board of directors & secretary - ijm · pdf fileooi poay lum group managing director tan...

IJM CORPORATION BERHAD (104131-A) Board of Directors & Secretary6

CHAIRMANIndependent Non-Executive Chairman

Tan Sri Dato’ Haji Ahmad Azizuddinbin Haji Zainal Abidin

EXECUTIVE DIRECTORS/COMMITTEEfrom left

Group Executive DirectorOoi Poay Lum

Group Managing DirectorTan Boon Seng @ Krishnan

Deputy Group Managing DirectorGoh Chye Koon

INDEPENDENT NON-EXECUTIVE DIRECTORSfrom left

Datuk Yahya bin Ya’acob

Tan Sri Dato’ (Dr) Haji Muradbin Mohamad Noor

Tan Sri Dato’ Ir. (Dr) Wan Abdul Rahmanbin Wan Yaacob

IJM CORPORATION BERHAD (104131-A)

7

NON-EXECUTIVE DIRECTORSfrom left

Osman bin Ismail

Dato’ Arthur Tan Boon Shih

Lai Meng

Dato’ Goh Chye Keat

Choo Choon Yeow

Khoo Chew Meng

ALTERNATE DIRECTORSfrom left

Soo Heng ChinAlternate to Ooi Poay Lum

Velayuthan a/l Tan Kim SongAlternate to Choo Choon Yeow

COMPANY SECRETARYJeremie Ting Keng Fui

IJM CORPORATION BERHAD (104131-A) Profile of Directors, Secretary & Senior Management8

Tan Sri Dato’ (Dr) Haji Murad Bin Mohamad NoorPSM, DSDK, JMN, PMK, SMK, KMN *>+

BA (Hons)(Mal), Dip.Ed.(Mal), Dip.Ed.Admin (Reading UK),Hon.D.Litt (Reading UK), Hon.D.Ed (USM Penang)

71 years of age. Independent non-executive Directorof IJM. Appointed Director in 1985.Past positions include Director General of Education(1976-1985), Chairman of the Urban DevelopmentAuthorities (1985-1988), Chairman of the ForestResearch Institute of Malaysia (1985-1990),Chairman of Majlis University Sains Malaysia (1985-1992), and Vice President of the International IslamicUniversity (1992-1995).

Tan Sri Dato’ Ir. (Dr) Wan Abdul Rahman

Bin Wan Yaacob PSM, SPMT, DPMT, JSM, AMN *>

D.Eng.(h.c.) B’ham, FASc, FIEM, FICE, FIHT, FCIOB, P.Eng., C.Eng

60 years of age. Independent non-executive Directorof IJM. Appointed Director in 1996.Chairman of the Malaysian Construction IndustryDevelopment Board, Malaysian Standard &Accreditation Council, The Road EngineeringAssociation of Malaysia (REAM), Lingkaran TransKota Holdings Berhad and Lysaght GalvanizedSteel Berhad.Non-executive Director of Malaysian IndustrialDevelopment Finance Berhad, Malaysia MiningCorporation Berhad, Powertek Berhad, and SaujanaConsolidated Berhad.Was with the Ministry of Works for 32 years, havingserved the last six years as the Director General ofthe Public Works Department before his retirementin 1996.

Datuk Yahya Bin Ya’acob PJN, DIMP, JSM, KMN, SMP, PBS

B.A. (Hons), D.P.A. (Malaya), M.B.M. (Philippines)

57 years of age. Independent non-executive Directorof IJM. Appointed Director in 1999.Chairman of the Malaysian Highway Authority andTrenergy (Malaysia) Berhad. Non-executive Directorof UDA Holdings Berhad and Rumpun Hijau CapitalBerhad.Was in government service for 32 years, havingserved the last five years as the Secretary Generalof the Ministry of Works before his retirement in1999. Was Secretary General of the Ministry ofInformation from 1991 to 1994. Other postingsinclude Secretary of the Federal Treasury (ContractsDivision) (1988-1991), Deputy Director of theImplementation & Coordination Unit, PrimeMinister’s Department (1986-1988), and DeputySecretary of the Federal Treasury (Finance Division)(1976-1986).

Tan Sri Dato’ Haji Ahmad Azizuddin

Bin Haji Zainal Abidin PSM, DPMP, KMN, JP

B.Eng.(Mining)(NZ), AM (Aust)IMM, FIME(Mal), P.Eng

73 years of age. Independent non-executiveChairman of IJM. Appointed Director in 1984.Also Chairman of MBM Resources Berhad, and non-executive Director of Rubberex Corporation (M)Berhad and United Plantations Berhad.Served as Senior Inspector of Mines for 14 yearsprior to joining the private sector in 1971. Has beena Senator (1976-1978), Speaker of the Perak StateLegislative Council (1978-1982), and StateAssemblyman of Belanja District (1982-1986).

Mr Tan Boon Seng @ Krishnan SMS *#

B. Econs(Hons), CPA(M), RA, MBA

49 years of age. Group Managing Director of IJMsince 1 January 1997. Appointed Alternate Directorin 1984, Director in 1990, and Deputy GroupManaging Director in 1993.Also a non-executive Director of Industrial ConcreteProducts Berhad, Sin Kean Boon Group Berhad andGrupo Concesionario del Oeste S.A. A member ofthe Executive Committee of the Federation of PublicListed Companies Berhad (FPLC) since 2000.Was with Kumpulan Perangsang Selangor Berhad forseven years and was its Group Financial Controllerprior to joining IJM as Financial Controller in 1983.

