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Kuala Lumpur Stock Exchange Annual Report 2001
Strengthening Corporate Governance Corporate governance is essential for investor confidence and enhancement of shareholder value. It is only with high standards of corporate governance that a secure and vibrant market can be cultivated, one which is premised on the principles of fairness, integrity, transparency and accountability.
What s Insid e
2 40 122 Corporate Information Management Team Monthly High, Low and Closing Indices* 5 45 Highlights KLSE Group 124 Market Indicators 7 73 Executive Chairman s Calendar of Events 131 Statement Membership Report 79 25 Financial Statements 137 Market Report KLSE Members 118 31 KLSE Sub-Committees 148 Issues in Focus Notice of 120 Annual General Meeting 38 New Listings Committee Members Form of Proxy/ Certificate of Representation pg1-78.qxd 1/2/02 11:44 AM Page 2
Corporate Information
KUALA LUMPUR STO C K MALAYSIA DERIVATIVES Bankers EXCHANGE (KLSE) EXCHANGE BERHAD (MDEX) Bumiputra-Commerce Bank Berhad (30632-P) (261937-H) Malayan Banking Berhad Committee Members Board of Directors RHB Bank Berhad Dato Mohammed Azlan Hashim Abdul Jabbar Abdul Majid (Executive Chairman) (Executive Chairman) Hong Leong Bank Berhad (appointed w.e.f 3.1.2001) Datuk Mohaiyani Shamsudin Registered Office (Deputy Chairman) Iskander Ismail Malaysia Derivatives Exchange Tan Kim Leong W ong Fook Wah Berhad (appointed w.e.f 3.1.2001) 10th Floor, Exchange Square Abdul Kadir Hj Md Kassim Bukit Kewangan Dato Mohammed Azlan Hashim Abdul Jabbar Abdul Majid 50200 Kuala Lumpur (appointed w.e.f 18.1.2001) Dato Hwang Sing Lue Tel: 03-2070 8199 Chan Guan Seng Yusli Mohamed Yusof f (appointed w.e.f 2.2.2001) Abdul Wahab Nan Abidin LABUAN INTERNATIONAL Md Nor Ahmad FINANCIAL EXCHANGE INC Peter Leong Tuck Leng (appointed w.e.f. 2.2.2001) (LFX) (LL02032) Yusli Mohamed Yusof f Tunku Dato Seri Nadzaruddin Tuanku Dato Ranita Mohd Hussein Ja afar Board of Directors (resigned w.e.f 31.12.2000) (appointed w.e.f 15.8.2001) Dato Mohammed Azlan Hashim (Chairman) Abang Zainal Abidin Abang Ahmad Alvin Kwan Wing Ye w (resigned w.e.f 31.12.2000) (appointed w.e.f 15.8.2001) Abdul Kadir Hj Md Kassim Johari Hassan Khairussaleh Ramli Dato Ahmad Johan Raslan (resigned w.e.f 31.12.2000) (Alternate director to Dato (appointed w.e.f 1.2.2001) Mohammed Azlan Hashim) President (appointed w.e.f 19.1.2001) Peter Leong Tuck Leng (appointed w.e.f 1.2.2001) Dato Mohd Salleh Abdul Majid Omar Malek Ali Merican (resigned w.e.f 30.6.2001) Company Secretaries Deputy President I Ahmad Aznan Mohd Nawawi Md Nor Ahmad K Sree Kumar (resigned w.e.f 14.3.2001) Nor Hakimah Abdul Latif Deputy President II Dato Mohd Salleh Abdul Majid Ungku A Razak Ungku A Rahman (resigned w.e.f 2.2.2001) Exchange Committee Members Tan Sri Wan Azmi Wan Hamzah Dato Ranita Mohd Hussein Company Secretaries (Chairman) (resigned w.e.f 2.2.2001) Ahmad Aznan Mohd Nawawi Abdul Kadir Hj Md Kassim Ramli Ibrahim Azman Shah Md Yaman (resigned w.e.f 14.12.2000) Mohd Nasir Ali
Auditors Chief Operating Officer Dr Mohamed Arif Nun Arthur Andersen & Co Dr Zaha Rina Zahari Larry Gan
Tax Consultants General Manager Md Nor Ahmad Arthur Andersen & Co Raghbir Singh Bhart Ridzuan Salleh (Tax and Business Advisory) Company Secretaries Chin Chee Kee Bankers Manoj Devadasan Izzuddin Tajudin Bumiputra-Commerce Bank Berhad Ahmad Aznan Mohd Nawawi Abdul Jabbar Abdul Majid Hongkong Bank Malaysia Berhad Dr Ghazali Atan Malayan Banking Berhad Auditors Arthur Andersen & Co Prof Madya Dr Mohd Daud Bakar Southern Bank Berhad Tax Consultants General Manager Registered Office Arthur Andersen & Co S. Loganathan Kuala Lumpur Stock Exchange (Tax and Business Advisory) 14th Floor, Exchange Square Secretary Bukit Kewangan 50200 Kuala Lumpur Ahmad Aznan Mohd Nawawi Tel: 03-2026 7099 Fax: 03-2026 3684 Auditors Arthur Andersen & Co 2 pg1-78.qxd 1/2/02 11:44 AM Page 3
Kuala Lumpur Stock Exchange Annual Report 2001
General Manager Bankers Ungku A Razak Ungku A Rahman Bumiputra-Commerce Bank Berhad
Company Secretaries Malayan Banking Berhad Azman Shah Md Yaman Registered Office Ahmad Aznan Mohd Nawawi KLSE Property Management Sdn Bhd 14th Floor, Exchange Square Auditors Bukit Kewangan Arthur Andersen & Co 50200 Kuala Lumpur Tel: 03-2026 7099 Tax Consultants Fax: 03-2026 3684 Arthur Andersen & Co (Tax and Business Advisory) MALAYSIAN CENTRAL Bankers DEPOSITO RY SDN BHD (MCD) Malayan Banking Berhad (165570-W)
Alliance Bank Berhad Board of Directors Southern Bank Berhad Dato Mohammed Azlan Hashim (Executive Chairman) Standard Chartered Bank (M) Berhad Tan Kim Leong Registered Office Chan Guan Seng Securities Clearing Automated Datuk Amirsham A Aziz SECURITIES CLEARING Network Services Sdn Bhd 8th Floor, Exchange Square AUTOM ATED NETWORK Dato Seri Syed Zainol Anwar Bukit Kewangan S E RVICES SDN BHD (SCANS) Jamalullail (109716-D) 50200 Kuala Lumpur Tel: 03-2026 8099 General Manager Board of Directors Fax: 03-2026 3715 Ungku A Razak Ungku A Rahman Dato Mohammed Azlan Hashim (Executive Chairman) Company Secretaries Datuk Mohaiyani Shamsudin KLSE PROPERTY Ahmad Aznan Mohd Nawawi MANAGEMENT SDN BHD (KPM) Tan Kim Leong (147792-H) Yong Hazadurah Hashim (formerly known as KLSE Realty Sdn Bhd) Abdul Kadir Hj Md Kassim Auditors Abdul Jabbar Abdul Majid Board of Directors Arthur Andersen & Co (appointed w.e.f 18.1.2001) Dato Mohammed Azlan Hashim (Chairman) Tax Consultants Dato Hj Megat Najmuddin Khas Dato Seri (Dr) Hj Megat Khas Tan Kim Leong Arthur Andersen & Co (Tax and Business Advisory) Chan Guan Seng Md Nor Ahmad Bankers Abdul Wahab Nan Abidin Abang Zainal Abidin Abang Ahmad (resigned 31.12.2000) Bumiputra-Commerce Bank Berhad Peter Leong Tuck Leng Malayan Banking Berhad (appointed w.e.f 1.1.2001) General Manager Yusli Mohamed Yusof f Abdul Razak Mohd Amin Alliance Bank Berhad (appointed w.e.f 1.1.2001) Company Secretaries Registered Office Dato Mohd Salleh Abdul Majid Ahmad Aznan Mohd Nawawi Malaysian Central Depository Sdn Md Nor Ahmad Bhd Abdul Raihan Mohd Yusof (Alternate to Dato Mohd Salleh 6th Floor, Exchange Square Abdul Majid) Bukit Kewangan Auditors 50200 Kuala Lumpur Dato Ranita Mohd Hussein Arthur Andersen & Co Tel: 03-2026 2099 (resigned w.e.f 1.1.2001) Fax: 03-2026 3719 Tax Consultants Abang Zainal Abidin Abang Ahmad (resigned w.e.f 1.1.2001) Arthur Andersen & Co (Tax and Business Advisory) Johari Hassan (resigned w.e.f 1.1.2001)
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Corporate Information
Shahnaz Radhiah Zulkifli (Alternate director to Tan Sri Zulkifli Registered Office KLSE-BERNAMA REAL-TIME Mahmood) INFORMATION SERVICES Yayasan BSKL SDN BHD (KULBER) Tuan Haji Mustapha Hashim 14th Floor, Exchange Square (152961-H) (Alternate director to Mohamad Shuib Bukit Kewangan Abdul Ghani) 50200 Kuala Lumpur Board of Directors (resigned w.e.f 31.12.2000) Tel: 03-2026 7099 Dato Mohammed Azlan Hashim Fax: 03-2026 3684 (Chairman) General Manager Datuk Abdul Kadir Jasin Abdul Nasir Ahmad Daud (Deputy Chairman) RESEARCH INSTITUTE OF (appointed w.e.f 24.10.2000) Company Secretaries INVESTMENT ANALYSTS Datuk Teh Ghee Kok Ahmad Aznan Mohd Nawawi MALAYSIA (RIIAM) (139281-V) Dato Mohd Salleh Abdul Majid Abdul Raihan Mohd Yusof Board of Governors Md Nor Ahmad Auditors Dato Mohammed Azlan Hashim Leong Koon Choy Arthur Andersen & Co (Chairman) (appointed w.e.f 24.10.2000) Datuk Mohaiyani Shamsudin Tax Consultants (Deputy Chairman) Jaafar Hussin Arthur Andersen & Co (appointed w.e.f 1.1.2001) (Tax and Business Advisory) Tan Kim Leong Syed Jamil Syed Jaafar Chan Guan Seng (resigned 31.12.2000) Bankers Malayan Banking Berhad Tan Sri Dato Dr Syed Jalaluddin Company Secretaries Syed Salim Registered Office Ahmad Aznan Mohd Nawawi Dato Mohd Salleh Abdul Majid Malaysian Share Registration Services Abdul Raihan Mohd Yusof Sdn Bhd Tan Sri Dato Dr Abdullah Sanusi Hj 8th Floor, Exchange Square Ahmad Auditors Bukit Kewangan Dato Ranita Mohd Hussein Arthur Andersen & Co 50200 Kuala Lumpur (resigned w.e.f 1.2.2001) Tel: 03-2026 7099 Tax Consultants Fax: 03-2026 3684 Director Arthur Andersen & Co (Tax and Business Advisory) YAYASAN BSKL (YBSKL) Abdullah Naib (464552-M) Company Secretaries Bankers Board of Governors Ahmad Aznan Mohd Nawawi Malayan Banking Berhad Dato Mohammed Azlan Hashim (Chairman) Abdul Raihan Mohd Yusof Registered Office KLSE-Bernama Real-Time Information Abdul Kadir Hj Md Kassim Auditors Services Sdn Bhd Chan Guan Seng Arthur Andersen & Co 8th Floor, Exchange Square Bukit Kewangan Datuk Hj Abdul Karim Haron Tax Consultants 50200 Kuala Lumpur Dato N Sadasivan A/L N N Pillay Arthur Andersen & Co Tel: 03-2026 7099 (Tax and Business Advisory) Fax: 03-2026 3684 Dato Che Mohd Annuar Che Mohd Senawi Bankers Tan Sri Dato Dr Abdullah Sanusi Hj Bumiputra-Commerce Bank Berhad MALAYSIAN SHARE Ahmad REGISTRATION SERVICES (appointed w.e.f 30.7.2001) Registered Office Research Institute of Investment SDN BHD (MSRS) Dato Mohd Salleh Abdul Majid Analysts Malaysia (378993-D) (appointed w.e.f 30.7.2001) 6th Floor, Exchange Square Board of Directors Bukit Kewangan Company Secretaries Dato Mohammed Azlan Hashim 50200 Kuala Lumpur (Chairman) Ahmad Aznan Mohd Nawawi Tel: 03-2026 7099 Fax: 03-2026 3701 Dato Hj Megat Najmuddin Khas Dato Abdul Raihan Mohd Yusof Seri (Dr) Hj Megat Khas Auditors Ungku A Razak Ungku A Rahman Arthur Andersen & Co Tan Sri Zulkifli Mahmood Bankers Mohamad Shuib Abdul Ghani Malayan Banking Berhad
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highlights
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Kuala Lumpur Stock Exchange Annual Report 2001
Dato Mohammed Azlan Hashim Executive Chairman pg1-78.qxd 1/2/02 11:44 AM Page 8
Executive Chairman s Statement
There was a statement planned in reviewing the financial year for the Kuala Lumpur Stock Exchange Group.
This is another.
Just as we close the year, events unfolded leading to conditions of uncertainty influencing an outcome different from what was generally expected in the economies and capital markets of many countries. More importantly, it is in the uncertainty of unfolding events that the impact of existing challenges are accelerated, even magnified reminding us that the unexpected does happen. Reminding us too, of the degree of preparedness and the degree of readiness of both industry and participants to face the full impact of coming challenges.
It is against such an environment that we view, perhaps with more discerning eyes than before, the many ef forts contributed during the year to continue developing the national economy, capital market and securities industry. It is also in times like this, that it becomes clear that the indicators of performance and achievement for the KLSE Group are not those of the market and the market alone but of the many, many efforts contributing to sustainable progress and growth for market and industry.
Perhaps, central to the ef fort, is this.
It is the written word, in whichever faith we belong to, that seeks to guide the conduct of man. It is in humbly learning from this example, that forms the major ef fort for the year .
At both exchange and industry level, it was a year of putting rules, requirements and plans to words and to work for participants, regulators and the industry alike. For KLSE, it was the new Listing Requirements; for the industry the Capital Market Masterplan.
Launched in January 2001, the new Listing Requirements achieve the objective of enhancing corporate governance and transparency, enhancing ef ficiency in capital market activities, strengthening investor protection and promoting investor confidence.
The Capital Market Masterplan (CMP) launched in February 2001, contains 6 objectives, 24 strategic initiatives and 152 recommendations, which are to be implemented over the next 10 years.
Out of the 152 recommendations, 105 recommendations are directly or indirectly related to the KLSE Group. Thus, at no other time has there been clearer signposts at both the market participants level or the industry level in charting the way forward. To facilitate the smooth implementation of these recommendations and monitor its progress, KLSE set up the CMP Implementation Committee (CIC). It is thus the time to get to work and begin the journey forward.
What we leave behind during the period, is a downtrend in equity markets, driven primarily by uncertainty in the direction of the global economy. The contraction in the global technology industry, on which the region s export strength is dependent upon, contributed to the weakening of the regional economies and equity markets. Some of these markets were also influenced by social and political developments at home.
Under the influence of these events, comparing the last trading day of the fiscal year with that of the previous period, the KLSE Composite Index (CI) as at 29 June 2001 declined 240.38 points or 28.84% to close at 592.99 compared to 833.37 on 30 June 2000. Similarly, total market capitalisation at the end of the fiscal year was at RM403 billion, a decrease of RM169 billion or 29.55% from RM572 billion a year ago. Total volume traded amounted to 34 billion units valued at RM89 billion in contrast to 106 billion units valued at RM305 billion during the previous corresponding period.
However, despite uncertainty at the securities market level, capital generation ef forts continued positively for new issues. During the period under review, 36 new companies were listed compared to 28 in the previous financial year, bringing the total number of companies listed to 809 at fiscal year end. Of the 36 new companies, 14 were listed on the Main Board and 22 on the Second Board, with a combined nominal capital of RM5.1 billion. A total of RM1.6 billion was raised from Initial Public Of ferings (IPOs) compared with RM0.9 billion in the previous period.
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Kuala Lumpur Stock Exchange Annual Report 2001
I REGULATO RY
Business without governance is an injustice to all.
It inflicts harm not only on to itself, but on to others in the investment community impeding growth, destroying reputation, diminishing investment value and with it, investor confidence.
Now more than ever, the continued growth and progress of the Malaysian securities industry lies in the collective will of its participants to be more responsible, to be more accountable in essence to be compliant.
New Listing Requirements In ensuring that investors will continue to have confidence in investing at the KLSE and in the Malaysian economy, a key ef fort is to continuously improve the level of corporate governance.
The new Listing Requirements is set to achieve the continuous objective of further promoting the ef ficiency and credibility of the market to benefit listed companies, directors, intermediaries, major shareholders and minority investors alike.
Launched in January 2001, the new Listing Requirements is a fine example of co-operation and combined ef fort by both industry participants and regulators, involving an extensive consultation process meticulously conducted, taking into account the views and feedback of industry participants.
The new Listing Requirements, amongst others, strengthened provisions in areas relating to disclosure, corporate governance, continuing listing obligations, financial reporting and enforcement. It codified unwritten rules and procedures relating to listed companies, simplified procedural requirements and processes, clarified requirements and removed ambiguities and adopted international best practices and standards in listing rules, where applicable.
The new Listing Requirements is now more business friendly and user friendly. Provisions have been drafted with the aim of promoting business ef ficacy whilst safeguarding the interests of minority shareholders. Provisions have also been streamlined and re-organised as part of the measures to facilitate easy reference and understanding of the Listing Requirements.
Under the new Listing Requirements, listed companies, their advisers and directors are now subject to a higher standard of responsibility and accountability. They are required to be more transparent with their activities and are expected to exercise higher standards of corporate governance.
In recognising that both industry regulators and participants manage and operate in a dynamic environment, the new Listing Requirements is designed to be accommodative and flexible. As such the new Listing
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Executive Chairman s Statement
Requirements will be continually reviewed and reassessed for relevance and practicality. Refinements to the new Listing Requirements will be undertaken from time to time.
As stakeholders in the growth and development of the securities market and industry, all industry participants are encouraged to continue to provide feedback and suggestions for improvement to the Listing Requirements.
Towards this end, it is important for industry participants to continue to cooperate and work closely with regulators to make the securities industry in Malaysia the preferred investment destination of investors. Compliance not only with the letter of the requirements, but with the spirit of the requirements.
In meeting this objective and to facilitate compliance with the letter and spirit of the new Listing Practice Notes Requirements, Practice Notes were issued where required, detailing administrative and operational procedures for compliance.
In conjunction with the new Listing Requirements, the Exchange has issued 12 Practice Notes. These Practice Notes have been issued with the objective of, amongst others, providing interpretation of several provisions of the Listing Requirements and specifying administrative procedures. These Practice Notes are aimed at facilitating greater compliance with the Listing Requirements.
Of special significance are Practice Notes No. 4/2001 and 10/2001 issued pursuant to paragraphs 8.14 and 8.16 of the new Listing Requirements respectively. These are 2 of the several provisions introduced to enhance the quality of companies listed on the KLSE.
Practice Note No. 4/2001 on Criteria and Obligations pursuant to paragraph 8.14 of the Listing Requirements (PN4) relates to the requirement that listed companies must maintain a financial condition that warrants continued trading and/or listing on the Of ficial List of the Exchange. PN4 sets out amongst others, the criteria in relation to the expected minimum financial condition of a listed company.
Similar provisions are contained in Practice Note No. 10/2001 on Level of Operations (PN10).
PN10 relates to the requirement that listed companies must maintain a certain minimum level of operations to warrant continued trading and/or listing on the Of ficial List of the Exchange.
PN10 clarifies the application of paragraph 8.16 of the Listing Requirements and sets out the circumstances which may indicate that a listed company s level of operations is inadequate to warrant continued trading and/or listing on the Of ficial List, including the obligations of such listed company.
Hence with PN4 and PN10, investors can expect to obtain greater disclosure of information regarding the status of restructuring of companies which have an inadequate level of financial condition or level of operations. The rights of shareholders of listed companies under PN4 and PN10, are better protected by the enhanced disclosure requirements.
A significant objective of PN4 and PN10 is undoubtedly the hastening of the pace of restructuring of companies with inadequate level of financial condition or operations. To a large extent this has been met by a significant number of these companies now at varying stages of their restructuring plans.
Through the on-going efforts of the KLSE Group in holding consultations and dialogues with industry
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Kuala Lumpur Stock Exchange Annual Report 2001
participants, industry feedback and suggestions have been incorporated in the Practice Notes issued. Practice Notes will continue to be issued from time to time to further reflect industry input and to achieve the Issuanceintended ofobjectives the guidance of the signifies new Listing the Requirements.importance of internal control for enhancing corporate governance in a company. Implementation of the guidance augurs well for the preservation of company assets and will result in better protection for investors.
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Executive Chairman s Statement
Statement on Internal Control: Guidance for Directors of Public Listed Companies
Members of professional organisations undergo continuing education and formal training, to update and improve their knowledge in order to discharge their duties more responsibly, ef fectively , efficiently.
It is with this objective that directors of listed companies have given full support in participating in the training programmes prescribed in the new Listing Requirements. The Mandatory Training To Programmeassist listed will companies subsequently in making be supplementeddisclosure of with their the state continuing of internal education control programmes. pursuant to paragraph 15.27(b) of the Listing Requirements, KLSE established an independent Taskforce on Internal Control in May 2000 to prepare and issue a guidance. The guidance entitled Statement On Internal Control: Guidance for Directors of Public Listed Companies was issued by the Taskforce in February 2001.
The guidance deals with the following areas in relation to internal control: the system of internal control and the responsibilities of various parties in the maintenance of a sound system of internal control; the process of review of the adequacy and integrity of a system of internal control; and the minimum disclosures to be made by the board of directors on the state of internal control.
Roadshows and Conference on Listing Requirements Whilst KLSE has put in place a framework intended to enhance the credibility and attractiveness of the Malaysian capital market, the KLSE recognises that it is important for the market to support the new Listing Requirements. Industry response to date has indicated that there has been a high degree of support for the new Listing Requirements.
On The29 MarchKLSE LINK2001, makes the a Exchangevaluable heldcontribution a public in conferencethe implementation on the ofnew measures Listing toRequirements, achieve greater which receiveddisclosure overwhelming and market response transparency. from industry. W ith the use of KLSE LINK, listed companies are better able to ensure accuracy, completeness and timeliness of their announcements. Investors in turn, should The makepublic full conference use of such was information aimed at inpromoting their investment greater understandingdecisions. of the new Listing Requirements, increasing awareness among industry participants of their rights, duties and obligations and providing an opportunity for comments and queries on relevant issues pertaining to the new Listing Requirements.
The main areas covered in the conference included corporate governance, investor protection and transparency with speakers from various sectors of the industry presenting papers from the perspective of regulators, advisers, listed companies, investors and the legal fraternity.
To facilitate greater understanding of and compliance with the new Listing Requirements, the Exchange also conducted 11 roadshows throughout Peninsular and East Malaysia. These roadshows also provided a forum for the exchange of constructive views and concerns.
The Theresponse new Listing to the Requirements roadshows havewas beenencouraging developed andto deterprovided wrongdoings, invaluable without feedback impeding to thethe beneficial.Exchange. It also indicated the support and enthusiasm of industry participants to the introduction of the new Listing RequirementsThus, whilst and ittheir has desire been developedto comply. to be pro-business and pro-growth, there are now enhanced powers to enable more effective enforcement of the new Listing Requirements. Apart from the KLSE roadshows, the Exchange also facilitated and sponsored other roadshows such as the Theroadshow penalties by the thatInstitute may ofbe Internalimposed Auditorsrange fromMalaysia caution (IIAM), and which impress served to as privatethe secretariat and public for the Taskforcereprimands, on Internal fines Control.and where The necessary, objective suspensionof these roadshowsand ultimately was to de-listing. educate the Due industry process onis the Statementaccorded on inInternal respect Control: of all Guidancealleged breachesfor Directors of the of ListingPublic Requirements.Listed Companies Penalties and to willprovide only a beforum to clarifyimposed anyafter issues thorough relating consideration to the Guidance. of all facts and circumstances relating to a case.
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Kuala Lumpur Stock Exchange Annual Report 2001
Status of Investigation Cases on Public Listed Companies as at 30 June 2001 Cases Cases Brought Cases Outstanding Forward Initiated as at from during end of Financial Financial Total Cases Financial Type of Cases Year 2000 Year 2001 Cases Completed Year 2001 Failure to comply with the Policy on Response to 3 3 (1)2 Unusual Market Activity/Failure to promptly provide information or documents to the Exchange Sections 99, 338 of MBLR Clause 1.18 of SBLR Failure to comply with Corporate Disclosure Policy and 53 175 228 (103) 125 Immediate Announcements Sections 22-41, 335-341 of MBLR Clauses 1.18, 3.4, 3.11-3.16 of SBLR Failure to comply with Part 4 of the MBLR/Part 5 38 98 136 (54) 82 of the SBLR on Acquisitions and Realisations Failure to comply with Part 2 of the MBLR/Part 3 3 3 (1)2 of the SBLR (excluding Immediate Announcements and Accounting Standards) Failure to release Quarterly Reports on time 7 19 26 (17) 9 Section 56A of MBLR/Clause 3.20A of SBLR Failure to furnish Annual Reports on time 4 6 10 (8)2 Section 60(a) of MBLR/Clause 3.22(a) of SBLR Failure to furnish Annual Audited Accounts on time 4 62 66 (45) 21 Section 60(b) of MBLR/Clause 3.22(b) of SBLR Failure to release Preliminary Financial Statements 1 1 (1) Section 57 of MBLR/Clause 3.21 of SBLR Failure to release Half Yearly Results 1 1 1 Section 56 of MBLR/Clause 3.20 of SBLR Failure to comply with the share buyback guidelines 4 4 4 Failure to comply with Accounting Standards 1 2 3 (2)1 Section 65 of MBLR Clause 3.27 of SBLR Total 108 373 481 (232) 249
Actions Taken for Breaches of Listing Requirements as at 30 June 2001 No. of Cases Public Caution Private Public Reprimand Type of Cases & Impress Reprimand Reprimand & Fine Total Failure to comply with the Corporate Disclosure Policy 10 20 15 5 50 and Immediate Announcements Sections 22-41, 335-341 of MBLR Clauses 1.18, 3.2, 3.4, 3.11-3.16 of SBLR Failure to comply with Part 4 of the MBLR/Part 5 9 13 10 11 43 of the SBLR on Acquisitions and Realisations Failure to comply with Part 2 of the MBLR/Part 3 1 1 of the SBLR (excluding Immediate Announcements) Failure to release Quarterly Reports on time 4 4 Section 56A of MBLR/Clause 3.20A of SBLR Failure to furnish Annual Reports on time 1 7 8 Section 60(a) of MBLR/Clause 3.22(a) of SBLR Failure to furnish Annual Audited Accounts on time 3 9 12 Section 60(b) of MBLR/Clause 3.22(b) of SBLR
Failure to release Preliminary Financial Statements on time 1 1 Section 57 of MBLR/Clause 3.21 of SBLR Total 19372637119
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Executive Chairman s Statement
I INFRASTRUCTURE
KLSE has a vision to develop into a world class stock exchange.
Notwithstanding its relatively young age, KLSE is a developed exchange in terms of infrastructure and regulations.
The exchange intends to keep abreast of international developments to ensure its continued relevance and wide acceptance, by investors and industry participants domestically and internationally.
Infrastructure Development Just as the Exchange is enhancing corporate governance to ensure continued investor confidence, there has been continuous enhancement in its infrastructure and regulations to meet investor requirements and expectations, in line with internationally accepted practices.
KLSE s infrastructure and regulations today are comparable to many of the developed exchanges. These attributes include fully immobilised securities, T+3 settlement system, delivery versus payment, quarterly reporting and general compliance with international accounting standards.
KLSE has worked closely with industry participants to ensure there is continued progress and improvement in the infrastructure for the securities industry. This infrastructure development, is to enable a reliable, ef ficient and cost ef fective market to meet investors needs and demands. The results are evident in the continuing growth of investor interest and investor confidence in the Malaysian securities market.
Growth of Investor Activity
Reporting Period Total as at 1 July 2000 to 30 June 2001 30 September 2001
1. No. of new accounts opened 77,336 2.8 million
2. No. of securities immobilised 16.5 billion 197.8 billion
3. No. of companies prescribed into CDS 28 816
4. Book entry settlement of 34.9 billion 362.7 billion traded securities
5. No. of ordinary transfer transactions 578,293 8.1 million
6. No. of Record of Depositors (ROD) 13,241 69,464 produced
T+3 settlement KLSE has successfully shortened the settlement period from T+5 to T+3 in December 2000. Based on the T+3 Settlement System, delivery and settlement dates are fixed based on 3 market days after trade date.
In the implementation process, consultation with industry participants was undertaken to ensure feedback and concerns are addressed in implementing T+3 to ensure industry participants are fully aware of the benefits of T+3.
