ANNUAL REPORT 2017
CHAMPIONING GREEN ECONOMY
Cont ent 04 14 Corporate Leadership Information Team pg 57
05Notice of Annual Organisational16 General Meeting Structure
06Corporate Chairman’s20 Profile Statement
10Board of Directors GCEO’s23 Strategic Review
12Committees Calendar26 of Events
This Annual Report is printed on FSC certified Paper Cont ent pg 32 32 66 EXPO 2017 GreenTech Malaysia ASTANA Alliances Sdn Bhd
Green40 70GreenTech Catalyst Econometrics Sdn Bhd
pg 70 Green48 76GreenTech IdeasLAB Living Sdn Bhd
Green57 86GreenTech Malaysia Mobility Membership
Green62 87Financial Community Statements 4 Corporate Information
BOARD OF DIRECTORS
Tan Sri Peter Chin Fah Kui Datuk Poh Pai Kong
Professor Datin Paduka Dr. Khatijah Baskaran a/l Madhavan Nair binti Mohamad Yusoff Hazim bin Jamaluddin Datuk Badriyah binti Hj. Abd. Malek Haji Mohamad Razif bin Haji Abd Mubin Datuk Wira Jalilah binti Baba
GROUP CHAIRMAN PRINCIPAL PLACE OF BUSINESS Tan Sri Peter Chin Fah Kui No. 2, Jalan 9/10 Persiaran Usahawan Seksyen 9 GROUP CHIEF EXECUTIVE OFFICER 43650 Bandar Baru Bangi Dr. Mohd Azman bin Zainul Abidin Selangor Darul Ehsan (Appointed on 2nd May 2017) AUDITORS SECRETARY Crowe Horwath KL Tax Sdn. Bhd. [10709-X] Shahrizat binti Othman Tax Consultants [MAICSA 0764744] Member Crowe Horwath International C 15-5, Level 15, Tower C REGISTERED OFFICE Megan Avenue II Suite C-5-4, Wisma Goshen 12 Jalan Yap Kwan Seng Plaza Pantai, Jalan Pantai Baharu 50450 Kuala Lumpur 59200 Kuala Lumpur PRINCIPAL BANKER CIMB Bank Berhad Serdang Perdana Ground Floor & Mezzanine No. 33 Jalan SP 2/1 Taman Serdang Perdana 43300 Seri Kembangan Selangor Darul Ehsan
greentechmalaysia.my Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Twentieth Annual General Meeting of MALAYSIAN GREEN TECHNOLOGY CORPORATION (“GreenTech”) will be held at Bilik Tenaga 2, Malaysian Green Technology Corporation, No. 2, Jalan 9/10, Persiaran Usahawan, Seksyen 9, 43650 Bandar Baru Bangi, Selangor Darul Ehsan on 28th June 2018 at 11.00 a.m. for the following purposes:
AGENDA
As Ordinary Business
1. To Lay and Receive the Audited Accounts for the year ended 31 (Please refer to December 2017 together with the Reports of the Directors and Explanatory Note 2) Auditors therein.
2. Re-election of Auditors
To Re-elect Messrs. Crowe Horwath (AF: 1018) as the Auditors of Resolution 1 the Company for the financial year 2017 until the conclusion of the next Annual General Meeting; and to authorise the Directors to fix their remuneration.
BY ORDER OF THE BOARD SHAHRIZAT BINTI OTHMAN KUALA LUMPUR Company Secretary MAICSA 076474 Date : 7 June 2018
Note
1. Proxy:
(i) A member of the Company entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote in his stead. All proxies must be members of the Company.
(ii) In the case of a corporate member, the instrument appointing a proxy shall be under its Common Seal or under the hand of an officer of the corporation duly authorised on that behalf.
(iii) The instrument appointing a proxy must be deposited at the Registered Office of the Company at Suite C-5-4, Wisma Goshen, Plaza Pantai, Jalan Pantai Baharu, 59200
Kuala Lumpur (Tel :03- 2283 4007 / Fax : 03- 2287 7006) not less than 48 hours before Malaysian Green Technology Corporation the meeting set for holding the meeting or any adjournment thereof.
2. Explanatory Notes to the First Agenda
This agenda item is meant for discussion only, as the provision of Section 340(a) of the
Companies Act, 2016 does not require a formal approval of the shareholders for the ANNUAL REPORT 2017 Audited Financial Statements. Hence, this Agenda item is not put forward for voting. 5 6 Corporate Profile
GOAL: POSITION MALAYSIA AS A GLOBAL HUB FOR GREEN TECHNOLOGY BY 2020 AND DEVELOP THE COUNTRY INTO A GREEN COMMUNITY BY 2030
Malaysian Green Technology Corporation also known as GreenTech Malaysia is a government agency under the purview of Ministry of Energy, Green Technology and Water (KeTTHA).
Established in 2010, our mandate is to be spearheading the development and promotion of green technology as a strategic engine for socio-economic growth in line with Green Technology Master Plan (GTMP) 2017-2030.
The goal of GTMP is to strengthen the role of the green economy and green technology as a catalyst to drive Malaysia’s aspirations for sustainable growth.
greentechmalaysia.my SUBSIDIARIES
GREENTECH MALAYSIA ALLIANCES SDN. BHD. (GTMA) Incorporated on 1st June 2015, GreenTech Malaysia Alliances Sdn. Bhd. (GTMA), a wholly owned subsidiary of GreenTech Malaysia, was established to accelerate the growth of Malaysia’s green market through strategic partnerships offering innovative sustainability solutions.
GREENTECH CATALYST SDN. BHD. (GTC) Incorporated on 15th October 2015, GreenTech Catalyst Sdn. Bhd. (GTC), a wholly owned subsidiary of GTMA, was established to expedite the adoption of green technology through the provision of advisory and business services in finance, entrepreneurship, standardisation and incentivisation.
GREENTECH IDEASLAB SDN. BHD. (GTI) Incorporated on 16th March 2016, GreenTech IdeasLAB Sdn. Bhd. (GTI), a wholly owned subsidiary of GTMA was established to promote sustainable lifestyles through on-ground public engagements, develop green skills through customised training programmes and spur the green economy through industry-level international exhibitions and professional consultancy. Malaysian Green Technology Corporation ANNUAL REPORT 2017
7
Board of Directors & Committees Leadership Team Organisational Structure 10 Board of Directors
1 2 3
4 5 6
greentechmalaysia.my 7 8 9
1 Tan Sri Peter Chin Fah Kui 5 Datuk Poh Pai Kong CHAIRMAN 6 Baskaran a/l Madhavan Nair 2 Professor Datin Paduka Dr. Khatijah binti Mohammad Yusoff 7 Hazim bin Jamaluddin DEPUTY CHAIRMAN 8 Haji Mohamad Razif 3 Datuk Badriyah binti Hj. Abd. Malek bin Haji Abd Mubin
4 Datuk Wira Jalilah binti Baba 9 Dr. Mohd Azman Malaysian Green Technology Corporation bin Zainul Abidin ANNUAL REPORT 2017
11 12 Committees
BOARD OF DIRECTORS AND PERMANENT REPRESENTATIVES FROM KeTTHA AND EPU FOR BOARD COMMITTEE MEETINGS
Board Investment, Business & Promotion Committee (BIBPC) Name Position Roles Datuk Wira Jalilah Baba Chairman Reviews, monitors Prof. Datin Paduka Dr. Khatijah Member and reports to Mohammad Yusoff the Board on matters related to Mr. Baskaran Madhavan Nair Member potential business Dr. Mohd Azman Zainul Abidin Member investments, Mr. Woon Foo Wen Member ventures, opportunities, Pn. Rogayah Kadari Representative business strategies, SUB Kanan, Sektor Teknologi Hijau (KeTTHA) business Mr. Asdirhyme Abdul Rasib, Representative and projects SUB, Regulatori dan Pembangunan (EPU) development as Industri Teknologi Hijau (Alternate) well as promotion Mr. Ahmad Kamal Wasis Representative matters. Timbalan Pengarah, Seksyen Ekonomi (EPU) Alam Sekitar dan Sumber Asli Fatimah Wati Bt. Che Abdullah Representative Ketua Penolong Pengarah, Seksyen (EPU) Ekonomi Alam Sekitar dan Sumber Asli (Alternate)
greentechmalaysia.my Board Establishment Committee (BEC) Name Position Roles Datuk Badriyah Ab Malek Chairman Reviews, monitors Dr. Mohd Azman Zainul Abidin Member and reports to the Board on Pn. Rogayah Kadari Representative matters related SUB Kanan, Sektor Teknologi Hijau (KeTTHA) to establishment, Mr. Paul Wong Kok Kiong, Representative human resources, SUB, Dasar Teknologi Hijau (KeTTHA) organizational development and Key Performance Indicators.
Board Finance & Audit Committee (BFAC) Name Position Roles Mr. Hazim Jamaluddin Chairman Reviews, monitors Dr. Mohd Azman Zainul Abidin Member and reports to the Board on Pn. Rogayah Kadari Representative matters related to SUB Kanan, Sektor Teknologi Hijau (KeTTHA) finances, financial Mr. Asdirhyme Abdul Rasib, Representative performance, SUB, Regulatori dan Pembangunan (KeTTHA) audit and Industri Teknologi Hijau (Alternate) corporate Mr. Ahmad Kamal Wasis Representative governance. Timbalan Pengarah, Seksyen Ekonomi (EPU) Alam Sekitar dan Sumber Asli Fatimah Wati Che Abdullah Representative Ketua Penolong Pengarah, Seksyen (EPU) Ekonomi Alam Sekitar dan Sumber Asli (Alternate) Malaysian Green Technology Corporation ANNUAL REPORT 2017
13 14 Leadership Team as at December 2017
9 12 1 GROUP CHIEF EXECUTIVE OFFICER Dr. Mohd Azman Zainul Abidin 2 11 2 CEO, GREENTECH MALAYSIA ALLIANCES SDN BHD Woon Foo Wen
3 CEO, GREENTECH CATALYST SDN BHD 3 Tuan Syed Ahmad Syed Mustafa 4
4 CEO, GREENTECH IDEASLAB SDN BHD/ CHIEF STRATEGIC COMMUNICATIONS Elina Jani
5 CHIEF STRATEGIC PLANNING Izhar bin Mohd Noor
6 CHIEF LEGAL & IP Noor Azmin Azali bin Ramli
greentechmalaysia.my 7 ACTING HEAD OF HUMAN RESOURCE & FINANCE Tengku Sharifah Hanif binti Tengku Hamzah
8 HEAD OF GREEN 8 CATALYST 10 Kamaradzaman bin Mohd Bakri 6 7 9 ACTING HEAD OF SMART SUSTAINABLE CITIES Muhd Fendi bin Mustafa
10 HEAD OF LOW CARBON MOBILITY Huzaimi Nor Omar
5 11 HEAD OF SUSTAINABLE ENERGY & GREEN 1 ADVISORY Norhasliza Mohd Mokhtar
12 DIRECTOR OF TECHNOLOGY & INNOVATION Wan Faizal Mohd Anwar Malaysian Green Technology Corporation ANNUAL REPORT 2017
15 16 Organisational Structure
CEO GreenTech Malaysia Alliances Sdn Bhd
CEO GreenTech Catalyst Green Sdn Bhd Catalyst
CEO GreenTech IdeasLAB Sdn Bhd Smart Sustainable Cities
Sustainable Energy & Green Advisory Legal & IP
Technology Strategic & Innovation Communications
Human Resource & Finance
greentechmalaysia.my CEO GreenTech Malaysia Alliances Sdn Bhd
CEO GreenTech Catalyst Green Sdn Bhd Catalyst
CEO GreenTech IdeasLAB Sdn Bhd Smart Sustainable Cities
Sustainable Energy & Green Advisory Legal & IP
Technology Strategic & Innovation Communications Malaysian Green Technology Corporation
Human Resource & Finance ANNUAL REPORT 2017
Organisational Structure after restructuring of GreenTech Malaysia as at December 2017 17
Chairman’s Statement GCEO’s Strategic Review 20 Chairman’s Statement
TAN SRI PETER CHIN FAH KUI Chairman DEAR STAKEHOLDERS
On behalf of the Board of Directors, it is my pleasure to present the Green Technology Corporation Malaysia (GreenTech Malaysia) Annual Report for the financial year ending 31st December 2017.
greentechmalaysia.my As the lead catalyst driving the continued trust and backing nation’s green agenda, GreenTech throughout 2017 in fulfilling our Malaysia close collaboration obligations and mandates. On with the Ministry of Energy, Green behalf of the Board, I would Technology and Water (KeTTHA) and also like to extend our heartfelt other relevant Ministries, has made thanks to our members and all our steady progress in enabling green stakeholders from the regulators, growth to become more visible in the authorities and industry who have marketplace. helped GreenTech Malaysia by sharing ideas, joining in our efforts The Green Technology Master and ensuring the success of our Plan (GTMP) 2017-2030 which was initiatives. unveiled during the 8th International GreenTech & Eco Products Exhibition I wish to take this opportunity to & Conference Malaysia (IGEM express my utmost appreciation 2017) on October 2017, aims to to the outgoing Board members. strengthen the role of the green Thank you to Y. Bhg. Datuk Dr. economy and green technology, Hafsah binti Hashim and Pn. Julita particularly in six key sectors: energy, Mojungki for their contributions to transport, building, waste, water and GreenTech Malaysia that have manufacturing. helped drive our mission forward.
2017 also witnessed a huge success My deepest appreciation to achieved by GreenTech Malaysia Y. Brs. Ir. Ahmad Hadri Haris, when it was appointed as KeTTHA’s who has stepped down from the implementing agency for Expo 2017 management as Group Chief ASTANA in Kazakhstan from June to Executive Officer on April 2017 September. As ‘Future Energy’ was for his contribution to GreenTech the theme focus of the EXPO 2017, Malaysia and also to Malaysia’s GreenTech Malaysia was given the green technology sector. He has honour to coordinate the Malaysian successfully led the organisation Pavilion activities. to great heights.
Our achievements would not On behalf of my fellow Directors,
have been possible too without I extend a warm welcome to Malaysian Green Technology Corporation the support of all our partners. On Y. Brs. Dr. Mohd Azman Zainul behalf of GreenTech Malaysia, I Abidin who has been appointed would like to extend our gratitude the Group Chief Executive to the Malaysian Government as Officer of GreenTech Malaysia well as the team at KeTTHA for their in May 2017. We are honoured ANNUAL REPORT 2017
21 22 Chairman’s Statement
to have him in the management Overall, this has been another and am confident that GreenTech productive and positive Malaysia will benefit hugely by year for GreenTech Malaysia leveraging on his breadth of which has made significant collective experience as well as progress towards our strategic solid track-record in public policy aims and objectives, along green technology. with further improvements against agreed key I would also like to congratulate performance indicators. the management and staff of Let us leverage on all GreenTech Malaysia for their opportunities and overcome great team spirit, dedication, all challenges to ensure a perseverance and the enthusiasm strong and sustainable future they have shown. The Board would for GreenTech Malaysia. like to express its appreciation for their hard work and high TAN SRI PETER CHIN FAH KUI commitment. Chairman
greentechmalaysia.my Group CEO’s Strategic Review
ENSURING A GREENER FUTURE FOR MALAYSIA
I am honoured to have been appointed as the group CEO of Malaysian Green Technology Corporation (GreenTech Malaysia) early this year. I am aware that the expectations as the nation’s lead agency in green technology are high and I firmly believe that GreenTech Malaysia will live up to these expectations entrusted. I look forward to help shape the future of GreenTech Malaysia as a dynamic and vibrant organisation.
With the GTMP 2017-2030 in mind, GreenTech Malaysia has redefined the organisation’s purpose to champion green economy through green technology and green culture. The redefined purpose allows GreenTech Malaysia to develop more holistic economic plans for the country with shared goals and coordinated policy instruments.
Various efforts are made by GreenTech Malaysia to lead the nation’s green technology landscape through impactful Malaysian Green Technology Corporation projects under 3 flagships; the Government Green Procurement (GGP), Electric Mobility and Sustainable Living.
DR. MOHD AZMAN ZAINUL ABIDIN ANNUAL REPORT 2017 Group CEO 23 24 Group CEO’s Strategic Review
GreenTech Malaysia initiated indication that more local “The Green Technology the GGP programme as authorities are prioritising the the public sector represents concept of sustainable cities for Masterplan 2017-2030 about 15% of Malaysia’s GDP. their municipalities. GreenTech was recently launched Through a ‘lead-by-example’ Malaysia hopes to have all 154 to chart the path by Malaysian authorities, local authorities adopting the GreenTech Malaysia expects LCCF eventually, all the while towards realising our that the programme would keeping an eye on the target ambition for a green have a trickle-down effect to of cutting CO2 emissions by 45% influence the private sector by 2030. economy.” to choose ‘green-compliant’ suppliers, creating more robust Over and above this, supply and demand in the local GreenTech Malaysia was ‘green product’ market. To given the honour by the date, GreenTech Malaysia has Malaysian Government and extended the programme to KeTTHA to embark on a very 12 Ministries and Agencies with special project this year - the target to have all Ministries Malaysia’s participation at participate in the programme the International Specialized by 2017, collectively achieving Exhibition, EXPO 2017 Astana 20% of green procurement by themed ‘Future Energy’. 2020. The EXPO took place in Astana, Kazakhstan from 10th In support of the increasing June - 10th September and shift to EVs, GreenTech saw participation from 114 Malaysia has now installed 234 countries alongside Malaysia. ChargEV stations across the Over the period of 3 months, nation with the support from our Malaysian Pavilion was the increasingly eco-minded dubbed as the one of the top premise owners and property 10 Pavilions with over 580,000 developers. GreenTech Malaysia in visitation. A dedicated is confident of expanding the Business Centre was provided network further, particularly with within the Pavilion and I’m the partnerships forged with pleased to highlight that the PETRONAS Dagangan Berhad Malaysian business initiatives and BMW Malaysia. organised during EXPO 2017 Astana garnered a resounding Under the Sustainable Living RM12.67 billion in potential Flagship, the Low Carbon trade and investment. Cities Framework and Assessment System (LCCF) has We have never seen cross- currently extended to 52 local ministerial cooperation and authorities. There is a clear involvement from the private greentechmalaysia.my “For IGEM 2017, it exceeded targets to the tunes of RM9.129 billion in business leads, 378 exhibitors and 34,486 visitors from over 38 countries.” sector on such a scale before and goals to become an inclusive and would like to express our heartfelt developed nation. With the vision of gratitude to each and every person attaining an ideal sustainable world involved in Malaysia’s participation in driven by green economy through Astana this year. A special thank you green technology and green culture, is extended to our sponsors and Title we pledge our commitment in this Sponsor, Tenaga Nasional Berhad. endeavour. We may be halfway towards the vision, but the most crucial In furtherance of GreenTech Malaysia part is taking the first step. Clearly, we making its mark internationally, the can all agree that Malaysia has done International GreenTech and Eco just that, while striving to take many Products Exhibition and Conference more steps with the pre-defined end in Malaysia (IGEM) will continue to be mind. a key platform, having successfully generated business leads of over We at GreenTech Malaysia are grateful RM10 billion in the past 7 years. For for the trust and support of KeTTHA IGEM 2017, it took place from 11th in making our initiatives successful. to 13th October in Kuala Lumpur We are also appreciative of the fact Convention Centre and exceeded that without the contribution from our targets to the tunes of RM9.129 billion committed business partners, media Malaysian Green Technology Corporation in business leads, 378 exhibitors and and advocates, our initiatives would 34,486 visitors from over 38 countries. not have progressed as it is today.
