What s Inside - Bursa Malaysia Berhad - Investor Relations

Transcription

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Kuala Lumpur Stock Exchange Annual Report 2001
Strengthening Corporate Governance
Corporate governance is essential for investor confidence and enhancement of shareholder
value. It is only with high standards of corporate governance that a secure and vibrant market
can be cultivated, one which is premised on the principles of fairness, integrity, transparency
and accountability.
What s Inside
2
Corporate Information
40
Management Team
5
Highlights
45
KLSE Group
7
Executive Chairman s
Statement
73
Calendar of Events
25
Market Report
31
Issues in Focus
38
Committee Members
79
Financial Statements
118
KLSE Sub-Committees
120
New Listings
122
Monthly High, Low and
Closing Indices*
124
Market Indicators
131
Membership Report
137
KLSE Members
148
Notice of
Annual General Meeting
Form of Proxy/
Certificate of Representation
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KUALA LUMPUR STO C K
EXCHANGE (KLSE)
M A L AYSIA DERIVATIVES
EXCHANGE BERHAD (MDEX)
(30632-P)
(261937-H)
Committee Members
Dato Mohammed Azlan Hashim
(Executive Chairman)
Datuk Mohaiyani Shamsudin
(Deputy Chairman)
Tan Kim Leong
Abdul Kadir Hj Md Kassim
Abdul Jabbar Abdul Majid
(appointed w.e.f 18.1.2001)
Chan Guan Seng
Abdul Wahab Nan Abidin
Peter Leong Tuck Leng
Yusli Mohamed Yusoff
Iskander Ismail
W ong Fook Wah
Dato
Mohammed Azlan Hashim
Dato
Hwang Sing Lue
Md Nor Ahmad
(appointed w.e.f. 2.2.2001)
Dato Ranita Mohd Hussein
(resigned w.e.f 31.12.2000)
Abang Zainal Abidin Abang Ahmad
Alvin Kwan Wing Yew
Johari Hassan
Khairussaleh Ramli
(Alternate director to Dato
Mohammed Azlan Hashim)
Deputy President I
Md Nor Ahmad
Malayan Banking Berhad
RHB Bank Berhad
Hong Leong Bank Berhad
Registered Office
Malaysia Derivatives Exchange
Berhad
10th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2070 8199
LABUAN INTERNATIONAL
FINANCIAL EXCHANGE INC
(LFX)
(LL02032)
Tunku Dato Seri Nadzaruddin Tuanku
Ja afar
President
Dato Mohd Salleh Abdul Majid
Omar Malek Ali Merican
K Sree Kumar
Deputy President II
Ungku A Razak Ungku A Rahman
Company Secretaries
Ahmad Aznan Mohd Nawawi
Board of Directors
(Chairman)
Dato Ahmad Johan Raslan
Company Secretaries
Nor Hakimah Abdul Latif
Exchange Committee Members
Tan Sri Wan Azmi Wan Hamzah
(Chairman)
Azman Shah Md Yaman
Ramli Ibrahim
Auditors
Arthur Andersen & Co
Chief Operating Officer
Dr Zaha Rina Zahari
Dr Mohamed Arif Nun
Tax Consultants
(Tax and Business Advisory)
General Manager
Raghbir Singh Bhart
Md Nor Ahmad
Company Secretaries
Manoj Devadasan
Chin Chee Kee
Auditors
Dr Ghazali Atan
Tax Consultants
General Manager
S. Loganathan
Bankers
Bumiputra-Commerce Bank Berhad
Hongkong Bank Malaysia Berhad
Southern Bank Berhad
Registered Office
Kuala Lumpur Stock Exchange
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 7099
Fax: 03-2026 3684
2
Board of Directors
Bankers
Mohd Nasir Ali
Larry Gan
Ridzuan Salleh
Izzuddin Tajudin
Prof Madya Dr Mohd Daud Bakar
Secretary
Auditors
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General Manager
Bankers
Company Secretaries
Azman Shah Md Yaman
Auditors
Tax Consultants
Bankers
Alliance Bank Berhad
Southern Bank Berhad
Registered Office
KLSE Property Management Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 7099
Fax: 03-2026 3684
M A L AYSIAN CENTRAL
DEPOSITO RY SDN BHD (MCD)
(165570-W)
Board of Directors
Standard Chartered Bank (M) Berhad
Tan Kim Leong
SECURITIES CLEARING
AUTO M ATED NETWORK
S E RVICES SDN BHD (SCANS)
(109716-D)
Board of Directors
Registered Office
Securities Clearing Automated
Network Services Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 8099
Fax: 03-2026 3715
KLSE PROPERTY
MANAGEMENT SDN BHD (KPM)
Tan Kim Leong
(147792-H)
(formerly known as KLSE Realty Sdn Bhd)
Board of Directors
(Chairman)
Dato Hj Megat Najmuddin Khas Dato
Seri (Dr) Hj Megat Khas
Tan Kim Leong
Chan Guan Seng
Md Nor Ahmad
Abdul Wahab Nan Abidin
(resigned 31.12.2000)
Md Nor Ahmad
(Alternate to Dato Mohd Salleh
Abdul Majid)
General Manager
Abdul Razak Mohd Amin
Company Secretaries
Abdul Raihan Mohd Yusof
Auditors
Chan Guan Seng
Datuk Amirsham A Aziz
Dato Seri Syed Zainol Anwar
Jamalullail
General Manager
Company Secretaries
Yong Hazadurah Hashim
Auditors
Tax Consultants
Bankers
Alliance Bank Berhad
Registered Office
Malaysian Central Depository Sdn
Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 2099
Fax: 03-2026 3719
Tax Consultants
Johari Hassan
3
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KLSE-BERNAMA REAL-TIME
INFORMATION SERVICES
SDN BHD (KULBER)
(152961-H)
Board of Directors
(Chairman)
Datuk Abdul Kadir Jasin
(Deputy Chairman)
Shahnaz Radhiah Zulkifli
(Alternate director to Tan Sri Zulkifli
Mahmood)
Tuan Haji Mustapha Hashim
(Alternate director to Mohamad Shuib
Abdul Ghani)
General Manager
Abdul Nasir Ahmad Daud
Datuk Teh Ghee Kok
Company Secretaries
Md Nor Ahmad
Auditors
Leong Koon Choy
Jaafar Hussin
Syed Jamil Syed Jaafar
(resigned 31.12.2000)
Company Secretaries
Auditors
Tax Consultants
Bankers
Registered Office
KLSE-Bernama Real-Time Information
Services Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 7099
Fax: 03-2026 3684
M A L AYSIAN SHARE
REGISTRATION SERVICES
SDN BHD (MSRS)
(378993-D)
Board of Directors
(Chairman)
Dato Hj Megat Najmuddin Khas Dato
Seri (Dr) Hj Megat Khas
4
RESEARCH INSTITUTE OF
INVESTMENT ANALYSTS
M A L AYSIA (RIIAM)
(139281-V)
Tax Consultants
Bankers
Registered Office
Malaysian Share Registration Services
Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 7099
Fax: 03-2026 3684
YAYASAN BSKL (YBSKL)
Board of Governors
(Chairman)
(Deputy Chairman)
Tan Kim Leong
Chan Guan Seng
Tan Sri Dato Dr Syed Jalaluddin
Syed Salim
Tan Sri Dato Dr Abdullah Sanusi Hj
Ahmad
Director
Abdullah Naib
(464552-M)
Board of Governors
(Chairman)
Chan Guan Seng
Datuk Hj Abdul Karim Haron
Dato N Sadasivan A/L N N Pillay
Dato Che Mohd Annuar Che Mohd
Senawi
Tan Sri Dato Dr Abdullah Sanusi Hj
Ahmad
Company Secretaries
Auditors
Tan Sri Zulkifli Mahmood
Mohamad Shuib Abdul Ghani
Registered Office
Yayasan BSKL
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 7099
Fax: 03-2026 3684
Bankers
Company Secretaries
Auditors
Tax Consultants
Bankers
Registered Office
Research Institute of Investment
Analysts Malaysia
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-2026 7099
Fax: 03-2026 3701
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highlights
5
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Meticulous in approach and
transparent in every aspect
ensuring substance over form.
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Dato Mohammed
Azlan Hashim
Executive Chairman
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Executive Chairman s Statement
There was a statement planned in reviewing the financial year for the Kuala Lumpur Stock
Exchange Group.
This is another.
Just as we close the year, events unfolded leading to conditions of uncertainty
influencing an
outcome different from what was generally expected in the economies and capital markets of many
countries. More importantly, it is in the uncertainty of unfolding events that the impact of existing
challenges are accelerated, even magnified
reminding us that the unexpected does happen.
Reminding us too, of the degree of preparedness and the degree of readiness of both industry and
participants
to
face
the
full
impact
of
coming challenges.
It is against such an environment that we view, perhaps with more discerning eyes than before, the many
efforts contributed during the year to continue developing the national economy, capital market and
securities industry. It is also in times like this, that it becomes clear that the indicators of performance and
achievement for the KLSE Group are not those of the market and the market alone
but of the many,
many efforts contributing to sustainable progress and growth for market and industry.
Perhaps, central to the effort, is this.
It is the written word, in whichever faith we belong to, that seeks to guide the conduct of man. It is in
humbly learning from this example, that forms the major effort for the year.
At both exchange and industry level, it was a year of putting rules, requirements and plans to words and
to work for participants, regulators and the industry alike. For KLSE, it was the new Listing Requirements;
for the industry the Capital Market Masterplan.
Launched in January 2001, the new Listing Requirements achieve the objective of enhancing corporate
governance and transparency, enhancing efficiency in capital market activities, strengthening investor
protection and promoting investor confidence.
The Capital Market Masterplan (CMP) launched in February 2001, contains 6 objectives, 24 strategic
initiatives and 152 recommendations, which are to be implemented over the next 10 years.
Out of the 152 recommendations, 105 recommendations are directly or indirectly related to the KLSE
Group. Thus, at no other time has there been clearer signposts at both the market participants level or the
industry level in charting the way forward. To facilitate the smooth implementation of these
recommendations and monitor its progress, KLSE set up the CMP Implementation Committee (CIC). It is
thus the time to get to work and begin the journey forward.
What we leave behind during the period, is a downtrend in equity markets, driven primarily by uncertainty
in the direction of the global economy. The contraction in the global technology industry, on which the
region s export strength is dependent upon, contributed to the weakening of the regional economies and
equity markets. Some of these markets were also influenced by social and political developments at home.
Under the influence of these events, comparing the last trading day of the fiscal year with that of the
previous period, the KLSE Composite Index (CI) as at 29 June 2001 declined 240.38 points or 28.84% to
close at 592.99 compared to 833.37 on 30 June 2000. Similarly, total market capitalisation at the end of
the fiscal year was at RM403 billion, a decrease of RM169 billion or 29.55% from RM572 billion a year ago.
Total volume traded amounted to 34 billion units valued at RM89 billion in contrast to 106 billion units valued
at RM305 billion during the previous corresponding period.
However, despite uncertainty at the securities market level, capital generation efforts continued positively
for new issues. During the period under review, 36 new companies were listed compared to 28 in the
previous financial year, bringing the total number of companies listed to 809 at fiscal year end. Of the 36
new companies, 14 were listed on the Main Board and 22 on the Second Board, with a combined nominal
capital of RM5.1 billion. A total of RM1.6 billion was raised from Initial Public Offerings (IPOs) compared
with RM0.9 billion in the previous period.
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I R E G U L ATO RY
Business without governance is an injustice to all.
It inflicts harm not only on to itself, but on to others in the investment community impeding
growth, destroying reputation, diminishing investment value and with it, investor confidence.
Now more than ever, the continued growth and progress of the Malaysian securities industry
lies in the collective will of its participants to be more responsible, to be more accountable
in essence to be compliant.
New Listing Requirements
In ensuring that investors will continue to have confidence in investing at the KLSE and in the Malaysian
e
c
o
n
o
m
y
,
a key effort is to continuously improve the level of corporate governance.
The new Listing Requirements is set to achieve the continuous objective of further promoting the efficiency
and credibility of the market to benefit listed companies, directors, intermediaries, major shareholders and
minority investors alike.
Launched in January 2001, the new Listing Requirements is a fine example of co-operation and combined
effort by both industry participants and regulators, involving an extensive consultation process meticulously
conducted, taking into account the views and feedback of industry participants.
The new Listing Requirements, amongst others, strengthened provisions in areas relating to disclosure,
corporate governance, continuing listing obligations, financial reporting and enforcement. It codified
unwritten rules and procedures relating to listed companies, simplified procedural requirements and
processes, clarified requirements and removed ambiguities and adopted international best practices and
standards in listing rules, where applicable.
The new Listing Requirements is now more business friendly and user friendly. Provisions have been
drafted with the aim of promoting business efficacy whilst safeguarding the interests of minority
shareholders. Provisions have also been streamlined and re-organised as part of the measures to facilitate
easy reference and understanding of the Listing Requirements.
Under the new Listing Requirements, listed companies, their advisers and directors are now subject to a
higher standard of responsibility and accountability. They are required to be more transparent with their
activities and are expected to exercise higher standards of corporate governance.
In recognising that both industry regulators and participants manage and operate in a dynamic
e
n
v
i
r
o
n
m
e
n
t
,
the new Listing Requirements is designed to be accommodative and flexible. As such the new Listing
9
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Requirements will be continually reviewed and reassessed for relevance and practicality. Refinements to
the new Listing Requirements will be undertaken from time to time.
As stakeholders in the growth and development of the securities market and industry, all industry
participants are encouraged to continue to provide feedback and suggestions for improvement to the Listing
Requirements.
Towards this end, it is important for industry participants to continue to cooperate and work closely with
regulators to make the securities industry in Malaysia the preferred investment destination of investors.
Compliance not only with the letter of the requirements, but with the spirit of the requirements.
In meeting this objective and to facilitate compliance with the letter and spirit of the new Listing
Practice Notes
Requirements, Practice Notes were issued where required, detailing administrative and operational
procedures for compliance.
In conjunction with the new Listing Requirements, the Exchange has issued 12 Practice Notes. These
Practice Notes have been issued with the objective of, amongst others, providing interpretation of several
provisions of the Listing Requirements and specifying administrative procedures. These Practice Notes are
aimed at facilitating greater compliance with the Listing Requirements.
Of special significance are Practice Notes No. 4/2001 and 10/2001 issued pursuant to paragraphs 8.14
and 8.16 of the new Listing Requirements respectively. These are 2 of the several provisions introduced
to enhance the quality of companies listed on the KLSE.
Practice Note No. 4/2001 on Criteria and Obligations pursuant to paragraph 8.14 of the Listing
Requirements (PN4) relates to the requirement that listed companies must maintain a financial condition
that warrants continued trading and/or listing on the Official List of the Exchange. PN4 sets out amongst
others, the criteria in relation to the expected minimum financial condition of a listed company.
Similar provisions are contained in Practice Note No. 10/2001 on Level of Operations (PN10).
PN10 relates to the requirement that listed companies must maintain a certain minimum level of operations
to warrant continued trading and/or listing on the Official List of the Exchange.
PN10 clarifies the application of paragraph 8.16 of the Listing Requirements and sets out the
circumstances which may indicate that a listed company s level of operations is inadequate to warrant
continued trading and/or listing on the Official List, including the obligations of such listed company.
Hence with PN4 and PN10, investors can expect to obtain greater disclosure of information regarding the
status of restructuring of companies which have an inadequate level of financial condition or level of
operations. The rights of shareholders of listed companies under PN4 and PN10, are better protected by
the enhanced disclosure requirements.
A significant objective of PN4 and PN10 is undoubtedly the hastening of the pace of restructuring of
companies with inadequate level of financial condition or operations. To a large extent this has been met
by a significant number of these companies now at varying stages of their restructuring plans.
Through the on-going efforts of the KLSE Group in holding consultations and dialogues with industry
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participants, industry feedback and suggestions have been incorporated in the Practice Notes issued.
Practice Notes will continue to be issued from time to time to further reflect industry input and to achieve
the guidance
theRequirements.
importance of internal control for enhancing corporate
the Issuance
intended of
objectives
of thesignifies
new Listing
governance in a company. Implementation of the guidance augurs well for the preservation of
company assets and will result in better protection for investors.
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Statement on Internal Control: Guidance for Directors of Public Listed Companies
Members of professional organisations undergo continuing education and formal training, to update
and improve their knowledge in order to discharge their duties more responsibly, effectively, efficiently.
It is with this objective that directors of listed companies have given full support in participating in
the training programmes prescribed in the new Listing Requirements. The Mandatory Training
willcompanies
subsequently
be supplemented
thestate
continuing
education
To Programme
assist listed
in making
disclosure ofwith
their
of internal
controlprogrammes.
pursuant to paragraph
15.27(b) of the Listing Requirements, KLSE established an independent Taskforce on Internal Control in
May 2000 to prepare and issue a guidance. The guidance entitled
Statement On Internal Control:
Guidance for Directors of Public Listed Companies was issued by the Taskforce in February 2001.
The guidance deals with the following areas in relation to internal control:
the system of internal control and the responsibilities of various parties in the maintenance of a sound
system of internal control;
the process of review of the adequacy and integrity of a system of internal control; and
the minimum disclosures to be made by the board of directors on the state of internal control.
Roadshows and Conference on Listing Requirements
Whilst KLSE has put in place a framework intended to enhance the credibility and attractiveness of the
Malaysian capital market, the KLSE recognises that it is important for the market to support the new Listing
Requirements. Industry response to date has indicated that there has been a high degree of support for
the new Listing Requirements.
KLSE LINK
makes
valuable held
contribution
in conference
the implementation
achieve greater
On The
29 March
2001,
theaExchange
a public
on the of
newmeasures
ListingtoRequirements,
which
received
overwhelming
response
from
industry.
disclosure and market transparency. With the use of KLSE LINK, listed companies are better able
to ensure accuracy, completeness and timeliness of their announcements. Investors in turn, should
The make
public
wasinformation
aimed at in
promoting
greater understanding
of the new Listing Requirements,
fullconference
use of such
their investment
decisions.
increasing awareness among industry participants of their rights, duties and obligations and providing an
opportunity for comments and queries on relevant issues pertaining to the new Listing Requirements.
The main areas covered in the conference included corporate governance, investor protection and
transparency with speakers from various sectors of the industry presenting papers from the perspective of
regulators, advisers, listed companies, investors and the legal fraternity.
To facilitate greater understanding of and compliance with the new Listing Requirements, the Exchange
also conducted 11 roadshows throughout Peninsular and East Malaysia. These roadshows also provided
a forum for the exchange of constructive views and concerns.
The The
response
to the
roadshowshave
was been
encouraging
provided
invaluable
feedback
to the
the beneficial.
Exchange. It
new Listing
Requirements
developedand
to deter
wrongdoings,
without
impeding
also indicated the support and enthusiasm of industry participants to the introduction of the new Listing
Thus, whilst
hasdesire
been developed
Requirements
and it
their
to comply.to be pro-business and pro-growth, there are now enhanced
powers to enable more effective enforcement of the new Listing Requirements.
Apart from the KLSE roadshows, the Exchange also facilitated and sponsored other roadshows such as
penalties
may of
be Internal
imposed Auditors
range from
caution
andwhich
impress
and public
the The
roadshow
by the that
Institute
Malaysia
(IIAM),
servedtoasprivate
the secretariat
for the
reprimands,
fines
and
where
necessary,
suspension
and
ultimately
de-listing.
Due
process on
is the
Taskforce on Internal Control. The objective of these roadshows was to educate the industry
accorded
respectControl:
of all Guidance
alleged breaches
of theofListing
Penalties
onlya be
Statement
on in
Internal
for Directors
Public Requirements.
Listed Companies
and to will
provide
forum
to clarify
issues
relating
to the Guidance.
imposed any
after
thorough
consideration
of all facts and circumstances relating to a case.
12
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Status of Investigation Cases on Public Listed Companies as at 30 June 2001
Type of Cases
Cases
Brought
Forward
from
Financial
Year 2000
Failure to comply with the Policy on Response to
Unusual Market Activity/Failure to promptly provide
information or documents to the Exchange
Sections 99, 338 of MBLR
Clause 1.18 of SBLR
Cases
Initiated
during
Financial
Year 2001
Total
Cases
Cases
Completed
Cases
Outstanding
as at
end of
Financial
Year 2001
3
3
(1)
2
Failure to comply with Corporate Disclosure Policy and
Immediate Announcements
Sections 22-41, 335-341 of MBLR
Clauses 1.18, 3.4, 3.11-3.16 of SBLR
53
175
228
(103)
125
Failure to comply with Part 4 of the MBLR/Part 5
of the SBLR on Acquisitions and Realisations
38
98
136
(54)
82
3
3
(1)
2
of the SBLR (excluding Immediate Announcements and
Accounting Standards)
Failure to release Quarterly Reports on time
Section 56A of MBLR/Clause 3.20A of SBLR
7
19
26
(17)
9
Failure to furnish Annual Reports on time
Section 60(a) of MBLR/Clause 3.22(a) of SBLR
4
6
10
(8)
2
Failure to furnish Annual Audited Accounts on time
Section 60(b) of MBLR/Clause 3.22(b) of SBLR
4
62
66
(45)
21
Failure to release Preliminary Financial Statements
Section 57 of MBLR/Clause 3.21 of SBLR
1
1
(1)
Failure to release Half Yearly Results
1
1
1
Failure to comply with the share buyback guidelines
4
4
4
1
2
3
(2)
1
108
373
481
(232)
249
Failure to comply with Accounting Standards
Section 65 of MBLR
Clause 3.27 of SBLR
Total
Actions Taken for Breaches of Listing Requirements as at 30 June 2001
No. of Cases
Type of Cases
Failure to comply with the Corporate Disclosure Policy
and Immediate Announcements
Sections 22-41, 335-341 of MBLR
Clauses 1.18, 3.2, 3.4, 3.11-3.16 of SBLR
of the SBLR on Acquisitions and Realisations
Caution
& Impress
Private
Reprimand
Public
Reprimand
Public
Reprimand
& Fine
10
20
15
5
50
9
13
10
11
43
of the SBLR (excluding Immediate Announcements)
1
1
Failure to release Quarterly Reports on time
Section 56A of MBLR/Clause 3.20A of SBLR
Failure to furnish Annual Reports on time
Section 60(a) of MBLR/Clause 3.22(a) of SBLR
1
Failure to furnish Annual Audited Accounts on time
Section 60(b) of MBLR/Clause 3.22(b) of SBLR
3
Failure to release Preliminary Financial Statements on time
Total
MBLR: Main Board Listing Requirements
Total
19
37
26
SBLR: Second Board Listing Requirements
4
4
7
8
9
12
1
1
37
119
13
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I INFRASTRUCTURE
KLSE has a vision to develop into a world class stock exchange.
Notwithstanding its relatively young age, KLSE is a developed exchange in terms of
infrastructure and regulations.
The exchange intends to keep abreast of international developments to ensure its continued
relevance and wide acceptance, by investors and industry participants domestically and
internationally.
Infrastructure Development
Just as the Exchange is enhancing corporate governance to ensure continued investor confidence, there
has been continuous enhancement in its infrastructure and regulations to meet investor requirements and
expectations, in line with internationally accepted practices.
KLSE s infrastructure and regulations today are comparable to many of the developed exchanges. These
attributes include fully immobilised securities, T+3 settlement system, delivery versus payment, quarterly
reporting and general compliance with international accounting standards.
KLSE has worked closely with industry participants to ensure there is continued progress and improvement
in the infrastructure for the securities industry. This infrastructure development, is to enable a reliable,
efficient and cost effective market to meet investors needs and demands. The results are evident in the
continuing growth of investor interest and investor confidence in the Malaysian securities market.
Growth of Investor Activity
Reporting Period
1 July 2000 to 30 June 2001
Total as at
30 September 2001
1.
No. of new accounts opened
77,336
2.8 million
2.
No. of securities immobilised
16.5 billion
197.8 billion
3.
No. of companies prescribed into CDS
28
816
4.
Book entry settlement of
traded securities
34.9 billion
362.7 billion
5.
No. of ordinary transfer transactions
578,293
8.1 million
6.
No. of Record of Depositors (ROD)
produced
13,241
69,464
T+3 settlement
KLSE has successfully shortened the settlement period from T+5 to T+3 in December 2000. Based on the
T+3 Settlement System, delivery and settlement dates are fixed based on 3 market days after trade date.
In the implementation process, consultation with industry participants was undertaken to ensure feedback
and concerns are addressed in implementing T+3 to ensure industry participants are fully aware of the
benefits of T+3.
The main objective of shortening the settlement system is to increase efficiency and to reduce settlement
risk in order to enhance competitiveness.
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The benefit of T+3 extends to the various industry participants. Investors will particularly benefit from the shorter
settlement period, which reduces risk and exposure as shares and cash are settled earlier. For international
investors, T+3 standardises the settlement system in line with that of major international exchanges, thus
facilitating investment operations.
Delivery vs Payment
The delivery versus payment (DVP) environment was further enhanced by the implementation of the
Institutional Settlement Service for Direct Business Transactions (ISS-DBT) in July 2001.
The Institutional Settlement Service (ISS) for on-market transactions was first introduced in July 1999. Onmarket transactions are transactions that are executed through the Automated and Computerised Trading
System established by the Exchange whilst Direct Business Transactions (DBT) are transactions that are
not executed through the Automated and Computerised Trading System.
ISS enables eligible financial institutions to clear and settle securities transactions on behalf of their
institutional clients directly with SCANS. The beneficial objective of ISS is to reduce the settlement risk
exposure of institutional investors whilst enhancing DVP, in line with international settlement best practices
and requirements. Since its introduction, ISS has been well received, with industry participants increasingly
relying on ISS to clear and settle securities transactions.
W ith ISS expanded for DBT, this will further ensure local and foreign institutional investors continue
to have access to a secure and efficient clearing and settlement system. Similar to industry support
for ISS, since its introduction, ISS-DBT has also been well received by industry participants, with
increasing volume and value of securities transactions cleared and settled through ISS-DBT.
Electronic handling of Provisional Allotment Letters
The electronic management of Provisional Allotment Letters (PALs) was implemented in January
2001.
W ith the immobilisation of PALs, all securities on
the Exchange are traded scripless. This will not
only result in more efficient and convenient delivery,
settlement of trades and reduced costs for
securities holders but also achieve speedier
processing from the books closing date to the listing
of the new securities. Thus, the immobilisation of
15
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III DEVELOPMENTAL
STOCKBROKING COMPANIES
Stockbroking companies, now more than ever, are facing the challenges of an increasingly
liberalised and competitive marketplace.
Recognising that investor capital is mobile regionally and internationally, more securities
markets are reviewing transactions cost in working towards the objective of offering more
comprehensive and more efficient services at lower fees.
Therefore, to remain attractive and competitive, the Malaysian securities market will need to
continually seek efficiency and innovation as a means to continued prosperity.
Reduction in Transaction Cost
Key to industry competitiveness, is the ability to offer competitive cost. Thus, in line with the commitment
to liberalise the capital market, which is expected to improve liquidity and efficient price discovery, the
reduction in transaction cost was implemented. Among others, these factors will contribute to make KLSE
and Malaysia a more attractive and competitive investment destination for investors.
Regulators have taken the lead to promote industry competitiveness by proceeding to reduce the
components of transaction cost which include clearing and other fees as part of the commitment to
enhance the cost competitiveness of the industry.
Prior to
1 September 2000
First Stage Reduction
Second Stage Reduction
1 September 2000
1 July 2001
SCORE Fee*
0.01% ad valorem
0.005% ad valorem
0.0025% ad valorem
Clearing Fee
0.05% ad valorem
0.05% ad valorem
0.04% ad valorem
Max. RM200 per contract
SC Levy
0.02% ad valorem
0.02% ad valorem
0.015% ad valorem
*SCORE
System on Computerised Order Routing & Execution
The reduction in brokerage commission, as part of the reduction in transaction cost, has been implemented
since September 2000 and is expected to be completed by July 2002.
The reduction is in line with the government and industry regulators commitment to liberalise the capital
market to make KLSE and Malaysia a more attractive investment destination for all investors.