The main objective of shortening the settlement system is to increase ef ficiency and to reduce settlement risk in order to enhance competitiveness.
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The benefit of T+3 extends to the various industry participants. Investors will particularly benefit from the shorter settlement period, which reduces risk and exposure as shares and cash are settled earlier. For international investors, T+3 standardises the settlement system in line with that of major international exchanges, thus facilitating investment operations.
Delivery vs Payment The delivery versus payment (DVP) environment was further enhanced by the implementation of the Institutional Settlement Service for Direct Business T ransactions (ISS-DBT) in July 2001.
The Institutional Settlement Service (ISS) for on-market transactions was first introduced in July 1999. On- market transactions are transactions that are executed through the Automated and Computerised Trading System established by the Exchange whilst Direct Business Transactions (DBT) are transactions that are not executed through the Automated and Computerised Trading System.
ISS enables eligible financial institutions to clear and settle securities transactions on behalf of their institutional clients directly with SCANS. The beneficial objective of ISS is to reduce the settlement risk exposure of institutional investors whilst enhancing DVP, in line with international settlement best practices and requirements. Since its introduction, ISS has been well received, with industry participants increasingly relying on ISS to clear and settle securities transactions.
W ith ISS expanded for DBT, this will further ensure local and foreign institutional investors continue to have access to a secure and ef ficient clearing and settlement system. Similar to industry support for ISS, since its introduction, ISS-DBT has also been well received by industry participants, with increasing volume and value of securities transactions cleared and settled through ISS-DBT.
Electronic handling of Provisional Allotment Letters The electronic management of Provisional Allotment Letters (PALs) was implemented in January 2001.
W ith the immobilisation of PALs, all securities on the Exchange are traded scripless. This will not only result in more ef ficient and convenient delivery, settlement of trades and reduced costs for securities holders but also achieve speedier processing from the books closing date to the listing of the new securities. Thus, the immobilisation of
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Executive Chairman s Statement
III DEVELOPMENTAL STOCKBROKING COMPANIES Stockbroking companies, now more than ever, are facing the challenges of an increasingly liberalised and competitive marketplace.
Recognising that investor capital is mobile regionally and internationally, more securities markets are reviewing transactions cost in working towards the objective of of fering more comprehensive and more efficient services at lower fees.
Therefore, to remain attractive and competitive, the Malaysian securities market will need to continually seek ef ficiency and innovation as a means to continued prosperity.
Reduction in Transaction Cost Key to industry competitiveness, is the ability to of fer competitive cost. Thus, in line with the commitment to liberalise the capital market, which is expected to improve liquidity and ef ficient price discovery, the reduction in transaction cost was implemented. Among others, these factors will contribute to make KLSE and Malaysia a more attractive and competitive investment destination for investors.
Regulators have taken the lead to promote industry competitiveness by proceeding to reduce the components of transaction cost which include clearing and other fees as part of the commitment to enhance the cost competitiveness of the industry.
Prior to First Stage Reduction Second Stage Reduction 1 September 2000 1 September 2000 1 July 2001
SCORE Fee* 0.01% ad valorem 0.005% ad valorem 0.0025% ad valorem
Clearing Fee 0.05% ad valorem 0.05% ad valorem 0.04% ad valorem Max. RM200 per contract
SC Levy 0.02% ad valorem 0.02% ad valorem 0.015% ad valorem
*SCORE System on Computerised Order Routing & Execution
The reduction in brokerage commission, as part of the reduction in transaction cost, has been implemented since September 2000 and is expected to be completed by July 2002.
The reduction is in line with the government and industry regulators commitment to liberalise the capital market to make KLSE and Malaysia a more attractive investment destination for all investors.
Prior to First Stage Reduction Second Stage Reduction 1 September 2000 1 September 2000 1 July 2002
Brokerage Commission Contract Value Rate Contract Value Rate Fully negotiable (RM) (%) (RM) (%) commission rates for Retail trades subject to a cap 1st 500,000 1.00 Less than or 0.75 of 0.70% Next 1.5mill 0.75 equal to 100,000 Above 2.0 mill 0.50 More than Fully Institutional 100,000 Negotiable 1st 500,000 0.75 Next 1.5mill 0.5625 Above 2.0 mill 0.375 Interbroker 1st 2.0 mill 0.4 Above 2.0 mill 0.35
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Kuala Lumpur Stock Exchange Annual Report 2001
In addition to reduction in transaction cost, on-going measures in enhancing the overall competitiveness of the Malaysian securities market continue to be implemented in several key areas, i.e. to: strengthen the financial position of stockbroking companies encourage greater compliance to prudential standards improve vigilance in risk management
In line with the successful consolidation and restructuring ef forts, the number of stockbroking companies under trading restrictions was reduced from 8 to 1 during the financial year. 5 of these stockbroking companies were acquired by other stockbroking companies and another 2 stockbroking companies were able to regularise their financial positions following the successful implementation of W orkout Proposals with their creditors pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act, 1998.
These efforts have collectively contributed in further enhancing the services and business capabilities of the Malaysian securities industry in line with international standards.
During the period from 1 July 2000 to 30 September 2001, there was an increase in aggregate reserves and shareholders funds of stockbroking companies, as follows:-
Growth Indicators for Stockbroking Companies
Increase/(Decrease) 1 July 2000 30 September 2001 during the period Consolidated for all stockbroking companies RM billion RM billion RM billion
Paid-up Capital* 7.705 7.211 (0.494)
Reserves (0.127) 0.916 1.043
Shareholders Funds 7.578 8.127 0.549
* During the aforesaid period, there was an increase in the paid-up capital of RM0.444 billion and a reduction of RM0.938 billion arising from the consolidation (acquisitions and mergers) within the stockbroking industry. This has resulted in a net reduction of RM0.494 billion.
Supervising Compliance
Cost reduction is not the only factor in enhancing the overall competitiveness of the Malaysian securities market.
Greater compliance to prudential standards and improved vigilance in risk management by stockbroking companies are also significant factors in contributing to enhanced confidence and the creation of a more competitive market.
As part of the overall ef fort to ensure a high standard of compliance to prudential requirements review, the KLSE conducts inspections on stockbroking companies and audits on Authorised Depository Agents (ADAs) to: ascertain their compliance to the Rules of KLSE; to determine their compliance to the Rules of Malaysian Central Depository; to determine the state of preparedness of branches of stockbroking companies to commence operations.
Overall, there was continued vigilant monitoring for compliance, as evident from the number of cases initiated during financial year 2001. However, with the enhanced rules for investor protection and the continuous investor education programmes undertaken by KLSE, it is expected that the number of cases will decline in future periods. In addition, heightened levels of controls at stockbroking companies with the requirement of internal audit function, together with compliance of ficers to handle clients complaints will
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Executive Chairman s Statement
Status of Investigation Cases as at 30 June 2001
Cases Brought Cases Forward Initiated from during Total Cases Cases Category Financial Year Financial Year Cases Completed Outstanding 2000 2001
Buying-in/potential shortselling 75 95 170 128 42
Alleged defaulter 70 34 104 46 58
Potential misuse of clients account 60 17 77 63 14
Other complaints of improper conduct 40 21 61 41 20 against dealers representatives
Complaints of improper conduct against 86 24 110 45 65 stockbroking companies
Potential false trading/market rigging/ 38 103 141 64 77 market manipulation/ insider trading
General complaints 25770
Total 371 299 670 394 276
Disciplinary Actions on Dealers Representatives and Stockbroking Companies during financial year ended 30 June 2001
Disciplinary Action Dealers Representatives Stockbroking Companies
Struck Of f 2
Fined 71
Suspension 1
Reprimanded 1
Total 10 2
also help to reduce the number of cases.
Universal Brokers In ef forts to further encourage the consolidation of the stockbroking industry, the Securities Commission (SC) announced guidelines for Universal Brokers in October 2000. The development of universal brokers is part of the industry strengthening process to create financially stronger and more competitive stockbroking companies.
A Universal Broker is a stockbroking company, approved by the SC to be a Universal Broker, which is able to of fer a diverse range of products and services within the capital market, including corporate finance, futures broking business and dealings in debt securities. To become a Universal Broker, a stockbroking company must meet various quantitative and qualitative criteria besides having merged with or acquired at least 3 other stockbroking companies.
As at 30 September 2001, the SC has granted Universal Broker status to 5 stockbroking companies. Following the merger with, and acquisition of other stockbroking companies, these 5 Universal Brokers have set up in total 15 branch of fices. In addition, 3 stockbroking companies, which are not Universal Brokers, have also acquired in total 3 other stockbroking companies and converted these into their respective branch of fices.
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Kuala Lumpur Stock Exchange Annual Report 2001
IV DEVELOPMENTAL MARKET INSTITUTIONS
In enhancing industry development, the Capital Market Masterplan supports the adoption of competitive strategies including the consolidation of exchanges, catalytic development of the derivatives and bond markets and continued enhancement of disclosure based regulations.
The KLSE Group is committed to implementing the recommendations of the CMP in a practical and expeditious manner, for the overall benefit of the industry.
Consolidation into an integrated exchange In line with the competitive strategies of the CMP, KLSE continues in the move to develop an integrated exchange to achieve optimum utilisation of resources and economies of scale, to achieve greater ef ficiency and competitiveness in the securities industry.
W ith the establishment of Malaysia Derivatives Exchange (MDEX) in June 2001, KLSE completed the integration of The Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) and Commodity and Monetary Exchange of Malaysia (COMMEX) as an integrated derivatives exchange.
KLSE has also signed a Memorandum of Understanding (MOU) with Malaysian Exchange of Securities Dealing and Automated Quotation (MESDAQ) on 27 June 2001 to initiate discussions with MESDAQ for it to join the KLSE Group.
In connection with an integrated exchange, the CMP s recommendation includes the establishment of a common trading platform and a common clearing and settlement platform across all exchange-traded products. Such a move is intended to facilitate a single integrated access for investors to an integrated exchange that is able to of fer a wide range of products. This will benefit not only market intermediaries but all market participants in an industry that will of fer greater ef ficiency and cost-ef fectiveness.
Disclosure Based Regulation The move to disclosure based regulation is to provide a more ef ficient framework for corporations to raise capital, in the shortest time possible, without compromise to investor protection.
KLSE continues to progress with the implementation of the full Disclosure Based Regulation (DBR) for the primary market.
As part of the implementation ef fort, KLSE has developed a DBR model that is suitable for the Malaysian equity market and consistent with international best practices. This ef fort includes benchmarking, research and consultation with market participants, industry specialists and the SC. In the process, special emphasis is placed on reduction of timeframes for capital raisings, lowering of costs for capital raisings, extensive use of information technology and introduction of more ef ficient operational processes and procedures.
The National Bond Market Project Amongst the recommendations put forth in the CMP is the development of a robust, active and liquid bond market. KLSE is actively involved in various aspects, including the creation of an exchange traded bond market.
The exchange traded bond market aims to widen access
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Executive Chairman s Statement
V INVESTOR EDUCATION & TRAINING
The wealth of information and facilities provided by KLSE is an example of its significant investment in one of the principal groups it serves the investors.
KLSE has been unrelenting in its ef forts to promote investments in the stockmarket based on fundamentals and knowledge gained from understanding the market. Investing hard-earned money should not be determined by speculation or rumours.
The continued ability of investors to participate in the KLSE, and invest well, is of paramount importance to the Exchange. An informed investor is a more prudent investor.
Informed Investing Activities For the period under review, a total of 83 Saturday Informed Investing talks were conducted at the regional Balai Maklumat BSKL, drawing a total audience of over 5000 participants ranging from academia, professionals, students to the general investing public and other industry participants.
Topics covered ranged from understanding basic components of the stock market, to smart investing and investor rights. These programmes have in turn created awareness and greater interest in the use of the facilities and services of Balai Maklumat BSKL. For the period under review, over 52,000 visitors used the facilities provided at the Public Information Centre in Kuala Lumpur and the regional network of Balai Maklumat.
KLSE also organised two roadshows in 2001 Miri from 14-16 June 2001 and Kuantan from 29-30 June 2001. The roadshows are for the purpose of educating investors on fundamentals of investing and to update the general public on the latest developments in the stock market and securities industry. Besides KLSE, the SC, Permodalan Nasional Berhad and the respective local stockbroking companies Sarawak Securities in Miri and Kuala Lumpur City Securities in Kuantan, participated in the roadshows.
KLSE Investors Week The inaugural KLSE Investors Week 2000 was held from 12 to 16 September 2000. The event, which is in line with KLSE s ef forts to enhance investor education and promote the Malaysian capital market, received overwhelming response with more than 16,000 visitors.
This was followed by KLSE Investors Week 2001 held from 5-9 September 2001, which expanded the range of topics presented to include an overview of the Malaysian securities market, principles of informed investing, investment options, investor rights, conventional and syariah investments. The response to the talk sessions on the Malaysian capital market as well as the company presentation sessions was exceptional.
Meanwhile, to further promote and educate investors, the Exchange has actively participated at various events during the year including: Minggu Saham Amanah Malaysia Permodalan Nasional Berhad (PNB), Jengka, Pahang (10-13 August 2000) Minggu Saham Amanah Malaysia Permodalan Nasional Berhad (PNB), Kota Bahru, Kelantan (20-24 April 2001) SC Organised Roadshow in Kuala Selangor (26 August 2000) SC Organised Roadshow in Kangar (28 October 2000) Federation of Malaysian Unit Trust Managers Unit Trust Roadshow in Kuala Lumpur (6-8 October 2001) The Malaysian Corporate Information Technology Conference and Exhibition (CITEX) 2001 in Sunway Pyramid Convention Centre (11-13 May 2001) The Malaysian Finance Association Third Annual Symposium at International Islamic University, Gombak (26 May 2001)
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Kuala Lumpur Stock Exchange Annual Report 2001
VI INTERNATIONAL RELATIONS
W ith accelerating globalisation and planned liberalisation, exchanges worldwide have quickly moved to forge international alliances.
Exchanges no longer hold an exclusive franchise for listing and trading of instruments within borders. Domestic exchanges are now being challenged not only by other exchanges but also by alternative trading systems such as electronic communication networks (ECNs).
To ensure continued relevance and competitiveness, KLSE has to be at the forefront of these developments. However, in pursuing these alliances, KLSE will not lose sight of its principal objectives to continue to of fer a secure, ef ficient and cost ef fective platform for Malaysian corporations to raise capital and to facilitate investments to be the premier exchange for Malaysian securities.
International Communications Te a m Further to the announcement by the Honourable Minister of Finance in the Budget 2001, KLSE established an International Communications Team (ICT) in November 2000, with the purpose of fostering relations with and enhancing the information flow to the international investment community.
Specifically, ICT focuses on: Enhancing dissemination of comprehensive and accurate market and other relevant information to the international media; and Fostering more open and active communications with the foreign investment community, including fund managers,
with the purpose of addressing perception gaps and correcting misconceptions that might exist regarding the Malaysian market on a timely basis.
Among the activities that ICT has undertaken since its establishment are as follows:-
Roadshows and Meetings In engaging with the international investment community, meetings with international investors were held regularly, either locally or abroad.
Apart from participation in local conferences for foreign fund managers, ICT has co-organised roadshows in Tokyo, Taipei, Hong Kong and Singapore with leading international stockbroking and investment banking groups. These investment promotion activities have been participated by senior representatives from KLSE, SC and Bank Negara Malaysia.
In communicating facts and figures on Malaysia in the right perspective, ICT contributed articles and advertorials in various international investment magazines and handbooks. An international advertising campaign was launched to build awareness on KLSE s efforts to strengthen the market and investment environment.
Participation in International Organisations KLSE continued its active participation in meetings and events organised by international organisations. Participation in the International Federation of Stock Exchanges (FIBV), East Asian and Oceanian Stock
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Executive Chairman s Statement
R O YAL VISIT TO KLSE KLSE Group was honoured to receive a very special visit on 13 February 2001 when DYMM Seri Paduka Baginda Yang Dipertuan Agong, Sultan Salahuddin Abdul Aziz Shah and DYMM Raja Permaisuri Agong, Tuanku Siti Aishah, visited the Exchange.
The royal couple was briefed on the operations of the KLSE Group as well as on current industry developments. The programme also KLSE s Information Gallery captures the interest of its included a visit to the KLSE Information Gallery where the royal most honoured guests, the couple was given a complete tour of the facilities and services royal couple, Seri Paduka provided to assist investors. As a special treat for the royal visitors, Baginda Yang Dipertuan KLSE Group staff also enacted a spirited simulation of the open Agong and Raja Permaisuri Agong. outcry trading system.
The Deputy Minister of Finance, YB Datuk Dr Shafie Hj Mohd Salleh and his wife, Datin Dr Hjh Mizan Abdullah, joined the KLSE Executive Chairman and Committee Members in welcoming the royal guests to the Exchange.
It was certainly a privilege for KLSE to host this visit which will be etched in the Exchange s history .
VI COMMENDATIONS
In closing, thank you to the KLSE Committee Members for their support and co-operation and to all the members of the various sub-committees of the Exchange and Group for their invaluable contributions.
To the board of directors of Securities Clearing Automated Network Services Sdn Bhd (SCANS), Malaysian Central Depository Sdn Bhd, (MCD), Malaysia Derivatives Exchange (MDEX), Labuan International Financial Exchange (LFX), KLSE Bernama Real-Time Information Services Sdn Bhd (KULBER), Malaysian Share Registration Services Sdn Bhd (MSRS), the Board of Governors of the Research Institute of Investment Analysts Malaysia (RIIAM) and Yayasan BSKL thank you for your dedication and guidance.
On behalf of the KLSE Committee and Group Management, our sincere appreciation to the Right Honourable Prime Minister and Finance Minister for his unwavering commitment towards the sustained development of the capital market and the national economy. Our acknowledgement for the support and co-operation of the Ministry of Finance, Bank Negara Malaysia, the Securities Commission, the Registrar of Companies, and related regulatory authorities in guiding us through the many trials of the year.
Finally , very special commendations to the KLSE Group staff for their untiring contribution and dedication in enabling the KLSE Group to achieve its aspirations to spearhead continuous improvements in the industry.
D ATO MOHAMMED AZLAN HASHIM
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Investors Digest
Investors Digest is the of ficial monthly publication of KLSE, of fering investors and industry participants a comprehensive review of current news, updated information and latest statistics relating to the stock market and the securities industry.
Mid-July 2000 Mid-August 2000 Mid-September 2000 Mid-October 2000
Mid-November 2000 Mid-December 2000 Mid-January 2001 Mid-February 2001
Mid-March 2001 Mid-April 2001 Mid-May 2001 Mid-June 2001 pg1-78.qxd 1/2/02 11:46 AM Page 24
Combination of controls , checks and balances form a pg1-78.qxd 1/2/02 11:46 AM Page 25
Kuala Lumpur Stock Exchange Annual Report 2001
1 July 2000 to 30 June 2001
The performance of the Kuala Lumpur Stock On 13 July, the CI reached a high of 860.77, Exchange (KLSE) was very much in line with that encouraged by the Right Honourable Prime of other markets during the period between July Minister s statement that Malaysia was expected to 2000 to end-June 2001. During the period, most of register a GDP growth of 9% for 2nd quarter 2000, the equity markets showed a downtrend, primarily and by expectations of a possible ratings upgrade driven by the uncertain direction by Moody s. However, a report by Morgan Stanley of the global economy. The contraction in the global Dean Witter of its decision to reduce Malaysia s technology industry on which the region s export weighting in its portfolio from 11.7% to 1.6% strength is based contributed to the weakening of dampened sentiment once again. By the end of the regional economies and respective equity July , the CI slipped to 798.83. Total market markets. Some of these markets were also capitalisation fell from RM572 billion at the end of influenced by social and political developments. June to RM558 billion at end-July. While average daily volume for the month was 194 million units As at 29 June 2001, the last trading day of the compared to 163 million units in June 2000, fiscal year , the KLSE Composite Index (CI) declined average daily value shrank to RM532 million 240.38 points or 28.84% to close at 592.99 compared to RM636 million. compared to 833.37 on 30 June 2000. Similarly, total market capitalisation at 29 June 2001 T rading remained quiet in August with investors decreased by 29.55% to RM403 billion from RM572 staying on the sidelines amidst a lack of positive billion a year ago. Total volume decreased to 34 leads. The CI closed at 795.84 at month s end, billion units valued at RM89 billion in contrast to almost unchanged from its end-July level. A verage 106 billion units valued at RM305 billion during the daily volume transacted reduced to 106 million units previous period. valued at RM391 million while market capitalisation was marginally lower at RM553 billion. On 3 July 2000, the first trading day of the financial year, the CI dipped below the 800-point level to Uncertainty surrounding the merger of banking 793.93 in thin trading as a result of profit-taking at institutions dominated market sentiments in the end of June. Concerns lingered over the September. Added to this concern was the expected impact of the staggered release of the possibility that the rise in crude oil prices could lead Central Limit Order Book shares, which when proved to a slowdown in the global economy and to be unfounded, saw renewed interest in the market. negatively impact Malaysian exports. The U.S. and regional markets also recorded weak performances on the back of profit warnings from U.S. companies and weakness in the Euro. The CI closed at its lowest level for the month at 713.51, a drop of 82.33 points or 10.35% from end-August. While
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Market Report 1 July 2000 to 30 June 2001
*29.6.2001 vs 30.6.2000
Points % KLSE Indices 29.6.2001 30.6.2000 Change Change
EMAS 142.29 207.15 64.86 31.31
Composite 592.99 833.37 240.38 28.84
Industrial 1,151.73 1,444.10 292.37 20.25
Consumer Products 146.39 163.32 16.93 10.37
Industrial Products 59.31 87.19 27.88 31.98
Construction 138.37 226.75 88.38 38.98
Trading/Services 87.01 127.14 40.13 31.56
Finance 4,334.71 6,718.52 2,383.81 35.48
Property 593.18 970.02 376.84 38.85
Plantations 1,417.77 1,826.47 408.70 22.38
Mining 185.24 217.13 31.89 14.69
Syariah 93.71 132.76 39.05 29.41
Second Board 106.93 215.19 108.26 50.31
Technology 45.23 129.35 84.12 65.03
* Last trading day of fiscal year
average daily volume increased to 124 million units, Although the market continued to move lower in average daily value declined to RM374 million. early October, taking the lead from poor U.S. Market capitalisation fell to RM489 billion. corporate news, interest returned to the market mid- month, in anticipation of an investor-friendly Budget 2001. Investors interest in the market was apparent from the significant rise in average daily volume to 285 million units for the period 13-25 October compared to 132 million units from 2-12 October. Buying support of index-heavyweights lifted the CI to the month s high of 796.22 on 25 October. This uptrend, however, could not be sustained as profit-taking set in following Budget D a y. Nevertheless, the CI managed to move higher by 38.85 points or 5.44% to close the month at 752.36. Average daily volume for October was 205 million units valued at RM635 million. Similarly, market capitalisation improved to RM502 billion.
In November, uncertainty over the U.S. presidential election, worries over the future earnings of U.S. technology stocks and concerns over local corporate restructuring exercises pressured the CI lower to 729.95 at the close of the month, a loss of 22.41
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Kuala Lumpur Stock Exchange Annual Report 2001
points or 2.98%. A verage daily volume transacted declined to 111 million units valued at RM334 million. Market capitalisation contracted to RM487 billion.
Activity in December continued to be af fected by lingering concerns over the pace of corporate and debt restructuring, companies commitment to raise the standard of corporate governance and potential threats from the economic slowdown in the U.S. Consequently, the CI ended the year 2000 at 679.64, lower by 50.31 points or 6.89% from the previous month. Likewise, market capitalisation shrank to RM444 billion, although average daily volume increased to 138 million units valued at RM348 million. The announcement on 10 December by Morgan Stanley Capital International (MSCI) of its decision to apply the free-float criteria on weighting of index calculations had no visible impact on the market.
From 20 December, KLSE implemented its shorter settlement period from T+5 to T+3, which proceeded smoothly.
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The unexpected decision by the U.S. Federal Reserve to cut key interest rates by 50 basis points on 3 January managed to lift the CI higher temporarily, in tandem with other regional markets. Supported by a pre- Chinese New Year run-up, the CI crossed the 700- point level on 22 January and continued to rise thereafter to end the month at 727.73, a gain of 48.09 points or 7.08% compared to 679.64 on 26 December 2000. Market capitalisation at end- January 2001 improved to RM476 billion from RM444 billion at end-December 2000. Average daily volume in January rose to 162 million units valued at RM378 million compared to 138 million units valued at RM348 million in December 2000.
However, the upside was capped by lack of follow- through buying support and weakness in the U.S. markets.
Sentiment turned negative again in February due also to the release of poorer-than-anticipated corporate results and weak economic data at home. Reflecting investors’ passive mood was the undersubscription in several Initial Public Of fers (IPOs) during the following months. The negative undertone towards IPOs was also felt by other markets, in particular where it involved the telecommunication and technology sectors. The CI closed at 709.39 for the month of February, a drop of 18.34 points or 2.52%. A verage daily volume fell to 131 million units valued at RM376 million. Market capitalisation shrank to RM459 billion.
A key event during the month was the launch of the
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Kuala Lumpur Stock Exchange Annual Report 2001
Capital Market Masterplan (CMP) on 22 February. reviewed due to softening regional currencies, The CMP contains a three-phase development plan declining international reserves and fears of over a increasing non-performing loans. Falling stock 10-year period to ensure that the domestic capital prices resulted in recurring margin calls from market continues to remain relevant and stockbrokers and financial institutions, thus competitive. While the release of the plan had no exacerbating the situation. On 23 April, the Eighth immediate impact on the market, it was welcomed as Malaysia Plan (8MP) was tabled in Dewan Rakyat a long-term measure to strengthen the industry. by the Right Honourable Prime Minister. The three key thrusts in the 8MP were to shift growth from The market drifted lower in March, with the CI input-driven to knowledge-driven, speed up structural falling below the 700-level to end the month at changes in the agriculture, manufacturing and 647.48. Sentiment continued to be influenced by the services sectors, and strengthen socio-economic U.S. markets, which went through severe stability by equitable distribution of the country s corrections. The Nasdaq Composite Index plunged wealth. Whilst there was no immediate response below the 2000-level for the first time in more than from the market by the tabling of the 8MP, there two years on revisions of earnings by technology was, however, some accumulation of selective blue companies. The Dow Jones Industrial Average chips ahead of the corporate results season. This closed below the 10,000-level for the first time lent some support to the market, with the CI since October 2000 on signs that the U.S. recovering by 31.16 points or 5.63% from its low of economic slowdown was extending beyond 553.34 on technology companies. This influenced not only the 9 April to close the month at 584.50. Compared to regional bourses, but also the KLSE. To protect the its level at end March, the CI was still lower by Malaysian economy from the adverse effects of a 62.98 points or 9.73%. Average daily volume U.S. economic slowdown, the Government transacted improved to 118 million units with a announced a RM3 billion stimulus package. For the value of RM248 million. Market capitalisation, month, average daily volume decreased to 100 however, fell to RM394 billion. million units valued at RM226 million, while market capitalisation moved lower to RM418 billion. In early May, the market staged a brief rally with the CI breaching the 600-level on 2 May to close at This correctional phase continued into mid-April, 611.42, in reaction to the government s abolishment with the CI touching 553.34 on 9 April, its lowest of the 10% exit levy on profits of portfolio level for the period under review. There were investments repatriated within one year. However, reports of concerns that the Ringgit peg could be the uptrend was not sustained and the CI fell again below the 600-level to 576.99 on 4 May on heavy selling of selected heavyweights. Concerns surfaced over the poorer-than-expected banking
Investors have access to online market information at the KLSE s Information Gallery.
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Accountability and responsibility for every decision. pg1-78.qxd 1/2/02 11:47 AM Page 31
Kuala Lumpur Stock Exchange Annual Report 2001
STRENGTHENING CORPORATE GOVERNANCE Corporate governance is essential for investor confidence and enhancement of shareholder value. It is only with high standards of corporate governance that a quality and vibrant market can be cultivated, one which is premised on principles of fairness, integrity, transparency and accountability.
