annual report 2006
creating dreams delivering promises transforming lives
87564-X "SunCity is passionate in creating dream homes and prides itself on delivering quality, innovation and functionality.
We are emphasising on customer experience management to drive continuous growth of value in our community.
We recognise that every SunCity team members' effort is required to transform lives in every dimension - shareholders, customers, employees, community." Table of Contents
Creating Dreams, Delivering Promises and Transforming Lives Vision and Mission 2 Financial Calendar 2 Corporate Information 4-5 Five-Year Financial Highlights 6-7 Calendar of Significant Events 8 Group Corporate Structure 9 Corporate Profile 10-11 Chairman's Statement 12-15 Chief Financial Officer’s Review 16-19 Share Performance 20 Value Added Statement 21 Economic Brief 22
Building Towards Our Dream Team 23 Profile of Board of Directors 24-29 Profile of Senior Management 30-31 Engaging our Employees 32-35
Bringing Your Dreams To Life Property Development 36-37 Property Investment 38-39 Hospitality 40-41 Healthcare 42-43 Leisure 44-45 annual report ‘06 46
Our Framework For Transformation 1 Corporate Philosophy 47 Investor Relations 48 Corporate Social Responsibility 49-50 Business Dynamics and Risk Factors 51 Corporate Governance Statement 52-58 Terms of Reference of Executive Committee of the Board 59-61 Terms of Reference of Nomination Committee 62 Terms of Reference of Remuneration Committee 63-64 Sunway City Berhad Terms of Reference of Employees' Share Option Scheme Committee 65-66 Terms of Reference of Group Risk Management Committee 67-68 Audit Committee Report 69-73 Statement on Internal Control 74-75 Enterprise Risk Management Framework 76-77 Additional Compliance Information 78-79
Striving Towards Excellence 80 Awards and Recognition 81-82 Statement of Occupational Safety and Health 83 Statement on Quality 84 Balanced Scorecard Journey 85
Financials Financial Statements 88-164 List of Properties 165-172 Recurrent Related Party Transactions 173-175
Shareholdings' Information Directors' Interests in Shares and Options over Ordinary Shares 176 Analysis of Shareholdings 177-178
23rd Annual General Meeting Notice of 23rd Annual General Meeting 179-184 Statement Accompanying Notice of Annual General Meeting 185 Form of Proxy FINANCIAL CALENDAR FINANCIAL 2005 17 MAY results for of the unaudited consolidated Announcement ended 31 March 2005 the 1st quarter 2 JUNE 2005 and payment of of notice of entitlement Announcement tax for the financial less 28% income 1.5% Final Dividend December 2004 year ended 31 3 JUNE 2005 Annual General Meeting and Issuance of notice of 22nd year ended 31 December Annual Report for the financial 2004 28 JUNE 2005 Meeting Date of 22nd Annual General 30 JUNE 2005 1.5% Final Dividend less 28% Date of entitlement to year ended 31 December income tax for the financial 2004 2005 28 JULY income Date of payment of 1.5% Final Dividend less 28% tax for the financial year ended 31 December 2004 18 AUGUST 2005 for Announcement of the unaudited consolidated results the 2nd quarter ended 30 June 2005 19 AUGUST 2005 end from Announcement of the change of financial year 31 December to 30 June 22 NOVEMBER 2005 for Announcement of the unaudited consolidated results the 3rd quarter ended 30 September 2005 2006 21 FEBRUARY for Announcement of the unaudited consolidated results the 4th quarter and year ended 31 December 2005 2006 21 FEBRUARY of Announcement of notice of entitlement and payment for the 3.5% Interim Dividend less 28% income tax financial period ending 30 June 2006 31 MARCH 2006 less 28% Date of entitlement to 3.5% Interim Dividend 2006 income tax for the financial period ending 30 June 28 APRIL 2006 Date of payment of 3.5% Interim Dividend less 28% income tax for the financial period ending 30 June 2006 2006 30 MAY Announcement of the unaudited consolidated results for the financial period ended 31 March 2006 29 AUGUST 2006 Announcement of the unaudited consolidated results for the financial period ended 30 June 2006 29 AUGUST 2006 Announcement of notice of entitlement and payment of 4% Interim Dividend less 28% income tax for the financial period ended 30 June 2006 3 OCTOBER 2006 Date of entitlement to 4% Interim Dividend less 28% income tax for the financial period ended 30 June 2006 1 NOVEMBER 2006 Date of payment of 4% Interim Dividend less 28% income tax for the financial period ended 30 June 2006 3 NOVEMBER 2006 Issuance of notice of 23rd Annual General Meeting and Annual Report for the financial period ended 30 June 2006 28 NOVEMBER 2006 Date of 23rd Annual General Meeting Vision Mission enhance its value. in its stakeholders. of the following goals: innovative products and services. that promote excellence and dedication A premier property company focusing on A premier property company focusing achieve the vision through the realisation returns that maximise shareholders’ value. competitive advantage in the marketplace. township development to generate excellent To create a conducive environment for living, To • Utilising technology to enhance the Group's visually stimulating structures that will greatly Sunway City Berhad Group of Companies shall working and leisure by transforming the existing quality real estate development and investing in quality real estate development and • Exceeding customers' needs with superior and properties with attractive yields that augment its properties with attractive yields that landscape and/or landform into well-designed and • Building and developing a culture and environment Menara Sunway - SunCity’s Corporate Office Menara Sunway - SunCity’s
Sunway City Berhad 2 annual report ‘06 Delivering DreamsofExcellence
Sunway City Berhad 3 annual report ‘06 (Chairman) (Chairman) (Chairman) (Chairman) (MAICSA 7017562) (MAICSA 7002988) (MIA 5601) Indulge in the serene ambience created at Kiara Hills, Courtyard Villas Dato’ Wong Choon Kee Dato’ Wong Ngian Siew Siong Yean Ngeow Voon Kam Wah Yuen Keng Lee Weng Seng Koong Wai SECRETARIES COMPANY Cheng Puan Sri Datin Seri (Dr) Susan Cheah Seok Kim Aun Tan Lee Suan Choo NOMINATION COMMITTEE NOMINATION Bin Haji Mohd Hashim Sri Dato’ Ir Talha Tan How Tong Teo Siak Tee Tan COMMITTEE REMUNERATION Bin Haji Mohd Hashim Sri Dato’ Ir Talha Tan How Tong Teo Cheah Fook Ling Sri Dato’ Seri (Dr) Tan SCHEME EMPLOYEES’ SHARE OPTION COMMITTEE Sri Dato’ Seri (Dr) Cheah Fook Ling Tan Datuk Razman M Hashim Choon Kee Dato’ Wong COMMITTEE GROUP RISK MANAGEMENT (Chairman) Information (Chairman) (Alternate to Yau Kok Seng)
Dato’ Wong Choon Kee Dato’ Wong Kok Seng Yau Ngian Siew Siong Yean Ngeow Voon Ong Pang Yen Lim Swe Guan Seng Koong Wai EXECUTIVE COMMITTEE OF THE BOARD Teo Tong How Tong Teo Siak Tee Tan Ngian Siew Siong AUDIT COMMITTEE Hashim Bin Haji Mohd Sri Dato’ Ir Talha Tan Independent Non-Executive Directors How Tong Teo Siak Tee Tan Senior Independent Non-Executive Director Hashim Bin Haji Mohd Sri Dato’ Ir Talha Tan Non-Independent Non-Executive Directors Low Siew Moi (f) Lim Swe Guan Managing Directors, Non-Independent Executive Directors Ngian Siew Siong – Property Development – Property Investment Yean Ngeow Voon Senior Managing Director, Senior Managing Director, Director Non-Independent Executive Choon Kee Dato’ Wong Deputy Executive Chairman, Deputy Executive Chairman, Director Non-Independent Executive Datuk Razman M Hashim Executive Chairman, Executive Chairman, Director Non-Independent Executive Cheah Fook Ling Sri Dato’ Seri (Dr) Tan BOARD OF DIRECTORS BOARD Corporate Corporate Lifestyle living at the Courtyard Villas
Sunway City Berhad 4 annual report ‘06 Corporate Information (cont’d)
REGISTERED OFFICE SOLICITORS
Level 16, Menara Sunway David Lingam & Co. Jalan Lagoon Timur Lee Hishammuddin Bandar Sunway Mah-Kamariyah & Philip Koh 46150 Petaling Jaya Selangor Darul Ehsan Malaysia PRINCIPAL BANKERS Tel No : (03) 5639 8889 Fax No: (03) 5639 9507 HSBC Bank Malaysia Berhad Malayan Banking Berhad Public Bank Berhad SHARE REGISTRAR Alliance Bank Berhad Southern Bank Berhad Sunway Management Sdn Bhd (50661-X) Level 16, Menara Sunway Jalan Lagoon Timur STOCK EXCHANGE LISTING Bandar Sunway 46150 Petaling Jaya Main Board of Bursa Malaysia Securities Berhad Selangor Darul Ehsan Malaysia Tel No : (03) 5639 8889 Fax No: (03) 5639 9507 WEBSITE ADDRESS www.sunway.com.my/suncity AUDITORS
Ernst & Young annual report ‘06 Chartered Accountants 5 Sunway City Berhad
The Villas - Where time whispers by
Enjoy cherished moments with friends at Sunway Pyramid Shopping Mall
Sunway Lagoon Theme Park - Feel the fun and excitement period. The Villas set in lush landscape gardens The Villas 2.015.00 1.87 1.00 1.77 1.50 1.43 - 4,488 34 5 21,476 16.47 6.25 32.72 (0.25) 12,50213,540 1,597 10,83626,033 35,460 19,875 11,779 36,263 - 12,429 - 66,906 25,480 118,440 6,282 (42,638) (35,440)(59,613) (27,244) (46,214) (22,392) (10,860) (6,186) 169,157 107,134 156,544 34,860 481,554320,159 484,187357,324 318,584 398,580 345,812 309,517 932,703 354,410466,203 374,528 364,525 466,203 392,840 - 992,481 728,640 659,428 587,519 682,138631,760 499,887217,644 460,502 420,290 284,913 338,436 437,431 336,891 549,454 180,321 333,833838,953 289,390 762,858 253,213 735,009 342,153 603,607 126,519 71,694 129,300 12,468 1,031,501 650,490 556,774 438,478 2,708,816 2,297,584 2,083,844 2,134,442 1,536,030 1,245,3361,172,786 1,095,622 1,052,248 1,188,682 988,222 945,760 2.33 7.50 ended ended ended ended ended ended ended 40.30 Period Year Year Year Year Year Year Year Year Period * 12,993 40,822 39,703 21,625 (92,873) RM ‘000 RM ‘000 RM ‘000 RM ‘000 RM ‘000 421,118 648,510 372,764 367,495 466,203 645,527 556,563 393,896 404,570 980,062 328,245 166,722 30.06.06 31.12.04 31.12.03 31.12.02 31.12.01 (161,523) 1,053,753 1,574,400 3,002,243 1,617,611 1,384,632 Financial Highlights Financial
Sunway Pyramid Shopping Mall Sunway Lagoon Theme Park grandeur of Kiara Hills The * The Group changed its financial year end from 31 December to 30 June. Accordingly, the financial statements cover an 18-month FINANCIAL RATIOS Earnings per share (sen) Total Liabilities Total Net Assets Total Taxation Investment properties Land held for property development Investments in associates Investment in jointly controlled entity Other non-current investments tax assets Goodwill on consolidation and deferred Current assets Total Assets Total KEY BALANCE SHEET DATA plant & equipment Property, Revenue OPERATING RESULTS OPERATING Profit before taxation Long term borrowings Other long term liabilities Deferred tax liabilities Shareholders’ equity Current liabilities Minority interests Net tangible assets per shareGross dividend per share (RM) (%)
Profit after taxation Minority interests Net profit for the period/year Five-Year Five-Year
Sunway City Berhad 6 annual report ‘06 Segmental Performance
Revenue (RM mil) Total Revenue FP 2006* = RM1,574
FP 2006* 2004 2003
958 609 367
171 106 98
225 123 100
116 65 53
104 89 110
2002 2001
322 272 Property Development 81 75 Property Investment 99 94 Hospitality 45 37 Healthcare 112 110 Leisure
Profit from Operations (RM mil) Total Profit FP 2006* = RM422
FP 2006* 2004 2003
333 155 83 annual report ‘06 78 51 42 7 15 (0.4) (3)
10 5 1
(14) (41) (21)
2002 2001
101 61 Sunway City Berhad Property Development 41 39 Property Investment 14 5 Hospitality (1) (0.3) Healthcare (13) (11) Leisure
Financial Ratios 7.50 40.30 2.33 32.72
2.01
1.87 1.77 5.00
1.43 16.47
6.25 1.50 1.00 (0.25) -
2001 2002 2003 2004 FP 2006* 2001 2002 2003 2004 FP 2006* 2001 2002 2003 2004 FP 2006* Earnings Per Share Net Tangible Assets Gross Dividend Per Share (sen) Per Share (RM) (%)
*18 months ended 30 June 2006 08/02/06 Signing of the Memorandum of Understanding (MOU) for preliminary works between Sunway City Berhad and Sunway Construction Sdn Bhd with Soma Developers, a firm based in Bangalore, India, and Soma Enterprise Limited, an ISO 9001:2000 company in the construction industry in India. 15/07/06 Launch of The Sunway new corporate Group’s This event was identity. officiated by Dato’ Seri Rafidah Aziz. This new identity promises a vibrant, dynamic and bold image. 20/04/05 of Sunway 48% divestment Resort Hotel & Spa to Government of Singapore Investment Corporation Pte Ltd. 19/08/05 At the 14th Malaysia Tourism presentation, Sunway Awards Pyramid clinched the prestigious award for the Most Supportive Shopping Outlet in 2004 Shopping Complex Category. 2005/2006 Highlights 2005/2006 22/12/05 50:50 joint venture with Australand for the development of land in Park, Business Wonderland Australia. Sydney, 02/05/06 Ice Rink Sunway Pyramid’s hosted the 4th Annual World the focal Ice Hockey 5’s, point for ice hockey enthusiasts. This event is the most significant ice rink event in Asia. 17/11/05 for Excellence for “The Award Best 5-star MICE Hotel” was awarded to Sunway Resort Hotel & Spa at the prestigious Hospitality Asia (HAPA) Platinum Award 2005 gala ceremony, marking success in the competitive MICE business in Malaysia. 22/06/06 Skate Malaysia 2006, the 3rd International Competition, was hosted by Ice Rink Sunway Pyramid’s once again this year with more than 9 rinks and participants from 6 different countries. 22/11/05 Kuwait Finance House (Malaysia) Bhd (KFH) entered into a joint venture with Sunway City Berhad in the proposed Sunway South mixed-use property Quay’s development. KFH invested RM69.6 million in the project involving 123 acres of land in Petaling Jaya. Bandar Sunway, 28/07/05 of Moving into the top-tier Property Leading the Nation’s Sunway City Developer, Berhad ranked fourth in “The 10 Property Developers Top 2005” in Malaysia. Awards This award was organised by The Edge Business Magazine. 07/03/05 Berhad was Sunway City awarded the Superbrands status by the Superbrands Malaysian Council joining other notable brands in Malaysia and local conglomerate with Superbrands status.