Prior to
1 September 2000
Brokerage Commission
16
Contract Value
(RM)
Retail
1st 500,000
Next 1.5mill
Above 2.0 mill
Institutional
1st 500,000
Next 1.5mill
Above 2.0 mill
Interbroker
1st 2.0 mill
Above 2.0 mill
First Stage Reduction
Second Stage Reduction
1 September 2000
1 July 2002
Rate
(%)
Contract Value
(RM)
1.00
0.75
0.50
Less than or
0.75
equal to 100,000
More than
Fully
100,000
Negotiable
0.75
0.5625
0.375
0.4
0.35
Rate
(%)
Fully negotiable
commission rates for
trades subject to a cap
of 0.70%
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In addition to reduction in transaction cost, on-going measures in enhancing the overall competitiveness of
the Malaysian securities market continue to be implemented in several key areas, i.e. to:
strengthen the financial position of stockbroking companies
encourage greater compliance to prudential standards
improve vigilance in risk management
In line with the successful consolidation and restructuring efforts, the number of stockbroking companies
under trading restrictions was reduced from 8 to 1 during the financial year. 5 of these stockbroking
companies were acquired by other stockbroking companies and another 2 stockbroking companies were
able to regularise their financial positions following the successful implementation of Workout Proposals
with their creditors pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act, 1998.
These efforts have collectively contributed in further enhancing the services and business capabilities of
the Malaysian securities industry in line with international standards.
During the period from 1 July 2000 to 30 September 2001, there was an increase in aggregate reserves
and shareholders funds of stockbroking companies, as follows:-
Growth Indicators for Stockbroking Companies
Consolidated for all stockbroking companies
Paid-up Capital*
Reserves
Shareholders Funds
*
1 July 2000
RM billion
30 September 2001
RM billion
Increase/(Decrease)
during the period
RM billion
7.705
7.211
(0.494)
(0.127)
0.916
1.043
7.578
8.127
0.549
During the aforesaid period, there was an increase in the paid-up capital of RM0.444 billion and a reduction of RM0.938
billion arising from the consolidation (acquisitions and mergers) within the stockbroking industry. This has resulted in a net
reduction of RM0.494 billion.
Supervising Compliance
Cost reduction is not the only factor in enhancing the overall competitiveness of the Malaysian
securities market.
Greater compliance to prudential standards and improved vigilance in risk management by
stockbroking companies are also significant factors in contributing to enhanced confidence and the
creation of a more competitive market.
As part of the overall effort to ensure a high standard of compliance to prudential requirements review, the
KLSE conducts inspections on stockbroking companies and audits on Authorised Depository Agents (ADAs)
to:
ascertain their compliance to the Rules of KLSE;
to determine their compliance to the Rules of Malaysian Central Depository;
to determine the state of preparedness of branches of stockbroking companies to commence
operations.
Overall, there was continued vigilant monitoring for compliance, as evident from the number of cases
initiated during financial year 2001. However, with the enhanced rules for investor protection and the
continuous investor education programmes undertaken by KLSE, it is expected that the number of cases
will decline in future periods. In addition, heightened levels of controls at stockbroking companies with the
requirement of internal audit function, together with compliance officers to handle clients complaints will
17
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Status of Investigation Cases as at 30 June 2001
Category
Cases
Brought
Forward
from
Financial Year
2000
Cases
Initiated
during
Financial Year
2001
Total
Cases
Cases
Completed
Cases
Outstanding
Buying-in/potential shortselling
75
95
170
128
42
Alleged defaulter
70
34
104
46
58
Potential misuse of clients account
60
17
77
63
14
Other complaints of improper conduct
against dealers representatives
40
21
61
41
20
Complaints of improper conduct against
stockbroking companies
86
24
110
45
65
Potential false trading/market rigging/
market manipulation/ insider trading
38
103
141
64
77
2
5
7
7
0
371
299
670
394
276
General complaints
Total
Disciplinary Actions on Dealers Representatives and Stockbroking Companies during financial year ended 30 June 2001
Disciplinary Action
Dealers Representatives
Struck Off
2
Fined
7
Suspension
1
Reprimanded
Total
Stockbroking Companies
1
1
10
2
also help to reduce the number of cases.
Universal Brokers
In efforts to further encourage the consolidation of the stockbroking industry, the Securities Commission
(SC) announced guidelines for Universal Brokers in October 2000. The development of universal brokers
is part of the industry strengthening process to create financially stronger and more competitive
stockbroking companies.
A Universal Broker is a stockbroking company, approved by the SC to be a Universal Broker, which is able
to offer a diverse range of products and services within the capital market, including corporate finance,
futures broking business and dealings in debt securities. To become a Universal Broker, a stockbroking
company must meet various quantitative and qualitative criteria besides having merged with or acquired at
least 3 other stockbroking companies.
As at 30 September 2001, the SC has granted Universal Broker status to 5 stockbroking companies.
Following the merger with, and acquisition of other stockbroking companies, these 5 Universal Brokers
have set up in total 15 branch offices. In addition, 3 stockbroking companies, which are not Universal
Brokers, have also acquired in total 3 other stockbroking companies and converted these into their
respective branch offices.
18
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IV DEVELOPMENTAL
MARKET INSTITUTIONS
In enhancing industry development, the Capital Market Masterplan supports the adoption of
competitive strategies including the consolidation of exchanges, catalytic development of the
derivatives and bond markets and continued enhancement of disclosure based regulations.
The KLSE Group is committed to implementing the recommendations of the CMP in a practical
and expeditious manner, for the overall benefit of the industry.
Consolidation into an integrated exchange
In line with the competitive strategies of the CMP, KLSE continues in the move to develop an integrated
exchange to achieve optimum utilisation of resources and economies of scale, to achieve greater efficiency
and competitiveness in the securities industry.
W ith the establishment of Malaysia Derivatives Exchange (MDEX) in June 2001, KLSE completed the
integration of The Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) and Commodity and
Monetary Exchange of Malaysia (COMMEX) as an integrated derivatives exchange.
KLSE has also signed a Memorandum of Understanding (MOU) with Malaysian Exchange of Securities
Dealing and Automated Quotation (MESDAQ) on 27 June 2001 to initiate discussions with MESDAQ for it
to join the KLSE Group.
In connection with an integrated exchange, the CMP s recommendation includes the establishment of a
common trading platform and a common clearing and settlement platform across all exchange-traded
products. Such a move is intended to facilitate a single integrated access for investors to an integrated
exchange that is able to offer a wide range of products. This will benefit not only market intermediaries
but all market participants in an industry that will offer greater efficiency and cost-effectiveness.
Disclosure Based Regulation
The move to disclosure based regulation is to provide a more efficient framework for corporations to
raise capital, in the shortest time possible, without compromise to investor protection.
KLSE continues to progress with the implementation of the full Disclosure Based Regulation (DBR) for the
primary market.
As part of the implementation effort, KLSE has developed a DBR model that is suitable for the Malaysian
equity market and consistent with international best practices. This effort includes benchmarking, research
and consultation with market participants, industry specialists and the SC. In the process, special emphasis
is placed on reduction of timeframes for capital raisings, lowering of costs for capital raisings, extensive
use of information technology and introduction of
more efficient operational processes and
procedures.
The National Bond Market Project
Amongst the recommendations put forth in the CMP
is the development of a robust, active and liquid
bond market. KLSE is actively involved in various
aspects, including the creation of an exchange
traded bond market.
The exchange traded bond
market aims to widen access
19
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V INVESTOR EDUCATION & TRAINING
The wealth of information and facilities provided by KLSE is an example of its significant
investment in one of the principal groups it serves the investors.
KLSE has been unrelenting in its efforts to promote investments in the stockmarket based on
fundamentals and knowledge gained from understanding the market. Investing hard-earned
money should not be determined by speculation or rumours.
The continued ability of investors to participate in the KLSE, and invest well, is of paramount
importance to the Exchange. An informed investor is a more prudent investor.
Informed Investing Activities
For the period under review, a total of 83 Saturday Informed Investing talks were conducted at the regional
Balai Maklumat BSKL, drawing a total audience of over 5000 participants ranging from academia,
professionals, students to the general investing public and other industry participants.
Topics covered ranged from understanding basic components of the stock market, to smart investing and
investor rights. These programmes have in turn created awareness and greater interest in the use of the
facilities and services of Balai Maklumat BSKL. For the period under review, over 52,000 visitors used the
facilities provided at the Public Information Centre in Kuala Lumpur and the regional network of Balai
Maklumat.
KLSE also organised two roadshows in 2001
Miri from 14-16 June 2001 and Kuantan from 29-30 June
2001. The roadshows are for the purpose of educating investors on fundamentals of investing and to
update the general public on the latest developments in the stock market and securities industry. Besides
KLSE, the SC, Permodalan Nasional Berhad and the respective local stockbroking companies
Sarawak
Securities in Miri and Kuala Lumpur City Securities in Kuantan, participated in the roadshows.
KLSE Investors Week
The inaugural KLSE Investors Week 2000 was held from 12 to 16 September 2000. The event, which is
in line with KLSE s efforts to enhance investor education and promote the Malaysian capital market,
received overwhelming response with more than 16,000 visitors.
This was followed by KLSE Investors Week 2001 held from 5-9 September 2001, which expanded the
range of topics presented to include an overview of the Malaysian securities market, principles of informed
investing, investment options, investor rights, conventional and syariah investments. The response to the
talk sessions on the Malaysian capital market as well as the company presentation sessions was
exceptional.
Meanwhile, to further promote and educate investors, the Exchange has actively participated at various
events during the year including:
Minggu Saham Amanah Malaysia Permodalan Nasional Berhad (PNB), Jengka, Pahang (10-13 August
2000)
Minggu Saham Amanah Malaysia Permodalan Nasional Berhad (PNB), Kota Bahru, Kelantan (20-24
April 2001)
SC Organised Roadshow in Kuala Selangor (26 August 2000)
SC Organised Roadshow in Kangar (28 October 2000)
Federation of Malaysian Unit Trust Managers Unit Trust Roadshow in Kuala Lumpur (6-8 October 2001)
The Malaysian Corporate Information Technology Conference and Exhibition (CITEX) 2001 in Sunway
Pyramid Convention Centre (11-13 May 2001)
The Malaysian Finance Association Third Annual Symposium at International Islamic University, Gombak (26
May 2001)
20
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VI INTERNATIONAL RELATIONS
W ith accelerating globalisation and planned liberalisation, exchanges worldwide have quickly
moved to forge international alliances.
Exchanges no longer hold an exclusive franchise for listing and trading of instruments within
borders. Domestic exchanges are now being challenged not only by other exchanges but also
by alternative trading systems such as electronic communication networks (ECNs).
To ensure continued relevance and competitiveness, KLSE has to be at the forefront of these
developments. However, in pursuing these alliances, KLSE will not lose sight of its principal
objectives
to continue to offer a secure, efficient and cost effective platform for Malaysian
corporations to raise capital and to facilitate investments
to be the premier exchange for
Malaysian securities.
International Communications Team
Further to the announcement by the Honourable Minister of Finance in the Budget 2001, KLSE established
an International Communications Team (ICT) in November 2000, with the purpose of fostering relations with
and enhancing the information flow to the international investment community.
Specifically, ICT focuses on:
Enhancing dissemination of comprehensive and accurate market and other relevant information to the
international media; and
Fostering more open and active communications with the foreign investment community, including fund
managers,
with the purpose of addressing perception gaps and correcting misconceptions that might exist regarding
the Malaysian market on a timely basis.
Among the activities that ICT has undertaken since its establishment are as follows:Roadshows and Meetings
In engaging with the international investment community, meetings with international investors were held
regularly, either locally or abroad.
Apart from participation in local conferences for foreign fund managers, ICT has co-organised roadshows in
Tokyo, Taipei, Hong Kong and Singapore with leading international stockbroking and investment banking
groups. These investment promotion activities have been participated by senior representatives from KLSE,
SC and Bank Negara Malaysia.
In communicating facts and figures on Malaysia in
the right perspective, ICT contributed articles and
advertorials in various international investment
magazines and handbooks. An international
advertising campaign was launched to build
awareness on KLSE s efforts to strengthen the
market and investment environment.
Participation in International Organisations
KLSE continued its active participation in meetings
and events organised by international organisations.
Participation in the
International
Federation of Stock
Exchanges (FIBV),
East Asian and
Oceanian
Stock
21
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R O YAL VISIT TO KLSE
KLSE Group was honoured to receive a very special visit on 13 February 2001 when DYMM Seri
Paduka Baginda Yang Dipertuan Agong, Sultan Salahuddin Abdul Aziz Shah and DYMM Raja
Permaisuri Agong, Tuanku Siti Aishah, visited the Exchange.
The royal couple was briefed on the operations of the KLSE Group
as well as on current industry developments. The programme also
included a visit to the KLSE Information Gallery where the royal
couple was given a complete tour of the facilities and services
provided to assist investors. As a special treat for the royal visitors,
KLSE Group staff also enacted a spirited simulation of the open
outcry trading system.
KLSE s Information Gallery
captures the interest of its
most honoured guests, the
royal couple, Seri Paduka
Baginda Yang Dipertuan
Agong and
Raja Permaisuri Agong.
The Deputy Minister of Finance, YB
Datuk Dr Shafie Hj Mohd Salleh and
his wife, Datin Dr Hjh Mizan Abdullah,
joined the KLSE Executive Chairman
and Committee Members in welcoming
the royal guests to the Exchange.
It was certainly a privilege for KLSE
to host this visit which will be etched
in the Exchange s history.
VI C O M M E N D ATIONS
In closing, thank you to the KLSE Committee Members for their support and co-operation and to all the
members of the various sub-committees of the Exchange and Group for their invaluable contributions.
To the board of directors of Securities Clearing Automated Network Services Sdn Bhd (SCANS), Malaysian
Central Depository Sdn Bhd, (MCD), Malaysia Derivatives Exchange (MDEX), Labuan International
Financial Exchange (LFX), KLSE Bernama Real-Time Information Services Sdn Bhd (KULBER), Malaysian
Share Registration Services Sdn Bhd (MSRS), the Board of Governors of the Research Institute of
Investment Analysts Malaysia (RIIAM) and Yayasan BSKL
thank you for your dedication and guidance.
On behalf of the KLSE Committee and Group Management, our sincere appreciation to the Right
Honourable Prime Minister and Finance Minister for his unwavering commitment towards the sustained
development of the capital market and the national economy. Our acknowledgement for the support and
co-operation of the Ministry of Finance, Bank Negara Malaysia, the Securities Commission, the Registrar
of Companies, and related regulatory authorities in guiding us through the many trials of the year.
Finally, very special commendations to the KLSE Group staff for their untiring contribution and dedication
in enabling the KLSE Group to achieve its aspirations to spearhead continuous improvements in the
industry.
D ATO
22
MOHAMMED AZLAN HASHIM
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Investors Digest
Investors Digest is the official monthly publication of KLSE, offering investors and
industry participants a comprehensive review of current news, updated information and
latest statistics relating to the stock market and the securities industry.
Mid-July 2000
Mid-August 2000
Mid-September 2000
Mid-October 2000
Mid-November 2000
Mid-December 2000
Mid-January 2001
Mid-February 2001
Mid-March 2001
Mid-April 2001
Mid-May 2001
Mid-June 2001
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Combination of controls,
checks and balances form a
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1 July 2000 to 30 June 2001
The performance of the Kuala Lumpur Stock
Exchange (KLSE) was very much in line with that
of other markets during the period between July
2000 to end-June 2001. During the period, most of
the equity markets showed a downtrend, primarily
driven
by
the
uncertain
direction
of the global economy. The contraction in the global
technology industry on which the region s export
strength is based contributed to the weakening of
the regional economies and respective equity
markets. Some of these markets were also
influenced by social and political developments.
As at 29 June 2001, the last trading day of the
fiscal year, the KLSE Composite Index (CI) declined
240.38 points or 28.84% to close at 592.99
compared to 833.37 on 30 June 2000. Similarly,
total market capitalisation at 29 June 2001
decreased by 29.55% to RM403 billion from RM572
billion a year ago. Total volume decreased to 34
billion units valued at RM89 billion in contrast to
106 billion units valued at RM305 billion during the
previous period.
On 3 July 2000, the first trading day of the financial
year, the CI dipped below the 800-point level to
793.93 in thin trading as a result of profit-taking at
the end of June. Concerns lingered over the
expected impact of the staggered release of the
Central Limit Order Book shares, which when proved
to be unfounded, saw renewed interest in the market.
On 13 July, the CI reached a high of 860.77,
encouraged by the Right Honourable Prime
Minister s statement that Malaysia was expected to
register a GDP growth of 9% for 2nd quarter 2000,
and by expectations of a possible ratings upgrade
by Moody s. However, a report by Morgan Stanley
Dean Witter of its decision to reduce Malaysia s
weighting in its portfolio from 11.7% to 1.6%
dampened sentiment once again. By the end of
July, the CI slipped to 798.83. Total market
capitalisation fell from RM572 billion at the end of
June to RM558 billion at end-July. While average
daily volume for the month was 194 million units
compared to 163 million units in June 2000,
average daily value shrank to RM532 million
compared to RM636 million.
Trading remained quiet in August with investors
staying on the sidelines amidst a lack of positive
leads. The CI closed at 795.84 at month s end,
almost unchanged from its end-July level. Average
daily volume transacted reduced to 106 million units
valued at RM391 million while market capitalisation
was marginally lower at RM553 billion.
Uncertainty surrounding the merger of banking
institutions dominated market sentiments in
September. Added to this concern was the
possibility that the rise in crude oil prices could lead
to a slowdown in the global economy and
negatively impact Malaysian exports. The U.S. and
regional markets also recorded weak performances
on the back of profit warnings from U.S. companies
and weakness in the Euro. The CI closed at its
lowest level for the month at 713.51, a drop of
82.33 points or 10.35% from end-August. While
25
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Market Report
1 July 2000 to 30 June 2001
*29.6.2001 vs 30.6.2000
29.6.2001
30.6.2000
Points
Change
%
Change
EMAS
142.29
207.15
64.86
31.31
Composite
592.99
833.37
240.38
28.84
1,151.73
1,444.10
292.37
20.25
Consumer Products
146.39
163.32
16.93
10.37
Industrial Products
59.31
87.19
27.88
31.98
138.37
226.75
88.38
38.98
87.01
127.14
40.13
31.56
Finance
4,334.71
6,718.52
2,383.81
35.48
Property
593.18
970.02
376.84
38.85
1,417.77
1,826.47
408.70
22.38
Mining
185.24
217.13
31.89
14.69
Syariah
93.71
132.76
39.05
29.41
106.93
215.19
108.26
50.31
45.23
129.35
84.12
65.03
KLSE Indices
Industrial
Construction
Trading/Services
Plantations
Second Board
Technology
* Last trading day of fiscal year
average daily volume increased to 124 million units,
average daily value declined to RM374 million.
Market capitalisation fell to RM489 billion.
Although the market continued to move lower in
early October, taking the lead from poor U.S.
corporate news, interest returned to the market midmonth, in anticipation of an investor-friendly Budget
2001. Investors interest in the market was apparent
from the significant rise in average daily volume to
285 million units for the period 13-25 October
compared
to
132
million
units
from
2-12 October. Buying support of index-heavyweights
lifted the CI to the month s high of 796.22 on 25
October. This uptrend, however, could not be
sustained as profit-taking set in following Budget
Day. Nevertheless, the CI managed to move higher
by 38.85 points or 5.44% to close the month at
752.36. Average daily volume for October was 205
million units valued at RM635 million. Similarly,
market capitalisation improved to RM502 billion.
In November, uncertainty over the U.S. presidential
election, worries over the future earnings of U.S.
technology stocks and concerns over local corporate
restructuring exercises pressured the CI lower to
729.95 at the close of the month, a loss of 22.41
26
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Page 27
points or 2.98%. Average daily volume transacted
declined to 111 million units valued at RM334
million. Market capitalisation contracted to RM487
billion.
Activity in December continued to be affected by
lingering concerns over the pace of corporate and
debt restructuring, companies commitment to raise
the standard of corporate governance and potential
threats from the economic slowdown in the U.S.
Consequently, the CI ended the year 2000 at
679.64, lower by 50.31 points or 6.89% from the
previous month. Likewise, market capitalisation
shrank to RM444 billion, although average daily
volume increased to 138 million units valued at
RM348 million. The announcement on 10
December by Morgan Stanley Capital International
(MSCI) of its decision to apply the free-float criteria
on weighting of index calculations had no visible
impact on the market.
From 20 December, KLSE implemented its shorter
settlement period from T+5 to T+3, which
proceeded smoothly.
27
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The unexpected decision by the U.S. Federal
Reserve to cut key interest rates by 50 basis points
on 3 January managed to lift the CI higher
temporarily,
in
tandem
with other regional markets. Supported by a preChinese New Year run-up, the CI crossed the 700point level on 22 January and continued to rise
thereafter to end the month at 727.73, a gain of
48.09 points or 7.08% compared to 679.64 on 26
December 2000. Market capitalisation at endJanuary 2001 improved to RM476 billion from RM444
billion at end-December 2000. Average daily
volume in January rose to 162 million units valued at
RM378 million compared to 138 million units valued
at RM348 million in December 2000.
However, the upside was capped by lack of followthrough buying support and weakness in the U.S.
markets.
Sentiment turned negative again in February due
also to the release of poorer-than-anticipated
corporate results and weak economic data at home.
Reflecting investors’ passive mood was the
undersubscription in several Initial Public Offers
(IPOs) during the following months. The negative
undertone towards IPOs was also felt by
other markets, in particular where it involved the
telecommunication and technology sectors. The CI
closed at 709.39 for the month of February, a drop
of 18.34 points or 2.52%. Average daily volume fell
to 131 million units valued at RM376 million. Market
capitalisation shrank to RM459 billion.
A key event during the month was the launch of the
28
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Capital Market Masterplan (CMP) on 22 February.
The CMP contains a three-phase development plan
over
a
10-year period to ensure that the domestic capital
market continues to remain relevant and
competitive. While the release of the plan had no
immediate impact on the market, it was welcomed as
a long-term measure to strengthen the industry.
The market drifted lower in March, with the CI
falling below the 700-level to end the month at
647.48. Sentiment continued to be influenced by the
U.S. markets, which went through severe
corrections. The Nasdaq Composite Index plunged
below the 2000-level for the first time in more than
two years on revisions of earnings by technology
companies. The Dow Jones Industrial Average
closed below the 10,000-level for the first time
since October 2000 on signs that the U.S.
economic slowdown was extending beyond
technology companies. This influenced not only the
regional bourses, but also the KLSE. To protect the
Malaysian economy from the adverse effects of a
U.S. economic slowdown, the Government
announced a RM3 billion stimulus package. For the
month, average daily volume decreased to 100
million units valued at RM226 million, while market
capitalisation moved lower to RM418 billion.
This correctional phase continued into mid-April,
with the CI touching 553.34 on 9 April, its lowest
level for the period under review. There were
reports of concerns that the Ringgit peg could be
reviewed due to softening regional currencies,
declining international reserves and fears of
increasing non-performing loans. Falling stock
prices resulted in recurring margin calls from
stockbrokers and financial institutions, thus
exacerbating the situation. On 23 April, the Eighth
Malaysia Plan (8MP) was tabled in Dewan Rakyat
by the Right Honourable Prime Minister. The three
key thrusts in the 8MP were to shift growth from
input-driven to knowledge-driven, speed up structural
changes in the agriculture, manufacturing and
services sectors, and strengthen socio-economic
stability by equitable distribution of the country s
wealth. Whilst there was no immediate response
from the market by the tabling of the 8MP, there
was, however, some accumulation of selective blue
chips ahead of the corporate results season. This
lent some support to the market, with the CI
recovering by 31.16 points or 5.63% from its low of
553.34
on
9 April to close the month at 584.50. Compared to
its level at end March, the CI was still lower by
62.98 points or 9.73%. Average daily volume
transacted improved to 118 million units with a
value of RM248 million. Market capitalisation,
however, fell to RM394 billion.
In early May, the market staged a brief rally with
the CI breaching the 600-level on 2 May to close at
611.42, in reaction to the government s abolishment
of the 10% exit levy on profits of portfolio
investments repatriated within one year. However,
the uptrend was not sustained and the CI fell again
below the 600-level to 576.99 on 4 May on heavy
selling of selected heavyweights. Concerns
surfaced over the poorer-than-expected banking
Investors have access to online market
information at the KLSE s Information Gallery.
29
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Accountability and responsibility
for every decision.
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STRENGTHENING CORPORATE GOVERNANCE
Corporate governance is essential for investor confidence and enhancement of shareholder value. It is only
with high standards of corporate governance that a quality and vibrant market can be cultivated, one which
is premised on principles of fairness, integrity, transparency and accountability.
Why the need for corporate governance
In Malaysia, corporate governance has always been
recognised as the primary focus of increasing
shareholders value. Laws, rules and regulations
have long been in place to ensure that the principles
of corporate governance are adhered to by listed
companies. However, with the financial crisis, came
the realisation that more had to be done in this area.
The need to enhance corporate governance was
amplified by the onslaught of globalisation. In this
era of fluid capital and transborder investments, a
market s stability and future growth hinges on a culture
of heightened corporate governance and increased
transparency.
Finance Committee on Corporate Governance
It was against this background that the Government
established the Finance Committee on Corporate
Governance to improve the corporate governance
framework for the Malaysian capital market. The
Finance Committee recommended changes to the
relevant laws, regulations and rules, formulated a
Code on Corporate Governance for the industry and
even made recommendations to enhance corporate
governance through training and education.
Measures undertaken by KLSE to enhance
corporate governance
Fully cognisant of good corporate governance and
in its efforts to continuously enhance the capital
market, the KLSE has over time implemented
various corporate governance requirements. KLSE
has required each listed company to have
independent directors since the 1980s and has
required the establishment of an audit committee in
each listed company since 1993. As an active
member participating in the Finance Committee,
KLSE quickly moved to operationalise and
implement the recommendations put forth. KLSE
has implemented applicable recommendations of
the Finance Committee in relation to the Listing
Requirements, via the introduction of the new
Listing Requirements that were announced in
January 2001. The KLSE also undertook various
other measures to heighten the level of corporate
governance amongst its listed companies via the
new Listing Requirements. Thereafter, KLSE
conducted roadshows and seminars throughout the
country to actively promote awareness of corporate
governance and encourage its acceptance by
industry participants. These activities are expected
to be on-going as part of the securities market
development programme.
Generally, the approach adopted by KLSE is to
provide a strong framework of corporate
governance consisting of minimum standards of
corporate governance which must be complied with
by all listed companies. Beyond this, listed
companies should be allowed the flexibility to
develop and adapt practices that are best suited to
their own business circumstances and market
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Issues in Focus
requirements. However, to meet the increasing
demand by investors and shareholders for more
effective disclosure of information on governance
issues, KLSE has mandated the disclosure of
information relating to the extent of compliance with
corporate governance practices and state of internal
control.
Corporate governance framework
The framework put in place by KLSE focuses on
practitioners with key responsibilities in the
corporate landscape
the directors and audit
committee members. In short, KLSE sought to
create a sound framework for corporate governance
in the Listing Requirements through the following:
enhancing the definition of independent director
and strengthening the composition of the board
of directors
requiring directors to attend a prescribed
minimum number of board meetings
enhancing the composition of the audit
committee, its functions, rights and authority
express statement of directors rights
imposition of obligations on directors
LIST OF PRACTICE NOTES
Practice Notes
Effective Dates
Practice Note No 1/2001 on Default in Payment
1 June 2001
Practice Note No 2/2001 on Requests for Suspension
1 June 2001
Practice Note No 3/2001 on Disclosure in relation to Internet-related Businesses or
E-commerce Activities
1 June 2001
Practice Note No 4/2001 on Criteria and Obligations pursuant to paragraph 8.14 of the
Listing Requirements
2001
32
15 February
Practice Note No 5/2001 on Training for Directors
2001
15 February
Practice Note No 6/2001 on Independent Directors
1 June 2001
Practice Note No 7/2001 on Classification of Applicants or Listed Issuers
1 June 2001
Practice Note No 8/2001 on Submission of Semi-annual Returns
1 June 2001
Practice Note No 9/2001 on Disclosure in relation to the Malaysian Code on Corporate
Governance and the State of Internal Control
1 June 2001
Practice Note No 10/2001 on Level of Operations
1 July 2001
Practice Note No 11/2001 on Provision of Financial Assistance
1 July 2001
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To ensure greater compliance with the Listing
Requirements, the Exchange has issued 12 Practice
Notes. These Practice Notes have been issued with
the objective of promoting better understanding and
to facilitate consistent application of the new Listing
Requirements by industry participants.
