PENYATA PENGERUSI
kelembapan ekonomi global melanda dunia, industri
insurans terus mencatat pertumbuhan positif.
Pendapatan premium gabungan daripada perniagaan
insurans hayat dan insurans am telah meningkat
12.4%.
Kumpulan MAA telah memanfaatkan pertumbuhan
berterusan industri insurans Malaysia dan berjaya
menjadikan 2001 satu lagi tahun kejayaan. Jumlah
perolehan Operasi Kumpulan mencatat peningkatan
besar 57.5% kepada RM2,280 juta (2000 - RM1,448
juta).
Keuntungan sebelum cukai Kumpulan juga
meningkat 88.0% kepada RM47 juta berbanding
RM25 juta pada tahun sebelumnya. Keuntungan
lebih tinggi pada tahun yang dilaporkan ini
menggambarkan prestasi lebih baik yang
diperlihatkan oleh Bahagian Insurans Hayat dan
pengiraan semula peruntukan bagi susut nilai
pelaburan ekuiti disebut harga disebabkan pasaran
saham tempatan yang lebih kukuh.
Bagi pihak Lembaga Pengarah, saya dengan
sukacitanya membentangkan Laporan Tahunan dan
Akaun-Akaun Kumpulan MAA bagi tahun berakhir
31 Disember 2001.
Jumlah aset Kumpulan meningkat lagi sebanyak
57.1% kepada RM4.32 bilion (2000 - RM2.75 bilion).
PENCAPAIAN KORPORAT
KEPUTUSAN OPERASI
Tahun 2001 adalah satu tahun yang amat sukar,
kerana seluruh dunia dilanda kemelesetan ekonomi
global yang mencengkam setiap negara. Sebagai
salah sebuah negara yang bergantung kepada
perdagangan antarabangsa, Malaysia juga tidak
terlepas daripada cengkaman kemelesetan ekonomi
ini. Serangan pengganas di Amerika Syarikat pada
11 September memburukkan lagi keadaan dan
menyebabkan ekonomi Malaysia tambah merosot.
Unjuran pertumbuhan KDNK kerajaan Malaysia bagi
tahun 2001 telah dikaji semula daripada kira-kira 4%
kepada 0%.
Kumpulan berbangga dengan kejayaan MAA
Assurance memperolehi anugerah “Syarikat
Insurans Hayat Terbaik Tahun 2001” di majlis
Penyampaian Anugerah Industri Insurans Asia Ke5 yang diadakan di Singapura pada bulan November,
2001. MAA menghadapi persaingan daripada lebih
400 calon lain dari seluruh rantau ini.
Sebagai usaha untuk menanganinya, kerajaan
Malaysia telah memperkenalkan pakej rangsangan
RM4.3 bilion untuk menggiatkan semula ekonomi.
Pakej ini adalah tambahan kepada pakej rangsangan
RM3.0 bilion yang diumumkan terdahulu daripada
itu pada awal tahun 2001. Langkah-langkah ini
terbukti berkesan, bukan sahaja untuk
merangsangkan perbelanjaan domestik, tetapi juga
untuk mengelakkan kegawatan ekonomi,
membolehkan negara kita mencatat Pertumbuhan
KDNK 0.4% pada tahun 2001.
Seperti yang dinyatakan oleh Bank Negara Malaysia
dalam Laporan Tahunan Insurans 2001, sungguhpun
Para pelanggan merupakan keutamaan kami
Our customers are always of paramount importance to us
17 • MAA Holdings Berhad (471403-A)
Pembangunan sumber manusia diberi penekanan bagi melahirkan kakitangan dan ejen yang berwibawa
Human resource development is always emphasised to produce highly skilled and capable staff and agents
TINJAUAN BAHAGIAN-BAHAGIAN
PERNIAGAAN
1.
mengatasi tempoh “tekanan perniagaan baru”.
Oleh itu, keuntungan Bahagian Insurans Hayat
pada tahun-tahun seterusnya boleh dijangkakan
akan mencapai pertumbuhan kukuh yang boleh
kekal. Selepas pemindahan keuntungan
kepada akaun Pemegang Saham, dana lebihan
insurans hayat secara keseluruhan terus kukuh,
dengan lebihan kumulatif dihantar ke hadapan
sebanyak RM333 juta pada 31 Disember 2001.
BAHAGIAN INSURANS HAYAT
Bahagian Insurans Hayat terus mencatat
pertumbuhan yang kukuh. Jumlah pendapatan
premiumnya meningkat 68.2% ke p a d a
RM1,781 juta (2000 - RM1,059 juta). Kenaikan
ini adalah disebabkan sambutan positif yang
diterima bagi beberapa produk baru yang
dilancarkan sepanjang tahun dalam tinjauan,
termasuk Skim Anuiti Konvensyenal KWSP
sebelum penggantungannya pada bulan Mei
2001.
Bahagian ini mencatat pertumbuhan premium
perniagaan baru tahunan 109.3% kepada
RM1,348 juta, berbanding RM644 juta pada
tahun sebelumnya, mengatasi kadar
pertumbuhan 27.6% yang dicatat oleh sektor
insuran hayat. Ini membolehkan Syarikat
mengekalkan kedudukan nombor satu dalam
penarafan pasaran pada tahun 2001, yang
dikira berasaskan premium perniagaan baru di
antara 17 syarikat insurans hayat di Malaysia.
Bahagian Insurans Hayat juga memindahkan
RM39 juta dari lebihan akuan pemegang
sahamnya berbanding RM6 juta pada tahun
sebelumnya. Peningkatan ketara dalam
pemindahan lebihan insurans hayat akaun
pemegang saham telah membuktikan selanjutnya
bahawa perniagaan insurans hayat telah
2.
PERNIAGAAN INSURANS AM
Sungguhpun menghadapi persaingan sengit
dalam pasaran, Bahagian Insurans Am
mencatat pertumbuhan premium bertulis kasar
14.9% kepada RM347 juta (2000 - RM302 juta).
Per tumbuhan ini adalah hasil dar ipada
per kembangan rangkaian pengedaran,
penyusunan produk sedia ada mengikut
segmen untuk meningkatkan keuntungan, dan
peluasan sistem dalam talian dengan
rangkaian agensi untuk meningkatkan
perkhidmatan.
Premium perniagaan kenderaan ber motor
meningkat 21.6% kepada RM203 juta (2000 RM167 juta) disebabkan jualan kenderaan
yang meningkat, manakala premium bukan
motor meningkat 6.7% kepada RM144 juta
(2000 - RM135 juta). Dengan pertumbuhan
premium ini, penarafan dari segi pendapatan
premium meletakkan Syarikat di kedudukan
nombor 3 di antara 45 syarikat insurans am di
Malaysia.
Pada tahun yang dilaporkan, keuntungan
sebelum cukai Bahagian ini susut 57.7%
kepada RM11 juta, berbanding RM26 juta pada
tahun sebelumnya. Kemerosotan ini sebahagian
besarnya adalah disebabkan tuntutan lebih tinggi
yang ditanggung oleh perniagaan insurans
kebakaran dan kesihatan serta kenaikan caj
operasi tertentu.
