Annual Report - Bursa Malaysia Berhad - Investor Relations

Transcription

Annual
Report
1999
KLSE
an n u a l report
PARTNERING TALENT WITH TECHNOLOGY
Entering
a
new
millennium
driven
by
technology, KLSE continues its successful
partnership
of
people
with
technology.
Our investment in technology is matched by our
human resource development. Our competitive
edge is in the hands of talented people,
developing and managing innovative technology,
in the quest to make the KLSE a modern and
efficient bourse of the new millennium.
99
19
Corporate Information
2
Executive Chairman’s Statement
Market Report
4
18
Issues In Focus
• Year 2000 Compliance
• Capital Adequacy Requirements
• Revamp of Listing Requirements
• Informed Investing
• Challenges for the Stockmarket
21
Committee Members
32
Management Team
34
Contents
Subsidiary And Related Companies
38
Calendar Of Events
52
Financial Statements
54
KLSE Sub-Committees
88
Monthly High, Low And Closing Indices
Volume, Value And Indices
90
92
New Listings
98
Membership Report
99
KLSE Members
Notice Of Annual General Meeting
Form Of Proxy / Certificate Of Representation
104
116
•
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Corporate
Information
Kuala Lumpur Stock Exchange (KLSE) (30632-P)
• Committee Members – Dato’ Mohammed Azlan Hashim
(Executive Chairman)
Chan Guan Seng
(Deputy Chairman)
Koh Kee Tee
Dato’ Hwang Sing Lue
Mohaiyani Shamsudin
Benny Ng Wu Hong
Dato’ Ranita Mohd Hussein
Tan Kim Leong
Abdul Kadir Hj Md Kassim
• President
• Deputy Presidents
•
•
•
•
Company Secretary
Auditors
Tax Consultants
Bankers
• Registered Office
– Dato’ Mohd Salleh Abdul Majid
– Md Nor Ahmad
Ungku A Razak Ungku A Rahman
– Izlan Izhab
– Messrs Hanafiah Raslan & Mohamad
– HRM (Tax Services) Sdn Bhd
– Bumiputra-Commerce Bank Berhad
Hongkong Bank Malaysia Berhad
Malayan Banking Berhad
– Kuala Lumpur Stock Exchange
14th Floor, Exchange Square
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 7099 Fax: 03-206 3684
Securities Clearing Automated Network Services Sdn Bhd (SCANS) (109716-D)
• Board of Directors
– Dato’ Mohammed Azlan Hashim
Chan Guan Seng
Koh Kee Tee
Mohaiyani Shamsudin
Benny Ng Wu Hong
Tan Kim Leong
Dato’ Mohd Salleh Abdul Majid
Dato’ Hj Megat Najmuddin Khas
Dato’ Sri Dr Hj Megat Khas
Md Nor Ahmad
(Alternate director to
Dato’ Mohd Salleh Abdul Majid)
• General Manager
• Company Secretaries
• Auditors
• Tax Consultants
• Bankers
– Ungku A Razak Ungku A Rahman
– Izlan Izhab
Abdul Raihan Mohd Yusof
– Malayan Banking Berhad
Multi-Purpose Bank Berhad
Southern Bank Berhad
– Securities Clearing Automated
Network Services Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 8099 Fax: 03-206 3720
Malaysian Central Depository Sdn Bhd (MCD) (165570-W)
Datuk Amirsham A Aziz
Chan Guan Seng
Tan Kim Leong
Dato’ Seri Syed Zainol Anwar
Jamalullail ibni Tuanku Syed
Putra Jamalullail
• General Manager
• Auditors
• Tax Consultants
• Bankers
– Ungku A Razak Ungku A Rahman
– Izlan Izhab
Ahmad Aznan Nawawi
Malayan Banking Berhad
Multi-Purpose Bank Berhad
– Malaysian Central Depository Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 2099 Fax: 03-206 3719
KLSE-Bernama Real-Time Information Services Sdn Bhd (KULBER) (152961-H)
2
(Chairman)
Prof Datuk Abu Bakar Abdul Hamid
(Deputy Chairman)
Datuk Teh Ghee Kok
Syed Jamil Syed Jaafar
Shahzalan Adam
Md Nor Ahmad
•
•
•
•
Auditors
Tax Consultants
Bankers
Registered Office
– Izlan Izhab
– KLSE-Bernama Real-Time
Information Services Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 8099 Fax: 03-206 3720
A n n u a l
R e p o r t
1999
Malaysian Share Registration Services Sdn Bhd (MSRS) (378993-D)
(Chairman)
Tan Sri Zulkifli Mahmood
Mohamad Shuib Abdul Ghani
Shanaz Radhiah Zulkifli
Tan Sri Zulkifli Mahmood)
Haji Mustapha Hashim
Mohamad Shuib Abdul Ghani)
• General Manager
•
•
•
•
Auditors
Tax Consultants
Bankers
Registered Office
– Abdul Nasir Ahmad Daud
– Izlan Izhab
– Malaysian Share Registration
Services Sdn Bhd
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 8099 Fax: 03-206 3720
The Kuala Lumpur Options & Financial Futures Exchange Bhd (KLOFFE) (261937-H)
– Ramli Ibrahim
(Executive Chairman/
Acting Chief Operating Officer)
Mohamad Ariff Md Yusof
SA Vanar
Dato’ Mohammed Azlan Hashim
Mohd Ridzal Mohd Sheriff
Omar Merican
Chan Guan Seng
Dato’ Mohammed Azlan Hashim)
Md Nor Ahmad
• General Manager
• Auditors
• Tax Consultants
• Bankers
– S Loganathan
– Izlan Izhab
Linda Song
– Arthur Andersen & Co
– Arthur Andersen HRM Tax Services & Co
Bumiputra-Commerce Bank Berhad
RHB Bank Berhad
Hong Leong Bank Berhad
– The Kuala Lumpur Options &
Financial Futures Exchange Berhad
10th Floor, Wisma Chase Perdana
Off Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel: 03-253 8199 Fax: 03-253 5911
Research Institute of Investment Analysts Malaysia (RIIAM) (139281-V)
• Board of Governors
(Chairman)
Chan Guan Seng
Tan Kim Leong
Benny Ng Wu Hong
Prof Tan Sri Dato’ Dr Syed Jalaluddin
Syed Salim
• Director
• Deputy Director
•
•
•
•
Auditors
Tax Consultants
Bankers
Registered Office
– Haji Wan Fauzi Wan Mahmood
– Abdullah Naib
– Izlan Izhab
– Research Institute of Investment
Analysts Malaysia
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 7099 Fax: 03-206 3701
Yayasan BSKL (464552-M)
• Board of Governors
(Chairman)
Chan Guan Seng
Haji Abdul Karim Harun
Dato’ N Sadasivan a/l NN Pillay
Dato’ Che Mohd Annuar
Che Mohd Senawi
Dato’ Syed Danial Syed Ahmad
•
•
•
•
Auditors
Tax Consultants
Bankers
Registered Office
– Izlan Izhab
– Yayasan BSKL
Bukit Kewangan
50200 Kuala Lumpur
Tel: 03-206 7099 Fax: 03-206 3684
3
Executive Chairman
A n n u a l
Executive
Chairman’s
THE
LAST YEAR OF THIS
MILLENNIUM
R e p o r t
1999
Statement
SAW THE
KUALA LUMPUR STOCK EXCHANGE
TAKING FIRM STEPS
ON STILL SHAKY GROUND.
IF
IT TAKES PLAIN SPEAKING TO DESCRIBE THE MAGNITUDE OF THE EXPERIENCE, THEN PLAIN SPEAKING
MUST BE EXCUSED.
THERE
WERE SO MANY NEEDS TO ADDRESS AT ONCE.
PROTECT, THE NEED TO REBUILD, THE NEED TO EXPAND AND GROW.