Acceptance by industry
Most importantly, however, the industry must buy-in
to the efforts made by the regulators in promoting
corporate governance. Listed companies in
particular must embrace corporate governance in
total. Why? Because good corporate governance is
the way to enhance investor confidence and in turn,
attract more investors and investments. By
committing to high standards of corporate
governance, shareholder value will be enhanced.
Investors are becoming more discerning. Empirical
studies have shown that investors are willing to pay
a premium for companies with good corporate
governance. They believe that companies with good
corporate governance will perform better over time,
leading to enhanced shareholders value and a
higher share price. Some see good corporate
governance as a means of reducing risk. Other
stakeholders, such as the employees also
recognise good governance. In this age of the
knowledge-economy, employee commitment is of
paramount importance and may be the determinant
factor in the success of a company.
Enforcement as impetus for compliance
However, rules and regulations by themselves may
not be effective if not accompanied by acceptance
and desire to comply by the industry. This is where
surveillance, monitoring and enforcement continue to
be part of KLSE s duty to the industry. KLSE has
always been committed to enforcing its Listing
Requirements objectively, promptly and without fear
or favour and it will continue to do so under the
new Listing Requirements.
In tandem with the rising expectations of directors
performance and accountability to the company and
its shareholders, KLSE is empowered under the
new Listing Requirements, to take action against
the directors personally, where they commit a
breach of the Listing Requirements. Such
enforcement actions against directors, where
necessary will serve as a wake-up call that they
have been put in positions of trust and that they
must honour this trust and act in the best interests
of the company. To assist the directors in
discharging their duties, KLSE has also mandated
them to attend training programmes on a
continuous basis.
The Adjudication Panel of the KLSE Corporate Awards ensures
that recipients of the Awards are companies that practise high
standards of corporate governance.
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Issues in Focus
KLSE CORPORATE AW A R D S
The KLSE Corporate Awards were developed to honour companies listed on both the Main Board and
Second Board of the KLSE, which have shown exemplary corporate conduct in complying with the KLSE
Listing Requirements. The Awards also recognise public listed companies which have demonstrated high
standards of corporate governance, disclosure and transparency and have been proactive in investor
relations.
More importantly, the aim of the Awards is to
inspire public listed companies to practise high
standards of corporate conduct as a mechanism of
self-regulation and establish the practice of a
greater degree of accountability and responsibility to
shareholders, investors and other stakeholders.
The KLSE Corporate Awards are presented
annually with 2 categories of awards
the KLSE
Corporate Excellence Awards and the KLSE
Corporate Sectoral Awards. The KLSE Corporate
Excellence Awards honour the top 2 companies
each from the Main Board and the Second Board
respectively. The KLSE Corporate Sectoral Awards
are presented to the top company of each sector
from the Main Board and Second Board. All
companies
listed
on the KLSE are eligible to participate in the KLSE
Corporate Awards.
The KLSE Corporate Awards set the
standard for excellence in corporate
conduct for the companies listed on
the Kuala Lumpur Stock Exchange.
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THE CAPITAL MARKET MASTERPLAN
COMMITMENT TO IMPLEMENTATION
Introduction
The Capital Market Masterplan (CMP), unveiled by the Securities Commission (SC) on 22 February 2001,
provides a vital roadmap for the Malaysian capital market covering a period of ten years, i.e. 2001 2010.
The CMP aims to foster and develop a capital market, which will be internationally competitive, highly
efficient and supported by a strong and facilitative regulatory framework. In short, the CMP sets out a vision
where the Malaysian capital market should be:
Internationally Competitive
in all areas necessary to support Malaysia’s basic capital and investment
needs, as well as its longer-term objectives;
Highly Efficient
as a conduit for the mobilisation and allocation of funds; and
Supported by a Strong and Facilitative Regulatory Framework
that enables the capital market to
perform its functions effectively and provides a high degree of confidence to its users.
The achievement of these, as envisioned by the
C M P, is through the development and achievement
of the six key objectives, composed of 24 strategic
initiatives and 152 specific recommendations.
The implementation and achievement of the
objectives,
strategic
initiatives
and
recommendations of the CMP is characterised by a
phased approach. The approach has been
identified as involving three distinct phases:
Phase 1:
Strengthen domestic capacity, and
develop strategic and nascent
sectors (2001-2003)
Phase 2:
Further strengthen key sectors and
gradually liberalise market access
(2004-2005)
Phase 3:
Further
expansion
and
strengthening of market processes
and infrastructure towards
becoming a fully developed capital
market,
and
enhancing
international
positioning
in areas of comparative and
competitive advantage (20062010)
For the KLSE Group, the significance of the CMP
is undoubtedly huge as almost two thirds of the
recommendations made in the CMP have
relevance, either directly or indirectly.
The KLSE Group
Addressing the CMP Recommendations
The KLSE Group has taken a proactive role in
implementing the recommendations contained in the
C M P. In fact, work on some of the
recommendations commenced as early as in 1998,
as reflected by KLSE s lead role in pursuing
consolidation of market institutions. The acquisition
of the Kuala Lumpur Options and Financial Futures
Exchange (KLOFFE) and subsequent merger of
KLOFFE with the Commodity and Monetary
Exchange of Malaysia (COMMEX) to form the
Malaysia Derivatives Exchange (MDEX) is a prime
example.
W ith the launch of the CMP, KLSE recognises that
to implement the recommendations would require
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Issues in Focus
CMP
2001
Sequencing
2002
2003
2004
2005
2006
2007
2008
2009
2010
Strengthen domestic capacity,
and develop strategic and
nascent sectors
Further strengthen
key sectors and
gradually liberalise
market access
Further expansion and strengthening of market
processes and infrastructure towards becoming
a fully developed capital market, and enhancing
international positioning in areas of comparative
and competitive advantage
Phase 1
Source:
Phase 2
Phase 3
Securities
efficient and effective management and coordination. For this, the KLSE Group formed an
implementation committee comprising senior
management personnel to co-ordinate, monitor and
supervise the implementation of the CMP
recommendations.
CMP Implementation Committee
The internal framework to implement the CMP
recommendations within the KLSE Group is the
CMP Implementation Committee (CIC). Headed by
the Executive Chairman of KLSE, the CIC provides
an oversight to the KLSE CMP implementation
programme.
CIC will also act as the primary contact point with
the SC s Implementation Task Force and the various
W orking Committees established to oversee the
implementation of the CMP recommendations. To
enhance the efficiency and effectiveness of the CIC,
the
task
of
implementing
the
CMP
recommendations is assigned to specific teams.
Project Teams
The establishment of Project Teams is to directly
undertake the specific task of implementing the
recommendations. Based on the identification of
areas related to the CMP recommendations, six
core areas have been identified, namely:
Business and Industry Development
Clearing, Settlement and Depository
Infrastructure and Technology
Intermediary Activities and Supervision
Primary and Secondary Market
Derivatives
A Project Team has been assigned to each core
area and will be responsible to represent the KLSE
Group at the various Working Committees
established by SC.
Areas and Goals
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Overview of Core Areas
A number of goals have been identified and
addressed under each respective area. In respect
of Business and Industry Development, which covers
macro recommendations that affect the development
and growth of the securities and futures markets,
goals that have been identified include market
institutions reform, business development, legal and
regulatory framework, and industry training and
education.
The area of the Clearing, Settlement and Depository
team addresses the need to further enhance
support functions carried out by other market
institutions, namely the clearing and depository
houses, in order to further strengthen and support
the growth and development of the exchanges.
Goals here revolve around the clearing and
settlement infrastructure, depository facilities and
competitive level.
The growth and development of the securities and
futures markets cannot be achieved without
formulation and utilisation of the best technology
and infrastructure in meeting the needs of market
participants. Thus, the area of Infrastructure and
Technology involves issues such as market
infrastructure, technological developments and
electronic commerce.
Of concern to the area of Intermediary Activities
and Supervision are matters related specifically to
stockbroking companies, including their development
and regulation. Goals relevant to this area also
include market activities, stockbroking companies
consolidation, electronic access and market
regulation.
The Primary and Secondary Market cover goals that
concern the development, growth and regulation of
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D ATUK MOHAIYANI
TAN KIM LEONG, JP
ABDUL KADIR HJ MD
ABDUL JABBAR ABDUL
SHAMSUDIN
Committee Member
KASSIM
MAJID
Committee Member
Committee Member
Deputy Chairman
Master of Business
Member of Malaysian
Bachelor of Laws (Hons)
Member of Malaysian
Administration (Finance),
Institute of Accountants;
University of Singapore;
Institute of Accountants;
Cornell University,
Member of Malaysian
Advocate & Solicitor,
Member of Malaysian
New York;
Association of Certified
Malaysia;
Association of Certified
Bachelor of Arts
Public Accountants;
Government appointed
Public Accountants;
(Economics)
Fellow of Institute of
Committee Member:
Fellow of Institute of
Knox College, Illinois;
Chartered Accountants,
1.3.1998
Elected to the
Australia;
Australia;
Committee: 28.11.1998
Fellow of Malaysian
present;
Association of the
Committee Member:
Elected as Deputy
Institute of Chartered
18.1.2001
Chairman: 20.11.1999
Secretaries &
present
Administrators;
Committee Member:
18.12.1996
38
present
present
present
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Page 39
D ATO
MOHAMMED AZLAN HASHIM
Executive Chairman
Bachelor of Economics (Accounting), Monash
University, Australia;
Member of Malaysian Institute of Accountants;
Member of Institute of Chartered Accountants,
Australia;
Government appointed Committee Member:
18.12.1996
31.12.1997;
Government appointed Executive Chairman:
1.1.1998
present
CHAN GUAN SENG
ABDUL WAHAB NAN
PETER LEONG TUCK LENG
YUSLI MOHD YUSOFF
Committee Member
ABIDIN
Committee Member
Committee Member
Committee Member
Bachelor of Commerce
Bachelor of Arts (Hons),
Master of Science
Bachelor of Arts (Hons)
(Hons), University of
University Malaya;
London School of
Economics, University of
Melbourne, Australia;
Elected to the
Economics
Essex, England;
Member of Australian
Elected to the
Member of Institute of
Society of Certified
present
present
England and Wales;
Practising Accountants;
Member of Institute of
Elected to the
Australia;
present
Elected to the
18.12.1988;
6.12.1989
18.12.1994;
5.12.1996
present
39
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Page 40
Dato Mohd Salleh
Abdul Majid
Md Nor Ahmad
Ungku A Razak
Ungku A Rahman
President
Deputy President I
Deputy President II
Devanesan Evanson
Chuah Mei Lin
W ong Kay Yong
Lim Boon Hang
Senior Vice President,
Compliance & Inspection,
Market Supervision Group
Legal Advisory &
Membership Services,
Surveillance & Investigation,
Vice President,
Legal Advisory &
Membership Services,
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Tan Chun Weng
Norhan Che Awang
Latifah Hj Mohd Yusof
Vice President,
Inspection,
Listing Operations,
Listing Group
Johan Abdullah
Ch ng Boon Huat
Securities Issues,
Listing Group
Vice President,
Financial Review &
Surveillance,
Listing Group
Financial Review &
Surveillance,
Listing Group
Selvarany Rasiah
Legal Advisor,
Listing Group
Ahmad Aznan
Hj Nawawi
Abdul Raihan
Mohd Yusof
Secretarial & Legal Affairs
Senior Manager,
Secretarial & Legal Affairs
41
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Page 42
Khairussaleh Ramli
42
Abdul Razak
Mohd Amin
Lew Lup Seong
Abdul Hamid Sh
Mohamed
Group Human Resource
Finance & Administration
Policy & Development
Vice President,
Business Development &
International Affairs,
Tai Yoke Peng
Qua Gek Kim
Zulkifli Harun
Yew Kim Keong
Vice President,
Organisation & Methods,
Public Information
Information Services/
Information Technology
Facilities Management
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Page 43
Alice Thomas
Low Pheng
Vice President,
Group Internal Audit
Mohamad Azam Ali
Shukoriah Mohd Noor
Vice President,
Public Affairs,
Corporate Affairs
Senior Manager,
Public Information Centre,
Corporate Affairs
Vice President,
Group Communications,
Corporate Affairs
43
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Balancing the need for
regulation with the practical
requirements of business efficacy.
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Page 45
Kuala Lumpur Stock
Exchange (KLSE)
Malaysia Derivatives
Exchange Bhd
(MDEX)
KLSE-Bernama
Real-Time Information
Services Sdn Bhd
(KULBER)
Labuan International
Financial Exchange
(LFX)
Malaysian Share
Registration Services
Sdn Bhd
(MSRS)
Securities Clearing
Automated Network Services
Sdn Bhd
(SCANS)
KLSE Property
Management Sdn Bhd
(KPM)
Malaysian Derivatives
Clearing House Bhd
(MDCH)
Yayasan BSKL
(YBSKL)
Malaysian Central
Depository Sdn Bhd
(MCD)
Research Institute
of Investment
Analysts Malaysia
(RIIAM)
45
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Dato Mohammed
Azlan Hashim
(KLSE, MDEX, LFX,
SCANS, KPM, MCD,
KULBER, MSRS, YBSKL,
Datuk Mohaiyani
Shamsudin
(KLSE, SCANS, RIIAM)
Abdul Kadir Hj
Md Kassim
(KLSE, LFX, SCANS,
YBSKL)
46
Tan Kim Leong
(KLSE, SCANS, KPM, MCD,
RIIAM)
Chan Guan Seng
(KLSE, MDEX, LFX,
SCANS)
(KLSE, SCANS, MCD,
YBSKL, RIIAM)
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Abdul Wahab
Nan Abidin
(KLSE, SCANS)
(KLSE, LFX, SCANS)
(KLSE, MDEX, SCANS)
Iskander Ismail
W ong Fook Wah
Dato
(MDEX)
(MDEX)
(MDEX)
Md Nor Ahmad
Tunku Dato Seri
Nadzaruddin Tuanku
Ja afar
(MDEX, LFX, KPM,
KULBER)
Hwang Sing Lue
(MDEX)
47
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Alvin Kwan Wing Yew
Dato Ahmad Johan
Raslan
Tan Sri Wan Azmi Wan
Hamzah
(LFX)
(LFX)
Mohd Nasir Ali
Dr Mohamed Arif Nun
Larry Gan
(LFX)
(LFX)
(LFX)
(MDEX)
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Ridzuan Salleh
Chin Chee Kee
Izzuddin Tajudin
(LFX)
(LFX)
(LFX)
Dr Ghazali Atan
Prof Madya Dr Mohd
Daud Bakar
Dato Hj Megat
Najmuddin Khas Dato
Seri Dr Hj Megat Khas
(LFX)
(LFX)
(SCANS, MSRS)
Dato Mohd Salleh
Abdul Majid
(SCANS, KULBER, YBSKL,
RIIAM)
49
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Datuk Amirsham
A Aziz
Dato Seri Syed Zainol
Anwar Jamalullail
Datuk Abdul Kadir Jasin
Datuk Teh Ghee Kok
(MCD)
(MCD)
(KULBER)
(KULBER)
Leong Koon Choy
Jaafar Hussin
(KULBER)
(KULBER)
Ungku A Razak
Ungku A Rahman
(MSRS)
50
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Tan Sri Zulkifli Mahmood
Mohamad Shuib
Abdul Ghani
Datuk Hj Abdul Karim
Harun
(MSRS)
(MSRS)
(YBSKL)
Dato N Sadasivan a/l N
N Pillay
Dato Che Mohd Annuar
Che Mohd Senawi
Tan Sri Dato Dr Abdullah
Sanusi Hj Ahmad
Tan Sri Dato Dr Syed
Jalaluddin Syed Salim
(YBSKL)
(YBSKL)
(YBSKL/RIIAM)
(RIIAM)
51
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Malaysia Derivatives
Exchange Bhd
The 2000/2001 financial year marks a significant
landmark for the Malaysian derivatives industry.
In January 1999, a sale and purchase agreement
was finalised between the Kuala Lumpur Stock
Exchange (KLSE) and shareholders of KLOFFE
Capital Sdn Bhd, resulting in the Kuala Lumpur
Options and Financial Futures Exchange Bhd
(KLOFFE) becoming a subsidiary of KLSE.
In September 2000, approvals were obtained from
members of the Commodity and Monetary
Exchange of Malaysia (COMMEX), the Board and
shareholders of KLOFFE and the regulatory
authorities for the merger of the two exchanges to
form a single derivatives exchange.
The strategic objective for the merger exercise was
to create a single, efficient and cost effective
marketplace for Malaysian derivatives. The merger
was also aimed at enhancing the product range
offered by the sole exchange for all three market
segments, namely equity derivatives, financial
derivatives and commodity derivatives.
The Malaysia Derivatives Exchange Bhd, or in
short, MDEX came into being following the
completion of the merger. MDEX was officially
launched on 11 June 2001.
As an integrated derivatives exchange, MDEX
currently offers a wide range of derivatives
products, including the KLSE Composite Index
(KLSE CI) Futures and Option, the 3-Month Kuala
Lumpur Interbank Offered Rate (KLIBOR) Futures
and the Crude Palm Oil (CPO) Futures.
52
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Dr Zaha Rina Zahari
Raghbir Singh Bhart
Siah Boon Peng
Chief Operating Officer
General Manager
Senior Manager, Trading
Mohamed Shah Shariff
Peter Mah
Manoj Devadasan
K Sree Kumar
Senior Manager,
Senior Manager,
Senior Manager,
Member, Legal Affairs
Human Resource
Senior Manager,
Strategic Planning &
Product Development
Rosli Mahmood
Allan Au Yong
V Pasupathy
Senior Manager,
Market Surveillance
Senior Manager,
Business Development
Senior Manager,
Audit & Compliance
Edmund Koh
Manager,
Management Information
Systems
53
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The objective of MDEX is to provide a single,
efficient and cost-effective marketplace for Malaysian
derivatives.
MDEX also aims to provide the following benefits:.i
To meet investors needs for innovative and
flexible investment tools capable of exploiting
global market opportunities,
i.
To provide the conceivable above-average
returns and portfolio protection to investors,
iii.
To provide the ability to engage in hedging
activities which in turn can generate a more
efficient financial illustration of investment
portfolios.
Trading will remain on the KLOFFE Automated
Trading System (KATS), an electronic screen-based
trading system. However, trading on the Crude Palm
Oil Futures and the 3-Month KLIBOR Futures
Contracts is currently conducted on the Open Outcry
system. The immediate priority of MDEX is to
transfer these contracts to the KATS. Appropriate
amendments and measures are being made to
ensure smooth conversion which is expected to be
completed by the end of 2001.
As part of our continuous efforts to have more
derivatives products to meet the requirements of all
investors, the Malaysian derivatives market marked
a milestone with the launching of the Kuala Lumpur
Stock Exchange Composite Index (KLSE CI) Option
contract in December 2000. The options launch saw
MDEX embarking on an intensive programme to
educate investors in making full and effective use of
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55
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Labuan International Financial Exchange
The 2000/2001 financial year proved to be a
momentous one for Labuan International Financial
Exchange Inc. (LFX Inc) especially with the official
launch of the Labuan International Financial
Exchange
(LFX)
on
23 November 2000 by the Minister of Finance. This
represented another milestone in the development
of Labuan as an International Offshore Financial
Centre (IOFC) as the launching was in conjunction
with the island’s 10th anniversary as an IOFC.
S Loganathan
Megat Joha Megat
Abdul Rahman
General Manager
Assistant General Manager
As a web-based exchange, LFX offers its
participants fast and efficient access to the capital
market. Its participants can be based anywhere in
the world and all the major functions of LFX, be it
the application for a participant s licence,
submission of listing applications, trade confirmation
or subsequent corporate announcements, can be
done via the web through its @LFX System which
went live on 15 October 2000. LFX acts as the
platform for companies to raise funds and capital
through the innovative listing of a range of multicurrency financial instruments.
LFX operates via a licensing system whereby
participation on LFX is through its Listing Sponsors
and Trading Agents. Listing Sponsors are
responsible for the financial instruments listed while
Trading Agents are used by investors to trade in
the instruments listed. Trading on LFX can be done
24 hours a day, 7 days a week although the
confirmation of trades can only be done during
LFX s operating hours.
As at 30 June 2001, there were 4 Listing Sponsors
and 2 Trading Agents licensed by LFX Inc. The Listing
Sponsors are Multimedia Development Corporation
Sdn Bhd (MDC), K & N Kenanga Holdings Bhd,
Kuala Lumpur City Securities Sdn Bhd and AMMB
International (Labuan) Ltd. The two trading agents
are K & N Kenanga Holdings Bhd and Kuala
Lumpur City Securities Sdn Bhd.
Still being in the initial stages of operations, KLSE
lfx
57
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as sole shareholder, increased the paid-up capital
of LFX Inc from USD100,000 to USD2 million on 29
June 2001.
As a web-based Exchange, LFX offers
participants fast and efficient access to the
world s capital markets.
58
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Securities Clearing Automated Network
Services Sdn Bhd
Ungku A Razak
Ungku A Rahman
General Manager
Fathi Ridzuan
Ahmad Fauzi
Assistant General Manager,
Azman Shah Md Yaman
Legal Advisor,
Corporate Affairs,
Legal & Compliance
Lim Lean Beng
Senior Manager,
Clearing
scans
The Malaysian securities industry has witnessed
many changes and developments which have
brought many enhancements for the benefit of the
investors, the market participants and the nation as
a whole. In view of such rapid changes and
developments SCANS is continuing to assume a
more active role in the securities industry,
particularly in respect to the clearing and settlement
of Market Contracts and other services which would
serve to benefit the industry.
In conjunction with this, SCANS has undertaken a
number of activities/projects during the financial
year to further enhance and strengthen the
infrastructure services of the local market and these
activities/projects. The significant developments
which SCANS achieved during the year under
review are:
Settlement Cycle of T + 3
The most notable development in the year 2000
with regard to the clearing and settlement
infrastructure is in respect of the move from a
T+5 settlement period to a shorter settlement
period of T+3. This was implemented on 20
December 2000.
The conversion to T+3 on 20 December 2000
was smooth and orderly. The successful
implementation of T+3 represented great efforts
across the entire securities industry. There was a
high degree of coordination, cooperation and
synchronisation among the industry participants
to ensure a smooth transition to the shorter
settlement period. Extensive conversion tests
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conducted in the months prior to the
implementation of T+3 served as a gauge of
participants preparedness for the switch to the
shortened settlement cycle, thus allowing
participants to adjust to new processing
routines.
and not the Direct Business Contracts. The
new rate aims to improve liquidity and promote
efficient price discovery of the stockmarket,
hence making KLSE and Malaysia a more
attractive investment destination for all
investors.
The T+3 settlement cycle will create a much
stronger and resilient settlement system which
will maximise investors confidence in our
market and enhance our competitiveness with
that of other markets world wide. The benefits of
implementing T+3 include reducing operational,
credit, market and systemic risk. T+3 also
standardises the settlement system and places
Malaysia in the ranks of other major
exchanges in line with international settlement
best practices.
Upload of Settlement Data into Desktop
Banking Systems
As part of the ongoing efforts to improve the
overall efficiency of the payment process,
SCANS had implemented a process whereby
the payment settlement data would be
uploaded into the Desktop Banking Systems
via diskette with effect from June 2001.
Reduction of Clearing Fee
In line with the government and industry
regulators commitment to liberalise the capital
market, SCANS has implemented the new
clearing fee rate with effect from 1 July 2001.
The clearing fee has been reduced from the
current rate of 0.05% to 0.04%, subject to a
maximum of RM200 per contract. The new
rate affects only trades done on the Exchange
To improve the overall efficiency of the payment process,
payment settlement data is uploaded into the
Desktop Banking System.
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Malaysian Central
Depository Sdn Bhd
The financial year under review witnessed the
consolidation of the stockbroking industry and
financial institutions and the creation of a new
category of intermediaries known as Universal
Brokers which are able to take on a wider range of
activities and establish their own branch networks
throughout the country. This resulted in the
reduction of the number of MCD s Authorised
Depository Agents and Authorised Direct Members
(ADMs). In addition, these mergers and acquisitions
among the participants gave rise to the conversion
of some of the existing ADAs into branches and the
cessation of a number of ADMs.
61
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Ahmad Aznan Nawawi
Ungku A Razak
Ungku A Rahman
General Manager
62
Corporate Affairs,
Legal & Compliance
Chua Kong Khai
Ang Ting Kang
Nadzirah Abd Rashid
Vice President,
Depository
Vice President,
Senior Manager,
mcd
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its participants. The new manuals superseded the
previous versions issued in 1995, and are aimed at
strengthening the CDS operations of ADAs and
ADMs.
Effective 2 January 2001, all Provisional Allotment
Letters (PALs) are prescribed into the CDS. The
prescription process has been expedited to enable
the listed companies to obtain their funds sooner
and the investors to obtain their new securities
faster.
At the MCD counter, MCD s staff members are on hand
to assist investors with their CDS related queries.
Developments During the Year
In facilitating the on-going mergers, MCD
introduced a new facility called Interbranch
Transaction
(IBT)
on
20 November 2000. The main objective of this
facility is to allow depositors to perform CDS
transaction requests such as deposits, transfers,
updating and closure of accounts, account balance
inquiries and printing of ad-hoc statements at the
ADA branch office other than the branch at which
the relevant account is maintained.
MCD signed a service level agreement on the
Electronic Share Application (ESA) facility with the
MIDF Corporate and Consultancy Services on 8
March 2001. This is in addition to a similar
agreement between MCD and the Malaysian
Issuing House Sdn Bhd (MIH) which was signed on
16 July 1999. The ESA facility provides investors with
an alternative method for applying for shares of
Initial Public Offerings (IPOs) via Automatic Teller
Machines (ATMs) of participating financial
institutions without having to complete the IPO
subscription forms.
During the period, MCD issued new sets of the
procedures manual for its ADAs and ADMs after
conducting extensive updates and amendments and
taking into consideration the views and feedback of
Operational Update
During this period, the number of CDS accounts
opened was 77,336 (i.e. an average of 6,444 per
month) bringing the total number of accounts in the
CDS to 2.78 million as at 30 June 2001.
The financial period from 1 July 2000 to 30 June
2001 saw the number of securities immobilised in
the Central Depository System (CDS) increase from
179.8 billion for the previous year to 196.3 billion
securities.
During this financial period, the CDS facilitated the
settlement of 34.9 billion securities traded on the
stock exchanges and the movement of more than
39.4 billion securities by way of the ordinary
transfer facility.
MCD s services are utilised by a total of 64 share
registrars, representing 812 public listed companies,
809 of which are listed on the KLSE and 3 on the
Malaysian Exchange of Securities Dealing and
Automated Quotation (MESDAQ). During the financial
period, a total of 13,241 Record of Depositors
(RODs) detailing investor holdings in the CDS were
produced upon issuers requests.
Compensation Scheme and Insurance
MCD maintains a Compensation Scheme for the
purpose of settling claims by depositors against the
company, its authorised depository agents and
nominees. The scheme is funded by the
Compensation Fund of RM50 million, and a crime
and professional liability insurance policy of RM25
million. In addition, all ADAs are required to
maintain adequate insurance coverage in the form
of crime and professional liability insurance.
63
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KLSE-Bernama Real-Time Information
Services Sdn Bhd
Information is crucial in promoting informed
i
n
v
e
s
t
i
n
g
.
1 of the ways to optimise resources and profitability
in today s rapidly changing market is to act on the
right information at the right time. Whether it is for
an individual investor who is building a securities
portfolio or a research house which needs
information to build a database for investment
analysis, KULBER intends to become the premier
real-time and delayed market information provider
of the full range of information needs of the
investing community.
As such, KULBER which has a local and
international subscriber base, continuously explores
new avenues to improve its services by taking
advantage of the latest technological innovations in
its mission to be a disseminator of information which
is:
Accessible
Secure
Accurate
Affordable
Timely
As a provider of such information, KULBER will be
contributing towards enhancing investors
knowledge and understanding of the Malaysian
market, thus encouraging investments in Malaysian
companies.
kulber
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Malaysian Share Registration Services
Sdn Bhd
During the year under review, MSRS introduced an
alternative mode of dividend payment through an
electronic payment system whereby shareholders
are given the opportunity to choose to receive the
dividend monies either by cheque or by crediting
their bank account electronically.
Abdul Nasir
Ahmad Daud
General Manager
msrs
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As economic conditions improve,
MSRS anticipates handling a greater
volume of corporate action activities.
MSRS has also embarked on the dissemination of
shareholder information via the Internet through its
web-site, w w w.msrssb.com. This will further
enhance accessibility to information on MSRS s
client companies. MSRS is also in the process of
providing support services to unit trust companies.