Mr Goh Chye Koon KMN # +

B.Eng.(Civil)(Hons), MIEM, P.Eng

52 years of age. Deputy Group Managing Directorof IJM since 1 January 1997. Appointed GeneralManager (Central Region) in 1986, Director(Projects) in 1990, and Alternate Director in 1995.Served as an engineer for the Ministry of Worksfor 11 years and was its Superintending Engineerprior to joining IJM as Senior Engineer in 1984.

Mr Ooi Poay Lum #

B.Sc.(C.Eng.)(Hons), MIEM, MICE, P.Eng., C.Eng

48 years of age. Group Executive Director of IJMsince 15 May 1997. He heads the Properties Divisionof the Group. Appointed General Manager in 1988,and Alternate Director in 1995.Served as an engineer in joint venture projects for fouryears prior to joining IJM as Project Manager in 1980.


9

Dato’ Goh Chye Keat DSPN, JSM, DJN >

Dip.Eng., P.Eng

60 years of age. A non-executive Director since hisretirement as Group Managing Director of IJM on31 December 1996. Appointed Director in 1984, andGroup Managing Director in 1988.Non-executive Director of the MalaysianConstruction Industry Development Board andIndustrial Concrete Products Berhad.Was with the Public Works Department for threeyears before joining Soon Tat & Co. as ProjectManager for three years. In 1970, joined JurutamaSdn Bhd.

Dato’ Arthur Tan Boon Shih DIMP

41 years of age. A non-executive Director of IJM.Appointed Director in 1998.Managing Director & Chief Executive Officer ofKyami Pty Ltd since 1995. Executive Director of Tan& Tan Developments Berhad from 1990 to 1995,and Managing Director of Kumpulan Sierramas (M)Sdn Bhd from 1995 to 1997. Re-joined the Tan &Tan Developments Berhad Board on 2 October 1998as a non-executive Director, and is also a non-executive Director in Ipoh Limited, Australia.

Mr Choo Choon Yeow

B.Eng.(Hons), FIEM, MICE, P.Eng., C.Eng

57 years of age. A non-executive Director since hisretirement as Deputy Group Managing Director on24 March 1999. Appointed Project Coordinator in1987, Alternate Director in 1988, Director in 1994,and Deputy Group Managing Director in 1997.Was with Jurutera Konsultant (M) Sdn Bhd for 13years and was its Project Director prior to joiningIJM in 1985 as Technical Manager.

Mr Khoo Chew Meng

Dip.Eng., B.Sc.(Eng.Sc.), MBA, MIEM, P.Eng

58 years of age. A non-executive Director since hisretirement as Group Executive Director on 5September 1998. Appointed Senior Engineer of theCompany in 1986, Alternate Director in 1988, andGroup Executive Director in 1994.Was with the Public Works Department for eightyears as Technical Assistant prior to joining IJM in1976 as Engineer of Jurutama Sdn Bhd.

Mr Lai Meng

B.Econs (Hons)

46 years of age. A non-executive Director of IJM.Appointed Director in 1994 and is a representativeof IGB Corporation Berhad.Executive Director of IGB Corporation Berhad since1995, and a non-executive Director of Ipmuda Berhad.Was with Bank Negara Malaysia for seven years andwas its Senior Administration Officer prior to joiningHongkong Tin Corporation (M) Berhad in 1985 asCorporate Planner, and Kinta Kellas Investments PLCin 1986 as Corporate Manager. In 1988, joined Tan &Tan Developments Berhad as Manager (CorporateAffairs) before being appointed Group FinancialController in 1989 and General Manager (Finance &Administration) in 1990. Was appointed Director(Corporate Affairs) of IGB Corporation Berhad in 1992.

Encik Osman Bin Ismail

Adv Dip Acc

43 years of age. Appointed non-executive Directorof IJM in 2001. A representative of PermodalanNasional Berhad (“PNB”).

Non-executive Director of IGB Corporation Berhadand Tan & Tan Developments Berhad. SeniorManager, Financial & Management AuditDepartment, of PNB since 2000 and has been withthe Group since 1985. Also a member of the Instituteof Internal Auditor Malaysia.

Mr Soo Heng Chin

B.Eng.(Civil)(Hons), MIEM, MBA

46 years of age. Appointed Alternate Director on 12June 1998. Heads a major construction unit withinthe group and also oversees the Purchasing & StoreDepartment and the Plant & Workshop Department.Was Project Manager of IJM in 1988, GeneralManager in 1992, and Director (Projects) in 1994.Prior to joining IJM in 1979 as Engineer of MudajayaConstruction Sdn Bhd, he was an Engineer with theDrainage and Irrigation Department, Pahang.

Mr Velayuthan a/l Tan Kim Song

M.MIN, D.DIV

47 years of age. Appointed Alternate Director on12 June 1998. Heads the Plantations Division ofthe Group.

Served Multi-Purpose Holdings Berhad for fouryears and was its Assistant Manager before joiningIJM in 1985 as Project Officer of Desa Talisai SdnBhd. Was Plantation Manager in 1987 and SeniorManager in 1990 before being appointed GroupGeneral Manager of IJM Plantations Sdn Bhd in1994 and Executive Director in 1997.

Note:All Directors are Malaysians. There are no family relationship between the major shareholders and/or Directors of the Company save for Dato’Tan Chin Nam & Dato’ Arthur Tan Boon Shih, who are father and son, Tan Boon Seng @ Krishnan & Velayuthan a/l Tan Kim Song and Dato’ GohChye Keat & Goh Chye Koon, who are brothers respectively.

# Executive Committee> Remuneration Committee

* Audit Committee

Share Committee+ ESOS Committee

SENIOR MANAGEMENT

Mr Ling Ah Hong

B.Agri. Sc (Hons)

50 years of age. General Manager of IJM PlantationsSdn Bhd since 1 September 1999.

