POS MALAYSIA · PDF file• Crafting new Retail Strategy • Focus on financial ... POS...
Transcript of POS MALAYSIA · PDF file• Crafting new Retail Strategy • Focus on financial ... POS...
P O S M A L AY S I A A N N UA L R E P O RT 2 0 0 9
F O C U S
PO
S M
AL
AY
SIA
AN
NU
AL
RE
PO
RT
20
09
COVER AND BACK PAGE
COVER AND BACK PAGE
F O C U SOur journey towards excellence
continues with the launch of Pos
Malaysia’s Transformation Master Plan
(TMP). Our TMP, anchored on 5 pillars
themed “FOCUS” aims to rejuvenate
Pos Malaysia to become the pride of
customers, employees and the nation.
We pledge to FOCUS our efforts on
delivering value to you.
INSIDE COVER AND FIRST PAGE
INSIDE COVER AND FIRST PAGE
Pos Malaysia Annual Report 2009 1
POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia Annual Report 20092
Group Financial Highlights
0908070605 0908070605 0908070605
Revenue Operating Profit EBITDA
2009 2008 2007 2006 2005
ProfitabilityProfit before taxation RM million 109.3 (0.5) 15.5 155.9 166.3
Operating margin % 9.1 9.4 11.8 13.2 13.9
EBITDA margin % 14.5 13.7 16.9 18.0 18.9
Return on Assets % 5.9 6.2 7.9 8.1 8.6
Return on Equity % 9.6 (4.4)* (3.9)* 11.5 18.6
Balance SheetTotal Assets RM million 1,274.6 1,537.8 1,247.1 1,326.0 1,333.8
Total Equity Attributable to Equity Holder of the Company RM million 799.6 764.5 859.4 938.0 900.5
Current Ratio times 1.2 1.1 1.3 2.2 1.9
Staff InformationNo. of Staff 15,780 16,125 15,777 15,425 15,063
Staff Costs RM million 512.3 513.3 456.4 427.7 425.1
Revenue per employee RM’000 57.2 57.2 54.5 53.2 52.2
* Note: Return on Equity (ROE) is negative due to allowance for impairment losses. Excluding impairment, ROE stood at 10.8% and 12.5% for 2008 and 2007 respectively.
786
820
859
922903
109 108
101
86 82
148 148
145
127 131
RM M
ILLI
ON
RM M
ILLI
ON
RM M
ILLI
ON
Pos Malaysia Annual Report 2009 3
POS MALAYSIA ANNUAL REPORT 2009
0908070605 0908070605 0908070605
Profit After Tax Earnings Per Share (Basic) NTA Per Share
Revenue Breakdown Operating Expenses Breakdown
Courier
Retail
Others
Maintenance & Supplies
Rental, Communications & Utilities
Depreciation & Amortisation
Raw Materials & Consumables
Transportation
Staff Costs
Other Operating Expenses
167
108
(34) (33)
77
31.120.2
(6.3) (6.2)
14.39.2 9.6
1.6 1.4 1.5
SEN
RM M
ILLI
ON
RM
62%
18% 5%
15%
62%
13%
6%
6%
6%
2%
5%RM 903 mil RM 820 mil
Pos Malaysia Annual Report 20094
MAIL BUSINESS COURIER BUSINESS RETAIL BUSINESS
MO
VIN
GFO
RWA
RD
2009
AC
CO
MPL
ISH
MEN
TS
BUSI
NES
SR
EVIE
W
Revenue RM562.3 mil (down 0.6%)• Volume: 1,241.4 mil items (down 2.3%)• Revenue contribution: 62.3%•
Gold Award for the Universal Postal • Union’s (UPU) Quality Management Certification ProgrammeParticipated in the trial of UPU’s Global • Monitoring System; an RFID based service quality monitoring systemEmbarked on delivery beat recasting• Started deployment of an Electronic • Prepaid Mail Transaction System
Rationalised international lanes for cost • savings and improved profitabilityIntroduced• shipment tracking via SMSReader’s• Digest Trusted Brand AwardsFrost• & Sullivan Asia Pacific Transportation & Logistics Awards for Domestic Express Service Provider of the Year (Malaysia)MSC• Malaysia APICTA as the Best e-Logistics for PITTISBrand• Laureate AwardsInternational• Business Review Awards for excellence in government delivery servicesIntroduced• Electronic Shipping Tools (EST) to premium customers which handles large shipments.
Introduced Shared Banking Services • with RHB BankIntroduced Pos Automated Machine • (PAM)Launching of Pos-on-Wheels• New Look & Feel for KL GPO and • Kuantan GPOAddition of Affin Bank, Al-Rajhi Bank • and EON Bank as payment gateway for PosOnline
Revenue RM167.0 mil (up 2.7%)• Volume: 14.6 mil items (up 5.0%) • Revenue contribution: 18.5%•
Revenue RM139.0 mil (down 3.2%)• Volume: 107.6 mil transactions (down • 6.5%)Revenue contribution: 15. 4%•
Establishing network relationship with • international courier providers to develop new business opportunities
Crafting new Retail Strategy• Focus on financial services/products and • postal products
Develop Direct Mail• Grow parcel business• Capitalise on new business • opportunities in Corporate Mail Management
Business Highlights
Pos Malaysia Annual Report 2009 5
POS MALAYSIA ANNUAL REPORT 2009
POS MALAYSIA BERHAD
SHARE PRICE PERFORMANCE
POS Volume POS Share Price
RM2.02 as at2 Jan 2009
RM2.22 as at31 Dec 2009
2009 JAN FEB MAR MAY JUNE JULY AUG SEPT OCT NOV DECAPR
Total Monthly Volume
Monthly High (RM)
Monthly Low (RM)
Monthly End Closing Price (RM)
5,762,700
2.04
1.98
2.02
4,665,900
2.20
2.03
2.03
4,841,400
2.14
2.05
2.12
2,923,000
2.23
2.10
2.23
1,869,000
2.50
2.22
2.39
3,402,500
2.54
2.14
2.20
3,075,600
2.34
2.01
2.34
2,744,700
2.47
2.18
2.20
4,436,200
2.35
2.11
2.28
1,842,700
2.43
2.21
2.31
1,822,600
2.42
2.12
2.36
5,307,300
2.31
2.12
2.22
JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
Pos Malaysia Annual Report 20096
Pos Malaysia Annual Report 2009 7
POS MALAYSIA ANNUAL REPORT 2009
OUR BUSINESS AND ACCOMPLISHMENTS
Contents
18th
Annual General Meeting12 May 2010The Legend Grand Ballroom,Legend Hotel Kuala Lumpur,Level 9, Putra Place,100, Jalan Putra,50350 Kuala Lumpur
Cover Rationale
Group Financial Highlights
Business Highlights
Share Price Performance
Our Business & Accomplishments
Chairman’s Statement
Group Managing Director / CEO’s Report
Accolades and Awards
Mail Business
Courier Business
Retail Business
Group Products & Services
Corporate Events
Pos Malaysia in the News
Our Profile
Corporate Information
Group Structure
Board of Directors
Leadership Team
Our Commitment
Corporate Social Responsibility Statement
Corporate Governance Statement
Statement of Internal Control
Directors’ Responsibility Statement
Additional Compliance Information
Audit Committee Report
Directors’ Report & Financial Statements
Directors’ Report
Balance Sheet
Income Statement
Statement of Changes in Equity
Cash Flow Statements
Notes to the Financial Statements
Top 10 Properties
Analysis of Shareholdings
Notice of 18th Annual General Meeting
Proxy Form
01
02
04
05
06
10
14
20
22
26
30
36
40
48
50
52
54
55
68
72
74
76
92
96
98
100
107
108
112
114
115
116
119
188
194
198
203
Pos Malaysia Annual Report 200910
Chairman’s Statement
Dear Valued Shareholders,It is my pleasure to present to you the Annual Report and
Audited Financial Statements of the Group for the financial
year ended 31 December 2009.
The Group posted revenue of RM902.6 million for 2009,
lower than 2008 performance of RM921.7 million. The
revenue decline of 2.1% was recorded amidst weak economic
conditions which adversely affected mail volume. Despite the
drop in revenue, the star t of our transformation effort has
managed to reduce the impact whereby operating profit only
declined by RM3.9 million from RM86.2 million in 2008 to
RM82.4 million in 2009.
2009: Weathering the TurbulenceThe recession in 2009 was unprecedented in its scale and
impact. The first quarter of the year was heavily influenced by
the massive de-risking as volatility and risk aversion pushed
investors to unwind their positions. In the second half of the
year, government and central bank support was a key driver to
help inch positive readings back to macroeconomic indicators.
Pos Malaysia weathered through this difficult period through
intensifying cost management. Cost mitigation measures and
process improvement initiatives were aggressively pursued
in 2009. In line with the measures taken, the Group saw
operating expenses declined by RM15.2 million to close at
RM820.2 million.
2009 Headline Key Performance Indicators (KPI)The 2009 Headline KPI achievement showed mixed
results. The Group managed to surpass its Earnings Before
Interest, Taxes, Depreciation and Amortisation (EBITDA)
and Return on Assets (RoA) Headline KPIs. Pos Malaysia
recorded EBITDA of RM131.3 million, slightly above the
target of RM130 million, whilst RoA was at 5.9% against the
announced Headline KPI of 4.5%. The achievement is in line
with cost management measures adopted by the company.
However, Pos Malaysia missed its Revenue Headline KPI of
RM940 million by 3.8%.
Dividend PayoutPos Malaysia remains committed to its Dividend Policy of
declaring at least 35% of net profit as dividend. Our Dividend
Policy defines net profit as net profit after tax excluding
one-off exceptional/extraordinary items such as impairment
and capital gains. For 2009, the net profit attributable to
shareholders excluding minority interests and exceptional
items stood at RM70.5 million.
“Cost mitigation measures and process improvement initiatives were aggressively pursued in 2009.”
POS MALAYSIA ANNUAL REPORT 2009
12 Pos Malaysia Annual Report 2009
Chairman’s Statement
I am pleased to report that the Board of Directors is
proposing a final dividend of 12.5 sen per ordinary share
less 25% income tax to be paid out to the shareholders
for the financial year ended 31 December 2009, subject to
shareholders’ approval at the 18th Annual General Meeting
of Pos Malaysia. This translates into net dividend payout of
71.4% of net profit, 36.4% higher than the minimum payout
ratio declared in the Dividend Policy.
AwardsEven in difficult times Pos Malaysia continues to deliver
outstanding services and this is recognised by the array of
awards bestowed on to the Group. Pos Malaysia garnered
the Universal Postal Union’s (UPU) Quality Management
Certification Programme Gold Award for 2009. PosLaju
continues its winning streak with the Reader’s Digest
Trusted Brand Gold Award for the fourth consecutive year.
PosLaju also clinched the Frost & Sullivan 2009 – Asia Pacific
Transportation & Logistics Award for Domestic Express
Service Provider of the Year. Pos Malaysia’s continuous effort
to leverage on Information and Communications Technology
was also recognised when it won the MSC Malaysia Asia
Pacific ICT Award, as the Best in e-Logistics Category for
our development of a track and trace system.
2010: The First Year of the Transformation Master PlanThe macroeconomic outlook for Malaysia and other emerging
market economies is positive. However, we need to remain
cautious as concerns remain on the sustainability of the global
recovery as well as added downside risks from withdrawal of
government support in developed economies.
The postal industry, both globally and locally will continue
to be a challenging environment as it continues to face
an unprecedented level of competition from electronic
communications. While we do not expect to see a free fall
in letter mail volumes, there does appear to be a systemic
decline especially with transactional letter mails. However
the same trend in electronic communications is also
providing real growth oppor tunities as more goods are
being ordered online.
The launch of Pos Malaysia’s Transformation Master Plan is
timely in addressing the challenges and seizing opportunities
that surfaced as a result of the downturn. Cost management
initiatives will be accentuated with the redesign and
enhancements to operations and functions so as to deliver
optimum productivity. New growth opportunities will
also arise through leveraging on previously under utilised
strengths within the Group especially with its courier and
retail businesses which will help to reduce our dependency
on mail.
13Pos Malaysia Annual Report 2009
Board ChangesThe Board of Directors would like to welcome to the
Pos Malaysia Berhad Board of Directors Tan Sri Dato’ Ir.
Muhammad Radzi bin Haji Mansor and En. Haizan bin Mohd
Khir Johari who were appointed on 21 October 2009 and
23 February 2010 respectively as Non Independent Non
Executive Directors. Tan Sri Dato’ Ir. Muhammad Radzi brings
with him a wealth of knowledge and experiences for more
than 20 years in the telecommunications industry including
as Chairman and Director at Telekom Malaysia Berhad from
1999 to 2009. En. Haizan is currently Senior Vice President,
Investments at Khazanah Nasional Berhad.
Pos Malaysia weathered through the turbulence of 2009
through the strength and support of all our stakeholders.
We would like to extend our hear tfelt gratitude and
appreciation to all those who have been instrumental in
helping us cope with the difficult conditions: our staff for
their unwavering dedication and sacrifices, the Unions for
their collaboration and our customers and par tners for their
continuous support.
The Board of Directors and Management of Pos Malaysia
Berhad would also like to extend its sincere appreciation to
YBhg Datuk Abu Huraira bin Abu Yazid for his contributions
as Executive Director/Group Chief Operating Officer (ED/
GCOO). Datuk Abu Huraira’s term as Executive Director
ceased pursuant to the expiration of his term of service as
ED/GCOO of the Company with effect from 1 August 2009.
Datuk Abu Huraira also subsequently resigned as Director
effective 1 August 2009 and has been appointed as Chairman
of SOCSO effective the same day. We wish him all the best
in his current role.
Lastly, we would like to thank our loyal shareholders for their
continued trust and faith in Pos Malaysia. With the support of
all our stakeholders, Pos Malaysia will endeavour to deliver its
best in the years ahead.
Sincerely,
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat
Chairman
Pos Malaysia Annual Report 200914
Group Managing Director / CEO’s Report
It has since been another trying year for the postal industry
worldwide amidst a turbulent global economy. Pos Malaysia
navigated through 2009 with intensified cost management
measures and revenue enhancement effor ts to battle severe
challenges from declining postal volume.
Sustained Performance Amidst AdversitiesIn 2009, Pos Malaysia achieved a total year end revenue of
RM902.6 million, underperforming 2.1% against the results
of RM921.7 million in 2008. Taking into consideration the
difficult business environment, Pos Malaysia’s performance
and achievement in 2009 is yet a commendable one.
“We see 2010 bringing greater opportunities for us, as we shift strategies
in line with the expected gradual economic recovery, capitalising on new growth
areas such as direct mail and emerging technologies to
facilitate e-commerceand delivery needs.”
Pos Malaysia Annual Report 200914
Pos Malaysia Annual Report 2009 15
POS MALAYSIA ANNUAL REPORT 2009
Mail business continues to be the major source of revenue
despite declining mail volume, contributing RM562.3 million,
or 62.3% of the Group’s revenue. Courier business improved,
registering a 2.7% revenue increase to RM167.0 million, whilst
the retail business experienced a slight dip in revenue by
3.2% to RM139.0 million in 2009. Courier and retail business
contributed 18.5% and 15.4% to total revenue respectively
in 2009.
Operating expenses for 2009 registered at RM820.2 million,
lower by RM15.2 million from RM835.4 million in 2008. The
intensified cost management programme has contained
significant cost escalation. For example, staff cost is at the
same level as last year even with salary increases and bonus
payments while transportation cost has reduced by 13.6%
due to lower fuel prices.
Notwithstanding the prevailing difficulties in the economy,
Pos Malaysia emerged profitable in 2009. Operating profit
was slightly lower by 4.5% from RM86.2 million in 2008 to
RM82.4 million. On the other hand, Earnings Before Interest,
Depreciation and Amortisation (EBITDA) improved by
3.6% to RM131.3 million from RM126.7 million last year.
We recorded a profit before taxation of RM109.3 million
and net profit of RM76.7 million, as compared to a loss
before taxation of RM0.5 million and a loss after taxation
of RM33.3 million in 2008.
This was largely attributable to the effective cost optimisation
measures throughout the year and the absence of any
investment impairment provisions. The year also saw Pos
Malaysia consolidating its investments via disposal of
G-Force and the acquisition of the remaining 45% equity
interest in Digicer t.
Aligning People and StrategyOur people are our most treasured resources and they have
continued to support our growth in good and bad times. In
return, Pos Malaysia continues to provide opportunities for
learning and growth, career development as well as equipping
our people with the right skills and competencies to handle
value adding tasks and expanded roles. Our commitment
is evidenced through our “Growing Together Programme”
which saw qualified, performing non executive staff being
given opportunities to assist in undertaking responsibilities in
the execution of strategic initiatives.
At the same time, we fur ther recognise and reward our
people’s effor ts through the launch of Employee of the Month
and Employee of the Year Awards apar t from realigning
our reward framework to instil a high performance, profit
driven culture. During the year, the company revisited its
recruitment and resource planning strategy and redeployed
staff to better manage resources in difficult times.
POS MALAYSIA ANNUAL REPORT 2009
16 Pos Malaysia Annual Report 2009
Group Managing Director / CEO’s Report
Improving Customer Satisfaction Pos Malaysia’s commitment towards improving customer
satisfaction is evidenced by our improved Customer
Satisfaction Index (CSI) and Image Index (II) results. For 2009,
Pos Malaysia scored 3.9 out of 5.0 for CSI, which translates
into 78% satisfied customers, an increase by 2 percentage
point against preceding year with CSI score of 3.8. The
study measures customer satisfaction on Pos Malaysia’s
products and service level which was conducted by an external
consultant. The survey results showed improved satisfaction
levels for courier and retail business which achieved an index
of 4.0 respectively, while mail CSI is sustained at 3.8. The
customers are also satisfied with our new corporate identity
as reflected in improved Image Index (II) at 3.5 against 3.3 in
preceding year. All business segments showed improvements
in Image Index with scores for courier at 3.9, retail at 3.5 and
mail at 3.3 out of 5.0 respectively.
17Pos Malaysia Annual Report 2009
Enhancing Regulatory and International DevelopmentIn 2009, Pos Malaysia together with its policymakers
and regulators namely; the Ministry of Information,
Communications & Culture (KPKK) and the Malaysian
Communications & Multimedia Commission (MCMC),
achieved a milestone through the development of the
National Postal Strategy which sets the guiding principles for
the strategy formulation, objectives and action plans for the
reform, development and integration of the postal industry
in line with national economic objectives and Universal Postal
Union (UPU) postal strategy.
On the international front, Pos Malaysia’s re-election into
the Asia Pacific Post Cooperative Management Board in
Auckland, New Zealand during the Asia Pacific Postal Union
(APPU) Congress in March 2009 was testimony to our
regional leadership role.
As part of our contribution to improving quality of service
in the region, Pos Malaysia participated in the UPU-APPU
Regional Quality of Service Programme which commenced
in August 2008 and was completed in November 2009.
Consequently, Pos Malaysia won the Gold award for the
UPU Quality Management Certification Programme. In
addition, Pos Malaysia implemented the Global Monitoring
System (GMS) in our International Office of Exchange as
a first step towards enhancing delivery performance for
inbound international mail and thus, contributing to overall
international network enhancement.
Gearing Up for TransformationThe postal industry is at a precipice of change, driven by the
explosion of digital media and changing customer behaviours.
In recent years, letter volumes continue to decline at
unprecedented rates as companies seek cheaper alternatives
to drive down business costs. For Pos Malaysia, the status quo
is untenable.
Our Transformation Framework
We are compelled to respond to the new landscape and shape
our future. Having our business confronted with alarming mail
volume declines, escalating costs and threats of obsolescence
from abundant electronic substitutes, we had no choice but to
gear into a transformation mode for survival.
Acknowledging the challenges and the need to achieve
performance breakthrough, Pos Malaysia launched the 3-year
Transformation Master Plan (TMP). Our TMP is anchored
on a clear strategic direction: focus on our domestic core
business, namely mail, courier and retail in the next 3 years.
POS MALAYSIA ANNUAL REPORT 2009
18 Pos Malaysia Annual Report 2009
Group Managing Director / CEO’s Report
The TMP aims to develop a more customer-centric
environment to extend convenience and easier access to
our customers, along with improvements to our operational
efficiency and optimisation of our resources, allowing the
Group to pursue new business opportunities.
The TMP equips us with a road map that zeroes in on the
following pillars:
Focus on customer needs – Create new solutions to •
meet ever-changing customer demands;
Operational excellence – Leverage on the latest •
technological advances to improve efficiency;
Concentrate on core business – Anchoring on profitable •
business and doing away with the contrary;
Unleash talent and capabilities – Developing and •
nourishing talents to nurture future leadership team;
Strengthen image – Refreshing look and feel to our outlets •
and simplifying processes for customer satisfaction.
Within the pillars are 39 initiatives with comprehensive
execution plans. Management will be actively and regularly
monitoring the progress of the initiatives, and look forward
to sharing our fruition from rejuvenation throughout the
next 3 years. Though some quick wins have been realised, the
TMP would only yield most of its benefits in 2011 and 2012.
Early SuccessesThrough more effective management of resources, Pos
Malaysia managed to reduce its total number of employees
for the very first time. Total number of staff at 31 December
2009 was 15,780, down 345 from 16,125 a year earlier.
This was done through natural attrition and redesigning
certain processes. Key among them is our delivery beat
recasting initiative which saw the number of delivery beats
reduced, whilst at the same time allowing for the redeployment
of our employees. Upgrading of our procurement process
through demand aggregation as well as Group wide Quality
Improvement Team are yielding significant cost reductions.
Pos Malaysia also introduced the first ever Pos Automated
Machine (PAM), a self-service terminal capable of conducting
simple posting transactions, stamp purchases and bill
payments as part of our commitment to improve customer
experience and convenience.
In early 2010, Pos-on-Wheels was also launched, essentially a
mobile post office offering the full range of services, to reach
out to more convenient locations and rural areas.
Number of Staff Declined in 2009
0908070605
15,06315,425 15,777
16,125
15,780
19Pos Malaysia Annual Report 2009
In addition, extensive vibrant renovations have also been
carried out at our main branches as part of the re-branding
initiative, with every intention of revamping the total customer
experience at Pos Malaysia.
2010: Opportunities and ProspectsWe see 2010 bringing greater opportunities for us, as we
shift strategies in line with the expected gradual economic
recovery, capitalising on new growth areas such as direct
mail and emerging technologies to facilitate e-commerce and
delivery needs.
We pledge to FOCUS our efforts to SIMPLIFY our processes,
to better ENGAGE our people and customers, allowing us to
DELIVER more value to all our stakeholders.
Truly Yours,
Dato’ Syed Faisal Albar
Group Managing Director / Chief Executive Officer
The 16th ASEAN Postal Business Meeting in Phuket in January 2010
The Group will persist in offering its services to all Malaysians
affordably, while improving efficiency and service delivery.
We will go the distance to show how serious we are at
changing the way Pos Malaysia connects with consumers and
remain relevant always.
Pos Malaysia Annual Report 200920
Pos Malaysia Annual Report 2009 21
POS MALAYSIA ANNUAL REPORT 2009Accolades and AwardsACCOLADES AND AWARDS
Pos Malaysia Annual Report 200922
Mail Business
The Quality Management System (QMS) which utilises
“lean management” concept at our 32 MPCs, has
been successful in simplifying the workflow, improving
efficiency and minimising waste. It has also improved
teamwork and created a “continuous improvement”
culture among the employees.
The National Mail and Parcel Hub (NMPH) project is
progressing as planned. The project aims to improve mail
sorting efficiency by consolidating four mail processing
centres in the Central region at a single facility in Shah
Alam with improved building design and workflow
with advanced systems and equipment. The project is
expected to be completed by the end of 2010 and will
see higher automation level and improve quality of mail
services to our customers.
Focus on customers’ needs •We continue to explore new technology in efforts to
provide customers with better and faster services. We
have developed the Electronic Prepaid Mail Transaction
System which allows our bulk mail customers to prepare
posting documents and enquire about posting history via
the Internet. This integrated system also allows our bulk
mailers to conduct their transactions at any of the mail
processing centres nationwide as well as purchase any of
our products, making it easier and more convenient for
Pos Malaysia as the designated postal operator in Malaysia
handles traditional mail business through its strategic business
unit, PosMel. Datapos Sdn Bhd, a wholly owned subsidiary of
Pos Malaysia manages the hybrid mail business, which offers
document and data processing services.
PosMel HighlightsMail business posted total revenue of RM562.3 million, a
marginal drop of 0.6% from RM566.0 million in 2008. The
decline in revenue against the preceding year was in line with
lower mail volume handled for the year, in particular the social
mail. In 2009, we handled 1.25 billion mail items, against 1.27
billion items in the preceding year. Key growth areas such as
parcel and transactional mail continue to record 25% and 1%
growth respectively. Thus far, mail remains the major revenue
contributor representing 62.3% of the Group’s revenue.
PosMel is supported by an extensive delivery network
comprising 32 mail processing centers (MPC), 387 delivery
branches, 4,482 street posting boxes, 103,198 P.O. boxes and
one international gateway at KLIA.
Operational excellence•During the year, PosMel embarked on various initiatives
to improve operational efficiency. Among others, we
are optimising delivery workforce and reducing costs
by implementing our beat recasting exercise.
Pos Malaysia Annual Report 2009 23
POS MALAYSIA ANNUAL REPORT 2009
customers. The system has now been deployed at thir ty
two locations in Klang Valley and will be progressively
extended to other states.
Pos Malaysia participated in the trial of a new service
quality monitoring system based on radio frequency
identification (RFID) technology that involves 21 postal
administrators. Developed by the Universal Postal Union
(UPU), the Global Monitoring System (GMS) aims to
measure inbound service quality for letter mail delivery.
Leveraging on our wide network of delivery postmen
and our effor ts to be closer to customers, we
extended the access points for customers to do simple
transactions such as purchase of stamps, purchase of
Pos Ekspres envelopes and posting of letters through
mobile postmen. Launched nationwide in April 2009,
this initiative to bring our products and services
closer to customers received encouraging response
from the public.
Strengthening ties and quality of services •We have par ticipated in various international and
regional postal forums to foster closer ties and develop
business par tnerships. In 2009, we par ticipated in the
Regional Workshop on Quality of Service for Asia-Pacific
Region under the New Approach to Field Suppor t for
Postal Administrations, which was organised by the
UPU with the cooperation of Asia Pacific Postal Union
(APPU). These workshops were held in Jakar ta in May
2009, in Ulaanbaatar, Mongolia in August 2009 and in
Male, Maldives in December 2009.
POS MALAYSIA ANNUAL REPORT 2009
24 Pos Malaysia Annual Report 2009
Datapos HighlightsDatapos provides total mailing solution from data processing (formatting and sor ting) to data printing, enveloping, bulk mailing
and delivery. The establishment was a strategic move to complement the array of services that Pos Malaysia offers and
penetrate into document and data processing market.
In 2009, Datapos registered a marginal increase in revenue of 0.4% from RM14.4 million to RM14.5 million, amid intense
competition and price war. Similarly, volume has increased by 20% from 51.1 million in 2008 to 61.3 million.
As part of our modernisation efforts, Datapos has introduced a tracing system known as Account Number Verification (ANV) for
customers to conveniently track and refer to the data processed.
Moving Forward Into 2010 Focus in coming year includes embarking on core business, in par ticular growing direct mail, parcel as well as hybrid mail
business. We will continue to foster business par tnerships with relevant organisations to expand the high growth areas. In
addition, we will continue to pursue operational excellence by streamlining the network structure and consolidating mail
processing centers in other regions within Malaysia.
Mail Business
25Pos Malaysia Annual Report 2009
Can a GPS find incomplete addresses?A postman can. He knows his area like the back of his hand through years of delivering mail, not to mention his familiarity with the locals. It’s experience, and that’s something no GPS has.
Pos Malaysia Annual Report 200926
Courier Business
Operational excellence•In 2009, we embarked on a project to restructure
the existing delivery network for the Group’s high
value items. The Streamlining Network Structure
(SNS Project) is on-going and is expected to fur ther
improve the operational efficiency of express and
mail services.
Our effor ts to improve the international delivery
network by rationalizing the international lanes
utilisation (EMS vs Non EMS) saw cost savings and
higher profitability for some international lanes.
Focus on customers needs•During the year, we introduced the Electronic Shipping
Tools (EST) to our premium customers, which handles
large volume of shipments. EST provides convenience,
cost and time savings to our customers.
PosLaju has also introduced SMS service for customers
to track their shipment. Now, customers can choose to
do tracking via SMS or through www.poslaju.com.my.
Pos Malaysia operates its courier business through its strategic
business unit, PosLaju and PSH Express Sdn Bhd. For 2009,
courier business posted a consolidated revenue of RM167.0
million amidst a competitive and challenging environment, an
increase of 2.7% against 2008 performance.
PosLaju Highlights In 2009, PosLaju recorded RM165.2 million in revenue, an
increase of 3.1% from RM160.3 million in 2008, despite the
contraction in Malaysian economy. The increase in revenue
was attributed to increase in demand from contract customers
by 4.2% and retail customers by 1.9%. In tandem with the
increase in revenue, PosLaju recorded an increase in volume
by 5.0% from 13.9 million in 2008 to 14.6 million in 2009.
PosLaju contributes 18.5% of the total group revenue.
To date, PosLaju services are available at more than 1,217
outlets, leveraging on our vast network of post offices
and Pos Mini outlets, as well as 50 PosLaju centres, 274
authorised agents and 2 service centres. With more than
27% market share of domestic shipment, PosLaju is the
leading domestic courier company in Malaysia.
Pos Malaysia Annual Report 2009 27
POS MALAYSIA ANNUAL REPORT 2009
The scanners on web facility were deployed at post offices
nationwide to improve its track and trace capability. The
above effort allowed the Operation Application Layer
(OAL) system to provide the latest delivery status for
items processed at post offices.
In 2009, PosLaju opened the Batu Caves branch and
relocated two of its branches; PosLaju Bukit Mertajam
and PosLaju Melaka. PosLaju has appointed more
authorised agents in 2009 to provide greater accessibility
to customers nationwide. All these expansion plans
enable PosLaju to continue having the largest network
among any other courier company in Malaysia.
Recognition of excellence•PosLaju has won 5 industry awards in recognition of
its outstanding performance in the domestic courier
industry. These awards include the Reader’s Digest
Trusted Brand 2009, Brandlaureate Awards 2009 for
Best Brand under courier & express service category,
and the Merit Award by International Business Review
2009 for excellence in government delivery service.
For the first time in 2009, PosLaju has been selected
to receive Frost & Sullivan Asia Pacific Transpor tation
and Logistics Awards for Domestic Express Service
Provider of the Year (Malaysia) and the MSC Malaysia
Asia Pacific ICT Awards (APICTA) as the Best in
e-Logistics for its effor t in enhancing its service
quality and performance via the development of Pos
Integrated Track & Trace System (PITTIS).
POS MALAYSIA ANNUAL REPORT 2009
28 Pos Malaysia Annual Report 2009
Courier Business
Moving Forward In 2010Courier industry will remain competitive in 2010 and
to meet these challenges, Pos Malaysia will continue to
build on its strengths and introduce new and innovative
products to meet customers demand. Our courier business
is also looking at establishing network relationship with
international courier providers to develop new business
oppor tunities and increase revenue streams.
PSH Express HighlightsPSH Express, a wholly owned subsidiary of Pos Malaysia
Berhad, provides customised door-to-door courier services
to corporate clients under the brand name of AsiaXpressTM.
AsiaXpress offers corporate clients fast and reliable
solutions for the movement of time-sensitive documents and
parcels to more than 220 destination countries worldwide.
AsiaXpress’ clientele comprises mostly government ministries
and agencies, Government-Linked Companies, financial
institutions, law firms, oil and gas companies, engineering
firms and institutes of higher learning.
2009 was a challenging year for PSH Express against a backdrop
of global economic crisis. In tandem with the economic
slowdown, overall shipment volume for PSH Express fell 11%
mainly due to a dip in demand for international shipment
which was mitigated by a growth in volume of 13% from
domestic shipment. Despite a softer demand for international
shipment, PSH Express posted revenue of RM4.2 million.
During the year, PSH Express focused much of its efforts
towards the improvement of the online shipping system
“X-Ship” to be a more user-friendly, efficient and robust
shipping tool for customers. 2009 marked another notable
milestone for PSH Express when it was awarded the
prestigious Industry Excellence Award 2009 – Certificate of
Excellence in the Export (Services) category by the Ministry
of International Trade and Industry in recognition of its par
excellence performance.
29Pos Malaysia Annual Report 2009
“Pos Malaysia will continue to build on its strengths and introduce
new and innovative products to meet
customers demand.”
Pos Malaysia Annual Report 2009 29
Pos Malaysia Annual Report 200930
Retail Business
Pos Malaysia’s retail service is operated by PosNiaga, one of its strategic business units. PosNiaga has the largest footprint in the
country, managing more than 1,000 outlets. It offers a wide variety of products and services through many channels; over-the-counter,
online and its recently introduced self service terminal to accept payment.