Being the largest share registrar in Malaysia, MSRS
shall continue be in the forefront of the industry
providing new technologically advanced services to
its client companies.
As economic conditions improve, we anticipate
better results in the near future with increased
volume of corporate action activities. In line with the
KLSE s new Listing Requirements, the minimum
paid-up capital for Main Board and Second Board
companies must be RM60 million and RM40 million
respectively. The deadline for compliance with the
capital restructuring is by year 2003. MSRS expects
to facilitate the impending restructuring exercises
which will most likely be in the form of rights issues,
bonus issues or special issue to entitled
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Security Services
KLSE Property Management provides security
services to the KLSE Group. These services
include:
Physical security
This covers the protection of the premises,
property and people. Physical security involves
the use of physical barriers, manpower and
complementary services as well as electronic
technology in the form of closed-circuit
television, alarms systems and access control to
provide the required protection.
KLSE Property
Management Sdn Bhd
KLSE Property Management Sdn Bhd, formerly
known as KLSE Realty Sdn Bhd, is a wholly owned
subsidiary of KLSE. KPM was activated as an
operating entity effective 1 May 2000.
Information security
This deals with the protection of proprietary or
sensitive information.
The principal activities of KLSE Property
Management are as follows:
kpm
Property Management
KLSE Property Management provides
management services with respect to the
maintenance and enhancement of the KLSE
building infrastructure and its facilities.
Abdul Razak
Mohd Amin
General Manager
66
Azmi Othman
Manager,
Building Management
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The Board of Governors is assisted by a Working
Committee comprising KLSE Group staff from all
levels. The Working Committee implements activities
in line with the objectives of YBSKL.
The Working Committee is assisted by the KLSE
Group Community Club, which comprises
volunteers within the KLSE Group. The Club
provides the manpower for the activities of YBSKL.
Yayasan BSKL
Background
Yayasan BSKL (YBSKL) is a foundation established
by Kuala Lumpur Stock Exchange (KLSE) in 1998
to provide assistance, support and financial aid for
community and educational activities, projects and
programmes with the objective of improving the
standard of living, skills and professionalism of
Malaysians.
YBSKL obtained tax-exempt status in May 1999
from the Inland Revenue Board under Section 44
(6) and Schedule 6, Paragraph 13 of the Income
Tax Act 1967. Funds in YBSKL started with
voluntary salary deductions by KLSE Group staff
.
Subsequently, the KLSE Group provided a
launching grant to YBSKL to fund its community
development projects.
YBSKL s Vision
Y B S K L s vision is to assist in the balanced
development of a caring Malaysian community,
through various efforts including to:
Provide assistance to the members in society
with special requirements
Provide funds and support to Malaysians
pursuing any level of education
Organise and support schemes and projects for
the promotion of the well being and welfare of
the special members in society
Provide assistance to voluntary organisations,
having the same charitable objectives of
Yayasan BSKL
Encourage active participation from the KLSE
staff in all activities of Yayasan BSKL
Management of YBSKL
YBSKL is governed by a Board of Governors.
There are 8 members of the Board of Governors
comprising the Executive Chairman of the Kuala
Lumpur Stock Exchange, 2 KLSE Committee
Members, the President of KLSE and 4 external
members. They are appointed by the KLSE
Committee.
Activities/Programmes
Since its establishment in 1998, Yayasan BSKL has
adopted a comprehensive approach in contributing
to community development. To date, Yayasan BSKL
has worked with over 250 community organisations
throughout Peninsular Malaysia, including Sabah
and Sarawak contributing over RM2 million to
various community programmes.
The reach and diversity of Yayasan BSKL
contributions and programmes have touched many
lives from those who are terminally ill to the elderly,
orphans and those with special needs.
Community programmes which have been
organised range from visits to homes and vice versa,
educational tours and camps, telematches and
excursions to places of interests.
Complementing these various community
programmes, Yayasan BSKL has also offered study
loans to 62 students in local public universities. This
year, for the first time, YBSKL is offering the Study
Loan Scheme to those pursuing a Diploma course. To
make the Study Loan Scheme even more attractive
this year, YBSKL has also reclassified the interestfree Study Loan to a convertible loan. This means
that upon procuring a degree, qualified students
would have the opportunity to have these loans
converted to full scholarships.
YBSKL has also launched for the first time, the
tutoring assistance programme for children of
community
homes
preparing
for
major
examinations. This programme is offered to children
in community homes nationwide.
This year, YBSKL also played an active role in
hosting The Edge Kuala Lumpur Annual Rat Race
2001, an event which saw corporate executives
running a route within the city for charity. For this
run, RM450,000.00 was collected for distribution to
5 community organisations, namely, Malaysian
Paralympic Council, Spastic Children s Association
of Selangor and Wilayah Persekutuan, The National
Autism Society of Malaysia, The National Kidney
Foundation of Malaysia and HOSPIS Malaysia.
For the rest of the year, YBSKL will continue to
organise fun and creative programmes including
visits to public listed companies, environmental
awareness camps and festive celebrations.
67
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Date
Activities
15 July 2000
Sukaneka YBSKL 2000
28 August 2000
Contributions to 25 charitable organisations at the KLSE Group Charity Luncheon
held in conjunction with National Day.
29 September 2000
1 October 2000
English Camp for orphanages at D Ark Training and Resort. 5 homes participated.
14 October 2000
Contributions of educational materials to Kiwanis Down Syndrome Foundation
(Petaling Jaya Centre) in conjunction with its Concert cum Graduation ceremony.
17 October 2000
Blood donation campaign for Hospital Kuala Lumpur.
11 November 2000
Visit to the Tara Bhavan orphanage in conjunction with Deepavali.
25 November 2000
Contributions to 20 charitable organisations in conjunction with KLSE Members
Dinner 2000.
14 December 2000
Majlis Berbuka Puasa at KLSE with residents of Pertubuhan Anak Yatim dan Ibu
Tunggal, Kampung Medan, Petaling Jaya.
15 January 2001
Contributions to 30 charitable organisations in conjunction with KLSE Group
Annual Staff Hari Raya and Chinese New Year Lunch.
17 February 2001
A day of activities with residents of children’s and old folks’ homes in conjunction
with Hari Raya and Chinese New Year.
24 March 2001
Educational visit to Petronas Science Centre and National Planetarium for 2
children s homes.
April 2001
Launch of Tutoring Programme for children of community homes preparing for
major examinations.
23 May 2001
Blood donation campaign for Hospital Kuala Lumpur.
May 2001
Launch of Convertible Interest-free Study Loan Scheme for the academic year
2001/2002.
9 June 2001
First aid training for KLSE Group Community Club Members.
16 June 2001
Educational visit to Kuantan Flour Mills Bhd for children from Rumah Anak-anak
Tengku Ampuan Fatimah Kuantan, Pahang.
30 June 2001
Seminar Kerjaya di Pasaran Saham jointly organised with YATIM for 40 poor
students from several schools in the district of Bentong, Pahang.
21 July 2001
Educational visit to Oriental Food Industries in Melaka for 30 students from
Rumah Anak Yatim Islam Darul Ai-Tam, Melaka.
23 July 2001
Presentation ceremony and press conference for the Convertible Interest-Free
Study Loan Scheme for the academic year 2001/2002.
3-5 August 2001
Motivational and English Camp for 60 youths from 5 homes at Nur Lembah
Pansun.
8 August 2001
Yayasan BSKL hosted the Annual Kuala Lumpur Rat Race for Charity 2001. The
funds raised were equally distributed amongst 5 charitable organisations.
29 August 2001
Contributions to 30 charitable organisations in conjunction with the 44th Merdeka
Day celebration.
22 September 2001
Sukaneka YBSKL 2001 for 204 children from 10 community homes.
10 homes participated.
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Contributions
Details of contributions to various causes as at 30 September 2001 are as follows:
No
Categories/Causes
Amount (RM)
1.
Children s homes
702,502
2.
Senior citizens
164,302
3.
Educational support
339,752
4.
Special care
862,846
5.
Community projects
56,629
TO TA L
2,126,031
Percentage (%)
33.04
7.73
15.98
40.58
2.67
100
Left Top to Bottom:
Educational visit to Oriental Food Industries Holdings
Berhad.
Visit to orphanage in conjunction with Deepavali.
Majlis Berbuka Puasa.
Right Top to Bottom:
A day with the children and old folks.
Sukaneka YBSKL 2001.
69
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Research Institute
of Investment
Analysts Malaysia
The introduction of the KLSE s new Listing
Requirements in February 2001 has resulted in
tremendous increase in the activites of RIIAM as it
was appointed the sole provider of the Mandatory
Accreditation Programme (MAP) for directors of
public listed companies. RIIAM has also been
directly involved in the organisation of various
roadshows, workshops and a major conference in
relation to the new Listing Requirements.
Additionally, RIIAM continued to conduct
programmes throughout the year for markets
participants, investors and the general public.
RIIAM also organised in-house programmes for the
staff of the KLSE Group.
RIIAM organised more than 130 training sessions/
programmes, which include in-house programmes
for the KLSE Group staff and public programmes
for various target audiences in the industry. This
works out to an average of 11 sessions per month.
A substantial number of the programmes for markets
professionals
were
specially
designed
seminars/workshops on Malaysian Accounting
Standards Board (MASB) standards and the
Mandatory Accreditation Programme (MAP)
sessions for directors of public listed companies.
W ith the introduction of the Continuing Professional
Education (CPE) for dealers representatives by the
Securities Commission in January 2001, RIIAM has
been recognised as a training provider for CPE.
70
The most significant activity for RIIAM is the
implementation of the MAP for directors of public
listed companies. Pursuant to the introduction of the
new Listing Requirements in February 2001, RIIAM
has been assigned by KLSE to conduct the MAP
which consists of a one and a half day seminar.
RIIAM has been conducting the MAP sessions since
April 2001. Apart from the weekly MAP sessions for
the public, RIIAM has also conducted in-house
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Abdullah Naib
Director
riiam
MAP sessions for several large corporate groups as
requested. More than 3,000 directors of public listed
companies have attended the MAP to date.
resounding success as it allows the investing public
the opportunity to interact and provide comments
on investment related issues.
In September 2000, RIIAM assisted KLSE to
organise the Investors Week 2000. RIIAM was
tasked to organise Investor Education talks, which
comprised of various topics ranging from basic
information on the stock market and investment to
professional topics like derivatives and other
instruments. The talks were an overwhelming
success. Apart from Investors Week, together with
KLSE, RIIAM has participated in numerous
roadshows. The roadshows/exhibitions have been a
As the training arm of KLSE and centre for professional
development and investor education in the securities
industry, RIIAM is promoting high standards of
competency in analysis and research activities.
71
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RIIAM has assisted KLSE in organising road-shows
to introduce the new Listing Requirements
t
h
r
o
u
g
h
o
u
t
the country. A one day conference on the new
Listing Requirements was organised in March 2001.
The conference was very well received with more
than 500 participants. RIIAM has also assisted the
Institute of Internal Auditors Malaysia to organise
workshops on Statement on Internal Control:
Guidance for directors of public listed companies .
The RIIAM Diploma in Investment Analysis
programme has come into its eighth year in 2001
with classes conducted in Kuala Lumpur, Penang
and Kuching. The collaboration with University
Putra Malaysia to conduct the Diploma programme
for its students has entered into its second year
with an increasing number of students taking the
programme. Since the collaborative effort has
proven to be successful, RIIAM is approaching other
public universities with the view of having similar
collaborations.
KLSE is offering 15 scholarships each year for
qualified candidates of the RIIAM diploma
programme. This is further strengthened with the
commitment of the Association of Stockbroking
Companies in Malaysia (ASCM) to contribute
awards and cash prizes for the top 3 graduates of
the diploma programme for 5 consecutive years
During the year, RIIAM organised more than 130 training
programmes which included in-house programmes for
KLSE Group staff and public programmes for various
target groups.
72
beginning 2000. In addition, ASCM will offer 5
scholarships to employees of stockbroking
companies to pursue the diploma programme.
KLSE-RIIAM Information Service (KLSE-RIS)
recorded an increase in the number of users and
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Calendar of Events
20 November 2000
Inter-branch Transaction
Malaysian Central Depository introduced a new
facility called Inter-branch Transaction (IBT) with
effect
from
20 November 2000.
W ith the implementation of IBT, depositors can now
perform their CDS transactions such as transfers,
deposits, updating of accounts, closure of accounts,
account balance enquiries and printing of ad-hoc
statements at any branch offices without having to
go to the home branch where the CDS account is
maintained.
held later that evening at Hotel Nikko Kuala
Lumpur.
20 December 2000
Shorter T + 3 Delivery and Settlement Period
The T + 3 delivery and settlement period was
introduced on 20 December 2000. The benefit of T
+ 3 extends to various industry participants.
Investors will particularly benefit from the shorter
settlement period which reduces risk and exposure
as the shares and cash are settled earlier.
2 January 2001
23 November 2000
Launch of Labuan International
Financial Exchange
Labuan International Financial Exchange (LFX) was
established on 23 November 2000 in Labuan,
Malaysia s international offshore financial centre. LFX
is primarily web-based with all functions of the
Exchange
from the application for a market
participant s licence to the trading of financial
instruments and the dissemination of information
done on the @ LFX system via the Internet.
Electronic Management of Provisional
Allotment Letters
All Provisional Allotment Letters (PALs) in relation
to abridged prospectuses despatched on or after 2
January 2001 will be allotted and managed
electronically under the Central Depository System
25 November 2000
24th KLSE Annual General Meeting & Annual
Members Dinner
The KLSE s 24th Annual General Meeting was held
on 25 November 2000 at Exchange Square in Bukit
Kewangan, while the Members Dinner 2000 was
73
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Calendar of Events
unless specifically exempted under the law or MCD s
rules. The main objective of the immobilisation is to
ensure greater security and operational efficiency in
managing listed securities.
22 January 2001
New Listing Requirements
The new KLSE Listing Requirements were issued
as an integral part of KLSE s continuous efforts to
develop a dynamic and robust stock market as well
as to promote the credibility and efficiency of our
market to benefit listed companies, directors, major
shareholders and minority investors alike.
31 January 2001
Issuance of Practice Notes
KLSE issued Practice Notes to assist compliance
with the revamped Listing Requirements on 31
January 2001 and on 1 June 2001. The main
V isit by Seri Paduka Baginda Yang Dipertuan
Agong and Raja Permaisuri Agong
KLSE was honoured to host a visit by the royal
couple on 13 February 2001. The royal couple was
briefed on the current and future developments of
the KLSE and was also given a guided tour of the
Information Gallery.
16 February 2001
Guidance on Internal Controls
The Taskforce on Internal Controls, established by
KLSE, issued the guidance
Statement on Internal
Control: Guidance for Directors of Public Listed
Companies , which was aimed at guiding directors
of listed companies in making disclosures on the
state of internal control of their companies in their
annual reports as required by paragraph 15.27(b) of
the new Listing Requirements.
20 April 2001
Yayasan BSKL Convertible Interest-Free Study
Loan Scheme
Yayasan BSKL announced the introduction of its
Convertible Interest-Free Study Loan Scheme for
the 2001/2002 academic year, following the
successful implementation of its inaugural Study
Loan Scheme which was launched last year.
9 May 2001
objective of the Practice Notes is to promote better
understanding of the new Listing Requirements
amongst public listed companies, directors, advisers
and other industry participants to facilitate
consistent application of the new Listing
Requirements.
13 February 2001
74
KLSE Annual Dialogue Sessions
KLSE commenced its annual dialogue sessions
with industry partners on 9 May 2001. Up to
October
2001,
a total of 16 sessions have been held. The
dialogues are for the purpose of discussing current
issues of mutual interest relating to all parties
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14 June 2001
KLSE Smart Investor Roadshows
KLSE Smart Investor Roadshows held in Miri,
Sarawak from 14-15 June 2001 and in Kuantan,
Pahang
from
29-30 June 2001 aimed to educate investors on the
fundamentals of smart investing and to keep
investors and the general public updated on the
latest developments in the stock market and
securities industry.
concerned.
21 June 2001
19 May 2001
KLSE Family Day 2001
A total of 2,779 persons, which included staff and
their family members participated in this annual gettogether, held on 19-20 May 2001 at Port Dickson.
It was a fun-filled and memorable event for the staff
and their family members.
Inaugural Listing at LFX
The inaugural listing on the Labuan International
Financial Exchange (LFX) took place on 21 June
2001, with the secondary listing of a USD250
million bond issue by 1st Silicon (Labuan) Inc. The
inaugural listing capitalises on the capability of LFX
to cater for the listing of a wide variety of multicurrency instruments.
11 June 2001
Integrated Derivatives Exchange Benefits Market,
Industry
27 June 2001
The establishment of Malaysia Derivatives
Exchange Bhd
the result of the merger between
the Kuala Lumpur Options and Financial Futures
Exchange and the Commodity and Monetary
Exchange of Malaysia signified the formation of a
single derivatives exchange on 11 June 2001. The
integrated derivatives exchange will offer a wide
range of derivatives products and services including
KLSE Composite Index Futures and Options, Crude
Palm Oil Futures and Kuala Lumpur Inter-Bank
Offered Rate Futures.
MESDAQ set to join KLSE Group
KLSE and the Malaysian Exchange of Securities
Dealing Automated Quotation Bhd (MESDAQ)
signed a memorandum of understanding to set out
the agreement for both parties to enter into detailed
negotiations to facilitate the consolidation exercise.
The objective of integrating the existing exchanges
into a single exchange is to enhance the efficiency
and competitiveness of the Malaysian capital
market and securities industry.
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Calendar of Events
6 July 2001
KLSE Group Staff Annual Dinner
A total of 1,500 KLSE Group staff and their
spouses attended the KLSE Group Staff Annual
Dinner 2001 which was held at Mandarin Oriental. It
was a memorable night for the staff who were
entertained by homegrown talents and professional
artistes.
representatives of stockbroking companies and
custodian banks.
The workshop covered a comprehensive range of
issues including strategic initiatives to enhance
infrastructure support, market intermediaries
operations and consolidation of market institutions.
18 July 2001
Enhanced Settlement Service for
Institutional Investors
KLSE enhanced its settlement service to local and
foreign institutional investors with the expansion of its
Institutional Settlement Service (ISS) to include
direct business transactions. The implementation of
ISS for direct business transactions is a significant
step in ensuring local and foreign institutional
investors continue to have access to a secure and
efficient clearing and settlement system whilst
enhancing the DVP environment in line with
international best practices.
14 July 2001
Clearing, Settlement & Depository Workshop
Malaysian Central Depository Sdn Bhd (MCD) and
Securities Clearing Automated Network Services
Sdn Bhd (SCANS) organised the inaugural Clearing,
Settlement & Depository Workshop on 14 July 2001
which was attended by 160 participants comprising
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26 July 2001
Familiarisation visits to Public Listed Companies
As part of KLSE s efforts to promote understanding,
goodwill and closer ties with companies listed on
the Exchange, the KLSE Group visited Kumpulan
Guthrie Berhad on 26 July 2001. Subsequently, a
similar visit was made to Dialog Group Berhad on
6 August 2001 and several others are planned for
this year.
8 August 2001
Annual Kuala Lumpur Rat Race for Charity 2001
Yayasan BSKL hosted the Annual Kuala Lumpur
Rat Race for Charity 2001, with funds raised at the
event contributed to community organisations.
The Race saw a total of 46 companies fielding 300
participants. A total of RM450,000.00 was collected
and subsequently donated to Hospis Malaysia,
National Autism Society of Malaysia, Malaysian
Paralympic Council, National Kidney Foundation and
Spastic Children s Association of Selangor &
Federal Territory.
21 July 2001
12th Annual KLSE-FPLC Golf Tournament & Lunch
The 12th Annual KLSE-FPLC Golf Tournament &
Lunch was held on 21 July 2001 at Palm Garden
Golf Club, IOI Resort, Putrajaya.
23 July 2001
CLOB Solution Concluded
The comprehensive solution to regularise securities
formerly traded under the Central Limit Order Book
(CLOB) achieved the objective of maintaining a fair
and orderly market.
The comprehensive solution, amongst others,
included a 13-month staggered release of CLOB
traded securities from July 2000 to July 2001. The
release of the final balance of CLOB traded
securities under the 13-month staggered release
was completed on 23 July 2001.
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Statutory regulation alone cannot
promote the development of
excellent standards in corporate
governance. Developing these
standards takes the combination of
regulation by the authorities and
self-regulation by industry
KLSE_E_Accs_August2001
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Financial Statements
80
Report of the Committee
Consolidated Income
Statement
84
88
Statement by The Committee Consolidated Statement of
Changes in Equity
84
Statutory Declaration
89
Consolidated Cash Flow
85
Statement
Auditors Report
92
86
Balance Sheet
Consolidated Balance Sheet
93
87
Income Statement
94
Statement of Changes in
Equity
95
Cash Flow Statement
96
Notes to The Financial
Statements
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Report of The Committee
The Committee hereby submit their report together with the audited financial statements of the Exchange
and the Group for the financial year ended 30 June 2001.
Principal Activities
The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting the
business of a stock exchange in Malaysia.
The principal activities of the subsidiaries are described in Note 9 to the financial statements.
There were no significant changes in these activities during the financial year except for the addition of
commodity and interest rate futures and options clearing and exchange activities arising from the merger
of the business operations of Commodity and Monetary Exchange of Malaysia ( COMMEX ) with Malaysia
Derivatives Exchange Bhd. ( MDEX ) (formerly known as The Kuala Lumpur Options & Financial Futures
Exchange Bhd.).
Results
Net surplus for the year
Group
RM
Exchange
RM
24,152,620
36,574,686
Reserves and Provisions
There were no material transfers to or from reserves or provisions during the financial year other than as
disclosed in the Consolidated Statement of Changes in Equity and the transfers made to the Compensation
Fund of Malaysian Central Depository Sdn Bhd as disclosed in Note 21 to the financial statements.
Bad and Doubtful Debts
Before the income statements and balance sheets were made out, the Committee took reasonable steps
to ascertain that action had been taken in relation to the writing off of bad debts and the making of
provision for doubtful debts and satisfied themselves that all known bad debts had been written off and
that adequate provision had been made for doubtful debts.
At the date of this report, the Committee is not aware of any circumstances which would render the
amounts written off as bad debts or provided for as doubtful debts in the financial statements of the
Exchange and the Group inadequate to any substantial extent.
Current Assets
Before the income statements and balance sheets were made out, the Committee took reasonable steps
to ensure that any current assets which were unlikely to be realised in the ordinary course of business
including their values as shown in the accounting records of the Exchange and the Group have been
written down to an amount which they might be expected so to realise.
At the date of this report, the Committee is not aware of any circumstances which would render the values
attributed to the current assets in the financial statements of the Exchange and the Group misleading.
80
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81
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Report of The Committee
Valuation Methods
At the date of this report, the Committee is not aware of any circumstances which have arisen which
render adherence to the existing methods of valuation of assets or liabilities of the Exchange and the
Group misleading or inappropriate.
Contingent and Other Liabilities
At the date of this report, there does not exist:
(a) any charge on the assets of the Exchange or the Group which has arisen since the end of the
financial year which secures the liabilities of any other person; or
(b) any contingent liability of the Exchange or the Group which has arisen since the end of the financial
year.
No contingent or other liability 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 Committee, will or may
substantially affect the ability of the Exchange or the Group to meet their obligations when they fall due.
Change of Circumstances
At the date of this report, the Committee is not aware of any circumstances not otherwise dealt with in
this report or the financial statements of the Exchange or the Group which would render any amount stated
in the financial statements misleading.
Items of an Unusual Nature
The results of the operations of the Exchange and the Group during the financial year were not, in the
opinion of the Committee, 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 Committee, to affect
substantially the results of the operations of the Exchange or the Group for the financial year in which this
report is made.
Significant Events
The significant events during the financial year are disclosed in Note 30 to the financial statements.
Subsequent Event
The subsequent event is disclosed in Note 31 to the financial statements.
82
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Page 83
Committee Members
The Committee Members who served since the date of the last report are:
Dato Mohammed Azlan bin Hashim
Datuk Mohaiyani binti Shamsudin
Chan Guan Seng
Tan Kim Leong
Abdul Kadir bin Haji Md Kassim
Abdul Wahab bin Nan Abidin
Peter Leong Tuck Leng (elected on 25 November 2000 and effective 1 January 2001)
Yusli bin Mohamed Yusoff (elected on 25 November 2000 and effective 1 January 2001)
Abdul Jabbar bin Abdul Majid (appointed on 18 January 2001)
Dato Ranita binti Mohd. Hussein (retired on 31 December 2000)
Johari bin Hassan (retired on 31 December 2000)
Abang Zainal Abidin bin Abang Ahmad (retired on 31 December 2000)
Dato Mohammed Azlan bin Hashim, Tan Kim Leong, Abdul Kadir bin Haji Md Kassim and Abdul Jabbar
bin Abdul Majid were appointed by the Minister of Finance pursuant to Section 8(3) of the Securities
Industry Act, 1983 and are not subject to retirement by rotation.
Pursuant to Article 10.3(1) of the Exchange s Articles of Association, two of the current Elected Committee
Members are required to retire at the 25th Annual General Meeting. Pursuant to Article 10.3(2), the two
so retiring are Abdul Wahab bin Nan Abidin and Chan Guan Seng. Pursuant to Article 10.3(3), both
gentlemen are eligible for re-election.
Committee Members Benefits
During and at the end of the financial year, no arrangements subsisted to which the Exchange or its
subsidiaries is a party with the object of enabling Committee Members of the Exchange to acquire benefits
by means of the acquisition of shares in or debentures of any other body corporate.
Since the end of the previous financial year, no Committee Member of the Exchange has received or
become entitled to receive a benefit (other than the fixed salary of a full-time employee of the Exchange,
reimbursement of expenditure incurred in attending Committee Meetings in the form of meeting allowances
and any other benefits in kind as disclosed in the financial statements) by reason of a contract made by
the Exchange or a related corporation with the Committee Member or with a firm of which the Committee
Member is a member, or with a company in which the Committee Member has a substantial financial
interest.
Committee Members Interests
The Exchange is a company limited by guarantee and, thus, has no shares in which the Committee
Members could have an interest. Similarly, the Exchange has not issued any debentures.
None of the Committee Members in office at the end of the financial year had any interest in shares in its
related corporations during the financial year.
83
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Page 84
Statement by The Committee
W e, DATO MOHAMMED AZLAN BIN HASHIM and DATUK MOHAIYANI BINTI SHAMSUDIN, being two of
the Committee Members of KUALA LUMPUR STOCK EXCHANGE, do hereby state that, in the opinion of
the Committee, the financial statements set out on pages 86 to 117, give a true and fair view of the state
of affairs of the Exchange and of the Group as at 30 June 2001 and of their results and their cash flows
for the year then ended, and have been properly drawn up in accordance with the provisions of the
Companies Act, 1965 and applicable approved accounting standards in Malaysia.
Signed on behalf of the Committee
in accordance with a resolution
of the Committee Members
D ATO
MOHAMMED AZLAN BIN HASHIM
D ATUK MOHAIYANI BINTI SHAMSUDIN
Kuala Lumpur
Dated: 18 September 2001
Statutory Declaration
I, DATO MOHD SALLEH BIN ABDUL MAJID, the officer primarily responsible for the financial management
of KUALA LUMPUR STOCK EXCHANGE, do solemnly and sincerely declare that the financial statements
set out on pages 86 to 117 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 the
)
abovenamed DATO MOHD SALLEH
)
BIN ABDUL MAJID at Kuala Lumpur in
)
W ilayah Persekutuan on 18 September 2001
Before me:
Commissioner for Oaths
84
)D ATO
MOHD SALLEH BIN ABDUL MAJID
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Page 85
Auditors Report
To the Members of
KUALA LUMPUR STOCK EXCHANGE
W e have audited the financial statements set out on pages 86 to 117. These financial statements are the
responsibility of the Committee Members. Our responsibility is to express an opinion on these financial
statements based on our audit.
W e conducted our audit in accordance with approved Standards on Auditing in Malaysia. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by the Committee Members, as well as
evaluating the overall financial statements presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion:
(a) the financial statements have been properly prepared in accordance with the provisions of the
Companies Act, 1965 and applicable approved accounting standards in Malaysia and give a true and
fair view of:
(i)
the state of affairs of the Exchange and of the Group as at 30 June 2001 and of their results
and their cash flows for the year then ended; and
(ii)
the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial
statements;
(b) the accounting and other records and the registers required by the Act to be kept by the Exchange
and its subsidiaries of which we acted as auditors have been properly kept in accordance with the
provisions of the Act.