All parties be they from the public or private sector, SMEs, entrepreneurs, DR. MOHD AZMAN ZAINUL ABIDIN
and even individuals have crucial Group CEO ANNUAL REPORT 2017 roles to play in realising Malaysia’s 25 26 Calendar of Events 2017
2 & 3 March 17TH OECD-ADBI TOKYO ROUNDTABLE ON CAPITAL MARKET AND FINANCIAL REFORM IN ASIA
3 March Visit from TKSU of Finance. Y.B. DATO’ MOHD SYAFIQ BIN ABDULLAH – Ministry of Health (KKM)
June EXPO 2017 ASTANA
14 March Media Briefing on MGTC’s 4 years Achievement and Plan Moving Forward
26 – 29 April 26 – 27 June Green Climate National Development Banks & Green Fund Structured Banks - Key Institutions for Mobilizing Dialogue with Finance Towards the Implementation Asia, Bali 26-29 of Nationally Determined Contributions April, 2017 (NDCs) and the accomplishment of the Sustainable Development Goals (SDGs)
greentechmalaysia.my 12 July GEO BUILDING VISIT BY UNIT PELAKSANAAN PROJEK AWAM, JABATAN PERDANA MENTERI October 24-26 July International GreenTech & Eco-Products Energy Auditor Training Course, TLDM, Malaysia (IGEM) Exhibition Lumut Perak 5 October 3 August WIEF Roundtable on Green Economy at Product Launching of “Toshiba’s World the Le Meridien Jakarta, Indonesia 1st Hybrid Multifunction Printers” at Berjaya Times Square Hotel KL 11 October MoU Signing Ceremony between MGTC and Malaysia Automotive Institute (MAI) Malaysian Green Technology Corporation
18 September MGTC Health Day. The event consists of Health Talk by Nutritionist, Pn. Baizura 11 October also Medical Check-up by KPJ Kajang. MoU Signing Ceremony between MGTC and University Science Malaysia (USM) ANNUAL REPORT 2017
27 28 Calendar of Events
11 October MoU Signing Ceremony between 12 October Fraunhofer – Collaboration Agreement between EBio – MGTC Prasarana Malaysia Berhad & Malaysian – GreenTech Green Technology Corporation Malaysia Alliances Sdn Bhd (GTMA)
11 October MoU Signing Ceremony between MGTC and UNITEN
12 October Collaboration Agreement between Petronas Dagangan Bhd, GreenTech Malaysia & TNB Energy Services Sdn Bhd
12 October Official Launch of Green Technology Master Plan at IGEM Opening Ceremony
30 October Majlis Perasmian Bengkel Pelaksanaan Perolehan Hijau Kerajaan (GGP) 2017 at the Shangri La Hotel, Putrajaya. greentechmalaysia.my 5 November Hari Alam Sekitar: Friends of Langat River 2017
20 November EMGS Award Ceremony at Dorsett Hotel, Putrajaya 9 November ASTANA 5 December Appreciation Alliance Bank Eco-Biz Dream Project Dinner Closing Ceremony
13 December Global Entrepreneurship Community (GEC) Summit 2017
14 December 13-14 November AEMAS National Council Meeting on RENEWABLE 14th December 2017 ENERGY & GREENTECH SABAH 2017 CONFERENCE 18-22 December AND EXHIBITION on EMTC 66 (18th December 2017 – 13-14 NOV 2017 at 22nd December 2017) at GreenTech KOTA KINABALU, Malaysia
SABAH Malaysian Green Technology Corporation ANNUAL REPORT 2017
29
EXPO 2017 ASTANA 32 EXPO 2017 ASTANA
WORLD EXPO: A BACKGROUND
The World Fairs organised by The Bureau International des Expositions (BIE) have been around since 1851, with the 1st World Fair being held in UK in 1851 with the purpose of demonstrating the latest scientific technical achievements, future developments as well as showcasing history, tradition and culture of countries from around the world.
Today, World EXPOs have become a global event that aims at educating the public, promoting progress and fostering cooperation. It is the world’s largest meeting place, bringing together countries, the private sector, the civil society and the general public around interactive exhibitions, live shows, workshops, conferences and much more. EXPO 2017 Astana is classified as a BIE International Specialised EXPO which has more specific themes dedicated to find solutions to precise challenges in humanity.
greentechmalaysia.my EXPO 2017 ASTANA – FUTURE ENERGY
In Feb 2017, Malaysia as a nation has committed to participate at the Specialized EXPO in Republic of Kazakhstan or also known as EXPO 2017 Astana. Due to the “Future Energy” theme, the government of Malaysia has elected KeTTHA to be the organising Ministry. KeTTHA co-organised the Malaysian Pavilion together with their implementation agency, Malaysian Green Technology Corporation for a 3-month duration from 10th June till 10th Sept 2017.
MALAYSIA PAVILION - POWERING GREEN GROWTH
The Malaysia Pavilion was 727 square meters in size, classified within the Large Pavilions category alongside countries such as Germany, China and Korea. Carrying the theme “Powering Green Growth”, the Malaysia Pavilion showcased our country’s journey towards a green Malaysian Green Technology Cor poration future - highlighting Malaysia’s 60 years of progress since independence and providing visitors an immersive experience of a rainforest, an area showcasing Malaysia’s transformation agenda to become a developed and high-income nation by 2020 and its commitment on climate change and reducing its carbon emission intensity. ANNUAL REPORT 2017
33 34 EXPO 2017 ASTANA
A total of 14 MOUs were signed over the course of Malaysia’s trade activities at EXPO valued at RM5.04 billion.
TRADE ACTIVITIES
Malaysia’s participation at EXPO this time too had an active role in propagating placed a heavy focus on trade activities. the education and nurturing of start-up/ The business programme was structured entrepreneurs respectively. into 13 weekly business themes including Renewable Energy, Energy Efficiency, Green Business-Matching sessions, jointly organised Innovation: Powering the Future, Climate with Malaysian External Trade Development Change & Sustainability, Business & Tourism, Corporation (MATRADE), were held on a Green Financing, Green Products & Services, weekly basis between Malaysian, Kazakh Sustainable Cities, Green Transportation, and International companies. Meanwhile, Education, #MyButterflyEffect & Youth, private business meetings and site visits Water & Wastewater, and last but not least, were also facilitated. A total of 240 Kazakh Energy, GreenTech & Water. This saw cross- and International companies along with 97 ministerial cooperation with Ministry of Science, Malaysian companies participated in these Technology and Innovation (MOSTI), Ministry business activities. of International Trade (MITI), Ministry of Tourism & Culture (MOTAC) and Ministry of Higher Overall, Malaysia’s trade activities at EXPO Education (MOHE) anchoring their respective 2017 garnered a total of RM12.67 billion weeks. Agencies such as Education Malaysia in potential trade and investments, which Global Services (EMGS) and Malaysian Global includes 14 MOUs signed valued at RM5.04 Innovation & Creative Centre (MaGIC) billion.
3 Trade Forums were organised including the Malaysia- Kazakhstan Energy Business Forum greentechmalaysia.my SUMMARY DELIVERABLES AND ACHIEVEMENT | OUTCOME OF MALAYSIA PAVILION
Item Description Outcome KPI TRADE AND BUSINESS SHOWCASE 1 Malaysia companies participated 118 Companies 50 Companies 2 Potential Trade and Investment RM12.67 Billion RM1.0 Billion 3 MOU Signed 14 10 4 Business Matching with Kazakhstan and 195 - International Companies 5 Malaysian Companies Participated in Business 97 - Matching PROGRAMS, POCKET TALKS AND PARTICIPATION 1 Pocket Talks Conducted 120 - 2 Participants for Pocket Talks, Craft Classes 6,300 1000 and Key Events 3 Participants for Pocket Talks 1918 - 4 Participants for Craft Class 612 - 5 Craft Classes Conducted 30 - EVENTS 1 Key and Smaller Events 26 - 2 Participants for Key Events 3770 - SOCIAL AND TOURISM 1 Visitations 682,591 visitors 200,000 2 Cultural Shows (Pavilion) 424 - 3 Craft Demonstrations (Pavilion) 124 - 4 Cultural Shows (SAF Public Area within Expo) 16 shows - 5 Food Demonstrations 28 shows - 6 VVIP and International Delegations 409 10 PR AND MEDIA 1 PR and Media Value RM26.26 Million RM12.5 Million Malaysian Green Technology Corporation 2 Social Media Impression 68 Million 1 Million 3 Social Media Reach 35 Million - 4 Media Attendance (Local and International) 245 - ANNUAL REPORT 2017
35 36 EXPO 2017 ASTANA
OUTCOMES
By the end of EXPO 2017, 118 Malaysian Companies, Government Ministries and Agencies participated in the Malaysia Pavilion programmes and a total 3,770 Malaysian and international participants attended the business and social events organised.
Malaysia Pavilion became one of the top 10 most visited Pavilions with a visitorship of 682,591 over the course of 3 months. These included the public as well as VIP dignitaries including a prime minister, vice ministers and ambassadors from various countries.
120 26 3,770 Pocket Talks conducted Events & 3 Business Forums Event Participants
118 240 97 Malaysian Companies, Malaysian Companies, Malaysian Companies took Government Agencies & Government Agencies & part in B2B Ministries participated Ministries participated greentechmalaysia.my MALAYSIA’S PARTICIPATION GARNERED TWO AWARDS NAMELY:
Won the Honorable Won the GOLD Mention Award Award EXHIBITOR MARKETING MAGAZINE EXPO EXCELLENCE 2017 AWARDS AWARDS 2017 Category: Best Category: Interpretation of Excellence in Theme Government Sector For Malaysia Marketing Pavilion For EXPO 2017 Brand Campaign
682,591Visitors Malaysian Green Technology Corporation Dignitaries Visiting Malaysia Pavilion 1 Prime Minister 4 Ministers 5 Vice Ministers 50 Ambassadors ANNUAL REPORT 2017 37
GREENTECH MALAYSIA Green Econometrics Green Living Green Mobility Green Community 40 Green Econometrics
GREEN TECHNOLOGY MASTERPLAN
In 2017, GreenTech Malaysia was involved in the finalisation of the Green Technology Master Plan (GTMP) by the Ministry of Energy, Green Technology and Water (KeTTHA).
The GTMP creates a framework to facilitate the mainstreaming of green technology into the planned developments of Malaysia. This first edition of the GTMP focuses on six key sectors, namely Energy, Manufacturing, Transportation, Building, Waste and Water and attempts to harmonise the policy directions of each sector towards the common goal for sustainable utilisation of natural resources. Targets have been set across these six sectors towards 2020 and 2030, with strategies to shift Malaysia towards a resource-efficient and low carbon footprint economy.
greentechmalaysia.my In finalising the document, a GTMP The document has outlined an Workshop was held to obtain stakeholder implementation framework and input for the final stage of drafting. The governing structure which will workshop was attended by representatives commence its work in 2018. from various ministries, government agencies and the private sector including GreenTech Malaysia encourages all parties Economic Planning Unit (EPU), Ministry of from the public and private sector to play International, Trade and Industry (MITI), their part in achieving the GTMP goals. The Suruhanjaya Tenaga (ST), Suruhanjaya document is available for download at Pengangkutan Awam Darat (SPAD), www.kettha.gov.my. Suruhanjaya Perkhidmatan Air Negara (SPAN), Indah Water Konsortium (IWK) and Federation of Malaysian Manufacturers (FMM).
Following approval by the Malaysian Cabinet, the GTMP was successfully launched during the International Greentech and Eco Products Exhibition and Conference 2017 (IGEM 2017) at the Kuala Lumpur Convention Centre on 12th October 2017 by the Minister of Energy, Green Technology and Water, YB Datuk Seri Panglima Dr. Maximus Johnity Ongkili.
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Launching of the GTMP at the IGEM 2017 Opening Ceremony on 12th October 2017. ANNUAL REPORT 2017
41 g 42 Green Econometrics
GGP Achievements in 2017 GOVERNMENT GREEN The year 2017 saw all 25 PROCUREMENT ministries in Malaysia on board the programme with The Government Green 22 ministries successfully Procurement (GGP) purchasing green products programme intends to position & services totalling to 5.4% the Government sector as of overall government a leader in encouraging procurement. The impact businesses and industries to of this is to the tune of realign their offerings to more 6,544,816 KGCO2eq of green products and services carbon emissions avoided by creating a demand; from being released into the through a mandatory target environment. for all ministries to convert 20% of their total procurement to be green by 2020.
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To this end, 2017 was a busy year with regard to awareness as well as capacity and technical development for GGP.
Sustainable Consumption and Production Visit to KOAS Co. Ltd, the leading supplier Knowledge Sharing Workshop at Korea of Korean eco-furniture on 13th September Environmental Industry and Technology 2017. Institute on 13th September 2017.
greentechmalaysia.my Meeting with the Vice-Governor for Political Affairs of Opening ceremony of GGP workshop at Ministry of Home Jeollanamdo Province, South Korea on 14th September 2017. Affairs, Malaysia on 16th November 2017.
International Capacity Building Programme on Green Government Procurement and Low Carbon Cities at Carbon Trust, London, United Kingdom on 11th - 15th December 2017.
In addition to this, 2017 saw the entry including policymakers, GGP of 10 more GGP product groups in implementing agencies, industry addition to the existing 20 product associations, green products groups. These were identified in manufacturers, research institutes as consultation with over 50 industry well as certification bodies. members from various backgrounds
New GGP Product Groups in 2017:
g Malaysian Green Technology Corporation
2018 will see the continuous monitoring of government ministries towards ANNUAL REPORT 2017 reaching the 20% GGP target by 2020. 43 44 Green Econometrics
PLUS
As a reference to developing a green roadmap for PLUS, GreenTech Malaysia conducted a Greenhouse Gas (GHG) Baseline Assessment, which identified the sources and amount of GHG emissions contributed by PLUS since 2016. Emissions were calculated from the following sources: 1. Company vehicle fleet 2. On and Off-Grid electricity consumption 3. Food Waste Generation
PLUS Green Roadmap 2018-2022 Summary
Ministry of Natural Resources (NRE) to UNFCCC in 2018, GreenTech Malaysia undertook the development As a party to the global United of the chapter on GHG Mitigation Nations Framework Convention on Actions and their Effects. Climate Change (UNFCCC), Malaysia has made a pledge to reduce The report contains updates of its GHG emission intensity of gross national GHG inventories, initiatives domestic product (GDP) by 45% by on mitigation actions as well as needs 2030, from 2005 base levels. To assist and support received. Notably, the Ministry of Natural Resources (NRE) report contains information on the in the development of Malaysia’s domestic Measuring, Reporting and Second Biennial Update Report on Verifying (MRV) system taken place the nation’s progress for submission to implement the initiatives.
greentechmalaysia.my Johor Port Authority
GreenTech Malaysia was engaged by Johor Port Authority for the replacement of fluorescent lighting at their Lembaga Pelabuhan Johor building to LED lighting. This initiative was in support of their Green Port Policy 2014-2022 and saw the successful supply, installation, testing and commissioning of 4,105 units of LED lighting in their building and parking premises. All in all, this effort managed to reduce the electricity bill by 12% to 15% a month and avoided 12.38 tonne CO2eq monthly.
KL2017 Energy Management Green Initiative Committee & GHG Assessment led by the Ministry of Energy, Green Technology and Water Malaysia was selected to host (KeTTHA) to incorporate the 29th Southeast Asian (SEA) and implement green and Games in Kuala Lumpur on sustainable practices. 19th - 30th August and the 9th ASEAN Para Games on 17th GreenTech Malaysia was September-23rd September, appointed by KeTTHA to carry collectively known Kuala out energy audits for the three Lumpur 2017 (KL2017). main venues namely Kuala Lumpur Sports City at Bukit To make KL2017 an Jalil (KLSC), KL Convention environmentally conscious Centre (KLCC) and Malaysia event, the Malaysia International Trade and Organising Committee Exhibition Centre (MITEC). (MASOC) established a Malaysian Green Technology Corporation ANNUAL REPORT 2017
45 46 Green Econometrics
MALAYSIAN KUALA LUMPUR INTERNATIONAL TRADE KUALA LUMPUR CONVENTION CENTRE AND EXHIBITION CENTRE SPORTS CITY (KLSC) (KLCC) (MITEC)
Retrofitted existing 5 sports Existing 5 convention and A new building equipped with buildings with energy efficient exhibition halls in the building green features such as LED electrical equipment (lightings, were used for indoor sports lightings, high efficient air-conditioning system, during KL2017. These 5 halls air-conditioning and mechanical scoreboards) purposely for were accommodated with ventilation, Intellegent Building KL2017 event. The buildings energy efficient equipment Management System, auto- include indoor and outdoor (lightings, air-conditioning) sensored escalators and lights sports facilities. with proper energy and rainwater harvesting. management system. KL2017 event is the first sports event after launching the building.
In summary, the overall impact from the Energy Management initiative is as below:
1) Kuala Lumpur Sports City (KLSC) achieved 21% electricity savings for the SEA Games and 33% electricity savings for the Para ASEAN Games. 2) MITEC achieved 5% electricity savings for the SEA Games and 29% electricity savings for the Para ASEAN Games. 3) At KLCC, no electricity savings were observed due to the Halls being used for training and maintenance before and after the event.
Briefing on Energy Management for building operators at Sport Venues
GHG Assessment of 29th SEA Games & 9th Para ASEAN Games
GreenTech Malaysia conducted Greenhouse Gases (GHG) assessments for the 29th SEA Games & 9th Para ASEAN Games in order to calculate the impact of the green initiatives. The GHG assessments covered three main areas: Energy, Transportation and Waste Management.
greentechmalaysia.my The GHG avoided through green initiatives for the main cluster venues are as follows:
Sectors SEA Games (tCO2) Para ASEAN Games ((tCO2) GHG Emission GHG Emission GHG Emission GHG Emission Inventory Avoidance Inventory Avoidance Energy 23,687 178 6,963 194 Transport 1,202 404 492 45 Waste 237 1,304 15 236 TOTAL 25,126 1,886 7,070 475 Malaysian Green Technology Corporation ANNUAL REPORT 2017
47 48 Green Living
LOW CARBON CITIES FRAMEWORK (LCCF) The LCCF provides the necessary tools to assist local authorities and developers in The Low Carbon Cities Framework and implementing carbon reduction strategies Assessment System (LCCF) is the national in a systematic and impactful manner. The framework and assessment system used framework covers four key areas: to guide the monitor the development of low carbon cities throughout Malaysia. Its aspiration for all 154 municipalities in the country to adopt the LCCF by 2020 as a measure to become low carbon cities in the long-term.
The Long-Term Impact
While there is no monetary reward or incentive to board the LCCF programme, it is an initiative forged to encourage a more important and wider global aspiration of being responsible for what we emit into our atmosphere. Essentially, responsible urban planning will reduce the rate of climate change and increase our quality of life. greentechmalaysia.my The framework undergoes a continuous three-phase process:
Upon completion of Phase 2, local authorities are issued with a Provisional Certificate to indicate that they have completed their baseline assessment and are ready
to move towards the CO2 reduction initiatives in Phase 3. Upon completion of Phase 3, the initiatives undertaken by the local authority are reviewed to
measure how much CO2 has been reduced within the area compared to the baseline. A diamond rating system is then used to recognise the achievement of the local authority based on the percentage
reduction of CO2 they have managed to reduce that year. This process continues on an annual basis. Malaysian Green Technology Corporation
Year 2017 was a fruitful year for the Low Carbon Cities Framework (LCCF) which saw the participation of 56 local authorities, universities and special zones. 4 local authorities were awarded with Provisional Certificates and 4 local authorities achieved Diamond Rating recognition for reducing their carbon ANNUAL REPORT 2017 footprint by 5,095 tonnes of CO2 equivalent. 49 50 Green Living
Most of the reduction obtained by the local Diamond Recognition authorities this year were from activities related to energy and water consumption reduction, energy management, waste reduction and separation as well as tree planting. Meanwhile the local authorities have yet to manage prospective activities within the transportation segment due to the challenge in controlling or shifting the transportation modes to public transportation, use of electric vehicles or walking and cycling.