Why the need for corporate governance In Malaysia, corporate governance has always been in its ef forts to continuously enhance the capital recognised as the primary focus of increasing market, the KLSE has over time implemented shareholders value. Laws, rules and regulations various corporate governance requirements. KLSE have long been in place to ensure that the principles has required each listed company to have of corporate governance are adhered to by listed independent directors since the 1980s and has companies. However, with the financial crisis, came required the establishment of an audit committee in the realisation that more had to be done in this area. each listed company since 1993. As an active The need to enhance corporate governance w a s member participating in the Finance Committee, amplified by the onslaught of globalisation. In this KLSE quickly moved to operationalise and era of fluid capital and transborder investments, a implement the recommendations put forth. KLSE market s stability and future growth hinges on a culture has implemented applicable recommendations of of heightened corporate governance and increased the Finance Committee in relation to the Listing transparency. Requirements, via the introduction of the new Listing Requirements that were announced in January 2001. The KLSE also undertook various Finance Committee on Corporate Governance other measures to heighten the level of corporate It was against this background that the Government governance amongst its listed companies via the established the Finance Committee on Corporate new Listing Requirements. Thereafter, KLSE Governance to improve the corporate governance conducted roadshows and seminars throughout the framework for the Malaysian capital market. The country to actively promote awareness of corporate Finance Committee recommended changes to the governance and encourage its acceptance by relevant laws, regulations and rules, formulated a industry participants. These activities are expected Code on Corporate Governance for the industry and to be on-going as part of the securities market even made recommendations to enhance corporate development programme. governance through training and education. Generally, the approach adopted by KLSE is to provide a strong framework of corporate Measures undertaken by KLSE to enhance governance consisting of minimum standards of corporate governance corporate governance which must be complied with Fully cognisant of good corporate governance and by all listed companies. Beyond this, listed companies should be allowed the flexibility to develop and adapt practices that are best suited to 31 their own business circumstances and market pg1-78.qxd 1/2/02 11:47 AM Page 32
Issues in Focus
requirements. However, to meet the increasing demand by investors and shareholders for more ef fective disclosure of information on governance issues, KLSE has mandated the disclosure of information relating to the extent of compliance with corporate governance practices and state of internal control.
Corporate governance framework The framework put in place by KLSE focuses on practitioners with key responsibilities in the corporate landscape the directors and audit committee members. In short, KLSE sought to create a sound framework for corporate governance in the Listing Requirements through the following: enhancing the definition of independent director and strengthening the composition of the board of directors requiring directors to attend a prescribed minimum number of board meetings enhancing the composition of the audit committee, its functions, rights and authority express statement of directors rights imposition of obligations on directors
LIST OF PRACTICE NOTES Practice Notes Effective Dates Practice Note No 1/2001 on Default in Payment 1 June 2001 Practice Note No 2/2001 on Requests for Suspension 1 June 2001 Practice Note No 3/2001 on Disclosure in relation to Internet-related Businesses or E-commerce Activities 1 June 2001 Practice Note No 4/2001 on Criteria and Obligations pursuant to paragraph 8.14 of the Listing Requirements 15 February 2001 Practice Note No 5/2001 on Training for Directors 15 February 2001 Practice Note No 6/2001 on Independent Directors 1 June 2001 Practice Note No 7/2001 on Classification of Applicants or Listed Issuers 1 June 2001 Practice Note No 8/2001 on Submission of Semi-annual Returns 1 June 2001 Practice Note No 9/2001 on Disclosure in relation to the Malaysian Code on Corporate Governance and the State of Internal Control 1 June 2001 Practice Note No 10/2001 on Level of Operations 1 July 2001 Practice Note No 11/2001 on Provision of Financial Assistance 1 July 2001
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To ensure greater compliance with the Listing Acceptance by industry Requirements, the Exchange has issued 12 Practice Most importantly, however, the industry must buy-in Notes. These Practice Notes have been issued with to the ef forts made by the regulators in promoting the objective of promoting better understanding and corporate governance. Listed companies in to facilitate consistent application of the new Listing particular must embrace corporate governance in total. Why? Because good corporate governance is Requirements by industry participants. the way to enhance investor confidence and in turn, attract more investors and investments. By committing to high standards of corporate governance, shareholder value will be enhanced.
Investors are becoming more discerning. Empirical studies have shown that investors are willing to pay a premium for companies with good corporate governance. They believe that companies with good corporate governance will perform better over time, leading to enhanced shareholders value and a higher share price. Some see good corporate governance as a means of reducing risk. Other stakeholders, such as the employees also recognise good governance. In this age of the knowledge-economy, employee commitment is of paramount importance and may be the determinant factor in the success of a company.
Enforcement as impetus for compliance However, rules and regulations by themselves may not be ef fective if not accompanied by acceptance and desire to comply by the industry. This is where surveillance, monitoring and enforcement continue to be part of KLSE s duty to the industry. KLSE has always been committed to enforcing its Listing Requirements objectively, promptly and without fear or favour and it will continue to do so under the new Listing Requirements.
In tandem with the rising expectations of directors performance and accountability to the company and its shareholders, KLSE is empowered under the new Listing Requirements, to take action against the directors personally, where they commit a breach of the Listing Requirements. Such enforcement actions against directors, where necessary will serve as a wake-up call that they have been put in positions of trust and that they must honour this trust and act in the best interests of the company. To assist the directors in discharging their duties, KLSE has also mandated them to attend training programmes on a continuous basis.
The Adjudication Panel of the KLSE Corporate Awards ensures that recipients of the A wards are companies that practise high standards of corporate governance.
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Issues in Focus
KLSE CORPORATE AW ARDS The KLSE Corporate Awards were developed to honour companies listed on both the Main Board and Second Board of the KLSE, which have shown exemplary corporate conduct in complying with the KLSE Listing Requirements. The Awards also recognise public listed companies which have demonstrated high standards of corporate governance, disclosure and transparency and have been proactive in investor relations.
More importantly, the aim of the A wards is to inspire public listed companies to practise high standards of corporate conduct as a mechanism of self-regulation and establish the practice of a greater degree of accountability and responsibility to shareholders, investors and other stakeholders.
The KLSE Corporate Awards are presented annually with 2 categories of awards the KLSE Corporate Excellence Awards and the KLSE Corporate Sectoral Awards. The KLSE Corporate Excellence Awards honour the top 2 companies each from the Main Board and the Second Board respectively. The KLSE Corporate Sectoral Awards are presented to the top company of each sector from the Main Board and Second Board. All companies listed on the KLSE are eligible to participate in the KLSE Corporate Awards.
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THE CAPITAL MARKET MASTERPLAN COMMITMENT TO IMPLEMENTATION Introduction The Capital Market Masterplan (CMP), unveiled by the Securities Commission (SC) on 22 February 2001, provides a vital roadmap for the Malaysian capital market covering a period of ten years, i.e. 2001 2010. The CMP aims to foster and develop a capital market, which will be internationally competitive, highly ef ficient and supported by a strong and facilitative regulatory framework. In short, the CMP sets out a vision where the Malaysian capital market should be: Internationally Competitive in all areas necessary to support Malaysia’s basic capital and investment needs, as well as its longer-term objectives; Highly Ef ficient as a conduit for the mobilisation and allocation of funds; and Supported by a Strong and Facilitative Regulatory Framework that enables the capital market to perform its functions ef fectively and provides a high degree of confidence to its users.
The achievement of these, as envisioned by the C M P, is through the development and achievement For the KLSE Group, the significance of the CMP of the six key objectives, composed of 24 strategic is undoubtedly huge as almost two thirds of the initiatives and 152 specific recommendations. recommendations made in the CMP have relevance, either directly or indirectly. The implementation and achievement of the objectives, strategic initiatives and The KLSE Group recommendations of the CMP is characterised by a Addressing the CMP Recommendations phased approach. The approach has been The KLSE Group has taken a proactive role in identified as involving three distinct phases: implementing the recommendations contained in the Phase 1: Strengthen domestic capacity, and C M P. In fact, work on some of the develop strategic and nascent recommendations commenced as early as in 1998, sectors (2001-2003) as reflected by KLSE s lead role in pursuing Phase 2: Further strengthen key sectors and consolidation of market institutions. The acquisition gradually liberalise market access of the Kuala Lumpur Options and Financial Futures (2004-2005) Exchange (KLOFFE) and subsequent merger of Phase 3: Further expansion and KLOFFE with the Commodity and Monetary strengthening of market processes Exchange of Malaysia (COMMEX) to form the and infrastructure towards Malaysia Derivatives Exchange (MDEX) is a prime becoming a fully developed capital example. market, and enhancing international positioning W ith the launch of the CMP, KLSE recognises that in areas of comparative and to implement the recommendations would require competitive advantage (2006- 2010) 35 pg1-78.qxd 1/2/02 11:47 AM Page 36
Issues in Focus
CMP Sequencing
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Strengthen domestic capacity, and develop strategic and nascent sectors Further strengthen key sectors and gradually liberalise market access
Further expansion and strengthening of market processes and infrastructure towards becoming a fully developed capital market, and enhancing international positioning in areas of comparative and competitive advantage Phase 1 Phase 2 Phase 3 Source: Securities
ef ficient and ef fective management and co- ordination. For this, the KLSE Group formed an CMP Implementation Committee implementation committee comprising senior The internal framework to implement the CMP management personnel to co-ordinate, monitor and recommendations within the KLSE Group is the supervise the implementation of the CMP CMP Implementation Committee (CIC). Headed by recommendations. the Executive Chairman of KLSE, the CIC provides an oversight to the KLSE CMP implementation programme.
CIC will also act as the primary contact point with the S C s Implementation Task Force and the various W orking Committees established to oversee the implementation of the CMP recommendations. To enhance the efficiency and ef fectiveness of the CIC, the task of implementing the CMP recommendations is assigned to specific teams.
Project Te a m s The establishment of Project Teams is to directly undertake the specific task of implementing the recommendations. Based on the identification of areas related to the CMP recommendations, six core areas have been identified, namely: Business and Industry Development Clearing, Settlement and Depository Infrastructure and Technology Intermediary Activities and Supervision Primary and Secondary Market Derivatives
A Project Team has been assigned to each core area and will be responsible to represent the KLSE Group at the various Working Committees established by SC.
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Kuala Lumpur Stock Exchange Annual Report 2001
Overview of Core Areas
A number of goals have been identified and addressed under each respective area. In respect of Business and Industry Development, which covers macro recommendations that af fect the development and growth of the securities and futures markets, goals that have been identified include market institutions reform, business development, legal and regulatory framework, and industry training and education.
The area of the Clearing, Settlement and Depository team addresses the need to further enhance support functions carried out by other market institutions, namely the clearing and depository houses, in order to further strengthen and support the growth and development of the exchanges. Goals here revolve around the clearing and settlement infrastructure, depository facilities and competitive level.
The growth and development of the securities and futures markets cannot be achieved without formulation and utilisation of the best technology and infrastructure in meeting the needs of market participants. Thus, the area of Infrastructure and Technology involves issues such as market infrastructure, technological developments and electronic commerce.
Of concern to the area of Intermediary Activities and Supervision are matters related specifically to stockbroking companies, including their development and regulation. Goals relevant to this area also include market activities, stockbroking companies consolidation, electronic access and market regulation.
The Primary and Secondary Market cover goals that concern the development, growth and regulation of
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D ATUK MOHAIYANI TAN KIM LEONG, JP ABDUL KADIR HJ MD ABDUL JABBAR ABDUL SHAMSUDIN Committee Member KASSIM MAJID Deputy Chairman Committee Member Committee Member
Master of Business Member of Malaysian Bachelor of Laws (Hons) Member of Malaysian Administration (Finance), Institute of Accountants; University of Singapore; Institute of Accountants; Cornell University, Member of Malaysian Advocate & Solicitor, Member of Malaysian New York; Association of Certified Malaysia; Association of Certified Bachelor of Arts Public Accountants; Government appointed Public Accountants; (Economics) Fellow of Institute of Committee Member: Fellow of Institute of Knox College, Illinois; Chartered Accountants, 1.3.1998 present Chartered Accountants, Elected to the Australia; Australia; Committee: 28.11.1998 Fellow of Malaysian Government appointed present; Association of the Committee Member: Elected as Deputy Institute of Chartered 18.1.2001 present Chairman: 20.11.1999 Secretaries & present Administrators; Government appointed Committee Member: 18.12.1996 present
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D ATO MOHAMMED AZLAN HASHIM Executive Chairman
Bachelor of Economics (Accounting), Monash University, Australia; Member of Malaysian Institute of Accountants; Member of Institute of Chartered Accountants, Australia; Government appointed Committee Member: 18.12.1996 31.12.1997; Government appointed Executive Chairman: 1.1.1998 present
CHAN GUAN SENG ABDUL WAHAB NAN PETER LEONG TUCK LENG YUSLI MOHD YUSOFF Committee Member ABIDIN Committee Member Committee Member Committee Member
Bachelor of Commerce Bachelor of Arts (Hons), Master of Science Bachelor of Arts (Hons) (Hons), University of University Malaya; London School of Economics, University of Melbourne, Australia; Elected to the Economics Essex, England; Member of Australian Committee: 20.11.1999 Elected to the Member of Institute of Society of Certified present Committee: 25.11.2000 Chartered Accountants, Practising Accountants; present England and Wales; Member of Institute of Elected to the Chartered Accountants, Committee: 25.11.2000 Australia; present Elected to the Committee: 13.12.1986 18.12.1988; 6.12.1989 18.12.1994; 5.12.1996 present
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Dato Mohd Salleh Ungku A Razak Abdul Majid Md Nor Ahmad Ungku A Rahman President Deputy President I Deputy President II
Devanesan Evanson Chuah Mei Lin W ong Kay Yong Lim Boon Hang Senior Vice President, Senior Vice President, Senior Vice President, V ice President, Compliance & Inspection, Legal Advisory & Surveillance & Investigation, Legal Advisory & Market Supervision Group Membership Services, Market Supervision Group Membership Services, Market Supervision Group Market Supervision Group
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Kuala Lumpur Stock Exchange Annual Report 2001
Tan Chun Weng Norhan Che Awang Latifah Hj Mohd Yusof Senior Vice President, V ice President, Senior Vice President, Financial Review & Selvarany Rasiah Inspection, Listing Operations, Surveillance, Legal Advisor, Market Supervision Group Listing Group Listing Group Listing Group
Johan Abdullah Ch ng Boon Huat Ahmad Aznan Abdul Raihan Senior Vice President, V ice President, Hj Nawawi Mohd Yusof Securities Issues, Financial Review & Senior Vice President, Senior Manager, Listing Group Surveillance, Secretarial & Legal Af fairs Secretarial & Legal Af fairs Listing Group
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Khairussaleh Ramli Abdul Razak Abdul Hamid Sh V ice President, Mohd Amin Lew Lup Seong Mohamed Business Development & Senior Vice President, Senior Vice President, Senior Vice President, International Af fairs, Group Human Resource Finance & Administration Policy & Development Policy & Development
Tai Yoke Peng Qua Gek Kim Zulkifli Harun Yew Kim Keong V ice President, Senior Vice President, Senior Vice President, Senior Vice President, Organisation & Methods, Public Information Information Services/ Facilities Management Policy & Development Information Technology
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Kuala Lumpur Stock Exchange Annual Report 2001
Alice Thomas Low Pheng V ice President, V ice President, Group Communications, Group Internal Audit Corporate Affairs
Mohamad Azam Ali Shukoriah Mohd Noor V ice President, Senior Manager, Public Af fairs, Public Information Centre, Corporate Affairs Corporate Affairs
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Balancing the need for regulation with the practical requirements of business ef ficacy . pg1-78.qxd 1/2/02 11:48 AM Page 45
Kuala Lumpur Stock Exchange Annual Report 2001
Kuala Lumpur Stock Exchange (KLSE)
Malaysia Derivatives Labuan International Securities Clearing Malaysian Derivatives Malaysian Central Exchange Bhd Financial Exchange Automated Network Services Clearing House Bhd Depository Sdn Bhd (MDEX) (LFX) Sdn Bhd (MDCH) (MCD) (SCANS)
KLSE-Bernama Malaysian Share KLSE Property Yayasan BSKL Research Institute Real-Time Information Registration Services Management Sdn Bhd (YBSKL) of Investment Services Sdn Bhd Sdn Bhd (KPM) Analysts Malaysia (KULBER) (MSRS) (RIIAM)
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Dato Mohammed Azlan Hashim (KLSE, MDEX, LFX, Datuk Mohaiyani Tan Kim Leong SCANS, KPM, MCD, Shamsudin (KLSE, SCANS, KPM, MCD, KULBER, MSRS, YBSKL, (KLSE, SCANS, RIIAM) RIIAM)
Abdul Kadir Hj Abdul Jabbar Abdul Majid Chan Guan Seng Md Kassim (KLSE, MDEX, LFX, (KLSE, SCANS, MCD, (KLSE, LFX, SCANS, SCANS) YBSKL, RIIAM) YBSKL)
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Kuala Lumpur Stock Exchange Annual Report 2001
Abdul Wahab Nan Abidin Peter Leong Tuck Leng Yusli Mohamed Yusof f (KLSE, SCANS) (KLSE, LFX, SCANS) (KLSE, MDEX, SCANS)
Iskander Ismail W ong Fook Wah Dato Hwang Sing Lue (MDEX) (MDEX) (MDEX)
Tunku Dato Seri Md Nor Ahmad Nadzaruddin Tuanku (MDEX, LFX, KPM, Ja afar KULBER) (MDEX)
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Alvin Kwan Wing Ye w Dato Ahmad Johan Tan Sri Wan Azmi Wan (MDEX) Raslan Hamzah (LFX) (LFX)
Mohd Nasir Ali Dr Mohamed Arif Nun Larry Gan (LFX) (LFX) (LFX)
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Ridzuan Salleh Chin Chee Kee Izzuddin Tajudin (LFX) (LFX) (LFX)
Dr Ghazali Atan Prof Madya Dr Mohd Dato Hj Megat Dato Mohd Salleh (LFX) Daud Bakar Najmuddin Khas Dato Abdul Majid (LFX) Seri Dr Hj Megat Khas (SCANS, KULBER, YBSKL, (SCANS, MSRS) RIIAM)
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Datuk Amirsham Dato Seri Syed Zainol A Aziz Anwar Jamalullail Datuk Abdul Kadir Jasin Datuk Teh Ghee Kok (MCD) (MCD) (KULBER) (KULBER)
Leong Koon Choy Jaafar Hussin Ungku A Razak (KULBER) (KULBER) Ungku A Rahman (MSRS)
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Mohamad Shuib Datuk Hj Abdul Karim Tan Sri Zulkifli Mahmood Abdul Ghani Harun (MSRS) (MSRS) (YBSKL)
Dato N Sadasivan a/l N Dato Che Mohd Annuar Tan Sri Dato Dr Abdullah Tan Sri Dato Dr Syed N Pillay Che Mohd Senawi Sanusi Hj Ahmad Jalaluddin Syed Salim (YBSKL) (YBSKL) (YBSKL/RIIAM) (RIIAM)
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Malaysia Derivatives Exchange Bhd
The 2000/2001 financial year marks a significant landmark for the Malaysian derivatives industry.
In January 1999, a sale and purchase agreement was finalised between the Kuala Lumpur Stock Exchange (KLSE) and shareholders of KLOFFE Capital Sdn Bhd, resulting in the Kuala Lumpur Options and Financial Futures Exchange Bhd (KLOFFE) becoming a subsidiary of KLSE.
In September 2000, approvals were obtained from members of the Commodity and Monetary Exchange of Malaysia (COMMEX), the Board and shareholders of KLOFFE and the regulatory authorities for the merger of the two exchanges to form a single derivatives exchange.
The strategic objective for the merger exercise was to create a single, ef ficient and cost ef fective marketplace for Malaysian derivatives. The merger was also aimed at enhancing the product range of fered by the sole exchange for all three market segments, namely equity derivatives, financial derivatives and commodity derivatives.
The Malaysia Derivatives Exchange Bhd, or in short, MDEX came into being following the completion of the merger. MDEX was officially launched on 11 June 2001.
As an integrated derivatives exchange, MDEX currently of fers a wide range of derivatives products, including the KLSE Composite Index (KLSE CI) Futures and Option, the 3-Month Kuala Lumpur Interbank Offered Rate (KLIBOR) Futures and the Crude Palm Oil (CPO) Futures.
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Dr Zaha Rina Zahari Raghbir Singh Bhart Siah Boon Peng Chief Operating Officer General Manager Senior Manager, Trading
Mohamed Shah Shariff Peter Mah Manoj Devadasan K Sree Kumar Senior Manager, Senior Manager, Senior Manager, Senior Manager, Information Technology Finance & Administration Member, Legal Af fairs Strategic Planning & Human Resource Product Development
Edmund Koh Rosli Mahmood Allan Au Yong V Pasupathy Manager, Senior Manager, Senior Manager, Senior Manager, Management Information Market Surveillance Business Development Audit & Compliance Systems
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The objective of MDEX is to provide a single, efficient and cost-effective marketplace for Malaysian derivatives.
MDEX also aims to provide the following benefits:-
.i To meet investors needs for innovative and flexible investment tools capable of exploiting global market opportunities,
i. To provide the conceivable above-average returns and portfolio protection to investors,
iii. To provide the ability to engage in hedging activities which in turn can generate a more ef ficient financial illustration of investment portfolios.
Trading will remain on the KLOFFE Automated T rading System (KATS), an electronic screen-based trading system. However, trading on the Crude Palm Oil Futures and the 3-Month KLIBOR Futures Contracts is currently conducted on the Open Outcry system. The immediate priority of MDEX is to transfer these contracts to the KATS. Appropriate amendments and measures are being made to ensure smooth conversion which is expected to be completed by the end of 2001.
As part of our continuous ef forts to have more derivatives products to meet the requirements of all investors, the Malaysian derivatives market marked a milestone with the launching of the Kuala Lumpur Stock Exchange Composite Index (KLSE CI) Option contract in December 2000. The options launch saw MDEX embarking on an intensive programme to educate investors in making full and ef fective use of
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Labuan International Financial Exchange
The 2000/2001 financial year proved to be a momentous one for Labuan International Financial As a web-based exchange, LFX offers its Exchange Inc. (LFX Inc) especially with the of ficial participants fast and ef ficient access to the capital launch of the Labuan International Financial market. Its participants can be based anywhere in Exchange (LFX) on the world and all the major functions of LFX, be it 23 November 2000 by the Minister of Finance. This the application for a participant s licence, represented another milestone in the development submission of listing applications, trade confirmation of Labuan as an International Of fshore Financial or subsequent corporate announcements, can be Centre (IOFC) as the launching was in conjunction done via the web through its @LFX System which with the island’s 10th anniversary as an IOFC. went live on 15 October 2000. LFX acts as the platform for companies to raise funds and capital through the innovative listing of a range of multi- currency financial instruments.
LFX operates via a licensing system whereby participation on LFX is through its Listing Sponsors Megat Joha Megat and Trading Agents. Listing Sponsors are S Loganathan Abdul Rahman responsible for the financial instruments listed while General Manager Assistant General Manager T rading Agents are used by investors to trade in the instruments listed. T rading on LFX can be done 24 hours a day, 7 days a week although the confirmation of trades can only be done during LFX s operating hours.
As at 30 June 2001, there were 4 Listing Sponsors and 2 Trading Agents licensed by LFX Inc. The Listing Sponsors are Multimedia Development Corporation Sdn Bhd (MDC), K & N Kenanga Holdings Bhd, Kuala Lumpur City Securities Sdn Bhd and AMMB International (Labuan) Ltd. The two trading agents are K & N Kenanga Holdings Bhd and Kuala Lumpur City Securities Sdn Bhd.
Still being in the initial stages of operations, KLSE
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as sole shareholder, increased the paid-up capital of LFX Inc from USD100,000 to USD2 million on 29 June 2001.
As a web-based Exchange, LFX offers participants fast and efficient access to the world s capital markets.
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Securities Clearing Automated Network Services Sdn Bhd
Fathi Ridzuan Azman Shah Md Yaman Ungku A Razak Ahmad Fauzi Legal Advisor, Lim Lean Beng Ungku A Rahman Assistant General Manager, Corporate Affairs, Senior Manager, General Manager Finance & Administration Legal & Compliance Clearing
The Malaysian securities industry has witnessed review are: many changes and developments which have brought many enhancements for the benefit of the Settlement Cycle of T + 3 investors, the market participants and the nation as The most notable development in the year 2000 a whole. In view scansof such rapid changes and with regard to the clearing and settlement developments SCANS is continuing to assume a infrastructure is in respect of the move from a more active role in the securities industry, T+5 settlement period to a shorter settlement particularly in respect to the clearing and settlement period of T+3. This was implemented on 20 of Market Contracts and other services which would December 2000. serve to benefit the industry. The conversion to T+3 on 20 December 2000 was smooth and orderly. The successful In conjunction with this, SCANS has undertaken a implementation of T+3 represented great efforts number of activities/projects during the financial across the entire securities industry. There was a year to further enhance and strengthen the high degree of coordination, cooperation and infrastructure services of the local market and these synchronisation among the industry participants activities/projects. The significant developments to ensure a smooth transition to the shorter which SCANS achieved during the year under settlement period. Extensive conversion tests 59 pg1-78.qxd 1/2/02 11:49 AM Page 60
conducted in the months prior to the and not the Direct Business Contracts. The implementation of T+3 served as a gauge of new rate aims to improve liquidity and promote participants preparedness for the switch to the ef ficient price discovery of the stockmarket, shortened settlement cycle, thus allowing hence making KLSE and Malaysia a more participants to adjust to new processing attractive investment destination for all routines. investors.
The T+3 settlement cycle will create a much stronger and resilient settlement system which will maximise investors confidence in our market and enhance our competitiveness with that of other markets world wide. The benefits of implementing T+3 include reducing operational, credit, market and systemic risk. T+3 also standardises the settlement system and places Malaysia in the ranks of other major exchanges in line with international settlement best practices.
Upload of Settlement Data into Desktop Banking Systems As part of the ongoing ef forts to improve the overall ef ficiency of the payment process, SCANS had implemented a process whereby the payment settlement data would be uploaded into the Desktop Banking Systems via diskette with ef fect from June 2001.
Reduction of Clearing Fee In line with the government and industry regulators commitment to liberalise the capital market, SCANS has implemented the new clearing fee rate with ef fect from 1 July 2001. The clearing fee has been reduced from the current rate of 0.05% to 0.04%, subject to a maximum of RM200 per contract. The new rate af fects only trades done on the Exchange
To improve the overall efficiency of the payment process, payment settlement data is uploaded into the Desktop Banking System.
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Malaysian Central Depository Sdn Bhd
The financial year under review witnessed the consolidation of the stockbroking industry and financial institutions and the creation of a new category of intermediaries known as Universal Brokers which are able to take on a wider range of activities and establish their own branch networks throughout the country. This resulted in the reduction of the number of MCD s Authorised Depository Agents and Authorised Direct Members (ADMs). In addition, these mergers and acquisitions among the participants gave rise to the conversion of some of the existing ADAs into branches and the cessation of a number of ADMs.
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Ahmad Aznan Nawawi Ungku A Razak Senior Vice President, Ungku A Rahman Corporate Affairs, General Manager Legal & Compliance
Chua Kong Khai Ang Ting Kang Nadzirah Abd Rashid V ice President, V ice President, Senior Manager, Depository Information Technology Finance & Administration
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its participants. The new manuals superseded the previous versions issued in 1995, and are aimed at strengthening the CDS operations of ADAs and ADMs.
Ef fective 2 January 2001, all Provisional Allotment Letters (P ALs) are prescribed into the CDS. The prescription process has been expedited to enable the listed companies to obtain their funds sooner and the investors to obtain their new securities faster .
Operational Update During this period, the number of CDS accounts opened was 77,336 (i.e. an average of 6,444 per
At the MCD counter, MCD s staff members are on hand month) bringing the total number of accounts in the to assist investors with their CDS related queries. CDS to 2.78 million as at 30 June 2001.
The financial period from 1 July 2000 to 30 June 2001 saw the number of securities immobilised in the Central Depository System (CDS) increase from 17 9.8 billion for the previous year to 196.3 billion Developments During the Year securities. In facilitating the on-going mergers, MCD introduced a new facility called Interbranch During this financial period, the CDS facilitated the T ransaction (IBT) on settlement of 34.9 billion securities traded on the 20 November 2000. The main objective of this stock exchanges and the movement of more than facility is to allow depositors to perform CDS 3 9.4 billion securities by way of the ordinary transaction requests such as deposits, transfers, transfer facility . updating and closure of accounts, account balance inquiries and printing of ad-hoc statements at the M C D s services are utilised by a total of 64 share ADA branch office other than the branch at which registrars, representing 812 public listed companies, the relevant account is maintained. 809 of which are listed on the KLSE and 3 on the Malaysian Exchange of Securities Dealing and MCD signed a service level agreement on the Automated Quotation (MESDAQ). During the financial Electronic Share Application (ESA) facility with the period, a total of 1 3,241 Record of Depositors MIDF Corporate and Consultancy Services on 8 (RODs) detailing investor holdings in the CDS were March 2001. This is in addition to a similar produced upon issuers requests. agreement between MCD and the Malaysian Issuing House Sdn Bhd (MIH) which was signed on 16 July 1999. The ESA facility provides investors with Compensation Scheme and Insurance an alternative method for applying for shares of MCD maintains a Compensation Scheme for the Initial Public Of ferings (IPOs) via Automatic Teller purpose of settling claims by depositors against the Machines (ATMs) of participating financial company, its authorised depository agents and institutions without having to complete the IPO nominees. The scheme is funded by the subscription forms. Compensation Fund of RM50 million, and a crime and professional liability insurance policy of RM25 During the period, MCD issued new sets of the million. In addition, all ADAs are required to procedures manual for its ADAs and ADMs after maintain adequate insurance coverage in the form conducting extensive updates and amendments and of crime and professional liability insurance. taking into consideration the views and feedback of
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KLSE-Bernama Real-Time Information Services Sdn Bhd
Information is crucial in promoting informed investing. 1 of the ways to optimise resources and profitability in today s rapidly changing market is to act on the right information at the right time. Whether it is for an individual investor who is building a securities portfolio or a research house which needs information to build a database for investment analysis, KULBER intends to become the premier real-time and delayed market information provider of the full range of information needs of the investing community.
