Creating a Diverse Growth Platform ANNUAL REPORT 2008 Cover Rationale We’re in the business of education, of moulding our students, shaping their dreams and instilling them with the skills and knowledge so as to ensure they reach their full potential and realise their ambitions for the future.
This year’s cover utilises plasticine as a symbol of the way we shape our students to be the best they can be. Plasticine, in its original form, is malleable whilst still retaining its form once sculpted, and it never hardens or dries. This is truly reflected in the development and continuous learning of our students.
Our way of educating is distinctive in that we take the best practices, passionate staff and years of experience to optimise the way we teach. We are influencing lives and shaping the future of our nation. Contents
02 SEGi Upgraded to University College 22 Directors’ Profiles 04 Our Vision & Mission 26 The Management Team 05 Corporate Information 28 Heads of Centres & Business Units 06 Notice of Annual General Meeting 32 Consortium of Global Partners 09 Statement Accompanying Notice 37 Partner Professional Bodies of Annual General Meeting 40 What the Press Says 12 Chairman’s Statement 42 Awards & Recognition 16 Insights from Senior Management 48 Success Stories 20 Board of Directors 52 The SEGi Family 56 SEGi Education and Training Programmes 85 Corporate Governance Statement 62 Infrastructure and Facilities Upgrading 91 Statement of Directors’ Responsibilities 65 Looking Beyond Our Shores 92 Audit Committee Report 66 Special Projects 95 Statement on Internal Control 68 Research and Development 97 Financial Statements 72 Corporate Social Responsibility 155 Group Properties 78 Employee Welfare 157 Analysis of Shareholdings 79 Calendar of Events Form of Proxy 84 Financial Highlights SEGi Education Network SEGi Upgraded to University College
0 On 11th June 2008 SEGi College Malaysia was invited by the Ministry of Higher Education, under section 22 of the Private Higher Education Act 1996, to upgrade to status of University College. The invitation letter, signed by Minister of Higher Education, YB Datuk Seri Mohamed Khaled bin Nordin on 8th of April 2008, proposed the name SEGi University College following the upgrade.
Speaking at a simple but significant ceremony to hand over the certificate, The Minister of Higher Education, YB Datuk Seri Mohamed Khaled bin Nordin said that “the upgrade to status of University College reflects the growth and achievement of SEGi, which today has emerged as one of the most successful private higher education institution in Malaysia and internationally.”
• SEG International Bhd • SEGi upgraded to university college
University Putra Malaysia’s former Deputy Vice-Chancellor, The newly upgraded University College also aims to encourage 0 Professor Dr. Muhamad bin Awang has been appointed as the research and development culture among its academic staff, first Vice-Chancellor of the new University College. Prior to this, particularly in projects that cross-fertilise among different faculties. Prof. Muhamad was attached to the Ministry of Higher Education The publication of the inaugural SEGi Review reflects the new as an advisor. direction of SEGi.
“The invitation by the Ministry is another feather in SEGi’s cap. SEGi is poised to offer more programmes other than its traditional It marks the beginning of a new chapter of SEGi’s development business, accountancy and engineering programmes. Recently as a leading provider of industry relevant qualifications that are announced, the Group is looking at moving towards offering globally recognised,” said Dato’ Clement Hii, the then Group Chief programmes in the areas of Medicine, Dentistry, Pharmacy, Executive Officer. Nursing and Allied Health Sciences.
“Being invited to upgrade to University College status indicates “We have already launched our Pharmacy, Dental and Nursing that we have met stringent quality requirements assessed by the Programme. We have begun conducting the 2+2 Master of Ministry, and we are honoured by the trust placed on SEGi in Pharmacy in collaboration with the University of Sunderland. complementing the efforts of the government in making Malaysia Plans are also underway to offer medicine and dentistry degrees a hub of educational excellence,” Hii added. in collaboration with partner universities in India and worldwide. I am confident SEGi will grow further in status and programmes. As According to Prof. Muhamad, among the requirements met by well as these new developments, we are excited by the prospect SEGi are top-notch teaching and learning facilities available at of developing our own home-grown SEGi undergraduate and its flagship campus. The RM150 million campus, launched on postgraduate degree programmes,” enthused Prof. Muhamad. 18 February 2008 by the then Prime Minister, YB Tun Abdullah Bin Haji Ahmad Badawi, with full-fledged infrastructure including Consistent with its tagline “Passion Guided Industry Driven state-of-the-art laboratories, student residence blocks, a University”, care is taken to ensure that programmes available at sports & recreational complex, is able to provide a complete the University College are recognised by the industry, particularly learning experience for up to 12,000 students, both local and its professional bodies, both in Malaysia and overseas. international. SEGi will continue to collaborate with its consortium of global “Of course the academic team plays a crucial role in our upgrade universities in other disciplines in areas of product development, as to University College status as well. Aside from possessing the well as providing pathways for its students to obtain internationally right academic qualifications and industry experience, our faculty recognised degrees. members undergo continuous upgrading and training. Plans are in motion to recruit and upgrade the qualifications of its academic With these firm plans, SEGi is poised to take a quantum leap staff to PhD level in the next few years,” Prof. Muhamad added. growth in the near future.
• SEG International Bhd • Our Vision & Mission
0
VISION
We aspire to be the leading educational institution with global emphasis.
MISSION
To empower learners with educational and training excellence relevant to industry needs in contributing positively to global communities.
• SEG International Bhd • Corporate Information
Board of Directors Registered Office 0
Tan Sri Dato’ Seri Megat Najmuddin 6th Floor, SEGi University College Bin Dato’ Seri Dr. Haji Megat Khas No. 9, Jalan Teknologi Independent Non-Executive Chairman Taman Sains Selangor Kota Damansara, PJU 5 Dato’ (Dr.) Patrick Teoh Seng Foo 47810 Petaling Jaya Executive Deputy Chairman/President Selangor Darul Ehsan Tel : +603-6145 2752 Dato’ Clement Hii Chii Kok Fax : +603-6145 2755 Group Managing Director
Lee Kok Cheng Stock Exchange Listing Group Chief Executive Officer Bursa Malaysia Securities Berhad Amos Siew Boon Yeong Main Board Independent Non-Executive Director
Simon Hue Fook Chuan Auditors Independent Non-Executive Director Horwath Tony Foo San Kan Level 16 Tower C Independent Non-Executive Director Megan Avenue II 12 Jalan Yap Kwan Seng 50450 Kuala Lumpur Company Secretaries Tel : +603 2166 0000 Fax : +603 2166 1000 Chong Poh Yee (MIA 7620) Registrar Hew Ling Sze (MAICSA 7010381) Symphony Share Registrars Sdn Bhd Level 26 Menara Multi-Purpose Capital Square No. 8 Jalan Munshi Abdullah 50100 Kuala Lumpur Tel : +603 2721 2222 Fax : +603 2721 2530/1
• SEG International Bhd • Notice of Annual General Meeting
0 NOTICE IS HEREBY GIVEN that the Twenty-Third Annual General Meeting of SEG International Bhd (“SEGi” or “the Company”) will be held at Level 2, Right Wing, SEGi University College, No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan on Wednesday, 24 June 2009 at 10.30 a.m. for the following purposes:-
AS ORDINARY BUSINESS 1. To receive and adopt the Audited Financial Statements for the year ended 31 December 2008 and the Directors’ and Auditors’ Reports thereon. (Ordinary Resolution 1)
2. To declare a final dividend of 3 sen per ordinary share less income tax at 25% for the yearended 31 December 2008 as recommended by the Directors in their Report. (Ordinary Resolution 2)
3. To approve the payment of Directors’ fees for the year ended 31 December 2008. (Ordinary Resolution 3)
4. To re-elect the following Directors retiring in accordance with Article 86 of the Company’s Articles of Association:-
(a) Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas (Ordinary Resolution 4) (b) Mr. Amos Siew Boon Yeong (Ordinary Resolution 5)
5. To re-appoint Messrs. Horwath as Auditors of the Company and authorise the Directors to fix their remuneration. (Ordinary Resolution 6)
• SEG International Bhd • notice of annual general meeting
AS SPECIAL BUSINESS does not exceed ten percent (10%) of the total issued and 0 To consider and if thought fit, to pass the following resolutions:- paid-up share capital of the Company for the time being; an amount not exceeding the Company’s latest audited retained 6. Authority to allot and issue shares pursuant to Section profit of RM16,201,000 and share premium account of 132D of the Companies Act, 1965 RM35,876,000 as at 31 December 2008, be allocated by the Company for the Proposed Share Buy-Back AND THAT in “THAT pursuant to Section 132D of the Companies Act, respect of each purchase of SEGi Shares, the Directors shall 1965, the Directors be and are hereby empowered to issue have the absolute discretion to decide whether such shares shares in the Company, at any time and upon such terms and purchased are to be cancelled and/or retained as treasury conditions and for such purposes as the Directors may, in shares and distributed as dividends or resold on the market their absolute discretion, deem fit, provided that the aggregate of the Bursa Securities or subsequently cancelled; number of shares to be issued pursuant to this resolution in any one financial year does not exceed ten percent (10%) AND THAT the authority conferred by this resolution shall of the issued capital of the Company for the time being and commence immediately upon the passing of this resolution that the Directors be and are also empowered to obtain and shall continue to be in force until:- approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad i. the conclusion of the next AGM of the Company, at which (“Bursa Securities”) and that such authority shall continue in time it will lapse, unless renewed by an ordinary resolution force until the conclusion of the next Annual General Meeting passed by the shareholders of the Company in a general (“AGM”) of the Company.” (Ordinary Resolution 7) meeting; ii. the expiry of the period within which the next AGM of the 7. Proposed Renewal of Authority for the Purchase by Company is required to be held pursuant to Section 143(1) SEG International Bhd of its Own Shares (“Proposed of the Act (but shall not extend to such extension as may be Share Buy-Back”) allowed pursuant to Section 143(2) of the Act); or iii. revoked or varied by an ordinary resolution passed by the “THAT, subject to the provisions of the Companies Act, 1965 shareholders of the Company in a general meeting; (“the Act”) (as may be amended, modified or re-enacted from time to time), the Articles of Association of the Company, whichever is the earlier; the Listing Requirements of Bursa Securities and any other relevant authorities, the Company be and is hereby authorised AND THAT the Directors be and are hereby authorised to act to purchase on the market of the Bursa Securities and/or and to take all such steps to give full effect to the Proposed hold such number of ordinary shares of RM1.00 each in SEGi Share Buy-Back and do all such acts and things as they may (“SEGi Shares”) as may be determined by the Directors from deem necessary or expedient in the best interests of the time to time through Bursa Securities upon such terms and Company.” (Ordinary Resolution 8) conditions as the Directors may deem fit in the interest of the Company provided that the total aggregate number of shares 8. To consider any other business of which due notice shall have purchased or to be purchased pursuant to this resolution been given.
• SEG International Bhd • notice of annual general meeting
0 NOTICE OF BOOKS CLOSURE NOTES:
1. A member entitled to attend and vote at the meeting is entitled to appoint NOTICE IS HEREBY GIVEN that the Register of Members will be not more than two proxies to attend and vote in his stead. A proxy may closed on 1 August 2009 to determine shareholders’ entitlement but need not be a member of the Company and the provision of Section to the dividend payment. The dividend, if approved, will be paid 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. A on 12 August 2009 to shareholders whose names appear in the member who is an authorised nominee may appoint at least one proxy in Record of Depositors on 31 July 2009. respect of each securities account it holds.
2. The Form of Proxy must be deposited at the Registered Office of the FURTHER NOTICE IS HEREBY GIVEN that a depositor shall Company at 6th Floor, SEGi University College, No. 9, Jalan Teknologi, qualify for entitlement to the final dividend only in respect of:- Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan not less than 48 hours before the time and date of a) shares transferred into the depositor’s securities account the meeting or adjourned meeting. before 4.00 p.m. on 31 July 2009 in respect of ordinary 3. Explanatory notes on Special Business transfers; and a. Ordinary Resolution 7 - Authority to allot and issue shares b) shares bought on Bursa Securities on a cum entitlement pursuant to Section 132D of the Companies Act, 1965 basis according to the Rules of the Bursa Securities. The proposed Ordinary Resolution 7, if passed, will give authority to the Directors of the Company to issue ordinary shares in the Company up to an aggregate amount of not exceeding ten percent By Order of the Board (10%) of the issued share capital of the Company for such purposes as the Directors consider would be in the interest of the Company. This authority, unless revoked or varied at a general meeting, will CHONG POH YEE (MIA 7620) expire at the conclusion of the next AGM of the Company. HEW LING SZE (MAICSA 7010381) b. Ordinary Resolution 8 - Proposed Renewal of Authority for Secretaries the Proposed Share Buy-Back
Petaling Jaya, Selangor The proposed Ordinary Resolution 8, if passed, will empower the Date: 2 June 2009 Directors to purchase SEGi shares through Bursa Securities up to an amount not exceeding ten percent (10%) of the issued and paid- up share capital of the Company. This authority, unless revoked or varied at a general meeting, will expire at the conclusion of the next AGM of the Company.
Detailed information on the Proposed Share Buy-Back is set out in the Statement to Shareholders dated 2 June 2009 which is dispatched together with this Annual Report.
• SEG International Bhd • Statement Accompanying Notice of Annual General Meeting (Pursuant to Paragraph 8.28(2) of the Listing Requirements of the Bursa Malaysia Securities Berhad)
1. directors who are standing for re-election at the Twenty-Third Annual General Meeting of 0 the Company
The Directors retiring at the Twenty-Third Annual General Meeting pursuant to Article 86 of the Company’s Articles of Association are as follows:
(a) Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas; and
(b) Mr. Amos Siew Boon Yeong.
2. details of Attendance of Directors at Board meetings
There were five (5) Board meetings held during the financial year ended 31 December 2008. Details of attendance of the Directors are set out in the Corporate Governance Statement appearing in page 85 of the Annual Report.
3. place, Date and Time of Twenty-Third Annual General Meeting
The Twenty-Third Annual General Meeting of the Company will be held at Level 2, Right Wing, SEGi University College, No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan on Wednesday, 24 June 2009 at 10.30 a.m.
• SEG International Bhd •
focusING on OPPORTUNITIES helping you realise your ambitions Chairman’s Statement
12
TAN SRI DATO’ SERI MEGAT NAJMUDDIN BIN DATO’ SERI DR. HAJI MEGAT KHAS Chairman
• SEG International Bhd • chairman’s statement
13 On behalf of the Board of Directors, it is my pleasure to present the Annual Report and Audited Financial Statements of SEG International Bhd (“SEGi”) and the Group for the year ended 31 December 2008.
Malaysian private higher education providers are increasingly becoming a strong contributor towards meeting the country’s human resource needs. The Government has also given these education providers more emphasis. Due recognition were given to the private colleges which are providing quality education by upgrading their status to University College.
The continuing emphasis placed by the industries on employing knowledgeable workers also played an important role in shaping the mindset of individuals to invest and focus on the attainment of knowledge and skills, irrespective of the economic environment.
Financial Performance Dividend I am pleased to report that in spite of the overall weak economic The Board of Directors is recommending a final dividend of 3 environment, the Group achieved higher revenue of RM127.4 sen per share, less income tax, for the year ended 31 December million for the year under review, as compared to the previous 2008, subject to the shareholders’ approval at the forthcoming year of RM86.3 million, representing an improvement of 48%. In Annual General Meeting. tandem with the higher revenue, the Group recorded a higher pre- tax profit of RM9.9 million for the year ended 31 December 2008 as compared to the preceding year of RM2.5 million. Operational Review Several milestones were achieved and one definitely worth The improvement in performance was mainly attributable to the mentioning was the upgrading of the status of SEGi College introduction of new academic and training courses at the Group’s Malaysia to a University College status. With this new status, the institutions as well as the gain on disposal of the Group’s Flagship Group has been developing many new SEGi’s own undergraduate Campus in Kota Damansara. and postgraduate degree programmes.
• SEG International Bhd • chairman’s statement
14 SEGi is a well established brand name, being a private education Corporate Development provider for over 30 years. As such, we foresee the new The Group is in the process of acquiring a piece of leasehold programmes that the Group is developing will further enhance land at Kota Damansara, within the vicinity of the SEGi University the profitability of the Group. SEGi’s brand name will also be College campus. The land will potentially be developed to provide established internationally as the Group has started offering additional facilities to the University College. our own programmes to institutions of higher learning outside Malaysia. Corporate Social Responsibility (“CSR”) During the year, the Group has also strengthened its new Faculty of Despite the stronger overall financial performance, the Group Allied Health Sciences. Amongst the new programmes launched realises that the traditional responsibility of delivering profits to was the Master of Pharmacy programme, a twinning course shareholders is no longer adequate. We are clearly aware of our with the University of Sunderland, United Kingdom. The Group corporate responsibility and believe in conducting our business in has also established five Nursing Schools within the Group’s an economically, socially and environmentally sustainable manner. institutions, making us one of the main education providers in the SEGi believes that CSR is more than just paying lip service, for our field of nursing. We see a big potential in healthcare education organisation, it is a full-time and an ongoing mission. as this industry is expected to grow with increasing consumer’s demand for quality healthcare. Our activities in 2008 saw the Group’s contribution, participation and support in programmes and projects to enhance healthcare, Since the re-branding of the Group’s institution in 2006 and the professional development and preservation of the environment, all launching of the main campus at Kota Damansara in mid-2007, geared towards the benefit and betterment of the lives we touch. the Group has seen a significant increase in the student numbers at all the Group’s institutions. The growth in the number of new SEGi has also given out a significant amount of scholarships and enrolments has been very encouraging and we believe that this bursaries, and was involved in the promotion of charity, sports trend will continue. and other nation building initiatives. Among the scholarship funds which SEGi initiated or participated in are SEGi High Achievers One of the main challenges facing by SEGi is the competition that Scholarship, SEGi Sports Scholarship, Dana Pendidikan exists between the institutions of higher learning in the country. Karangkraf, 8TV Scholarship Fund, Star Education Fund and Seeing that, the Group has continuously explored and developed Skim Kurang Mampu. These funds have offered the top scorers new programmes to target the changing education needs of and the needy a chance to pursue tertiary education. students, as well as revising its curriculum to ensure that its programmes are industry-driven and value-added with emphasis on increasing the employability of the graduates. Steps are also taken to give the students opportunities for industrial attachments during their tenure with us.
• SEG International Bhd • chairman’s statement
SEGi also supports The Technical Resource and Internship A special thanks and gratitude also go to the management and 15 Network (TRAIN) programme to provide vocational training skills staff who have played a pivotal role in delivering the results of the to help the less academically inclined to secure jobs. TRAIN Group. was established to provide opportunities to our youths to get an equally good start in the job market. Eligible trainees under the On behalf of the Board, I would also like to extend our gratitude programme will enjoy scholarships, subsidised fees, as well as to Dato’ Pahamin A. Rajab, Datin Fadzilah Bte Saad and Encik private and government loans. Abdullah Kamal Bin Shafi’i, who retired on 25 June 2008, for their invaluable contributions to the Group. The Group has always remained committed to its quest to be a responsible and caring corporate citizen. Last but not least, I would like to take this opportunity to thank my fellow Board members for their support and commitment. We look forward to fostering stronger links in years to come. Future Outlook The prospect of the Group remains positive notwithstanding the economic uncertainty. We believe that education and training are for all levels of society and we remain committed to offer programmes relevant to the needs of the society. With this in mind coupled with good business strategies and proper management of risks, we see better growth in the business of the Group in the current financial year.
Acknowledgements TAN SRI DATO’ SERI MEGAT NAJMUDDIN On behalf of the Board, I wish to convey our utmost appreciation BIN DATO’ SERI DR. HAJI MEGAT KHAS to our valued shareholders, global partners, students, regulatory Chairman authorities, bankers and business associates for their continued support as we forge ahead to grow and achieve greater success. 15 May 2009
• SEG International Bhd • Insights from
16 DATO’ (DR.) PATRICK TEOH SENG FOO DATO’ CLEMENT HII CHII KOK Executive Deputy Chairman/President Group Managing Director Seg International Bhd Seg International Bhd
We are gratified with yet another successful year with many SEGi reported total revenue of RM127.4 million and a pre-tax significant milestones. Chief among these is the invitation by the profit of RM9.9 million last year, an improvement of 48% and Ministry of Higher Education to upgrade the status of our main 299% respectively compared with the corresponding period campus to SEGi University College on 30 June 2008. The status in 2007. This financial growth is indicative of our continued provides SEGi with an invaluable platform to grow our own commitment to the delivery of first-rate academic programmes. programme offerings. Along with these positive financial reports, SEGi’s current total Another cornerstone of our success is our emphasis as an student population stands at 18,500, setting the Group in good Institution which is ‘Passion Guided, Industry Driven’. SEGi standing to achieve our full capacity of 26,000 students within continues to strengthen its relationship with internationally the next few years. acclaimed partner universities from the United Kingdom, Australia and the United States. I would also like to take this opportunity to announce the restructure of our Directors/Senior Management which saw Mr. In 2008, SEGi made major commitments to Charity and Lee Kok Cheng appointed as the new Group Chief Executive Scholarships and implemented a range of initiatives which reach Officer, while I will remain as Managing Director of the Group, out to the wider community. The Group’s dedication to grooming following my recent appoint as Executive Deputy Chairman of Star future leaders goes hand-in-hand with our CSR initiatives which Publications (M) Bhd. This restructure also saw the appointment also benefit its stakeholders in the long term. of Ms. Hew Moi Lan as Group Chief Operating Officer. This restructuring will help to strengthen the management team. SEGi has come a long way over the past few years, achieving notable milestones year after year. These form a solid foundation Despite the current economic uncertainty, we remain positive for robust performance in the coming years. about the future outlook for the Group and, with the development of new programmes and increased focus on the quality and In fact, we are beginning to feel the positive impact from our delivery of these programmes, we expect further growth in operations. Despite the current depressed state of economy, 2009. we are cautiously optimistic that SEGi should experience continuous growth with improved performance in the near future.
• SEG International Bhd • Senior Management
LEE KOK CHENG HEW MOI LAN 17 Group Chief Executive Officer Chief Operating Officer Seg International Bhd Seg International Bhd
We strive to maintain the integrity of our courses and graduates I have been with the Group for more than 20 years, ever since by developing strong foundations and partnerships with relevant 1986 when I joined Systematic Business Training Centre, now professional/industry bodies and continuously shaping the known as SEGi College Kuala Lumpur. To see the continued syllabus to meet industry needs and trends. This has allowed us growth of SEGi into the conglomerate of an educational to provide internationally recognised programmes and produce institution it has become today fills me with great pride, and I am career-ready graduates with industry recognized qualifications. sure the future will continue to bring success. Needless to say, the expansion of the Group entails a great task in managing the In 2008, the Group strengthened its programme offerings, operations of each institution and ensuring the standardisation of particularly within the Faculty of Allied Health Sciences. One of operational procedures of the whole Group. the notable newly launched programmes was the Master of Pharmacy programme. The Group also expanded its Nursing In recent years, the Group has invested significant funds into Schools and now boasts five schools within the Group’s the facilities and infrastructure of the institutions so as to establish institutions. Developments in these areas have succeeded in the prestige of the Group and provide the best possible learning further establishing SEGi as an Allied Health Science focused environment for the students. institution. Since the upgrade of SEGi College Malaysia in Kota Damanasara, These are exciting times, as SEGi enters a new stage and seeks to SEGi University College, we have made this flagship campus to offer students programmes and modes of study that will allow our centre for operations. By centralising and standardising our them to capitalise on opportunities and stay competitive in the operations, we hope to reduce overall costs and optimise the international and local marketplaces. With the implementation usage of our resources in manpower and facilities. of new programmes and by retaining high standards in our delivery and graduates we hope that we can ultimately reach our This pooling of resources will also help to reduce other operating goal to be a full-fledged University in the next few years. costs, namely distribution costs, administration costs and finance costs. Inevitably, this will increase the profit margin of the Group as a whole to the benefit of stakeholders and personnel.
• SEG International Bhd •
STRENGTHENING Our POSITION Magnifying your opportunities Board of Directors
From Left to Right
Dato’ Clement Hii Chii Kok Simon Hue Fook Chuan Tony Foo San Kan Tan Sri Dato’ Seri Megat Najmuddin Bin Group Managing Director Independent Independent Dato’ Seri Dr. Haji Megat Khas Non-Executive Director Non-Executive Director Independent Non-Executive Chairman
20
• SEG International Bhd • board of directors
From Left to Right
Amos Siew Boon Yeong Dato’ (Dr.) Partick Teoh Seng Foo Lee Kok Cheng Independent Executive Deputy Chairman/President Group Chief Executive Officer Non-Executive Director
21
• SEG International Bhd • Directors’ Profiles
22 TAN SRI DATO’ SERI MEGAT NAJMUDDIN BIN Tan Sri Dato’ Seri Megat Najmuddin Khas also serves as the DATO’ SERI DR. Haji MEGAT KHAS Chairman of the Company’s Nominating and Remuneration (Independent Non-Executive Chairman) Committees as well as the Executive Committee. Malaysian He does not have any family relationship with any director and/or Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat major shareholder of the Company nor does he have any conflict Khas, aged 64, was appointed to the Board on 2 February 2001 of interest with the Company. He has no convictions for any and assumed the position as Chairman on 27 August 2008. He offences within the past ten (10) years. holds an Honours Degree in Law from the University of Singapore. He practiced law for 14 years until 1986 and since then he Tan Sri Dato’ Seri Megat Najmuddin Khas attended all the five (5) concentrated on business as well as political activities. He was Board meetings held during the year ended 31 December 2008. formerly the State Assemblyman of Kelana Jaya, Selangor for two terms. He is prominent in the corporate sector and holds several important posts. He is the President of both the Federation of Dato’ (Dr.) Patrick Teoh Seng Foo (Executive Deputy Chairman/President) Public Listed Companies Berhad (“FPLC”) and the Malaysian Malaysian Institute of Corporate Governance (“MICG”). Dato’ (Dr.) Patrick Teoh Seng Foo, aged 52, was appointed to He currently sits as the Non-Executive Chairman of 5 public listed the Board as President on 2 February 2001 and subsequently companies, namely Tradewinds Corporation Berhad, Asian Pac assumed the position of Executive Deputy Chairman/President on Holdings Berhad, Formis Resources Berhad (formerly known as 27 August 2008. Dato’ (Dr.) Patrick Teoh is also a member of the My-Infotech (M) Berhad), MajuPerak Holdings Berhad and SEG Executive and Remuneration Committees of the Company. International Bhd. He sits as an Independent Non-Executive Director on the Board of Dialog Group Berhad and Salcon Berhad. He is a Chartered Accountant of the Malaysian Institute of He was a member of the High Level Finance Committee of the Accountants and a Chartered Management Accountant/Fellow Ministry of Finance and Capital Market Advisory Council of the Member of the Chartered Institute of Management Accountants, Securities Commission (“CMAC”). He was a member of the 2nd United Kingdom. He also holds a Diploma in Commerce from National Economic Consultative Council (“NECC2”), Bank Negara Tunku Abdul Rahman College. Malaysia’s (BNM) Corporate Debt Restructuring Committee (“CDRC”). With his keen interest in education, Dato’ (Dr.) Patrick Teoh is Senior Advisor to Centre for Education Opportunities Bhd and He now sits on UMNO (Ruling Party) Malaysia’s Disciplinary Yayasan Pendidikan Bistari, an education foundation set up to offer Committee. He is also active in the Institute of Integrity Malaysia continuous lifelong learning, education and training opportunities (“IIM”), Transparency International Malaysia (TIM), and is an for young Malaysians. Adjunct Professor at Faculty of Law, Universiti Utara Malaysia. He currently sits as a member of Bank Negara Malaysia’s Financial Currently, Dato’ (Dr.) Patrick Teoh is also the Chairman of Eduspec Directors’ Education Steering Committee (FIDE) and Advisory Sdn Bhd and Youtheme Online Sdn Bhd. Both of these entities are dedicated to the promotion and implementation of e-learning Board of Malaysian Anti-Corruption Commission (MACC). and e-community in primary and secondary schools all over Malaysia.
• SEG International Bhd • directors’ profiles
For his contribution to education, Dato’ (Dr.) Patrick Teoh was He graduated with a Bachelor of Laws (Hons) degree from the 23 conferred the Honorary Doctorate in Business Administration by United Kingdom. He was conferred the Honorary Doctorate of the University of Abertay Dundee, United Kingdom and is currently Business Administration by the University of Sunderland, United a patron of the University of Abertay Foundation. Recently, Dato’ Kingdom, in early 2006. In 2007, he was conferred an Honorary (Dr.) Patrick Teoh has also been appointed as Deputy Chairman Doctorate of Laws by the University of Wolverhampton, United of STAR Foundation. Kingdom.
Dato’ (Dr.) Patrick Teoh has wide experience in commerce He is a former senior journalist holding positions in several local and industry, having held senior management positions in newspapers, including as Chief Editor of Borneo’s leading English multinationals such as Intel Technology, Woodward & Dickerson daily, “The Borneo Post”. He also served in senior positions with Inc and PricewaterhouseCoopers. Presently, he holds these board management firms and was appointed a Justice of Peace in positions in the following public listed companies:- 2005.
EcoFirst Consolidated Bhd - Executive Deputy Chairman Presently he is also the Executive Deputy Chairman of Malaysia’s Meda Inc. Berhad - Non-Executive Chairman largest media group, Star Publications (M) Berhad and a Non- Executive Director of EcoFirst Consolidated Berhad. He is a substantial shareholder of the Company by virtue of his indirect shareholding in EcoFirst Consolidated Bhd. Apart He does not have any family relationship with any director from the above, he has no family relationship with any director and/or major shareholder of the Company. He has not entered and/or major shareholder of the Company. He has not entered into any transaction, whether directly or indirectly, which has a into any transaction, whether directly or indirectly, which has a conflict of interest with the Company, and has no convictions for conflict of interest with the Company other than those disclosed any offences within the past ten (10) years. in the accompanying financial statements and has no convictions for any offences within the past ten (10) years. Dato’ Clement Hii attended all the five (5) Board meetings held during the year ended 31 December 2008. Dato’ (Dr.) Patrick Teoh attended all the five (5) Board meetings held during the year ended 31 December 2008. Lee Kok Cheng (Group Chief Executive Officer) Dato’ Clement Hii Chii Kok Malaysian (Group Managing Director) Malaysian Lee Kok Cheng, aged 49, was appointed to the Board as Executive Director on 28 June 2005. On 27 February 2009, he assumed his Dato’ Clement Hii Chii Kok, aged 51, was appointed to the Board responsibility as the Group Chief Executive Officer. He obtained on 3 September 2001 as an Executive Director of the Company the BSc (Hons) Computer Science from Universiti Sains Malaysia and subsequently assumed the position of Chief Executive Officer in 1985 and thereafter in 1996 he obtained his Masters in Business on 10 October 2001. On 27 August 2008, he was appointed the Administration from the University of Dubuque, Iowa, United Managing Director/Chief Executive Officer of the Company and in States of America. He also holds a Postgraduate Certificate in January 2009, was re-designated the Group Managing Director. Business Research from the University of Newcastle, Australia. Dato’ Clement Hii is also a member of the Executive Committee of the Company.