Selain MAA Motorclub yang ditubuhkan pada
t a h u n s e b e l u m nya u n t u k m e n awa r k a n
perkhidmatan percuma kepada pemegang
polisi bagi membaiki kerosakan kenderaan dan
diskaun untuk penyenggaraan ser ta
perkhidmatan am di pusat-pusat pembaikan
yang sah, Bahagian Insurans Am juga telah
memperkenalkan pelbagai perkhidmatan baru.
Antaranya termasuk sistem i-MAA (Intelligent
Mobile Agency Administrator), yang membolehkan
ejen-ejen mengeluarkan E-nota perlindungan,
penyata pengiraan premium, maklumat polisi
dan pembaharuan automatik.
3.
OPERASI ANTARABANGSA
Bahagian insurans luar pantai Kumpulan, MAA
International Assurance Ltd (dahulunya dikenali
sebagai MAA Assurance (L) Ltd) (MAAIA),
meneruskan momentum pertumbuhan yang
menakjubkan pada tahun 2001. Dalam tahun
ke-3 operasinya, MAAIA mencatat pendapatan
premium kasar RM90 juta. Angka ini
menunjukkan pertumbuhan mengagumkan
setinggi 95.7% berbanding RM46 juta pada
tahun sebelumnya. Perniagaan insurans
semula Hayat dan Am menyumbang 73.2%
daripada jumlah pendapatan premium pada
tahun 2001, manakala Maaster International
Investment Plan (produk insurans berkaitan
pelaburan US$) menyumbangkan bakinya.
“Tekanan perniagaan baru”, yang secara
langsung disebabkan oleh kenaikan besar
perolehan daripada premium, tidak menghalang
MAAIA daripada mencatat keuntungan
sebelum cukai sebanyak RM0.3 juta bagi tahun
yang dilaporkan, walaupun jumlahnya lebih
rendah.
MAAIA juga telah menambah modal berbayarnya
sebanyak US$3 juta kepada US$12 juta.
Sebahagian besar daripada suntikan modal
berbayar ini akan digunakan untuk tujuan
pelaburan, khususnya untuk membeli syarikatsyarikat insurans luar negara. Pada bulan Mac
2002, MAAIA telah membeli sebuah syarikat
insurans hayat dan sebuah syarikat insurans
am di Indonesia, iaitu P.T. MAA Life Assurance
(dahulunya dikenali sebagai P.T. Asuransi Jiwa
Mega Artha Aliansindo) dan P.T. MAA General
Assurance (dahulunya dikenali sebagai P.T.
Asuransi Multi Artha Aliansindo). MAAIA juga
sedang menguruskan pembelian sebuah
syarikat insurans am di Filipina dan sedang
menunggu kelulusan daripada pihak berkuasa
berkaitan di Filipina. Urusan pembelian ini
dijangka selesai pada tahun 2002.
Perkhidmatan bantuan kerosakan percuma untuk ahli MAA MotorClub
Free emergency breakdown service is available for all MAA MotorClub members
19 • MAA Holdings Berhad (471403-A)
Kemudahan mesin ATM MAA disediakan untuk kemudahan pelanggan
MAA ATM facilities are available for customers’ convenience
meluluskan terbitan Bon MAAH dan seterusnya
PELABURAN
membolehkan Bon itu diterbitkan pada 21 Ogos
2001.
Prestasi Bursa Saham Kuala Lumpur (BSKL) yang
lebih baik menjelang separuh kedua tahun 2001
2. Di Mesyuarat Agung Luar Biasa yang diadakan
membolehkan Kumpulan mencatat kenaikan besar
jumlah pendapatan pelaburan 77.6% kepada RM135
pada 11 Ogos 2000, para pemegang saham
juta (2000 - RM76 juta). Bagaimanapun, pelaburan
telah meluluskan penyertaan Syarikat dalam
pendapatan tetap terus menguasai sebahagian
cadangan Skim Perjanjian Tajo Berhad dengan
besar portfolio pelaburan, mewakili 91.7% daripada
para pemiutangnya (“Skim Tajo”).
jumlah pendapatan pelaburan.
Tajo Berhad telah menyemak semula Skim Tajo
Kumpulan akan terus melaksanakan dasar
dalam satu pengumuman kepada Bursa
pelaburan yang konservatif, dengan penekanan
Saham Kuala Lumpur pada 20 Disember 2000.
kepada perlindungan dan keselamatan modal, serta
Skim yang disemak semula itu telah dikemukakan
keuntungan dan aliran pendapatan yang konsisten
kepada pihak berkuasa berkaitan untuk diluluskan.
untuk mengimbangi pergolakan pasaran. Pelaburan
Selain kelulusan daripada pihak berkuasa
pendapatan tetap dijangka kekal menguasai porfolio
berkaitan, Tajo Berhad memerlukan persetujuan
utama, dengan bon terus menjadi instrumen pilihan
dan kelulusan daripada para pemiutangnya.
memandangkan perolehannya yang lebih baik
Sehingga kini, urusan yang berkaitan dengan
berbanding deposit tetap dan tunai.
Skim Tajo masih belum selesai.
STATUS CADANGAN-CADANGAN
KORPORAT
1.
Pada 5 Mac 2001, Lembaga Pengarah telah
mengumumkan keputusan untuk tidak meneruskan
cadangan tawaran jualan persendirian sehingga
11 juta saham biasa bernilai RM1 setiap satu
yang membentuk sebahagian daripada skim
penyusunan semula Kumpulan pada tahun
1999 disebabkan pasaran ekuiti yang tertekan.
Sebagai menggantikan cadangan tawaran
jualan persendirian itu, MAA Holdings Berhad
(MAAH) telah melaksanakan terbitan bon
bersiri tersusun 6 tahun dengan nilai nominal
RM120 juta (Bon).
Pada 6 Julai 2001, Suruhanjaya Sekuriti telah
3.
Pada 31 Mei 2000, Lembaga Pengarah telah
mencadangkan Terbitan Bonus satu (1) saham
baru bagi setiap tiga (3) saham biasa yang sedia
dipegang, tertakluk kepada kelulusan para
pemegang saham dan pihak berkuasa yang
berkaitan.
Terbitan Bonus ini telah diluluskan oleh para
pemegang saham di Mesyuarat Agung Luar
Biasa Syarikat yang diadakan pada 24 November
2000. Ia membabitkan terbitan sehingga
37,833,166 saham biasa baru bernilai RM1
setiap satu, yang dikreditkan sebagai berbayar
penuh berdasarkan satu (1) saham biasa baru
bernilai RM1setiap satu bagi setiap tiga (3)
saham biasa bernilai RM1setiap satu yang
dipegang, dengan menggunakan sejumlah
RM37,833,166 daripada keuntungan tertahan
Syarikat sebanyak RM53,867,547 berdasarkan
akaun terbaru yang sudah diaudit pada 31
Disember 1999. Pada 18 Januari 2001, 37,314,468
saham biasa baru RM1 setiap satu yang
diterbitkan sebagai terbitan bonus telah
disenaraikan di Bursa Saham Kuala Lumpur.