Retail Business Network Reach (as at 31.12.2009)
Post Offices 697
Pos Mini 352
Postal Agents 227
Stamp Vendors 5,087
Mobile Post Offices 1
Post Offices that can handle renewal of road tax/driving license 688
Post Offices at shopping complex 65
Post Offices with extended services beyond 7pm 24
Post Offices which open on Sundays/Fridays
(where Sundays/Fridays are weekend)
19
Pos Automated Machine (PAM) 1
Pos Malaysia Annual Report 200930
Pos Malaysia Annual Report 2009 31
POS MALAYSIA ANNUAL REPORT 2009
PosNiaga HighlightsPosNiaga registered a drop in revenue by 3.2%, from RM143.6
million in 2008 to RM139.0 million in 2009. This was mainly due
to the completion of fuel cash rebate disbursement services
since 14 April 2009. In addition, PosNiaga also registered a
drop in the number of transactions handled from a total
transaction of 115.2 million to 107.6 million attributed mainly
by the reduction in utility bills and completion of fuel cash
rebate exercise.
Focus on customers need•True to its commitment to continuously provide
innovation for customers’ convenience, PosNiaga made a
maiden introduction of its new payment channel, namely
the Pos Automated Machine (PAM) in November 2009.
The first PAM terminal was placed at the Kuala Lumpur
General Post Office (KL GPO). PAM will be deployed in
stages, at twenty (20) selected locations throughout the
country in 2010.
PAM is essentially a self service terminal, similar to a
bank’s ATM machine with additional postal services,
the first of its kind in Malaysia. PAM offers purchase
of stamp label, posting of Non-Standard Letter, posting
of domestic PosLaju items, posting of domestic
PosParcel and PosDaftar items, top-up for Standing
Order Deposit Account (SODA) and bills payment.
During this familiarisation stage, the operation hours
for PAM are from 6:00 am to 11:30 pm daily (Monday
to Sunday). In future, PAM shall be made available 24
hours a day, 7 days a week.
POS MALAYSIA ANNUAL REPORT 2009
32 Pos Malaysia Annual Report 2009
In January 2010, PosNiaga launched “Pos-on-Wheels”
which offers range of services that is similar to a normal
post office. Pos-on-Wheels will be able to conduct
online transactions, such as buying and selling of
Amanah Saham units, Jabatan Pengangkutan Jalan (JPJ’s)
transactions and purchase of insurance, using satellite
connectivity. In 2010, PosNiaga plans to deploy more
units of Pos-on-Wheels, to serve the rural areas.
During the year, PosNiaga embarked on the new Look
& Feel initiative, creating a new image and conducive
environment for customers patronising our outlets. 2
outlets, KL GPO and Kuantan GPO have been renovated
according to the new Look & Feel in 2009. This will be
extended to other selected outlets, in stages.
Concentrate on core business via partnerships•Pos Malaysia believes in smar t par tnerships to complement and grow our business. Pursuant to the approval from Bank
Negara Malaysia (BNM) for Pos Malaysia to offer banking services, PosNiaga via its par tnership with RHB Bank introduced
the marketing of financial products at selected outlets. The services include application for ASB loan, personal loans and
credit card.
At present, we are at the tail-end of system integration test with both our par tners, RHB Bank and Maybank. Upon
completion, PosNiaga will be able to rollout other services under the Shared Banking Services, such as opening of bank
account, cash deposit, withdrawal and repayment of loans.
Retail Business
33Pos Malaysia Annual Report 2009
Addition of new payment gateway for PosOnline•In 2009, Pos Malaysia via PosOnline (www.posonline.
com.my) introduced new payment gateway providers,
namely Affin Bank, Al-Rajhi Bank and EON Bank, thus
expanding its customer base. With the addition of
these banks, PosOnline now has a total of 8 banks for
customers to have more choices for payment of bills
and online purchases.
Moving forward in 2010PosNiaga has to brace itself for enormous challenges;
competition with multiple service providers offering payment
channels in the market, as well as fast emerging technology
that influence consumer’s behaviour in doing transactions.
The changing landscape has led PosNiaga to transform its
business model. 2010 will see PosNiaga crafting a new retail
strategy in order to remain relevant in the marketplace. The
retail strategy will focus on few areas such as streamlining and
expansion of products/services and retail network structure.
Pos Malaysia Annual Report 200934
DIGICERT SDN BHD
Digicert, the Licensed Certification Authority in Malaysia
which issues legally binding digital certificates, is a wholly
owned subsidiary of Pos Malaysia.
Key HighlightsDigicer t recorded revenue of RM10.5 million, down by
58.1% from RM25.1 million in 2008 due to the completion
of the one-off project of setting up the e-filing system for
Lembaga Hasil Dalam Negeri Malaysia (LHDNM) and the
subsequent diminishing volume in e-filing by first time users
evidenced by the drop in the number of digital cer tificates
issued from 659,319 in 2008 to 508,043 in 2009. This was
par tially mitigated by Public Key Infrastructure (PKI) projects
with Ministry of International Trade and Industry (MITI) and
Malaysian Industrial Development Authority (MIDA).
2009 saw Digicert embarked on MyGSet PKI project for
Kastam DiRaja Malaysia (KDRM) and the third generation
e-passport project for Immigration Department of Malaysia
besides completion of MIDA and MITI PKI projects.
Based on the Digital Signature Act (DSA) Performance
and Compliance Audit 2009, Digicert exceeded the key
performance indicators in 5 out of 6 areas for Local &
Technical Security Policy and all 3 PKI Security & Technical
Controls as stipulated by Malaysian Communications and
Multimedia Commission (MCMC), an achievement in
operational excellence.
Pos Malaysia Annual Report 2009 35
POS MALAYSIA ANNUAL REPORT 2009
Moving forwardThe company will look into fur ther developing and diversifying its products and services as required by its key customers.
The enhancements on application services for customers are expected to be the company’s main focus. Digicer t is confident
that 2010 will bear a better outlook for PKI as well as other IT security products and services amid fast growing electronic
commerce activities.
Pos Malaysia Annual Report 200936
Group Products and Services
DATAPOS SERVICES
• DATA PROCESSING
• Database management • Software solutions
• HIGH SPEED DIGITAL LASER PRINTING
• High volume digital quality printing • Personalised (variable data printing) • Simplex highlight colour • Simplex and duplex B&W/colour • Continuous and cut sheet printing
• MAIL PROCESSING
• Enveloping, barcoding & account number verification (ANV) • Poly wrapping (plastic) • Page mailer/seal mailer • Address labeling, AR register, packing, docket posting and reporting
• TRANSPORTATION
• Pick-up & delivery
• VALUE ADDED SERVICES
• Data archiving & imaging • Return mail management
POSMEL PRODUCT AND SERVICES
• MAILING SOLUTIONS
• Standard Mail • Non-standard Mail • Parcel
• PREMIUM MAILING SOLUTIONS
• PosEkspress • PosEkspress International • PosDaftar • Bagasi Haji
• BUSINESS MAILING SOLUTIONS
• Pre-paid postage • Franking • Periodicals • PosDokumen • Corporate Mail Management • Business Reply Services • Bulk Mailing
• POST OFFICE SERVICES
• Private Letter Box • Locked Bag Service • Window Delivery Counter
• ADVERTISING SERVICES
• AdMail • Direct Mail
Pos Malaysia Annual Report 2009 37
POS MALAYSIA ANNUAL REPORT 2009
POSLAJU PRODUCT AND SERVICES
• NEXT DAY DELIVERY
Next working day delivery (D+1) within PosLaju coverage area.
• SAME DAY DELIVERY
Local Town & Cross Town Delivery for documents up to 1kg
• PUTRAJAYA EXPRESS
Same day delivery from/to Klang Valley to/from Putrajaya or Cyberjaya
• TIME CERTAIN SERVICE DOMESTIC (TCS)
Guaranteed delivery by 10 am on the next working day
• TIME CERTAIN SERVICE SINGAPORE
Guaranteed delivery by 10 am on the next working day
• TIME CERTAIN SERVICE TOKYO
Guaranteed delivery by 1 pm next working day
• POSPRIORITY EXPRESS
A high performance, premium delivery service to international destinations.
• INTERNATIONAL DELIVERY (EMS)
Deliver to over 200 countries worldwide
• OUR VALUES ADDED SERVICES
• Pick-Up service • Packaging Services • PosLaju Pack – Boxes, envelopes and tube • PosLaju Insurance
• TRACK & TRACE
• Via www.pos.com.my, www.poslaju.com.my and SMS service via mobile
ASIAXPRESS PRODUCT AND SERVICES
• INTERNATIONAL COURIER
• Economy Xpress • Priority Xpress • Diplomatic Xpress • Inbound Xpress
• OTHERS
• Special Handling Services • Customised Logistics Solutions • Corporate Mail Solutions
• DOMESTIC COURIER
• Standard Xpress • Same Day Xpress • Time Certain Xpress
POS MALAYSIA ANNUAL REPORT 2009
38 Pos Malaysia Annual Report 2009
POSNIAGA RETAIL SERVICES
• POSTAL & EXPRESS SERVICES
• PosLaju • PosDaftar • PosEkspres (Domestic and International)
• Parcel • AsiaXpress • Stamps
Group Products and Services
• Public Service Network - Driving License Renewal - Road Tax Renewal - SOCSO payment - Voters’ registration and change of address
• PAYMENT SERVICES
• Bills Payment - Electricity - Water - Telephone - Internet - Assessment - Quit Rent
• Bills Payment - JPA - MARA - PTPTN
• Telco Prepaid Cards/ Reload - Time Kontact - Digi - Maxis - Celcom
• Ticketing and Booking - AirAsia - Firefly
• Zakat (Tithe) Payment -14 states Pusat Zakat
• Stamp Duty
• POSONLINE
• Bills Payment - 116 Agencies
• PosOnline eShop - More than 500 products ranging from books, consumer products, health supplements, accessories, office stationaries etc
• Philately Online - Stamp album - Folder set - Stamp booklet - Special package
• Services Online - Pharmacy Home Delivery Service
• Personalised Stamps Online - Corporate - Individual
• Insurance - Pos Auto Plus - Pos Hospital Cash Income - Pos Maid Protector - Motor Insurance in partnership with panel insurers :
- Malaysian Motor Insurance Pool- Malaysian Assurance Alliance- Syarikat Takaful Malaysia- Kurnia Insurance
- Allianz General Insurance- ETIQA Takaful- ETIQA Insurance
• FINANCIAL SERVICES
• Remittance - Domestic Money Order - International Money Order - Express Money Order - Postal Order - Western Union
• Unit Trust - PNB Products (ASN, ASB, ASM, ASW, ASD, ASG, AS1M)
• Shared Banking Services - RHB Bank: Marketing of Financial Products (ASNB Loan, Personal Loan, Credit Card)
39Pos Malaysia Annual Report 2009
• PHILATELY
• Stamps - Special Issue - Commemorative - Definitive
• SODA account - New Account Registration
• Other Philatelic Products
- First Day Cover - Miniature Sheet - Presentation Pack
• Personalised Stamps - Corporate - Individual
- Account Top-Up
- Folder Set - Stamp Album - Stamp Booklet
• AUTHENTICATION & DIGITAL SIGNATURE SOLUTIONS
• DIGISIGN Server ID Enrich
• DIGISIGN ID Enhanced
• DIGISIGN ID Basic • DIGICERT Server based PKI (Roaming) • DIGICERT Token based PKI • DIGICERT Wireless PKI
• DIGISIGN File Manager • DIGICERT Forms Solution • DIGICERT PKI Toolkit - dc Tools - dc Signature - dc Tools Crypto
• iVEST Client • iVEST Server • iVEST File
• ENTERPRISE MANAGED IT SECURITY SERVICES (EMITSS)
• Risk Assessment • IT Security Assurance • Monitoring Services of critical assets • IT Security Assurance Testing • Managed Identity Management Service • Assurance Services for Data Protection
DIGICERT PRODUCT AND SERVICES
• DOCUMENT SECURITY SOLUTION
• SecureCODE • ID-Trace • Optical Watermark, Transactional Micro-print & Print Control
Pos Malaysia Annual Report 200940
Collaboration withNSTP Gaza Fund
Service with a Smile Campaign
Commemorative Stamp in Honour of theSilver Jubilee Anniversary of His Royal Highness
the Sultan of Perak Darul Ridzuan
23 January 2009
3 February 2009
3 February 2009
Realising the responsibility to support the humanitarian efforts for the Palestinians, Pos Malaysia
had taken the initiative to place donation boxes in selected post offices countrywide to raise
fund for the Palestinians. At the launching ceremony, Pos Malaysia was represented by the
Group Managing Director/ Chief Executive Officer YBhg Dato’ Syed Faisal Albar, while NSTP
was represented by its Chief Executive Officer, YBhg Dato’ Anthony Firdauz Bujang.
The campaign was launched by YBhg Tan Sri Dato’ Seri (Dr.) Aseh Che Mat, Chairman of Pos
Malaysia in Ipoh, Perak. The campaign aims to promote good customer centric culture among
Pos Malaysia employees in servicing the customers.
Pos Malaysia issued a Commemorative Stamp and First Day Cover in honour of the Silver
Jubilee Anniversary of the reign of Duli Yang Maha Mulia Paduka Seri Sultan Azlan Muhibbuddin
Shah Ibni Almarhum Sultan Yussuf Izzuddin Shah Ghafarullahu-Lah, the Sultan of Perak Darul
Ridzuan. The Commemorative Stamp and First Day Cover was officially launched by His Royal
Highness the Sultan of Perak at Ipoh City Hall, Ipoh, Perak.
Launch of new PosLaju Centre, Ipoh4 February 2009
PosLaju centre in Ipoh officially moved to a new premise to ensure consistency of comfort
and convenience for customers, which are growing with time. The new centre was officiated
by YBhg Tan Sri Dato’ Seri (Dr.) Aseh Che Mat, Chairman of Pos Malaysia.
Corporate Events
Pos Malaysia Annual Report 2009 41
POS MALAYSIA ANNUAL REPORT 2009
To My Friend in Gaza
Signing Ceremony betweenPos Malaysia and TNT
PosLaju Receives the Award of Excellence for Courier Industry
12 March 2009
17 March 2009
31 March 2009
The project was a collaboration between Pos Malaysia, UNICEF and Wondermilk, to provide
the platform for Malaysian children in expressing their thoughts, hopes and support to the
Children of Gaza through writing. For this purpose, Pos Malaysia had created a special P.O. Box
to receive all the letters, cards and drawings from young well-wishers throughout Malaysia.
PosLaju, the courier arm of Pos Malaysia was appointed by TNT Express to extend TNT’s
delivery into rural areas in Malaysia. PosLaju will perform pick-up and delivery activities for
TNT in Kelantan, Terengganu, Pahang and across the sea in Sabah and Sarawak. The strategic
partnership is to provide products and services that offer speed and convenience for both
PosLaju and TNT’s customers. The partnership also reflects TNT’s trust in PosLaju’s capability
as the preferred courier service in Malaysia.
PosLaju had received the award from Brand Laureate and Readers’ Digest, and it was
presented by the former Prime Minister of Malaysia, YABhg. Tun Abdullah Hj Ahmad
Badawi.
Appointment of Telco & Postas PosLaju Certified Agent10 April 2009
Telco & Post Sdn Bhd had been appointed as PosLaju certified agent, where the company
will accept shipment for PosLaju at their premises. The signing of the agreement was also
witnessed by Malaysian ex-premier, YABhg. Tun Mahathir Mohamad.
POS MALAYSIA ANNUAL REPORT 2009
42 Pos Malaysia Annual Report 2009
Minggu Saham Amanah Malaysia
17th Annual General Meeting
MOU with China Post
19 - 27 April 2009
26 May 2009
3 June 2009
Pos Malaysia participated in the annual Minggu Saham Amanah Malaysia, organised by
Permodalan Nasional Berhad from 20 – 28 April 2009 in Johor. The exhibition involved the
Strategic Business Units of Pos Malaysia namely PosMel (mailing services), PosNiaga (retail &
counter services), PosLaju (courier services), PosLogistik (logistics services), and Asia Express
(international courier services).
The 17th Annual General Meeting for Pos Malaysia Berhad was held at the Legend Hotel Kuala
Lumpur on 26th May 2009.
Pos Malaysia and China Post signed the MOU in enhancing and improving the business
relationship between the two postal operators. The ceremony held in Beijing China was also
witnessed by the Prime Minister of Malaysia, YAB Dato’ Sri Mohd Najib Tun Hj Abdul Razak.
Pos Malaysia Hosts theSecond Quarter of K9 HR Heads Meeting17 June 2009
Pos Malaysia was given the honour to host the Second Quarter of K9 HR Circle meeting, is
an event held every quarter of the year. K9 HR Circle is a group of nine Human Resources
Heads for GLCs under the governance of Khazanah Nasional Berhad.
Corporate Events
Bowling Friendly Match betweenPos Malaysia and Malaysia Communications
and Multimedia Commission19 April 2009
Pos Malaysia participated in the friendly match that included children from Rumah Kebajikan
Anak Yatim/ Miskin Taman Baiduri, Dengkil. The event was held in Berjaya Times Square
and organized by the Sports and Recreational Club of Malaysian Communications and
Multimedia Commission.
43Pos Malaysia Annual Report 2009
SenamSeni 1Malaysia
PosLaju Received the Frost & Sullivan Awards
Hospital Bills Payment via Pos
27 June 2009
23 July 2009
29 July 2009
Pos Malaysia participated in the national event, SenamSeni 1Malaysia, which was organised
by the Ministry of Information, Communications and Culture at Dataran Merdeka. The
activity was organised to promote a healthy and active lifestyle, besides uniting Malaysia
through dance moves which combined elements from all major ethnics in Malaysia.
Once again, PosLaju received the Frost & Sullivan Award for Domestic Express Service
Provider of the Year 2009. The award was received by YBhg. Dato’ Syed Faisal Albar, Group
Managing Director/ Chief Executive Officer at the Award Presentation Ceremony, held at
the Intercontinental Hotel, Singapore.
Pos Malaysia and HUSM signed an agreement to enhance and improve the business payment
service at Pos Malaysia. Customers can now pay their hospital bills at Pos Malaysia’s counter
and also via Pos Malaysia’s online payment service, PosOnline. Hospital Universiti Sains Malaysia
Kubang Kerian is the first hospital to cooperate with Pos Malaysia to provide convenience to
the customers.
RHB Offers Maid Protection Plan via Post Office Counters
PINTAR Motivational Campfor Adopted Schools
30 July 2009
22 – 24 June 2009
Understanding the qualms of the employers of more than 230,000 foreign maids in Malaysia,
RHB Insurance now offers the Maid Protection Insurance Plan via post office counters. The
plan provides coverage for the maids, including death, permanent disability, vicarious liability,
and repatriation benefits, up to RM30,000.
As part of its Corporate Social Responsibility (CSR) initiatives, Pos Malaysia organised a
motivational camp for students in Standard 5 and Form 5 from Sekolah Kebangsaan Kuala Perai,
Bagan Dalam and Sekolah Menengah Kebangsaan Sungai Acheh, Nibong Tebal respectively,
under the PINTAR programme. The Camp was held at Dusun Minda Resort, Kuala Nerang,
Kedah.
POS MALAYSIA ANNUAL REPORT 2009
44 Pos Malaysia Annual Report 2009
ASEANPost RMC for IEMOand Terminal Dues Working Committee6 – 7 August 2009
Pos Malaysia FC won FAM Cup2 August 2009
Pos Malaysia Football Club which was formed in March 2008 had made its debut in the FA
Cup. Although the first strike was not an encouraging win, the team was later recommended
to compete in the FAM Cup. The move proved to be fruitful as Pos Malaysia FC was
crowned the 2009 Champion for the FAM Cup.
The ASEAN Terminal Dues Working Committee Meeting and ASEAN Regional Management
Committee (RMC) for IEMO (International Electronic Money Order) Meetings were
successfully held on 6 – 7 August 2009 in Concorde Hotel, Kuala Lumpur. The ASEAN
Terminal Dues Working Committee Meeting was participated by 15 members from all
ASEANPOST countries except Brunei Darussalam and Myanmar.
Meanwhile, the ASEAN RMC for IEMO Meeting was attended by 13 members from 6
ASEANPOST countries and 3 coordinators namely; Cambodia, Indonesia, Lao PDR, Malaysia,
Philippines, Vietnam, La Poste and Universal Postal Union (UPU).
Corporate Events
Appointment of Contractor to Develop the New National Mail and Parcel Hub (NMPH)31 July 2009
Pos Malaysia continues its transformation efforts with the development of the new National
Mail and Parcel Hub in Shah Alam, that will soon replace the Mail Centres in Bukit Raja,
Bangi and Kuala Lumpur. Global Technological Support Sdn Bhd was appointed as the main
contractor for the project to ensure smooth development of the NMPH.
45Pos Malaysia Annual Report 2009
Pos Malaysia tied-up with TIAM
PosLaju won MSC APICTA Awards 2009
18 September 2009
8 October 2009
A Memorandum of Understanding was signed between Pos Malaysia and Taipei Investors’
Association in Malaysia (TIAM) for Pos Malaysia to provide its services to all members
of TIAM. TIAM members will be promoting Pos Malaysia services and to appoint PosLaju
as their preferred courier service. At the ceremony, Pos Malaysia was represented by its
Chairman, YBhg Tan Sri Dato’ Seri (Dr.) Aseh Che Mat, while TIAM was represented by its
National President, YBhg Datuk Dr Ting Chung Cheng.
PosLaju’s Pos Integrated Track & Trace Information System (PITTIS) applications, had won the
MSC-APICTA Award 2009, in the Best E-Logistic category. The award was presented by the
Minister of Science, Technology and Innovation, YB Datuk Dr Maximus Ongkili.
Buka Puasa with the Orphansand Distribution of Bubur Lambuk10 September 2009
Pos Malaysia continued the tradition of giving and sharing to the unfortunates. Seventy six
orphans, mostly children of Pos Malaysia’s employees that had passed away, and also children
from Rumah Anak Yatim Darul Taqwa and Nur Hikmah were feted at a ceremony held at
Dewan Sri Pos, Pos Malaysia Headquarters. The Bubur Lambuk, a favourite dish in Ramadhan,
was also distributed to all employees in Pos Malaysia Headquarters.
POS MALAYSIA ANNUAL REPORT 2009
46 Pos Malaysia Annual Report 2009
Signing Ceremony betweenPos Malaysia and Prisons Department2 November 2009
A strategic partnership was formed between Pos Malaysia and the Prisons Department
of Malaysia, to provide postal services in prison complexes nationwide. With this
collaboration, Pos Malaysia via its strategic business unit, PosNiaga will now be operating in
the complexes, and PosLaju on the other hand will become the preferred courier service
for the Prisons Department.
Corporate Events
More Banks became PosOnline Partners
Commemorative Stamp on the Coronation of the Yang Di-Pertuan Besar Negeri Sembilan
20 October 2009
24 October 2009
PosOnline, Pos Malaysia’s online payment service has appointed AFFIN Bank, Al-Rajhi
Bank and EON Bank as the latest partners for its payment channel. Pos Malaysia was
represented by its Group Chief Strategy & Planning, Encik Jezilee Mohamad Ramli.
Pos Malaysia issued a commemorative stamp in conjunction with the Coronation of the Yang
Di-Pertuan Besar of Negeri Sembilan, DYMM Tuanku Muhriz Ibni Almarhum Tuanku Munawir.
The Commemorative Stamp and First Day Cover was officially launched by His Royal Highness
the Yang Di-Pertuan Besar of Negeri Sembilan at Istana Lama Seri Menanti, Negeri Sembilan.
World Postal Day9 October 2009
Just like any other postal organisations around the world, Pos Malaysia had also celebrated
this year’s World Postal Day. This year, the national level celebration was held at Shah Alam
General Post Office in Selangor. It was launched by Encik Jezilee Mohamad Ramli, Group Chief
Strategy & Planning of Pos Malaysia.
47Pos Malaysia Annual Report 2009
Singapore Post visited Pos Malaysia to fur ther explore on business opportunities partners
in the postal industry. During the visit, a mutual agreement to embark on a collaboration
for Postal Transshipment was realised between the two postal operators.
Official Visit of SingPost to Pos Malaysia10 December 2009
Launching of Letter for Prime Minister Competition29 December 2009
A “Letter for Prime Minister Competition” for Malaysian students to voice out their
opinions and suggestions towards achieving the 1Malaysia vision. The competition, which
is opened to all Malaysian students aged 7 – 17 was co-organised by the Ministry of
Information, Communications and Culture (MICC), and the Ministry of Education (MOE),
as well as RTM as the media partner. It was launched by YAB Prime Minister, Dato’ Sri
Mohd Najib Tun Haji Abdul Razak during the Christmas Open House in Kota Kinabalu.
Pos Malaysia Annual Report 200948 Pos Malaysia Annual Report 200948
Pos Malaysia Annual Report 2009 49
POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia In the News
Pos Malaysia Annual Report 200950
Pos Malaysia Annual Report 2009 51
POS MALAYSIA ANNUAL REPORT 2009
OUR PROFILE
Pos Malaysia Annual Report 200952
BOARD OF DIRECTORS BOARD COMMITTEES
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat
Non-Independent Non-Executive Chairman
Dato’ Syed Faisal Albar bin Syed A.R Albar
Group Managing Director/Chief Executive Officer
Dato’ Ibrahim Mahaludin bin Puteh
Independent Non-Executive Director
Datuk Low Seng Kuan
Senior Independent Non-Executive Director
Dato’ Krishnan a/l Chinapan
Independent Non-Executive Director
Puan Sri Datuk Nazariah binti Mohd Khalid
Independent Non-Executive Director
Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor
Non-Independent Non-Executive Director(Appointed w.e.f 21 October 2009)
Wee Hoe Soon @ Gooi Hoe Soon
Independent Non-Executive Director
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
Non-Independent Non-Executive Director
Abdul Hamid bin Sh Mohamed
Independent Non-Executive Director
Eshah binti Meor Suleiman
Non-Independent Non-Executive Director
Haizan bin Mohd Khir Johari
Non-Independent Non-Executive Director(Appointed w.e.f 23 February 2010)
Audit Committee
Datuk Low Seng Kuan
Chairman/Senior Independent Non-Executive Director
Wee Hoe Soon @ Gooi Hoe Soon
Independent Non-Executive Director
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
Non-Independent Non-Executive Director
Abdul Hamid bin Sh Mohamed
Independent Non-Executive Director
Puan Sri Datuk Nazariah binti Mohd Khalid
Independent Non-Executive Director(Appointed w.e.f 12 March 2010)
Puan Sri Datuk Nazariah binti Mohd Khalid
Chairperson/Independent Non-Executive Director
Dato’ Ibrahim Mahaludin bin Puteh
Independent Non-Executive Director
Datuk Low Seng Kuan
Senior Independent Non-Executive Director
Dato’ Krishnan a/l Chinapan
Independent Non-Executive Director
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
Non-Independent Non-Executive Director
Eshah binti Meor Suleiman
Non-Independent Non-Executive Director
Board Nomination andRemuneration Committee
Corporate Information
Pos Malaysia Annual Report 2009 53
POS MALAYSIA ANNUAL REPORT 2009
Eshah binti Meor Suleiman
Chairperson/Non-Independent Non-Executive Director
Dato’ Ibrahim Mahaludin bin Puteh
Independent Non-Executive Director
Puan Sri Datuk Nazariah binti Mohd Khalid
Independent Non-Executive Director
Dato’ Krishnan a/l Chinapan
Independent Non-Executive Director
Sabrina Albakri binti Abu Bakar (LS 8508)
Tender Board Committee
Level 33, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
Tel: 603-22672267
Fax: 603-22672266
Registered Office
Tricor Investor Services Sdn Bhd
(formerly known as Tenaga Koperat Sdn Bhd)
Level 17, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra
59200 Kuala Lumpur
Tel: 603-22643883
Fax: 603-22821886
Share Registrar
KPMG
Chartered Accountants
Auditors
Malayan Banking Berhad
CIMB Bank Berhad
HSBC Bank Malaysia Berhad
Bankers
Main Market of Bursa Malaysia Securities Berhad
Stock Exchange Listing
COMPANY SECRETARY
POS MALAYSIA ANNUAL REPORT 2009
54 Pos Malaysia Annual Report 2009
SUBSIDIARIES
ASSOCIATES
No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
No.1.
2.
3.
4.
5.
Name of CompanyCEN Sdn Bhd
Pospay Exchange Sdn Bhd
Elpos Print Sdn Bhd
CEN Worldwide Sdn BhdCEN Technology Sdn Bhd
ShareholderPos Malaysia BerhadTransmile Group Berhad
Pos Malaysia BerhadRoyal Mint ExchangeEconlink Sdn BhdPos Malaysia Berhad
CEN Sdn Bhd
CEN Sdn BhdChay Wai Lan
% of Shareholdings42.5%57.5%
50%50%60%40%
100%
50%50%
Name of Company
Prestige Future Sdn Bhd
PSH Venture Capital Sdn Bhd
PSH Merchandise Sdn Bhd
PSH Express Sdn Bhd
PSH Capital Partners Sdn Bhd
PSH Allied Berhad
PSH Management Sdn Bhd
PSH Properties Sdn Bhd
Effivation Sdn Bhd
Real Riviera Sdn Bhd
Datapos (M) Sdn Bhd
Pos Takaful Agency Sdn Bhd
Virtual Pos Sdn Bhd
Pos Logistics-Fulserve Sdn Bhd
Philately Pos Malaysia Sdn Bhd
PMB Properties Sdn Bhd
Digicert Sdn Bhd
Pos Malaysia & Services Holdings Berhad
Poslaju (M) Sdn Bhd
PSH Investment Holding (BVI) Ltd
Shareholder
PSH Capital Partners Sdn Bhd
Pos Malaysia Berhad
Pos Malaysia Berhad
PSH Venture Capital Sdn Bhd
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
PSH Properties Sdn Bhd
PSH Properties Sdn Bhd
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia Berhad
Pos Malaysia & Services Holdings Berhad
% of Shareholdings
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Group Structure
55Pos Malaysia Annual Report 2009
BOARD OF DIRECTORS
Pos Malaysia Annual Report 200956
Board of Directors
Tan Sri Dato’ Seri (Dr.) Aseh, 58, a Malaysian, was appointed to the Board on 15 July 2008 as Non-Independent Non-Executive Chairman. Tan Sri Aseh obtained his Bachelor of Economics (Honours) degree from the University of Malaya in 1974 and obtained his Masters in Public Administration degree from the University of Southern California, USA in 1984. In year 2007, he received his PhD (Honorary) in International Relations from the Limkokwing University of Creative Technology, Cyberjaya.
Upon his graduation in 1974, Tan Sri Aseh joined the Ministry of Finance as Assistant Secretary. Prior to his retirement in October 2007 as Secretary General of the Ministry of Home Affairs, he held various positions in the civil service, ranging from Principal Assistant Secretary in the Education Services Commission, serving Sarawak and Sabah for 7 years from 1977 to 1981, and other various positions in the Ministry of Home Affairs before being appointed Deputy Director-General of Immigration Malaysia and thereafter, Director-General of Immigration Malaysia.
Tan Sri Aseh is active in community services and is currently the Chairman of RELA Cooperative, Chairman of FAM Monitoring Committee, President of Rifle Association Malaysia, President of Tiara Golf & Country Club, Melaka, Advisor of PAPITA (Singer Association of Malaysia) and Chairman of Limkokwing University of Creative Technology since June 2009. Tan Sri Aseh was also active in the Administrative and Diplomatic Service (ADS) and was its longest serving President from 2001 to 2008. Prior to his appointment as President, he was an EXCO member and thereafter made Vice President of the ADS.
Tan Sri Aseh does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Tan Sri Aseh attended seven (7) out of eight (8) Board meetings held during the financial year under review.
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat Non-Independent Non-Executive Chairman
Particulars of other directorships in public companies:* MWE Holdings Berhad (Chairman)* Stemlife Berhad (Chairman)* Lion Diversified Holdings Berhad
Pos Malaysia Annual Report 2009 57
POS MALAYSIA ANNUAL REPORT 2009
Dato’ Syed Faisal Albar, 44, a Malaysian, was appointed to the Board on 1 November 2008 as the Group Managing Director/Chief Executive Officer of the Company.
Dato’ Syed Faisal is a member of the Malaysian Institute of Cer tified Public Accountants (MICPA) and a member of the American Institute of Cer tified Public Accountants (AICPA).
He star ted his career with Pricewaterhouse (now PricewaterhouseCoopers) Kuala Lumpur in 1991. He served with Pricewaterhouse, San Francisco, California, USA in 1995 before returning to Kuala Lumpur in 1997. Dato’ Syed Faisal joined The New Straits Times Press (Malaysia) Berhad (NSTP) in May 2000 as Financial Controller and was appointed Chief Executive Officer/ Executive Director of NSTP in 2003; a position which he held until October 2008.
Dato’ Syed Faisal does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Dato’ Syed Faisal attended all eight (8) Board meetings held during the financial year under review.
Dato’ Syed Faisal Albar bin Syed A.R AlbarGroup Managing Director/ Chief Executive Officer
POS MALAYSIA ANNUAL REPORT 2009
58 Pos Malaysia Annual Report 2009
Datuk Low Seng Kuan, 63, a Malaysian, was appointed Director of the Company on 1 July 1992. He was re-designated as Independent Non-Executive Director and simultaneously appointed Senior Independent Director with effect from 21 August 2007. Datuk Low is the Chairman of the Audit Committee and a member of the Board Nomination and Remuneration Committee.