W e have considered the financial statements and the auditors reports of all the subsidiaries of which we
have not acted as auditors, as indicated in Note 9 to the financial statements, being financial statements
that have been included in the consolidated financial statements.
W e are satisfied that the financial statements of the subsidiaries that have been consolidated with the
financial statements of the Exchange are in form and content appropriate and proper for the purposes of
the preparation of the consolidated financial statements and we have received satisfactory information and
explanations required by us for these purposes.
The auditors reports on the financial statements of the subsidiaries were not subject to any qualification
or any adverse comment made under subsection (3) of Section 174 of the Act.
ARTHUR ANDERSEN & CO
No AF 0103
Public Accountants
WONG KANG HWEE
No 1116/01/02(J)
85
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Page 86
Consolidated Balance Sheet
30 June 2001
Note
CURRENT ASSETS
Cash and bank balances
Short term deposits
Receivables
Short term investments
Due from an associated company
Due from Compensation Fund
CURRENT LIABILITIES
Short term borrowings
Taxation
Trade payables
Sundry payables
NET CURRENT ASSETS
ASSOCIATED COMPA N Y
OTHER INVESTMENTS
P R O P E RTY, PLANT AND EQUIPMENT
STAFF LOANS RECEIVABLE
INTANGIBLE ASSETS
RETIREMENT BENEFITS
DEFERRED INCOME
DEFERRED TA X ATION
LONG TERM BORROWINGS
LONG TERM LIABILITY
MINORITY INTERESTS
3
4
5
2001
RM
2000
RM
17,407,580
869,443,506
62,236,011
88,535,404
5,849,900
1,021,571,308
56,271,817
544,182
1,915,551
17
8
1,039,538,052
1,084,237,207
219,700
41,746,828
93,162,717
52,755,571
66,842,762
2,429,524
59,030,543
187,884,816
128,302,829
851,653,236
955,934,378
5,179,745
57,583,840
406,516,450
26,231,414
21,150
(13,026,191)
10
11
12
13
14
166,198,527
381,717,812
38,923,147
15
16
17
18
(14,041,806)
(3,102,983)
(34,000)
(1,757,600)
(48,874,376)
(24,268,982)
(3,652,200)
(49,412,937)
(46,516,847)
1,346,412,975
1,338,858,802
96,960,000
1,235,709,105
13,749,969
(6,099)
96,960,000
1,189,150,514
2,750,000
(1,712)
1,346,412,975
1,288,858,802
50,000,000
1,346,412,975
1,338,858,802
Represented by:
MEMBERSHIP FEES
A C C U M U L ATED FUNDS
CAPITAL RESERV E
FOREIGN EXCHANGE RESERV E
C O M P E N S ATION FUND
The accompanying notes are an integral part of this balance sheet.
86
19
20
21
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Page 87
Consolidated Income Statement
for the year ended 30 June 2001
Note
2001
RM
2000
RM
Revenue
Non-operating income
22
23
183,378,898
56,712,946
436,425,361
86,210,325
Staff cost
Depreciation
Other operating expenses
24
25
240,091,844
(78,238,214)
(36,364,380)
(74,016,422)
522,635,686
(77,139,092)
(52,711,103)
(116,248,699)
26
51,472,828
(1,124,611)
276,536,792
(2,190,319)
(500,583)
28
50,348,217
(25,133,493)
273,845,890
(126,215,825)
Net surplus from ordinary activities
Minority interests
25,214,724
(1,062,104)
147,630,065
(8,202,741)
24,152,620
139,427,324
Surplus from operations
Finance cost
Share of losses of associated company
Surplus before taxation
Taxation
The accompanying notes are an integral part of this statement.
87
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Page 88
Consolidated Statement of Changes in Equity
Membership
fees
RM
At 1 July 1999
Net surplus for
the year
Contributions during
the year
Currency translation
differences
Transfer to capital
reserve
Transfer to
Compensation Fund
(Note 29)
Capital
reserve
RM
Foreign
exchange
reserve
RM
93,950,000
Total
RM
1,062,795,750
1,156,745,750
139,427,324
139,427,324
3,010,000
3,010,000
(1,712)
2,750,000
(1,712)
(2,750,000)
(10,322,560)
(10,322,560)
(13,072,560)
(7,314,272)
3,010,000
2,750,000
(1,712)
At 30 June 2000
96,960,000
2,750,000
(1,712)
1,189,150,514
1,288,858,802
At 1 July 2000
Net surplus for
the year
Share premium from
the merger of
business operations
of COMMEX with
MDEX (Note 20)
Currency translation
differences
Transfer to
Compensation Fund
(Note 29)
Minority interest
portion of MCD
Compensation
Fund reinstated
(Note 21)
96,960,000
2,750,000
(1,712)
1,189,150,514
1,288,858,802
24,152,620
24,152,620
At 30 June 2001
10,999,969
10,999,969
(4,387)
(4,387)
(94,029)
96,960,000
(94,029)
22,500,000
22,500,000
10,999,969
(4,387)
22,405,971
33,401,553
13,749,969
(6,099)
1,235,709,105
1,346,412,975
88
Accumulated
funds
RM
1/2/02
12:12 PM
Page 89
Consolidated Cash Flow Statement
CASH FLOW FROM OPERATING ACTIVITIES
Adjustment for:
Share of loss of associated company
Depreciation
Property, plant and equipment written off
Amortisation of intangible assets
Net (write-back of)/provision for bad and doubtful debts
Preliminary and pre-operating expenses written off
Goodwill on acquisition written off
Net gain on sale of property, plant and equipment
W rite back of provision for diminution in value of investment
Recreational club membership benefits written off
Accretion of discount less amortisation of premium
Provision for retirement benefits
Net gain on disposal of investments
Interest income
Interest expense
Gross dividend income
2001
RM
2000
RM
50,348,217
273,845,890
36,364,380
1,283,701
(14,604,803)
21,150
6,061,088
(437,879)
309,095
(482,835)
4,301,365
(1,020,881)
(41,053,806)
132,730
500,583
52,711,103
22,096
860,106
1,269,520
34,569
(154,525)
(9,563,345)
129,112
(190,012)
7,163,192
(34,656,427)
(32,583,703)
477,972
(2,368,447)
Operating surplus before working capital changes
Decrease in receivables
Decrease in payables
Decrease in amount due from associated company
41,221,522
12,344,566
(17,744,130)
544,182
257,497,684
56,274,277
(16,892,764)
257,683
Cash generated from operations
Interest paid
Taxes paid
36,366,140
(132,730)
(53,881,917)
297,136,880
(407,620)
(45,083,437)
Net cash (used in)/generated from operating activities
(17,648,507)
251,645,823
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Page 90
Consolidated Cash Flow Statement
2001
RM
CASH FLOW FROM INVESTING ACTIVITIES
Net cash from acquisition of subsidiaries companies/net assets*
Dividends received
Increase in intangible assets
Purchase of unquoted bonds
Purchase of club memberships
Increase in loans granted to staff
Interest received
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net sale of investment securities
Net cash (used in)/generated from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Transfer to Compensation Fund
Redemption of preference shares from minority interest of a subsidiary
Decrease in long term liability
Increase in membership fees
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
90
2000
RM
109,491,609
(195,786,419)
(197,858)
(12,691,733)
36,823,318
(10,452,127)
524,185
(72,289,025)
2,368,447
(2,834)
(47,977,235)
(265,835)
(11,216,333)
30,250,974
(15,711,310)
290,920
191,035,729
148,772,523
(50,094,029)
(538,561)
(3,375,000)
(538,561)
3,010,000
(50,632,590)
(903,561)
(140,570,122)
1,027,421,208
399,514,785
627,906,423
Cash and cash equivalents at end of year
886,851,086
1,027,421,208
CASH AND CASH EQUIVALENTS COMPRISE:
Short term deposits
17,407,580
869,443,506
5,849,900
1,021,571,308
886,851,086
1,027,421,208
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Page 91
* Net cash from acquisition of subsidiary companies/net assets:
2001
RM
Short term deposits
Trade receivables
Sundry receivables
Investments
Property, plant and equipment
Trade payables
Sundry payables
Deferred income
Taxation
Short term borrowing
Long term borrowing
5,762,801
103,728,808
422,980
1,072,108
26,000
1,426,150
(90,359,804)
(2,476,752)
(3,121,170)
(34,290)
(219,700)
(1,757,600)
Net assets acquired
Investment in associated company
Goodwill on acquisition
14,469,531
(4,530,619)
6,061,088
Total consideration
16,000,000
Less: Purchase consideration
Issuance of B preference shares
Issuance of C preference shares
Share premium on preference shares issued
Balance payable to COMMEX members (included in sundry payables)
(16)
(15)
(10,999,969)
(5,000,000)
Cash and cash equivalents acquired
109,491,609
Net cash from acquisition
109,491,609
The effect of the said acquisitions on the financial results of the Group is not presented as the amount
involved is not material.
91
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Balance Sheet
Page 92
30 June 2001
Note
CURRENT ASSETS
Short term deposits
Receivables
Short term investments
Due from subsidiaries
CURRENT LIABILITIES
Taxation
Due to subsidiaries
Sundry payables
NET CURRENT ASSETS
SUBSIDIARIES
OTHER INVESTMENTS
P R O P E RTY, PLANT AND EQUIPMENT
STAFF LOANS RECEIVABLE
RETIREMENT BENEFITS
DEFERRED TA X ATION
LONG TERM LIABILITY
Represented by:
MEMBERSHIP FEES
A C C U M U L ATED FUNDS
The accompanying notes are an integral part of this balance sheet.
92
3
4
5
6
2001
RM
2000
RM
266,299
419,584,626
20,707,120
88,535,404
40,949,761
2,439,350
448,509,998
23,198,264
570,043,210
610,375,985
38,926,748
28,638,809
47,096,989
1,322,153
44,446,640
67,565,557
92,865,782
502,477,653
39,761,607
85,549,535
358,044,915
37,037,388
(9,383,740)
(48,874,376)
517,510,203
37,866,092
29,466,208
380,199,417
24,656,592
(8,646,279)
(3,601,000)
(49,412,937)
964,612,982
928,038,296
96,960,000
867,652,982
96,960,000
831,078,296
964,612,982
928,038,296
7
9
11
12
13
16
18
19
136,228,373
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Page 93
Income Statement
Note
2001
RM
2000
RM
Revenue
Non-operating income
22
23
165,680,364
26,679,562
421,937,027
59,348,665
Staff cost
Depreciation
Other operating expenses
24
25
192,359,926
(50,674,713)
(29,286,476)
(49,604,107)
481,285,692
(54,877,945)
(41,793,432)
(41,632,085)
Surplus from operations
Finance cost
26
62,794,630
(28,659)
342,982,230
(42,053)
Surplus before taxation and exceptional item
Exceptional item
27
62,765,971
(5,329,285)
342,940,177
(33,411,115)
28
57,436,686
(20,862,000)
309,529,062
(104,159,000)
36,574,686
205,370,062
Taxation
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Page 94
Statement of Changes in Equity
Membership
fees
RM
Accumulated
funds
RM
At 1 July 1999
Contributions during the year
93,950,000
3,010,000
625,708,234
At 30 June 2000
At 30 June 2001
205,370,062
719,658,234
3,010,000
205,370,062
96,960,000
831,078,296
36,574,686
928,038,296
36,574,686
96,960,000
867,652,982
964,612,982
94
Total
RM
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Page 95
Cash Flow Statement
2001
RM
2000
RM
CASH FLOW FROM OPERATING ACTIVITIES
Adjustment for:
Depreciation
Provision for retirement benefits
Net (write-back of)/provision for bad and doubtful debts
Provision for diminution in value of investments
Accretion of discount less amortisation of premium
Net gain on sales of property, plant and equipment
Net gain on disposal of investments
Interest income
Gross dividend income
57,436,686
309,529,062
29,286,476
4,015,693
(2,621,985)
5,329,285
(593,981)
(230,290)
(1,020,881)
(21,571,775)
(32,727,778)
41,793,432
6,018,821
131,994
23,847,770
(139,857)
(150,356)
(34,495,735)
(11,428,703)
(148,804,861)
Operating surplus before working capital changes
Decrease in receivables
(Decrease)/increase in payables
Decrease/(increase) in amount due from subsidiaries
37,301,450
6,716,835
(19,086,063)
117,948,237
186,301,567
1,261,628
10,087,854
(142,553,215)
Cash generated from operations
Taxes paid
142,880,459
(23,469,463)
55,097,834
(39,681,585)
Net cash generated from operating activities
119,410,996
15,416,249
CASH FLOW FROM INVESTING ACTIVITIES
Proceeds from disposal of investments
Purchase of unquoted bonds
Increase in investments in subsidiaries
Increase in loans granted to staff
Interest received
Dividends received
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash (used in)/generated from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Decrease in long term liability
Increase in membership fees
(143,003,869)
(7,224,800)
(12,380,796)
19,540,291
(7,173,916)
272,232
(149,970,858)
200,369,702
(29,326,351)
(10,216,476)
(10,600,954)
9,057,461
148,804,861
(38,992,060)
524,048
269,620,231
(538,561)
(538,561)
3,010,000
(538,561)
2,471,439
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
(31,098,423)
450,949,348
287,507,919
163,441,429
Cash and cash equivalents at end of year
419,850,925
450,949,348
Cash and cash equivalents comprise:
Short term deposits
266,299
419,584,626
2,439,350
448,509,998
419,850,925
450,949,348
Net cash (used in)/generated from financing activities
95
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Page 96
Notes to The Financial Statements
1.
30 June 2001
Principal Activities
The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting
the business of a stock exchange in Malaysia.
The principal activities of the subsidiaries are described in Note 9.
There were no significant changes in these activities during the financial year except for the addition
of commodity and interest rate futures and options clearing and exchange activities as disclosed in
Note 30(c).
2.
Significant Accounting Policies
(a) Basis of Accounting
The financial statements are prepared under the historical cost convention and comply with
applicable approved accounting standards in Malaysia.
(b) Basis of Consolidation
The consolidated financial statements include the financial statements of the Exchange and all its
subsidiaries made up to the end of the financial year.
The results of subsidiaries are included in the consolidated income statement from the effective
dates of their acquisition. Intragroup transactions are eliminated on consolidation and the
consolidated financial statements reflect external transactions only.
At the date of acquisition, the fair values of the subsidiaries net assets are determined and these
values are incorporated in the consolidated financial statements. The difference between the cost
of investments and the net assets of the subsidiaries at the date of acquisition represents
goodwill or reserve arising on consolidation. Goodwill net of reserve arising on consolidation is
written off to the income statement immediately.
(c) Associated Companies
The Group treats as associated companies those companies in which the Group has a long term
equity interest and where it exercises significant influence over the financial and operating
policies.
The Group s share of post acquisition profits less losses of associated companies is included in
the consolidated income statement and the Group s interest in associated companies is stated at
cost plus the Group s share of post-acquisition retained profits and reserves.
(d) Currency Conversion and Translation
Transactions in foreign currencies during the year are converted into Ringgit Malaysia at rates of
exchange approximating those ruling at the transaction dates. Foreign currency monetary assets
and liabilities at the balance sheet date are translated into Ringgit Malaysia at rates of exchange
approximating those ruling at that date. All exchange gains or losses are dealt with in the income
statement.
The USD denominated financial statements of a subsidiary are translated at year-end exchange
rates with respect to the balance sheet, and at the exchange rates at the date of the transactions
with respect to the income statement. All resulting translation differences are taken to reserves.
The exchange rate ruling for USD denominated balances at both balance sheet dates is RM3.80
: USD1.00.
96
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Page 97
2.
Significant Accounting Policies (cont d.)
(e) Property, Plant and Equipment and Depreciation
Property, plant and equipment is stated at cost less accumulated depreciation and impairment
losses. Depreciation on property, plant and equipment is provided on a straight line basis
calculated to write off the cost of each asset to their residual value over its estimated useful life
as follows:
Leasehold land
long term
Freehold and leasehold building and office lots
Renovations
Office equipment, electrical installation, furniture and fittings
Computers and office automation
Motor vehicles
99 years
2%
20%
10%
20%
20%
33.33%
20%
The leasehold building and office lots have a term of 99 years.
(f)
Subscriptions
The rates for monthly subscription fees are as follows:
Voting members
Dealing members (executive directors)
Non-dealing members (corporate/individual)
Non-dealing members (non-executive directors)
Dealers representatives
Trainee dealers representatives
RM
1,000
300
300
100
250
50
(g) Provision for Retirement Benefits
Exchange
Non-executive staff:
Retirement benefits of the Exchange for non-executive staff are paid to the Employees Provident
Fund and are charged against income for the year.
Exchange and Subsidiaries
Securities Clearing Automated Network Services Sdn Bhd ( SCANS )
Malaysian Central Depository Sdn Bhd ( MCD )
Labuan International Financial Exchange Inc ( LFX )
KLSE Property Management Sdn Bhd
Executive and non-unionised staff:
Retirement benefits are paid to an approved scheme at a rate determined by the Exchange and
the above subsidiaries with the advice of an actuary and such payments have been charged
against income for the year. In accordance with the rules of the Retirement Benefit Scheme, the
cost of retirement benefits under this scheme is determined based on triennial actuarial valuation
using the Attained Age actuarial valuation method. The last actuarial valuation was performed
on 30 June 1999.
97
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Page 98
2.
30 June 2001
Significant Accounting Policies (cont d.)
(h) Investments
(i) Investments in subsidiaries are stated at cost less provision for any permanent diminution in
value.
(ii)
Short term investments comprise unquoted securities which are managed by external fund
managers for the purpose of short term capital gains. These unquoted securities are stated
at the lower of cost or market value or indicative market value determined on an aggregate
basis.
(iii) Recreational club memberships, purchased for the use of directors of a subsidiary, are
written off over a period of two years. Other recreational club memberships are stated at
cost less provision for any permanent diminution in value.
(iv) Other investments comprise unquoted private debt securities that are acquired and held for
yield or capital growth and are usually held to maturity. Unquoted private debt securities are
stated at cost adjusted for amortisation of premium or net of accretion of discount. Provision
is made for permanent diminution in value where considered appropriate.
(i)
Deferred Taxation
Deferred taxation is provided under the liability method in respect of all material timing differences
except where it is reasonably expected that the tax effects of such deferrals will continue in the
foreseeable future.
(j)
Intangible Assets
Intangible assets comprise preliminary and pre-operating expenses which are stated at cost and
are charged to the income statement as and when incurred.
(k) Revenue Recognition
(i) Dividend income is recognised when the right to receive payment is established.
(ii)
Grants received by Malaysian Derivatives Clearing House Berhad ( MDCH ), a subsidiary,
from the Securities Commission, are recognised as income over the periods necessary to
match them with the related costs which they are intended to compensate, on a systematic
basis.
(iii) Interest income comprises interest income recognised on fixed deposits and unquoted
bonds. Interest income of the Group also includes interest earned on Compensation Fund s
deposits and investments. Interest income is recognised on an accrual basis.
(iv) Other than the above, all other revenue is recognised on an accrual basis.
(l)
Provision for Doubtful Debts
Provision for doubtful debts is made on all debts which are six months or older.
(m) Cash and Cash Equivalents
Cash and cash equivalents include cash on hand and in banks, short term deposits, net of bank
overdrafts and short term borrowings.
98
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Page 99
3.
Short Term Deposits
Group
Deposits with:
Licensed banks
Licensed finance companies
Licensed discount houses
Licensed merchant banks
Repurchase agreement with
a discount house
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
649,974,700
187,573,123
20,556,142
10,593,512
871,691,263
85,654,047
47,699,998
13,200,000
295,434,455
105,555,000
18,406,142
365,650,000
36,660,000
46,199,998
868,697,477
1,018,245,308
419,395,597
448,509,998
746,029
3,326,000
189,029
869,443,506
1,021,571,308
419,584,626
448,509,998
Included in short term deposits are:
Group
Deposits pledged with licensed
banks for banking facilities
granted
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
51,200,000
51,200,000
1,200,000
1,200,000
Short term deposits of the Exchange and Group amounting to RM13,991,628 (2000: RMNil) are
managed by external fund managers.
4.
Receivables
Group
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
Trade receivables
Sundry receivables
23,352,856
43,724,990
48,152,627
27,850,069
12,022,072
10,320,616
17,865,299
9,697,852
Provision for doubtful debts
67,077,846
(4,841,835)
76,002,696
(19,730,879)
22,342,688
(1,635,568)
27,563,151
(4,364,887)
62,236,011
56,271,817
20,707,120
23,198,264
99
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Page 100
4.
30 June 2001
Receivables (cont d.)
The movement of provision for doubtful debts is as follows:
Group
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
19,730,879
19,182,562
4,364,887
4,721,905
Balance at 1 July 2000/1999
Net (write-back of)/provision for
doubtful debts
Amount written off
(14,604,803)
(284,241)
Balance at 30 June 2001/2000
4,841,835
1,269,520
(721,203)
19,730,879
(2,621,985)
(107,334)
1,635,568
131,994
(489,012)
4,364,887
Included in trade receivables of the Group in the previous financial year was an amount of
RM9,818,607 owed by Member companies of the Exchange to a subsidiary under a credit facility
scheme.
5.
Short Term Investments
Group
2001
RM
At cost:
Malaysian Government Securities
( MGS )
Unquoted bonds
Indicative market price of
unquoted bonds
Market value of MGS
Exchange
2000
RM
2001
RM
4,872,940
83,662,464
4,872,940
83,662,464
88,535,404
88,535,404
84,887,415
4,895,515
84,887,415
4,895,515
2000
RM
Short term investments of the Exchange and Group are managed by external fund managers on
behalf of the Exchange.
6.
Due from Subsidiaries
Exchange
Included in amounts due from subsidiaries in the previous year was an amount of RM129,608,795
relating to royalty receivable on clearing fees from a subsidiary which was received in the current year.
The amounts due from subsidiaries are unsecured, interest free and have no fixed terms of repayment
except for amounts due from three subsidiaries amounting to RM5,987,422 which bear interest of
between 6.80% to 8.80% per annum (2000: 8.80% to 9.25% per annum).
100
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Page 101
7.
Due to Subsidiaries
Exchange
The amounts due to subsidiaries in the previous financial year were unsecured, interest free and have
no fixed terms of repayment.
8.
Trade Payables
Included in trade payables of the Group is RM92,268,486 (2000: RMNil) relating to amounts due to
futures and options brokers. The amount arises principally from accruals made for margin payable to
MDCH. Full control and ownership in MDCH was effectively transferred to the Group pursuant to the
transfer of all assets and liabilities from Commodity and Monetary Exchange of Malaysian
( COMMEX ) to Malaysia Derivatives Exchange Bhd ( MDEX ) in the current year as disclosed in Note
30(c).
9.
Subsidiaries
Exchange
2001
RM
Unquoted shares, at cost
Provision for diminution in value
(i)
2000
RM
78,502,007
(38,740,400)
71,277,207
(33,411,115)
39,761,607
37,866,092
Details of the subsidiaries are as follows:
Name of Company
Effective Interest Principal Activities
2001
%
2000
%
100
r
100
55
i
55
n
Compiling,
providing
and
a
t
i
n
g
real-time share price and other
relevant
financial/economic
information from the Exchange to
various subscribers.
55
t
55
Maintaining and operating a
r
a
l
depository in respect of securities
listed on stock exchanges in
Malaysia.
Incorporated in Malaysia:
(a) Securities Clearing Automated
c
o
n
t
Network Services Sdn Bhd
(b) KLSE-Bernama Real-Time
d
i
s
s
e
Information Services Sdn Bhd
(c)
c
Malaysian Central Depository
e
n
Sdn Bhd
m
a
Providing clearing facilities for
c
t
s
between clearing members.
101
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12:13 PM
Page 102
(d) Malaysian Share Registration
s
h
Services Sdn Bhd
(e) KLSE Property Management
a
Sdn Bhd (formerly known as
KLSE Realty Sdn Bhd)
102
30 June 2001
51
a
51
Providing and/or undertaking
r
e
registration services.
100
n
100
Providing building management
d
security services.
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Page 103
9.
Subsidiaries (cont d.)
Name of Company
Effective Interest Principal Activities
2001
%
2000
%
55
55
Acting as nominees for Malaysian
Central Depository Sdn Bhd and
to receive securities and property
on deposit or for safe-custody or
management.
(g) KLOFFE Capital Sdn Bhd
100
100
Investment holding and the
promotion of derivative instruments
and exchanges.
(h) Malaysia Derivatives Exchange Bhd
o
p
e
(formerly known as The Kuala
t
r
a
Lumpur Options & Financial
a
Futures Exchange Bhd)
100
r
100
To establish, maintain, conduct,
a
t
e
and promote a market for the
i
n
g
of futures and options contracts
d
facilities for the registration of
dealings and settlement of trades
in such contracts.
(i)
a
KLOFFE Information Systems
c
t
i
Sdn Bhd
100
100
Dormant
intended principal
t
i
e
s
are to provide information
technology and management
services.
(j)
Labuan International Financial
Exchange Inc.*
100
100
To provide, regulate and maintain
facilities for conducting the
business of an offshore stock
exchange in Labuan.
(k)
Commodity and Monetary
Exchange of Malaysia**
100
(l)
Malaysian Derivatives Clearing
House Berhad**
100
(f)
Malaysian Central Depository
Nominees Sdn Bhd
(m) Malaysia Monetary Exchange
Berhad**
*
**
d
n
v
i
100
Dormant.
50
Providing clearing, settling and
guaranteeing of futures and
options contracts executed on
derivatives exchanges and the
administration and enforcement of
its business rules.
Dormant.
Incorporated in the Federal Territory of Labuan, Malaysia.
Audited by another firm of auditors.
In the current year, MDCH and MME effectively became subsidiaries of the Exchange pursuant
to the merger of the business operations of COMMEX with MDEX as disclosed in Note 30(c).
COMMEX is a company limited by guarantee under the Companies Act, 1965 and owns 100%
of the issued and paid-up capital of MME, which in turn, owns 50% of the issued and paid-up
capital of MDCH.
103
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Page 104
104
30 June 2001
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Page 105
10. Associated Company
Group
2001
RM
2000
RM
Unquoted shares, at cost
Share of post acquisition profit
4,000,000
1,179,745
5,179,745
The analysis of the associated company is as follows:
2001
RM
2000
RM
Group s share of net tangible assets
5,179,745
The associated company in the previous financial year refers to MDCH, which effectively became a
fully owned subsidiary of the Exchange pursuant to the merger of the business operations of
COMMEX with MDEX as disclosed in Note 30(c).
11. Other Investments
Group
Unquoted, at cost:
Private debt securities
Accretion of discount less
amortisation of premiums
Recreational club memberships
Add: Acquired during the year
Less: W ritten off
Provision for diminution in
value of investments
Indicative market value of
unquoted private debt securities
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
165,614,250
57,147,352
85,010,700
29,326,352
408,219
127,393
538,835
139,856
166,022,469
57,274,745
85,549,535
29,466,208
309,095
197,858
(309,095)
172,372
265,835
(129,112)
(21,800)
176,058
309,095
166,198,527
57,583,840
85,549,535
29,466,208
173,525,465
57,630,167
89,503,070
29,698,640
105
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Page 106
30 June 2001
The club memberships are for the use of directors of a subsidiary, who are also Committee Members of
the Exchange.