• SEG International Bhd • directors’ profiles
24 He joined the Group as Vice President (Operations) in June 2003 He started his auditing career and professional training with the and thereafter was promoted to the position of Chief Operating accounting firm Coopers & Lybrand in 1978 before establishing Officer in January 2005. He was also the Principal for SEGi’s his own practice in 1988. He is currently the sole practitioner of flagship campus in Kota Damansara. He is a member ofthe the public accounting firm Messrs. Siew Boon Yeong & Associates. Executive Committee and also the Chairman for Risk Management He has gained extensive knowledge, skills and experience in Committee of the Company. auditing, tax planning, corporate finance and financial planning. He was also involved in numerous assignments on mergers and Prior to this, Mr. Lee has eighteen (18) years of experience in acquisitions, debt restructuring and liquidation. He is also an another educational institution and his last position was the Independent Non-Executive Director of EcoFirst Consolidated Group Executive Director of that institution. He was instrumental Bhd, and Petra Energy Berhad, and an Executive Director of TMC in implementing many e-applications to replace paperwork for Life Sciences Bhd. the accounting, human resource and information technology functions. He is the Chairman of the Audit Committee and a member of the Executive Committee of the Company. He does not have any He does not have any family relationship with any director and/or family relationship with any director and/or major shareholder of major shareholder of the Company. He has not entered into any the Company, nor does he have any conflict of interest with the transaction which may be deemed to have potential conflict of Company. He has no convictions for any offences within the past interest with the Company and has no convictions for any offences ten (10) years. within the past ten (10) years. Mr. Amos Siew attended all the five (5) Board Meetings held during Mr. Lee attended all the five (5) Board meetings held during the the year ended 31 December 2008. year ended 31 December 2008.
Simon Hue Fook Chuan Amos Siew Boon Yeong (Independent Non-Executive Director) (Independent Non-Executive Director) Malaysian Malaysian Simon Hue Fook Chuan, aged 47, was appointed to the Board on Amos Siew Boon Yeong, aged 50, was appointed to the Board 20 June 2001. He obtained both the Bachelor of Economics and on 2 February 2001. He qualified as a Certified Public Accountant Bachelor of Laws degree from the University of Sydney in 1984 in 1984 and is currently a member of the Malaysian Institute of and 1986 respectively. Thereafter, he was admitted as a Barrister- Certified Public Accountants, a Chartered Accountant with the At-Law to the Supreme Court of New South Wales, Australia in Malaysian Institute of Accountants and an associate member 1987 and in 1988 he was admitted as an Advocate and Solicitor of the Chartered Tax Institute of Malaysia. He is also a Certified to the High Court of Malaya. Financial Planner and is a member of the Financial Planning Association of Malaysia. He is presently practising as an Advocate and Solicitor under the firm’s name of Messrs Simon Hue & Associates which has been established since April 2000. Formerly, he practised in Messrs Ho, Loke & Koh, as a Legal Assistant from 1990 to 1994 and later as a Partner from 1994 to March 2000.
• SEG International Bhd • directors’ profiles
He is a member of the Audit Committee, Nominating Committee He is currently a Director of Symphony House Berhad, Star 25 and Risk Management Committee of the Company. He does Publications (Malaysia) Berhad, OSK Holdings Berhad and not hold any other directorships in public companies. He does Allianz Malaysia Berhad (formerly known as Allianz General not have any family relationship with any director and/or major Insurance Malaysia Berhad), listed on the Main Board of Bursa shareholder of the Company, nor does he have any conflict of Malaysia Securities Bhd (“Bursa Malaysia”) and OSK Ventures interest with the Company. He has no convictions for any offences International Berhad, listed on the MESDAQ Board of Bursa within the past ten (10) years. Malaysia. He is also a Director of OSK Trustees Berhad, OSK Investment Bank Berhad (formerly known as OSK Securities Mr. Simon Hue attended all the five (5) Board Meetings held during Berhad), Allianz Life Insurance Malaysia Berhad and Allianz the year ended 31 December 2008. General Insurance Company (Malaysia) Berhad.
Mr. Tony Foo is a member of the Audit Committee as well as Tony Foo San Kan Nominating and Remuneration Committees of the Company. He (Independent Non-Executive Director) does not have family relationship with any director and/or major Malaysian shareholder of the Company, nor does he have any conflict of interest with the Company. He has no convictions for offences Tony Foo San Kan, aged 60, is a Chartered Accountant of the within the past ten (10) years. Malaysian Institute of Accountants. He is also a member of the Malaysian Institute of Certified Public Accountants, a fellow of the Mr. Tony Foo attended all the five (5) Board meetings held during Institute of Chartered Accountants in England and Wales as well the year ended 31 December 2008. as the Malaysian Institute of Taxation.
He was the Country Managing Partner of Ernst & Young Malaysia from 1997 to 2002 before he retired as a practising accountant. He has 34 years of experience in the accounting profession, the last 30 years of which were spent in various positions in Ernst & Young including stints in several offices in East and West Malaysia. During the course of his career, he was involved in various industrial sectors including financial services, energy, manufacturing, plantations, property, construction, leisure and entertainment. His professional experience covers almost all aspects of the accounting profession, including but not limited to audit, receivership, liquidation, taxation, secretarial, corporate advisory and management consultancy and all services related to the Labuan Offshore Financial Services Authority (LOFSA).
• SEG International Bhd • The Management Team
sitting from left to right
Lee Kok Cheng Group Chief Executive Officer
Professor Dr. B.C. Tan Senior Vice President (Academic)
Hew Moi Lan Group Chief Operating Officer
Cheryl Chong Poh Yee 26 Vice President, Finance and Corporate Services Dato’ Clement Hii Group Managing Director
Lilaine Lee Sook Mun Director, Group Human Resources
• SEG International Bhd • standing from left to right
Chow Kim Wai Hew Ling Sze Annuar Zamzury Bin Jolis Head, Internal Audit Company Secretary Director, Training Services
Adeline P’ng Aih Teang Victor Chan Yong Lit Seng Manager, Legal Services Director, Group Marketing Manager, Information Technology
Hajjah Roswati Binti Rahmat Lee Kee Hin Yap Siew Eng Director, Regulatory Affairs Head, Creative Communications Manager, Learning and Development
Stella Lau Kah Wai Nellie Lee Chooi Yen Doreen Ong Lee Aei Head, Programme Development Senior Manager, Procurement Senior Manager, Group Human Resources 27 & Quality Assurance Ng Kim Leng Senior Manager, Group Finance
• SEG International Bhd • Heads of Centres
SEGi UNIVERSITY COLLEGE sitting from left to right standing from left to right
Tengku Sheila Binti Tengku Irshad Ghulam Lai Yin Ling Annuar Zainal Registrar Head, School of Engineering Head, School of Tourism & Hospitality Peter Tang Chi Shing Sugumaran A/L Selladurai Professor Dr. Muhamad Bin Awang Manager, International Marketing Head, School of Business, Vice Chancellor Accounting & Management Goh Jin Hui Dr. K.T. Nathan Manager, International Marketing Dr. Chen Won Sun Dean, Faculty of Dentistry Head, American Degree Program 28 Yap Von Sze Professor Dr. B.C. Tan Manager, Sales & Marketing Fiona Wong E Chiong Deputy Vice Chancellor (Academic) Head, School of Creative Arts & Design Thian Giok Fong Manager, Finance Sau Ai Leng Head, School of Nursing Capt (Rtd) Roslee Bin Mohamad Manager, Building & Facilities Anita Toh Ann Lee Head, Language Centre Dr. Daphne Loke Wai Yue Director, Centre for Continuing Education Chan Shirley Assistant Manager, Examination Unit Norman Chu Su Jiun Head, School of Built Environment Shanthi A/P C.K.G. Pillay Head, Foundation Studies Professor Dr. Wong Wah Hun Dean, Faculty of Pharmacy Tang Chun Meng & Health Sciences Head, School of Information Technology
• SEG International Bhd • & Business Units
SEGi COLLEGE SUBANG JAYA sitting from left to right standing from left to right
Dr. Steven Baptist Roslan Bin Othman Thavamaney A/P Vadiveloo Deputy Principal Head, School of Creative Arts & Design Head, Centre for Continuing Education Head, Faculty of American Degree Programme Lim Sim Joo Lu Poh Lian Dr. Lisa Tan Saw Poh Head, Language Centre Head, School of Nursing (Operations) Principal Vilasini A/P V.S. Kandiah Gehjanthiran A/L Dorai Rethinam Helena Tan Guad Dee Head, Examination Unit Head, School of Engineering & Dean, Business, Accounting & Management Information Technology Doreen D’orville 29 Lydia Foong Yoke Yean Manager, Business Development Sueann Chok Soo Yan Dean, Faculty of Education, Manager, Finance Social & Health Sciences Soh Lay Guat Head, Administration Carolyn Marie Choo Head, School of Early Childhood Education Norman Nathan Bin Abdullah Manager, Sales & Marketing Rosaline Ng Hong Kim Head, School of Educational Studies Angela Anak Adrian Suji Head, Undergraduate Department
• SEG International Bhd • heads of centres & business units
SEGi COLLEGE KUALA LUMPUR sitting from left to right standing from left to right
Datin Devagey A/P K. Raru Thangaswary D/O Karuppiah Lai Yoke Mooi Head, School of Nursing Head, Operations Manager, Finance
Lawrence Ngu Herng Hwa Felicia Chan Sow Hoe Sivakumar A/L Pertheban Principal Manager, Human Resources Head, School of Engineering & Technology
Dr. Doris Pamela Alexius Kalaimani Anand Noorazura Binti Ambak Deputy Principal (Academic) Head, Post Graduate Studies Manager, E-Learning
30 Tang Choong Pang Zaidah Binti Ismail Iris Cynthia Gomez Registrar Senior Lecturer, School of Nursing Head, Undergraduate Programme
Gary Tan Hong Guan Norulashikin Binti Ismail Manager, Sales & Marketing Head, Internal Diploma Programme
Lum Soo Yan Kausalah Devi Kanagasabai Head, School of Nursing (Operations) Head, School of Nursing (Academic)
Arnuzul Zaliza Binti Dato’ Azizan Head, Vocational Programme
• SEG International Bhd • heads of centres & business units
sitting from left to right standing from left to right
Stella Lau Kah Wai Helen Ngu Moi Hiong Rosalind Chee Siew May Principal, SEGi College Sarawak Head, Operations Head, Kindergarten Division SEGi College Sarawak Jeffrey Goh Beng Poh Rohasdeen Bin Rosli Principal, SEGi College Penang Joseph Wong Fook Ming Centre Manager Head, Business Development Segi Training Centre Pulau Indah Annuar Zamzury Bin Jolis SEGi College Sarawak Director, Training Services Hafizah Binti Johar Principal, Kolej SEGi Seri Kembangan Chionh Hai Pin Senior Centre Manager Vice Principal, SEGi College Penang Segi Training Centre Seri Kembangan 31 Christine Looi Head, Sales & Operations Elaine Wee Yee Leng Ifpa Resources Sdn Bhd Head, School of Nursing SEGi College Penang
• SEG International Bhd • Consortium of Global Partners
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The University of Sheffield (TUOS), UK University of Abertay Dundee (UAD), UK
The University of Sheffield grew out of the Sheffield Medical The University of Abertay Dundee has a long history and has School (founded in 1828), Firth College (1879) and the Sheffield quickly become one of Scotland’s leading universities, highly Technical School (1884). These three institutions came together ranked for its academic performance. in 1897 to form the University College of Sheffield, which in turn became the University of Sheffield in 1905. Today, the University From its birth as the Dundee Technical Institute in 1888, the has a total of 70 Academic Departments and Sections, grouped University of Abertay Dundee has received global acclaim for in the 7 Faculties (Architectural Studies, Arts, Engineering, Law, developing innovative and instructive courses in constantly Medicine, Pure Science and Social Sciences). evolving disciplines spanning technical fields such as software engineering and computer games design as well as business The University is widely recognised as one of the UK’s leading fields, including accountancy and commerce. universities. Quality assessments rate teaching very highly across a wide range of subjects, and official research assessments Being among Scotland’s top three (3) institutions for research rate the University as a centre for world-class research in many funding, UAD has an entrenched reputation for professionalism disciplines. in offering career-driven higher education. It received top ranking by UK’s Quality Assurance Agency when 79% of graduates gave The University of Sheffield has been teaching Engineering the ‘thumbs up’ for the University’s teaching methodologies and programmes at degree level for more than 120 years and is one learning approaches. of the most prestigious in the UK, with its various departments highly rated for excellence in teaching and research quality. It is SEGi collaborates with UAD in offering 3+0 honours degrees in well known for its innovation and promotion of new ideas and new Business Administration and Marketing. technologies.
The University of Sheffield’s research partners and clients include Boeing, Rolls Royce, Unilever, Boots, AstraZeneca, GSK, ICI, Slazenger, and many more prominent multinationals, as well as the UK and overseas government agencies and charitable foundations.
Sheffield offers pathways for SEGi students to complete their engineering degree with the University.
• SEG International Bhd • consortium of global partners
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University of Greenwich (UOG), UK University of Sunderland (UOS), UK
An award-winning university with research affiliations and The University of Sunderland is a dynamic, modern university with partnerships in more than 80 countries worldwide, UOG has high standards of teaching and research, and a growing reputation delivered international education excellence in the vibrant and as the university of enterprise, employment and opportunity. challenging technology-based world. Sunderland, located at the heart of the bustling North East of UOG is accredited by the Institute of Management of Information England, is acknowledged as one of Britain’s foremost attractions Systems (IMIS). It is also a past recipient of prestigious awards for its surviving historic and cultural heritage. It founded its Business from the British Computing Society (BCS), and the Queen’s School in the early 1990’s and prospered in physical expansion and reputation within five years. Its teaching has been recognised for Anniversary Prize. excellence by the Quality Assurance Agency in the UK. With a flexible module-based approach supported by SEGi’s The University has diversified its programmes to tailor to corporate learning support centres, UOG offers the honours computing clients, entrepreneurs and researchers alike. It has also developed degree with exposure to subjects such as information technology, four research centres under its Business and Management networking, e-commerce and web development and IT project Research Group initiative. management. SEGi also collaborates with UOG in offering the 3+0 honours degree in Accounting & Finance. In Malaysia, the 3+0 Bachelor of Engineering degrees in Mechanical Engineering and Electronic & Electrical Engineering are offered by the University to cater to those who want to experience the advantages of Sunderland’s contemporary engineering expertise. SEGi also offers the Sunderland University bachelor degree in Business & Management and International Tourism & Hospitality Management, as well as the Master of Business Administration programme. Graduates of the SEGi’s diploma programmes also enjoy a full pathway to the University’s popular business top-up programmes.
The Faculty of Pharmacy & Allied Health Sciences, SEGi University College in collaboration with the Sunderland Pharmacy School, University of Sunderland, UK offer the Master in Pharmacy (MPharm) (2+2) twinning programme.
• SEG International Bhd • consortium of global partners
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University of Teesside (UOT), UK University of Southern Queensland (USQ), Australia
The University of Teesside is a dynamic modern university The University of Southern Queensland is a leader in flexible dedicated to delivering quality programmes of study; learning, has a significant profile in regionally relevant research demonstrating a commitment to social inclusion and widening and is closely engaged with its communities. The University has participation; and contributing to the success of the community it over 26,000 enrolments, including 7,500 international students. serves. The University boasts a supportive learning environment and has a strong record for graduate-level jobs and further study USQ was awarded the Commonwealth of Learning Award of or training. The University also pursues excellence in teaching and Excellence for Institutional Achievement in July 2004. Other scholarships and has developed a reputation for enterprise and awards include the Joint Winner of the Good Universities Guides’ research. University of the Year 2000-2001 Award in 1999, as well as the Inaugural Award for Excellence from the International Council for Teesside has an amazing range of courses in exciting subjects Open and Distance Education (ICDE) recognising the university as such as forensics, computing, health, sport, media and design. a world leader in ‘dual mode’ education. The University also invested nearly £100m in the campus for their 21,300 students to enjoy some of the most up-to-date facilities Academics and staff of USQ were recognised as best university in the UK. Teesside has full-time and part-time courses available teachers, and who have made a significant contribution to the ranging from professional development certificates to master quality of student learning over a sustainable period at the 2006 degrees and doctorates in a wide variety of subjects. Carrick Awards and Citations respectively.
With an award-winning Students’ Union and fantastic sporting, SEGi collaborates with USQ in offering 3+0 twinning degrees and social and study facilities - all on a single town centre campus - articulation pathways into bachelor programmes in administration Teesside is a great place for an eventful student experience. management, marketing, human resource management, engineering, mass communication, multimedia and early childhood SEGi collaborates with Teesside in offering 3+0 honours degrees education. SEGi also offers the popular USQ Master of Business in accountancy & finance as well as business administration. Administration programme.
• SEG International Bhd • consortium of global partners
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Upper Iowa University (UIU), USA Meenakshi University (MAHER), India
Founded in 1857, Upper Iowa University (UIU) is a private, Meenakshi University, one of the reputable medical universities nonprofit university providing educational excellence and in India, encompasses Meenakshi Medical College and leadership development to approximately 6,000 students - Research Institute constructed on a total land area of 39 both nationally and internationally - at its traditional campus in acres. To provide a friendly learning environment for the picturesque Fayette, Iowa; and its international centers in Hong students, Meenakshi University is well equipped with student Kong, Singapore, Malaysia and Canada. libraries, medical instruments, laboratories, operation and UIU is a recognised innovator in the delivery of accredited lecture theatres. As an established medical university in education and is proud of its diverse range of student populations India, the Medical and Dentistry programmes offered by and progressive, flexible options for students of all ages, without Meenakshi University are well-recognised by the authorised losing sight of its rich heritage and without compromise to the bodies, namely Government of Tamilnadu, Dental Council and character and quality of its curriculum. Medical Council of India. Meenakshi University is also recognised for its emphasis and contributions to public UIU has produced a long and distinguished list of alumni who welfare in the area of education via its Meenakshi Ammal Trust include one of the founders of YMCA and a Nobel Peace Prize and Further Meenakshi Academy of Higher Education and winner, the first Speaker of the U.S House of Representatives, a Research Trust founded in 1983 and 2004 respectively. world famous archeologist and scholar of the Dead Sea Scrolls, and a founder of a Fortune 500 Company (Target stores), just to name a few.
In Malaysia, SEGi is an approved off-campus centre offering the Bachelor of Science Honours programme with majors in Marketing, Management Information Systems, Management, Psychology, Financial Management and Communication. Students can opt to complete their degree either at SEGi or on campus at Fayette, Iowa.
• SEG International Bhd • consortium of global partners
36
Saveetha University, India Vinayaka Mission’s University (VMU), India
The Dental Institution under the guidance of former Dean Prof. Vinayaka Mission’s University was established in the year 2001 C.K. Dhansekaran and dedicated staff started out on November as a 48th University in India. The university status was conferred 18th 1989 in a small temporary block of around 5000 sq. ft which by Ministry of Human Resources Development, Government of included a Dental Clinic. It has since grown and blossomed with India as an acknowledgement of excellence for the highest level the highest score achievement among all dental colleges in the of academic standards and best infrastructure facilities. The state as measured by the High Level Committee appointed by conducive environment provided by the university helps every Government of Tamil Nadu. The year 2005 witnessed the enormous student to achieve excellence in their chosen field of specialisation. growth of Dental College and its other institutions when they were Nearly 15,000 students are studying in various colleges and every granted University status by University Grants Commission, which year about 2,000 Medical, Dental, Homoeopathy, Paramedical, paves the way for autonomy in designing courses and improving Engineering and Management professionals pass out of VMU academic standards. successfully.
• SEG International Bhd • Partner Professional Bodies
37
Association of Chartered Chartered Institute of London Chamber of Certified Accountants Management Accountants Commerce and Industry (ACCA), UK (CIMA), UK (LCCI), UK
The Association of Chartered Certified The Chartered Institute of Management The London Chamber of Commerce Accountants (ACCA) is the largest Accountants (CIMA) offers financial and Industry (LCCI) is an independent international accounting body, comprising qualification with strategic management- body representing the biggest business over 300,000 members in over 160 driven function. It boasts over 62,000 membership in London. Membership into countries worldwide. With 100 years of members in 155 countries worldwide LCCI reflects competence in various aspects providing rigorous accountancy training, earning its reputation as the ‘preferred of business accounting, while accelerating ACCA professional courses are designed business qualification’ provider. CIMA career opportunities worldwide. LCCI is a to enhance knowledge, skills, industry training and qualification enhances non-profit organisation set-up to support standards and practices of finance and non- professional management accountancy the development of professional learning finance professionals alike. The association practices in various sectors, in an age amongst its fraternity. SEGi’s LCCI students has seen the rise of membership, ensuring where globalised perspectives of business, have written many success stories with accounting practices are relevant to information and finance strategies are key over 180 international awards since 1980. modern demands. SEGi Colleges offer to corporate management success, while tuition that qualifies its students for ensuring the protection of public interest. In professional membership into the ACCA, Malaysia, the CIMA course is delivered at the eligibility for membership into the SEGi Colleges. Malaysia Institute of Accountants (MIA). SEGi students have regularly emerged as top students in Malaysia and worldwide in the ACCA examinations. They also frequently receive the Best Paper Prize winners award from ACCA.
• SEG International Bhd • partner professional bodies
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International Motor Industry (IMI). UK City & Guilds, (C&G) UK
IMI is a professional body based in the UK for people employed C&G is a UK examining and accreditation body for vocational and in the motor industry. There are 25,000 individual IMI members managerial training, offering more than 500 qualifications over 28 from across all areas of the motor industry, who are recognised industry sectors, through 8,500 approved centres around the world for their skills and experience. IMI membership is awarded on the in 100 countries. basis of individual’s qualifications, career history and motor industry experience. Incorporated in 1880, C&G was granted its Royal Charter by Queen Victoria in 1900. A registered charity, its president is HRH The Duke IMI prides itself in having a comprehensive portfolio of national of Edinburgh. qualifications, both technical and non-technical, and is the only awarding body which is totally focused on the skills requirements The qualifications developed by C&G are designed to provide and the automotive sector. a combination of practical and theoretical knowledge. These qualifications are therefore recognised by employers as evidence SEGi is part of IMI’s network of over 300 IMI approved assessment that the holder has the right skills to do a particular job. They also centres across the UK and overseas. SEGi delivers training to provide a route to further higher education and training. students and motor industry employees, whereas IMI provides a full-time national quality assurance team, independent advisory SEGi is an approved C&G centre that specializes in automotive and board of motor industry executives who are involved in education, secretarialship, among others. training and human resources.
• SEG International Bhd • partner professional bodies
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Montessori Centre International (MCI), UK Royal Pharmaceutical Society of Great Britain (RPSGB), UK
Montessori Centre International (MCI) is a well established, The Royal Pharmaceutical Society of Great Britain (RPSGB) is independent Montessori teacher training college, set in the heart of the professional and regulatory body for pharmacists in England, London’s West End. Scotland and Wales. It also regulates pharmacy technicians on a voluntary basis, which is expected to become statutory under MCI is dedicated to providing excellent training to all those who wish anticipated legislation. The primary objectives of the Society are to to work in childcare and early years settings using the Montessori lead, regulate, develop and represent the profession of pharmacy. method of education. SEGi University College, in collaboration with University of Sunderland, offers tuition that qualifies its students for professional The Early Childhood and Infant Toddler courses lead to internationally membership into the RPSGB. recognised Montessori Diplomas. MCI acts as an awarding body to centres in the UK and overseas, such as SEGi College Subang Jaya, which delivers the Early Childhood course.
• SEG International Bhd • What the Press Says
40 The SEGi Group of Colleges has produced countless engineering Part of SEGi and UlU’s exercise in ensuring that quality remains is graduates including more than 200 with First Class Honours since by having a lecturer exchange programme. Early this year SEGi’s the 1980s. ADP psychology lecturer Jason Raj was sent on a two-month The Star, StarSpecial, 12 January 2008 lecturer exchange programme to Iowa. New Sunday Times, 20 April 2008 For the past 30 years SEGi College has led many students to great heights. SEGi College provides affordable yet highly sought The SEGi College Faculty of Education & Social Sciences (FOESS) after education for all walks of life. offers cutting edge infrastructure and academic training with a New Sunday Times, 16 January 2008 practical oriented approach paramount in nurturing effective and efficient Early Childhood Education practitioners. Other than the new full-fledged campus at Kota Damansara the The Star, StarSpecial, 24 April 2008 other campuses in Kuala Lumpur, Subang Jaya and Penang have also stepped up efforts to upgrade their facilities. The campus at Ho is very satisfied with the overall support services and learning Subang Jaya has upgraded its galleria and laboratories, Kuala facilities at the college. “I think SEGi is quite committed to providing Lumpur has invested in a whole new nursing block, and Penang an excellent studying environment for its students.” has invested in a new campus at Greenhall. New Sunday Times, 25 May 2008 New Sunday Times, 27 January 2008 The Diploma in Hotel Management provides students with The Group’s efforts seem to be pretty successful as earnings have in-depth understanding of the theoretical concepts and strategies been steadily improving. of a tourism business environment. Besides focusing on the The Star, StarBiz, 2 February 2008 development of skills and knowledge paramount to the tourism industry, the diploma also provides an in-depth understanding of SEG International Bhd (SEGi) has received yet another recognition tourism management and impact of the global tourism industry when it was honoured by the local authorities for its picturesque and its changing environment. flagship campus in Kota Damansara Selangor. This time it was The Sun, 3 June 2008 a merit award given by the Majlis Bandaraya Petaling Jaya MBPJ for being the best institutional building structure within its SEGi has a career exploratory programme where students jurisdiction. undergo industrial training at leading companies. It also offers Borneo Post, 2 February 2008 incentives to upgrade its current personnel and has beefed up its human capital substantially, having recruited many doctorate SEGi have invested significantly in their new flagship campus, holders. spending more than 200 million for modern hardware and The Star, StarBiz, 26 June 2008 software facilities. These facilities ensure that the students benefit from a more hands-on and industry focused education, providing the students with greater opportunities upon graduation. Sin Chew Daily, 15 February 2008
• SEG International Bhd • what the press says
SEGi College has built a strong reputation for professional With an ever growing population as well as a steady increase in 41 qualifications in Malaysia such as ACCA, CIMA (Chartered the aged population, there is a high demand for qualified nursing Institute of Management Accountants), CIM (Chartered Institute staff within Malaysia and worldwide, SEGi Group of Institutions of Marketing) and LCCI. Since 1977, the college has produced is offering the Diploma in Nursing to fulfill this need. What is dozens of Paper Prize, Malaysia Prize and World Prize winners. interesting about this programme is that it is industry based to The Star, StarSpecial, 26 June 2008 give nursing graduates a competitive edge in the job market. Berita Harian, 22 September 2008 What differentiates the American Degree Program from other programs is its philosophy of education. They place a lot of focus The driving force in SEGi’s success is its Passion Guided, Industry on personal development. Driven motto which is reflected in every aspect of the courses Utusan Malaysia, 2 August 2008 offered and their delivery. The Sun, 4 November 2008 SEGi Training Centres are equipped with facilities such as hostels, computer labs, comfortable classrooms, mockups, restaurants To ensure students graduate with competitive degrees, SEGi only and a lobby ala hotel for practical training as well as various other collaborates with universities that have a proven track record in facilities. Its main objective is to ensure the comfort of all trainees higher education and partnerships with relevant industries. throughout their training. The Star, StarSpecial, 7 November 2008 Sinar Harian, 4 August 2008 Each year SEGi gives out from RM10 million to RM15 million worth Following the recent upgrade to University College status, SEGi of scholarships to the less fortunate. “If I have some spare seats will be changing the focus of operations from being a traditional in the classroom, why not try and do some good by giving it to educational focused institute to being 70% focused on education students who otherwise cannot afford it? If a business has excess and 30% focused on research and development. In line with an capacity, they should try to do good with it,” says Dato’ Clement increased focus on research and development, the roles of the Hii Chii Kok, Group CEO of SEG International Berhad. academic staff will also change. The Edge, NetV@alue 2.0, 17 November 2008 Nanyang Siang Pau, 11 August 2008 YBhg Dato’ Clement Hii received the Technology Business SEGi employs lecturers who have direct industry experience to Review ASEAN Award for Leadership in the ASEAN Education ensure the educators deliver relevant practical and up-to-date Management Sector - Private Higher education from YBhg Tan Sri knowledge to students. Students will then gain a realistic insight Datuk Seri Panglima Joseph Kurup. into their professions as well as gain precious experience from the Technology Business Review, 28 November 2008 lecturers. New Sunday Times, 14 September 2008
• SEG International Bhd • Awards & Recognition
42 SEGi Named Emerging Star For Its Nursing corners when it comes to investment in the equipment of facilities Programme of the programme as it will affect the quality. We ensure the best possible facilities to produce the best possible graduates,” 31st March 2008 - SEGi College gets another feather in its cap ensured Roswati. as it was awarded “The Emerging Star” award of the Excellence Nurse Award from the Nursing Board of Malaysia. According to Roswati, SEGi is equipped with simulation wards, skills laboratory, computer labs, multipurpose theatre, practical “We’re very pleased to receive this award as it denotes potential room, a well stocked library and sporting facilities of swimming and quality for SEGi. This award indicates the trust in SEGi’s pool, gym and squash. nursing programme for producing quality nurses,” said Hajjah Roswati bt Rahmat, Director, Regulatory Affairs. “What we are serious about in SEGi is ensuring our graduates are industry ready. We work closely with hospitals and clinics to SEGi Group of Colleges started offering the Diploma in Nursing ensure our students get the right practical training and are familiar in 2006. Since then, the nursing school has grown rapidly and with procedures by the time they graduate,” added Roswati, who the colleges have one of the best nursing school facilities in the signed a MOA with the Ministry of Health in September 2007 that country. allowed SEGi nursing students to be given practical training and usage of government hospitals.“ “When we embark on offering any programmes, we ensure our facilities match the requirements of the programme. We do not cut “We aspire to make SEGi a centre of nursing excellence in this region. Our aim is to be a leading nursing education provider, not only in Malaysia, but globally.”
SEGi President is Patron of University of Abertay Foundation
25th March 2008 - SEGi Group of Colleges had another reason to be proud when its President, Dato’ (Dr.) Patrick Teoh was made Patron of the University of Abertay Foundation. The appointment of Patron was made in recognition of Dato’ (Dr.) Patrick Teoh’s contribution to both the University and to the academic community in general.
• SEG International Bhd • awards & recognition
The Foundation, chaired by The Earl of Airlie, was established in SEGi Receives Ministry’s Invitation to be Upgraded 43 1988 as a charitable trust to provide opportunities for individuals, to University College alumni, companies and charitable trusts to contribute to the University’s future developments in the areas where traditional public funding was not available. Public funds are only able to provide for a minimum level of service and facilities for students of the University.
It is the aim of the Foundation to contribute significantly and spearhead the transformation of the University for future generations. Among its major activities will be the commitment to find and encourage financial support of fifty million pounds for critical projects including White space, environmental science, interactive entertainment, professorial chairs & research, sports facilities, Scottish National Food & Drink Centre, Scholarships and Bursaries. 11th June 2008 - SEGi College Malaysia was invited by the Ministry of Higher Education, under section 22 of the Private Higher “I am happy to be given the opportunity to share my expertise Education Act 1996 to upgrade to status of University College. The and experience in the capacity as Patron of the Foundation. The invitation letter, signed by Minister of Higher Education, YB Datuk University of Abertay has seen significant growth and has received Seri Mohamed Khaled bin Nordin on 8th of April 2008, proposed global acclaim for developing innovative and instructive courses the name SEGi University College following the upgrade. in constantly evolving disciplines. The activities of the Foundation will take Abertay to a new level of excellence,” remarked Dato’ University Putra Malaysia’s former Deputy Vice-Chancellor, (Dr.) Patrick Teoh. Professor Dr. Muhamad bin Awang has been appointed to head the new University College. Prior to this, Prof. Muhamad was The appointment of Dato’ (Dr.) Patrick Teoh as Patron is also attached to the Ministry of Higher Education as an advisor. consistent with SEG International’s efforts in corporate social responsibility to boost its long term success. It also marks a closer working relationship between Abertay and SEGi Group of Colleges.