Significant Events Significant
22/04/06 Surfing, skating and live music – Quiksilver’s had it all! Revolution Tour The first in Southeast Asia. 3 best surfers whipped world’s into the waves and 5 world’s best skateboarders tore it up on the ramps. 17/11/05 The annual Sunway Fest kicked-off with “Showlights!” extravaganza with dazzling display of uniquely designed streetlights. 18/11/05 Sunway Medical Centre was the first to be awarded the MS ISO 15189:2004 Medical Laboratories certificate by the Department of Standards Malaysia for being equipped with the latest equipments and facilities that comply with the Good Lab Practices requirements. 546 days of 546
Creating Dreams Creating
Transforming Lives Transforming
Calendar of of Calendar Delivering Promises Delivering Sunway Lagoon proudly X-Games Asia hosted ESPN’s signature 2006, the world’s action sports competition. Presented by KIA Motors and supported by the Ministry of and Sports, this event Youth saw top-tier extreme athletes from around the world come together to compete. 12/05/06 20/02/06 Employees Provident Fund Board (EPF) joined Sunway City Berhad and KFH in the proposed Sunway South Quay’s mixed-use property development with an investment of RM69.6 million. 14/11/05 Sunway Medical Centre was recognised and honoured as one of the hospitals in the Asia Pacific region that carries out best hospital practices by winning the runners-up position in the Asian Hospital Management 2005 - Internal Service Award Project Category through their “Knowledge Management Portal”. 11/06/05 Official launch of Lost World the first fully- of Tambun, by themed park in Malaysia, DYMM Paduka Seri Sultan Perak Darul Ridzuan, Sultan Sri Azlan Shah and YBhg Tan Dato’ Seri (Dr) Cheah Fook Ling. Sunway City Berhad 8 annual report ‘06 Group Corporate Structure
Sunway Damansara Sdn Bhd PROPERTY DEVELOPMENT Sunway D’Mont Kiara Sdn Bhd Sunway South Quay Sdn Bhd Sunway SPK Homes Sdn Bhd* Sunway City Properties Sdn Bhd Sunway Monterez Sdn Bhd Sunway Melawati Sdn Bhd (Formerly known as Casa Mujur Sdn Bhd) Sunway Rahman Putra Sdn Bhd Sunway Kinrara Sdn Bhd Sunway Townhouse Sdn Bhd Pena Enterprise Sdn Bhd Sunway Semenyih Sdn Bhd Sunway Tunas Sdn Bhd Sunway Bukit Gambier Sdn Bhd Sunway City (Penang) Sdn Bhd Sunway Grand Sdn Bhd Sunway Crest Sdn Bhd Sunway City (Ipoh) Sdn Bhd Sunway Cana City Development Ltd.*
PROPERTY INVESTMENT Sunway Pyramid Sdn Bhd annual report ‘06 AND MANAGEMENT Peluang Klasik (M) Sdn Bhd 9 Sunway Carnival Sdn Bhd Platinum Success Sdn Bhd Splendid Crest Sdn Bhd Menara Sunway Sdn Bhd Stellar Destiny Sdn Bhd Sunway City Berhad Sunway Resort Hotel Sdn Bhd HOSPITALITY Sunway Hotel (Penang) Sdn Bhd Sunway Hotel (Seberang Jaya) Sdn Bhd Sunway Hotel Phnom Penh, Ltd. Allson International Holdings Limited Allson Hotels & Resorts Management Sdn Bhd Allson International Hotels & Resorts (B.V.I.) Limited Allson International Management Limited
Sunway Medical Centre Berhad HEALTHCARE SunMed@Home Sdn Bhd
Sunway Lagoon Sdn Bhd LEISURE Sunway Lagoon Water Park Sdn Bhd Sunway Travel Sdn Bhd Sunway Lagoon Club Berhad Sunway International Vacation Club Berhad Sunway Healthy Lifestyle Sdn Bhd Pyramid Bowl Sdn Bhd*
Notes: This Group Corporate Structure excludes dormant and non-operating companies * Associated Company Healthcare private hospital Sunway Medical Centre (SMC) is a services. The offering specialised tertiary healthcare with 240 beds Medical complex is an 8-level building and 45 specialist consultation suites. provided by a SMC offers professional clinical expertise team of qualified and experienced consultants, well- trained and dedicated nursing staff and supported by the latest in medical technologies and equipment. Patients have access to a wide range of inpatient and outpatient specialised healthcare facilities, health promotion programmes and 24-hour emergency services. Leisure The Sunway Lagoon Theme Park is the main attraction that draws visitors, both local and foreign, to Sunway Lagoon Resort. It is strategically located in the heart of the Bandar Sunway township in Petaling Jaya. Spanning 80 acres, the theme park draws fun seekers from all over with its reputation as a fascinating place of fun and excitement. water park has proven of Tambun In Ipoh, The Lost World to be a hit with the locals in the North. Set against a backdrop of the magnificent limestone hills, and boasting a natural hot spring pool, the park is a tourist destination like no other in the country. Property Investment Property comprises the various investment arm property SunCity’s Lagoon Resort. The resort is the components of Sunway FIABCI Prix d’ Excellence World winner of the prestigious It consists of category. 2002 in the Leisure Award & Spa, Sunway Pyramid Shopping Sunway Resort Hotel Theme Park, Sunway University Mall, Sunway Lagoon Sunway Malaysia and Sunway College, Monash University 7-million square feet world-class Medical Centre. This finest in leisure and entertainment, facility integrates the conventions, shopping malls, healthcare hospitality, education facilities. services and tertiary Hospitality flagship hotel Sunway Resort Hotel & Spa is SunCity’s It is situated within the development at Bandar Sunway. The City", built based on 800-acre "Resort Living Within modern design an overall thematic concept - combining warmth that is with an ambience and personalised uniquely Malaysian. the Main Tower, Sunway Resort Hotel & Spa comprises and The Hotel, Resort Suites, The Villas Pyramid Tower a total of 1,234 guestrooms and complete Duplex. With space, Sunway with 10,000 square metres of meeting largest hotel Resort Hotel & Spa is now the single development in Kuala Lumpur. Profile
SunCity’s most prestigious project in the pipeline is the SunCity’s Sunway South Quay development that will feature more than 4,000 residential and commercial units including luxury lakeside villas, high-end condominiums, serviced apartments, lakeside boutiques, retail spaces and offices. Among SunCity’s prominent developments is the Kiara Among SunCity’s Hills residential development. This RM800 million project is the pride of SunCity as it demonstrates the foray into the high-end superiority and marks SunCity’s market. Kiara Hills has garnered the prestigious label of the “Beverly Hills of Kuala Lumpur”. Other noteworthy projects include Sunway Damansara, Sunway SPK Damansara, Sunway Rahman Putra, Sunway Kinrara and Sunway Bayan in Sunway Semenyih in the Klang Valley, Perak. Penang and Sunway City Ipoh in Tambun, SunCity’s developments are met with great successes as SunCity’s they are built upon the foundation of strategic location and quality materials. SunCity endeavours to be the “Property Developer of Choice”. The SunCity brand has been awarded the Superbrands status and ranked fourth 2005”. Awards Property Developers “Top in The Edge’s SunCity was also top 3 in the Euromoney Real Estate 2006 among 82 property developers in Malaysia. Awards Property Development development is most outstanding flagship SunCity’s ringgit township in a multi-billion Bandar Sunway, from the bustling Petaling Jaya. Situated just 20 minutes based on the Kuala Lumpur city centre, it is developed Living Within signature SunCity lifestyle concept, “Resort fully-diversified and self- This 800-acre The City.” to SunCity’s contained township stands as a testament innovator. reliability and expert capability as a property the superlative The well-planned township structure and edifices in the architectural designs of the magnificent forte as a developer. township herald SunCity’s SunCity’s strength and stability in the Malaysian property strength and stability in the Malaysian SunCity’s Government of industry has attracted its current partner, Ltd (GIC), the Singapore Investment Corporation Pte real estate wholly-owned Government of Singapore’s as well SunCity, investment arm. GIC now owns 24% of Mall and as a 48% stake in Sunway Pyramid Shopping This strategic Sunway Resort Hotel & Spa respectively. the regional growth into partnership will propel SunCity’s and global property arenas. Sunway City Berhad (SunCity) is a member of The is a member Berhad (SunCity) Sunway City in conglomerate a well-diversified Sunway Group, operations in 1986 and Malaysia. SunCity commenced board of Bursa Malaysia Securities was listed on the main principally to develop the Bandar Berhad in 1996, Petaling Jaya. Following the success Sunway township in grown SunCity has of Bandar Sunway, of the development property investment, hospitality, and diversified into as well as healthcare. leisure and entertainment, core remains as SunCity’s property development However, significantly to SunCity’s business and contributes Its property development portfolio comprises profitability. and industrial developments. commercial, residential Corporate Corporate
Sunway City Berhad 10 annual report ‘06 Hospitality Leisure
Healthcare Property Investment
Property Development Sunway City Berhad 12 annual report ‘06 borderless andwelcominginnovative ideasregardlessoforigin. the emblemofwhatSunCitystandsfor–forwardlooking, energy. Thissimpleandclean iconofSunCityispoisedtobecome vibrant orangeportraysexcitement,action,warmth,passion and unveiling ofournewdynamicandboldlogo.Thestylised Sin In 2006,theSunwayGrouphasunifiedourbrandswith the the Tourism Ministry. and tapintoedu-tourism,whichisbeingaggressivelypromoted by are poisedtofurtherdevelopBandarSunwayasaneducation hub Malaysia’s newcampus,togetherwithSunwayUniversityCollege tourism marketsub-segments.MonashUniversitySunway Sunway InternationalVacation Club,whicharehighgrowthnew and SunwayMedicalCentre,atime-sharevacationclub, SunCity alsooffersmedicaltourismwithSunwayHealthyLifestyle tourism receipts. Malaysia in2005butaccountfor9.2%oftheRM31.9billion for only4.7%oftheestimated16.4milliontouristarrivalsin incentives, conventionsandexhibitions(MICE)whichaccounts Malaysia asatopdestinationforinternationalmeetings, continues toaligntheGovernment’s expandedeffortstoproject various segmentsofthetouristmarket.SunwayLagoonResort & Spa,PyramidTower Hotel,TheVillas andTheDuplexcaterto Our showcasehoteldevelopmentincludingSunwayResortHotel upcoming VisitMalaysiaYear 2007. positioned SunwayLagoonResortastheidealbeneficiaryof celebrated themedestination.Ourbrandingeffortshave Malaysia’s premierintegratedresortdevelopment,andAsia’s most Lagoon Resortbrand.We areproudtoberecognisedasoneof SunCity alsodrivescontinuouseffortsinbuildingourSunway customers. and provethatwewillcontinuetodeliverthebestvalueour face ofthecurrenttoughpropertymarket,SunCityhastostepup best customerservice.We believethatnow, morethanever, inthe located propertieswithgoodinvestmentvalue,anddeliveringthe anticipating ourcustomers’needsandwants,offeringstrategically have builtourbrandvaluesoninnovativeconceptsanddesigns, Branding hasbecomethecornerstoneofSunCity’s success.We developments intheseregions. SunCity developmentssetnewbenchmarksforproperty Sunway Toul KokCityinPhnomPenh,Cambodia.Thesenew Sunway BukitGambierandMutiarainPenang, launched KiaraHillsandSunwayCherasinKualaLumpur, lifestyle tonewmarkets.Inthisfinancialperiod,SunCity notch propertyconglomerate,SunCityhasbroughttheSunway providing toourcustomerslifestylelivingatitsbest.Asatop- At SunCity, wehavebeenandwillcontinuetobeapioneerin Creating Dreams-BuildingtheSunwayBrand To all ourstakeholders, Chairman’s tax ofRM421.1 million.Onacalendaryear basis,revenuehas achieved agroup revenueofRM1,574.4million andprofitbefore achievements. Forthe18months’ financialperiod2006,SunCity SunCity hasdeliveredanother yearofexcellentresultsand Delivering Promises Statement
Sunway City Berhad 13 annual report ‘06 Chairman’s Statement (cont’d)