JAMINAN KUALITI
Anak syarikat milik penuh Kumpulan, Malaysian
Assurance Alliance Berhad (MAA), telah mendapat
pengiktirafan ISO 9002 daripada Lloyd’s Register
Quality Assurance (LRQA). Pengiktirafan ini
membuktikan komitmen dan usaha berterusan
Kumpulan untuk memberikan perkhidmatan yang
berkualiti kepada pelanggan dan mengekalkan
keyakinan dan kepercayaan mereka terhadap MAA
TADBIR URUS
Sebagai sebahagian daripada usaha yang
berterusan untuk memperbaiki tadbir urus dan
mengekalkannya di tahap paling tinggi, Kumpulan
telah menyusun rancangan-rancangan untuk
meningkatkan produktiviti dan kecekapan operasi,
menerusi pengurusan kewangan yang cekap dan
cermat, peningkatan peranan teknologi maklumat
dan komunikasi, serta amalan-amalan
terbaik dalam proses perniagaan dalaman,
selaras dengan prinsip-prinsip dan amalan
terbaik yang baru dikuatkuasakan dalam
Kod Tadbir Urus Malaysia dan semakan
semula Keperluan Penyenaraian BSKL.
sebagai usaha menyediakan maklumat mengenai
kerjaya secara percuma untuk orang ramai,
khususnya para pelajar dan ibu bapa. Maklumat yang
boleh didapati dengan mudah menerusi laman web
ini akan membolehkan mereka merancang laluan
kerjaya yang sesuai dengan minat dan tahap
kemampuan mereka. Bagi tujuan yang sama,
Kumpulan juga telah memperuntukkan pinjaman
pendidikan tanpa faedah berjumlah RM500 juta
kepada pemohon-pemohon yang layak.
PROSPEK
Ekonomi Malaysia dijangka beransur pulih pada
tahun 2002 dan pertumbuhan KDNK diramalkan 3%
- 5%. Prospek pemulihan ekonomi Malaysia yang
menggalakkan ini, disertakan dengan kemajuan
berterusan dalam pembangunan yang dilaksanakan
di bawah Pelan Induk Sektor Kewangan untuk
memperkukuhkan industri insurans, meningkatkan
kesedaran dan pendidikan pengguna dalam usaha
membangunkan masyarakat celik insurans, akan
membolehkan sektor insurans terus mencatat
pertumbuhan pada tahun 2002.
Meskipun masa depan industri insurans dijangka
positif dan menggalakkan, Kumpulan akan terus
berusaha memperbaiki kualiti perkhidmatannya
kepada pelanggan dan meningkatkan proses
KHIDMAT MASYARAKAT
Dalam usaha untuk menjadi warga korporat
yang prihatin dan bertanggungjawab,
Kumpulan terus meluaskan rangkaian
klinik dialisis buah pinggangnya untuk
menampung keperluan semakin ramai
pesakit baru.
Setakat ini, Kumpulan telah menubuhkan
lapan (8) pusat dialisis buah pinggang yang
dilengkapi 116 unit mesin haemodialisis.
Memandangkan permintaan bagi subsidi
perkhidmatan perubatan seper ti itu
sentiasa meningkat, Kumpulan akan terus
memperuntukkan sumber-sumber
selanjutnya untuk membesarkan lagi klinik
yang ada dan membuka klinik-klinik baru
pada masa akan datang.
Sebagai menyahut seruan kerajaan
Malaysia kepada syarikat-syarikat korporat
supaya membangunkan masyarakat yang
berpendidikan dan berilmu pengetahuan,
Kumpulan telah melancarkan portal laman
web yang dinamakan “career.edu.my”
Kakitangan yang berdedikasi merupakan sumber kekukuhan
syarikat
The staff of MAA are the company’s pillars of strength
21 • MAA Holdings Berhad (471403-A)
kawalan dalaman bagi menjimatkan lagi kos. Pada
tahun yang dilaporkan, Kumpulan telah membentuk
pakatan strategik dengan bank-bank terkemuka
untuk mendapatkan saluran pengedaran alternatif
bagi meningkatkan daya saingan dan akses ke
dalam pasaran-pasaran lain. Kumpulan akan terus
meninjau peluang-peluang dalam bidang ini untuk
memanfaatkan kos pengedaran lebih murah bagi
produk dan perkhidmatannya.
Untuk memenuhi pelbagai permintaan pengguna
yang semakin meningkat, Kumpulan akan terus
menyusun dan memperkenalkan produk inovatif
yang dapat memenuhi keperluan insurans dan
pelaburan mereka. Selain Rancangan Pelaburan
Antarabangsa Maaster MAAIA yang menawarkan
peluang kepada pelabur untuk mempelbagaikan
pelaburan mereka di peringkat antarabangsa,
Kumpulan juga telah menceburi industri unit amanah.
Pada bulan Februari 2002, Kumpulan melancarkan
dana unit amanahnya, yang dinamakan Dana MAA
Mutual Growth, Dana MAA Mutual Bond dan Dana
MAA Mutual Progress, menerusi anak syarikatnya,
MAA Mutual Berhad. Pelaburan yang dibenarkan
untuk gabungan ketiga-tiga dana ini ialah RM1 bilion.
Kumpulan juga sedang berusaha untuk menceburi
industri pengurusan aset, selaras dengan
matlamatnya untuk menjadi kumpulan perkhidmatan
kewangan penuh.
Sambil meneruskan usaha untuk kekal sebagai
Kumpulan yang inovatif dan sentiasa berpegang
kepada amalan-amalan terbaik bagi menyokong
pertumbuhan perniagaan teras kami, Kumpulan
akan terus melabur dalam pembangunan sumber
manusia dalam usaha melahirkan tenaga kerja dan
pasukan agensi yang berkelayakan, cekap dan proaktif.
Berasaskan kekuatan kewangan yang semakin
Kaunter pertanyaan dan perkhidmatan
The enquiries counter - ready to attend to your needs
mantap, disertakan infrastruktur sedia ada yang luas
dan kukuh, Kumpulan yakin dengan prospek masa
depannya.
DIVIDEN
Lembaga Pengarah telah mencadangkan
pembayaran dividen pertama dan akhir dikecualikan
cukai sebanyak 5% (2000 - 5%) bagi tahun berakhir
31 Disember 2001.
TERBITAN SAHAM
Pada tahun yang dilaporkan, sejumlah 37,346,799
saham baru bernilai RM1 setiap satu telah diterbitkan
sebagai saham terbitan bonus Kumpulan dan di
bawah Skim Opsyen Saham Kakitangan.
PENGIKTIRAFAN DAN PENGHARGAAN
Bagi pihak Lembaga Pengarah, saya ingin
mengucapkan terima kasih kepada pihak
pengurusan dan kakitangan di atas komitmen,
dedikasi dan sumbangan berterusan mereka, dalam
memastikan pertumbuhan dan kejayaan berterusan
Kumpulan.
Saya juga ingin mengambil kesempatan ini untuk
merakamkan penghargaan kepada badan-badan
pengawal selia, di atas bimbingan dan sokongan
mereka yang berterusan; kepada para pelanggan,
ejen-ejen, sekutu perniagaan dan para pemegang
saham kami yang dihargai di atas sokongan,
keyakinan, kesetiaan dan kepercayaan mereka
terhadap kami.