• SEG International Bhd • awards & recognition
44 “Being invited to upgrade to University College status indicates Group MD/CEO Is Top Nominee For Ernst & Young that we have met stringent quality requirements assessed by the Master Entrepreneur Award Ministry, and we are honoured by the trust placed on SEGi in complementing the efforts of the government in making Malaysia 6th October 2008 - Group MD/CEO Dato’ Clement Hii was named a hub of educational excellence,” said Dato’ Clement Hii, its Group one of the Top Nominees for the Ernst & Young Entrepreneur of Chief Executive Officer. the Year 2008 Malaysia award.
According to the Vice Chancellor designate Prof. Muhamad, Dato’ Hii has been selected from a long list of outstanding among the requirements met by SEGi are top-notch teaching entrepreneurs who have been recognised as leading corporate and learning facilities available at its flagship campus. The RM150 figures in the country. million campus, recently launched by the Prime Minister, with full-fledged infrastructure including state-of-the-art laboratories, Hii is one of the five finalists in the Master Entrepreneur category, student residence, sports and recreational complex is able to which this year also includes Tan Sri G. Gnanalingam of Westport provide a complete learning experience for up to 12,000 students, Malaysia Sdn Bhd and renowned architect Encik David Mizan both local and international. Hashim of Veritas Architects Sdn Bhd.
“Of course the academic team plays a crucial role in our upgrade Dato’ Hii described his selection as a top nominee for Malaysia to University College status as well. Aside from possessing the as a personal inspiration to further grow the businesses that he is right academic qualifications and industry experience, our faculty currently heading. members undergo continuous upgrading and training. Plans are in motion to recruit and upgrade the qualifications of its academic “It is not the winning that matters”, he added, “but the recognition staff to PhD level in the next few years,” Prof. Muhamad added. of one’s efforts to build sustainable business models”. Dato’ Hii has won numerous awards in the past for his business Consistent with its tagline “Passion Guided Industry Driven achievements. University”, care is taken to ensure that programmes available at the University College are recognised by the industry, particularly its professional bodies, both in Malaysia and overseas.
• SEG International Bhd • awards & recognition
Another Win for SEGi Group MD/CEO In his message, Hii likened corporate leaders to captains of ships 45 embarking on a journey. “You have to know where to go and 7th October 2008 - Dato’ Clement Hii, Group Managing Director/ exactly how you are going to reach there.” CEO of SEG International Bhd (SEGi) was conferred the CEO Award in recognition of his leadership qualities which have led The SEGi MD/CEO also described the provision for private his company to corporate success, at the ASEAN Awards for education as a “delicate balance” between business and a social Leadership organised by Technology Business Review (TBR). responsibility, particularly for SEGi as a public listed company. “We have to ensure that the line is clearly defined so that we can Hii was a winner in the Education Management sector. Among all do good while making a decent profit,” he said. those conferred the CEO Award in the various categories include Dato’ Bridget Lai, CEO of Alliance Bank (Banking and Finance sector), Datin Paduka Siti Sa’diah Sheikh Bakir, Managing Director of KPJ Healthcare Bhd (Healthcare sector) and Dato’ Mohd Jabar Kembali, CEO of Selangor State Investment Centre (Investment Promotion sector).
• SEG International Bhd •
ENSURING CONTINUITY Enriching communities Success Stories
48 “I would like to give credit to the lecturing team for their dedication and commitment throughout the duration of my course which certainly attributed my achievement in SEGi. It is my pleasure to be a high-achiever and part of this acclaimed institute. Always remember: those who achieve success are those who take a dream and make it come true.”
Leong Ching Yih Top Graduating Student from the Diploma of Marketing
“I feel satisfied knowing that all the sacrifices that were made by my family and me have paid off. It is not easy to go back to the basics and start all over again. It requires a lot of sacrifice, patience and determination, but I am relieved it paid off.”
Visvanathan A/L Marimuthu, 1st Class Honours for BEng (Hons) in Mechanical Engineering University of Sunderland, UK
“I take pride in being the top student of SEGi College Kuala Lumpur for 2008. First of all, I would like to express my deepest gratitude to my parents and my brother who always keep a close caring eye on me and always seem to be there when I needed help and support. Further, I wish to extend my sincerest thanks to my friends who encouraged and motivated me as we undertook the course and worked towards our diploma graduation. I have overcome many challenges and hindrances during the college life. Without help from my wonderful friends, my success would never have been possible. I have a lot of precious memories which I will treasure forever. I am certain my parents are glad to see what I have achieved so far.
I would also like to thank my lecturers. Throughout the two and a half years of college life, there were always lecturers around to give me valuable guidance and share valuable experiences. I wish to express my sincere appreciation for the High Achiever’s Scholarship that I have received from the SEGi Scholarship Board. This gave me an opportunity to receive quality education for which I am very thankful.”
Lim Chiao Yen Top Graduating Student from the Diploma in Accounting
• SEG International Bhd • success stories
“This prize does not come as a surprise to me but I am still very proud of what I have achieved today. I made the choice to do ACCA 49 because, being an international paper, it’s more challenging. All the hard work and effort has paid off.”
Lim Sei Haw First Place Winner for Paper 1.1 in ACCA
“My lecturers are one of the reasons I passed the exams with flying colours. It was tough work studying to pass the examination. I went through a lot of stress. It is trite knowledge that the ACCA exams are one of the toughest for professional accountants to achieve. I’m glad I managed to pull through and not give up hope when I felt it was too difficult.”
Leong Pei Chee Top graduating students from the ACCA Corporate and Business Law paper
“I would advise all students to spend their study time effectively and attend your respective classes in order to fully prepare for examinations. Also, students need to give their full attention during lectures to gain important information that will not only help them pass but also to score well.”
Kevin Liew Tze Ming Multiple distinction in the Edexcel A-Level
“I was never expecting to get 1st Class Honours, as I always felt that I was just an average student, I suppose all the hard work and extra hours after work that I had put in paid off.
When studying part-time, it is never easy, because you have to juggle a lot of things, but I was determined to graduate. The First Class Honours came as a bonus.”
Chiu Poh Seong 1st Class Honours in Bachelor of Engineering (Hons) in Electronic & Electrical
• SEG International Bhd • success stories
50 “When I first received the email notification from SEGi, I was surprised and couldn’t believe that I was being presented with the Dean’s Award” said the 29-year-old who recently received the Award for his exceptional performance in the USQ MBA programme.
Teh Ooi Keong, who has a background in semi-conductor engineering, attests that studying the USQ MBA programme helped him learn a lot of new management knowledge and skills. “…I could relate and apply the subjects that I studied to my everyday work environment which helped me to better understand the content and get more out of the programme. I was also able to sharpen my skills in business management by learning units that encompassed leadership, strategic management, organisational behaviour and the economic aspects of doing business.”
TEH Ooi Keong Recipient of the Dean’s Award upon graduation from the University of Southern Queensland Master of Business Administration (MBA)
“I am glad to be recognised as one of the high achievers. To the lecturers of SEGi College, I wish to say that I really appreciate you for being so patient with me and forever willing to answer my never-ending questions.
I believe that in whatever I do, I have to strive for the best for my own self-satisfaction. This has led me to have such consistent results throughout the duration of my DECE course.”
Chung Bee Yan Top Graduating Student from the Diploma in Early Childhood Education
“The programme has been created to be very flexible, meaning I was able to optimise my ‘study’ time around my existing obligations. The weekend classes also allow me to maintain performance at my workplace and still allow me time for the most important people in my life - my family.”
“Anyone wanting to do their MBA need to be prepared to put in the hours to ensure that they’re able to complete the programme, but at the same time they should make more friends and widen their social circle, after all, business is all about contacts and networking.”
Norshafiza Shamsuddin Graduate from the University of Southern Queensland Master of Business Administration (MBA)
• SEG International Bhd • success stories
“Originally, I enrolled in the LCCI programme out of my interest and passion for numbers. I now plan to apply for a place in a local university 51 and further my studies in Actuarial Science.”
“I found the lecturers at SEGi to be very dedicated and passionate about teaching, providing ample support to myself and fellow students.”
See Leng Li World Silver and Malaysian Gold Award in LCCI for Advanced Business Calculations.
“When you do a part-time programme it is not easy to juggle work and classes, but thanks to the lecturers we were able to get the best of both worlds.
I also want to thank Manjeevan, last year’s First Class Honours student who shared his knowledge and experience with us; our success is not ours alone.”
Chew Bee Eng 1st Class Honours in Bachelor of Engineering (Hons) in Electronic & Electrical
• SEG International Bhd • The SEGi Family
For more than 30 years, SEGi has equipped graduates from diverse backgrounds with exceptional foundations for career achievement and personal success. Dating back to 1977 when it first opened its doors as Systematic College in the heart of Kuala Lumpur’s commercial district by offering professional qualifications. Since then, the Group has experienced significant growth by adapting and catering to an increasing demand for higher academic and professional qualifications in Malaysia.
The Group is one of the largest private higher education providers in Malaysia and today serves more than 18,500 students through six major campuses located in the Klang Valley, Penang and Kuching. With programmes tailored to meet both industry and student needs, past graduates have excelled in their studies and moved up as leaders of industry.
52 SEGi University College, Kota Damansara
The RM150 million new flagship campus is a hallmark of private higher education in the country. Strategically located at a 10-acre site in Kota Damansara, the purpose-built campus has academic, research and recreational facilities, providing a complete learning experience for up to 12,000 students.
The new flagship campus boasts a unique architecture, inspired by colonial and Roman designs. The impressive campus layout with open spaces and many facilities adds to a conducive learning environment.
Living up to its standards as a tech-savvy campus, SEGi University College has most of its learning materials online within an Internet and wireless environment. Students are able to access the online library and tutorials.
SEGi University College provides industry driven programmes from the faculties of Pharmacy & Allied Health Sciences, Business & Accountancy, Engineering & Built Environment, Creative Design & Technology, and Hotel & Tourism.
• SEG International Bhd • the SEGi family
SEGi College Subang Jaya SEGi College Kuala Lumpur SEGi College Penang 53
SEGi’s main campus in Subang Jaya, Founded in 1977, SEGi’s Kuala Lumpur Promising better learning facilities and located within the ‘college belt’ in one of campus has built a strong reputation in study environment, SEGi College Penang the largest townships in the country, has a offering Business, Accounting, Marketing, moved into a brand new campus in Green capacity of 6,500 students. The impressive IT and Nursing programmes ranging from Hall, upgrading to modern facilities and colonial and Roman facade and architecture foundation to degree level, as well as providing existing and future students with houses modern facilities such as computer professional programmes. SEGi College a more complete learning experience. and multimedia centres, engineering and Kuala Lumpur’s strength is renowned science laboratories, wireless access throughout the Klang Valley and parents SEGi College Penang showcases facilities hotspots, student lounges, a games room who have studied at SEGi continue to such as fifteen well-built classrooms, a and a theatre, among others. recommend their children to study at this well-designed lobby and lounge, a new campus. resource centre, a cafeteria, one floor of As a new campus, SEGi College Subang dedicated IT labs with the latest Windows Jaya attracts many international and adult Strategically located in the capital city of Vista, a 2-story carpark, a large auditorium, learners, while capturing a large slice of the Malaysia, students here enjoy cosmopolitan games and recreation areas. school leavers market in the Klang Valley living with access to all modern amenities of and beyond. the city such as the Light Rail Transport (LRT), The island life provides an ideal student buses, shopping malls, banks, restaurants, lifestyle with an easygoing atmosphere, fresh Students of SEGi College Subang Jaya tourist attractions, entertainment spots and air and affordable living costs. Convenient have written hundreds of success stories. more. facilities are readily available with eateries, Over 200 of them have obtained First Class banks, shopping malls, public amenities Honours from top-notch universities from Having more than 30 years of education and public transport located nearby to around the world. excellence, SEGi College Kuala Lumpur has SEGi College Penang. nurtured thousands of graduates who have The Subang Jaya campus also offers gone on to succeed in their careers. The SEGi College Penang offers a wide a wide variety of programmes from the college also boasts having lecturers with range of diploma, degree, professional Faculties of Business & Accountancy, more than 10 years’ experience. To date, and vocational courses in the fields of Engineering & Technology, Creative Arts the college has more than 4,000 students business, accounting, marketing, hotel & & Design, Education & Social Sciences, studying full-time and part-time modes. tourism, nursing and computing. Hotel & Tourism, Nursing and the American Degree Programs. The merger of SEGi College of Technology (SEGiTech), an MSC-Status institution, with the Faculty of Information Technology at the start of 2007 has further strengthened SEGi’s reputation not only for its business programmes but also as the preferred college for further education in the disciplines of IT, computing and multimedia.
• SEG International Bhd • the SEGi family
54 SEGi College Sarawak SEGi College SEri Kembangan SEGi Training Centre
SEGi College Sarawak forms the gateway SEGi College Seri Kembangan is the latest SEGi also has training centres based in for the Group to East Malaysia. It was edition to the SEGi Group of Institutions Kuala Lumpur, Seri Kembangan, Pulau established with the prime objective of with its opening in October 2008. SEGi Indah, Kuching and Bukit Mertajam which providing quality training to school leavers College Seri Kembangan is unique in that are approved by the National Vocational to prepare them for their future. the curriculum and delivery of programmes Training Council (MLVK) to conduct is conducted entirely in Bahasa Malaysia. vocational training courses in the fields Today, SEGi College Sarawak stands Students can complete their studies in of automotive, information technology & out as one of the largest private colleges the national language and still gain a multimedia, draughtsmanship and others. in East Malaysia, offering a wide range of qualification that is recognised by City & Today, SEGi Training Centres have gained programmes to many segments of the Guilds. a reputation as one of the leading providers market. of quality corporate and vocational training. SEGi College Seri Kembangan currently This development of critical human capital The campus in Kuching is popular offers programmes in Creative Multimedia contributes to the nation’s increased with locals, outstation and international and plans to launch new programmes in need for qualified, skilled and semi-skilled students. The location of the campus at the the areas of hotel and tourism, accounting, professionals. heart of the capital city makes it one of the marketing, business administration and top choices for the working adult market. information technology in 2009. Students have access to amenities nearby such as banks, restaurants, hotels and shopping centres.
The institution has a team of dedicated academics and support staff, with many years of experience in the education field. Lecturers are well qualified with many years of working experience in their areas of specialisation. Finely-tuned to the needs of Sarawak’s economic and social development objectives, SEGi College Sarawak provides programmes that cover management, accountancy, hospitality, law and IT.
• SEG International Bhd • the SEGi family
BUSINESS UNITS 55 CORPORATE LEARNING DIVISION
IFPA Resources, USJ (IFPA) A pioneer in offering the International Certified Financial Planner (CFP) programme, IFPA caters to a niche market of professional financial planning education. Recently, IFPA also caters to Islamic Financial Planning and CFP On-line. This business unit also provides routes into CPA Australia and master degree in the same field.
Job Venture, Kota Damansara This is a job placement service for SEGi College graduates or jobseekers in matching their career needs with the requirements of prospective employers.
Summit Early Childhood Edu-Care (SECE) This is a SEGi’s business unit that owns and operates the St. Nicholas Montessori Centre preschool network. SECE implements the academic courseware and operating systems developed collaboratively by SEGi’s Faculty of Education and Social Sciences and Montessori Centre International.
I-Station Solutions I-Station Solutions is the business unit with the aim to be a premier developer, provider and integrator of learning and training solutions using high technology and multimedia. This business unit is involved in providing IT solutions to SEGi College campuses.
• SEG International Bhd • SEGi Education and Training Programmes
56 SEGi provides industry driven programmes from the Faculties / Schools of Pharmacy & Allied Health Sciences, Business and Accountancy, Engineering & Built Environment, Technology, Creative Arts & Design, Education & Social Sciences and Hotel & Tourism that are focused with comprehensive curriculum and complemented by creative teaching and learning techniques.
At SEGi, students are exposed to a variety of learning methods including lectures, seminars, workshops, presentations and practical experience in laboratories and on the job. SEGi also draws a large number of top-notch academics and captains of industries into its community, who serve as academic advisors, lecturers, examiners and moderators.
The Group will continue to develop new programmes to meet the current and future demands of the industry. Efforts will also be undertaken to ensure SEGi’s range and quality of academic and training programmes are constantly upgraded and repackaged to remain competitive and to sustain its leadership stake in the private education sector.
Through these efforts, thousands of Malaysian youths and international students who have undergone studies or training at SEGi have gone on to write their own success stories.
Pre-University Business & Management Pre-University programmes are designed to provide the right Innovative graduates with business knowledge and savvy skills foundation for academic and critical thinking skills. At SEGi, accelerate organisational growth and competitiveness. The courses are complemented with a complete learning experience, Business and Management programmes available at SEGi aim orienting students into a college environment and preparing them to produce graduates capable of managing effectively across for graduate studies at university level in disciplines of business, the broad range of disciplines required in today’s challenging and arts, engineering, IT, medical and health sciences. Students who rapidly changing business environment. By increasing and enriching complete their SEGi pre-university studies are able to gain entry knowledge across a broad range of business disciplines, students into degrees from over fifty universities worldwide. SEGi offers the gain a firm grounding in key management skills and techniques Foundation in Commerce, Foundation in Science, Foundation in essential to financial, strategic and knowledge management. Science (Pre-Med/Pre-Dentistry) and Foundation in IT. SEGi offers 3+0 business degrees with the University of Abertay Dundee (UAD) and Sunderland University (UOS) in the UK as well as the University of Southern Queensland (USQ) in Australia. It also collaborates with Upper Iowa University (UIU) in the United States to offer the 4+0 Bachelor of Science. As well as these collaborations, SEGi also offers the Diploma in Business Administration programme leading to degrees from top-notch universities in the UK, the US and Australia.
• SEG International Bhd • SEGi education and training programmes
Accountancy & Finance Human Resource Management 57 Accountancy and Finance training provides substantial skills for Human Resource Management (HRM) concerns one of the most organisational planning and growth. The Accounting and Finance important resources of a company - its employees. The HRM programmes at SEGi provide students with the opportunity to develop programmes available at SEGi are designed to teach students important practical skills such as analytical thinking, problem-solving, how to deal with and manage human resources at the workplace, teamwork and communication. This mix of academic and practical developing knowledge across areas including terms of employment, staff motivation, HR legal issues, teamwork and payroll. The skills is highly attractive to employers. SEGi offers full pathways programmes available at SEGi are industry driven and are designed for its students to obtain an accounting degree in the following to equip students with the necessary skills and knowledge required programmes: 3+0 BA (Hons) Accountancy & Finance programme to pursue a career or further studies. In the discipline of Human with University of Greenwich and the University of Teesside, the 3+0 Resource Management, SEGi collaborates with the University of BA (Hons) Accounting and Financial Management programme Southern Queensland in Australia to offer the 3+0 BBus Human with the University of Sunderland, as well as the 4+0 BSc (Hons) Resource Management. SEGi also offer the Diploma in Human with a major in Finance from Upper Iowa University, USA. Apart Resource Management offering graduates a full pathway to top- from these collaborations, SEGi offers the Diploma in Accounting notch universities worldwide. leading to degrees from top-notch universities in the UK, the US and Australia. Engineering SEGi offers an impressive range of engineering disciplines that Marketing focus on a student-centric environment, where students interact The Marketing programmes available at SEGi will provide students with teaching staff from Malaysia as well as staff from our partner with the skills necessary to analyse market needs, define target universities worldwide. Students will work in technically advanced markets, create marketing strategies and unlock business laboratories and workshops at SEGi campuses, providing them with the essential tools in the development of engineering skills. opportunities in a competitive environment. The programmes will SEGi offers an impressive range of engineering disciplines from also develop students practical skills and knowledge including Foundation and Diploma through to Bachelor degrees in various analytical skills, problem solving skills, teamwork, and the ability disciplines. Its engineering students have gone on to write many to communicate effectively within a business environment. The success stories and the Faculty is proud to count more than 200 programmes available include the 3+0 BA (Hons) Marketing & students who obtained First Class Honours in engineering from Business from the University of Abertay Dundee in the UK, the 3+0 top-notch universities worldwide. The programmes are delivered BBus Marketing from the University of Southern Queensland in using applied methodologies and modern engineering facilities. Australia and the 4+0 BSc (Hons) degree with a major in Marketing from Upper Iowa University, USA. Students also have the option to SEGi offers the 3+0 BSc (Hons) from the University of Sunderland pursue a Diploma in Marketing, which offers full pathways to top- with majors in mechanical engineering, electrical & electronic notch degrees worldwide. engineering, as well as the 1+3 MEng (Hons) from The University of Sheffield with majors in mechanical engineering, electronic & electrical engineering and chemical engineering.
• SEG International Bhd • SEGi education and training programmes
58 SEGi’s Diplomas in chemical engineering, electrical & electronic Nursing at SEGi intends to create significant impact in the health engineering, mechanical engineering, mechatronic engineering, care practice by imparting to students the scientific basis of nursing civil engineering and construction management provide students and its application in the holistic care of patients to enable them to a pathway to complete the final part of their degrees with the participate actively and effectively as members of the health care University of Greenwich, University of Sunderland and The team. University of Sheffield in the UK as well as other universities in Malaysia and worldwide. For their Nursing Programmes, SEGi has built strong connections with public and private hospitals throughout Malaysia and has Information Technology & Computing received recognition from the Ministry of Higher Education, Malaysia We live in a world increasingly dependent upon the use of as well as the Malaysia Nursing Board. technology and information where technological development and its adoption by organisations is central for the transformation In the discipline of nursing, SEGi also collaborates with the University of management culture, lifestyle and the global economy. The art of Greenwich in the UK to offer the BSc (Hons) Professional of representing information by technology is fast becoming an Practice in Nursing. SEGi also offers the Diploma in Nursing, which inexact and blurred science. The information engineer of the is designed to prepare students to be qualified as a Registered future must be equipped with the appropriate skills to meet these Nurse and focuses both on the ‘care’ aspects of nursing as well as challenges. the ‘science’ of health care.
In the discipline of Information Technology and Computing, Pharmacy SEGi offers 3+0 BSc (Hons) degree programmes with the Pharmacy is the branch of medical science concerned with the University of Greenwich in the UK with majors available in sources, nature, properties, preparation and the safe effective use computing, computing with games development and computing of medicinal drugs. Pharmacists are key professionals in the health with multimedia. SEGi also collaborates with the University care system who formulate and dispense drugs and work closely of Sunderland in the UK to offer the 3+0 BSc (Hons) Applied with doctors and patients in providing advice on the management Business Computing and the University of Greenwich in the UK to of a patient’s medication. offer the MSc Information Systems Management. A degree in pharmacy aims to integrate scientific, clinical and SEGi’s Diploma in Computing Studies and Diploma in Information professional knowledge with communication skills, providing Technology provides studies with a pathway to complete the final graduates with the expertise to contribute effectively as a part of their degrees with the University of Greenwich and University pharmacist within the future health care system. Students learn of Sunderland in the UK, as well as universities in Malaysia and both chemical and physiological knowledge, as well as pharmacy worldwide. practice, through problem-based learning, workshops, seminars and laboratory work. Nursing There is a growing demand for health professionals in Malaysia and worldwide, and SEGi is poised to respond to such demands by providing a range of nursing and health science programmes.
• SEG International Bhd • SEGi education and training programmes
The Master in Pharmacy (MPharm) (2+2) twinning programme Creative Arts & Design 59 available at SEGi University College is a collaboration between the The Faculty/School of Creative Arts & Design started as MSC Faculty of Pharmacy & Allied Health Sciences at SEGi University International College and was set up to be the premier centre College and the Sunderland Pharmacy School from the University for media, art and design education in Malaysia. Students of the of Sunderland in the UK. SEGi also offers a Foundation in Science college are not only provided with a qualification or skill in creative which is designed to equip students with the knowledge and skills arts and design, but are prepared to brave the challenges of required for admission into the MPharm programme. the industry when they step into the working world. We aim to expand the boundaries of teaching and learning by using the latest Dentistry technologies. This is to ensure that our students are at the forefront The SEGi University College School of Dental Auxiliary is among of art and design industries in the new millennium. the latest additions to the wide range of study areas available. Under this School, SEGi currently offers the 2-year Certificate in SEGi offers diploma programmes from a diverse range of disciplines Dental Surgery Assistance which is a professional certificate that is such as advertising design, creative multimedia, graphic design, designed to provide students with hands-on training and experience interior design, mass communication, music, photography and at the SEGi Dental Centre. SEGi also provides the Foundation in video & animation. Upon completion of the diploma, students can Science (Pre-Med/Pre-Dentistry) which provides students with a articulate their qualification into degrees from universities in Malaysia pathway into Dentistry degrees with Meenakshi University (MAHER), and worldwide. In the discipline of Graphic Design, SEGi is working Saveetha University, and the Vinayaka Mission’s University (VMU) on a collaboration with the University of Teesside in the UK to offer from India. SEGi is also collaborating with Meenakshi University the BA (Hons) Graphic Design. SEGi also collaborates with Upper (MAHER), Saveetha University, and the Vinayaka Mission’s University Iowa University from the US to offer the 4+0 BSc (Hons) degree (VMU) with the view of extending programme offerings in the field of with a major in Communication. Dentistry at SEGi University College.
Education & Social Sciences Allied Health Sciences Early childhood education applies specialist knowledge in the As well as offering programmes in Nursing, Pharmacy and Dentistry, teaching and nurturing of pre-school children and often focuses the Faculty of Allied Health Sciences at SEGi offers the Diploma in Environmental Health, incorporating all the components of on children learning through play. Early childhood education takes environmental health, as well as the Diploma in Medical Laboratory many forms depending on the beliefs of the educator or parent and Technology, where students will gain the educational experience, is a crucial part of a child’s development, affecting how they see knowledge and skills required to be successful clinical laboratory themselves, how they see others and how they develop thoughts. scientists. For these reasons it is imperative that early care programmes emphasise links with family, home culture, and home language as well as the educators themselves.
• SEG International Bhd • SEGi education and training programmes
60 The Faculty of Education & Social Sciences at SEGi provides the Hospitality & Tourism Montessori-based early childhood diploma qualifications from There is tremendous growth in the hotel and tourism industry as the Montessori Centre International, UK and the Diploma in Early businesses and people are spending more money on leisure than Childhood Education. SEGi also collaborates with the University ever before. Therefore, this sector of the industry is one of the of Southern Queensland in Australia to offer the Bachelor of Early largest and fastest creators of employment. There is a need for Childhood degree or, for those looking to gain a postgraduate educated and trained people who can be counted on to deliver first qualification, the Master of Education. class services.
In the discipline of Early Childhood Education, SEGi also offers The hospitality and tourism programmes available at SEGi are a number of short courses including Basic Childcare Courses, designed to equip students with the skills and knowledge that Creative Arts for Young Children, Child Psychology & Development, are increasingly in demand by today’s employers. Students will Music & Movement for Young Children, Nursery & Pre-School study highly relevant modules that cover marketing, destination Management and Special Educational Needs. management, human resources, information management, planning and research, among others. During the programme, Psychology students will also develop wider skills in communication, teamwork, Psychology is both an academic and applied discipline concerned problem-solving, use of information technology and application of with the scientific study of mental processes and behaviour. numbers, essential to launch their careers and provide a framework Psychology seeks to explain thought, emotion and behaviour in the for life-long learning. context of real life. In the discipline of Hotel & Tourism, SEGi collaborates with the The SEGi Diploma in Psychology aims to produce graduates with University of Sunderland in the UK to offer the 3+0 BSc (Hons) intellectual aptitudes, independence and transferable skills for International Tourism & Hotel Management. SEGi also offers employment and/or further studies. Students can also apply the the Diploma in Hotel Management and the Diploma in Tourism basic psychological theories and principles to significant areas Management. of human activities such as healthcare, education, management, social welfare, and many more. American Degree Program The Upper Iowa University (UIU) Bachelor of Science (4+0) program SEGi also collaborates with Upper Iowa University (UIU) in the at SEGi University College provides students with the opportunity United States to offer the 4+0 Bachelor of Science with a major in to experience US-style education. This style of education focuses psychology. This programme allows students to complete the full heavily on the practical elements of learning with an emphasis on degree programme in Malaysia. However, they also have the ability classroom interaction between the students and lecturers as well as to transfer to the US campus at any stage of their studies. group projects, presentations and field trips outside the classroom. The American Degree Program focuses more on assessing the students throughout the course work and allocates less percentage to mid-term and final examinations.
• SEG International Bhd • SEGi education and training programmes
The UIU Bachelor of Science (4+0) program also allows for Professional Programmes 61 full completion locally at SEGi with the flexibility to interchange For those students wishing to complete professional programmes between SEGi and UIU’s Fayette Campus in the United States. in the fields of business, commerce or accountancy, SEGi collaborates with the Association of Chartered Certified Accountants Students studying the UIU Bachelor of Science (4+0) program (ACCA), Chartered Institute of Management Accountants (CIMA), can choose from one of 7 majors including Management, Association of Business Executives (ABE) and London Chamber Marketing, Finance, Communications, Business Administration, of Commerce and Industry (LCCI) to provide programmes that will Human Resource Management and Psychology. Students can also further students career and development. elect to combine 2 areas of interest as a double major. Vocational & Training Programmes Postgraduate Studies SEGi firmly believes that vocational training is important in Today’s business environment demands professionals with expert complementing academic programmes and ensures that the knowledge and business savvy. Highly acclaimed and internationally relevant practical training is provided to students. SEGi’s vocational recognised, the MBA programmes offered at SEGi are intended training programmes are suitable for students who are not academically for enterprising individuals seeking to holistically combine their inclined to obtain skill-based training. Its training centres provide expertise with general management skills. vocational programmes with Sijil Kemahiran Malaysia (SMK) qualification from Skills Development Department or JPK, in the SEGi is a clear leader in the adult learners segment and offers flexible and part-time learning modes. Working adults and graduates have disciplines of Automotive, Air Con Repair & Maintenance, Civil the choice of pursuing the popular SEGi University College Master Draughting, Computer Systems Technician, Information Systems of Business Administration (General Management) or Master of Administrative Assistant, Multimedia Artist, Graphic Design, Beauty Business Administration (Global Business) programme. As well as Therapy, Hotel & Tourism and Business Administration. these SEGi University College Master of Business Administration programmes, SEGi offers the Master of Business Administration from the University of Southern Queensland in Australian or the Master of Business Administration from the University of Sunderland in the UK.
• SEG International Bhd • Infrastructure and Facilities Upgrading
62 Over recent years the Group has undergone many changes including a major restructuring and re-branding exercise. Coming together under one single brand has allowed the Group to develop focused and consolidated promotions as well as enjoy a stronger and more corporate image. The Group is constantly reviewing the positioning and branding of the individual campuses and business units and determining new ways to strengthen marketing, working towards the goal of offering a complete learning experience.