This represents the second time Majlis Perbandaran Hang Tuah Jaya has achieved a Diamond Rating for their best practice in decreasing their carbon emissions. Meanwhile Majlis Perbandaran Subang Jaya has achieved the highest rating so far since the start of the LCCF programme at Best Practice 2 (BP2), awarding them 2 Diamonds. Provisional Certificate Recognition Local Authorities Baseline Carbon Remarks Year Emissions Reduced (tCO2/yr) Majlis Perbandaran Klang 2015 4,211.31 Ibu Pejabat MPK LCCF Area : Total Area 3.3ha : 57,380ha (0.006% ratio) Majlis Bandaraya Shah Alam 2015 37,082.06 Seksyen 14, Shah Alam LCCF Area : Total Area157.322ha : 29,030ha (0.54% ratio) Majlis Bandaraya Ipoh 2015 35,529.25 Blok Perancangan 1 LCCF Area : Total Area 1,557.8ha : 64,257ha (2.42% ratio) Majlis Perbandaran 2015 1,491.93 Ibu Pejabat MPSP LCCF Area : Total Area Seberang Perai 4.0469ha : 73,800ha (0.005% ratio)
Local Authority Implementation Progress by Phases as at 2017
Since 2011 until 2017 saw a lot of new GreenTech Malaysia will continue to municipalities come on board the LCCF encourage participation from new programme with 28 local authorities undergoing municipalities throughout Malaysia in awareness and introduction to the programme 2018 and carry more municipalities into in Phase 1. Meanwhile two local authorities, Phase 3: Blueprint Implementation, as well Majlis Perbandaran Hang Tuah Jaya and Majlis as encourage higher reductions in CO2 Perbandaran Subang Jaya, as well as two emissions throughout the programme to universities, Universiti Malaya and Universiti steer existing local authorities towards Teknologi Malaysia, underwent implementation Diamond recognition. of their LCCF actions plans and blueprints to reduce their carbon emissions. greentechmalaysia.my GREEN DATA CENTRE
The Green Data Centre Retrofitting Programme was conceived to enable LCCF partners to further reduce their carbon emissions by reducing the electricity usage in Data Centres within their municipalities. The programme saw an expansion this year with two new local authorities coming on board, Majlis Perbandaran Seberang Perai (MPSP) and Majlis Bandaraya Shah Alam (MBSA).
GreenTech Malaysia worked with technical partners to improve the airflow management within the data centres in order to reduce the need for conventional fan cooling and subsequently reducing energy consumption by 31% in MPSP and 16% in MBSA.
2017 Green Data Centre Project Impact Malaysian Green Technology Corporation ANNUAL REPORT 2017
51 52 Green Living
ENERGY AUDIT CONDITIONAL GRANT (EACG)
The Energy Audit Conditional Grant (EACG) for Industrial Sector is a programme under the RMK-11 Energy Efficiency Projects approved by the Economic Planning Unit (EPU) of the Prime Minister’s Department. It is a 3-year project from 2016 to 2018 aimed at providing energy audits for any industrial building that complies with Efficient Management of Electrical Energy Regulations 2008 (EMEER) or any qualified Small and Medium Industry with the minimum energy consumption of 100,000 kWh per month.
In 2016, GreenTech Malaysia was appointed by KeTTHA as the implementing agency to promote, facilitate, process applications and monitor this project and these works continued throughout 2017 with a total of 30 grants for energy audit having been awarded to successful applicants this year.
Year 2016 2017 Projected Activity for 2018 Promotion and 6 4 1 Seminars Technical Training 5 3 5 for Industries Energy Audit 60 30 85 Monitoring and 0 0 90 Verification
2017: Summary of Activities
Seminar on Energy Performance Contracting to Financial Institutions at IGEM 2017, KLCC on 13th October 2017
greentechmalaysia.my Energy Auditor Training Course for Batch 3 at Hotel Bangi-Putajaya on 21st-23rd August 2017.
Boiler measurement at a palm oil plant Electrical measurement at a semiconductor plant Malaysian Green Technology Corporation ANNUAL REPORT 2017
Flow measurement at a semiconductor plant 53 54 Green Living
Energy Audit
60 and 30 grant applications were approved by the Technical and Steering Committee in 2016 and 2017 respectively. All 90 energy audits commenced in stages starting from February 2017 with a 2-month period given to complete each project.
GreenTech Malaysia received total of 133 grant applications as of 31st December 2017, where 76 applications received in 2016 and 57 applications received in 2017. 90 applications have been approved by the Technical and Steering Committee as of 31st December 2017.
Monitoring and Verification at Golden Pet Industries Sdn. Bhd.
Based on 69 approved energy audit reports, the potential energy and cost saving are 280.78GWh and RM68,660,011 respectively with estimated investment cost of RM215,158,127. The potential CO2 avoidance is 136,423.41 tonnes.
greentechmalaysia.my Energy Saving Investment Energy Saving CO2 avoided Cost Saving (RM) (kWh) (Tonne) (RM) No Cost 0 16,451,794 2,966,282 Low/Medium 44,553,311 64,855,448 18,294,166 cost 136,423.41 High cost 170,604,817 199,470,031 47,399,562 Total 215,158,127 280,777,273 68,660,011
ENERGY MANAGEMENT GOLD STANDARD (EMGS)
Energy Management Gold Standard (EMGS) is a recognition given under ASEAN Energy Management Scheme (AEMAS), to end-users who have successfully enabled their organisation buildings to adhere to energy management standards set under the scheme. This programme is owned by the ASEAN Centre for Energy (ACE) and GreenTech Malaysia has been appointed as the AEMAS Country Coordinator to execute, manage and administer the EMGS certification process in Malaysia.
Activities includes the appointment of assessors, assessment of documentation, site assessments and presentation of assessments to the approval committee at the ASEAN and national level.
Year Target Achievement % increase compared to the year before 2017 50 audits 84 audits 250% 2016 10 audits 24 audits - Before 2015 - 7 audits -
A total of 84 audits were completed As of 31st December, 99 in 2017 and a certification organizations have been certified presentation ceremony was for Energy Management Gold held at Dorsett Hotel, Putrajaya Standards (EMGS) with one 1-star in November 2017 to recognise rating, 4 organisations with two organizations in their effort in energy 2-star ratings and 1 organisation management practices. These with 3-star rating. Malaysian Green Technology Corporation include: Under this programme, GreenTech 1) 68 public hospitals (67 hospitals Malaysia targets to complete 50 1-star and 1 hospital 2-star) audits next year and increase the 2) 2 Public Health Labs and number of end-users receiving star 3) 2 Health Institutes under Ministry ratings. ANNUAL REPORT 2017 of Health 55 56 Green Living
EMGS 1-Star Assessment at Hospital Kuala Lumpur. EMGS 1-Star Assessment at Hospital Tengku Ampuan Lead Assessor: Ir. Hj. Ahmad Fatani, Assessor: Mr. Ahmad Jemaah, Sabak Bernam. Lead Assessor: Mr. Hishamudin Munawir Mohd Hanif. Ibrahim, Assessor: Mr. Alwin Long Su Weng.
The representatives of the organisations certified for EMGS 1-Star and 2-Star rating in 2017. From left: Hospital Wanita dan Kanak-Kanak Sabah, Technical University of Malaysia Melaka (Universiti Teknikal Malaysia Melaka, UTeM), Johor Bahru Sentral, National Heart Institute (Institut Jantung Negara), Ministry of Health. From right: Dewan Bandaraya Kuala Lumpur (Tower 1).
The new AEMAS certified assessors for the year 2017. ‘Successful Energy Management System (EnMS) From left: Mr. Alwin Long Su Weng, Mr. Mohamad Fani Development Stories Forum’ during the EMGS Award Sulaima, Ir. Ahmad Jais Alias. From right, Ir. Mohammad Ceremony on Nov 2017. From left: A.P. Dr. Musthafah Fitri Khalid, Mr. Ahmad Munawir Mohd Hanif. Mohd Tahir (Universiti Teknikal Malaysia Melaka, UTeM), Mrs. Shazanee Shahrom (Johor Bahru Sentral), and Mr. greentechmalaysia.my Mohd Amran Shafie (National Heart Institute, IJN) Green Mobility
ELECTRIC VEHICLE
Malaysia’s road transport sector is of 819 fully electric vehicles registered the second largest sector emitter of in the country, including 139 electric carbon dioxide, emitting 43 million cars, 655 electric motorcycles and tonnes annually. The transportation 25 electric buses. This does not sector is heavily responsible for public include hybrid vehicles which more health issues in cities such as air popular than EVs, which rely 100% on pollution, noise and greenhouse gas electricity. emissions. These problems are slated to continue if there is no concerted The biggest reason for the slower effort to change the way we travel uptake in EVs is the affordability that is more sustainable for the of the cars, which are all subject environment. to import tax as most EVs are manufactured overseas. However In 2017, GreenTech Malaysia significant progress has been made continued to champion Electric in addressing increasing demand Mobility as one of its flagships. Electric for charging facilities, which is an Vehicles (EVs) produce zero direct important facility to support EV emissions, with significant potential to growth and provide relief to users improve air quality in urban areas. As against problems such as “range of the end of the year, there is a total anxiety”.
Cumulative Growth of EVs 2014-2017
NO. OF EVS (CUMULATIVE) This year saw 819 almost a doubling in EV numbers primarily contributed by 471 421 the new entry and large-scale 291 purchase of Yadea electric
motorcycle Malaysian Green Technology Corporation 2014 2015 2016 2017 models YD-EM04 and YD-EM143.
No. of Evs (Cumulative) ANNUAL REPORT 2017
57 58 Green Mobility
ELECTRIC VEHICLE INFRASTRUCTURE
With the steady rise in demand for EVs, this year GreenTech Malaysia expanded its ChargEV network of charging stations to 234 from 138 stations in the previous year. The installation locations are spread out over 11 states in public areas such as shopping malls, office buildings, hospitals and municipality buildings.
ChargEV Consumption Trend
140,000 Average charging session analysis 18,000 6.00 6.00 5.50 4.00 16,000 120,000 5.00 2.00 4.50 14,000 100,000 Jul-17 Jan-17 Jun-17 Oct-17 Apr-17 Feb-17 Sep-17 Mar-17 Dec-17 Dec-16 Nov-17 Aug-17 May-17 12,000 Average kWh per session Average hours per session 80,000 10,000
60,000 8,000 6,000 40,000 4,000 20,000 2,000
Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17
Monthly total consumption (KWh) Number of session Number of hours
Monthly total consumption (KWh) Cumulative active members greentechmalaysia.my The rising demand for ChargEV infrastructure
The monthly total chargEV consumption made significant increase until December 2017 due to increased number of PHEV sales in Malaysia and it shows the success in promoting EEV. More premise owner is also taking the effort in providing EV charging facilities. A positive rise is expected in 2018 for both expansion of chargEV network and number of EEV. The average charging time per session is between 2-3 hours. This shows that the vehicle owners are willing to spend time at the location with chargEV. However, it advisable for the vehicle owners to only use the facility for maximum 2 hours to allow other uses to charge their vehicle.
BMW Malaysia has the highest number of BMW hybrids in ASEAN and the world
BMW Group Malaysia has announced that it has assembled and delivered over 4,500 units of hybrid vehicles to date. The electrified line-up is comprised of the 330e, X5 xDrive40e and 740Le xDrive, all of which are assembled locally and recipients of the Energy Efficient Vehicle (EEV) incentive. To that end, Malaysia is the leading market in ASEAN and the fifth largest hybrid market in the world for the Bavarian company. Malaysia is also the second largest market in the world for the X5 xDrive40e.
ChargEV in Petronas – Enabling intercity commuting with EV
Petronas officially launched its first ChargEV charging station at Solaris Serdang. Petronas will install 66 electric charging stations nationwide by the end of this year as part of the Government’s effort to turn Malaysia into an EV hub. The official launch event was attended by Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili and Petronas Dagangan Berhad managing director and chief executive officer Mohd Ibrahimnuddin Mohd Yunus.
The other Petronas stations with ChargEV facilities are located at Solaris Malaysian Green Technology Corporation Putra, NKVE Damansara, Elite Bukit Jelutong, NKVE Subang, Kesas Timur, Kesas Barat, Genting Sempah, Ayer Keroh Arah Selatan and Federal Highway Batu Tiga. ANNUAL REPORT 2017
59 60 Green Mobility
Minister of KeTTHA announced of Langkawi Taxi programme
The government has allocated RM4.5 million to Langkawi under the Second Rolling Plan of the 11th Malaysia Plan (11MP). The RM4.5 million will be used to spearhead an Electric Taxi Pilot Programme and Electric Vehicle Awareness Programme for 2017 and 2018. Green Transport week in Expo 2017 Astana, Kazakhstan Launch of Volvo PHEV at IGEM Green Mobility group has participated in Volvo Cars Malaysia has officially Expo 2017 Astana, Kazakhstan during week launched the S90 T8 Twin Engine during of green transport on 7-11 August 2017. The the ongoing International Greentech Eco objectives are to share the knowledge and Products Exhibition Conference Malaysia experience of Malaysia in the development 2017 (IGEM). of green transport / green mobility through various pocket talk sessions. Obtain Green Transport Showcase @ IGEM 2017 potential business leads with the local companies related in the transportation The Green Transport Showcase is dedicated sector. The invited speakers were from CMS to green transportation showcasing the Consortium Ecotour Sdn. Bhd, Prasarana latest technology trends in EEV, Hybrid and Malaysia Berhad, TNB Energy Services, Electric Mobility. Voltron Malaysia Sdn. Bhd., University of Malaya and Universiti Malaysia Terengganu. The total potential business & trade activities is USD 25 million.
2017 Highlight: MoU signed between GreenTech Malaysia, TNBES and Petronas Dagangan Berhad (PDB) during IGEM 2017
During the International Greentech & Eco Products Exhibition & Conference Malaysia 2017 in October, Petronas Dagangan Bhd (PDB) entered into a tripartite partnership with GreenTech Malaysia and TNB Energy Services Sdn. Bhd. (TNBES) to install 100 ChargEV stations at selected Petronas petrol stations along highways nationwide by
greentechmalaysia.my 2018. This partnership was an extension from created by the Green Mobility team the MoU signed in 2016 between PDB and and is now available for use for GreenTech Malaysia to install 66 ChargEV training any persons who chooses EV stations. As of this year, GreenTech Malaysia charging installation as a profession has installed 54 ChargEV stations at selected or would like to obtain the necessary Petronas stations. skills to do so to a competent national standard. ChargEV Membership 2017 Highlight: GEF5-UNIDO Project 2017 saw more variety in model of cars used for Energy- Efficient Low-Carbon by the ChargEV members, with Volvo and Transport in Malaysia (Installation Mercedes Benz having introduced their of Electric Vehicle Charging PHEV models in Malaysia. However, the Infrastructure at Langkawi Island) usage from these models have not been as extensive as BMW, with BMW 330e members This year, GreenTech Malaysia was holding the largest portion of membership awarded with a GEF-UNIDO project with 580 members followed by BMW X5 for the installation of EV Infrastructure xDrive40e with 346 members. Meanwhile on Langkawi Island for a total of thirty membership from older fully electric EV (30) units of 22kW AC fast chargers. model Nissan Leaf only stands at 4. In 2018, This is part of an overall Government GreenTech Malaysia aims to extend the initiative to create Low Carbon charging network to tier owners of Volvo Island in Malaysia and to support an and Mercedes Benz. accompanying EV Taxi Programme on the island. All the chargers will be 2017 Highlight: ChargEV Partnerships branded as ChargEV and will also be with BMW part of the network expansion.
On 5th October 2017, ChargEV signed WAY FORWARD a partnership agreement with BMW Malaysia to offer the BMW plug-in hybrid In October, the Ministry of Energy, vehicles customers in the country access to Green Technology & Water (KeTTHA) ChargEV’s ChargeNow mobility services. launched the Green Technology Master Plan (2017-2030) which Meanwhile, ChargEV also has a similar outlines Malaysia’s strategic actions collaboration with Mercedes Benz Malaysia towards sustainability. This covers to offer the automotive brand’s plug-in six (6) key sectors namely energy, hybrid vehicle customers nationwide access manufacturing, transport, building, to the ChargEV charging stations. waste and water. To ensure success and proper development of action National Competency Standards for EV plan in achieving the targets,
Charging Station Installation GreenTech Malaysia will revise the Malaysian Green Technology Corporation proposed 2015 Electric Mobility This year, GreenTech Malaysia was Blueprint next year to fulfil the targets appointed by the Ministry of Human until 2030 through the development of Resource as the Industry Lead Body for the Low Carbon Mobility and Action Plan development of a National Competency document. Standard (NSC) document for EV Charging ANNUAL REPORT 2017 Station Installation. The NSC was successfully 61 62 Green Community
5S Awards 2016 : This award is to recognised the department which has been maintaining the cleanliness of their workplace throughout the year of 2016. The overall winner for 2016 was the Finance & Account Department
The backbone of GreenTech Malaysia are Best Dressed Award : its people. The organisation has always Won by En. Malik for the Male category and Nur Sarah for the female category. placed an emphasis on the development and welfare of its staff. In 2017, the Green Community department, which focuses on human resource, work environment and organisational development continued its efforts to harness the green culture and spirit embedded in its people, as well as continue to create an environment that promotes self- Sports Award 2016 : The Human Potential department has development and productivity. conducted a series of sports activities for the year 2016 and the winners are based on the each game for each month. For the year 2016, the HUMAN POTENTIAL champion for Sports & Games was the group BB8.
Above and beyond the formal call of duty, an array of social events was organised by the Green Community department throughout the year for the enjoyment of the organisation, encouraging the spirit of green within the our culture and unleashing creativity.
GreenTech Malaysia Appreciation Night
In February, an Appreciation Night was organised to thank all staff for their efforts and hard work from the year before. The event was held at Bora Ombak restaurant, Putrajaya, graced by guest of honours Employee of the Year : This award is to recognize best GreenTech Malaysia Chairman, YBhg. employee for their exceptional achievement. For the year of 2016, Tan Sri Peter Chin, Deputy Chairman, Naziha was awarded as Best Employee 2016 under the Support Ybrs. Prof. Datin Paduka Dr. Khatijah bt. Group and Muhtazam is awarded under Business Group. Mohammad Yusoff and Board of Directors Member, Ybhg. Datuk Wira Jalilah Baba. Well attended by staff and their families, the night saw in-house performances from each department as an effort to promote team spirit and fun.
An array of awards were given out during this festive night as to recognise people for Best Performance of the Night : non-work related achievements. This went to the Green Catalyst team. greentechmalaysia.my Iftar Ramadhan Programme Pemulihan Sungai Langat In the true spirit of giving, on 14th June (19 Ramadhan 1438h) orphans from Rumah The Programme Pemulihan Sungai Langat Pengasih Warga Prihatin, Sg. Ramal was series of river recovery programmes Kajang were invited for a special ‘Iftar’ at organized by KeTTHA in throughout 2017 the GEO Building. Family members of all and the Green Community team was really staff were also invited for this meaningful active to ensure our staff were involved. session to celebrate the blessing of Volunteers from GreenTech Malaysia Ramadhan with the less unfortunate. participated on several occasions to help clean and recover the area of Sungai Gemersik Aidilfitri Langat, in its CSR efforts to preserve the environment. On 27th July, a Hari Raya Aidilfitri celebration was organised for GreenTech Malaysia and its family members. This year, a ‘Potluck’ concept was adopted whereby splendid array of delicious offerings were contributed by staff itself. The purpose of the potluck theme was to encourage staff participation and harness the spirit of togetherness and excitement for the event. A food truck was also employed as the main caterer to create a new ‘hip’ environment. GreenTech Malaysia’s signature Raya Karaoke and other fun activities also made its return.