grown from RM992.5 million in 2004 to RM1,139.4 connections, and enable SunCity to gain access to the million in 2005, with an increase in profit before tax from lucrative market of Middle Eastern property investors. RM169.2 million in 2004 to RM284.0 million in 2005. The revenue for the 1st half of 2006 is RM435.0 million compared to RM561.9 million in the 1st half of 2005. Property Investment Profit before tax was RM137.1 million in the 1st half of During the financial period, Property Investment has 2006 compared to RM131.8 million in the 1st half of achieved a commendable profit from operations of 2005. Amid a rising interest rate environment and RM78.1 million. This profit was mainly contributed by declining consumer sentiment, SunCity remains Sunway Pyramid, a reflection of strong retail performance competitive and continues to sustain our growth in the Klang Valley. Total retail sales is expected to grow capabilities. at least an average of 7% per annum in the next 3 years. This will provide the support for Sunway Pyramid’s Dividends expansion as the catalyst for immense growth of SunCity’s property investment segment. I am pleased to announce that the Board has declared a 2nd interim gross dividend of 4% per share for the Construction is in progress to add 700,000 square feet to financial period ended 30 June 2006. Together with the bring Sunway Pyramid’s net lettable area to a total of 1.6 1st interim gross dividend of 3.5% per share which has million square feet. To be completed in September 2007, been paid on 28 April 2006, the total dividends for the the expansion is projected to double Sunway Pyramid’s financial period is 7.5% per share, representing 13% of profit by 2010. The mall will showcase the colours, SunCity’s net profit. cultures and products from renowned shopping precincts around the world with distinct retail zones such as Sunway City Berhad Fashion Central, Asian Avenue, Marrakesh Street and the Property Development extended Oasis Boulevard. The new integrated mall will SunCity continues to focus on property development as continue to target the middle-income group in the its key earnings driver. During the financial period, surrounding catchment area, with a total population of 2 property development realised a profit from operations of million. RM332.9 million, contributing 79% to total group profit. Moving forward, property development has strong SunCity has also identified high growth potential in the 14 unbilled progress billings of RM825.0 million as at June retail industry in Penang. Sunway Carnival Shopping Mall will be completed by the 2nd quarter of 2007, and add annual report ‘06 2006 to build an even stronger performance in 2007. 520,000 square feet of high quality retail space in We believe our multi location, customer centric strategy Penang. SunCity is confident that with the retail of providing a range of exclusive lifestyle products, in management expertise gained from Sunway Pyramid, tune to market trends, is the key to sustaining and Sunway Carnival is set to emerge as one of Penang’s enhancing our market leadership. We differentiate our premier lifestyle mall and bring the Sunway shopping products by constantly communicating with our experience to the Northern Region. customers to gain insights into their requirements, expectations and future demands. Affirming our quality Hospitality hallmark for property development, SunCity has not only maintained our overall position in The Edge’s Top 10 Our hospitality division continues to improve Property Developers Awards but also excel in our quality performances in the past financial period, achieving achievement, improving by 4 positions. SunCity was also segmental revenue of RM224.6 million and profit from top 3 in the Euromoney Real Estate Awards 2006 among operations of RM15.4 million. Sunway Resort Hotel & 82 property developers in Malaysia. Spa registered 76% occupancy rate, while Pyramid Tower Hotel recorded 81% occupancy rate. This compares to One of our key strategic imperatives is to maintain our the average occupancy in Kuala Lumpur hotels of 66%. strategic advantage of prime locations through landbank acquisition. During the financial period, we acquired a The hotel also won The Best 5-star MICE Hotel award at total of 62 acres of prime land in the Klang Valley and the Hospitality Asia Platinum Award 2005. This is a Penang with potential gross development value of testimony of our hotel’s superior event innovation and RM981.0 million. This brings our landbank to 2,326 offerings, service delivery and diverse facilities options. acres with a gross development value of RM9.2 billion The hotel also opened the Mandara Spa in July 2006, and provides SunCity the impetus for achieving more than creating a new wellness tourism product to further RM1.0 billion launches annually. diversify the range of services we offer.
SunCity is confident that its next iconic development, Another major milestone for the hospitality division is the Sunway South Quay, with Kuwait Finance House 48% equity participation of the Government of Singapore (Malaysia) Bhd (KFH) and Employees Provident Fund Investment Corporation Pte Ltd (GIC) in Sunway Resort Board as strategic partners, will further propel its growth. Hotel Sdn Bhd, which was completed in April 2005. Both institutional investors have each taken a 20% SunCity’s strategic partnership with GIC since 2000 has strategic stake, further enhancing purchasers’ confidence produced positive results and will see an increasing in this prestigious development. Sunway South Quay will robust financial trend in the hospitality division in years have the added advantage of KFH’s international to come. Chairman’s Statement (cont’d)
Healthcare The success we have achieved has been the result of the disciplined and consistent approach we have taken in Sunway Medical Centre extends its profit trend in the executing our plans. Reaching forth, SunCity will financial period, chalking up a profit from operations of continue to focus on enhancement of our earnings base, RM10.2 million, an annualised growth of 33% from through strategic landbank acquisition, lettable space RM4.8 million in 2004. Making a name as one of the c reation and niche market developments. We will country’s premier specialist care hospitals in the short 7 continue our relentless improvement on quality, costs and years since its inception, Sunway Medical Centre has customer service. We are going to build on our unique been on a double-digit growth path, far exceeding strengths and capabilities, to differentiate ourselves from expectations. our competitors and deliver value to our shareholders.
With Malaysia’s growing need for high quality healthcare, SunCity currently holds various high-yield properties with Sunway Medical Centre is already operating at full new investment pro p e rties namely Sunway Pyramid capacity and has begun expansion to add to its current Shopping Mall, Sunway Carnival Shopping Mall and capacity, range of medical equipment and specialist Monash University Sunway Malaysia campus which are doctors. The expansion will add more than 100 beds and close to completion. SunCity is currently evaluating 44 specialist clinic suites to a total of 350 beds and 100 various proposals to unlock the potential of this pool of clinic suites. 3 operating theatres will add to the existing valuable assets amounting to approximately RM3.0 6 theatres. billion. This will enhance SunCity’s growth potential and provide immediate returns to our shareholders. Leisure Corporate Governance Sunway Lagoon Theme Park continues to draw visitors, both local and foreign to Sunway Lagoon Resort. The We are proud to maintain high standards of accountability most recent addition, the Sandy Beach is Asia’s longest and corporate governance by keeping abreast on latest man made surf beach, and has hosted Fear Factor developments in corporate transparency. With effect from Malaysia, The Quiksilver Revolution Tour, The Asian X- 1 July 2006, we will prepare our accounts using the Games and many more exciting international and local Financial Reporting Standards (FRS). events. Other new attractions unveiled include the Kalahari Kids water-play area, the Voodoo Passage and the Pirate’s Revenge, a 360-degree ride. Tapping into Appreciation new market segments, Sunway Lagoon Theme Park will On behalf of the Board, I would like to express my continue to enhance the Sunway Lagoon Resort brand. appreciation and gratitude to the Board members for their commitment and contributions made throughout the year. In Ipoh, The Lost World of Tambun water park has proven I would also like to thank all our staff and management to be a hit with the locals in the Northern Region. Set for their untiring effort in propelling SunCity forward. To against a backdrop of magnificent limestone hills and our valued customers, business associates, bankers, boasting a natural hot spring pool, the park is a unique government authorities and shareholders, I thank you for tourist destination which epitomises the Sunway Resort your continuous support and confidence in SunCity. Living concept. Transforming Lives Yours Sincerely, People + Culture + The Future In order to continuously enhance shareholders’ value, we require an organisational culture of innovation and a high standard of quality. To deliver and exceed customers’ expectations, SunCity has a strategic commitment to human capital development excellence. Our passion to Tan Sri Dato’ Seri (Dr) Cheah Fook Ling develop human capital in Malaysia’s knowledge-based Executive Chairman economy was recognised in 2005, when SunCity won Malaysia’s Innovative Human Capital Development 2004 17 October 2006 award.
With our strong and responsive management team, SunCity has cultivated an exciting and re w a rd i n g relationship with its business partners, thus providing us with new business opportunities and investments. And at SunCity, we have adopted an entrepreneurial mindset, to adapt and change, to stay competitive and maximise our opportunities. Chief Financial Officer’s Review
The financial period 20061 was characterised by inflation due to the increase in global oil prices. This resulted in increasing interest rates, both locally and internationally. In addition, cost escalation prevailed, as a result of high fuel prices and rising commodity prices. All these led to weakening consumer sentiment. Despite these challenging economic conditions, SunCity has delivered a strong performance. The 18-month net profit is RM166.7 million (annualised: RM111.1 million), a 66% annualised growth compared to RM66.9 million in 2004.
SunCity’s Rejuvenation Strategy
In line with SunCity’s dual corporate objectives of Divestment of Wonderland Business Park Land earnings enhancement and gearing reduction to increase the shareholders’ value, we had successfully completed On the back of the success of disposal of lands and Sunway City Berhad several major corporate milestones. closure of the Wonderland Sydney theme park in 2004, SunCity continued to dispose off its 50% interest in the remaining 120 hectares of APRIL 2005 Wonderland Business Park land in Sydney, Australia GIC Investment in Sunway Resort in 2005. Through this divestment, SunCity had Hotel unlocked value in this investment. The disposal price of RM59.1 million (AUD20.9 million) resulted in a
16 net gain on disposal of RM14.2 million (AUD5.0 R million). Concurrently, SunCity entered into a 50:50 annual report ‘06 e str uc co-venture agreement with the land purchaser, s tu u r c e o Australand, to develop the land into an industrial f e GEARING business park. R REDUCTION
40% Divestment of Sunway South Quay Sdn Bhd EARNINGS ENHANCEMENT e In March 2006, SunCity had divested 40% of R s i e n Sunway South Quay Sdn Bhd. Employees Provident c a MARCH 2006 a g DECEMBER 2005 pi or Fund Board (EPF) and Kuwait Finance House 40% Divestment tal Re Divestment of of Sunway South ise Wonderland Business Quay Park land (Malaysia) Bhd (KFH) have each taken a 20% equity stake in SunCity’s newest lakeside residential development in Bandar Sunway. This divestment, with a proceed of approximately RM140.0 million in total, represented a monetisation strategy adopted by SunCity to realise the market potential of the GIC Investment in Sunway Resort Hotel Sdn Bhd development land while retaining interest to (SRH) maximise the future earnings. The development will enhance purchasers’ confidence from the In April 2005, SunCity had completed the participation of EPF being the country’s largest divestment of 48% of SRH to the Government of institutional investor. SunCity can also tap on KFH’s Singapore Investment Corporation Pte Ltd (GIC). international connections for the marketing of this This represents GIC’s second investment in SunCity development to Middle Eastern property investors. Group since its 24% and 48% equity stakes in SunCity and Sunway Pyramid Sdn Bhd respectively in year 2000. With the proceed of the divestment of RM170.0 million, SunCity has reduced SRH’s gearing and improved its earnings to the shareholders. This corporate initiative has strengthened SunCity’s hospitality segment, with GIC’s international track record complementing SunCity’s hospitality expertise.