• SEG International Bhd • infrastructure and facilities upgrading
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With the completion of its consolidation and re-branding exercise, In 2008, the Group continued to expand its programme offering and, the Group started to focus on the development and upgrade of as a result, upgraded and added to its existing facilities. Adding on its facilities and infrastructure, starting with development of the 12- to its already impressive list of facilities at the main campus in Kota storey Subang Jaya campus which opened its doors in January Damansara, the Group further expanded its pharmacy facilities. 2006. With its strategic location and modern facilities, the campus Apart from laboratories outfitted with state-of-the-art equipment quickly established itself within the ‘college belt’ of Subang and relevant to the pharmaceutical industry, the pharmacy faculty is attracted strong student numbers. also equipped with a mock pharmacy and a fully functional aseptic room. The mock pharmacy is set up to allow students to gain The next major project for the Group was the construction of SEGi’s hands-on practical experience in dealing with customers and the flagship campus located in Kota Damansara. Designed to be a dispensing of prescription drugs. Also known as the clean room, prestigious education landmark in the Klang Valley, the purpose built the aseptic room is where you will find less than ten particles in campus was fully-equipped with the latest in academic, research the air - similar to those aseptic rooms typically found in hospitals. and recreational facilities and proved to be a successful step for the The room is usually used by medical professionals during invasive Group in its pursuit of being one of the largest private educational medical and nursing procedures. Students will thus gain a realistic institutions in Malaysia. idea of what it is like to work in this environment.
• SEG International Bhd • infrastructure and facilities upgrading
64 SEGi also finished establishing its Engineering laboratories at its In 2008, SEGi College Subang Jaya expanded its programme main campus, now boasting a Mechanical Engineering Laboratory, offerings in the discipline of Psychology. The college, which had a Thermodynamics & Heat Transfer Laboratory, Chemical already been offering the Upper Iowa University Bachelor of Science Engineering Laboratories and Electronic & Electrical Engineering (4+0) Psychology program, launched the Diploma in Psychology as Laboratories. These laboratories are fully-equipped with modern well as launching its Psychology Wing. The Psychology Wing is a sophisticated facilities and provide students with knowledge and well-equipped research centre where students can access a variety understanding of engineering principles. of learning and research materials, as well as utilise the rooms for practical training, giving students the best opportunity to learn and In line with the Groups aim of establishing itself as a health science excel in their studies. focused institution, 3 more of the Groups institutions, namely SEGi College Subang Jaya, SEGi College Penang and SEGi College Lastly, in 2008, SEGi College Kuala Lumpur began development Sarawak, expanded into offering Nursing programmes. These new of its Hotel & Tourism programmes. The development of these programme developments saw the institutions establish Simulation new programmes saw the college upgrade and acquire facilities to Wards and Skills Laboratories. Used for teaching and development provide the best resources to future students. With a whole wing within the Nursing programmes, these facilities are fully-equipped dedicated to practical facilities for these programmes, SEGi College with modern and sophisticated aids to provide students with hands Kuala Lumpur boasts a mock kitchen and bar area to help students on experience in a realistic environment, giving them the ability to learn all aspects of kitchen and beverage service, as well as a mock practice and develop their skills before advancing onto their industry hotel room fully-fitted with bedroom a bathroom facilities. placement.
• SEG International Bhd • Looking Beyond Our Shores
For more than 10 years, the Group has actively been recruiting international students from over 65 40 countries worldwide, with the majority of those students coming from China, Indonesia, Vietnam, Africa, India and Iran. The current international student population in SEGi accounts for 7.9% of the total student population.
Aside from offering internationally recognised qualifications, SEGi boast strategically located campuses which offer students various options for affordable accommodation as well as all required amenities, making it an attractive choice for higher education amongst international students.
SEGi’s initiatives in international student recruitment centre around identifying and focusing on key markets within strategic countries and subsequently expanding our presence at all levels in those markets. As well as travelling to international markets to conduct recruitment activities, SEGi has established International Representative Offices in China, India and Iran.
In additional to actively recruiting in international markets, the Group will continue to collaborate and forge alliances with leading international institutions and partners so as to extend our reach both regionally and internationally.
SEGi is commited not only to providing quality education solutions to the local community but to engaging international markets, helping to create a cosmopolitan campus environment and giving all students a global background and perspective.
• SEG International Bhd • Special Projects
It is SEGi’s strategy to diversify its operations and to establish itself in various niche segments. The meaning of education goes beyond merely providing tertiary education to school leavers. By moving into other segments, the Group will be less affected by the intense competition for students currently occurring in the industry.
We will continue to seek out blue oceans by establishing linkages with the government and with the industry, to open up other opportunities for the Group.
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Program Belia CGT Group will provide value-added features to the Program by putting SEGi has secured a public-private partnership with the Government in additional curriculum on character building and entrepreneurship of Malaysia under the Ministry of Youth & Sports to provide skills- as well as job placement services for the trained youths. based training for up to 10,000 youths per year. The current training centres owned and managed by the Ministry are insufficient SEGi has led a group of bumiputra-owned training providers in to provide places for the 30,000 odd applicants for skills-based strategic locations to offer greater geographical spread. The courses courses each year. As an attempt to achieve its training capacity, offered include those on both hard and soft skills, with strong bias the Ministry has an outsourcing scheme through the buying of towards employability and marketability of the trained graduates. places available in private entities with the requisite facilities and qualified human resources. Career Exploratory Programme (CEP) A formal collaboration between SEGi and its valued corporate The project - Program Belia CGT - was conceived as part of the 9th partners was established to offer practical training opportunities Malaysia Plan to hasten the training of youths in the country. The and internships for its graduates or students who are about
• SEG International Bhd • special projects
to graduate. The scheme, known as the Career Exploratory At the SLC outdoor learning centre, participants will work to 67 Programme (CEP), was officially launched by YB Datuk Seri Ong identify their true potential which will serve as the foundation for Tee Keat, who was then the Deputy Minister of Higher Education. success and improved productivity. SEGi believes in developing and transforming people using effective methodologies and The objective of the programme is to provide an added advantage techniques in an experiential education programme. Proven learning for SEGi graduates to stand out in the competitive job market, and methodology has helped clients achieve their desired personal and be recognised by potential employers. corporate objectives.
The CEP programme will give SEGi students the chance to roll up Modern facilities utilised at SLC include: a 4-storey high rock their sleeves and have hands-on experience in the real working climbing tower, a 12-element high obstacle course, a 10-element environment. Students are able to feel what it is like to work with low obstacle course, an abseiling tower, a flying-fox, outdoor some of the best companies in the country and around the world. designed accommodation, camping grounds, seminar amenities, The experience is expected to give SEGi graduates an edge over a dining hall, a medical room, prayer rooms (surau), sports other graduates in getting employment in a competitive job market, equipment, a paintball field and water sports equipment (rafts, what’s more, they can earn while they learn. canoes, etc.)
SEGi has also collaborated with Jobstreet.com, a leading recruitment CEP Talks e-commerce company, to power the CEP website by matching its In line with ‘Corporate Social Responsibility’ (CSR) and community students with the right internship jobs in suitable companies. consciousness, SEGi University College regularly hosts ‘Career Exploratory Programme’ (CEP) Talks which address a wide range SEGi Leadership Centre (SLC) of social and employment related topics. The aim of the CEP Talks SEGi has taken a bold step by introducing a new and innovative is to help SEGi students and students visiting from local secondary scheme - to send its students to its very own leadership development school build their knowledge and awareness of the world around camp, the ‘SEGi Leadership Centre’ (SLC). them. Covering both career related topics, such as grooming for the workplace and developing interview skills, as well as general SLC is an outdoor learning centre designed to provide participants social topics, including AIDS and sexual awareness, students gain with a purpose-oriented education in an enjoyable and safe learning valuable insights and knowledge from industry experts. environment. The centre provides training to participants from SEGi Group of Institutions as well as from corporate organisations.
• SEG International Bhd • Research and Development
SEGi’s effort at research and development is done with the purpose of bridging our products with market and industry needs. Research and development is at the heart of the Groups medium and long-term growth strategies.
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Asian Forum on Business Education (AFBE) 2008 International During his welcoming speech, the Vice Chancellor of SEGi University Conference College, Prof. Dr. Muhamad Awang said, “SEGi is passionate about On the 3rd & 4th of December 2008, SEGi University College hosted promoting a research culture through the interchange of knowledge the Asian Forum on Business Education (AFBE) 2008 International and ideas essentially for the purpose of applying findings towards Conference themed ‘Contemporary Issues in Doing Business in the programmes and academic approaches and thus producing Asia’. a better learning outcome for students…”; he went on to say that “…We constantly challenge ourselves to strive and provide quality The AFBE 2008 International Conference was aimed at education not just through the courses and programmes that are encouraging and supporting interaction between business offered at SEGi but also through conferences and forums such as education and business practice in Asia in order to align and direct the Asian Forum on Business Education International Conference”, both aspects towards a synergistic thrust. In this respect, business adding that education continues with time, as things are constantly development trends in the region will play a vital role in updating changing. business education programmes and curricula by bringing together academics, industry practitioners, professionals, policy makers as SEGi Review well as students to share their interest, concerns, learning and The SEGi Review is a publication developed by the Group which experiences in understanding the nature and conduct of doing allows academic staff to submit research papers in their chosen business in Asia. fields. The Management and staff of SEGi have developed this
• SEG International Bhd • research and development
publication as a means of encouraging academic staff members to Education Management System (EMS) 69 write and submit papers about their research. EMS is an Oracle-based software platform customised to manage personal data and perform the tasks of registering, maintaining and The objective of the SEGi Review is to promote a research culture reporting on student records. The systems also provides aging through the interchange of knowledge and ideas in the hope that reports for collection tracking. EMS was developed to allow fuss- future research will lead to the findings and/or inventions being free scheduling of classes, attendance tracking and classroom patented and commercialised. The Group also believes that by allocation. EMS is integrated with the Centralised Examinations promoting research they can apply their findings towards the Department for the processing of exam registration and results programmes and academic approaches and thus produce a better transcripts. An alumni database stores records of students’ learning outcome for students. achievements, and provides SEGi access to the graduates in its future marketing efforts. The SEGi Review will be published bi-annually and is also open to final year and research students as well as university/college staff SEGi2U E-Learning Portal from outside the Group to submit papers. SEGi2U E-Learning Portal, also known as I-Smart Campus, is an innovative web portal that was developed to enhance learning Product Development of accounting, business, marketing and computing at SEGi by The Group seeks to develop cutting edge, quality programmes complementing traditional classroom teaching. Interactive delivery that are industry driven. Continuous research into market, students also facilitates independent study through online learning materials, and industry needs helps SEGi design unique course features and identify market breakthroughs. self-test exercises, discussion boards, announcements and chatroom discussions. The design of courses is done with the purpose that students are career-ready the moment they graduate. The courses that are The system provides students with access to real-time campus developed and launched not only comply with standards set by updates, and plays a key role in developing e-learning capabilities. regulatory bodies, but have received recognition from industry and This is a virtual learning center that maintains and delivers online professional bodies worldwide. courses over the internet, making learning possible anywhere, any time and at the students’ own pace. These innovative and industry driven courses are also continuously revised and upgraded to meet dynamic industry standards. The Group also continuously repackages its existing suite of products so that they cater to new segments of the market and to stay ahead of competition in aims of being a leader in the higher education market.
• SEG International Bhd • research and development
70 Joint R&D with University Partners and support services. Proper check and balance of internal college Strategic identification of future education trends has underscored examinations are ensured. Continuous research on best practices SEGi’s growth as an education provider. Joint research with our at UK universities and professional institutions, as well as rigorous consortium of global universities has enhanced the interchange of resource management, are factors in maintaining stringent quality knowledge and ideas. The Group also integrates research findings assurance. and market needs into its academic approaches. National Early Childhood Conference (NEC Conference) 2008 SEGi also works with its consortium of global partners in quality The National Early Childhood Conference (NEC Conference) assurance, particularly in areas of syllabi development and teaching 2008, which was held at Summit Hotel USJ on Saturday 16th and methods. Staff and student exchange programmes are frequently Sunday 17th of August, was organised by the Faculty of Education, organised. The Group conducts specialised R&D in allied health Health & Social Science from SEGi College Subang Jaya, co- sciences, engineering, early childhood education, hospitality organised by PTC Learning School International and supported by & tourism and nursing. SEGi also collaborates with its partner National Association of Early Childhood Care & Education Malaysia universities in providing recruitment and support services. (Naeccem).
Collaboration with Industry Partners The conference centered around the theme Nurturing Thinking SEGi has embarked in ‘Valued Corporate Partnerships’ (VCPs) with Learners in the Early Years and brought together early childhood more than 250 large, medium and small organisations to upgrade professionals and advocates committed to providing quality care the skills and qualifications of their staff and their family members. and education, together sharing their interests, learning and The Group also works closely with selected VCPs in areas of setting experience in nurturing the lives and learning of young children. up education funds, curriculum development and job placements. This conference set about to reassess the old philosophies of early childhood education and offer current, practical and tested The ‘Career Exploratory Programme’ (CEP) internship and graduate strategies, information and concepts instead. attachment programme is testament to the immense opportunities and value that VCPs bring. The keynote speaker, Dr Lilian Gonshaw Katz, is a world renowned early childhood educator and authority on the project approach. Centralised Examinations Department Presenting her famous papers: ‘Engaging Children’s Minds And The Centralised Examinations Department received the ISO Hearts – The Project Approach’ and ‘Nurturing Thinking Learners’, 9001:2000 Quality Management System from the independent Dr. Katz truly did engage the minds and hearts of our nations top ABS Quality Evaluations Inc (US) certification board. The award was early childhood practitioners, educators and parents. given in recognition of the integrity of its examination management
• SEG International Bhd • research and development
The conference also featured other international speakers such absorption for ethanol dehydration”. Also, En. Faisal Bin Ibrahim 71 as Dr Diana Lea-Baranovich from the USA, Dr Elizabeth Munroe (Head of the School of Communication from SEGi University from Canada, and Dr Nita Temmerman from Australia. Participants College) was funded to attend the Humanities Conference 2009 also had the pleasure of listening to insights from regional experts in China to present his paper on “Interethnic Accommodation: such as Puspa Sivan, Cherry Pua-Africa, Ruth Wong and Carolyn An Insight into the Malaysian Scenario”. Other academic staff Choo. were also sent to the International Conference on Sustainable Concrete Construction inIndia and the International Conference The NEC Conference 2008 once again enlightened and challenged on Corporate Law in Indonesia to present the papers “Moderate the beliefs and practices of the britest early childhood educators strength lightweight aggregate foamed and non-foamed concrete and practioners. incorporating palm kernel shell as lightweight aggregates” and the paper “Whistleblowing and Corporate Governance: Accidental Staff Development Allies or Lifetime Partners?” respectively. SEGi believes that encouraging staff to pursue research and development as well as increasing its efforts into this area will bring benefits not only to the Group but will also bring more value to the programmes and students. As such, research and development is a key growth strategy and academic staff are continually supported and encouraged to participate in and deliver papers at national and international conferences.
In 2008, SEGi funded four academic staff to participate in and present papers at conferences in Malaysia and worldwide. Ms. Lai Yin Ling (Head of the Faculty of Engineering & Built Environment from SEGi University College) was funded to attend the 15th Regional Symposium on Chemical Engineering (RSCE) & 22nd Symposium on Malaysian Chemical Engineering in Kuala Lumpur to present her paper “On the modelling and simulation of rapid pressure swing
• SEG International Bhd • Corporate Social Responsibility
At SEGi, we believe that Corporate Social Responsibility (CSR) is more than just following the latest business trend, rather it is a full-time and ongoing mission that runs through everything we do. Whether it be providing scholarships to top students in need of assistance, hosting conferences and talks conducted by industry professionals or reaching out to the community through charitable drives, we believe that CSR is a responsibility that cannot be overlooked.
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SEGi’s dedication to grooming future leaders goes hand-in- Scholarships, bursaries and contributions towards education hand with our CSR initiatives and is not only beneficial to the funds are given out to deserving students who are academically local communities but also simultaneously creates values for the inclined, needy or active in co-curricular activities. These Group, its stakeholders, its students and its people. scholarships and bursaries are generally awarded to students as a ‘fee waiver’, where the group repurposes its excess capacities In 2008, SEGi made major commitments to Charity and at its colleges for good use. The scholarships and bursaries are Scholarships and implemented a range of initiatives which reach awarded, in most instances, with marginal or no cost back to the out not only to the Group but also to the wider community. Group as the recipients are joining scheduled classes that are not at total student capacity and where a large portion of the costs Scholarships & Bursaries have already been sunk.
At SEGi we believe that an enriching and exciting educational - SEGi High Achievers’ Scholarship experience should be open to people from all walks of life. SEGi achieves this not only by nurturing and encouraging students The High Achievers’ Scholarship is open to all Malaysian and in their studies but also by reaching out to students of all International applicants who have excelled in their previous backgrounds and offering a range of financial assistance options academic efforts for entry into the foundation, diploma or to suite the different segments of the public. degree programmes. In view of encouraging excellence throughout their programme, recipients must maintain a CGPA of 3.5 each semester to continue enjoying the scholarship.
• SEG International Bhd • corporate social responsibility
In 2008, full and partial scholarships to the total of RM353,000 - SEGi - Sheffield Scholarship Fund 73 were given out to 20 of the top scoring students in the SPM and STPM examinations to pursue tertiary education at SEGi The SEGi - Sheffield Scholarship Fund was set up with the institutions nationwide. aim of giving high achieving yet needy Malaysian students the opportunity to pursue the Foundation in Science and/or Year - SEGi Sports Scholarship 1 of The University of Sheffield MEng (Hons) (1+3) at SEGi University College. The SEGi Sports Scholarship is open to all Malaysian and International applicants who are State or National players in To be eligible for full or partial scholarships into the any field of event for entry into the foundation, diploma or programmes, students must have obtained high academic degree programmes. achievements in their studies and be active in extra-curricular activities. In 2008, full and partial scholarships to the total value of RM140,000 were given out to 7 national and state level In 2008, full and partial scholarships to the total value of athletes to pursue tertiary education at SEGi University RM22,500 were given out to 3 recipients to pursue their College. These students also went on to represent SEGi in Engineering studies at SEGi University College. various sporting meets such as ‘University College Basketball League’ (UCBL), MAPCU games and the SEGi Street 5ive. - Higher Opportunities for Private Education (HOPE) Scholarship - SEGi Principal’s Scholarship The HOPE Scholarship Fund was established to assist The SEGi Principal’s Scholarship is open to all Malaysian students who are unable to secure a place in programmes applicants who are needy and have excelled in their academic offered by local public institutions of higher learning performance and extra-curricular activities for entry into the by subsidizing their fees into participating local private foundation, diploma or degree programmes. To encourage universities and colleges. Eligible students are able to pursue excellence throughout their programmes, recipients must tertiary education at private institutions of higher learning maintain a CGPA of 3.0 each semester and must also remain at subsidised fees comparable to those charged by public active in extra-curricular activities to continue enjoying the universities. scholarship. SEGi is one of the inaugural group of ten private institutions Generally awardees of this scholarship will be recommended which have taken part in this programme and continues to by the principal of the respective institution. be one of the largest contributors. In 2008, full and partial scholarships to the total of RM1,514,000 were given out to In 2008, full and partial scholarships to the total of RM50,000 55 recipients to pursue tertiary education at SEGi institutions were given out to 2 recipients to pursue tertiary education at nationwide. SEGi institutions nationwide.
• SEG International Bhd • corporate social responsibility
74 - Skim Kurang Mampu (SKM) - 8TV Scholarship Fund
Skim Kurang Mampu (SKM) is a special scheme which offers For the fourth consecutive year, SEGi is again the official bursaries and financial aid to needy but academically qualified partner for the 8TV Scholarship Fund. The fund, which was Malaysia students from rural areas to pursue higher education set up in early 2006, was established with the aim of seeking or training at SEGi Group of Institutions nationwide. Among out and rewarding smart, confident candidates in pursuing the criteria for eligibility is a combined household income diploma or degree programmes at SEGi. of less than RM2,500 per month and students must have obtained at least 5 credits at SPM level. Introduced in early 2006, the 8TV Scholarship Fund in collaboration with SEGi awarded scholarships amounting to In 2008, full and partial scholarships to the total of RM830,000 RM300,000. The 2008 fund was valued at RM1 million to were given out to 43 recipients to pursue tertiary education at benefit more deserving youths in pursuing diploma or degree SEGi institutions nationwide. programmes at SEGi.
- The Star Education Fund In 2006, when the scholarship fund was first established, SEGi awarded scholarships amounting to RM300,000 to Set up in 1994, the fund’s objective is to provide educational 9 candidates. In the following year the candidates awarded opportunities to deserving and needy young Malaysians, with the fund jumped to 21 with a total pledge of RM800,000. with the family background of applicants considered in 2008 was the first year that the amount pledged hit RM1 the selection process alongside academic results and co- million with a total of 22 students benefiting from the fund curricular involvement. To date, a total of 2,276 scholarships and RM623,300 of the pledged amount being utilised. worth RM54.56mil have been awarded. - Karangkraf - SEGi Education Fund With a pledge worth RM821,000, the Group was one of the largest contributors toward The Star Education Fund 2008. The Karangkraf - SEGi Education Fund was set up to assist A total of 13 candidates, pursuing diploma and degree deserving students of any race and religion to obtain academic programmes at SEGi University College were eligible for the qualifications at SEGi Group of Institutions. The fund is worth fund, utilising RM359,000. RM10 million of scholarships, of which RM1 million will be allocated per year for 10 years.
RM1,202,000 worth of full and partial scholarships were given out to benefit twenty (20) recipients in 2008.
• SEG International Bhd • corporate social responsibility
- Nanyang Siang Pau Scholarship Fund 2008 Education Outreach Programmes 75
For the first time in 2008, SEGi Group of Institutions pledged - Nanyang Secondary School Quiz Competition RM822,000 to the Nanyang Siang Pau Scholarship Fund with the aim of providing scholarships to students from The Nanyang Secondary School Quiz Competition 2008 Chinese Independent Schools and SMJK (Chinese) schools and News Cutting Competition is an annual collaboration in Malaysia. This scholarship fund will provide opportunities between SEGi College and Nanyang Siang Pau. The event is for aspiring students to fulfill their quest for a quality education supported by the Ministry of Education Malaysia and United across SEGi institutions nationwide. A total contribution of Chinese School Teachers Association of Malaysia. RM194,000 benefited 7 students in 2008. The competition aims to promote awareness of current - Sin Chew Scholarship Fund 2008 local and worldwide issues, indirectly encouraging students to inculcate the habit of reading newspapers or gaining Organised by Sin Chew Daily, this education fund provides knowledge from news on the Internet. financial assistance to deserving and needy Malaysian students to pursue higher education with various institutions In its 4th consecutive year, the competition saw hundreds nationwide. of secondary schools throughout Malaysia battling it out to see which school has the most current knowledge of the The Group was ranked among the most popular and world around them. The Grand Finals were held at SEGi successful higher education institutions among applicants University College, with SEGi pledging scholarships which for the fund in 2008. From the original pledge worth RM1 were awarded to the winning team. million, a total of 22 candidates, pursuing diploma and degree programmes at SEGi institutions, were eligible for the fund, utilising RM590,000.
• SEG International Bhd • corporate social responsibility
76 SEGi CSR Charity Events Following the event, SEGi donated profits made from the event to various named charities further demonstrating - SEGi Charity Carnival their commitment to contributing positively to society and to adding social value. “At SEGi, we believe that Corporate SEGi University College hosted its annual Charity Carnival on Social Responsibility is more than just paying lip service, for the 19th of July 2008 at its Kota Damansara campus. The our organisation it is a full-time and ongoing mission,” said event saw a turnout of almost 2,000 prospective students, Lee Kok Cheng, who was then the Chief Operating Officer families and public for the fun-filled event, with a myriad of of SEG International Bhd and Principal of SEGi College, events and activities to participate in. Malaysia.
Perhaps the more popular events held on the day were the - Free Dental Check-ups sporting events and competitions, including the futsal face- off challenge, the SEGi 5ive Basketball competition, the 3-on- On 12 September 2008, the SEGi University College Dental 3 Basketball competition and the competition that will see the Centre conducted free dental check-ups for three local winners of the SEGi 5ive Basketball competition challenge orphanages. The charitable drive, which was held to coincide the winners of the 3-on-3 Basketball competition. Other than with the SEGi University College Open Day, saw a total of the sporting competitions, there were food and beverage 44 youngsters and caretakers from local orphanages receive stalls, miscellaneous stalls and a charity jumble sale. free dental check-ups as well as being treated to lunch and refreshments. Other activities held included a cheerleading performance by the winner of the ‘Cheers 2008’ competition, The SEGi The orphans received free T-shirts which were specially printed Amazing Campus Challenge, inflatable games, a lucky for them, goodie bags and vouchers. They also participated draw, and many more. The event went off with a big bang in the games and entertainment that were held as a part of in a concert and gala performance from 8TV pop celebrities, the Open Day celebrations. including a performance by So You Think You Can Dance finalists and special performances by various pop celebrities.
• SEG International Bhd • corporate social responsibility
Following their visit to the SEGi campus, as an extension of The free dental check-ups were just the beginning, with 77 their hospitality, treated the orphans and their caretakers to appointments and further treatments carried out at later an afternoon of learning and fun at the Muzium Negara. dates.
Present at the event was Mr. KC Lee, (who was then the These initiatives are in line with SEGi’s Corporate Social Chief Operating Officer), Prof. Dr. Muhamad Awang, (SEGi Responsibility efforts and such projects are on-going. SEGi University College Vice Chancellor), Dr. K.T. Nathan, (Head of is now currently in the process of ‘adopting’ more local the School of Dentistry), and representatives from Persatuan orphanages, shelters and homes so they can provide free Didik Mudah, Lembah Kelang. dental check-ups to the needy and, in special cases, free dental services. “We are delighted to have our ‘little guests’ join us today and I hope they have enjoyed and benefited from their visit to our campus,” said Mr. KC Lee. “We have all these fantastic facilities and top dental staff at our disposal so providing these free dental check-ups to the local community is the least we can do.”
• SEG International Bhd • Employee Welfare
78 Employee Welfare has always been a strong focus of the Group and we understand the value of retaining staff through a happy and conducive work environment allowing us to maintain knowledge and productivity within the organisation. SEGi strives to attain a perfect balance between the contribution of employees to organisational goals and the rewards offered in return. This objective is fulfilled by encouraging a working environment where good, innovative ideas and integrity are encouraged throughout the organisation.
One of the biggest problems faced by companies in highly The Group believes in sourcing for talent and promoting its competitive job markets, as experienced in the education industry people from within. It is through continuous upgrading of job in Malaysia, is high turn-over and de-motivation of employees. To knowledge and skills at all levels that the organisation can achieve cope with the challenge of retaining a motivated and productive its objectives of being a leader in human potential development. workforce SEGi has adopted a strategy in creating a learning SEGi aims to instill a high level of work ethics and values in its organisation, where continuous learning opportunities are people for their contribution, competency, accountability, integrity available to employees. Our people are encouraged to fulfill and responsibility. SEGi constantly updates its employment policy training resulting in employees that are motivated to work harder so as to make it current and to ensure a holistic direction for staff and smarter towards achieving the goals of the organisation and sourcing, recruitment, remuneration, the creation of a conducive also provide superior services to its consumers. Academic faculty work environment, people relations, increment, incentives, managers, programme consultants and lecturers are adequately promotion, conflict resolution and training. qualified and trained, with many opportunities to upgrade their professional and technical expertise. The Group also provides employee welfare through health insurance, medical coverage and hospitalisation for its 1,000 Education assistance schemes are offered to its people to employees. encourage personal growth. SEGi provides study loans, scholarships and discounts for its people. Staff discounts and Through its focus on employee development and welfare, SEGi’s rebates are also extended to immediate family members. strategy is to produce a culture of excellence and satisfaction amongst its people, so as to produce a favourable work environment for all and exceed the expectations of its customers, shareholders, associates and partners.
• SEG International Bhd • Calendar of Events
79
February 18 March 25 The Prime Minister of Malaysia, Datuk Seri Abdullah Haji Ahmad SEGi launched its Built Environment programmes inclusive of Badawi, officially launched the new flagship campus of SEGi the Diploma in Civil Engineering and Diploma in Construction College Malaysia at Kota Damansara. Management. February 29 March 26 The SEGi College campuses in Kota Damansara, Kuala Lumpur American Degree Program students from SEGi College Subang and Subang USJ held their Chinese New Year celebration during Jaya donned various traditional costumes for performances the final week of the 15-day long celebration. from around the world during their Intercultural Communications Exhibition. March 10 SEGi, in collaboration with 8TV, launched the ‘8TV Scholarship March 28 Fund’ for the third consecutive year offering RM1,000,000 worth SEGi College Subang Jaya held its 6th Wave Concert, an annual of scholarships. musical extravaganza organised by the Music Department from the Faculty of Creative Arts & Design. March 25 SEGi President, Dato’ (Dr.) Patrick Teoh, was made Patron of the March 29 University of Abertay Foundation in recognition of his contribution The American Degree Program Faculty of SEGi College Subang to both the University and to the academic community in Jaya held an Academic Advisors Sports Day designed to build general. leadership and teamwork skills of its lecturers and students.
• SEG International Bhd • calendar of events
80 March 31 May 29 SEGi was presented with the ‘The Emerging Star’ award during SEGi and Tropicana Medical Centre signed a Memorandum of the Malaysian Nursing Board Excellence Nurse Awards. Understanding (MOU) which was witnessed by the Y. Bhg. Dato’ Seri Dr. Hj. Mohd. Nasir bin. Mohd Ashraf, Secretary General April 12 of the Ministry of Health, representing the Minister of Health, 396 graduating students were conferred their diplomas during the YB Dato’ Liow Tiong Lai. Diploma Convocation held at the flagship campus Multi-Purpose Hall. The student council of SEGi College Kuala Lumpur held their annual Food & Garage Sale to raise funds for the council. April 14 SEGi College celebrates along with 200 University of Southern June 10 Queensland students on their graduation. The Music Department of SEGi College Subang Jaya hosted a unique instrumental Performance ‘Shadow Play and Romance: April 21 The Oboe in Southeast Asia’ featuring the oboe - performed by The newly appointed Vice Chancellor from The University of Ms. Keri E. McCarthy, accompanied by pianist Jeffrey Savage and Sheffield, Prof. Keith Burnett, visited SEGi’s flagship campus in mandolin player Andrew Scheef. Kota Damansara. June 11 May 16 SEGi College Malaysia received an invitation from the Ministry SEGi expands its Allied Health Science offerings with the launch of Higher Education to upgrade its status to University College, of the Master of Pharmacy (2+2) programme run in collaboration under section 22 of the Private Higher Education Act 1996. with the University of Sunderland. June 25 SEGi College Kuala Lumpur held its annual 3-on-3 basketball 22nd Annual General Meeting held at SEGi College Malaysia. competition organised by the student council. Declared dividend of 2 sen per ordinary share less income May 21 tax at 26%. SEGi students came together to raise funds for the victims for the July 11 Myanmar Nargis Cyclone survivors. June intake students from SEGi College Penang participated in May 26 a Leadership Orientation Camp at the SEGi Leadership Centre (SLC) in Kuala Linggi, Melaka. Reaching out a helping hand to the Salvation Army, SEGi College Malaysia awarded a Principal Scholarship to 19-year-old Chong July 12 Yu Sen. A few hundred American Degree Program students at SEGi College pooled their resources together to organise the ‘International Cultures & Food Fair’ at Subang Jaya.