Recycled Items by Type SUSTAINABLE WORKPLACE
In efforts to increase the rate of recycling within the organisation, a friendly company- wide competition was introduced through the Malaysian Green Technology Corporation I-Cycle programme in October, which resulted in 620 kilograms of waste being recycled. This programme allowed recyclers to obtain points based on the amount they recycled which were redeemable in the form of gifts once enough points have been accumulated. On a monthly basis, 5 top scorers were highlighted ANNUAL REPORT 2017 for their achievement. 63
SUBSIDIARIES GreenTech Malaysia Alliances (GTMA) Sdn Bhd GreenTech Catalyst (GTC) Sdn Bhd GreenTech IdeasLAB (GTI) Sdn Bhd 66 GreenTech Malaysia Alliances (GTMA)
This year GreenTech Malaysia Alliances Sdn. donated by the public. It was on display at the Bhd (GTMA), the main subsidiary of GreenTech mall until 4th October after which Kloth Cares Malaysia, gave a large focus on providing collected it for recycling into other products. commercial offerings and business matching for GreenTech Malaysia’s special project – To date, Kloth Cares projects have recycled Malaysia Pavilion at Expo 2017 Astana. Aside a total of 10 tonnes of fabric preventing them from that, in 2017 GTMA continued pedalling from going to the landfills. its partners’ products such as Voltron electric bicycles and Kloth as well as forging new GTMA PARTNERS partnerships at IGEM 2017. Supply of Voltron EPABs to SER1M Kloth Cares Project with YTL & Sunway Putra SER1M or Sikal Elektrik Rakyat 1 Malaysia is a programme under Budget 2016 with an On 23rd March, YTL’s Lot 10 shopping mall allocation of RM4 million from MOF, with the launched their sustainability campaign objective to promote sustainable mobility “Together We Can Make A Better World” in in university campuses. The programme is support of Earth Hour 2017 and in collaboration managed by GreenTech Malaysia with seven with two partners, Raffles College of Higher selected universities in the country. GTMA has Education and Kloth Cares by Kloth Lifestyle tested the Voltron EPAB and is satisfied that the Sdn, Bhd, a joint-venture company by GTMA Voltron EPAB would be most suitable for this and Kloth Malaysia Sdn Bhd. The collaboration programme due to the following reasons: was initiated to jointly promote fabric recycling and maintaining close relationships with Ability to replace cars and motorcycles potential clients. (Environment Effects) - Has a range of at least 45km top speed of Kloth Cares is an initiative created by Kloth 25km/h on one charge with 0 emissions Malaysia catering to clients of Kloth Lifestyle - Does not pollute on short trips too. EPABs do not need roads or parking lots (Social Meanwhile on 29th September, Kloth Cares Convenience) took part in a 1,000-man celebration for - Malaysian spent between 270 and 500 Sunway Putra Mall’s Mid-Autumn Festival in million man-hours in the Greater KL jams Kuala Lumpur. The festival featured the tallest last year. Cost of lost hours and fuel for lantern made from recycled fabrics ever each person in Greater KL came to at recorded by the Malaysian Book of Records, least RM3,100 each year, more than the which stood at 10 meters in height and four monthly local average salary (RM2,795) meters in width. (World Bank, 2015) - Fills in the ‘gap’ of people who are not This giant lantern was made by Sunway fit/inconvenienced to ride bicycles in Putra together with Kloth Cares with fabrics Malaysia’s hot weather which were no longer usable and old clothes greentechmalaysia.my To invest in a new ‘trend’ (Economic Growth) conservations including consumption of - Pike Research forecasted that worldwide alternative products to substitute minerals sales of E2W will reach more than 466 and synthetic oil. eBio Advanced Technology million between 2010 to 2016 is capable to produce environmentally - To supply Malaysian market with safe friendly, energy and cost efficient base oil as EPABs rather than China E Bikes compared to conventional transesterification - Opportunity to export because we process. produce safe EPABs Should the JV be successful in creating an As the marketing representative of Voltron, this environmentally friendly base oil from palm oil, project generated business value to GTMA’s GTMA targets to supply the novel product to partnership programme of a cumulative various industries pharmaceuticals, cosmetics, amount of RM3.7 million in 2016 & 2017. 1,200 automotive, FMCG, marine, defence, food, EPABs (Electric Pedal Assisted Bicycle) were agriculture and fishing as well as oil and gas delivered to 6 local universities, in line with too. national effort to promote green mobility and green campus. COMMERCIAL OFFERINGS FOR MALAYSIA PAVILION AT EXPO 2017 ASTANA On October 20th, GreenTech Malaysia Alliances Sdn. Bhd. and Voltron Malaysia Sdn. GTMA operated the Malaysia Café and Bhd. signed an agreement that appoints provided catering service for the Malaysia GreenTech as exclusive marketing arm to Pavilion at Expo 2017 Astana through its promote Voltron EPABs to GLCs and Universities. partnership with Kazakhstan-based restaurant The India Gate (Too Mayura LLP), as well as the This is in support of the EV Blueprint to have Pavilion retail store. 100,000 Electric 2 Wheelers utilised by Malaysians by 2020. This was in an effort to take a load off the Astana project team by focusing on the We sold 1,200 Voltron EPABs under the SER1M commercial offerings of the pavilion. In programme (revenue is RM3,688,800 = 3.7 keeping with the purpose of the pavilion, these million) and received a 5% commission elements were required to provide a holistic amounting to RM184,440. cultural experience for international visitors and was not created with the intention of making NEW PARTNERSHIPS a huge profit. However as there is an element of profit nonetheless, the commercial offerings At this year’s IGEM, GTMA entered into a were assigned to GTMA as the main subsidiary partnership with eBio Advanced Technology of GreenTech Malaysia. Pte. Ltd. and Fraunhofer IVV (FhG) to develop novel products from vegetable oil with The sales report for GTMA’s business at the aim that these developments will help Malaysia Pavilion is shown top previous page:
to diversify palm oil’s utilisation to various Malaysian Green Technology Corporation industries, enhancing the potential growth and sustainability of Malaysia’s palm plantation and oil industry and also any wastage that may come off from production of palm oil.
Globally, a growing number of nations are ANNUAL REPORT 2017 setting stringent guidelines for environment 67 68 GreenTech Malaysia Alliances (GTMA)
GTMA SALES REPORT SALES REPORT FOR COMMERCIAL ACTIVITIES AT EXPO 2017 ASTANA
SALES FROM CHANNELS SALES BY MONTH
Retail Café Catering 5,151,751.23 6,000,000 RETAIL STORE SALES 5,000,000
4,000,000 8,150,990.00 3,000,000 MALAYSIA CAFÉ SALES 2,000,000
1,000,000 22,938,595.00 CATERING SERVICES SALES Pre-Expo W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 TOTAL SALES 36,241,336.23 KZT Malaysia Café
The Malaysia Café was run in partnership The Café had a kiosk for order on Level with an Astana-based restaurant The 1 of the Malaysia Pavilion and the Café India Gate (Too Mayura LLP) with the itself was located on Level 2. It was widely employment of two head chefs and one popular with international and Malaysian sous chef from Malaysia, as well as two visitors alike and catered for numerous local Kazakhstani kitchen assistants. Malaysia Pavilion events.
Malaysia Café 8,150, 990.00 106, 813.83 Total Revenue : MYR 474,920.97 Sales KZT MYR Total Cost : MYR 170,481.60 Catering 22,938,595.00 300,596.52 Total Profit : MYR 304,439.37 Services Sales KZT MYR Total Commission to GTMA Total 36,241,336.23 474,920.97 (10% of Total Revenue) KZT MYR : MYR 40,741.00
Retail Store
The Retail store located at the end of Level 1 of the Malaysia Pavilion offering 9 products as shown below which were a combination of custom order merchandise in line with the Malaysia Pavilion’s Butterfly campaign brand identity and traditional Malaysian products such as batik shawl and scarves.
greentechmalaysia.my Malaysia Retail Store
No List of Items Description Price (KZT) 1 Umbrella 30 inch, taffeta, auto handle 4,500 2 Magic Mug Ceramic, Changes colour 2,000 3 Laptop Bag Nylon 6,500 4 T-Shirt Cotton round neck 3,000 5 Polo Shirt Cotton + virgin polyester 4,500 6 Green Hijab 100% recycled polyester, 20% nylon 12,000 7 Microfibre hand 80% recycled polyester, 20% nylon 1,500 towel 8 Batik Shawl Satin, crepe, cotton, chiffon etc 24,000 5,151,751.23 KZT 9 Batik Scarves Habotai, chiffon, jacquard, crepe, etc 24,000
All transactions were done in Kazakh Tenge (KZT) at the price stated above. 30% discounts were given to Malaysians, and a further 50% mark down were given during the final two (2) weeks of the Expo. Items 1-5 were purchased using the Astana budget,
RETAIL STORE SALES STORE RETAIL 67,510.61 MYR while items 6-9 were on consignment basis.
BUSINESS MATCHING FOR WEEK 1 & 2 – MALAYSIA PAVILION AT EXPO 2017 ASTANA Sales Data Month Retail (KZT) In addition to running the Malaysia Café and Retail stores, GTMA Pre-Expo 381,551 also led the Business Weeks for stakeholders on Week 1, themed Week 1 925,700 Renewable Energy (12th June – 18th June) and Week 2, themed Week 2 582,600 Energy Efficiency (19th June – 25th June) for Malaysia Pavilion at Week 3 174,600 EXPO 2017 Astana. Week 4 305,200 Week 5 215,650 These Business Weeks included official Business Matching Week 6 257,450 programmes by Malaysia External Trade Development Week 7 261,300 Corporation (MATRADE) and at the Malaysia Energy Forum on 12th Malaysian Green Technology Corporation Week 8 168,800 June organised by the Astana EXPO team. Week 9 526,700 The collective sum of business leads derived from business Week 10 432,900 matching programmes throughout these two weeks amounted to Week 11 372,800 USD1.55 billion, equivalent to MYR6.7 billion at the time of record. Week 12 126,600 Week 13 419,900 Total 5,151,751 ANNUAL REPORT 2017 69 70 GreenTech Catalyst
GreenTech Catalyst Sdn. Bhd., one of two wholly owned subsidiary of GreenTech Malaysia Alliances Sdn. Bhd. (GTMA), focuses its offerings in the fields of green certification and verification as well as incentives for green technology businesses.
GREEN CERTIFICATION & VERIFICATION
Green Labelling & Certification Scheme under the MyHIJAU Programme
As of 2017, there are a total of 6,577 green products certified by various Malaysian green certification bodies such as SIRIM QAS International Sdn. Bhd. (SIRIM Eco Label Scheme), Suruhanjaya Tenaga (Energy Efficiency Rating & Labelling Scheme), Suruhanjaya Perkhidmatan Air Negara (Water Efficient Products Labelling Scheme) and Malaysian Timber Certification Council (Malaysia Timber Certification Scheme).
No. Certification Scheme 2013 2014 2015 2016 2017 Total 1 SIRIM QAS (SIRIM Eco 427 38 27 23 97 612 Label Scheme) 2 ST (Energy Efficiency 277 1,345 1,921 2,028 5,571 Rating & Labelling Scheme) 3 SPAN (Water Efficient 116 3 67 14 19 219 Products Labelling Scheme) 4 MTCC (Malaysian 175 175 Timber Certification Scheme) Yearly (Total) 543 318 1,439 1,958 2,319 6,577
MyHIJAU Mark & Directory
MyHIJAU Mark & Directory is a government initiative to promote the sourcing and purchasing of green products and services in Malaysia by providing a single recognisable mark that consolidates all certified products and services that meet local and international environmental standards, as well as an online directory which allows easy access to the public.
Promotion for the recognition of environmentally friendly products and services will continue in 2018 under GreenTech Malaysia, critically through the increasing demand coming from the Government Green Procurement (GGP) mandate by Ministry of Finance which requires all government ministries to ensure 20% of their procurement to be green. greentechmalaysia.my MyHIJAU Mark for Green Products MyHIJAU Mark for Green Products & Services by Sector & Services by Sector Sector No. of No. of Green No. of Green Total Green 1% 25% Companies Products Services Products & Services 14% Building 58 303 36 339 1% Energy 117 695 84 779 59% Transport 8 10 2 12 Waste 23 168 19 187 Water 4 13 0 12 Energy Transport Waste Water TOTAL 210 1,189 141 1,330 Building
MyHIJAU Industry & SME Development Programme
In 2017, GreenTech Catalyst continued its MyHIJAU Industry & SME Development Programme, aimed at creating more green products and services that are manufactured, supplied and provided by local Malaysian industry and small medium enterprises (SMEs). This programme provides business advisory and consultancy services designed to facilitate the development of green products and services including meeting standards, regulations and testing requirements to obtain green certification as well as access to financing facilities.
Companies Served 3%
7% 9 seminars took place this year in Kuala KL Putrajaya Lumpur, Putrajaya, Johor Bahru, Penang, 7% 58% Penang KK Kota Kinabalu and Kuching, serving a total of 6% 298 companies. JB Kuching 19%
Year 2013 2014 2015 2016 2017
Number of Registered Companies 39 96 191 397 820 Malaysian Green Technology Corporation
Additionally, the programme encourages companies to implement green practices in their production or operations for a more holistic sustainability effort and also encourage consumption of green products and services in their own organisation. ANNUAL REPORT 2017
71 72 GreenTech Catalyst
State Number of SME Number of Non- Total Number of Bumiputera Companies SME Companies Companies Johor 35 9 44 - Kedah 16 3 19 4 Kelantan 3 - 3 1 Kuala Lumpur 44 15 59 7 Melaka 6 1 7 2 Negeri Sembilan 4 2 6 1 Pahang 12 2 14 2 Penang 20 5 25 - Perak 16 6 22 3 Perlis - - - - Sabah 8 - 8 - Sarawak 4 1 5 1 Selangor 159 46 205 29 Terengganu 6 - 6 2 TOTAL 333 90 423 52
GREEN INCENTIVES Aside from encourage green 3 MECHANISMS procurement, GreenTech Catalyst focuses on administrating green incentives provided by the Government Green Technology Second GITA & GITE with the aim of increasing green Financing Scheme Opinion investments within the country. (GTFS) Provider Green Technology Financing Scheme (GTFS)
This year the Green Technology Financing Scheme (GTFS) recorded its highest value in financing approval since the inception of the scheme in 2010. 48 projects received financing from participating financial institutions to a total sum of RM723,152,971 covering majority of their green technology costs which stood at a total of RM785,926,804. This resulted in a CO2 emissions avoidance of 656,002.111. greentechmalaysia.my The GTFS has been widely successful financing 319 projects since 2010 up to RM3.639 billion. This year showed that demand for green technology financing will only keep increasing.
As of 31st December 2017, 319 Green Projects have received financing offer by 28 banks, amounting to RM3.638 billion
CO2 Green Investments Green Employment GHG Emissions Reduction RM7.053 4,909 jobs 3.784 million billion tonnes CO2 equivalent
Sector Nos Total Financing TE GT cost (RM) CO2 Reduction Total Project Approved by Cost (RM) PFI’s (RM) Energy 265 3,094,684,415 3,533,552,604 3,002,887.916 5,803,686,269 Waste & Water 45 487,664,923 643,019,495 730,954.960 976,226,025 Building 4 31,400,052 38,843,052 37,914.000 135,726,148 Transportation 5 25,230,000 71,795,700 12,805.440 138,358,495 319 3,638,979,390 4,287,210,851 3,784,562.316 7,053,996,937
Year No. of Total Financing TE GT Cost (RM) CO2 Reduction Total Project Cost Projects Approved by PFI’s (RM) (RM) 2010 13 158,892,500 203,216,845 261,476.870 273,736,301 2011 22 394,595,012 476,264,517 664,510.540 983,784,119
2012 42 508,847,983 657,758,343 384,657.090 925,184,495 Malaysian Green Technology Corporation 2013 43 518,089,120 601,857,303 602,194.510 970,258,592 2014 44 395,489,210 467,566,425 459,764.850 715,297,383 2015 61 533,694,122 599,830,197 476,728.882 897,756,217 2016 46 406,218,472 494,790,416 279,228.433 984,031,814 2017 48 723,152,971 785,926,804 656,001.141 1,303,948,016
319 3,638,979,390 4,287,210,851 3,784,562.316 7,053,996,937 ANNUAL REPORT 2017
73 74 Conventional vs Islamic GreenTech Catalyst 55% 45% Conventional Islamic
GTFS PERFORMANCE 2010 – 2017 319 Projects Conventional vs Islamic GTFS PROJECTS BY SECTOR RM3.639 billion Financing Approvals 800 55% 45% 70 Conventional Islamic 14% 61 2% 700 60 1% 600 46 48 44 50 42 43 319 Projects 500 RM3.639 billion 40 400
RM (MIL) Financing Approvals 800 70 30 300 508.8 518.1 61 533.7 700 22 395.5 60406.2 723.2 600 48 20 46 50 200 13 42 43 44 83% 500 394.6 40 10 100 400 RM (MIL) 30 158.9 508.8 518.1 533.7 0 300 22 395.5 406.2 723.2 0 20 200 13 2010 394.62011 2012 2013 2014 2015 2016 2017 Energy Building Transport 100 10 Total Loan 158.9158.9 394.6 508.8 518.1 395.5 533.7 406.2 723.2 Waste & Water No. of Projects0 13 22 42 43 44 61 0 46 48 2010 2011 2012 2013 2014 2015 2016 2017 Total Loan 158.9 394.6 508.8 518.1 395.5 533.7 406.2 723.2 No. of Projects 13 22 42 43 44 61 46 48
BREAKDOWN BY PARTICIPATING FINANCIAL INSTITUTION
60 Cumulative Financing Approval by Financial Institution 800,000,000 700,000,000 50 600,000,000
40 500,000,000
30 400,000,000 300,000,000 20 200,000,000 10 100,000,000
0 – Alkhair MDV (i) Ambank Maybank RHB Bank UOB Bank A n Bank A n Exim Bank CIMB Bank Bank Islam HSBC Bank OCBC Bank Public Bank Public SME Bank (i) Kuwait FH (i) Kuwait Agro Bank (i) Agro AmIslamic (i) AmIslamic Alliance Bank Alliance RHB Islamic (i) Bank Rakyat (i) A n Islamic (i) A n CIMB Islamic (i) OCBC Al-Amin (i) OCBC Al-Amin HSBC Amanah (i) HSBC Amanah Hong Leong Bank Hong Leong Maybank Islamic (i) Maybank Standard Chartered Standard Bank Pembangunan No of Financing Financing Amount (RM)
In 2018, it is targeted that a new GTFS 2.0 with a total funding earmarked up to RM5.0 billion will continue to support green technology projects in the country. This is in line with the GTMP launched in October, of which GTFS 2.0 will support investment in the 6 main sectors Energy, Manufacturing, Building, Transport, Waste and Water for the next 5 years until end of 2022. Apart from the current application available to Producers and Users of green technology, GTFS 2.0 will also support Energy Service Companies (ESCOs), especially for works such as Energy Performance Contracting.
greentechmalaysia.my Second Opinion Provider
“Second Opinions” are independent assessments of an issuer’s green bond or sukuk, benchmarked against recognised standards and guidelines on green bonds. Although the provision of an independent review or second opinion is voluntary it is important for the issuance of green bond in view of the following reasons:
• CONFIDENCE in green credentials • Transparency to the underlying asset allowing investor DUE DILIGENCE • Certification enables the issuer and underwriters to MARKET the BOND as a labelled Green Bond • Credible independent view to HELP INFORM decision-making to INVESTORS • Although not mandatory, issuers can also engage a verifier for regular assessment throughout the tenor of the bond. This may provide issuers and investors with additional Comfort in the ongoing status of the Green Bond
In providing this service in 2018, GreenTech Malaysia will mark another milestone in positioning itself as the Lead Green Technology Reference in promoting and developing green business in line with the National Green Technology Policy and the Green Technology Master Plan.
GITA/GITE
The Green Technology Tax Incentive was introduced by the Government under Budget 2014 with the aim to strengthen the development of green technology by offering Green Investment Tax Allowances (GITA) for the purchase of green technology equipment/assets and Green Income Tax Exemptions (GITE) for green technology service providers.