Datuk Low is a Char tered Accountant by profession and is a member of the Malaysian Institute of Accountants and has more than 30 years of experience in the manufacturing industry. He graduated from the Footscray Institute of Technology (Victoria University) in Business Studies (Accountancy) and the Royal Melbourne Institute of Technology (RMIT) in Industrial Accountancy.
Datuk Low was the Managing Director of Malaysian Sheet Glass Sdn Bhd until 31 March 2010. He also serves on the Board of a number of private and government-linked corporations. He is the former President of the Federation of Malaysian Manufacturers (FMM) and is currently the Vice-President of FMM. Datuk Low had served as a Board member of the Malaysian Industrial Development Authority (MIDA) and Malaysian Institute of Economic Research (MIER). He is currently the President of Transparency International Malaysia.
Datuk Low does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Datuk Low attended seven (7) out of eight (8) Board meetings held during the financial year under review.
Par ticulars of other directorships in public companies:* Sunway Holdings Incorporated Berhad* Logos Institute Berhad* Be in Health Berhad
Datuk Low Seng KuanSenior Independent Non-Executive Director
Board of Directors
59Pos Malaysia Annual Report 2009
Dato’ Krishnan a/l Chinapan, 63, a Malaysian, was appointed Director of the Company on 1 July 1992. He was re-designated as Independent Non-Executive Director of the Company with effect from 21 August 2007. Dato’ Krishnan is a member of the Board Nomination and Remuneration Committee and the Tender Board Committee.
Dato’ Krishnan is currently a Director of National Land Finance Co-Operative Society Limited, Nalfin Realities Sdn Bhd and Apollo Medical Centre TTDI. Dato’ Krishnan was a Senator in the Parliament from 1986 to 1992.
Dato’ Krishnan does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Dato’ Krishnan attended seven (7) out of eight (8) Board meetings held during the financial year under review.
Dato’ Krishnan a/l ChinapanIndependent Non-Executive Director
POS MALAYSIA ANNUAL REPORT 2009
60 Pos Malaysia Annual Report 2009
Board of Directors
Puan Sri Datuk Nazariah binti Mohd Khalid, 60, a Malaysian, was appointed to the Board on 13 August 2007 as an Independent Non-Executive Director. She is the Chairperson of the Board Nomination and Remuneration Committee and a member of the Tender Board Committee. On 12 March 2010, Puan Sri Datuk Nazariah was appointed member of the Audit Committee.
Puan Sri Datuk Nazariah graduated with a Bachelor of Arts (Honours) degree from the University of Tasmania, Australia and holds a Master of Business Administration degree from Michigan State University, USA. She joined the Malaysian Civil Service in 1972 and served in various capacities prior to her last post as the Director General of the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) in the Prime Minister’s Department.
Puan Sri Datuk Nazariah does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. She has not been convicted of any offence within the past 10 years.
Puan Sri Datuk Nazariah attended all eight (8) Board meetings held during the financial year under review.
Puan Sri Datuk Nazariah binti Mohd KhalidIndependent Non-Executive Director
61Pos Malaysia Annual Report 2009
Dato’ Ibrahim Mahaludin bin Puteh, 58, a Malaysian, was appointed to the Board on 22 August 2007 as a Non-Independent Non-Executive Director. On 25 February 2009, he was re-designated as Independent Non-Executive Director. Dato’ Ibrahim is a member of the Board Nomination and Remuneration Committee and Tender Board Committee.
Dato’ Ibrahim holds a Bachelor of Ar ts (Honours) degree from the University of Malaya and a Master of Business Administration degree from the Manchester Business School, University of Manchester, United Kingdom.
Dato’ Ibrahim is currently the Chairman of Indah Water Konsor tium Sdn Bhd, a position which he held since 1 September 2009 and Chairman of Computer Forms (Malaysia) Berhad since 1 December 2008. He is the former Chairman of Syarikat Prasarana Negara Berhad. Prior to that, Dato’ Ibrahim had served in various divisions at the Ministry of Finance since 1974 including as Senior Adviser to the Executive Director for South East Asia at the World Bank Group in Washington D.C. His last post prior to his retirement from the Ministry of Finance in 2008 was the Deputy Secretary General (Policy) in the Ministry of Finance.
Dato’ Ibrahim does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Dato’ Ibrahim attended all eight (8) Board meetings held during the financial year under review.
Par ticulars of other directorships in public companies:*Computer Forms (Malaysia) Berhad (Chairman)
Dato’ Ibrahim Mahaludin bin PutehIndependent Non-Executive Director
POS MALAYSIA ANNUAL REPORT 2009
62 Pos Malaysia Annual Report 2009
Mr Wee Hoe Soon @ Gooi Hoe Soon, 49, a Malaysian, was appointed to the Board on 13 August 2007 as an Independent Non-Executive Director. He is a member of the Audit Committee.
Mr Gooi is a member of the Malaysian Institute of Cer tified Public Accountants and the Malaysian Institute of Accountants. He has more than 25 years of experience in the fields of accounting and corporate finance and was Finance Director of several private and public listed companies.
He had been instrumental in the successful implementation of several corporate exercises, which included mergers and acquisitions and corporate debt restructuring exercises under taken by public listed companies.
In 1999, Mr Gooi was appointed to the Board of Avenue Capital Resources Berhad as a Non-Executive Director and subsequently appointed as Group Managing Director in 2001 and Deputy Chairman in 2004; holding this last post until 2006. He was also the CEO/Executive Director (Dealing) of Avenue Securities Sdn Bhd.
Mr Gooi does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Mr Gooi attended all eight (8) Board meetings held during the financial year under review.
Par ticulars of other directorships in public companies:* Hup Seng Industries Berhad* Winsun Technologies Berhad* Kobay Technology Berhad* EON Bank Berhad* MIMB Investment Bank Bhd* EON Capital Bhd
Wee Hoe Soon @ Gooi Hoe SoonIndependent Non-Executive Director
Board of Directors
63Pos Malaysia Annual Report 2009
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin, 51, a Malaysian, was appointed to the Board on 13 August 2007 as a Non-Independent Non-Executive Director. Tunku Dato’ Mahmood Fawzy is a member of the Audit Committee and Board Nomination and Remuneration Committee.
Tunku Dato’ Mahmood Fawzy holds a Bachelor of Ar ts (Honours) degree in Business Studies from the Polytechnic of Central London, a Master of Business Administration degree from the Warwick University and a Diploma in Marketing from the Char tered Institute of Marketing. He is also a member of the Malaysian Institute of Management. He has worked in the United Kingdom, New Zealand, South Africa and Malaysia in a variety of senior management positions that span 22 years.
Tunku Dato’ Mahmood Fawzy does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Tunku Dato’ Mahmood Fawzy attended seven (7) out of eight (8) Board meetings held during the financial year under review.
Par ticulars of other directorships in public companies:* Telekom Malaysia Berhad
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin Non-Independent Non-Executive Director
POS MALAYSIA ANNUAL REPORT 2009
64 Pos Malaysia Annual Report 2009
Board of Directors
Encik Abdul Hamid bin Sh. Mohamed, 44, a Malaysian, was appointed to the Board on 13 August 2007 as an Independent Non-Executive Director. He is a member of the Audit Committee.
Encik Abdul Hamid is currently the Executive Director of Symphony House Berhad. Immediately preceding his appointment at Symphony, he was the Chief Financial Officer of the Kuala Lumpur Stock Exchange (KLSE), now known as Bursa Malaysia Berhad. He joined KLSE in 1998 as Senior Vice President, in charge of the Strategic Planning & International Affairs Division and was promoted to Deputy President (Strategy and Development) in 2002. He was re-designated to Chief Financial Officer in 2003. During his five years with the KLSE Group, he held diversed roles and had experience in strategy, corporate finance, business transformation, finance and administration, treasury, external affairs and public relations. He led KLSE’s acquisitions of KLOFFE and COMMEX and their merger to form MDEX, and the acquisition of MESDAQ. He also led KLSE’s demutualisation exercise.
Encik Abdul Hamid star ted his career in the accounting firm Messrs Lim Ali & Co. / Ar thur Young, before moving on to merchant banking with Bumiputra Merchant Bankers Berhad. He later moved on to the Amanah Capital Malaysia Berhad Group, an investment banking and finance group, where he led the corporate planning and finance functions until 1998 when he joined the KLSE.
Encik Abdul Hamid does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Encik Abdul Hamid attended all eight (8) Board meetings held during the financial year under review.
Particulars of other directorships in public companies:* Symphony House Berhad* Hartalega Holdings Berhad* SILK Holdings Berhad (formerly known as Sunway Infrastructure Bhd)* MMC Corporation Berhad* Scomi Engineering Berhad
Abdul Hamid bin Sh Mohamed Independent Non-Executive Director
65Pos Malaysia Annual Report 2009
Puan Eshah binti Meor Suleiman, 55, a Malaysian, was appointed to the Board on 25 February 2009 as Non-Independent Non-Executive Director. She is the Chairperson of the Tender Board Committee and member of the Board Nomination and Remuneration Committee.
Puan Eshah obtained her Bachelor of Economics (Honours) degree from the University of Malaya in 1980 and obtained her Master in Business Administration (Finance) from the Oklahoma City University, U.S.A in 1994.
She star ted her career in 1981 as Assistant Director (Macro Economic Section) Economic Planning Unit of the Prime Minister’s Depar tment before serving as Assistant Secretary at the Government Procurement Division, Ministry of Finance in middle of 1991. Puan Eshah later held various positions in the Government Ministries. In September 2006, she was promoted to her current position as Under Secretary of Investment, Minister of Finance (Incorporated) and Privatisation Division of the Ministry of Finance Malaysia.
Puan Eshah does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. She has not been convicted of any offence within the past 10 years.
Puan Eshah attended six (6) out of eight (8) Board meetings held during the financial year under review.
Par ticulars of other directorships in public companies:* Global Maritime Ventures Berhad*Telekom Malaysia Berhad (Alternate Director) Eshah binti Meor Suleiman
Non-Independent Non-Executive Director
POS MALAYSIA ANNUAL REPORT 2009
66 Pos Malaysia Annual Report 2009
Board of Directors
Tan Sri Dato’ Ir. Muhammad Radzi bin Haji Mansor, 68, a Malaysian, was appointed to the Board on 21 October 2009 as a Non-Independent Non-Executive Director.
Tan Sri Radzi graduated with a Diploma in Electrical Engineering from Faraday House Engineering College, London in 1962, and a Master in Science (Technological Economics) from the University of Stirling, Scotland in 1975. A Char tered Professional Engineer registered with the Board of Engineers Malaysia and Engineering Council United Kingdom, he is a corporate member of the Institution of Engineers Malaysia, the Institution of Engineering and Technology United Kingdom and the Char tered Management Institute United Kingdom.
Tan Sri Radzi was Chairman and Director of Telekom Malaysia Berhad (TM) from 12 July 1999 to 30 July 2009. Prior to that, he had served in various engineering and management capacities in the former Jabatan Telekom Malaysia (JTM) over a period of 22 years, including a three-year secondment as Technical Adviser to the Ministry of Energy, Telecommunications and Post. Tan Sri Radzi retired as Director-General of Telecommunications upon JTM’s corporatization on 1 January 1987, and was subsequently appointed Director of Operations at TM. He served as Director of Marketing and Customer Services from 1989 to 1995 and later as Director of Regulatory Management and External Affairs before retiring in July 1996. From 1997 to 1999, Tan Sri Radzi was retained as a Consultant/Advisor on multimedia flagship application projects for the Multimedia Development Corporation Sdn Bhd and currently, he is a member of its Board of Directors.
Tan Sri Radzi does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Tan Sri Radzi attended all three (3) Board meetings held subsequent to his appointment as Non-Independent Non-Executive Director of the Company during the financial year under review.
Par ticulars of other directorships in public companies:* Kumpulan Fima Berhad (Chairman)
Tan Sri Dato’ Ir. Muhammad Radzi bin Haji Mansor Non-Independent Non-Executive Director
67Pos Malaysia Annual Report 2009
Haizan bin Mohd Khir JohariNon-Independent Non-Executive Director
Encik Haizan bin Mohd Khir Johari, 39, a Malaysian, was appointed to the Board on 23 February 2010 as a Non-Independent Non-Executive Director.
Encik Haizan graduated with a Bachelor of Business Administration majoring in Finance from the University of Hawaii at Manoa in 1992. He star ted in the investments-related field as a trainee at the Por tfolio Management division of Arab Malaysian Merchant Bank in December 1992. Subsequently, he became an equity research analyst at several domestic and international financial institutions including Schroders, Phileo Allied and Credit Suisse First Boston from 1994 to 2003, with coverage in sectors such as telecommunications, automotive, oil and gas, and other primary industries.
In November 2003, Encik Haizan was appointed Special Officer to the Fifth Prime Minister of Malaysia and served as par t of the Policy Unit of the Prime Minister’s Office. He joined Khazanah Nasional Berhad in September 2006, and is currently Senior Vice President, Investments.
Encik Haizan does not have any family relationship with any director and/or substantial shareholder of the Company or any conflict of interest with the Company. He has not been convicted of any offence within the past 10 years.
Pos Malaysia Annual Report 200968
Dato’ Syed Faisal AlbarGroupManagingDirector/ChiefExecutiveOfficer
Jezilee Mohamad RamliStrategy & Planning
Idham IsmailCEO’sOffice
Mohd Lutfi Mat LazimGroup Finance
Mohd Rosdeen HassanInformation, Communication & Technology
Pat WahidGroup Marketing
Leadership Team
Pos Malaysia Annual Report 2009 69
POS MALAYSIA ANNUAL REPORT 2009
Haji Nadza AbdulPosLaju
Bahaman KamaruzzamanPosMel
Sabrina Albakri Abu BakarLegal and Secretarial
Dato’ Mearia HamzahPosNiaga
Dato’ Mohd Derus HarunTransport Management
Dato’ Rohaiza HashimCorporate Communications
POS MALAYSIA ANNUAL REPORT 2009
70 Pos Malaysia Annual Report 2009
Leadership Team
Haji Ithnin TalibSecurity & Investigation
Dato’ Noor Azli OthmanDigicert (M) Sdn Bhd
Aziz ManasInternal Audit
Raja Nur Izah Raja JafaarPSH Express Sdn Bhd
Mohd Ripin Kusnan Datapos (M) Sdn Bhd
Chum Choy HanInternational & Regulatory Affairs
Salamah SamsudinCall Center
Mohd Rizal HamzahGroup Procurement
Dato’ Shahri JikunGroup Property & Corporate Insurance
Nuranisah Mohd AnisCorporate Risk Management
Balqais YusoffCorporate Planning & Strategic Business
71Pos Malaysia Annual Report 2009
Leadership Team
Haji Ithnin TalibSecurity & Investigation
Dato’ Noor Azli OthmanDigicert (M) Sdn Bhd
Aziz ManasInternal Audit
Raja Nur Izah Raja JafaarPSH Express Sdn Bhd
Mohd Ripin Kusnan Datapos (M) Sdn Bhd
Chum Choy HanInternational & Regulatory Affairs
Salamah SamsudinCall Center
Mohd Rizal HamzahGroup Procurement
Dato’ Shahri JikunGroup Property & Corporate Insurance
Nuranisah Mohd AnisCorporate Risk Management
Balqais YusoffCorporate Planning & Strategic Business
POS MALAYSIA ANNUAL REPORT 2009
72 Pos Malaysia Annual Report 2009
73Pos Malaysia Annual Report 2009
OUR COMMITMENTS
Pos Malaysia Annual Report 200974
Corporate Social Responsibility Statement
Corporate Social ResponsibilityPos Malaysia aspires to become a socially responsible
corporate citizen. Although 2009 was a challenging year due
to sluggish economic condition, Pos Malaysia believes in giving
back to the community. Pos Malaysia constantly strives to be
a caring corporate citizen by supporting nation building and
community services.
Balance between commercial objectives and being socially responsiblePos Malaysia is not only seen as a postal operator in Malaysia.
We enable efficient flow of goods and services, information
and funds. We value the trust that the people have in us,
although we have to subsidize the cost of our services.
Our existence benefits more than 15,700 employees, 1,400
vendors and other stakeholders. We endeavor to become a
viable entity and give positive impact to our stakeholders.
Borderless humanitarian contribution2009 had witnessed the struggle of the Palestinians when
their homes were destroyed and basic supplies were being
thwarted by the Israel’s regime. A call for humanitarian act
was answered by Pos Malaysia, in support of the NSTP Gaza
Fund. Donation boxes were placed at selected post offices
to raise fund. The campaign managed to collect RM253,191
for Gaza Fund.
Pos Malaysia, in collaboration with UNICEF had created ‘To
My Friends In Gaza’ project, where thousands of letters,
cards, and drawings were received from young Malaysians,
dedicated especially to the children of Gaza. It was our
responsibility to reach out and convey messages of hopes,
prayers and well-wishes of Malaysian children to the
Palestinian children.
In addition, Pos Malaysia continued the tradition of giving and
sharing to the unfortunates, in particular orphans and old folks
through ‘Buka Puasa’ events and celebrating Hari Raya.
Incessantly Nurturing Excellence in EducationIn 2009, Pos Malaysia continued to support its adopted
schools under the PINTAR Programme. Students from
Sekolah Menengah Kebangsaan Sungai Acheh, Nibong Tebal
and Sekolah Kebangsaan Kuala Perai, Bagan Dalam, Pulau
Pinang were sent to motivational camps to guide them in
their preparations for SPM and UPSR.
Pos Malaysia Annual Report 2009 75
POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia Annual Report 200976
Corporate Governance Statement
Pos Malaysia Berhad (“Pos Malaysia” or “the Company”),
a Government-linked Company (“GLC”), its Board of
Directors (“Board”) and Management remain committed
to upholding and continuously improving good corporate
governance practices throughout the Pos Malaysia Group
of Companies (“Group”) for the protection of and greater
creation of shareholders’ and other stakeholders’ value and for
maintaining integrity, trust and confidence in the Company.
The foundation for good governance lies in having an effective
Board in place. The Board realises that to be effective, the
Board and its members must progress to be continuously
performing rather than just conforming. The Board subscribes
to the belief that improving the effectiveness of the Board to
best practice standards is a continuous journey.
As a GLC in Malaysia, Pos Malaysia has, apart from abiding by
the principles and best practices as set out in the Malaysian
Code on Corporate Governance (“the Code”) and the
Corporate Governance Guide issued by Bursa Malaysia
Berhad, subscribed to most of the guidelines introduced by
the Putrajaya Committee on GLC High Performance (“PCG”)
in enhancing Board Effectiveness. These guidelines as codified
in the Green Book reinforce the recommendations contained
in the Code.
Board Effectiveness Assessment (“BEA”)During the financial year ended 31 December 2009, a set
of findings following the conduct of the Board Effectiveness
Assessment for year 2008 (“2008 BEA”) had been analysed
and discussed. Proposed action plans were thereafter
developed by Management to address gaps that had been
identified to improve the Board’s effectiveness and efficiency.
The Board Nomination and Remuneration Committee
(“BNRC”) is tasked with conducting assessments of the
Board effectiveness and once the action plans have been
completed by Management, they will be tabled to the Board
for endorsement and implementation. At the end of year
2010, a follow-up assessment on the action plans implemented
will be carried out. This is in line with the recommendation
under the Green Book.
Apart from the initiative to enhance the Board’s effectiveness
in the financial year under review, the Board received updates
on a quarterly basis covering the improvement initiatives
undertaken by the Company pursuant to other guidelines
and best practices launched by the PCG under the GLC
Transformation Programme.
The Board is now pleased to report to the shareholders in
greater detail on the manner by which the Group has applied
the principles of the Code and the extent of compliance with
the best practice provisions of the Code.
Pos Malaysia Annual Report 2009 77
POS MALAYSIA ANNUAL REPORT 2009
A. Board of DirectorsPrincipal Responsibilities of the BoardThe Board, which is appointed by the shareholders, is entrusted
with dealing and controlling the Group and overseeing the
business of the Group, which includes optimising long-term
financial returns and shareholders’ wealth creation.
As a fundamental part of discharging the Board’s responsibilities
in order to protect and enhance stakeholders’ value and
financial performance of the Group, the Board of Directors
continuously acts to improve and refine management
practices and systems and ensures that the Group has strong
internal controls and processes in place to implement the
principles and concepts of good governance.
The duties, responsibilities, powers and functions of the
Board are governed by the Articles of Association of the
Company (“Company Articles”), the Companies Act 1965
and Companies (Amendment) Act 2007 (collectively the
“Companies Act”), the Main Market Listing Requirements
of Bursa Malaysia Securities Berhad and other relevant laws,
rules, and regulatory guidelines that are in force. The Board is
also governed by its Pos Malaysia Board Policy Manual, which
assists Board members to better appreciate their roles and
responsibilities. With an appropriate understanding of its role,
the Board is better equipped to meet its responsibilities in
ensuring that the long-term objectives of the Group are met.
Under the Pos Malaysia Board Policy Manual, the Board
directs and oversees the management of the business and
affairs of the Group including the following:-
Ensurei. that the Group’s objectives are clearly established
and that a strategic plan is in place to achieve those
objectives;
Establishii. policies for strengthening the performance
of the Group including ensuring that the Management
is proactively seeking to build the business through
innovation, initiative, technology, new products and the
development of business capital;
Adoptiii. performance measures to monitor implementation
and performance of the objectives, strategies, action
plans, and policies;
Overseeiv. the conduct of the Group’s business to evaluate
whether the business is being properly managed;
Ensurev. that the Group has appropriate business and
enterprise-wide risk management processes, including an
adequate control environment based on internal control
systems, management information systems and systems for
compliance with applicable laws, rules and regulations;
Appointvi. Board Committees to address specific issues,
consider recommendations of the Board Committees
and discuss problems and reservations arising from the
Committees’ deliberations;
POS MALAYSIA ANNUAL REPORT 2009
78 Pos Malaysia Annual Report 2009
Ensure that the statutory accounts of the Group are vii.
fairly stated and conform with the relevant regulations
including acceptable accounting policies;
Ensureviii. that there is in place an appropriate succession
planning mechanism for members of the Board and for
Senior Management positions;
Ensureix. that the Group adheres to high standards of
ethics and corporate behaviour including transparency
in the conduct of business;
Ensurex. that there is in place an appropriate public
relations and communications programme, as well as an
investor relations programme; and
Ensurexi. there is a Schedule of Matters reserved for
collective decision of the Board.
The Schedule of Matters reserved for collective decision
of the Board is enshrined in the Company’s Discretionary
Authority Limits document, which comprises the overall
internal authority limits applicable to the Company and its
principal officers.
Board Balance andComposition of the BoardThe Company Articles stipulate that the Board shall not
comprise less than two (2) nor more than twelve (12)
members. The Board currently consists of twelve (12)
members, comprising a Non-Independent Non-Executive
Chairman, a Group Managing Director/Chief Executive
Officer (“GMD/CEO”), four (4) Non-Independent Non-
Executive Directors and six (6) Independent Non-Executive
Directors. With half of the Board members comprising
Independent Directors, the Company has exceeded the
compliance level set under the Bursa Securities Listing
Requirements, which requires one-third of the Board to be
Independent Directors.
The Board is of the opinion that the current size and
composition of the Board is well balanced and the Board is
able to properly discharge its responsibilities in an effective
manner. The Board members’ varied skills and breadth
of experience are relevant and important for effective
management of the Group’s business. Details of the Board
members’ skills and experience are outlined in the Profile of
Directors contained in this Annual Report.
There is a clear separation of responsibilities between the
Chairman and the GMD/CEO and a balance of power is
maintained in the Company so that no one individual has
unfettered powers of decision.
The Chairman of the Board is responsible for representing
the Board to shareholders. The Chairman is responsible for
ensuring integrity and effectiveness of the governance process
of the Board and will consult the Board promptly over any
matter that gives him cause for concern. The Chairman will act
as facilitator at meetings of the Board to ensure that no Board
member, whether executive or non-executive, dominates
the discussion. The Chairman also ensures that appropriate
discussions take place and that relevant opinions among
Board members are forthcoming. The Chairman further
ensures that discussions result in logical and understandable
outcomes, which will lead to appropriate and considered
decisions by the Board.
Corporate Governance Statement
79Pos Malaysia Annual Report 2009
The GMD/CEO manages the overall business and oversees
the day-to-day operations of the Group and is accountable
to the Board for the overall organisation, management and
staffing of the Group and for its procedures in financial
and operational matters, including conduct and discipline.
The authority limits of the GMD/CEO are enshrined in the
Company’s Discretionary Authority Limits duly approved by
the Board.
The six (6) Independent Non-Executive Directors of the
Company are independent from Management and are able
to exercise independent judgement and provide positive
participation in all the Board’s deliberations. They also play
a pivotal role in the provision of unbiased and independent
views, advice and judgement as well as safeguard the
interests of other parties such as minority shareholders and
other stakeholders. Khazanah Nasional Berhad, the largest
shareholder of the Company has nominated Tunku Dato’
Mahmood Fawzy bin Tunku Muhiyiddin and Encik Haizan
bin Mohd Khir Johari as its nominees on the Board while
Puan Eshah binti Meor Suleiman and YBhg Tan Sri Dato’
Ir Muhammad Radzi bin Haji Mansor are the appointed
representatives of the Minister of Finance (Incorporated).
Datuk Low Seng Kuan is the Company’s Senior Independent
Non-Executive Director to whom concerns may be conveyed
by shareholders and/or members of the public. Datuk Low
has been a Director of the Company since 1 July 1992
and he was re-designated as the Company’s Independent
Director and simultaneously appointed the Company’s
Senior Independent Director with effect from 21 August
2007 pursuant to the restructuring of the Pos Malaysia
Group. Datuk Low is also the Company’s Audit Committee
Chairman. The Senior Independent Non-Executive Director
represents the interest of minority shareholders and the
general public by exercising independent judgement as well
as promoting good governance practices within the Company
and the Board.
POS MALAYSIA ANNUAL REPORT 2009
80 Pos Malaysia Annual Report 2009
Board Meetings andSupply of Information to the BoardDuring the financial year ended 31 December 2009, eight (8) Board meetings were held and the attendance of the Board members
was as follows:-
Directors No. of meetings atended Percentage
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat 7 out of 8 88 %
Dato’ Syed Faisal Albar bin Syed A.R Albar 8 out of 8 100 %
Datuk Abu Huraira bin Abu Yazid (Resigned w.e.f. 1 Aug 2009) 4 out of 4 100 %
Dato’ Ibrahim Mahaludin bin Puteh 8 out of 8 100 %
Datuk Low Seng Kuan 7 out of 8 88 %
Dato’ C. Krishnan 7 out of 8 88 %
Puan Sri Datuk Nazariah binti Mohd Khalid 8 out of 8 100 %
Wee Hoe Soon @ Gooi Hoe Soon 8 out of 8 100 %
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin 7 out of 8 88 %
Abdul Hamid bin Sh Mohamed 8 out of 8 100 %
Eshah binti Meor Suleiman (Appointed w.e.f. 25 February 2009) 6 out of 6 100 %
Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor(Appointed w.e.f. 21 October 2009) 3 out of 3 100 %
Corporate Governance Statement
81Pos Malaysia Annual Report 2009
A schedule for Board Meetings and Board Committee meetings for the whole financial year is prepared in advance and tabled to the Board in the month of January every year for approval of the Board. Generally, the Board is scheduled to meet once a month with additional meetings convened as and when deemed necessary.
For each Board and Board Committee meeting, the meeting agenda together with the relevant papers and supporting documents relating to the agenda items are circulated to Board members and/or Board Committee members at least five (5) days before each meeting while Management strives to improve circulation of Board papers to seven (7) days before each meeting. The Board papers are issued in advance to enable the Directors to obtain fur ther information, where necessary, in order to be properly briefed and informed before the meetings.
All Board decisions are clearly recorded in the minutes, including the rationale for each decision, along with clear actions to be taken by responsible parties. Relevant Board decisions are communicated to Management verbally within one (1) working day of the Board meeting and relevant extracts of the minutes are distributed to Management within three (3) working days after the Board meeting.
Board papers are prepared based on a standard format to ensure consistency in the presentation of facts and to fur ther ensure all necessary information is provided to the Board. Each Board paper for approval contains comprehensive information on the objective of the paper, background information, financial effects of the proposal made, issues
for consideration including issues on risk management, other options for consideration, disclosure of interest of a Director or a major shareholder (if applicable), recommendations from Management and action sought from the Board. During meetings, Management and/or advisors (as and when necessary) make presentations on the papers tabled to the Board to facilitate the Board in its decision-making.
POS MALAYSIA ANNUAL REPORT 2009
82 Pos Malaysia Annual Report 2009
The quality of information received by the Board has a direct
impact on the quality of decisions made by the Board. The
Board has, therefore adopted a rating process for papers
and presentations by Management at each Board meeting
whereby the Board members provide constructive feedback
on the quality of information and analysis received in the
Board papers tabled and presentations made through
the completion of a Board Paper Evaluation Form by the
Board members at the end of each Board Meeting. This
process has helped Management to continuously improve
the quality of Board papers. The Directors have access to
all information within the Group to the extent that the
information required is per tinent to the discharge of their
duties as Directors and is for the benefit of the Group. In
order to ensure the Board is consistently and promptly
updated on the Group’s performance, the Board receives
a Corporate Performance Report from Management on a
periodical basis. Each report contains information on the
Group’s year-to-date performance and updates on action
plans under the Company’s Strategic and Business Plans.
In addition, all Directors have access to the advice and services
of the Company Secretary and may seek independent
professional advice should the need arise. In an effort to
fur ther enhance the services of the Company Secretary
to the Board, the Board members provide their respective
feedback on the Company Secretary’s current service
standard through an Internal Customer Satisfaction Survey
designed specifically for the Company Secretary.
Appointment of Board MembersAs Pos Malaysia is a GLC, the Minister of Finance (Incorporated),
which is a body corporate established under the Minister of
Finance (Incorporated) Act 1957 (Amended 1989) (“Special
Shareholder”), holds one (1) Special Rights Redeemable
Preference Share (“Special Share”) in the Company. Under
the Company Articles, the Special Shareholder has the
right from time to time to appoint up to six (6) persons as
Directors of the Company (“Appointed Director”) including
appointment of the Chairman of the Board and the Group
Managing Director/Chief Executive Officer.
During the financial year under review, Tan Sri Dato’ Ir
Muhammad Radzi bin Haji Mansor was appointed to the
Board as a Non-Independent Non-Executive Director of the
Company effective 21 October 2009.
On 23 February 2010, Encik Haizan bin Mohd Khir Johari
was appointed to the Board as a Non-Independent Non-
Executive Director of the Company.
Notwithstanding the right of the Special Shareholder to
appoint Appointed Directors, there is a formal and transparent
procedure in place for the appointment of Board members.
The BNRC is responsible for the deliberation and proposal
of suitable candidates, taking into account the required mix of
skills, calibre, experience and other qualities for appointment
of any proposed director including the Appointed Directors
on the Board before recommendation is made to the
Board for approval. The Committee is also responsible for
Corporate Governance Statement
83Pos Malaysia Annual Report 2009
reviewing the composition and effectiveness of the Board
and the contributions of each individual Director including
the Appointed Directors, on an annual basis.
The BNRC is also tasked with reviewing the performance
evaluation of the GMD/CEO and Chief Level Officers
of the Company which comprise the Chief Operating
Officers, Group Chief Strategy and Planning and the Chief
Financial Officer. The BNRC also ensures that the level and
composition of remuneration are structured so as to link
rewards with corporate and individual performance.
Re-election of DirectorsThe Company Articles require all Directors of the Company
to retire by rotation at least once in every three (3) years but
are eligible for re-election at the Company’s Annual General
Meeting (“AGM”).
As such, in accordance with the Company Articles, all
Directors, including the Appointed Directors retire from
office at least once in each three (3) years and at least one-
third of the number of Directors is subject to retirement by
rotation at each AGM but shall be eligible to offer themselves
for re-election.
Details of the Directors seeking re-election at the forthcoming
AGM such as their age, qualification, working experience,
other directorships of public companies and position in the
Company are disclosed in the Profile of Directors contained
in this Annual Report.
Directors’ TrainingThe Board recognizes the importance of training as a continuous education process for the Directors in order to ensure that the Directors stay abreast with the latest developments and changes in laws and regulations, business environment and challenges and to equip them with the necessary knowledge and know how to enable the Directors to fulfill their responsibilities and effectively discharge their duties.
As an integral element of the process of recruiting new Board members, new Directors will undergo appropriate orientation in respect of the business of the Group. All the Directors have attended the Mandatory Accreditation Programme.
During the financial year under review, the Directors attended formal training programmes or international study tours. The training programmes attended included International Islamic Capital Market Forum, The Non-Executive Directors Development Series, Bursa Malaysia Evening Talks on Corporate Governance, Finance for Directors and Executive Management, and Integrity Conference 2009-Integrity as Development. In addition, some of the Directors visited postal organisations in Singapore, New Zealand and the United States of America to gain more knowledge about the processes and operations of these foreign postal organizations.
POS MALAYSIA ANNUAL REPORT 2009
84 Pos Malaysia Annual Report 2009
Board CommitteesIn accordance with the Company Articles, the Board delegates certain responsibilities to Board Committees with specified terms of
reference and responsibilities. In the financial year under review, there were three (3) Board Committees: the Audit Committee, the
BNRC and the Tender Board Committee.