• SEG International Bhd • calendar of events
July 19 October 6 81 SEGi College Kuala Lumpur (SCKL) had a truly memorable Annual Group Managing Director/CEO of SEG International Bhd (SEGi), Futsal Competition at the Segambut Shootout, organised by its Dato’ Clement Hii, was named as one of the Top Nominees for the Student Council and SCKL Marketing Department. Ernst & Young Entrepreneur of the Year 2008 Malaysia award. July 27 October 31 Finals of the SEGi Street 5ive basketball tournament were held at Dato’ Clement Hii, Group Managing Director/CEO of SEG International Bhd (SEGi) was conferred the CEO Award in Berjaya Times Square. recognition of his leadership qualities which have led his company August 6 to corporate success, at the ASEAN Awards for Leadership organised by Technology Business Review (TBR). Students from SEGi College Penang JCI Club organised a movie event where 177 students, staff and family packed a whole cinema December 3 at GSC Gurney Plaza to watch ‘The Mummy, Tomb of the Dragon SEGi University College hosted the Asian Forum on Business Emperor’. Education (AFBE) 2008 International Conference themed ‘Contemporary Issues in Doing Business in Asia’. August 22 The Faculty of Education, Social & Health Sciences hosted the NEC December 4 Conference centered on the theme Nurturing Thinking Learners in SEGi College Kuala Lumpur was proud to witness the award the Early Years at Summit Hotel USJ. presentation ceremony to signify the collaboration between ACCA and the University of Greenwich whereby ACCA has granted a 9 August 27 papers exemption agreement to University if Greenwich (UOG) for SEG International Bhd (SEGi) appointed Tan Sri Dato’ Seri Megat students who have successfully completed the UOG BAAF 3+0 Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas as its new chairman, Degree in SCKL. replacing Dato’ Pahamin A. Rajab. December 6 August 31 SEGi participated in the FACON Education Fair at Putra World Students from SEGi College Penang recognised the national day Trade Centre (PWTC) and was awarded the best booth design for its appealing booth design and layout. with the theme ‘Uniquely Spicey Merdeka’ whereby they recreated the Malaysian Flag using ingredients like spices, herbs, legumes December 18 such as dry chili, white sago and yellow lentils. SEGi University College signed a Memorandum of Agreement (MOA) with Meenakshi University from India to promote new September 16 courses and pathways for SEGi Dentistry students. The Hospitality Enjoyment Club organised a career talk held in the SEGi College Penang Auditorium with the aim of exposing December 20 hospitality and tourism students to the working environment SEGi held a Campus Wide Open Day throughout all its colleges in within a hotel. the Klang Valley to provide prospective students with an avenue to learn more about the SEGi programmes and community.
• SEG International Bhd • creating value DEVELOPING A SOLID FUTURE Financial Highlights
Group Five Years Financial Summary 2004 2005 2006 2007 2008 RM’000 RM’000 RM’000 RM’000 RM’000
Revenue 86,263 75,118 74,230 86,263 127,407 Profit before tax 11,994 1,000 2,868 2,479 9,884 Profit for the year - attributable to shareholders 9,321 236 2,073 5,156 7,266 Share capital 88,647 89,093 89,093 89,093 89,093 84 Shareholders’ fund 155,073 151,558 150,774 153,589 158,324 Total assets 275,020 301,315 284,251 309,896 213,910 Basic earnings per share (sen) 11.08 0.27 2.37 6.03 8.70 Proposed gross dividend per share (sen) 6.00 2.00 2.00 2.00 3.00
PROFIT FOR THE YEAR REVENUE attributable to shareholders Shareholders’ Fund (RM’000) (RM’000) (RM’000)
150,000 10,000 200,000
120,000 8,000 150,000
90,000 6,000
100,000
60,000 4,000
50,000 30,000 2,000
0 0 0 04 05 06 07 08 04 05 06 07 08 04 05 06 07 08
• SEG International Bhd • Corporate Governance Statement
The Board of Directors is supportive of the adoption of principles and best practices in the Malaysian Code of Corporate Governance (“the Code”) throughout the Group. The Board views the adoption of the highest standards of corporate governance as imperative for the protection and enhancement of stakeholders’ value and the performance of the Group.
The Board of Directors of the Company is pleased to report to Board meetings shareholders on the manner in which the Group has applied the The Board meets on a scheduled basis, at least once every Principles, and the extent to which it has complied with the Best quarter with additional meetings held as and when urgent issues Practices of Corporate Governance as set out in Part 2 of the and important decisions are required to be made between the 85 Code. scheduled quarterly meetings. The Board has a formal schedule of matters reserved to it for decision, including the approval of annual and quarterly results, major acquisitions and disposals, Principle A – Board of Directors material contracts or agreements, major capital expenditures, major decisions affecting business operations and performance of Constitution of the Board and Board Balance the Group. All Board members carry an independent judgement The Board has overall responsibility for corporate governance, when deliberating matters concerning the Group including strategic direction and overseeing investments of the Group and strategy, operations, performance, finance, resources and of the Company. standard of conduct.
The Board, led by an Independent Non-Executive Chairman, is During the year ended 31 December 2008, five (5) meetings were currently made up of seven (7) members, comprising three (3) held. A summary of attendance for each of the board meetings Executive Directors and four (4) Non-Executive Directors, all of held is as follows: whom are Independent Directors. The Board, with their different backgrounds and specialisations, collectively bring with them a N no. of wide range of experience and expertise in legal, business, financial meetings and technical fields. The mixture of skills and experience is vital to Name of Directors attended give balanced views in decision-making. A brief profile of each Director is presented on pages 22 to 25. Tan Sri Dato’ Seri Megat Najmuddin Bin 5 out of 5 Dato’ Seri Dr. Haji Megat Khas There is a clear division of responsibilities between the Chairman Dato’ (Dr.) Patrick Teoh Seng Foo 5 out of 5 and Group Managing Director to ensure that there is a balance of power and authority. The Chairman is responsible for ensuring Dato’ Clement Hii Chii Kok 5 out of 5 Board’s effectiveness and conduct whilst the Group Managing Lee Kok Cheng 5 out of 5 Director has overall responsibility for the operating units, organisational effectiveness and implementation of Board’s policies Amos Siew Boon Yeong 5 out of 5 and decisions. The Executive Directors have direct responsibility Simon Hue Fook Chuan 5 out of 5 for business operations. The presence of Independent Non- Executive Directors fulfil a pivotal role in corporate accountability. Tony Foo San Kan 5 out of 5 Although all the Directors have equal responsibilities for the Dato’ Pahamin A. Rajab (retired on 25 June 2008) 3 out of 3 Group’s operations, the roles of these Independent Non-Executive Directors are important. They provide independent and objective Datin Fadzilah Bte Saad (retired on 25 June 2008) 3 out of 3 views, advice and judgement on issues of strategy, business Abdullah Kamal Bin Shafi’i (retired on 25 June 2008) 1 out of 3 performance and controls, to take account of the interests of the Group, shareholders and communities in which the Group conducts business as well as the public at large.
• SEG International Bhd • corporate governance statement
Access to Information • executive Committee Board meetings are structured with a pre-set agenda, whereby The Executive Committee is authorised to transact business prior to each Board meeting, all Directors are provided with a set activities of the Group subject to certain limitations as set of Board papers containing information relevant to the business out in the terms of reference and to ensure the smooth and of the meeting to facilitate decision-making. The Board has effective running of the Company. The Executive Committee unrestricted access to all information pertaining to the Group’s comprises the following: affairs and the services of the Company Secretary. If necessary, the Directors can seek independent professional advice at the Tan Sri Dato’ Seri Megat Najmuddin Bin Chairman Company’s expense to enable them to discharge their duties Dato’ Seri Dr. Haji Megat Khas 86 effectively. Independent Non-Executive Director Board Committees Dato’ (Dr.) Patrick Teoh Seng Foo Member The Board assumes responsibility for effective stewardship and Executive Deputy Chairman/President control of the Group. It delegates certain responsibilities to the Board Committees as described below with clearly defined terms Dato’ Clement Hii Chii Kok Member of reference: Group Managing Director/Executive Director
• nominating Committee Lee Kok Cheng Member The Nominating Committee is entrusted with the specific task Group Chief Executive Officer/Executive Director of identifying and recommending new nominees to the Board. However, the Board has the final decision on appointments Amos Siew Boon Yeong Member after considering the recommendations of the committee. Independent Non-Executive Director
The committee implemented a self-appraisal programme to • remuneration Committee assess the Directors of the Company on an on going basis. The Remuneration Committee comprising mainly Non- Their duties include evaluating the effectiveness of the Board Executive Directors who are responsible for developing the as a whole, the various board committees and reviewing the remuneration policy framework and to make recommendations mix of skills, experience and expertise of each Director and to the Board on the remuneration packages of the Directors. their contributions to the effectiveness of the decision-making The Executive Directors do not participate in decisions relating process of the Board. to their remuneration. The Board as a whole determines the remuneration of the Directors. The individual concerned The Nominating Committee comprises Non-Executive abstains from participating in decisions in respect of his/her Directors as follows: individual remuneration.
Tan Sri Dato’ Seri Megat Najmuddin Bin Chairman The Remuneration Committee consists of the following members: Dato’ Seri Dr. Haji Megat Khas Independent Non-Executive Director Tan Sri Dato’ Seri Megat Najmuddin Bin Chairman Dato’ Seri Dr. Haji Megat Khas Simon Hue Fook Chuan Member Independent Non-Executive Director Independent Non-Executive Director Dato’ (Dr.) Patrick Teoh Seng Foo Member Tony Foo San Kan Member Executive Deputy Chairman/President Independent Non-Executive Director Tony Foo San Kan Member Independent Non-Executive Director The committee met once during the year under review.
The committee met once during the year under review.
• SEG International Bhd • corporate governance statement
• Audit Committee retire at regular intervals by rotation at least once every three (3) The Audit Committee assists the Board in discharging its duty years and shall be eligible for re-election. in maintaining a sound internal control system to safeguard the shareholders’ investments and the Company’s assets. Training and Development of Directors All the Directors have completed the Mandatory Accreditation The terms of reference and further information on the Audit Programme and continuously attended various training Committee are set out in the Report of the Audit Committee. programmes to stay abreast with developments in the market place and new statutory and regulatory requirements. • risk Management Committee During the year under review, the Directors attended education The Risk Management Committee is established to oversee 87 the implementation of the risk management system in the programmes and seminars to stay abreast with developments in Group. The committee reports directly to the Board and assists the market place. Among the professional programmes attended the Board in overseeing the management of risk issues and were financial reporting standards, recent changes in the reviews the effectiveness of internal controls within the Group. corporate legal framework towards better corporate governance - its implications on Directors’ duties and Safety and Health The Risk Management Committee consists of the following Environment Management. The Board will continue to evaluate members: and determine the training needs of its Directors on an ongoing basis. Lee Kok Cheng Chairman Principle B – Directors’ Remuneration Group Chief Executive Officer/Executive Director The objective of the Company’s policy on Directors’ remuneration is to attract and retain Directors of calibre needed for the Simon Hue Fook Chuan Member achievement of the Company’s strategic objectives. The details Independent Non-Executive Director of the remuneration for the Directors of the Company for the year under review are as follows: Hew Moi Lan Member Group Chief Operating Officer 1. The aggregate remuneration of each Director were as follows:
Cheryl Chong Poh Yee Member S salary fee other Vice President, Finance and Corporate Services emoluments
The Head of Internal Audit has participated in all meetings. Executive Directors The departmental heads from Human Resource, Information Dato’ (Dr.) Patrick Teoh Seng Foo 259,000 - 51,240 Technology, Media and Advertising, and Regulatory Dato’ Clement Hii Chii Kok 413,000 - 47,436 Departments, and representatives from key business units Lee Kok Cheng 322,000 - 68,170 will also participate in the meeting, effective 2009, to identify, evaluate and manage risks that affect the achievement of the Non-Executive Directors Group’s business objectives. They will also review the actions Tan Sri Dato’ Seri Megat Najmuddin - 40,000 - taken to mitigate such risks to an acceptable level. Bin Dato’ Seri Dr. Hj Megat Khas Amos Siew Boon Yeong - 40,000 - The committee met twice during the year under review. Simon Hue Fook Chuan - 28,000 - Tony Foo San Kan - 28,000 - Re-election Dato’ Pahamin A. Rajab - 33,000 - In accordance with the Articles of Association of the Company, all Datin Fadzilah Bte Saad - 14,000 - Directors who are appointed by the Board are subject to retirement Abdullah Kamal Bin Shafi’i - 14,000 - and eligible for election by shareholders at the annual general meeting following their appointment. The remaining Directors will Other emoluments include benefits-in-kind and statutory contributions.
• SEG International Bhd • corporate governance statement
2. The number of Directors whose total remuneration fall within Principle D – Accountability and Audit the following bands were as follows: Financial Reporting The Board aims to present a balanced and understandable Number of Directors assessment of the Group’s financial performance and prospects to Range of Remuneration executive non-Executive the shareholders, primarily through its annual financial statements and unaudited interim results as well as the Chairman’s Statement Below RM50,000 - 7 and other reports in the Annual Report. The Audit Committee RM300,001 to RM350,000 1 - assists the Board in reviewing information disclosed to ensure RM350,001 to RM400,000 1 - accuracy and adequacy. 88 RM450,001 to RM500,000 1 - Internal Control Principle C – Shareholders Information on the Group’s internal control is presented in the Relationship with Shareholders and Investors Statement of Internal Control which appears in the ensuing pages Recognising the importance of timely dissemination of information of this report. to shareholders and other stakeholders, the Board is committed to ensure that the shareholders and other stakeholders are Relationship with Auditors well informed of major developments of the Company and the The role of the Audit Committee in relation to external auditors is information is communicated to them through the following described in the Audit Committee Report as set out in the ensuing channels: pages of this Annual Report. The Company has maintained a close and transparent relationship with its auditors in seeking • The Annual Report; professional advice and ensuring compliance with applicable • The various disclosures and announcements to Bursa approved accounting standards in Malaysia. Malaysia Securities Berhad (“Bursa Securities”) including quarterly and annual results via www.bursamalaysia.com; Compliance Statement • The Company’s website at www.segi.edu.my; and The Board has taken steps to ensure that the Group has • The Company’s investor relations website at segi.investor. implemented the Best Practices as set out in the Code and net.my considers that all other best practices have been substantially implemented in accordance with the Code. The Board has appointed Mr. Amos Siew Boon Yeong, a senior Independent Non-Executive Director, to whom all concerns This statement was approved by the Board of Directors on regarding the Company may be conveyed. 22 April 2009.
Annual General Meeting (“AGM”) Other information required by the Bursa Securities The AGM provides a platform for two-way communication Listing Requirements between the Company and shareholders. The Chairman and the Board encourage shareholders to attend and participate 1. utilisation of Proceeds Raised from Corporate Proposals in the AGM. Shareholders are given the opportunity to seek There were no proceeds raised from corporate proposals in clarification on any matters pertaining to the business and financial the year under review. performance of the Group.
• SEG International Bhd • corporate governance statement
2. share Buy-back During the year ended 31 December 2008, the Company bought back a total of 1,957,300 of its own shares for a total consideration of RM1,301,055. These shares are presently held as treasury shares. None of the shares purchased has been resold or cancelled during the year.
Details of the shares purchased during the year are as follows:-
Purchase Price Average Cost Monthly No. of Shares Per Share (RM) Per Share Total Breakdown Purchased Lowest Highest RM RM 89 January 2008 220,000 0.670 0.670 0.6700 148,034 February 2008 450,500 0.660 0.700 0.6800 314,846 April 2008 220,500 0.650 0.665 0.6575 145,765 May 2008 519,700 0.620 0.655 0.6375 329,368 June 2008 522,000 0.595 0.715 0.6550 346,253 December 2008 24,600 0.650 0.695 0.6725 16,789 1,957,300 0.690 0.830 0.787 1,301,055
3. options, Warrants or Convertible Securities 6. non-Audit Fees There were no options, warrants or convertible securities in There were no non-audit fees paid to the external auditors issue during the year under review. during the year ended 31 December 2008.
4. American Depository Receipt (“ADR”) or Global 7. variation in Results Depository Receipt (“GDR”) Programme There was no material variance in results between the The Company did not sponsor any ADR or GDR Programme audited results for the year ended 31 December 2008 and during the year. the unaudited results previously announced.
5. sanctions and/or Penalties 8. Profit Guarantee During the year, there were no major sanctions and/or The Group has not provided any profit guarantee in the year penalties imposed on the Company or its subsidiary ended 31 December 2008. companies, Directors or management by the relevant regulatory authorities.
• SEG International Bhd • corporate governance statement
9. material Contracts The Guarantor, Dato’ (Dr.) Patrick Teoh Seng Foo and Dato’ Save as disclosed below, there were no material contracts Clement Hii Chii Kok are substantial shareholders of the entered into by the Company and its subsidiaries, involving Company. Dato’ (Dr.) Patrick Teoh Seng Foo, Dato’ Clement the interest of directors and major shareholders, either still Hii Chii Kok and Mr Amos Siew Boon Yeong, the Directors of subsisting at the end of the year or entered into since the end the Company, are also Directors of the Guarantor. of the previous year. 10. revaluation Policy on Landed Properties Settlement Agreement dated 24 March 2008 entered into The Company does not have a policy to revalue its landed between EcoFirst Consolidated Bhd (formerly known as properties. 90 Kumpulan Emas Berhad) (“Guarantor”) and the Company in relation to a Profit Guarantee Agreement dated 22 October 11. recurrent Related Party Transactions of a revenue or 1999 and three Supplemental Agreements thereto. The trading nature salient terms of the Settlement Agreement are as follows: No recurrent related party transactions were conducted during the year under review. (i) the shortfall of the guaranteed profit up to the financial year ended 31 December 2005 amounting 12. internal Audit Function to RM3,380,000.00 shall be paid by the Guarantor to During the year under review, the Company incurred expenses the Company via monthly payment over a period of 34 amounting to RM135,000.00 for the internal audit function. months at RM100,000.00 each month from January 2008 until September 2010 and the final RM80,000.00 in October 2010;
(ii) the guaranteed profit for the financial year ended 31 December 2006 shall be calculated based on the cumulative pre-tax profits of the Company for the years of 2006, 2007, and 2008, and all and any shortfall then shall be payable by the Guarantor to the Company; and
(iii) the outstanding amounts payable by the Guarantor to the Company as stated in (i) and (ii) above shall be secured by an assignment in escrow of properties owned by the Guarantor’s subsidiary in favour of the Company.
• SEG International Bhd • Statement of Directors’ Responsibilities in respect of the audited financial statements
The Board is responsible for ensuring that the financial statements of the Group give a true and fair view of the state of affairs of the Group and of the Company as at the end of the year, and of their results and cash flows for the year then ended. In preparing the financial statements, the Directors have complied with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act, 1965.
In preparing the financial statements, the Directors have adopted and consistently applied suitable accounting policies andmade reasonable and prudent judgements. 91
The Directors are also responsible for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
• SEG International Bhd • Audit Committee Report
The Board of Directors is pleased to present the Audit Committee Report for the year ended 31 December 2008.
Membership OBJECTIVES
The Audit Committee comprises: The principal objectives of the Committee are to review the adequacy and the integrity of the Company’s internal control Amos Siew Boon Yeong Chairman system and management information system, including systems 92 Independent Non-Executive Director for compliance with applicable laws, regulations, rules, directives and guidelines, as well as to oversee the conduct of the Company’s Simon Hue Fook Chuan Member businesses. Independent Non-Executive Director The Committee provides assistance to the Board in fulfilling its Tony Foo San Kan Member fiduciary responsibilities, particularly in areas related to financial Independent Non-Executive Director accounting and reporting practices, as well as operation and management controls. This is to ensure conformity with good MEETINGS corporate governance, transparency, integrity and accountability in the conduct of the Group’s activities so as to safeguard the During the year under review, meetings were held on 26 February rights and interests of the shareholders. 2008, 22 April 2008, 23 May 2008, 27 August 2008 and 27 November 2008, a total of five (5) meetings. Attendance of COMPOSITION each member was as follows: The Committee shall consist of at least three (3) members. All Audit Committee Members no. of meetings attended the Committee members must be non-executive Directors, with a majority of them being independent. The Chairman shall be Amos Siew Boon Yeong 5/5 an Independent Non-Executive Director. At least one member Simon Hue Fook Chuan 5/5 of the Committee must be a member of the Malaysian Institute Tony Foo San Kan 5/5 of Accountants or if he is not, then he must be a person who Datin Fadzilah Bte Saad 3/3 complies with the requirements of Paragraph 15.10 of the Listing (retired on 25 June 2008) Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities Listing Requirements”). Terms of Reference of the Audit Committee In the event of any vacancy in the Committee resulting in the non- The Audit Committee (“the Committee”) is governed by the terms compliance of subparagraph 15.10(1) of the Bursa Securities of reference that were formally endorsed by the Board on 11 May Listing Requirements, the vacancy must be filled within three 2001 and have been reviewed from time to time. The terms of (3) months. reference are set out as follows: MEETINGS
The Committee shall meet not less than four (4) times a year. A quorum shall consist of two (2) members, with independent directors forming the majority.
• SEG International Bhd • audit committee report
Certain members of senior management shall attend meetings by FUNCTIONS invitation of the Committee. The external auditors will be present at certain meetings to report to the Committee on their audit plan, The functions of the Committee are as follows: their audit report, any major audit findings and any other specific issues. The Committee also meets at least twice a year with the [a] to review the following and report the same to the Board of external auditors without the management present. Directors: i with the external auditors, the audit plan; The Secretary shall be responsible for drawing up the agenda ii with the external auditors, their evaluation of the system of and circulating it, supported by explanatory documentation to the internal controls; Committee members prior to each meeting. iii with the external auditors, their audit report; 93 iv the assistance given by the Company’s employees to the The Secretary shall also be responsible for keeping the minutes external auditors; of the Committee, and circulating them to each member of the v the adequacy of the scope, functions, competency and Committee and of the Board of Directors. The Chairman of resources of the internal audit function and that it has the the Committee shall report on each meeting to the Board. The necessary authority to carry out its work; Secretary to the Committee shall be the Company Secretary. vi the internal audit programme, processes, the results of the internal audit work undertaken and whether or not AUTHORITY appropriate actions are taken on the recommendations of the internal audit function; The Committee is authorised by the Board: vii the quarterly results and year end financial statements, prior to the approval by the Board of Directors, focusing [a] to investigate any matter within its terms of reference; particularly on: • changes in or implementation of major accounting [b] to have the resources which are required to perform its duties; policies and practices; • significant adjustments arising from the audit; [c] to have full and unrestricted access to any information pertaining • significant and unusual events; and to the Group and the Company; • compliance with accounting standards and legal requirements; [d] to have direct communication channels with the external viii any related party transaction and conflict of interest situation auditors and person(s) carrying out the internal audit function or that may arise within the Company or Group including any activity; transaction, procedure or course of conduct that raises questions of management integrity; and [e] to obtain independent professional or other advice as necessary; ix external auditors’ management letter and management’s and responses.
[f] to convene meetings with the external auditors, the internal [b] to consider the appointment of the external auditors, the audit auditors or both, excluding the attendance of other directors and fee and any questions on resignation or dismissal; employees of the Company, whenever deemed necessary. [c] to recommend the nomination of a person or persons as external auditors; and
[d] such other functions as the Board may from time to time determine.
• SEG International Bhd • audit committee report
Activities during the year • Reviewed the extent of the Group’s compliance with provisions set out in the Malaysian Code on Corporate Governance During the year under review, the following were the activities of (“the Code”). the Committee: • Recommended to the Board action plans to address identified gaps between the Group’s existing corporate governance • Reviewed the external auditors’ scope of work and audit plans practices and the prescribed corporate governance principles for the year prior to the audit with the representatives from the and best practices under the Code. external auditors who presented their audit strategy and plan. • Met with the external auditors independently without the • Reviewed with the external auditors the results of the audit and presence of the management. 94 the audit report. • Met with the internal auditors independently without the • Considered and recommended to the Board for approval of the presence of the management. audit fees payable to the external auditors as disclosed in the notes to the financial statements. Internal Audit Function • Reviewed the quarterly and year-end financial statements of the Company and the Group before recommending for the Board’s The Audit Committee is supported by an independent internal approval. audit function. The main role of the internal audit function is to • Reviewed the Company’s compliances, in particular the quarterly review the effectiveness of the system of internal control and this and year-end financial statements, with the provisions of the is performed with impartiality, proficiency and due professional Companies Act, 1965, Bursa Securities Listing Requirements, care. applicable approved accounting standards in Malaysia and other relevant legal and regulatory requirements. It is the responsibility of the internal audit department to provide • Reviewed the Company’s Statement on Internal Control prior to the Audit Committee with independent and objective report endorsement by the Board. on the state of internal control of the various operating units • Reviewed the effectiveness of the internal audit process, audit within the Group and the extent of compliance with the Group’s function resource requirements, and assessed the performance established policies and procedures as well as the relevant of the internal auditors. statutory requirements. • Reviewed the programmes and internal annual audit plan for the financial year under review to ensure adequate scope and comprehensive coverage of the activities of the Company and the Group. • Reviewed with the internal auditors, important issues highlighted including the management’s responses and the follow-up action plans implemented.
• SEG International Bhd • Statement on Internal Control
Introduction The Board of Directors (“Board”) acknowledges the importance of maintaining a sound system of internal controls to safeguard shareholders’ investments and the Group’s assets. The Board is pleased to outline the state of internal control of the Group for the financial year ended 31 December 2008 pursuant to Principle DII in Part 1 of the Code on Corporate Governance and Paragraph 15.27 (b) of the Listing Requirements.
95
The Board’s Commitment b. The Risk Management Committee (RMC) had conducted meetings in May and November 2008 to deliberate issues The Board affirms its overall responsibility for the Group’s system identified by the Management and recommended courses of internal controls and for reviewing its effectiveness, adequacy of action to mitigate these risks. The outcomes of the RMC and integrity. Due to the limitations that are inherent in any meetings were presented to the Board accordingly. system of internal control, the Board is aware that such system is designed to manage rather than eliminate the risk of failure to c. The Executive Directors and Management monitor the Group’s achieve business objectives, and can provide only reasonable and performance by constantly monitoring and reviewing of budget not absolute assurance against material misstatement or loss. and business strategies against actual performance in the quarterly Management meetings. Management meetings are Key Elements of Risk Management and Internal Control attended by Executive Directors and Management staff and also used to discuss major strategic and operations issues. The Board has reviewed the effectiveness of the Group’s system of internal controls and risk management processes and the d. The Group has an appropriate organizational structure for Board confirms that there is an ongoing process for identifying, planning, executing and controlling business operations which evaluating and managing the significant risks faced by the Group enables adequate monitoring of the activities and ensures and this process is regularly reviewed by the Board. Key elements effective flow of information across the Group. of which are as follows: e. Key processes of the Group are clearly defined in the Standard a. The Internal Audit Department has prepared a risk-based Operating Procedures that are extended to all operating units in internal audit plan which considers all the critical and high impact the Group and lines of responsibility and delegations of authority areas within the business operations. During the financial year, are clearly defined here which include amongst others approval internal audits on various audit areas per the approved internal of major expenditure. audit plan were carried out by the Internal Audit Department. Any weaknesses identified during the reviews were reported f. Key functions such as finance and treasury, legal, human to the Audit Committee and improvement measures were resource and regulatory matters are controlled centrally. recommended to strengthen controls. This provides assurance regarding the adequacy and the integrity of the internal controls system.
• SEG International Bhd • statement on internal control
g. The Group has set up a Safety and Health Committee and Assurance approved the Statement of Policy on Safety, Health and Environment to review the occupational safety and health The Management continues to take measures to strengthen the procedures within the Group Colleges and Centres. controls environment and during the current financial year, there were no major weaknesses of internal control which result in h. The Board has appointed the Audit Committee (AC) to examine material losses, contingencies or uncertainties that would require the effectiveness of the Group’s systems of internal control on disclosure in the Company’s Annual Report. behalf of the Board. The Audit Committee meets at least four times a year and, within its remit, assesses the effectiveness of Important issues observed in the Internal Audit Reports, 96 the Group’s internal control system by reviewing Internal Audit Management’s action plan to rectify the issues highlighted and reports from the Internal Auditors. persons responsible to implement the action plan by the target date were tabled at the quarterly Audit Committee meetings The Audit Committee also reviews the Internal Audit plan for for deliberation and subsequently reported to the Board of ensuring key business areas and major risks are covered by the Directors. Internal Auditors in their audits. This statement was approved by the Board of Directors on i. Quarterly Board meetings to review business operations and 22 April 2009. approve significant transactions (if any). Performance report provides the Board with comprehensive information on financial performance and other key indicators.
• SEG International Bhd • financial statements
98 Directors’ Report 103 Statement by Directors 103 Statutory Declaration 104 Independent Auditors’ Report 106 Balance Sheets 107 Income Statements 108 Statements of Changes in Equity 110 Cash Flow Statements 112 Notes to the Financial Statements Directors’ Report for the year ended 31 December 2008
The directors hereby submit their report and the audited financial statements of the Group and of the Company for the year ended 31 December 2008.
PRINCIPAL ACTIVITIES
The Company is principally engaged in the businesses of investment holding and provision of management consultancy services, property management, rental of premises, business advisory services, educational and training services whilst the principal activities of the subsidiaries are set out in Note 6 to the financial statements. There have been no significant changes in the nature of these activities during the financial year.
98 RESULTS The Group The Company RM’000 RM’000 Profit after taxation for the financial year 7,320 4,761 Minority interest (54) -
Profit attributable to equity holders of the Company 7,266 4,761
DIVIDENDS
Since the end of the previous financial year, the Company paid a final dividend of 2 sen gross per ordinary share less income tax at 26%, amounting to RM1,227,000 in respect of the year ended 31 December 2007.
The directors now recommend the payment of a final dividend of 3 sen gross per share less income tax at 25% amounting to RM1,865,000 in respect of the year ended 31 December 2008, subject to the approval of members at the forthcoming Annual General Meeting of the Company.
RESERVES AND PROVISIONS
All material transfers to or from reserves and provisions during the financial year are disclosed in the financial statements.
ISSUES OF SHARES AND DEBENTURES
During the financial year:-
(a) there were no changes in the authorised and issued and paid-up share capital of the Company; and
(b) there were no issues of debentures by the Company.
• SEG International Bhd • Directors’ Report for the year ended 31 December 2008
TREASURY SHARES
During the financial year, the Company purchased its issued ordinary shares from the open market under the share buy-back programme. Details are as follows:-
Total Price Per Share No of Consideration Date Lowest Highest Average Shares RM’000
Balance at 1 January 2008 4,238,300 3,561 Additions during the financial year 0.595 0.715 0.665 1,957,300 1,301
At 31 December 2008 6,195,600 4,862 99 The shares purchased under the share buy-back programme were financed by internally generated funds. The shares purchased were retained as treasury shares in accordance with Section 67A of the Companies Act 1965 in Malaysia and are presented as a deduction from shareholders’ equity.
OPTIONS GRANTED OVER UNISSUED SHARES
During the financial year, no options were granted by the Company to any person to take up any unissued shares in the Company.
BAD AND DOUBTFUL DEBTS
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of allowance for doubtful debts, and satisfied themselves that all known bad debts had been written off and that adequate allowance had been made for doubtful debts.
At the date of this report, the directors are not aware of any circumstances that would further require the writing off of bad debts, or the additional allowance for doubtful debts in the financial statements of the Group and of the Company.