AND
THERE
WAS THE NEED TO
ALL THESE TO DO, AGAINST
A BACKDROP OF CHALLENGES THAT NEVER SEEMED TO TIRE IN TESTING THE COLLECTIVE WILL AND
RESOLVE OF THIS ECONOMY, AND THIS NATION.
IF
INDEED IT WAS A PERIOD OF ANTICIPATING THE WORST TO COME, IT WAS ALSO A PERIOD OF
PREPARING FOR THE BEST THAT HAS YET TO ARRIVE.
This was certainly the belief shared by the 17 new companies being listed on the Kuala Lumpur Stock Exchange (KLSE) for the
period under review, raising RM474 million. As at the end of the financial year, the total number of companies listed on the
KLSE was 745, with 458 companies listed on the Main Board and 287 companies on the Second Board.
As efforts to rebuild the economy, financial system and capital markets continued to be strengthened, the confidence which
once ebbed from the economy, and the stockmarket, flowed to return.
The result was a series of record highs in the market, experienced to date. The highest ever daily volume of 1.6 billion
shares was recorded on 12 July 1999. The highest ever daily trade transactions of over 450,000 trades, was also recorded
on the same day. The highest ever daily order transactions of over 860,000 orders was recorded on 15 July 1999.
The overall investment environment we were operating in, however, was still characterised by recovery and growth. Fortunately,
the effort did not stop short of just looking to rebuild and recover in the aftermath of past challenges.
As we stand together at the cusp of a new Millennium, allow me to ask: Are we truly mindful of the enormity of new
challenges we may yet face in the coming age? Will we be standing on a strong foundation built from tested experience and
knowledge, or are there shifting sands of fear and insecurity beneath our feet, as we usher in the new era?
5
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Thus, in offering the following report, it is as much
a testament of examining our efforts in an eventful
time as it is an agenda for the many objectives
sought ahead.
One such objective sought is Enhancing Market
Transparency.
The recent experience of understanding and learning
of weak spots that need to be strengthened, led to key
amendments made to laws governing the securities
industry – the Securities Industry Act 1983 and the
Securities Industry (Central Depositories) Act 1991.
What this means for the KLSE in its role as market
regulator, is a tremendous opportunity to examine itself
and examine the industry to make it better by enhancing
market transparency. Consequent to these amendments,
changes were made to the rules of the KLSE in
The new Rules also set significant parameters to
achieve greater clarity, transparency and consistency in
the conduct of business for stockbroking companies.
The key areas include:-
operating its clearing house – Securities Clearing
•
best business practice
Automated Network Services Sdn Bhd (SCANS) and its
•
dealing in securities
central depository – Malaysian Central Depository
•
rules on trading
Sdn Bhd (MCD). Changes were also made to the
•
delivery and settlement
KLSE’s rules governing stockbroking companies.
•
financial resources and accounting requirements
•
audit regulations
•
disciplinary actions
For MCD, it meant an improvement towards the
trading and ownership of securities to be undertaken
by only beneficial owners or authorised nominees.
To enhance transparency in securities trading,
Securities transfers between accounts have been
new disclosure requirements were introduced on
restricted to certain approved reasons only; whilst the
31 August 1998 requiring stockbroking companies to
deposit of scrip of all prescribed securities is made
take all reasonable measures to know their clients –
mandatory except under certain instances.
when these clients deal on behalf of other persons,
to disclose the identity of those other persons.
On the part of stockbroking companies, the benefits of
strengthening the rules were immediately apparent in
To reinforce this, stockbroking companies were
their operations as well as to their clients – investors
no longer permitted to engage in ‘off-market’ dealings,
at the KLSE.
except only in the form of Direct Business
Transactions (DBTs).
The KLSE’s new Memorandum & Articles (M&A) and
6
Rules took effect from 1 July 1999. The new M&A and
DBTs are to be cleared and settled through SCANS,
Rules incorporated new and enhanced measures
and the rules of KLSE and SCANS were amended
adopted to strengthen the stockbroking industry.
to accommodate the clearing and settlement of DBTs.
A n n u a l
R e p o r t
1999
Price limits on securities transacted in DBTs were
imposed on 22 March 1999. The effect was that
stockbroking companies were generally no longer
permitted to transact DBTs where the price limits were
breached, unless in corporate exercises, mergers or
take-overs involving genuine acquisitions or disposal of
shares which satisfy the prescribed criteria.
In continuing the effort to provide professionally
managed and financially strong conduits for investors to
access the stockmarket, prudential standards and
requirements were adopted for stockbroking companies.
KLSE issued standards for the classification and
treatment of interest on non-performing accounts.
Standards were also issued for the provision for bad
and doubtful debts in the financial statements of
stockbroking companies, effective from any financial
year beginning after 1 July 1999. These standards,
under the new Rule 16A for stockbroking companies,
achieves the significant objective of ensuring
consistency in the recognition of interest income on
non-performing accounts and the provision for bad
and doubtful debts.
At another level, to ensure the liquid capital of a
stockbroking company is sufficient to cover its total
measured risks, the Capital Adequacy Requirements
To enhance investor confidence and participation in
the stockmarket, dealings between stockbroking
companies and their clients – investors of the KLSE –
were also examined with care. The proposed client
asset protection rules relating to stockbroking
companies’ dealings with clients’ assets and the
mandatory minimum criteria to conduct margin
financing activities, are being finalised for introduction
in the next financial period.
To address the concerns of participants in the conduct
of stockbroking activity, the KLSE approved a standard
remisiers’ agreement, which took effect on 9 February
1999. The agreement, whilst seeking overall equitable
protection for stockbroking companies and remisiers,
also covers the significant areas of:-
(CAR) was made effective on 28 May 1999. CAR is a
•
Duties and obligations of remisiers
risk-based financial monitoring tool with separately
•
Remisiers’ security deposit
identifiable measures for the specific risks associated
•
Remisiers’ commission
with a stockbroking company’s business. CAR is
•
Remisiers’ transfer
presently running parallel with the existing monitoring
•
Rights of the stockbroking company
tool, the Minimum Liquid Funds computation.
•
Duties of the stockbroking company
7
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Just as the foundation building measures for stockbroking companies were carefully but surely put in place,
there was no let up in our monitoring for compliance and enforcement efforts, in dealing with improper conduct.
Of the over six hundred cases brought forward and initiated during the period under review, more than half were
completed. The following is a snapshot of KLSE’s compliance and enforcement efforts:Status Of Investigation Cases As At 30 June 1999
Cases Brought
Forward From
Financial Year 1998
Cases Initiated
During
Financial Year 1999
Total
Cases
Cases
Completed
Cases
Outstanding
Buying-ins / potential short selling
2
124
126
92
34
Alleged defaulters
10
123
133
39
94
Potential misuse of clients’ accounts
56
61
117
42
75
Other complaints of improper conduct
against dealers’ representatives
38
50
88
51
37
Complaints of improper conduct against
stockbroking companies
59
75
134
89
45
Potential false trading / market rigging /
market manipulation / insider trading
3
19
22
6
16
General complaints
14
8
22
19
3
Total
182
460
642
338
304
Category
Disciplinary Actions On Dealers’ Representatives And
Stockbroking Companies During Financial Year Ended
30 June 1999
Dealers’
Representatives
Stockbroking
Companies
19
—
Suspended and fined
3
—
Fined
14
4
Reprimanded
—
2
Total
36
6
Disciplinary Action
Struck off
The effort in building a secure and efficient stockmarket
is complemented by the task of making such a
stockmarket attractive for sustained investment and active
trading. Working towards such an objective is part of the
duty of the KLSE in Enhancing Corporate Disclosure.
KLSE’s objective in enhancing corporate disclosure was
achieved at many levels – in offering efficient systems
and services and in fine-tuning rules and regulations.