(1) Audit Committee
The Audit Committee comprises five (5) Non-Executive Directors, of which, four (4) members including the Chairman of the Committee
are Independent Directors. The members are as follows:-
(a) Datuk Low Seng Kuan
(Chairman/Senior Independent Non-Executive Director)
(b) Mr. Wee Hoe Soon @ Gooi Hoe Soon
(Independent Non-Executive Director)
(c) Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
(Non-Independent Non-Executive Director)
(d) Encik Abdul Hamid bin Sh Mohamed
(Independent Non-Executive Director)
(e) Puan Sri Datuk Nazariah binti Mohd Khalid
(Independant Non-Executive Director) (Appointed w.e.f. 12 March 2010)
All the Audit Committee members are financially literate and/
or have strong management experience. Datuk Low Seng
Kuan, Chairman of the Committee is a Chartered Accountant
with the Malaysian Institute of Accountants (MIA) and he was
the Managing Director of Malaysian Sheet Glass Sdn Bhd.
Mr. Wee Hoe Soon @ Gooi Hoe Soon is a member of the
Malaysian Institute of Certified Public Accountants (MICPA)
and the Malaysian Institute of Accountants (MIA) and has
vast experience in the fields of accounting and corporate
finance. Encik Abdul Hamid bin Sh Mohamed is a Fellow of the
Association of Chartered Certified Accountants (ACCA) and
is currently Executive Director of Symphony House Berhad, a
company listed on the Main Market of Bursa Malaysia Securities
Berhad, while Tunku Dato’ Mahmood Fawzy bin Tunku
Muhiyiddin has vast experience in investments and management
and is currently Executive Director of Investments, Khazanah
Nasional Berhad. On the other hand, Puan Sri Datuk Nazariah
binti Mohd Khalid had vast experience in the Malaysian Civil
Service and had served in various capacities prior to her last
post as the Director General of the Malaysian Administrative
Modernisation and Management Planning Unit (MAMPU) in
the Prime Minister’s Department.
Corporate Governance Statement
85Pos Malaysia Annual Report 2009
The principal functions and duties of the Audit Committee are as follows:-
Review• the quarterly results and annual financial statements of the Company and Group prior to the approval of the
Board.
Assess• the quality and effectiveness of the systems of internal control and the efficiency of the Group’s operations, particularly
those relating to areas of significant risk.
Assess• the internal process for determining and managing key risks other than those that are dealt with by other specific
Board committees.
Review• the evaluation by the internal and external auditors of the Group’s system of internal control and thereafter report
the evaluation to the Board.
Further details on the Audit Committee including its activities during the year under review are contained in the Audit Committee
Report of this Annual Report.
(2) Board Nomination and Remuneration Committee
The BNRC comprises six (6) Non-Executive Directors, of which, four (4) members including the Chairperson of the Committee
are Independent Directors. The members are as follows:-
(a) Puan Sri Datuk Nazariah binti Mohd Khalid
(Chairperson/ Independent Non-Executive Director)
(d) Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
(Non-Independent Non-Executive Director)
(b) Datuk Low Seng Kuan
(Senior Independent Non-Executive Director)
(e) Dato’ C. Krishnan a/l Chinapan
(Independent Non-Executive Director)
(c) Dato’ Ibrahim Mahaludin bin Puteh
(Independent Non-Executive Director)
(f) Puan Eshah binti Meor Suleiman
(Non-Independent Non-Executive Director)
POS MALAYSIA ANNUAL REPORT 2009
86 Pos Malaysia Annual Report 2009
The principal functions and duties of the BNRC are as
follows:-
Propose• to the Board suitable candidates for appointment
as Directors including membership and chairmanship of
Board Committees.
Review• on an annual basis the Board structure, size and
composition.
Propose• Succession Planning for the Executive Directors
and Chief Level Officers of the Company.
Assess• on an annual basis the effectiveness of the Board
as a whole, the Board Committees and the contribution
of each individual Director.
Recommend• to the Board the remuneration framework
for the Executive Directors and to fur ther recommend
remuneration package and terms of employment of
the Executive Directors and Chief Level Officers of the
Company.
Recommend to the Board performance contracts and •
Key Performance Indicators (“KPI”) for the Executive
Directors and Chief Level Officers.
(3) Tender Board Committee
The Tender Board Committee comprises four (4) Non
Executive Directors, of which three (3) members are
Independent Directors. The members are as follows:-
(a) Puan Eshah binti Meor Suleiman
(Chairperson/Non-Independent Non-Executive Director)
(b) Dato’ Ibrahim Mahaludin bin Puteh
(Independent Non-Executive Director)
(c) Puan Sri Datuk Nazariah binti Mohd Khalid
(Independent Non-Executive Director)
(d) Dato’ C. Krishnan a/l Chinapan
(Independent Non-Executive Director)
The principal functions and duties of the Tender Board
Committee are as follows:-
Examine• and where appropriate, approve awards of
contracts for supply of goods, works or services within
the limits authorised in the DAL.
Review• selection for the appointment of successful
tenderers for both close and open tender applications.
Review and approve the Company’s procurement •
policies and procedures including general evaluation
criteria, anti-corruption policy and codes of conduct.
Oversee and monitor the overall implementation of the •
Red Book issued by the Putrajaya Committee on GLC
High Performance, the Company’s Procurement Policy
Guidelines and review the efficiency and effectiveness of
the Company’s procurement processes.
Corporate Governance Statement
87Pos Malaysia Annual Report 2009
B. Directors’ RemunerationThe Board through the BNRC ensures that the level of
remuneration of the Executive Director(s) is sufficient
to attract and retain the Executive Director(s) to manage
the Group successfully. The level and make up of the
remuneration are structured so as to link rewards with
corporate and individual performance. The BNRC determines
the performance contracts and targets and structures the
rewards for the Executive Director(s)’ performance against
these targets. The performance of the Executive Director(s)
and key senior management positions are measured via key
performance indicators that are structured early in the year
to measure the performance of key personnel.
Meanwhile, the Board as a whole determines the fees
payable to Non-Executive Directors and any increase in
Directors’ fees shall be subject to shareholders’ approval at
the Company’s AGM. The Non-Executive Directors are paid
meeting allowances for every Board Meeting that they attend
and the Company also reimburses reasonable expenses
incurred by the Directors in the course of their performance
of duties as Directors.
Details of the remuneration of the Directors of Pos Malaysia for the financial year under review are as follows:-
Category
(Director)
Fees
RM’000
Salaries & Bonus
RM’000
Allowance
RM’000
Total
RM’000
Executive - 1,041 311 1,352
Non-Executive 409 - 445 854
Total 409 1,041 756 2,206
POS MALAYSIA ANNUAL REPORT 2009
88 Pos Malaysia Annual Report 2009
The remuneration band of the Directors of Pos Malaysia for the financial year under review are shown below:-
Range of RemunerationNumber of Directors
Executive Non-Executive
Below RM50,000 - 3
RM50,001 – RM100,000 - 2
RM100,001 – RM150,000 - 5
RM150,001 – RM200,000 - -
RM200,001 – RM250,000 - -
RM250,001 – RM300,000 - -
RM300,001 – RM350,000 - -
RM350,001 – RM400,000 - -
RM400,001 – RM450,000 - -
RM450,001 – RM500,000 - -
RM500,001 – RM550,000 - -
RM550,001 – RM600,000 1* -
RM600,001 – RM650,000 - -
RM650,001 – RM700,000 - -
RM700,001 – RM750,000 - -
RM750,001 – RM800,000 1
* This was the remuneration band of the former Executive Director/Group Chief Operating Officer of the Pos Malaysia Group
until his resignation w.e.f 1 August 2009
Note: The remuneration of Executive Directors are inclusive of the Company’s contribution to provident fund, EPF, salaries, bonus,
gratuity and allowances.
Corporate Governance Statement
89Pos Malaysia Annual Report 2009
C. Relationship And Communication With Investors And ShareholdersInvestor Relations and Shareholder Communication
The Board acknowledges the importance of communication
with investors and other stakeholders. The Group has
been communicating with stakeholders and investors via
prompt announcements through quarterly financial reports,
distribution of annual reports, quarterly announcements,
relevant circulars and press releases. In addition, the Company
conducts briefings and dialogues with financial analysts via
Investors’ Briefings on a quarterly basis to keep potential
investors informed of the activities and developments within
the Group.
The Company’s website www.pos.com.my also provides an
avenue for keeping the general public updated on the activities
of the Company. The website is a source of information on
the Group’s financial results, services and products, annual
reports, press releases, events, newsletters, media highlights,
and other relevant information.
In the financial year under review, the Board of Directors
of Utilico Emerging Markets Limited, a former substantial
shareholder of Pos Malaysia had visited the Company. The
visit included a site visit to some of the facilities of Pos
Malaysia as well as a dialogue with the Board of Directors
and Senior Management of the Company on the challenges
faced by Pos Malaysia.
General MeetingsThe Company’s general meetings serve as the principal forum
for communicating with the shareholders of the Company.
At general meetings, shareholders have direct access to the
Directors and are given ample opportunity and time to raise
questions or seek fur ther information from the Directors
regarding the Group’s activities, financial performance and
prospects as well as raise any issues of concern regarding
the Group. Besides the Directors, the Senior Management
and the external auditors of the Company are present at
the meetings to assist in providing the necessary responses
to queries from the shareholders. Prior to the tabling of
proposed resolutions at an AGM, the shareholders are
presented with a summary of the Group’s performance on
the financial year under review by the GMD/CEO.
“The Board acknowledges the importance of communication with investors and other stakeholders.”
POS MALAYSIA ANNUAL REPORT 2009
90 Pos Malaysia Annual Report 2009
D. Accountability And AuditFinancial ReportingThe Company’s financial statements are drawn up in
accordance with the provisions of the Companies Act
1965, and applicable approved accounting standards for
entities other than private entities issued by the Malaysian
Accounting Standards Board. In presenting the annual
financial statements and quar terly announcements of results
to shareholders, the Board aims to present a balanced
and understandable assessment of the Group’s position
and prospects. In this regard, the Board also ensures that
the Group uses acceptable accounting policies for its
financial statements, consistently applied and suppor ted by
reasonable and prudent judgement and estimates.
The Audit Committee assists the Board by first reviewing the
financial statements to ensure completeness, accuracy and
validity prior to adoption of the statements by the Board and
subsequent release to Bursa Malaysia Securities Berhad.
The Board also approves the Company’s Annual Budget
and Business Plans and carries out periodic review on the
progress made by the business units.
The Directors’ Responsibility Statement in respect of the
Audited Financial Statement as required under Paragraph
15.26(a) of the Main Market Listing Requirements is contained
in this Annual Report.
Internal ControlThe Board has an overall responsibility for maintaining a
sound system of internal control to provide reasonable
assurance of the effectiveness of the Group’s business
operations and risk management. The Group’s Statement of
Internal Control is detailed in this Annual Repor t.
CompliancePos Malaysia is licensed under the Postal Services Act 1991
to carry out postal services in Malaysia. As such, Pos Malaysia
is subject to the provisions of the Postal Services Act 1991,
terms and conditions set out in the license granted under
the Postal Services Act 1991 and all rules and regulations on
postal services set out under the Postal Services Act 1991.
Pos Malaysia is also subject to the relevant Universal Postal
Union Conventions and Regulations.
The Company Secretary assists the Board in ensuring
compliance by the Company and the Board of Directors with
the Companies Act, the Main Market Listing Requirements
of Bursa Malaysia Securities Berhad and other securities
laws, rules and regulations. The Board is apprised of the
latest amendments and their application to the Company
and/or the Board. As and when necessary, the Company
also seeks clarification through professional opinions on the
extent of application of cer tain obligations and/or duties
enshrined in the said laws, rules and regulations especially
when it concerns duties of directors.
The Company’s Internal Audit function assists the Board and
Management in ensuring compliance by the Company with
Corporate Governance Statement
91Pos Malaysia Annual Report 2009
other relevant laws, rules and regulations applicable to the
operations of the Company including compliance with the
relevant laws, rules and regulations governing the postal
business and the Company’s internal policies and procedures.
The Internal Audit function conducts regular audit checks on
the Strategic Business Units and other support departments
and divisions on a periodical basis and tables its audit reports
to the Audit Committee for deliberation.
The Company also has an International and Regulatory
Affairs Depar tment which serves as a platform for the
Company to engage with the Malaysian Communication
and Multimedia Commission, which is the regulator of
postal services in Malaysia and other relevant authorities
and/or government bodies to establish and develop the
postal regulatory framework for Malaysia.
Relationship with AuditorsThe Company, through the Audit Committee, has an
appropriate and transparent relationship with the external
auditors. In the course of audit of the Group’s operations, the
external auditors highlight to the Audit Committee and the
Board matters that require the Board’s attention. The external
auditors also report to the Audit Committee on their findings
pertaining to their annual audit.
Further, the external auditors meet the Audit Committee
members without the presence of Management or other
employees pursuant to Paragraph 15.17 of the Main Market
Listing Requirements of Bursa Malaysia Securities Berhad.
During the financial year under review, the external auditors
had two meetings with the Audit Committee members without
the presence of Management. Thereafter, the Audit Committee
shares and discusses with Management all concerns raised by
the external auditors (if any). Thereafter, the necessary action
plans will be formulated and implemented by Management.
Pursuant to the requirement under Paragraph 15.25 of the
Main Market Listing Requirements of Bursa Malaysia Securities
Berhad, the Board is pleased to report that the Company has
applied the principles set out in Part 1 of the Code and that the
Board continues to adopt and comply with the best practices in
corporate governance set out in Part 2 of the Code.
InitiativesThe initiatives that were introduced in year 2008 namely the
Whistle Blowing Policy and the Integrity Pact which were
elaborated in the 2008 Corporate Governance Statement
are currently fully operationalised within the Group.
In addition, in view of the intense challenges faced globally
where five major forces are changing the future of the
postal industry such as changing customer needs, eroding
mail volume, growing competition, rising cost and regulatory
changes, Management had, in August 2009, presented to
the Board and obtained the Board’s approval for the Pos
Malaysia Transformation Masterplan which contains 39
initiatives to address the key issues.
The 3-year transformation plan is anchored on 5 pillars
namely focus on customer needs, operational excellence,
concentrate on core business, unleash talent and capabilities
as well as strengthen the Company’s image.
(This Statement is made in accordance with a resolution of the Board of Directors dated 31 March 2010)
Pos Malaysia Annual Report 200992
Statement of Internal Control
IntroductionTHE BOARD OF DIRECTORS (“the Board”) as guided by
the Bursa Malaysia Securities Berhad’s Statement of Internal
Control – Guidance for Directors of Public Listed Companies
is pleased to provide the following Director’s Statement of
Internal Control which outlines the nature and scope of
internal control of the Group during the period under review.
ResponsibilityThe Board is responsible for ensuring that a sound system
of internal control to safeguard shareholder’s interest and
Company’s assets is maintained. The Board affirms its overall
responsibility for the Group’s system of internal control
which includes the establishment of an appropriate control
environment and framework as well as reviewing its adequacy
and integrity.
As there are limitations that are inherent in any system of
internal control, this system is designed to manage rather
than eliminate risks that may hinder the achievement of the
Group’s business objectives. Accordingly, it can only provide
reasonable but not absolute assurance against material
misstatement or loss. The system of internal control includes
strategic, financial, operational, compliance controls and risk
management procedures.
Risk Management FrameworkPolicy
The Board subscribes to the fact that an effective risk
management practice is a critical component of a sound
system of internal control. In view of this, there is a formal
process to identify, evaluate and manage significant risks
faced by the Group that may impede the achievement of the
Group’s objectives during the period under review.
The Board has a stewardship responsibility to understand
these risks, communicating the requirements of this policy
and to guide the organisation in dealing with these risks.
The policy of the Board is:
To• manage risks proactively;
To• manage risks pragmatically, to acceptable levels given
the particular circumstances of each situation;
To• require that all papers that are put to the Board by
Management relating to strategy, key project approvals,
significant action or investment must include a risk
assessment summary;
To• manage risk routinely and in an integrated and
transparent way in accordance with good governance
practices; and
T• o require that an effective and formalised Enterprise
Risk Management Policy and Procedure Manual (“ERM”)
framework is established and maintained by the Group.
Pos Malaysia Annual Report 2009 93
POS MALAYSIA ANNUAL REPORT 2009
Reporting StructureThe Risk Management Committee (“RMC”) of the Group is chaired by the Group Managing Director / Chief Executive Officer
(“CEO”) and during the period under review, the members are as follows:
Chairman: Dato’ Syed Faisal Albar bin Syed A.R. Albar-Group Managing Director/CEO
Members:
Jezilee M. Ramli• Group Chief, Strategy & Planning (Appointed w.e.f. 03.02.09)
Dato’ Mohd Derus bin Harun• Chief Operating Officer, PosLogistik/ Transport Management
Dato’ Mearia Hamzah• Chief Operating Officer, PosNiaga
Haji Ahmad Nadzarudin Abdul Razak• Chief Operating Officer, PosLaju
Bahaman bin Kamaruzzaman• Covering Chief Operating Officer, PosMel/ Group Head, Transformation Management Office
Mohd Lutfi bin Mat Lazim• Chief Financial Officer
Mohd Rosdeen bin Hassan• Chief Information Officer
Datuk Abu Huraira bin Abu Yazid• Executive Director (resigned w.e.f. 01.08.09)
Dato’ Mohamed Hazlan bin Mohamed Hussain• Chief Operating Officer, PosMel (resigned w.e.f. 31.03.09)
Dr. R. Hanafi bin Abdullah• Group Head, Human Resource and Administration (resigned w.e.f. 05.01.10)
The RMC’s principal roles and responsibilities, which are stipulated in the ERM policy, are as follows:
Monitor policy implementation and the continuous development of the risk management in the organisation;•
Formulate policy, business rules, processes and structures to meet policy implementation needs;•
Implement the processes and resource the structures; •
Agree with risk parameters and controls;•
Initiate and conduct business within agreed risk constraints and business rules; •
Ensure that periodical risk reports are submitted accurately and in a timely manner to the Audit Committee and Board; and•
Articulate and challenges the key risks, controls and elements of better practice and also offers support and advice.•
POS MALAYSIA ANNUAL REPORT 2009
94 Pos Malaysia Annual Report 2009
The Corporate Risk Management Depar tment (“CRMD”)
will act as a suppor t for the RMC in monitoring, analysing
and repor ting of the risks identified enterprise-wide and
as the facilitator in the risk assessment process. CRMD will
continuously evaluate the risk policy and procedures, and
initiate improvements by maintaining awareness of trends
and developments in risk management that may have
significant impact to the organisation.
Risk owners and co-owners have been identified to
ensure that the risk registers and risk profiles are updated
accordingly. The risk registers and risk profiles of each
SBU’s, depar tments and the main subsidiary companies are
updated quar terly and the consolidated repor ts are tabled
to the RMC and the Audit Committee.
The Internal Audit Department is involved in validating the
results of the ERM processes. The Internal Audit function
examines the risk management systems for its effectiveness.
The Board and the Management continuously review and
enhance the ERM framework to ensure that ERM practices are
aligned with the latest ERM development and best practices.
Other Key Elements of Internal ControlThe other key elements of the Group’s internal control
systems are described below:
The• roles and responsibilities of the Board of Directors,
Risk Management Committee, Business and Support
Units and State offices in respect of Risk Management
are defined in the Risk Management Policy.
The• lines of responsibility and frequency of reporting of
risks are also defined in the Risk Management Policy.
Operating• policies and procedures, which incorporate
regulatory and internal requirements, are prescribed in
Operating Procedures and Circulars. The documents are
updated as and when necessary to meet the continually
changing operational needs.
The• Board meets at least quarterly to review the
Group’s operational and financial performance against
approved budget, approve quarterly report to Bursa
Malaysia Securities Berhad and deliberate on issues that
require the Board’s approval. In addition, the Board is
also updated on the changes in the business environment
that may adversely affect business performance and
relevant actions taken.
The• Audit Committee, together with the Internal
Audit Department provides an assessment on the
adequacy, efficiency and effectiveness of the Group’s
internal control system. The Internal Audit Department
recommends improvements where necessary.
Statement of Internal Control
95Pos Malaysia Annual Report 2009
The monitoring, review and reporting arrangements in place give reasonable assurance that the structure of controls and its
operations are appropriate to the Group’s operations and that risks are at an acceptable level throughout the Group. However, the
arrangements do not eliminate the possibility of human error or deliberate circumvention of control procedures by employees.
The Board believes that the development of the system of internal control is an ongoing process and has taken steps throughout
the year to improve its internal control system and will continue to do so.
Weakness in Internal Control that Result in Material LossesTo the best of the Board’s knowledge, there were no material losses incurred during the period under review as a result
of weaknesses in internal control. Management continues to take measures to improve and strengthen the internal control
environment.
(This Statement is made in accordance with the resolution of the Board of Directors dated 31st March 2010)
Pos Malaysia Annual Report 200996
Directors’ Responsibility Statement
Pursuant to Paragraph 15.26(a) of the Main Market Listing
Requirements of Bursa Malaysia Securities Berhad, the
Board of Directors is required to include a statement in the
Company’s Annual Report explaining its responsibility for
preparing the annual audited financial statements.
In preparing the financial statements of the Company and the
Group for the financial year ended 31 December 2009, the
Directors are satisfied that the Company and the Group have
used appropriate accounting policies, consistently applied
and supported by reasonable and prudent judgements
and estimates. The Directors are also satisfied that all
applicable approved accounting standards for entities other
than private entities issued by the Malaysian Accounting
Standards Board and the provisions of the Companies Act,
1965 have been complied.
The Directors are responsible for ensuring that the Company
and companies within the Group keep accounting records
which disclose with reasonable accuracy the financial position
of the Company and of the Group. In addition, the Directors
are responsible to take such steps as are reasonably open to
them to safeguard the assets of the Group and to prevent
and detect fraud and other irregularities.
(This Statement is made in accordance with a resolution of
the Board of Directors dated 31 March 2010.)
“The Directors are responsible to take such steps as are reasonably open to them
to safeguard the assets of the Group.”
Pos Malaysia Annual Report 2009 97
POS MALAYSIA ANNUAL REPORT 2009
“The Directors are satisfied that the Company and the Group have used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements
and estimates.”
Pos Malaysia Annual Report 200998
Additional Compliance Information
Utilisation of Proceeds1.
During the financial year ended 31 December 2009,
there were no proceeds raised by the Company from
any corporate proposals.
Share buy-back 2.
During the financial year under review, the Company
has not exercised any share buy-back permitted by
Section 67A of the Companies Act, 1965.
Options, Warrants or Convertible Securities3.
During the financial year, the Company did not issue or
exercise any ESOS, warrants or conver tible securities.
American Depository Receipt (ADR) /Global 4.
Depository Receipt (GDR)
During the financial year ended 31 December 2009,
the Company did not sponsor any ADR and GDR.
Sanctions and/or Penalties5.
During the financial year under review, there were no
sanctions and/or penalties imposed on the Company
and its subsidiaries, directors or management by the
relevant regulatory bodies.
Variation in Results6.
There is no variance in the Company’s audited financial
results for the financial year ended 31 December 2009
from the unaudited results as previously announced.
The Company has not released or announced any
estimated profit, financial forecast and projection in the
financial year ended 31 December 2009.
Profit Guarantee7.
During the financial year ended 31 December 2009,
the Company did not give any profit guarantee.
Material Contracts8.
There were no material contracts entered into by the
Company or its subsidiaries involving the directors and
substantial shareholders, either still subsisting at the end of
the financial year ended 31 December 2009, or entered
into since the end of the previous financial year.
Revaluation Policy 9.
During the financial year ended 31 December 2009,
the Company did not have any revaluation policy on
landed proper ties.
Pos Malaysia Annual Report 2009 99
POS MALAYSIA ANNUAL REPORT 2009
Non- Audit Fees10.
The amount of non-audit fees paid and payable to
external auditors by the Group for the financial year
ended 31 December 2009 is RM60,120 which includes
the review on FRS 8, Statement of internal control and
advisory on corporatisation of PosLaju.
Pos Malaysia Annual Report 2009100
The Board of Directors of Pos Malaysia is pleased to present the report on the Audit Committee of the Board for the financial
year ended 31st December 2009.
Members and MeetingsThe Audit Committee of Pos Malaysia had convened seven (7) meetings during the financial year under review. The details of the
Pos Malaysia Audit Committee members and the attendance of their meetings are as follows:
Members
(a) Datuk Low Seng Kuan Senior Independent Non-Executive Director
Chairman
(b) Mr. Wee Hoe Soon @ Gooi Hoe SoonIndependent Non-Executive Director
Member
(c) YM Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin Non-Independent Non-Executive Director
Member
(d) Abdul Hamid bin Sh Mohamed Independent Non-Executive Director
Member
(e) Puan Sri Datuk Nazariah binti Mohd Khalid*Independent Non-Executive Director
Member
Attendance of Meetings
Members Total
(a) Datuk Low Seng Kuan 6 / 7
(b) Wee Hoe Soon @ Gooi Hoe Soon 7 / 7
(c) YM Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin 7 / 7
(d) Abdul Hamid bin Sh Mohamed 7 / 7
(e) Puan Sri Datuk Nazariah binti Mohd Khalid* N/A
* Puan Sri Datuk Nazariah binti Mohd Khalid was appointed to the Audit Committee on 12 March 2010
Audit Committee Report
Pos Malaysia Annual Report 2009 101
POS MALAYSIA ANNUAL REPORT 2009
Terms of ReferenceThe Terms of Reference of the Audit Committee are in line with the Listing Requirements of Bursa Malaysia Securities Berhad and
the Malaysian Code on Corporate Governance. The Terms of Reference of the Audit Committee are as follows:-
Composition of CommitteeThe Audit Committee shall be appointed by the Board of
Directors upon recommendation of the Board Nomination
and Remuneration Committee which meets the following
requirements:-
• The Audit Committee shall consist of not less than three (3)
members;
• All the members of the Audit Committee must be non-
executive directors, with a majority of them being independent
directors as defined under the Listing Requirements of Bursa
Malaysia Securities Berhad (‘Listing Requirements’);
• At least one (1) member of the Audit Committee must meet
the criteria set by the Listing Requirements as follows:-
M• ust be a member of the Malaysian Institute of Accountants; or
If • he/she is not a member of the Malaysian Institute of Accountants, he must have at least three (3) years working experience; and
He/sh• e must have passed the examinations specified in Part I of the 1st Schedule of the Accountants Act 1967; or he/she must be a member of one (1) of the associations of accountants specified in Part II of the 1st Schedule of the Accountants Act 1967; or
Fulfi• ls such other requirements as prescribed or approved by the Bursa Malaysia Securities Berhad.
• The members of the Audit Committee shall elect a Chairman
from among themselves who shall be an Independent
Director;
• No Alternate Director should be appointed as a member of
the Audit Committee;
• In the event of any vacancy in the Audit Committee resulting
in the non-compliance of the Listing Requirements pertaining
to composition of the Audit Committee, the Board of
Directors shall within three (3) months of that event fill the
vacancy;
• The Audit Committee members shall collectively:-
(a) Have knowledge of the industries in which the Group
operates; and
(b) Have the ability to understand key business and financial
risks as well as related controls and control processes.
• All members of the Audit Committee shall also be
financially literate i.e. have the ability to read and understand
fundamental financial statements, including a Company’s
balance sheet, income statement, statement of cash flow and
key performance indicators.
POS MALAYSIA ANNUAL REPORT 2009
102 Pos Malaysia Annual Report 2009
Audit Committee MeetingsThe Audit Committee Meetings shall be held not less than
four (4) times a year. In addition to the members of the
Audit Committee, the meeting shall be attended by the
Managing Director/Group Chief Executive Officer, Chief
Financial Officer and Chief Internal Auditor. Other members
of the Board, senior management and external auditors’
representatives may attend the meetings upon invitation
of the Audit Committee. The auditors, both internal and
external, may request a meeting if they deem necessary.
The quorum for a meeting of the Audit Committee shall
comprise a majority of Independent Directors from among
its members. In the absence of the Chairman, the members
present shall elect a chairman for the meeting from among
the member present. Minutes of each meeting shall be kept
and distributed to each member of the Audit Committee
and of the Board. The Audit Committee shall report on each
meeting to the Board. The Secretary to the Audit Committee
shall be the Company Secretary or any other person as the
Committee may decide.
Rights and AuthorityThe duties of the Audit Committee shall be in accordance
with the same procedures adopted by the Board:-
• Have authority to investigate any activity within its Terms of Reference;
• Have the resources which are required to perform its duties;
• Have full and unrestricted access to any employee and
information pertaining to the Group. All documents of the
Group shall be made accessible to the Audit Committee
and all employees are directed to co-operate with the
request made by the Audit Committee;
• Have direct communication channels with the external
auditors and person(s) carrying out the internal audit
function or activity for the Group; and
• Be able to engage independent professional advisers or
other advisers and to secure attendance of other third
parties with relevant experience and expertise if it
considers necessary.
Notwithstanding anything to the contrary, the Audit
Committee does not have executive powers and shall report
to the Board of Directors on matters considered and its
recommendation thereon, relating to the Group and the
Company.
Review of the Audit CommitteeThe performance of the Audit Committee and each of the
members shall be reviewed by the Board of Directors at
least once every three (3) years to determine whether the
Committee and its members have carried out their duties in
accordance with their Terms of Reference in the Corporate
Governance Statement.
Audit Committee ReportAudit Committee Report
103Pos Malaysia Annual Report 2009
Responsibilities and DutiesThe responsibilities and duties of the Audit Committee are
as follows:
a. Risk Management
To review the adequacy and effectiveness of Enterprise Risk
Management (“ERM”), reporting structures, risk profiles and
governance processes.
b. Internal Audit
• To approve the appointment, replacement and dismissal of
the Chief Internal Auditor and his deputy;
• To review the adequacy of the scope, functions, competency
and resources of Internal Audit Department and that it
has the necessary authority to carry out its work;
• To review and approve the Annual Risk Based Audit Plan,
Key Performance Indicators and subsequently appraise
the performance of the Internal Audit Department;
• To monitor the effectiveness in the implementation of the
Whistleblowing Policy and procedure and other related
governance processes;
• To review the internal audit reports on significant/ major
audit findings and management’s responses to ensure that
appropriate and adequate remedial actions are taken by
the management; and
• To review the systems of internal controls with the
auditors.
c. External Audit
• To review the external auditors’ audit plan, scope of their
audits and their management letters and ensure appropriate
and adequate remedial actions are taken by management
on significant lapses in controls and procedures that are
identified;
• To assess the performance of the external auditors and
make recommendations to the Board of Directors on
their appointment and removal;
• To recommend the nomination of external auditors, their
audit fees and resignation or dismissal of external auditors
and thereafter report the same to the Board;
• To review the quarterly and annual financial statements of
the Group and the Company focusing on the matters set
out below, and thereafter submits the same to the Board:-
Any• changes in or implementation of major accounting
policies and practices;
Major judgmental areas, significant and unusual events;•
Significant adjustments arising from the audit;•
Going concern assumption; and•
Compliance with Accounting Standards and regulatory •
requirements.
• To discuss problems and reservations arising from the
interim and final audits and any matter the external
auditors may wish to discuss.
d. Other Matters
• To review related party transactions entered into by
the Group and the Company and to ensure that such
transactions are undertaken on the Group’s normal
commercial terms and that the internal control procedures
with regards to such transactions are sufficient.
• Any other functions as may agreed to by the Committee
and the Board.
POS MALAYSIA ANNUAL REPORT 2009
104 Pos Malaysia Annual Report 2009
• Where the Audit Committee is of the view that a matter
reported to the Board of Directors has not been
satisfactorily resolved resulting in a breach of the listing
requirements of Bursa Malaysia Securities Berhad, the
Committee has the responsibility to properly report such
matter to Bursa Malaysia Securities Berhad.
Summary of ActivitiesDuring the year, the Audit Committee carried out the
following activities:-
Financial ReportingRevieweda. quarterly and annual financial reports of the
Group and the company prior to submission to the Board
of Directors for approval. The review was to ensure that the
financial reporting and disclosure are in compliance with:
Provisions of the Companies Act 1965;•
Listing requirements of Bursa Malaysia Securities Berhad;•
Applicable approved accounting standards in Malaysia; and•
Other legal and regulatory requirements. •
In the review of the annual audited financial statements,
the Audit Committee discussed with Management and the
external auditors, the accounting principles and standards
that were applied and their judgement of the items that may
affect the financial statements.
Internal AuditRevieweda. the risk-based annual audit plan to ensure
adequacy of the scope and coverage of major risk areas
of the Group;
Reviewedb. the Key Performance Indicators of the Internal
Audit Department and appraised the department’s
performance and competency level;
Reviewedc. the effectiveness of the audit process, resource
requirements for the year ;
Reviewedd. the internal audit reports which were tabled
during the year, the audit recommendations made and
management’s responses to these recommendations where
appropriate, the committee has directed management
to rectify and improve internal controls and Standard
Operating Procedures based on the internal auditor’s
recommendations and suggestions for improvement;
Monitorede. the corrective actions on the outstanding audit
issues to ensure that all the key risks and control lapses
had been addressed; and
Monitoredf. internal audit activities and the staffing
requirements, skills and the core competency of the
Internal Auditors.
Audit Committee Report
105Pos Malaysia Annual Report 2009
External AuditorsRevieweda. the external auditors:-
their • audit plan, audit strategy and scope of work for the year ;
the• results of annual audit, their audit reports and management letter together with management’s
response to the findings of the external auditors;
Evaluatedb. the performance and the effectiveness of the external auditors and made recommendations to the Board of Directors on their appointment and remuneration.