1SunCity has changed its financial year end to 30 June. Therefore, SunCity’s financial results were drawn up for a period of 18 months as compared to a period of 12 months in the previous financial year ended 31 December 2004. Chief Financial Officer’s Review (cont’d)
Strengthened Financial Performance Despite Tough Operating Environment
Property Development being the key earnings driver Segmental Revenue and Profit
SunCity strengthened its performance from the RM million growth of all the 5 business segments – property 958 development, property investment, leisure, hospitality and healthcare. Property development continues to be the key earnings driver contributing 609 61% to revenue and 79% to earnings while other business segments have shown remarkable 225 104 171 improvement in providing a stable income base for 106 123 116 65 89 the Group results. Property Property Hospitality Healthcare Leisure Development Investment
Revenue - FP 20061 Revenue - CY 2004
RM million 333
155
78 51 15 0 10 5 (14) (41)
Property Property Hospitality Healthcare Leisure annual report ‘06 Development Investment 17 Profit - FP 20061 Profit - CY 2004
Higher Profits Contributed by Higher Profit Margins and Share of Profit from a Jointly Controlled Entity
Consolidated Income Statement FP 20061 CY 2005 CY 2004 Increase/ 1H 2006 1H 2005 Increase/ 18 months 12 months 12 months (Decrease) 6 months 6 months (Decrease) Sunway City Berhad RM million RM million RM million % RM million RM million % Revenue 1,574 1,139 992 15 435 562 (23) Profit from operations 422 303 170 78 119 139 (14) Finance costs (65) (45) (48) (6) (20) (23) (13) Results arising from other investing activities 25 11 47 (77) 14 11 27 Share of results in associates and jointly controlled entity 39 15 (0) 100 24 5 380 Profit before taxation 421 284 169 68 137 132 4 Taxation (93) (81) (43) 88 (12) (38) (68) Profit after taxation 328 203 127 60 125 94 33 Minority interests (161) (93) (60) 55 (68) (34) 100 Net profit for the period/year 167 110 67 64 57 60 (5)
Basic earnings per share (sen) 40.30 26.61 16.47 62 13.69 14.59 (6) Gross Dividends per share (%) 7.50 5.00
Operating profit margin 27% 27% 17% 59 27% 25% 8 Profit before tax margin 27% 25% 17% 47 31% 23% 35 Net profit margin 11% 10% 7% 43 13% 11% 18
Note: FP – Financial Period, CY – Calendar Year, 1H – First Half
SunCity’s CY 2005 12-month revenue grew 15% year on 64% buoyed by margin growth and higher share of profits year. The corresponding net profit grew an impressive from a jointly controlled entity, Sunway SPK Homes. Chief Financial Officer’s Review (cont’d)
61% Growth in Net Profit
RM million Reporting Results Non-core Items* Core Business Results 1H 2006 1H 2005 Growth 1H 2006 1H 2005 1H 2006 1H 2005 Growth
Revenue 435 562 (23%) 0 24 435 538 (19%) Net profit for the period 57 60 (5%) 6 23 51 37 38%
* In 1H 2005, the non-core items include part of the revenue from disposal of business park land in Australia amounted to RM20 million. In 1H 2006, the non- core activities include reversal of previous years’ provision for diminution of Sunway Carnival Shopping Mall in Penang as the mall is expected to commence operation in 2007. The non-core items for the same period also include the gain on divestment of 40% equity stake in Sunway South Quay Sdn Bhd.
Despite a drop of 19% in revenue due to higher property The basic earnings per share is 40.30 sen (annualised: development revenue recognition for certain key projects 26.87 sen) as compared to 16.47 sen in 2004. Gross in 2005, the core business results for 1H 2006 show a dividend per share is 7.5% compared to 5% in 2004. net profit growth of 38% compared to 1H 2005. This is This represents a gross dividend payout ratio of 13%. mainly due to the strong property development margin from Sunway Damansara and Kiara Hills and the strong 473 profit contribution from Sunway SPK Damansara. 29%2 422 30% 25% 27% Operating profit and margin trends continued their 21% 22%2 Sunway City Berhad upward trend despite the tough operating environment. In 18% 17% the financial period 2006, the high margins arise from 16% gain on disposal of 50% interest in Wonderland Business 14% 212 193 Park land. Excluding these non-core items, SunCity’s 170 148 profit margin had increased due to contribution from 142 134 101 high-end property development of Kiara Hills and Sunway 93 SPK Damansara. 18
1
annual report ‘06 2001 2002 2003 2004 FP 2006 EBITDA Profit from operations EBITDA Profit from operations margin margin
Operational Cash Flow Generated and Invested in Major Investment Projects
Consolidated Cash Flow Statement FP 20061 CY 2004 Increase/ 18 months 12 months (Decrease) RM million RM million % Cash generated from operations 240 176 36 Taxation (91) (45) 102 Net cash flow from operating activities 149 131 14 Net cash flow from investing activities (209) 13 (1,708) Net cash flow from financing activities 47 107 (56) (Decrease)/Increase in cash and cash equivalents (13) 251 (105) Closing balance 358 384 (7)
Note: FP – Financial Period, CY – Calendar Year
Net cash generated from operating activities has expansion of Sunway Pyramid Shopping Mall, Sunway increased to RM148.5 million from RM131.4 million in Carnival Shopping Mall, the new Monash University 2004. This is in line with the growth in operating profit. Sunway Malaysia campus and Giant hypermarket in Ipoh. In the 18-month financial period 2006, the net cash flow from operations was partially used for investing activities Net cash flow from financing activities decreased mainly and also to repay some long-term liabilities. as a result of repayment of borrowings of RM188.5 million. SunCity’s net gearing ratio has also improved The increase in net cash flow from investing activities is from 0.52 times shareholders’ funds at end 2004 to 0.33 primarily due to capital expenditure, which amounted to times. RM181.8 million. The major investments included
2Arises from non-core activities, including gain on disposal of 40 hectares of Wonderland Business Park land. Excluding non-core items, EBITDA margin is 25% and Profit from operations margin is 17%. Chief Financial Officer’s Review (cont’d)
Return to Shareholders
The growth trend of gross dividend per share was backed 3.2% 5.00 by profit growth. SunCity had announced a second 5.00* interim dividend of 4% per share. This together with the first interim dividend, will result in total gross dividend 2.8% for the financial period 2006 of 7.5% per share.
The cumulative average dividend yield growth per annum 1.6% over the past 5 years, based on average annual share 1.50 1.2% price was 12%. This shows that SunCity rewards shareholders in line with its earnings growth. 1.00
- 0.0% 2001 2002 2003 2004 2006
Gross dividend Gross dividend yield * Annualised gross dividends and gross dividend yield
Treasury and Corporate Finance Management
The primary objective of treasury management is to In June 2006, Rating Agency Malaysia reaffirmed ensure that SunCity is able, at all times to meet its SunCity’s short and long term ratings of P2 and A2 financial commitments as they fall due. respectively, for the Commercial Papers/Medium Term Notes (CP/MTN). SunCity actively manages the debt portfolio according to the economic conditions and its business operations. All SunCity has a pool of valuable investment properties borrowings take into account the nature and holding including major developments under construction –
period of SunCity’s developments. Investment horizons Sunway Pyramid Shopping Mall expansion, Sunway annual report ‘06 are matched to the timeframe of borrowings. SunCity Carnival Shopping Mall, Monash University Sunway balances the sources of fund between the capital market Malaysia campus and Sunway Medical Centre expansion 19 and financial institution financing to achieve optimal cost – valued approximately at RM3 billion. SunCity will effectiveness. continue to evaluate various proposals, including the Real Estate Investment Trust (REIT), to unlock the value of these assets. We are confident this asset value realisation will further enhance SunCity’s growth potential and provide returns to shareholders. Sunway City Berhad Develop and Reinvent Finance Leaders
SunCity has outsourced its finance processing to Sunway The finance leaders in the business units are now Finance Shared Services Centre (FSSC) since year 2002. undertaking the roles of financial advisers, risk regulators With the maturing service from FSSC, the finance leaders and change managers, who provide decision support and in the respective business units are facing challenges to strategy management that link key performance reinvent their roles to be the strategic business partners indicators to the strategic achievements in maximising to the operation team. shareholder returns.
Maximising Long Term Shareholder Returns
Against the backdrop of challenging economic landscape We look forward to increase returns of property and the operating environment, SunCity is cautiously investment segment with the 4 major investment optimistic entering into financial year 2007. We are expansions – Sunway Pyramid Shopping Mall, Sunway determined to enhance and enlarge the earnings Carnival Shopping Mall, Monash University Sunway capability of property development business through Malaysia campus and Sunway Medical Centre – in the various land acquisitions and development joint ventures next 2 years. in prime locations, locally and regionally.