Akhir kata, saya ingin mengucapkan terima kasih
kepada rakan-rakan sejawat saya dalam Lembaga
Pengarah, yang sentiasa memberikan pandangan
bernas dan sumbangan yang tidak ternilai kepada
Kumpulan.
TUNKU TAN SRI ABDULLAH IBNI ALMARHUM
TUANKU ABDUL RAHMAN
Pengerusi
Perkhidmatan kami sentiasa mesra dan cekap
You are always assured of friendy and efficient service
CHAIRMAN’S STATEMENT
As reported by Bank Negara Malaysia in the
Insurance Annual Report 2001, notwithstanding the
global economic slowdown, the insurance industry
recorded a positive growth of 12.4% in combined
premium income for both life and general insurance
businesses.
MAA Group was able to ride on the continuing growth
of the Malaysian insurance industry and enjoyed
another successful year in 2001. The total operating
revenue of the Group increased significantly by
57.5% to RM2,280 million (2000 - RM1,448 million).
Group profit before taxation also increased by 88.0%
to RM47 million compared to RM25 million in the
preceding year. The higher profit in the year under
review reflets the better performance of the Life
Insurance Division and write back of provision for
diminution in value of quoted equity investments
following an improved domestic stock market.
On behalf of the Board of Directors, it is my pleasure
to present the Annual Report and Accounts of the
MAA Group for the year ended 31 December 2001.
Total assets of the Group increased further by 57.1%
to RM4.32 billion (2000 - RM2.75 billion).
OPERATING RESULTS
2001 was a tough year with the
global economic turmoil affecting
almost every country in the world.
Malaysia, being one of the larger
trading nations, was certainly not
immune to this economic slowdown.
After the Sept 11 terrorist attacks
in the US, there were downward
revisions to earlier economic
forecasts, pointing to a fur ther
softening of the Malaysian economy.
The Malaysian gover nment’s
estimate of the GDP growth for year
2001 was revised from about 4% to 0%.
I n r e s p o n s e , t h e M a l ay s i a n
government introduced its RM4.3
billion stimulus package as part of
its efforts to pump the economy back
to health. This was in addition to the
RM3.0 billion stimulus package
announced earlier in 2001. These
measures proved effective in
maintaining domestic consumption
and the economy managed to avoid
a recession by recording a GDP
growth of 0.4 % in 2001.
A full house at the MAA Auditorium during one of MAA’s many product launches
23 • MAA Holdings Berhad (471403-A)
Agents are constantly offered courses to enhance their skill and knowledge
CORPORATE ACHIEVEMENT
preceding year. This market increase in the
transfer of life insurance sur plus to
shareholders’ account further substantiates that
the life insurance business has surpassed its
“new business strain” period. Therefore the Life
Insurance Division’s profits in ensuing years can
be expected to achieve sustainable strong
growth. After the transfer of profit to the
shareholders’ accounts, the overall life surplus
fund remains healthy with a cumulative surplus
carried forward of RM333 million as at 31
December 2001.
The Group was indeed proud that in November 2001,
MAA Assurance was awarded “Life Insurance
Company of the Year 2001” at the prestigious 5th
Asia Insurance Industry Awards held in Singapore,
competing with over 400 nominations from across
the region.
REVIEW BY BUSINESS DIVISIONS
1.
LIFE INSURANCE DIVISION
The Life Insurance Division continued its
expansion with a robust growth of 68.2% in its
total premium income to RM1,781 million (2000
- RM1,059 million). The increase is due to the
positive response received for several new
products launched during the year, including
the EPF’s Conventional Annuity Scheme before
its suspension in May 2001.
In terms of annualised new business premiums,
the Division registered a growth of 109.3 % to
RM1,348 million as compared to RM644 million
in the preceding year, outperforming the 27.6%
growth recorded by the Life insurance sector.
Hence, in 2001 the Company maintained its
number one position in market ranking in terms
of new business premiums amongst the 17 life
insurance companies in Malaysia.
The Life Insurance Division also transferred
RM39 million of its surplus to the shareholders’
account,as compared to RM6 million in the
2.
GENERAL INSURANCE BUSINESS
Despite intense and stiff market competition,
the General Insurance Division recorded a
growth of 14.9% in gross written premium to
RM347 million (2000 - RM302 million). This
improvement was a result of expansion in
distribution network, segmentation of existing
products for profitability and expansion of an
on-line system with agencies for improved
services.
Motor vehicle business premiums increased by
21.6% to RM203 million (2000 - RM167 million)
due to the favourable sale of motor vehicles
whilst Non-motor premiums increased
marginally by 6.7% to RM144 million (2000 RM135 million). With the premium growth, the
market ranking in terms of premium income
places the Company at number 3 amongst the
45 general insurance companies in Malaysia.
Profit before taxation of the Division decreased
by 57.7% to RM11 million as compared to
RM26 million in the preceding year. The
decrease is due mainly to higher claims
incurred for fire and health insurance
businesses and increase in certain operating
charges.
In addition to the MAA Motorclub that was set
up in the preceding year to provide
policyholders free motor breakdown service
and discounts for maintenance and general
services by authorised repair centres, the
Division also introduced various new services.
These included i-MAA (Intelligent Mobile
Agency Administrator), a system that enables
agents to produce E-cover notes, premium
computations, policy information and automatic
renewal intentions.
3.
INTERNATIONAL OPERATIONS
MAA International Assurance Ltd (formerly
known as MAA Assurance (L) Ltd) (MAAIA),
the offshore insurance arm of the Group
continued its impressive growth momentum
during 2001. In its 3rd year of operations,
MAAIA achieved a gross premium income of
RM90 million for the year, an impressive 95.7%
growth compared to RM46 million in the
preceding year, with Life and General
reinsurance businesses accounting for 73.2%
of the total premium income for 2001, whilst
the Maaster International Investment Plan (i.e.
US$ investment-linked insurance products)
accounted for the balance. Despite the
inevitable “new business strain” as a direct
result of the substantial increase in premium
turnover, MAAIA still managed to post a healthy,
albeit, lower profit before taxation of RM0.3
million for the year.
During the year , MAAIA increased its paid up
capital by US$3 million, to US$12 million. The
bulk of the increased paid up capital will be used
for investment purposes, particularly acquisition
of overseas insurance companies. In March
2002, MAAIA acquired a life and a general
insurance company in Indonesia, namely, P. T.
MAA Life Assurance (formerly known as P. T.
Asuransi Jiwa Mega Artha Aliansindo) and P.
T. MAA General Assurance (formerly known as
P. T. Asuransi Multi Artha Aliansindo). MAAIA
is also looking at acquisition of a general
insurance company in the Philippines. The
acquisition of this company is pending approval
from the relevant authorities in the Philippines
and is expected to be completed in 2002.
INVESTMENTS
Following to the better performance in the Kuala
Lumpur Stock Exchange (KLSE) towards the second
half of the year, the Group’s total investment income
registered a significant increase of 77.6% to RM135
million (2000 - RM76 million). Fixed income
investments however continue to account for the bulk
of the investment portfolio representing 91.7% of total
investment income.