One such service, which makes a significant
contribution in enhancing corporate disclosure, is the
8
KLSE LINK. As an internet-based, electronic document
management system, the KLSE LINK enhances the
content, consistency and timeliness of corporate
announcements.
With the KLSE LINK, public listed companies and
merchant banks will have a secure and efficient
infrastructure to submit corporate announcements to
the KLSE. Investors, in turn, will have timely and easy
access to these announcements via the KLSE web-page
at www.klse.com.my.
In order to achieve wider dissemination of
announcements, the KLSE LINK supplements the
existing Maklumat Saham (MASA) – the KLSE’s
real-time share information system.
A significant part of the corporate announcements now
available through the KLSE LINK is the Quarterly
Reporting of Financial Statements by Public Listed
Companies. The requirement for quarterly reporting
was announced on 11 March 1999, very much in line
with KLSE’s emphasis for greater corporate disclosure
in content and frequency.
A n n u a l
R e p o r t
1999
5 Announcements on the
KLSE web site available
for public access
1 Prepare announcements
locally using the KLSE LINK
H O W
T H E
K L S E
L I N K
KLSE LINK
Server
F U N C T I O N S
KLSE WEB
Server
Internet
2 Connect to KLSE LINK
via the Internet
Internet
3 Announcements
electronically submitted
to the KLSE LINK server
•
PLCs
•
Merchant Banks
•
Company Secretaries
•
Investors
•
SBCs
•
Researchers & Analysts
•
Academicians
4 KLSE verifies announcements
and disseminates via KLSE
web server
KLSE LINK
This quarterly reporting by public listed companies
seeks to:•
•
•
•
make available to the investors material information
on the financial position of the public listed
companies in a timely, adequate and accurate
manner to aid investors in making informed
investment decisions.
reduce the investment risk for investors as the
timely, regular and updated financial information
enables investors to better determine the returns
and sustainability of their investment.
increase accountability of public listed companies
as increased frequency in financial reporting will
result in keeping the market informed of the
financial position of public listed companies on a
more regular basis.
enhance corporate governance among public listed
companies as corporate activities and the results
thereof are made more transparent to investors.
There has been a high degree of support for KLSE
by public listed companies in making quarterly
reporting with a compliance rate of 98% for reports
due 30 September 1999.
Submission Of Quarterly Reporting
– For Quarter Ended 31 July 1999
The new policy addresses:•
•
•
•
The policy benefits shareholders and investors by
enabling greater control in the conduct of their
investments through the continued trading of
securities, unless suspension is necessary for
dissemination of information or to maintain a fair and
orderly market. Its implementation also enhances the
responsibility and accountability of public listed
companies in making corporate announcements and
corporate disclosure.
As a further step to promote corporate responsibility
and accountability for companies listed on
the KLSE, on 11 March 1999, Restrictions on the
Number of Directorships, was announced.
In implementing the restrictions, KLSE addressed
the corporate governance issues arising from
multiple directorships by allowing directors of
public listed companies to :-
No Of Companies
•
Total number of Quarterly Reports
due on 30 September 1999
93
•
Total number complied
Failure to submit by due date *
91
2
•
Submission Statistics
Compliance rate
98%
Note:- * Of the two companies which failed to submit, one subsequently
submitted on 1 October 1999.
•
This high compliance rate is testimony to the resolve of
public listed companies to further enhance their
standards of transparency and accountability, and the
KLSE commends them for this effort.
With greater availability of corporate information and
greater corporate disclosure to promote participation in
the stockmarket, investors would also benefit from the
continuation of the fair and orderly trading of
securities. This forms one of the major considerations
for KLSE in Strengthening its Suspension Policy.
reasons for suspension requests by public listed
companies.
consideration to grant a request for suspension.
material announcements relating to the request for
suspension.
reduction in the suspension period.
devote more and sufficient time and energy to the
boards that they represent.
acquire a higher level of understanding of each
company’s business.
minimise or even eliminate conflict of interest
between their duties to different companies or
between their duty to the company and their
self interest.
improve a director’s independence and enhance
the ability to effectively monitor the company’s
executive management.
Given the recovery condition of the period under
review, it became more important than ever to have
the dedicated services of directors on the board of
public listed companies to further strengthen the
financial and operational monitoring of the respective
companies. The restriction is also a means of
promoting investor confidence in the public listed
companies that make our market.
9
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Under the new requirements, a director of a public
listed company shall not hold more than 25
directorships in companies of which :•
•
The blueprint for the investibility of Malaysian
companies listed on KLSE is largely contained in
the Listing Requirements. To continue having a
comprehensive view of the practical requirements of
the industry, the Listing Requirements are continuously
reviewed to ensure that they are consistent with the
laws and to address the needs of the industry and
investors. Some of the significant changes made to the
Listing Requirements for the period under review are:-
10
(a)
the number of directorships held in public listed
companies shall not be more than 10, and
the number of directorships in other companies ie.
other than public listed companies, shall not be
more than 15.
Applicable only to directors of public listed
companies, they had until 30 September 1999,
six months from the date of implementation of 1 April
1999, to file statutory declarations with the KLSE,
confirming full compliance with these requirements.
•
The amendments include the following :-
Rationalisation with the securities laws
In conjunction with the amendments to the
securities laws, the Listing Requirements were also
amended to ensure consistency with the new laws.
(b)
Ensuring that all new securities are issued by
way of crediting the securities account of
entitled persons.
Increasing the penalty that may be imposed
against a public listed company which breaches
the Listing Requirements, to RM1 million.
A new set of guidelines was also issued on
1 November 1998, to govern the purchase of own
shares by public listed companies.
•
Malaysian Code on Take-Overs and Mergers 1999
The Listing Requirements were also amended upon
the implementation of the new Malaysian Code
on Take-Overs and Mergers 1999. The relevant
provisions in the Listing Requirements were
strengthened to enhance disclosure and transparency.
As in KLSE’s governance over stockbroking companies,
which seeks to strike a balance between developmental
and enforcement efforts, similarly, there was also
continued vigilance in the supervision of the conduct
of public listed companies.
A n n u a l
R e p o r t
1999
Actions Taken For Breaches Of Listing Requirements From July 1998 To June 1999
No Of Cases
Type Of Cases
Caution
& Impress
Private
Reprimand
Public
Reprimand
Public
Reprimand
& Fine
Total
Breaches of Corporate Disclosure Policy on immediate
public disclosure of material information
– Section 335 of MBLR, Clause 1.18 of SBLR
1
—
2
4
7
Breaches of Disclosure on Acquisitions and Realisations
– Sections 36-37, 114-115 of MBLR,
Clauses 3.15, 3.16, 5.4-5.6, 5.8 of SBLR
—
—
7
6
13
Non-compliance of the notice for Books Closing Date
– Section 23 of MBLR
—
1
—
—
1
Failure to release Half Yearly Results on time
– Section 56 of MBLR / Clause 3.20 of SBLR
—
—
4
—
4
Failure to release Preliminary Financial Statement on time
– Section 57 of MBLR/Clause 3.21 of SBLR
—
3
—
2
5
Failure to furnish Annual Report on time
– Section 60 of MBLR/Clause 3.22 of SBLR
—
9
1
16
26
Total
1
13
14
28
56
Status Of Investigation Cases On Public Listed Companies As At 30 June 1999
Category
Cases Brought
Cases Initiated
Forward From
During
Financial Year 1998 Financial Year 1999
Total
Cases
Cases
Completed
Cases
Outstanding
Corporate Disclosure Policy of the KLSE
1
12
13
9
4
Acquisitions and Realisations
—
39
39
19
20
Deferment of dividend payment
—
1
1
1
—
Failure to make immediate disclosure of
winding-up petition and appointment
of receiver & manager
—
2
2
—
2
Non-compliance of the notice for
Books Closing Date
– Section 23 MBLR
—
1
1
1
—
Failure to release Half Yearly Results on time
– Section 56 MBLR/Clause 3.20 SBLR
2
4
6
6
—
Failure to release Preliminary
Financial Statement on time
5
5
10
10
—
Failure to furnish Annual Report on time
3
25
28
28
—
Total
11
89
100
74
26
Note:- MBLR – Main Board Listing Requirements
SBLR – Second Board Listing Requirements
11
K u a l a
L u m p u r
S t o c k
E x c h a n g e
With enhanced corporate disclosure and better
investment opportunities provided by a larger number
of public listed companies developing exemplary
conduct, KLSE continues to emphasise the need to
Enhance Investor Education.