As such, KULBER which has a local and international subscriber base, continuously explores new avenues to improve its services by taking advantage of the latest technological innovations in its mission to be a disseminator of information which is: Accessible Secure Accurate Af fordable T imely
As a provider of such information, KULBER will be contributing towards enhancing investors knowledge and understanding of the Malaysian market, thus encouraging investments in Malaysian companies. kulber 64 pg1-78.qxd 1/2/0211:50AMPage65 msrs MSRS anticipateshandlingagreater volume ofcorporateactionactivities. Sdn Bhd Malaysian ShareRegistrationServices As economicconditionsimprove, General Manager Ahmad Daud Abdul Nasir bonus issuesorspecialissuetoentitled which willmostlikelybeintheformofrightsissues, to facilitatetheimpendingrestructuringexercises capital restructuringisbyyear2003.MSRSexpects respectively. companies mustbeRM60millionandRM40 paid-up capitalforMainBoardandSecond s KLSE volume ofcorporateactionactivities.Inlinewiththe better resultsinthenearfuturewithincreased As economicconditionsimprove,weanticipate its clientcompanies. providing newtechnologicallyadvancedservicesto shall continuebeintheforefrontofindustry Being thelargestshareregistrarinMalaysia,MSRS providing supportservicestounittrustcompanies. client companies.MSRSisalsointheprocessof s enhance accessibilitytoinformationonMSRS w w web-site, w shareholder informationviatheInternetthroughits MSRS hasalsoembarkedonthedisseminationof their bankaccountelectronically. dividend monieseitherbychequeorcrediting are giventheopportunitytochoosereceive electronic paymentsystemwherebyshareholders alternative modeofdividendpaymentthroughan During theyearunderreview, Kuala LumpurStockExchangeAnnualReport new ListingRequirements,theminimum The deadlineforcompliancewiththe .msrssb.com. MSRS introducedan This willfurther 2001 pg1-78.qxd 1/2/02 11:50 AM Page 66
Security Services KLSE Property Management provides security services to the KLSE Group. These services include:
Physical security This covers the protection of the premises, property and people. Physical security involves KLSE Property the use of physical barriers, manpower and complementary services as well as electronic Management Sdn Bhd technology in the form of closed-circuit television, alarms systems and access control to provide the required protection.
KLSE Property Management Sdn Bhd, formerly Information security known as KLSE Realty Sdn Bhd, is a wholly owned This deals with the protection of proprietary or subsidiary of KLSE. KPM was activated as an sensitive information. operating entity ef fective 1 May 2000.
The principal activities of KLSE Property Management are as follows:
Property Management KLSE Property Management provides management services with respect to the maintenance and enhancement of the KLSE building infrastructure and its facilities. kpm Abdul Razak Azmi Othman Mohd Amin Manager, General Manager Building Management
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Kuala Lumpur Stock Exchange Annual Report 2001
The Board of Governors is assisted by a Working Committee comprising KLSE Group staff from all levels. The Working Committee implements activities in line with the objectives of YBSKL. The Working Committee is assisted by the KLSE Group Community Club, which comprises volunteers within the KLSE Group. The Club provides the manpower for the activities of YBSKL.
Yayasan BSKL Activities/Programmes Since its establishment in 1998, Yayasan BSKL has adopted a comprehensive approach in contributing to community development. To date, Yayasan BSKL has worked with over 250 community organisations Background throughout Peninsular Malaysia, including Sabah Yayasan BSKL (YBSKL) is a foundation established and Sarawak contributing over RM2 million to by Kuala Lumpur Stock Exchange (KLSE) in 1998 various community programmes. to provide assistance, support and financial aid for The reach and diversity of Yayasan BSKL community and educational activities, projects and contributions and programmes have touched many programmes with the objective of improving the lives from those who are terminally ill to the elderly, standard of living, skills and professionalism of orphans and those with special needs. Malaysians. Community programmes which have been YBSKL obtained tax-exempt status in May 1999 organised range from visits to homes and vice versa, from the Inland Revenue Board under Section 44 educational tours and camps, telematches and (6) and Schedule 6, Paragraph 13 of the Income excursions to places of interests. Tax Act 1967. Funds in YBSKL started with voluntary salary deductions by KLSE Group staff. Complementing these various community Subsequently, the KLSE Group provided a programmes, Yayasan BSKL has also offered study launching grant to YBSKL to fund its community loans to 62 students in local public universities. This development projects. year, for the first time, YBSKL is offering the Study Loan Scheme to those pursuing a Diploma course. To YBSKLs Vision make the Study Loan Scheme even more attractive YBSKL s vision is to assist in the balanced this year , YBSKL has also reclassified the interest- development of a caring Malaysian community, free Study Loan to a convertible loan. This means through various ef forts including to: that upon procuring a degree, qualified students Provide assistance to the members in society would have the opportunity to have these loans with special requirements converted to full scholarships. Provide funds and support to Malaysians YBSKL has also launched for the first time, the pursuing any level of education tutoring assistance programme for children of Organise and support schemes and projects for community homes preparing for major the promotion of the well being and welfare of examinations. This programme is offered to children the special members in society in community homes nationwide. Provide assistance to voluntary organisations, having the same charitable objectives of This year, YBSKL also played an active role in Yayasan BSKL hosting The Edge Kuala Lumpur Annual Rat Race Encourage active participation from the KLSE 2001, an event which saw corporate executives staf f in all activities of Y ayasan BSKL running a route within the city for charity. For this run, RM450,000.00 was collected for distribution to Management of YBSKL 5 community organisations, namely, Malaysian YBSKL is governed by a Board of Governors. Paralympic Council, Spastic Children s Association There are 8 members of the Board of Governors of Selangor and Wilayah Persekutuan, The National comprising the Executive Chairman of the Kuala Autism Society of Malaysia, The National Kidney Lumpur Stock Exchange, 2 KLSE Committee Foundation of Malaysia and HOSPIS Malaysia. Members, the President of KLSE and 4 external For the rest of the year , YBSKL will continue to members. They are appointed by the KLSE organise fun and creative programmes including Committee. visits to public listed companies, environmental awareness camps and festive celebrations.
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Date Activities 15 July 2000 Sukaneka YBSKL 2000 10 homes participated. 28 August 2000 Contributions to 25 charitable organisations at the KLSE Group Charity Luncheon held in conjunction with National Day. 29 September 2000 English Camp for orphanages at D Ark Training and Resort. 5 homes participated. 1 October 2000 14 October 2000 Contributions of educational materials to Kiwanis Down Syndrome Foundation (Petaling Jaya Centre) in conjunction with its Concert cum Graduation ceremony. 17 October 2000 Blood donation campaign for Hospital Kuala Lumpur. 11 November 2000 Visit to the T ara Bhavan orphanage in conjunction with Deepavali. 25 November 2000 Contributions to 20 charitable organisations in conjunction with KLSE Members Dinner 2000. 14 December 2000 Majlis Berbuka Puasa at KLSE with residents of Pertubuhan Anak Yatim dan Ibu T unggal, Kampung Medan, Petaling Jaya. 15 January 2001 Contributions to 30 charitable organisations in conjunction with KLSE Group Annual Staff Hari Raya and Chinese New Year Lunch. 17 February 2001 A day of activities with residents of children’s and old folks’ homes in conjunction with Hari Raya and Chinese New Year. 24 March 2001 Educational visit to Petronas Science Centre and National Planetarium for 2 children s homes. April 2001 Launch of Tutoring Programme for children of community homes preparing for major examinations. 23 May 2001 Blood donation campaign for Hospital Kuala Lumpur. May 2001 Launch of Convertible Interest-free Study Loan Scheme for the academic year 2001/2002. 9 June 2001 First aid training for KLSE Group Community Club Members. 16 June 2001 Educational visit to Kuantan Flour Mills Bhd for children from Rumah Anak-anak Tengku Ampuan Fatimah Kuantan, Pahang. 30 June 2001 Seminar Kerjaya di Pasaran Saham jointly organised with YA TIM for 40 poor students from several schools in the district of Bentong, Pahang. 21 July 2001 Educational visit to Oriental Food Industries in Melaka for 30 students from Rumah Anak Yatim Islam Darul Ai-Tam, Melaka. 23 July 2001 Presentation ceremony and press conference for the Convertible Interest-Free Study Loan Scheme for the academic year 2001/2002. 3-5 August 2001 Motivational and English Camp for 60 youths from 5 homes at Nur Lembah Pansun. 8 August 2001 Yayasan BSKL hosted the Annual Kuala Lumpur Rat Race for Charity 2001. The funds raised were equally distributed amongst 5 charitable organisations. 29 August 2001 Contributions to 30 charitable organisations in conjunction with the 44th Merdeka Day celebration. 22 September 2001 Sukaneka YBSKL 2001 for 204 children from 10 community homes.
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Kuala Lumpur Stock Exchange Annual Report 2001
Contributions Details of contributions to various causes as at 30 September 2001 are as follows: N o Categories/Causes Amount (RM) Percentage (%) 1. Children s homes 702,502 33.04 2. Senior citizens 164,302 7.73 3. Educational support 339,752 15.98 4. Special care 862,846 40.58 5. Community projects 56,629 2.67 TO TA L 2,126,031 100
Left T op to Bottom: Educational visit to Oriental Food Industries Holdings Berhad.
V isit to orphanage in conjunction with Deepavali.
Majlis Berbuka Puasa.
Right Top to Bottom: A day with the children and old folks.
Sukaneka YBSKL 2001.
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Research Institute of Investment Analysts Malaysia
The introduction of the KLSE s new Listing Requirements in February 2001 has resulted in tremendous increase in the activites of RIIAM as it was appointed the sole provider of the Mandatory Accreditation Programme (MAP) for directors of public listed companies. RIIAM has also been directly involved in the organisation of various roadshows, workshops and a major conference in relation to the new Listing Requirements. Additionally, RIIAM continued to conduct programmes throughout the year for markets participants, investors and the general public. RIIAM also organised in-house programmes for the staff of the KLSE Group.
RIIAM organised more than 130 training sessions/ programmes, which include in-house programmes for the KLSE Group staff and public programmes for various target audiences in the industry. This works out to an average of 11 sessions per month. A substantial number of the programmes for markets professionals were specially designed seminars/workshops on Malaysian Accounting Standards Board (MASB) standards and the Mandatory Accreditation Programme (MAP) sessions for directors of public listed companies. W ith the introduction of the Continuing Professional Education (CPE) for dealers representatives by the Securities Commission in January 2001, RIIAM has been recognised as a training provider for CPE.
The most significant activity for RIIAM is the implementation of the MAP for directors of public listed companies. Pursuant to the introduction of the new Listing Requirements in February 2001, RIIAM has been assigned by KLSE to conduct the MAP which consists of a one and a half day seminar. RIIAM has been conducting the MAP sessions since April 2001. Apart from the weekly MAP sessions for 70 the public, RIIAM has also conducted in-house pg1-78.qxd 1/2/02 11:50 AM Page 71
Kuala Lumpur Stock Exchange Annual Report 2001
Abdullah Naib Director riiam
MAP sessions for several large corporate groups as resounding success as it allows the investing public requested. More than 3,000 directors of public listed the opportunity to interact and provide comments companies have attended the MAP to date. on investment related issues.
In September 2000, RIIAM assisted KLSE to organise the Investors Week 2000. RIIAM was tasked to organise Investor Education talks, which comprised of various topics ranging from basic information on the stock market and investment to professional topics like derivatives and other instruments. The talks were an overwhelming success. Apart from Investors Week, together with KLSE, RIIAM has participated in numerous roadshows. The roadshows/exhibitions have been a
As the training arm of KLSE and centre for professional development and investor education in the securities industry, RIIAM is promoting high standards of competency in analysis and research activities.
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RIIAM has assisted KLSE in organising road-shows beginning 2000. In addition, ASCM will of fer 5 to introduce the new Listing Requirements scholarships to employees of stockbroking throughoutcompanies to pursue the diploma programme. the country. A one day conference on the new Listing Requirements was organised in March 2001. KLSE-RIIAM Information Service (KLSE-RIS) The conference was very well received with more recorded an increase in the number of users and than 500 participants. RIIAM has also assisted the Institute of Internal Auditors Malaysia to organise workshops on Statement on Internal Control: Guidance for directors of public listed companies .
The RIIAM Diploma in Investment Analysis programme has come into its eighth year in 2001 with classes conducted in Kuala Lumpur, Penang and Kuching. The collaboration with University Putra Malaysia to conduct the Diploma programme for its students has entered into its second year with an increasing number of students taking the programme. Since the collaborative ef fort has proven to be successful, RIIAM is approaching other public universities with the view of having similar collaborations.
KLSE is offering 15 scholarships each year for qualified candidates of the RIIAM diploma programme. This is further strengthened with the commitment of the Association of Stockbroking Companies in Malaysia (ASCM) to contribute awards and cash prizes for the top 3 graduates of the diploma programme for 5 consecutive years
During the year, RIIAM organised more than 130 training programmes which included in-house programmes for KLSE Group staff and public programmes for various target groups.
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Kuala Lumpur Stock Exchange Annual Report 2001
Calendar of Events
20 November 2000 held later that evening at Hotel Nikko Kuala Inter-branch Transaction Lumpur. Malaysian Central Depository introduced a new facility called Inter-branch T ransaction (IBT) with ef fect from 20 December 2000 20 November 2000. Shorter T + 3 Delivery and Settlement Period The T + 3 delivery and settlement period was W ith the implementation of IBT, depositors can now introduced on 20 December 2000. The benefit of T perform their CDS transactions such as transfers, + 3 extends to various industry participants. deposits, updating of accounts, closure of accounts, Investors will particularly benefit from the shorter account balance enquiries and printing of ad-hoc settlement period which reduces risk and exposure statements at any branch of fices without having to as the shares and cash are settled earlier. go to the home branch where the CDS account is maintained. 2 January 2001 Electronic Management of Provisional 23 November 2000 Allotment Letters Launch of Labuan International All Provisional Allotment Letters (PALs) in relation Financial Exchange to abridged prospectuses despatched on or after 2 Labuan International Financial Exchange (LFX) was January 2001 will be allotted and managed established on 23 November 2000 in Labuan, electronically under the Central Depository System Malaysia s international of fshore financial centre. LFX is primarily web-based with all functions of the Exchange from the application for a market participant s licence to the trading of financial instruments and the dissemination of information done on the @ LFX system via the Internet.
25 November 2000 24th KLSE Annual General Meeting & Annual Members Dinner The KLSE s 24th Annual General Meeting was held on 25 November 2000 at Exchange Square in Bukit Kewangan, while the Members Dinner 2000 was
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Calendar of Events
unless specifically exempted under the law or MCD s V isit by Seri Paduka Baginda Yang Dipertuan rules. The main objective of the immobilisation is to Agong and Raja Permaisuri Agong ensure greater security and operational ef ficiency in KLSE was honoured to host a visit by the royal managing listed securities. couple on 13 February 2001. The royal couple was briefed on the current and future developments of the KLSE and was also given a guided tour of the 22 January 2001 Information Gallery. New Listing Requirements The new KLSE Listing Requirements were issued as an integral part of KLSE s continuous ef forts to 16 February 2001 develop a dynamic and robust stock market as well Guidance on Internal Controls as to promote the credibility and ef ficiency of our The Taskforce on Internal Controls, established by market to benefit listed companies, directors, major KLSE, issued the guidance Statement on Internal shareholders and minority investors alike. Control: Guidance for Directors of Public Listed Companies , which was aimed at guiding directors of listed companies in making disclosures on the 31 January 2001 state of internal control of their companies in their Issuance of Practice Notes annual reports as required by paragraph 15.27(b) of KLSE issued Practice Notes to assist compliance the new Listing Requirements. with the revamped Listing Requirements on 31 January 2001 and on 1 June 2001. The main 20 April 2001 Yayasan BSKL Convertible Interest-Free Study Loan Scheme Y ayasan BSKL announced the introduction of its Convertible Interest-Free Study Loan Scheme for the 2001/2002 academic year, following the successful implementation of its inaugural Study Loan Scheme which was launched last year.
9 May 2001 KLSE Annual Dialogue Sessions KLSE commenced its annual dialogue sessions objective of the Practice Notes is to promote better with industry partners on 9 May 2001. Up to understanding of the new Listing Requirements October 2001, amongst public listed companies, directors, advisers a total of 16 sessions have been held. The and other industry participants to facilitate dialogues are for the purpose of discussing current consistent application of the new Listing issues of mutual interest relating to all parties Requirements.
13 February 2001
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Kuala Lumpur Stock Exchange Annual Report 2001
14 June 2001 KLSE Smart Investor Roadshows KLSE Smart Investor Roadshows held in Miri, Sarawak from 14-15 June 2001 and in Kuantan, Pahang from 29-30 June 2001 aimed to educate investors on the fundamentals of smart investing and to keep investors and the general public updated on the latest developments in the stock market and securities industry.
concerned. 21 June 2001 Inaugural Listing at LFX 19 May 2001 The inaugural listing on the Labuan International KLSE Family Day 2001 Financial Exchange (LFX) took place on 21 June A total of 2,779 persons, which included staf f and 2001, with the secondary listing of a USD250 their family members participated in this annual get- million bond issue by 1st Silicon (Labuan) Inc. The together, held on 19-20 May 2001 at Port Dickson. inaugural listing capitalises on the capability of LFX It was a fun-filled and memorable event for the staf f to cater for the listing of a wide variety of multi- and their family members. currency instruments.
11 June 2001 Integrated Derivatives Exchange Benefits Market, Industry
27 June 2001 MESDAQ set to join KLSE Group KLSE and the Malaysian Exchange of Securities Dealing Automated Quotation Bhd (MESDAQ) The establishment of Malaysia Derivatives signed a memorandum of understanding to set out Exchange Bhd the result of the merger between the agreement for both parties to enter into detailed the Kuala Lumpur Options and Financial Futures negotiations to facilitate the consolidation exercise. Exchange and the Commodity and Monetary Exchange of Malaysia signified the formation of a The objective of integrating the existing exchanges single derivatives exchange on 11 June 2001. The into a single exchange is to enhance the ef ficiency integrated derivatives exchange will of fer a wide and competitiveness of the Malaysian capital range of derivatives products and services including market and securities industry. KLSE Composite Index Futures and Options, Crude Palm Oil Futures and Kuala Lumpur Inter-Bank Of fered Rate Futures.
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Calendar of Events
6 July 2001 representatives of stockbroking companies and KLSE Group Staff Annual Dinner custodian banks. A total of 1,500 KLSE Group staf f and their spouses attended the KLSE Group Staff Annual The workshop covered a comprehensive range of Dinner 2001 which was held at Mandarin Oriental. It issues including strategic initiatives to enhance was a memorable night for the staf f who were infrastructure support, market intermediaries entertained by homegrown talents and professional operations and consolidation of market institutions. artistes.
18 July 2001 Enhanced Settlement Service for Institutional Investors KLSE enhanced its settlement service to local and foreign institutional investors with the expansion of its
Institutional Settlement Service (ISS) to include direct business transactions. The implementation of ISS for direct business transactions is a significant step in ensuring local and foreign institutional investors continue to have access to a secure and ef ficient clearing and settlement system whilst enhancing the DVP environment in line with international best practices.
14 July 2001 Clearing, Settlement & Depository Workshop Malaysian Central Depository Sdn Bhd (MCD) and Securities Clearing Automated Network Services Sdn Bhd (SCANS) organised the inaugural Clearing, Settlement & Depository Workshop on 14 July 2001 which was attended by 160 participants comprising
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Kuala Lumpur Stock Exchange Annual Report 2001
26 July 2001 Familiarisation visits to Public Listed Companies As part of KLSE s ef forts to promote understanding, goodwill and closer ties with companies listed on the Exchange, the KLSE Group visited Kumpulan Guthrie Berhad on 26 July 2001. Subsequently, a similar visit was made to Dialog Group Berhad on 6 August 2001 and several others are planned for this year .
8 August 2001 Annual Kuala Lumpur Rat Race for Charity 2001 Yayasan BSKL hosted the Annual Kuala Lumpur Rat Race for Charity 2001, with funds raised at the event contributed to community organisations.
The Race saw a total of 46 companies fielding 300 participants. A total of RM450,000.00 was collected and subsequently donated to Hospis Malaysia, National Autism Society of Malaysia, Malaysian Paralympic Council, National Kidney Foundation and Spastic Children s Association of Selangor & Federal Territory .
21 July 2001 12th Annual KLSE-FPLC Golf Tournament & Lunch The 12th Annual KLSE-FPLC Golf Tournament & Lunch was held on 21 July 2001 at Palm Garden Golf Club, IOI Resort, Putrajaya.
23 July 2001 CLOB Solution Concluded The comprehensive solution to regularise securities formerly traded under the Central Limit Order Book (CLOB) achieved the objective of maintaining a fair and orderly market.
The comprehensive solution, amongst others, included a 13-month staggered release of CLOB traded securities from July 2000 to July 2001. The release of the final balance of CLOB traded securities under the 13-month staggered release was completed on 23 July 2001.
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Statutory regulation alone cannot promote the development of excellent standards in corporate governance. Developing these standards takes the combination of regulation by the authorities and self-regulation by industry KLSE_E_Accs_August2001 1/2/02 12:12 PM Page 79
Kuala Lumpur Stock Exchange Annual Report 2001
Financial Statements
80 Consolidated Income Income Statement Report of the Committee Statement 94 84 88 Statement of Changes in Statement by The Committee Consolidated Statement of Equity Changes in Equity 84 95 Statutory Declaration 89 Cash Flow Statement Consolidated Cash Flow 85 Statement 96 Auditors Report Notes to The Financial 92 Statements 86 Balance Sheet Consolidated Balance Sheet 93 87 KLSE_E_Accs_August2001 1/2/02 12:12 PM Page 80
Report of The Committee
The Committee hereby submit their report together with the audited financial statements of the Exchange and the Group for the financial year ended 30 June 2001.
Principal Activities The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting the business of a stock exchange in Malaysia.
The principal activities of the subsidiaries are described in Note 9 to the financial statements.
There were no significant changes in these activities during the financial year except for the addition of commodity and interest rate futures and options clearing and exchange activities arising from the merger of the business operations of Commodity and Monetary Exchange of Malaysia ( COMMEX ) with Malaysia Derivatives Exchange Bhd. ( MDEX ) (formerly known as The Kuala Lumpur Options & Financial Futures Exchange Bhd.).
Results
Group Exchange RM RM
Net surplus for the year 24,152,620 36,574,686
Reserves and Provisions There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the Consolidated Statement of Changes in Equity and the transfers made to the Compensation Fund of Malaysian Central Depository Sdn Bhd as disclosed in Note 21 to the financial statements.
Bad and Doubtful Debts Before the income statements and balance sheets were made out, the Committee took reasonable steps to ascertain that action had been taken in relation to the writing of f of bad debts and the making of provision for doubtful debts and satisfied themselves that all known bad debts had been written of f and that adequate provision had been made for doubtful debts.
At the date of this report, the Committee is not aware of any circumstances which would render the amounts written of f as bad debts or provided for as doubtful debts in the financial statements of the Exchange and the Group inadequate to any substantial extent.
Current Assets Before the income statements and balance sheets were made out, the Committee took reasonable steps to ensure that any current assets which were unlikely to be realised in the ordinary course of business including their values as shown in the accounting records of the Exchange and the Group have been written down to an amount which they might be expected so to realise.
At the date of this report, the Committee is not aware of any circumstances which would render the values attributed to the current assets in the financial statements of the Exchange and the Group misleading.
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Kuala Lumpur Stock Exchange Annual Report 2001
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Report of The Committee
Valuation Methods At the date of this report, the Committee is not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Exchange and the Group misleading or inappropriate.
Contingent and Other Liabilities At the date of this report, there does not exist:
(a) any charge on the assets of the Exchange or the Group which has arisen since the end of the financial year which secures the liabilities of any other person; or
(b) any contingent liability of the Exchange or the Group which has arisen since the end of the financial year.
No contingent or other liability 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 Committee, will or may substantially af fect the ability of the Exchange or the Group to meet their obligations when they fall due.
Change of Circumstances At the date of this report, the Committee is not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Exchange or the Group which would render any amount stated in the financial statements misleading.
Items of an Unusual Nature The results of the operations of the Exchange and the Group during the financial year were not, in the opinion of the Committee, substantially af fected 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 Committee, to af fect substantially the results of the operations of the Exchange or the Group for the financial year in which this report is made.
Significant Events The significant events during the financial year are disclosed in Note 30 to the financial statements.
Subsequent Event The subsequent event is disclosed in Note 31 to the financial statements.
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Kuala Lumpur Stock Exchange Annual Report 2001
Committee Members The Committee Members who served since the date of the last report are:
Dato Mohammed Azlan bin Hashim Datuk Mohaiyani binti Shamsudin Chan Guan Seng Tan Kim Leong Abdul Kadir bin Haji Md Kassim Abdul Wahab bin Nan Abidin Peter Leong Tuck Leng (elected on 25 November 2000 and effective 1 January 2001) Y usli bin Mohamed Yusof f (elected on 25 November 2000 and effective 1 January 2001) Abdul Jabbar bin Abdul Majid (appointed on 18 January 2001) Dato Ranita binti Mohd. Hussein (retired on 31 December 2000) Johari bin Hassan (retired on 31 December 2000) Abang Zainal Abidin bin Abang Ahmad (retired on 31 December 2000)
Dato Mohammed Azlan bin Hashim, Tan Kim Leong, Abdul Kadir bin Haji Md Kassim and Abdul Jabbar bin Abdul Majid were appointed by the Minister of Finance pursuant to Section 8(3) of the Securities Industry Act, 1983 and are not subject to retirement by rotation.
Pursuant to Article 10.3(1) of the Exchange s Articles of Association, two of the current Elected Committee Members are required to retire at the 25th Annual General Meeting. Pursuant to Article 10.3(2), the two so retiring are Abdul Wahab bin Nan Abidin and Chan Guan Seng. Pursuant to Article 10.3(3), both gentlemen are eligible for re-election.
Committee Members Benefits During and at the end of the financial year, no arrangements subsisted to which the Exchange or its subsidiaries is a party with the object of enabling Committee Members of the Exchange to acquire benefits by means of the acquisition of shares in or debentures of any other body corporate.
Since the end of the previous financial year, no Committee Member of the Exchange has received or become entitled to receive a benefit (other than the fixed salary of a full-time employee of the Exchange, reimbursement of expenditure incurred in attending Committee Meetings in the form of meeting allowances and any other benefits in kind as disclosed in the financial statements) by reason of a contract made by the Exchange or a related corporation with the Committee Member or with a firm of which the Committee Member is a member, or with a company in which the Committee Member has a substantial financial interest.
Committee Members Interests The Exchange is a company limited by guarantee and, thus, has no shares in which the Committee Members could have an interest. Similarly, the Exchange has not issued any debentures.
None of the Committee Members in office at the end of the financial year had any interest in shares in its related corporations during the financial year.
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Statement by The Committee
W e, DATO MOHAMMED AZLAN BIN HASHIM and DATUK MOHAIYANI BINTI SHAMSUDIN, being two of the Committee Members of KUALA LUMPUR STOCK EXCHANGE, do hereby state that, in the opinion of the Committee, the financial statements set out on pages 86 to 117, give a true and fair view of the state of af fairs of the Exchange and of the Group as at 30 June 2001 and of their results and their cash flows for the year then ended, and have been properly drawn up in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards in Malaysia.
Signed on behalf of the Committee in accordance with a resolution of the Committee Members
D ATO MOHAMMED AZLAN BIN HASHIM
D ATUK MOHAIYANI BINTI SHAMSUDIN
Kuala Lumpur Dated: 18 September 2001
Statutory Declaration
I, DATO MOHD SALLEH BIN ABDUL MAJID, the officer primarily responsible for the financial management of KUALA LUMPUR STOCK EXCHANGE, do solemnly and sincerely declare that the financial statements set out on pages 86 to 117 are, to the best of my knowledge and belief correct, and I make this solemn declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the ) abovenamed DATO MOHD SALLEH ) BIN ABDUL MAJID at Kuala Lumpur in ) W ilayah Persekutuan on 18 September 2001 )D ATO MOHD SALLEH BIN ABDUL MAJID
Before me:
Commissioner for Oaths
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Kuala Lumpur Stock Exchange Annual Report 2001
Auditors Report
To the Members of KUALA LUMPUR STOCK EXCHANGE
W e have audited the financial statements set out on pages 86 to 117. These financial statements are the responsibility of the Committee Members. Our responsibility is to express an opinion on these financial statements based on our audit.