Past positions include Agronomist (1979-1985) andManager, Agricultural Services (1986-1989) withDunlop Estates Berhad, General Manager, PlantationDivision (1992-1996) of Malaysian Mosaics Berhadand Chief Operating Officer-Plantation (1996-1998)of Hap Seng Consolidated Berhad.

Mr Loy Boon Chen +MBA, CPA(M)

50 years of age. Appointed Finance Director on 1July 1998. Non-executive Director of GuangdongProvincial Expressway Development Co. Limited.

Heads both the Finance & Accounts Department andthe Human Resource & Administration Department,and is a member of the Accounting Standards Sub-Committee of the Federation of Public ListedCompanies Berhad since 1998.

Served Ernst & Young for seven years prior to joiningChong Kok Lin & Sons Berhad in 1980 as Accountantcum Secretary for a year. Joined MudajayaConstruction Sdn Bhd as Chief Accountant before beingappointed Group Financial Controller of IJM in 1994.

Mr Mah Teck Oon

B.Eng. (Hons), P.Eng., MIEM

49 years of age. Head IJM Industries Division since1 July 1998. Also an alternate Director in Sin KeanBoon Group Berhad.

Served the Hong Leong Group Malaysia for 15years and was its General Manager in-charge ofthe ceramic tile division for 10 years. Was theSenior General Manager of the Concrete ProductsDivision of Hume Industries (M) Berhad prior tojoining IJM in 1995 as Group General Manager(Industries Division).

Mr Teh Kean Ming

B.E (Civil), P.Eng, MIEM

46 years of age. Appointed Group General Managerof IJM Properties Division with effect from 1 April2001.

He was a Resident Civil & Structural Engineer ofMalayan Banking Berhad (1983-1987) and SiteManager of Antah Biwater J.V. Sdn Bhd (1987-1989)prior to joining IJM Construction Sdn Bhd as ProjectManager (1989-1993), Senior Manager (Project)(1994-1997) and Project Director (1998-2001).


10

SECRETARY

Mr Jeremie Ting Keng Fui

MBA, FCIS, FCSM

44 years of age. Joined IJM in 1982 and wasappointed Company Secretary on 1 July 1994.

Heads the Corporate Services Department.Also Company Secretary of Industrial ConcreteProducts Berhad.

A council member of MAICSA since 1993 and wasawarded the ROC-MAICSA Company SecretaryAward 2000 (Listed Company Category).


11

PENDAHULUAN

Bagi pihak Lembaga PengarahI JM Co rpo ra t i on Be rhad ,dengan sukac i t anya sayamembentangkan LaporanTahunan dan Penyata KewanganKumpulan dan Syarikat untuktahun berakhir 31 Disember2000.

KEPUTUSAN OPERASI

Pemulihan ekonomi Malaysiaberterusan dalam tahun 2000,bermula dengan prestasi baikyang luar biasa dalam sektorperkilangan atas doronganpermintaan luar yang kukuh danpeningkatan menyeluruh dalamkebanyakan sektor ekonomi.Sektor perladangan sebaliknyamemperlihatkan kemerosotan

harga minyak kelapa sawit mentah dan peningkatan stoksimpanan sepanjang tahun ini. Kerajaan mengekalkandasar fiskal mengembang dan dasar kewanganmenyelaras untuk memastikan suasana perdaganganyang stabil dan kos operasi perniagaan yang lebihrendah. Ekoran daripada usaha ini, pertumbuhanKeluaran Dalam Negara Kasar (KDNK) sebanyak 8.5%yang dicapai adalah lebih baik daripada sasaran awalkerajaan sebanyak 5.8% dan melebihi pertumbuhanKDNK tahun 1999 yang mencatatkan 5.4%.

Sektor pembinaan telah memperlihatkan pertumbuhanyang positif tetapi masih menghadapi kapasiti yangberlebihan dan suasana yang amat kompetitif untukmendapatkan beberapa projek yang ditawarkan.Kebaikan yang diperolehi daripada suasana ini ialahpenurunan harga bahan-bahan mentah dan kos buruhyang mendatangkan keuntungan yang tinggi untukkerja-kerja yang sedia ada.

Untuk tahun di bawah tinjauan, Kumpulan mencapaikeuntungan sebelum cukai sebanyak RM118.96 jutaatas perolehan sebanyak RM 1,094.26 juta (RM615.85juta tidak termasuk perkongsian perolehan syarikat-syarikat sekutu dan entiti kawalan bersama).Pendapatan seberang laut menyumbangkan sebanyak46% daripada keuntungan sebelum cukai. Walaupunterdapat peningkatan prestasi operasi, keuntungantelah dipengaruhi oleh peruntukan perkara-perkara luarbiasa, kerugian penterjemahan dan penyelarasan untukmematuhi standard perakaunan yang tidak timbul padatahun sebelumnya. Keuntungan selepas cukaiKumpulan telah dipengaruhi oleh peruntukan cukaitertunda ke atas keputusan salah satu syarikatbersekutu luar negeri yang berjumlah RM9.16 juta(untuk tahun 1999 dan 2000) demi mematuhi standardperakaunan Malaysia serta pengembalian cukaipendapatan syarikat selepas dikecualikan daripadacukai dalam tahun 1999.

Pembinaan yang merupakan perniagaan terasKumpulan tetap menjadi penyumbang utamakeuntungan sebelum cukai dengan sumbangansebanyak 53.83%. Pencapaian ini didorong olehsuasana yang menggalakkan dengan tahap kecairanyang tinggi, kadar faedah yang rendah, tenaga buruhdan kos bahan-bahan mentah yang murah di Malaysiadan kawalan kos yang ketat oleh pihak pengurusan.

