Extracted from the Annual Report 2024

AN UNEVEN PATH OF RECOVERY FOR THE TOURISM INDUSTRY

2024 marked the second year of post-COVID operations for the tourism industry. The path to recovery has however, not been even as we witnessed continued headwinds in generating revenue. While most border controls had been eased and tourism-friendly policies such as visa free travel were implemented, the continual weakness in the economy had affected consumer confidence and resulted in reduced spending.

Nonetheless, I am pleased to report that Straco Group on the whole, has been able to scale up operational capabilities to meet the return of visitors to its attractions, post pandemic. It has been business as usual for the year under review. While consumer confidence continued to be affected by geopolitical issues and the less than buoyant domestic economy in China, we maintain our cautious optimism that the tourism industry and its peripheral activities are on a sustainable uptrend in the two markets that the Company operates.

2024 also marked the cessation of the COVID-19 related job support scheme and related financial support provided by Singapore Government to businesses. Taking that into context, the Company has demonstrated its ability to generate quality earnings from its operations. This is a testament to our resilience, grounded in the Group’s solid financial foundation, operational framework and the continued efforts of our team.

For the year ended 31 December 2024, the Group registered net profit of S$27.22 million. Excluding one-off items, cumulative net profit from operations would have been approximately S$23.76 million.

Our financials remain strong with a net cash holding of S$181.01 million as at the end of 2024. We will continue to deploy this cash for our regular asset enhancements, and will remain open to any collaborations or M&A opportunities.

Taking cognizance of the tourism recovery in both Singapore and China in 2024, as well as our healthy financial position, we propose a first and final dividend of 1.50 cent per share, and a special dividend of 0.50 cent per share, representing a payout ratio of 63%. This is in appreciation of the continued support from our shareholders and various stakeholders

POSITIVE OUTLOOK FOR THE YEAR AHEAD

It has been reported that China is targeting a GDP growth of around 5% for 2025. With China’s gradual shift towards a consumption-driven economy, it will augur well for the tourism industry. Stimulus support and initiatives coupled with structural reforms will provide the stabilisation needed for certain industries that had been in the doldrums in recent years and by extension, improve consumer confidence.

Based on a report by Singapore Tourism Board, international visitor arrivals to Singapore is projected to reach between 17.0 to 18.5 million in 2025, a growth estimate of between 3% -12% over that of 2024. As a family-friendly iconic attraction, Singapore Flyer continues to appeal to visitor arrivals from major market such as Mainland China, Indonesia and India.

APPRECIATION

I would like to express my sincere gratitude to our colleagues, directors and business partners for their unwavering support in the past year

• Our staff and managers at our subsidiaries for their dedication to their jobs, often going an extra mile to create positive and pleasant experiences for both our domestic and international visitors.


• Our various other stakeholders, business associates and professional consultants who have helped us.


• My fellow directors on the Board and all directors of our group companies for their valuable counsel and contributions. I would also like to place on record my sincere thanks to the board member that will be stepping down at the coming Annual General Meeting, as part of the Board renewal programme.


• Our shareholders for their trust and understanding, and their continued support.

Looking back, the last 5 years, including the 3 years of the COVID-19 pandemic, has been a sobering experience. Valuable lessons were learned during this challenging time, and we have emerged stronger while maintaining a steadfast focus on our core business. We are prepared to harness future opportunities to enhance our technological capabilities and scale our operations.

Wu Hsioh Kwang
Executive Chairman