Koong Wai Seng Chief Financial Officer 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0.00 Volume (‘000) Volume Low High Volume Performance
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 1.901.65 2.05 1.75 2.15 1.90 2.11 2.01 2.25 1.94 2.10 1.81 2.10 1.85 2.15 1.80 1.83 1.60 1.65 1.38 1.40 1.01 1.30 1.17 1.53 1.26 1.69 1.48 1.81 1.68 1.80 1.63 1.90 1.64 1.80 1.50 6,187 5,083 6,529 2,271 4,252 2,672 2,792 1,103 766 653 4,994 1,222 1,642 4,936 5,578 1,407 3,488 1,407 1,103 1,642 4,936 5,578 2,792 2,672 1,222 766 582 4,252 2,271 4,994 653 5,083 6,529 6,187
Jan-05 Mar-05 Feb-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06
2005/2006 High (RM) Low (RM) Volume Share Share 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Share Price (RM)
Sunway City Berhad 20 annual report ‘06 Value Added Other investmentincome Share ofresultsjointlycontrolledentity Purchases ofgoodsandservices Minority interests Taxation Staff costs Finance costs Depreciation andamortisation Add: Total distributed Employees VALUE DISTRIBUTED Total valueadded Net profitfortheperiod/year Reconciliation:- Total valueadded Share ofresultsassociates Value AddedbytheGroup Revenue VALUE ADDED Providers ofcapital Governments Reinvestment andgrowth *18 months ended30June 2006 - Salariesandotherstaffcosts - Financecosts - Dividends - Corporatetaxation - Minorityinterests - Depreciationandamortisation - IncomeretainedbytheGroup P20*2004 FP 2006* Statement 35% 13% 26% 26% Value Distributed 1,574,400 (888,212) 00.631.12.04 30.06.06 161,523 188,172 2,6 392,975 724,867 392,975 724,867 392,975 166,722 724,867 686,188 188,172 161,523 141,471 M'0 RM'000 RM '000 38,181 92,873 65,039 50,538 65,039 25,251 92,873 50,538 eidYear Period ended 498 28% - 11% 34% 27% (599,359) 992,481 133,351 393,122 133,351 59,613 42,638 47,696 42,771 66,906 47,696 42,638 59,613 42,771 63,962 2,944 (267) 120 -
Sunway City Berhad 21 annual report ‘06 Hotel room rates will continue to escalate as operators manipulate yield to capitalise on growing demand. “Upscale” and “Luxury” operators are likely to be the biggest beneficiaries of this trend as begin to consumers who traded up in the 90’s indulge once again. Demand for leisure travel services will continue to Demand for leisure travel services will outpace that for business travel as there are now significantly more leisure travelers filling airline seats, checking into hotel rooms and consuming other travel services than business travelers, and this gap is expected to grow in 2006. Activities that promote stress reduction will gain in This is likely to translate into growing popularity. patronage of both amenity and destination spas by both women and men, as well as the growth of amenity spas in urban hotels that cater to business travelers and conference delegates or meeting attendees. Meetings and conventions will drive the recovery of demand for business travel services where individual business travelers will continue to seek ways to do business without traveling, while demand for travel services from meeting and convention delegates will continue to grow. Forecasts 2005 – 2007) (Source: Yesawich, Pepperdine, Brown & Russell) Tourist receipts are expected to amount to USD11.0 Tourist in 2007, million in 2006 and USD11.9 million rate of 20.8% representing an average annual growth the highest between 2003 and 2007. This conveys countries and receipts growth among all Asia Pacific forecast for reflects the continuing massive arrivals growth the country. (Source: Pacific Asia Travel Association (PATA)Predicted trends: Asia Pacific Tourism Malaysia: Key Growth Drivers for Tourism Malaysia: Key Industry in 2006 notwithstanding The outlook for 2006 remains robust, impact of lingering concerns about the potential cost of fuel terrorism, natural disasters, the escalating arrival to Malaysia is and rising interest rates. Tourist 22.6 million in estimated at 20.9 million in 2006 and growth rate of 2007. This represents an average annual the highest 20.9% between 2003 and 2007, and reflects growth of all Asia Pacific countries. Brief
Panoramic view of Sunway Lagoon Resort in Bandar Sunway Panoramic view of Sunway (Source: WTW International CEO Opinion Survey Property Sector 2006) Malaysian and foreign investors have significantly varying both Malaysian interests in the property market. However, and foreign buyers are expected to show increasing interest in the condominium/apartment subsector in 2006. Investor interest in commercial shophouse/office is expected to be left in the backburner in 2006 as compared to the previous year. The Investors Interest in 2006 Buying interest in terraced homes and high-end properties is expected to continue to be high. However, there may be some reduction in demand compared to the demand for high-rise residential year 2005. Similarly, The commercial purpose-built office subsector is is lower. expected to attract better buying interest compared with year 2005. Future Market Directions The Buy-to-Stay Interest in 2006 (Source: JP Morgan: Asia Home Builders Primers Malaysia) While interest rates rose in 2006, mortgage rates are still While interest rates rose in 2006, mortgage remains abundant, and monetary liquidity at all time low, of financing (as housing buyers can still get a high margin rise next year, high as 90%). Even if interest rates prices would growing GDP per capita and flat property remain high. mean that affordability would still Furthermore, job security and economic sentiment are stronger demand drivers of property. Meanwhile, property prices are still the cheapest in the Meanwhile, property prices are still the “Asia Housing region. The regional property report available Affordability” shows Malaysian mass residential USD360 psf in at only USD56 psf, compared to Singapore and USD81 psf in Bangkok. In the long term, Malaysia offers attractive dynamics In the long term, Malaysia offers attractive has a young Malaysia within the residential property sector. is below the age age profile where 60% of the population is still large of 30, and the average household size household. As compared to the region at 4.3 persons per household the population matures, it could drive increased growth. formation, leading to strong property demand Malaysia: Residential property market Malaysia: Residential Long term fundamentals remain attractive Economic Economic
Sunway City Berhad 22 annual report ‘06 Dedication willbringSunCitytogreaterheights. choices thatareprovidedbySunCitytosupporttheirgrowth. values fortheGroup.Customerscanbeassuredonqualityand risks tobeassessedandmanaged.TheBoardsetscreditable a frameworkofprudentandeffectivecontrolswhichenables Board continuouslyprovidesentrepreneurialleadershipwithin of ourpromises.With integrityandsteadfastcommitment,the protect theinterestofstakeholdersthroughqualitydeliverance Marching onwithpassion:SunCity’s BoardofDirectorsaimsto Building Towards Our Dream Team
Sunway City Berhad 23 annual report ‘06
Datuk Razman M Hashim Sri Dato' Seri (Dr) Cheah Fook Ling Tan Choon Kee Dato' Wong
From left to right: (Sitting) Profile of Board of Directors of of Board Profile
Sunway City Berhad 24 annual report ‘06 (Standing) From lefttoright: Ngeow Voon Yean Tan SriDato'IrTalha BinHajiMohdHashim Tan SiakTee Lim SweGuan Low SiewMoi Teo Tong How Ngian SiewSiong
Sunway City Berhad 25 annual report ‘06 (cont’d) Board of Directors of Directors Board
Malaysian Malaysian
Malaysian Profile of Profile Prior to joining SunCity, was with Genting Berhad and Star Cruises PLC in the capacity of Executive Vice President, with was with Genting Berhad and Star Cruises PLC in the capacity of Executive Vice Prior to joining SunCity, and added duties in real estate development and responsibilities in hotel operations and corporate affairs respectively, management. A Fellow Member of Royal Institution of Chartered Surveyors, United Kingdom as well as a Member of Institution of A Fellow Member of Royal Institution of Chartered Surveyors, United Kingdom and Estate Agents, Malaysia with 32 years of experience in property Surveyors, Malaysia and the Board of Valuers 60 and was the Founder Director of C.H. development and project management, both in Malaysia and overseas. Aged Surveyors, Project Managers, Estate Agents and Property Managers, of Chartered Valuation a firm & Wong, Talhar Williams, Developments Ltd, a public company whose core Malaysia. Former President and Chief Executive Officer of Abbey Woods Stock Exchange, Canada. listed on the Toronto business is property development and hospitality, Senior Managing Director, Non-Independent Executive Director Dato' Wong Choon Kee Dato' Wong Attended all of the 8 Board Meetings held in the financial period. Current directorships in other public companies include Sunway Infrastructure Berhad, Ranhill Berhad, Multi-Purpose Current directorships in other public companies include Sunway Infrastructure Berhad. Holdings Berhad, Affin Bank Berhad, OYL Industries Berhad and MAA Holdings Appointed to the Board of SunCity on 28 March 1996 and also serves as a Member of the Employees' Share Option Scheme Appointed to the Board of SunCity on 28 March 1996 and also serves as a Member Committee. Aged 67 and a Member of Australian Institute of Bankers with more than 35 years of experience in the banking industry. Aged 67 and a Member of Australian Institute the Berhad in 1964 and served in various capacities including secondments to Joined Standard Chartered Bank Malaysia Kong and Singapore. In 1994, was appointed as Executive Director/Deputy Bank's branches in London, Europe, Hong in Bank Malaysia Berhad until his retirement in June 1999. In the same month Chief Executive of Standard Chartered Finance Berhad by Bank Negara Malaysia as its nominee until January 2002 1999, was appointed as Chairman of MBf Arab-Malaysian Group. when the finance company was sold to Datuk Razman M Hashim Deputy Executive Chairman, Non-Independent Executive Director Attended all of the 8 Board Meetings held in the financial period. Attended all of the 8 Board Meetings held Current directorships in other public companies include Sunway Holdings Incorporated Berhad, Sunway Infrastructure Current directorships in other public companies Companies Berhad. Berhad and Federation of Public Listed Appointed to the Board of SunCity on 1 July 1992 and also serves as Chairman of the Employees' Share Option Scheme Appointed to the Board of SunCity on 1 Committee. Committee and a Member of the Remuneration Aged 61 and a Certified Practising Accountant by profession, he was appointed a Board Member of Financial Reporting he was appointed a Board Member Practising Accountant by profession, Aged 61 and a Certified and the Board the Board of The National Kidney Foundation of Finance in July 1997. Sits on Foundation by the Minister Council and in 1996, was a Member of Malaysian Business Liver Foundation. In 1995, appointed of Malaysian of Trustees (MIGHT) for Construction Group for High Technology of Malaysian Industry-Government honoured with the Chairmanship (Malaysia) in 1996. (Malaysia) in 1993 and CEO of the Year the accolade of Property Man of the Year and Housing, besides Action Council. In recognition of Member to Malaysian Tourism Malaysia appointed him an EXCO The Minister of Tourism in the Minister of Education appointed him to the Higher Education Council his outstanding contribution to education, worldwide and in September 2006, was appointed as conferred Honorary Doctorates by 8 leading universities 1998. Was College by His Royal Highness Sultan of Selangor. the Foundation Chancellor of Sunway University Founder of The Sunway Group and Chairman of SunCity, Sunway Holdings Incorporated Berhad and Sunway Infrastructure Sunway Holdings Incorporated Group and Chairman of SunCity, Founder of The Sunway Malaysia Securities individually on the Main Board of Bursa conglomerate of companies that are listed Berhad which are a Berhad. Tan Sri Dato' Seri (Dr) Cheah Fook Ling Seri (Dr) Cheah Sri Dato' Tan Executive Chairman, Non-Independent Executive Director
Sunway City Berhad 26 annual report ‘06 Ngeow Voon Yean Attended 7outofthe8BoardMeetingsheldinfinancialperiod. Has nodirectorshipsinotherpubliccompanies. Committee oftheBoardandGroupRiskManagementCommittee. Appointed totheBoardofSunCityon29December1994andalsoservesasaMemberAuditCommittee,Executive 2004 respectively. promoted toDeputyManagingDirectorand-PropertyDevelopmenton1October200126August Manager andheldvariousseniorpostsbeforebeingpromotedtoExecutiveDirectorinJanuary1996.Subsequently Was theRegionalOperationsManagerofMBfHoldingsBhdbeforejoiningSunCity. JoinedSunCityin1985asProject Director Executive Kingdom in1976with25yearsofexperiencethepropertydevelopmentindustry. Non-Independent Aged 54andattainedaBachelorofScienceDegree(Honours)inCivilEngineeringfromUniversityLeeds,United Development, Property - Director Managing Ngian SiewSiong Attended allofthe8BoardMeetingsheldinfinancialperiod. Has nodirectorshipsinotherpubliccompanies. Management CommitteeaswellaMemberoftheEmployees'ShareOptionSchemeCommittee. Managing Directoron26August2004.AlsoservesasChairmanoftheExecutiveCommitteeBoardandGroupRisk Appointed totheBoardofSunCityasManagingDirectoron15April2000andwassubsequentlypromotedSenior Profile of Attended allofthe8BoardMeetingsheldinfinancial period. Has nodirectorshipsinotherpubliccompanies. and GroupRiskManagementCommittee. Appointed totheBoardofSunCityon21April1997andalso servesasaMemberoftheExecutiveCommitteeBoard exhibition, shoppingandoffice. Development/Retail, thedeveloperandownerofSingapore’s largestprivatemixed-usedevelopmentcomprisingconvention, development inSingapore.LaterjoinedSuntecCityDevelopmentPteLtdastheGeneralManager-Business Singapore tojoinMarinaCentreHoldingsPteLtd,thedeveloperandmanagerofsquare,amixed-usewaterfront owner ofSungeiWang Plaza,RegentHotelandMetroplexHoldings,thedeveloperofTheMall.Subsequentlymovedto development andmanagementofmixed-usedevelopments.BeganhiscareerwithLandmarksHoldingsBhd,thedeveloper President ofShoppingandHighriseBuildingsAssociationinbothMalaysiaSingapore.Haswideexperience the Has 25yearsofworkingexperienceinpropertydevelopmentandinvestment,managementindustry. Was theFounder Director International CouncilofShoppingCenters(ICSC)andaMemberICSCAsiaPacificAdvisoryCommittee. Executive Auckland, NewZealand.IsaCouncilMemberofMalaysianAssociationHotelOwners(MAHO), of Non-Independent Aged 54andholdsaBachelorofCommerceDegreemajoringinBusinessStudiesEconomicsfromUniversity of Investment, Property - Director Managing Malaysian Malaysian Board ofDirectors (cont’d)
Sunway City Berhad 27 annual report ‘06 (cont’d) Board of Directors of Directors Board
