Creating Possibilities 2011 Annual Report
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BANK PEM Bank Pembangunan B ANGUNAN M ALAYSIA BERHAD Creating Possibilities 2011 Annual Report (16562-K) | 2011 Annual Report Creating Creating Possibilities BANK PEMBANGUNAN MALAYSIA BERHAD (16562-K) Menara Bank Pembangunan Bandar Wawasan No. 1016, Jalan Sultan Ismail 50250 Kuala Lumpur 03-2611 3888 03-2698 5701 www.bankpembangunan.com INFRASTRUCTURE TECHNOLOGY Maritime Cover Rationale The art of paper folding has a timeless history that required a methodical and creative approach, to craft an infinite number of forms from the imagination, and as the majestic flight of birds that became the basis of inspiration, spurred the experience and need to soar above the skies. Bank Pembangunan Malaysia Berhad’s (BPMB) strategic strength as a development financial institution continues to elevate the nation’s sector of infrastructural, maritime, technology and oil and gas industries, creating possibilities that has the potential to become a leading bank, in propelling growth beyond its borders. OIL & GAS CONTENTS 2 Corporate Profile 4 Corporate Information 6 Corporate Structure 8 Financial Highlights 9 5-Year Group Financial Summary 10 5-Year Group Growth 11 Simplified Group Balance Sheet 12 Financial Performance 14 Profile of Directors 19 Profile of Shariah Committee 20 Company Secretary 21 Group Management Committee 24 Statement of Corporate Governance 32 Statement of Internal Control 34 Risk Management 42 Shariah Compliance 46 Chairman’s Statement 52 President’s Statement 56 Report on Infrastructure 60 Report on Malaysia Oil and Gas Exploration and Production 70 2011 Corporate Highlights 78 Financial Statements 2 CORPORATE PROFILE Bank Pembangunan Malaysia Berhad (BPMB) is wholly owned by the Malaysian Government through the Minister of Finance Inc. BPMB is mandated as a development financial institution providing medium to long term financing to the following sectors: INFRASTRUCTURE MARITIME Utilities Vessels • Energy • Liquid Cargo Vessels • Water • Dry Cargo Vessels • Sewerage • Specialised Vessels Transportation Shipyard • Inland • Shipbuilding • Air • Ship Repair • Engineering Works Area Development • Public / Commercial Marine-Related • Industrial • Fabrication • Vessel Services Tourism • Theme Tourism • Convention and Business Centres • Hotels / Resorts / Serviced Apartments / Villas • Marine Port • Inland • Port Facilities and Machinery / Equipment • Warehouse / Logistics Hub Road /Highway • Toll Road • Federal Road • Trunk Road • City Road • Bridges Community / Social & Public Services • Education • Health (excluding Health Tourism) • Flood Mitigation annual report 2011 3 OIL & GAS TECHNOLOGY Offshore Advanced Manufacturing • Oil and Gas Field Operators • Pharmaceutical • Offshore Structure Owners/ • Electrical & Electronic Operators (Oil Rig/Tension-Leg • Engineering & Support Service Platform – TLP, SPAR platform etc) • Instrumentation & Equipment • Platform Contractors • Chemical • Textiles Onshore • Printing • Plastic • Fabricators • Food Processing • Tank Farm (Storage/Blending/ • Iron & Steel Owners/Operators) • Pulp & Paper • Terminal Owners/Operators • Aerospace • Advanced