Sejajar dengan peningkatan sektor pembinaan,Bahagian Perkilangan mencatatkan peningkatan dalamperolehan dan keuntungan sebelum cukai berikutandengan sumbangan yang lebih tinggi untuk beberapahasil keluaran dan penggunaan keupayaan pengeluaranyang bertambah baik dan pengurangan masalahpengutipan hutang.

Bahagian Perladangan yang mempertahankankedudukan Kumpulan semasa kemerosotan ekonomisekadar menyumbangkan keuntungan tipis sebanyakRM4.79 juta sahaja, berbanding dengan RM24.31 jutapada tahun 1999 ekoran daripada harga minyak kelapasawit mentah yang lebih rendah meskipun terdapatpeningkatan dalam tuaian gugusan buah segar.

Kejatuhan prestasi Bahagian Hartanah diakibatkan olehpenurunan ketara sumbangan daripada operasinya diAustralia selepas penyelesaian awal projek HordernTowernya pada tahun 1999, serta masaalah pelancaranbeberapa projek tempatan berikutan daripadakelewatan untuk memperolehi kelulusan daripadapihak-pihak berkuasa.

Bahagian Infrastruktur juga mencapai keputusan yangmerosot berbanding dengan tahun 1999. Keputusancemerlang pada tahun 1999 berpunca daripadakeuntungan luar biasa yang diperolehi oleh Kumpulansetelah Kumpulan menjual 30% sahamnya dalamGrupo Concesionario del Oeste S.A. (GCO) berikutandengan tawaran awam permulaan GCO, sertaperakaunan ekuiti Kumpulan untuk keuntungan luarbiasa yang tidak berulang daripada penjualanpelaburannya di bawah syarikat sekutu GuangdongProvincial Expressway Development Co. Ltd.

STRATEGI OPERASI DAN PROSPEK PERNIAGAAN

Walaupun kebanyakan sektor ekonomi telahmencapai pemulihan yang agak awal daripada kesanburuk krisis kewangan tahun 1997, aktiviti pembinaank e k a l l e m b a p s e h i n g g a t a h u n 2 0 0 0 y a n gmemperlihatkan pertumbuhan positif yang agakrendah pada kada r 3%. Persa ingan un tukmendapatkan projek tetap hebat dalam suasana dimana terlalu banyak peserta mengejar bilangan projekyang terhad. Kumpulan bersikap cermat dalammenyertai aktiviti tender.

Dalam proses perundingan untuk kontrak infrastrukturyang besar, adalah kurang bijak jika Kumpulan dibebanioleh projek-projek yang hanya mendatangkan

Penyata Pengerusi

keuntungan yang rendah manakala kapasiti dansumber-sumber kita sedang digunakan. Ekorandaripada ini, Kumpulan hanya memperolehi kontrakpembinaan berjumlah RM250 juta sepanjang tahun2000. Selepas penghujung tahun 2000, barulahKumpulan menerima surat anugerah untuk dua buahkontrak dengan jumlah nilai melebihi RM700 juta.

Kumpulan dijangka akan menghadapi pelbagai cabarandalam tahun 2001. Kemerosotan kuasa-kuasa ekonomidunia telah bermula dan mempengaruhi ekonomiMalaysia dengan cepatnya apabila tempahan eksportberkurangan dalam beberapa bulan yang lalu. Penurunanharga bahan-bahan mentah utama terus menjejaskankedudukan ekonomi negara. Pihak kerajaansememangnya berazam merangsang ekonomi denganmempertingkatkan perbelanjaan infrastruktur danmemastikan projek-projek pembangunan bermuladengan seawal-awalnya untuk menyediakansokongan tempatan yang amat diperlukan. Tambahanpula, lebih banyak rangsangan fiskal dan dasarkewangan yang berupaya meningkatkan aktivitiekonomi seperti yang diumumkan oleh pihak Kerajaanbaru-baru ini akan membantu memastikanmomentum pertumbuhan terjamin.

Menyedari potensi dalam peningkatan perbelanjaaninfrastruktur, Kumpulan akan menumpukan usahanyauntuk memperolehi lebih banyak projek di Malaysiasementara memberikan tumpuan yang lebih ke ataspasaran India di mana Kumpulan telah berjayamenembusi dan mengukuhkan kedudukannya.Dilengkapi dengan lembaran imbangan yang semakinkukuh dan budaya kerja yang mementingkankecemerlangan menerusi kualiti dan keselamatan,Kumpulan telah mengukuhkan kedudukannya untuk terusmeningkatkan buku tempahannya dalam tahun 2001.

Dalam medan pembangunan hartanah, BahagianHartanah dijangka akan dapat menyelesaikan masalahkelambatan kelulusan dan melancarkan beberapa

rancangan perumahan kos sederhana dan mewah dilokasi yang baik di Pulau Pinang, Klang, Johor Bahrudan Sandakan. Dalam suasana persaingan yangbertambah hebat, keutamaan Bahagian adalah untukmendirikan hartanah dengan susun atur yang lebih baik,kemudahan berkualiti serta infrastruktur teknologiinformasi/internet untuk perumahan mewah danbangunan perdagangan. Polisi Kumpulan yangmenjanjikan kualiti telah diiktiraf dalam pasaranseharusnya memberikan kelebihan pemasaran dalamsuasana perniagaan ini.