There are three (3) groups of eligibility under the Green Technology Tax Incentive outlined as follows: 1 2 3 Green Investment Tax Green Investment Tax Green Income Tax Allowance (GITA) Assets Allowance (GITA) Project Exemption (GITE) Services
Applicable for companies Applicable for companies Applicable for qualified green that acquire qualifying green that undertake qualified technology service provider technology assets and listed green technology projects for companies that are listed under MyHIJAU Directory. business or own consumption. under the MyHIJAU Directory.
In 2017, 27 applications were approved by GreenTech Malaysia for Green Investment Malaysian Green Technology Corporation Tax Allowance and Green Income Tax Exemption. The impacts from these projects are shown below: -
No Sector Status 1 Economy Generate green investment of RM45.8 million ANNUAL REPORT 2017 2 Environment Reduce CO2 emission of 87,497 tCO2eq/year 3 Social Contribute green jobs of 512 Jobs 75 76 GreenTech IdeasLAB
IGEM 2017 featured 378 booths, GreenTech IdeasLAB Sdn. Bhd., a wholly owned subsidiary participation from 38 countries and total visitorship of 34,868 of GreenTech Malaysia Alliances Sdn. Bhd. (GTMA), focuses people. A total of 27 programmes its offerings in the fields human capital development and and business matching were conducted and 14 MoUs and championing high-impact industry platforms for the promotion Product Launches. and growth of green technology business. Additionally, GreenTech IdeasLAB also provided various programmes in 2017 for the awareness of green technology within Malaysian secondary and tertiary education levels.
IGEM 2017
GreenTech Malaysia’s annual flagship event held at Kuala Lumpur Convention Centre, the International Greentech and Eco Products Exhibition and Conference Malaysia (IGEM) returned in 2017 for the 8th consecutive year. Aimed at providing a platform for green technology business in South East Asia, IGEM has successfully generated over RM10 Billion in business leads since its initiation in 2010 with participation from over 50 countries.
Held on 11th – 13th October this year and themed “Powering Green Cities”, IGEM 2017 garnered a record high in business leads, generating RM9.129 billion over the span of 3 days of exhibition and conference. This was contributed greatly with support of the following organisations:
Malaysian Investment Development Authority (MIDA) RM 5,192,700,000 Malaysian External Trade Development Corporation RM 16,310,00 (MATRADE) GreenTech Malaysia RM 3,500,000,000 Malaysia Exhibition Services Sdn. Bhd. RM 420,000,000
greentechmalaysia.my HAPPENINGS AT IGEM 1 2 3
IGEM 2O17 Main Programmes Bilateral Meeting Malaysia Bilateral Meeting Malaysia – 2,815 participants – Republic of South Korea – Republic of South Korea 4 5 6
Unveiling New Volvo S90 T8 GreenTech Malaysia Flagship Karnival Inovasi Teknologi Hijau Events - 5 programmes, – 320 students across Malaysia 367 participants 7 8 9
The Embassy of Czech Republic Securities Commission : Technical UNEP DTU Workshop Green Technology & Business Workshop on Green Sukuk – 9 speakers, 40 participants Matching – 63 Dialogues, – 10 speakers, 45 participants 12 Speakers
10 Malaysian Green Technology Corporation
AFEEC – FAPECA Conference Carbon Neutral Opportunities ANNUAL REPORT 2017 8 speakers, 180 participants 77 78 GreenTech IdeasLAB
JOURNEY TO ASTANA A special programme was crafted for delegates on a weekly basis, The Journey to Astana 2017 (JTA) which saw not only the showcase youth programme was an initiative and presentation of their products collaborated between GreenTech and programmes, but also a visit to Malaysia, Ministry of Energy, Green the prestigious autonomous research Technology and Water (KeTTHA), and university, Nazarbayev University in Ministry of Higher Education (MoHE). Astana, the capital city of Kazakhstan.
The programme, funded by the Upon completion of their trip, JTA Malaysian Electricity Supply Trust delegates shared their knowledge and Account, aimed to provide a global experience gained and thoughts on exposure for Malaysian youths and Sustainable Development Initiatives university researchers to showcase to their peers by hosting a symposium their technological products session at their respective universities. and sharing of educational best The first symposium was held at Universiti practices at a global platform. Institut Teknologi MARA Shah Alam campus. Following this, GreenTech JTA programme saw participation Malaysia organised 6 symposium of 25 students and 19 lecturers from sessions for further knowledge-transfer 15 public and private universities between JTA delegates and tertiary that showcased a total of 13 end- students, allowing the experience stage commercialised products and gained to benefit a wider group of 6 educational programmes at the audience during the International Malaysia Pavillion during the Astana Greentech & Eco Products Exhibition & EXPO in Kazakhstan from 10th June Conference Malaysia (IGEM) in Kuala to 10th September 2017. Lumpur Convention Centre.
Participating Universities Public Universities Private Universities 1. Universiti Kebangsaan Malaysia 1. Universiti Tenaga Nasional 2. Universiti Sains Malaysia 2. University Universiti Tunku Abdul Rahman 3. Universiti Teknikal Malaysia Melaka 3. Monash University Malaysia Campus 4. Universiti Putra Malaysia 4. Sunway University 5. Universiti Malaysia Terengganu 5. Limkokwing University of Creative 6. Universiti Malaysia Sarawak Technology 7. Universiti Teknologi Malaysia 6. Jeffrey Sachs Center 8. University of Malaya 9. Universiti Institut Teknologi Malaysia (UiTM) greentechmalaysia.my PRE-DEPARTURE BRIEFING FOR STUDENTS AND LECTURERS (DELEGATES OF JTA PROGRAMME) WAS HELD ON 27TH APRIL 2017 AND 17TH JULY 2017
April 27 July 17
Week 1 Product Showcase: Dense Array Week 7 Product Showcase: Green Woven Week 1 Product Showcase: Dense Array Concentrator Photovoltaic System Non- Sandwich Panel Product from Oil Palm Trunk Concentrator Photovoltaic System Non- Imaging Focusing Product by Universiti Tunku Wastes as Heavy Duty Building Material by Imaging Focusing Product by Universiti Abdul Rahman (UTAR). Universiti Putra Malaysia (UPM). Tunku Abdul Rahman (UTAR).
Week 8 Product Showcase: Courses offered at Universiti Institut Teknologi MARA (UiTM) and Universiti Teknologi
Malaysia (UTM). Malaysian Green Technology Corporation
JTA Delegates showcasing their products on Week 1, 4, 7 & 8 ANNUAL REPORT 2017
79 80 GreenTech IdeasLAB
Malaysia Education Week Opening Ceremony on 14th August 2017
Symposium held for tertiary students on 20th September 2017 at Universiti Institut Teknologi MARA (UiTM) Shah Alam
Symposium held for tertiary students on 11th to 13th October 2017 at IGEM 2017, Kuala Lumpur Convention Centre Malaysia Education Week
Further to the weekly programmes, GreenTech IdeasLAB, together with Education Malaysia Division of MoHE and Education Malaysia Global Services, were also responsible for coordinating the Malaysia Pavilion business week 10, themed “Education Week” from 14th to 19th August. It was aimed at creating business leads and network in the field of education between Malaysian and Kazakhstan institutions of higher learning. greentechmalaysia.my The Launch of Malaysia Education week was held on 14th August and officiated by Datuk Nik Ali Mat Yunus, Deputy Secretary General (Development) of Ministry of Higher Education (MoHE), who led the week with the presence of over 65 Malaysian delegates and stakeholders. Key attendees included: a. the Ambassador of Malaysia to Republic of Kazakhstan, His Excellency Syed Mohamad Bakri Syed Abd Rahman; b. Under Secretary Development and Finance Management Division, Ministry of Energy, Green Technology & Water (KeTTHA), Dato’ Mohd. Rodzwan Mohd Baba Sakri; c. Director of Education Malaysia Division, Ministry of Higher Education, Mr. Jamalulail Bin Abu Bakar; d. Executive Secretary, Ministry of Education and Science of the Republic of Kazakhstan, Mr Aryn Orsariyev; e. Director of the Department of Higher and Post-Graduate Education, Ministry of Education and Science of the Republic of Kazakhstan, Ms Gulzat Kobenova.
Highlights of the week include:
• Signing of MoU Addendum Document between Universiti Tenaga National (UNITEN) Malaysia and International I.T. University Kazakhstan during Week 10. • Courtesy visit by MOHE to Eurasian National University (ENU) and Kazakh National Arts University. • Delegation visit to Nazarbayev University in Astana • JTA showcase of products & services at the Malaysia Pavilion Business Centre • JTA presentation to public about their products, services and initiatives • Student Forum on Awareness of Sustainability/Green Technology forum • Education Week Business Matching sessions and networking • Delegation visit to EXPO country pavilions • Delegation cultural visit around Astana City Malaysian Green Technology Corporation ANNUAL REPORT 2017
81 82 GreenTech IdeasLAB
HUMAN CAPITAL DEVELOPMENT
Energy Management Training Programmes
This was the highest revenue generating unit within GreenTech Malaysia group, successfully conducting energy management trainings yielding RM1,163,000 in revenue.
Programmes provided:
1. Energy Manager Training Course (EMTC) 2. Certified Professional in Measurement and Verification (CPMV) 3. Energy Auditor Training Course (EATC) 4. Energy and Water Management Training (EWMT) 5. Have We Done Enough to Save Energy Bills? (HWDE)
Industry Lead Body (ILB)
GreenTech IdeasLAB also continued to embark on the Industry Lead Body (ILB) project this year, further developing new National Occupation Skills Standards (NOSS) for the field of green technology and National Competency Standards (NCS).
Applications were for competency and skills based on existing registered NOSS and NCS 2017 in the following areas:
greentechmalaysia.my 1. Scheduled Waste Operation 2. Anaerobic Digester Biogas Plant Management 3. Anaerobic Digester Biogas Plant Operation & Maintenance 4. Anaerobic Digester Biogas Plant Supervision 5. Production Operator (Palm Oil Mill) 6. Energy Audit Data Measurement 7. Solid Waste Collection Operation 8. Solid Waste Facility Operations 9. Maintenance Technician (Palm Oil Mill) 10. Low Voltage Electrical Installation & Maintenance 11. Solar Installation & Maintenance Practitioner 12. Solar Panel Manufacturing Operation (Thin Film Modul) 13. Solar PV System Installation & Maintenance 14. Mechanical & Electrical Supervisor 15. Assistant Maintenance Technician (Palm Oil Mill) 16. Building Automation & Energy Operation 17. Building Management System & Energy Optimization 18. Building Management System & Energy Management 19. Single Phase Electrical Installation & Maintenance 20. Three Phase Electrical Installation & Maintenance 21. Assistant Maintenance Technician 22. Low Voltage Electrical Installation & Maintenance 23. High Voltage Electrical Installation & Maintenance 24. Green Building Consultation & Management 25. Combined-Cycle/Coat Fired Power Plant Operation 26. Process Control Operation Supervisor 27. Mechanical Draughtsmanship 28. Mechanical & Electrical Supervisor 29. Construction Site Safety & Health Supervisor Malaysian Green Technology Corporation 30. Electric Vehicle Charging Station Installation and Maintenance ANNUAL REPORT 2017
83 GreenTech Malaysia Membership Financial Statements
86 GreenTech Malaysia Membership
INDIVIDUAL MEMBERS 8. Emas Kiara Electrical Sdn. Bhd. 9. Kloth Malaysia Sdn. Bhd. 1. Prof. Dr. K S Kannan 10. Cenviro Sdn. Bhd. 2. Neoh Kim Chuan 11. Otec Kemajuan Sdn. Bhd. 3. Ismail bin Ishak 12. Lybase Sdn. Bhd. 4. Leong Yeng Kit 13. Esona Technologies Sdn. Bhd. 5. Dato’ Sri Ung Eng Huat 14. Sapura Holdings Sdn. Bhd. 6. Dato’ Cheah Kah Lip 15. Driven Communications Sdn. Bhd. 7. Yong Sien Wae 8. Low Jit Tong HONORARY MEMBERS 9. Krian Upatkoon 10. Tengku Loreta Tengku Ramli 1. Dato’ Hamzah Bakar 11. Tan Hon Yik 2. Tan Sri Nuraizah Abdul Hamid 12. Datin Paduka Che Asmah Ibrahim 3. Datuk Zaharaton Raja Zainal Abidin 13. Mohamed Azrin Mohd Ali 4. Tan Sri Datuk Dr. Ahmad Zaharudin Idrus 14. Syed Ahmad Syed Mustafa 5. Prof. Dr. Kamel Ariffin Mohd Atan 15. Norhasliza Mohd Mokhtar 6. Dato’ Dr. Mohd Ariff Araff 16. Wan Faizal Mohd Anwar 7. Mohamed Zohari Mohamed Shaharun 17. Syireen Rose Mohamad Sha’ari 8. Tan Keok Yin 18. Ahmad Hadri Haris 9. Datin Husniarti Tamin 19. Dato’Ir.Dr. Dennis Ganendra 10. Prof. Ir. Dr. Zainal Abidin bin Ahmad 20. Syahrunizam Samsuddin 11. Dato’ Dr. Halim Shafie 21. Wong Foo Wen 12. Dato’ Syed Hamzah Syed Othman 22. Dato’ Leo Ariyanayakam 13. Prof. Dr. Muhamad Awang 23. Elina binti Jani 14. Dr. Mohd Zamzam Jaafar 24. Zuhril Azhar Ibrahim 15. Dato’ Ir. Lew Chin Hoi 25. Dato’ Shahrol Azral b. Ibrahim Halmi 16. Tan Boon Lee 26. Mohd Hasnul Ismar 17. Amir Abdul Rahman 27. Prof. Dr. Zainal b. Salam 18. Dato’ Teo Yen Hua 28. Lee Boon Chong 19. Leong Yee Heim 29. Hanafi Abdul Nasir 20. Che Azemi bin Haron 30. Dr. Maslina Tasrin binti Othman 21. Mohd Izzaddin Idris 22. Mohd Farid Mohd Amin CORPORATE MEMBERS 23. Ir. Dr. Hassan Ibrahim 24. Dato’ Dr. Halim Man 1. YTL Power Generation Sdn. Bhd. 25. Dato’ Dr. Rosli bin Mohamed 2. SFG Technologym(M) Sdn. Bhd. 26. Datuk Loo Took Gee 3. Akeru Enterprise Sdn. Bhd. 27. Prof. (Dr.) Ir. Hj. Keizrul bin Abdullah 4. Infrakomas Sdn. Bhd. 28. Datuk Hjh. Nor’aini binti Abdul Wahab 5. Pacific Engineering Sdn. Bhd. 29. Azhar Noraini 6. Veritas Architects Sdn. Bhd. 30. Dr. Anuar Abdul Rahman 7. Airestec Sdn. Bhd. greentechmalaysia.my Financial Statements
88 Directors’ Report 93 Statement by Directors 93 Statutory Declaration 94 Independent Auditors’ Report 98 Statements of Financial Position 100 Statements of Profit or Loss and Other Comprehensive Income 101 Statements of Changes in Equity 102 Statements of Cash Flows 105 Notes to the Financial Statements 88 Directors’ Report
The directors hereby submit their report and the audited financial statements of the Group and of the Company for the financial year ended 31 December 2017.
PRINCIPAL ACTIVITIES
The principal activities of the Company is to act as the focal point for the development of green technology in Malaysia by undertaking advisory services, driving and facilitating the implementation and growth of green technology industry and compiling data by way of coordination, development, training, transfer, adoption, research and development, innovation and commercialisation in green technology.
The Company also provides secretariat services for Green Technology Council that would support the implementation of National Green Technology Policy, contribution to the national economy and raising Malaysia’s global competitiveness on green technology.
The principal activities of the subsidiaries are set out in Note 5 to the financial statements. There have been no significant changes in the nature of these activities during the financial year.
RESULTS
The The Group Company RM RM Profit after taxation for the financial year 45,016 199,077
DIVIDENDS
The Company is prohibited from paying any dividend under Section 45(2)(b) of the Companies Act 2016 in Malaysia.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year.
greentechmalaysia.my ISSUES OF SHARES AND DEBENTURES
The Company is a company limited by guarantee and does not have any share capital. No debentures have been issued by the Company.
BAD AND DOUBTFUL DEBTS
Before the financial statements of the Group and the Company were made out, the directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for impairment losses on receivables, and satisfied themselves that there are no known bad debts and that no allowance for impairment losses on receivables is required.
At the date of this report, the directors are not aware of any circumstances that would require the writing off of bad debts, or the allowance for impairment losses on receivables in the financial statements of the Group and of the Company.
CURRENT ASSETS
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ensure that any current assets, which were unlikely to be realised in the ordinary course of business, including their value as shown in the accounting records of the Group and of the Company, have been written down to an amount which they might be expected so to realise.
At the date of this report, the directors are not aware of any circumstances which would render the values attributed to the current assets in the financial statements misleading.
VALUATION METHODS
At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate. Malaysian Green Technology Corporation ANNUAL REPORT 2017
89 90 Directors’ Report (Cont’d)
CONTINGENT AND OTHER LIABILITIES
At the date of this report, there does not exist:-
(a) any charge on the assets of the Group and of the Company that has arisen since the end of the financial year which secures the liabilities of any other person; or
(b) any contingent liability of the Group and of the Company which has arisen since the end of the financial year.
No contingent or other liability of the Group and of the Company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations when they fall due.
CHANGE OF CIRCUMSTANCES
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading.
ITEMS OF AN UNUSUAL NATURE
The results of the operations of the Group and of the Company during the financial year were not, in the opinion of the directors, substantially affected by any item, transaction or event of a material and unusual nature.
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect substantially the results of the operations of the Group and of the Company for the financial year in which this report is made.
greentechmalaysia.my DIRECTORS
The names of directors of the Company who served during the financial year and up to the date of this report are as follows:-
Professor Datin Paduka Prof. Dr. Khatijah Binti Mohammad Yusoff Datuk Poh Pai Kong Hazim Bin Jamaluddin Afidah Azwa Binti Abdul Aziz (Alternate Director to Hazim bin Jamaluddin) Baskaran A/L Madhavan Nair Datuk Wira Jalilah Binti Baba Datin Badriyah Binti Ab Malek Rogayah Binti Kadari (Alternate Director to Datin Badriyah Binti Ab Malek) Dr. Mohd Azman Bin Zainul Abidin (Appointed on 1.5.2017) Julita Mojungki (Resigned on 31.5.2017) Dato’ Hafsah Binti Hashim (Resigned on 3.7.2017) Tan Sri Peter Chin Fah Kui (Resigned on 6.4.2018) Mohamad Razif Bin Haji Abd Mubin (Resigned on 2.5.2018)
The names of directors of the Company’s subsidiaries who served during the financial year and up to the date of this report, not including those directors mentioned above, are as follows:-
T/Sharifah Hanif Binti Tengku Hamzah (Appointed on 7.12.2017) Noor Azmin Azali Bin Ramli (Appointed on 8.12.2017) Ir. Ahmad Hadri Bin Haris (Resigned on 2.5.2017) Tan Sri Datuk Seri Mohd Hussin Bin Abdul Hamid (Resigned on 7.12.2017)
DIRECTORS’ INTERESTS
The Company is a company limited by guarantee and does not have any share capital.
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no director has received or become entitled to Malaysian Green Technology Corporation receive any benefit by reason of a contract made by the Company or a related corporation with the director or with a firm of which the director is a member, or with a company in which the director has a substantial financial interest.
Neither during nor at the end of the financial year was the Group or the Company a party to any arrangements whose object is to enable the directors to acquire benefits by means of the ANNUAL REPORT 2017 acquisition of shares in or debentures of the Company or any other body corporate. 91 92 Directors’ Report (Cont’d)
DIRECTORS’ REMUNERATION
There were no directors’ remuneration paid or payable during the financial year.