Materials Offshore Support Vessels • Products related to oil and gas activities • Anchor Handling Tug/Anchor Handling Tug Supply Information & Communication • Crew Boat Technology (ICT) • Supply/Utility Vessels • Telecommunication • Pipe Lay Barge/Vessels • System Integration • Accommodation Work Barge/ • Communication Work Boat • Heavy Lift Vehicles Green Technology • Well Intervention Vessels • Driving Support Vessels • Energy Efficiency • Seismic Vessels • Renewable Energy • Floating Storage/ • Biofuel Production Vessels • Waste to Wealth • Other vessels involved in oil • Clean Development Mechanism (CDM) and gas activities • Pollution Control 4 CORPORATE INFORMATION Chairman Dato’ Mohammed bin Haji Che Hussein Board Members Dato’ Mohd Zafer bin Mohd Hashim (President/Group Managing Director) Siti Zauyah binti Md Desa Haji Zainul Rahim bin Mohd Zain Tan Sri Faizah binti Mohd Tahir Dato’ Dr. Syed Jaafar bin Syed Aznan Datuk Idris bin Abdullah Haji Rosli bin Abdullah Haji Abdul Aziz bin Ishak Company Secretary Syed Iskandar Shah bin Syed Abu Bakar (LS 0009541) Joint Company Secretary Hazlinda binti Ahmad Rosdi ( ` (MAICSA 7053034) Shariah Committee Tan Sri Dato’ Seri (Dr) Haji Harussani bin Haji Zakaria Prof. Dr. Abdul bin Jalil Borham Dr. Ridzwan bin Ahmad Ass. Prof. Dr. Miszairi bin Sitiris Auditors Ernst & Young (AF:0039) Registered Office Aras 16, Menara Bank Pembangunan Bandar Wawasan No. 1016, Jalan Sultan Ismail 50250 Kuala Lumpur Website www.bankpembangunan.com annual report 2011 5 Planning The beginning of origami requires thoughtfulness in its preparation, having the right materials in executing the design, and understanding its strength, properties and limitations for BPMB to gain successful results. 6 CORPORATE STRUCTURE SUBSIDIARIES Global Maritime Ventures Berhad (90%) SME Growth Acceleration Fund Sdn. Bhd. Mutiara Navigation Sdn Bhd GMV-Gagasan Sdn Bhd GMV-Orkim Sdn Bhd GMV-Alam Sdn Bhd GMV-Global Sdn Bhd GMV-Jasa Sdn Bhd (100%) (70%) (100%) (100%) (100%) (100%) (100%) Intan Navigation Sdn Bhd • Farmasi Cekal Sdn Bhd • Orkim Leader Sdn Bhd • Alam Explorasi (M) Sdn Bhd • Global BMesra Sdn Bhd • JM Global 1 (Labuan) Plc BPMB Urus Harta Sdn Bhd (70%) (40%) (40%) (40%) (49%) (49%) (100%) Kasa Navigation Sdn Bhd • Baycorp Ship Mgmt Sdn Bhd • Orkim Power Sdn Bhd • Alam Synergy I (L) Inc. • Global BMesra Dua Sdn Bhd • JM Global 2 (Labuan) Plc Pembangunan Ekuiti Sdn Bhd (70%) (40%) (40%) (40%) (49%) (49%) (54.8%) Mayang Navigation Sdn Bhd • Gagasan Ked Sdn Bhd • Orkim Merit Sdn Bhd • Alam Synergy II (L) Inc. • Global BIkhlas Sdn Bhd • JM Global 3 (Labuan) Plc (70%) (60%) (40%) (40%) (49%) (49%) Emerald Upline Sdn Bhd (100%) Sari Navigation Sdn Bhd • Gagasan Paha Sdn Bhd • Orkim Express Sdn Bhd • Alam Synergy III (L) Inc. GMV-Borcos Sdn Bhd • JM Global 4 (Labuan) Plc (70%) (60%) (40%) (40%) (100%) (49%) Maju Nominees (Tempatan) Nilam Navigation Sdn Bhd • Orkim Challenger Sdn Bhd • Syarikat Borcos Shipping Sdn Bhd GMV-Efogen Sdn Bhd Sdn. Bhd. (100%) (70%) (60%) (35%) (100%) Pembangunan Leasing Corporation Sdn Bhd Tiara Navigation Sdn Bhd • Orkim Discovery Sdn Bhd • Sea Weasel Limited (100%) (70%) (60%) (49%) GMV-Bahtera Sdn Bhd • Orkim Reliance Sdn Bhd PLC Credit & Factoring Sdn Bhd (100%) (60%) (100%) ASSOCIATES GMV-Regional Sdn Bhd BI Credit & Leasing Bhd (100%) Ekuiti Teroka (M) Sdn Bhd (100%) (28.59%) GMV-Omni Sdn Bhd • KIB Nominee (Tempatan) (100%) Sdn Bhd (100%) Wawasan Bulk Services Sdn Bhd OTHERS (30%) Quoted GMV-Offshore Sdn Bhd Global Carriers Berhad (100%) (12.62%) • Rimbun Astana Sdn Bhd (40%) Malaysian Bulk Carriers Berhad (18.39%) Glory Incentive Sdn Bhd (100%) • Permata Navigation Sdn Bhd (70%) • Gemala Navigation Sdn Bhd (70%) • Ratna Navigation Sdn Bhd (70%) • Kencana Navigation Sdn Bhd (70%) annual report 2011 7 SUBSIDIARIES Global Maritime Ventures Berhad (90%) SME Growth Acceleration Fund Sdn. Bhd. Mutiara Navigation Sdn Bhd GMV-Gagasan Sdn Bhd GMV-Orkim Sdn Bhd GMV-Alam Sdn Bhd GMV-Global Sdn Bhd GMV-Jasa Sdn Bhd (100%) (70%) (100%) (100%) (100%) (100%) (100%) Intan Navigation Sdn Bhd • Farmasi Cekal Sdn Bhd • Orkim Leader Sdn Bhd • Alam Explorasi (M) Sdn Bhd • Global BMesra Sdn Bhd • JM Global 1 (Labuan) Plc BPMB Urus Harta Sdn Bhd (70%) (40%) (40%) (40%) (49%) (49%) (100%) Kasa Navigation Sdn Bhd • Baycorp Ship Mgmt Sdn Bhd • Orkim Power Sdn Bhd • Alam Synergy I (L) Inc. • Global BMesra Dua Sdn Bhd • JM Global 2 (Labuan) Plc Pembangunan Ekuiti Sdn Bhd (70%) (40%) (40%) (40%) (49%) (49%) (54.8%) Mayang Navigation Sdn Bhd • Gagasan Ked Sdn Bhd • Orkim Merit Sdn Bhd • Alam Synergy II (L) Inc. • Global BIkhlas Sdn Bhd • JM Global 3 (Labuan) Plc (70%) (60%) (40%) (40%) (49%) (49%) Emerald Upline Sdn Bhd (100%) Sari Navigation Sdn Bhd • Gagasan Paha Sdn Bhd • Orkim Express Sdn Bhd • Alam Synergy III (L) Inc. GMV-Borcos Sdn Bhd • JM Global 4 (Labuan) Plc (70%) (60%) (40%) (40%) (100%) (49%) Maju Nominees (Tempatan) Nilam Navigation Sdn Bhd • Orkim Challenger Sdn Bhd • Syarikat Borcos Shipping Sdn Bhd GMV-Efogen Sdn Bhd Sdn. Bhd. (100%) (70%) (60%) (35%) (100%) Pembangunan Leasing Corporation Sdn Bhd Tiara Navigation Sdn Bhd • Orkim Discovery Sdn Bhd • Sea Weasel Limited (100%) (70%) (60%) (49%) GMV-Bahtera Sdn Bhd • Orkim Reliance Sdn Bhd PLC Credit & Factoring Sdn Bhd (100%) (60%) (100%) ASSOCIATES GMV-Regional Sdn Bhd BI Credit & Leasing Bhd (100%) Ekuiti Teroka (M) Sdn Bhd (100%) (28.59%) GMV-Omni Sdn Bhd • KIB Nominee (Tempatan) (100%) Sdn Bhd (100%) Wawasan Bulk Services Sdn Bhd OTHERS (30%) Quoted GMV-Offshore Sdn Bhd Global Carriers Berhad (100%) (12.62%) • Rimbun Astana Sdn Bhd (40%) Malaysian Bulk Carriers Berhad (18.39%) Glory Incentive Sdn Bhd (100%) • Permata Navigation Sdn Bhd (70%) • Gemala Navigation Sdn Bhd (70%) • Ratna Navigation Sdn Bhd (70%) • Kencana Navigation Sdn Bhd (70%) 8 FINANCIAL HIGHLIGHTS GROUP BANK 2011 2010 2011 2010 PROFITABILITY (RM MILLION) Interest Income 1,448 1,366 1,395 1,318 Net Income 1,153 1,244 1,028 1,076 Operating profit 586 539 618 503 Profit before taxation 619 549 618 503 Profit for the year 456 424 462 385 KEY BALANCE SHEET DATA (RM MILLION) Total assets 30,311 30,031 29,628 29,252 Total deposits and placements 3,961 4,074 3,356 3,326 Financial Investment - Available for sale (AFS) 1,049 1,868 1,017 1,861 Financial Investment -Held to maturity (HTM) 149 268 149 268 Loans, advances and financing 22,845 21,435 22,680 21,322 Total liabilities 22,879 22,784 22,576 22,384