Bahagian Perkilangan telah mengambil beberapalangkah untuk memperbaiki prestasinya. Ini termasukmemperluaskan lagi pasaran dalam perniagaan strukturbesi waja, memperbaiki sebaran jualan untuk hasil kuaridan memperolehi kontrak yang menawarkan hargayang lebih menarik untuk perniagaan konkrit sediabancuh. Tambahan pula, polisi kerajaan Malaysia yangmerangsang ekonomi menerusi perbelanjaaninfrastruktur akan memperbaiki penggunaankeupayaan pengeluaran. Buku tempahan BahagianPembinaan yang lebih besar akan menjadi penggerakutama yang menjamin permintaan asas yangsederhana ke atas Bahagian ini.

Untuk Bahagian Infrastruktur, pelaburannya diArgentina, China dan Vietnam akan dipertingkatkanekoran daripada bilangan lalulintas dan bekalan air yangdijangka meningkat dan struktur kos yang semakinbaik berpunca daripada pembayaran balik pinjamanprojek dan seterusnya mengurangkan perbelanjaankewangan. Bahagian ini sedia melabur dalam projek-projek tempatan dan luar negeri yang berpotensi untukmempertingkatkan lagi penyertaannya dalam projekinfrastruktur yang berjangka panjang. Pada ketikalaporan ini disediakan, kita masih menjual sahamkita dalam Guangdong Provincial ExpresswayDevelopment Co. Ltd. untuk mengaut keuntungandaripada kenaikan mendadak harga saham di pasaransaham ‘B’ di Shenzhen, China.

Dalam tahun 2000, dengan pendapatan daripadapenerbitan bon, Bahagian Perladangan menambahkan

Putrajaya Hospital,Putrajaya


12


13

lagi kawasan ladang penanamannya kepada 44,967ekar dengan penanaman baru sebanyak 11,919 ekar.Baki 25,553 ekar akan ditanam dalam beberapa tahunyang akan datang. Kawasan ladang yang meningkatakan memperkukuhkan kapasiti pengeluaran dan tahapkeuntungan pada masa hadapan. Baru-baru ini,

Secara keseluruhan, Kumpulan walaupun agak berhati-hati yakin dapat mencapai prestasi yang lebih baikuntuk tahun 2001.

DIVIDEN

Lembaga pengarah mencadangkan dividen akhirsebanyak 5% ditolak cukai pendapatan (1999 : 6%dikecualikan cukai), tertakluk kepada kelulusan parapemegang saham pada Mesyuarat Agung Tahunansyarikat yang ke-17. Bersama-sama dengan divideninterim sebanyak 3% ditolak cukai, jumlah dividen padatahun 2000 adalah 8% ditolak cukai (1999 : 6%dikecualikan cukai).

MODAL SAHAM

Pada tahun ini, modal saham Syarikat yang diterbitkanbertambah sedikit dari RM345,965,654 kepadaRM351,516,654 hasil daripada perlaksanaan opsyendi bawah Skim Opsyen Saham Kakitangan danpenukaran waran 2000/2004.

PERALIHAN KE ALAF BARU Y2K

Kumpulan dengan sukacitanya melaporkan peralihankesemua sistem kita ke dalam abad yang baru berjalanlancar. Kejayaan dalam melaksanakan pematuhan Y2Kdalam segala sistem operasi dalaman bersama-samadengan pelanggan-pelanggan, pembekal-pembekal danpihak-pihak lain telah menjamin masalah komputer Y2Ktidak berlaku.

PENGHARGAAN

Bagi pihak Lembaga Pengarah, saya ingin merakamkanpenghargaan kami kepada para pengarah, pengurusandan kakitangan Kumpulan atas komitmen dan sumbanganmereka sepanjang tahun 2000. Masa depan tetapmencabar dalam suasana ekonomi dunia yang tidakmenentu. Saya juga ingin mengambil kesempatan iniuntuk mengucapkan terima kasih kepada para pemegangsaham, rakan-rakan sekutu, pelanggan-pelanggan,jurubank, sub-kontraktor dan pembekal-pembekal ataskesanggupan mereka untuk terus bekerjasama danmemberikan sokongan kepada Kumpulan.

Pihak Lembaga dan saya ingin merakamkanpenghargaan kami yang tulus ikhlas kepada Encik MiorAbdul Rahman Bin Miou Mohd Khan, yang telahmeletak jawatan daripada Lembaga Pengarah pada5 Januari 2001. Beliau menjadi pengarah syarikat sejak7 Julai 1993.

Pihak Lembaga mengalu-alukan Encik Osman BinIsmail yang dilantik sebagai Pengarah bukaneksekutif pada 5 Januari 2001. Saya berkeyakinanpengalaman beliau yang luas akan memanfaatkanLembaga Pengarah.


Bin Haji Zainal AbidinPengerusi

The 1st Silicon Wafer Plant, main building

kerajaan telah mencadangkan langkah-langkah yangproaktif untuk mengurangkan bekalan yang berlebihandan meningkatkan harga minyak kelapa sawit.Kedudukan Bahagian akan diperbaiki jika langkah-langkah ini berjaya dilaksanakan.

Sepanjang tahun ini, Kumpulan mengambil langkah-langkah selanjutnya untuk mengalihkan pinjamanjangka pendek kepada pinjaman jangka panjang padakadar tetap untuk memperbaiki keadaan dana yangtidak sepadan dalam beberapa pelaburan jangkapan jang . Pada 28 Februa r i 2000 , Sya r i ka tmenerbitkan Bon Tanpa Jaminan Yang Boleh Ditebusdengan nilai nominal sebanyak RM150 juta. Walaubagaimanapun, kedudukan pinjaman Kumpulan tetapberada pada tahap yang sihat seperti tahunsebelumnya ekoran daripada kawalan kredit yangketat dan kutipan hutang yang cekap. Penjualanpelaburan yang sedang dilaksanakan di Chinamembolehkan pengurangan hutang Kumpulan yanglebih berkesan pada tahun 2001.