12. Property, Plant and Equipment
Group
Cost
At 1 July 2000
Additions
Disposals
W ritten off
Acquisition of
subsidiaries
295,396,788
4,088,418
665,369
Total
RM
(4,713,747)
2,328,645
10,714,388
1,252,605
14,961,007
384,743,263
68,717,176
305,485,847
11,557,001
770,503,287
23,903,296
41,891,444
274,357,204
7,147,266
347,299,210
8,052,618
11,312,595
(10,277)
(3,125,778)
15,209,446
1,789,721
(1,352,395)
(38,047)
565,655
2,065,306
10,108,836
795,060
13,534,857
At 30 June 2001
32,512,210
52,133,290
295,798,370
8,341,605
388,785,475
Net Book Value
At 30 June 2001
352,231,053
16,583,886
9,687,477
3,215,396
381,717,812
At 30 June 2000
357,765,524
23,637,511
21,039,584
4,073,831
406,516,450
7,738,719
13,405,347
29,426,948
2,140,089
52,711,103
Depreciation
charge for 2000
65,528,955
4,425,072
(10,278)
(3,555,218)
Motor
vehicles
RM
753,815,660
11,509,599
(1,448,978)
(8,334,001)
Accumulated
Depreciation
At 1 July 2000
Charge for the
year
Disposals
W ritten off
Acquisition of
subsidiaries
381,668,820
2,418,433
Computers
and office
automation
RM
11,221,097
577,676
(1,438,700)
(55,677)
At 30 June 2001
106
Land and
buildings
Note 12(a)
RM
Office
equipment,
electrical
installation,
furniture
and fittings
RM
(9,359)
(9,359)
(3,877,116)
36,364,380
(1,362,672)
(7,050,300)
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Page 107
12. Property, Plant and Equipment (cont d.)
Exchange
Cost
At 1 July 2000
Additions
Disposals
Transfers from
a subsidiary
At 30 June 2001
Accumulated
Depreciation
At 1 July 2000
Charge for the
year
Disposals
Transfers from
a subsidiary
Office
equipment,
electrical
installation,
furniture
and fittings
RM
Computers
and office
automation
RM
57,423,060
3,839,263
231,539,555
924,917
556,849
4,724,741
40,000
5,321,590
366,639,582
61,819,172
237,189,213
8,041,508
673,689,475
20,575,521
36,492,049
219,569,391
5,047,687
281,684,648
6,882,277
10,375,800
10,636,516
1,391,883
(620,745)
556,849
4,710,665
26,667
5,294,181
Land and
buildings
Note 12(a)
RM
364,537,792
2,101,790
Motor
vehicles
RM
8,383,658
307,946
(690,096)
Total
RM
661,884,065
7,173,916
(690,096)
29,286,476
(620,745)
At 30 June 2001
27,457,798
47,424,698
234,916,572
5,845,492
315,644,560
Net Book Value
At 30 June 2001
339,181,784
14,394,474
2,272,641
2,196,016
358,044,915
At 30 June 2000
343,962,271
20,931,011
11,970,164
3,335,971
380,199,417
6,623,251
12,135,737
21,418,730
1,615,714
41,793,432
Depreciation
charge for 2000
107
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12:13 PM
Page 108
30 June 2001
12. (a) Land and Buildings
Group
Cost
At 1 July 2000
Additions
W ritten off
Acquisition of
subsidiaries
At 30 June 2001
Accumulated
Depreciation
At 1 July 2000
Charge for the
year
W ritten off
Acquisition of
subsidiaries
60,817,500
Leasehold
building and
office lots
RM
Freehold
building and
office lots
RM
284,431,719
2,101,790
31,904,477
Renovations
RM
4,515,124
316,643
(9,359)
Total
RM
381,668,820
2,418,433
(9,359)
665,369
665,369
60,817,500
286,533,509
31,904,477
5,487,777
384,743,263
3,769,924
15,685,584
2,406,578
2,041,210
23,903,296
765,834
5,742,958
638,089
905,737
(9,359)
8,052,618
(9,359)
565,655
565,655
At 30 June 2001
4,535,758
21,428,542
3,044,667
3,503,243
32,512,210
Net Book Value
At 30 June 2001
56,281,742
265,104,967
28,859,810
1,984,534
352,231,053
At 30 June 2000
57,047,576
268,746,135
29,497,899
2,473,914
357,765,524
538,561
5,711,204
638,089
850,865
7,738,719
Depreciation
charge for 2000
108
Leasehold
land
RM
1/2/02
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Page 109
12. (a) Land and Buildings (cont d.)
Exchange
Leasehold
land
RM
Leasehold
building and
office lots
RM
Freehold
building and
office lots
RM
Renovations
RM
Total
RM
Cost
At 1 July 2000
Additions
60,817,500
283,858,692
2,101,790
19,861,600
364,537,792
2,101,790
At 30 June 2001
60,817,500
285,960,482
19,861,600
366,639,582
Accumulated
Depreciation
At 1 July 2000
Charge for the
year
3,769,924
15,613,901
1,191,696
20,575,521
765,834
5,719,211
397,232
6,882,277
At 30 June 2001
4,535,758
21,333,112
1,588,928
27,457,798
Net Book Value
At 30 June 2001
56,281,742
264,627,370
18,272,672
339,181,784
At 30 June 2000
57,047,576
268,244,791
18,669,904
343,962,271
538,561
5,687,458
397,232
6,623,251
Depreciation
charge for 2000
Office lots represent office and car park space in multistorey buildings.
Included in the property, plant and equipment of the Group and the Exchange are the following cost
of fully depreciated assets which are still in use:
Group
Exchange
Leasehold buildings, office lots
and renovations
Office equipment, furniture
and fittings
Computer equipment
Motor vehicles
2001
RM
2000
RM
245,042
246,341
18,547,392
241,456,121
3,976,447
14,352,357
201,755,284
1,421,905
2001
RM
2000
RM
15,052,775
226,600,477
3,034,747
11,975,252
186,299,872
1,113,700
109
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30 June 2001
13. Staff Loans Receivable
Group
Housing loans
Vehicle loans
Computer loans
Portion repayable within twelve
months included in sundry
receivables
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
38,360,251
2,739,885
229,753
26,204,764
2,900,039
655
36,769,042
2,220,025
183,489
24,936,759
2,176,527
(2,406,742)
(2,874,044)
(2,135,168)
(2,456,694)
38,923,147
26,231,414
37,037,388
24,656,592
The staff housing and vehicle loans are secured against the properties and vehicles of the borrowers
respectively.
14. Intangible Assets
Group
Preliminary expenses
Pre-operating expenses
Less: Intangible assets written off
2001
RM
2000
RM
4,990
16,160
4,990
16,160
21,150
(21,150)
21,150
21,150
In prior years, the accounting policy was to write-off intangible assets upon commencement of
operations.
Included in pre-operating expenses in the previous financial year was audit fees of RM800.
15. Deferred Income
Deferred income of the Group relates to grants received by a subsidiary, MDCH, from the Securities
Commission and are recognised as income over the period necessary to match them with the related
costs which they are intended to compensate on a systematic basis.
110
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Page 111
16. Deferred Taxation
Group
Exchange
2001
RM
At beginning of year
Net transfer to income statement
At end of year
3,652,200
(3,618,200)
34,000
2000
RM
6,743,000
(3,090,800)
2001
RM
3,601,000
(3,601,000)
3,652,200
2000
RM
3,601,000
3,601,000
Deferred taxation of the Exchange in the previous year was in respect of timing differences between
depreciation and corresponding capital allowances and provisions.
17. Long Term Borrowings
Group
2001
RM
Long term borrowings
Less: Portion repayable within twelve months, included as
short term borrowings
2000
RM
1,977,300
(219,700)
1,757,600
Long term borrowings of the Group relate to amounts payable to the Government of Malaysia and
comprise two interest-free unsecured loans of RM697,000 and RM1,500,000. Each loan is repayable
in ten equal annual instalments, repayments of which commenced on 30 November 2000.
18. Long Term Liability
Group and Exchange
2001
RM
Long term liability
49,412,937
Less: Portion repayable within twelve months included in sundry payables(538,561)
48,874,376
2000
RM
49,951,498
(538,561)
49,412,937
Long term liability relates to the amount payable to the Government of Malaysia for the purchase of
leasehold land. The amount is payable in 99 annual instalments of RM538,561 each.
111
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Page 112
30 June 2001
19. Membership Fees
As at 30 June 2001
(i)
membership fees received from past and present members at RM10,000 each amounted to
RM2,960,000 (2000: RM2,960,000); and
(ii)
a total contribution of RM94,000,000 (2000: RM94,000,000) was received from members as
follows:
No of Members
Brought
forward
Total Contributions
Carried
forward
Contribution
per Member
RM 000
Brought
forward
RM 000
2001
5
51
6
5
51
6
5,000
1,000
3,000
25,000
51,000
18,000
25,000
51,000
18,000
62
62
94,000
94,000
2000
5
51
5
1
5
51
6
25,000
51,000
15,000
3,000
25,000
51,000
18,000
61
1
62
91,000
3,000
94,000
Additions
5,000
1,000
3,000
Additions
RM 000
Carried
forward
RM 000
20. Capital Reserves
Group
2001
RM
Group s portion of accumulated funds capitalised from redemption of
preference shares (Note a)
2,750,000
Share premium from merger of business operations of COMMEX with
MDEX (Note b)
10,999,969
13,749,969
2000
RM
2,750,000
2,750,000
(a) This relates to the Group s portion of accumulated funds capitalised arising from the redemption
of 5,000,000 5% redeemable cumulative preference shares of RM1 each by a subsidiary, MCD.
(b) MDEX issued 16 non-cumulative B preference shares and 15 non-cumulative C preference
shares of RM1.00 each at a total premium of RM10,999,969 as part consideration for the merger
of business operations of COMMEX and MDEX, as disclosed in Note 30(c). The share premium
arising from the above issue is regarded as capital reserve of the Group and is not distributable.
The B and C preference shares have been accounted for as part of the Group s minority
112
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Page 113
interest.
21. Compensation Fund
Group
2001
RM
At 1 July 2000/1999
Transfer from Accumulated Funds
Transfer to newly segregated Compensation Fund
50,000,000
94,029
(50,094,029)
At 30 June 2001/2000
2000
RM
39,677,440
10,322,560
50,000,000
In 1997, pursuant to the provisions of Section 5(1)(b)(vii) of the Securities Industry (Central
Depositories) Act, 1991, MCD, a subsidiary, established a scheme of compensation for the purpose
of settling claims by depositors against MCD, its authorised depository agents and Malaysian Central
Depository Nominees Sdn Bhd. The scheme comprises the Compensation Fund and insurance
policies. MCD has also established a policy to maintain the balance in the Compensation Fund at
RM50,000,000. In consideration for the above, all revenue accruing to the Compensation Fund
deposits and investments are to be credited to MCD and all expenditure incurred for and on behalf
of the Compensation Fund will be absorbed by MCD.
During the financial year, the MCD Compensation Fund was segregated and transferred from the
financial statements of the Group and accounted for separately. Pursuant to the said segregation, the
portion of Compensation Fund accruing to the minority shareholders of MCD amounting to
RM22,500,000 was reinstated to the accumulated funds of the Group.
22. Revenue
Group
Clearing fee
SCORE fee
Members subscription
Other income derived from operations of the Group
2001
RM
2000
RM
76,429,978
9,066,732
24,945,510
72,936,678
288,023,224
56,905,533
23,730,025
67,766,579
183,378,898
436,425,361
113
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Page 114
30 June 2001
22. Revenue (cont d.)
Exchange
Equipment rental income
Dividend income from subsidiaries
Royalty income from a subsidiary*
SCORE fee
Cost recoveries
Members subscriptions
Other income derived from operations of the Exchange
*
2001
RM
2000
RM
16,738,930
32,727,778
34,179,516
9,066,732
27,170,526
24,243,450
21,553,432
15,926,945
148,804,861
129,608,795
56,905,533
26,110,495
22,757,525
21,822,873
165,680,364
421,937,027
Royalty income from a subsidiary represents royalty receivable from SCANS, a wholly owned
subsidiary. The royalty payments came into effect on 1 July 2000.
23. Non-Operating Income
Included in non-operating income are:
Group
2001
RM
Gross dividend income from
investments quoted in Malaysia
Net gain on sale of property, plant
and equipment
437,879
Net gain on disposal of investments 1,020,881
W riteback of provision for
diminution in value of investments
Interest income (including
Compensation Fund income of
RM2,013,519) (2000: RMNil))
41,053,806
Accretion of discount less
amortisation of premium
(including Compensation Fund
amortisation of RM7,007
(2000: RMNil))
482,835
Exchange
2000
RM
2001
RM
2,368,447
154,525
34,656,427
2000
RM
2,368,447
230,290
1,020,881
9,563,345
150,356
34,495,735
9,563,345
32,583,703
21,571,775
11,428,703
190,012
593,981
139,857
24. Staff Cost
Included in staff cost of the Exchange and the Group are provisions for staff retirement benefits
amounting to RM4,015,693 (2000: RM6,018,821) and RM4,301,365 (2000: RM7,163,192) respectively.
114
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Page 115
25. Other Operating Expenses
Included in other operating expenses are:
Group
Auditors remuneration
Amortisation of intangible assets
Preliminary and pre-operating
expenses written off
Net (write-back of)/provision for
bad and doubtful debts
Property, plant and equipment
written off
Office rental
subsidiary
others
Goodwill on acquisition written off
Securities Commission levy
Office maintenance
Remuneration of
Committee Members
Fees
Other emoluments
Other directors of subsidiaries*
Fees
Other emoluments
Rental of equipment
Recreational club memberships
benefit to directors**
Service charge by a subsidiary
Security services charged by
a subsidiary
*
**
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
160,100
157,400
860,106
45,000
45,000
21,150
34,569
(14,604,803)
1,283,701
1,269,520
(2,621,985)
131,994
44,014
59,664
22,096
1,445,291
6,061,088
15,190,894
19,177,621
1,114,144
44,016
1,154,634
57,605,596
16,267,578
16,946,343
15,853,898
310,000
673,216
232,000
506,000
260,100
218,990
799,314
334,200
562,400
193,178
309,095
129,112
5,681,999
930,315
1,569,600
281,400
The estimated monetary value of other benefits not included in the above received by a director
of a subsidiary was RM61,912 (2000: RM27,550).
This represents cost of recreational club memberships, purchased for the use of directors of a
subsidiary who are Committee Members, written off
.
26. Finance Cost
Included in finance cost is:
Group
Interest expense
Exchange
2001
RM
2000
RM
132,730
477,972
2001
RM
2000
RM
115
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Page 116
30 June 2001
27. Exceptional Item
The exceptional item in the current financial year relates to provision for diminution in value of
investment in KLOFFE Capital Sdn Bhd amounting to RM5,329,285 (2000: RM33,411,115) to reflect
the net tangible assets value of KLOFFE Capital Sdn Bhd and its subsidiaries as at 30 June 2001.
The reduction in net tangible assets of KLOFFE Capital Sdn Bhd in the current year was due in part
to a capital reduction and consolidation exercise undertaken by MDEX, a wholly owned subsidiary of
KLOFFE Capital Sdn Bhd, as disclosed in Note 30(b) to the financial statements.
28. Taxation
Group
Current year charge
(Over)/under provision in
prior years
Transfer from deferred taxation
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
28,440,833
130,716,461
24,463,000
104,159,000
310,860
(3,618,200)
25,133,493
(1,409,836)
(3,090,800)
126,215,825
(3,601,000)
20,862,000
104,159,000
The effective tax rate of the Group and Exchange is higher than the statutory tax rate mainly due to
certain expenses being disallowed for tax purposes and the non-availability of Group relief for tax
losses by companies within the Group.
29. Transfer to Compensation Fund
Group
MCD Compensation Fund
Exchange
2001
RM
2000
RM
94,029
10,322,560
2001
RM
2000
RM
30. Significant Events
During the financial year,
(a) A subsidiary, LFX, increased its issued and paid-up share capital from USD100,000 to
USD2,000,000 through the allotment of 1,900,000 new ordinary shares of USD1.00 each. The
shares were fully subscribed by the Exchange, thus retaining the Exchange s 100% equity
interest in LFX.
(b) A subsidiary, MDEX, initiated and completed a capital reduction and consolidation exercise
whereby:
(i)
116
the issued and paid-up ordinary share capital of MDEX of RM40,000,000 comprising
40,000,000 ordinary shares of RM1.00 each was reduced and consolidated to RM11,426,708
1/2/02
12:13 PM
Page 117
divided into 11,426,708 ordinary shares of RM1.00 each. The resulting credit of
RM28,573,292 was utilised to reduce MDEX s accumulated losses.
(ii)
the share premium of MDEX amounting to RM59,985,960 was reduced in full and utilised to
set-off MDEX s accumulated losses of an equal amount.
30. Significant Events (cont d.)
(c)
MDEX and COMMEX completed the signing of an agreement to merge the business operations
of the two exchanges on 22 December 2000. Pursuant to the merger agreement all assets and
liabilities of COMMEX was transferred to MDEX for a consideration of RM16,000,000 to be
settled in part through the issuance of 16 B and 15 C class preference shares of RM1.00 each
at a total premium of RM10,999,969 and the remainder in cash to the members of COMMEX.
The merger has also effectively transferred full control and ownership in MDCH (previously an
associated company) and Malaysian Monetary Exchange Berhad ( MME ) to MDEX. MDCH is
principally engaged in providing clearing facilities for futures and options contracts and MME is a
dormant company. Both companies are incorporated in Malaysia.
31. Subsequent Event
A subsidiary, SCANS, made an offer to MDEX on 16 August 2001 to acquire 8,000,000 ordinary
issued and paid-up shares, representing 100% equity interest in MDCH from MDEX, for an estimated
purchase consideration of RM10,873,484. The completion of the above acquisition is currently subject
to finalisation and execution of the terms and conditions of the Share Sale Agreement.
32. KLSE Compensation Fund
The financial statements of the KLSE Compensation Fund for the year ended 30 June 2001 are as
attached and have been accounted for separately from all other properties of Kuala Lumpur Stock
Exchange as required by Section 61 of the Securities Industry Act, 1983 (Amended 1997).
33. Capital Commitments
Group
Exchange
2001
RM
2000
RM
2001
RM
2000
RM
93,150
922,456
398,001
100,186
740,388
94,514
93,150
922,456
100,186
740,388
1,413,607
935,088
1,015,606
840,574
Approved but not contracted for:
and fittings
3,936,828
Computer and office automation 96,801,725
Motor vehicles
2,703,907
185,290
40,104,586
800,000
3,936,828
96,801,725
2,703,907
68,990
39,912,156
600,000
Authorised and contracted for:
and fittings
Computer and office automation
Building and renovation
117
KLSE_E_End_NonAccs_July2001
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Page 118
KLSE Sub-Committees
Audit Sub-Committee
Objectives
Assist the KLSE Committee in discharging its
responsibilities relating to accounting practices
of KLSE and its Group of Companies.
Ensure the adequacy, efficiency and
effectiveness of the Group s administrative,
operating and accounting controls and
procedures.
Oversee and evaluate the quality of the audits
conducted both by the Group s internal and
external auditors.
Members
1. Tan Kim Leong (Chairman)
2. Datuk Mohaiyani Shamsudin
3. Abdul Samad Alias
4. Dato Mohamed Adnan Ali
5. Philip T N Koh
Budget and Investment Sub-Committee
Objectives
Ensure that the KLSE and its Group of
Companies have a proper budgetary system in
place that will help to plan, co-ordinate, evaluate
and control financial activities effectively.
Ensure that proper allocations are made to
enable effective and efficient:operations of the KLSE and its Group of
Companies;
implementation of the development plans of
the KLSE and its Group Companies; and
utilisation of financial resources.
Review and monitor the financial position of the
KLSE and its Group of Companies.
Ensure that the cash of the KLSE and its Group
of Companies is preserved and secured.
Ensure that the funds are properly invested and
maintained with the view to maximise
return/yields on investment.
Appoint appropriate advisors in managing its
surplus funds.
Formulate policies and guidelines for the
investment of the KLSE and its Group of
Companies surplus funds.
Review the investment policy of the KLSE and
its Group of Companies to ensure that optimal
yield is achieved with minimum risk exposure to
the funds.
Members
1. Dato Mohammed Azlan Hashim (Chairman)
2. Chan Guan Seng
3. Harry K Menon
4. Jimmy Lee Soon Teck
5. YM Raja Ahmad Raja Jallaludin
Disciplinary Sub-Committee
Objectives
Consider matters relating to disputes among
Member Companies.
Consider disciplinary actions against Members,
Member
Companies
and
Dealers
Representatives of the Exchange.
118
Members
1. Abdul Kadir Hj Md Kassim (Chairman)
2. Abdul Wahab Nan Abidin
3. Nik Saghir Mohd Noor
4. Tan Kim Leong
5. Yusli Mohamed Yusoff
6. YM Raja Datuk Arshad Raja Tun Uda
1/2/02
12:18 PM
Page 119
Rules and Development Sub-Committee
Objectives
Review changes, revisions or additions to the
KLSE Rules and Regulations to determine if
they are consistent with the mission and
objectives of the KLSE.
Review the role and direction of the KLSE and
its Group of Companies in line with its mission
and vision.
Members
2. Abdul Kadir Hj Md Kassim
3. Chan Guan Seng
4. Ching Yew Chye
6. Dato Hj Megat Najmuddin Khas Dato Seri (Dr)
Hj Megat Khas
7. Dato Ahmad Johan Raslan
8. Dato Hwang Sing Lue
9. T Jeyaratnam
Listing Sub-Committee
Objectives
Assist the KLSE Committee in discharging all
matters relating to listing and post-listing
functions of the KLSE in a speedy and efficient
manner.
Members
2. Abdul Hamidy Hafiz
4. Chan Guan Seng
6. Dato Hj Megat Najmuddin Khas Dato Seri (Dr)
Hj Megat Khas
Index Sub-Committee
Objectives
Responsible for the construction and
establishment of new indices as directed by the
KLSE Committee or whenever necessary.
Assist in other related securities areas, if
possible, as determined by the KLSE
Committee.
Members
2. Dato Azim Mohd Zabidi
3. Dato Anwar Aji
4. Dr Aziz Abu Hassan
5. Dr Zaha Rina Zahari
6. Dr Kok Kim Lian
7. Dr John Lee Hin Hock
8. Jamiah Abdul Hamid
Membership Sub-Committee
Objectives
To consider and recommend to the KLSE
Committee applications for Membership of the
Exchange pursuant to the Exchange s Articles of
Association and Rules, after having duly
interviewed the individual applicant, proposed
Dealing Members and Non-Dealing Members, as
the case may be.
Members
1. Datuk Mohaiyani Shamsudin (Chairman)
3. Abdul Wahab Nan Abidin
4. Izlan Izhab
119
1/2/02
New Listings
12:18 PM
1 July 2000
30 June 2001
P.I.E. Industrial
Bhd
Eurospan
Holdings Bhd
Uchi
Technologies
Foremost
Holdings Bhd
G PA Holdings
Bhd
Supermax
Corporation Bhd
Megan Media
Holdings Bhd
Paos Holdings
Bhd
Jotech Holdings
Bhd
Oriental Food
Industries
Ta Win
Holdings Bhd
Petra Perdana
Bhd
Courts Mammoth
Hup Seng
Bhd
Industries Bhd
NWP Holdings
Bhd
Golsta Synergy
NV Multi
Bhd
Corporation Bhd
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
120
Page 120
Spritzer Bhd
Name of New Listings
Board
P.I.E. Industrial Bhd
Second
Eurospan Holdings Bhd
Second
Uchi Technologies Bhd
Second
Foremost Holdings Bhd
Second
G PA Holdings Bhd
Second
Supermax Corporation Bhd
Second
Megan Media Holdings Bhd
Second
Paos Holdings Bhd
Main
Jotech Holdings Bhd
Second
Oriental Food Industries Holdings Bhd
10.08.2000
40,000,000
Ta Win Holdings Bhd
Second
Petra Perdana Bhd
Second
Golsta Synergy Bhd
Second
NV Multi Corporation Bhd
Main
Spritzer Bhd
Second
Courts Mammoth Bhd
Main
Hup Seng Industries Bhd
Main
NWP Holdings Bhd
Main
Octagon Consolidated Bhd
Second
Heitech Padu Bhd
Main
Kim Loong Resources Bhd
Main
MHC Plantations Bhd
Main
Haisan Resources Bhd
Second
Ranhill Bhd
Main
W eida (M) Bhd
Second
Sector
Industrial
Consumer
Industrial
Consumer
Industrial
Industrial
Industrial
Industrial
Industrial
Second
Products
Products
Products
Products
Products
Products
Products
Products
Products
Industrial Products
Trading/Services
Trading/Services
Trading/Services
Consumer Products
Trading/Services
Consumer Products
Industrial Products
Industrial Products
Technology
Plantation
Plantation
Trading/Services
Trading/Services
Industrial Products
Paid-up Capital
when first
Listing Date
listed (RM)
07.07.2000
60,000,000
10.07.2000
40,000,000
19.07.2000
40,000,000
01.08.2000
43,850,000
03.08.2000
40,000,000
07.08.2000
40,000,000
08.08.2000
54,667,000
08.08.2000
60,000,000
09.08.2000
40,000,000
Consumer Products
15.08.2000
16.08.2000
21.08.2000
23.08.2000
01.09.2000
11.10.2000
02.11.2000
03.11.2000
08.11.2000
20.11.2000
27.11.2000
29.11.2000
16.01.2001
15.02.2001
28.02.2001
40,000,000
40,000,000
42,000,000
70,000,000
49,000,000
282,000,000
60,000,000
60,000,000
40,000,000
80,000,000
106,750,000
63,238,086
40,000,000
79,000,000
40,000,000
1/2/02
12:18 PM
Page 121
Octagon
Consolidated
Heitech
Padu Bhd
W eida (M) Bhd
Ingress
Corporation Bhd
TIMEdotCom
Bhd
Bintulu Port
Holdings Bhd
Merge Housing
Bhd
Knusford Bhd
26
Ingress Corporation Bhd
Kim Loong
MHC Plantations
Haisan
Resources Bhd
Bhd
Resources Bhd
Second
No. Name of New Listings
27 TIMEdotCom Bhd
Board
Main
28
29
30
31
32
33
34
35
36
Second
Second
Second
Main
Main
Main
Main
Second
Second
Top Glove Corporation Bhd
SKB Shutters Corporation Bhd
D Nonce Technology Bhd
Bintulu Port Holdings Bhd
Merge Housing Bhd
Knusford Bhd
Edaran Digital Systems Bhd
Century Logistics Holdings Bhd
Aikbee Resources Bhd
No. of listed companies
Total market capitalisation (RM billion)
Total volume (billion units)
Total value (RM billion)
Ranhill Bhd
Top Glove
SKB Shutters
D Nonce
Corporation Bhd Corporation Bhd Technology Bhd
Edaran Digital
Systems Bhd
Century Logistics
Aikbee
Holdings Bhd
Resources Bhd
Industrial Products
09.03.2001
64,000,000
Paid-up Capital
when first
Sector
Listing Date
listed (RM)
Infrastructure Project 12.03.2001
2,530,775,000
Companies
Industrial Products
27.03.2001
50,000,000
Industrial Products
28.03.2001
40,000,000
Industrial Products
09.04.2001
40,000,000
Trading/Services
16.04.2001
400,000,000
Properties
14.05.2001
150,000,000
Trading/Services
23.05.2001
74,042,002
Trading/Services
06.06.2001
60,000,000
Trading/Services
07.06.2001
44,443,969
Industrial Products
22.06.2001
50,000,000
As at 30.6.2001
809
403.49
As at 30.6.2000
773
572.31
1.7.2000 to 30.6.2001
34.17
88.90
1.7.1999 to 30.6.2000
106.44
304.71
New Listings from 1 July 2001 to 30 September 2001
There were no new listings during this period.