The MAA breakdown maintenance team ready to meet any emergency
25 • MAA Holdings Berhad (471403-A)
Sound investments have rewarded policyholders with favourable investment income
The Group will continue its conservative investment
philosophy that emphasises capital preservation,
security, profitability and consistent income flows to
hedge against volatility. Fixed income investments
are expected to remain the core portfolio with bonds
being the preferred instrument in view of their
relatively better yields compared to fixed and cash
deposits.
STATUS OF CORPORATE PROPOSALS
1.
2.
the relevant authorities, Tajo Berhad will require
its creditors to approve and accept the revised
Scheme. Todate the Tajo Scheme has been
revised and is not completed yet.
3.
On 31 May 2000, the Board of Directors had
proposed a Bonus Issue of one (1) new ordinary
share for every three (3) existing ordinary
shares held subject to the approvals of the
shareholders and the relevant authorities.
On 5 March 2001, the Board of Directors had
announced not to proceed with the proposed
private placement of up to 11 million ordinary
shares of RM1 each that form part of the Group
restructuring scheme carried out in 1999 due
to the depressed equity market. In lieu of the
proposed private placement, MAA Holdings
Berhad (MAAH) has undertaken an issue of
RM120 million nominal value 6 year structured
serial bonds (the Bonds).
This Proposed Bonus Issue was approved by
the shareholders at the Extraordinary General
Meeting of the Company held on 24 November
2000 for up to 37,833,166 new ordinary shares
of RM1 each credited as fully paid-up on the
basis of one (1) new ordinary share of RM1
each for every three (3) existing ordinary shares
of RM1 each held by capitalising a sum of up
to RM37,833,166 from the retained profits of
RM53,867,547 of the Company based on its
latest audited accounts as at 31 December
1999.
On 6 July 2001, the Securities Commission
approved the Bonds issue of MAAH and
subsequently on 21 August 2001, the Bonds
were issued.
On 18 January 2001, 37,314,468 new ordinary
shares of RM1 each issued pursuant to the
bonus issue were listed on the Kuala Lumpur
Stock Exchange.
At the Extraordinary General Meeting held on
11 August 2000, the shareholders had
approved the participation by the Company in
Tajo Berhad’s proposed Scheme of
Arrangement with its creditors (“Tajo Scheme”).
Tajo Berhad has revised the Tajo Scheme in
an announcement to the Kuala Lumpur Stock
Exchange on 20 December 2000. The revised
Scheme has been submitted to the relevant
authorities for approval. Besides approval from
QUALITY ASSURANCE
On the quality front, the Group’s wholly owned
subsidiary company, Malaysian Assurance Alliance
Berhad (MAA) succeeded in retaining its ISO 9002
certification by Lloyd’s Register Quality Assurance
(LRQA). This certification underlines the Group’s
continuous effort and commitment to provide
customers with quality service and retaining their
confidence and trust in MAA.
CORPORATE GOVERNANCE
As part of a continuous effort to improve corporate
governance and maintaining it at the highest level,
the Group has for mulated plans to improve
productivity and operational efficiency, practice
prudent financial management and reinforced further
the role of information and communication
technology, adopts the best practices in its internal
business processes in compliance with the recently
enacted principles and best practices laid out in the
Malaysian Code on Corporate Governance and the
revised KLSE Listing Requirements.
COMMUNITY SERVICE
In its quest to be a responsible and caring corporate
citizen, the Group continued to expand its network
of kidney dialysis clinics to cater for the needs of the
increasing number of new patients.
The number of MEDIcare dialysis centres will
continue to grow in the coming year
RM500 million for interest free study loans for
qualified applicants.
PROSPECTS
The Group has to- date, established eight (8) kidney
dialysis centers equipped with 116 units of
haemodialysis machines. In view of the everincreasing demand for such subsidised medical
services, the Group will continue to allocate further
resources to expand its existing clinics as well as to
open new clinics in the years ahead.
In response to the Malaysian government’s call to
develop a well educated society, the Group launched
a new website portal “career.edu.my” aimed at
providing the public, especially students and parents,
with free and easily available career information that
will enable them to properly plan the career pathway
that suit their interests at affordability levels. Towards
this end, the Group has also allocated a sum of
The Malaysian economy is expected to improve in
2002, with forecast GDP growth of 3% - 5%. The
encouraging prospects of the Malaysian economy,
coupled with the continuing progress and
developments implemented under the Financial
Sector Masterplan to strengthen the insurance
industry, promote consumer awareness and
education to develop an insurance literate
community, will enable the insurance sector to
continue its growth trend in 2002.
Notwithstanding the positive and favourable outlook
of the insurance industry, the Group will continue with
its focus to improve quality of services to customers
and the internal control processes to enhance cost
MAA payment kiosks were introduced giving 24-hour access to policyholders
27 • MAA Holdings Berhad (471403-A)
DIVIDENDS
The Board of Directors has
recommended the payment of a first
and final tax exempt dividend of 5%
(2000 - 5%) for the year ended 31
December 2001.
ISSUE OF SHARES
During the year, a total of 37,346,799
new ordinary shares of RM1.00 each
were issued pursuant to the Group’s
bonus issue and under the Employees’
Share Option Scheme.
Friendly and informative staff are on hand to meet our customers’ demands
efficiency. During the year under review, the Group
formed strategic partnerships with established banks
to gain alternative distribution methods to enhance
its competitiveness and access into other markets.
The Group will continue to explore this area to reap
the potential benefits of cheaper distribution costs
for its products and services.
To meet the varied and increasing demands of
customers, the Group will continue to develop and
introduce innovative products to meet their insurance
and investment needs. Towards this end, in addition
to the MAAIA’s Maaster International Investment
Plan that offers investors an opportunity to diversify
their investments internationally, the Group also
ventured into the unit trust industry. In February 2002,
the Group launched its unit trust funds, namely MAA
Mutual Growth Fund, MAA Mutual Bond Fund and
MAA Mutual Progress Fund via its subsidiary
company, MAA Mutual Berhad. The combined
authorised size of these three funds is RM1 billion.
The Group is also looking to venture into the asset
management industry in the future, in line with it’s
plan to become a full-fledged financial services group.
ACKNOWLEDGEMENT AND
APPRECIATION
On behalf of the Board of Directors, I would like to
thank the management team and staff for their
continued commitment, dedication and contributions
to ensure the continued growth and success of the
Group.
I would also like to take this opportunity to extend
our appreciation to the regulatory bodies for their
continued guidance and support; to our valued
customers, agents, business associates and the
shareholders for their invaluable support, confidence,
loyalty and trust they have placed on us.
Finally, I would like to thank my fellow Board members
for their stewardship and contribution to the Group.
TUNKU TAN SRI ABDULLAH IBNI ALMARHUM
TUANKU ABDUL RAHMAN
Chairman
As we continue to remain
innovative and acquire best
practices to support the growth
of our core business, the Group
will continue to invest in human
resource development to create
a qualified, technically
competent and proactive
workforce and agency force.
Lastly, with the fast improving
financial strength coupled w i t h
t h e e x t e n s i v e infrastructure
already in place, the Group is
confident of its future prospects.
