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02
Vision and Mission
03
Notice of Annual General Meeting
04
Statement Accompanying Notice of
Annual General Meeting
06
Corporate Information
07
Board of Directors
08
Board Committee
12
Management Committee
12
Audit Committee Report
13
Statement on Internal Control
20
Corporate Structure
22
Financial Highlights
24
Chairman’s Statement
26
CEO’s Review
27
Calendar of Events
32
Financial Statement
33
Analysis of Shareholding
112
List of Landed Properties
115
Corporate Directory
124
Form of Proxy
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History
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Contents
ANNUAL REPORT 2003 | 1
History
Padiberas Nasional Berhad (BERNAS) came into being with
the taking over of Lembaga Padi dan Beras Negara’s (LPN)
role as the custodian of Malaysian paddy and rice industry
when the latter was privatised in January 1996. BERNAS
continued to perform an important role in the national paddy
and rice industry and also assumed all social and commercial
obligations previously undertaken by LPN. These include
conserving, maintaining and managing the National Paddy/
Rice Stockpile, representing the government on the
management and disbursement of subsidies to paddy
farmers, managing the Bumiputera Rice Miller Scheme,
purchasing paddy from farmers at guaranteed minimum price
and acting as the buyer of last resort. In return, BERNAS was
given the responsibility to be the sole importer of rice into
Malaysia till 2010, with the option for renewal for another
five years, subject to approval. On 25 August 1997, BERNAS
was listed on the Kuala Lumpur Stock Exchange main board,
marking a historical significance.
BERNAS has continued to evolve through the integration of
its supply chain with existing players at the international level
of wholesaling, farming, processing and supplying. With this
solid foundation, BERNAS has managed to overcome
challenges including the 97/98 regional financial crisis.
As a corporate citizen, BERNAS is dedicated towards
ensuring continuous rice supply at affordable prices to feed
the nation, by optimising its supply network, infrastructure
and distribution network. It also places particular concern on
improving its environmental management, emphasising on
effective rice husk disposal as well as diversification into
other product lines utilising the potential of its by-products.
Today, BERNAS is just as committed to remain as a
responsible organisation in meeting and possibly exceeding
the needs of consumers, providing optimum return to its
shareholders and a stimulating and satisfying working
environment for its 1,697 employees. Achievement of our
objectives remains as the driving force in herding the
organisation to greater heights of success and
acknowledgement.
Diversification into other related business activities has led
to greater market penetration and a more established ground.
The Group is currently working to emerge as a world-class
competitor following the Asean Free Trade Area.
2 | ANNUAL REPORT 2003
Looking ahead, in facing the challenges of globalisation,
BERNAS will continue its endeavour into new and profitable
frontiers – synergising with other food producers, enhancing
its diversification of resources into related and other
businesses, deepening linkages with related sectors to
increase its product range and services; to provide the very
best of variety and excellence in its mission to attain a
competitive edge in the era of globalisation.
Vision
As a leading force in the Malaysian rice industry, we aspire to
sustain significant presence in the rice business of Asia. Beyond
that, we envisage ourselves venturing into new frontiers to
emerge as a well-diversified food conglomerate – in line with
our strategic direction to strengthen our position as a leading
player in the food industry in Asia. In conducting our business,
we solemnly pledge to always uphold the Malaysian flag in
consideration of our nation’s overall perspective.
Mission
Along the journey to achieve our humble vision, we will
execute our obligations with full commitment balancing all
requirements of stakeholders, whilst ensuring optimum return
to our shareholders emphasising on the highest standards in
quality, distribution and service to our customers.
ANNUAL REPORT 2003 | 3