CURRENT ASSETS
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps to ascertain that any current assets other than debts, which were unlikely to be realised in the ordinary course of business, including their value as shown in the accounting records of the Group and of the Company, have been written down to an amount which they might be expected so to realise.
At the date of this report, the directors are not aware of any circumstances which would render the values attributed to the current assets in the financial statements of the Group and of the Company misleading.
• SEG International Bhd • Directors’ Report for the year ended 31 December 2008
VALUATION METHODS
At the date of this report, the directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company misleading or inappropriate.
CONTINGENT AND OTHER LIABILITIES
The contingent liabilities of the Company are disclosed in Note 36 to the financial statements. At the date of this report, there does not exist:-
(i) any charge on the assets of the Group and of the Company that has arisen since the end of the financial year which secures the 100 liabilities of any other person; or (ii) any contingent liability of the Group and of the Company which has arisen since the end of the financial year.
No contingent or other liability of the Group and of the Company has become enforceable or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially affect the ability of the Group and of the Company to meet their obligations when they fall due.
CHANGE OF CIRCUMSTANCES
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or the financial statements of the Group and of the Company which would render any amount stated in the financial statements misleading.
ITEMS OF AN UNUSUAL NATURE
The results of the operations of the Group and of the Company during the financial year were not, in the opinion of the directors, substantially affected by any item, transaction or event of a material and unusual nature.
There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors, to affect substantially the results of the operations of the Group and of the Company for the financial year.
• SEG International Bhd • Directors’ Report for the year ended 31 December 2008
DIRECTORS
The directors who served since the date of the last report are as follows:-
TAN SRI DATO’ SERI MEGAT NAJMUDDIN BIN DATO’ SERI DR. HAJI MEGAT KHAS DATO’ (DR.) PATRICK TEOH SENG FOO DATO’ CLEMENT HII CHII KOK LEE KOK CHENG AMOS SIEW BOON YEONG SIMON HUE FOOK CHUAN TONY FOO SAN KAN DATO’ PAHAMIN A. RAJAB (RETIRED ON 25.6.2008) DATIN FADZILAH BTE SAAD (RETIRED ON 25.6.2008) 101 HJ. ABDULLAH KAMAL BIN SHAFI’I (RETIRED ON 25.6.2008)
DIRECTORS’ INTERESTS
According to the register of directors’ shareholdings, the interests of directors holding office at the end of the financial year in shares in the Company and its related corporations during the financial year are as follows:-
NUMBER OF ORDINARY SHARES OF RM1 EACH AS AT AS AT 1.1.2008 BOUGHT SOLD 31.12.2008
DIRECT INTERESTS DATO’ (DR.) PATRICK TEOH SENG FOO 507,000 - 12,000 495,000 DATO’ CLEMENT HII CHII KOK 945,500 12,000 249,500 708,000 TAN SRI DATO’ SERI MEGAT NAJMUDDIN BIN DATO’ SERI DR. HAJI MEGAT KHAS 297 - - 297
INDIRECT INTERESTS DATO’ (DR.) PATRICK TEOH SENG FOO (1) 22,855,025 - 1,000,000 21,855,025 DATO’ CLEMENT HII CHII KOK (1) 22,855,025 - 1,000,000 21,855,025
(1) Deemed interests through EcoFirst Consolidated Berhad and Sawitani Sdn. Bhd.
By virtue of their interests in shares in the Company, the above directors are deemed interested in the shares of the subsidiaries during the financial year to the extent that the Company has an interest.
Other than as disclosed, none of the other directors holding office at the end of the financial year had any interest in shares in the Company or its related corporations during the financial year.
• SEG International Bhd • Directors’ Report for the year ended 31 December 2008
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no director has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by directors as shown in the financial statements, or the fixed salary of a full-time employee of the Company or a related corporation) by reason of a contract made by the Company or a related corporation with the director or with a firm of which the director is a member, or with a company in which the director has a substantial financial interest.
Neither during nor at the end of the financial year was the Company a party to any arrangements whose object is to enable the directors to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.
102 SIGNIFICANT EVENT DURING THE FINANCIAL YEAR The significant event during the financial year is disclosed in Note 41 to the financial statements.
SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
The significant events subsequent to the balance sheet date are disclosed in Note 42 to the financial statements.
AUDITORS
The auditors, Messrs. Horwath, have expressed their willingness to continue in office.
Signed in accordance with a resolution of the Directors dated 22 April 2009.
Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas
Dato’ Clement Hii Chii Kok
• SEG International Bhd • Statement by Directors pursuant to Section 169 (15) of the Companies Act, 1965
We, Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas and Dato’ Clement Hii Chii Kok being two of the directors of SEG International Bhd., state that, in the opinion of the directors, the financial statements set out on pages 106 to 154 are drawn up in accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia so as to give a true and fair view of the state of affairs of the Group and of the Company at 31 December 2008 and of their results and cash flows for the financial year ended on that date.
Signed in accordance with a resolution of the Directors dated 22 April 2009.
103 Tan Sri Dato’ Seri Megat Najmuddin Dato’ Clement Hii Chii Kok Bin Dato’ Seri Dr. Haji Megat Khas
Statutory Declaration pursuant to Section 169 (16) of the Companies Act, 1965
I, Dato’ (Dr.) Patrick Teoh Seng Foo, I/C No. 560625-08-6373, being the director primarily responsible for the financial management of SEG International Bhd., do solemnly and sincerely declare that the financial statements set out on pages 106 to 154 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 Dato’ (Dr.) Patrick Teoh Seng Foo, I/C No. 560625-08-6373, at Subang Jaya in Selangor Darul Ehsan on this 22 April 2009.
Dato’ (Dr.) Patrick Teoh Seng Foo
Before me
Niu Kian Aik No. B309 Commissioner for Oaths
• SEG International Bhd • Independent Auditors’ Report to the members of SEG International Bhd.
Report on the Financial Statements
We have audited the financial statements of SEG International Bhd., which comprise the balance sheets as at 31 December 2008 of the Group and of the Company, and the income statements, statements of changes in equity and cash flow statements of the Group and of the Company for the financial year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 106 to 154.
Directors’ Responsibility for the Financial Statements
The directors of the Company are responsible for the preparation and fair presentation of these financial statements in accordance with Financial Reporting Standards and the Companies Act 1965 in Malaysia. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material 104 misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards andthe Companies Act 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Company as of 31 December 2008 and of their financial performance and cash flows for the financial year then ended.
Other Matters
The financial statements of the Group and the Company for the preceding financial year were audited by another firm of auditors whose report dated 22 April 2008, expressed an unqualified opinion on those statements.
• SEG International Bhd • Independent Auditors’ Report (continued) to the members of SEG International Bhd.
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act 1965 in Malaysia, we also report the following:-
(a) In our opinion, the accounting and other records and the registers required by the Act to be kept by the Company and its subsidiaries of which we have acted as auditors have been properly kept in accordance with the provisions of the Act.
(b) We have considered the financial statements and the auditors’ reports of the subsidiaries of which we have not acted as auditors, which are indicated in Note 6 to the financial statements.
(c) We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the financial statements of the Group and we have received satisfactory information and explanations required by us for those purposes. 105 (d) The audit reports on the financial statements of the subsidiaries did not contain any qualification or any adverse comment made under Section 174(3) of the Act.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies Act 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Horwath Lee Kok Wai Firm No: AF 1018 Approval No: 2760/06/10 (J) Chartered Accountants Partner
Kuala Lumpur
22 April 2009
• SEG International Bhd • Balance Sheets at 31 December 2008
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 ASSETS NON-CURRENT ASSETS Investments in subsidiaries 6 - - 71,039 70,941 Investments in associates 7 451 706 - - Property, plant and equipment 8 70,897 60,339 8,135 8,494 Prepaid land lease payments 9 4,951 4,957 - - Investment properties 10 156 522 156 522 Other receivables 11 11,768 18,165 - - Intangible assets 12 30,237 30,165 - - Other investments 13 3,837 5,977 1,180 1,920 106 Deferred tax assets 14 3,374 3,007 2,469 2,469 125,671 123,838 82,979 84,346 CURRENT ASSETS Inventories 15 8 188 - - Receivables, deposits and prepayments 11 35,224 40,059 66,966 63,202 Tax recoverable 5,462 4,005 1,371 1,232 Assets held for sale - 132,654 - 132,654 Cash and cash equivalents 16 47,545 9,152 38,454 5,591 88,239 186,058 106,791 202,679 TOTAL ASSETS 213,910 309,896 189,770 287,025 EQUITY AND LIABILITIES EQUITY Share capital 17 89,093 89,093 89,093 89,093 Reserves 18 69,231 64,496 49,217 46,984 158,324 153,589 138,310 136,077 MINORITY INTEREST 623 749 - - TOTAL EQUITY 158,947 154,338 138,310 136,077 LIABILITIES NON-CURRENT LIABILITIES Long-term borrowings 19 7,840 26,156 - 20,000 Deferred tax liabilities 22 1,891 1,874 283 283 9,731 28,030 283 20,283 CURRENT LIABILITIES Payables and accruals 23 22,170 73,040 31,177 83,003 Short-term borrowings 24 22,709 42,076 20,000 40,000 Provision for taxation 184 129 - - Bank overdrafts 25 169 12,283 - 7,662 45,232 127,528 51,177 130,665 TOTAL LIABILITIES 54,963 155,558 51,460 150,948 TOTAL EQUITY AND LIABILITIES 213,910 309,896 189,770 287,025 NET ASSETS PER SHARE (RM) 26 1.91 1.81
The annexed notes form an integral part of these financial statements.
• SEG International Bhd • Income Statements for the year ended 31 December 2008
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 REVENUE 27 127,407 86,263 28,648 21,938
COST OF SERVICES (35,387) (24,740) (5,520) (2,216)
GROSS PROFIT 92,020 61,523 23,128 19,722
OTHER INCOME 9,586 5,251 5,815 976
101,606 66,774 28,943 20,698 107
DISTRIBUTION EXPENSES (11,916) (8,831) (1,026) (752)
ADMINISTRATIVE EXPENSES (37,156) (22,156) (4,778) (3,210)
OTHER EXPENSES (40,625) (26,482) (16,632) (9,090)
FINANCE COSTS (2,025) (6,826) (1,325) (6,204)
PROFIT BEFORE TAXATION 28 9,884 2,479 5,182 1,442
INCOME TAX EXPENSE 29 (2,564) 2,864 (421) 1,981
PROFIT AFTER TAXATION 7,320 5,343 4,761 3,423
ATTRIBUTABLE TO: Equity holders of the Company 7,266 5,156 4,761 3,423 Minority interest 54 187 - - 7,320 5,343 4,761 3,423
EARNINGS PER SHARE - Basic 30 8.70 sen 6.03 sen - Diluted 30 N/A N/A
The annexed notes form an integral part of these financial statements.
• SEG International Bhd • Statements of Changes in Equity for the year ended 31 December 2008
Attributable to Equity Holders of the Company Exchange Share Share Revaluation Retained Translation Treasury Minority Total Capital Premium Reserve Profits Reserve Shares Total Interest Equity The Group Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Balance at 1.1.2007 89,093 35,876 2,052 26,309 (49) (2,507) 150,774 562 151,336 Purchase of own shares - - - - - (1,054) (1,054) - (1,054) Exchange difference on retranslation of net assets of overseas subsidiary* - - - - (42) - (42) - (42) Profit after taxation for the financial year - - - 5,156 - - 5,156 187 5,343 108 Transfer to retained profits on realisation of revaluation reserve* - - (25) 25 - - - - - Dividend 31 - - - (1,245) - - (1,245) - (1,245)
Balance at 31.12.2007/1.1.2008 89,093 35,876 2,027 30,245 (91) (3,561) 153,589 749 154,338 Purchase of own shares - - - - - (1,301) (1,301) - (1,301) Acquisition of equity interest from minority shareholders ------(180) (180) Exchange difference on retranslation of net assets of overseas subsidiary* - - - - (3) - (3) - (3) Profit after taxation for the financial year - - - 7,266 - - 7,266 54 7,320 Transfer to retained profits on realisation of revaluation reserve * - - (25) 25 - - - - - Dividend 31 - - - (1,227) - - (1,227) - (1,227) Balance at 31.12.2008 89,093 35,876 2,002 36,309 (94) (4,862) 158,324 623 158,947
* - expense recognised directly in equity
The annexed notes form an integral part of these financial statements.
• SEG International Bhd • Statements of Changes in Equity (continued) for the year ended 31 December 2008
Attributable To Equity Holders Of The Company Share Share Revaluation Retained Treasury Capital Premium Reserve Profits Shares Total The Company Note RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Balance at 1.1.2007 89,093 35,876 2,052 10,439 (2,507) 134,953 Purchase of own shares - - - - (1,054) (1,054) Profit after taxation for the financial year - - - 3,423 - 3,423 Transfer to retained profits on the realisation of revaluation reserve* - - (25) 25 - - Dividend 31 - - - (1,245) - (1,245) 109 Balance at 31.12.2007/ 1.1.2008 89,093 35,876 2,027 12,642 (3,561) 136,077 Purchase of own shares - - - - (1,301) (1,301) Profit after taxation for the financial year - - - 4,761 - 4,761 Transfer to retained profits on the realisation of revaluation reserve* - - (25) 25 - - Dividend 31 - - - (1,227) - (1,227) Balance at 31.12.2008 89,093 35,876 2,002 16,201 (4,862) 138,310
* - expense recognised directly in equity
The annexed notes form an integral part of these financial statements.
• SEG International Bhd • Cash Flow Statements for the year ended 31 December 2008
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 9,884 2,479 5,182 1,442 Adjustments for:- Allowance for diminution: - unquoted bonds 500 400 500 400 - quoted shares 1,400 27 - - - investments in associates 255 1,000 - - Investment in unquoted bonds written off - 2,280 - 2,280 110 Investments in associates written off - 39 - - Amortisation of prepaid land lease payments 6 6 - - Amortisation of development costs 122 120 - - Allowance for doubtful debts 2,828 826 1,942 - Bad debts written off 190 2,366 100 - Depreciation of property, plant and equipment 5,262 3,970 307 330 Depreciation of investment properties 8 10 8 10 Property, plant and equipment written off 84 722 - - Inventories written off 180 - - - Interest expense 2,025 6,826 1,325 6,204 (Gain)/Loss on disposal of assets held for sale (4,089) 574 (4,089) 574 Gain on disposal of property, plant and equipment (1) (8) (11) - Gain on disposal on investment properties (61) - (61) - Dividend income (83) - (2,080) (5,132) Interest income (836) (389) (1,465) (976)
Operating profit before working capital changes 17,674 21,248 1,658 5,132 Increase in inventories - (69) - - Decrease/(Increase) in trade and other receivables 7,604 (3,096) 252 45 Increase in trade and other payables 7,570 56,141 662 55,632
CASH FLOWS FROM OPERATIONS 32,848 74,224 2,572 60,809 Interest paid (2,025) (6,826) (1,325) (6,204) Income tax paid (4,316) (2,360) (560) (1,387)
NET CASH FROM OPERATING ACTIVITIES 26,507 65,038 687 53,218
BALANCE CARRIED FORWARD 26,507 65,038 687 53,218
• SEG International Bhd • Cash Flow Statements (continued) for the year ended 31 December 2008
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 BALANCE BROUGHT FORWARD 26,507 65,038 687 53,218
CASH FLOWS FROM/(FOR) INVESTING ACTIVITIES Additional investment in subsidiaries - - (98) - Proceeds from disposal of property, plant and equipment 244 69 104 - Purchase of property, plant and equipment 32 (11,093) (36,434) (41) (28,230) Net cash outflow on the acquisition of a subsidiary 33 (165) - - - Acquisition of equity interest from minority shareholders (180) - - - Purchase of investment in quoted shares - (940) - - Proceeds from disposal of unquoted bonds 240 1,400 240 1,400 111 Proceeds from disposal of investment properties 419 - 419 - Proceeds from disposal of assets held for sale 77,520 12,291 77,520 12,291 Net (advances to)/repayment from subsidiaries - - (477) 424 Net repayment from affiliated companies 1,154 97 1,154 97 Dividend received 83 - 2,080 5,132 Interest received 836 389 1,465 976
NET CASH FROM/(FOR) INVESTING ACTIVITIES 69,058 (23,128) 82,366 (7,910)
CASH FLOWS FOR FINANCING ACTIVITIES Treasury shares acquired (1,301) (1,054) (1,301) (1,054) Repayment of hire purchase and finance lease payables (2,147) (546) - - Drawdown of term loan - 13,525 - 13,525 Repayment of term loan (353) (97,870) - (96,991) (Decrease)/Increase in revolving credits (40,000) 40,000 (40,000) 40,000 Dividend paid (1,227) (1,245) (1,227) (1,245)
NET CASH FOR FINANCING ACTIVITIES (45,028) (47,190) (42,528) (45,765) Net Increase/(Decrease) in cash and cash equivalents 50,537 (5,280) 40,525 (457) Effects of foreign exchange translation on cash and cash equivalents (30) - - - Cash and cash equivalents, net of bank overdrafts at beginning of the financial year (3,131) 2,149 (2,071) (1,614) Cash and cash equivalents, net of bank overdrafts at end of the financial year 47,376 (3,131) 38,454 (2,071)
Cash and cash equivalents, net of bank overdrafts comprise:- Cash and cash equivalents 16 47,545 9,152 38,454 5,591 Bank overdrafts 25 (169) (12,283) - (7,662) 47,376 (3,131) 38,454 (2,071)
The annexed notes form an integral part of these financial statements.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
1. GENERAL INFORMATION
The Company is a public company limited by shares and is incorporated under the Companies Act 1965 in Malaysia. The domicile of the Company is Malaysia. The registered office and principal place of business are as follows:-
Registered office : 6th Floor, SEGi University College, No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan.
Principal place of business : No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, 112 Selangor Darul Ehsan. The financial statements were authorised for issue by the Board of Directors in accordance with a resolution of the directors dated 22 April 2009.
2. PRINCIPAL ACTIVITIES
The Company is principally engaged in the businesses of investment holding and provision of management consultancy services, property management, rental of premises, business advisory services, educational and training services whilst the principal activities of the subsidiaries are set out in Note 6 to the financial statements. There have been no significant changes in the nature of these activities during the financial year.
3. FINANCIAL RISK MANAGEMENT POLICIES
The Group’s financial risk management policy seeks to ensure that adequate financial resources are available for the development of the Group’s business whilst managing its market, credit, liquidity and cash flow risks. The Group operates within clearly defined guidelines that are established by the Audit Committee and approved by the Board and the policies in respect of the major areas of treasury activity are as follows:-
(a) Market Risk
(i) Foreign Currency Risk
The Group does not have material foreign currency transactions, assets or liabilities and hence is not exposed to significant currency risk.
(ii) Interest Rate Risk
The Group obtains financing through banking, hire purchase and finance lease facilities. Its policy is to obtain the most favourable interest rate available.
Surplus funds are placed with licensed financial institutions at the most favourable interest rates.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
3. FINANCIAL RISK MANAGEMENT POLICIES (Continued)
(a) Market Risk (Continued)
(iii) Price Risk
The Group has investments in quoted shares, which are subject to market risk as the market values of these investments are affected by changes in market prices.
The Group manages its exposure to price risks by maintaining a portfolio of equities with different risk profiles.
(b) Credit Risk 113 The Group’s exposure to credit risk, or the risk of counterparties defaulting, arises mainly from receivables. The maximum exposure to credit risk is represented by the total carrying amount of this financial asset in the balance sheet reduced by the effects of any netting arrangements with counterparties.
The Group does not have any major concentration of credit risk related to any individual customer or counterparty.
The Group manages its exposure to credit risk by the application of credit approvals, credit limits and monitoring procedures on an ongoing basis.
(c) Liquidity and Cash Flow Risks
The Group’s exposure to liquidity and cash flow risks arises mainly from general funding and business activities.
It practises prudent liquidity risk management by maintaining sufficient cash balances to meet its working capital requirements.
4. BASIS OF PREPARATION
The financial statements of the Group and of the Company are prepared under the historical cost convention and modified to include other bases of valuation as disclosed in other sections under significant accounting policies, and in compliance with Financial Reporting Standards (“FRSs”) and the Companies Act 1965 in Malaysia.
(a) During the current financial year, the Group has adopted the following:
(i) FRSs issued and effective for financial periods beginning on or after 1 July 2007:-
FRS 107 Cash Flow Statements FRS 111 Construction Contracts FRS 112 Income Taxes FRS 118 Revenue FRS 120 Accounting for Government Grants and Disclosure of Government Assistance FRS 134 Interim Financial Reporting FRS 137 Provisions, Contingent Liabilities and Contingent Assets
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
4. BASIS OF PREPARATION (Continued)
FRS 111 and FRS 120 are not relevant to the Group’s operations. The adoption of the other standards did not have any material impact on the form and content of disclosures presented in the financial statements.
(ii) Amendment to FRS 121 - The Effects of Changes in Foreign Exchange Rates Net Investment in a Foreign Operation issued and effective for financial periods beginning on or after 1 July 2007. The adoption of this amendment did not have any material impact on the financial statements of the Group.
(iii) IC Interpretations issued and are effective for financial periods beginning on or after 1 July 2007:-
IC Interpretation 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities 114 IC Interpretation 2 Members’ Shares in Co-operative Entities and Similar Instruments IC Interpretation 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds IC Interpretation 6 Liabilities arising from Participating in a Specific Market - Waste Electrical and Electronic Equipment
IC Interpretation 7 Applying the Restatement Approach under FRS 1292004 Financial Reporting in Hyperinflationary Economies IC Interpretation 8 Scope of FRS 2
The above IC Interpretations are not relevant to the Group’s operations.
(b) The Group has not adopted the following FRSs and IC Interpretations that have been issued as at the date of authorisation of these financial statements but are not yet effective for the Group and the Company:
(i) FRS issued and effective for financial periods beginning on or after 1 July 2009:
FRS 8 Operating Segments
FRS 8 replaces FRS 1142004 Segment Reporting and requires a “management approach”, under which segment information is presented on the same basis as that used for internal reporting purposes. The adoption of this standard only impacts the form and content of disclosures presented in the financial statements of the Group. This FRS is expected to have no material impact on the financial statements of the Group upon its initial application.
(ii) FRSs issued and effective for financial periods beginning on or after 1 January 2010:
FRS 4 Insurance Contracts FRS 7 Financial Instruments: Disclosures FRS 139 Financial Instruments: Recognition and Measurement
FRS 4 is not relevant to the Group’s operations. The possible impacts of applying FRS 7 and FRS 139 on the financial statements upon their initial applications are not disclosed by virtue of the exemptions given in these standards.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
4. BASIS OF PREPARATION (Continued)
(iii) IC Interpretations issued and effective for financial periods beginning on or after 1 January 2010:
IC Interpretation 9 Reassessment of Embedded Derivatives IC Interpretation 10 Interim Financial Reporting and Impairment
IC Interpretation 9 is not relevant to the Group’s operations. IC Interpretation 10 prohibits the impairment losses recognised in an interim period on goodwill and investments in equity instruments and in financial assets carried at cost to be reversed at a subsequent balance sheet date. This interpretation is expected to have no material impact on the financial statements of the Group upon its initial application.
115 5. SIGNIFICANT ACCOUNTING POLICIES
(a) Critical Accounting Estimates And Judgements
Estimates and judgements are continually evaluated by the directors and management and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and judgements that affect the application of the Group’s accounting policies and disclosures, and have a significant risk of causing a material adjustment to the carrying amounts of assets, liabilities, income and expenses are discussed below:-
(i) Depreciation of Property, Plant and Equipment
The estimates for the residual values, useful lives and related depreciation charges for the property, plant and equipment are based on commercial factors which could change significantly as a result of technical innovations and competitors’ actions in response to the market conditions.
The Group anticipates that the residual values of its property, plant and equipment will be insignificant. As a result, residual values are not being taken into consideration for the computation of the depreciable amount.
Changes in the expected level of usage and technological development could impact the economic useful lives and the residual values of these assets, therefore future depreciation charges could be revised.
(ii) Income Taxes
There are certain transactions and computations for which the ultimate tax determination may be different from the initial estimate. The Group recognises tax liabilities based on its understanding of the prevailing tax laws and estimates of whether such taxes will be due in the ordinary course of business. Where the final outcome of these matters is different from the amounts that were initially recognised, such difference will impact the income tax and deferred tax provisions in the period in which such determination is made.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(a) Critical Accounting Estimates And Judgements (Continued)
(iii) Impairment of Assets
When the recoverable amount of an asset is determined based on the estimate of the value-in-use of the cash-generating unit to which the asset is allocated, the Group is required to make an estimate of the expected future cash flows from the cash-generating unit and also to apply a suitable discount rate in order to determine the present value of those cash flows.
(iv) Amortisation of Development Costs/Intangible Assets 116 Changes in the expected level of usage and technological development could impact the economic useful lives therefore future amortisation charges could be revised.
(v) Allowance for Doubtful Debts
The Group makes allowance for doubtful debts based on an assessment of the recoverability of receivables. Allowances are applied to receivables where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyses historical bad debt, customer concentrations, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the allowance for doubtful debts of receivables. Where the expectation is different from the original estimate, such difference will impact the carrying value of receivables.
(vi) Allowance for Inventories
Reviews are made periodically by management on damaged, obsolete and slow-moving inventories. These reviews require judgement and estimates. Possible changes in these estimates could result in revisions to the valuation of inventories.
(vii) Revaluation of Properties
The Group’s properties which are reported at valuation are based on valuations performed by independent professional valuers.
The independent professional valuers have exercised judgement in determining discount rates, estimates of future cash flows, capitalisation rate, terminal year value, market freehold rental and other factors used in the valuation process. Also, judgement has been applied in estimating prices for less readily observable external parameters. Other factors such as model assumptions, market dislocations and unexpected correlations can also materially affect these estimates and the resulting valuation estimates.
(viii) Fair Value Estimates for Certain Financial Assets and Liabilities
The Group carries certain financial assets and liabilities at fair value, which requires extensive use of accounting estimates and judgement. While significant components of fair value measurement were determined using verifiable objective evidence, the amount of changes in fair value would differ if the Group uses different valuation methodologies. Any changes in fair value of these assets and liabilities would affect profit and equity.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Financial Instruments
Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instruments.
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to financial instruments classified as a liability are reported as an expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity.
Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously. 117 Financial instruments recognised in the balance sheet are disclosed in the individual policy statement associated with each item.
(c) Functional and Foreign Currency
(i) Functional and Presentation Currency
The functional currency of the Group and each of the Group’s entity is measured using the currency of the primary economic environment in which the Company or that entity operates.
The consolidated financial statements are presented in Ringgit Malaysia (“RM”) which is the Company’s functional and presentation currency.
(ii) Transactions and Balances
Transactions in foreign currency are converted into the respective functional currencies on initial recognition, using the exchange rates approximating those ruling at the transaction dates. Monetary assets and liabilities at the balance sheet date are translated at the rates ruling as of that date. Non-monetary assets and liabilities are translated using exchange rates that existed when the values were determined. All exchange differences are taken to the income statement.
(d) Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries made up to 31 December 2008.
A subsidiary is defined as an enterprise in which the Company has the power, directly or indirectly, to exercise control over the financial and operating policies so as to obtain benefits from its activities.
All subsidiaries are consolidated using the purchase method of accounting. Under the purchase method of accounting, the results of subsidiaries acquired or disposed of are included from the date of acquisition or up to the date of disposal. At the date of acquisition, the fair values of the subsidiaries’ net assets are determined and these values are reflected in the consolidated financial statements. The cost of acquisition is measured at the aggregate of the fair value, at the date of exchange, of assets given, liabilities incurred and assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d) Basis of Consolidation (Continued)
Intragroup transactions, balances and unrealised gains on transactions are eliminated; unrealised losses are also eliminated unless cost cannot be recovered. Where necessary, adjustments are made to the financial statements of subsidiaries to ensure consistency of accounting policies with those of the Group.
Minority interests in the consolidated balance sheets consist of the minorities’ share of fair values of the identifiable assets and liabilities of the acquiree as at the date of acquisition and the minorities’ share of movements in the acquiree’s equity.
Minority interests are presented in the consolidated balance sheet of the Group within equity, separately from the Company’s 118 equity holders, and are separately disclosed in the consolidated income statement of the Group. (e) Intangible Assets
(i) Goodwill on Consolidation
Goodwill on consolidation represents the excess of the fair value of the purchase consideration over the Group’s share of the fair values of the identifiable net assets of the subsidiaries at the date of acquisition.
Goodwill is measured at cost less accumulated impairment losses, if any. The carrying value of goodwill is reviewed for impairment annually. The impairment value of goodwill is recognised immediately in the consolidated income statement. An impairment loss recognised for goodwill is not reversed in a subsequent period.
If, after reassessment, the Group’s interest in the fair values of the identifiable net assets of the subsidiaries exceeds the cost of the business combinations, the excess is recognised immediately in the consolidated income statement.
(ii) Research and Development Expenditure
Research expenditure is recognised as an expense when it is incurred.
Development expenditure is recognised as an expense except that expenditure incurred on development projects are capitalised as long-term assets to the extent that such expenditure is expected to generate future economic benefits. Development expenditure is capitalised if, and only if an entity can demonstrate all of the following:-
(a) its ability to measure reliably the expenditure attributable to the asset under development;
(b) the product or process is technically and commercially feasible;
(c) its future economic benefits are probable;
(d) its ability to use or sell the developed asset; and
(e) the availability of adequate technical, financial and other resources to complete the asset under development.
Capitalised development expenditure is transferred at cost to other intangible assets upon completion of the developed project.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(e) Intangible Assets (Continued)
(iii) Other Intangible Assets
An intangible asset shall be recognised if, and only if it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and that the cost of the asset can be measured reliably. An entity shall assess the probability of the expected future economic benefits using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset. An intangible asset shall be measured initially at cost.
The useful lives of intangible assets are assessed to be either finite or indefinite. 119 Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible assets may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortisation period or method, as appropriate, and treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the income statement in the expense category consistent with the function of the intangible asset.
Intangible assets that have been capitalised are amortised on a straight line basis over the period of their expected benefit, but not exceeding 5 years from the commencement of the commercial production of the products.
Intangible assets with indefinite useful lives are tested for impairment annually either individually or at the cash generating unit level. Such intangibles are not amortised. The useful life of an intangible asset with an indefinite life is reviewed annually to determine whether indefinite life assessment continues to be supportable. If not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.
(f) Investments in Subsidiaries
Investments in subsidiaries are stated at cost in the balance sheet of the Company, and are reviewed for impairment at the end of the financial year if events or changes in circumstances indicate that their carrying values may not be recoverable.
On the disposal of the investments in subsidiaries, the difference between the net disposal proceeds and the carrying amount of the investments is taken to the income statement.
(g) Investments in Associates
Investments in associates are stated at cost in the balance sheet of the Company, and are reviewed for impairment at the end of the financial year if events or changes in circumstances indicate that their carrying values may not be recoverable.
The investments in associates in the consolidated financial statements are accounted for under the equity method, based on the financial statements of the associate made up to 31 December 2008. The Group’s share of the post acquisition profit of the associate is included in the consolidated income statement and the Group’s interest in associate is stated at cost plus the Group’s share of the post-acquisition retained profits and reserves.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(g) Investments in Associates (Continued)
Unrealised gains on transactions between the Group and the associate are eliminated to the extent of the Group’s interest in the associate. Unrealised losses are eliminated unless cost cannot be recovered.
On the disposal of the investment in an associate, the difference between the net disposal proceeds and the carrying amount of the investment is taken to the income statement.