KLSE Group’s training arm, Research Institute of
Investment Analysts Malaysia (RIIAM), organised
154 training sessions encompassing both in-house and
public programmes. For the period of January – June
1999 alone, RIIAM conducted 118 training sessions.
During the period under review, 85 sessions of
in-house training programmes comprising technical
and soft skills were conducted for KLSE Group.
RIIAM developed its own modules for Staff Development
and Management Development Programmes and
a total of 1,823 participants attended the programmes.
The RIIAM Diploma in Investment Analysis programme
is in its sixth year of operations. At present, a total of
7 classes are being conducted, with 3 classes in Kuala
Lumpur, 2 classes in Penang and another 2 classes in
Kuching. The close co-operation between RIIAM and
the Royal Melbourne Institute of Technology (RMIT),
since 1994, has seen 420 graduates of the RIIAM
Diploma in Investment Analysis. Graduates of this
diploma are strategically placed to contribute to the
development of a well-informed investing community,
who would base their investment decisions more on
fundamentals and less on sentiments and perceptions.
RIIAM is also negotiating with local universities to
offer the diploma programme concurrently with their
bachelors degree programmes. A part-time bachelors
degree, in collaboration with RMIT, is also being
formulated; this will offer yet another flexible,
cost-effective option for professionals to obtain a
recognised and relevant degree.
For the year under review, the network of investor
information centres – Balai Maklumat BSKL expanded, to now include cities like Penang,
Johor Bahru and Kuching, in addition to the Public
Information Centre in Kuala Lumpur.
KLSE’s network of Balai Maklumat is a valuable
repository of investment information and provides the
latest information on public listed companies, market
analysis reports, trading reports of public listed
12
companies and information on the KLSE Group and
securities markets.
Towards the continued growth and development of the
KLSE, the progress made thus far in developing rules,
measures, systems and services, are made possible in
the strategic partnering of KLSE’s talented human
resources with innovative technology.
In Improving Information Technology, KLSE continues
to streamline, fine-tune and upgrade its information
technology systems.
The broker front-end trading system, WinSCORE,
was enhanced to include :•
•
•
Improved company announcements in terms
of content and display format. The improvement
on the timeliness and content of company
a n n o u n c e m e n t s i s m a d e p o s s i b l e by t h e
KLSE LINK.
Introduction of an Investor Alert Indicator to
highlight critical financial information of public
listed companies which require closer monitoring
by investors.
Changes to the direct business transaction module
to be compliant with the KLSE’s new rule on direct
business transactions.
The KLSE Help Desk Online Services System,
an internet-based system, was introduced to all
stockbroking companies on 15 January 1999.
The service was introduced with the aim of improving
KLSE’s communication to stockbroking companies,
facilitate timely dissemination of circulars and provide
a broad spectrum of information on the information
technology services provided by the KLSE Group.
Another system, the Message-Based Middleware
System, fully implemented in October 1998,
revolutionised the manner in which messages are sent
from the central trading system and the broker frontend trading system. With its implementation, average
response time improved by more than 50% to
3 seconds or less for about 99% of transactions.
Other benefits gained include:•
More than 1,100 units of personal computers used
as gateways to the central trading system could be
re-deployed to be used for other purposes by
the stockbroking companies.
A n n u a l
•
•
Improved security of message transmission.
More efficient usage of the network and also
improved network availability.
Given the trend towards increasing use of information
technology and electronics, the KLSE introduced the
Electronic Client Ordering System (ECOS) Code in
November 1995. The code was to guide stockbroking
companies to implement services related to ECOS,
such as electronic order routing and trade confirmation
to clients. Stockbroking companies approved to
operate ECOS have since introduced internet-based
services for order routing and trade confirmation.
In dealing with the most significant issue of Year 2000
(Y2K) Compliance, no effort has been spared,
including industry-wide tests, to ensure that all mission
critical systems continue to operate reliably before,
on and after the year 2000.
The objective is to minimise the impact to the
Malaysian securities market upon the roll-over to the
new Millennium. Various levels of testing were
conducted ranging from unit tests to End-to-End
Industry-Wide Tests.
To date, 4 Y2K End-to-End Industry-Wide Tests
have been conducted, involving various industry
participants. The purpose of these tests is to allow
industry participants to perform integrated testing of
their systems with the KLSE Group systems.
Currently, the KLSE Group and all stockbroking
companies are Y2K compliant, whilst over 95%
of public listed companies will be Y2K compliant
by November 1999.
Y2K Compliance Of The Securities Industry
As At October 1999
KLSE Group Of Companies
100%
Stockbroking Companies *
100%
Public Listed Companies +
Main Board
89.18%
Second Board
93.66%
R e p o r t
1999
An external independent auditor was engaged to
specifically review and ensure that all processes and
activities carried out by the KLSE Group address the
Y2K problem comprehensively.
In addition, the KLSE Group has developed detailed
action plans towards the full development of
comprehensive contingency plans.
Y2K Compliance Of Public Listed Companies For 1999
Public Listed
Companies’ Y2K
Compliance Status
Main Board
October 1999
412
89.18%
266
93.66%
November 1999
440
95.24%
277
97.53%
December 1999
462
100%
284
100%
Second Board
The KLSE regularly updates its Y2K status on its web
site – www.klse.com.my.
With improvements in information technology, equal if
not greater emphasis is placed by the KLSE on
Developing its Human Resources.
A group restructuring, effective 1 February 1999, was
undertaken in line with the expansion of KLSE’s role in
strengthening the securities industry. The reinforced
structure of the KLSE is to achieve:•
•
•
a unified decision making structure to ensure
greater consistency in the enforcement of rules,
regulations and requirements,
an organisation of increased capability for
innovation, growth and industry development,
a greater scope for co-operation with the
government, Ministry of Finance, other regulators
and industry participants.
Note:- *For stockbroking companies, 61 active members are fully
compliant while 2 inactive members (Labuan Securities and
Halim Securities) are not compliant and have been
suspended from trading.
+For the 746 public listed companies comprising 462 Main
Board companies and 284 Second Board companies,
full compliance is expected by December 1999.
13
K u a l a
L u m p u r
S t o c k
E x c h a n g e
With the restructuring exercise, the manpower resources will be used more efficiently and effectively to achieve the
KLSE’s operational objectives. More than 200 staff within the KLSE Group were involved in the restructuring exercise.
The rationalisation also included the establishment of several new divisions and departments.
KLSE COMMITTEE
EXECUTIVE CHAIRMAN'S
OFFICE
AUDIT SUB-COMMITTEE
GROUP HUMAN RESOURCE
GROUP INTERNAL
AUDIT
EXTERNAL
AUDITOR
EXECUTIVE CHAIRMAN
POLICY & DEVELOPMENT
MARKET SUPERVISION
GROUP
RIIAM
KLOFFE
PRESIDENT
DEPUTY PRESIDENT
LISTING GROUP
• Operations
• Financial Review &
Surveillance
• Legal Advisory
CORPORATE &
LEGAL AFFAIRS
• Legal
• Group Corporate Affairs
• Membership
DEPUTY PRESIDENT
FINANCE, TREASURY
& ADMINISTRATION
• Finance
• Treasury
• Administration
PUBLIC
INFORMATION
SUPPORT SERVICES
• SCANS
• MCD
• KULBER
• MSRS
MARKET
INFRASTRUCTURE
INFORMATION
TECHNOLOGY
• Facilities Management
• Information Services /
Information Technology
GROUP
COMMUNICATIONS
• Research / Publications
• Public Information Centre
• Industry Specialists
KLSE
Subsidiary and Related Companies / External Auditors
With the improvement in the nature of work of the
past, new patterns of work have emerged. Previous
work patterns have been modified and new ones
added to suit the changing needs of the investors and
investment environment.