Two (2) companies were delisted on 13 August 2001:
1) Gadek (Malaysia) Bhd
2) HICOM Holdings Bhd
No. of listed companies
As at 30.9.2001
807
121
1/2/02
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Page 122
Monthly High, Low and Closing Indices*
Composite
High
Low
2000 July
August
September
October
November
December
860.77
825.52
767.02
796.22
763.84
741.00
793.93
795.84
713.51
703.95
708.87
679.64
2001 January
February
March
April
May
June
727.73
736.34
706.03
650.74
611.42
600.86
657.52
709.39
647.48
553.34
554.36
564.08
EMAS
Closing
High
Low
798.83
795.84
713.51
752.36
729.95
679.64
217.38
205.89
192.11
189.01
182.49
176.00
199.48
198.24
174.94
170.72
170.01
159.77
200.40
198.27
174.94
179.89
174.19
159.77
727.73
709.39
647.48
584.50
572.88
592.99
170.53
172.36
163.65
149.17
146.65
144.76
152.94
164.97
149.15
131.10
135.36
137.60
170.53
164.97
149.15
139.84
139.29
142.29
Industrial
Consumer Products
High
Low
Closing
High
Low
2000 July
August
September
October
November
December
1,494.54
1,459.24
1,399.14
1,400.86
1,372.19
1,315.53
1,381.93
1,400.28
1,307.91
1,270.11
1,288.36
1,217.28
1,397.44
1,429.92
1,307.91
1,333.36
1,312.37
1,217.28
172.81
172.12
165.28
161.69
157.63
154.97
156.82
163.41
156.84
151.57
151.24
146.58
162.14
168.06
156.84
153.79
154.37
146.58
2001 January
February
March
April
May
June
1,281.82
1,281.52
1,258.91
1,177.18
1,164.92
1,161.11
1,182.58
1,247.14
1,165.96
1,068.72
1,119.03
1,137.24
1,277.77
1,261.54
1,165.96
1,119.59
1,150.29
1,151.73
149.39
152.08
151.30
143.73
147.82
148.57
140.90
146.86
142.34
137.22
143.07
145.70
149.05
152.08
142.48
143.73
147.82
146.39
High
Low
Closing
Construction
Industrial Products
Closing
High
Low
Closing
2000 July
August
September
October
November
December
92.97
86.52
82.43
79.16
75.85
73.54
83.50
83.71
74.68
72.13
71.83
65.35
84.55
83.78
74.68
75.31
73.01
65.35
247.59
233.05
220.10
202.90
191.88
180.85
217.18
223.81
182.78
166.81
170.87
153.80
224.46
223.85
182.78
187.98
179.94
156.26
2001 January
February
March
April
May
June
69.64
69.49
65.82
60.85
61.28
60.95
63.58
65.94
60.64
57.97
57.42
59.20
69.49
66.48
60.64
59.23
60.38
59.31
172.35
170.51
155.31
140.76
146.32
142.61
145.32
157.09
132.72
127.83
133.97
138.37
169.58
158.00
132.72
138.49
141.25
138.37
Trading/Services
122
Closing
High
Low
2000 July
August
September
October
November
December
134.34
126.57
114.03
118.64
115.70
113.27
122.53
118.59
104.42
101.63
106.25
103.32
2001 January
February
March
April
May
June
111.80
113.05
107.82
100.04
92.55
88.43
98.56
107.56
99.54
81.00
80.52
81.67
Finance
Closing
High
Low
Closing
124.04
118.59
104.42
111.85
111.27
103.32
6,960.44
6,667.55
6,146.23
6,198.51
5,866.54
5,485.96
6,372.89
6,375.24
5,639.28
5,545.49
5,406.87
5,051.59
6,372.89
6,431.32
5,639.28
5,869.98
5,406.87
5,070.62
111.80
107.76
99.54
87.64
83.20
87.01
5,408.22
5,542.31
5,188.20
4,534.93
4,453.55
4,495.05
4,905.07
5,256.71
4,558.34
3,917.41
4,101.29
4,154.86
5,408.22
5,256.71
4,558.34
4,171.21
4,206.42
4,334.71
1/2/02
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Page 123
Property
High
2000 July
August
September
October
November
December
2001 January
February
March
April
May
June
Low
Plantations
Closing
High
Low
Closing
1,033.37
974.64
916.66
835.20
794.99
746.21
947.32
931.96
815.54
773.68
741.41
626.97
951.93
932.16
815.54
791.34
746.39
632.54
1,825.79
1,847.67
1,769.77
1,608.85
1,558.34
1,489.08
1,718.76
1,797.72
1,622.37
1,562.94
1,463.26
1,361.59
1,806.89
1,798.23
1,622.37
1,562.94
1,490.31
1,361.59
670.59
662.49
612.11
552.67
583.29
594.38
591.46
618.53
551.34
514.37
557.54
573.30
663.30
618.53
554.77
552.67
574.80
593.18
1,403.54
1,388.37
1,355.74
1,320.44
1,344.53
1,417.77
1,283.17
1,348.96
1,307.58
1,248.99
1,290.89
1,335.56
1,373.17
1,348.96
1,318.03
1,298.47
1,344.53
1,417.77
Mining
High
Low
2000 July
August
September
October
November
December
286.27
282.91
270.27
257.99
254.36
241.17
208.36
252.61
242.99
237.95
237.95
193.38
2001 January
February
March
April
May
June
220.30
207.35
198.00
185.22
191.43
187.87
180.88
195.86
168.51
155.30
158.56
173.64
Syariah
Closing
High
Low
257.65
265.36
246.21
246.04
239.52
193.38
138.17
131.27
123.26
123.14
119.73
116.14
127.44
126.70
113.67
109.41
111.35
104.64
128.73
126.93
113.67
117.11
115.15
104.64
212.80
202.48
174.18
185.22
185.17
185.24
111.35
111.80
107.67
101.07
96.06
94.49
100.22
107.86
100.64
87.46
88.50
90.36
111.35
107.86
100.64
92.62
91.54
93.71
Second Board
High
Low
2000 July
August
September
October
November
December
235.45
215.90
199.57
177.92
165.55
153.15
211.22
203.25
172.31
163.30
154.15
130.72
2001 January
February
March
April
May
June
137.02
136.13
122.94
105.73
110.43
112.16
123.01
124.12
107.64
98.26
103.84
105.61
Closing
Technology
Closing
High
Low
Closing
213.06
203.25
172.31
165.67
154.15
132.98
134.26
117.12
102.62
83.84
84.51
71.16
103.13
96.51
81.70
70.28
70.47
52.70
106.02
108.48
83.47
75.47
71.62
53.63
136.14
124.12
107.64
104.21
105.91
106.93
66.34
62.76
54.50
42.45
45.67
47.70
48.74
55.48
43.05
36.34
41.86
44.73
62.67
55.48
43.46
40.07
44.77
45.23
Note: * Based on closing index.
123
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Page 124
Market Indicators
FYE 1998
FYE 2000
FYE 2001
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
COMPOSITE Index
1,012.84
455.64
811.10
302.91
982.24
675.45
798.83
572.88
COMPOSITE
Moving Average
1,159.88
645.44
603.50
464.09
846.69
611.03
868.82
675.64
FYE 1998
124
FYE 1999
Highest
FYE 1999
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
EMAS Index
289.93
115.36
207.56
79.55
255.63
174.81
200.40
139.29
EMAS Moving Average
332.28
170.81
157.39
119.69
217.49
155.44
221.67
160.99
1/2/02
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Page 125
FYE 1998
Highest
Industrial Index
Volume (mil)
Value (RM mil)
2,028.06
FYE 1999
Lowest
Highest
915.83 1,380.58
FYE 2000
Lowest
Highest
FYE 2001
Lowest
Highest
Lowest
639.44 1,683.24 1,207.07 1,429.92 1,119.59
5,155
1,152
7,086
820
10,623
1,299
1,693
669
15,002
3,514
14,603
2,169
25,760
5,005
6,179
2,023
FYE 1998
FYE 1999
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
Consumer Products Index 430.59
121.18
169.52
83.86
191.02
138.34
168.06
142.48
Volume (mil)
Value (RM mil)
652
133
485
62
778
82
71
34
1,850
363
1,266
212
2,013
459
487
239
125
1/2/02
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Page 126
Market Indicators
FYE 1998
Industrial Products Index
Volume (mil)
Value (RM mil)
FYE 1999
FYE 2001
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
143.36
56.96
86.44
40.20
113.43
76.96
84.55
59.23
795
184
2,071
161
2,341
202
299
112
4,874
375
3,282
331
8,190
587
821
159
FYE 1998
FYE 1999
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
430.59
93.27
237.39
63.23
312.79
202.52
224.46
132.72
Volume (mil)
1,354
197
1,190
139
1,890
191
382
91
Value (RM mil)
3,120
303
2,541
189
4,806
611
1,085
172
Construction Index
126
FYE 2000
Highest
1/2/02
12:18 PM
Page 127
FYE 1998
FYE 1999
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
Mining Index
451.00
153.35
264.46
85.90
329.01
198.74
265.36
174.18
Volume (mil)
117
9
77
6
128
9
21
4
Value (RM mil)
597
10
137
8
239
18
42
4
FYE 1998
Trading/Services Index
FYE 1999
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
150.69
71.07
128.84
47.36
154.97
106.53
124.04
83.20
Volume (mil)
2,353
629
3,341
455
5,620
802
941
401
Value (RM mil)
8,105
2,407
7,513
1,326
13,729
2,956
4,061
1,412
127
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Page 128
Market Indicators
FYE 1998
Highest
Finance Index
FYE 1999
Lowest
FYE 2000
Lowest
Highest
FYE 2001
Lowest
Highest
Lowest
8,702.03 2,419.22 6,328.23 1,695.38 8,344.93 5,209.09 6,431.32 4,171.21
Volume (mil)
2,205
372
1,619
245
2,307
366
556
205
Value (RM mil)
5,829
860
4,836
615
7,765
1,648
2,301
849
FYE 1998
Highest
Property Index
128
Highest
2,103.50
FYE 1999
Lowest
Highest
580.35 1,064.73
FYE 2000
Lowest
FYE 2001
Highest
Lowest
Highest
Lowest
414.61 1,274.90
950.21
951.93
552.67
Volume (mil)
1,335
231
1,585
175
3,530
224
207
94
Value (RM mil)
3,724
231
2,087
123
6,236
335
286
68
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Page 129
FYE 1998
Highest
Plantations Index
Volume (mil)
Value (RM mil)
FYE 1999
Lowest
Volume (mil)
Value (RM mil)
FYE 2000
Lowest
Highest
FYE 2001
Lowest
Highest
Lowest
2,690.26 1,604.78 1,853.75 1,137.37 1,951.09 1,475.63 1,806.89 1,298.47
376
79
217
77
390
55
97
28
2,077
254
678
203
1,373
151
247
64
FYE 1998
Second Board Index
Highest
FYE 1999
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
Highest
Lowest
546.82
97.99
179.77
76.83
298.50
153.60
213.06
104.21
1,331
143
1,221
93
2,417
88
468
101
13,467
221
3,607
103
9,822
240
1,368
128
129
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Page 130
Market Indicators
FYE 2000
Technology Index
Volume (mil)
Value (RM mil)
FYE 1999
Syariah Index
130
FYE 2001
Highest
Lowest
Highest
Lowest
166.05
129.35
137.54
38.46
10
4
30
2
207
76
227
17
FYE 2000
FYE 2001
Highest
Lowest
Highest
Lowest
Highest
Lowest
123.89
102.74
160.50
106.26
137.54
88.96
Volume (mil)
220
51
2,129
123
436
32
Value (RM mil)
487
127
6,043
443
1,633
114
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Page 131
Membership Report
During the year under review (1 July 2000 to 30 June 2001):(1) Cessation of Eight Member Companies (Voting Members):
No. Member Company
Cessation
1
WK Securities Sdn Bhd
2
Halim Securities Sdn Bhd
3
Taiping Securities Sdn Bhd
4
MBf Northern Securities Sdn Bhd
5
OSK Securities (Melaka) Sdn Bhd
6
Hwang-DBS Securities (Johor Bahru) Sdn Bhd
7
PhileoAllied Securities Sdn Bhd
8
Ke-Zan Securities Sdn Bhd
Date
of
10.07.2000
16.10.2000
20.11.2000
26.02.2001
27.03.2001
09.04.2001
20.04.2001
28.05.2001
(2) Six Corporations were admitted as Non-Dealing Member of the Exchange (Corporate Shareholder), via
the following Member Companies:
No. New Non-Dealing Member
Member Company
Date of
(Corporate Shareholder)
Admission
1
Ideal Appraisal Sdn Bhd
Alor Setar Securities Sdn Bhd
17.07.2000
2
Avenue Assets Bhd
MGI Securities Sdn Bhd
22.11.2000
3
Share Technology Capital Group Sdn Bhd Labuan Securities Sdn Bhd
28.11.2000
4
Hwang-DBS Securities Bhd
29.11.2000
5
Arab-Malaysian Securities Sdn Bhd
South Johor Securities Sdn Bhd
26.02.2001
6
Kuala Lumpur City Corporation Bhd
Malacca Securities Sdn Bhd
26.02.2001
(3) Thirteen Corporations resigned as Non-Dealing Member of the Exchange (Corporate Shareholder), via the
following Member Companies:
No. Non-Dealing Member
Member Company
Date
(Corporate Shareholder)
Resigned
1
Omega Holdings Bhd
10.07.2000
2
Uniphoenix Corporation Bhd
16.10.2000
3
Durapark Corporation Sdn Bhd
20.11.2000
4
Johor Capital Holdings Sdn Bhd
29.11.2000
5
Securities Investment Pte Ltd
29.11.2000
6
Malaysian General Investment
Allied Avenue Assets Securities Sdn Bhd
22.11.2000
Corporation Bhd
7
Mayban Securities (Holdings) Sdn Bhd
20.04.2001
8
South Johor Equities Sdn Bhd
21.02.2001
9
MBf Capital Bhd
26.02.2001
10 Phileo Allied Bhd
21.03.2001
11 TCL Premier Holdings Bhd
27.03.2001
12 Hwang-DBS Securities Bhd
09.04.2001
13 Ke-Zan Holdings Bhd
28.05.2001
(4) One Individual resigned as Non-Dealing Member of the Exchange (Individual Shareholder), via the
following Member Company:
No. N a m e
Member Company
Date
Resigned
1
Estate of Rashidi Baba
Labuan Securities Sdn Bhd
28.11.2000
131
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12:18 PM
Page 132
Membership Report
(5) Demise of Dealing Member (Executive Director)
No. N a m e
Member Company
1
Din bin Mohd Hassan
(6) Demise of Non-Dealing Member (Non-Executive Director)
No. N a m e
Member Company
1
Heinz Ewald Johann Poehlsen
K & N Kenanga Bhd
Date of
Demise
20.12.2000
Date of
Demise
04.01.2001
(7) Eleven Individuals were admitted as Dealing Member, viz:
No. Name
Member Company
1
2
3
4
5
6
7
8
9
10
11
Mohd Yusof bin Mohd Rashidi
Hashimah binti Ismail
Saiful Bahri bin Zainuddin
Teoh Hock Chooi
W ee Hoe Soon @ Gooi Hoe Soon
Abdul Rauf bin Ramli
Zulazman bin Zulkifli
Hwang Lip Teik
29.11.2000
Noor Zakri bin Abdul Ghani
Junaida bt Abdul Jalal
Awang bin Ahmad @ Awang Ariffin
Date of
Admission
Kuala Lumpur City Securities Sdn Bhd
10.07.2000
17.07.2000
Fima Securities Sdn Bhd
13.10.2000
13.11.2000
21.11.2000
21.11.2000
28.11.2000
Sarawak Securities Sdn Bhd
Rashid Hussain Securities Sdn Bhd
InnoSabah Securities Bhd
(8) Thirty-five Individuals resigned/ceased as Dealing Member, viz:
No. Name
Member Company
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
132
Resignation
Lau Yew Kong
Zainal bin Ahmad
Haji Rahmat bin Awi
Dato Haji Sallehuddin bin Kassim
Haji Mansor bin Hussein
Tengku Abdul Halim Alhaj Ibni Almarhum
Sultan Ibrahim
Loo Khee Kwong
Chua Hock Seng
Hassim bin Haji Baba
Mohd Nasir bin Ali
Dato Ahmad bin Hj Ibnihajar
Harris bin Hj Ismail
Muhammad Nadzri bin Hamzah
Dr Abdul Hadi bin Derani
Dato Abdol Mulok bin Awang Damit
Abdul Hakim Mordani bin Abdul Hadi
Mohd Yusof bin Pandak Yatim
Datuk Teh Ghee Kok
Thevanaigam Sukumari Chitty
Ahmad bin Abdullah
Koh Kee Tee
15.12.2000
22.12.2000
15.01.2001
Date of
SBB Securities Sdn Bhd
Peninsula Securities Sdn Bhd
01.07.2000
10.07.2000
12.07.2000
18.07.2000
18.07.2000
16.10.2000
TA Securities Bhd
TA Securities Bhd
16.10.2000
16.10.2000
16.10.2000
31.10.2000
20.11.2000
20.11.2000
20.11.2000
28.11.2000
28.11.2000
28.11.2000
15.12.2000
22.01.2001
22.01.2001
31.01.2001
21.02.2001
1/2/02
12:18 PM
Page 133
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Jason Chan Chau Yang
Ng Say Keow
Md Yusoff bin Md Ali
Rosli bin Abdol Wahab
Zainuddin bin Hj Din
Jimmy Tan Soon Sum
Chow Yook Hey @ Chow Yoke Pui
Loh Teck Yen
Amin Rafie bin Othman
Johari bin Hassan
09.04.2001
Abang Zainal Abidin bin Abang Ahmad
Dato Mahmud bin Haji Ali
Mohd Idris bin Ahmad Jais
Loo Kok Yuen
21.02.2001
21.02.2001
06.03.2001
Eng Securities Sdn Bhd
09.02.2001
Malacca Securities Sdn Bhd
26.02.2001
27.03.2001
27.03.2001
27.03.2001
Smith Zain Securities Sdn Bhd
31.03.2001
Upen Securities Sdn Bhd
TA Securities Bhd
PM Securities Sdn Bhd
23.04.2001
26.05.2001
28.05.2001
28.05.2001
(9) Twenty-nine Individuals were admitted as Non-Dealing Member of the Exchange (Non-Executive
Directors), viz:
No. N a m e
Member Company
Date of
Admission
1
Haji Yusoff bin Haji Tahir
PTB Securities Sdn Bhd
07.07.2000
2
Datuk Dr Abdul Aziz bin Muhamad
MIDF Sisma Securities Sdn Bhd
07.07.2000
3
Neoh Lean Teik
26.07.2000
4
Dr Lim Tock Hooi
26.07.2000
5
Musa bin Haji Mohd Dahan
Leong & Company Sdn Bhd
01.08.2000
6
Ausaf Akhtar Abbas
Smith Zain Securities Sdn Bhd
21.08.2000
7
Khoo Bee Lin
22.08.2000
8
Nikmat bin Abdullah
InnoSabah Securities Bhd
05.10.2000
9
Dato Mohamed Zain bin Mohamed Yusof Malacca Securities Sdn Bhd
01.11.2000
10 Hwang Lip Teik
Hwang-DBS Securities Bhd
29.11.2000
11 Zainab bt Ahmad
Botly Securities Sdn Bhd
06.12.2000
12 Dato Halim bin Muhamat
CIMB Securities Sdn Bhd
15.01.2001
13 Arni bt Ariffin
BBMB Securities Sdn Bhd
22.01.2001
14 Lok Bah Bah @ Loh Yeow Boo
Alor Setar Securities (2000) Sdn Bhd
30.01.2001
15 Dato Mohammed bin Hussein
31.01.2001
16 Norazizi bin Mohd Rashid
31.01.2001
17 Nor Izmin bin Hasbullah
Jupiter Securities Sdn Bhd
06.02.2001
18 Mohd Nasir bin Ali
12.02.2001
19 Chang Tuck Chee @ Philip Chang
12.02.2001
20 Mohamed Azahari bin Mohamed Kamil
Jupiter Securities Sdn Bhd
22.02.2001
21 Dato Seri Dr Ting Chew Peh
14.02.2001
22 Kalimullah bin Masheerul Hassan
TA Securities Bhd
01.03.2001
23 U Chin Wei
TA Securities Bhd
01.03.2001
24 W ong Hong Meng
TA Securities Bhd
01.03.2001
25 Mustafa bin Haji Mohd Nor
12.03.2001
26 Lee Yew Kin
12.03.2001
27 Dato Seri Dr Ting Chew Peh
Pan Malaysia Equities Sdn Bhd
12.04.2001
28 Othman bin Abdul Jalal
23.04.2001
29 Haji Mohd Sallehuddin bin Othman
11.05.2001
(10) Two Individuals were admitted as Non-Dealing Member of the Exchange (Individual Shareholder), viz:
No. N a m e
Member Company
Date of
133
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Membership Report
1
2
134
Dato Haji Sallehuddin bin Kassim
Haji Mansor bin Hussein
Admission
18.07.2000
18.07.2000
1/2/02
12:18 PM
Page 135
(11) Forty Individuals resigned as Non-Dealing Member of the Exchange (Non-Executive Directors), viz:
No. N a m e
Member Company
Date of
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
Resignation
Abdul Aziz bin Mahmoud Salim
Lutfiah bt Ismail
Ruzmi bin Ag Ya
Francis Yeo Teng Yang
Tan Sri Dato Hj. Anuar bin Hj. Zainal
Jamaludin bin Md Ali
Leong Mun Wai
Goh Geok Khim
Mohd Redza Shah bin Abdul Wahid
Dato Nik Mohd Sidek bin Nik Abu Bakar
Dato Kamaruddin Taib
Lee Kwong Ann
Ho Chun Fatt
Edwin Madarang Yang
Datuk Hj Ishak bin Ismail
Dato Hj. Md Shariff bin Hj Shamsuddin
Haji Ahamad bin Mohamad
29.11.2000
Mohamed Azahari bin Mohamed Kamil
29.11.2000
Kau Jee Chu
29.11.2000
Mohamad bin Alwi
29.11.2000
Dato Mohd Ghazali bin Mohd Khalid
Datuk Tiah Thee Kian
Dato Haji Darwis bin Mohd Daid @
Darwis bin Mohd Daek
Datuk Mohamed bin Abid
Hamzah bin Harun
Roslan bin Haji Yahya
Dato Loy Teik Ngan
Mirzan bin Mahathir
Ronald Anthony Ooi Thean Yat
Dr Lim Tock Hooi
Neoh Lean Teik
Hwang Lip Teik
09.04.2001
Azlan bin Mohd Zainol
Dato Mohamed bin Hussein
Norazizi bin Mohd Rashid
Dato Mokhzani bin Mahathir
Yeow Keng Chew
W ong Hong Meng
Mohd Nasir bin Ali
Haji Mahfudz bin Muhamad
(12) Change of Member Companies
No. Member Company
PTB Securities Sdn Bhd
07.07.2000
07.07.2000
18.07.2000
Affin-UOB Securities Sdn Bhd
19.07.2000
21.07.2000
PJB-OUB Securitites Sdn Bhd
12.08.2000
OCBC Securities (Melaka) Sdn Bhd
12.08.2000
Straits Securities Sdn Bhd
30.08.2000
13.10.2000
16.10.2000
16.10.2000
16.10.2000
16.10.2000
JB Securities Sdn Bhd
13.11.2000
20.11.2000
25.11.2000
15.12.2000
22.12.2000
31.12.2000
TA Securities Bhd
22.01.2001
Kota Bharu Securities Sdn Bhd
06.02.2001
21.02.2001
26.02.2001
06.03.2001
06.03.2001
06.03.2001
06.03.2001
Arab-Malaysian Securities Sdn Bhd
Kestrel Securities Sdn Bhd
Kestrel Securities Sdn Bhd
TA Securities Bhd
15.04.2001
20.04.2001
20.04.2001
26.04.2001
26.04.2001
19.05.2001
01.06.2001
30.06.2001
New Name
Effective
Date
Name
135
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12:18 PM
Page 136
Membership Report
1
2
3
4
5
6
OCBC Securities (Melaka) Sdn Bhd
O.S.K. Securities Berhad
PJB-OUB Securities Sdn Bhd
29.11.2000
(13) Changes of Member Companies
No. Member Company
136
18.09.2000
OSK Securities Bhd
27.11.2000
Alor Setar Securities (2000) Sdn Bhd
ShareTech Securities Sdn Bhd
Allied Avenue Assets Securities Sdn Bhd
Business Address
Business Address
06.12.2000
05.01.2001
19.02.2001
Effective
Date
20.10.2000
1
JF Apex Securities Bhd
W isma Apex
145A-C & 2nd Floor 145D-F
Jalan Bukit
43000 Kajang
Selangor Darul Ehsan
2
HLG Securities Sdn Bhd
Level 1-7, No. 3
W isma Kia Peng
Jalan Kia Peng
50450 Kuala Lumpur
Tel. No: 03-21681168/27101168
Fax No: 03-21615900
23.10.2000
3
Tingkat Bawah dan Tingkat 1
Plaza MUI
Jalan P. Ramlee
50250 Kuala Lumpur
Tel. No: 03-21463000
Fax No: 03-21456345
27.11.2000
4
ShareTech Securities Sdn Bhd
Unit 7A, Level 7
Financial Park Complex
Jalan Merdeka
87000 Wilayah Persekutuan Labuan
29.11.2000
5
FA Securities Sdn Bhd
No. 51 & 51A
Ground, Mezzanine and 1st Floor
Jalan Tok Lam
20100 Kuala Terengganu
11.12.2000
6
Mayban Securities Sdn Bhd
Tingkat 5 13
MaybanLife Tower
Dataran Maybank
No. 1 Jalan Maarof
59000 Kuala Lumpur
Tel. No: 03-22978888
Fax No: 03-22825136
27.03.2001
7
No. 8 Jalan Binjai
Off Jalan Ampang
50450 Kuala Lumpur
02.04.2001
1/2/02
12:18 PM
Page 137
KLSE Members
as at 30 June 2001
Voting Members
Federal Territory of Kuala Lumpur
ARABM A L AYSIAN
SECURITIES
SDN BHD
15th Floor
Bangunan Arab-Malaysian
55, Jalan Raja Chulan
50200 Kuala Lumpur
Tel : 03-2382788/99
Fax : 03-2383162
2303175
Dealing Members:
Haji Ismail bin Abdullah
Mustafa bin Hj Mohd Nor
Chang Tuck Chee @
Philip Chang
Ahmad bin Bachok
Non-Dealing Members:
Arab-Malaysian Securities
Holdings Sdn Bhd
Dato Hj Azlan bin Hashim
Cheah Tek Kuang
Lee Siang Korn @
Lee Siang Chin
AFFIN-UOB
SECURITIES
SDN BHD
Level 3, Menara Keck
Seng
203, Jalan Bukit Bintang
55100 Kuala Lumpur
Tel : 03-21438668
Fax : 03-21433663
Dealing Member:
To Puan Siti Norizam bte
Mohd Yusoff
Affin-UOB Holdings
Sdn Bhd
Yu Choong Cheong
Gen (B) Dato Ismail bin
Hassan
Lee Swee Kiat
ALLIED AV E N U E
ASSETS
SECURITIES
SDN BHD
1st & 2nd Floor
W isma MGIC
38, Jalan Dang Wangi
50100 Kuala Lumpur
Tel : 03-26911889
Fax : 03-26942903
Dealing Members:
W ee Hoe Soon @
Gooi Hoe Soon
Abdul Rauf bin Ramli
Non-Dealing Member:
Avenue Assets Bhd
BBMB
SECURITIES
SDN BHD
Level 2, 3, 4 & 15
Menara Olympia
Letter Box No 2
No 8, Jalan Raja Chulan
50200 Kuala Lumpur
Tel : 03-2019900
Fax : 03-2041582
Dealing Member:
Hassan bin Jaafar
Khazanah Nasional Bhd
Nik Hassan bin
Nik Mohd Amin
Dato Anwar bin Haji @ Aji
Arni bte Ariffin
Othman bin Abdul Jalal
BIMB
SECURITIES
SDN BHD
1st & 2nd Floor
Podium Block
Bangunan AMDB
No 1, Jalan Lumut
50400 Kuala Lumpur
Tel : 03-4433533
Fax : 03-4413433
4412622
4414159
Dealing Member:
Dato Dr Abdul Halim bin
Haji Ismail
BIMB Securities (Holdings)
Sdn Bhd
Yayasan Pembangunan
Ekonomi Islam Malaysia
Dato Ahmad Tajudin bin
Abdul Rahman
Dato Hj Mohamed bin
Shafie
Mustafa bin Hamat
CIMB
SECURITIES
SDN BHD
9th Floor, Commerce
Square
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2532288
Dealing Member:
Yusli bin Mohamed Yusoff
CIMB Holdings Sdn Bhd
Mohamed Nazir bin
Abd Razak
Robert Chiem Dau Meng
Lim Tiang Siew
Mohd Shukri bin Hussin
Dato Halim bin Muhamat