Despite our rapid growth, we still offer personal service
CORPORATE GOVERNANCE STATEMENT
The Board of Directors fully acknowledges the importance of good corporate governance and is taking steps to
evaluate the status of the corporate governance practices adopted by the Group as tabulated below and its
compliance with the code of best practices as set out in Part 1 and Part 2 of the Malaysian Code on Corporate
Governance (“the Code”). Any areas whereby the Company and the Group have not complied with the Code are
explained in this Annual Report.
1.0
Directors
1.1
Composition of the Board of Directors
The Board presently has seven (7) members and is headed by the Chairman, Y.A.M. Tunku Tan Sri
Abdullah Ibni Almarhum Tuanku Abdul Rahman. The Board has five (5) meetings during the financial
year. The profile of each Director is presented separately in the Annual Report.
1.2
Board Balance
The Board has seven (7) members comprising one (1) Non-Executive Chairman, one (1) Group
Managing Director/Chief Executive Officer and five (5) Non-Executive Directors. Two (2) Non-Executive
Directors are Independent Non-Executive Directors.
The Board has appointed Y.Bhg. Major General (Rtd) Lai Chung Wah as the Senior Independent Director
to whom all concerns may be conveyed.
All Board members participate fully in decisions on the key issues involving the Group. The Non-Group
Managing Director/Chief Executive Officer has primary responsibilities for managing the Groups’ dayto-day operations and together with the Non-Executive Directors ensure that the strategies proposed by
the Management are fully discussed and examined, and take into account long term interests of the
various stakeholders including shareholders, employees, clients, suppliers and the various communities
in which the Group conducts its business.
The Board is ensured of a balanced and independent view at all Board deliberations as the Board has as
members, Independent Non-Executive Directors who are independent from Management and major
shareholders of the Company. The Independent Non-Executive Directors are also free from any business
or other relationships that could materially interfere with the exercise of their independent judgement.
Together with the Group Managing Director/Chief Executive Officer who has intimate knowledge of
the Company’s business, the Board is constituted of individuals who are committed to business
integrity and professionalism in all its activities.
As part of its commitment, the Board supports the highest standards of corporate governance and
the development of the best practices for the Group.
In addition to the role of guidance by Independent Non-Executive Directors, each Director brings
independent judgement to bear on issues of strategy, performance, resources and standard of conduct.
1.3
Responsibilities of the Board of Directors
The Board retains full and effective control of the Company. This includes responsibility for determining
the Group’s overall strategic direction as well as development and control of the Group.
1.4
Chairman and Managing Directors
There is a division of responsibilities between the Chairman and the Group Managing Director/Chief
Executive Officer to ensure that there is a balance of power and authority.
29 • MAA Holdings Berhad (471403-A)
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
1.5
Board Structures and procedures
Five (5) Board of Directors’ Meetings were held during the financial year ended 31 December 2001. The
details of the attendance by each of the Directors are as follows:
Member of the Board
Y.A.M. Tunku Tan Sri Abdullah Ibni Almarhum Tuanku Abdul Rahman
Y.M. Tunku Dato’ Seri Iskandar bin Tunku Abdullah
Y.M. Tunku Dato’ Ya’acob bin Tunku Abdullah
Y.Bhg. Tan Sri Dato’ Abu Zarim bin Haji Omar
Y.Bhg. Encik Razman Hafidz bin Abu Zarim
Y.Bhg. Major General (Rtd) Lai Chung Wah
Y.Bhg. Dato’ Iskandar Micheal bin Abdullah
No.of
Attendance
5
4
5
5
5
5
5
%
100
80
100
100
100
100
100
All Directors have complied with the minimum attendance at Board meetings as stipulated in the Listing
Requirements of the Kuala Lumpur Stock Exchange (“KLSE”) during the financial year.
All Directors have also attended the Mandatory Accreditation Programme (“MAP”) organised by the
Research Institute of Investment Analysis (“RIAM”) in accordance with the Listing Requirements of the
KLSE.
1.6
Appointments to the Board
The appointment of any additional Director is made as and when it is necessary by the existing Board
with due consideration given to the mix of skill, expertise and experience required for an effective Board.
1.7
Retirement and Re-election
In accordance with the Articles of Association of the Company, at least one third of the Directors shall
retire by rotation at each Annual General Meeting and can offer themselves for re-election at the Annual
General Meeting (AGM). Directors who are appointed by the Board to fill a casual vacancy are subject to
election by shareholders at the next AGM following their appointment. The Directors shall also retire
from office at least once in three years, but shall be eligible for re-election.
1.8
Supply of Information
The agenda and board papers for each item as well as minutes of meetings are circulated prior to
the Board meetings to give Directors time to deliberate on the issues to be raised at the Board meetings
and to facilitate informed decision making.
In arriving at any decision on the recommendations by the Management, thorough deliberation
and discussion by the Board is a pre-requisite. All proceedings from the Board meetings are minuted
and signed by the Chairman of the meeting in accordance with the provision of Section 156 of the
Companies Act, 1965.
The Board is kept updated on the Company’s activities and its operations on a regular basis. The Directors
also have access to reports on the Company’s activities, both financial and operational.
All Directors have access to the advice and services of the Company Secretary who is responsible for
ensuring that board procedures are followed and the Board may also take independent advice, at the
Company’s expense, in the furtherance of their duties if so required. The Board also has unlimited
access to all information with regard to the activities of the Company.
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
1.9
Relationship of the Board to Management
Quality of Information
Information plays a key role in the Board’s decision-making and in setting up the policies and strategies
of the Company. The Board has unrestricted access to timely and accurate information, which is not
only confined to qualitative and quantitative information, but also to other information deemed suitable
such as customer satisfaction, products and services quality, market share and market reaction, and
macro economic performance.
Access to Information
Prior to the board meetings, all Directors receive an agenda and a Board report containing information
relevant to the business of the meeting including information on major financial, operational and corporate
matters relating to the activities and performance of the Group. This is issued in sufficient time to
enable Directors to obtain further explanation, where necessary, in order to be properly informed before
the meeting.
In addition, there is a schedule of matters reserved specifically for the Board’s decision.
Use of Board Committees
As appropriate, the Board has delegated certain responsibilities to Board Committees which operate
within clearly defined terms of reference. The Committees are:
a. Audit Committee
b. Nomination and Remuneration Committee
c. Employees’ Share Option Scheme Committee
1.10
The Relationship between the Board and the Shareholders
The principal forum for dialogue with shareholders is the AGM, during which the investors are encouraged
to participate and pose questions to the Board regarding operational and financial information. The AGM
also allows investors an opportunity to interact directly with the Board and seek first-hand information on
the above matters. Extraordinary General Meetings are held as and when shareholder’s approvals are
required on specific matters and shareholders are notified of such meetings in accordance with the
KLSE requirements.
2.0
Directors’ Remuneration
2.1
The Level and Make-up of Remuneration
Independent Non-Executive Directors are paid attendance allowance for each Board Meeting. Directors’
fees are also paid to Independent Non-Executive Directors and these are approved by the shareholders
at the AGM. Executive Directors and Non-Executive Directors who represent corporate shareholders on
the Board are not paid attendance allowance or directors’ fees.