W e conducted our audit in accordance with approved Standards on Auditing in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Committee Members, as well as evaluating the overall financial statements presentation. W e believe that our audit provides a reasonable basis for our opinion.
In our opinion:
(a) the financial statements have been properly prepared in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards in Malaysia and give a true and fair view of:
(i) the state of af fairs of the Exchange and of the Group as at 30 June 2001 and of their results and their cash flows for the year then ended; and
(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements;
(b) the accounting and other records and the registers required by the Act to be kept by the Exchange and its subsidiaries of which we acted as auditors have been properly kept in accordance with the provisions of the Act.
W e have considered the financial statements and the auditors reports of all the subsidiaries of which we have not acted as auditors, as indicated in Note 9 to the financial statements, being financial statements that have been included in the consolidated financial statements.
W e are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Exchange are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for these purposes.
The auditors reports on the financial statements of the subsidiaries were not subject to any qualification or any adverse comment made under subsection (3) of Section 174 of the Act.
ARTHUR ANDERSEN & CO No AF 0103 Public Accountants
WONG KANG HWEE No 1116/01/02(J) 85 KLSE_E_Accs_August2001 1/2/02 12:12 PM Page 86
Consolidated Balance Sheet 30 June 2001
Note 2001 2000 RM RM
CURRENT ASSETS Cash and bank balances 17,407,580 5,849,900 Short term deposits 3 869,443,506 1,021,571,308 Receivables 4 62,236,011 56,271,817 Short term investments 5 88,535,404 Due from an associated company 544,182 Due from Compensation Fund 1,915,551
1,039,538,052 1,084,237,207
CURRENT LIABILITIES Short term borrowings 17 219,700 Taxation 41,746,828 66,842,762 Trade payables 8 93,162,717 2,429,524 Sundry payables 52,755,571 59,030,543
187,884,816 128,302,829
NET CURRENT ASSETS 851,653,236 955,934,378 ASSOCIATED COMPANY 10 5,179,745 OTHER INVESTMENTS 11 166,198,527 57,583,840 PROPERTY, PLANT AND EQUIPMENT 12 381,717,812 406,516,450 STAFF LOANS RECEIVABLE 13 38,923,147 26,231,414 INTANGIBLE ASSETS 14 21,150 RETIREMENT BENEFITS (14,041,806) (13,026,191) DEFERRED INCOME 15 (3,102,983) DEFERRED TAXATION 16 (34,000) (3,652,200) LONG TERM BORROWINGS 17 (1,757,600) LONG TERM LIABILITY 18 (48,874,376) (49,412,937) MINORITY INTERESTS (24,268,982) (46,516,847)
1,346,412,975 1,338,858,802
Represented by: MEMBERSHIP FEES 19 96,960,000 96,960,000 ACCUMULATED FUNDS 1,235,709,105 1,189,150,514 CAPITAL RESERVE 20 13,749,969 2,750,000 FOREIGN EXCHANGE RESERVE (6,099) (1,712)
1,346,412,975 1,288,858,802 COMPENSATION FUND 21 50,000,000
1,346,412,975 1,338,858,802
The accompanying notes are an integral part of this balance sheet.
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Kuala Lumpur Stock Exchange Annual Report 2001
Consolidated Income Statement for the year ended 30 June 2001
Note 2001 2000 RM RM
Revenue 22 183,378,898 436,425,361 Non-operating income 23 56,712,946 86,210,325
240,091,844 522,635,686 Staf f cost 2 4 (78,238,214) (77,139,092) Depreciation (36,364,380) (52,711,103) Other operating expenses 25 (74,016,422) (116,248,699)
Surplus from operations 51,472,828 276,536,792 Finance cost 26 (1,124,611) (2,190,319) Share of losses of associated company (500,583)
Surplus before taxation 50,348,217 273,845,890 Taxation 28 (25,133,493) (126,215,825)
Net surplus from ordinary activities 25,214,724 147,630,065 Minority interests (1,062,104) (8,202,741)
Net surplus for the year 24,152,620 139,427,324
The accompanying notes are an integral part of this statement.
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Consolidated Statement of Changes in Equity for the year ended 30 June 2001
Foreign Membership Capital exchange Accumulated fees reserve reserve funds Total RM RM RM RM RM
At 1 July 1999 93,950,000 1,062,795,750 1,156,745,750 Net surplus for the year 139,427,324 139,427,324 Contributions during the year 3,010,000 3,010,000 Currency translation differences (1,712) (1,712) T ransfer to capital reserve 2,750,000 (2,750,000) T ransfer to Compensation Fund (Note 29) (10,322,560) (10,322,560)
3,010,000 2,750,000 (1,712) (13,072,560) (7,314,272)
At 30 June 2000 96,960,000 2,750,000 (1,712) 1,189,150,514 1,288,858,802
At 1 July 2000 96,960,000 2,750,000 (1,712) 1,189,150,514 1,288,858,802 Net surplus for the year 24,152,620 24,152,620 Share premium from the merger of business operations of COMMEX with MDEX (Note 20) 10,999,969 10,999,969 Currency translation differences (4,387) (4,387) T ransfer to Compensation Fund (Note 29) (94,029) (94,029) Minority interest portion of MCD Compensation Fund reinstated (Note 21) 22,500,000 22,500,000
10,999,969 (4,387) 22,405,971 33,401,553
At 30 June 2001 96,960,000 13,749,969 (6,099) 1,235,709,105 1,346,412,975
The accompanying notes are an integral part of this statement.
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Kuala Lumpur Stock Exchange Annual Report 2001
Consolidated Cash Flow Statement for the year ended 30 June 2001
2001 2000 RM RM
CASH FLOW FROM OPERATING ACTIVITIES Surplus before taxation 50,348,217 273,845,890 Adjustment for: Share of loss of associated company 500,583 Depreciation 36,364,380 52,711,103 Property, plant and equipment written of f 1,283,701 22,096 Amortisation of intangible assets 860,106 Net (write-back of)/provision for bad and doubtful debts (14,604,803) 1,269,520 Preliminary and pre-operating expenses written of f 21,150 34,569 Goodwill on acquisition written of f 6,061,088 Net gain on sale of property, plant and equipment (437,879) (154,525) W rite back of provision for diminution in value of investment (9,563,345) Recreational club membership benefits written of f 309,095 129,112 Accretion of discount less amortisation of premium (482,835) (190,012) Provision for retirement benefits 4,301,365 7,163,192 Net gain on disposal of investments (1,020,881) (34,656,427) Interest income (41,053,806) (32,583,703) Interest expense 132,730 477,972 Gross dividend income (2,368,447)
Operating surplus before working capital changes 41,221,522 257,497,684 Decrease in receivables 12,344,566 56,274,277 Decrease in payables (17,744,130) (16,892,764) Decrease in amount due from associated company 544,182 257,683
Cash generated from operations 36,366,140 297,136,880 Interest paid (132,730) (407,620) Taxes paid (53,881,917) (45,083,437)
Net cash (used in)/generated from operating activities (17,648,507) 251,645,823
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Consolidated Cash Flow Statement for the year ended 30 June 2001
2001 2000 RM RM
CASH FLOW FROM INVESTING ACTIVITIES Net cash from acquisition of subsidiaries companies/net assets* 109,491,609 Dividends received 2,368,447 Increase in intangible assets (2,834) Purchase of unquoted bonds (195,786,419) (47,977,235) Purchase of club memberships (197,858) (265,835) Increase in loans granted to staf f (12,691,733) (11,216,333) Interest received 36,823,318 30,250,974 Purchase of property, plant and equipment (10,452,127) (15,711,310) Proceeds from sale of property, plant and equipment 524,185 290,920 Net sale of investment securities 191,035,729
Net cash (used in)/generated from investing activities (72,289,025) 148,772,523
CASH FLOW FROM FINANCING ACTIVITIES Transfer to Compensation Fund (50,094,029) Redemption of preference shares from minority interest of a subsidiary (3,375,000) Decrease in long term liability (538,561) (538,561) Increase in membership fees 3,010,000
Net cash used in financing activities (50,632,590) (903,561)
Net (decrease)/increase in cash and cash equivalents (140,570,122) 399,514,785 Cash and cash equivalents at beginning of year 1,027,421,208 627,906,423
Cash and cash equivalents at end of year 886,851,086 1,027,421,208
CASH AND CASH EQUIVALENTS COMPRISE: Cash and bank balances 17,407,580 5,849,900 Short term deposits 869,443,506 1,021,571,308
886,851,086 1,027,421,208
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Kuala Lumpur Stock Exchange Annual Report 2001
* Net cash from acquisition of subsidiary companies/net assets:
2001 RM
Cash and bank balances 5,762,801 Short term deposits 103,728,808 Trade receivables 422,980 Sundry receivables 1,072,108 Investments 26,000 Property, plant and equipment 1,426,150 Trade payables (90,359,804) Sundry payables (2,476,752) Deferred income (3,121,170) Taxation (34,290) Short term borrowing (219,700) Long term borrowing (1,757,600)
Net assets acquired 14,469,531 Investment in associated company (4,530,619) Goodwill on acquisition 6,061,088
Total consideration 16,000,000
Less: Purchase consideration Issuance of B preference shares (16) Issuance of C preference shares (15) Share premium on preference shares issued (10,999,969) Balance payable to COMMEX members (included in sundry payables) (5,000,000)
Cash and cash equivalents acquired 109,491,609
Net cash from acquisition 109,491,609
The ef fect of the said acquisitions on the financial results of the Group is not presented as the amount involved is not material.
The accompanying notes are an integral part of this statement.
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Balance Sheet 30 June 2001
Note 2001 2000 RM RM
CURRENT ASSETS Cash and bank balances 266,299 2,439,350 Short term deposits 3 419,584,626 448,509,998 Receivables 4 20,707,120 23,198,264 Short term investments 5 88,535,404 Due from subsidiaries 6 40,949,761 136,228,373
570,043,210 610,375,985
CURRENT LIABILITIES Taxation 38,926,748 47,096,989 Due to subsidiaries 7 1,322,153 Sundry payables 28,638,809 44,446,640
67,565,557 92,865,782
NET CURRENT ASSETS 502,477,653 517,510,203 SUBSIDIARIES 9 39,761,607 37,866,092 OTHER INVESTMENTS 11 85,549,535 29,466,208 PROPERTY, PLANT AND EQUIPMENT 12 358,044,915 380,199,417 STAFF LOANS RECEIVABLE 13 37,037,388 24,656,592 RETIREMENT BENEFITS (9,383,740) (8,646,279) DEFERRED TAXATION 16 (3,601,000) LONG TERM LIABILITY 18 (48,874,376) (49,412,937)
964,612,982 928,038,296
Represented by: MEMBERSHIP FEES 19 96,960,000 96,960,000 ACCUMULATED FUNDS 867,652,982 831,078,296
964,612,982 928,038,296
The accompanying notes are an integral part of this balance sheet.
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Kuala Lumpur Stock Exchange Annual Report 2001
Income Statement for the year ended 30 June 2001
Note 2001 2000 RM RM
Revenue 22 165,680,364 421,937,027 Non-operating income 23 26,679,562 59,348,665
192,359,926 481,285,692 Staf f cost 2 4 (50,674,713) (54,877,945) Depreciation (29,286,476) (41,793,432) Other operating expenses 25 (49,604,107) (41,632,085)
Surplus from operations 62,794,630 342,982,230 Finance cost 26 (28,659) (42,053)
Surplus before taxation and exceptional item 62,765,971 342,940,177 Exceptional item 27 (5,329,285) (33,411,115)
Surplus before taxation 57,436,686 309,529,062 Taxation 28 (20,862,000) (104,159,000)
Net surplus for the year 36,574,686 205,370,062
The accompanying notes are an integral part of this statement.
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Statement of Changes in Equity for the year ended 30 June 2001
Membership Accumulated fees funds Total RM RM RM
At 1 July 1999 93,950,000 625,708,234 719,658,234 Contributions during the year 3,010,000 3,010,000 Net surplus for the year 205,370,062 205,370,062
At 30 June 2000 96,960,000 831,078,296 928,038,296 Net surplus for the year 36,574,686 36,574,686
At 30 June 2001 96,960,000 867,652,982 964,612,982
The accompanying notes are an integral part of this statement.
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Kuala Lumpur Stock Exchange Annual Report 2001
Cash Flow Statement for the year ended 30 June 2001
2001 2000 RM RM
CASH FLOW FROM OPERATING ACTIVITIES Surplus before taxation 57,436,686 309,529,062 Adjustment for: Depreciation 29,286,476 41,793,432 Provision for retirement benefits 4,015,693 6,018,821 Net (write-back of)/provision for bad and doubtful debts (2,621,985) 131,994 Provision for diminution in value of investments 5,329,285 23,847,770 Accretion of discount less amortisation of premium (593,981) (139,857) Net gain on sales of property, plant and equipment (230,290) (150,356) Net gain on disposal of investments (1,020,881) (34,495,735) Interest income (21,571,775) (11,428,703) Gross dividend income (32,727,778) (148,804,861)
Operating surplus before working capital changes 37,301,450 186,301,567 Decrease in receivables 6,716,835 1,261,628 (Decrease)/increase in payables (19,086,063) 10,087,854 Decrease/(increase) in amount due from subsidiaries 117,948,237 (142,553,215)
Cash generated from operations 142,880,459 55,097,834 Taxes paid (23,469,463) (39,681,585)
Net cash generated from operating activities 119,410,996 15,416,249
CASH FLOW FROM INVESTING ACTIVITIES Proceeds from disposal of investments 200,369,702 Purchase of unquoted bonds (143,003,869) (29,326,351) Increase in investments in subsidiaries (7,224,800) (10,216,476) Increase in loans granted to staf f (12,380,796) (10,600,954) Interest received 19,540,291 9,057,461 Dividends received 148,804,861 Purchase of property, plant and equipment (7,173,916) (38,992,060) Proceeds from sale of property, plant and equipment 272,232 524,048
Net cash (used in)/generated from investing activities (149,970,858) 269,620,231
CASH FLOW FROM FINANCING ACTIVITIES Decrease in long term liability (538,561) (538,561) Increase in membership fees 3,010,000
Net cash (used in)/generated from financing activities (538,561) 2,471,439
Net (decrease)/increase in cash and cash equivalents (31,098,423) 287,507,919 Cash and cash equivalents at beginning of year 450,949,348 163,441,429
Cash and cash equivalents at end of year 419,850,925 450,949,348
Cash and cash equivalents comprise: Cash and bank balances 266,299 2,439,350 Short term deposits 419,584,626 448,509,998
419,850,925 450,949,348
The accompanying notes are an integral part of this statement.
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Notes to The Financial Statements 30 June 2001
1. Principal Activities The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting the business of a stock exchange in Malaysia.
The principal activities of the subsidiaries are described in Note 9.
There were no significant changes in these activities during the financial year except for the addition of commodity and interest rate futures and options clearing and exchange activities as disclosed in Note 30(c).
2. Significant Accounting Policies (a) Basis of Accounting The financial statements are prepared under the historical cost convention and comply with applicable approved accounting standards in Malaysia.
(b) Basis of Consolidation The consolidated financial statements include the financial statements of the Exchange and all its subsidiaries made up to the end of the financial year.
The results of subsidiaries are included in the consolidated income statement from the ef fective dates of their acquisition. Intragroup transactions are eliminated on consolidation and the consolidated financial statements reflect external transactions only.
At the date of acquisition, the fair values of the subsidiaries net assets are determined and these values are incorporated in the consolidated financial statements. The dif ference between the cost of investments and the net assets of the subsidiaries at the date of acquisition represents goodwill or reserve arising on consolidation. Goodwill net of reserve arising on consolidation is written of f to the income statement immediately.
(c) Associated Companies The Group treats as associated companies those companies in which the Group has a long term equity interest and where it exercises significant influence over the financial and operating policies.
The Group s share of post acquisition profits less losses of associated companies is included in the consolidated income statement and the Group s interest in associated companies is stated at cost plus the Group s share of post-acquisition retained profits and reserves.
(d) Currency Conversion and Translation T ransactions in foreign currencies during the year are converted into Ringgit Malaysia at rates of exchange approximating those ruling at the transaction dates. Foreign currency monetary assets and liabilities at the balance sheet date are translated into Ringgit Malaysia at rates of exchange approximating those ruling at that date. All exchange gains or losses are dealt with in the income statement.
The USD denominated financial statements of a subsidiary are translated at year-end exchange rates with respect to the balance sheet, and at the exchange rates at the date of the transactions with respect to the income statement. All resulting translation dif ferences are taken to reserves.
The exchange rate ruling for USD denominated balances at both balance sheet dates is RM3.80 : USD1.00.
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Kuala Lumpur Stock Exchange Annual Report 2001
2. Significant Accounting Policies (cont d.) (e) Property, Plant and Equipment and Depreciation Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Depreciation on property, plant and equipment is provided on a straight line basis calculated to write of f the cost of each asset to their residual value over its estimated useful life as follows:
Leasehold land long term 99 years Freehold and leasehold building and of fice lots2% Renovations 2 0 % Of fice equipment, electrical installation, furniture and fittings 1 0 % 2 0 % Computers and office automation 20% 33.33% Motor vehicles 2 0 %
The leasehold building and of fice lots have a term of 99 years.
(f) Subscriptions The rates for monthly subscription fees are as follows: RM Voting members 1,000 Dealing members (executive directors) 300 Non-dealing members (corporate/individual) 300 Non-dealing members (non-executive directors) 100 Dealers representatives 250 T rainee dealers representatives 50
(g) Provision for Retirement Benefits Exchange Non-executive staff: Retirement benefits of the Exchange for non-executive staf f are paid to the Employees Provident Fund and are charged against income for the year.
Exchange and Subsidiaries Securities Clearing Automated Network Services Sdn Bhd ( SCANS ) Malaysian Central Depository Sdn Bhd ( MCD ) Labuan International Financial Exchange Inc ( LFX ) KLSE Property Management Sdn Bhd
Executive and non-unionised staff: Retirement benefits are paid to an approved scheme at a rate determined by the Exchange and the above subsidiaries with the advice of an actuary and such payments have been charged against income for the year. In accordance with the rules of the Retirement Benefit Scheme, the cost of retirement benefits under this scheme is determined based on triennial actuarial valuation using the Attained Age actuarial valuation method. The last actuarial valuation was performed on 30 June 1999.
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Notes to The Financial Statements 30 June 2001
2. Significant Accounting Policies (cont d.) (h) Investments (i) Investments in subsidiaries are stated at cost less provision for any permanent diminution in value. (ii) Short term investments comprise unquoted securities which are managed by external fund managers for the purpose of short term capital gains. These unquoted securities are stated at the lower of cost or market value or indicative market value determined on an aggregate basis. (iii) Recreational club memberships, purchased for the use of directors of a subsidiary, are written of f over a period of two years. Other recreational club memberships are stated at cost less provision for any permanent diminution in value. (iv) Other investments comprise unquoted private debt securities that are acquired and held for yield or capital growth and are usually held to maturity. Unquoted private debt securities are stated at cost adjusted for amortisation of premium or net of accretion of discount. Provision is made for permanent diminution in value where considered appropriate.
(i) Deferred Taxation Deferred taxation is provided under the liability method in respect of all material timing dif ferences except where it is reasonably expected that the tax ef fects of such deferrals will continue in the foreseeable future.
(j) Intangible Assets Intangible assets comprise preliminary and pre-operating expenses which are stated at cost and are charged to the income statement as and when incurred.
(k) Revenue Recognition (i) Dividend income is recognised when the right to receive payment is established. (ii) Grants received by Malaysian Derivatives Clearing House Berhad ( MDCH ), a subsidiary, from the Securities Commission, are recognised as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. (iii) Interest income comprises interest income recognised on fixed deposits and unquoted bonds. Interest income of the Group also includes interest earned on Compensation Fund s deposits and investments. Interest income is recognised on an accrual basis. (iv) Other than the above, all other revenue is recognised on an accrual basis.
(l) Provision for Doubtful Debts Provision for doubtful debts is made on all debts which are six months or older.
(m) Cash and Cash Equivalents Cash and cash equivalents include cash on hand and in banks, short term deposits, net of bank overdrafts and short term borrowings.
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Kuala Lumpur Stock Exchange Annual Report 2001
3. Short Term Deposits Group Exchange
2001 2000 2001 2000 RM RM RM RM
Deposits with: Licensed banks 649,974,700 871,691,263 295,434,455 365,650,000 Licensed finance companies 187,573,123 85,654,047 105,555,000 36,660,000 Licensed discount houses 20,556,142 47,699,998 18,406,142 46,199,998 Licensed merchant banks 10,593,512 13,200,000
868,697,477 1,018,245,308 419,395,597 448,509,998 Repurchase agreement with a discount house 746,029 3,326,000 189,029
869,443,506 1,021,571,308 419,584,626 448,509,998
Included in short term deposits are: Group Exchange
2001 2000 2001 2000 RM RM RM RM
Deposits pledged with licensed banks for banking facilities granted 51,200,000 51,200,000 1,200,000 1,200,000
Short term deposits of the Exchange and Group amounting to RM13,991,628 (2000: RMNil) are managed by external fund managers.
4. Receivables Group Exchange
2001 2000 2001 2000 RM RM RM RM
Trade receivables 23,352,856 48,152,627 12,022,072 17,865,299 Sundry receivables 43,724,990 27,850,069 10,320,616 9,697,852
67,077,846 76,002,696 22,342,688 27,563,151 Provision for doubtful debts (4,841,835) (19,730,879) (1,635,568) (4,364,887)
62,236,011 56,271,817 20,707,120 23,198,264
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Notes to The Financial Statements 30 June 2001
4. Receivables (cont d.) The movement of provision for doubtful debts is as follows:
Group Exchange
2001 2000 2001 2000 RM RM RM RM
Balance at 1 July 2000/1999 19,730,879 19,182,562 4,364,887 4,721,905 Net (write-back of)/provision for doubtful debts (14,604,803) 1,269,520 (2,621,985) 131,994 Amount written of f (284,241) (721,203) (107,334) (489,012)
Balance at 30 June 2001/2000 4,841,835 19,730,879 1,635,568 4,364,887
Included in trade receivables of the Group in the previous financial year was an amount of RM9,818,607 owed by Member companies of the Exchange to a subsidiary under a credit facility scheme.
5. Short Term Investments Group Exchange
2001 2000 2001 2000 RM RM RM RM
At cost: Malaysian Government Securities ( MGS ) 4,872,940 4,872,940 Unquoted bonds 83,662,464 83,662,464
88,535,404 88,535,404
Indicative market price of unquoted bonds 84,887,415 84,887,415 Market value of MGS 4,895,515 4,895,515
Short term investments of the Exchange and Group are managed by external fund managers on behalf of the Exchange.
6. Due from Subsidiaries Exchange Included in amounts due from subsidiaries in the previous year was an amount of RM129,608,795 relating to royalty receivable on clearing fees from a subsidiary which was received in the current year.
The amounts due from subsidiaries are unsecured, interest free and have no fixed terms of repayment except for amounts due from three subsidiaries amounting to RM5,987,422 which bear interest of between 6.80% to 8.80% per annum (2000: 8.80% to 9.25% per annum).
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7. Due to Subsidiaries Exchange The amounts due to subsidiaries in the previous financial year were unsecured, interest free and have no fixed terms of repayment.
8. Trade Payables Included in trade payables of the Group is RM92,268,486 (2000: RMNil) relating to amounts due to futures and options brokers. The amount arises principally from accruals made for margin payable to MDCH. Full control and ownership in MDCH was effectively transferred to the Group pursuant to the transfer of all assets and liabilities from Commodity and Monetary Exchange of Malaysian ( COMMEX ) to Malaysia Derivatives Exchange Bhd ( MDEX ) in the current year as disclosed in Note 30(c).
9. Subsidiaries Exchange
2001 2000 RM RM
Unquoted shares, at cost 78,502,007 71,277,207 Provision for diminution in value (38,740,400) (33,411,115)
39,761,607 37,866,092
(i) Details of the subsidiaries are as follows:
Name of Company Effective Interest Principal Activities
2001 2000 %%
Incorporated in Malaysia: (a) Securities Clearing Automated 100 100 Providing clearing facilities for contracts Network Services Sdn Bhd between clearing members.
(b) KLSE-Bernama Real-Time 55 55 Compiling, providing and disseminating Information Services Sdn Bhd real-time share price and other relevant financial/economic information from the Exchange to various subscribers.
(c) Malaysian Central Depository 55 55 Maintaining and operating a central Sdn Bhd depository in respect of securities listed on stock exchanges in Malaysia.
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Notes to The Financial Statements 30 June 2001
(d) Malaysian Share Registration 51 51 Providing and/or undertaking share Services Sdn Bhd registration services.
(e) KLSE Property Management 100 100 Providing building management and Sdn Bhd (formerly known as security services. KLSE Realty Sdn Bhd)
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Kuala Lumpur Stock Exchange Annual Report 2001
9. Subsidiaries (cont d.) Name of Company Effective Interest Principal Activities
2001 2000 %%
(f) Malaysian Central Depository 55 55 Acting as nominees for Malaysian Nominees Sdn Bhd Central Depository Sdn Bhd and to receive securities and property on deposit or for safe-custody or management.
(g) KLOFFE Capital Sdn Bhd 100 100 Investment holding and the promotion of derivative instruments and exchanges.
(h) Malaysia Derivatives Exchange Bhd 100 100 To establish, maintain, conduct, operate (formerly known as The Kuala and promote a market for the trading Lumpur Options & Financial of futures and options contracts and Futures Exchange Bhd) facilities for the registration of dealings and settlement of trades in such contracts.
(i) KLOFFE Information Systems 100 100 Dormant intended principal activities Sdn Bhd are to provide information technology and management services.
(j) Labuan International Financial 100 100 To provide, regulate and maintain Exchange Inc.* facilities for conducting the business of an of fshore stock exchange in Labuan.
(k) Commodity and Monetary 100 Dormant. Exchange of Malaysia**
(l) Malaysian Derivatives Clearing 100 50 Providing clearing, settling and House Berhad** guaranteeing of futures and options contracts executed on derivatives exchanges and the administration and enforcement of its business rules.
(m) Malaysia Monetary Exchange 100 Dormant. Berhad**
* Incorporated in the Federal Territory of Labuan, Malaysia. ** Audited by another firm of auditors.
In the current year, MDCH and MME effectively became subsidiaries of the Exchange pursuant to the merger of the business operations of COMMEX with MDEX as disclosed in Note 30(c). COMMEX is a company limited by guarantee under the Companies Act, 1965 and owns 100% of the issued and paid-up capital of MME, which in turn, owns 50% of the issued and paid-up 103 capital of MDCH. KLSE_E_Accs_August2001 1/2/02 12:13 PM Page 104
Notes to The Financial Statements 30 June 2001
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Kuala Lumpur Stock Exchange Annual Report 2001
10. Associated Company Group
2001 2000 RM RM
Unquoted shares, at cost 4,000,000 Share of post acquisition profit 1,179,745
5,179,745
The analysis of the associated company is as follows:
2001 2000 RM RM
Group s share of net tangible assets 5,179,745
The associated company in the previous financial year refers to MDCH, which effectively became a fully owned subsidiary of the Exchange pursuant to the merger of the business operations of COMMEX with MDEX as disclosed in Note 30(c).
11. Other Investments Group Exchange
2001 2000 2001 2000 RM RM RM RM
Unquoted, at cost: Private debt securities 165,614,250 57,147,352 85,010,700 29,326,352 Accretion of discount less amortisation of premiums 408,219 127,393 538,835 139,856
166,022,469 57,274,745 85,549,535 29,466,208
Recreational club memberships 309,095 172,372 Add: Acquired during the year 197,858 265,835 Less: W ritten off (309,095) (129,112) Provision for diminution in value of investments (21,800)
176,058 309,095
166,198,527 57,583,840 85,549,535 29,466,208
Indicative market value of unquoted private debt securities 173,525,465 57,630,167 89,503,070 29,698,640
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Notes to The Financial Statements 30 June 2001
The club memberships are for the use of directors of a subsidiary, who are also Committee Members of the Exchange.