INDEMNITY AND INSURANCE COST
During the financial year, there is no indemnity given to or professional indemnity insurance effected for directors, officers or auditors of the Company.
SUBSIDIARIES
The details of the Company’s subsidiaries are disclosed in Note 5 to the financial statements.
SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
The significant event during the financial year is disclosed in Note 27 to the financial statements.
AUDITORS
The auditors, Messrs. Crowe Horwath, have expressed their willingness to continue in office.
The auditors’ remuneration are disclosed in Note 21 to the financial statements.
Signed in accordance with a resolution of the directors dated
Professor Datin Paduka Dr. Khatijah Binti Mohammad Yusoff
Datuk Poh Pai Kong
greentechmalaysia.my Statement by Directors Pursuant to Section 251(2) of the Companies Act 2016
We, Professor Datin Paduka Dr. Khatijah Binti Mohammad Yusoff and Datuk Poh Pai Kong, being two of the directors of Malaysian Green Technology Corporation, state that, in the opinion of the directors, the financial statements set out on pages 98 to 144 are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2017 and of their financial performance and cash flows for the financial year ended on that date.
Signed in accordance with a resolution of the directors dated
Professor Datin Paduka Dr. Khatijah Binti Mohammad Yusoff Datuk Poh Pai Kong
Statutory Declaration Pursuant to Section 251(1)(B) of The Companies Act 2016
I, Professor Datin Paduka Dr. Khatijah Binti Mohammad Yusoff, being the director primarily responsible for the financial management of Malaysian Green Technology Corporation, do solemnly and sincerely declare that the financial statements set out on pages 98 to 144 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the declaration to be true, and by virtue of the Statutory Declarations Act 1960.
Subscribed and solemnly declared by the abovementioned Professor Datin Paduka Dr. Khatijah Binti Mohammad Yusoff, NRIC Number: 560712-07-5402, at Kuala Lumpur in the Federal Territory on this Malaysian Green Technology Corporation ANNUAL REPORT 2017 Before me Professor Datin Paduka Dr. Khatijah Binti Mohammad Yusoff 93 94 Independent Auditors’ Report to the Members of Malaysian Green Technology Corporation (Incorporated in Malaysia) Company No:462237-T
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Malaysian Green Technology Corporation, which comprise the statements of financial position as at 31 December 2017 of the Group and of the Company, and the statements of profit or loss and other comprehensive income, statements of changes in equity and statements of cash flows of the Group and of the Company for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 98 to 144.
In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2017, and of their financial performance and their cash flows for the financial year then ended in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.
Basis for Opinion
We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence and Other Ethical Responsibilities
We are independent of the Group and of the Company in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
Information Other than the Financial Statements and Auditors’ Report Thereon
The directors of the Company are responsible for the other information. The other information comprises the Directors’ Report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Company does not cover the Directors’ Report and we do not express any form of assurance conclusion thereon.
greentechmalaysia.my Information Other than the Financial Statements and Auditors’ Report Thereon (Cont’d)
In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the Directors’ Report and, in doing so, consider whether the Directors’ Report is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this Directors’ Report, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Statements
The directors of the Company are responsible for the preparation of the financial statements of the Group and of the Company that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements of the Group and of the Company that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Company, the directors are responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group and the Company or to cease operations, or have no realistic alternative but to do so.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Company as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of Malaysian Green Technology Corporation these financial statements. ANNUAL REPORT 2017
95 96 Independent Auditors’ Report to the Members of Malaysian Green Technology Corporation (Incorporated in Malaysia) Company No:462237-T (Cont’d)
Auditors’ Responsibilities for the Audit of the Financial Statements (Cont’d)
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:-
• Identify and assess the risks of material misstatement of the financial statements of the Group and of the Company, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Group and of the Company or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group or the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Company, including the disclosures, and whether the financial statements of the Group and of the Company represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
greentechmalaysia.my Auditors’ Responsibilities for the Audit of the Financial Statements (Cont’d)
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
OTHER MATTERS
This report is made solely to the members of the Company, as a body, in accordance with Section 266 of the Companies Act 2016 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Crowe Horwath Chong Tuck Wai Firm No: AF 1018 Approval No: 03023/03/2019 J Chartered Accountants Chartered Accountant
Kuala Lumpur Malaysian Green Technology Corporation ANNUAL REPORT 2017
97 98 Statements of Financial Position at 31 December 2017
The Group The Company 2017 2016 2017 2016 Note RM RM RM RM ASSETS NON-CURRENT ASSETS Investment in subsidiaries 5 – – 2,500,000 2,500,000 Investment in a joint venture 6 6,179 7,503 – – Property, plant and equipment 7 18,909,238 19,999,206 18,909,238 19,999,206 Deferred expenditure 350,675 329,399 350,675 329,399 19,266,092 20,336,108 21,759,913 22,828,605 CURRENT ASSETS Trade receivables 8 3,209,384 6,033,414 3,095,595 6,033,414 Other receivables, deposits and prepayments 9 757,116 4,117,171 757,116 4,117,171 Amount owing by subsidiaries 10 – – 377,154 – Current tax assets 45,704 324,853 45,704 324,853 Fixed deposits with licensed banks 11 45,431,215 35,872,636 45,431,215 35,872,636 Cash and bank balances 4,192,971 3,070,268 1,672,125 3,050,284 53,636,390 49,418,342 51,378,909 49,398,358 TOTAL ASSETS 72,902,482 69,754,450 73,138,822 72,226,963
EQUITY AND LIABILITIES Retained profits 12 21,442,458 21,397,442 21,755,659 21,556,582
NON-CURRENT LIABILITIES Government grants 13 20,486,995 20,735,008 20,486,995 20,735,008 Deferred income 14 352,795 2,187,769 352,795 2,187,769 Building fund 15 17,570,816 18,272,069 17,570,816 18,272,069 38,410,606 41,194,846 38,410,606 41,194,846
greentechmalaysia.my The Group The Company 2017 2016 2017 2016 Note RM RM RM RM EQUITY AND LIABILITIES (CONT’D) CURRENT LIABILITIES Trade payables 16 10,689,990 5,351,769 10,635,501 5,351,769 Other payables and accruals 17 2,344,588 1,795,553 2,322,216 1,770,916 Amount owing to subsidiaries 18 – – – 2,338,010 Amount owing to a related party 19 14,840 14,840 14,840 14,840 13,049,418 7,162,162 12,972,557 9,475,535 TOTAL LIABILITIES 51,460,024 48,357,008 51,383,163 50,670,381 TOTAL EQUITY AND LIABILITIES 72,902,482 69,754,450 73,138,822 72,226,963 Malaysian Green Technology Corporation ANNUAL REPORT 2017 The annexed notes form an integral part of these financial statements. 99 100 Statements of Profit or Loss and Other Comprehensive Income for the Financial Year Ended 31 December 2017
The Group The Company 2017 2016 2017 2016 Note RM RM RM RM REVENUE 20 56,513,476 24,442,678 55,978,753 22,382,921
COST OF SALES 21 (48,589,831) (21,321,836) (48,269,627) (19,895,507) GROSS PROFIT 7,923,645 3,120,842 7,709,126 2,487,414
OPERATING GRANT 1,300,000 3,279,036 1,300,000 3,279,036
OTHER INCOME 2,061,761 2,160,452 2,061,761 2,160,452
ADMINISTRATIVE EXPENSES (9,495,524) (7,721,864) (9,128,268) (6,955,793)
OTHER EXPENSES (1,147,220) (1,298,926) (1,147,220) (1,298,926)
SHARE OF NET LOSS OF EQUITY ACCOUNTED JOINT VENTURE (1,324) (22,497) – – PROFIT/(LOSS) BEFORE TAXATION 22 641,338 (482,957) 795,399 (327,817)
INCOME TAX EXPENSE 23 (596,322) 220,317 (596,322) 220,317
PROFIT/(LOSS) AFTER TAXATION 45,016 (262,640) 199,077 (107,500)
OTHER COMPREHENSIVE INCOME – – – –
TOTAL COMPREHENSIVE INCOME/(EXPENSES) FOR THE FINANCIAL YEAR 45,016 (262,640) 199,077 (107,500)
PROFIT/(LOSS) AFTER TAXATION ATTRIBUTABLE TO:- Owner of the Company 45,016 (262,640) 199,077 (107,500)
TOTAL COMPREHENSIVE INCOME/(EXPENSES) ATTRIBUTABLE TO:- Owner of the Company 45,016 (262,640) 199,077 (107,500)
The annexed notes form an integral part of these financial statements. greentechmalaysia.my Statements of Changes in Equity for the Financial Year Ended 31 December 2017
Retained Total Profits Equity RM RM The Group
Balance at 1.1.2016 21,660,082 21,660,082
Loss after taxation for the financial year/Total comprehensive (262,640) (262,640) expenses for the financial year Balance at 31.12.2016/1.1.2017 21,397,442 21,397,442
Profit after taxation for the financial year/Total comprehensive 45,016 45,016 income for the financial year Balance at 31.12.2017 21,442,458 21,442,458
Retained Total Profits Equity RM RM The Company
Balance at 1.1.2016 21,664,082 21,664,082
Loss after taxation for the financial year/Total comprehensive expenses for the financial year (107,500) (107,500) Balance at 31.12.2016/1.1.2017 21,556,582 21,556,582
Profit after taxation for the financial year/Total comprehensive Income for the financial year 199,077 199,077 Balance at 31.12.2017 21,755,659 21,755,659 Malaysian Green Technology Corporation ANNUAL REPORT 2017 The annexed notes form an integral part of these financial statements. 101 102 Statements of Cash Flows for the Financial Year Ended 31 December 2017
The Group The Company 2017 2016 2017 2016 Note RM RM RM RM CASH FLOWS FROM/(FOR) OPERATING ACTIVITIES Profit/(Loss) before taxation 641,338 (482,957) 795,399 (327,817)
Adjustments for:- Depreciation of property, plant and equipment 1,147,220 1,298,926 1,147,220 1,298,926 Amortisation of building fund (701,253) (701,253) (701,253) (701,253) Gain on disposal of property, plant and equipment – (8,456) – (8,456) Interest income (1,360,508) (1,369,105) (1,360,508) (1,369,105) Share of results of a joint venture 1,324 22,497 – –
Operating loss before working capital changes (271,879) (1,240,348) (119,142) (1,107,705) Increase in deferred expenditure (21,276) (279,019) (21,276) (279,019) (Decrease)/Increase in deferred income (1,834,974) 2,187,769 (1,834,974) 2,187,769 Decrease/(Increase) in trade and other receivables 6,184,085 (7,598,002) 6,297,874 (7,598,002) Increase in trade payables and other payables 5,887,256 2,367,276 5,835,032 2,346,639
CASH FROM/(FOR) OPERATIONS 9,943,212 (4,562,324) 10,157,514 (4,450,318) Income tax paid (317,173) (184,769) (317,173) (184,769)
NET CASH FROM/(FOR) OPERATING ACTIVITIES 9,626,039 (4,747,093) 9,840,341 (4,635,087)
greentechmalaysia.my The Group The Company 2017 2016 2017 2016 Note RM RM RM RM CASH FLOWS FROM/(FOR) INVESTING ACTIVITIES Advances to subsidiaries – – (215,164) – Interest received 1,360,508 1,369,105 1,360,508 1,369,105 Investment in a joint venture – (30,000) – – Investment in subsidiaries – – – (2,500,000) Decrease/(Increase) in fixed deposits with licensed banks more than 3 months 563,667 (2,588,627) 563,667 (2,588,627) Increase in pledged fixed deposits with a licensed bank (1,696,614) – (1,696,614) – Proceed from disposal of property, plant and equipment – 41,523 – 41,523 Purchase of property, plant and equipment (57,252) (170,269) (57,252) (170,269) NET CASH FROM/(FOR) INVESTING ACTIVITIES 170,309 (1,378,268) (44,855) (3,848,268)
CASH FLOWS (FOR)/FROM FINANCING ACTIVITIES Advances from subsidiaries – – – 2,338,010 Advances from a related party – 14,840 – 14,840 Net (utilisation of)/drawdown from government grants (248,013) 5,474,529 (248,013) 5,474,529 Repayment to a subsidiary – – (2,500,000) – Malaysian Green Technology Corporation ANNUAL REPORT 2017
103 104 Statements of Cash Flows for the Financial Year Ended 31 December 2017 (Cont’d)
The Group The Company 2017 2016 2017 2016 Note RM RM RM RM NET CASH (FOR)/FROM FINANCING ACTIVITIES (248,013) 5,489,369 (2,748,013) 7,827,379
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 9,548,335 (635,992) 7,047,473 (655,976)
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE FINANCIAL YEAR 9,097,632 9,733,624 9,077,648 9,733,624
CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL YEAR 24 18,645,967 9,097,632 16,125,121 9,077,648
The annexed notes form an integral part of these financial statements. greentechmalaysia.my Notes to the Financial Statements for the Financial Year 31 December 2017
1. GENERAL INFORMATION
The Company is a company limited by guarantee and domiciled in Malaysia. The registered office and principal place of business are as follows:-
Registered office : Suite C-5-4, Wisma Goshen, Plaza Pantai, Jalan Pantai Baharu, 59200 Kuala Lumpur.
Principal place of business : No. 2, Jalan 9/10 Persiaran Usahawan, Seksyen 9, Bandar Baru Bangi, 43650 Selangor Darul Ehsan.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors dated 31 May 2018.
2. PRINCIPAL ACTIVITIES
The principal activities of the Company is to act as the focal point for the development of green technology in Malaysia by undertaking advisory services, driving and facilitating the implementation and growth of green technology industry and compiling data by way of coordination, development, training, transfer, adoption, research and development, innovation and commercialisation in green technology.
The Company also provides secretariat services for Green Technology Council that would support the implementation of National Green Technology Policy, contribution to the national economy and raising Malaysia’s global competitiveness on green technology.
The principal activities of the subsidiaries are set out in Note 5 to the financial statements. There have been no significant changes in the nature of these activities during the financial year.
3. BASIS OF PREPARATION Malaysian Green Technology Corporation
The financial statements of the Group are prepared under the historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia. ANNUAL REPORT 2017
105 106 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
3. BASIS OF PREPARATION (CONT’D)
3.1 During the current financial year, the Group has adopted the following new accounting standards and interpretations (including the consequential amendments, if any):-
MFRSs and/or IC Interpretations (Including The Consequential Amendments) Amendments to MFRS 107: Disclosure Initiative Amendments to MFRS 112: Recognition of Deferred Tax Assets for Unrealised Losses Annual Improvements to MFRS Standards 2014 – 2016 Cycles: Amendments to MFRS 12: Clarification of the Scope of the Standard
The adoption of the above accounting standards and/or interpretations (including the consequential amendments, if any) did not have any material impact on the Group’s financial statements.
3.2 The Group has not applied in advance the following accounting standards and/or interpretations (including the consequential amendments, if any) that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective for the current financial year:-
MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date MFRS 9 Financial Instruments (IFRS 9 as issued by IASB in July 2014) 1 January 2018 MFRS 15 Revenue from Contracts with Customers 1 January 2018 MFRS 16 Leases 1 January 2019 MFRS 17 Insurance Contracts 1 January 2021 IC Interpretation 22 Foreign Currency Transactions and Advance Consideration 1 January 2018 IC Interpretation 23 Uncertainty over Income Tax Treatments 1 January 2019 Amendments to MFRS 2: Classification and Measurement of Share- based Payment Transactions 1 January 2018 Amendments to MFRS 4: Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts 1 January 2018 Amendments to MFRS 9: Prepayment Features with Negative Compensation 1 January 2019 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Deferred Amendments to MFRS 15: Effective Date of MFRS 15 1 January 2018 Amendments to MFRS 15: Clarifications to MFRS 15 ‘Revenue from Contracts with Customers’ 1 January 2018 Amendments to MFRS 119: Plan Amendment, Curtailment or Settlement 1 January 2019 greentechmalaysia.my 3. BASIS OF PREPARATION (CONT’D)
3.2 The Group has not applied in advance the following accounting standards and interpretations (including the consequential amendments) that have been issued by the Malaysian Accounting Standards Board (MASB) but are not yet effective for the current financial year (Cont’d):-
MFRSs and/or IC Interpretations (Including The Consequential Amendments) Effective Date Amendments to MFRS 128: Long-term Interests in Associates and Joint Ventures 1 January 2019 Amendments to MFRS 140 – Transfers of Investment Property 1 January 2018 Annual Improvements to MFRS Standards 2014 – 2016 Cycles: • Amendments to MFRS 1: Deletion of Short-term Exemptions for First-time Adopters • Amendments to MFRS 128: Measuring an Associate or Joint Venture at Fair Value 1 January 2018 Annual Improvements to MFRS Standards 2015 – 2017 Cycles 1 January 2019
The adoption of the above accounting standards and interpretations (including the consequential amendments, if any) is expected to have no material impact on the financial statements of the Group upon their initial application except as follows:-
MFRS 9 (IFRS 9 issued by IASB in July 2014) replaces the guidance in MFRS 139 on the classification and measurement of financial assets and financial liabilities, impairment of financial assets, and on hedge accounting.
MFRS 9 contains a new classification and measurement approach for financial assets that reflects the business model in which the financial assets are managed and their cash flow characteristics. The new standard contains 3 principle classification categories for financial assets (measured at amortised cost, fair value through profit or loss , fair value through other comprehensive income) and eliminates the existing MFRS 139 categories of held to maturity, loans and receivables and available-for-sale financial assets. Malaysian Green Technology Corporation ANNUAL REPORT 2017
107 108 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
3. BASIS OF PREPARATION (CONT’D)
3.2 The adoption of the above accounting standards and interpretations (including the consequential amendments, if any) is expected to have no material impact on the financial statements of the Group upon their initial application except as follows (Cont’d):-
MFRS 9 replaces the ‘incurred loss’ model in MFRS 139 with an ‘expected credit loss’ (“ECL”) model. The new impairment model is forward-looking and eliminates the need for a trigger event to have occurred before credit losses are recognised. It involves a 3-stage approach under which financial assets move through the stages as their credit quality changes. This new impairment model applies to financial assets measured at amortised cost, debt instruments measured at fair value through other comprehensive income, contract assets, lease receivables, loan commitments and certain financial guarantee contracts.
The Group is currently assessing the impact of implementing MFRS 9. As a result, the potential impact on the adoption of this standard would only be observable when the assessment is completed later.
MFRS 15 establishes a single comprehensive model for revenue recognition and will supersede the current revenue recognition guidance and other related interpretations when it becomes effective. Under MFRS 15, an entity shall recognise revenue when (or as) a performance obligation is satisfied, i.e. when ‘control’ of the distinct promised goods or services underlying the particular performance obligation is transferred to the customers. The amendments to MFRS 15 further clarify the concept of ‘distinct’ for the purposes of this accounting standard. In addition, extensive disclosures are also required by MFRS 15 about the nature, amount, timing and uncertainty of revenue and cash flows from contracts with customers.
As at the date of authorisation of issue of the financial statements, the assessment of implementing MFRS 15 has not been finalised. Thus, the potential impact of the adoption of this standard cannot be determined and estimated reliably until the assessment is completed later.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES
4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Key Sources of Estimation Uncertainty
Management believes that there are no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year other than as disclosed below:-
(a) Depreciation of Property, Plant and Equipment
The estimates for the residual values, useful lives and related depreciation charges for the property, plant and equipment are based on commercial factors which could change significantly as a result of technical innovations and competitors’ actions in response to the market conditions. The Group anticipates that the residual values of its property, plant and equipment will be insignificant. As a result, residual values are not being taken into consideration for the computation of the depreciable amount. Changes in the expected level of usage and technological development could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.The carrying amount of property, plant and equipment as at the reporting date is disclosed in Note 7 to the financial statements.