31 • MAA Holdings Berhad (471403-A)
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
The remuneration of the Directors of the Company for the financial year ended 31 December 2001 are
set out below:
The number of Directors whose total remuneration falls within the following bands is as follows:
Fees
Executive
Directors (RM)
-
Salaries and allowances
1,301,685
48,200
302,900
-
59,150
-
1,663,735
192,200
Bonus
Other Benefits
Total
Non-Executive
Directors (RM)
144,000
Range of Remuneration
Executive Directors
Below RM50,000
RM50,001 to RM100,000
RM600,001 to RM650,000
RM1,050,001 to RM1,100,000
2.2
1
1
Non-Executive
Directors
4
1
-
Procedure
In compliance with the Listing Requirements of the KLSE, the Board has established a Nomination and
Remuneration Committee. The Committee comprises three Non-Executive Directors, two of whom are
Independent Non-Executive Directors. The members are:
1. Y.Bhg. Major General (Rtd.) Lai Chung Wah - Chairman
2. Y. Bhg. Dato’ Iskandar Micheal bin Abdullah
3. Y.M. Tunku Dato’ Seri Iskandar bin Tunku Abdullah
The Committee’s responsibility, among others, is to propose new nominees for the Board and Board
Committees, to assess directors on an on-going basis, and to annually review the required skills and
core competencies of non-executive directors. The Committee is also responsible in making
recommendation to the Board on the remuneration of directors (executive and non-executive) in all its
forms, drawing from outside advice if necessary. Nevertheless, the determination of remuneration
packages of Directors is a matter for the Board as a whole and individuals are required to abstain from
discussion of their own remuneration.
3.0
Shareholders
3.1
Dialogue between the Company and Investors
The Group values dialogue with investors as a means of effective communication that enables the
Board to convey information about the Group’s performance, corporate strategy and other matters affecting
shareholders’ interests.
The AGM is the principal forum for dialogue with individual shareholders. It is a crucial mechanism in
shareholder communication for the Company. At the Company’s AGM, which is generally well attended,
shareholders have direct access to the Board and are given the opportunity to ask questions during the
open question and answer session prior to moving for approval of the Company’s Audited Financial
Statements and Directors’ Report for the financial year and other businesses (if applicable). The
shareholders are encouraged to ask questions both about the resolutions being proposed or about the
Group’s operations in general.
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
The Chairman of the Board also addresses the shareholders on the review of the Group’s operations for
the financial year and outlines the prospects (of the Group) for the new financial year.
The Board is also committed to ensure that the shareholders and other investors are well informed of
major developments of the Company and the information is also communicated to them through the
following channels:(a) the Annual Report;
(b) various disclosures and announcements made to the KLSE including the quarterly and annual
results; and
(c)
3.2
the Company’s website www.maa.com.my through which shareholders and the public in general
can gain access to the latest corporate information of the Group.
Annual General Meeting
Notice of the AGM and annual reports are sent out to shareholders at least twenty one (21) days before
the date of the meeting.
At the AGM, the Board also provides opportunities for shareholders to raise questions pertaining to the
business activities of the Group. Directors are available to provide responses to shareholders’ questions
during these meetings.
For re-election of directors, the Board will ensure that full information is disclosed through the notice of
meeting regarding directors who are retiring and who are willing to serve if re-elected. Each item of
special business included in the notice of meeting will be accompanied by an explanatory statement for
the proposed resolution to facilitate full understanding and evaluation of issues involved.
4.0
Accountability and Audit
4.1
Financial Reporting
The Board is aware of its responsibilities to shareholders and the requirement to present a balanced and
comprehensive assessment of the Group’s financial position, by means of the annual and quarterly
reports and other published information. In this regard, the Board is primarily responsible for the preparation
of a financial statement to present a fair and balanced report of the financial state of affairs of the Group.
Before releasing to the KLSE, the quarterly financial results are reviewed by the Audit Committee and
approved by the Board of Directors. The details of the Company’s and the Group’s financial positions
are included in the Financial Statements section of the Annual Report.
4.2
Internal Control
The Directors acknowledge their responsibilities for the internal control system in the Company and the
Group, covering not only financial controls but also controls relating to operational, compliance and risk
management. The system of internal control involves each key business unit and its management, including
the Board, and is designed to meet the business units’ particular needs, and to manage the risks to
which they are exposed. The system, by its nature, can only provide reasonable and not absolute
assurance against material misstatement, loss or fraud. The concept of reasonable assurance recognises
the costing aspect, whereby the cost of control procedures is not to exceed the expected benefits.
The Board recognises that risks cannot be fully eliminated. As such, the systems, processes and
procedures being put in place are aimed at minimising and managing. Ongoing reviews are continuously
carried out to ensure the effectiveness, adequacy and integrity of the system of internal controls in
safeguarding the Company’s assets.
33 • MAA Holdings Berhad (471403-A)
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
4.3
Audit Committee
The Audit Committee meets regularly with senior financial and internal audit management, and the
external auditors to review the Company’s and the Group’s financial reporting, the nature and scope of
audit reviews, and the effectiveness of the systems of internal control and compliance.
The terms of reference of the Audit Committee have recently been revised to conform to the Listing
Requirements of the Kuala Lumpur Stock Exchange. The terms of reference and activities of the Audit
Committee during the financial year ended 31 December 2001 are provided separately in this Annual
Report.
4.4
Internal Audit
Currently, the Internal Audit function of the Group is undertaken by the internal audit department of one
of the subsidiary companies. The internal audit is independent of the activities they audit and is performed
with impartiality, proficiency and due professional care. Its role is to provide independent and objective
reports on the organisation’s management, records, accounting policies and controls to the Board. The
internal audits include evaluation of the processes by which significant risks are identified, assessed
and managed. Such audits also ensure instituted controls are appropriate and are effectively applied to
achieve acceptable risk exposures in line with the Group’s risk management policy.
4.5
Relationship with Auditors
The Company’s external auditors, Messrs. PricewaterhouseCoopers have continued to report to members
of the Company on their findings, which are included as part of the Company’s financial reports with
respect to each year’s audit on the statutory financial statements. In doing so, the company has established
a transparent arrangement with the auditors to meet their professional requirements. From time to time,
the auditors highlight to the Audit Committee and Board of Directors, matters that require the Board’s
attention.
5.0
Directors’ Responsibility Statement for preparing Financial Statements
The Board of Directors are required under Paragraph 15.27(a) of the Listing Requirements of the KLSE
to issue a statement explaining their responsibility in the preparation of the annual financial statements.
The Directors are satisfied that in preparing the financial statements of the Group for the year ended 31
December 2001, the Group has used the appropriate acounting policies and applied them consistently
and prudently. The Directors are of the oponion that all relevant accounting standards have been followed
and confirm that the financial statements have been prepared on a going concern basis.
CORPORATE GOVERNANCE STATEMENT (CONTINUED)
6.0
Additional Compliance Information
In conformance with the Listing Requirements of the Kuala Lumpur Stock Exchange, the following
information is provided:
1. Disclosures
The Group took all necessary steps to ensure that transactions which were deemed to be ‘related
party transactions’ were appropriately disclosed in accordance with the Listing Requirements of the
Kuala Lumpur Stock Exchange, and convening general meetings to obtain shareholders’ mandate for
recurrent related party tansactions. Significant related party transactions are disclosed in Note 34 to
the Financial Statements.