In continuously improving its role and responsibilities,
the KLSE Group continued its contribution to
Developing the Securities Industry in exploring
opportunities to broaden and deepen the industry.
KLSE Group entered into an agreement with the
Malaysian Exchange of Securities Dealing & Automated
14
Quotation Berhad (MESDAQ) to provide clearing,
settlement and depository services. These services
were first used following the commencement
of its operations on 30 April 1999. To date,
23 stockbroking companies are subscribing to more
than 230 WinMESDAQ terminals.
In broadening investment options, the KLSE Syariah
Index (KLSE SI), was launched on 17 April 1999.
The launch of the KLSE SI is to cater for increasing
demand by local and foreign investors who seek to
invest in securities and instruments which are in line
with Syariah principles.
A n n u a l
AS
AN INSTITUTION INTEGRAL TO THE
THE
MALAYSIAN
K UALA L UMPUR S TOCK E XCHANGE
FORWARD
R e p o r t
IN
1999
ECONOMY,
L OOKING
WILL CONTINUE TO CONTRIBUTE SIGNIFICANTLY TO
THE MOBILISATION O F C A P I TA L , T H E C R E AT I O N A N D
DISTRIBUTION
OF
W E A LT H
AND
SUPPORTING
THE
GOVERNMENT IN IMPLEMENTING NATIONAL POLICIES.
The KLSE SI is a weighted-average all share index with
its components currently made up of 274 Main Board
companies approved by the Syariah Advisory Council
(SAC) of the Securities Commission.
ISS is a significant development in the KLSE’s move to
continually improve and place itself on par with other
jurisdictions in terms of settlement of trades. There is
no doubt that the ISS will facilitate increased
institutional participation in the KLSE.
In ensuring that the KLSE SI closely reflects
the latest developments and changes in Syariah
approved investments, the KLSE SI components
will be periodically updated in line with SAC’s list
of approved securities.
To date, 12 institutions comprising institutional
investors and custodian banks have been approved as
Non-Trading Clearing Members to benefit from the ISS.
On 3 May 1999, the KLSE announced that it had
enhanced foreign interest in Malaysian shares through
the regulation of depository receipts. The regulation
of depository receipts was put in place with
amendments to the KLSE’s Listing Requirements as well
as the rules of MCD.
Jawatankuasa Antara Agensi Kawalselia (JAK),
a committee comprising regulatory agencies involved
in the capital market and securities industry was
established in April 1999. JAK was formed to discuss
and enhance the co-ordination of cross-jurisdictional
issues and developmental matters. The Ministry of
Finance, Bank Negara Malaysia, Securities Commission,
Registrar of Companies and KLSE are the members of
JAK with KLSE acting as the Secretariat.
Among the important benefits the regulation of
depository receipts will achieve, in contributing to
enhancing foreign interest in Malaysian shares, are:•
•
•
increase the profile and liquidity of Malaysian
shares whilst enabling Malaysian companies to
maintain an international profile.
provide foreign investors with options to trade in
Malaysian securities.
attract long-term investors.
To encourage and further enhance the participation of
Bumiputera in the securities industry, the KLSE
established a Bumiputera Unit. Since its establishment,
the Unit has been involved in dialogue sessions,
exhibitions and meetings with various Bumiputera
bodies and agencies to promote their involvement in
the securities market.
To facilitate the settlement of trades of investors
directly with the clearing house, the KLSE launched
the Institutional Settlement Service (ISS) on 15 July
1999. Offered by SCANS, the system enhanced the
current Delivery versus Payment (DVP) environment
by extending the clearing membership to include
resident custodian banks and institutional investors as
Non-Trading Clearing Members.
KLSE completed its acquisition of KLOFFE Berhad, the
operator of the Kuala Lumpur Options and Financial
Futures Exchange (KLOFFE), on 31 December 1998.
The acquisition was a step forward in enabling the
rationalisation of equity and derivatives markets and
the optimal utilisation of resources for both the
securities and future exchanges. KLSE’s participation in
the futures industry is expected to further enhance the
development of the securities industry.
Whilst the KLSE’s present T+5 rolling settlement
system remains, the ISS provides an additional
option for institutional investors and custodian
banks to participate directly in the clearing and
settlement process.
In 1998, the KLSE conducted a joint survey with
PricewaterhouseCoopers on corporate governance.
A key finding of the survey was that corporate
governance is an essential factor in enhancing investor
confidence.
15
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Over half of the institutional groups surveyed indicated
that if further improvements were made to the
prevailing corporate governance regime, they would be
encouraged to invest in Malaysia. Almost one third
indicated that the prevailing standards of corporate
governance are an incentive for investing in Malaysia.
The survey findings served as valuable input to the
Finance Committee on Corporate Governance in
formulating their recommendations.
advices in Bahasa Malaysia and English. The availability
of CDS forms in Bahasa Malaysia enables MCD to
facilitate more investors to open CDS accounts in
order to invest in the stockmarket.
The KLSE, in seeking to grow and develop further
by learning and understanding from industry
participants, locally and abroad, continued to focus
on Strengthening International Relations.
KLSE hosted four major international events namely:-
On 16 November 1998, the KLSE, in recognising the
contribution by various other institutions to the securities
industry, extended the categories of institutions eligible
for rebates on brokerage commission to include:•
•
•
•
•
•
life insurance companies
general insurance companies
superannuation or employees provident funds
finance companies
asset management companies and unit trust
management companies
trust companies or institutions
This rebate reduces transaction costs for the institutions.
Greater participation from institutions in the stockmarket
is expected to encourage longer term investments based
on fundamentals, leading to greater market stability.
Beginning February 1999, investors can obtain
Bahasa Malaysia Forms from their stockbroking
companies, to facilitate the following services:•
•
Opening and closing of CDS accounts
Updating of CDS accounts
Since December 1998, CDS account holders have
been receiving bilingual monthly statements and
•
•
•
•
FIBV Annual General Assembly from 25 – 27
October 1998.
Association of National Numbering Agencies
(ANNA) Extraordinary General Meeting from
30 November – 1 December 1998.
Asian Securities Analysts Federation (ASAF) Annual
General Meeting & Conference 1999 from 10 – 12
October 1999.
International Council of Investment Analysts (ICIA)
Biannual General Meeting 1999 on 10 October 1999.
FIBV is the international federation of 54 stock exchanges
whilst ANNA implements and maintains standards and
practices to facilitate cross border trading and settlement.
ASAF represents over 23,000 investment professionals
from 12 member countries including Japan, Taiwan,
Hong Kong, Australia, New Zealand and Malaysia.
ASAF is a member of ICIA – an international
organisation for securities analysts’ societies in Europe,
North America, South America and Asia.
KLSE also participated in the East Asian and Oceanian
Stock Exchanges Federation (EAOSEF), which is a
federation of 13 member stock exchanges.
KLSE was admitted as an affiliate member of the
International Organisation of Securities Commissions
(IOSCO) in May 1999. IOSCO has 164 member
societies worldwide.
The KLSE Group in setting the standard for the role of
corporate citizens in Providing for the Community,
has made contributions to a number of organisations
via Yayasan BSKL, which was established in 1998.
To date, Yayasan BSKL has contributed RM260,465
to benefit organisations including children’s homes,
homes for the elderly, the disabled and the poor.