12. Property, Plant and Equipment
Office equipment, electrical Land and installation, Computers buildings furniture and office Motor Note 12(a) and fittings automation vehicles Total Group R M R M R M R M R M
Cost At 1 July 2000 381,668,820 65,528,955 295,396,788 11,221,097 753,815,660 Additions 2,418,433 4,425,072 4,088,418 577,676 11,509,599 Disposals (10,278) (1,438,700) (1,448,978) Written of f (9,359) (3,555,218) (4,713,747) (55,677) (8,334,001) Acquisition of subsidiaries 665,369 2,328,645 10,714,388 1,252,605 14,961,007
At 30 June 2001 384,743,263 68,717,176 305,485,847 11,557,001 770,503,287
Accumulated Depreciation At 1 July 2000 23,903,296 41,891,444 274,357,204 7,147,266 347,299,210 Charge for the year 8,052,618 11,312,595 15,209,446 1,789,721 36,364,380 Disposals (10,277) (1,352,395) (1,362,672) Written of f (9,359) (3,125,778) (3,877,116) (38,047) (7,050,300) Acquisition of subsidiaries 565,655 2,065,306 10,108,836 795,060 13,534,857
At 30 June 2001 32,512,210 52,133,290 295,798,370 8,341,605 388,785,475
Net Book Value At 30 June 2001 352,231,053 16,583,886 9,687,477 3,215,396 381,717,812
At 30 June 2000 357,765,524 23,637,511 21,039,584 4,073,831 406,516,450
Depreciation charge for 2000 7,738,719 13,405,347 29,426,948 2,140,089 52,711,103
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Kuala Lumpur Stock Exchange Annual Report 2001
12. Property, Plant and Equipment (cont d.)
Office equipment, electrical Land and installation, Computers buildings furniture and office Motor Note 12(a) and fittings automation vehicles Total Exchange R M R M R M R M R M
Cost At 1 July 2000 364,537,792 57,423,060 231,539,555 8,383,658 661,884,065 Additions 2,101,790 3,839,263 924,917 307,946 7,173,916 Disposals (690,096) (690,096) T ransfers from a subsidiary 556,849 4,724,741 40,000 5,321,590
At 30 June 2001 366,639,582 61,819,172 237,189,213 8,041,508 673,689,475
Accumulated Depreciation At 1 July 2000 20,575,521 36,492,049 219,569,391 5,047,687 281,684,648 Charge for the year 6,882,277 10,375,800 10,636,516 1,391,883 29,286,476 Disposals (620,745) (620,745) T ransfers from a subsidiary 556,849 4,710,665 26,667 5,294,181
At 30 June 2001 27,457,798 47,424,698 234,916,572 5,845,492 315,644,560
Net Book Value At 30 June 2001 339,181,784 14,394,474 2,272,641 2,196,016 358,044,915
At 30 June 2000 343,962,271 20,931,011 11,970,164 3,335,971 380,199,417
Depreciation charge for 2000 6,623,251 12,135,737 21,418,730 1,615,714 41,793,432
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Notes to The Financial Statements 30 June 2001
12. (a) Land and Buildings
Leasehold Freehold Leasehold building and building and land office lots office lots Renovations Total Group R M R M R M R M R M
Cost At 1 July 2000 60,817,500 284,431,719 31,904,477 4,515,124 381,668,820 Additions 2,101,790 316,643 2,418,433 Written of f (9,359) (9,359) Acquisition of subsidiaries 665,369 665,369
At 30 June 2001 60,817,500 286,533,509 31,904,477 5,487,777 384,743,263
Accumulated Depreciation At 1 July 2000 3,769,924 15,685,584 2,406,578 2,041,210 23,903,296 Charge for the year 765,834 5,742,958 638,089 905,737 8,052,618 Written of f (9,359) (9,359) Acquisition of subsidiaries 565,655 565,655
At 30 June 2001 4,535,758 21,428,542 3,044,667 3,503,243 32,512,210
Net Book Value At 30 June 2001 56,281,742 265,104,967 28,859,810 1,984,534 352,231,053
At 30 June 2000 57,047,576 268,746,135 29,497,899 2,473,914 357,765,524
Depreciation charge for 2000 538,561 5,711,204 638,089 850,865 7,738,719
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12. (a) Land and Buildings (cont d.)
Leasehold Freehold Leasehold building and building and land office lots office lots Renovations Total Exchange R M R M R M R M R M
Cost At 1 July 2000 60,817,500 283,858,692 19,861,600 364,537,792 Additions 2,101,790 2,101,790
At 30 June 2001 60,817,500 285,960,482 19,861,600 366,639,582
Accumulated Depreciation At 1 July 2000 3,769,924 15,613,901 1,191,696 20,575,521 Charge for the year 765,834 5,719,211 397,232 6,882,277
At 30 June 2001 4,535,758 21,333,112 1,588,928 27,457,798
Net Book Value At 30 June 2001 56,281,742 264,627,370 18,272,672 339,181,784
At 30 June 2000 57,047,576 268,244,791 18,669,904 343,962,271
Depreciation charge for 2000 538,561 5,687,458 397,232 6,623,251
Of fice lots represent of fice and car park space in multistorey buildings.
Included in the property, plant and equipment of the Group and the Exchange are the following cost of fully depreciated assets which are still in use: Group Exchange
2001 2000 2001 2000 RM RM RM RM
Leasehold buildings, of fice lots and renovations 245,042 246,341 Of fice equipment, furniture and fittings 18,547,392 14,352,357 15,052,775 11,975,252 Computer equipment 241,456,121 201,755,284 226,600,477 186,299,872 Motor vehicles 3,976,447 1,421,905 3,034,747 1,113,700
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Notes to The Financial Statements 30 June 2001
13. Staf f Loans Receivable Group Exchange
2001 2000 2001 2000 RM RM RM RM
Housing loans 38,360,251 26,204,764 36,769,042 24,936,759 V ehicle loans 2,739,885 2,900,039 2,220,025 2,176,527 Computer loans 229,753 655 183,489 Portion repayable within twelve months included in sundry receivables (2,406,742) (2,874,044) (2,135,168) (2,456,694)
38,923,147 26,231,414 37,037,388 24,656,592
The staf f housing and vehicle loans are secured against the properties and vehicles of the borrowers respectively.
14. Intangible Assets
Group 2001 2000 RM RM
Preliminary expenses 4,990 4,990 Pre-operating expenses 16,160 16,160
21,150 21,150 Less: Intangible assets written of f (21,150)
21,150
In prior years, the accounting policy was to write-of f intangible assets upon commencement of operations.
Included in pre-operating expenses in the previous financial year was audit fees of RM800.
15. Deferred Income Deferred income of the Group relates to grants received by a subsidiary, MDCH, from the Securities Commission and are recognised as income over the period necessary to match them with the related costs which they are intended to compensate on a systematic basis.
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16. Deferred Taxation Group Exchange
2001 2000 2001 2000 RM RM RM RM
At beginning of year 3,652,200 6,743,000 3,601,000 3,601,000 Net transfer to income statement (3,618,200) (3,090,800) (3,601,000)
At end of year 34,000 3,652,200 3,601,000
Deferred taxation of the Exchange in the previous year was in respect of timing dif ferences between depreciation and corresponding capital allowances and provisions.
17. Long Term Borrowings Group
2001 2000 RM RM
Long term borrowings 1,977,300 Less: Portion repayable within twelve months, included as short term borrowings (219,700)
1,757,600
Long term borrowings of the Group relate to amounts payable to the Government of Malaysia and comprise two interest-free unsecured loans of RM697,000 and RM1,500,000. Each loan is repayable in ten equal annual instalments, repayments of which commenced on 30 November 2000.
18. Long Term Liability
Group and Exchange 2001 2000 RM RM
Long term liability 49,412,937 49,951,498 Less: Portion repayable within twelve months included in sundry payables (538,561) (538,561)
48,874,376 49,412,937
Long term liability relates to the amount payable to the Government of Malaysia for the purchase of leasehold land. The amount is payable in 99 annual instalments of RM538,561 each.
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Notes to The Financial Statements 30 June 2001
19. Membership Fees As at 30 June 2001
(i) membership fees received from past and present members at RM10,000 each amounted to RM2,960,000 (2000: RM2,960,000); and
(ii) a total contribution of RM94,000,000 (2000: RM94,000,000) was received from members as follows:
No of Members Total Contributions
Brought Carried Contribution Brought Carried forward Additions forward per Member forward Additions forward RM 000 RM 000 RM 000 RM 000
2001 5 5 5,000 25,000 25,000 51 51 1,000 51,000 51,000 6 6 3,000 18,000 18,000
62 62 94,000 94,000
2000 5 5 5,000 25,000 25,000 51 51 1,000 51,000 51,000 5 1 6 3,000 15,000 3,000 18,000
61 1 62 91,000 3,000 94,000
20. Capital Reserves Group
2001 2000 RM RM
Group s portion of accumulated funds capitalised from redemption of preference shares (Note a) 2,750,000 2,750,000 Share premium from merger of business operations of COMMEX with MDEX (Note b) 10,999,969
13,749,969 2,750,000
(a) This relates to the Group s portion of accumulated funds capitalised arising from the redemption of 5,000,000 5% redeemable cumulative preference shares of RM1 each by a subsidiary, MCD.
(b) MDEX issued 16 non-cumulative B preference shares and 15 non-cumulative C preference shares of RM1.00 each at a total premium of RM10,999,969 as part consideration for the merger of business operations of COMMEX and MDEX, as disclosed in Note 30(c). The share premium arising from the above issue is regarded as capital reserve of the Group and is not distributable. The B and C preference shares have been accounted for as part of the Group s minority
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interest.
21. Compensation Fund Group
2001 2000 RM RM
At 1 July 2000/1999 50,000,000 39,677,440 Transfer from Accumulated Funds 94,029 10,322,560 Transfer to newly segregated Compensation Fund (50,094,029)
At 30 June 2001/2000 50,000,000
In 1997, pursuant to the provisions of Section 5(1)(b)(vii) of the Securities Industry (Central Depositories) Act, 1991, MCD, a subsidiary, established a scheme of compensation for the purpose of settling claims by depositors against MCD, its authorised depository agents and Malaysian Central Depository Nominees Sdn Bhd. The scheme comprises the Compensation Fund and insurance policies. MCD has also established a policy to maintain the balance in the Compensation Fund at RM50,000,000. In consideration for the above, all revenue accruing to the Compensation Fund deposits and investments are to be credited to MCD and all expenditure incurred for and on behalf of the Compensation Fund will be absorbed by MCD.
During the financial year, the MCD Compensation Fund was segregated and transferred from the financial statements of the Group and accounted for separately. Pursuant to the said segregation, the portion of Compensation Fund accruing to the minority shareholders of MCD amounting to RM22,500,000 was reinstated to the accumulated funds of the Group.
22. Revenue Group
2001 2000 RM RM
Clearing fee 76,429,978 288,023,224 SCORE fee 9,066,732 56,905,533 Members subscription 24,945,510 23,730,025 Other income derived from operations of the Group 72,936,678 67,766,579
183,378,898 436,425,361
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Notes to The Financial Statements 30 June 2001
22. Revenue (cont d.) Exchange
2001 2000 RM RM
Equipment rental income 16,738,930 15,926,945 Dividend income from subsidiaries 32,727,778 148,804,861 Royalty income from a subsidiary* 34,179,516 129,608,795 SCORE fee 9,066,732 56,905,533 Cost recoveries 27,170,526 26,110,495 Members subscriptions 24,243,450 22,757,525 Other income derived from operations of the Exchange 21,553,432 21,822,873
165,680,364 421,937,027
* Royalty income from a subsidiary represents royalty receivable from SCANS, a wholly owned subsidiary. The royalty payments came into ef fect on 1 July 2000.
23. Non-Operating Income Included in non-operating income are: Group Exchange
2001 2000 2001 2000 RM RM RM RM
Gross dividend income from investments quoted in Malaysia 2,368,447 2,368,447 Net gain on sale of property, plant and equipment 437,879 154,525 230,290 150,356 Net gain on disposal of investments 1,020,881 34,656,427 1,020,881 34,495,735 W riteback of provision for diminution in value of investments 9,563,345 9,563,345 Interest income (including Compensation Fund income of RM2,013,519) (2000: RMNil)) 41,053,806 32,583,703 21,571,775 11,428,703 Accretion of discount less amortisation of premium (including Compensation Fund amortisation of RM7,007 (2000: RMNil)) 482,835 190,012 593,981 139,857
24. Staf f Cost Included in staf f cost of the Exchange and the Group are provisions for staf f retirement benefits amounting to RM4,015,693 (2000: RM6,018,821) and RM4,301,365 (2000: RM7,163,192) respectively.
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25. Other Operating Expenses Included in other operating expenses are: Group Exchange
2001 2000 2001 2000 RM RM RM RM
Auditors remuneration 160,100 157,400 45,000 45,000 Amortisation of intangible assets 860,106 Preliminary and pre-operating expenses written of f 21,150 34,569 Net (write-back of)/provision for bad and doubtful debts (14,604,803) 1,269,520 (2,621,985) 131,994 Property, plant and equipment written of f 1,283,701 22,096 Of fice rental subsidiary 44,016 44,014 others 1,445,291 1,114,144 1,154,634 59,664 Goodwill on acquisition written of f 6,061,088 Securities Commission levy 15,190,894 57,605,596 Office maintenance 19,177,621 16,267,578 16,946,343 15,853,898 Remuneration of Committee Members Fees 310,000 232,000 Other emoluments 673,216 506,000 Other directors of subsidiaries* Fees 260,100 334,200 Other emoluments 218,990 562,400 Rental of equipment 799,314 193,178 Recreational club memberships benefit to directors** 309,095 129,112 Service charge by a subsidiary 5,681,999 930,315 Security services charged by a subsidiary 1,569,600 281,400
* The estimated monetary value of other benefits not included in the above received by a director of a subsidiary was RM61,912 (2000: RM27,550). ** This represents cost of recreational club memberships, purchased for the use of directors of a subsidiary who are Committee Members, written off.
26. Finance Cost Included in finance cost is: Group Exchange
2001 2000 2001 2000 RM RM RM RM
Interest expense 132,730 477,972
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Notes to The Financial Statements 30 June 2001
27. Exceptional Item The exceptional item in the current financial year relates to provision for diminution in value of investment in KLOFFE Capital Sdn Bhd amounting to RM5,329,285 (2000: RM33,411,115) to reflect the net tangible assets value of KLOFFE Capital Sdn Bhd and its subsidiaries as at 30 June 2001.
The reduction in net tangible assets of KLOFFE Capital Sdn Bhd in the current year was due in part to a capital reduction and consolidation exercise undertaken by MDEX, a wholly owned subsidiary of KLOFFE Capital Sdn Bhd, as disclosed in Note 30(b) to the financial statements.
28. Taxation Group Exchange
2001 2000 2001 2000 RM RM RM RM
Current year charge 28,440,833 130,716,461 24,463,000 104,159,000 (Over)/under provision in prior years 310,860 (1,409,836) T ransfer from deferred taxation (3,618,200) (3,090,800) (3,601,000)
25,133,493 126,215,825 20,862,000 104,159,000
The ef fective tax rate of the Group and Exchange is higher than the statutory tax rate mainly due to certain expenses being disallowed for tax purposes and the non-availability of Group relief for tax losses by companies within the Group.
29. Transfer to Compensation Fund Group Exchange
2001 2000 2001 2000 RM RM RM RM
MCD Compensation Fund 94,029 10,322,560
30. Significant Events During the financial year,
(a) A subsidiary, LFX, increased its issued and paid-up share capital from USD100,000 to USD2,000,000 through the allotment of 1,900,000 new ordinary shares of USD1.00 each. The shares were fully subscribed by the Exchange, thus retaining the Exchange s 100% equity interest in LFX.
(b) A subsidiary, MDEX, initiated and completed a capital reduction and consolidation exercise whereby:
(i) the issued and paid-up ordinary share capital of MDEX of RM40,000,000 comprising 40,000,000 ordinary shares of RM1.00 each was reduced and consolidated to RM11,426,708
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divided into 11,426,708 ordinary shares of RM1.00 each. The resulting credit of RM28,573,292 was utilised to reduce MDEX s accumulated losses.
(ii) the share premium of MDEX amounting to RM59,985,960 was reduced in full and utilised to set-of f MDEX s accumulated losses of an equal amount.
30. Significant Events (cont d.) (c) MDEX and COMMEX completed the signing of an agreement to merge the business operations of the two exchanges on 22 December 2000. Pursuant to the merger agreement all assets and liabilities of COMMEX was transferred to MDEX for a consideration of RM16,000,000 to be settled in part through the issuance of 16 B and 15 C class preference shares of RM1.00 each at a total premium of RM10,999,969 and the remainder in cash to the members of COMMEX. The merger has also effectively transferred full control and ownership in MDCH (previously an associated company) and Malaysian Monetary Exchange Berhad ( MME ) to MDEX. MDCH is principally engaged in providing clearing facilities for futures and options contracts and MME is a dormant company. Both companies are incorporated in Malaysia.
31. Subsequent Event A subsidiary, SCANS, made an offer to MDEX on 16 August 2001 to acquire 8,000,000 ordinary issued and paid-up shares, representing 100% equity interest in MDCH from MDEX, for an estimated purchase consideration of RM10,873,484. The completion of the above acquisition is currently subject to finalisation and execution of the terms and conditions of the Share Sale Agreement.
32. KLSE Compensation Fund The financial statements of the KLSE Compensation Fund for the year ended 30 June 2001 are as attached and have been accounted for separately from all other properties of Kuala Lumpur Stock Exchange as required by Section 61 of the Securities Industry Act, 1983 (Amended 1997).
33. Capital Commitments Group Exchange
2001 2000 2001 2000 RM RM RM RM
Authorised and contracted for: Of fice equipment, furniture and fittings 93,150 100,186 93,150 100,186 Computer and office automation 922,456 740,388 922,456 740,388 Building and renovation 398,001 94,514
1,413,607 935,088 1,015,606 840,574
Approved but not contracted for: Of fice equipment, furniture and fittings 3,936,828 185,290 3,936,828 68,990 Computer and office automation 96,801,725 40,104,586 96,801,725 39,912,156 Motor vehicles 2,703,907 800,000 2,703,907 600,000
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KLSE Sub-Committees
Audit Sub-Committee Objectives conducted both by the Group s internal and Assist the KLSE Committee in discharging its external auditors. responsibilities relating to accounting practices Members of KLSE and its Group of Companies. 1. Tan Kim Leong (Chairman) Ensure the adequacy, ef ficiency and 2. Datuk Mohaiyani Shamsudin ef fectiveness of the Group s administrative, 3. Abdul Samad Alias operating and accounting controls and 4. Dato Mohamed Adnan Ali procedures. 5. Philip T N Koh Oversee and evaluate the quality of the audits
Budget and Investment Sub-Committee Objectives yield is achieved with minimum risk exposure to Ensure that the KLSE and its Group of the funds. Companies have a proper budgetary system in Members place that will help to plan, co-ordinate, evaluate 1. Dato Mohammed Azlan Hashim (Chairman) and control financial activities ef fectively . 2. Chan Guan Seng Ensure that proper allocations are made to 3. Harry K Menon enable ef fective and ef ficient:- 4. Jimmy Lee Soon Teck operations of the KLSE and its Group of 5. YM Raja Ahmad Raja Jallaludin Companies; implementation of the development plans of the KLSE and its Group Companies; and utilisation of financial resources. Review and monitor the financial position of the KLSE and its Group of Companies. Ensure that the cash of the KLSE and its Group of Companies is preserved and secured. Ensure that the funds are properly invested and maintained with the view to maximise return/yields on investment. Appoint appropriate advisors in managing its surplus funds. Formulate policies and guidelines for the investment of the KLSE and its Group of Companies surplus funds. Review the investment policy of the KLSE and its Group of Companies to ensure that optimal
Disciplinary Sub-Committee Objectives Members Consider matters relating to disputes among 1. Abdul Kadir Hj Md Kassim (Chairman) Member Companies. 2. Abdul Wahab Nan Abidin Consider disciplinary actions against Members, 3. Nik Saghir Mohd Noor Member Companies and Dealers 4. Tan Kim Leong Representatives of the Exchange. 5. Yusli Mohamed Yusof f 6. YM Raja Datuk Arshad Raja Tun Uda
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Rules and Development Sub-Committee Objectives Members Review changes, revisions or additions to the 1. Dato Mohammed Azlan Hashim (Chairman) KLSE Rules and Regulations to determine if 2. Abdul Kadir Hj Md Kassim they are consistent with the mission and 3. Chan Guan Seng objectives of the KLSE. 4. Ching Yew Chye Review the role and direction of the KLSE and 5. Datuk Mohaiyani Shamsudin its Group of Companies in line with its mission 6. Dato Hj Megat Najmuddin Khas Dato Seri (Dr) and vision. Hj Megat Khas 7. Dato Ahmad Johan Raslan 8. Dato Hwang Sing Lue 9. T Jeyaratnam
Listing Sub-Committee Objectives manner. Assist the KLSE Committee in discharging all Members matters relating to listing and post-listing 1. Dato Mohammed Azlan Hashim (Chairman) functions of the KLSE in a speedy and ef ficient 2. Abdul Hamidy Hafiz 3. Abdul Kadir Hj Md Kassim 4. Chan Guan Seng 5. Datuk Mohaiyani Shamsudin 6. Dato Hj Megat Najmuddin Khas Dato Seri (Dr) Hj Megat Khas
Index Sub-Committee Objectives Committee. Responsible for the construction and Members establishment of new indices as directed by the 1. Dato Mohammed Azlan Hashim (Chairman) KLSE Committee or whenever necessary. 2. Dato Azim Mohd Zabidi Assist in other related securities areas, if 3. Dato Anwar Aji possible, as determined by the KLSE 4. Dr Aziz Abu Hassan 5. Dr Zaha Rina Zahari 6. Dr Kok Kim Lian 7. Dr John Lee Hin Hock 8. Jamiah Abdul Hamid
Membership Sub-Committee Objectives the case may be. To consider and recommend to the KLSE Members Committee applications for Membership of the 1. Datuk Mohaiyani Shamsudin (Chairman) Exchange pursuant to the Exchange s Articles of 2. Abdul Kadir Hj Md Kassim Association and Rules, after having duly 3. Abdul Wahab Nan Abidin interviewed the individual applicant, proposed 4. Izlan Izhab Dealing Members and Non-Dealing Members, as
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New Listings 1 July 2000 30 June 2001
P .I.E. Industrial Eurospan Uchi Foremost G PA Holdings Supermax Bhd Holdings Bhd Technologies Holdings Bhd Bhd Corporation Bhd
Megan Media Paos Holdings Jotech Holdings Oriental Food Ta Win Petra Perdana Holdings Bhd Bhd Bhd Industries Holdings Bhd Bhd
Golsta Synergy NV Multi Spritzer Bhd Courts Mammoth Hup Seng NWP Holdings Bhd Corporation Bhd Bhd Industries Bhd Bhd
Paid-up Capital when first No. Name of New Listings Board Sector Listing Date listed (RM) 1 P .I.E. Industrial Bhd Second Industrial Products 07.07.2000 60,000,000 2 Eurospan Holdings Bhd Second Consumer Products 10.07.2000 40,000,000 3 Uchi Technologies Bhd Second Industrial Products 19.07.2000 40,000,000 4 Foremost Holdings Bhd Second Consumer Products 01.08.2000 43,850,000 5 G PA Holdings Bhd Second Industrial Products 03.08.2000 40,000,000 6 Supermax Corporation Bhd Second Industrial Products 07.08.2000 40,000,000 7 Megan Media Holdings Bhd Second Industrial Products 08.08.2000 54,667,000 8 Paos Holdings Bhd Main Industrial Products 08.08.2000 60,000,000 9 Jotech Holdings Bhd Second Industrial Products 09.08.2000 40,000,000 10 Oriental Food Industries Holdings Bhd Second Consumer Products 10.08.2000 40,000,000 11 Ta W in Holdings Bhd Second Industrial Products 15.08.2000 40,000,000 12 Petra Perdana Bhd Second Trading/Services 16.08.2000 40,000,000 13 Golsta Synergy Bhd Second Trading/Services 21.08.2000 42,000,000 14 NV Multi Corporation Bhd Main Trading/Services 23.08.2000 70,000,000 15 Spritzer Bhd Second Consumer Products 01.09.2000 49,000,000 16 Courts Mammoth Bhd Main Trading/Services 11.10.2000 282,000,000 17 Hup Seng Industries Bhd Main Consumer Products 02.11.2000 60,000,000 18 NWP Holdings Bhd Main Industrial Products 03.11.2000 60,000,000 19 Octagon Consolidated Bhd Second Industrial Products 08.11.2000 40,000,000 20 Heitech Padu Bhd Main Technology 20.11.2000 80,000,000 21 Kim Loong Resources Bhd Main Plantation 27.11.2000 106,750,000 22 MHC Plantations Bhd Main Plantation 29.11.2000 63,238,086 23 Haisan Resources Bhd Second Trading/Services 16.01.2001 40,000,000 24 Ranhill Bhd Main Trading/Services 15.02.2001 79,000,000 25 W eida (M) Bhd Second Industrial Products 28.02.2001 40,000,000
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Kuala Lumpur Stock Exchange Annual Report 2001
Octagon Heitech Kim Loong MHC Plantations Haisan Ranhill Bhd Consolidated Padu Bhd Resources Bhd Bhd Resources Bhd
W eida (M) Bhd Ingress TIMEdotCom Top Glove SKB Shutters D Nonce Corporation Bhd Bhd Corporation Bhd Corporation Bhd Technology Bhd
Bintulu Port Merge Housing Knusford Bhd Edaran Digital Century Logistics Aikbee Holdings Bhd Bhd Systems Bhd Holdings Bhd Resources Bhd
26 Ingress Corporation Bhd Second Industrial Products 09.03.2001 64,000,000 Paid-up Capital when first No. Name of New Listings Board Sector Listing Date listed (RM) 27 TIMEdotCom Bhd Main Infrastructure Project 12.03.2001 2,530,775,000 Companies 28 Top Glove Corporation Bhd Second Industrial Products 27.03.2001 50,000,000 29 SKB Shutters Corporation Bhd Second Industrial Products 28.03.2001 40,000,000 30 D Nonce Technology Bhd Second Industrial Products 09.04.2001 40,000,000 31 Bintulu Port Holdings Bhd Main Trading/Services 16.04.2001 400,000,000 32 Merge Housing Bhd Main Properties 14.05.2001 150,000,000 33 Knusford Bhd Main Trading/Services 23.05.2001 74,042,002 34 Edaran Digital Systems Bhd Main Trading/Services 06.06.2001 60,000,000 35 Century Logistics Holdings Bhd Second Trading/Services 07.06.2001 44,443,969 36 Aikbee Resources Bhd Second Industrial Products 22.06.2001 50,000,000
As at 30.6.2001 As at 30.6.2000 No. of listed companies 809 773 Total market capitalisation (RM billion) 403.49 572.31
1.7.2000 to 30.6.2001 1.7.1999 to 30.6.2000 Total volume (billion units) 34.17 106.44 Total value (RM billion) 88.90 304.71
New Listings from 1 July 2001 to 30 September 2001 There were no new listings during this period. Two (2) companies were delisted on 13 August 2001: 1) Gadek (Malaysia) Bhd 2) HICOM Holdings Bhd
As at 30.9.2001 No. of listed companies 807 121 KLSE_E_End_NonAccs_July2001 1/2/02 12:18 PM Page 122
Monthly High, Low and Closing Indices*
Composite EMAS High L o w Closing High L o w Closing 2000 July 860.77 793.93 798.83 217.38 199.48 200.40 August 825.52 795.84 795.84 205.89 198.24 198.27 September 767.02 713.51 713.51 192.11 174.94 174.94 October 796.22 703.95 752.36 189.01 170.72 179.89 November 763.84 708.87 729.95 182.49 170.01 174.19 December 741.00 679.64 679.64 176.00 159.77 159.77 2001 January 727.73 657.52 727.73 170.53 152.94 170.53 February 736.34 709.39 709.39 172.36 164.97 164.97 March 706.03 647.48 647.48 163.65 149.15 149.15 April 650.74 553.34 584.50 149.17 131.10 139.84 M a y 611.42 554.36 572.88 146.65 135.36 139.29 June 600.86 564.08 592.99 144.76 137.60 142.29
Industrial Consumer Products High L o w Closing High L o w Closing 2000 July 1,494.54 1,381.93 1,397.44 172.81 156.82 162.14 August 1,459.24 1,400.28 1,429.92 172.12 163.41 168.06 September 1,399.14 1,307.91 1,307.91 165.28 156.84 156.84 October 1,400.86 1,270.11 1,333.36 161.69 151.57 153.79 November 1,372.19 1,288.36 1,312.37 157.63 151.24 154.37 December 1,315.53 1,217.28 1,217.28 154.97 146.58 146.58 2001 January 1,281.82 1,182.58 1,277.77 149.39 140.90 149.05 February 1,281.52 1,247.14 1,261.54 152.08 146.86 152.08 March 1,258.91 1,165.96 1,165.96 151.30 142.34 142.48 April 1,177.18 1,068.72 1,119.59 143.73 137.22 143.73 M a y 1,164.92 1,119.03 1,150.29 147.82 143.07 147.82 June 1,161.11 1,137.24 1,151.73 148.57 145.70 146.39
Industrial Products Construction High L o w Closing High L o w Closing 2000 July 92.97 83.50 84.55 247.59 217.18 224.46 August 86.52 83.71 83.78 233.05 223.81 223.85 September 82.43 74.68 74.68 220.10 182.78 182.78 October 79.16 72.13 75.31 202.90 166.81 187.98 November 75.85 71.83 73.01 191.88 170.87 179.94 December 73.54 65.35 65.35 180.85 153.80 156.26 2001 January 69.64 63.58 69.49 172.35 145.32 169.58 February 69.49 65.94 66.48 170.51 157.09 158.00 March 65.82 60.64 60.64 155.31 132.72 132.72 April 60.85 57.97 59.23 140.76 127.83 138.49 M a y 61.28 57.42 60.38 146.32 133.97 141.25 June 60.95 59.20 59.31 142.61 138.37 138.37
Trading/Services Finance High L o w Closing High L o w Closing 2000 July 134.34 122.53 124.04 6,960.44 6,372.89 6,372.89 August 126.57 118.59 118.59 6,667.55 6,375.24 6,431.32 September 114.03 104.42 104.42 6,146.23 5,639.28 5,639.28 October 118.64 101.63 111.85 6,198.51 5,545.49 5,869.98 November 115.70 106.25 111.27 5,866.54 5,406.87 5,406.87 December 113.27 103.32 103.32 5,485.96 5,051.59 5,070.62 2001 January 111.80 98.56 111.80 5,408.22 4,905.07 5,408.22 February 113.05 107.56 107.76 5,542.31 5,256.71 5,256.71 March 107.82 99.54 99.54 5,188.20 4,558.34 4,558.34 April 100.04 81.00 87.64 4,534.93 3,917.41 4,171.21 M a y 92.55 80.52 83.20 4,453.55 4,101.29 4,206.42 June 88.43 81.67 87.01 4,495.05 4,154.86 4,334.71
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Property Plantations High L o w Closing High L o w Closing 2000 July 1,033.37 947.32 951.93 1,825.79 1,718.76 1,806.89 August 974.64 931.96 932.16 1,847.67 1,797.72 1,798.23 September 916.66 815.54 815.54 1,769.77 1,622.37 1,622.37 October 835.20 773.68 791.34 1,608.85 1,562.94 1,562.94 November 794.99 741.41 746.39 1,558.34 1,463.26 1,490.31 December 746.21 626.97 632.54 1,489.08 1,361.59 1,361.59 2001 January 670.59 591.46 663.30 1,403.54 1,283.17 1,373.17 February 662.49 618.53 618.53 1,388.37 1,348.96 1,348.96 March 612.11 551.34 554.77 1,355.74 1,307.58 1,318.03 April 552.67 514.37 552.67 1,320.44 1,248.99 1,298.47 M a y 583.29 557.54 574.80 1,344.53 1,290.89 1,344.53 June 594.38 573.30 593.18 1,417.77 1,335.56 1,417.77
Mining Syariah High L o w Closing High L o w Closing 2000 July 286.27 208.36 257.65 138.17 127.44 128.73 August 282.91 252.61 265.36 131.27 126.70 126.93 September 270.27 242.99 246.21 123.26 113.67 113.67 October 257.99 237.95 246.04 123.14 109.41 117.11 November 254.36 237.95 239.52 119.73 111.35 115.15 December 241.17 193.38 193.38 116.14 104.64 104.64 2001 January 220.30 180.88 212.80 111.35 100.22 111.35 February 207.35 195.86 202.48 111.80 107.86 107.86 March 198.00 168.51 174.18 107.67 100.64 100.64 April 185.22 155.30 185.22 101.07 87.46 92.62 M a y 191.43 158.56 185.17 96.06 88.50 91.54 June 187.87 173.64 185.24 94.49 90.36 93.71
Second Board Technology High L o w Closing High L o w Closing 2000 July 235.45 211.22 213.06 134.26 103.13 106.02 August 215.90 203.25 203.25 117.12 96.51 108.48 September 199.57 172.31 172.31 102.62 81.70 83.47 October 177.92 163.30 165.67 83.84 70.28 75.47 November 165.55 154.15 154.15 84.51 70.47 71.62 December 153.15 130.72 132.98 71.16 52.70 53.63 2001 January 137.02 123.01 136.14 66.34 48.74 62.67 February 136.13 124.12 124.12 62.76 55.48 55.48 March 122.94 107.64 107.64 54.50 43.05 43.46 April 105.73 98.26 104.21 42.45 36.34 40.07 M a y 110.43 103.84 105.91 45.67 41.86 44.77 June 112.16 105.61 106.93 47.70 44.73 45.23
Note: * Based on closing index.