(h) Investment Properties
120 Investment properties are property held either to earn rental income or for capital appreciation or for both. Investment properties are stated at cost less accumulated depreciation and impairment losses, if any, consistent with the accounting policy for property, plant and equipment as stated in Note 5(j) to the financial statements.
Investment properties are derecognised when they have either been disposed of or when the investment property is permanently withdrawn from use and no future benefit is expected from its disposal.
On the derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount is charged to the income statement.
(i) Other Investments
Other investments are held on a long-term basis and are stated at cost less allowance for diminution in value of the investment. Allowance for diminution in value is only made if the directors are of the opinion that the diminution is other than temporary.
On the disposal of these investments, the difference between the net disposal proceeds and the carrying amount of the investments is taken to the income statement.
(j) Property, Plant and Equipment
Property, plant and equipment, other than freehold land are stated at cost less accumulated depreciation and impairment losses, if any.
Freehold land is stated at revalued amount less impairment losses, if any, and is not depreciated.
Depreciation is calculated under the straight-line method to write off the cost of the assets over their estimated useful lives. Depreciation of an asset does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated. The principal annual rates used for this purpose are:-
Buildings 2% Computer hardware and software 15-25% Fixtures, fittings and office equipment 10-33% Library books and manuals 10-33% Motor vehicles 20% Plant and equipment 10-25%
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(j) Property, Plant and Equipment (Continued)
The depreciation method, useful life and residual values are reviewed, and adjusted if appropriate, at each balance sheet date to ensure that the amount, method and period of depreciation are consistent with previous estimates and the expected pattern of consumption of the future economic benefits embodied in the items of the property, plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising from derecognition of the asset is included in the income statement in the year the asset is derecognised.
(k) Impairment of Assets 121 The carrying amounts of assets, other than those to which FRS 136 - Impairment of Assets does not apply, are reviewed at each balance sheet date for impairment when there is an indication that the assets might be impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts. The recoverable amount of the assets is the higher of the assets’ net selling price and their value-in-use, which is measured by reference to discounted future cash flow.
An impairment loss is charged to the income statement immediately unless the asset is carried at its revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease to the extent of a previously recognised revaluation surplus for the same asset.
In respect of assets other than goodwill, and when there is a change in the estimates used to determine the recoverable amount, a subsequent increase in the recoverable amount of an asset is treated as a reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the asset that would have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in the income statement immediately, unless the asset is carried at its revalued amount. A reversal of an impairment loss on a revalued asset is credited directly to the revaluation surplus. However, to the extent that an impairment loss on the same revalued asset was previously recognised as an expense in the income statement, a reversal of that impairment loss is recognised as income in the income statement.
(l) Assets under Finance Lease and Hire Purchase
Leases of plant and equipment where substantially all the benefits and risks of ownership are transferred to the Group are classified as finance leases.
Plant and equipment acquired under finance lease and hire purchase are capitalised in the financial statements.
Each lease or hire purchase payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding outstanding obligations due under the finance lease and hire purchase after deducting finance charges are included as liabilities in the financial statements.
Finance charges are allocated to the income statement over the period of the respective lease and hire purchase agreements.
Plant and equipment acquired under finance leases and hire purchase are depreciated over the useful lives of the assets. If there is no reasonable certainty that the ownership will be transferred to the Group, the assets are depreciated over the shorter of the lease terms and their useful lives.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(m) Operating Leases
Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments are made under operating leases (net of any incentives received from the lessor) are charged to the income statement on the straight-line basis over the lease period. When an operating lease is terminated before the lease period has expired, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place.
(n) Prepaid Land Lease Payments
122 Leases of land under which the lessor has not transferred all the risks and benefits of ownership are classified as operating leases. Lease prepayment for land use rights is stated at cost less accumulated amortisation and impairment losses, if any. Amortisation is charged to the income statement on a straight-line basis over the term of the leases.
(o) Non-Current Assets Held for Sale
Non-current assets that are expected to be recovered primarily through sale rather than through continuing use are classified as held for sale. Immediately before classification as held for sale, the assets or components of a disposal group are remeasured in accordance with the Company’s accounting policies. Thereafter generally the assets or disposal group are measured at the lower of their carrying amount and fair value less cost to sell.
Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in income statement. Gains are not recognised in excess of any cumulative impairment loss.
(p) Revaluation Reserve
Surpluses arising from the revaluation of properties are credited to the revaluation reserve account. Deficits arising from the revaluation, to the extent that they are not supported by any previous revaluation surpluses, are charged to the income statement.
In the year of disposal of the revalued asset, the attributable remaining revaluation surplus is transferred from the revaluation reserve account to retained profits.
(q) Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined on the weighted average basis, and includes all incidentals incurred in bringing the inventories to their present location and condition.
In arriving at net realisable value, due allowance is made for all damaged, obsolete and slow-moving items.
(r) Receivables
Receivables are carried at anticipated realisable value. Bad debts are written off in the period in which they are identified. An estimate is made for doubtful debts based on a review of all outstanding amounts at the balance sheet date.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(s) Payables
Payables are stated at cost which is the fair value of the consideration to be paid in the future for goods and services received.
(t) Income Taxes
Income taxes for the year comprises current and deferred tax.
Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have been enacted or substantively enacted at the balance sheet date. 123 Deferred tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax liabilities are recognised for all taxable temporary differences other than those that arise from goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit.
Deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the balance sheet date.
Deferred tax is recognised in the income statement, except when it arises from a transaction which is recognised directly in equity, in which case the deferred tax is also charged or credited directly in equity, or when it arises from a business combination that is an acquisition, in which case the deferred tax is included in the resulting goodwill or negative goodwill. The carrying amounts of deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assets to be utilised.
(u) Interest-bearing Borrowings
Interest-bearing borrowings are recorded at the amount of proceeds received, net of transaction costs.
All borrowing costs are charged to the income statement as expenses in the period in which they are incurred.
(v) Equity Instruments
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from proceeds.
Dividends on ordinary shares are recognised as liabilities when approved for appropriation.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(w) Purchase of Own Shares
When the share capital recognised as equity is bought by the Company under the share buy-back programme, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity. Shares bought that are not subsequently cancelled are classified as treasury shares and are presented as a deduction from total equity.
Where such shares are subsequently sold or reissued, any consideration received, net of any direct costs, is included in shareholders’ equity.
(x) Cash and Cash Equivalents 124 Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, deposits pledged with financial institutions and short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
(y) Employee Benefits
(i) Short-term Benefits
Wages, salaries, paid annual leave, bonuses and non-monetary benefits are accrued in the period in which the associated services are rendered by employees of the Group and of the Company.
(ii) Defined Contribution Plans
The Group and the Company’s contributions to defined contribution plans are charged to the income statement in the period to which they relate. Once the contributions have been paid, the Group and the Company have no further liability in respect of the defined contribution plans.
(z) Related Parties
A party is related to an entity if:-
(i) directly, or indirectly through one or more intermediaries, the party:-
• controls, is controlled by, or is under common control with, the entity (this includes parents, subsidiaries and fellow subsidiaries); • has an interest in the entity that gives it significant influence over the entity; or • has joint control over the entity;
(ii) the party is an associate of the entity;
(iii) the party is a joint venture in which the entity is a venturer;
(iv) the party is a member of the key management personnel of the entity or its parent;
(v) the party is a close member of the family of any individual referred to in (i) or (iv);
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
5. SIGNIFICANT ACCOUNTING POLICIES (Continued)
(z) Related Parties (Continued)
(vi) the party is an affiliated company. An affiliated company refers to a company in which certain directors/shareholders have substantial financial interests;
(vii) the party is an entity that is controlled, jointly controlled or significantly influenced by, or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
(viii) the party is a post-employment benefit plan for the benefit of employees of the entity, or of any entity that is a related party of the entity.
Close members of the family of an individual are those family members who may be expected to influence, or be influenced by, 125 that individual in their dealings with the entity.
(aa) Contingent Liabilities and Contingent Assets
A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence of one or more uncertain future events not wholly within the control of the Group. It can also be a present obligation arising from past events that is not recognised because it is not probable that an outflow of economic resources will be required or the amount of obligation cannot be measured reliably.
A contingent liability is not recognised but is disclosed in the notes to the financial statements. When a change in the probability of an outflow occurs so that the outflow is probable, it will then be recognised as a provision.
A contingent asset is a probable asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain events not wholly within the control of the Company.
(ab) Revenue Recognition
(i) Sale of Goods
Sales are recognised upon delivery of goods and customers’ acceptance or performance of services and where applicable, net of returns and trade discounts.
(ii) Services
Revenue is recognised upon the rendering of services and when the outcome of the transaction can be estimated reliably. In the event the outcome of the transaction could not be estimated reliably, revenue is recognised to the extent of the expenses incurred that are recoverable
(iii) Rental and Interest Income
Rental income and interest income is recognised on an accrual basis.
(iv) Dividend Income
Dividend income from the investment in subsidiaries is recognised upon declaration by the subsidiaries.
Dividend income from the other investment is recognised when the right to receive payment is established.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
6. INVESTMENTS IN SUBSIDIARIES The Company 2008 2007 RM’000 RM’000 Unquoted shares, at cost:- At 1 January 71,366 71,366 Additional investment in a subsidiary 98 - 71,464 71,366 Less: Accumulated impairment loss of subsidiaries (425) (425) At 31 December 71,039 70,941
126 The details of the subsidiaries are as follows:- Effective Country of Equity Interest Name of Company Incorporation 2008 2007 Principal Activities % %
SEGi Holdings Sdn. Bhd. Malaysia 100 100 Investment holding and management consultancy.
SEGi University College (M) Sdn. Bhd. Malaysia 100 100 Provision of professional, commercial (formerly known as and academic education. SEGi College (M) Sdn. Bhd.)
SEGi College (KL) Sdn. Bhd. Malaysia 100 100 Provision of professional, commercial and academic education.
SEGi College of Technology Malaysia 100 100 Provision of computer training, (KL) Sdn. Bhd. commercial and academic education.
SEGi College (Subang Jaya) Malaysia 98.63 98.63 Operation of an institute providing Sdn. Bhd. educational programmes.
SEGi College (PG) Sdn. Bhd. Malaysia 100 100 Provision of professional, commercial and academic education.
SEGi College (Sarawak) Sdn. Bhd. ~ Malaysia 100 100 Operation of an educational institution for further studies.
SEGi College (PJ) Sdn. Bhd. Malaysia 100 100 Provision of professional, commercial and academic education.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
6. INVESTMENTS IN SUBSIDIARIES (Continued)
Effective Country of Equity Interest Name of Company Incorporation 2008 2007 Principal Activities % %
Summit Multimedia Education Malaysia 73.97 73.97 Operation of an institution providing Sdn. Bhd. educational programmes.
SEGi-IGS Sdn. Bhd. ~ Malaysia 70 70 Provision of educational services.
SEGi Training Centre Malaysia 100 100 Operation of a training centre 127 (Kuching) Sdn. Bhd. ~ for vocational and professional courses.
SEGi Learning Resources Malaysia 100 100 Provision of educational and (Sarawak) Sdn. Bhd. ~ training services. (formerly known as SMRC Learning Alliance (PJ) Sdn. Bhd.)
SMRC Learning Alliance Sdn. Bhd. Malaysia 100 100 Provision of educational and training services.
SMRC Learning Alliance (KL) Malaysia 100 100 Provision of educational and Sdn. Bhd. ~ training services.
SMRC Learning Alliance (EM) Malaysia 100 100 Provision of management consultancy Sdn. Bhd. ~ services and investment holding.
SMRC Learning Alliance (PG) Malaysia 100 100 Dormant. Sdn. Bhd.
IFPA Resources Sdn. Bhd. Malaysia 100 100 Provision of financial planning and financial related courses.
Summit Early Childhood Malaysia 100 100 Provision of child educational and Edu-Care Sdn. Bhd. ~ related services.
Summit Early Childhood Malaysia 70 70 Provision of child educational and Edu-Care (Rawang) related services. Sdn. Bhd. ~
Pusat Kemahiran Maju Ria Malaysia 100 100 Provision of educational and Sdn. Bhd. ~ training services.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
6. INVESTMENTS IN SUBSIDIARIES (Continued)
Effective Country of Equity Interest Name of Company Incorporation 2008 2007 Principal Activities % %
SEG International Group Sdn. Bhd. Malaysia 100 100 Provision of training and educational services.
SEGi Skills Development & Malaysia 100 100 Provision of training services. 128 Placement Services Sdn. Bhd. ~
SEGi Youth Training Sdn. Bhd. ~ Malaysia 100 100 Provision of training services.
SEGi Methods Sdn. Bhd. ~ Malaysia 100 70 Investment holding.
SEGi Jobs Sdn. Bhd. ~ Malaysia 100 100 Dormant.
SEG International Training Sdn. Bhd. ~ Malaysia 100 51 Provision of services in information and computer technologies.
Shaw Commercial Institution Malaysia 100 100 Investment property holding. Sdn. Bhd.
Systematic Training Network Malaysia 95 70 Provision of education services. Sdn. Bhd.
SBT Professional Publications Malaysia 100 100 Operation of a book centre, dealing Sdn. Bhd. in all kinds of reading materials, information research and related business.
Agensi Pekerjaan Job Venture Malaysia 100 100 Provision of job placement Sdn. Bhd. consultancy services.
Prestige Front Sdn. Bhd. Malaysia 100 100 Property investment and property management.
Binary Mark Sdn. Bhd. Malaysia 98.63 98.63 Property investment.
SEG Equity Sdn. Bhd. Malaysia 100 100 Investment holding.
Summit Education Sdn. Bhd. Malaysia 98.63 98.63 Investment holding and management consultancy.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
6. INVESTMENTS IN SUBSIDIARIES (Continued)
Effective Country of Equity Interest Name of Company Incorporation 2008 2007 Principal Activities % %
Prim Edu-Services Sdn. Bhd. Malaysia 100 100 Investment holding.
SEGi Unisel Sdn. Bhd. ~ Malaysia 97 42 Recruitment and placement of students.
CEPI Resources (Selangor) Malaysia 100 49 Provide training services for 129 Sdn. Bhd. ~ environmental management and protection.
Sino-Malaysia EduCulture Malaysia 100 100 Provision of cross border education Centre Sdn. Bhd. and culture activities.
I-Station Solutions Sdn. Bhd. ~ Malaysia 100 - Provision of E-learning solutions.
Worldwide Accreditation Ltd ~ Republic of 100 100 Provision of licensing and Mauritius accreditation of education programmes.
~ - Not audited by Messrs. Horwath
The Company carried out a review of the recoverable amount of its investments in subsidiaries during the financial year. As a result of the review, no further impairment loss was deemed necessary. The recoverable amount was based on the net asset value of the subsidiaries.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
7. INVESTMENTS IN ASSOCIATES The Group 2008 2007 RM’000 RM’000 Unquoted shares, at cost 2,041 2,080 Written off during the financial year - (39) Share of post-acquisition profits 88 88 Goodwill amortised (278) (278) 1,851 1,851 Less: Allowance for diminution in value (1,400) (1,145) 451 706 130 Allowance for diminution in value At 1 January (1,145) (145) Addition during the financial year (255) (1,000) At 31 December (1,400) (1,145)
The details of the associates are as follows:-
Effective Country of Equity Interest Name of Company Incorporation 2008 2007 Principal Activities % %
Palm Leisure Sdn. Bhd. Malaysia 30 30 Dormant.
My Training Providers Sdn. Bhd. Malaysia 40 40 Dormant.
The financial statements of the associates are not audited by Messrs. Horwath.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
8. PROPERTY, PLANT AND EQUIPMENT
Acquisition At of Written Re- Depreciation At 1.1.2008 Subsidiary Additions Disposals Off classification Charge 31.12.2008 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 The Group
Net Book Value
2008
Freehold land 4,250 ------4,250 Buildings 20,834 - - (93) - 6,305 (501) 26,545 131 Computer hardware and software 1,593 162 951 (40) - 165 (777) 2,054 Fixtures, fittings and office equipment 17,722 75 13,685 (31) (82) (1,630) (3,399) 26,340 Library books and manuals 653 - 175 - (2) (208) (167) 451 Motor vehicles 627 - 1,082 (79) - (26) (340) 1,264 Plant and equipment 493 - 17 - - (363) (78) 69 Capital work-in-progress 14,167 - - - - (4,243) - 9,924 60,339 237 15,910 (243) (84) - (5,262) 70,897
Transfer To At Written Re- Assets Held Depreciation At 1.1.2007 Additions Disposals Off classification For Sale Charge 31.12.2007 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 The Group
Net Book Value
2007
Freehold land 7,228 - - - (2,900) - (78) 4,250 Buildings 33,412 - - - 2,900 (15,137) (341) 20,834 Computer hardware and software 1,027 1,206 (2) - - - (638) 1,593 Fixtures, fittings and office equipment 12,493 8,475 (50) (722) - - (2,474) 17,722 Library books and manuals 428 410 - - - - (185) 653 Motor vehicles 684 206 (9) - - - (254) 627 Plant and equipment 493 ------493 Capital work-in-progress 101,336 30,348 - - - (117,517) - 14,167 157,101 40,645 (61) (722) - (132,654) (3,970) 60,339
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
8. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
At At Accumulated Net Book Cost Valuation Depreciation Value RM’000 RM’000 RM’000 RM’000 The Group
At 31.12.2008
Freehold land - 4,250 - 4,250 Buildings 29,523 100 (3,078) 26,545 Computer hardware and software 14,360 - (12,306) 2,054 132 Fixtures, fittings and office equipment 45,801 - (19,461) 26,340 Library books and manuals 2,491 - (2,040) 451 Motor vehicles 3,040 - (1,776) 1,264 Plant and equipment 785 - (716) 69 Capital work-in-progress 9,924 - - 9,924 105,924 4,350 (39,377) 70,897 AT 31.12.2007
Freehold land - 4,250 - 4,250 Buildings 23,337 100 (2,603) 20,834 Computer hardware and software 12,898 - (11,305) 1,593 Fixtures, fittings and office equipment 32,430 - (14,708) 17,722 Library books and manuals 3,136 - (2,483) 653 Motor vehicles 2,048 - (1,421) 627 Plant and equipment 2,280 - (1,787) 493 Capital work-in-progress 14,167 - - 14,167 90,296 4,350 (34,307) 60,339
At Depreciation At 1.1.2008 Additions Disposal Charge 31.12.2008 Rm’000 Rm’000 Rm’000 Rm’000 Rm’000 The Company
Net Book Value
2008
Freehold land 4,250 - - - 4,250 Buildings 2,994 - (93) (78) 2,823 Computer hardware and software 84 39 - (41) 82 Fixtures, fittings and office equipment 1,165 2 - (187) 980 Library books and manuals 1 - - (1) - 8,494 41 (93) (307) 8,135
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
8. PROPERTY, PLANT AND EQUIPMENT (CONTINUED) Transfer To At Assets Held Depreciation At 1.1.2007 Additions Reclassification For Sale Charge 31.12.2007 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 The Company
Net Book Value
2007
Freehold land 7,227 - (2,899) - (78) 4,250 Buildings 15,235 - 2,899 (15,137) (3) 2,994 133 Computer hardware and software 101 32 - - (49) 84 Fixtures, fittings and office equipment 1,352 4 - - (191) 1,165 Library books and manuals 1 - - - - 1 Motor vehicles 9 - - - (9) - Capital work-in-progress 89,323 28,194 - (117,517) - - 113,248 28,230 - (132,654) (330) 8,494
At At Accumulated Net Book Cost Valuation Depreciation Value RM’000 RM’000 RM’000 RM’000 The Company
AT 31.12.2008
Freehold land - 4,250 - 4,250 Buildings 3,777 100 (1,054) 2,823 Computer hardware and software 1,812 - (1,730) 82 Fixtures, fittings and office equipment 2,001 - (1,021) 980 Library books and manuals 4 - (4) - Motor vehicles 638 - (638) - 8,232 4,350 (4,447) 8,135
AT 31.12.2007
Freehold land - 4,250 - 4,250 Buildings 3,885 100 (991) 2,994 Computer hardware and software 1,773 - (1,689) 84 Fixtures, fittings and office equipment 1,999 - (834) 1,165 Library books and manuals 4 - (3) 1 Motor vehicles 638 - (638) - 8,299 4,350 (4,155) 8,494
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
8. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
The freehold land and certain buildings of the Group and the Company have been pledged as security for banking facilities.
In December 1993, the freehold land and buildings were revalued by the directors using the open market value basis based on a valuation carried out by an independent firm of professional valuers. The surplus net of deferred taxation, arising from the revaluation has been credited to the revaluation reserve account.
Had the revalued freehold land and buildings been carried at cost less accumulated depreciation, the carrying amount of the freehold land and buildings that would have been included in the financial statements are as follows:-
The Group/ 134 The Company 2008 2007 RM’000 RM’000 Freehold land 4,250 4,250 Buildings 96 97 4,346 4,347
The cost and carrying amount of the freehold land are not segregated from the buildings as the required records are not available.
At the balance sheet date, the carrying amount of the assets acquired under hire purchase and finance lease terms are as follows:- The Group 2008 2007 RM’000 RM’000 Computer hardware and software 208 204 Fixtures, fittings and office equipment 6,941 3,866 Motor vehicles 670 444
9. PREPAID LAND LEASE PAYMENTS The Group 2008 2007 RM’000 RM’000 Long-term leasehold land, at cost 4,963 4,963 Less: Accumulated amortisation (12) (6) 4,951 4,957 Accumulated amortisation:- At 1 January (6) - Charge for the financial year (6) (6) At 31 December (12) (6)
The leasehold land has been pledged as security for banking facilities.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
10. INVESTMENT PROPERTIES The Group/ The Company 2008 2007 RM’000 RM’000 Apartments, at cost At 1 January 643 643 Disposals (426) - 217 643 Less: Accumulated depreciation (61) (121) At 31 December 156 522 Accumulated depreciation:- 135 At 1 January (121) (111) Charge for the financial year (8) (10) Disposals 68 - At 31 December (61) (121)
The directors estimate the fair value of investment properties based on comparable market value of similar properties. Based on directors’ estimation, the fair value of the apartments are RM207,000 (2007 - RM684,000).
11. RECEIVABLES, DEPOSITS AND PREPAYMENTS
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 Non-Current Other receivables (a) 11,768 18,165 - -
Current Trade Trade receivables (b) 8,405 17,250 470 959
Non Trade Other receivables, deposits and prepayments (c) 26,816 21,681 13,375 15,180 Amount owing by subsidiaries (d) - - 53,118 45,935 Amount owing by an associate (e) 3 3 3 3 Amount owing by affiliated companies - 1,125 - 1,125 35,224 40,059 66,966 63,202
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
11. RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONTINUED)
(a) Other Receivables - Non-current The Group 2008 2007 RM’000 RM’000 Due from guarantor - 3,180 Due from former subsidiaries 11,768 14,985 11,768 18,165
The purchaser of the former subsidiaries has undertaken to assume these outstanding amounts which are to be settled by 136 instalments.
(b) Trade Receivables The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Trade receivables 8,787 18,076 470 959 Less: Allowance for doubtful debts (382) (826) - - 8,405 17,250 470 959 Allowance for doubtful debts:- At 1 January (826) - - - Charge for the financial year (188) (826) - - Written off during the financial year 632 - - - At 31 December (382) (826) - -
(c) Other Receivables, Deposits and Prepayments - Current The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Other receivables, deposits and prepayments 29,456 21,681 15,317 15,180 Less: Allowance for doubtful debts (2,640) - (1,942) - 26,816 21,681 13,375 15,180 Allowance for doubtful debts:- At 1 January - - - - Charge for the financial year (2,640) - (1,942) - At 31 December (2,640) - (1,942) -
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
11. RECEIVABLES, DEPOSITS AND PREPAYMENTS (CONTINUED)
(c) Other Receivables, Deposits and Prepayments - Current (Continued)
Included in the other receivables, deposits and prepayments are the following:-
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 Interest prepaid (i) 42 142 42 142 Due from guarantor (ii) 3,930 1,200 - - Due from former subsidiaries (iii) 3,972 1,375 - - 137
(i) Interest prepaid on the term loan will be amortised over the period of the term loan of 5 years.
(ii) The guarantor of the profit guarantee for the acquisition of the subsidiaries in prior years has proposed to settlethe outstanding amount by contra with a property.
(iii) The purchaser of the former subsidiaries has undertaken to assume these outstanding amounts which are to be settled by instalments.
(d) Amount Owing By Subsidiaries The Company 2008 2007 RM’000 RM’000 Interest bearing 30,403 43,490 Non-interest bearing 22,715 2,445 53,118 45,935
The amounts owing by subsidiaries are non-trade in nature, unsecured and repayable on demand. The interest bearing portion bore effective interest rates which ranged from 1.00% - 8.50% (2007 - 1.00% to 8.50%) per annum at the balance sheet date.
(e) Amount Owing By An Associate
The amount owing is non-trade in nature, unsecured, interest-free and repayable on demand.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
12. INTANGIBLE ASSETS The Group Development Goodwill Costs Total Cost RM’000 RM’000 RM’000 At 1 January 2007 37,676 5,491 43,167 Effect of movement in exchange rates - (38) (38) At 31 December 2007/1 January 2008 37,676 5,453 43,129 Arising from acquisition of a subsidiary 167 - 167 Effect of movement in exchange rates - 27 27 At 31 December 2008 37,843 5,480 43,323 138 Accumulated Depreciation At 1 January 2007 (7,869) (4,975) (12,844) Amortisation for the financial year - (120) (120) At 31 December 2007/1 January 2008 (7,869) (5,095) (12,964) Amortisation for the financial year - (122) (122) At 31 December 2008 (7,869) (5,217) (13,086)
Carrying Amounts At 1 January 2007 29,807 516 30,323 At 31 December 2007/1 January 2008 29,807 358 30,165 At 31 December 2008 29,974 263 30,237
With effect from 1 January 2006, the Group no longer amortises goodwill on consolidation. Such goodwill is tested annually for impairment, including in the year of its initial recognition, as well as when there are indications of impairment. Impairment losses are recognised when the carrying amount of the cash-generating unit (“CGU”) to which the goodwill has been allocated exceeds its recoverable amount. Impairment loss is recognised in the income statement and subsequent reversal is not allowed.
Impairment testing for CGUs containing goodwill
For the purpose of impairment testing, goodwill is allocated to groups of companies acquired (“the Units”) at which the goodwill is monitored for internal management purposes.
The recoverable amount for the above is based on value in use calculations using cash flow projections covering a five-year period approved by the management.
The following describes the key assumptions on which management has based its cash flow projections to undertake impairment testing of goodwill:
• There will be no material changes in the structure and principal activities of the Group.
• There will not be any significant increase in the labour costs, adverse changes in the economic conditions or other abnormal factors, which will adversely affect the operations of the Units.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
12. INTANGIBLE ASSETS (CONTINUED)
Impairment testing for CGUs containing goodwill (Continued)
• Statutory income tax rate - the rate in Malaysia is 26% for the current year and 25% for year 2009. There will be no material changes in the present legislation or regulations, rate of duties, levies and taxes affecting the Units’ activities.
• Discount rate of 8% is applied in determining the recoverable amounts of the Units. The discount rate was estimated based on the Group’s existing rate of borrowings.
13. OTHER INVESTMENTS The Group The Company 139 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Quoted shares, at cost 4,201 4,201 - -
Allowance for diminution in value:- At 1 January (144) (117) - - Charge for the financial year (1,400) (27) - - (1,544) (144) - - At 31 December 2,657 4,057 - -
Unquoted bonds, at cost 2,320 6,000 2,320 6,000 Bonds redemption (240) (1,400) (240) (1,400) Allowance for diminution in value:- At 1 January (400) - (400) - Charge for the financial year (500) (400) (500) (400) (900) (400) (900) (400)
Written off during the financial year - (2,280) - (2,280) At 31 December 1,180 1,920 1,180 1,920 3,837 5,977 1,180 1,920 Market value of quoted investments in Malaysia 1,275 1,790 - -
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
14. DEFERRED TAX ASSETS
The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 At 1 January 3,007 1,098 2,469 - Recognised in income statement (Note 29) 367 1,909 - 2,469 At 31 December 3,374 3,007 2,469 2,469
Deferred tax assets comprise the following:- The Group The Company 140 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Accelerated capital allowances (691) - - - Unabsorbed capital allowance 3,684 2,484 2,469 2,469 Unutilised tax losses 381 474 - - Provisions - 49 - - At 31 December 3,374 3,007 2,469 2,469
15. INVENTORIES
Inventories represent books and manuals stated at cost.
None of the inventories are stated at net realisable value.
16. CASH AND CASH EQUIVALENTS
The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 Short-term investments with financial institutions 23,246 - 23,246 - Fixed deposits with licensed banks (a) 12,146 5,049 12,095 5,000 Cash and bank balances 12,153 4,103 3,113 591 47,545 9,152 38,454 5,591
(a) Fixed Deposits With Licensed Banks
Included in the fixed deposits of the Group and the Company are the amounts of RM10,146,000 (2007 - RM5,049,000) and RM10,095,000 respectively (2007 - RM5,000,000) that have been pledged for banking facilities.
The weighted average effective interest rate of the fixed deposits at the balance sheet date was 4.13% (2007 -3.00%) per annum. The maturity period of the fixed deposits at the balance sheet date ranged from 6 months to 12months (2007 - 1 month to 12 months).
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
17. SHARE CAPITAL The Group/The Company 2008 2007 2008 2007 Number of Shares RM’000 RM’000 Ordinary shares of RM1 each:- Authorised 100,000,000 100,000,000 100,000 100,000 Issued and fully paid-up 89,092,755 89,092,755 89,093 89,093
18. RESERVES The Group The Company 2008 2007 2008 2007 141 RM’000 RM’000 RM’000 RM’000 Share premium 35,876 35,876 35,876 35,876 Revaluation reserve 2,002 2,027 2,002 2,027 Retained profits 36,309 30,245 16,201 12,642 Exchange translation reserve (94) (91) - - Treasury shares (4,862) (3,561) (4,862) (3,561) 69,231 64,496 49,217 46,984
Share premium
This relates to the premium arising from shares issued and is not distributable by way of dividends.
Revaluation reserve
This relates to the revaluation of a freehold land and building of the Group and the Company and is not distributable by way of dividends.
Retained profits
Subject to the agreement of the tax authorities, at the balance sheet date, the Company has sufficient tax credits under Section 108 of the Income Tax Act 1967 and tax-exempt income to frank the payment of dividends out of its entire retained profits without incurring additional tax liabilities.
Effective from 1 January 2008, the Company is allowed an irrevocable option to elect for the single tier tax system or continue with the use of the tax credit balance for the purpose of dividend distribution. When the tax credit balance is fully utilised, or by 31 December 2013 at the latest, the Company will automatically move to the single tier tax system.
Exchange fluctuation reserve
The exchange fluctuation reserve arose from the translation of the financial statements of the foreign subsidiary andisnot distributable by way of dividends.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
18. RESERVES (CONTINUED)
Treasury shares
During the financial year, the Company purchased its issued ordinary shares from the open market under the share buy-back programme. Details are as follows:-
Total Price Per Share No of Consideration Date Lowest Highest Average Shares RM’000
Balance at 1 January 2008 4,238,300 3,561 142 Additions during the financial year 0.595 0.715 0.665 1,957,300 1,301 At 31 December 2008 6,195,600 4,862
The share buy-back programme was financed by internally generated funds. The shares purchased were retained as treasury shares in accordance with Section 67A of the Companies Act 1965 in Malaysia and are presented as a deduction from shareholders’ equity.