The KLSE Group also initiated an industry contribution
to the JE Trust Fund. The KLSE Group together with
16
A n n u a l
R e p o r t
17 stockbroking companies and 140 public listed
companies contributed RM1 million. The special fund
was set up not only to provide assistance to victims of
the Japanese Encephalitis virus but also to sponsor the
activities involved in containing the outbreak.
•
•
•
In building the Milestones to the Millennium, KLSE
launched the KLSE Corporate Awards at the inaugural
Evening with KLSE Listed Companies on 18 August
1999. More than 700 senior representatives from over
500 public listed companies attended the event.
The awards serve to recognise and honour public
listed companies with excellent corporate conduct.
The awards seek not only to reward the deserving, but
also to continue to motivate and develop high standards
of corporate conduct among public listed companies.
Key among these challenges is the increasing dominance
of an investors’ market and shareholders’ activism, which
will drive stockmarkets to look even more critically at
operations and systems, changing them, recreating them
to meet these evolving requirements.
The KLSE Corporate Awards will be presented annually
commencing with the KLSE Corporate Awards 2000.
All public listed companies will have until next year to
vie for the awards.
As in previous years, through the National Annual
Corporate Report Awards (NACRA) 1999, KLSE
encourages public listed companies to use the medium
of annual reports to provide shareholders more
information on the companies’ initiatives and
objectives, adherence to corporate governance, audit
committee report and value added information
on employees, fixed assets and employment costs.
The information is to enable investors to make more
informed investment decisions.
For the year 2000, a new award on environmental
reporting has been introduced to address and recognise
efforts towards its preservation.
As an institution integral to the Malaysian economy, the
KLSE in Looking Forward will continue to contribute
significantly to the efficient mobilisation of capital,
the creation and distribution of wealth and supporting
the government in implementing national policies.
Even as we talk of a transition into the next Millennium,
lest we forget, transition is not only transformation,
it is also creation.
1999
Dealing with globalisation and liberalisation.
Dealing with the challenges of a borderless market.
Reviewing the role of securities industry participants
in light of internet trading, electronic broking, cross
border trading and listing.
The present push forward will continue, so as to
achieve an efficient, cost effective and secure market,
in making the KLSE an exchange for the Millennium.
In closing, our Commendations to the KLSE Committee
Members for the well considered guidance and
direction, the close support and co-operation, in
managing the challenges of the year.
To the Boards of Directors of Securities Clearing
Automated Network Services Sdn Bhd, Malaysian
Central Depository Sdn Bhd, The Kuala Lumpur
Options & Financial Futures Exchange Bhd, KLSEBernama Real-Time Information Services Sdn Bhd,
Malaysian Share Registration Services Sdn Bhd and the
Boards of Governors of the Research Institute of
Investment Analysts Malaysia and Yayasan BSKL –
thank you all for your dedication and commitment to
the KLSE Group.
On behalf of the KLSE Committee, our sincere
appreciation to the Right Honourable Prime Minister in
guiding policies for continued growth and improvement.
Our acknowledgement for the support of the Ministry
of Finance, Securities Commission, Bank Negara
Malaysia, Registrar of Companies and related regulatory
authorities in working closely together.
To all staff of the KLSE Group, we appreciate and
value greatly your belief and continued dedication to
the organisation, which has benefitted from your effort,
professionalism and contribution.
In working together, we unite in building a progressive
KLSE for the new Millennium.
In creating a Millennium for ourselves, our readiness and
capability will depend on numerous factors, including:•
Emphasising information technology as a useful
mechanism to channel valuable and scarce resources.
DATO’ MOHAMMED AZLAN HASHIM
Executive Chairman
17
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Market
Report
1 July 1998 to 30 June 1999
30.06.1999 vs 30.06.1998
KLSE Indices
30.06.1999
30.06.1998
Points Change
% Change
EMAS
207.56
115.36
92.20
79.92
Composite
811.10
455.64
355.46
78.01
1,380.58
915.83
464.75
50.75
Consumer Products
169.52
121.18
48.34
39.89
Industrial Products
86.44
56.96
29.48
51.76
Construction
237.39
93.27
144.12
154.52
Trading / Services
128.84
71.07
57.77
81.29
Finance
6,328.23
2,419.22
3,909.01
161.58
Property
1,064.73
580.35
484.38
83.46
Plantations
1,766.92
1,604.78
162.14
10.10
Mining
264.46
153.35
111.11
72.46
Syariah*
125.65
—
—
—
Second Board
179.77
97.99
81.78
83.46
Industrial
Note:- * launched on 17.4.1999
The financial year ended 30 June 1999 witnessed a
significant strengthening of the stockmarket. The KLSE
Composite Index (KLSE CI) closed above the 800-point
level on 24 June 1999 for the first time in twenty
months. The last time it traded above this level was in
October 1997. At the close of the financial year ended
30 June 1999, the KLSE CI had gained 355.46 points
or 78 per cent at 811.10, compared to 455.64 on
30 June 1998. During the same period, total market
capitalisation increased by 86 per cent to RM532 billion
from RM286 billion a year ago. Total volume likewise
increased to 72 billion units compared to 67 billion
units in the previous year, although total transacted
value decreased to RM136 billion from RM254 billion
a year ago.
Stabilisation measures continued to be implemented
by the Government and its agencies to restore
investor and consumer confidence, as well as to
revive the economy.
The first two months of the financial year saw the KLSE
CI fall by 152.73 points or 34 per cent to 302.91
at the close of 28 August 1998, from 455.64 at the
close of 30 June 1998. Total market capitalisation
18
shrank by 30 per cent to RM200 billion from
RM286 billion during the same period. Average daily
volume during the two months dwindled to 123 million
units. This was in line with the state of the local
economy, and the weakness of regional markets.
The ringgit remained weak a year after the flotation of
the Thai baht. Investors’ concerns that the weak ringgit
would cause companies’ earnings to fall, as well as
some companies not being able to service their loans
due to high interest rates, became a reality. Sentiment
weakened as the performance of financial institutions
and corporations worsened, with some even seeking
protection against creditors under Section 176 of the
Companies Act.
Confidence was also shaken by ratings’ downgrade by
foreign agencies. Standard & Poor’s lowered Malaysia’s
sovereign rating to a negative outlook, and downgraded
Malaysia’s long-term foreign and local currency ratings.
Moody’s Investors Service similarly lowered Malaysia’s
long-term and short-term currency country ceilings for
debts. The market was also affected by instability in
regional currencies. The weakening of the Japanese
yen led to fears of a Chinese renminbi devaluation,
while the Hong Kong dollar came under speculative
A n n u a l
attack, forcing the Hong Kong government to increase
the interbank rate to defend the currency. This led to
the fall in the Hang Seng Index. Even the devaluation
of the Russian rouble unnerved the local market.
Wall Street was not spared either, suffering its second
largest single-day point loss in history of 512.61 points
on 31 August 1998 amid worries over the global
economic situation.
To strengthen the economy and improve the investment
environment, stabilisation measures were undertaken
by the Government and its agencies. Among these
were the formation of special purpose vehicles,
namely, Pengurusan Danaharta Nasional Berhad and
Danamodal Nasional Berhad, to strengthen the
banking system. The Corporate Debt Restructuring
Committee was also established to aid in loan
restructuring of the corporate sector. The National
Economic Action Council (NEAC), in July 1998,
released the National Economic Recovery Plan (NERP)
which outlined the comprehensive framework for
national economic recovery. To complement these
measures, Bank Negara Malaysia (BNM) eased the
three-month intervention rate three times in August,
from 11.00 per cent to 9.50 per cent, and raised the
hire-purchase financing ceiling to 85 per cent.
To enhance transparency and make Malaysia the
premier market for the trading of Malaysian securities,
measures were introduced by the KLSE on 31 August
1998. With immediate effect, all dealings in securities
listed on KLSE must be effected through KLSE or a
recognised exchange.