2. Bonds, options, warrants or convertible securities
During the financial year, the Company issued a RM120 Million 6-year structured serial bonds (“the
Bonds Issue”). The particulars of the Bonds Issue are disclosed in Note 11 to the Financial Statements.
Save for the Bonds Issue, no options, warrants or convertible securities were issued by the Company
during the financial year.
3. Imposition of sanctions/penalties
The particulars of sanctions and/or penalties imposed on the Company, its subsidiaries, directors or
management for the financial year ended 31 December 2001 are as follows:
Name of Company
Regulatory Body
Breach
Penalty
Malaysian Assurance
Alliance Berhad
Malaysian Assurance
Alliance Berhad
Bank Negara Malaysia
Section 73 of
Insurance Act 1996
Section 150(4) of
Insurance Act 1996
RM5,000
.
Bank Negara Malaysia
RM10,000
35 • MAA Holdings Berhad (471403-A)
AUDIT COMMITTEE REPORT
The Audit Committee comprises the following directors majority of whom are independent non-executive directors:
1. Y. Bhg. Major General (Rtd) Lai Chung Wah (Chairman - independent non-executive director)
2. Y.M. Tunku Dato’ Seri Iskandar bin Tunku Abdullah (non-independent non-executive director, resigned with
effect from 31.5.2001)
3. Y. Bhg. Dato’ lskandar Michael bin Abdullah (independent non-executive director, appointed with effect from
30.4.2001)
4. Y.M. Tunku Dato’ Ya’acob bin Tunku Abdullah (Group Managing Director / Chief Executive Officer, appointed
with effect from 31.5.2001)
Y. Bhg. Major General (Rtd) Lai Chung Wah is the Chairman of the Audit Committee.
The Audit Committee meets regularly with senior management and internal audit management, and the external
auditors to review the Company’s and the Group’s financial reporting, the nature and scope of audit reviews and
the effectiveness of the systems of internal control and compliance.
The terms of reference of the Audit Committee have recently been revised to conform to the Listing Requirements
of the Kuala Lumpur Stock Exchange. The activities of the Audit Committee during the financial year ended 31
December 2001 are set out below.
SUMMARY OF ACTIVITIES OF THE AUDIT COMMITTEE AND
THE INTERNAL AUDIT FUNCTIONS
During the financial year ended 31 December 2001, the Audit Committee comprising the following members
held a total of six (6) meetings. The details of attendance of the Committee members are as follows:
Name of Committee
Y. Bhg. Major General (Rtd) Lai Chung Wah
Y.M. Tunku Dato’ Seri Iskandar bin Tunku Abdullah
Y. Bhg. Dato’ lskandar Michael bin Abdullah
Y.M. Tunku Dato’ Ya’acob bin Tunku Abdullah
No. of
Meetings
6/6
3/3
4/4
3/3
Percentage of
attendance
100%
100%
100%
100%
The Committee has reviewed the quarterly results and annual financial statements of the Company and the
Group prior to their approval by the Board.
The Committee has also reviewed the annual internal audit plan and the results of work carried out by the
internal audit function. Where necessary, the Committee directed actions to be taken by management to rectify
and improve the system of internal controls and procedures.
The internal auditors closely monitored the implementation progress of their audit recommendations in order to
obtain assurance that all key risk and control concerns have been duly addressed. The internal auditors also
provided advice on internal control best practices.
TERMS OF REFERENCE
1.0
Composition
The Audit Committee shall be appointed from among the directors and should consist of no fewer than
three (3) members, a majority of whom shall be independent directors. One (1) member of the Committee
at least: i) must be a member of the Malaysian Institute of Accountants (“MIA”); or
ii) if he is not a member of the MIA, he must have at least 3 years’ working experience and: • he must have passed the examinations specified in Part 1 of the 1st Schedule of the Accountants
Act 1968; or
• he must be a member of one of the associations of accountants specified in Part 11 of the 1st
Schedule of the Accountants Act 1967.
No alternate director shall be appointed as a member of the Audit Committee.
The members of the Committee shall elect among them an independent non-executive director as the
chairman of the Committee.
In the event of any vacancy in the Audit Committee resulting in the number of members being reduced to
below three, the Company must fill the vacancy within three months.
2.0
Authority
The Audit Committee shall be granted the authority to investigate any activity of the Company and its
subsidiaries within its terms of reference and all employees shall be directed to cooperate as and when
required by the Audit Committee. The Committee shall also be empowered to consult Independent experts,
where necessary, to assist in executing its duties and shall have direct communication channels with the
external and internal auditors.
3.0
Meetings
The Committee shall meet at least three (3) times a year and such additional meetings as the Chairman
shall decide in order to fulfil its duties. In addition, the Chairman may call a meeting of the Audit Committee
if a request is made by any committee member, the Company’s Chief Executive, or the internal or external
auditors.
Other Board members and employees may attend meetings upon the invitation of the Audit Committee.
However, at least once a year, the Committee shall meet with the external auditors without any executive
Board member present. In order to form a quorum, the majority of members present must be independent
directors.
4.0
Quorum
A quorum shall consist of a majority of Committee members who are non-executive directors.
5.0
Responsibilities and Duties of the Committee
The Committee shall discharge the following functions:
(a) To review:
i. with the external auditors their audit plan scope and nature of audit for the Company and the
Group;
ii.
with the external auditors their evaluation of the systems of internal controls of the Group and
audit findings;
iii. any problems and reservations arising from the interim and final external audits, and any matters
the external auditors may wish to highlight;
iv. the assistance given by the Company’s officers to the internal and external auditors;
v.
the adequacy of the scope, functions and resources of the internal audit functions and that it has
the necessary authority to carry out its work;
vi. the internal audit programme, processes, the results of the internal audit programme, processes
or investigation undertaken and whether or not appropriate action is taken on the recommendations
of the internal audit function;
37 • MAA Holdings Berhad (471403-A)
vii. the quarterly results and year end financial statements of the Company, prior to approval by the
Board of Directors, focusing particularly on:
• changes in or implementation of major accounting policy changes;
• significant and unusual events; and
• compliance with accounting standards and other legal requirements.
viii. any related party transactions and conflict of interest situation that may arise within the Company
or Group including any transaction, procedure or course of conduct that raises questions
of management integrity.
(b) to recommend the appointment of the external auditors and in relation thereto, to discuss their audit
fees and any questions of resignation or dismissal.
(c) to monitor organisational compliance with statutory and KLSE’s requirements.
(d) to perform any other functions as may be mutually agreed by the Committee and the Board of
Directors.
6.0
Secretary
The Secretary of the Company shall also be the Secretary of the Committee. The Secretary shall be
responsible for drawing up the agenda in consultation with the chairperson and shall be responsible for
keeping the minutes of the meeting of the Committee, circulating them to committee members and
ensuring compliance with Kuala Lumpur Stock Exchange requirements. The agenda together with relevant
explanatory papers and documents shall be circulated to committee members prior to each meeting.