19. LONG-TERM BORROWINGS The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Hire purchase and finance lease payables (Note 20) 4,624 2,944 - - Term loans (Note 21) 3,216 23,212 - 20,000 7,840 26,156 - 20,000
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
20. HIRE PURCHASE AND FINANCE LEASE PAYABLES The Group 2008 2007 RM’000 RM’000 Minimum hire purchase and finance lease payments: - not later than one year 3,131 1,824 - later than one year but not later than five years 4,719 3,175 - later than five years 71 18 7,921 5,017 Less: Future finance charges (751) (517) Present value of hire purchase payables 7,170 4,500 The net hire purchase and finance lease payables are repayable as follows:- 143 Current: - not later than one year (Note 24) 2,546 1,556 Non-current: - later than one year but not later than five years 4,555 2,926 - later than five years 69 18 Total payable after one year (Note 19) 4,624 2,944 7,170 4,500
The hire purchase and finance lease payables are subject to effective interest rates ranging from 3.67% to8.01% (2007 - 2.08% to 8.01%) per annum.
21. TERM LOANS The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Current portion (Note 24): - repayable within one year 20,163 520 20,000 - Non-current portion (Note 19): - repayable between one to two years 295 20,295 - 20,000 - repayable between two to five years 1,009 1,009 - - - repayable after five years 1,912 1,908 - - 3,216 23,212 - 20,000 23,379 23,732 20,000 20,000
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
21. TERM LOANS (CONTINUED)
Details of the term loans at the balance sheet date are as follows:- Effective Number of Monthly Dates of Amount Outstanding Monthly Instalments Commencement 2008 2007 Instalments RM of Repayment Rm’000 Rm’000 Term loan 1 1 N/A 1 20,000 20,000 Term loan 2 108 2 2 3,379 3,732 23,379 23,732
144 1 - Term loan 1 is repayable in full in June 2009. 2 - Term loan 2 is repayable as follows:-
(a) monthly instalments ranging from RM13,000 to RM40,400 over 107 instalments from September 2008 to August 2017; and
(b) final instalment of RM350,000 on September 2017.
The term loans are subjected to a weighted average effective interest rate of 5.49% (2007 - 5.65%) per annum at the balance sheet date and are secured by a first legal charge over the leasehold land of a subsidiary except for term loan 1.
22. DEFERRED TAX LIABILITIES The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 At 1 January 1,874 2,070 283 644 Recognised in income statement (Note 29) 17 (196) - (361) At 31 December 1,891 1,874 283 283
Deferred tax liabilities comprise the following:- The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Accelerated capital allowances 1,608 1,591 - - Revaluation of property 283 283 283 283 At 31 December 1,891 1,874 283 283
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
23. PAYABLES AND ACCRUALS The Group The Company 2008 2007 2008 2007 Note RM’000 RM’000 RM’000 RM’000 Trade Trade payables (a) 796 1,095 - -
Non Trade Other payables and accruals (b) 21,345 71,945 3,976 62,537 Amount owing to subsidiaries (c) - - 27,172 20,466 Amount owing to affiliated companies (d) 29 - 29 - 22,170 73,040 31,177 83,003 145
(a) Trade Payables
The normal trade credit terms granted to the Group ranged from 30 to 90 days.
(b) Other Payables and Accruals
Included in other payables and accruals in the previous financial year was an amount of RM59,223,000 in respect of deposit received for assets held for sale.
(c) Amount Owing To Subsidiaries
The amount owing to subsidiaries is unsecured and repayable on demand.
The foreign currency exposure profile of the amount owing to subsidiaries of the Company at the balance sheet date is as follows:-
The Company 2008 2007 RM’000 RM’000 United States Dollar 11,671 7,766
(d) Amount Owing To Affiliated Companies
The amount owing to affiliated companies is unsecured, interest-free and repayable on demand.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
24. SHORT-TERM BORROWINGS The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Hire purchase and finance lease payables (Note 20) 2,546 1,556 - - Term loans (Note 21) 20,163 520 20,000 - Revolving credit - 40,000 - 40,000 22,709 42,076 20,000 40,000
25. BANK OVERDRAFTS 146 The bank overdrafts bore effective interest rates of ranging from 6.25% to 8.75% (2007 - 7.00% to 9.25%) per annum at the balance sheet date and are secured by:-
(i) a first legal charge over the freehold land, certain buildings and leasehold land of the Group;
(ii) fixed and floating charges over certain assets of a subsidiary; and
(iii) a corporate guarantee of the Company.
26. NET ASSETS PER SHARE
The net assets per share is calculated based on the net assets value of the Group at the balance sheet date of RM158,324,000 (2007 - RM153,589,000) divided by the number of ordinary shares of RM1 each in issue excluding treasury shares at the balance sheet date are detailed as follows:-
The Group 2008 2007 Number of Number of Shares Shares Ordinary shares of RM1 each in issue 89,092,755 89,092,755 Treasury shares (6,195,600) (4,238,300) 82,897,155 84,854,455
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
27. REVENUE The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Services 120,511 84,989 6,786 4,724 Management fee - - 4,242 3,206 Rental income 6,813 756 15,540 8,876 Sales of manuals - 518 - - Dividend income 83 - 2,080 5,132 127,407 86,263 28,648 21,938
147 28. PROFIT BEFORE TAXATION The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Profit before taxation is arrived at after charging/(crediting):-
Allowance for diminution: - investments in associates 255 1,000 - - - quoted shares 1,400 27 - - - unquoted bonds 500 400 500 400 Allowance for doubtful debts: - trade receivables 188 826 - - - other receivables 2,640 - 1,942 - Amortisation expense: - development costs 122 120 - - - prepaid land lease payments 6 6 - - Audit fee: - current year 193 168 38 28 - underprovision in the previous financial year 1 - - - Bad debts written off 190 2,366 100 - Depreciation expense: - investment properties 8 10 8 10 - property, plant and equipment 5,262 3,970 307 330 Directors’ fee 197 242 197 242 Directors’ non-fee emoluments 1,161 1,026 1,161 1,026 Interest expense: - bank overdrafts 185 267 119 69 - term loans, hire purchase and finance lease 1,786 6,377 1,206 6,135 - other borrowings 54 182 - -
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
28. PROFIT BEFORE TAXATION (CONTINUED) The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Inventories written off 180 - - - Investment in associates written off - 39 - - Investment in unquoted bonds written off - 2,280 - 2,280 Lease of premises 14,729 4,345 14,729 4,345 Property, plant and equipment written off 84 722 - - Rental expense: - equipment 869 418 - - - hostel 1,450 - - - 148 - land and building 24 39 24 39 - motor vehicles 42 - - - - premises 5,233 - - - Staff costs 34,397 27,923 1,098 1,728 Dividend income (83) - (2,080) (5,132) Gain on disposal of property, plant and equipment (1) (8) (11) - Gain on disposal of investment properties (61) - (61) - (Gain)/Loss on disposal of assets held for sale (4,089) 574 (4,089) 574 Interest income: - subsidiaries - - (744) (691) - others (836) (389) (721) (285) Realised gain on foreign exchange (87) - - - Rental income (6,813) (756) (15,540) (8,876)
29. INCOME TAX EXPENSE The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Current taxation:- - for the financial year 3,095 1,807 421 652 - (over)/under provision in the previous financial year (181) (1,216) - 197 - section 110 set-off - (1,350) - - 2,914 (759) 421 849 Deferred tax assets (Note 14): - for the financial year 94 (2,085) - (2,592) - (over)/underprovision in the previous financial year (461) 176 - 123 (367) (1,909) - (2,469) Deferred tax liabilities (Note 22): - for the financial year (95) (214) - (379) - underprovision in the previous financial year 112 18 - 18 17 (196) - (361) 2,564 (2,864) 421 (1,981)
During the current financial year, the statutory tax rate was reduced from 27% to 26% as announced in the Malaysian Budget 2007.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
29. INCOME TAX EXPENSE (CONTINUED)
A reconciliation of income tax expense applicable to the profit before taxation at the statutory tax rate to income tax expense at the effective tax rate of the Group and of the Company is as follows:-
The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Profit before taxation 9,884 2,479 5,182 1,442 Tax at the statutory tax rate of 26% (2007 - 27%) 2,569 1,499 1,347 389 Tax effects of:- Non-deductible expenses 1,793 974 276 219 Non-taxable gain (1,583) - (1,202) - 149 Deferred tax assets not recognised during the financial year 494 37 - - Utilisation of previously unrecognised deferred tax assets (35) - - - Tax incentives - (2,927) - (2,927) Section 110 set-off - (1,350) - - (Over)/Underprovision in the previous financial year: - current tax (181) (1,216) - 197 - deferred taxation (349) 194 - 141 Differential in tax rates (144) (75) - - Tax for the financial year 2,564 (2,864) 421 (1,981)
30. EARNINGS PER SHARE
The basic earnings per share is arrived at by dividing the Group’s profit attributable to shareholders of RM7,266,000 (2007 - RM5,156,000) by the weighted average number of ordinary shares in issue during the financial year, net of treasury shares, of approximately 83,500,000 (2007 - 85,459,000).
Diluted earnings per share is not presented as there were no potential dilutive ordinary shares.
31. DIVIDEND The Group/ The Company 2008 2007 RM’000 RM’000 Paid:- In respect of the financial year ended 31 December Final dividend of 2 sen per ordinary share less 26% (2007 - 27%) tax 1,227 1,245
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
32. PURCHASE OF PROPERTY, PLANT AND EQUIPMENT The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Cost of property, plant and equipment purchased 15,910 40,645 41 28,230 Amount financed through hire purchase and finance lease (4,817) (4,211) - - Cash disbursed for purchase of property, plant and equipment 11,093 36,434 41 28,230
33. ACQUISITION OF A SUBSIDIARY
150 The details of net assets acquired and cash flow arising from the acquisition of a subsidiary during the financial year areas follows:-
The Group 2008 2007 RM’000 RM’000 Equipment 237 - Trade receivables 442 - Other receivables and deposits 73 - Cash at bank 35 - Other payables and accruals (80) - Amount owing to related companies (674) - Fair value of net assets acquired 33 - Goodwill on acquisition 167 - Total purchase consideration 200 - Less: Cash at bank of the subsidiary (35) - Net cash outflow from acquisition of a subsidiary 165 -
34. DIRECTORS’ REMUNERATION
The aggregate amount of emoluments received and receivable by Directors of the Group and of the Company during the financial year are as follows:- The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Executive directors:- - basic salaries, bonus and EPF 1,161 1,026 1,161 1,026 Non-executive directors:- - fee 197 242 197 242
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
34. DIRECTORS’ REMUNERATION (CONTINUED)
The details of emoluments for the directors of the Group and of the Company received/receivable for the financial year in bands of RM50,000 are as follows:-
The Group/The Company 2008 2007 Non- Non- Executive Executive Executive Executive Directors Directors Directors Directors Below RM50,000 - 7 - 6 RM50,001 - RM100,000 - - - 1 RM250,001 - RM300,000 - - 1 - 151 RM300,001 - RM350,000 1 - 1 - RM350,001 - RM400,000 1 - - - RM400,001 - RM450,000 - - 1 - RM450,001 - RM500,000 1 - - -
35. RELATED PARTY DISCLOSURES
The balances with related parties are disclosed in Note 11(d), Note 11(e), Note 23(c) and Note 23(d) to the financial statements.
In addition to the balances detailed elsewhere in the financial statements, the Company carried out the following transactions with related parties during the financial year:
The Company 2008 2007 RM’000 RM’000 Sale of services to subsidiaries: - examination fee 1,136 1,355 - interest charge 744 691 - management fee 4,242 3,206 - rental of premises 15,067 8,120 - service charge 180 192
Purchase of services from subsidiary: - accreditation fee 4,008 1,396 Dividend income from subsidiaries 2,000 5,132
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
35. RELATED PARTY DISCLOSURES (CONTINUED)
Key management personnel compensation The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Short-term employee benefits 2,111 1,869 1,373 1,577
The outstanding amounts of related parties will be settled in cash. No guarantees have been given or received. No expenses have been recognised during the financial year as bad and doubtful debts in respect of amounts owing by the related parties.
152 36. CONTINGENT LIABILITIES The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Corporate guarantees given to secure banking facilities granted to certain subsidiaries - - 4,817 4,638 Bank guarantees given to an electricity provider * 117 117 - - 117 117 4,817 4,638
* - This is secured by a pledge over the fixed deposits of a subsidiary.
37. COMMITMENTS
Capital commitments
Authorised capital expenditure not provided for in the financial statements:- The Group 2008 2007 RM’000 RM’000 Approved capital commitment contracted but not provided for: - plant and equipment 149 -
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
37. COMMITMENTS (CONTINUED)
Operating lease commitments
The future minimum lease payments under the non-cancellable operating leases are as follows:-
The Group The Company 2008 2007 2008 2007 RM’000 RM’000 RM’000 RM’000 Not later than one year 21,442 4,345 15,632 4,345 Later than one year and not later than five years 72,533 13,728 68,617 13,728 Later than five years 72,806 36,568 72,806 36,568 Total 166,781 54,641 157,055 54,641 153
38. FOREIGN EXCHANGE RATES
The applicable closing foreign exchange rates used (expressed on the basis of one unit of foreign currency to RM equivalent) for the translation of foreign currency balances at the balance sheet date are as follows:-
2008 2007 RM’000 RM’000 United States Dollar 3.46 3.30
39. SEGMENTAL REPORTING
Segmental reporting is not presented as the Group is principally engaged in the provision of educational activities, which is substantially within a single business segment and operates wholly in Malaysia.
40. FAIR VALUES OF FINANCIAL INSTRUMENTS
Fair value is defined as the amount at which the financial instrument could be exchanged in a current transaction between knowledgeable willing parties in an arm’s length transaction, other than in a forced sale or liquidation.
The following methods and assumptions are used to estimate the fair value of each class of financial instruments:
(a) Long-Term Borrowings
The fair value of the long-term borrowings is determined by discounting the relevant cash flows using current interest rates for similar types of instruments.
(b) Hire Purchase And Finance Lease Obligations
The fair values of hire purchase and finance lease payables are determined by discounting the relevant cash flows using current interest rates for similar types of instruments.
• SEG International Bhd • Notes to the Financial Statements for the year ended 31 December 2008
40. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)
(c) Quoted And Unquoted Investments
The fair values of quoted investments are estimated based on quoted market prices for these instruments.
For unquoted investments, it is not practicable to determine the fair values because of the lack of quoted market prices and the assumptions used in valuation models to value these investments cannot be reasonably determined.
(d) Cash And Cash Equivalents And Other Short-Term Receivables/Payables
The carrying amounts approximated their fair values due to the relatively short-term maturity of these instruments.
(e) Contingent Liabilities
154 It is not practicable to estimate the fair value of contingent liabilities reliably due to uncertainties of timing, costs and eventual outcome.
The nominal amount and net fair value of financial instruments not recognised in the balance sheets of the Company are as follows: The Group The Company Nominal Net Nominal Net Amount Fair Value Amount Fair Value Note RM’000 RM’000 RM’000 RM’000 At 31 December 2008 Contingent liabilities 36 117 * 4,817 *
At 31 December 2007 Contingent liabilities 36 117 * 4,638 *
* The net fair value of the contingent liability is estimated to be minimal as the subsidiaries are expected to fulfill their obligations to repay their borrowings.
41. SIGNIFICANT EVENT DURING THE FINANCIAL YEAR
On 9 April 2008, the Group acquired 200,000 ordinary shares of RM1 each representing the entire issued and paid-up share capital of I-Station Solutions Sdn. Bhd, for a total cash consideration of RM200,000.
42. SIGNIFICANT EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
Subsequent to the balance sheet date,
(a) on 15 January 2009, the Group completed its:-
(i) acquisition of 500,000 ordinary shares of RM1 each in Eduspec Sdn. Bhd. (“Eduspec”) for a total purchase price of RM1.9 million only or RM3.80 per ordinary share of Eduspec; and
(ii) subscription for 500,000 new ordinary shares of RM1 each in Eduspec for a total subscription price of RM1.9 million only or RM3.80 per new ordinary share.
The total shares acquired by and subscribed for the Group represent 22.22% of the issued and paid-up capital of Eduspec.
(b) a wholly-owned subsidiary company of the Group, SEG Equity Sdn. Bhd. acquired 100,000 ordinary shares of RM1 each, representing the entire issued and paid-up share capital of Metromas Realtors Sdn. Bhd. from Pharma Exel Sdn. Bhd., for a total cash consideration of RM100,000.
• SEG International Bhd • Group Properties as at 31 December 2008
No. Address Approximate Existing Tenure Approximate NBV as at Date of Areas/Description Use Age of 31/12/2008 Revaluation/ Building (RM’000) Acquisition (years) Owned by Company
1 33-35 Jalan Hang Lekiu 4,515 sq ft land Education Freehold 31 7,073 14/12/1993 50100 Kuala Lumpur area with a 9-storey Centre commercial building
2 36-4, 4th Floor Block B 2,910 sq ft built-up Residential Leasehold 28 94 08/01/1993 Jalan Senohong area of an apartment Expiry date @ Taman Cantik, Cheras 18/01/2076 56100 Kuala Lumpur 155
3 28-3, 3rd Floor Block A 1,297 sq ft built-up Residential Leasehold 28 62 04/04/1994 Jalan Senohong area of an apartment Expiry date @ Taman Cantik, Cheras 18/01/2076 56100 Kuala Lumpur
Owned by Subsidiaries
4 211 Jalan Bukit 22,081 sq ft land Education Leasehold 32 10,322 13/06/2001 Mata Kuching area with 6-storey Centre Expiry date @ 93100 Kuching building 13/08/2785 Sarawak
5 South City Plaza 21,986 sq ft built-up Training Leasehold 5 8,330 03/07/1998 Lot 3.09a, 3rd Floor area of shoplot space Centre Expiry date @ Persiaran Serdang 09/11/2093 Perdana Taman Serdang Perdana Section 1 43300 Seri Kembangan Selangor
6 South City Plaza 15,482 sq ft built-up Training Leasehold 5 5,867 08/01/1999 Lot 3.09b, 3rd Floor area of shoplot space Centre Expiry date @ Persiaran Serdang 09/11/2093 Perdana Taman Serdang Perdana Section 1 43300 Seri Kembangan Selangor
7 Lot 196 & 444, Block 16 3.69 acres of land Vacant Leasehold - 9,924 28/12/2004 KCLD, Jalan Tun Jugah Expiry date @ Kuching, Sarawak Lot 196 - 31/12/2026 Lot 444 - 31/12/2024
• SEG International Bhd • Group Properties as at 31 December 2008
No. Address Approximate Existing Tenure Approximate NBV as at Date of Areas/Description Use Age of 31/12/2008 Revaluation/ Building (RM’000) Acquisition (years) Owned by Subsidiaries
8 Unit No. A-PH-01 1,555 sq ft built-up Residential Freehold 1 647 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
9 Unit No. A-PH-06 1,555 sq ft built-up Residential Freehold 1 647 19/10/2005 156 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
10 Unit No. A-PH-07 1,555 sq ft built-up Residential Freehold 1 617 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
11 Unit No. A-PH-08 1,555 sq ft built-up Residential Freehold 1 549 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
12 Unit No. A-PH-11 1,555 sq ft built-up Residential Freehold 1 496 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
13 Unit No. A-PH-12 1,555 sq ft built-up Residential Freehold 1 647 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
14 Unit No. B-23A-02 1,062 sq ft built-up Residential Freehold 1 277 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
15 Unit No. B-23A-11 1,062 sq ft built-up Residential Freehold 1 274 19/10/2005 Pangsapuri Casa Subang area of a service Jalan Subang 1, USJ1 apartment 47600 Subang Jaya Selangor
• SEG International Bhd • Analysis of Shareholdings as at 30 April 2009
Authorised Share Capital : RM100,000,000 Issued and Fully Paid-up Share Capital : RM82,897,155 (Excluding treasury shares of 6,195,600) Class of shares : Ordinary shares of RM1.00 each Voting rights : One vote per ordinary share
Distribution Schedule of Shareholdings
Size of shareholdings No. of % of No. of % of shareholders shareholders shares held issued capital
1 – 99 26 1.26 853 0.00 100 – 1,000 321 15.53 255,471 0.31 1,001 – 10,000 1,409 68.17 4,883,012 5.89 157 10,001 – 100,000 246 11.90 6,701,723 8.08 100,001 – less than 5% of issued shares 63 3.05 48,555,231 58.57 5% and above of issued shares 2 0.10 22,500,865 27.14 TOTAL 2,067 100.00 82,897,155 100.00
Substantial Shareholders as at 30 April 2009
According to the register required to be kept under Section 69L of the Companies Act, 1965, the following are the substantial shareholders (excluding bare trustees) of the Company:-
No. of shares held Name of Shareholders Direct % Indirect %
1. EcoFirst Consolidated Berhad (“EcoFirst”) 18,555,025 22.38 2,235,000## 2.70 2. Koperasi Pegawai-pegawai Melayu Malaysia Bhd (“MOCCIS”) 15,226,865 18.37 - - 3. Dato’ (Dr.) Patrick Teoh Seng Foo 1,314,000 1.59 20,790,025** 25.08
Directors’ Shareholdings No. of shares held Name of Shareholders Direct % Indirect %
1. Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas 297 - - - 2. Dato’ (Dr.) Patrick Teoh Seng Foo 1,314,000 1.59 20,790,025** 25.08 3. Dato’ Clement Hii Chii Kok 708,000 0.85 - - 4. Lee Kok Cheng - - - - 5. Amos Siew Boon Yeong - - - - 6. Simon Hue Fook Chuan - - - - 7. Tony Foo San Kan - - - -
## Deemed interest by virtue of shares held by Sawitani Sdn Bhd, a wholly-owned subsidiary of EcoFirst ** Deemed interest by virtue of shares held by EcoFirst and Sawitani Sdn Bhd in which the Director is deemed to have an interest
• SEG International Bhd • Analysis of Shareholdings as at 31 December 2008
Thirty Largest Shareholders
Name of shareholders No. of shares % 1. Koperasi Pegawai-Pegawai Melayu Malaysia Berhad (MOCCIS) 15,226,865 18.37 2. Alliancegroup Nominees (Tempatan) Sdn Bhd Alliance Merchant Nominees (Tempatan) Sdn Bhd for EcoFirst Consolidated Bhd 7,274,000 8.77 3. Ladang MOCCIS Sdn Bhd 3,755,213 4.53 4. AMSEC Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Tasmuning Development Sdn Bhd 3,716,000 4.48 5. Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for EcoFirst Consolidated Bhd 3,078,000 3.71 6. Brahmal A/L Vasudevan 3,000,000 3.62 7. Kumpulan Wang Simpanan Guru-Guru 2,840,000 3.43 158 8. CIMB Group Nominees (Tempatan) Sdn Bhd Pledged Securities Account for EcoFirst Consolidated Bhd 2,712,623 3.27 9. Koperasi Permodalan Felda Berhad 2,414,700 2.91 10. CIMB Group Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Sawitani Sdn Berhad 2,100,000 2.53 11. MIDF Amanah Investment Nominees (Tempatan) Sdn Bhd Pledged Securities Account for EcoFirst Consolidated Bhd 1,881,000 2.27 12. TA Nominees (Tempatan) Sdn Bhd Pledged Securities Account for EcoFirst Consolidated Bhd 1,650,000 1.99 13. TA Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Diana Lim 1,450,000 1.75 14. AMSEC Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Rexter Capital Sdn Bhd 1,345,800 1.62 15. Lembaga Tabung Angkatan Tentera 958,000 1.16 16. TA Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Purewise Sdn Bhd 936,400 1.13 17. HSBC Nominees (Asing) Sdn Bhd Exempt An For Credit Suisse 850,900 1.03 18. Public Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Wong Kam Mun 806,200 0.97 19. Pahamin AB Rajab 800,000 0.97 20. Tan Chee Sing 783,200 0.94 21. Inter-Pacific Equity Nominees (Tempatan) Sdn Bhd Pancaran Abadi Sdn Bhd for EcoFirst Consolidated Bhd 774,616 0.93 22. Khor Meow Siang 676,000 0.82 23. TA Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Hii Chii Kok @ Hii Chee Kok 676,000 0.82 24. OSK Nominees (Tempatan) Sdn Bhd Pledged Securities Account for EcoFirst Consolidated Bhd 612,286 0.74 25. ECML Nominees (Tempatan) Sdn Bhd Perdana Technology Venture Sdn Bhd 558,600 0.67 26. Zalaraz Sdn Bhd 546,600 0.66 27. SBB Nominees (Tempatan) Sdn Bhd Yayasan Mohd Noah 540,000 0.65 28. SJ Sec Nominees (Tempatan) Sdn Bhd CIMB Bank for Brahmal A/L Vasudevan 540,000 0.65 29. HDM Nominees (Tempatan) Sdn Bhd Pledged Securities Account for EcoFirst Consolidated Bhd 484,000 0.58 30. Kee Ju-Hun 495,000 0.55
• SEG International Bhd • Proxy Form (Incorporated in Malaysia) 145998-U
I/We of being a member/members of SEG International Bhd hereby appoint of or failing him/her of or failing him/her, the Chairman of the meeting as my/our proxy to vote for me/us on my/our behalf at the Twenty-Third Annual General Meeting of the Company to be held at Level 2, Right Wing, SEGi University College, No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan on Wednesday, 24 June 2009 at 10.30 a.m. and at any adjournment thereof.
My/Our proxy is to vote either on a show of hands or on a poll as indicated below with an “X”:
RESOLUTION FOR AGAINST
1. Adoption of the Audited Financial Statements and Reports
2. Declaration of a final dividend of 3 sen per ordinary share less income tax at 25%
3. Approval of the payment of Directors’ Fees
4. Re-elect Tan Sri Dato’ Seri Megat Najmuddin Bin Dato’ Seri Dr. Haji Megat Khas in accordance with Article 86 of the Company’s Articles of Association
5. Re-elect Mr. Amos Siew Boon Yeong in accordance with Article 86 of the Company’s Articles of Association
6. Re-appointment of Messrs. Horwath as Auditors and to authorise the Directors to fix their remuneration
7. Authority pursuant to Section 132D of the Companies Act, 1965 for Directors to issue shares
8. Proposed Renewal of Share Buy-Back
Dated this ______day of ______2009
Number of shares held Signature of member(s)
Notes: 1. If you wish to appoint other person(s) to be your proxy, delete the words “the Chairman of the meeting” and insert the name(s) and address(es) of the person(s) desired in the space so provided. 2. If there is no indication as to how you wish your vote(s) to be cast, the proxy will vote or abstain from voting at his/her discretion. 3. A proxy may but need not be a member of the Company and the provision of Section 149(1)(b) of the Companies Act, 1965 shall not apply to the Company. 4. A member shall not be entitled to appoint more than two proxies to attend and vote at the same meeting. Where two proxies are appointed, the proportions of shareholdings to be represented by each proxy must be specified in order for the appointments to be valid. 5. Where a member of the Company is an authorised nominee as defined under the Securities Industry (Central Depositories) Act, 1991, it may appoint at least one proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of the said securities account. 6. If the appointor is a corporation, this form must be executed under its Common Seal or under the hand of its Attorney. 7. All Forms of Proxy must be duly executed and deposited at the Registered Office of the Company at 6th Floor, SEGi University College, No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan not less than 48 hours before the time for holding the Meeting or adjourned meeting. Fold this flap for sealing
1st fold here
Stamp
SEG International Bhd 6th Floor, SEGi University College, No. 9, Jalan Teknologi, Taman Sains Selangor, Kota Damansara, PJU 5, 47810 Petaling Jaya, Selangor Darul Ehsan.
2nd fold here SEGi Education Network
SEGi Group of Colleges SEGi Group of Training Centres SEGi Business Units
SEGi University College SEGi Training Centre Seri Kembangan IFPA Resources Sdn Bhd No. 9, Jalan Teknologi Block A, South City Plaza 10th Floor, SEGi College Taman Sains Selangor Persiaran Serdang Perdana Persiaran Kewajipan USJ 1 Kota Damansara, PJU 5 43300 Seri Kembangan 47600 UEP Subang Jaya 47810 Petaling Jaya Selangor Darul Ehsan Selangor Darul Ehsan Toll free : 1800-88-7344 Tel : +603 8948 4811 Tel : +603 8605 3886 Tel : +603 6145 1777 Fax : +603 8945 4066 Fax : +603 8605 3816 Fax : +603 6145 1666 [email protected] [email protected] SEGi Training Centre Pulau Indah 22, Blok D, Jalan Sungai Chandong 19 I-Station Solutions Sdn Bhd SEGi College Subang Jaya Bandar Armanda Putra No. C-23-3 Persiaran Kewajipan, USJ 1 Pulau Indah Jalan Multimedia 7/AH 47600 UEP Subang Jaya 42009 Perlabuhan Klang CityPark, i-City Selangor Darul Ehsan Selangor Darul Ehsan 40000 Shah Alam Tel : +603 8600 1888 Tel : +603-3101 3970 Selangor Darul Ehsan Fax : +603 8600 1999 Fax : +603-3101 3913 Tel : +603 5521 8533 [email protected] Fax : +603 6145 2625 SEGi Training Centre Kuala Lumpur SEGi College Kuala Lumpur 41, Jalan Hang Lekiu Summit Early Childhood 33 - 35, Jalan Hang Lekiu 50100 Kuala Lumpur Edu-Care Sdn Bhd 50100 Kuala Lumpur Tel : +603 2078 1518 5th Floor, SEGi College Tel : +603 2070 2078 Fax : +603 2078 2588 Persiaran Kewajipan USJ 1 Fax : +603 2034 2759 47600 UEP Subang Jaya [email protected] SEGi Training Centre Bukit Mertajam Selangor Darul Ehsan No 25 & 27, Jalan Permatang Rawa 1 Tel : +603 8600 1777 SEGi College Seri Kembangan Kawasan Perniagaan Rawa Fax : +603 8605 3999 Block A, South City Plaza 14000 Bukit Mertajam [email protected] Persiaran Serdang Perdana Seberang Prai, Pulau Pinang 43300 Seri Kembangan Tel : +604 5401 887/5401 886 Agensi Pekerjaan Job Venture Sdn Bhd Selangor Darul Ehsan Fax : +604 5401 889 2nd Floor, No. 9, Jalan Teknologi Tel : +603 8948 4811 Taman Sains Selangor Fax : +603 8945 4066 SEGi Training Centre Kuching Kota Damansara, PJU 5 [email protected] Lot 9603-9611 47810 Petaling Jaya Jalan Pending Selangor Darul Ehsan SEGi College Penang 93450 Kuching Tel : +603 6145 2777 Wisma Green Hall Sarawak Fax : +603 6145 2666 43 Green Hall Tel : +6082 338 816 [email protected] 10200 Penang Fax : +6082 339 816 Pulau Pinang Worldwide Accreditation Ltd Tel : +604 263 3888/262 8127 Les Cascades Building Fax : +604 262 2193 Edith Cavell Street, Port Louis, Mauritius [email protected]
SEGi College Sarawak 211, Jalan Bukit Mata Kuching 93100 Kuching Sarawak Tel : +6082 252 566 Fax : +6082 231 355 [email protected] www.segi.edu.my
No. 9, Jalan Teknologi Taman Sains Selangor Kota Damansara, PJU 5 47810 Petaling Jaya Selangor Toll : 1800-88-7344 Tel : +603 6145 1777 Fax : +603 6145 1666