Malaysian Singaporean Malaysian Attended all of the 8 Board Meetings held in the financial period. Current directorships in other public companies include Gamuda Berhad, SHL Consolidated Berhad, Sapura Technology Current directorships in other public companies include Gamuda Berhad, SHL Berhad. Berhad, Hume Industries (M) Berhad, APP Industries Berhad and Phillip Mutual Appointed to the Board of SunCity on 1 November 1990 and also serves as Chairman of the Audit, Nomination and Appointed to the Board of SunCity on 1 November 1990 and also serves as Remuneration Committees. Started his career as a Civil Engineer with the Public Works Department, Malaysia in 1959 and after holding various posts Started his career as a Civil Engineer with the Public Works Malaysia in 1985. Retired from of Public Works, at District, State and Branch levels, was appointed as Director-General the Government in 1990. Aged 71, a Civil Engineer by profession and graduated from Brighton Technical College, United Kingdom with a Diploma Aged 71, a Civil Engineer by profession and graduated from Brighton Technical of Management, Manila in 1976. A in Civil Engineering in 1959 and a Master in Management from Asian Institute Fellow of Institution of Engineers, Professional Engineer registered with Board of Engineers, Malaysia since 1974; United Kingdom since 1989; Fellow of Malaysia since 1979; Chartered Engineer registered with Engineering Council, United of Highways and Transportation, Institution of Civil Engineers, United Kingdom since 1989; Fellow of Institution Malaysia since 1990. Also a Member of Kingdom since 1990 and a Member of Association of Consulting Engineers, Malaysian Institute of Management since 1976. Senior Independent Non-Executive Director Attended all of the 8 Board Meetings held in the financial period. Bin Haji Mohd Hashim Sri Dato' Ir Talha Tan Has no directorships in other public companies. Appointed to the Board of SunCity on 6 March 2002 and also serves as a Member of the Executive Committee of the 6 March 2002 and also serves as a Member of the Executive Committee of Appointed to the Board of SunCity on Board. Currently is the Executive Vice President of GIC Real Estate Pte Ltd, the real estate investment arm of Government of President of GIC Real Estate Pte Ltd, the real estate Currently is the Executive Vice Also a Chartered Financial Analyst and a Member of Association for Investment Singapore Investment Corporation Pte Ltd. and achievements were the gold medals won from Singapore Institute of Valuers Management and Research. Among his Australia from 1989 to 1995 and a Portfolio Director of Jones Lang Wootton Singapore Institute of Surveyors. Former Management before he joined GIC Real Estate Pte Ltd in 1997. Property Division in Suncorp Investment Manager, Aged 52 and holds a Bachelor of Science (Estate Management) Second Class Honours Degree from University of Singapore Aged 52 and holds a Bachelor of Science United States of America. from Darden School of Business, University of Virginia, and a Master of Business Administration Non-Independent Non-Executive Director Attended 7 out of the 8 Board Meetings held in the financial period. Attended 7 out of the 8 Board Meetings Lim Swe Guan Current directorships in other public companies include PKNS Infra Berhad and Worldwide Holdings Berhad. include PKNS Infra Berhad and Worldwide Current directorships in other public companies Appointed to the Board of SunCity on 3 December 1999. Appointed to the Board Has more than 32 years of experience in the areas of accounting, finance and administration. Started her working career finance and administration. Started of experience in the areas of accounting, Has more than 32 years positions. In 1990, and had since held various managerial Negeri Selangor (PKNS) in 1973 with Perbadanan Kemajuan General Manager Group for 4 years and is currently the Deputy IGB and IJM with the private sector, was seconded to work PKNS. (Corporate Affairs) of An accountant by profession and a Member of Malaysian Institute of Accountants. Aged 56 and holds a Bachelor of Institute of Accountants. Aged 56 and and a Member of Malaysian An accountant by profession Graduate) from University of Malaya. and a Diploma in Accountancy (Post Economics (Accounting) Low Siew Moi Low Siew Non-Independent Non-Executive Director Profile of Profile
Sunway City Berhad 28 annual report ‘06 Independent Non-Executive Director Non-Executive Independent Tan SiakTee Attended 6outofthe8BoardMeetingsheldinfinancialperiod. Has nodirectorshipsinotherpubliccompaniesMalaysia. Remuneration Committees. Appointed totheBoardofSunCityon18April2001andalsoservesasaMemberAudit,Nomination Singapore PhilatelicMuseumandaMemberofNationalParkBoard(GardenCityFundBoard). Is theVice ChairmanofTong ChaiMedicalInstituteofSingapore,DirectorSingaporeDanceTheatre,Chairman board ofLTA's ArchitecturalDesignPanelonMRT stationsandaMemberofArtsinTransit byLTA. Popular HoldingsLimited).InAugust2005,wasappointedasaMemberofNationalHeritageBoardandalsositsonthe Also sitsinpubliclistedcompaniesasDirectorofCourts(Singapore)LimitedandPopularLandPteLtd(asubsidiary USA, SpainandSweden. holding insectorssuchascommercial,residential,industrialandhospitalitySingapore,Malaysia,China,Australia,UK, Group andHongHowofCompanies.TheCompanies'businessesrangefrompropertydevelopmentinvestment Property ManagerofInternationalRealEstateInstitute.PresentlyistheChairmanandManagingDirectorTong Eng RIBA, FRAIAandAPAM (ArchitecturalBodies),AssociateMemberofSIPandAPA (PlanningBodies)andaRegistered Aged 63andholdsaBachelorofArchitecture(Honours)DegreefromUniversityMelbourne,Australia.AMemberSIA, Director Non-Executive Independent Teo Tong How Profile of . AttendanceofBoardMeetings 4. ConvictionforOffences 3. Conflict of Interest 2. FamilyRelationshipwithDirectorand/orMajorShareholder 1. NOTES: Attended allofthe8BoardMeetingsheldinfinancial period. Current directorshipsinotherpubliccompaniesincludeBank ofChina(Malaysia)BerhadandAmsteelCorporationBerhad. Committees. Appointed totheBoardofSunCityon26November2001andalsoservesasaMemberAuditNomination (Malaysia) BerhadasanIndependentNon-ExecutiveDirector. former DirectorandAdviserinAsiaCommercialFinanceBerhadfrom1997to1999.InApril2000,joinedBankofChina for theperiodfrom1994to1997afterLeeWah BankMalaysiaoperationswasincorporatedin1994.Also Officer forMalaysianoperationsin1975.FormerDirectorandChiefExecutiveUnitedOverseasBank(M)Berhad Joined LeeWah BankLtdin1973asManagerofMalaysiaCentralOfficeandwaspromotedtoDirectorChiefExecutive Chinese BankingCorporationandChungKhiawBankfortheperiodfrom1969to19711973respectively. Has extensiveexperienceinthebankingindustry. FormerChiefInternalAuditorforMalaysianoperationsin Overseas Started hiscareerasanAuditorinCoopers&Lybrand, SydneyandlatersecondedtoCoopers&Lybrand, KualaLumpur. Administrators andaMemberofMalaysianInstituteCertifiedPublicAccountants. of InstituteCharteredAccountants,Australia,AssociateMembertheSecretaries & Aged 66andholdsaBachelorofCommerceDegreefromUniversityNewSouthWales, Australia.AnAssociateMember Malaysian Singaporean The attendance of the Directors at Board of Directors' Meetings is disclosed in the Corporate Governance Statement. Governance Corporate the any. in if disclosed offences, is traffic Meetings than other Directors' of years 10 Board past at the Directors within the of offences for attendance The convicted been has (SunInc). Directors Berhad the of None Incorporated Holdings Sunway of Shareholder Major and SunCity. of Director a is shareholder Ling major Fook and/or Cheah (Dr) director Seri any Dato' with Sri Tan relationship (a) family any has Directors the of None (b) Low Siew Moi is a Director of Worldwide Holdings Berhad whose principal activity is similar to SunCity Group namely property namely Group SunCity to similar is activity principal whose Berhad Holdings Worldwide of Director a is Moi Siew Low (b) Save as disclosed, none of the other Directors has any conflict of interest with SunCity Group. SunCity with interest of conflict any has Directors other the of none disclosed, as Save deemed interest in SunwayMas Sdn Bhd and its subsidiaries via SunInc, whose principal activity is similar to SunCity Group name Group SunCity to similar is activity principal whose SunInc, via subsidiaries its and Bhd Sdn SunwayMas in interest deemed property development. property and investment. and Board ofDirectors (cont’d) development He has He ly
Sunway City Berhad 29 annual report ‘06 Profile of Senior Management
Corporate Office Yuen Kam Wah Personal Assistant to Chairman Certified Accountant, MIA, CPA, MICPA and FCPA
Mr Yuen is the Personal Assistant to the Chairman of Sunway Group and is an Accountant by profession. He has more than 40 years of management experience and was formerly a Group Finance Director of a public listed company. He is a member of the Malaysian Institute of Accountants (MIA), the Malaysian Institute of Certified Public Accountants (MICPA) and the Fellow Certified Practising Accountants of Australia (FCPA).
Koong Wai Seng Chief Financial Officer (Sunway City Berhad Group) Bachelor of Accounting Degree (Honours), University of Malaya
Mr Koong is a Certified Accountant of Malaysian Institute of Certified Public Accountants (MICPA) and a member of the Malaysian Institute of Accountants (MIA). He has 13 years of financial management experience in a variety of industries including audit, financial advisory, leisure, hospitality, healthcare, property development and property investment. Before joining SunCity, he was the Audit Senior cum Enterprise Group Consultant in Arthur Andersen. He joined SunCity as an Assistant Manager of Sunway Lagoon Sdn Bhd in 1995 and was then promoted to General Manager of Property Development Division of Sunway City Berhad before attaining his current role. Sunway City Berhad Property Development Ho Hon Sang Chief Operating Officer – Property Development (Sunway City Berhad) Bachelor of Engineering (Hons), University of Malaya
30 Mr Ho started his professional career as an engineer with Esa Jurutera Perunding Sdn Bhd and was involved in the North
annual report ‘06 South Highway project. In 1988, he joined United Engineers Malaysia Berhad as a Senior Manager till 1994. He has over 10 years of experience in the property development industry. He joined SunCity as an Assistant General Manager and was then appointed as the Unit Profit Centre Manager and also a member of the Board of Directors of Sunway Damansara Sdn Bhd. He assumed his current position in 2005. He has been a member of the Institute Engineers of Malaysia since 1988 and the Board of Engineers of Malaysia since 1989.
Ong Pang Yen Senior General Manager – Project (Sunway City Berhad) B.Eng (Hons), LLB (Hons)
A graduate in Civil Engineering from the University of Malaya, Mr Ong has served in the Public Works Department for 8 years before joining SunCity. Starting his career in the Group as a Resident Engineer in the Seberang Jaya Town Centre, he was, soon after, deeply involved in the Group's pioneering overseas investments projects in Cambodia, Zimbabwe, South Africa and Australia. A qualified professional engineer, Mr Ong also has a Law degree from the University of London.
Ong Ghee Bin Senior General Manager (Sunway City Berhad) B.Eng (Hons) in Civil Engineering, Certified Diploma in Accounting and Finance
Mr Ong spent 4 years with a Civil & Structural Consultant Engineering firm prior to joining Sunway City Berhad in 1989. Over the last 17 years with SunCity, he was involved in property development and property investment projects undertaken by the Group. Some of the projects he handled were the Bandar Sunway development, Sunway City Ipoh, Sunway Semenyih, Sunway Cheras, Menara Sunway Headquaters, Sunway University College, Sunway Pyramid, Sunway South Quay, Monash University Sunway Malaysia Campus and Sunway Pyramid Expansion. Profile of Senior Management (cont’d)
Property Investment Chan Hoi Choy General Manager (Sunway Pyramid Sdn Bhd) Bachelor of Science (Honours) in Managerial and Administrative Studies, University of Aston, Birmingham, United Kingdom
Mr Chan has with him more than 24 years of working experience in the shopping complex industry. He has held several senior positions in Berjaya Starcity (presently known as Times Square), Berjaya Megamall and Sungei Wang Plaza before joining SunCity. He has been an office-bearer for the last 15 years with Malaysian Association for Shopping and Highrise Complex Management (PPK). He is currently the Vice President for PPK.
Hospitality Jean Jacques Kiefer Group General Manager – Sunway Resort Hotel & Spa Managing Director – Allson International Hotels & Resorts (Sunway Resort Hotel Sdn Bhd) Professional Degree in Hotel & Restaurant Management, Hotel School in Strasbourg, France
A French national, Mr Kiefer has traversed the world as a top hotelier, including many years in Malaysia and Asia, bringing with him over 25 years of experience. His dual role as Group General Manager and Managing Director, he oversees 13 hotels under the Sunway and Allson brands. He is also active in a number of industry and community organisations. Fluent in French, English and German, he acquired several degrees and professional certificates from private institutes in France, Switzerland, Canada and Cornell University in the United States.
Hanley Chew Chief Executive Officer – Allson International Hotels & Resorts (Allson International Hotels & Resorts) Degree in Company Secretarial Practices and Financial Accounting, Institute of Chartered Secretaries & Administrators annual report ‘06
(ICSA), London 31
Mr Chew brings vast hotel and travel industry experience to SunCity, having spent 18 years in a number of key positions with international and local hotel chains. He last held the position of Vice President – Business Development, a role he took on in 2002 when he joined SunCity. He is responsible for the management of all hotels within the Sunway and Allson brands. He also has a key role in the development of new management contracts within the region. All global functions, regional heads and hotel general managers of the respective brands report to him.
Healthcare Sunway City Berhad Dr Chong Su-Lin Chief Executive Officer (Sunway Medical Centre Berhad) MBBS London, MBA London
Dr Chong was a Medical Practitioner for 6 years at the National Health Service (NHS) UK before becoming a Management Consultant at Cambridge Pharmacy consultancy in England. She spent 4 years in Subang Jaya Medical Centre (SJMC) as the Director of Ancillary Services and 2 years as Project Director for the International Medical University (IMU). Besides holding her current role, she is also the Secretary to the Association of Private Hospitals of Malaysia (APHM).