Cadangan penyusunan semula yang melibatkansyarikat-syarikat dalam Kumpulan yang muladilaksanakan dalam tahun 2000, dijangka akandiselesaikan dalam separuh tahun pertama 2001.Semua kelulusan yang diperlukan daripada pihak-pihakberkuasa yang berkenaan telah berjaya diperolehi.

The 1st Silicon Wafer Plant, annexe building

Chairman’s Statement

overseas associate amounting to RM9.16 million(for years 1999 and 2000) in compliance withMalaysian Account ing Standards and thereinstatement of corporate income tax after a taxfree year in 1999.

The Group’s core business in construction continuedto be the main contributor of the Group’s pre-tax profit,accounting for 53.83% of it. This achievement washelped by a conducive environment of high liquidityand lower interest rate, cheaper labour and materialcosts in Malaysia and more stringent cost control onthe part of the Management.

The Industries Division, in tandem with an improvedconstruction sector, recorded an improved turnoverand pre-tax profit due to higher margins for someproducts, better utilisation of capacity and reduced debtcollection problems.

The Plantations Division, which underpinned theGroup’s performance during the economic downturn,contributed a meagre pre-tax profit of RM4.79 millionagainst RM24.31 million in 1999 due to lower crudepalm oil prices, despite an increased tonnage of freshfruit bunch harvested.

The Properties Division saw its performance drop dueto a substantial reduction in contribution from ourAustralian operation following the earlier completionof its Hordern Tower Project in 1999, and launchingset back at some local projects due to a general delayin obtaining approvals from authorities.

The Infrastructure Division achieved poorer resultscompared to 1999 as the exceptionally good 1999result was due to an exceptional gain made by theCompany when it sold 30% of its shareholding inGrupo Concesionario del Oeste S.A. (GCO) inconjunction with GCO’s initial public offering, and theGroup’s equity-accounting for a non-recurringexceptional gain on disposal of an investmentrecorded by associate Guangdong ProvincialExpressway Development Co. Ltd.

INTRODUCTION

On behalf of the Board of Directors of IJM CorporationBerhad, I am pleased to present the Annual Reportand the Financial Statements of the Group and theCompany for the year ended 31 December 2000.

OPERATING RESULTS

The Malaysian economy continued its recovery in2000, led by an exceptionally strong performance bythe manufacturing sector, driven by strong externaldemand and a general improvement in most sectorsof the economy. The notable exception was theplantation sector which saw declining crude palm oil

(CPO) prices and expanding stocks throughout theyear. The expansionary fiscal and accommodativemonetary policies, implemented by the governmentsince the economic downturn, remained in place toensure a stable trading environment for businessesand lower business operating costs. Consequently, the8.5% gross domestic product (GDP) growth achievedsurpassed the Government’s initial target of 5.8%and outperformed the 1999 GDP of 5.4%. Theconstruction sector saw positive growth but continuedto be plagued by excess capacity and a verycompetitive environment for the few jobs open to bids.The positive side of this scenario was reflected in thefalling material prices and labour costs that translatedinto better margins on existing jobs.

For the year under review, the Group achieved apre-tax profit of RM118.96 million on the back of aturnover of RM1,094.26 million (RM615.85 millionexcluding share of associated companies and jointlycontrolled entities revenue). Offshore earningscontributed 46% of the pre-tax profit. Despitebetter operational performances, the pre-tax profitwas affected by provision for exceptional items,translation losses and adjustments for accountingstandards compliances not encountered in theprevious year. The Group’s post-tax profit wasfurther affected by a provision for deferred taxationat Group level in respect of the results of an


14


15

schemes in good locations in Penang, Klang, JohorBahru and Sandakan. In an increasingly competitiveenvironment, the Division’s emphasis would be todeliver properties with better layout, quality facilitiesand also IT/internet infrastructure for up-marketresidential and commercial buildings. The Group’scommitted quality policies are well recognised in themarket place and hence should give a marketing edgein this environment.

The Industries Division has taken several measuresto improve its performance. These include broadeningthe market base for its steel business, improving thesales-mix for its quarry products and securing betterpriced contracts for its ready-mixed concrete business.Further, the Malaysian Government’s pump primingpolicies through infrastructure spending shouldfacilitate better capacity utilisation. The larger orderbook at the Construction Division would also providesynergistic spin-off for the Division by providing it witha reasonable base volume.

OPERATIONAL STRATEGIES AND BUSINESS

OUTLOOK

Although many sectors of the economy have maderelatively early recovery from the adverse impact ofthe 1997 financial crisis, construction activities havebeen relatively subdue until 2000 when it saw a positivealbeit minor growth of 3%. Competition for jobsremained intense, a case of too many players chasinga limited number of jobs. The Group was selective inits tendering activities. While it was in the process ofbidding and negotiating some large infrastructurecontracts, it would not be prudent to get encumberedwith low-margin jobs which could become a drag oncapacity and resources. As a result, only RM250 millionworth of construction contracts were secured in 2000.Subsequent to year-end, the Group received letters ofaward for two contracts with a total value exceedingRM700 million.

The year 2001 is expected to be very challenging forthe Group. The slow down in major world economieshas started and Malaysian economy has begun to feelthe effect quickly as manufacturing export orders havemoderated in the last few months. Prices of majorcommodities have also fallen, further aggravating theimpact on the economy. The Government will no doubtpump prime the economy with increased infrastructurespending and ensure that development projects takeoff early to provide the much needed domestic boost.In addition, the additional fiscal stimuli and monetarypolicies to boost economic activities as announcedrecently by the Government will help to ensure thatthe growth momentum is sustained.

