ANNUALREPORT 2 0 1 4 Star Publications (Malaysia) Berhad
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ANNUAL REPORT 2014 Star Publications (Malaysia) Berhad (10894-D) CHARTING THE COURSE The theme for this year’s Annual Report aptly describes 2014 for The Star media group. Having taken measurable steps to refocus and redefine our business, the year saw the Group embark on several unprecedented initiatives to reinforce our position within the media landscape. This marks the beginning of a company that is focused on ‘charting its own course’ through bold endeavours and continuously pushing the boundaries of the industry. After all, one thing remains true — our steadfast commitment to providing value-added solutions and our pursuit of quality and compelling content, to better serve our audiences, partners and stakeholders. 2014 LANDMARK ACHIEVEMENTS 2014 LANDMARK ACHIEVEMENTS BraVE VIEWS, BOLD IDEAS CAMPAIGN The Purpose TO REMIND READERS THAT THE STAR HAS ALWAYS BEEN AND WILL ALWAYS BE OPEN TO BRAVE VIEWS AND BOLD IDEAS TEMPERED BY THE VOICE OF MODERATION. In saying so, we turned to Malaysians and asked them about the well-being of our country. Our survey revealed a yearning amongst our readers for a more moderate state of affairs in Malaysia. Malaysians support 9/10 a moderate Malaysia think Malaysia believe that political, racial and isn’t moderate religious issues are hindering a 58% enough 65% moderate Malaysia SOURCE: THE STAR MODERATION SURVEY 2014 n = 5,939 To set the right tone, we reached out to our stable of columnists who voiced their views on a Moderate Malaysia. ‘Brave Views, Bold Ideas’ represents what we stand for, and is our guiding principle in ensuring our editorial content is open, rational and moderate. BE PART OF THE CONVERSATION #moderateMY #thestarMY www.thestar.com.my/moderatemalaysia CAMPAIGN SHOWCASE CAMPAIGN SHOWCASE 2014 LANDMARK ACHIEVEMENTS 5 REGIONAL ePAPERS IN ONE SUBSCRIPTION READ THE NEWS Empowering ASEAN by enhancing connectivity and access to strong Extensive regional and dependable regional voices audience reach under one package. More value at no 1. MALAYSIA - THE STAR additional cost 2. INDONESIA - JAKARTA POST 3. THAILAND - THE NATION First ASEAN ePaper 4. PHILIPPINES - THE PHILIPPINE DAILY INQUIRER bundle 5. CHINA - CHINA DAILY ASIA WEEKLY 5 REGIONAL ePAPERS 1 SUBSCRIPTION. Jakarta Post The Nation China Daily The Philippine Asia Weekly The Star Daily Inquirer It’s easy to stay up-to-date with the latest news when you subscribe to The Star Bundle with The Star newspaper, The Star ePaper, eFlavours and 4 regional ePapers – The Nation, Jakarta Post, China Daily Asia Weekly and The Philippine Daily Inquirer. To subscribe, visit newsstand.thestar.com.my or call 1300 88 7827 (STAR). 2014 LANDMARK ACHIEVEMENTS TRANSITION TO BUSINESS VERTICALS Growing our revenue share from the property and real estate industry Why? How? What? We challenge the status quo in property We leverage our media assets, content We provide an end-to-end marketing and marketing and classifieds to help property creation capacity, and access to sales platform for property developers and developers and real-estate agents better consumers to create a compelling and real estate agents to enable them to reach market and sell their products and comprehensive property marketplace and engage their target audiences, and services. where supply and demand converge and convert these audiences into clients. transactions happen. STARPROPERTY.MY’S OMNI-CHANNEL MARKETING ECOSYSTEM REACH ENGAGE CONVERT Print Digital Radio Mobile Social Events StarProperty.my StarProperty.my Facebook Page StarProperty.my Mobile App StarProperty.my Pullout CRM Fully integrated with our omni-channel marketing ecosystem, the CRM (Customer Relationship Management) platform is designed to help property developers better manage, engage and convert the leads generated from their project marketing campaign. KEY ACHIEVEMENTS IN 2014 StarProperty.my StarProperty.my fairs, 186 booths pulloutLaunched in Jan 2014, the first dedicated in Kuala Lumpur, Selangor, Penang and Johor Bahru property pullout is available in The Star 7 newspaper every third Sunday of the month. Acquired NO.3 player in market Partnership with PROPWALL • Over 20,000 agents members – 3,125 paying agents Real Estate Agencies • 10,000 active members Through strategic alliances with the local real estate industry, • Over 250,000 consumer members we are able to enhance lead generation, create demand and • Integration to StarSearch print classifieds drive conversions. BY LEVERAGING VARIOUS PLATFORMS OF THE STAR MEDIA GROUP, BOTH STARPROPERTY.MY AND PROPWALL.MY HAVE SUCCESSFULLY MAXIMISED MULTIPLE TOUCHPOINTS TO BooST REVENUE GROWTH. OUR TO BE A LEADING and VISION InnOVATIVE MEDIA GROUP WITH VARIOUS TOUCHPOINTS TO COnnECT WITH THE