Leisure Aaron Soo Boon Choon Chief Executive Officer (Sunway Lagoon Sdn Bhd) Masters of Business Administration (MBA) from MIM – University of Bath, UK
Mr Soo was the pre-opening General Manager of Sunway Hotel, Shenzhen, China in 1997 till 1998. He rejoined SunCity in 2002 to manage Sunway Hotels in Georgetown and Seberang Jaya, Penang, and had done tremendously well in improving the performance of the hotels. On 1 November 2005, he was promoted to Senior General Manager of the Leisure and Hospitality industry. He now oversees both the Lost World of Tambun, Ipoh and Sunway Lagoon Theme Park in Bandar Sunway.
Sunway City Berhad Berhad Berhad Berhad Berhad City City City City City Sunway Sunway Sunway Sunway Sunway Employees Engaging Our Our Engaging
Sunway City Berhad 32 annual report ‘06‘05 Investing inOurTalent models, testsandevaluations. Event Interviews,PsychometricProfiling,competency human capitalmanagementtools,suchasBehavioural In addition,SunCityselectstherighttalentusingvarious creatively tobusinessopportunities. and havetheabilitytothinkoutofboxrespond passionate abouttheirareaofexpertise,marketsavvy, growing team.Therightpeoplearethosewho SunCity looksforthehighestcalibrepeopletojoin Finding theRightTalent in thefuture. commercial success.Investinginemployeesisinvesting Well trainedandmotivatedemployeescontributeto offering extensivetraininganddevelopmentprogrammes. Secondly, SunCityinvestsinhumancapitaldevelopment, person fortherightjob. Firstly, SunCityispassionateaboutfindingtheright belief istranslatedintoapassionandaninvestment. SunCity believesthatourpeoplearestrength.This Our People Engaging Our competitive advantage. solid managerialskillsisthekeytohumancapital SunCity believesthatstrongleadershipsupportedby performers. development onpeoplewhohaveproventhemselvestobe Management Programmeare2majorinitiativestofocus The LeadershipDevelopmentProgrammeandtheTalent results aredelivered. placed ontraininganddevelopmenttoensurethatbest to drivethebusinessfuture.Heavyemphasisis developing andengagingtheskillsbehaviorsitneeds and businesspartners.SunCityinveststimeeffortin to achievinghighstandardsofservicebothconsumers SunCity believesthatthedevelopmentofstaffiskey Employees (cont’d) never-ending guidance frommanagement. environment where everyoneworksasateamand thereis to allstaff.Iespeciallylike theconduciveworking learnt andknowledgegainedfrom trainingsaredisseminated sharing knowledgeisencouraged and commendable.Lesson seminars thathavebeenprovided tome.Thecultureof knowledge areconstantlygroomed withtrainingsand trips andawarenesstalksforus toenjoy. Myskillsand Club organisesmanyexcitingactivities,overseasandlocal live ahealthybalancedlife.With that,theSunwaySports professionally andgrownpersonally. We areallencouragedto and thevaluespractisedinSunCity, Ihavegainedmuch demanding yetfulfilling.With thetwo-waycommunication My journeyinSunCityforthepast17yearshasbeenvery Property DevelopmentDivision Manager –Sales Liew KimYen
Sunway City Berhad 33 annual report ‘06 Best Employer in Asia 2001, by Hewitt Associates Asia Street Journal and The Wall 2004, Innovative Human Capital Development Award by JT Frank Academy Innovative Learning & Development Recognition by JT Frank Academy Award, Malaysia Emerging Knowledge Organisation Award 2005, by JT Frank Academy Aligning Our People Aligning pool of talents. Engaging SunCity has a diverse diverse talents and strengths is employees with such Balanced Scorecard. This system made easier with the and every employee the vital role he makes clear to each of SunCity. or she plays in the success management has also helped to Leveraging knowledge employees to be even more customer empower SunCity's and encourage continuous learning focus. We a culture of candor. development and propagate nationalities working throughout There are many different cultures, yet we our organisation, emboding different face challenges work as one team, with one vision. We as continuously share our experiences as well together, motivate and learn from each other. Motivating Our People environment employees enjoy a dynamic work SunCity’s targets, creativity that challenges and supports stretched rewarded with and innovation. Their efforts are competitive packages and attractive bonuses. leads to SunCity's emphasis on coaching and mentoring to sustained superior performance, commitment SunCity improvement and positive relationships. especially encourages and rewards innovation, breakthrough ideas. enhancements SunCity focuses on job satisfaction occupational covering diverse areas such as work safety, encourages its health and leisure activities. SunCity and their well- employees to take good care of themselves being. SunCity has won many awards for excellence in human capital management. Some of the awards that were accredited are: (cont’d)
Employees Employees
Ong Ghee Bin Senior General Manager Property Investment Division I am proud to lead the team for this RM500mil Sunway Pyramid Shopping Mall expansion project and RM170mil new Monash University Sunway Malaysia campus. It gives me the opportunity to execute the vision and dream of our adopt an open-door management style where Chairman. We staff are encouraged to express their ideas and opinions also empower our staff to take on responsibilities We freely. and make decisions. If they make mistakes they are encouraged to learn from it and become more competent. Engaging Our Our Engaging
Sunway City Berhad 34 annual report ‘06 Engaging Our competencies. personal strengthsandexpandingtheirskills and life.Individualsgrowbydevelopingtheir enjoy thebenefitsofpersonalsatisfactionwithwork management andstaffaregiventheopportunityto Through leadershipdevelopment,SunCity's SunCity. and enthusiasticindividualswhohavebeenloyalto programmes areextendedtodedicated,motivated company. SunCity'sLeadershipDevelopment advantage thatdeterminesthesuccessof comprise theorganisation.Theyarecompetitive that anorganisationpossessesisthepeople SunCity believesthatthemostimportantresource stronger leaderswithhigherleadershipqualities. builds ondevelopingindividualsinbecoming organisation. SunCity'sLeadershipDevelopment in andtheutilisationofhumancapitalwithin Leadership developmentisthestrategicinvestment Leadership Development Employee byClassification2005 Employee byClassification2006 Management Management Executive Executive Employees 51% 51% Non Executive Non Executive 39% 40% 10% 9% (cont’d) and opportunities ofthefuture. spear thewayahead,andIlook forward totheseprospects capital, brandcredibility, andreputationsustainability will dynamics ofthehospitalityindustry iseverevolving;human invigorate accountabilitytoachieve businessgoals.The the organisationtoorchestrate greater partnershipsand through teamandpersonaldevelopment, allowingmembersin leadership, creativity, strategicmindsetandhighperformance company. Thereisaunanimous commitmenttoself- and serviceinnovations,thefinancialperformanceof organisational culture,emotionalbrandattraction,product influence thewayHotelbrandimpactsstrategies, of experiencesandimmenseopportunitiestoinnovate years withtheGroup,I’vebeenenrichedakaleidoscope to engagemypassioninthehospitalityindustry. Inthepast6 Sunway ResortHotel&Spahascontinuallyfoundnewways Property InvestmentDivision International Hotels&Resorts Group DirectorofMarketing&Communications–Allson Director ofMarketing-SunwayResortHotel&Spa Farizal B.Jaafar
Sunway City Berhad 35 annual report ‘06
Sunway City Berhad Berhad Berhad Berhad Berhad City City City City City Sunway Sunway Sunway Sunway Sunway Bringing Your Dreams To Life To Dreams Your Bringing Proposed high-end apartment building at Sri Hartamas, Kuala Lumpur
Sunway City Berhad 36 annual report ‘06‘05 Property “Beverly HillsofKualaLumpur”. development, creatingtop-notch Sunway SouthQuayisSunCity’s uniquely moderntropicaldesign residential enclave,hosting88 Sunway SPKDamansaraoffers next iconicdevelopment.This 133-acre projectisalakeside courtyard villas,knownasthe luxurious bungalowsand34 homes boasting2spacious Kiara Hillsisanexclusive master bedrooms. lifestyle living. Development growth citieswhilstmaintainingitsreputationasadeveloperofqualityhomes. Group tonewlevelsofearnings.SunCityhasexpandedanddeepeneditspresenceinMalaysia’s Moving forward,SunCityisconfidentthatitsdevelopmentandinvestmentstrategieswillpropelthe customers valuethroughstrategiclocation,innovativelayoutanddesignqualityproducts. developments portraySunCity’s signaturelifestylelivingconceptsandfocusesonproviding Sunway CherasintheKlangValley andSunwayMutiaraBukitGambierinPenang. These SunCity’s prominentdevelopmentsareSunwayDamansara,KiaraHills,SPKDamansaraand Property developmentisthecorebusinessofSunCityandkeycontributortoearnings.Among Ho Hon Sang Hon Ho challenging market” in theincreasingly managing customers'value competitive edgeby “We areheretocreate Chief Operating Officer Operating Chief Property Development Development Property 2006 Milestone: Future Plans: period, despitethechallengingmarket. supported byRM854millionlaunchesduringthefinancial Property developmentachievedsalesexceedingRM1billion strategic allianceswith potentialbusiness partners. company’s futureexpansion, itwillcontinuetoseek andform India andChina toengageinjointventures. Inviewofthe SunCity hasbeen respondingpositivelytothe invitationfrom Plans areafoottoextendSunCity’s globalreach.To date, condominiums. The firstphasewillconsistof luxurylakesidebungalowsand early 2007,startingwiththe high-endresidentialprecinct. Sunway SouthQuayinBandar Sunwaywillbelaunchedby into anindustrialdevelopment. its lastremainingparceloflandinWonderland BusinessPark entered intoa50:50jointventurewithAustralandtodevelop achieved 70%takeuponlaunches.InAustralia,SunCity development inPhnomPenh,SunwayToul KokCityhas countries. InCambodia,thepioneeringjointventure SunCity’s overseasdevelopmentsarewellspreadtodifferent and 2 achieved awhoppingsaleof99%thetotal608units 2 to bepopularwithurbanitesupgradedfamilies.Ithas development withauniquelymoderntropicaldesign,proved Sunway SPKDamansara–Atrulyfamily-friendly Garden Villas project,agatedtownhousecommunity. feature a40feetwidebackgardenandLamanImpian projects arethe3-storeyParkVille GardenTownhouses that enjoying 30%to50%capitalappreciation.Otherexciting Sunway hasachieved94%takeupratewithcompletedunits development withgoodaccessibilityandamenities.Dataran Sunway Damansara–A400-acreintegratedmixed owners andexpatriates. space, grandeurandlifestylemakeithighlyattractiveto location andthemoderntropicaldesignemphasisingluxury high 70%takeupdespiteitspremiumpricing.Itsprime of elevatedlandinMontKiara,KualaLumpurachieveda Kiara Hills-Thismasterpiecedevelopmentonthelastpiece 1 / 2 storey terracehomes. *18 monthsended30June2006 0320 FP2006* 2004 2003 367 Revenue (RMmil) 609 958
Sunway City Berhad 37 annual report ‘06
Sunway City Berhad Berhad Berhad Berhad Berhad City City City City City Sunway Sunway Sunway Sunway Sunway Lifestyle Experience Lifestyle Providing Total Total Providing Sunway Pyramid Shopping Mall