Given the potential for increased infrastructurespending, the Group would concentrate its efforts tosecure more projects in Malaysia whilst also payingclose attention to the Indian market where it hascarved a niche for itself. Leveraged on an evenstronger balance sheet and a work culture whichemphasises excellence through quality and safety,the Group is well positioned to further increase itsorder book in 2001.

On the property development front, the PropertiesDivision is expected to overcome approval delays andlaunch several medium cost and higher-end residential

IJM’s team at the inaugural KLSE Rat Race

For the Infrastructure Division, investments inArgentina, China and Vietnam should see furthergrowth provided by the expected higher volume intraffic and water supply and improving cost structuresdue to reduction in financial expenses as the projectloans are being repaid. The Division will be on the lookout for viable ventures locally and overseas to furtherexpand involvement in long term infrastructureprojects. As at the time of writing, our shares inGuangdong Provincial Expressway Development Co.Ltd. are being sold through the market to takeadvantage of the sudden surge in share prices of theShenzhen “B” market.

During 2000, with the proceeds from the bond issue,the Plantations Division planted another 11,919 acresbringing total planted acreage to 44,967 acres. Thebalance of 25,553 acres will be planted in the nextfew years. The expanded acreage will enhanceproduction capacity and profitability in the years tocome. The Government has recently proposed some


Bin Haji Zainal AbidinChairman

Parliamentary Secretary of the Ministry of Domestic Trade andConsumer Affairs Mr Wong Kam Hoong presenting the ROC- MAICSACompany Secretary Award 2000 (Listed Company Category) toMr Jeremie Ting

proactive measures to reduce the current palm oilglut and improve prices. If the measures aresuccessful, they will augur well for the Division’sperformance.


16

During the year, the Group took further steps toconvert short-term borrowings into long-term debtsat fixed rates to correct the funding mismatch ofsome long-term investments. On 28 February 2000,the Company issued RM150 million nominal valueof 5% Redeemable Unsecured Bonds. Despite this,the Group’s gearing position remained basically atthe healthy level of the preceding year-end as a resultof stringent credit control and efficient debtcollection. The on going disposal of investments inChina would enable a more significant reduction ofGroup debt in 2001.

Meantime, the proposed restructuring exerciseinvolving some of the Group’s companies which hasbeen partially done in 2000, would be completed inthe first half of 2001. All necessary approvals fromthe relevant authorities have been obtained.

Overall, the Group is cautiously optimistic of betterperformances in 2001.

DIVIDEND

The Board of Directors proposes a final dividend of5%, less income tax (1999: 6% tax exempt), subjectto shareholders’ approval at the 17th Annual GeneralMeeting of the Company. Together with the interimdividend of 3%, less income tax, the total dividendsfor 2000 would be 8%, less income tax (1999: 6%tax exempt).

SHARE CAPITAL

During the year, the issued share capital of theCompany increased marginally to RM351,516,654from RM345,965,654 arising from the exercise ofoptions under the Employees Share Option Schemeand conversion of the warrants 2000/2004.

Y2K ROLLOVER

The Group is pleased to report a smooth transition ofall systems into the new millennium. The successfulimplementation of Y2K compliance in all internaloperating systems vis-à-vis that of our clients, suppliersand other parties ensured no Y2K computer glitch.

ACKNOWLEDGEMENT

On behalf of the Board of Directors, I would like tothank the Directors, Management and all employeesof the Group for their commitment and contributionduring 2000. The year ahead will continue to bechallenging amid growing economic uncertaintiesworldwide. I would also like to take the opportunity tothank the shareholders, associates, clients, bankers,sub-contractors and suppliers for your continuedunderstanding and support to the Group.

The Board and I also wish to record our sincereappreciation to Encik Mior Abdul Rahman Bin MiouMohd Khan who resigned from the Board on 5 January2001. He has been a Director of the Company since7 July 1993.

The Board welcomes Encik Osman Bin Ismail, whowas appointed a non-executive Director on 5 January2001. I am confident he will add a wealth of experienceto deliberations at the Board.


17

N O T I C E O F A N N U A L G E N E R A L M E E T I N G

Statement on Quality and SafetyFor The Year Ended 31 December 2000

Excellence Through Quality

The IJM Group has built a reputation for quality and is firmly committed to its motto of “Excellence ThroughQuality”. It is the Group’s objective to continuously improve on the level of Quality Performance to ensure thatthe Group is successful in business. To this end, the Group strives to conduct its operations in such a mannerthat all projects and services carried out meet clients’ requirements whilst it continuously equips itself with thenecessary methodology and tools to improve quality systematically.

Health, Safety And Environment Is Everyone’s Responsibility

The Group, whilst acknowledging the constant expectation by customers to deliver quality product and servicesexpeditiously, is fully committed to achieving a higher standard in its Health, Safety and Environmental practices.Its motto “Health, Safety and Environment Is Everyone’s Responsibility” aims at creating awareness among itsemployees on the collective responsibility to prevent injury and occupational illnesses and ensure public safetywhen carrying out its business so that a concerted effort is made to prevent accidents and occupational healthhazards whilst preserving a healthy environment.

IJM Quality and Safety Assessment Systems (IQSAS)

In the pursuit of operational excellence for all aspects of its business, the Group has, in 2000, embarked on, andsuccessfully formulated, the IJM Quality and Safety Assessment System (IQSAS).

IQSAS is a self-regulated assessment system of procedures and testing methods in which standards were setout for the various quality and safety aspects of building construction. In an environment of poor skills and atranscient migrant workforce which is prevalent in our local construction scene, the introduction of IQSAS willhelp the Group in its effort to enhance the quality and safety performance standard in its building projects.