(b) Impairment of Non-financial Assets
The Group determines whether its non-financial assets is impaired by evaluating the extent to which the recoverable amount of the asset is less than its carrying amount. This evaluation is subject to changes such as market performance, economic and political situation of the country. A variety of methods is used to determine the recoverable amount, such as valuation reports and discounted cash flows. For discounted cash flows, significant judgement is required in the estimation of the present value of future cash flows generated by the assets, which involve uncertainties and are significantly affected by assumptions used and judgements made regarding estimates of future cash flows and discount rates. The carrying amount of non-financial assets as at the reporting date is disclosed in notes to the Malaysian Green Technology Corporation financial statements. ANNUAL REPORT 2017
109 110 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)
Key Sources of Estimation Uncertainty (Cont’d)
Management believes that there are no key assumptions made concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year other than as disclosed below (Cont’d):-
(c) Impairment of Trade Receivables
An impairment loss is recognised when there is objective evidence that a financial asset is impaired. Management specifically reviews its trade receivables and analyses their ageing profiles, historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in the customer payment terms when making a judgement to evaluate the adequacy of the allowance for impairment losses. Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. If the expectation is different from the estimation, such difference will impact the carrying value of receivables. The carrying amount of trade receivables as at the reporting date is disclosed in Note 8 to the financial statements.
(d) Income Taxes
There are certain transactions and computations for which the ultimate tax determination may be different from the initial estimate. The Group recognises tax liabilities based on its understanding of the prevailing tax laws and estimates of whether such taxes will be due in the ordinary course of business. Where the final outcome of these matters is different from the amounts that were initially recognised, such difference will impact the income tax expense and deferred tax balances in the period in which such determination is made. The carrying amount of current tax assets as at the reporting date is RM45,704 (2016 - RM324,853).
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.1 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONT’D)
Critical Judgements Made in Applying Accounting Policies
Management believes that there are no instances of application of critical judgement in applying the Group’s accounting policies which will have a significant effect on the amounts recognised in the financial statements.
In the process of applying the Company’s accounting policies, the management is not aware of any judgements that have significant effects on the amounts recognised in the financial statements.
There are also no assumptions concerning the future and other key sources of estimation of uncertainties at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
4.2 BASIS OF CONSOLIDATION
The consolidated financial statements include the financial statements ofthe Company and its subsidiaries made up to the end of the reporting period.
Subsidiaries are entities controlled by the Group. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Potential voting rights are considered when assessing control only when such rights are substantive. The Group also considers it has de facto power over an investee when, despite not having the majority of voting rights, it has the current ability to direct the activities of the investee that significantly affect the investee’s return.
Subsidiaries are consolidated from the date on which control is transferred to the Group up to the effective date on which control ceases, as appropriate.
Intragroup transactions, balances, income and expenses are eliminated on consolidation. Intragroup losses may indicate an impairment that requires recognition Malaysian Green Technology Corporation in the consolidated financial statements. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with those of the Group. ANNUAL REPORT 2017
111 112 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.2 BASIS OF CONSOLIDATION (CONT’D)
(a) Business Combinations
Acquisitions of businesses are accounted for using the acquisition method. Under the acquisition method, the consideration transferred for acquisition of a subsidiary is the fair value of the assets transferred, liabilities incurred and the equity interests issued by the Group at the acquisition date. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs, other than the costs to issue debt or equity securities, are recognised in profit or loss when incurred.
In a business combination achieved in stages, previously held equity interests in the acquiree are remeasured to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss.
(b) Non-controlling Interests
Non-controlling interests in the acquiree may be initially measured either at fair value or at the non-controlling interests’ proportionate share of the fair value of the acquiree’s identifiable net assets at the date of acquisition. The choice of measurement basis is made on a transaction-by-transaction basis.
Non-controlling interests are presented within equity in the consolidated statement of financial position, separately from the equity attributable to owners ofthe Company. Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income is attributed to non-controlling interests even if this results in the non-controlling interests having a deficit balance.
(c) Changes in Ownership Interests in Subsidiaries without Change of Control
All changes in the parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of consideration paid or received is recognised directly in equity of the Group.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.2 BASIS OF CONSOLIDATION (CONT’D)
(d) Loss of Control
Upon the loss of control of a subsidiary, the Group recognises any gain or loss on disposal in profit or loss which is calculated as the difference between:-
(i) the aggregate of the fair value of the consideration received and the fair value of any retained interest in the former subsidiary; and
(ii) the previous carrying amount of the assets (including goodwill), and liabilities of the former subsidiary and any non-controlling interests.
Amounts previously recognised in other comprehensive income in relation to the former subsidiary are accounted for in the same manner as would be required if the relevant assets or liabilities were disposed of (i.e. reclassified to profit or loss or transferred directly to retained profits). The fair value of any investments retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under MFRS 139 or, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.
4.3 FUNCTIONAL AND FOREIGN CURRENCIES
The individual financial statements of each entity in the Group are presented in the currency of the primary economic environment in which the entity operates, which is the functional currency.
The consolidated financial statements of the Group are presented in Ringgit Malaysia (“RM”), which is the Group’s functional and presentation currency.
4.4 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised in the statements of financial position when the Group has become a party to the contractual provisions of the Malaysian Green Technology Corporation instruments.
Financial instruments are classified as financial assets, financial liabilities or equity instruments in accordance with the substance of the contractual arrangement and their definitions in MFRS 132. Interest, dividends, gains and losses relating to a financial
instrument classified as a liability are reported as an expense or income. Distributions ANNUAL REPORT 2017 to holders of financial instruments classified as equity are charged directly to equity. 113 114 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.4 FINANCIAL INSTRUMENTS (CONT’D)
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.
A financial instrument is recognised initially at its fair value. Transaction costs that are directly attributable to the acquisition or issue of the financial instrument (other than a financial instrument at fair value through profit or loss) are added to/deducted from the fair value on initial recognition, as appropriate. Transaction costs on the financial instrument at fair value through profit or loss are recognised immediately in profit or loss.
Financial instruments recognised in the statements of financial position are disclosed in the individual policy statement associated with each item.
(a) Financial Assets
On initial recognition, financial assets are classified as either financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables financial assets, or available-for-sale financial assets, as appropriate.
(i) Financial Assets at Fair Value through Profit or Loss
As at the end of the reporting period, there were no financial assets classified under this category.
(ii) Held-to-maturity Investments
As at the end of the reporting period, there were no financial assets classified under this category.
(iii) Loans and Receivables Financial Assets
Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables financial assets. Loans and receivables financial assets are measured at amortised cost using the effective interest method, less any impairment loss. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.4 FINANCIAL INSTRUMENTS (CONT’D)
(a) Financial Assets (Cont’d)
(iii) Loans and Receivables Financial Assets (Cont’d)
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Loans and receivables financial assets are classified as current assets, except for those having settlement dates later than 12 months after the reporting date which are classified as non-current assets.
(iv) Available-for-sale Financial Assets
As at the end of the reporting period, there were no financial assets classified under this category.
(b) Financial Liabilities
(i) Financial Liabilities at Fair Value through Profit or Loss
Fair value through profit or loss category comprises financial liabilities that are either held for trading or are designated to eliminate or significantly reduce a measurement or recognition inconsistency that would otherwise arise. Derivatives are also classified as held for trading unless they are designated as hedges. Fair value through profit or loss category also comprises contingent consideration in a business combination.
(ii) Other Financial Liabilities Malaysian Green Technology Corporation
Other financial liabilities are initially measured at fair value plus directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method. ANNUAL REPORT 2017
115 116 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.4 FINANCIAL INSTRUMENTS (CONT’D)
(b) Financial Liabilities (Cont’d)
(ii) Other Financial Liabilities (Cont’d)
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.
Financial liabilities are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
(c) Equity Instruments
Equity instruments classified as equity are measured initially at cost and are not remeasured subsequently.
(d) Derecognition
A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash flows from the financial asset expire or the financial assetis transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.5 INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries are stated at cost in the statement of financial position of the Company, and are reviewed for impairment at the end of the reporting period if events or changes in circumstances indicate that the carrying values may not be recoverable. The cost of the investments includes transaction costs.
On the disposal of the investments in subsidiaries, the difference between the net disposal proceeds and the carrying amount of the investments is recognised in profit or loss.
4.6 JOINT ARRANGEMENTS
Joint arrangements are arrangements of which the Group has joint control, established by contracts requiring unanimous consent for decisions about the activities that significantly affect the arrangements returns.
Investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures.
(a) Joint Operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, the obligations for the liabilities, relating to the arrangement. The Group accounts for each of its interest in the joint operations the assets, liabilities, revenue and expenses (including its share of those held or incurred jointly with the other investors) in accordance with the applicable accounting standards.
(b) Joint Ventures
A joint venture is a joint arrangement whereby the Group has rights only to the net assets of the arrangement. Malaysian Green Technology Corporation ANNUAL REPORT 2017
117 118 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.6 JOINT ARRANGEMENTS (CONT’D)
(b) Joint Ventures (Cont’d)
The investment in a joint venture is accounted for in the consolidated financial statements using the equity method, based on the financial statements of the joint venture made up to 31 December 2017. The Group's share of the post-acquisition profits and other comprehensive income of the joint venture is included inthe consolidated statement of profit or loss and other comprehensive income, after adjustment if any, to align the accounting policies with those of the Group, from the date that joint control commences up to the effective date when the investment ceases to be a joint venture or when the investment is classified as held for sale. The Group's interest in the joint venture is carried in the consolidated statement of financial position at cost plus the Group’s share of the post-acquisition retained profits and reserves. The cost of investment includes transaction costs.
When the Group’s share of losses exceeds its interest in a joint venture, the carrying amount of that interest is reduced to zero, and the recognition of further losses is discontinued except to the extent that the Group has an obligation.
Unrealised gains on transactions between the Group and the joint venture are eliminated to the extent of the Group's interest in the joint venture. Unrealised losses are eliminated unless cost cannot be recovered.
The Group discontinues the use of the equity method from the date when the investment ceases to be a joint venture or when the investment is classified as held for sale. When the Group retains an interest in the former joint venture and the retained interest is a financial asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as the initial carrying amount of the financial asset in accordance with MFRS 139. Furthermore, the Group also reclassifies its share of the gain or loss previously recognised in other comprehensive income of that joint venture to profit or loss when the equity method is discontinued. However, the Group will continue to use the equity method when an investment in a joint venture becomes an investment in an associate. Under such change in ownership interest, the retained investment is not remeasured to fair value but a proportionate share of the amounts previously recognised in other comprehensive income of the joint venture will be reclassified to profit or loss where appropriate. All dilution gains or losses arising in investments in joint ventures are recognised in profit or loss.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.7 PROPERTY, PLANT AND EQUIPMENT
All items of property, plant and equipment are initially measured at cost. Cost includes expenditure that are directly attributable to the acquisition of the asset and other costs directly attributable to bringing the asset to working condition for its intended use.
Subsequent to initial recognition, all property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when the cost is incurred and it is probable that the future economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. The carrying amount of parts that are replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
Depreciation on property, plant and equipment is charged to profit or loss (unless it is included in the carrying amount of another asset) on the straight-line method to write off the depreciable amount of the assets over their estimated useful lives. Depreciation of an asset does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated.
The principal annual rates used for this purpose are:-
Leasehold land 99 years Building 2% Computer 40% Energy audit equipment 20% Furniture and fittings 20% Motor vehicles 20% Office equipment 20% Renovation 10% Solar system 10% Malaysian Green Technology Corporation
The depreciation method, useful lives and residual values are reviewed, and adjusted if appropriate, at the end of each reporting period to ensure that the amounts, method and periods of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of the property, plant and equipment. Any changes are accounted for as a
change in estimate. ANNUAL REPORT 2017
119 120 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.7 PROPERTY, PLANT AND EQUIPMENT (CONT’D)
When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising from derecognition of the asset, being the difference between the net disposal proceeds and the carrying amount, is recognised in profit or loss.
4.8 IMPAIRMENT
(a) Impairment of Financial Assets
All financial assets (other than those categorised at fair value through profitor loss, investments in subsidiaries and investments in joint venture), are assessed at the end of each reporting period whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset.
An impairment loss in respect of held-to-maturity investments and loans and receivables financial assets is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.8 IMPAIRMENT (CONT’D)
(b) Impairment of Non-financial Assets
The carrying values of assets, other than those to which MFRS 136 - Impairment of Assets does not apply, are reviewed at the end of each reporting period for impairment when an annual impairment assessment is compulsory or there is an indication that the assets might be impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts. When the carrying amount of an asset exceeds its recoverable amount, the asset is written down to its recoverable amount and an impairment loss shall be recognised. The recoverable amount of an asset is the higher of the assets' fair value less costs to sell and its value‑in‑use, which is measured by reference to discounted future cash flows using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
An impairment loss is recognised in profit or loss.
When there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in profit or loss immediately.
4.9 CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value with original maturity periods of three months or less. Malaysian Green Technology Corporation ANNUAL REPORT 2017
121 122 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.10 PROVISIONS
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of past events, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and when a reliable estimate of the amount can be made. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the provision is the present value of the estimated expenditure required to settle the obligation. The discount rate shall be a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as interest expense in profit or loss.
4.11 EMPLOYEE BENEFITS
(a) Short-term Benefits
Wages, salaries, paid annual leave and bonuses are measured on an undiscounted basis and are recognised in profit or loss in the period in which the associated services are rendered by employees of the Group.
(b) Defined Contribution Plans
The Group’s contributions to defined contribution plans are recognised in profit or loss in the period to which they relate. Once the contributions have been paid, the Group has no further liability in respect of the defined contribution plans.
4.12 INCOME TAXES
(a) Current Tax
Current tax assets and liabilities are expected amount of income tax recoverable or payable to the taxation authorities.
Current taxes are measured using tax rates and tax laws that have been enacted or substantively enacted at the end of the reporting period and are recognised in profit or loss except to the extent that the tax relates to items recognised outside profit or loss (either in other comprehensive income or directly in equity).
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.12 INCOME TAXES (CONT’D)
(b) Deferred Tax
Deferred tax are recognised using the liability method for all temporary differences other than those that arise from goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the end of the reporting period.
Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised. The carrying amounts of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that the related tax benefits will be realised.
Current and deferred tax items are recognised in correlation to the underlying transactions either in profit or loss, other comprehensive income or directly in equity. Deferred tax arising from a business combination is adjusted against goodwill or negative goodwill.
Current tax assets and liabilities or deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred taxes relate to the same taxable entity (or on different tax entities but they intend to settle current tax assets and liabilities on a net basis) and the same taxation authority.
(c) Goods and Services Tax (“GST”) Malaysian Green Technology Corporation
Revenues, expenses and assets are recognised net of GST except for the GST in a purchase of assets or services which are not recoverable from the taxation authorities, the GST are included as part of the costs of the assets acquired or as part of the expense item whichever is applicable.
In addition, receivables and payables are also stated with the amount of GST ANNUAL REPORT 2017 included (where applicable). 123 124 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.12 INCOME TAXES (CONT’D)
(c) Goods and Services Tax (“GST”) (Cont’d)
The net amount of the GST recoverable from or payable to the taxation authorities at the end of the reporting period is included in other receivables or other payables.
4.13 FAIR VALUE MEASUREMENTS
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using a valuation technique. The measurement assumes that the transaction takes place either in the principal market or in the absence of a principal market, in the most advantageous market. For non-financial asset, the fair value measurement takes into account a market’s participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
For financial reporting purposes, the fair value measurements are analysed into level 1 to level 3 as follows:-
Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liability that the entity can access at the measurement date;
Level 2: Inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3: Inputs are unobservable inputs for the asset or liability.
The transfer of fair value between levels is determined as of the date of the event or change in circumstances that caused the transfer.
greentechmalaysia.my 4. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.14 REVENUE AND OTHER INCOME
(a) Government grants
Grants that compensate the Group for expenses incurred are recognised in profit or loss on a systematic basis over the period necessary to match them with the related expenses which they are intended to compensate for.
Grants that compensate the Group for the cost of an asset are recognised as deferred grant income in the statement of financial position and are amortised to profit or loss on a systematic basis over the expected useful life of the relevant asset.
(b) Services
Revenue is recognised upon the rendering of services and when the outcome of the transaction can be estimated reliably. In the event the outcome of the transaction could not be estimated reliably, revenue is recognised to the extent of the expenses incurred that are recoverable.
(c) Interest income
Interest income is recognised on an accrual basis using the effect interest method.
5. INVESTMENT IN SUBSIDIARIES
The Company 2017 2016 RM RM Unquoted shares, at cost 2,500,000 2,500,000 Malaysian Green Technology Corporation ANNUAL REPORT 2017
125 126 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
5. INVESTMENT IN SUBSIDIARIES (CONT’D)
The details of the subsidiaries are as follows:-
Principal place of Percentage of Issued Business/Country Share Capital Held Name of Subsidiaries of Incorporation by Parent Principal ActivitIes 2017 2016 % % Subsidiary of the Company GreenTech Malaysia Malaysia 100 100 Engaged in Alliances Sdn. Bhd. investment holding and business as promoters of green technology development. Subsidiaries of GreenTech Malaysia Alliances Sdn. Bhd. GreenTech Ideaslab Malaysia 100 100 Provide green growth Sdn. Bhd. training programmes, training centres, and advisory services on green technology operations. GreenTech Catalyst Malaysia 100 100 Involved in advisor Sdn. Bhd. or consultants, exhibitors, and promoters of green technology development.
greentechmalaysia.my 6. INVESTMENT IN A JOINT VENTURE
The Group 2017 2016 RM RM Unquoted shares, at cost 30,000 30,000 Share of post-acquisition losses (23,821) (22,497) 6,179 7,503
The details of the joint venture are as follows:-
Name of Joint Principle Place Effective Equity Venture of Business Interest Principal Activity 2017 2016 % % Kloth Lifestyle Sdn. Bhd. Malaysia 30 30 Sales of sustainable products made from recycled polyester.
(a) The Group’s involvement in joint arrangements are structured through separate vehicles which provide the Company rights to the net assets of the entities. Accordingly, the Group has classified this investment as joint venture.
(b) The summarised financial information of the joint venture is as follow:-
2017 2016 RM RM At 31 December Current assets 37,296 237,685 Current liabilities (16,698) (212,675)
Net assets 20,598 25,010
Revenue 28,147 257,566 Malaysian Green Technology Corporation Loss for the financial year (4,412) (74,990)
Group’s share of loss for the financial year (1,324) (22,497)
Group’s share of net assets above / Carrying amount of the Group’s interest in this joint venture 6,179 7,503 ANNUAL REPORT 2017 127 128 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
7. PROPERTY, PLANT AND EQUIPMENT
At Depreciation At 1.1.2017 Additions Charges 31.12.2017 The Group/The Company RM RM RM RM 2017
Carrying Amount
Leasehold land 3,005,373 – (33,768) 2,971,605 Building 15,580,938 – (384,752) 15,196,186 Computers 256,872 48,170 (214,190) 90,852 Energy audit equipment 15,151 – (15,124) 27 Furniture and fittings 22,168 5,082 (7,202) 20,048 Motor vehicles 411,490 – (160,574) 250,916 Office equipment 21,906 4,000 (12,416) 13,490 Renovation 163,822 – (29,238) 134,584 Solar system 521,486 – (289,956) 231,530 19,999,206 57,252 (1,147,220) 18,909,238
At Depreciation At The Group/ 1.1.2016 Additions Disposal Charges 31.12.2016 The Company RM RM RM RM RM 2016
Carrying Amount
Leasehold land 3,039,141 – – (33,768) 3,005,373 Building 15,965,691 – – (384,753) 15,580,938 Computers 418,261 151,925 – (313,314) 256,872 Energy audit equipment 37,867 – – (22,716) 15,151 Furniture and fittings 9,058 18,344 – (5,234) 22,168 Motor vehicles 607,582 – (33,067) (163,025) 411,490 Office equipment 38,321 – – (16,415) 21,906 Renovation 193,060 – – (29,238) 163,822 Solar system 851,949 – – (330,463) 521,486 21,160,930 170,269 (33,067) (1,298,926) 19,999,206 greentechmalaysia.my 7. PROPERTY, PLANT AND EQUIPMENT (CONT’D)
At Accumulated Carrying Cost Depreciation Amount The Group/The Company RM RM RM 2017
Leasehold land 3,343,056 (371,451) 2,971,605 Building 19,077,708 (3,881,522) 15,196,186 Computers 1,770,385 (1,679,533) 90,852 Energy audit equipment 157,945 (157,918) 27 Furniture and fittings 1,445,050 (1,425,002) 20,048 Motor vehicles 802,871 (551,955) 250,916 Office equipment 205,383 (191,893) 13,490 Renovation 292,382 (157,798) 134,584 Solar system 3,334,713 (3,103,183) 231,530 30,429,493 (11,520,255) 18,909,238
2016
Leasehold land 3,343,056 (337,683) 3,005,373 Building 19,077,708 (3,496,770) 15,580,938 Computers 1,722,215 (1,465,343) 256,872 Energy audit equipment 157,945 (142,794) 15,151 Furniture and fittings 1,439,968 (1,417,800) 22,168 Motor vehicles 802,871 (391,381) 411,490 Office equipment 201,383 (179,477) 21,906 Renovation 292,382 (128,560) 163,822
Solar system 3,334,713 (2,813,227) 521,486 Malaysian Green Technology Corporation 30,372,241 (10,373,035) 19,999,206 ANNUAL REPORT 2017
129 130 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
8. TRADE RECEIVABLES
The Group’s normal trade credit term is 30 days (2016 - 30 days) from the date of invoice. Other credit terms are assessed and approved on a case-by-case basis.