137
1/2/02
KLSE Members
138
12:18 PM
Page 138
as at 30 June 2001
FIMA
SECURITIES
SDN BHD
No 45-14
Plaza Level & Level 1
Plaza Damansara
Jalan Medan Setia Satu
Damansara Heights
50490 Kuala Lumpur
Tel : 03-2549966
Fax : 03-2548595
Dealing Members:
Saiful Bahri bin Zainuddin
Teoh Hock Chooi
Capitalcorp Holdings
Sdn Bhd
Ahmad Riza bin Basir
Tan Sri Dato Hj Basir bin
Ismail
Dato Hj Mohd Noor bin
Ismail
Abu Hassan bin Kendut
HLG
SECURITIES
SDN BHD
Level 1-7
No 3, Wisma KiaPeng
Jalan Kia Peng
50450 Kuala Lumpur
Tel : 03-21681168
27101168
Fax : 03-21615900
Dealing Members:
Omar bin Zolkifli
Lee Wai Kok
David Chua Ming Huat
Non-Dealing Member:
HLG Capital Bhd
INTER-PACIFIC
SECURITIES
SDN BHD
Level 7
Menara Shahzan Insas
30 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : 03-21441888
Fax : 03-21441686
Dealing Members:
Pang Poh Ping
Abdul Majid bin
Hj Mohd Harun
Inter-Pacific Capital Sdn
Bhd
Chan Kien Sing
Robert Yong Kuen Loke
Tan Sri Datuk Abdul
Rahim
bin Hj Din
JUPITER
SECURITIES
SDN BHD
7th, 8th & 9th Floor
Menara Olympia
50200 Kuala Lumpur
Tel : 03-2041888
Fax : 03-2042288
Dealing Members:
Mohamad Saleh bin
Md Yusof
Lo Kok Kee
Olympia Industries Bhd
Koperasi Polis Di Raja
Malaysia Bhd
Looi Kheng Hwa
Ishak bin Hassan
Zahar bin Hj Ariffin
Yap Wee Keat
Tun Dato Seri Abdul
Hamid
bin Omar
Nor Izmin bin Hasbullah
Mohamed Azahari bin
K & N
KENANGA BHD
801, 8th Floor
Kenanga International
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel : 03-21649080
21624190
Fax : 03-21614990
21635927
Dealing Members:
Tengku Dato Paduka
Noor
Zakiah bte Tengku
Ismail
K & N Kenanga Holdings
Bhd
KAFS E A G R O ATT &
CAMPBELL
SECURITIES
SDN BHD
30th Floor, The Weld
Tower
50200 Kuala Lumpur
Tel : 03-2081600
Dealing Member:
Ahmad bin Kadis
KAF-Seagroatt & Campbell
Holdings Bhd
Datuk Khatijah bte Ahmad
Faisol bin Zulkifli
1/2/02
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Page 139
KUALA LUMPUR
CITY
SECURITIES
SDN BHD
No 8, Jalan Binjai
Off Jalan Ampang
50450 Kuala Lumpur
Tel : 03-21667922
Fax : 03-21667909
Dealing Member:
Mohd Yusof bin Mohd
Rashidi
Assedina Sdn Bhd
Khadijah bte Abdul Khalid
Kuantan Branch
A-397, A-399 & A-401
Taman Sri Kuantan III
Jalan Beserah
25300 Kuantan
Pahang Darul Makmur
Tel : 09-5660800
Fax : 09-5660801
LEONG & CO
SDN BHD
Level 18, Wisma
Cyclecarri
288, Jalan Raja Laut
50350 Kuala Lumpur
Tel : 03-26928899
Fax : 03-26949088
Dealing Members:
Leong Kun Kay
Anne Leong Sau Leng
Christine Leong Yuen
Leng
Maggie Yu Kwei Sim
Ceria Alam Sdn Bhd
Edaran Otomobil Nasional
Bhd
Musa bin Haji Mohd
Dahan
M AY B A N
SECURITIES
SDN BHD
Tingkat 5-13
MaybanLife Tower
Dataran Maybank
No 1, Jalan Maarof
59000 Kuala Lumpur
Tel : 03-22978888
Fax : 03-22825136
Dealing Member:
Abdul Wahab bin
Nan Abidin
Mayban Securities
(Holdings)
Sdn Bhd
Tan Sri Mohamed Basir
bin
Ahmad
Mohammad bin Abdullah
Hj Mohd Hashir bin
Hj Abdullah
Dato Ahmad Badri bin
Mohd Basir
Dato Mohammed bin
Hj Che Hussein
Dealing Member:
Datin Mariam Prudence
bte Yusof
MIDF Sisma Holdings
Sdn Bhd
Dato Dr Abdullah bin
Mohd Tahir
Dato Mohd Ghaus bin
Badioze Zaman
Allen N Lopez
Dato Syed Ibrahim bin
Syed Mohamed
Datuk Dr Abdul Aziz bin
Muhamad
Haji Mohd Sallehuddin bin
Othman
Ipoh Branch
55, 57 & 63
Persiaran Greenhill
30450 Ipoh
Perak Darul Ridzuan
Tel : 05-2558233
2423888
Fax : 05-2534333
MIDF SISMA
SECURITIES
SDN BHD
17th & 18th Floor
Empire Tower
182, Jalan Tun Razak
50400 Kuala Lumpur
Tel : 03-21668888
Fax : 03-21669999
139
1/2/02
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OSK
SECURITIES
BHD
12:18 PM
Page 140
as at 30 June 2001
10th Floor, Plaza OSK
Jalan Ampang
50450 Kuala Lumpur
Tel : 03-21624388
Fax : 03-21618254
Ipoh Branch
21-25, Jalan
Seenivasagam
Greentown
30450 Ipoh
Perak Darul Ridzuan
Tel : 05-2415100
Fax : 05-2553903
Dealing Members:
Dato Nik Mohamed bin
Nik Yahya
Chin Cheng Mei
W ong Chong Kim
Ong Leong Huat @
W ong Joo Hwa
Nik Halim @ Nik Ghazi
bin Haji Nik Daud
Non-Dealing Member:
OSK Holdings Bhd
Melaka Branch
579, 580-581 A&B
Taman Melaka Raya
75000 Melaka
Tel : 06-2825211
2845211
Fax : 06-2844861
Penang Branch
64, Bishop Street
20F & 20G Penang Street
10200 Penang
Tel : 04-2634222
Fax : 04-2622299
140
PB SECURITIES
SDN BHD
27th Floor
Bangunan Public Bank
No 6, Jalan Sultan
Sulaiman
50000 Kuala Lumpur
Tel : 03-2013011
Dealing Member:
Yong Yoong Fa
Public Consolidated
Holdings
Sdn Bhd
Dato Tay Ah Lek
Tan Sri Dato Dr Teh
Hong Piow
Dato Lee Kong Lam
Ismail Ibrahim
PM
SECURITIES
SDN BHD
Ground & 1st Floor
Plaza MUI
Jalan P Ramlee
50250 Kuala Lumpur
Tel : 03-21463000
Fax : 03-21456345
Dealing Members:
Noorjehan Rahima bte
Abdul Hamid Jumat
Leong Kok Wah
Pan Malaysia Capital Bhd
Khet Kok Yin
Datin Munirah bte
Abdullah Ng
Dato Abdul Raman bin
Suliman
Zainal Rashid bin
Zainal Abidin
Khoo Bee Lin
Dato Seri Dr Ting Chew
RASHID
HUSSAIN
SECURITIES
SDN BHD
Level 9, Tower One
RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel : 03-9852233
Fax : 03-9855522
Dealing Members:
Tan Sri Dato Abdul
Rashid
bin Haji Mohamed
Hussain
Tajul Ariffin bin Mohd
RHB Capital Berhad
Oh Chong Peng
Ruslan bin Hassan
1/2/02
12:18 PM
Page 141
SIMESECURITIES
SDN BHD
21st Floor
Bangunan Sime Bank
4, Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel : 03-22749288/778
Fax : 03-22749907
Dealing Member:
Nil
SimeSecurities Holdings
Sdn Bhd
Dr Shafiq Sit bin Abdullah
Nik Din bin Nik Sulaiman
Tunku Tan Sri Dato Seri
Ahmad bin Tunku Yahya
Thavarajah a/l Chinniah
TA SECURITIES
BHD
Menara TA One
22, Jalan P Ramlee
50250 Kuala Lumpur
Tel : 03-2321277
Fax : 03-2322369
Dealing Members:
Datin Tan Kuay Fong
Ignatius Luke Jr Tan
Keng Hee
Attan Akmar bin Masbah
TA Enterprise Bhd
Kalimullah bin Masheerul
Hassan
U Chin Wei
Voting Member
JF APEX
SECURITIES
BHD
W isma Apex
145A-C & 2nd Floor 145DF
Jalan Bukit
43000 Kajang
Tel : 03-87361118
Fax : 03-87374532
Kajang
Apex Equity Holdings Bhd
Jardine Fleming (M)
Services
Sdn Bhd
Christopher Mark Quinton
Dealing Members:
Chan Guan Seng
Ng Seng Leong
Kharul Hurri bin
Khalid Abbas
Petaling Jaya Branch
Level 15 & 16
Menara Choy Fook On
No 1B, Jalan Yong Shook
Lin
46050 Petaling Jaya
Voting Member
AMSTEEL
SECURITIES (M)
SDN BHD
Voting Member
MOHAIYANI
SECURITIES
SDN BHD
1st, 2nd, 3rd & 4th Floor
W isma Amsteel Securities
No 1, Lintang Pekan Baru
Off Jalan Meru
41050 Klang
Tel : 03-3439999
Fax : 03-3433872
Dealing Members:
Ee Beng Guan
Dato Hj Abdul Rahim bin
Mohd Ibrahim
1st, 2nd & 3rd Floor
Plaza Damansara Utama
No 2, Jalan SS21/60
Damansara Utama
47400 Petaling Jaya
Tel : 03-77297345
Fax : 03-77281357
Klang
Datavest Sdn Bhd
Dato Hj Kamaruddin @
Abas bin Nordin
Sia Say Yee
Petaling Jaya
Dealing Members:
Datuk Mohaiyani bte
Shamsudin
Abdul Hamid bin
Abdul Samad
Nik Aminaldin bin
Nik Jaafar
Chin Kok Keng
Paribas
Christian Georges Henri
Gautier De Charnace
Abdul Ghani bin Ahmad
Adam Ghani Ahmad bin
Abdul Ghani
Amir Ghani Ahmad bin
Abdul Ghani
141
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SJ SECURITIES
SDN BHD
12:18 PM
Page 142
as at 30 June 2001
Member Company
OMEGA
SECURITIES
SDN BHD
(Dealer s licence
revoked by the
Securities
Commission on
5 June 1998)
Shah Alam
Non-Dealing Member:
Omega Holdings Bhd
Dealing Members:
Abdullah bin Ayub
Tiah Thee Peng
Yeo Lee Hoe
15th Floor
Plaza Perangsang
Persiaran Perbandaran
40990 Shah Alam
Tel : 03-5594900
Fax : 03-5599682
Voting Member
Johor Darul Takzim
Johor Bahru
ENG
SECURITIES
SDN BHD
95, Jalan Tun Abdul
Razak
80000 Johor Bahru
Johor Darul Takzim
Tel : 07-2231211/8212
Fax : 07-2246266
Dealing Member:
Lim Khuan Eng
Inter-Pacific Capital Sdn
Bhd
Datuk Hj Mohd Fatmi bin
Hj Che Salleh
Azlan Meah bin
Hj Ahmad Meah
Chan Kien Sing
JB SECURITIES
SDN BHD
Suite 8.2 Level 8
Menara Sarawak
Enterprise
No 5, Jalan Bukit Meldrum
80300 Johor Bahru
Johor Darul Takzim
Tel : 07-3332000
Dealing Members:
Yap Kai Keng
Idris bin Osman
Non-Dealing Member:
Dynamic Pearl Sdn Bhd
PENINSULA
SECURITIES
SDN BHD
Level 2, Menara Pelangi
Jalan Kuning, Taman
Pelangi
80400 Johor Bahru
Johor Darul Takzim
Tel : 07-3333600
Dealing Member:
Er Chin Her @ Er Ee
Pan Pacific Asia Bhd
Datuk Dr Philip Ling
Lee Kang
Voting Member
KESTREL
SECURITIES
SDN BHD
Johor Darul Takzim
57, 59 & 61, Jalan Ali
84000 Muar
Johor Darul Takzim
Tel : 06-9532222
9531222
Fax : 06-9516660
Voting Member
SOUTH JOHOR
SECURITIES
SDN BHD
142
Carta Bintang Sdn Bhd
Dato Ahmad Sebi bin
Bakar
Dealing Members:
Ahmad Azman bin
Abdul Manaf
Lim Poh Ho
Level 3, Holiday Villa
No 9, Jalan SS12/1
47500 Subang Jaya
Tel : 03-7340202
Fax : 03-7348342
Dealing Members:
Leow Wong Kong @
Leow Woon Kuang
Abd Rahman bin
Abu Samah
Johor Darul Takzim
3rd Floor
Penggaram Complex
1, Jalan Abdul Rahman
83000 Batu Pahat
Johor Darul Takzim
Tel : 07-4342282
Fax : 07-4327982
Muar
Dealing Member:
Husni bin Hussain
Tongkah Holdings Bhd
Abdul Rahman bin
Dato Mohd Hashim
Affendi bin Zahari
Mohd Alkaf bin Mohd
Batu Pahat
Arab-Malaysian Securities
Sdn Bhd
Chang Tuck Chee @
Philip Chang
Mustafa bin Haji Mohd Nor
Lee Yew Kin
1/2/02
12:18 PM
Page 143
Voting Member
ALOR SETA R
SECURITIES
(2000) SDN BHD
Kedah Darul Aman
Lot T-30, 2nd Floor
W isma PKNK
Jalan Sultan Badlishah
05000 Alor Setar
Kedah Darul Aman
Tel : 04-7317088/8270
Fax : 04-7318428
Voting Member
UPEN
SECURITIES
SDN BHD
Kelanamas Capital Sdn
Bhd
Tunas Enterprise Sdn Bhd
Ideal Appraisal Sdn Bhd
Dato Dr Haji Sallehuddin
Mansor bin Hussein
Lok Bah Bah @
Perlis Indera Kayangan
2nd Floor, Podium Block
Bangunan KWSP
01000 Kangar
Perlis Indera Kayangan
Tel : 04-9765200
Fax : 04-9760411
Voting Member
K O TA BHARU
SECURITIES
SDN BHD
Dealing Member:
Hashimah bte Ismail
Dealing Member:
Nil
Amal Bakti Sdn Bhd
Tan Sri Dato Seri Dr
Abdul
Hamid bin Pawanteh
Kelantan Darul Naim
298, Jalan Tok Hakim
15000 Kota Bharu
Kelantan Darul Naim
Tel : 09-7432288
Fax : 09-7485366
Voting Members
Dealing Member:
Mohamad bin Ab Aziz
Pakatan Canggih Sdn Bhd
Mohd Faiz bin Abdullah
Chan Gak Keong
W ong Hong Meng
Hj Mahfudz bin Muhamad
Melaka
MALACCA
SECURITIES
SDN BHD
No 1, 3 & 5, Jalan PPM 9
Plaza Pandan Malim
Business Park
Balai Panjang
75250 Melaka
Tel : 06-3371533
Fax : 06-3371550
3371577
Dealing Members:
Sim Swee Tin
Sim Cheng Khuan
T.M. Lim Sdn Bhd
Lim Peng Cheong
Dato Mohamed Zain bin
Mohamed Yusof
Kuala Lumpur City
Corporation Bhd
STRAITS
SECURITIES
SDN BHD
Lot 9 & 10, 1st Floor
Bangunan Tabung Haji
Jalan Banda Kaba
75000 Melaka
Tel : 06-2833622
Fax : 06-2849886
Dealing Members:
Goh Choon Hock
Ahmad Ezzanee Azizan
bin
Mohd Ali Azizan
Straits Asset Holdings
Sdn Bhd
Rosely bin Ahmad
Seah Fook Chin
Voting Members
M A L PA C
SECURITIES
SDN BHD
Negeri Sembilan Darul Khusus
Tingkat 1, 2 & 3
Nos 19
21
Jalan Kong Sang
70000 Seremban
Negeri Sembilan Darul
Khusus
Tel : 06-7623131
Dealing Members:
Chew Loy Chee
Gan Teck Chong @
Gan Kwan Chong
Tan Chon Sing @
Tan Kim Tieng
Ang Poo Guan
Non-Dealing Member:
Malpac Holdings Bhd
143
1/2/02
KLSE Members
PAN MALAYSIA
EQUITIES
SDN BHD
12:18 PM
Page 144
as at 30 June 2001
9th & 10th Floor
Bangunan Yayasan Negeri
Sembilan, Jalan Yam Tuan
70000 Seremban
Negeri Sembilan Darul
Khusus
Tel : 06-7633888
7638999
Voting Members
Pan Malaysia Capital Bhd
Datuk Mohd Yasin bin
Jaafar
Khet Kok Yin
Dato Seri Dr Ting Chew
Peh
Penang
A A ANTHONY
& CO SDN BHD
No 41-1-1 & 41-2-1
Jalan Cantonment
10250 Pulau Pinang
Tel : 04-2299318
Fax : 04-2268788
Dealing Members:
Lim Tiong Chin
Haji Abdul Rahman bin
Haji Ahmad
Dato Lim Pee Hung
Lim Pee Kee
Lim Pee Tong
Lim Teong Khoon
H WANG-DBS
SECURITIES
BHD
Level 2, 3, 4, 7 & 8
W isma Sri Pinang
60, Green Hall
10200 Pulau Pinang
Tel : 04-2636996
Fax : 04-2639597
Dealing Members:
Dato Hwang Sing Lue
Tunku Dato Seri
Nadzaruddin ibni
Tuanku Ja afar
Hwang Lip Teik
Hwang-DBS (Malaysia)
Berhad
Tunku Tan Sri Imran ibni
Tuanku Ja afar
Shah Alam Branch:
16th, 18th-20th Floor
Plaza Masalam
2, Jalan Tengku Ampuan
Zabedah
E9/E Section 9
40100 Shah Alam
Tel : 03-55133288
Fax : 03-55138288
Taiping Branch:
Tingkat Bawah
Aras 1, 2 & 3
21, Jalan Stesen
Aras 2 & 3
43 & 45 Jalan Stesen
34000 Taiping
Perak Darul Ridzuan
Tel : 05-8066688
8060888
Fax : 05-8089229
Johor Bahru Branch:
Podium 2A & 3
Menara Ansar
65, Jalan Trus
80000 Johor Bahru
Johor Darul Takzim
Tel : 07-2222692
2768787
Fax : 07-2765201
144
Dealing Member:
Ramli bin Mahmudin
1/2/02
12:18 PM
Page 145
SMITH ZAIN
SECURITIES
SDN BHD
7th & 8th Floor
Menara PSCI
39, Jalan Sultan Ahmad
Shah
10050 Penang
Tel : 04-2283355
Dealing Members:
Tan Chong Pen
Tan Giap How
Smith Zain (Malaysia)
Sdn Bhd
Dato Kamarudin bin Abu
Ausaf Akhtar Abbas
SOON THEAM
SECURITIES
SDN BHD
No 111, Jalan Macalister
10400 Penang
Tel : 04-2281868
Fax : 04-2263912
Dealing Members:
Yeo Khee Nam
Yeo Khee Bee
Ahmad bin Md Mydin
Yeo Khee Aik
Yeo Eng Chew, Cornelius
Yeo Eng Hai
Yeo Eng Ho
THONG &
K AY HIAN
SECURITIES
SDN BHD
W isma Sri Pinang
Level 5 & 6
60, Green Hall
10200 Penang
Tel : 04-2635481
Fax : 04-2635741
2622852
Dealing Members:
Thong Wai Loen
Thong Yue Leong
Thong Miew Peng
Kay Hian (M) Holdings
Sdn Bhd
Tang Wee Loke
W ee Ee Chao
Estate of Dato Hj Ali
bin Esa
UT SECURITIES
SDN BHD
6th, 10th & 12th Floor
Bangunan Mayban Trust
3, Penang Street
10200 Penang
Tel : 04-2626644/6660
Fax : 04-2644166
Dealing Members:
Frederick Ng Kweng Chan
Lee Seong Chong
Rentak Wira Sdn Bhd
Goh Choon Lye
Ling Hee Keat
Dato Kamaruddin bin
Jaafar
Voting Member
M E R C U RY
SECURITIES
SDN BHD
Butterworth
Ground, 1st, 2nd & 3rd
Floor
W isma UMNO
Lorong Bagan Luar Dua
12000 Butterworth
Seberang Perai
Tel : 04-3322123
Fax : 04-3231813
Voting Members
Dealing Members:
Chew Sing Guan
Mat Zuki bin Mahmud
Non-Dealing Member:
Hj Shuaib bin Lazim
Perak Darul Ridzuan
BOTLY
SECURITIES
SDN BHD
1st Floor
Plaza Teh Teng Seng
227, Jalan Kampar
30250 Ipoh
Perak Darul Ridzuan
Tel : 05-2531313
Fax : 05-2536785
2557950
Dealing Members:
Ee Beng Wat
Too Hai Ong
Ahmad Sabri bin Harun
TA Enterprise Bhd
Datin Tan Kuay Fong
Zainab bte Ahmad
KIN KHOON &
CO SDN BHD
A23
A29
W isma Kota Emas
Jalan Dato Tahwil Azar
30300 Ipoh
Perak Darul Ridzuan
Tel : 05-2543311
Fax : 05-2545567
2556570
Dealing Member:
Abdul Molok bin Abu
Bakar
Asian Pac Holdings Bhd
Dato Hamzah bin
Zainuddin
Phillip Gong Chiok Sin
145
1/2/02
KLSE Members
12:18 PM
Page 146
as at 30 June 2001
M & A
SECURITIES
SDN BHD
M & A Building
52A, Jalan Sultan Idris
Shah
30000 Ipoh
Perak Darul Ridzuan
Tel : 05-2419800
Dealing Members:
Choo Sen Yoong
Thong Kok Yoon
Non-Dealing Member:
Insas Bhd
SBB
SECURITIES
SDN BHD
51-53 Persiaran Greenhill
30450 Ipoh
Perak Darul Ridzuan
Tel : 05-2530888
Fax : 05-2537666
Dealing Members:
Raja Puan Sri Dato
Noora
Ashikin bte Raja
Abdullah
SBB Capital Markets
Sdn Bhd
Ramuda Sdn Bhd
Nordin bin Yahaya
Dato Tan Teong Hean
Voting Members
Terengganu Darul Iman
FA SECURITIES
SDN BHD
No 51 & 51A, Ground,
Mezzanine and 1st Floor
Jalan Tok Lam
Tel : 09-6238128
Fax : 09-6238129
Dealing Member:
Isa bin Mustapha
FA Peninsular Bhd
Perbadanan Menteri Besar
Terengganu
Dato Muhammad Fasir bin
Samsudin
Hj Mohd Ariff bin Taib
PTB
SECURITIES
SDN BHD
Tingkat 1, 2 & 3
No 61, Jalan Sultan Ismail
Peti Surat 151
Pejabat Pos Besar
Tel : 09-6235546
Fax : 09-6235532
Dealing Member:
Ismail bin Nik Man
PTB Securities Holdings
Sdn Bhd
Mat Zaid bin Ibrahim
Dato Mazlan @ Mohd
Nanri
bin Hashim
Hj Yusoff bin Hj Tahir
Voting Members
S A R AW A K
SECURITIES
SDN BHD
Sarawak
W isma Mahmud
Jalan Sungai Sarawak
93100 Kuching
Sarawak
Tel : 082-338000
Fax : 082-338222
Miri Branch:
Lot 2465
Jalan Boulevard Utama
Boulevard Commercial
Centre
98000 Miri
Sarawak
Tel : 085-435577
146
Dealing Members:
Dato Haji Onn bin
Mahmud
Shahnaz bte Abdul Majid
Noor Zakri bin Abdul
CMS Capital Sdn Bhd
Hijjas bin Kasturi
Mahmud Abu Bekir bin
Taib
Sulaiman Abd Rahman
bin Taib
1/2/02
12:18 PM
Page 147
BORNEO
SECURITIES
SDN BHD
12G, Jalan Kampung Datu
96000 Sibu
Sarawak
Tel : 084-319998
Fax : 084-313193
Dealing Member:
Tan Mee Mee
Voting Member
INNOSABAH
SECURITIES
BHD
Sabah
11 Equity House, Block K
Sadong Jaya,
Karamunsing
88100 Kota Kinabalu
Sabah
Tel : 088-234090
Voting Member
SHARETECH
SECURITIES
SDN BHD
Borneo Securities Holdings
Sdn Bhd
Tan Sri Dato Seri Megat
Junid bin Megat Ayob
Engak @ Richard Wi
l
Anak Uban
Henry Lian Aran
Clement Jamal Anak Eddy
Joseph Salang Anak
Dealing Members:
Faidzan bin Hassan
Kong Kok Keong
Freddie Chew Sun Ghee
Awang bin Ahmad @
Awang Ariffin
Kretam Holdings Bhd
Seah Sen Leang
Lee Swi Heng
Nikmat bin Abdullah
Federal Territory of Labuan
Unit 7A, Level 7
Financial Park Complex
Jalan Merdeka
87000 Wilayah
Persekutuan
Labuan
Tel : 087-410622
Dealing Member:
Zulazman bin Zulkifli
Non-Dealing Member:
Share Technology Capital
Group Sdn Bhd
Number of Member Companies (Voting Members): 56
Number of Dealing Members
: 116
Number of Non-Dealing Members
: 206
147
1/2/02
12:18 PM
Page 148
Notice of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Twenty-Fifth Annual General Meeting of the Exchange will be held
at the KLSE Theatrette, Lower Ground Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur on
S
a
t
u
r
d
a
y
,
10 November 2001 at 11:30 a.m. to transact the following business:
1.
To confirm the Minutes of the Twenty-Fourth Annual General Meeting held on 25 November 2000 at
11:30 am.
2.
To receive and adopt the report of the Committee, the Income and Expenditure Accounts for the year
e
n
d
e
d
30 June 2001 and the Balance Sheet as at 30 June 2001 with Auditors Report thereon in respect of
the Kuala Lumpur Stock Exchange and the Kuala Lumpur Stock Exchange Compensation Fund.
3.
To elect two (2) Committee Members.
4.
To elect Auditors and to authorise the Committee to fix their remuneration.
5.
To transact any other business which may be properly transacted at an Annual General Meeting.
BY ORDER OF THE COMMITTEE
AHMAD AZNAN MOHD NAW AWI
(LS No: 006940)
Company Secretary
Kuala Lumpur
19 October 2001
NOTE:
A. APPOINTMENT OF PROXY
RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE
1.
ARTICLE 24.7
(a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and vote
on its behalf at the general meeting and in the event such executive director is unable to attend the
general meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint a proxy to
attend and vote on behalf of the Voting Member;
(b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstances
referred to in Article 4.2(2) apply, such Members are entitled to appoint proxies to attend and vote on
their behalf, respectively.
148
2.
ARTICLE 26.4(1)
A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.
3.
ARTICLE 4.2
(1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at
all general meetings of the Exchange.
(2) In addition to the rights conferred under Article 4.2(1) a Non-Voting Member shall also have the right to
vote upon any resolution which varies or affects his rights or privileges as a Non-Voting Member under
the Memorandum of Association or these Articles.
1/2/02
12:18 PM
Page 149
Form of Proxy/Certificate of Representation
W e ____________________________________________________________________________________
of _____________________________________________________________________________________
being a Member of Kuala Lumpur Stock Exchange hereby appoint
_______________________________
of _____________________________________________________________________________________
as our proxy/representative to vote for us and on our behalf at the Twenty-Fifth Annual General Meeting
of the Exchange to be held on Saturday, 10 November 2001 at 11:30 a.m. and at any adjournment thereof.
Made this ____________ day of ____________ 2001.
______________________________________________
Signature of Director/Attorney authorised to act on
behalf of the Member
______________________________________________
Common Seal of the Member affixed in the presence
of the persons authorised by the Board of Directors
EXPLANATO RY NOTES
A. APPOINTMENT OF PROXY
RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE
(1) ARTICLE 24.7
(a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and vote
on its behalf at the general meeting and in the event such executive director is unable to attend the
general meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint a proxy to
attend and vote on behalf of the Voting Member;
(b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstances
referred to in Article 4.2(2) apply, such Members are entitled to appoint proxies to attend and vote on
their behalf, respectively.
B.
(2)
ARTICLE 26.4(1)
A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.
(3)
ARTICLE 4.2
(1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at
all general meetings of the Exchange.
(2) In addition to the rights conferred under Article 4.2(1), a Non-Voting Member shall also have the right
to vote upon any resolution which varies or affects his rights or privileges as a Non-Voting Member
under the Memorandum of Association or these Articles.
INSTRUMENT APPOINTING PROXY/REPRESENTATIVE TO BE DEPOSITED
The instrument appointing a proxy/representative shall be deposited at the registered office of the Exchange not
less than twenty four (24) hours before the time for holding the meeting or adjourned meeting at which the person
named in the instrument proposes to vote.
To ensure receipt of the above by the Exchange, kindly contact:
Tel: 03-20717810 or Marhani Hamzah
Tel: 03-20717327

What s Inside - Bursa Malaysia Berhad - Investor Relations

Transcription

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