PEOPLE. • To provide relevanT, accuraTe OUR and RELIABLE InfOrmaTION MISSION • To be The voice and conscience OF THE PEOPLE • To inspire boTh The individual and THE COUNTRY TO SEEK CONTINUOUS SELF-IMPROVEMENT • To be a caring media group and RESPONSIBLE CORPORATE CITIZEN CONTENTS Notice10 of Annual 20Group 44Corporate 682014 Highlights 227Share General Meeting Structure Governance Performance Statement Chart 14Financial Board22 of Directors 52Statement on 82Corporate 228Corporate Calendar Risk Management Responsibility Directory and Internal Control • Proxy Form Group’s16 Five-Year Directors’24 Profile 55Audit Financial101 Statements Summary Committee Report Group’s18 Financial 30Chairman’s 60Additional 221List of Properties Highlights Statement Compliance Information 19Corporate Management40 Team 63Awards 2014 224Analysis of Information Shareholdings 10 Star Publications (Malaysia) Berhad | Annual Report 2014 Star Publications (Malaysia) Berhad | Annual Report 2014 11 NOTICE OF ANNUAL GENERAL MEETING AGENDA ORDINARY BUSINESS NOTICE IS HEREBY 1. To receive the Audited Financial Statements for the financial year ended 31 December 2014 together with the Directors’ and GIVEN THAT THE Auditors’ Reports thereon RESOLUTION 1 2. To re-elect the following Directors who retire by rotation pursuant to Article 117 of the Company’s Articles of Association: i) Datuk Seri Wong Chun Wai RESOLUTION 2 ii) Dato’ Dr Mohd Aminuddin bin Mohd Rouse RESOLUTION 3 iii) Datin Linda Ngiam Pick Ngoh RESOLUTION 4 3. To re-appoint Tan Sri Datuk Seri Kamal Mohamed Hashim bin Che Din, who is retiring pursuant to Section 129(6) of the Companies Act, 1965 RESOLUTION 5 Annual General Meeting 4. To approve the Directors’ fees of up to RM606,000 for the of Star Publications financial year ended 31 December 2014 (Malaysia) Berhad RESOLUTION 6 (“the Company”) will be 5. To re-appoint Messrs BDO as Auditors of the Company and to authorise the Directors to fix their remuneration held at the Cybertorium, RESOLUTION 7 Level 2, Menara Star, 15 Jalan 16/11, 46350 Petaling SPECIAL BUSINESS As special business, to consider and if thought fit, to pass the Jaya, Selangor Darul following Resolutions: Ehsan on Monday, 18 May 6. ORDINARY RESOLUTION 2015 at 10.00 a.m. for the PROPOSED AUTHORITY TO ALLOT AND ISSUE SHARES PURSUANT transaction of the following TO SECTION 132D OF THE COMPANIES ACT, 1965 business: “THAT pursuant to Section 132D of the Companies Act, 1965, the Directors be and are hereby authorised to allot and issue shares in the Company at any time and from time to time until the conclusion of the next Annual General Meeting upon such terms and conditions and for such purposes as the Directors may in their absolute discretion deem fit, provided that the aggregate number of shares to be issued does not exceed ten per centum (10%) of the issued share capital of the Company (excluding treasury shares) for the time being, subject always to the approval of all relevant regulatory bodies being obtained for such allotment and issue.” RESOLUTION 8 10 Star Publications (Malaysia) Berhad | Annual Report 2014 Star Publications (Malaysia) Berhad | Annual Report 2014 11 NOTICE OF ANNUAL GENERAL MEETING (CONt’D) 7. ORDINARY RESOLUTION AND THAT upon completion of the purchase by the Company PROPOSED RENEWAL OF AUTHORITY FOR STAR PUBLICATIONS of its own shares, the Directors of the Company be and are (MALAYSIA) BERHAD TO PURCHASE ITS OWN SHARES hereby authorised to deal with the shares purchased in their absolute discretion in the following manner: “THAT subject always to the Companies Act, 1965 (“Act”), rules, (aa) cancel all the shares so purchased; and/or regulations and orders made pursuant to the Act, provisions of the Company’s Memorandum and Articles of Association, (bb) retain the shares so purchased in treasury for distribution Bursa Malaysia Securities Berhad (“Bursa Securities”) Main as dividend to the shareholders and/or resell on the Market Listing Requirements (“Listing Requirements”) and any market of Bursa Securities; and/or other relevant authority or approval for the time being in force or as may be amended from time to time, the Directors of the (cc) retain part thereof as treasury shares and cancel the Company be and are hereby authorised to make purchases remainder; of ordinary shares of RM1.00 each in the Company’s issued and paid-up ordinary share capital as may be determined by and in any other manner as prescribed by the Act, rules, the Directors of the Company from time to time through Bursa regulations and orders made pursuant to the Act and the Securities upon such terms and conditions as the Directors Listing Requirements of Bursa Securities and any other relevant may deem fit, necessary and expedient in the interest of the authority for the time being in force; Company, provided that: AND THAT the