Related Party TransactionsReview related party transactions entered into by the Group
and the company and the disclosure of such transactions as
per the regulatory requirements.
Internal Audit FunctionThe Audit Committee is assisted by the Internal Audit
Department to effectively discharge its duties and
responsibilities. The Internal Audit Department reports
directly to the Audit Committee. In 2009, there were seven
(7) Audit Committee meetings held to deliberate on major
audit findings. In general, the Internal Audit Department
provides an independent assurance on the adequacy and
effectiveness of internal controls, corporate risk management
and overall governance processes.
Annually, the Internal Audit Department prepares a risk based
audit plan and presents to the Audit Committee for approval. In
view of scarce resources, the risk based audit plan gives priority and
focuses on company’s top risks identified by the management.
The audit scope includes performing audit reviews at Strategic
Business Units (“SBU”s), States Management Offices, Support
Services Departments and subsidiaries.
The audits cover the reviews on:-
the adequacy of internal controls;1.
the effectiveness and efficiency of operations;2.
the accuracy of financial and operational information;3.
the compliance with internal policy & procedure, 4.
regulatory and statutory requirements;
the adequacy and effectiveness of IT systems in 5.
supporting operations; and
the effectiveness of risk management processes and the 6.
implementation of controls by management to mitigate
company’s major risks.
The Internal Audit Department shows a high level of
professional expertise, with qualified and experienced
auditors who consistently show their competency through
the high quality and usefulness of the audit product over time.
The Internal Audit Department also conducted ad-hoc
assignments and investigation audits requested by the
Audit Committee and management. Further, Internal Audit
Department conducts regular follow-up on the closing of
audit issues with input from the management.
POS MALAYSIA ANNUAL REPORT 2009
106 Pos Malaysia Annual Report 2009
In ensuring effective communication of audit issues to all operational areas and prompt closing of audit issues, meetings were held
with the management on a regular basis. Management is responsible for ensuring that corrective actions on reported weaknesses
and suggested improvements as recommended are taken within the required time frame.
The Internal Audit Department also provides consultancy services to the management in evaluating the risk exposures of new
business products and projects prior to implementation and ensures that controls are in place to mitigate risks identified. The
Internal Audit Department continues to assist management in supporting the Whistleblowing policy and the Integrity Pact
established in 2008 to ensure transparency and integrity throughout the tendering process.
The Internal Audit Department independently reviews the risk management governance processes to ensure their adequacy and
effectiveness and reports to the Audit Committee on a periodical basis.
One hundred percent of the internal audit activities for the year under review were conducted by the inhouse staff of the Internal Audit
Department. Total budget for the Internal Audit function at Pos Malaysia in the year ending 31 December 2009 was RM2.6 million.
_____________________Datuk Low Seng KuanChairmanAudit Committee
Audit Committee Report
DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
107Pos Malaysia Annual Report 2009
DIRECTORS’ REPORT AND FINANCIAL STATEMENTS
108 Pos Malaysia Annual Report 2009
The Directors have pleasure in submitting their report and the
audited financial statements of the Group and of the Company
for the year ended 31 December 2009.
Principal activities
The principal activities of the Company during the financial
year are to provide postal and its related services which include
receiving and dispatching of postal articles, postal financial
services, dealing in philatelic products and sale of postage stamps.
The principal activities of the subsidiaries and associates are
stated in Notes 8 and 9 respectively to the financial statements.
There has been no significant change in the nature of these
activities during the financial year.
Results
GroupRM’000
CompanyRM’000
Profit attributable to:
Shareholders of the Company 75,415 69,072
Minority interest 1,296 -
76,711 69,072
Reserves and provisions
There were no material transfers to or from reserves and provisions during the year under review except as disclosed in the financial statements.
Dividends
Since the end of the previous financial year, the Company paid a final ordinary dividend of 10 sen per ordinary share less tax at 25% totalling RM40,277,000 in respect of the year ended 31 December 2008 on 25 June 2009.
The final dividends recommended by the Directors in respect of the year ended 31 December 2009 is 12.5 sen per ordinary share less tax at 25% totalling RM50,346,000 and is subject to the approval of the shareholders at the forthcoming Annual General Meeting.
Directors of the Company
Directors who served since the date of the last report are:
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat •
Dato’ Syed Faisal Albar bin Syed A.R Albar•
Tan Sri Dato‘ Ir Muhammad Radzi bin Haji Mansor (appointed •
on 21.10.2009)
Datuk Low Seng Kuan •
Dato’ Krishnan a/l Chinapan•
Puan Sri Datuk Nazariah binti Mohd Khalid •
Dato’ Ibrahim Mahaludin bin Puteh •
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin•
Wee Hoe Soon @ Gooi Hoe Soon •
Abdul Hamid bin Sh. Mohamed •
Eshah binti Meor Suleiman •
Haizan bin Mohd Khir Johari (appointed on 23.02.2010)•
Datuk Abu Huraira bin Abu Yazid (resigned on 01.08.2009)•
Directors’ Report
109Pos Malaysia Annual Report 2009
Directors’ interests
None of the Directors holding office at 31 December 2009 had any interest in the ordinary shares of the Company and of its related
corporations during the financial year.
Directors’ benefits
Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit
(other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown
in the financial statements or the fixed salary of a full time employee of the Company or of related companies) by reason of a
contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or
with a company in which the Director has a substantial financial interest.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company
to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
Issue of shares and debentures
There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.
Employee Share Option Scheme (“ESOS”)
The Company had on 31 October 2007 implemented the ESOS upon the completion of the restructuring exercise of Pos
Malaysia & Services Holdings Berhad for the purpose of continuing the objectives under the Pos Malaysia & Services Holdings
Berhad’s ESOS. The ESOS is governed by the ESOS Bye-laws which were approved by the shareholders on 28 June 2007. The
ESOS is in force for a period from 31 October 2007 up to 23 June 2008.
Details of the ESOS are set out in Note 14(c) of the financial statements.
Options granted over unissued shares
No options were granted to any person to take up unissued shares of the Company during the financial year.
POS MALAYSIA ANNUAL REPORT 2009
110 Pos Malaysia Annual Report 2009
Directors’ Report
Other statutory information
Before the balance sheets and income statements of the
Group and of the Company were made out, the Directors
took reasonable steps to ascertain that:
all known bad debts have been written off and adequate i.
provision made for doubtful debts, and
all current assets have been stated at the lower of cost and ii.
net realisable value.
At the date of this report, the Directors are not aware of
any circumstances:
that would render the amount written off for bad debts, i.
or the amount of the provision for doubtful debts, in the
Group and in the Company inadequate to any substantial
extent, or
that would render the value attributed to the current assets ii.
in the Group and in the Company financial statements
misleading, or
which have arisen which render adherence to the existing iii.
method of valuation of assets or liabilities of the Group
and of the Company misleading or inappropriate, or
not otherwise dealt with in this repor t or the financial iv.
statements, that would render any amount stated
in the financial statements of the Group and of the
Company misleading.
At the date of this report, there does not exist:
any charge on the assets of the Group or of the Company i.
that has arisen since the end of the financial year and
which secures the liabilities of any other person, or
any contingent liability in respect of the Group or of the ii.
Company that has arisen since the end of the financial year.
No contingent liability or other liability of any company in
the Group has become enforceable, or is likely to become
enforceable within the period of twelve months after the end
of the financial year which, in the opinion of the Directors,
will or may substantially affect the ability of the Group and
of the Company to meet their obligations as and when they
fall due.
In the opinion of the Directors, the financial performance of
the Group and of the Company for the financial year ended
31 December 2009 have not been substantially affected
by any item, transaction or event of a material and unusual
nature nor has any such item, transaction or event occurred
in the interval between the end of that financial year and the
date of this report.
111Pos Malaysia Annual Report 2009
Auditors
The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat Dato’ Syed Faisal Albar bin Syed A.R Albar Date: 31 March 2010
POS MALAYSIA ANNUAL REPORT 2009
112 Pos Malaysia Annual Report 2009
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Assets:
Property, plant and equipment 4 273,694 232,901 256,999 213,679
Intanglible asset 5 4,630 - - -
Prepaid lease payments 6 262,135 273,707 182,414 193,407
Investment properties 7 15,071 15,071 - -
Investments in subsidiaries 8 - - 41,284 32,784
Investments in associates 9 - - - -
Other investments 10 208,492 219,951 210,654 211,215
Deferred tax assets 16 85 376 - -
Total non-current assets 764,107 742,006 691,351 651,085
Other investments 10 4,967 7,643 4,967 7,643
Inventories 11 8,692 6,215 4,736 3,659
Receivables, deposits and prepayments 12 177,507 179,004 237,077 246,777
Current tax assets 1,453 2,715 - 1,327
Cash and cash equivalents 13 317,861 600,258 276,554 579,656
Total current assets 510,480 795,835 523,334 839,062
Total assets 1,274,587 1,537,841 1,214,685 1,490,147
Balance Sheets at 31 December 2009
113Pos Malaysia Annual Report 2009
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Equity:
Share capital 14 268,513 268,513 268,513 268,513
Share premium 14 385 385 385 385
Retained earnings 15 530,695 495,557 467,001 438,206Total equity attributable to equity holders of the Company 799,593 764,455 735,899 707,104
Minority interest - 2,574 - -
799,593 767,029 735,899 707,104
Liabilities:
Deferred tax liabilities 16 14,503 10,655 13,657 10,203
Hire purchase creditors 17 23,829 27,066 23,792 27,016
Total non-current liabilities 38,332 37,721 37,449 37,219
Payables and accruals 18 422,212 725,469 427,098 738,933
Current tax liabilities 6,054 718 5,856 -
Hire purchase creditors 17 8,396 6,904 8,383 6,891
Total current liabilities 436,662 733,091 441,337 745,824
Total liabilities 474,994 770,812 478,786 783,043
Total equity and liabilities 1,274,587 1,537,841 1,214,685 1,490,147
The accompanying ‘Notes to the financial statement’ are an integral part of these financial statements.
POS MALAYSIA ANNUAL REPORT 2009
114 Pos Malaysia Annual Report 2009
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Revenue 19 902,561 921,666 872,220 874,171
Raw materials and consumables used (13,582) (21,580) (6,182) (6,535)
Staff costs (512,271) (513,282) (501,926) (503,539)
Rental, communication and utilities (53,012) (47,250) (51,276) (45,658)
Transportation (108,590) (125,706) (107,531) (121,437)
Maintenance and supplies (46,862) (50,213) (44,111) (47,101)
Depreciation of property, plant and equipment (37,589) (29,098) (35,446) (26,964)
Amortisation of prepaid lease payments (11,366) (11,369) (10,993) (10,977)
Other operating expenses (36,936) (36,939) (34,612) (30,910)
Results from operating activities 82,353 86,229 80,143 81,050
Other operating income
- interest income 12,860 18,919 12,624 17,956
- others 10,964 12,307 8,462 11,950
Write back of / (Allowance for) impairment losses 4,892 (116,098) 1,978 (97,647)
Share of results after tax of equity accounted associate
- (1,043) - -
Finance cost (1,805) (833) (1,802) (831)
Profit / (Loss) before tax 20 109,264 (519) 101,405 12,478
Tax expense 22 (32,553) (32,783) (32,333) (31,237)
Profit / (Loss) for the year 76,711 (33,302) 69,072 (18,759)
Attributable to:
Equity holders of the Company 75,415 (35,876)
Minority shareholders 1,296 2,574
Profit / (Loss) for the year 76,711 (33,302)
Basic earnings (loss) per ordinary share (sen) 23 14 (6)
Income Statements For The Year Ended 31 December 2009
115Pos Malaysia Annual Report 2009
Non distributable Distributable
ShareCapital*
Share Premium
RetainedProfits
MinorityInterest
Total
Group RM’000 RM’000 RM’000 RM’000 RM’000
At 1 January 2008 268,369 - 591,022 - 859,391
Loss for the year - - (35,876) 2,574 (33,302)
Issue of shares 144 385 - - 529
Dividends to shareholders - - (59,589) (59,589)
At 31 December 2008/ 1 January 2009 268,513 385 495,557 2,574 767,029
Profit for the year - - 75,415 1,296 76,711
Dividends to shareholders - - (40,277) - (40,277)
Acquisition of minority interest - - - (3,870) (3,870)
At 31 December 2009 268,513 385 530,695 - 799,593
Company RM’000 RM’000 RM’000 RM’000
At 1 January 2008 268,369 - 516,554 784,923
Loss for the year - - (18,759) (18,759)
Issue of shares 144 385 - 529
Dividends to shareholders - - (59,589) (59,589)
At 31 December 2008/ 1 January 2009 268,513 385 438,206 707,104
Profit for the year - - 69,072 69,072
Dividends to shareholders - - (40,277) (40,277)
At 31 December 2009 268,513 385 467,001 735,899
* Share capital includes the Special Rights Redeemable Preference Share of RM1.00. Refer to Note 14(b) the financial statements for details of the terms and rights
attached to Special Rights Redeemable Preference Share.
The accompanying ‘Notes to the financial statement’ are an integral part of these financial statements.
Statement Of Changes In Equity For The YearEnded 31 December 2009
Attributable to equity holders of the Company
POS MALAYSIA ANNUAL REPORT 2009
116 Pos Malaysia Annual Report 2009
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Cash flows from operating activities
Profit/ (Loss) before tax 109,264 (519) 101,405 12,478
Adjustments for :
Amortisation of premium 561 660 561 660
Gain on disposal of unquoted shares (2,602) - - -
Gain on disposal of marketable securities (620) (4,817) (620) (4,817)
Depreciation of property, plant and equipment 4 37,589 29,098 35,446 26,964
Amortisation of prepaid lease payments 6 11,366 11,369 10,993 10,977
Gain on disposal of property, plant & equipment (2,404) (955) (2,404) (975)
(Gain)/loss on redemption of unquoted private debt securities
- (24) - 329
Property, plant and equipment written off - 6 - 6
Prepaid lease payments written off 206 - - -
Allowance for dimunition in value 10 - 87,032 - 87,032
(Reversal)/write down of quoted shares in Malaysia 10 (2,220) 10,615 (2,220) 10,615
Net (reversal of)/allowance for doubtful debts:
- trade receivables 12 (1,920) 3,421 (1,884) (98)
- other receivables 12 (2,914) 18,451 - -
Interest income (12,860) (18,919) (12,624) (17,956)
Dividend income (149) (1,011) (149) (1,011)
Share of results after tax of equity accounted associate - 1,043 - -
Interest expense 1,805 833 1,802 831
Operating profit before changes in working capital 135,102 136,283 130,306 125,035
Inventories (2,477) (3,030) (1,077) (1,906)
Receivables, deposits and prepayments 6,331 (42,929) 11,584 (38,889)
Payables and accruals (10,584) 45,529 (19,162) 44,290
Cash generated from operations 128,372 135,853 121,651 128,530
Cash Flow Statements For The YearEnded 31 December 2009
117Pos Malaysia Annual Report 2009
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Taxes paid (21,816) (41,790) (21,696) (40,177)
Net cash generated from operating activities 106,556 94,063 99,955 88,353
Cash flows from investing activities
Proceeds from disposal of unquoted shares 13,500 - - -
Proceeds from redemption of unquoted private debt securities
- 40,000 - 40,000
Proceeds from diposal of marketable securities (net) 5,516 24,340 5,516 24,340
Proceeds from disposal of property, plant & equipment 2,611 964 2,611 1,003
Purchase of property, plant and equipment (i) (71,477) (69,456) (71,861) (65,520)
Interest received 12,860 18,919 12,624 17,956
Net dividend received 149 878 149 878
Increase in investment in a subsidiary 8(a) (8,500) - (8,500) -Net cash (used in)/generated from investing activities (45,341) 15,645 (59,461) 18,657
Cash flows from financing activities
Issue of new shares - 529 - 529
Repayment of hire purchase (8,857) (3,338) (8,844) (3,333)
Interest expense (1,805) (833) (1,802) (831)
Dividends paid (40,277) (59,589) (40,277) (59,589)
Net cash used in financing activities (50,939) (63,231) (50,923) (63,224)
Movement in cash and cash equivalents 10,276 46,477 (10,429) 43,786
Opening cash and cash equivalents 171,501 125,024 150,899 107,113
Closing cash and cash equivalents 181,777 171,501 140,470 150,899
POS MALAYSIA ANNUAL REPORT 2009
118 Pos Malaysia Annual Report 2009
Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts:
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Cash and bank balances 13 119,219 91,504 87,916 79,656
Deposits 13 198,642 508,754 188,638 500,000
317,861 600,258 276,554 579,656
Less:
Cash held for the purpose of distribution of fuel rebatefor the government
(4,257) (309,799) (4,257) (309,799)
Collection on behalf of agency creditors (131,827) (118,958) (131,827) (118,958)
181,777 171,501 140,470 150,899
(i) Purchase of property, plant and equipment
During the year, the Group and Company acquired property, plant and equipment with an aggregate cost of RM78,589,000
(2008 - RM106,764,000) and RM78,973,000 (2008 - RM102,760,000) of which RM7,112,000 (2008 – RM41,466,000) and
RM7,112,000 (2008 - RM41,391,000) respectively, were acquired by means of hire purchase.
The accompanying ‘Notes to the financial statement’ are an integral part of these financial statements.
Notes to the Financial StatementsCash Flow Statements For The YearEnded 31 December 2009 (Continued)
119Pos Malaysia Annual Report 2009
Pos Malaysia Berhad is a public limited liability company,
incorporated and domiciled in Malaysia and is listed on
the Main Market of the Bursa Malaysia Securities Berhad.
The addresses of its registered office and principal place of
business are as follows:
Registered office/Principal place of business
Level 33, Menara Dayabumi
Jalan Sultan Hishamuddin
50050 Kuala Lumpur
The consolidated financial statements of the Company as at
and for the year ended 31 December 2009 comprise the
Company and its subsidiaries (together referred to as the
Group) and the Group’s interest in associates. The financial
statements of the Company as at and for the year ended 31
December 2009 do not include other entities.
The principal activities of the Company during the financial
year are to provide postal and its related services which
include receiving and dispatching of postal ar ticles, postal
financial services, dealing in philatelic products and sale of
postage stamps. The principal activities of the subsidiaries
and associates are stated in Notes 8 and 9 respectively to
the financial statements.
The financial statements were approved by the Board of
Directors on 31 March 2010.
1. BASIS OF PREPARATION
(a) Statement of complianceThe financial statements of the Group and of the Company
have been prepared in accordance with Financial Reporting
Standards (“FRS”), accounting principles generally accepted
and the Companies Act, 1965 in Malaysia.
During the year, the Group has chosen to early adopt
FRS 8, Operating Segments, which is effective for annual
periods beginning 1 July 2009. The accounting policy in
relation to this standard is disclosed in Note 2(s) to the
financial statements.
The Group and Company have not applied the following
accounting standards, amendments and interpretations
that have been issued by the Malaysian Accounting
Standards Board (“MASB”) but are not yet effective for
the Group and Company:
FRSs, Interpretations and amendments effective for
annual periods beginning on or after 1 January 2010
FRS 4, Insurance Contracts •
FRS 7, Financial Instruments: Disclosures•
FRS 101, Presentation of Financial Statements (revised)•
FRS 123, Borrowing Costs (revised)•
FRS 139, Financial Instruments: Recognition and •
Measurement
Amendments to FRS 1, First-time Adoption of Financial •
Reporting Standards
Amendments to FRS 2, Share-based Payment: Vesting •
Conditions and Cancellations
Notes to the Financial Statements
POS MALAYSIA ANNUAL REPORT 2009
120 Pos Malaysia Annual Report 2009
Amendments to FRS 7, Financial Instruments: •
Disclosures
Amendments of FRS 101, Presentation of Financial •
Statements - Puttable Financial Instruments and
Obligations Arising on Liquidation
Amendments to FRS 127, Consolidated and Separate •
Financial Statements: Cost of an Investment in a
Subsidiary, Jointly Controlled Entity or Associate
Amendments to FRS 132, Financial Instruments: •
Presentation - Puttable Financial Instruments and
Obligations Arising on Liquidation Separation of
Compound Instruments
Amendments to FRS 139, Financial Instruments: •
Recognition and Measurement - Reclassification of
Financial Assets
Collective Assessment of Impairment for Banking •
Institutions
Improvements to FRSs (2009)•
IC Interpretation 9, Reassessment of Embedded •
Derivatives
IC Interpretation 10, Interim Financial Reporting and •
Impairment
IC Interpretation 11, FRS 2 - Group and Treasury •
Share Transactions
IC Interpretation 13, Customer Loyalty Programmes •
IC Interpretation 14, FRS 119 - The Limit on a Defined •
Benefit Asset, Minimum Funding Requirements and
Their Interaction
FRSs, Interpretations and amendments effective for annual
periods beginning on or after 1 March 2010
Amendments • to FRS 132, Financial Instruments:
Presentation - Classification of Rights Issues
FRSs, Interpretations and amendments effective for annual
periods beginning on or after 1 July 2010
FRS 1, First-time • Adoption of Financial Reporting
Standards (revised)
FRS 3, Business Combinations (revised)•
FRS 127, Consolidated and Separate Financial Statements •
(revised)
Amendments to FRS 2, Share-based Payment•
Amendments to FRS 5, Non-current Assets Held for •
Sale and Discontinued Operations
Amendments to FRS 138, Intangible Assets•
IC Interpretation 12, Service Concession Agreements•
IC Interpretation 15, Agreements for the Construction •
of Real Estate
IC Interpretation 16, Hedges of a Net Investment in a •
Foreign Operation
IC Interpretation 17, Distribution of Non-cash Assets •
to Owners
Amendments to IC Interpretation 9, Reassessment of •
Embedded Derivatives
Notes to the Financial Statements
121Pos Malaysia Annual Report 2009
FRSs, Interpretations and amendments effective for annual
periods beginning on or after 1 January 2011
Amendments to FRS 1, First-time Adoption of Financial •
Reporting Standards- Limited Exemption from
Comparative FRS 7 Disclosures for First-time Adopters
Amendments to FRS 7, Financial Instruments: Disclosures- •
Improving Disclosures about Financial Instruments
The Group and Company plans to apply the abovementioned
standards, amendments and interpretations:
fro• m the annual period beginning 1 January 2010 for those
standards, amendments or interpretations that will be
effective for annual periods beginning on or after 1 January
2010, except for FRS 4, 123 and IC interpretation 9, 11,
13 and 14 which are not applicable to the Group and
Company; and
from the annual period beginning 1 January 2011 for •
those standards, amendments or interpretations that will
be effective for annual periods beginning on or after 1
March 2010, 1 July 2010 and 1 January 2011 except for
Amendments to FRS 5, IC Interpretations 12,15,16 and
17 and Amendments to IC interpretation 9 which are
not applicable to the Group and Company.
The initial application of a standard, an amendment or an
interpretation, which will be applied prospectively, is not
expected to have any financial impacts to the current and
prior periods financial statements upon their first adoption.
The impacts and disclosures as required by FRS 108.30(b),
Accounting Policies, changes in Accounting Estimates and Errors,
in respect of applying FRS 7 and FRS 139 are not disclosed by
vir tue of the exemptions given in these respective FRSs.
Material impact of initial application of a standard, an
amendment or an interpretation, which will be applied
retrospectively, is disclosed below:
FRS 117, Leases
The amendments clarify that the classification of lease of
land and require entities with existing leases of land and
buildings to reassess the classification of land as finance
or operating lease. Leasehold land which in substance is
a finance lease will be reclassified to property, plant and
equipment. The adoption of these amendments will result
in a change in accounting policy which will be applied
retrospectively in accordance with the transitional
provisions. This change in accounting policy will result
in reclassification of lease of land for the Group and
Company from prepaid lease payments to property, plant
and equipment.
(b) Basis of measurement
The financial statements have been prepared on the
historical cost basis except as disclosed in the notes to
the financial statements.
(c) Functional and presentation currency
These financial statements are presented in Ringgit
Malaysia (“RM”), which is the Company’s functional
POS MALAYSIA ANNUAL REPORT 2009
122 Pos Malaysia Annual Report 2009
currency. All financial information presented in RM
has been rounded to the nearest thousand, unless
otherwise stated.
(d) Use of estimates and judgements
The preparation of financial statements in conformity
with FRSs requires management to make judgements,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and in any future periods affected.
There are no significant areas of estimation uncertainty
and critical judgements in applying accounting policies
that have significant effect on the amounts recognised
in the financial statements other than those disclosed in
the following notes:
Note 5measurement of the recoverableamounts of cash-generating units
Note 7 valuation of investment properties
Note 16recognition of unutilised tax losses and capital allowances
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied
consistently to the periods presented in these financial
statements, and have been applied consistently by Group
entities, except for the early adoption of FRS 8, Operating
Segments as disclosed in Note 2 (s).
(a) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities, including unincorporated
entities, controlled by the Group. Control exists when
the Group has ability to exercise its power to govern
the financial and operating policies of an entity so as to
obtain benefits from its activities. In assessing control,
potential voting rights that presently are exercisable
are taken into account. Subsidiaries are consolidated
using the purchase method of accounting.
Under the purchase method of accounting, the
financial statements of subsidiaries are included in the
consolidated financial statements from the date that
control commences until the date that control ceases.
Investments in subsidiaries are stated in the Company’s
balance sheet at cost less any impairment losses, unless
the investment is classified as held for sale (or included
in a disposal group that is classified as held for sale).
Notes to the Financial Statements
123Pos Malaysia Annual Report 2009
(ii) Associates
Associates are entities, including unincorporated entities,
in which the Group has significant influence, but not
control, over the financial and operating policies.
Associates are accounted for in the consolidated
financial statements using the equity method unless it
is classified as held for sale (or included in a disposal
group that is classified as held for sale). The consolidated
financial statements include the Group’s share of the
profit or loss of the equity accounted associates, after
adjustments, if any, to align the accounting policies
with those of the Group, from the date that significant
influence commences until the date that significant
influence ceases.
When the Group’s share of losses exceeds its interest
in an equity accounted associate, the carrying amount
of that interest (including any long-term investments)
is reduced to nil and the recognition of fur ther losses
is discontinued except to the extent that the Group
has an obligation or has made payments on behalf of
the investee.
Investments in associates are stated in the Company’s
balance sheet at cost less any impairment losses, unless
the investment is classified as held for sale (or included
in a disposal group that is classified as held for sale).
(iii) Changes in Group composition
Where a subsidiary issues new equity shares to
minority interests for cash consideration and the issue
price has been established at fair value, the reduction in
the Group’s interests in the subsidiary is accounted for
as a disposal of equity interest with the corresponding
gain or loss recognised in the income statements.
When a group purchases a subsidiary’s equity shares
from minority interests for cash consideration and the
purchase price has been established at fair value, the
accretion of the Group’s interests in the subsidiary
is accounted for as a purchase of equity interest for
which the acquisition method of accounting is applied.
The Group treats all other changes in group
composition as equity transactions between the
Group and its minority shareholders. Any difference
between the Group’s share of net assets before and
after the change, and any consideration received or
paid, is adjusted to or against Group reserves.
(iv) Minority interest
Minority interest at the balance sheet date, being the
portion of the net identifiable assets of subsidiaries
attributable to equity interests that are not owned by
the Company, whether directly or indirectly through
subsidiaries, are presented in the consolidated balance
sheet and statement of changes in equity within equity,
separately from equity attributable to the equity holders
of the Company. Minority interest in the results of the
Group are presented on the face of the consolidated
income statement as an allocation of the total profit
POS MALAYSIA ANNUAL REPORT 2009
124 Pos Malaysia Annual Report 2009
or loss for the year between minority interest and the
equity holders of the Company.
Where losses applicable to the minority exceed the
minority’s interest in the equity of the subsidiary, the
excess, and any fur ther losses applicable to the minority,
are charged against the Group’s interest except to the
extent that the minority has a binding obligation to,
and is able to, make additional investment to cover the
loses. If the subsidiary subsequently reports profits, the
Group’s interest is allocated with all such profits until
the minority’s share of losses previously absorbed by
the Group has been recovered.
(v)Transactions eliminated on consolidation
Intra-group balances and transactions, and any
unrealised income and expenses arising from intra-
group transactions, are eliminated in preparing the
consolidated financial statements.
Unrealised gains arising from transactions with equity
accounted investees are eliminated against the
investment to the extent of the Group’s interest in the
investee. Unrealised losses are eliminated in the same
way as unrealised gains, but only to the extent that
there is no evidence of impairment.
(b) Foreign currency
Foreign currency transactionsTransactions in foreign currencies are translated to the
respective functional currencies of the Group entities at
exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are retranslated
to the functional currency at the exchange rate at that
date. Non-monetary assets and liabilities denominated
in foreign currencies are translated at exchange rates
at the dates of the transactions except for those
transactions that are measured at fair value, which are
retranslated to the functional currency at the exchange
rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are
recognised in the income statements.
(c) Property, plant and equipment
(i) Recognition and measurement
Freehold land and capital work-in-progress are stated
at cost. All other property, plant and equipment are
stated at cost less accumulated depreciation and any
accumulated impairment losses.
Notes to the Financial Statements
125Pos Malaysia Annual Report 2009
Cost includes expenditures that are directly
attributable to the acquisition of the asset and any
other costs directly attributable to bringing the asset
to working condition for its intended use, and the costs
of dismantling and removing the items and restoring
the site on which they are located. The cost of self-
constructed assets also includes the cost of materials
and direct labour and, for qualifying assets, borrowing
costs are capitalised in accordance with the Group’s
accounting policy. Purchased software that is integral to
the functionality of the related equipment is capitalised
as part of that equipment.
The cost of property, plant and equipment recognised
as a result of a business combination is based on fair
value at acquisition date. The fair value of property is
the estimated amount for which a property could be
exchanged between a willing buyer and a willing seller
in an arm’s length transaction after proper marketing
wherein the parties had each acted knowledgeably,
prudently and without compulsion. The fair value of
other items of plant and equipment is based on the
quoted market prices for similar items.
When significant parts of an item of property, plant
and equipment have different useful lives, they are
accounted for as separate items (major components)
of property, plant and equipment.
Gains and losses on disposal of an item of property,
plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of
property, plant and equipment and are recognised net
within “other income” or “other operating expenses”
respectively in the income statements.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant
and equipment is recognised in the carrying amount of
the item if it is probable that the future economic benefits
embodied within the part will flow to the Group and its
cost can be measured reliably. The carrying amount of
the replaced part is derecognised. The costs of the day-
to-day servicing of property, plant and equipment are
recognised in the income statement as incurred.
(iii) Depreciation
Depreciation is recognised in the income statement on
a straight-line basis over the estimated useful lives of
each part of an item of property, plant and equipment.
Leased assets are depreciated over the shorter of the
lease term and their useful lives unless it is reasonably
certain that the Group will obtain ownership by the
end of the lease term. Freehold land and capital work-
in-progress are not depreciated. Property, plant and
equipment under construction are not depreciated
until the assets are ready for their intended use.
POS MALAYSIA ANNUAL REPORT 2009
126 Pos Malaysia Annual Report 2009
(d) Operating lease
Leases where the Group or the Company does not assume
substantially all the risks and rewards of the ownership
are classified as operating leases and, except for property
interest held under operating lease, the leased assets are
not recognised on the Group’s balance sheet. Property
interest held under an operating lease, which is held to
earn rental income or for capital appreciation or both, is
classified as investment property.
Leasehold land that normally has an indefinite economic
life and title is not expected to pass to the lessee by the
end of the lease term is treated as an operating lease.
Payment made on entering into or acquiring a leasehold
land is accounted for as prepaid lease payments, except
for leasehold land classified as investment property.
Payments made under operating leases are recognised
in the income statements on a straight-line basis over
the term of the lease. Lease incentives received are
recognised as an integral part of the total lease expense,
over the term of the lease.
(iii)Depreciation (continued)
The estimated useful lives for the current and comparative periods are as follows:
Buildings 50 years
Building improvements and office renovations 2 - 10 years
Plant and machinery 10 - 20 years
Motor vehicles 5 years
Furniture and fittings, office and computer equipment 3 - 10 years
Depreciation methods, useful lives and residual values are reassessed at the balance sheet date.
Notes to the Financial Statements
127Pos Malaysia Annual Report 2009
(e) Hire purchase liabilities
Motor vehicles acquired under hire purchase arrangement
are capitalised at their purchase cost and depreciated
on the same basis as owned assets. The corresponding
obligations relating to the remaining capital payments
are treated as a liability. The interest element of the hire
purchase agreements is amortised over the period of the
agreements on the sum of digits method.
(f) Other investments - debt and equity securities
Investments in debt and equity securities are recognised
initially at fair value plus attributable transaction costs.
Subsequent to initial recognition:
Investments in non-current equity securities other •
than investments in subsidiaries and associates, are
stated at cost less allowance for diminution in value,
Investments in non-current debt securities are •
stated at amortised cost using the effective interest
method less allowance for diminution in value,
All current investments are carried at the lower of •
cost and market value, determined on an aggregate
portfolio basis by category of investments
Long term investment in subsidiaries and associates are
stated at cost in the Company, less any accumulated
impairment losses.
Where in the opinion of the Directors, there is a decline
other than temporary in the value of non-current equity
securities and non-current debt securities other than
investment in subsidiaries and associates, the allowance
for diminution in value is recognised as an expense in the
financial year in which the decline is identified.