9. OTHER RECEIVABLES, DEPOSITS AND PREPAYMENTS
The Group/The Company 2017 2016 RM RM Other receivables 122,028 1,121,629 Deposits 555,499 2,915,953 Prepayments 79,589 79,589 757,116 4,117,171
In the previous financial year, included in the deposits of the Group and of the Company is an amount of approximately RM2,868,000 being bank guarantees required by Royal Malaysia customs for the import of 10 units of Tesla Model S.
10. AMOUNT OWING BY SUBSIDIARIES
During the financial year, the amount owing by subsidiaries represents non-trade balances, unsecured payments made on behalf. The amount owing is receivable on demand and is to be settled in cash.
11. FIXED DEPOSITS WITH LICENSED BANKS
(a) The fixed deposits with licensed banks of the Group and the Company at the end of the reporting period bore effective interest rates ranging from 2.80% to 3.75% (2016 - 2.80% to 4.00%) per annum. The fixed deposits have maturity periods ranging from 1 to 12 months (2016 - 2 to 12 months) for the Group and the Company respectively.
(b) Included in the fixed deposits with licensed banks of the Group at the end ofthe reporting period was an amount of RM2,069,250 (2016 - RM372,636) which has been pledged to a licensed bank as security for banking facilities granted to the Company.
greentechmalaysia.my 12. RETAINED PROFITS
The Company is prohibited to distribute any dividend to its members under Section 45(2)(b) of the Companies Act 2016 in Malaysia.
13. GOVERNMENT GRANTS
The Group/The Company 2017 2016 RM RM At 1 January 20,735,008 15,260,479 Addition during the financial year 49,984,088 18,777,441 Utilisation during the financial year (50,232,101) (13,302,912) 20,486,995 20,735,008
14. DEFERRED INCOME
During the financial year, the deferred income represents advances received from Tesla car buyers.
15. BUILDING FUND
The Group/The Company 2017 2016 RM RM At 1 January 25,037,500 25,037,500 Accumulated amortisation (7,466,684) (6,765,431)
At 31 December 17,570,816 18,272,069
Accumulated amortisation:- At 1 January 6,765,431 6,064,178 Malaysian Green Technology Corporation Amortisation for the financial year 701,253 701,253
At 31 December 7,466,684 6,765,431
Building fund is a grant received from the Ministry of Energy, Green Technology and Water, Malaysia to build Pusat Tenaga Malaysia Zero Energy Office (“PTM ZEO”) Building. ANNUAL REPORT 2017 131 132 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
16. TRADE PAYABLES
The normal trade credit terms granted to the Group range from 14 to 30 (2016 - 14 to 30) days.
17. OTHER PAYABLES AND ACCRUALS
The Group The Company 2017 2016 2017 2016 RM RM RM RM Other payables 876,802 611,573 876,791 611,562 Accruals 1,467,786 1,183,980 1,445,425 1,159,354 2,344,588 1,795,553 2,322,216 1,770,916
18. AMOUNT OWING TO SUBSIDIARIES
In the previous financial year, the amount owing to subsidiaries represented non-trade balances, unsecured payments made on behalf. The amount owing was settled in cash.
19. AMOUNT OWING TO A RELATED PARTY
During the financial year, the amount owing to a related party represents non-trade balances, unsecured payments made on behalf. The amount owing is repayable on demand and is to be settled in cash.
20. REVENUE
The Group The Company 2017 2016 2017 2016 RM RM RM RM Development projects 48,928,776 10,483,171 48,928,776 9,765,550 Services rendered 5,530,936 8,045,934 4,996,213 6,703,798 Tesla project 2,053,764 5,913,573 2,053,764 5,913,573 56,513,476 24,442,678 55,978,753 22,382,921
greentechmalaysia.my 21. COST OF SALES
The Group The Company 2017 2016 2017 2016 RM RM RM RM Development projects 44,807,671 10,902,237 44,807,671 10,184,616 Services rendered 1,728,396 4,496,842 1,408,192 3,788,134 Tesla project 2,053,764 5,922,757 2,053,764 5,922,757 48,589,831 21,321,836 48,269,627 19,895,507
22. PROFIT/(LOSS) BEFORE TAXATION
The Group The Company 2017 2016 2017 2016 RM RM RM RM Profit/(Loss) before taxation is arrived after charging/ (crediting):-
Auditors’ remuneration 84,000 74,000 63,000 55,000 Depreciation of property, plant and equipment 1,147,220 1,298,926 1,147,220 1,298,926 Directors’ non-fee emoluments – 36,000 – – Rental of photocopy machine 47,806 45,305 47,806 34,611 Staff costs: – defined contribution plan 483,080 495,269 452,470 403,036 – salaries and other benefit 4,426,450 4,598,380 4,167,815 3,799,499 Amortisation of building fund (701,253) (701,253) (701,253) (701,253) Gain on disposal of equipment – (8,456) – (8,456) Interest income: Malaysian Green Technology Corporation – fixed deposits with licensed banks (1,324,598) (1,284,677) (1,324,598) (1,284,677) – others (35,910) (84,428) (35,910) (84,428) Realised gain on foreign exchange – (81,638) – (81,638) ANNUAL REPORT 2017
133 134 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
23. INCOME TAX EXPENSE
The Group The Company 2017 2016 2017 2016 RM RM RM RM Income tax: – for the financial year 318,000 30,000 318,000 30,000 – under/(over)provision in the previous financial year 278,322 (250,317) 278,322 (250,317) 596,322 (220,317) 596,322 (220,317)
A reconciliation of income tax expense applicable to the profit/(loss) before taxation at the statutory tax rate to income tax expense at the effective tax rate of the Group and of the Company is as follows:-
The Group The Company 2017 2016 2017 2016 RM RM RM RM Profit/(Loss) before taxation 641,338 (482,957) 795,399 (327,817)
Tax at the statutory tax rate of 24% 153,921 (115,910) 190,896 (78,676)
Tax effects of:- Share of results in a joint venture 318 5,400 – – Non-deductible expenses 178,483 2,397,486 141,826 2,365,662 Non-taxable income (168,301) (2,422,140) (168,301) (2,422,140) Deferred tax assets not recognised during the financial year 153,579 165,164 153,579 165,154 Under/(Over)provision in the previous financial year 278,322 (250,317) 278,322 (250,317)
Income tax expense for the financial year 596,322 (220,317) 596,322 (220,317)
Domestic income tax is calculated at the Malaysian statutory tax rate of 24% (2016 - 24%) of the estimated assessable profit for the financial year. The taxation of other jurisdictions is calculated at the rates prevailing in the respective jurisdiction.
greentechmalaysia.my 23. INCOME TAX EXPENSE (CONT’D)
For years of assessment 2017 and 2018, the Malaysian statutory tax rate will be reduced by 1% to 4%, based on the prescribed incremental percentage of chargeable income from business, compared to that of the immediate preceding year of assessment. The Group has accounted for the reduction in the tax rate in the current financial year, based on the percentage of increase in chargeable income of the Company and its subsidiaries.
No deferred tax assets are recognised for the following items:-
The Group/The Company 2017 2016 RM RM Accelerated capital allowances 546,000 1,187,000 Unutilised tax losses (857,000) (1,210,000) (311,000) (23,000)
24. CASH FLOW INFORMATION
The cash and cash equivalents comprise the following:-
The Group The Company 2017 2016 2017 2016 RM RM RM RM Fixed deposits with licensed banks 45,431,215 35,872,636 45,431,215 35,872,636 Cash and bank balances 4,192,971 3,070,268 1,672,125 3,050,284 49,624,186 38,942,904 47,103,340 38,922,920 Less: Fixed deposits with maturity of more than 3 months (28,908,969) (29,472,636) (28,908,969) (29,472,636) Fixed deposits pledged to a licensed bank (2,069,250) (372,636) (2,069,250) (372,636) Malaysian Green Technology Corporation 18,645,967 9,097,632 16,125,121 9,077,648 ANNUAL REPORT 2017
135 136 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
25. RELATED PARTY DISCLOSURES
(a) Identities of Related Parties
Parties are considered to be related to the Group if the Group or the Company has the ability, directly or indirectly, to control or jointly control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are subject to common control.
In addition to the information detailed elsewhere in the financial statements, the Group has related party relationships with its directors, joint venture, key management personnel and entities within the same group of companies.
(b) Related Party Transactions and Balances
Other than those disclosed elsewhere in the financial statements, the Group and the Company also carried out the following transactions with the related parties during the financial year:-
The Group The Company 2017 2016 2017 2016 RM RM RM RM Professional fees charged by a subsidiary – – – 386,154 Key management personnel compensation – short-term employee benefit – 36,000 – –
26. FINANCIAL INSTRUMENTS
The Group’s activities are exposed to a variety of market risk (including foreign currency risk, interest rate risk and equity price risk), credit risk and liquidity risk. The Group’s overall financial risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial performance.
greentechmalaysia.my 26. FINANCIAL INSTRUMENTS (CONT’D)
26.1 FINANCIAL RISK MANAGEMENT POLICIES
The Group’s policies in respect of the major areas of treasury activity are as follows:-
(a) Market Risk
(i) Foreign Currency Risk
The Group is exposed to foreign currency risk on transactions that are denominated in currencies other than the respective functional currencies of entities within the Group. The currency giving rise to this risk is primarily Hong Kong Dollar (“HKD”). Foreign currency risk is monitored closely on an ongoing basis to ensure that the net exposure is at an acceptable level.
Foreign Currency Risk Sensitivity Analysis
Any reasonably possible change in the foreign currency exchange rates at the end of the reporting period against the respective functional currencies of the entities within the Group does not have material impact on the profit/ loss after taxation and other comprehensive income of the Group and of the Company and hence, no sensitivity analysis is presented.
(ii) Interest Rate Risk
The Group does not have any interest-bearing borrowings and hence, is not exposed to interest rate risk.
(iii) Equity Price Risk
The Group does not have any quoted investments and hence, is not exposed to equity price risk. Malaysian Green Technology Corporation ANNUAL REPORT 2017
137 138 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
26. FINANCIAL INSTRUMENTS (CONT’D)
26.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(b) Credit Risk
The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from trade and other receivables. The Group manages its exposure to credit risk by the application of credit approvals, credit limits and monitoring procedures on an ongoing basis. For other financial assets (including cash and bank balance), the Group minimises credit risk by dealing exclusively with high credit rating counterparties.
The Group uses ageing analysis to monitor the credit quality of the trade receivables. Any receivables having significant balances past due or more than 30 days, which are deemed to have higher credit risk, are monitored individually.
The Group establishes an allowance for impairment that represents its estimate of incurred losses in respect of the trade and other receivables as appropriate. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. Impairment is estimated by management based on prior experience and the current economic environment.
(i) Credit risk concentration profile
The Company’s major concentration of credit risk relates to the amount owing by a customer which constituted approximately 29% of its trade receivables as at the end of the reporting period.
(ii) Exposure to credit risk
At the end of the reporting period, the maximum exposure to credit risk is represented by the carrying amount of each class of financial assets recognised in the statement of financial position of the Group and of the Company after deducting any allowance for impairment losses (where applicable).
greentechmalaysia.my 26. FINANCIAL INSTRUMENTS (CONT’D)
26.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(b) Credit Risk (Cont’d)
(iii) Ageing analysis
The ageing analysis of the Group’s trade receivables is as follows:-
Gross Individual Collective Carrying Amount Impairment Impairment Amount The Group RM RM RM RM 2017
Not past due 846,327 – – 846,327
Past due: – less than 3 months 836,799 – – 836,799 – 3 to 6 months 1,088,503 – – 1,088,503 – over 6 months 437,755 – – 437,755 3,209,384 – – 3,209,384
2016
Not past due 3,884,001 – – 3,884,001
Past due: – less than 3 months 258,386 – – 258,386 – 3 to 6 months 1,582,364 – – 1,582,364
– over 6 months 308,663 – – 308,663 Malaysian Green Technology Corporation 6,033,414 – – 6,033,414 ANNUAL REPORT 2017
139 140 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
26. FINANCIAL INSTRUMENTS (CONT’D)
26.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(b) Credit Risk (Cont’d)
(iii) Ageing analysis (Cont’d)
Gross Individual Collective Carrying Amount Impairment Impairment Amount The Company RM RM RM RM 2017
Not past due 846,327 – – 846,327
Past due: – less than 3 months 836,799 – – 836,799 – 3 to 6 months 974,714 – – 974,714 – over 6 months 437,755 – – 437,755 3,095,595 – – 3,095,595
2016
Not past due 3,884,001 – – 3,884,001
Past due: – less than 3 months 258,386 – – 258,386 – 3 to 6 months 1,582,364 – – 1,582,364 – over 6 months 308,663 – – 308,663 6,033,414 – – 6,033,414
The Group believes that no impairment allowance is necessary in respect of these trade receivables that are past due but not impaired because they are companies with good collection track record and no recent history of default.
A significant portion of trade receivables that are neither past due nor impaired are regular customers that have been transacting with the Group. The Group uses ageing analysis to monitor the credit quality of the trade receivables. Any receivables having significant balances past due or more than 30 days, which are deemed to have higher credit risk, are monitored individually.
greentechmalaysia.my 26. FINANCIAL INSTRUMENTS (CONT’D)
26.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(c) Liquidity Risk
Liquidity risk arises mainly from general funding and business activities. The Group practises prudent risk management by maintaining sufficient cash balances which majority funds are granted by government.
Maturity Analysis
The following table sets out the maturity profile of the financial liabilities at the end of the reporting period based on contractual undiscounted cash flows:-
Contractual Carrying Undiscounted Within Amount Cash Flows 1 Year The Group RM RM RM 2017 Non-derivative Financial Liabilities Trade payables 10,689,990 10,689,990 10,689,990 Other payables and accruals 2,344,588 2,344,588 2,344,588 Amount owing to a related party 14,840 14,840 14,840 13,049,418 13,049,418 13,049,418
2016 Non-derivative Financial Liabilities Trade payables 5,351,769 5,351,769 5,351,769 Other payables and accruals 1,795,553 1,795,553 1,795,553 Amount owing to a related party 14,840 14,840 14,840 7,162,162 7,162,162 7,162,162 Malaysian Green Technology Corporation ANNUAL REPORT 2017
141 142 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
26. FINANCIAL INSTRUMENTS (CONT’D)
26.1 FINANCIAL RISK MANAGEMENT POLICIES (CONT’D)
(c) Liquidity Risk (Cont’d)
Maturity Analysis (Cont’d)
Contractual Carrying Undiscounted Within Amount Cash Flows 1 Year The Company RM RM RM 2017 Non-derivative Financial Liabilities Trade payables 10,635,501 10,635,501 10,635,501 Other payables and accruals 2,322,216 2,322,216 2,322,216 Amount owing to a related party 14,840 14,840 14,840 12,972,557 12,972,557 12,972,557
2016 Non-derivative Financial Liabilities Trade payables 5,351,769 5,351,769 5,351,769 Other payables and accruals 1,770,916 1,770,916 1,770,916 Amount owing to subsidiaries 2,338,010 2,338,010 2,338,010 Amount owing to a related party 14,840 14,840 14,840 9,475,535 9,475,535 9,475,535
26.2 CAPITAL RISK MANAGEMENT
The Group defines capital as the total equity and debt of the Group. The objective of the Group’s capital management is to maintain an optimal capital structure and ensuring availability of funds in order to support its businesses and related shareholders value. To achieve this objective, the Group may make adjustments to the capital structure in view of changes in economic conditions, such as adjusting the returning of capital to shareholders or issuing new shares.
The Group monitors and maintains a prudent level of total debt to total equity ratio to optimise shareholders value and to ensure compliance with debt covenants and regulatory, if any.
As the Group does not have any external borrowings, the debt-to-equity ratio is not presented as it does not provide a meaningful indicator of the risk of borrowings. greentechmalaysia.my 26. FINANCIAL INSTRUMENTS (CONT’D)
26.3 CLASSIFICATION OF FINANCIAL INSTRUMENTS
The Group The Company 2017 2016 2017 2016 RM RM RM RM Financial Asset Loans and Receivables Financial Assets Trade receivables 3,209,384 6,033,414 3,095,595 6,033,414 Other receivables and deposits 677,527 4,037,582 677,527 4,037,582 Amount owing by subsidiaries – – 377,154 – Fixed deposits with licensed banks 45,431,215 35,872,636 45,431,215 35,872,636 Cash and bank balances 4,192,971 3,070,268 1,672,125 3,050,284 53,511,097 49,013,900 51,253,616 48,993,916
Financial liability Other Financial Liabilities Trade payables 10,689,990 5,351,769 10,635,501 5,351,769 Other payables and accruals 2,344,588 1,795,553 2,322,216 1,770,916 Amount owing to subsidiaries – – – 2,338,010 Amount owing to a related party 14,840 14,840 14,840 14,840 13,049,418 7,162,162 12,972,557 9,475,535
26.4 FAIR VALUE INFORMATION
At the end of the reporting period, there were no financial instruments carried at fair
values in the statements of financial position. Malaysian Green Technology Corporation
The financial value of the financial assets and financial liabilities of the Group and of the Company that maturing within the next 12 months approximated their carrying amounts due to the relatively short-term maturity of the financial instruments or repayable on demand terms. ANNUAL REPORT 2017
143 144 Notes to the Financial Statements for the Financial Year 31 December 2017 (Cont’d)
27. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
The Companies Act 2016 came into operation on 31 January 2017 (except for Section 241 and Division 8 of Part III of the said Act) and replaced Companies Act 1965.
Amongst the key changes introduced under the Companies Act 2016 that have affected the financial statements of the Group and of the Company upon its initial implementation are:-
(i) Removal of the authorised share capital; and (ii) Ordinary shares ceased to have par value.
The Companies Act 2016 was applied prospectively and the impacts on implementation are disclosed in the respective notes to financial statements.
greentechmalaysia.my Notes
Malaysian Green Technology Corporation (462237-T) No.2, Jalan 9/10, Persiaran Usahawan, Seksyen 9, 43650 Bandar Baru Bangi, Selangor Darul Ehsan
Tel : 03 8921 0800 Fax : 03 8921 0801 / 0802 Email : [email protected] www.greentechmalaysia.my