DRIVING SUSTAINABLE GROWTH ANNUAL REPORT 2019 UR PLAN IN YEAR AHEAD About Johor Corporation Johor Corporation was established as a public enterprise and a statutory body with the passing of the Johor Corporation Enactment No. 4, 1968 (as amended under Enactment No. 5, 1995). As a state-owned conglomerate, Johor Corporation through its Group of Companies are involved in core businesses comprising Plantations, Specialist Healthcare, Food & Restaurant Services, as well as Property. MISSION A conglomerate contributing to the Playing the role of catalyst for Maintaining its position as a Contributing and improving the state and national economic growth sustainable business growth and competitive, profit generating well-being of the community through efficient and effective subsequently achieving success and highly regarded business through business success business entities while upholding to discharge its obligations as a entity that leads & dominates and corporate responsibility community interests. state investment corporation. the market. undertakings. VISION MEMBINA & MEMBELA JOHOR CORPORATION CORE VALUES 2.0 INTEGRITY PROFESSIONAL INNOVATIVE LOYAL TEAMWORK We execute our task We are committed We are knowledgeable, We execute our We work as a team, with trustworthiness, to executing our task visionary, creative, dare responsibilities with contributing to achieving a honesty and fairness, efficiently through to lead, responsive and dedication and common goal and shared in line with the law and professional knowledge resourceful in pursuit commitment towards vision in an interactive and corporate governance and skills, thereby of Johor Corporation’s Johor Corporation’s conducive environment. principles. providing excellent service Business Continuity mission and vision and quality product Mission. while being resilient to our customers and and devoted to Johor shareholders. Corporation. A NEW LOGO INSIDE THIS REPORT FOR A NEW 1. CORPORATE STATEMENT Chairman’s Statement 4 ERA Corporate Statement 6 Symbolises the gateway that will bridge us all into a future of innovation and 2. ABOUT JOHOR CORPORATION advancement Corporate Profile & Information 13 Corporate Structure 14 34 Board of Directors’ Profile 16 3. FINANCIAL REVIEW PROSPECTS KULIM Statements of Comprehensive Income 20 BUSINESS Statements of Financial Position 22 Statements of Cash Flows 24 Statement of Changes In Equity 27 Financial Performance Summary JCorp & Group (2015-2019) 30 4 4. PROSPECTS The new Johor Corporation (JCorp) brand identity reflects the ambition, CORPORATE STATEMENT Economic Review 32 aspiration and direction of the Group. The new logo is a representation of CHAIRMAN’S STATEMENT Kulim Business 34 Specialist Healthcare Division 42 JCorp’s forward trajectory, as well as its desired image moving forward – 42 Food and Restaurant Services Business 48 dynamic, modern and forward thinking. The main distinguishing feature Property Division 58 Industrial Development Division 70 in the modern logotype is its clean sharp and minimalist representation of PROSPECTS Business Development Division 78 the ‘JCorp’ identity. SPECIALIST Corporate Responsibility Division 80 HEALTHCARE Group Human Capital Management The red ‘O’ symmetrically balances the overall logo which as a whole DIVISION Division 88 Group IT Advancement Division 92 symbolises the gateway that will bridge us all into a future of innovation and advancement. 5. CORPORATE GOVERNANCE STATEMENT The typefaces used are clean and bold, connoting strength and resilience, Corporate Governance Statement 94 Risk Management and Internal Control 99 all reminiscent of an image of a world class corporation. Designed in the Board Governance & Business colours of Johor Darul Ta’zim, our new logo also pays homage to our roots Ecosystem Committee Report 102 as we continue to carry the colours of our heritage on the path forward. 6 58 Please scan the QR Code to link to website for more DYNAMIC, MODERN AND CLEAN AND BOLD, CONNOTING CORPORATE STATEMENT PROSPECTS information on how JCorp FORWARD THINKING STRENGTH AND RESILIENCE CORPORATE STATEMENT PROPERTY DIVISION contributed to the state. P 4 P 5 SECTION 1 SECTION 1 Corporate Statement Corporate Statement Johor Corporation / Annual Report 2019 Johor Corporation / Annual Report 2019 CHAIRMAN’S CHAIRMAN’S STATEMENT STATEMENT JCORP’S TRANSFORMATION TO ENABLE PROSPEROUS JOHOR AGENDA SINCE BEING GIVEN THE TRUST TO LEAD THE JOHOR STATE GOVERNMENT, I HAVE BROUGHT THE PROSPEROUS JOHOR AGENDA TO THE FOREFRONT, WHICH WILL FOCUS ON DEVELOPMENT IN AN EQUITABLE AND HOLISTIC MANNER FOR THE WELL-BEING AND PROPSPERITY OF OUR CITIZENS. In our efforts to fully realise developments that benefit the people, an experienced strategic institution such as Johor Corporation (JCorp) is