On disposal of an investment, the difference between net
disposal proceeds and its carrying amount is recognised
in the income statement.
All investments in debt and equity securities are accounted
for using settlement date accounting. Settlement date
accounting refers to:
the recognition of an asset on the day it is received a.
by the entity, and
the de-recognition on an asset and recognition of any b.
gain or loss on disposal on the date it is delivered.
(g) Investment properties
Investment properties are properties which are owned
or held under a leasehold interest to earn rental income
or for capital appreciation or for both. These include land
held for a currently undetermined future use. Properties
that are occupied by the companies in the Group
are accounted for as owner-occupied rather than as
investment properties. Investment properties are stated
at fair value and gains and losses are recognised in the
profit and loss in the year which they arise.
POS MALAYSIA ANNUAL REPORT 2009
128 Pos Malaysia Annual Report 2009
The fair values of the investment properties determined
by Jabatan Penilaian dan Perkhidmatan Harta (“JPPH”) are
based on market values, being the estimated amount for
which a property could be exchanged on the date of the
valuation between a willing buyer and a willing seller in an
arm’s length transaction after proper marketing wherein
the parties had each acted knowledgeably, prudently and
without compulsion.
Valuations reflect, where appropriate, the type of
tenants actually in occupation or responsible for meeting
lease commitments or likely to be in occupation after
letting vacant accommodation, and the market’s general
perception of their creditworthiness; the allocation of
maintenance and insurance responsibilities between the
Group and the lessee; and the remaining economic life
of the property. When rent reviews or lease renewals
are pending with anticipated reversionary increases,
it is assumed that all notices and where appropriate
counter-notices have been served validly and within the
appropriate time.
(h) Intangible asset
Goodwill arises on business combination is measured at
cost less any accumulated impairment losses. Goodwill
represents the excess of the cost of the acquisition over
the Group’s interest in the fair value of the identifiable
assets, liabilities and contingent liabilities of the acquiree.
Any excess of the Group’s interest in the net fair value
of acquiree’s identifiable assets, liabilities and contingent
liabilities over the cost of acquisition is recognised
immediately in profit or loss.
Goodwill is not amortised but is tested for impairment
at each balance sheet date and whenever there is an
indication that goodwill may be impaired.
(i) Inventories
Inventories are measured at the lower of cost and net
realisable value. Net realisable value is the estimated
selling price in the ordinary course of business, less the
estimated costs of completion and the estimated costs
necessary to make the sale.
Inventories comprise mainly uniforms for postmen,
insertion and mailing materials, digital certificates and Pos
2020 merchandise. The cost of inventories is determined
on a weighted average basis.
Expenditure on the production of postage stamps is
expensed off in the financial year in which it is incurred
and therefore no value for stamps on hand at balance
sheet date is shown in the financial statements. However,
for internal control purposes, inventories of postage
stamps are accounted for at face value within a dedicated
accounting sub-system.
Notes to the Financial Statements
129Pos Malaysia Annual Report 2009
(j) Receivables
Receivables are initially recognised at their cost when
the contractual right to receive cash or another financial
asset from another entity is established.
Subsequent to initial recognition, receivables are stated
at cost less allowance for doubtful debts.
Receivables are not held for the purpose of trading.
(k) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand,
balances and deposits with banks and highly liquid
investments which have an insignificant risk of changes
in value.
For the purpose of the cash flow statements, cash and
cash equivalents are presented net of cash held for the
purpose of distribution of fuel rebate for the government
and collections on behalf of agency creditors.
(l) Impairment of assets
The carrying amount of assets, except for inventories,
deferred tax assets and financial assets, are reviewed at
each reporting date to determine whether there is any
indication of impairment. If any such indication exists, the
asset’s recoverable amount is estimated. For goodwill, the
recoverable amount is estimated at each balance sheet
date and whenever there is an indication that goodwill
maybe impaired.
The recoverable amount of an asset or cash-generating
unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated
future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset. For the purpose of impairment testing,
assets are grouped together into the smallest group of
assets that generates cash inflows from continuing use
that are largely independent of the cash inflows of other
assets or groups of assets (the “cash-generating unit”).
The goodwill acquired in a business combination, for
the purpose of impairment testing, is allocated to cash-
generating units that are expected to benefit from the
synergies of the combination.
An impairment loss is recognised if the carrying
amount of an asset or its cash-generating unit exceeds
its recoverable amount unless the asset is carried at a
revalued amount, in which case the impairment loss is
recognised directly against any revaluation surplus for
the asset to the extent that the impairment loss does
not exceed the amount in the revaluation surplus for
that same asset. Impairment losses are recognised in
the income statements. Impairment losses recognised in
respect of cash-generating units are allocated first to reduce
the carrying amount of any goodwill allocated to the units
and then to reduce the carrying amount of the other assets
in the unit (groups of units) on a pro rata basis.
POS MALAYSIA ANNUAL REPORT 2009
130 Pos Malaysia Annual Report 2009
An impairment loss in respect of goodwill is not reversed.
In respect of other assets, impairment losses recognised
in prior periods are assessed at each reporting date
for any indications that the loss has decreased or no
longer exists. An impairment loss is reversed if there
has been a change in the estimates used to determine
the recoverable amount. An impairment loss is reversed
only to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation,
if no impairment loss had been recognised. Reversals of
impairment losses are credited to the income statement
in the year in which the reversals are recognised.
(m) Equity instruments
All equity instruments are stated at cost on initial
recognition and are not re-assessed subsequently.
(i) Issue expenses
Incremental costs directly attributable to issue of equity
instruments are recognised as a deduction from equity.
(ii) Preference share capital
Preference share capital is classified as equity if
it is non-redeemable, or is redeemable but only
at the Company’s option, and any dividends are
discretionary. Dividends thereon are recognised as
distributions within equity. Preference share capital
is classified as a liability if it is redeemable on a
specific date or at the option of the shareholders, or
if dividend payments are not discretionary. Dividends
thereon are recognised as interest expense in the
income statements.
(n) Payables
Payables are measured initially and subsequently at cost.
Payables are recognised when there is a contractual
obligation to deliver cash or another financial asset to
another entity.
(o) Revenue recognition
Postal and its related services
Postage, prepaid mail and courier revenuePostage, prepaid mail and courier revenue on demand
are recognised in the income statement at point of sale.
No provision is made in the financial statements for any
unearned revenue as at balance sheet date in respect of
which the related postal service that has not yet been
provided as the amount is not material.
Courier revenue on contract is recognised upon
performance of the services.
Commission revenue on remittances and agency servicesCommission revenue on remittances and agency services
are recognised in the income statement upon the
performance of services.
International mail revenueRevenue from incoming international mail is recognised in the income statement upon performance of services.
Notes to the Financial Statements
131Pos Malaysia Annual Report 2009
Printing and insertion servicesRevenue is recognised upon provision of services, net of
sales taxes and discounts.
SaleofdigitalcertificatesRevenue from the sales of digital certificates is recognised
progressively over the life of the digital certificates that
can be used which ranges from twelve (12) to thir ty six
(36) months.
Other operating incomeInterest income:
Interest income is recognised as it accrues, using the
effective interest method.
Dividend income:
Dividend income is recognised when the right to receive
payment is established.
(p) Employee benefits
ShorttermemployeebenefitsShort-term employee benefit obligations in respect
of salaries, annual bonuses, paid annual leave and sick
leave are measured on an undiscounted basis and are
expensed as the related service is provided.
A provision is recognised for the amount expected to
be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive
obligation to pay this amount as a result of past service
provided by the employee and the obligation can be
estimated reliably.
The Group’s contribution to the Employees’ Provident
Fund are charged to the income statements in the year
to which they relate. Once the contributions have been
paid, the Group has no further payment obligations.
(q) Tax expense
Tax expense comprises current and deferred tax. Tax
expense is recognised in the income statements except
to the extent that it relates to items recognised directly
in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the
taxable income for the year, using tax rates enacted or
substantively enacted at the balance sheet date, and any
adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet
method, providing for temporary differences between
the carrying amounts of assets and liabilities for reporting
purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the following
temporary differences: the initial recognition of goodwill,
the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither
accounting nor taxable profit (tax loss). Deferred tax is
measured at the tax rates that are expected to be applied
to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted
by the balance sheet date.
POS MALAYSIA ANNUAL REPORT 2009
132 Pos Malaysia Annual Report 2009
Deferred tax liability is recognised for all taxable
temporary differences.
A deferred tax asset is recognised to the extent
that it is probable that future taxable profits will be
available against which temporary difference can be
utilised. Deferred tax assets are reviewed at each
repor ting date and are reduced to the extent that it
is no longer probable that the related tax benefit will
be realised.
(r) Earnings per share
The Group presents basic earnings per share (“EPS”) data
for its ordinary shares. Basic EPS is calculated by dividing
the profit or loss attributable to ordinary shareholders
of the Company by the weighted average number of
ordinary shares outstanding during the period.
(s) Operating Segments
In the previous years, a segment was a distinguishable
component of the Group that was engaged either in
providing products or services (business segment), or
in providing products or services within a par ticular
economic environment (geographical segment), which
was subject to risks and rewards that were different
from those of other segments.
Following the early adoption of FRS 8, Operating
Segments, an operating segment is a component of the
Group that engages in business activities from which
it may earn revenues and incur expenses, including
revenues and expenses that relate to transactions with
any of the Group’s other components. An operating
segment’s operating results are reviewed regularly by
the chief operating decision maker, which in this case
is the Managing Director, Chief Executive Officer of
the Group, to make decision about resources to be
allocated to the segments and assess its performance
and for which discrete financial information is available.
Notes to the Financial Statements
133Pos Malaysia Annual Report 2009
3. VESTING OF BUSINESS
On 1 January 1992, all proper ty, rights and liabilities, other
than land and buildings and cer tain assets, to which Jabatan
Perkhidmatan Pos Malaysia (“JPPM”) was entitled or subject
to immediately before that vesting date, became the
proper ty, rights and liabilities of the Company by vir tue of
Section 3 of the Postal Services (Successor Company) Act
1991. The value of assets and the amount of liabilities of
JPPM transferred to and vested in the Company were those
stated in the financial statements of JPPM as at 31 December
1991. In accordance with Section 7(4) of the said Act, for
the purposes of any statutory financial statements of the
Group and Company, the amount to be included in respect
of any item shall be determined as if anything done by JPPM
whether by way of acquiring, revaluing or disposing of any
assets or incurring, revaluing or discharging any liability, or
by carrying any amount to any provision of reserve, or
otherwise, had been done by the Company.
POS MALAYSIA ANNUAL REPORT 2009
134 Pos Malaysia Annual Report 2009
4. PROPERTY, PLANT AND EQUIPMENT
Freehold land Buildings
Building improvements
and RenovationsGroup
RM’000 RM’000 RM’000
Cost
At 1 January 2008 2,276 35,114 81,468
Additions - - 1,426
Disposals - - -
Reclassifications - - -
Reclassified from prepaid lease payments - - 284
Transfers - - 3,634
Transferred to prepaid lease payments - - -
Written off - - (33,916)
At 31 December 2008/ 1 January 2009 2,276 35,114 52,896
Additions - - 1,965
Disposals - - -
Transfers - - 33,583
Written off - - -
At 31 December 2009 2,276 35,114 88,444
Notes to the Financial Statements
135Pos Malaysia Annual Report 2009
Plant andmachinery
Motorvehicles
Furniture and fittings, office
and computer equipment
Capital work-in progress Total
RM’000 RM’000 RM’000 RM’000 RM’000
33,281 100,064 105,570 27,793 385,566
11 25,092 7,032 73,203 106,764
- (4,638) (428) - (5,066)
(724) - 724 - -
- - - - 284
1,041 18,072 22,169 (44,916) -
- - - (1,851) (1,851)
(14,836) (92) (8,377) - (57,221)
18,773 138,498 126,690 54,229 428,476
31 5,642 4,073 66,878 78,589
- (12,820) (1,093) - (13,913)
- 3,678 15,291 (52,552) -
- (5) - - (5)
18,804 134,993 144,961 68,555 493,147
POS MALAYSIA ANNUAL REPORT 2009
136 Pos Malaysia Annual Report 2009
4. PROPERTY, PLANT AND EQUIPMENT (continued)
Freehold land Buildings
Building improvements
and RenovationsGroup
RM’000 RM’000 RM’000
Depreciation
At January 2008 - 6,543 55,917
Depreciation for the year - 693 4,232
Disposals - - -
Reclassifications - - -
Reclassified from prepaid lease payments - - 59
Written off - - (33,916)
At 31 December 2008/ 1 January 2009 - 7,236 26,292
Depreciation for the year - 693 4,416
Disposals - - -
Written off - - -
At 31 December 2009 - 7,929 30,708
Carrying amounts
At 1 January 2008 2,276 28,571 25,551
At 31 December 2008/ 1 January 2009 2,276 27,878 26,604
At 31 December 2009 2,276 27,185 57,736
Notes to the Financial Statements
137Pos Malaysia Annual Report 2009
Plant andmachinery
Motorvehicles
Furniture and fittings, office
and computer equipment
Capital work-in progress Total
RM’000 RM’000 RM’000 RM’000 RM’000
27,925 75,165 63,140 - 228,690
672 11,306 12,195 - 29,098
- (4,648) (409) - (5,057)
(552) - 552 - -
- - - - 59
(14,836) (92) (8,371) - (57,215)
13,209 81,731 67,107 - 195,575
689 16,648 15,143 - 37,589
- (12,736) (970) - (13,706)
- (5) - - (5)
13,898 85,638 81,280 - 219,453
5,356 24,899 42,430 27,793 156,876
5,564 56,767 59,583 54,229 232,901
4,906 49,355 63,681 68,555 273,694
POS MALAYSIA ANNUAL REPORT 2009
138 Pos Malaysia Annual Report 2009
4. PROPERTY, PLANT AND EQUIPMENT (continued)
Freehold land Buildings
Building improvements
and RenovationsCompany
RM’000 RM’000 RM’000
Cost
At 1 January 2008 2,276 25,718 76,993
Additions - - 421
Disposals - - -
Transfers - - 3,634
Transferred to prepaid lease payments - - -
Written off - - (33,916)
At 31 December 2008/ 1 January 2009 2,276 25,718 47,132
Additions - - 1,541
Disposals - - -
Transfers - - 33,583
At 31 December 2009 2,276 25,718 82,256
Notes to the Financial Statements
139Pos Malaysia Annual Report 2009
Plant andmachinery
Motorvehicles
Furniture and fittings, office
and computer equipment
Capital work-in progress Total
RM’000 RM’000 RM’000 RM’000 RM’000
20,035 99,130 89,131 27,464 340,747
11 25,016 5,032 72,280 102,760
- (4,505) (428) - (4,933)
1,041 18,072 22,169 (44,916) -
- - - (1,800) (1,800)
(14,836) - (7,795) - (56,547)
6,251 137,713 108,109 53,028 380,227
25 5,642 3,773 67,992 78,973
- (12,820) (1,093) - (13,913)
- 3,678 15,132 (52,393) -
6,276 134,213 125,921 68,627 445,287
POS MALAYSIA ANNUAL REPORT 2009
140 Pos Malaysia Annual Report 2009
4. PROPERTY, PLANT AND EQUIPMENT (continued)
Freehold land Buildings
Building improvements
and RenovationsCompany
RM’000 RM’000 RM’000
Depreciation
At 1 January 2008 - 4,732 54,365
Depreciation for the year - 504 3,863
Disposals - - -
Written off - - (33,916)
At 31 December 2008/ 1 January 2009 - 5,236 24,312
Depreciation for the year - 504 4,075
Disposals - - -
At 31 December 2009 - 5,740 28,387
Carrying amounts
At 1 January 2008 2,276 20,986 22,628
At 31 December 2008/ 1 January 2009 2,276 20,482 22,820
At 31 December 2009 2,276 19,978 53,869
The Group and Company obtained Financing on motor vehicles amounting to RM34,583000 (2008- RM41,466,000) and
RM34,529,000 (2008- RM41,391,000) under hire purchase arrangements.
The title deeds for certain freehold land with carrying value amounting to RM842,000 (2008- RM846,000) have yet to be issued
in the name of the Company as at 31 December 2009 by the relevant authorities.
The cost of fully depreciated assets which are still in use by the Group and Company is RM100,144,000 (2008- RM103,805,000)
and RM80,555,000 (2008- RM84,835,000) respectively.
Notes to the Financial Statements
141Pos Malaysia Annual Report 2009
Plant andmachinery
Motorvehicles
Furniture and fittings, office
and computer equipment
Capital work-in progress Total
RM’000 RM’000 RM’000 RM’000 RM’000
17,336 74,369 50,228 - 201,030
526 11,256 10,815 - 26,964
- (4,503) (402) - (4,905)
(14,836) - (7,789) - (56,541)
3,026 81,122 52,852 - 166,548
542 16,604 13,721 - 35,446
- (12,736) (970) - (13,706)
3,568 84,990 65,603 - 188,288
2,699 24,761 38,903 27,464 139,717
3,225 56,591 55,257 53,028 213,679
2,708 49,223 60,318 68,627 256,999
POS MALAYSIA ANNUAL REPORT 2009
142 Pos Malaysia Annual Report 2009
5. INTANGIBLE ASSET
Group Goodwill
RM’000
Cost
At 1 January 2008 -
Acquisitions of minority interests 4,630
As at 1 January 2009/ 31 December 2009 4,630
Amortisation and impairment losses
As at 1 January 2009/ 31 December 2009 -
Carrying amount
At 31 December 2007/ 1 January 2008 -
At 31 December 2009 4,630
Impairment testing for goodwill
For the purpose of impairment testing, goodwill is allocated to the subsidiary acquired which represents the lowest level within
the Group at which the goodwill is monitored for internal management purposes.
The Goodwill impairment test was based on value in use and was determined by the Management.
Value in use was determined by discounting future cash flows generated from the continuing use of the subsidiary and was based
on the following key assumptions:
Cash• flows were projected based on actual Earnings before Interest, Tax, Depreciation and Amortisation (“EBITDA”) and a 5 year business plan.EBITDA for 2010 – 2014 was projected based on actual EBITDA for 2009. The anticipated annual growth rate was 5% per • annum for the years 2010 – 2014. A pre-tax discount rate of 7.5% was applied in determining the recoverable amount of the subsidiary. This discount rate was • estimated based on the Group’s weighted average cost of capital.
The values assigned to the key assumptions represent management’s assessment of future trends in the Group and subsidiary’s principal activities and are based on internal sources.
Notes to the Financial Statements
143Pos Malaysia Annual Report 2009
6. PREPAID LEASE PAYMENTS
Group
Leasehold landand buildings
Government leasehold landand buildings Total
RM’000 RM’000 RM’000
Cost
At 1 January 2008 184,106 210,799 394,905
Transfered from capital work-in-progress 1,851 - 1,851
Reclassified to property, plant and equipment (284) - (284)
At 31 December 2008/ 1 January 2009 185,673 210,799 396,472
Written off (206) - (206)
At 31 December 2009 185,467 210,799 396,266
Amortisation
At 1 January 2008 29,278 82,177 111,455
Amortisation during the year 2,230 9,139 11,369
Reclassified to property, plant and equipment (59) - (59)
At 31 December 2008/ 1 January 2009 31,449 91,316 122,765
Amortisation during the year 2,022 9,344 11,366
At 31 December 2009 33,471 100,660 134,131
Carrying amounts
At 1 January 2008 154,828 128,622 283,450
At 31 December 2008/ 1 January 2009 154,224 119,483 273,707
At 31 December 2009 151,996 110,139 262,135
POS MALAYSIA ANNUAL REPORT 2009
144 Pos Malaysia Annual Report 2009
6. PREPAID LEASE PAYMENTS (continued)
Company
Leasehold landand buildings
Government leasehold landand buildings Total
RM’000 RM’000 RM’000
Cost
At 1 January 2008 99,585 210,799 310,384
Transfered from capital work-in-progress 1,800 - 1,800
At 31 December 2008/ 1 January 2009/ 31 December 2009 101,385 210,799 312,184
Amortisation
At 1 January 2008 24,986 82,814 107,800
Amortisation during the year 1,838 9,139 10,977
At 31 December 2008/ 1 January 2009 26,824 91,953 118,777
Amortisation during the year 1,286 9,707 10,993
At 31 December 2009 28,110 101,660 129,770
Carrying amounts
At 1 January 2008 74,599 127,985 202,584
At 31 December 2008/ 1 January 2009 74,561 118,846 193,407
At 31 December 2009 73,275 109,139 182,414
Notes to the Financial Statements
145Pos Malaysia Annual Report 2009
6. PREPAID LEASE PAYMENTS (continued)
The cost and carrying value of certain leasehold land and government leasehold land is not segregated from the cost and a.
carrying value of the buildings as the required information are not available from the sales and purchase agreements.
Similarly, information on unexpired lease period of less than fifty (50) years and of more than fifty (50) years is not available.
The title deeds for certain landed properties with net carrying value amounting to RM9,379,000 (2008 - RM9,610,000) have b.
yet to be issued in the name of the Company as at 31 December 2009 by the relevant authorities.
Government leasehold land and buildings:c.
Government leasehold land and buildings of RM210,799,000 (2008 - RM210,799,000) are for a lease period of sixty i.
(60) years commencing from 1 January 1992, the vesting date as stated in Note 3 to the financial statements.The cost
capitalised is in respect of the lease for the first thir ty (30) years period as stipulated in the agreement signed between
the Company and the Government. The cost in respect of the remaining thir ty (30) years lease period has not been
agreed. However, this cost will be agreed upon finalisation of the agreement with the authorities, no later than 31
December 2020, and thereafter will be recognised accordingly.
The Company is also in the process of finalising lease agreements with the authorities for additional Government ii.
leasehold land and buildings currently used by the Company, which are at present carried at nil values in the financial
statements in the absence of Government valuation for these properties. These Government leasehold land and buildings
will be recognised in the financial statements upon the valuations being finalised by the authorities.
POS MALAYSIA ANNUAL REPORT 2009
146 Pos Malaysia Annual Report 2009
7. INVESTMENT PROPERTIES
Group
2009RM’000
2008RM’000
Group
At 1 January & 31 December 15,071 15,071
Included in the above are:
Freehold Land 3,311 3,311
Leasehold land 11,760 11,760
15,071 15,071
The carrying amount of investment properties at the balance sheet date approximated their fair values.
8. INVESTMENTS IN SUBSIDIARIES
Company
2009RM’000
2008RM’000
Unquoted shares, at cost 43,990 35,490
Less Accumulated Impairment losses (2,706) (2,706)
41,284 32,784
Notes to the Financial Statements
147Pos Malaysia Annual Report 2009
8. INVESTMENT IN SUBSIDIARIES (continued)
Details of the subsidiaries are as follows:
Name of subsidiary
Country of
incorporation Principal activities
Effective
ownership interest
2009(%) 2008(%)
Datapos (M) Sdn. Bhd. MalaysiaPrinting and insertion of documents for mailing
100 100
Digicert Sdn. Bhd. Malaysia Sale of digital certificates 100 55
Pos Takaful Agency Sdn. Bhd. Malaysia Dormant 100 100
Poslaju (M) Sdn. Bhd. Malaysia Dormant 100 100
Pos Logistics-Fulserve Sdn. Bhd. ** Malaysia Dormant 100 100
Vir tual Pos Sdn. Bhd. ** Malaysia Dormant 100 100
Philately Pos Malaysia Sdn. Bhd. ** Malaysia Dormant 100 100
Pos Malaysia & Services Holdings Berhad Malaysia Investment holding 100 100
PSH Capital Partners Sdn. Bhd. Malaysia Investment holding 100 100
PSH Venture Capital Sdn. Bhd. Malaysia Investment holding 100 100
PSH Management Sdn. Bhd. ** Malaysia Dormant 100 100
PSH Properties Sdn. Bhd. Malaysia Property investment 100 100
PSH Merchandise Sdn. Bhd. ** Malaysia Dormant 100 100
PSH Allied Berhad Malaysia Dormant 100 100
PMB Properties Sdn. Bhd. Malaysia Property investment 100 100
Held by PSH Capital Partners Sdn. Bhd.
Prestige Future Sdn. Bhd. Malaysia Dormant 100 100
Held by PSH Properties Sdn. Bhd.
Real Riviera Sdn. Bhd. Malaysia Property investment 100 100
Effivation Sdn. Bhd. Malaysia Property investment 100 100
POS MALAYSIA ANNUAL REPORT 2009
148 Pos Malaysia Annual Report 2009
8. INVESTMENT IN SUBSIDIARIES (continued)
Name of subsidiary
Country of
incorporation Principal activities
Effective
ownership interest
2009(%) 2008(%)
Held by PSH Venture Capital Sdn. Bhd.
PSH Express Sdn. Bhd. Malaysia Air courier services & fulfilment business 100 100
Held by Pos Malaysia & Services Holdings Berhad
PSH Investment Holding (BVI) Ltd.* British Virgin Islands Dormant 100 100
* The investment in PSH Investment Holding (BVI) Ltd. has been consolidated based on the management financial statements
for the financial year ended 31 December 2009 as a statutory audit is not required in the British Virgin Islands.
** In the process of striking-off from the register of the Companies Commission of Malaysia
(a) During the year, the Company entered into a Share Sale Agreement with MIMOS Berhad to acquire 4,050,000 ordinary shares
of RM1.00 each in Digicert Sdn Bhd (“Digicert”) representing 45% of the issued and paid-up share capital of Digicert for a cash
consideration of RM8,500,000. Subsequently, Digicert became a wholly owned subsidiary of the Company.
Notes to the Financial Statements
149Pos Malaysia Annual Report 2009
9. INVESTMENT IN ASSOCIATES
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Unquoted shares, at cost 7,650 7,650 7,650 7,650
Less: Impairment losses (7,650) (7,650) (7,650) (7,650)
The Group discontinued equity accounting of loss in associates as the loss already exceeded the carrying amount of the
investment. As at 31 December 2009, the share of loss profits in those associates for the financial year and share of loss
cumulatively not accounted for was a profit of RM1,870,000 (2008 - a loss of RM4,839,000) and RM37,950,000 (2008 -
RM39,820,000) respectively.
GroupCountry of
incorporation
Effective Ownership
InterestRevenue(100%)
Profit /(Loss)(100%)
Total assets(100%)
Total liabilities(100%)
2009 RM’000 RM’000 RM’000 RM’000
Elpos Print Sdn. Bhd Malaysia 40.0 10,095 37 7,896 12,387
CEN Sdn. Bhd Malaysia 42.5 21,727 4,371 13,794 67,178
Pospay Exchange Sdn. Bhd Malaysia 50.0 - (7) 2,780 3,292
31,822 4,401 24,470 82,857
2008
Elpos Print Sdn. Bhd Malaysia 40.0 11,745 888 8,578 13,106
CEN Sdn. Bhd Malaysia 42.5 69,159 (12,292) 22,969 80,714
Pospay Exchange Sdn. Bhd Malaysia 50.0 25 (1,407) 2,781 5,443
80,929 (12,811) 34,328 99,263
POS MALAYSIA ANNUAL REPORT 2009
150 Pos Malaysia Annual Report 2009
10. OTHER INVESTMENTS
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Non-current
Quoted shares in Malaysia, at cost 249,562 249,562 357,343 357,343
Less: Dimunition in value (227,703) (227,703) (335,484) (335,484)
21,859 21,859 21,859 21,859
Unquoted private debt securities 190,068 190,068 190,068 190,068
Less: Amortisation of premium (3,435) (2,874) (1,273) (712)
186,633 187,194 188,795 189,356
Unquoted shares in Malaysia, at cost 2,000 12,898 - -
Less: Diminution in value (2,000) (2,000) - -
- 10,898 - -
208,492 219,951 210,654 211,215
Market value:
Quoted shares in Malaysia 35,420 21,859 35,420 21,859
Unquoted private debt securities 186,670 187,857 186,670 187,857
Current
Quoted shares in Malaysia, at cost 19,647 24,543 19,647 24,543
Less: Written down to market value (14,680) (16,900) (14,680) (16,900)
4,967 7,643 4,967 7,643
Market value:
Quoted shares in Malaysia 4,967 7,643 4,967 7,643
Notes to the Financial Statements
151Pos Malaysia Annual Report 2009
10. OTHER INVESTMENTS (continued)
During the year, the Group disposed off its investments in unquoted shares for a cash consideration of RM13,500,000 (2008-Nil).
During the year, the Group and Company disposed off quoted shares for a cash consideration of RM5,516,000 (2008- RM24,340,000).
Subsequent to year end, a quoted investee of the Group and Company, Transmile Group Berhad (“TGB”), of which the Group and Company has a direct investment of 15% shareholding, announced that it was considered a PN17 company.
The net carrying value of TGB recorded in the Group and Companys financial statements as at 31 December 2009 was RM21.9 million (based on the closing share price of TGB as at 31 December 2008 of RM0.54 per share). The closing share price as at 31 December 2009 was RM0.88 per share. The Board of Directors is of the opinion that the movement of share prices of TGB from 31 December 2008 to 31 December 2009 was temporary in nature.
As at 31 March 2010, the market value of TGB based on the closing share price on the same date was RM0.395 per share. The net tangible assets per share of TGB as at 31 December 2009 was RM0.08 per share.
Had the closing share price as at 31 March 2010 of TGB of RM0.395 per share been used to determine the fair value of the investment in the Group and Company’s financial statements as at 31 December 2009, an impairment amounting to RM5.9 million would have been provided for and the net profit of the Group and Company would have been reduced by the same amount.
On 26 March 2010, Transmile Air Services Sdn. Bhd. (“TAS”), the wholly owned subsidiary of TGB, was served with a Notice pursuant to Section 218(2)(a) of the Companies Act 1965 by Malaysian Trustee Berhad (“MTB”) in demanding the payment of the amounts owing by TAS pursuant to the Trust Deed dated 8 August 2003 entered between TAS and MTB.
There were no other material events subsequent to balance sheet date that have not been reflected in the financial statements.
POS MALAYSIA ANNUAL REPORT 2009
152 Pos Malaysia Annual Report 2009
11. INVENTORIES
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
At cost:
Postal uniforms and consumables 4,418 3,097 4,179 3,098
Pos 2020 merchandise 557 561 557 561
Insertion and mailing materials 1,638 1,003 - -
Digital certificates, CD ROM and smart cards 2,079 1,554 - -
8,692 6,215 4,736 3,659
During the financial year, inventories recognised as expenses in the income statement of the Group and of the Company amounted to RM28,516,000 (2008 - RM16,185,000) and RM20,005,000 (2008 - RM15,960,000) respectively.
Notes to the Financial Statements
153Pos Malaysia Annual Report 2009
12. RECEIVABLES, DEPOSITS AND PREPAYMENTS
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Trade
Trade receivables 125,226 137,015 98,672 117,782
Less: Allowance for doubtful debts (12,593) (14,513) (12,024) (13,908)
a 112,633 122,502 86,648 103,874
Non-trade
Other receivables 55,469 57,364 6,380 5,801
Less: Allowance for doubtful debts (15,537) (18,451) - -
39,932 38,913 6,380 5,801
Amount due from a subsidiaries b - - 121,034 122,128
Amount due from associates b 80 80 80 80
Deposits 10,386 6,616 9,369 5,773
Investment income receivables 2,945 7,643 2,130 6,196
Staff advances 11,531 3,250 11,436 2,925
64,874 56,502 150,429 142,903
117,507 179,004 237,077 246,777
POS MALAYSIA ANNUAL REPORT 2009
154 Pos Malaysia Annual Report 2009
12. RECEIVABLES, DEPOSITS AND PREPAYMENTS (continued)
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
The currency exposure profile of trade and other receivables is as follows:
Ringgit Malaysia 165,142 163,906 224,712 231,679
US Dollar 12,365 15,098 12,365 15,098
177,507 179,004 237,077 246,777
a. Trade receivables
Credit terms of trade receivables other than international
mail receivables range from thir ty (30) days to sixty (60)
days. The credit terms for international mail receivables
range from six (6) months to eighteen (18) months in
accordance with the Universal Postal Union guidelines.
Concentration of credit risk with respect to trade
receivables are limited due to the Group’s large number
of customers whereby sufficient allowance has been
made for debts that are doubtful in collection. In addition,
the Group has adopted a credit evaluation policy for all
trade receivables. Due to these factors, management
believes that no additional credit risk beyond amounts
provided for collection losses is inherent in the Group’s
trade receivables.
b. Amount due from subsidiaries and associates
The amounts due from subsidiaries and associates
are unsecured, interest free and repayable on demand.
Notes to the Financial Statements
155Pos Malaysia Annual Report 2009
13. CASH AND CASH EQUIVALENTS
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Deposits are placed with:
Licensed banks 117,904 487,654 112,000 483,000
Other financial institutions 80,738 21,100 76,638 17,000
198,642 508,754 188,638 500,000
Cash and bank balances 119,219 91,504 87,916 79,656
317,861 600,258 276,554 579,656
Included in deposits with licensed banks are cash held for the purpose of distribution of fuel rebate for the government
amounting to RM4,257,000 (2008– RM309,799,000) and collection on behalf of agencies amounting to RM131,827,000 (2008–
RM118,958,000).
Deposits, cash and bank balances are denominated in Ringgit Malaysia. The weighted average interest rates of deposits, cash and
bank balances that were effective as at balance sheet date were as follows:
Group and Company
2009 2008
% %
Deposits with licensed banks 1.95 3.16
Deposits with other financial institutions 1.70 3.00
Deposits of the Group and of the Company have maturity period ranging from 1 to 365 days (2008 - 1 to 365 days).
