Construction firm Keong Hong clarifies increase in pay for former general manager

THE increase in the annual aggregate remuneration paid to 2 key management personnel of Keong Hong Holdings, as cited in an article in The Business Times (BT), was primarily due to remuneration paid to its former general manager of operations, Sebastian Loo.

In an announcement on Thursday (Oct 14), in explaining the higher pay, the company referred to Loo's start date with the group, his subsequent three-month absence, and a one-off payment made to his family.

BT on Oct 12 reported that building contractor Lian Beng Group and a few of its peers, including Keong Hong, had upped their remuneration or bonuses to key executives or directors even as net profits fell.

For Keong Hong, which is involved in construction and property development, the annual aggregate remuneration paid to its 2 key management personnel rose from S$360,000 to S$500,000 in FY2020. The company reported a net loss of S$18 million for FY2020, versus a profit of S$16.3 million in FY2019.

Keong Hong had declined to comment when approached by BT for the Oct 12 article.

In its Oct 14 filing, Keong Hong said that Loo joined the group on Sep 2, 2019, before that financial year ended on Sep 30, 2019. "Effectively, only one month of remuneration was recorded in FY2019," the company noted.

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During FY2020, Loo went on medical leave for 3 months, starting in February 2020 until he resigned on Apr 30 last year as he was unable to continue with his position.

Keong Hong said it also made a "one-off lump sum payment" to Loo's family "as a gesture of goodwill", although it did not disclose a specific figure.

The group added that its executive directors, senior management and other staff took pay cuts ranging from 5-20 per cent, effective from May 2020 and June 2020, as its business segments were hit by the Covid-19 pandemic. The salaries were reinstated in April 2021.

As the shortage of manpower in the industry has resulted in "widespread poaching of staff at all levels", the group had to "adjust and restore salaries accordingly" to retain staff and attract new employees, it said.

Shares of Keong Hong closed flat at S$0.35 on Oct 14, before the announcement was made.

READ MORE:

• Lower profit, higher pay for key execs: Is it justifiable?

• Keong Hong buckles up as it rides construction roller-coaster