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Market Indicators
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest COMPOSITE Index 1,012.84 455.64 811.10 302.91 982.24 675.45 798.83 572.88 COMPOSITE Moving Average 1,159.88 645.44 603.50 464.09 846.69 611.03 868.82 675.64
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest EMAS Index 289.93 115.36 207.56 79.55 255.63 174.81 200.40 139.29 EMAS Moving Average 332.28 170.81 157.39 119.69 217.49 155.44 221.67 160.99
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Kuala Lumpur Stock Exchange Annual Report 2001
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Industrial Index 2,028.06 915.83 1,380.58 639.44 1,683.24 1,207.07 1,429.92 1,119.59 V olume (mil) 5,155 1,152 7,086 820 10,623 1,299 1,693 669 V alue (RM mil) 15,002 3,514 14,603 2,169 25,760 5,005 6,179 2,023
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Consumer Products Index 430.59 121.18 169.52 83.86 191.02 138.34 168.06 142.48 V olume (mil) 652 133 485 62 778 82 71 34 V alue (RM mil) 1,850 363 1,266 212 2,013 459 487 239
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Market Indicators
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Industrial Products Index 143.36 56.96 86.44 40.20 113.43 76.96 84.55 59.23 V olume (mil) 795 184 2,071 161 2,341 202 299 112 V alue (RM mil) 4,874 375 3,282 331 8,190 587 821 159
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Construction Index 430.59 93.27 237.39 63.23 312.79 202.52 224.46 132.72 V olume (mil) 1,354 197 1,190 139 1,890 191 382 91 V alue (RM mil) 3,120 303 2,541 189 4,806 611 1,085 172
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FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Mining Index 451.00 153.35 264.46 85.90 329.01 198.74 265.36 174.18 V olume (mil) 117 9 77 6 128 9 21 4 V alue (RM mil) 597 10 137 8 239 18 42 4
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Trading/Services Index 150.69 71.07 128.84 47.36 154.97 106.53 124.04 83.20 V olume (mil) 2,353 629 3,341 455 5,620 802 941 401 V alue (RM mil) 8,105 2,407 7,513 1,326 13,729 2,956 4,061 1,412
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Market Indicators
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Finance Index 8,702.03 2,419.22 6,328.23 1,695.38 8,344.93 5,209.09 6,431.32 4,171.21 V olume (mil) 2,205 372 1,619 245 2,307 366 556 205 V alue (RM mil) 5,829 860 4,836 615 7,765 1,648 2,301 849
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Property Index 2,103.50 580.35 1,064.73 414.61 1,274.90 950.21 951.93 552.67 V olume (mil) 1,335 231 1,585 175 3,530 224 207 94 V alue (RM mil) 3,724 231 2,087 123 6,236 335 286 68
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FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Plantations Index 2,690.26 1,604.78 1,853.75 1,137.37 1,951.09 1,475.63 1,806.89 1,298.47 V olume (mil) 376 79 217 77 390 55 97 28 V alue (RM mil) 2,077 254 678 203 1,373 151 247 64
FYE 1998 FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Highest Lowest Second Board Index 546.82 97.99 179.77 76.83 298.50 153.60 213.06 104.21 V olume (mil) 1,331 143 1,221 93 2,417 88 468 101 V alue (RM mil) 13,467 221 3,607 103 9,822 240 1,368 128
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Market Indicators
FYE 2000 FYE 2001 Highest Lowest Highest Lowest Technology Index 166.05 129.35 137.54 38.46 V olume (mil) 10 4 30 2 V alue (RM mil) 207 76 227 17
FYE 1999 FYE 2000 FYE 2001 Highest Lowest Highest Lowest Highest Lowest Syariah Index 123.89 102.74 160.50 106.26 137.54 88.96 V olume (mil) 220 51 2,129 123 436 32 V alue (RM mil) 487 127 6,043 443 1,633 114 130 KLSE_E_End_NonAccs_July2001 1/2/02 12:18 PM Page 131
Kuala Lumpur Stock Exchange Annual Report 2001
Membership Report
During the year under review (1 July 2000 to 30 June 2001):-
(1) Cessation of Eight Member Companies (Voting Members): No. Member Company Date of Cessation 1 WK Securities Sdn Bhd 10.07.2000 2 Halim Securities Sdn Bhd 16.10.2000 3 Taiping Securities Sdn Bhd 20.11.2000 4 MBf Northern Securities Sdn Bhd 26.02.2001 5 OSK Securities (Melaka) Sdn Bhd 27.03.2001 6 Hwang-DBS Securities (Johor Bahru) Sdn Bhd 09.04.2001 7 PhileoAllied Securities Sdn Bhd 20.04.2001 8 Ke-Zan Securities Sdn Bhd 28.05.2001
(2) Six Corporations were admitted as Non-Dealing Member of the Exchange (Corporate Shareholder), via the following Member Companies: No. New Non-Dealing Member Member Company Date of (Corporate Shareholder) Admission 1 Ideal Appraisal Sdn Bhd Alor Setar Securities Sdn Bhd 17.07.2000 2 A venue Assets Bhd MGI Securities Sdn Bhd 22.11.2000 3 Share Technology Capital Group Sdn Bhd Labuan Securities Sdn Bhd 28.11.2000 4 Hwang-DBS Securities Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 5 Arab-Malaysian Securities Sdn Bhd South Johor Securities Sdn Bhd 26.02.2001 6 Kuala Lumpur City Corporation Bhd Malacca Securities Sdn Bhd 26.02.2001
(3) Thirteen Corporations resigned as Non-Dealing Member of the Exchange (Corporate Shareholder), via the following Member Companies: No. Non-Dealing Member Member Company Date (Corporate Shareholder) Resigned 1 Omega Holdings Bhd WK Securities Sdn Bhd 10.07.2000 2 Uniphoenix Corporation Bhd Halim Securities Sdn Bhd 16.10.2000 3 Durapark Corporation Sdn Bhd Taiping Securities Sdn Bhd 20.11.2000 4 Johor Capital Holdings Sdn Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 5 Securities Investment Pte Ltd Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 6 Malaysian General Investment Allied A venue Assets Securities Sdn Bhd 22.11.2000 Corporation Bhd 7 Mayban Securities (Holdings) Sdn Bhd PhileoAllied Securities Sdn Bhd 20.04.2001 8 South Johor Equities Sdn Bhd South Johor Securities Sdn Bhd 21.02.2001 9 MBf Capital Bhd MBf Northern Securities Sdn Bhd 26.02.2001 10 Phileo Allied Bhd PhileoAllied Securities Sdn Bhd 21.03.2001 11 TCL Premier Holdings Bhd OSK Securities (Melaka) Sdn Bhd 27.03.2001 12 Hwang-DBS Securities Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd 09.04.2001 13 Ke-Zan Holdings Bhd Ke-Zan Securities Sdn Bhd 28.05.2001
(4) One Individual resigned as Non-Dealing Member of the Exchange (Individual Shareholder), via the following Member Company: No. Name Member Company Date Resigned 1 Estate of Rashidi Baba Labuan Securities Sdn Bhd 28.11.2000 131 KLSE_E_End_NonAccs_July2001 1/2/02 12:18 PM Page 132
Membership Report
(5) Demise of Dealing Member (Executive Director) No. Name Member Company Date of Demise 1 Din bin Mohd Hassan PhileoAllied Securities Sdn Bhd 20.12.2000
(6) Demise of Non-Dealing Member (Non-Executive Director) No. Name Member Company Date of Demise 1 Heinz Ewald Johann Poehlsen K & N Kenanga Bhd 04.01.2001
(7) Eleven Individuals were admitted as Dealing Member, viz: No. Name Member Company Date of Admission 1 Mohd Yusof bin Mohd Rashidi Kuala Lumpur City Securities Sdn Bhd 10.07.2000 2 Hashimah binti Ismail Alor Setar Securities Sdn Bhd 17.07.2000 3 Saiful Bahri bin Zainuddin Fima Securities Sdn Bhd 13.10.2000 4 Teoh Hock Chooi Fima Securities Sdn Bhd 13.11.2000 5 W ee Hoe Soon @ Gooi Hoe Soon MGI Securities Sdn Bhd 21.11.2000 6 Abdul Rauf bin Ramli MGI Securities Sdn Bhd 21.11.2000 7 Zulazman bin Zulkifli Labuan Securities Sdn Bhd 28.11.2000 8 Hwang Lip Teik Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 9 Noor Zakri bin Abdul Ghani Sarawak Securities Sdn Bhd 15.12.2000 10 Junaida bt Abdul Jalal Rashid Hussain Securities Sdn Bhd 22.12.2000 11 Awang bin Ahmad @ Awang Arif fin InnoSabah Securities Bhd 15.01.2001
(8) Thirty-five Individuals resigned/ceased as Dealing Member, viz: No. Name Member Company Date of
Resignation 1 Lau Yew Kong SBB Securities Sdn Bhd 01.07.2000 2 Zainal bin Ahmad WK Securities Sdn Bhd 10.07.2000 3 Haji Rahmat bin Awi Peninsula Securities Sdn Bhd 12.07.2000 4 Dato Haji Sallehuddin bin Kassim Alor Setar Securities Sdn Bhd 18.07.2000 5 Haji Mansor bin Hussein Alor Setar Securities Sdn Bhd 18.07.2000 6 Tengku Abdul Halim Alhaj Ibni Almarhum Halim Securities Sdn Bhd 16.10.2000 Sultan Ibrahim 7 Loo Khee Kwong Halim Securities Sdn Bhd 16.10.2000 8 Chua Hock Seng Halim Securities Sdn Bhd 16.10.2000 9 Hassim bin Haji Baba Halim Securities Sdn Bhd 16.10.2000 10 Mohd Nasir bin Ali Kuala Lumpur City Securities Sdn Bhd 31.10.2000 11 Dato Ahmad bin Hj Ibnihajar Taiping Securities Sdn Bhd 20.11.2000 12 Harris bin Hj Ismail Taiping Securities Sdn Bhd 20.11.2000 13 Muhammad Nadzri bin Hamzah Taiping Securities Sdn Bhd 20.11.2000 14 Dr Abdul Hadi bin Derani Labuan Securities Sdn Bhd 28.11.2000 15 Dato Abdol Mulok bin Awang Damit Labuan Securities Sdn Bhd 28.11.2000 16 Abdul Hakim Mordani bin Abdul Hadi Labuan Securities Sdn Bhd 28.11.2000 17 Mohd Yusof bin Pandak Yatim Fima Securities Sdn Bhd 15.12.2000 18 Datuk Teh Ghee Kok TA Securities Bhd 22.01.2001 19 Thevanaigam Sukumari Chitty TA Securities Bhd 22.01.2001 20 Ahmad bin Abdullah PhileoAllied Securities Sdn Bhd 31.01.2001 21 Koh Kee Tee South Johor Securities Sdn Bhd 21.02.2001
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22 Jason Chan Chau Yang South Johor Securities Sdn Bhd 21.02.2001 23 Ng Say Keow South Johor Securities Sdn Bhd 21.02.2001 24 M d Yusof f bin Md Ali Ke-Zan Securities Sdn Bhd 06.03.2001 25 Rosli bin Abdol Wahab Eng Securities Sdn Bhd 09.02.2001 26 Zainuddin bin Hj Din Malacca Securities Sdn Bhd 26.02.2001 27 Jimmy Tan Soon Sum OSK Securities (Melaka) Sdn Bhd 27.03.2001 28 Chow Yook Hey @ Chow Yoke Pui OSK Securities (Melaka) Sdn Bhd 27.03.2001 29 Loh Teck Yen OSK Securities (Melaka) Sdn Bhd 27.03.2001 30 Amin Rafie bin Othman Smith Zain Securities Sdn Bhd 31.03.2001 31 Johari bin Hassan Hwang-DBS Securities (Johor Bahru) Sdn Bhd 09.04.2001 32 Abang Zainal Abidin bin Abang Ahmad Upen Securities Sdn Bhd 23.04.2001 33 Dato Mahmud bin Haji Ali TA Securities Bhd 26.05.2001 34 Mohd Idris bin Ahmad Jais Ke-Zan Securities Sdn Bhd 28.05.2001 35 Loo Kok Yuen PM Securities Sdn Bhd 28.05.2001
(9) Twenty-nine Individuals were admitted as Non-Dealing Member of the Exchange (Non-Executive Directors), viz: No. Name Member Company Date of Admission 1 Haji Y usof f bin Haji Tahir PTB Securities Sdn Bhd 07.07.2000 2 Datuk Dr Abdul Aziz bin Muhamad MIDF Sisma Securities Sdn Bhd 07.07.2000 3 Neoh Lean Teik Ke-Zan Securities Sdn Bhd 26.07.2000 4 Dr Lim Tock Hooi Ke-Zan Securities Sdn Bhd 26.07.2000 5 Musa bin Haji Mohd Dahan Leong & Company Sdn Bhd 01.08.2000 6 Ausaf Akhtar Abbas Smith Zain Securities Sdn Bhd 21.08.2000 7 Khoo Bee Lin PM Securities Sdn Bhd 22.08.2000 8 Nikmat bin Abdullah InnoSabah Securities Bhd 05.10.2000 9 Dato Mohamed Zain bin Mohamed Yusof Malacca Securities Sdn Bhd 01.11.2000 10 Hwang Lip Teik Hwang-DBS Securities Bhd 29.11.2000 11 Zainab bt Ahmad Botly Securities Sdn Bhd 06.12.2000 12 Dato Halim bin Muhamat CIMB Securities Sdn Bhd 15.01.2001 1 3 Arni bt Arif fin BBMB Securities Sdn Bhd 22.01.2001 14 Lok Bah Bah @ Loh Yeow Boo Alor Setar Securities (2000) Sdn Bhd 30.01.2001 15 Dato Mohammed bin Hussein PhileoAllied Securities Sdn Bhd 31.01.2001 16 Norazizi bin Mohd Rashid PhileoAllied Securities Sdn Bhd 31.01.2001 17 Nor Izmin bin Hasbullah Jupiter Securities Sdn Bhd 06.02.2001 18 Mohd Nasir bin Ali Kuala Lumpur City Securities Sdn Bhd 12.02.2001 19 Chang Tuck Chee @ Philip Chang South Johor Securities Sdn Bhd 12.02.2001 20 Mohamed Azahari bin Mohamed Kamil Jupiter Securities Sdn Bhd 22.02.2001 21 Dato Seri Dr Ting Chew Peh PM Securities Sdn Bhd 14.02.2001 22 Kalimullah bin Masheerul Hassan TA Securities Bhd 01.03.2001 23 U Chin Wei TA Securities Bhd 01.03.2001 24 W ong Hong Meng TA Securities Bhd 01.03.2001 25 Mustafa bin Haji Mohd Nor South Johor Securities Sdn Bhd 12.03.2001 26 Lee Yew Kin South Johor Securities Sdn Bhd 12.03.2001 27 Dato Seri Dr Ting Chew Peh Pan Malaysia Equities Sdn Bhd 12.04.2001 28 Othman bin Abdul Jalal BBMB Securities Sdn Bhd 23.04.2001 29 Haji Mohd Sallehuddin bin Othman MIDF Sisma Securities Sdn Bhd 11.05.2001
(10) T wo Individuals were admitted as Non-Dealing Member of the Exchange (Individual Shareholder), viz: No. Name Member Company Date of
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Membership Report
Admission 1 Dato Haji Sallehuddin bin Kassim Alor Setar Securities Sdn Bhd 18.07.2000 2 Haji Mansor bin Hussein Alor Setar Securities Sdn Bhd 18.07.2000
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Kuala Lumpur Stock Exchange Annual Report 2001
(11) Forty Individuals resigned as Non-Dealing Member of the Exchange (Non-Executive Directors), viz: No. Name Member Company Date of
Resignation 1 Abdul Aziz bin Mahmoud Salim PTB Securities Sdn Bhd 07.07.2000 2 Lutfiah bt Ismail Kuala Lumpur City Securities Sdn Bhd 07.07.2000 3 Ruzmi bin Ag Ya Alor Setar Securities Sdn Bhd 18.07.2000 4 Francis Yeo Teng Yang Affin-UOB Securities Sdn Bhd 19.07.2000 5 Tan Sri Dato Hj. Anuar bin Hj. Zainal Kuala Lumpur City Securities Sdn Bhd 21.07.2000 6 Jamaludin bin Md Ali PJB-OUB Securitites Sdn Bhd 12.08.2000 7 Leong Mun Wai OCBC Securities (Melaka) Sdn Bhd 12.08.2000 8 Goh Geok Khim Straits Securities Sdn Bhd 30.08.2000 9 Mohd Redza Shah bin Abdul Wahid BBMB Securities Sdn Bhd 13.10.2000 10 Dato Nik Mohd Sidek bin Nik Abu Bakar Halim Securities Sdn Bhd 16.10.2000 11 Dato Kamaruddin Taib Halim Securities Sdn Bhd 16.10.2000 12 Lee Kwong Ann Halim Securities Sdn Bhd 16.10.2000 13 Ho Chun Fatt Halim Securities Sdn Bhd 16.10.2000 14 Edwin Madarang Yang JB Securities Sdn Bhd 13.11.2000 15 Datuk Hj Ishak bin Ismail Taiping Securities Sdn Bhd 20.11.2000 16 Dato Hj. Md Sharif f bin Hj Shamsuddin MGI Securities Sdn Bhd 25.11.2000 17 Haji Ahamad bin Mohamad Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 18 Mohamed Azahari bin Mohamed Kamil Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 19 Kau Jee Chu Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 20 Mohamad bin Alwi Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 21 Dato Mohd Ghazali bin Mohd Khalid MGI Securities Sdn Bhd 15.12.2000 22 Datuk Tiah Thee Kian Botly Securities Sdn Bhd 22.12.2000 23 Dato Haji Darwis bin Mohd Daid @ MIDF Sisma Securities Sdn Bhd 31.12.2000 Darwis bin Mohd Daek 24 Datuk Mohamed bin Abid TA Securities Bhd 22.01.2001 25 Hamzah bin Harun Kota Bharu Securities Sdn Bhd 06.02.2001 26 Roslan bin Haji Yahya South Johor Securities Sdn Bhd 21.02.2001 27 Dato Loy Teik Ngan MBf Northern Securities Sdn Bhd 26.02.2001 28 Mirzan bin Mahathir Ke-Zan Securities Sdn Bhd 06.03.2001 29 Ronald Anthony Ooi Thean Yat Ke-Zan Securities Sdn Bhd 06.03.2001 30 Dr Lim Tock Hooi Ke-Zan Securities Sdn Bhd 06.03.2001 31 Neoh Lean Teik Ke-Zan Securities Sdn Bhd 06.03.2001 32 Hwang Lip Teik Hwang-DBS Securities (Johor Bahru) Sdn Bhd 09.04.2001 33 Azlan bin Mohd Zainol Arab-Malaysian Securities Sdn Bhd 15.04.2001 34 Dato Mohamed bin Hussein PhileoAllied Securities Sdn Bhd 20.04.2001 35 Norazizi bin Mohd Rashid PhileoAllied Securities Sdn Bhd 20.04.2001 36 Dato Mokhzani bin Mahathir Kestrel Securities Sdn Bhd 26.04.2001 37 Yeow Keng Chew Kestrel Securities Sdn Bhd 26.04.2001 38 W ong Hong Meng TA Securities Bhd 19.05.2001 39 Mohd Nasir bin Ali Kuala Lumpur City Securities Sdn Bhd 01.06.2001 40 Haji Mahfudz bin Muhamad Botly Securities Sdn Bhd 30.06.2001
(12) Change of Member Companies Name No. Member Company New Name Effective Date
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Membership Report
1 OCBC Securities (Melaka) Sdn Bhd OSK Securities (Melaka) Sdn Bhd 18.09.2000 2 O.S.K. Securities Berhad OSK Securities Bhd 27.11.2000 3 PJB-OUB Securities Sdn Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd 29.11.2000 4 Alor Setar Securities Sdn Bhd Alor Setar Securities (2000) Sdn Bhd 06.12.2000 5 Labuan Securities Sdn Bhd ShareTech Securities Sdn Bhd 05.01.2001 6 MGI Securities Sdn Bhd Allied A venue Assets Securities Sdn Bhd 19.02.2001
(13) Changes of Member Companies Business Address No. Member Company Business Address Effective Date 1 JF Apex Securities Bhd W isma Apex 20.10.2000 145A-C & 2nd Floor 145D-F Jalan Bukit 43000 Kajang Selangor Darul Ehsan
2 HLG Securities Sdn Bhd Level 1-7, No. 3 23.10.2000 W isma Kia Peng Jalan Kia Peng 50450 Kuala Lumpur Tel. No: 03-21681168/27101168 Fax No: 03-21615900
3 PM Securities Sdn Bhd Tingkat Bawah dan Tingkat 1 27.11.2000 Plaza MUI Jalan P. Ramlee 50250 Kuala Lumpur Tel. No: 03-21463000 Fax No: 03-21456345
4 ShareTech Securities Sdn Bhd Unit 7A, Level 7 29.11.2000 Financial Park Complex Jalan Merdeka 87000 Wilayah Persekutuan Labuan
5 FA Securities Sdn Bhd No. 51 & 51A 11.12.2000 Ground, Mezzanine and 1st Floor Jalan Tok Lam 20100 Kuala Terengganu
6 Mayban Securities Sdn Bhd Tingkat 5 13 27.03.2001 MaybanLife Tower Dataran Maybank No. 1 Jalan Maarof 59000 Kuala Lumpur Tel. No: 03-22978888 Fax No: 03-22825136
7 Kuala Lumpur City Securities Sdn Bhd No. 8 Jalan Binjai 02.04.2001 Off Jalan Ampang 50450 Kuala Lumpur
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Kuala Lumpur Stock Exchange Annual Report 2001
KLSE Members as at 30 June 2001
Voting Members Federal Territory of Kuala Lumpur
ARAB- 15th Floor Dealing Members: Non-Dealing Members: MALAYSIAN Bangunan Arab-Malaysian Haji Ismail bin Abdullah Arab-Malaysian Securities SECURITIES 55, Jalan Raja Chulan Mustafa bin Hj Mohd Nor Holdings Sdn Bhd SDN BHD 50200 Kuala Lumpur Chang Tuck Chee @ Dato Hj Azlan bin Hashim Tel : 03-2382788/99 Philip Chang Cheah Tek Kuang Fax : 03-2383162 Ahmad bin Bachok Lee Siang Korn @ 2303175 Lee Siang Chin
AFFIN-UOB Level 3, Menara Keck Dealing Member: Non-Dealing Members: SECURITIES Seng To Puan Siti Norizam bte Affin-UOB Holdings SDN BHD 203, Jalan Bukit Bintang Mohd Yusof f Sdn Bhd 55100 Kuala Lumpur Yu Choong Cheong Tel : 03-21438668 Gen (B) Dato Ismail bin Fax : 03-21433663 Hassan Lee Swee Kiat
ALLIED AVENUE 1st & 2nd Floor Dealing Members: Non-Dealing Member: ASSETS W isma MGIC W ee Hoe Soon @ A venue Assets Bhd SECURITIES 38, Jalan Dang Wangi Gooi Hoe Soon SDN BHD 50100 Kuala Lumpur Abdul Rauf bin Ramli Tel : 03-26911889 Fax : 03-26942903
BBMB Level 2, 3, 4 & 15 Dealing Member: Non-Dealing Members: SECURITIES Menara Olympia Hassan bin Jaafar Khazanah Nasional Bhd SDN BHD Letter Box No 2 Nik Hassan bin No 8, Jalan Raja Chulan Nik Mohd Amin 50200 Kuala Lumpur Dato Anwar bin Haji @ Aji Tel : 03-2019900 Arni bte Arif fin Fax : 03-2041582 Othman bin Abdul Jalal
BIMB 1st & 2nd Floor Dealing Member: Non-Dealing Members: SECURITIES Podium Block Dato Dr Abdul Halim bin BIMB Securities (Holdings) SDN BHD Bangunan AMDB Haji Ismail Sdn Bhd No 1, Jalan Lumut Yayasan Pembangunan 50400 Kuala Lumpur Ekonomi Islam Malaysia Tel : 03-4433533 Dato Ahmad Tajudin bin Fax : 03-4413433 Abdul Rahman 4412622 Dato Hj Mohamed bin 4414159 Shafie Mustafa bin Hamat
CIMB 9th Floor, Commerce Dealing Member: Non-Dealing Members: SECURITIES Square Y usli bin Mohamed Yusof f CIMB Holdings Sdn Bhd SDN BHD Jalan Semantan Mohamed Nazir bin Damansara Heights Abd Razak 50490 Kuala Lumpur Robert Chiem Dau Meng Tel : 03-2532288 Lim Tiang Siew Mohd Shukri bin Hussin Dato Halim bin Muhamat
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KLSE Members as at 30 June 2001
FIMA No 45-14 Dealing Members: Non-Dealing Members: SECURITIES Plaza Level & Level 1 Saiful Bahri bin Zainuddin Capitalcorp Holdings SDN BHD Plaza Damansara Teoh Hock Chooi Sdn Bhd Jalan Medan Setia Satu Ahmad Riza bin Basir Damansara Heights Tan Sri Dato Hj Basir bin 50490 Kuala Lumpur Ismail Tel : 03-2549966 Dato Hj Mohd Noor bin Fax : 03-2548595 Ismail Abu Hassan bin Kendut
HLG Level 1-7 Dealing Members: Non-Dealing Member: SECURITIES No 3, Wisma KiaPeng Omar bin Zolkifli HLG Capital Bhd SDN BHD Jalan Kia Peng Lee Wai Kok 50450 Kuala Lumpur David Chua Ming Huat Tel : 03-21681168 27101168 Fax : 03-21615900
INTER-PACIFIC Level 7 Dealing Members: Non-Dealing Members: SECURITIES Menara Shahzan Insas Pang Poh Ping Inter-Pacific Capital Sdn SDN BHD 30 Jalan Sultan Ismail Abdul Majid bin Bhd 50250 Kuala Lumpur Hj Mohd Harun Chan Kien Sing Tel : 03-21441888 Robert Yong Kuen Loke Fax : 03-21441686 Tan Sri Datuk Abdul Rahim bin Hj Din
JUPITER 7th, 8th & 9th Floor Dealing Members: Non-Dealing Members: SECURITIES Menara Olympia Mohamad Saleh bin Olympia Industries Bhd SDN BHD 8, Jalan Raja Chulan M d Yusof Koperasi Polis Di Raja 50200 Kuala Lumpur Lo Kok Kee Malaysia Bhd Tel : 03-2041888 Looi Kheng Hwa Fax : 03-2042288 Ishak bin Hassan Zahar bin Hj Arif fin Yap Wee Keat Tun Dato Seri Abdul Hamid bin Omar Nor Izmin bin Hasbullah Mohamed Azahari bin
K & N 801, 8th Floor Dealing Members: Non-Dealing Members: KENANGA BHD Kenanga International Tengku Dato Paduka K & N Kenanga Holdings Jalan Sultan Ismail Noor Bhd 50250 Kuala Lumpur Zakiah bte Tengku Tel : 03-21649080 Ismail 21624190 Fax : 03-21614990 21635927