POS MALAYSIA ANNUAL REPORT 2009
156 Pos Malaysia Annual Report 2009
14. SHARE CAPITAL AND RESERVES
Group and Company
Amount Number of shares Amount No. of Shares
2009RM’000
2009’000
2008RM’000
2008’000
Authorised:
Ordinary shares of RM0.50 1,000,000 2,000,000 1,000,000 2,000,000
Special Rights Redeemable Preference shares of RM1 each * * * *
Issued and fully paid:
Ordinary shares of RM0.50 each
Balance at 1 January 268,513 537,026 268,369 536,738
Exercise of share option - - 144 288
Ordinary shares of RM0.50 each
Balance at 31 December 268,513 537,026 268,513 537,026
Special Rights Redeemable Preference shares of RM1 each * * * *
268,513 537,026 268,513 537,026
* Share capital includes the Special Rights Redeemable Preference Share of RM1.00.
(a) During the previous financial year, the issued and
paid up capital of the Company was increased from
RM268,369,042.50 to RM268,513,042.50 by the
issuance of 288,000 ordinary shares of RM 0.50 each by
the Company for cash by vir tue of the exercise of share
options pursuant to the Company’s Employee Share
Option Scheme (ESOS). Details of the ESOS exercised
are set out in Note 14 (c) below.
Notes to the Financial Statements
157Pos Malaysia Annual Report 2009
(b) The Special Rights Redeemable Preference Share confers
the following rights:
(i) The Special Rights Redeemable Preference Share
issued to the Government of Malaysia would enable
the Government of Malaysia through Minister of
Finance, (Incorporated) or its successors or any
Minister, representative or any person acting on behalf,
to ensure that certain major decisions affecting the
operation of the Company are consistent with the
Government’s policy. The Special Rights Redeemable
Preference shareholder is entitled to receive notices
of meetings but does not carry any right to vote at
such meetings of the Company. He also has the right
to require the Company to redeem the Special Rights
Redeemable Preference Share at par at any time.
(ii) Certain matters, in par ticular, the alteration of the
Ar ticles of Association of the Company relating
to the rights of the Special Rights Redeemable
Preference shareholder, the dissolution of the
Company, any substantial acquisitions and disposal
of assets, amalgamation, merger and takeover,
appointment of foreign directors, creation or issue
of any shares which when aggregated with all other
existing issued shares, carry ten percent of total
voting rights, require prior consent of the Special
Rights Redeemable Preference shareholder.
(iii) In a distribution of capital or a winding-up of the
Company, the Special Rights Redeemable Preference
shareholder is entitled to the repayment of the
capital paid-up on the Special Rights Redeemable
Preference Share in priority to any repayment of
capital to any other member. The Special Rights
Redeemable Preference Share does not confer
any right to par ticipate in the capital or profits of
the Company.
(c) Employees Share Option Scheme (“ESOS”)
The Company had on 31 October 2007 implemented
the ESOS upon the completion of the restructuring
exercise of Pos Malaysia & Services Holdings Berhad
(“PSH”) for the purpose of continuing the objectives
under the Pos Malaysia & Services Holdings Berhad’s
ESOS. The ESOS is governed by the ESOS Bye-laws
which were approved by the shareholders on 28
June 2007. The ESOS is in force for a period from 31
October 2007 up to 23 June 2008.
The main features of the ESOS are as follow:
(i) The maximum number of new shares of the Company
which may be made available under the ESOS shall
be 16.016 million shares, representing approximately
three per centum (3%) of the enlarged issued and
paid-up share capital of the Company after the PSH
restructuring exercise.
POS MALAYSIA ANNUAL REPORT 2009
158 Pos Malaysia Annual Report 2009
(ii) Subject to any adjustments, which may be made
under the Bye-laws, the number of the new shares of
the Company that may be offered, allotted and issued
to any of the eligible employees of the Group who
are entitled to participate in the ESOS shall be at the
discretion of the Option Committee after taking into
consideration the performance, seniority and length
of service of the eligible employees in the Group
subject to the following:
The number of the Company shares allocated, in •
aggregate, to the executive directors and senior
management of the Group shall not exceed 50%
of the total shares of the Company available under
the ESOS; and
The number of shares of the Company allocated •
to any individual executive director or employee
who, either singly or collectively through persons
connected with the employee, the executive
director (as defined in paragraph 6.30A(4)(b) of
the Listing Requirements) holds twenty per centum
(20%) or more in the issued and paid-up share
capital of the Company shall not exceed ten per
centum (10%) of the total shares of the Company
available under the ESOS.
(iii) Any eligible employee shall be eligible to participate
in the ESOS if, as at the Offer Date, such person is:
An employee or executive director, being a •
natural person who is a Malaysian citizen who
has attained the age of eighteen (18) years and
is employed full-time by and is on the payroll
of a company within the Group (other than a
company which is dormant) and who has been
confirmed and has been in the employment in the
Group for a continuous period of at least twelve
(12) months on a full time basis including service
during the probation period and is not prohibited
or disallowed by the relevant authorities from
participating in the ESOS.
(iv) The subscription price under the ESOS shall be
set at the weighted average market price of the
Company’s shares as shown in the Daily Official
List of the Bursa Malaysia Securities Berhad for
the five (5) Market Days immediately preceding
the Offer Date with an allowance for a discount of
not more than ten per centum (10%) therefrom
at the Option Committee’s discretion, (or such
other pricing mechanism as may be permitted by
the Bursa Malaysia Securities Berhad or any other
relevant regulatory authorities, from time to time)
provided that the subscription price shall in no event
be less than the par value of the Company’s share.
Notes to the Financial Statements
159Pos Malaysia Annual Report 2009
(v) The new shares of the Company to be allotted upon
any exercise of the option shall, upon allotment and
issue, rank pari passu in all respects with the existing
ordinary shares of the Company (including in respect
of voting, dividend, transfer and other rights and rights
arising on a liquidation of the Company) save and
except that the new shares of the Company will not
Details of options over the ordinary shares of the Company granted under the ESOS are as follows:
Grant date Expiry date Exercise PriceRM
Opening balance‘000
Allocated‘000
(Subscribed)‘000
(Lapsed)‘000
Closing balance‘000
3.6.2008 23.6.2008 2.03 - 525* (20.3) (504.7) -
3.6.2008 23.6.2008 1.83 - 1,590 (267.7) (1,322.3) -
* The amount has been granted in 2008 under the “Performance Share Scheme” and allocated/vested to the respective personnel
on 6 June 2008. The ESOS cost is not material to the results of the Group and Company.
rank for any dividends, rights, allotments and/or other
distributions declared for payment to the shareholders
of the Company appearing in its Register of Members
or Record of Depositors the entitlement date of
which precedes the date of allotment of the new
shares of the Company to be issued upon exercise
of the Option.
(d) Share premium reserves
This reserve comprises the premium paid on subscription of shares in the Company over and above the par value of the shares.
The movements in each category of the reserves are disclosed in the statements of changes in equity.
POS MALAYSIA ANNUAL REPORT 2009
160 Pos Malaysia Annual Report 2009
15. RETAINED EARNINGS
Subject to agreement by the Inland Revenue Board, the
Company has sufficient Section 108 tax credit and tax exempt
income to frank and distribute all of its distributable reserves
as at 31 December 2009 if paid out as dividends.
The Finance Act 2007 introduced a single tier company income
tax system with effect from year of assessment 2008. As such,
the remaining Section 108 tax credit as at 31 December 2009
16. DEFERRED TAX ASSETS AND LIABILITIES
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Opening balance (10,279) (6,960) (10,203) (7,220)
Recognised in the income statement 22 247 (3,544) 563 (3,057)
(Under)/over provision in prior years 22 (4,386) 225 (4,017) 74
Closing balance (14,418) (10,279) (13,657) (10,203)
Presented after appropriate offsetting as follows:
Deferred tax assets 85 376 - -
Deferred tax liabilities (14,503) (10,655) (13,657) (10,203)
Balance at 31 December 2009 (14,418) (10,279) (13,657) (10,203)
will be available to the Company until such time the credit is
fully utilised or upon expiry of the six-year transitional period
on 31 December 2013, whichever is earlier.
Notes to the Financial Statements
161Pos Malaysia Annual Report 2009
Deferred tax assets and liabilities are attributable to the following:
Assets Liabilities Net
2009RM’000
2008RM’000
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Group
Property, plant and equipment 1,657 1,247 (22,796) (18,800) (21,139) (17,553)
Provisions 6,721 7,274 - - 6,721 7,274
Net tax assets/ (liabilities) 8,378 8,521 (22,796) (18.,800) (14,418) (10,279)
Company
Property, plant and equipment 1,629 1,219 (21,237) (17,518) (19,608) (16,299)
Provisions 5,951 6,096 - - 5,951 6,096
Net tax assets/ (liabilities) 7,580 7,315 (21,237) (17,518) (13,657) (10,203)
16. DEFERRED TAX ASSETS AND LIABILITIES (continued)
POS MALAYSIA ANNUAL REPORT 2009
162 Pos Malaysia Annual Report 2009
16. DEFERRED TAX ASSETS AND LIABILITIES (continued)
The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as follows:
Deferred tax (liabilities)/assets of the Group:
Property, Plant and Equipment
RM’000Provisions
RM’000Total
RM’000
At 1 January 2008 (8,450) 1,490 (6,960)
Recognised in the income statement (8,392) 4,848 (3,544)
(Under)/over provision in prior years (711) 936 225
At 31 December 2008/1 January 2009 (17,553) 7,274 (10,279)
Recognised in the income statement 483 (236) 247
(Under)/over provision in prior years (4,069) (317) (4,386)
At 31 December 2009 (21,139) 6,721 (14,418)
Deferred tax (liabilities)/assets of the Company:
Property, Plant and Equipment
RM’000Provisions
RM’000Total
RM’000
At 1 January 2008 (7,887) 667 (7,220)
Recognised in the income statement (8,080) 5,023 (3,057)
(Under)/over provision in prior years (332) 406 74
At 31 December 2008/1 January 2009 (16,299) 6,096 (10,203)
Recognised in the income statement 508 55 563
(Under) provision in prior years (3,817) (200) (4,017)
At 31 December 2009 (19,608) 5,951 (13,657)
Notes to the Financial Statements
163Pos Malaysia Annual Report 2009
16. DEFERRED TAX ASSETS AND LIABILITIES (continued)
No deferred tax has been recogised for the following items:
The deductible temporary differences do not expire under the
current tax legislation. Deferred tax assets were not recognised
in respect of these items because it was not probable that future
taxable profit will be available against which the Group can utilise
the benefits there from.
The unutilised tax losses and unabsorbed capital allowances
amounting to approximately RM96,828,000. (2008 –RM97,081,000)
and RM1,887,000 (2008- RM1,887,000) will not be available to
the Group if there is substantial change in shareholders (more
than 50%).
Group
2009RM’000
2008RM’000
Unutilised tax losses 96,828 97,081
Unabsorbed capital allowances 1,887 1,887
98,715 98,968
POS MALAYSIA ANNUAL REPORT 2009
164 Pos Malaysia Annual Report 2009
17. HIRE PURCHASE CREDITORS
Hire purchase creditors are payable as follows:
Minimumlease payment
2009RM’000
Interest2009
RM’000
Principal2009
RM’000
Minimumlease payment
2008RM’000
Interest2008
RM’000
Principal2008
RM’000
Group
Less than one year 9,812 1,416 8,396 8,402 1,498 6,904
Between one and five years 25,447 1,618 23,829 29,416 2,350 27,066
35,259 3,034 32,225 37,818 3,848 33,970
Company
Less than one year 9,798 1,415 8,383 8,386 1,495 6,891
Between one and five years 25,408 1,616 23,792 29,362 2,346 27,016
35,206 3,031 32,175 37,748 3,841 33,907
The Group and Company obtained financing on motor vehicles amounting to RM34,583,000 (2008- RM41,466,000) and
RM34,529,000 (2008- RM41,391,000) under hire purchase arrangement.
Notes to the Financial Statements
165Pos Malaysia Annual Report 2009
18. PAYABLES AND ACCRUALS
Group Company
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Trade
Trade payables a 35,437 40,486 34,107 37,757
Non-Trade
Amount due to subsidiaries b - - 24,434 28,508
Amount due to associates b 835 - 835 -
Other payables and accruals:
- Unpresented postal and money orders 86,905 71,990 86,906 71,990
- Agency payables c 136,084 428,757 136,084 428,757
- Money order payables 17,142 18,264 17,142 18,264
- Service payables 26,714 31,115 23,664 27,056
- Others 2,471 - - -
Other accruals 103,483 120,964 91,593 109,575
Advances from subsidiary corporate shareholder d - 2,486 - -
Deposits received 13,141 11,407 12,333 17,026
386,775 684,983 392,991 701,176
422,212 725,469 427,098 738,933
POS MALAYSIA ANNUAL REPORT 2009
166 Pos Malaysia Annual Report 2009
18. PAYABLES AND ACCRUALS (continued)
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
The currency exposure profile of trade and other payables is as follows:
Ringgit Malaysia 409,039 712,677 413,925 726,142
US Dollar 12,650 12,241 12,650 12,241
EURO 167 172 167 172
SGD 7 60 7 59
CHF 213 166 213 166
DKK 102 102 102 102
Others 34 51 34 51
422,212 725,469 427,098 738,933
a. Trade payables
Credit terms of international mail payables of the Group
and of the Company range from six (6) months to
eighteen (18) months (2008 – 6 months to 18 months) in
accordance with the Universal Postal Union guidelines.
b. Amount due to subsidiaries and associates
The amounts due to subsidiaries and associates
are unsecured, interest free and repayable on demand.
c. Agency payables
Included in agency payables is cash held for the purpose of
fuel distribution rebate for the government amounting to
RM4,257,000 (2008 –- RM309,799,000).
d. Advances from subsidiary’s corporate shareholder
The advances from a subsidiary’s corporate shareholder
were unsecured, interest free and repayable on demand.
Notes to the Financial Statements
167Pos Malaysia Annual Report 2009
19. REVENUE
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Mail 576,850 580,405 560,009 561,686
Courier and logistic 175,389 171,666 173,243 168,901
Retail 138,968 143,583 138,968 143,584
Sale of digital certificates 10,533 25,120 - -
Rental income 821 892 - -
902,561 921,666 872,220 874,171
POS MALAYSIA ANNUAL REPORT 2009
168 Pos Malaysia Annual Report 2009
20. PROFIT/ (LOSS) BEFORE TAX
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Profit/(loss) before tax is arrived at after charging:Staff cost (excluding key management personnel)
- salaries, bonuses and allowances 405,643 404,859 397,868 397,622
- defined contribution plan 63,247 64,186 62,136 63,307
- others 36,704 38,709 35,694 37,439
Auditors’ remuneration 315 315 210 210
Rental
- office and computer equipment 4,776 1,738 4,184 929
- land and buildings 15,322 13,876 15,341 14,068
- machinery 274 118 133 105
- motor vehicles 108 72 62 26
Property, plant and equipment written off - 6 - 6
Prepaid lease written off 206 - - -
Inventories written off - 18 - -
Allowance for doubtful debts
- trade receivables 3,079 3,421 3,079 3,490
- other receivables - 18,451 - -
Allowance for diminution in value - 87,032 - 87,032
Write down of quoted shares - 10,615 - 10,615
Operating licence fee 4,368 5,176 4,368 5,176
Loss on redemption of unquoted private debt securities - - - 329
Amortisation of premium 561 660 561 660
Notes to the Financial Statements
169Pos Malaysia Annual Report 2009
20. PROFIT/ (LOSS) BEFORE TAX (continued)
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
and after crediting:
Gain on disposal of property, plant and equipment 2,404 955 2,404 975
Dividend income (gross) 149 1,011 149 1,011
Inventories written back - 276 - 294
Allowance for doubtful debts written back
- trade receivables 4,999 - 4,963 -
- other receivables 2,914 - - -
Reversal of write down of quoted shares 2,220 - 2,220 -
Bad debt recovered from subsidiaries - - - 3,392
Realised foreign exchange gain 1,264 2,405 1,268 2,405
Unrealised foreign exchange gain 514 87 514 87
Rental income 1,935 2,264 1,933 2,256
Gain on redemption of unquoted private debt securities - 24 - -
Gain on disposal of quoted shares 620 4,817 620 4,817
Gain on disposal of unquoted shares 2,602 - - -
POS MALAYSIA ANNUAL REPORT 2009
170 Pos Malaysia Annual Report 2009
21. KEY MANAGEMENT PERSONNEL COMPENSATION
The key management personnel compesation are as follows:
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Directors
- Fees 422 381 409 363
- Other emoluments 1,797 1,167 1,797 1,167
2,219 1,548 2,206 1,530
Other key management personnel
- Salaries, bonuses and allowances 3,853 3,493 3,493 3,224
- Defined contribution plan 605 487 529 417
4,458 3,980 4,022 3,641
6,677 5,528 6,228 5,171
Other key management personnel comprises persons other than the Directors of Group entities, having authority and responsibility for planning, directing and controlling the activities of the entity either directly or indirectly.
Company Group
Note2009
RM’0002008
RM’0002009
RM’0002008
RM’000
Income tax expense:
Malaysian income tax 30,786 31,024 30,479 29,796
Over provision in prior years (2,372) (1,560) (1,600) (1,542)
28,414 29,464 28,879 28,254
Deferred tax expense:
Relating to origination and reversal of temporary differences
16 (247) 3,544 (563) 3,057
Under/(over) provision in prior years 16 4,386 (225) 4,017 (74)
4,139 3,319 3,454 2,983
Total tax expense 32,553 32,783 32,333 31,237
22. TAX EXPENSE
Notes to the Financial Statements
171Pos Malaysia Annual Report 2009
22. TAX EXPENSE (continued)
A reconciliation of income tax expense applicable to profit/(loss) before taxation at the statutory income tax rate to income tax
expense at the effective income tax rate of the Group and of the Company is as follows:
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Profit/(loss) before tax 109,264 (519) 101,405 12,478
Tax calculated using Malaysian tax rate of:
- 25% (2008- 26%)* 27,316 (91) 25,351 3,244
- 20% ** - (52) - -
Tax exempt income (527) 121 (495) (150)
Effect of change in tax rate on deferred tax brought forward - (497) - (529)
Expenses not deductible for tax purposes 3,813 36,433*** 5,060 30,288***
Utilisation of previously unrecognised deferred tax assets (63) (1,346) - -
30,539 34,568 29,916 32,853
Under/(over) provision in prior years
- income tax (2,372) (1,560) (1,600) (1,542)
- deferred tax 4,386 (225) 4,017 (74)
Tax expense 32,553 32,783 32,333 31,237
* The corporate tax rate is 25% for the year of assessment 2009 (2008: 26%) and subsequent years of assessment. Consequently, deferred tax assets and liabilities are measured using this tax rate.
** With effect from year of assessment 2004, companies with paid-up capital of RM2.5 million and below at the beginning of the basis period for a year of assessment are subject to the corporate tax at 20% on chargeable income up to RM500,000. However, with effect from year of assessment 2009, the 20% tax rate will not be applicable for companies which are controlled by another company with paid up capital exceeding RM2.5 million.
*** Included in the amount of expenses not deductible for tax purposes in the previous year were impairment losses for Group and Company amounting RM116,098,000 and RM97,647,000 respectively.
POS MALAYSIA ANNUAL REPORT 2009
172 Pos Malaysia Annual Report 2009
23. EARNINGS PER SHARE
Basic earnings per share
The earnings per ordinary share for the financial year has been calculated based on the consolidated net profit for the financial
year of RM76,711,000 (2008– net loss of RM33,302,000) and on the weighted average number of ordinary shares in issue during
the financial year of 537,026,085 (2008 - 537,026,085).
24. DIVIDENDS
Dividends recognised in the current year by the Company are:
Sen
per share(net of tax)
Total amountRM’000
2009
Final dividend in respect of financial year ended 31 December 2008 7.5 40,277
The Company did not declare and pay any interim dividends in respect of the financial year ended 31 December 2009. However,
subsequent to the balance sheet date the following dividends were proposed by the Directors. These dividends will be recognised
in subsequent financial reports upon approval by the shareholders.
Sen
per share(net of tax)
Total amountRM’000
Final dividend 12.5 50,346
Notes to the Financial Statements
173Pos Malaysia Annual Report 2009
25. CAPITAL COMMITMENTS
Group Company
2009RM’000
2008RM’000
2009RM’000
2008RM’000
Property, plant and equipment
Approved and contracted for 188,392 76,518 187,880 76,194
Approved but not contracted for 198,857 292,931 193,255 281,967
387,249 369,449 381,135 358,161
26. COMMITMENTS AND CONTINGENCIES
Pursuant to the agreement entered into with Malayan i.
Banking Berhad (“MBB”) on the sale of PhileoAllied
Bank (Malaysia) Berhad and Phileo Allied Securities
Sdn. Bhd. dated 30 August 2000 (“the Share Sale
Agreement”) Pos Malaysia & Services Holdings
Berhad (“PSH”) and its subsidiary, PSH Allied
Berhad (“PSHAB”) have given certain warranties,
undertakings and obligations to MBB, which shall
continue for a period of twenty four (24) months
from the Completion Date of the agreement of 31
January 2001. Save as disclosed in Note 26 (a)(iii) to
(v) below, as at the date of the financial statements,
there are no other legal suits filed by MBB arising from
the above warranties, undertakings and obligations.
- Group and Company
For the material litigation matters identified in the ii.
Share Sale Agreement, PSH and PSHAB have agreed
to indemnify MBB to the extent of the amount stated
in the final judgement (including taxed costs and costs
of solicitors in defending the claims) if the claim for
indemnify is received by PSH and PSHAB within 4
years from the Completion Date of 31 January 2001.
(a)
POS MALAYSIA ANNUAL REPORT 2009
174 Pos Malaysia Annual Report 2009
On 18 January 2002, PSH and PSHAB (“the iii.
Defendants”) were served with a Writ of Summons
and Statement of Claim by MBB (“the Plaintiff ”)
(Kuala Lumpur High Court Civil Suit D3-22-2240-
2001). Subsequently, an Amended Writ of Summons
and Amended Statement of Claim were served on
the Defendants by the Plaintiff on 19 March 2002. The
Plaintiff claims against the Defendants for :
(1) declaration that the Defendants are in breach
of their warranties and undertakings under
the Share Sale Agreement in failing to make
specific disclosure of the condition of the loan
and security documents in relation to the credit
facility granted by Phileo Allied Credit & Leasing
Sdn. Bhd. to Salient Growth Sdn. Bhd.;
(2) a declaration that the Defendants are liable, jointly
and severally, to indemnify the Plaintiff and keep
indemnified the Plaintiff from and against all
claims, demands, damages, losses (including loss of
profit), costs, obligations, penalties, liabilities, fines
and expenses sustained by the Plaintiff in respect
of the Defendants’, or either of the Defendants’
breach referred to in (1) above;
(3) that the Plaintiff be indemnified as referred to in (2)
above and be at liberty to apply for an assessment
of the amount to be paid thereunder ;
(4) damages to be assessed;
(5) that the cost of the action be borne by the
Defendants; and
(6) such further or other reliefs as the Court deems
fit and proper.
On 30 July 2002, the Defendants’ application to strike
out Plaintiff ’s Writ of Summons was allowed with costs
by the Senior Assistant Registrar. A Notice of Appeal to
Judge In Chambers dated 6 August 2002 filed by the
Plaintiff has been dismissed with costs on 25 April 2003.
A Notice of Appeal to the Court of Appeal dated 20
May 2003 has been filed by the Plaintiff.
At the hearing on 23 July 2009 at the Court of Appeal,
the court had allowed MBB’s appeal with costs at the
Court of Appeal. The matter will now therefore proceed
to trial.
The matter has been fixed for case management before
the Judge on 5 May 2010.
On 2 April 2003, PSH and PSHAB (“Defendants”) iv.
were fur ther served with another Writ of Summons
and Statement of Claim (Kuala Lumpur High Court
Civil Suit No. D3-22-330-2003) by MBB (“the
Plaintiff ”). The Plaintiff claims against the Defendants
for the following:
(1) a declaration that the Defendants are in breach
of the warranties and undertakings under the
Share Sale Agreement in failing to make specific
disclosure of the condition of two margin
accounts maintained by Zuhrah Sentosa Sdn.
Bhd. and Ujung Prinsip Sdn. Bhd. respectively with
Mayban Securities Sdn. Bhd.
Notes to the Financial Statements
175Pos Malaysia Annual Report 2009
26. COMMITMENTS AND CONTINGENCIES (continued)
(2) a declaration that Defendants are liable, jointly
and severally to indemnify the Plaintiff and keep
indemnified the Plaintiff from and against all
claims, demands, damages, losses (including loss of
profit), costs, obligations, penalties, liabilities, fines
and expenses sustained by the Plaintiff in respect
of the Defendants’ or either of the Defendants’
breach referred to in (1) above;
(3) that the Plaintiff be indemnified as referred
to in (2) above and be at liberty to apply for
an assessment of the amount to be paid
thereunder ;
(4) special damages in the sum of RM41,790,851.83
as at 31 January 2000 with interest thereon at
the rate of 12.25% per annum from 1 February
2000 until the date of full payment;
(5) general damages;
(6) interest on the sums payable as damages;
(7) costs to be borne by the Defendants; and
(8) such further or other reliefs as the Court deems
fit and proper.
On 16 June 2004, the Defendants’ application to strike
out the Plaintiff ’s Writ of Summons was allowed with
costs by the Senior Assistant Registrar. A Notice of
Appeal to Judge In Chambers has been filed by the
Plaintiff on 24 June 2004 to appeal against the decision
of the Senior Assistant Registrar.
The same was dismissed by the learned Judge on 26 April
2005. The Plaintiff has appealed to Court of Appeal vide
Notice of Appeal dated 25 May 2005 in CA Civil Appeal
No. W-03-86-2005.
At the hearing on 23 July 2009 at the Court of Appeal,
the court had allowed MBB’s appeal with costs at the
Court of Appeal. The matter will now therefore proceed
to trial.
The matter has been fixed for case management before
the Judge on 5 May 2010.
On 2 April 2003, PSH and PSH Allied Berhad v.
(“Defendants”) were also served with a Writ of
Summons and Statement of Claim (Kuala Lumpur
High Court Civil Suit No. D3-22-331-2003) by
MBB (“the Plaintiff ”). The Plaintiff claims against the
Defendants for the following:
(1) a declaration that the Defendants are in breach
of the warranties and under takings under the
Share Sale Agreement in failing to make specific
disclosure of the action instituted by Zainuddin
bin Abu Bakar against Mayban Allied Berhad
vide Kuala Lumpur High Cour t Suit No.D2-22-
1853-2000;
POS MALAYSIA ANNUAL REPORT 2009
176 Pos Malaysia Annual Report 2009
(2) a declaration that the Defendants are liable,
jointly and severally, to indemnify the Plaintiff
and keep indemnified the Plaintiff from and
against all claims, demands, damages, losses
(including loss of profit), costs, obligations,
penalties, liabilities, fines and expenses sustained
by the Plaintiff in respect of the Defendants’ or
either of the Defendants’ breach referred to in
(1) above;
(3) that the Plaintiff be indemnified as referred
to in (2) above and be at liber ty to apply
for an assessment of the amount to be
paid thereunder ;
(4) special damages in the sum of RM6,021,462
with interest thereon at the rate of 8% per
annum from 3 October 2000 until the date of
full payment;
(5) general damages;
(6) interest on the sums payable as damages;
(7) costs to be borne by the Defendants; and
(8) such fur ther or other reliefs as the Cour t
deems fit and proper.
On 16 June 2004, the Defendants’ application to strike
out Plaintiff ’s Writ of Summons was allowed with costs
by the Senior Assistant Registrar. A Notice of Appeal to
Judge In Chambers has been filed by the Plaintiff on 24
June 2004 to appeal against the decision of the Senior
Assistant Registrar.
The same was dismissed by the learned Judge on 26
April 2005. The Plaintiff has appealed to Court of Appeal
vide Notice of Appeal dated 25 May 2005 in CA Civil
Appeal No. W-03-87-2005
At the hearing on 23 July 2009 at the Court of Appeal,
the court had allowed MBB’s appeal with costs at the
Court of Appeal. The matter will now therefore proceed
to trial.
The matter has been fixed for case management before
the Judge on 5 May 2010
The Company has given financial suppor t to cer tain
subsidiaries to meet all their liabilities due within the
next 12 months.
(b)
Notes to the Financial Statements
177Pos Malaysia Annual Report 2009
27. SEGMENTAL REPORTING
The Group has three reportable segments, as described below, which are the Group’s strategic business units. The strategic
business units offer different products and services and are managed separately because they require different business processes
and customer needs. The following summary describes the operations in each of the Group’s reportable segments:
Mail•
Includes the provision of basic mail services for corporate and individual customers and
customised solutions such as Mailroom Management, Direct Mail and hybrid mail which
provides Data and Document Processing services.
Courier and logistic• Includes logistics and courier solutions by sea, air and land to both national and
international destinations.
Retail• Includes over-the-counter services for payment of bills and certain financial products and
services.
Other operations include the business of internet security
products, solutions and services and rental income from
investment properties held by the Group. None of these
segments meets any of the quantitative thresholds for
determining reportable segments in 2009 and 2008.
There are varying levels of integration between the Mail
reportable segment and the Courier and Logistics reportable
segments. This integration includes shared distribution
services. The accounting policies of the reportable segments
are the same as described in note 2(s).
Information regarding the operations of each reportable
segment is included below. Performance is measured based
on segment results. Segment results is used to measure
performance as management believes that such information
is the most relevant in evaluating the results of certain
segments relative to other entities that operate within these
industries. Inter-segment pricing is determined on an arm’s
length basis.
POS MALAYSIA ANNUAL REPORT 2009
178 Pos Malaysia Annual Report 2009
Year Ended 31 December 2009Mail
Courier& Logistic Retail Others Elimination Group
Revenue
Total external revenue 576,850 175,389 138,968 11,354 - 902,561
Intersegment revenue 20,409 353 (765) 9,394 (29,391) -Total revenue for reportable segments 597,259 175,742 138,203 20,748 (29,391) 902,561
Reportable segment results 85,822 13,148 (18,363) 2,151 (405) 82,353
Other unallocated income 26,911Profit before taxation 109,264
Reportable segments assets 265,998 97,689 187,209 147,416 (49,852) 648,460
Other unallocated assets 626,127Total assets 1,274,587
Reportable segment liabilities 48,857 17,064 136,443 896 - 203,260
Other unallocated liabilities 271,734Total liabilities 474,994
Other information
Capital expenditure
- Property, plant & equipment 44,829 6,164 28,455 253 (1,112) 78,589
Depreciation and amortisation 24,976 12,244 10,336 1,763 (364) 48,955
Interest income - - - - - (12,860)
Interest expense 976 748 81 - - 1,805
Allowance for impairment in valuewritten back
- - - - - 5,134
Taxation - - - - - 32,553
Notes to the Financial Statements
179Pos Malaysia Annual Report 2009
Year Ended 31 December 2008Mail
Courier& Logistic Retail Others Elimination Group
Revenue
Total external revenue 580,405 171,666 143,583 26,012 - 921,666
Intersegment revenue 13,669 459 (748) 858 (14,238) -Total revenue for reportable segments 594,074 172,125 142,835 26,870 (14,238) 921,666
Reportable segment results 83,979 15,217 (17,833) 7,561 (2,695) 86,229
Other unallocated expenses (86,748)Loss before taxation (519)
Reportable segments assets 243,986 97,140 186,954 101,029 - 629,109
Other unallocated assets 908,732Total assets 1,537,841
Reportable segment liabilities 53,069 18,986 429,661 1,497 - 503,213
Other unallocated liabilities 267,598Total liabilities 770,811
Other information
Capital expenditure
- Property, plant & equipment 30,217 32,002 40,784 3,761 - 106,764
Depreciation and amortizsation 20,834 9,008 9,275 1,695 (345) 40,467
Interest income - - - - - (18,919)
Interest expense 383 385 65 - - 833
Allowance for impairment in valuewritten back
- - - - - 116,098
Taxation - - - - - 32,783
POS MALAYSIA ANNUAL REPORT 2009
180 Pos Malaysia Annual Report 2009
28. SIGNIFICANT RELATED PARTY TRANSACTIONS
For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.
Key management personnel are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Group either directly or indirectly. The key management personnel includes all the Directors of the Group, and certain members of senior management of the Group.
Transactions with government departments and agencies or with entities providing public utilities are entered at arms length by vir tue of their normal dealings as a public utility or a government department and agency.
Group
2009
RM’0002008
RM’000
Purchase of paper based supplies from an associate company:
Elpos Print Sdn. Bhd. 7,160 9,679
Information regarding outstanding balances arising from related party transactions are disclosed in Note 12 and Note 18 to the financial statements.
There are no allowances for doubtful debts being provided in respect of these balances outstanding at year end at 31 December 2009 and 2008 and no allowances for doubtful debts made during the year and the previous year as the balances are amount payable to related parties.