Sunway City Berhad 38 annual report ‘06‘05 Property savouring gastronomicaldelights. skating liketheInternationalIce Oasis Boulevardflashesawhole look. Shopperscanrelaxamidst Sunway PyramidIceprovidesa the swayingpalmtrees,shady skating aswellcompetitive convenience, underoneroof. giant canopiesandenjoythe features anewcosmopolitan around theworld,allatyour year-long summersunwhile shopping journeytakesyou Hockey andFigure Skating venue forbothrecreational global retailconceptthat At SunwayPyramid,your Malaysia’s onlyicerink, Competitions. hieroglyphics decoratingfacades,alongwithnumerousPharonicstatuaries. entrance. Therestofthebuildingisembellishedinmonumentalstyle,completedwith recognised designistheEgyptian-inspiredpyramidwithaneye-catchinglionstandingguardat its uniquedevelopment.Themallisashoppinghavenforbothtouristsandlocals.SunwayPyramid’s Sunway Pyramid,SunCityGroup'slandmarkshoppingmallhaswonmanyawardsanddistinctionfor Investment Chan Hoi Choy Hoi Chan of thecurve”. ourselves tokeepahead renew andreinvent We striveto healthcare. hospitalityto entertainment, leisure, shopping, experiences rangingfrom provide totallifestyle “We areproudtobeable General Manager General Sunway Pyramid Shopping Mall Shopping Pyramid Sunway 2006 Milestone: Future Plans: are foreignvisitors. mall drawsabout1.5millionvisitorsmonthly, ofwhich20% find avarietyinfashion,leisure,entertainmentandF&B.The mix ofinternationalandpopularlocalbrands.Visitors will specialty outletsprovidesarichvariegatedmerchandising rate. Adistinctiveretaillandmarkwith4floorsand350 Sunway PyramidShoppingMallenjoysa100%occupancy premier lifestylemallsinthe mainland. square feet,thisshoppingmall issettoemergeasoneof 2nd quarterof2007.With a net lettableareaof520,000 Carnival ShoppingMallisexpected tobecompletedbythe In themainlandofPenang, thedevelopmentofSunway 700,000 squarefeet. incremental earningsfromanadditionalnetlettableareaof boast agrossbuilt-upof4millionsquarefeetandprovide Phase 2extension.Oncecompletedin2007,themallwill tourism infrastructure,SunwayPyramidhasembarkedonits With Government’s continuingefforttofurtherimprove Jaya MunicipalCouncilin2005. The BestLandscapeandCleanliestToilet bySubang by Tourism Malaysia.SunwayPyramidwas recentlyhonored Most SupportiveShoppingOutlet2004(ShoppingComplex) the InternationalRealEstateFederation(FIABCI)andThe Shopping CentreAward 2000bytheMalaysianChapterof par toworldexcellence.SunwayPyramidwonTheBest Sunway Pyramidstrivestoprovideinnovationandserviceon 2008. Sunway PyramidIcealsowonthebidtohostSkateAsia tournaments andSkateMalaysia2004,20052006. successfully hostedtheprestigiousWorld IceHockey5’s Sunway PyramidIce,Malaysia’s onlyindoorice-skatingrink ESPN CGUAsianBowlingTours. Malaysian InternationalOpenBowlingChampionshipsand events suchasthe1998CommonwealthGames, standard bowlingcentre,whichhostedmanyinternational The 48-lanePyramidMegaLanesisaninternational *18 monthsended30June2006 0320 FP2006* 2004 2003 98 Revenue (RMmil) 106 171
Sunway City Berhad 39 annual report ‘06
Sunway City Berhad Berhad Berhad Berhad Berhad City City City City City Sunway Sunway Sunway Sunway Sunway
Experience Sunway Resort Hotel & Spa Delivering Memorable Memorable Delivering
Sunway City Berhad 40 annual report ‘06‘05 Hospitality With diverseandflexiblefunction world ofindulgence,immersedin enchanting sanctuarypromisesa tourist class4-starhoteloffering space, anordinaryeventcanbe bounded withthecreativityand a synthesisofsoothingsounds Break awayandrechargeyour fully-furnished servicedsuites occasion. Beawedandspell- turned intoanextraordinary 534 guestroomsand230 senses atTheVillas. This Pyramid Tower Hotelisa and exhilaratingaromas. imagination offered. and studios. Award ofExcellence,Best5-starMICEHotelAward byHospitalityAsiaPlatinumAwards. unique flexibility, innovation,creativityandprofessionalismofitseventmanagementteamwonthe rooms offeringmorethan100,000squarefeetofworld-classmeetingspace.Itssuperiorfacilities, exhibition (MICE)addresswitha60,500squarefeetstate-of-the-artconventioncentre,43function SRHS isrecognisedamongMalaysia’s mostpreferredone-stopmeetings,incentives,conventionsand Pyramid Tower HotelandResortSuites. villas andserviced-residenceswiththeflagshipSunwayResortHotel&Spa,TheVillas, TheDuplex, International Airportand25minutesfromthecitycentre,SRHSoffers1,234guestrooms,suites, integrated resortdestinationofSunwayLagoonResort.Just35minutesfromKualaLumpur Sunway ResortHotel&Spa(SRHS)isamultiplehoteldevelopmentlocatedwithinthefully Jean Jacques Kiefer Kiefer Jacques Jean customers”. both internalandexternal for innovation evenfurther, to pushingtheboundariesof and memorable experiences, delivering agreaterlevelof “We lookforwardto Managing Director, Director, Managing Allson International International Allson Group General Manager, General Group Sunway Resort Hotel Hotel Resort Sunway Hotels & Resorts & Hotels & Spa Spa & Future Plans: 2006 Milestone: • • RefurbishmentoftheGrandLagoonBallroomand • will undergothefollowingupgrades: - expanded classesofleisure and businesstravelers,SRHS anniversary. InordertoupdateSRHS’appealthe Come November2007,SRHSwillcelebrateits10thyear sublime treatmentsandtherapies. from Bali,Indonesia,andissettoprovideadelugeof Mandara Spaisagloballyrecognisedwellnesstourismbrand into anewtourismsub-sectorandhaveplanstogrow. With theopeningofMandaraSpainJuly2006,SRHStaps becoming theindustryleader. position SRHSasourcustomers’preferredprovider, thereby strategic activities.TheobjectiveoftheBSCapproachisto current financialresultsandcreatingfuturevaluethrough a managementapproachtoleadSRHSfocusonachieving Early 2005theBalancedScorecard(BSC)wasimplemented, expertise toSRHSpropelitsgrowthinthefuture. partnership willbringGIC’s internationalassetmanagement (GIC) withthecompletionofits48%equitydivestment.This Government ofSingaporeInvestmentCorporationPteLtd In April2005,SRHSwelcomedanewstrategicpartner, their budget,achievingoccupancyratesofabove80%. accord thecomfortandfunctionalitydemandsofguestswithin Since itsopening,PyramidTower Hotelhassuccessfully concept tocomplementSRHS’traditionalfull-servicehotel. Mohamad KhirBinToyo. Thenewhotelintroducesano-frills was officiallyopenedbySelangorChiefMinister, Dato’SeriDr In February2005,the4-star, 764-roomPyramidTower Hotel Centre. Refurbishment of guestroomsandtheupgrade ofFitness rooms. IT enhancementsforguestrooms, ballroomandfunction introduction ofnewmeetingfacilities atSRHS. *18 monthsended30June2006 0320 FP2006* 2004 2003 100 Revenue (RMmil) 123 225
Sunway City Berhad 41 annual report ‘06
Sunway City Berhad Berhad Berhad Berhad Berhad City City City City City Sunway Sunway Sunway Sunway Sunway The Lives We Touch We Lives The Improving Improving
Sunway City Berhad 42 annual report ‘06‘05 Healthcare Sunway MedicalCentre’s service medical services:fromdiagnosis extends fromacutecareto innovative qualityserviceswith safe andmodernfacilitiesto achieve continuoushuman Providing professionaland Full service,acutetertiary its subsidiarycompany, through totherapeutic. capital development. in thehomethrough SunMed@Home. tertiary healthcareprovidersector. arena, SunwayMedicalCentreisstartingtoberecognisedasoneofthekeyhospitalswithin from 60to195inpatientbedsbytheendof2005.Despitebeinginanincreasinglycompetitive Sunway MedicalCentrecelebratedits6thbirthdayon15November2005,havinggrownincapacity hospital’s capacity. and technology. Inviewofthisencouragingperformance,SunCityisplanningtoexpandthe significant playerwithitsteamofreputableandexperiencedSpecialistDoctors,hospitalfacilities Although anewentrantintheindustry, thehospitalhasmadesteadyprogresstowardsbecominga SunCity venturedintothehealthcareindustrythroughSunwayMedicalCentreinNovember1999. Dr Chong Su-Lin Chong Dr lives wetouch”. dedicated toimprovingthe Medical Centreis Sunway the community. a differenceinthelivesof opportunity forustomake Itisan Bandar Sunway. integrated townshipof component forthefully- – Providingthehealthcare MedicalCentre “ Sunway Chief Executive Officer Executive Chief Sunway Medical Centre Medical Sunway 2006 Milestone: Future Plans: and services. will beexpanded toallowforadditionalmedical technology Pharmacy, Radiology, Medical LaboratoryandRehabilitation Critical Carebeds.Keyservice departmentssuchas Outpatient ClinicSuites,9 OperatingTheatresand31 total capacityof350inpatient beds,90Specialist 2006, andbyend2008,Sunway MedicalCentrewillhave Expansion workshavecommenced inthesecondhalfof Baby Services. Digestive HealthCentre,Travel Medicine as wellMum& Rehabilitation Medicine,Speech&Hearing,DentalServices, developing expertiseinothernicheareassuchas strengths inNeurology, Neurosurgery andNeuro-Radiologyby Sunway MedicalCentrewillcontinuebuildingonitsexisting employees. now numbersat120ConsultantSpecialistDoctorsand650 within thetertiaryhealthcareprovidersector, staffstrength Having achievedrecognitionasbeingoneofthekeyhospital Projects categoryfromHospitalManagementAsia. Management PortalsubmissionundertheInternalService received theRunner-up awardfortheKnowledge silver awardfortheservicesector. SunwayMedicalCentre for OccupationalSafetyandHealththroughreceivingthe Year 2005alsosawachievementsintheMalaysianSociety accredited theISO15189. being thefirstMedicalLaboratoryinMalaysiatobe Sunway MedicalCentremadenationalhistoryin2005by Malaysian SocietyforQualityinHealth(MSQH)2004. 2003. Thiswasfollowedbyafull3-yearcertificationthe accredited bySGSInternationalwithISO9001:2000in Sunway MedicalCentre’s QualityManagementSystemwas *18 monthsended30June2006 0320 FP2006* 2004 2003 53 Revenue (RMmil) 65 116
Sunway City Berhad 43 annual report ‘06
Sunway City Berhad Berhad Berhad Berhad Berhad City City City City City Sunway Sunway Sunway Sunway Sunway Fun and Excitement and Fun Passionate in Creating Creating in Passionate Sunway Lagoon Theme Park
Sunway City Berhad 44 annual report ‘06‘05 Leisure to relaxandunwindbeforeyou temperature istheperfectway at SLTP aretheworld’s largest Experience thenaturalbeauty pedestrian suspensionbridge, Thrilling swingchairride-an Amongst themainattractions aerial viewoftheparkasyou of theLWOT. Thewarmearth backdrop ofAsia’s firstman- head offformoreLostWorld measuring 428mandAsia’s largest man-madesurfwave pool, withaspectacular made eruptingVolcano! adventures. spin dry! of adisappearingcity, wherecourageous“adventurers”arerewardedwiththeridesoftheirlives. civilisation, alaIndianaJonesstyle.Ancientruins,grottos,creepersandvinescompletetheillusion magnificent foiltothecarefullylandscaped40-acrewaterpark,fashionedresemblea“lost” is aRM60millionfully-themedsisterparkofSLTP. ThefamouslimestonehillsofTambun actasa The samefun-filledexperienceisalsobroughttoIpoh,attheLostWorld ofTambun (LWOT). LWOT entertainment facilitiesintroducedtoconstantlyprovideanenrichingleisureexperiencevisitors. capacity toaccommodateup70,000visitorsaday. Ridesareregularlyupgradedandnew one ofthemostvisitedtourists’destinationsincountry. Spanning60acres,SLTP hasthe Sunway LagoonThemePark(SLTP), beingpartofMalaysia’s firstfullyintegratedthemedresort,is Aaron Soo Boon Choon Boon Soo Aaron reality”. “Passion turnsvisioninto Chief Executive Officer Officer Executive Chief Sunway Lagoon Theme Park Park Theme Lagoon Sunway ¯ Future Plans: 2006 Milestones: direct accesstothewaterpark ofSLTP. The openingofthenewescalator entrancethatwillopen park. surf beachandthelaunchingofanewinteractivewildlife venue, SLTP isaggressivelypromotingthe newlylaunched To refocustheparkin2007asamultifacetedentertainment park asaneventandentertainmentvenue. SLTP. Theseaddedattractions arearefocusonthetheme In 2007,anewinteractivewildlifeparkwillbelaunchedin popular withmanyparentsandchildren. areas. Anewrideislaunched,TheStormRider, whichisvery with increasingparkvisitorsdrawntothescenicTambun LWOT initsfirstfullyearofoperations,performedcredibly marvel atitswonderfullyintegratedtheming. flocked totheparkexperienceitsthrillingridesand day, itreceivedamassivecrowdofover10,000,whoeagerly Shah officiallylaunchedLWOT inJune2005.Onitsopening DYMM PadukaSeriSultanPerakDarulRidzuanAzlan 360 degreesRotatingShipandVoodoo AdventureRiverRide. attractions areKalahariKidschildrenpool,Pirate’s Revenge with theworld’s largestman-madesurfbeach.The3new to maintainitspositionasMalaysia’s premierthemepark, Continued investmentsintonewattractionsatSLTP iscrucial *18 monthsended30June2006 0320 FP2006* 2004 2003 110 Revenue (RMmil) 89 104
Sunway City Berhad 45 annual report ‘06