On 1 September 1998, the Government announced its
decision to insulate the Malaysian economy from
external forces by imposing selective exchange
controls on foreign exchange transactions. The three
major controls were international non-convertibility of
the ringgit, pegging of the ringgit to the US dollar
(RM3.80 to US$1), and one-year holding rule for
portfolio capital.
The initial reaction to the selective exchange controls
resulted in the KLSE CI falling by 40.21 points or
13 per cent to 262.70. This was compounded by the
512.61-point overnight plunge on Wall Street. Market
R e p o r t
1999
capitalisation shrank on the same day to RM181
billion from RM200 billion the previous day. However,
after having absorbed the news fully, the market made
a turnaround on the following day and almost recovered
the previous day’s loss by gaining 31.89 points.
On 4 September 1998, the Stock Exchange of Singapore
announced that trading of Malaysian securities on the
Central Limit Order Book (CLOB) would be discontinued.
Trading ceased permanently on 16 September 1998.
By 7 September 1998, the KLSE CI had gained 182.36
points or 69 per cent from its low on 1 September
1998 to close at 445.06. The rise, however, did not
sustain for long and for the remaining period of
September, and the first half of October, trading was
range-bound between 360.10–393.25. The expectations
of an expansionary budget and the U.S. Federal
Reserve’s decision to cut its key interest rates by
25 basis points were among factors that helped to
lift market sentiment in the latter half of October.
The KLSE CI closed at 405.33 on 30 October 1998.
In November, the KLSE CI eventually crossed the
500-point level to close at 501.47 on 30 November
1998. During the month, the Securities Commission
(SC) announced the extension of the warrants period
to a maximum of ten (10) years, followed by the
new guidelines for fund management. Sentiment was
buoyed by better economic data which showed the
trade balance recording a surplus for the eleventh
consecutive month in September 1998, while foreign
reserves rose to RM89.3 billion as at end October
1998 from RM81.5 billion as at end September 1998.
BNM announced another reduction in the three-month
intervention rate from 7.50 per cent to 7.00 per cent.
Market sentiment continued to improve and steady
gains in the KLSE CI throughout the month of December
resulted in the Index ending the year at 586.13. Within
four months since the selective exchange controls were
imposed, the KLSE CI had gained 323.43 points or 123
per cent, and total market capitalisation had increased
by RM194 billion or 107 per cent to RM375 billion.
Average daily volume transacted during the month
increased to 372 million units (RM705 million) from
330 million units (RM515 million) in November.
19
K u a l a
L u m p u r
S t o c k
Market Report
E x c h a n g e
1 July 1998 to 30 June 1999
By 21 January 1999, the KLSE CI had crossed the
600-point level to close at 614.52. Trading activity,
however, slowed to an average daily volume of
207 million units (RM455 million). Several measures
were implemented during the month. The new TakeOvers & Mergers Code and the Capital Adequacy
Requirements for stockbroking companies were
introduced. The latter will replace the Minimum Liquid
Funds requirement for stockbroking companies. This was
followed by BNM allowing repatriation of contra-trade
profits by foreigners and allowing stockbroking
companies to provide margin financing for non-residents.
In the following month of February, the market
turned quiet on lack of buying support ahead of the
Chinese New Year holidays. An average daily volume of
140 million units (RM330 million) was recorded.
The KLSE CI traded within the range of 526.10 –
579.55 during the month. Measures continued to be
implemented to strengthen confidence. On 4 February
1999, BNM announced a graduated exit levy for
portfolio investments, to be implemented on 15 February
1999, to replace the existing selective exchange controls.
Investors remained sidelined in the face of uncertainty
over the possibility of poor corporate results and in the
absence of fresh leads. Consequently, the average daily
volume in March was further reduced to only
80 million units (RM169 million) while the KLSE CI
traded within a tight range of 494.97 – 531.54.
Confidence returned to the market in the second quarter
of 1999 on the back of ratings upgrade and an
improved economic environment. In the month of April,
Standard & Poor’s raised its outlook for Malaysia’s debt
ratings from negative to stable. Malaysia’s improved
standing was acknowledged with Moody’s also revising
its outlook for Malaysia’s long-term foreign currency
country ceilings from negative to stable. Subsequently,
Fitch IBCA restored Malaysia to investment grade, from
BB to BBB-. Morgan Stanley Capital International (MSCI)
indicated that Malaysia is likely to be readmitted in the
MSCI indices in February 2000.
The success of the issuance of the US$1 billion
sovereign bonds by the Malaysian Government in
May raised hopes of the availability of funds to
20
stimulate the economy. Share prices also rose as a
result of improved liquidity in the banking system,
and on BNM’s decision to reduce the three-month
intervention rate from 7.00 per cent to 6.50 per cent
on 5 April 1999 followed by a further reduction
to 6.00 per cent with effect from 3 May 1999.
The positive regional outlook was also a driving
force that pushed the Index past the 700-level in
May. Volume recorded a high of 1,142 million units
on 19 May 1999.
Investors’ confidence in the prospects of the economy,
spurred by an improvement in economic figures,
further strengthened market sentiment in the following
month of June. The last two weeks of the financial year
saw heavy trading, with volume averaging approximately
727 million units daily. The KLSE CI moved above the
800-point level to close at 811.10 at the end of the
financial year. Retailers took the cue from institutional
buying to enter the market. The SC’s decision to allow
the issuance and listing of new warrants to replace
existing warrants created further retail buying interest,
particularly in warrants and loan stocks. While talk of
an early election helped to lift market sentiment,
investors were also mindful of the direction of interest
rates in the United States.
During the period under review, 17 new companies
were listed, raising RM474 million. Of the 17 new
companies, 3 were listed on the Main Board. As at the
end of the financial year, the total number of
companies listed on the KLSE was 745, with 458
companies listed on the Main Board and the remaining
287 on the Second Board.
A n n u a l
1999
R e p o r t
Issues
In Focus
The roles and responsibilities within KLSE are assigned
as follows:Y2K Steering Committee – The Y2K Steering
Committee is chaired by the Deputy Chairman of KLSE
and is composed of KLSE Committee Members,
directors of subsidiary companies and senior
management of the KLSE Group. The Y2K Steering
Committee provides strategic and tactical guidance
to the Information Technology Task Force (Y2K)
and the Listing Disclosures Management Team.
The Y2K Steering Committee meets regularly to review
the progress and issues in relation to Y2K compliance.
Information
Technology
Task
Force
(Y2K)
–
The Information Technology Task Force (Y2K) was
formed in early 1998 and is headed by the Senior Vice
Year 2000 Compliance
President, Facilities Management Division of KLSE.
Its main objectives are as follows:-
The KLSE Group has undertaken an industry-wide
•
To ensure that all KLSE Group computer systems
effort to address the Year 2000 problem to ensure that
and supporting facilities comply with and are
all critical systems continue to operate reliably before,
tested to be Y2K compliant.
on and after the Year 2000. The aim is to minimise the
impact to the Malaysian capital market during the
roll-over to the new Millennium.
•
To co-ordinate Y2K compliance by:–
Stockbroking companies, which are Member
Companies of KLSE, Clearing Members
of SCANS and Authorised Depository Agents
Roles and Responsibilities
The objective of the KLSE Group’s Year 2000 Project is
(ADAs) of MCD
–
Authorised Direct Members (ADMs) of MCD
to promote awareness of the Year 2000 issue, to
conduct remediation programmes and to provide
The Information Technology Task Force (Y2K) is
appropriate levels of support to stockbroking
accessible as a Year 2000 knowledge and resource
companies to ensure that there are no trading
centre to provide compliance effort support to individual
disruptions when the Year 2000 arrives.
businesses and system areas within the KLSE Group.