definitely needed to implement these aspirations. I am confident that JCorp will be able to accomplish the Prosperous Johor agenda through the execution of the Johor Sustainable Development Plan. The synergy between JCorp, State Government and related agencies involved in the development of Johor must also continue to be galvanised. This role not only needs to be continued, JCorp’s efforts to improve its market share President and Chief Executive, as well but needs to be multiplied through in its four core businesses – agriculture, as JCorp’s Board of Directors who Johor requires a strategic plan to act intelligently, swiftly expansion of business activities as well as specialist healthcare, property as well have led the new leadership within this and in an organised way to face the post-COVID-19 era. the implementation of other important as food and restaurant services will also conglomerate. development projects for the people. generate more revenue going forward. We need to unify our expertise, energy, focus and I am confident that JCorp’s transformation I have given and will always give my I have also witnessed JCorp’s many efforts will be emulated by other state other resources to fulfil this mission and achieve the state’s vision. full support and cooperation towards achievements in the agriculture sector, development and investment agencies. JCorp’s transformation that began in namely for the MD2 pineapple, Melita, From the perspective of development, investment 2020. This transformation will be able to which has succeeded in penetrating the This initiative must also go hand-in-hand and economic progress, the people should not be bring JCorp to a higher level at both the markets of multiple countries. In addition, with new futuristic ideas, innovation, looking at topline numbers only, but also take part domestic and regional stage. downstream products such as tarts, improvements in governance, moral jam, juice and fresh-cut fruits have also values, integrity and professionalism so in these activities to benefit from the spill-over effects of economic prosperity. The idea to spread JCorp’s wings by been well-received in the market. that the Johor Prosperous agenda can be riding the Industrial Revolution 4.0 to quickly achieved. Through 34 industrial zones developed across the enter business and industry also cannot The government will also leverage on state, JCorp has succeeded in providing 220,000 job be delayed further. JCorp’s expertise to help farmers and May Allah SWT ease our tasks and bless opportunities. This is one of JCorp’s major contributions in growers succeed in its mission to plant our devoted efforts. realising the Johor State Government’s agenda. The Internet as a platform for Del Monte pineapples which has the technological business and the digital potential to produce excellent returns. economy must be fully exploited in order to create entrepreneurs for the new I also like to take this opportunity to Johor Corporation DATUK HAJI HASNI BIN MOHAMMAD economy. heartily congratulate Yang Berbahagia 30 June 2020 Menteri Besar Johor Datuk Syed Mohamed Syed Ibrahim, Johor Corporation Chairman P 6 P 7 SECTION 1 SECTION 1 Corporate Statement Corporate Statement Johor Corporation / Annual Report 2019 Johor Corporation / Annual Report 2019 CORPORATE CORPORATE STATEMENT STATEMENT DRAMATIC JCORP IS NOW FOCUSING AND PREPARING THE TRANSFORMATION TO ORGANISATION TO STEP INTO THE NEW DECADE WHILE REMAIN SUSTAINABLE BRINGING JCORP TO A MUCH HIGHER LEVEL. A HOST OF DEVELOPMENTS IN OUR BUSINESS AND CORPORATE of its stakeholders. Currently, the global In line with this development, the Group ACHIVEMENTS HAS COLOURED THE economy has been seriously impacted is being strengthened with various FINANCIAL YEAR 2019 FOR JOHOR CORPORATION. by the COVID-19 outbreak, since systems and high-tech applications that PERFORMANCE 2019 CONCURRENTLY, THIS ECONOMIC January 2020 and it is now a global are able to improve the efficiency of data INSTITUTION AND CHANGE AGENT health emergency that has disrupted the management and services in addition REVENUE FOR THE STATE HAS FACED FIERCE economy and global communities. to accelerating operational efficiency RM6,007 million CHALLENGES AND TAKEN DELIBERATE MAIN BUSINESSES to provide a positive experience to our STEPS TO ENSURE THE GROUP’S EXPLORING THE FIFTH CORE customers – a vital element to succeed in PROFIT BEFORE TAX BUSINESS CONTINUES BUSINESS business now and in the future. million TO BE RELEVANT AND RM384 JCorp is now focusing and preparing At the same time, JCorp continues to COMPETITIVE AS WELL the organisation to step into the new strengthen its four core businesses PROFIT AFTER TAX AS CAPABLE IN THE decade while bringing JCorp to a much of plantations, property, health