The Group monitors the USD exchange rates closely and will enter into forward contracts on case to
case basis to reduce its exposure.
Expansion and Investment Risk
In view of the Group’s plan to expand beyond the Singapore market, the Group is constantly seeking
opportunities to diversify into new areas or expand to regional markets such as Myanmar, Malaysia,
Indonesia and other Southeast Asian countries to pursue sustainable growth. Hence, the Group is
exposed to expansion and investment risk from new investments such as joint ventures, acquisitions
or new businesses.
The Group is adopting the practice of conducting due diligence assessments and other business
analyses for any investment proposal in order to minimise any potential risk exposure. All investment
proposals are to subject to approval from the Board before implementation.
38
CORPORATE
GOVERNANCE
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