KAF- 30th Floor, The Weld Dealing Member: Non-Dealing Members: SEAGROATT & Tower Ahmad bin Kadis KAF-Seagroatt & Campbell CAMPBELL 76, Jalan Raja Chulan Holdings Bhd SECURITIES 50200 Kuala Lumpur Datuk Khatijah bte Ahmad SDN BHD Tel : 03-2081600 Faisol bin Zulkifli
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KUALA LUMPUR No 8, Jalan Binjai Dealing Member: Non-Dealing Members: CITY Off Jalan Ampang Mohd Yusof bin Mohd Assedina Sdn Bhd SECURITIES 50450 Kuala Lumpur Rashidi Khadijah bte Abdul Khalid SDN BHD Tel : 03-21667922 Fax : 03-21667909
Kuantan Branch A-397, A-399 & A-401 Taman Sri Kuantan III Jalan Beserah 25300 Kuantan Pahang Darul Makmur Tel : 09-5660800 Fax : 09-5660801
LEONG & CO Level 18, W isma Dealing Members: Non-Dealing Members: SDN BHD Cyclecarri Leong Kun Kay Ceria Alam Sdn Bhd 288, Jalan Raja Laut Anne Leong Sau Leng Edaran Otomobil Nasional 50350 Kuala Lumpur Christine Leong Yuen Bhd Tel : 03-26928899 Leng Musa bin Haji Mohd Fax : 03-26949088 Peter Leong Tuck Leng Dahan Maggie Yu Kwei Sim
M AYBAN T ingkat 5-13 Dealing Member: Non-Dealing Members: SECURITIES MaybanLife Tower Abdul Wahab bin Mayban Securities SDN BHD Dataran Maybank Nan Abidin (Holdings) No 1, Jalan Maarof Sdn Bhd 59000 Kuala Lumpur Tan Sri Mohamed Basir Tel : 03-22978888 bin Fax : 03-22825136 Ahmad Mohammad bin Abdullah Ipoh Branch Hj Mohd Hashir bin 55, 57 & 63 Hj Abdullah Persiaran Greenhill Dato Ahmad Badri bin 30450 Ipoh Mohd Basir Perak Darul Ridzuan Dato Mohammed bin Tel : 05-2558233 Hj Che Hussein 2423888 Fax : 05-2534333
MIDF SISMA 17th & 18th Floor Dealing Member: Non-Dealing Members: SECURITIES Empire Tower Datin Mariam Prudence MIDF Sisma Holdings SDN BHD 182, Jalan Tun Razak bte Yusof Sdn Bhd 50400 Kuala Lumpur Dato Dr Abdullah bin Tel : 03-21668888 Mohd Tahir Fax : 03-21669999 Dato Mohd Ghaus bin Badioze Zaman Allen N Lopez Dato Syed Ibrahim bin Syed Mohamed Datuk Dr Abdul Aziz bin Muhamad Haji Mohd Sallehuddin bin Othman
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KLSE Members as at 30 June 2001
OSK 10th Floor, Plaza OSK Dealing Members: Non-Dealing Member: SECURITIES Jalan Ampang Dato Nik Mohamed bin OSK Holdings Bhd BHD 50450 Kuala Lumpur Nik Yahya Tel : 03-21624388 Chin Cheng Mei Fax : 03-21618254 W ong Chong Kim Ong Leong Huat @ Ipoh Branch W ong Joo Hwa 21-25, Jalan Nik Halim @ Nik Ghazi Seenivasagam bin Haji Nik Daud Greentown 30450 Ipoh Perak Darul Ridzuan Tel : 05-2415100 Fax : 05-2553903
Melaka Branch 579, 580-581 A&B Taman Melaka Raya 75000 Melaka Tel : 06-2825211 2845211 Fax : 06-2844861
Penang Branch 64, Bishop Street 20F & 20G Penang Street 10200 Penang Tel : 04-2634222 Fax : 04-2622299
PB SECURITIES 27th Floor Dealing Member: Non-Dealing Members: SDN BHD Bangunan Public Bank Yong Yoong Fa Public Consolidated No 6, Jalan Sultan Holdings Sulaiman Sdn Bhd 50000 Kuala Lumpur Dato Tay Ah Lek Tel : 03-2013011 Tan Sri Dato Dr Teh Hong Piow Dato Lee Kong Lam Ismail Ibrahim
PM Ground & 1st Floor Dealing Members: Non-Dealing Members: SECURITIES Plaza MUI Noorjehan Rahima bte Pan Malaysia Capital Bhd SDN BHD Jalan P Ramlee Abdul Hamid Jumat Khet Kok Yin 50250 Kuala Lumpur Leong Kok Wah Datin Munirah bte Tel : 03-21463000 Abdullah Ng Fax : 03-21456345 Dato Abdul Raman bin Suliman Zainal Rashid bin Zainal Abidin Khoo Bee Lin Dato Seri Dr T ing Chew
RASHID Level 9, Tower One Dealing Members: Non-Dealing Members: HUSSAIN RHB Centre Tan Sri Dato Abdul RHB Capital Berhad SECURITIES Jalan Tun Razak Rashid Oh Chong Peng SDN BHD 50400 Kuala Lumpur bin Haji Mohamed Ruslan bin Hassan Tel : 03-9852233 Hussain Fax : 03-9855522 Tajul Arif fin bin Mohd
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SIMESECURITIES 21st Floor Dealing Member: Non-Dealing Members: SDN BHD Bangunan Sime Bank Nil SimeSecurities Holdings 4, Jalan Sultan Sulaiman Sdn Bhd 50000 Kuala Lumpur Dr Shafiq Sit bin Abdullah Tel : 03-22749288/778 Nik Din bin Nik Sulaiman Fax : 03-22749907 Tunku Tan Sri Dato Seri Ahmad bin Tunku Yahya Thavarajah a/l Chinniah
TA SECURITIES Menara TA One Dealing Members: Non-Dealing Members: BHD 22, Jalan P Ramlee Datin Tan Kuay Fong TA Enterprise Bhd 50250 Kuala Lumpur Ignatius Luke Jr Tan Kalimullah bin Masheerul Tel : 03-2321277 Keng Hee Hassan Fax : 03-2322369 Attan Akmar bin Masbah U Chin Wei
Voting Member Selangor Darul Ehsan Kajang
JF APEX W isma Apex Dealing Members: Non-Dealing Members: SECURITIES 145A-C & 2nd Floor 145D- Chan Guan Seng Apex Equity Holdings Bhd BHD F Ng Seng Leong Jardine Fleming (M) Jalan Bukit Kharul Hurri bin Services 43000 Kajang Khalid Abbas Sdn Bhd Selangor Darul Ehsan Christopher Mark Quinton Tel : 03-87361118 Fax : 03-87374532
Petaling Jaya Branch Level 15 & 16 Menara Choy Fook On No 1B, Jalan Yong Shook Lin 46050 Petaling Jaya Selangor Darul Ehsan
Voting Member Selangor Darul Ehsan Klang
AMSTEEL 1st, 2nd, 3rd & 4th Floor Dealing Members: Non-Dealing Members: SECURITIES (M) W isma Amsteel Securities Ee Beng Guan Datavest Sdn Bhd SDN BHD No 1, Lintang Pekan Baru Dato Hj Abdul Rahim bin Dato Hj Kamaruddin @ Of f Jalan Meru Mohd Ibrahim Abas bin Nordin 41050 Klang Sia Say Yee Selangor Darul Ehsan Tel : 03-3439999 Fax : 03-3433872
Voting Member Selangor Darul Ehsan Petaling Jaya
MOHAIYANI 1st, 2nd & 3rd Floor Dealing Members: Non-Dealing Members: SECURITIES Plaza Damansara Utama Datuk Mohaiyani bte Paribas SDN BHD No 2, Jalan SS21/60 Shamsudin Christian Georges Henri Damansara Utama Abdul Hamid bin Gautier De Charnace 47400 Petaling Jaya Abdul Samad Abdul Ghani bin Ahmad Selangor Darul Ehsan Nik Aminaldin bin Adam Ghani Ahmad bin Tel : 03-77297345 Nik Jaafar Abdul Ghani Fax : 03-77281357 Chin Kok Keng Amir Ghani Ahmad bin Abdul Ghani
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KLSE Members as at 30 June 2001
SJ SECURITIES Level 3, Holiday V illa Dealing Members: Non-Dealing Members: SDN BHD No 9, Jalan SS12/1 Ahmad Azman bin Carta Bintang Sdn Bhd 47500 Subang Jaya Abdul Manaf Dato Ahmad Sebi bin Selangor Darul Ehsan Lim Poh Ho Bakar Tel : 03-7340202 Fax : 03-7348342
Member Company Selangor Darul Ehsan Shah Alam
OMEGA 15th Floor Dealing Members: Non-Dealing Member: SECURITIES Plaza Perangsang Abdullah bin A yub Omega Holdings Bhd SDN BHD Persiaran Perbandaran Tiah Thee Peng (Dealer s licence 40990 Shah Alam Yeo Lee Hoe revoked by the Selangor Darul Ehsan Securities Tel : 03-5594900 Commission on Fax : 03-5599682 5 June 1998)
Voting Member Johor Darul Takzim Johor Bahru
ENG 95, Jalan Tun Abdul Dealing Member: Non-Dealing Members: SECURITIES Razak Lim Khuan Eng Inter-Pacific Capital Sdn SDN BHD 80000 Johor Bahru Bhd Johor Darul Takzim Datuk Hj Mohd Fatmi bin Tel : 07-2231211/8212 Hj Che Salleh Fax : 07-2246266 Azlan Meah bin Hj Ahmad Meah Chan Kien Sing
JB SECURITIES Suite 8.2 Level 8 Dealing Members: Non-Dealing Member: SDN BHD Menara Sarawak Yap Kai Keng Dynamic Pearl Sdn Bhd Enterprise Idris bin Osman No 5, Jalan Bukit Meldrum 80300 Johor Bahru Johor Darul Takzim Tel : 07-3332000
PENINSULA Level 2, Menara Pelangi Dealing Member: Non-Dealing Members: SECURITIES Jalan Kuning, Taman Er Chin Her @ Er Ee Pan Pacific Asia Bhd SDN BHD Pelangi Datuk Dr Philip Ling 80400 Johor Bahru Lee Kang Johor Darul Takzim Tel : 07-3333600
Voting Member Johor Darul Takzim Muar
KESTREL 57, 59 & 61, Jalan Ali Dealing Members: Non-Dealing Members: SECURITIES 84000 Muar Leow Wong Kong @ Tongkah Holdings Bhd SDN BHD Johor Darul Takzim Leow Woon Kuang Abdul Rahman bin Tel : 06-9532222 Abd Rahman bin Dato Mohd Hashim 9531222 Abu Samah Af fendi bin Zahari Fax : 06-9516660 Mohd Alkaf bin Mohd
Voting Member Johor Darul Takzim Batu Pahat
SOUTH JOHOR 3rd Floor Dealing Member: Non-Dealing Members: SECURITIES Penggaram Complex Husni bin Hussain Arab-Malaysian Securities SDN BHD 1, Jalan Abdul Rahman Sdn Bhd 83000 Batu Pahat Chang Tuck Chee @ Johor Darul Takzim Philip Chang Tel : 07-4342282 Mustafa bin Haji Mohd Nor Fax : 07-4327982 Lee Yew Kin 142 KLSE_E_End_NonAccs_July2001 1/2/02 12:18 PM Page 143
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Voting Member Kedah Darul Aman
ALOR SETA R Lot T-30, 2nd Floor Dealing Member: Non-Dealing Members: SECURITIES W isma PKNK Hashimah bte Ismail Kelanamas Capital Sdn (2000) SDN BHD Jalan Sultan Badlishah Bhd 05000 Alor Setar Tunas Enterprise Sdn Bhd Kedah Darul Aman Ideal Appraisal Sdn Bhd Tel : 04-7317088/8270 Dato Dr Haji Sallehuddin Fax : 04-7318428 Mansor bin Hussein Lok Bah Bah @
Voting Member Perlis Indera Kayangan
UPEN 2nd Floor, Podium Block Dealing Member: Non-Dealing Members: SECURITIES Bangunan KWSP Nil Amal Bakti Sdn Bhd SDN BHD 01000 Kangar Tan Sri Dato Seri Dr Perlis Indera Kayangan Abdul Tel : 04-9765200 Hamid bin Pawanteh Fax : 04-9760411
Voting Member Kelantan Darul Naim
KOTA BHARU 298, Jalan Tok Hakim Dealing Member: Non-Dealing Members: SECURITIES 15000 Kota Bharu Mohamad bin Ab Aziz Pakatan Canggih Sdn Bhd SDN BHD Kelantan Darul Naim Mohd Faiz bin Abdullah Tel : 09-7432288 Chan Gak Keong Fax : 09-7485366 W ong Hong Meng Hj Mahfudz bin Muhamad
Voting Members Melaka
MALACCA No 1, 3 & 5, Jalan PPM 9 Dealing Members: Non-Dealing Members: SECURITIES Plaza Pandan Malim Sim Swee Tin T.M. Lim Sdn Bhd SDN BHD Business Park Sim Cheng Khuan Lim Peng Cheong Balai Panjang Dato Mohamed Zain bin 75250 Melaka Mohamed Yusof Tel : 06-3371533 Kuala Lumpur City Fax : 06-3371550 Corporation Bhd 3371577
STRAITS Lot 9 & 10, 1st Floor Dealing Members: Non-Dealing Members: SECURITIES Bangunan Tabung Haji Goh Choon Hock Straits Asset Holdings SDN BHD Jalan Banda Kaba Ahmad Ezzanee Azizan Sdn Bhd 75000 Melaka bin Rosely bin Ahmad Tel : 06-2833622 Mohd Ali Azizan Seah Fook Chin Fax : 06-2849886
Voting Members Negeri Sembilan Darul Khusus
MALPAC T ingkat 1, 2 & 3 Dealing Members: Non-Dealing Member: SECURITIES Nos 19 21 Chew Loy Chee Malpac Holdings Bhd SDN BHD Jalan Kong Sang Gan Teck Chong @ 70000 Seremban Gan Kwan Chong Negeri Sembilan Darul Tan Chon Sing @ Khusus Tan Kim Tieng Tel : 06-7623131 Ang Poo Guan
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KLSE Members as at 30 June 2001
PAN MALAYSIA 9th & 10th Floor Dealing Member: Non-Dealing Members: EQUITIES Bangunan Yayasan Negeri Ramli bin Mahmudin Pan Malaysia Capital Bhd SDN BHD Sembilan, Jalan Yam Tuan Datuk Mohd Yasin bin 70000 Seremban Jaafar Negeri Sembilan Darul Khet Kok Yin Khusus Dato Seri Dr T ing Chew Tel : 06-7633888 Peh 7638999
Voting Members Penang
A A ANTHONY No 41-1-1 & 41-2-1 Dealing Members: Non-Dealing Members: & CO SDN BHD Jalan Cantonment Lim Tiong Chin Dato Lim Pee Hung 10250 Pulau Pinang Haji Abdul Rahman bin Lim Pee Kee Tel : 04-2299318 Haji Ahmad Lim Pee Tong Fax : 04-2268788 Lim Teong Khoon
H WANG-DBS Level 2, 3, 4, 7 & 8 Dealing Members: Non-Dealing Members: SECURITIES W isma Sri Pinang Dato Hwang Sing Lue Hwang-DBS (Malaysia) BHD 60, Green Hall Tunku Dato Seri Berhad 10200 Pulau Pinang Nadzaruddin ibni Tunku Tan Sri Imran ibni Tel : 04-2636996 Tuanku Ja afar Tuanku Ja afar Fax : 04-2639597 Hwang Lip Teik
Shah Alam Branch: 16th, 18th-20th Floor Plaza Masalam 2, Jalan Tengku Ampuan Zabedah E9/E Section 9 40100 Shah Alam Selangor Darul Ehsan Tel : 03-55133288 Fax : 03-55138288
Taiping Branch: Tingkat Bawah Aras 1, 2 & 3 21, Jalan Stesen Aras 2 & 3 43 & 45 Jalan Stesen 34000 Taiping Perak Darul Ridzuan Tel : 05-8066688 8060888 Fax : 05-8089229
Johor Bahru Branch: Podium 2A & 3 Menara Ansar 65, Jalan Trus 80000 Johor Bahru Johor Darul Takzim Tel : 07-2222692 2768787 Fax : 07-2765201
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SMITH ZAIN 7th & 8th Floor Dealing Members: Non-Dealing Members: SECURITIES Menara PSCI Tan Chong Pen Smith Zain (Malaysia) SDN BHD 39, Jalan Sultan Ahmad Tan Giap How Sdn Bhd Shah Dato Kamarudin bin Abu 10050 Penang Ausaf Akhtar Abbas Tel : 04-2283355
SOON THEAM No 111, Jalan Macalister Dealing Members: Non-Dealing Members: SECURITIES 10400 Penang Yeo Khee Nam Yeo Eng Chew, Cornelius SDN BHD Tel : 04-2281868 Yeo Khee Bee Yeo Eng Hai Fax : 04-2263912 Ahmad bin Md Mydin Yeo Eng Ho Yeo Khee Aik
THONG & W isma Sri Pinang Dealing Members: Non-Dealing Members: K AY HIAN Level 5 & 6 Thong Wai Loen Kay Hian (M) Holdings SECURITIES 60, Green Hall Thong Yue Leong Sdn Bhd SDN BHD 10200 Penang Thong Miew Peng Tang Wee Loke Tel : 04-2635481 W ee Ee Chao Fax : 04-2635741 Estate of Dato Hj Ali 2622852 bin Esa
UT SECURITIES 6th, 10th & 12th Floor Dealing Members: Non-Dealing Members: SDN BHD Bangunan Mayban Trust Frederick Ng Kweng Chan Rentak Wira Sdn Bhd 3, Penang Street Lee Seong Chong Goh Choon Lye 10200 Penang Ling Hee Keat Tel : 04-2626644/6660 Dato Kamaruddin bin Fax : 04-2644166 Jaafar
Voting Member Butterworth
MERCURY Ground, 1st, 2nd & 3rd Dealing Members: Non-Dealing Member: SECURITIES Floor Chew Sing Guan Hj Shuaib bin Lazim SDN BHD W isma UMNO Mat Zuki bin Mahmud Lorong Bagan Luar Dua 12000 Butterworth Seberang Perai Tel : 04-3322123 Fax : 04-3231813
Voting Members Perak Darul Ridzuan
BOTLY 1st Floor Dealing Members: Non-Dealing Members: SECURITIES Plaza Teh Teng Seng Ee Beng Wat TA Enterprise Bhd SDN BHD 227, Jalan Kampar Too Hai Ong Datin Tan Kuay Fong 30250 Ipoh Ahmad Sabri bin Harun Zainab bte Ahmad Perak Darul Ridzuan Tel : 05-2531313 Fax : 05-2536785 2557950
KIN KHOON & A23 A29 Dealing Member: Non-Dealing Members: CO SDN BHD W isma Kota Emas Abdul Molok bin Abu Asian Pac Holdings Bhd Jalan Dato Tahwil Azar Bakar Dato Hamzah bin 30300 Ipoh Zainuddin Perak Darul Ridzuan Phillip Gong Chiok Sin Tel : 05-2543311 Fax : 05-2545567 2556570
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KLSE Members as at 30 June 2001
M & A M & A Building Dealing Members: Non-Dealing Member: SECURITIES 52A, Jalan Sultan Idris Choo Sen Yoong Insas Bhd SDN BHD Shah Thong Kok Yoon 30000 Ipoh Perak Darul Ridzuan Tel : 05-2419800
SBB 51-53 Persiaran Greenhill Dealing Members: Non-Dealing Members: SECURITIES 30450 Ipoh Raja Puan Sri Dato SBB Capital Markets SDN BHD Perak Darul Ridzuan Noora Sdn Bhd Tel : 05-2530888 Ashikin bte Raja Ramuda Sdn Bhd Fax : 05-2537666 Abdullah Nordin bin Yahaya Dato Tan Teong Hean
Voting Members Terengganu Darul Iman
FA SECURITIES No 51 & 51A, Ground, Dealing Member: Non-Dealing Members: SDN BHD Mezzanine and 1st Floor Isa bin Mustapha FA Peninsular Bhd Jalan Tok Lam Perbadanan Menteri Besar 20100 Kuala Terengganu Terengganu Terengganu Darul Iman Dato Muhammad Fasir bin Tel : 09-6238128 Samsudin Fax : 09-6238129 Hj Mohd Arif f bin Taib
PTB T ingkat 1, 2 & 3 Dealing Member: Non-Dealing Members: SECURITIES No 61, Jalan Sultan Ismail Ismail bin Nik Man PTB Securities Holdings SDN BHD Peti Surat 151 Sdn Bhd Pejabat Pos Besar Mat Zaid bin Ibrahim 20700 Kuala Terengganu Dato Mazlan @ Mohd Terengganu Darul Iman Nanri Tel : 09-6235546 bin Hashim Fax : 09-6235532 Hj Yusof f bin Hj Tahir
Voting Members Sarawak
SARAWAK W isma Mahmud Dealing Members: Non-Dealing Members: SECURITIES Jalan Sungai Sarawak Dato Haji Onn bin CMS Capital Sdn Bhd SDN BHD 93100 Kuching Mahmud Hijjas bin Kasturi Sarawak Shahnaz bte Abdul Majid Mahmud Abu Bekir bin Tel : 082-338000 Noor Zakri bin Abdul Taib Fax : 082-338222 Sulaiman Abd Rahman bin Taib Miri Branch: Lot 2465 Jalan Boulevard Utama Boulevard Commercial Centre 98000 Miri Sarawak Tel : 085-435577
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Kuala Lumpur Stock Exchange Annual Report 2001
BORNEO 12G, Jalan Kampung Datu Dealing Member: Non-Dealing Members: SECURITIES 96000 Sibu Tan Mee Mee Borneo Securities Holdings SDN BHD Sarawak Sdn Bhd Tel : 084-319998 Tan Sri Dato Seri Megat Fax : 084-313193 Junid bin Megat Ayob Engak @ Richard Wil Anak Uban Henry Lian Aran Clement Jamal Anak Eddy Joseph Salang Anak
Voting Member Sabah
INNOSABAH 11 Equity House, Block K Dealing Members: Non-Dealing Members: SECURITIES Sadong Jaya, Faidzan bin Hassan Kretam Holdings Bhd BHD Karamunsing Kong Kok Keong Seah Sen Leang 88100 Kota Kinabalu Freddie Chew Sun Ghee Lee Swi Heng Sabah Awang bin Ahmad @ Nikmat bin Abdullah Tel : 088-234090 A wang Arif fin
Voting Member Federal Territory of Labuan
SHARETECH Unit 7A, Level 7 Dealing Member: Non-Dealing Member: SECURITIES Financial Park Complex Zulazman bin Zulkifli Share Technology Capital SDN BHD Jalan Merdeka Group Sdn Bhd 87000 Wilayah Persekutuan Labuan Tel : 087-410622
Number of Member Companies (Voting Members) : 56 Number of Dealing Members : 116 Number of Non-Dealing Members : 206
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Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Twenty-Fifth Annual General Meeting of the Exchange will be held at the KLSE Theatrette, Lower Ground Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur on Saturday, 10 November 2001 at 11:30 a.m. to transact the following business:
1. To confirm the Minutes of the Twenty-Fourth Annual General Meeting held on 25 November 2000 at 11:30 am.
2. To receive and adopt the report of the Committee, the Income and Expenditure Accounts for the year ended 30 June 2001 and the Balance Sheet as at 30 June 2001 with Auditors Report thereon in respect of the Kuala Lumpur Stock Exchange and the Kuala Lumpur Stock Exchange Compensation Fund.
3. To elect two (2) Committee Members.
4. To elect Auditors and to authorise the Committee to fix their remuneration.
5. To transact any other business which may be properly transacted at an Annual General Meeting.
BY ORDER OF THE COMMITTEE
AHMAD AZNAN MOHD NAW AWI (LS No: 006940) Company Secretary
Kuala Lumpur 19 October 2001
NOTE: A. APPOINTMENT OF PROXY RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE 1. ARTICLE 24.7 (a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and vote on its behalf at the general meeting and in the event such executive director is unable to attend the general meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint a proxy to attend and vote on behalf of the Voting Member; (b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstances referred to in Article 4.2(2) apply, such Members are entitled to appoint proxies to attend and vote on their behalf, respectively.
2. ARTICLE 26.4(1) A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.
3. ARTICLE 4.2 (1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at all general meetings of the Exchange. (2) In addition to the rights conferred under Article 4.2(1) a Non-Voting Member shall also have the right to vote upon any resolution which varies or af fects his rights or privileges as a Non-Voting Member under the Memorandum of Association or these Articles.
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Form of Proxy/Certificate of Representation
We ______
of ______
being a Member of Kuala Lumpur Stock Exchange hereby appoint ______
of ______as our proxy/representative to vote for us and on our behalf at the Twenty-Fifth Annual General Meeting of the Exchange to be held on Saturday, 10 November 2001 at 11:30 a.m. and at any adjournment thereof.
Made this ______day of ______2001.
______Signature of Director/Attorney authorised to act on behalf of the Member
______Common Seal of the Member affixed in the presence of the persons authorised by the Board of Directors
EXPLANATO RY NOTES A. APPOINTMENT OF PROXY RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE (1) ARTICLE 24.7 (a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and vote on its behalf at the general meeting and in the event such executive director is unable to attend the general meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint a proxy to attend and vote on behalf of the Voting Member; (b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstances referred to in Article 4.2(2) apply, such Members are entitled to appoint proxies to attend and vote on their behalf, respectively.
(2) ARTICLE 26.4(1) A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.
(3) ARTICLE 4.2 (1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at all general meetings of the Exchange. (2) In addition to the rights conferred under Article 4.2(1), a Non-Voting Member shall also have the right to vote upon any resolution which varies or af fects his rights or privileges as a Non-Voting Member under the Memorandum of Association or these Articles.
B. INSTRUMENT APPOINTING PROXY/REPRESENTATIVE TO BE DEPOSITED The instrument appointing a proxy/representative shall be deposited at the registered of fice of the Exchange not less than twenty four (24) hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument proposes to vote.
To ensure receipt of the above by the Exchange, kindly contact: Ahmad Aznan Mohd Nawawi Tel: 03-20717810 or Marhani Hamzah Tel: 03-20717327