Mark of Excellence

All necessary activities including regular training courses, internal quality and safety audits, quality and safetycampaigns, and annual management review are carried out to further enhanced the already reputable qualityproducts provided by the Group, consistent with IJM’s representation of the Mark of Excellence.

IJM has inculcated in its work culture the need to maintain and enhance the high quality standard of workperformance and level of safety. This was made possible through the relentless support and commitment ofthe staff and Management lead by the Group Managing Director.

To ensure that the Group continues to uphold its Quality and Safety policies and objectives, the QualityManagement Committee and the Occupational Health and Safety Management Committee conduct an annualreview of the Quality Management Systems and Safety and Health Management Systems.

In particular, these reviews addressed the validity of the Company’s policies on quality, occupational health,safety and environment, and consider changes, where required, including review of the company quality andsafety manual and associated departmental procedure manuals to ensure that the requirements of the ISO9002 and OHSAS 18001 standards are met.

Where necessary, appropriate means of improvement and corrective and preventive actions are recommendedand taken to rectify any weakness and deficiency identified from internal and external audit reports.

Achievement

Some of the achievements of the Group for 2000 are as follows:

26 February 2000

The Hampshire Park Project – one of only two project sites to have attained a score of above 90% as assessedby the Department of Occupational Safety and Health – was selected for the launching of the Operation onOccupational Health and Safety at Construction Sites 2000. This event was officiated by the Honourable Ministerof Human Resources, Datuk Dr Fong Chan Onn.

19 May 2000

The IJM Quality and Safety Assessment System (IQSAS) was officially launched by the Minister of Housingand Local Government Dato’ Seri Ong Ka Ting at Riana Green Condominiums.

3 November 2000

IJM Corporation Berhad and IJM Construction Sdn Bhd achieved the OHSAS 18001:1999 certification by SIRIM,thus becoming the first Malaysian company in the Construction Industry to receive this internationally acclaimedcertification.

24 November 2000

Prebore Piling & Engineering Sdn Bhd, a subsidiary of IJM Construction Sdn Bhd, achieved the MS ISO 9002:1994certification.

CONSTRUCTION PROPERTIES

CORPORATESTRUCTURE


18

IJM Construction Sdn Bhd

Subsidiaries

Crendon Building Systems Sdn BhdIJM (India) Infrastructure LtdPrebore Piling & Engineering Sdn Bhd

Associates

Hexacon Construction Pte LtdTHB-IJM Joint Venture Sdn Bhd

Jurutama Sdn Bhd

Nilai Cipta Sdn Bhd

IJM Properties Sdn Bhd

Subsidiaries

Chen Yu Land Sdn BhdIJM Management Services Sdn BhdJalinan Masyhur Sdn BhdLiberty Heritage (M) Sdn BhdWedec Sdn BhdXylocorp (M) Sdn Bhd

Suria Bistari Development Sdn Bhd

IJM Australia Pty Ltd

Subsidiary

Billmex Pty Ltd

Associates

Jelutong Development Sdn BhdOSW Properties Pty LtdWorldwide Ventures Sdn Bhd

* Dormant companies not included

MANUFACTURING &QUARRYING

PLANTATIONS INTERNATIONALVENTURES

Malaysian Rock Products Sdn Bhd

Subsidiaries

Aggregate Marketing Sdn BhdBohayan Industries Sdn Bhd

Associates

Kuang Rock Products Sdn Bhd

Damansara Rock Products Sdn Bhd

Subsidiary

Strong Mixed Concrete Sdn Bhd

Kemena Industries Sdn Bhd

Subsidiary

Kipal Industries Sdn Bhd

Scaffold Master Sdn Bhd

Torsco Berhad

Associates

Cofreth (M) Sdn BhdIndustrial Concrete Products BerhadSin Kean Boon Group BerhadSpirolite (M) Sdn Bhd

IJM Plantations Sdn Bhd

Subsidiaries

Berakan Maju Sdn BhdDesa Talisai Sdn Bhd

Subsidiaries

Cahaya Adil Sdn BhdDesa Talisai Palm Oil Mill Sdn BhdFirdana Corporation Sdn BhdGerbang Selasih Sdn BhdSihat Maju Sdn Bhd

Dynasive Enterprise Sdn BhdExcellent Challenger (M) Sdn BhdGunaria Sdn BhdIJM Agri Services Sdn BhdRakanan Jaya Sdn Bhd

Subsidiary

Isu Mutiara Sdn BhdSijas Plantations Sdn Bhd

Subsidiaries

Ampas Maju Sdn BhdGapas Mewah Sdn BhdGolden Grip Sdn BhdKulim Mewah Sdn BhdLaserline Sdn BhdMacmillion Group Sdn BhdRantajasa Sdn BhdSri Kilau Sdn Bhd

Associates

Cekap Tropikal Sdn BhdLoongsyn Sdn BhdMinat Teguh Sdn Bhd

Akrab Perkasa Sdn BhdTrunkline Plantations Sdn Bhd

IJM International Limited

IJM International (BVI) Pty Ltd

Associates

Avillion Hotels International (Sydney)Pty Ltd

Reliance-OSW (Nominees) Pty Limited

IJM Overseas Ventures Sdn Bhd

Associates

Earning Edge Sdn Bhd

Gautami Power LimitedGuangdong Provincial Expressway

Development Co. Ltd

Associates

CIDB Investures Sdn BhdEmas Utilities Corporation Sdn BhdGrupo Concesionario del Oeste S. A.Inversiones E Inmobiliaria Sur Sur S. A.JWS Projects Sdn Bhd

board of directors & secretary - ijm · pdf fileooi poay lum group managing director tan...

Documents