Notes to the Financial Statements
181Pos Malaysia Annual Report 2009
29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
Financial risk management objectives and policies
The Group’s and the Company’s activities expose it to a variety of financial risk, including foreign currency exchange risk, interest rate risk, credit risk, liquidity and cash flow risk. The Group’s and the Company’s overall financial risk management objective is to ensure the continuous growth in profitability and enhance shareholders’ value in a competitive and changing environment. At the same time, the Group and the Company is focused in performing its Universal Service Obligation as a provider of postal service throughout the country and to international destinations in an efficient and effective manner.
Foreign currency risk
The Group and the Company is exposed to currency exchange risk as a result of providing foreign mail exchange service and remittance service. However the material portion of the exposure is in US Dollar and the Group and the Company ensures that the net exposure is kept to an acceptable level by monitoring the fluctuation of the foreign currency.
Interest rate risk
The Group’s and the Company’s income and operating cash flows are substantially independent of the changes in market interest rate except for the Group’s and the Company’s investment in fixed-rate debt securities which are exposed to a risk of change in their fair value due to
changes in interest rates. The Group’s and the Company’s short term deposits are placed at fixed rate investments which management endeavours to obtain the best rate available in the market.
Credit risk
The Group and the Company seeks to control credit risk by setting counter party limits and ensuring that services are made to customers with an appropriate credit history. The trade receivables are all collectable and adequate allowance for bad and doubtful debts are provided for.
At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet.
Liquidity and cash flow risk
Prudent liquidity risk management implies maintaining sufficient liquid assets to meet financial commitments and obligations when they fall due at a reasonable cost. The Group and the Company ensures that liquidity requirements are met and surplus is within limits set to avoid liquidity surpluses which may result in loss of income opportunities.
POS MALAYSIA ANNUAL REPORT 2009
182 Pos Malaysia Annual Report 2009
STATEMENT BY DIRECTORS PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965
In the opinion of the Directors, the financial statements set out on pages 5 to 68 are drawn up in accordance with Financial
Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of
the Group and of the Company as of 31 December 2009 and of their financial performance and cash flows for the year
then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat
Dato’ Syed Faisal Albar bin Syed A.R Albar
Date: 31 March 2010
Notes to the Financial Statements
183Pos Malaysia Annual Report 2009
STATUTORY DECLARATION PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
I, Mohd Lutfi bin Mat Lazim, the officer primarily responsible for the financial management of Pos Malaysia Berhad, do
solemnly and sincerely declare that the financial statements set out on pages 5 to 68 are, to the best of my knowledge
and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by vir tue of the
provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the above named in Kuala Lumpur on
Mohd Lutfi bin Mat Lazim
Before me:
POS MALAYSIA ANNUAL REPORT 2009
184 Pos Malaysia Annual Report 2009
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF POS MALAYSIA BERHAD
Report on the Financial Statements
We have audited the financial statements of Pos Malaysia
Berhad, which comprise the balance sheets as at 31
December 2009 of the Group and of the Company,
and the income statements, statements of changes in
equity and cash flow statements of the Group and of
the Company for the year then ended, and a summary
of significant accounting policies and other explanatory
notes, as set out on pages 5 to 68.
Directors’ Responsibility for the Financial Statements
The Directors of the Company are responsible for
the preparation and fair presentation of these financial
statements in accordance with Financial Reporting
Standards and the Companies Act, 1965 in Malaysia.
This responsibility includes: designing, implementing and
maintaining internal control relevant to the preparation
and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error ;
selecting and applying appropriate accounting policies;
and making accounting estimates that are reasonable in
the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these
financial statements based on our audit. We conducted
our audit in accordance with approved standards on
auditing in Malaysia. Those standards require that we
comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit
evidence about the amounts and disclosures in the
financial statements. The procedures selected depend
on our judgment, including the assessment of risks
of material misstatement of the financial statements,
whether due to fraud or error. In making those risk
assessments, we consider internal control relevant to
the Company’s preparation and fair presentation of the
financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the Company’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by
the Directors, as well as evaluating the overall presentation
of the financial statements.
Notes to the Financial Statements
185Pos Malaysia Annual Report 2009
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF POS MALAYSIA BERHAD
In our opinion, the accounting and other records and a. the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.
Theb. subsidiar y in respect of which we have not acted as auditors are identified in Note 7 of which was consolidated using its management financial statements.
Wec. are satisfied that the accounts of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes.
Thed. audit reports on the accounts of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2009 and of their financial performance and cash flows for the year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
POS MALAYSIA ANNUAL REPORT 2009
186 Pos Malaysia Annual Report 2009
KPMG Mohamed Raslan Abdul RahmanFirm Number : AF 0758 Approval Number : 1825/05/11(J/PH)Chartered Accountants Chartered Accountant
Petaling Jaya, Date: 31 March 2010
Notes to the Financial Statements
187Pos Malaysia Annual Report 2009
POS MALAYSIA ANNUAL REPORT 2009
188 Pos Malaysia Annual Report 2009
Top 10 Properties
1. Alienated Land Shah Alam HS(D) 98478, PT No 1 Sek 21, Bandar Shah Alam, District of Petaling Jaya,State of Selangor
PMB Properties Sdn Bhd MPC Section 21 Shah Alam/Double Storey Office Building, 2 units of 1 ½ Storey Factory Buidling, etc
Leasehold 99 years(remaining 85 years) /expiring 19/7/2094
90,071.82 sq mt 500,000 sq.ft. 71,064,000 70,858,040
2. Building Pej Pos Besar Kuala Lumpur
HS(D) 49280, PT 46 Sek 70, Bandar Kuala Lumpur,District of Kuala Lumpur,State of Wilayah Persekutuan, KL
Pesuruhjaya Tanah Persekutuan
General Post Office / Eight Storey Building
Leasehold 99 years (expiring 27/01/2079) / Approximately 25 years
8,496 sq mt (91,453 sq ft)
44,519 sq mt 60,000,000 31,224,489.43
3. Alienated Land Mail and Courier Complex
Mukim of Sepang,District of Sepang,State of Selangor
Malaysia Airports (Sepang) Sdn Bhd
Mail and Courier Complex Concession 36,950 sq. mt 201,600 sq. ft. 34,277,932.04 21,744,279.05
4. Alienated Land Ipoh Pajakan Negeri 155068for Lot 2436N, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2893) /Acquired 26/09/1997
14,102sq ft (1,310.1677 mp)
Not applicable 3,262,660 15,071,000
Alienated Land Ipoh Pajakan Negeri 155069for Lot 2437N, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2893) /Acquired 26/09/1997
15,328 sq ft (1,423.9853 mp)
Not applicable 2,804,939
Alienated Land Ipoh Pajakan Negeri 4738 for Lot 31448, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 24/03/2895) / Acquired 25/09/1997
29,294sq ft (2,721.5066 mp)
Not applicable 4,741,831
Alienated Land Ipoh Pajakan Negeri 153337 for Lot 35120, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 24/03/2895) / Acquired 01/10/1997
23,985 sq ft (2,228.2968 mp)
Not applicable 3,550,000
Alienated Land Ipoh Pajakan Negeri 153721for Lot 2351N, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2883) / Acquired 23/06/1998
16,144 sq ft Not applicable
No Type Location Subject PropertyRegistered/ Beneficial Owner
Existing Use/ Description
189Pos Malaysia Annual Report 2009
1. Alienated Land Shah Alam HS(D) 98478, PT No 1 Sek 21, Bandar Shah Alam, District of Petaling Jaya,State of Selangor
PMB Properties Sdn Bhd MPC Section 21 Shah Alam/Double Storey Office Building, 2 units of 1 ½ Storey Factory Buidling, etc
Leasehold 99 years(remaining 85 years) /expiring 19/7/2094
90,071.82 sq mt 500,000 sq.ft. 71,064,000 70,858,040
2. Building Pej Pos Besar Kuala Lumpur
HS(D) 49280, PT 46 Sek 70, Bandar Kuala Lumpur,District of Kuala Lumpur,State of Wilayah Persekutuan, KL
Pesuruhjaya Tanah Persekutuan
General Post Office / Eight Storey Building
Leasehold 99 years (expiring 27/01/2079) / Approximately 25 years
8,496 sq mt (91,453 sq ft)
44,519 sq mt 60,000,000 31,224,489.43
3. Alienated Land Mail and Courier Complex
Mukim of Sepang,District of Sepang,State of Selangor
Malaysia Airports (Sepang) Sdn Bhd
Mail and Courier Complex Concession 36,950 sq. mt 201,600 sq. ft. 34,277,932.04 21,744,279.05
4. Alienated Land Ipoh Pajakan Negeri 155068for Lot 2436N, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2893) /Acquired 26/09/1997
14,102sq ft (1,310.1677 mp)
Not applicable 3,262,660 15,071,000
Alienated Land Ipoh Pajakan Negeri 155069for Lot 2437N, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2893) /Acquired 26/09/1997
15,328 sq ft (1,423.9853 mp)
Not applicable 2,804,939
Alienated Land Ipoh Pajakan Negeri 4738 for Lot 31448, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 24/03/2895) / Acquired 25/09/1997
29,294sq ft (2,721.5066 mp)
Not applicable 4,741,831
Alienated Land Ipoh Pajakan Negeri 153337 for Lot 35120, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 24/03/2895) / Acquired 01/10/1997
23,985 sq ft (2,228.2968 mp)
Not applicable 3,550,000
Alienated Land Ipoh Pajakan Negeri 153721for Lot 2351N, Town of Ipoh, Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2883) / Acquired 23/06/1998
16,144 sq ft Not applicable
Tenure/ Age of Building Land Area Gross Floor Area
Cost of Purchase/ Lease Amount (RM)
Net Book Value (RM)as of 31 December 2009
POS MALAYSIA ANNUAL REPORT 2009
190 Pos Malaysia Annual Report 2009
Top 10 Properties
4. Alienated Land Ipoh GRN 55283 for lot 31449Town of Ipoh,Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Freehold Acquired 31/10/1997
32,398 sq ft (3,009.8447 mp)
Not applicable 2,980,593
Alienated Land Ipoh Pajakan Negeri 155073 for Lot 2740N, Town of Ipoh,Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2893) / Acquired 20/11/1997
16,226 sq ft (1,507.4516 mp)
Not applicable 3,739,742
5. Registered Land Bukit Raja HS(D) 56783, PT 27615,Mukim of Kapar,District of Klang,State of Selangor
Pos Malaysia Berhad Mail Centre and Office / Warehouse with attached three storey office
Freehold / Approximately 12 years
8,809 sq mt �60,465 sq ft 10,300,000 13,928,628.72
6. Registered Land Larkin HS(D) 109201, PT TLO 682, Bandar Johor Bahru,District of Johor Bahru,State of Johor
Pos Malaysia Berhad Mail Centre, Johor Bahru/ a Single Storey detached Warehouse with a double storey office annex and a Single storey detached office block and detached warehouse, etc
Leasehold 60 years (expiring 15/12/2021) / Not available
20,234 sq mt 6,600.82 sq mt 10,300,000 13,544,802.28
7. Building Persiaran Greenhill
Refer notes Real Riviera Sdn Bhd Office Building/7 Storey Building
Leasehold 84 to 900 years expiring as per note below- Approximately 14 years Acquired 2/8/1994
6,840 sq ft 34,190 sq ft 9,556,461 7,352,656.26
8. Alienated Land Kota Kinabalu
Town Lease 017542746 Lot 017542746 Location ofKota Kinabalu Town District ofKota Kinabalu, State of Sabah
Pesuruhjaya Tanah Persekutuan
Post Office / Eleven Storey Building
Leasehold 99 years (expiring 31/12/2074) / Approximately 23 ½ years
6,728.55 sq mt �145,083 sq ft 12,146,000 6,320,877.14
No Type Location Subject PropertyRegistered/ Beneficial Owner
Existing Use/ Description
Cont.
191Pos Malaysia Annual Report 2009
4. Alienated Land Ipoh GRN 55283 for lot 31449Town of Ipoh,Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Freehold Acquired 31/10/1997
32,398 sq ft (3,009.8447 mp)
Not applicable 2,980,593
Alienated Land Ipoh Pajakan Negeri 155073 for Lot 2740N, Town of Ipoh,Daerah Kinta,Perak Darul Ridzuan
Effivation Sdn Bhd Vacant Land Leasehold 999 Years (expiring on 30/12/2893) / Acquired 20/11/1997
16,226 sq ft (1,507.4516 mp)
Not applicable 3,739,742
5. Registered Land Bukit Raja HS(D) 56783, PT 27615,Mukim of Kapar,District of Klang,State of Selangor
Pos Malaysia Berhad Mail Centre and Office / Warehouse with attached three storey office
Freehold / Approximately 12 years
8,809 sq mt �60,465 sq ft 10,300,000 13,928,628.72
6. Registered Land Larkin HS(D) 109201, PT TLO 682, Bandar Johor Bahru,District of Johor Bahru,State of Johor
Pos Malaysia Berhad Mail Centre, Johor Bahru/ a Single Storey detached Warehouse with a double storey office annex and a Single storey detached office block and detached warehouse, etc
Leasehold 60 years (expiring 15/12/2021) / Not available
20,234 sq mt 6,600.82 sq mt 10,300,000 13,544,802.28
7. Building Persiaran Greenhill
Refer notes Real Riviera Sdn Bhd Office Building/7 Storey Building
Leasehold 84 to 900 years expiring as per note below- Approximately 14 years Acquired 2/8/1994
6,840 sq ft 34,190 sq ft 9,556,461 7,352,656.26
8. Alienated Land Kota Kinabalu
Town Lease 017542746 Lot 017542746 Location ofKota Kinabalu Town District ofKota Kinabalu, State of Sabah
Pesuruhjaya Tanah Persekutuan
Post Office / Eleven Storey Building
Leasehold 99 years (expiring 31/12/2074) / Approximately 23 ½ years
6,728.55 sq mt �145,083 sq ft 12,146,000 6,320,877.14
Tenure/ Age of Building Land Area Gross Floor Area
Cost of Purchase/ Lease Amount (RM)
Net Book Value (RM)as of 31 December 2009
POS MALAYSIA ANNUAL REPORT 2009
192 Pos Malaysia Annual Report 2009
Top 10 Properties
9. Registered Land Bangi HS(D) 52880, PT 41029, Bandar Baru Bangi, District of Hulu Langat, State of Selangor
Pos Malaysia Berhad Mail Centre / Warehouse with attached office ( 2 Units)
Leasehold 99 years expiring 19/08/2098 / Approximately 9 years
6267 sq mt (1.5486 acres)
22,000 sq ft 2,800,000 5,975,869.41
Registered Land Bangi HS(D) 52881, PT 41030, Bandar Baru Bangi, District of Hulu Langat, State of Selangor
Leasehold 99 years expiring 19/08/2098 / Approximately 9 years
4,206 sq mt (1.0393 acres)
22,000 sq ft 2,400,000
10. Building Jalan Damansara
Unit Nos. F108, F110, F111, F112, F113, F208, F210, F211, F212 & F213, Phileo Damansara, Jalan Damansara, Petaling Jaya, State of Selangor
PSH Properties Sdn .Bhd Office and Commercial units Freehold - 15,509 sq ft 7,694,004.63 7,205,277.82
Notes:-
* HS(D) Ka 21276 PT 18020 99 years expiring on 20/12/2078
* HS(D) Ka 7533/79 PT 18021 99 years expiring on 20/12/2078
* HS(D) Ka 7534/79 PT 18022 99 years expiring on 20/12/2078
* PN 101760 Lot 8619 N 999 years expiring on 21/09/2894
* PN 101761 Lot 8620 N 999 years expiring on 21/09/2894
* PN 101762 Lot 8621 N 999 years expiring on 21/09/2894
No Type Location Subject PropertyRegistered/ Beneficial Owner
Existing Use/ Description
193Pos Malaysia Annual Report 2009
9. Registered Land Bangi HS(D) 52880, PT 41029, Bandar Baru Bangi, District of Hulu Langat, State of Selangor
Pos Malaysia Berhad Mail Centre / Warehouse with attached office ( 2 Units)
Leasehold 99 years expiring 19/08/2098 / Approximately 9 years
6267 sq mt (1.5486 acres)
22,000 sq ft 2,800,000 5,975,869.41
Registered Land Bangi HS(D) 52881, PT 41030, Bandar Baru Bangi, District of Hulu Langat, State of Selangor
Leasehold 99 years expiring 19/08/2098 / Approximately 9 years
4,206 sq mt (1.0393 acres)
22,000 sq ft 2,400,000
10. Building Jalan Damansara
Unit Nos. F108, F110, F111, F112, F113, F208, F210, F211, F212 & F213, Phileo Damansara, Jalan Damansara, Petaling Jaya, State of Selangor
PSH Properties Sdn .Bhd Office and Commercial units Freehold - 15,509 sq ft 7,694,004.63 7,205,277.82
Notes:-
* HS(D) Ka 21276 PT 18020 99 years expiring on 20/12/2078
* HS(D) Ka 7533/79 PT 18021 99 years expiring on 20/12/2078
* HS(D) Ka 7534/79 PT 18022 99 years expiring on 20/12/2078
* PN 101760 Lot 8619 N 999 years expiring on 21/09/2894
* PN 101761 Lot 8620 N 999 years expiring on 21/09/2894
* PN 101762 Lot 8621 N 999 years expiring on 21/09/2894
Tenure/ Age of Building
Cost of Purchase/ Lease Amount (RM)
Net Book Value (RM)as of 31 December 2009
194 Pos Malaysia Annual Report 2009
Authorised Capital: RM1,000,000,001.00 divided into 2,000,000,000 ordinary shares of RM0.50 each and 1 Special
Rights Redeemable Preference Share of RM1.00
Issued and full paid-up capital: RM268,513,043.50 comprising 537,026,085 ordinary shares of RM0.50 each and one (1) Special
Rights Redeemable Preference Share of RM1.00
Voting Rights: One vote for every ordinary share
(The Special Rights Redeemable Preference Share does not carry any voting rights except in
circumstances set out in the Company’s Articles of Association)
No. Shareholders: 25,673
Substantial Shareholders
Direct Indirect
Shareholders No. of shares % No. of shares %
1. Khazanah Nasional Berhad 172,997,399 32.21 - -
2. Employees Provident Fund Board 51,507,400 9.59 - -
3. Permodalan Nasional Berhad 45,395,300 8.45
4. Amanahraya Trustees BerhadSkim Amanah Saham Bumiputera
43,907,400 8.18
5. Aberdeen Asset Management PLC and its subsidiaries 42,244,600 * 7.87 - -
6. Aberdeen Asset Management Asia Limited 31,451,900 * 5.86 - -
7. Minister of Finance (Inc.) - - 172,997,399 (a) 32.21
8. Yayasan Pelaburan Bumiputra - - 45,395,300 (b) 8.45
9. Credit Suisse Group AG - - 46,144,600 (c) 8.59
10. Mitsubishi UFJ Financial Group, Inc - - 42,244,600 (d) 7.87
Notes:* Includes holdings of mandates delegated from other subsidiaries of Aberdeen Asset Management PLC.(a) Deemed interested through Khazanah Nasional Berhad.(b) Deemed interested through Permodalan Nasional Berhad. (c) Deemed interested through Aberdeen Asset Management PLC and its subsidiaries and Credit Suisse Securities (USA) LLC. (d) Deemed interested through its wholly-owned subsidiary, Mitsubishi UFJ Trust & Banking Corp, holding more than 15% in Aberdeen Asset Management PLC.
Analysis of Shareholdings as at 15 March 2010
195Pos Malaysia Annual Report 2009
Distribution of Shareholdings
Holdings No. of Shares
% of Issued Share Capital
No. of Shareholders/Depositors
% of Shareholders/Depositors
Less than 100 266,928 0.05 5,767 22.46
100 to 1,000 6,149,880 1.15 9,631 37.51
1,001 to 10,000 31,921,764 5.94 8,791 34.24
10,001 to 100,000 35,288,078 6.57 1,344 5.24
100,001 to 26,851,303 149,591,936 27.86 136 0.53
26,851,304 and above 313,807,499 58.43 4 0.02Total 537,026,085 100.00 25,673 100.00
30 Largest Registered Shareholders
No. Name No. of Shares Percentage (%)
1 Khazanah Nasional Berhad 172,997,399 32.21
2 Employees Provident Fund Board 51,507,400 9.59
3 Permodalan Nasional Berhad 45,395,300 8.45
4 Amanahraya Trustees BerhadSkim Amanah Saham Bumiputera
43,907,400 8.18
5 HSBC Nominees (Asing) Sdn BhdBNP Paribas Securities Services Lux for Aberdeen Global
15,149,100 2.82
6 CIMSEC Nominees (Tempatan) Sdn BhdPrima Pegun Sdn Bhd
14,570,332 2.71
7 Valuecap Sdn Bhd 10,098,500 1.90
8 HSBC Nominees (Asing) Sdn BhdExempt An For JPMorgan Chase Bank, National Association (Bermuda)
10,000,000 1.86
9 HSBC Nominees (Asing) Sdn BhdRBS Coutts Sg for Glenmorgan Company Inc
6,130,000 1.14
10 Pertubuhan Keselamatan Sosial 5,592,400 1.04
POS MALAYSIA ANNUAL REPORT 2009
196 Pos Malaysia Annual Report 2009
11 Cartaban Nominees (Asing) Sdn BhdState Street London Fund XCB9 for Aberdeen Asian Smaller Companies Investment Trust Plc
5,500,000 1.02
12 HSBC Nominees (Asing) Sdn Bhd Exempt An for JPMorgan Chase Bank, National Association (Norges Bk Lend)
4,412,000 0.82
13 Mayban Nominees (Tempatan) Sdn BhdAberdeen Asset Management Sdn Bhd for Kumpulan Wang Persaraan (Diperbadankan) (FD 1- 280305)
4,320,400 0.80
14 HSBC Nominees (Asing) Sdn BhdExempt An for BNP Paribas Securities Services (Singapore-SGD)
4,183,900 0.78
15 Cartaban Nominees (Asing) Sdn BhdState Street London Fund XCP2 for Aberdeen Asian Income Fund Limited
4,000,000 0.74
16 Cartaban Nominees (Asing) Sdn BhdCredit Suisse Securities (USA) LLC (FIRM)
3,750,000 0.70
17 Citigroup Nominees (Asing) Sdn BhdCBNY for Dimensional Emerging Markets Value Fund
3,546,617 0.66
18 Mayban Nominees (Tempatan) Sdn BhdAberdeen Asset Management Sdn Bhd for the Employees’ Provident Fund Board (250416)
3,276,800 0.61
19 Amsec Nominees (Tempatan) Sdn Bhd Aberdeen Asset Management Sdn Bhd for TenagaNasional Berhad Retirement Benefit Trust Fund(FM-Aberdeen)
2,836,500 0.53
20 Amanahraya Trustees BerhadPublic Islamic Select Treasures Fund
2,247,600 0.42
21 Affin Nominees (Asing) Sdn BhdUOB Kay Hian Pte Ltd for Cheng Good Hiang
2,060,000 0.38
22 Mayban Nominees (Tempatan) Sdn BhdMayban Investment Management Sdn Bhd for Kumpulan Wang Simpanan Pekerja (N14011980810)
2,000,000 0.37
23 Amanahraya Trustees BerhadPublic Islamic Opportunities Fund
1,899,500 0.35
24 HSBC Nominees (Asing) Sdn BhdExempt An For JPMorgan Chase Bank, National Association(Guernsey)
1,830,000 0.34
Analysis of Shareholdings as at 15 March 2010
197Pos Malaysia Annual Report 2009
25 Amanahraya Trustees BerhadPublic Islamic Asia Dividend Fund
1,651,600 0.31
26 HSBC Nominees (Asing) Sdn BhdExempt An For Danske Bank A/S (Client Holdings)
1,590,200 0.30
27 Amanahraya Trustees BerhadPublic Islamic Dividend Fund
1,536,400 0.29
28 HLG Nominee (Asing) Sdn BhdHong Leong Fund Management Sdn Bhd for Asia Fountain Investment Company Limited
1,500,000 0.28
29 Kumpulan Wang Simpanan Pekerja 1,500,000 0.28
30 HSBC Nominess (Asing) Sdn BhdExempt An For UBS AG
1,300,000 0.24
Total 430,289,348 80.12
Directors’ Shareholdings as per the Register of Directors’ Shareholdings as at 15 March 2010
Name of Directors Direct Interest % Indirect Interest %
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat - - - -
Dato’ Ibrahim Mahaludin bin Puteh - - - -
Dato’ Syed Faisal Albar bin Syed A.R Albar - - - -
Datuk Low Seng Kuan - - - -
Dato’ Krishnan a/l Chinapan - - - -
Puan Sri Datuk Nazariah binti Mohd Khalid - - - -
Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor - - - -
Wee Hoe Soon @ Gooi Hoe Soon - - - -
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin - - - -
Abdul Hamid bin Sh Mohamed - - - -
Eshah binti Meor Sulaiman - - - -
Haizan bin Mohd Khir Johari - - - -
198 Pos Malaysia Annual Report 2009
Notice of 18th Annual General Meeting
NOTICE IS HEREBY GIVEN THAT
the 18th Annual General Meeting of
Pos Malaysia Berhad will be held at
The Legend Grand Ballroom,
Legend Hotel Kuala Lumpur,
Level 9, Putra Place, 100 Jalan Putra,
50350 Kuala Lumpur
on Wednesday, 12 May 2010
at 10.00 a.m. for the following
purposes:
As Ordinary Business:To1. receive the Audited Financial Statements for the financial year ended 31
December 2009 and the Reports of the Directors and Auditors thereon.
Please refer to Note A.
To 2. declare a first and final dividend of 12.5 sen per ordinary share less 25% tax
in respect of the financial year ended 31 December 2009.
To3. re-elect the following Directors who retire by rotation pursuant to
Article 115 of the Company’s Articles of Association, and who being eligible,
offered themselves for re-election :
To4. re-elect the following Directors who retire pursuant to Article 110
of the Company’s Articles of Association, and who being eligible, offered
themselves for re-election :
To5. re-appoint Messrs KPMG as Auditors of the Company for the ensuing
year and to authorise the Directors to fix their remuneration.
(a) Puan Sri Datuk Nazariah binti Mohd Khalid (Ordinary Resolution 2)
(b) Wee Hoe Soon @ Gooi Hoe Soon (Ordinary Resolution 3)
(c) Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin (Ordinary Resolution 4)
(Ordinary Resolution 1)
(a) Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor (Ordinary Resolution 5)
(b) Haizan bin Mohd Khir Johari (Ordinary Resolution 6)
(Ordinary Resolution 7)
199Pos Malaysia Annual Report 2009
As Special Business:To consider and, if thought fit, pass the following resolution,
with or without modifications, as ordinary resolution:
6. Directors’ Fees
“That the payment of the Directors’ Fees of RM409,232
for the financial year ended 31 December 2009 be hereby
approved.”
7. To transact any other business of which due notice has
been given in accordance with the Companies Act, 1965
and the Company’s Articles of Association.
(Ordinary Resolution 8)
Notice of Book Closure and Notice of Dividend Entitlement and Payment:NOTICE IS ALSO HEREBY GIVEN THAT the first and final
dividend of 12.5 sen per ordinary share less 25% tax in
respect of the financial year ended 31 December 2009, if
approved by the shareholders at the 18th Annual General
Meeting, will be paid on 11 June 2010 to shareholders whose
names appear in the Register of Members or Record of
Depositors at the close of business on 20 May 2010.
A Depositor shall qualify for entitlement to the dividend only
in respect of:
By Order of the Board,
Sabrina Albakri binti Abu Bakar (LS8508) Company SecretaryKuala Lumpur, 20 April 2010
shares a. deposited into the Depositor’s securities account
before 12.30 p.m. on 18 May 2010 in respect of securities
exempted from mandatory deposit;
sharesb. transferred into the Depositor’s securities account
before 4.00 p.m. on 20 May 2010 in respect of ordinary
transfers; and
sharesc. bought on the Bursa Malaysia Securities Berhad on
a cum entitlement basis according to the Rules of Bursa
Malaysia Securities Berhad.
POS MALAYSIA ANNUAL REPORT 2009
200 Pos Malaysia Annual Report 2009
Note A:
This agenda item is meant for discussion only as the provision
of Section 169(1) of the Companies Act 1965 does not require
a formal approval of the shareholders and hence is not put
forward for voting.
Notes:
A1. member entitled to attend and vote is entitled to appoint a proxy to
attend and vote in his/her stead. A member may appoint a maximum
of two (2) proxies to attend the Meeting provided that such member
holds not less than the minimum board lot as specified under the
Rules and the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad.
Where2. a member appoints two (2) proxies to attend the Meeting,
the member shall specify the proportion of his/her shareholdings
to be represented by each proxy. A proxy may but need not be a
member of the Company and the provisions of Section 149(1)(b) of
the Companies Act 1965 shall not apply to the Company. Where a
member is an authorised nominee as defined under the Securities
Industry (Central Depositories) Act 1991, it may appoint at least
one (1) proxy in respect of each securities account it holds with
ordinary shares of the Company standing to the credit of the said
securities account.
The3. instrument appointing a proxy shall be in writing under the hand
of the appointor or of his attorney duly appointed under a power
of attorney or if such appointor is a corporation, either under the
corporation’s seal or under the hand of an officer or attorney duly
appointed under a power attorney.
The instrument appointing a proxy or representative shall be deposited 4.
at the Company’s Share Registrar’s office at Tricor Investor Services
Sdn Bhd, (formerly known as Tenaga Koperat Sdn Bhd), Level 17, The
Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200
Kuala Lumpur not less than forty-eight (48) hours before the time set
for holding the Meeting or any adjournment thereof.
Additional5. Notes on Special Business:
5.1 Resolution on Directors’ Fees
The proposed Ordinary Resolution No. 8 is in accordance
with the Company’s Ar ticles of Association and if passed,
will authorise the payment of Director’s fees to Directors
of the Company for their services during the financial year
ended 31 December 2009.
Notice of 18th Annual General Meeting
201Pos Malaysia Annual Report 2009
PROXY FORM 18TH ANNUAL GENERAL MEETING
THIS SECTION IS INTENTIONALLY LEFT BLANK
203Pos Malaysia Annual Report 2009
OR
II. The CHAIRMAN OF THE MEETING (if no proxy named above);as my/our proxy to vote for me/us and on my/our behalf, at the 18th Annual General Meeting of the Company, to be held at the Legend Grand Ballroom, Legend Hotel Kuala Lumpur, Level 9, Putra Place, 100 Jalan Putra, 50350 Kuala Lumpur on Wednesday, 12 May 2010 at 10.00 a.m. and at any adjournment thereof. My/our proxy is to vote as indicated below:The proportion of my/our holding to be represented by my/our proxies are as follows:
Proxy “A” % Proxy “B” % 100 %
Proxy Form 18th Annual General Meeting
POS MALAYSIA BERHAD (229990-M)
CDS Account No. of Authorised Nominee*
Total Number of Shares Held
I/We,
(FULL NAME OF SHAREHOLDER AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)
of (FULL ADDRESS)
being a member of Pos Malaysia Berhad, hereby appoint the following:
I. (i) “A” (FULL NAME OF PROXY “A” AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)
of (FULL ADDRESS)
or failing him/her(FULL NAME AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)
of (FULL ADDRESS)
(ii) “B” (FULL NAME OF PROXY “B” AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)
of (FULL ADDRESS)
or failing him/her(FULL NAME AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)
of (FULL ADDRESS)
Tel no:
(if applicable)
POS MALAYSIA ANNUAL REPORT 2009
204 Pos Malaysia Annual Report 2009
No. Ordinary Resolution For Against
1 Declaration of Dividend
2 Re-election of Puan Sri Datuk Nazariah binti Mohd Khalid as Director
3 Re-election of Wee Hoe Soon @ Gooi Hoe Soon as Director
4 Re-election of Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin as Director
5 Re-election of Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor as Director
6 Re-election of Haizan bin Mohd Khir Johari as Director
7 Re-appointment of Messrs KPMG as the Company’s Auditors for the ensuing year
8 Approval of Directors’ Fees
Please indicate with an (“X”) in the appropriate spaces as to how you wish your votes to be cast on the Ordinary Resolutions specified in the Notice of
the 18th Annual General Meeting. If you do not do so, the Proxy may vote or abstain from voting at his/her discretion.
Signed this day of 2010 Signature(s)/Common Seal of Shareholder(s)
Notes:
A member entitled to attend and vote is entitled to appoint a proxy to attend and vote in his/her stead. A member may appoint a maximum of 1. two (2) proxies to attend the Meeting provided that such member holds not less than the minimum board lot as specified under the Rules and the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.Where a member appoints two (2) proxies to attend the Meeting, the member shall specify the proportion of his shareholdings to be represented 2. by each proxy. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act 1965 shall not apply to the Company. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991, it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account.The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly appointed under a power of attorney or if 3. such appointor is a corporation, either under the corporation’s seal or under the hand of an officer or attorney duly appointed under a power attorney.The instrument appointing a proxy or representative shall be deposited at the Company’s Share Registrar’s office at Tricor Investor Services Sdn 4. Bhd (formerly known as Tenaga Koperat Sdn Bhd), Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur not less than forty-eight (48) hours before the time set for holding the Meeting or any adjournment thereof.
* Applicable to shares held through a nominee account.
Complete this form where applicable, place in envelope and post to:
The Share Registrar
TRICOR INVESTOR SERVICES SDN BHD (118401-V)
(formerly known as Tenaga Koperat Sdn Bhd)
Level 17, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra
59200 Kuala Lumpur