 2005): Steven Phan 

Bankers 

DBS Bank Ltd 

6 Shenton Way DBS Building Tower One 


Oversea-Chinese Banking Corporation Limited 

65 Chulia Street 

OCBC Centre Singapore 049513 

United Overseas Bank Limited 

1 Raffles Place 

OUB Centre 


Mizuho Corporate Bank, Singapore Branch 

168 Robinson Road 

Capital Towers 


BNP Paribas, Singapore Branch 


Tung Centre 


Investor Relations 

Advisor: Citigate Dewe Rogerson i.MAGE 

Website: www.hyflux.com 

Contact: Grace Goh 

Email: grace_goh@hyflux.com 

22


the buzz 

grows 

Founded in 1989, Hyflux Ltd has rapidly grown to become one of Asia’s leading water and fluid treatment 

companies, with a thriving presence in Singapore, China and the Middle East. 

Specialising in membrane technologies, Hyflux is today an integrated solutions provider offering services 

that include process design and optimisation, pilot testing, fabrication and installation, and engineering, 

procurement and construction. It is also engaged in the commissioning, operation and maintenance of a 

wide range of liquid treatment systems on a turnkey or Design-Build-Own-Operate (DBOO) arrangement. 

Signalling its arrival on the international scene, in 2006 Hyflux was accorded Water Company of the Year 

award by the UK’s Global Water Intelligence at the Global Water Awards.

Hyflux Building 

202 Kallang Bahru Singapore 339339 

Tel: 65 6214 0777 Fax: 65 6214 1211 

www.hyflux.com

Everyday our dreams get bigger

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?