21
K u a l a
L u m p u r
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E x c h a n g e
Issues In Focus
Listing Disclosures Management Team – The team has
been assigned to co-ordinate disclosures of all public
listed companies in relation to their efforts in resolving
Y2K related issues. The team is headed by the Senior
Vice President, Listing Operations, Listing Group of KLSE.
Y2K Standards
KLSE Group – Y2K Status
KLSE Group Mission Critical Systems
Mission critical systems are systems that are used
by the KLSE Group to run its core businesses. All
mission critical systems, as listed below, have been
successfully tested and confirmed Y2K ready:•
System on Computerised Order Routing & Execution
(SCORE) – Trading system which provides order
routing and matching of all trades for KLSE.
•
Maklumat Saham (MASA) – KLSE’s real-time price
dissemination system, which broadcasts real-time
market information to stockbroking companies and
information vendors.
•
Broker Front-end Trading System (WinSCORE) –
Front-end trading system that provides risk
management, order entry and trade confirmation
facilities for KLSE stockbroking companies.
•
Fixed Delivery & Settlement System (FDSS) –
Clearing and settlement system that settles all
trades done at KLSE.
Four Y2K End-to-End Industry-Wide Tests have been
completed. All testings involved participation from
various organisations, including:-
•
Central Depository System (CDS) – Electronic scrip
custody and book entry system to keep track of the
movement of shares.
•
•
•
•
•
•
Surveillance Information System (SIS) – On-line
surveillance system for monitoring market activities.
KLSE has adopted the Year 2000 Conformity
Requirement Standards (DISC PD2000-1) as defined by
the British Standards Institution (BSI) as the Y2K
standard for all computer systems.
Y2K Testing
In ensuring Y2K compliance, great emphasis has been
placed on testing, which comprises Unit Tests,
Integration Tests and End-to-End Industry-Wide Tests.
Y2K End-to-End Industry-Wide Tests – The purpose of
these tests is to allow participants to perform integrated
testing of their systems with the KLSE Group’s systems.
22
KLSE Group
Stockbroking companies
Authorised Direct Members (ADMs)
Information vendors
Public listed companies
A n n u a l
R e p o r t
1999
External User Systems
External user systems are systems used by the KLSE
Group that interface with external users or which are
directly accessible by the public. There are 15 systems
which fall under this category, all of which have been
tested and confirmed Y2K ready.
Internal User Systems
All internal user systems actively used by the KLSE
Group are Y2K ready.
Mission Critical IT Infrastructures
KLSE’s network, which includes both the data
Public Listed Companies – Y2K Status
communication hardware and software, have been
Based on the disclosures received up to October 1999,
tested and confirmed Y2K compliant. Likewise all
the state of readiness of Public Listed Companies
KLSE’s data centre infrastructures including security,
is as follows:-
environmental, electrical and fire-fighting systems have
also been tested and confirmed to be Y2K ready.
Although all KLSE’s systems and IT infrastructures have
Public Listed
Companies’ Y2K
Compliance Status
Main Board
Second Board
October 1999
412
89.18%
266
93.66%
in the new Millennium depend highly on the Y2K
November 1999
440
95.24%
277
97.53%
compliance status of the external services on which it
December 1999
462
100%
284
100%
been declared Y2K ready, continuity of KLSE’s services
relies, such as telecommunication carriers and
national power supply providers. Nevertheless, the
necessary steps have been taken to minimise the
Note:- For the 746 public listed companies comprising 462 Main
Board companies and 284 Second Board companies,
full compliance is expected by December 1999.
impact if any of these external services are disrupted
due to Y2K non-compliance. This is addressed in
KLSE’s contingency plans.
Independent Auditor Status Review
KLSE Group has also taken the initiative to appoint an
external independent auditor, PricewaterhouseCoopers,
Stockbroking Companies – Y2K Status
As at October 1999, 61 active stockbroking companies
have confirmed Y2K readiness. Two (2) remaining
stockbroking companies are not compliant and have
been suspended from trading.
to specifically review and ensure that all processes
and activities carried out by the KLSE Group address
the Y2K problem properly and comprehensively.
The independent auditor has completed the review
from early January 1999 to mid February 1999,
through interviews with the KLSE Group staff.
They have also examined statements, inventories,
responses from suppliers to inquiries made by KLSE,
task schedules and resource plans. The scope of
work focused on the mission critical systems and
was also extended to include a general review of
the Year 2000 project.
23
K u a l a
L u m p u r
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E x c h a n g e
Issues In Focus
Similarly, the stockbroking companies have also been
requested to engage independent auditors to review
their status. Copies of the status review reports are
required to be extended to KLSE.
The National Y2K Committee headed by the Ministry
of Energy, Communications and Multimedia has also
conducted a review to verify the Y2K status of the
KLSE Group in June 1999. The National Y2K
Committee has indicated that they are satisfied with
KLSE’s Y2K readiness.
Contingency Plans
Despite comprehensive preparation to ensure Y2K
compliance, the KLSE Group has in place detailed
contingency plans. Similarly, the Exchange has also
made it mandatory for stockbroking companies to
develop contingency plans to ensure minimum
disruption during the roll-over to the new Millennium.
The KLSE Group has also declared 31 December 1999
a non-trading and non-settlement day.
Capital Adequacy Requirements
As part of KLSE’s continuing efforts in enhancing
investor protection and ensuring an orderly and fair
market for securities transactions, the financial year
1998/1999 has seen the emergence of KLSE’s Capital
Adequacy Requirements (CAR). The capital adequacy
regulatory
framework
encourages
stockbroking
companies as market intermediaries to adopt a more
relevant approach to risk management and to assess
the risk of their operations on a daily basis.
The focus of KLSE’s CAR is in ensuring that the liquid
capital of a stockbroking company is at all times
adequate to cover total measured risks. The imposition
of these capital adequacy standards will provide
stockbroking companies with an effective tool to better
manage their risks and will not hamper the reasonable
expansion of stockbroking companies.
The CAR rules were approved by the Securities
Commission (SC) on 31 December 1998. The first
stage of implementation involved the issuance
and dissemination, on 28 May 1999, of the rules to
the stockbroking industry. The second stage of
implementation will be the complete shift to the
CAR regime and replacement of the existing concept
of Minimum Liquid Funds. In its development as a
front-line regulatory organisation, KLSE is committed
to complete the second stage of implementation of
the CAR in the financial year 1999/2000.
24
A n n u a l
One major milestone has been the commissioning of
The applications within the KLSE RMS provide
stockbroking companies with a means to monitor and
calculate on a daily basis the inherent risks of the
business, identified as operational risk, position risk,
counterparty risk, large exposure risk and underwriting
risk, and the required amounts of capital to meet those
risks. The KLSE RMS operates through a pre-defined
interface with the stockbroking company’s back-office
The revamped Listing Requirements have been formulated
and submitted to the Securities Commission (SC) for
approval under Section 9 of the Securities Industry Act
1983. This is the first revamp undertaken by the KLSE
since the introduction of the present rules in 1987.
The objectives of the revamp include the following:•
To strengthen the provisions in areas of concern,
to capture a daily image of the back-office data,
namely, disclosure, financial reporting, continuing
which is then stored for risk computation.
listing obligations and corporate governance;
Compliance with CAR is monitored through the daily
•
To benchmark against rules of developed markets;
•
To rationalise the provisions of the Listing
transmission of the CAR report, which displays the
Requirements with existing laws, in particular the
stockbroking company’s aggregate risks, associated
Securities Industry Act 1983 and the Companies
capital requirements and its liquid capital. Any material
Act 1965;
fluctuations or irreconcilable positions can be further
verified by remote interrogation of the KLSE RMS
•
To codify unwritten rules, procedures and regulations
of the KLSE relating to listed companies; and
application at the reporting stockbroking company.
•
The coming into effect on 1 July 1999 of the KLSE’s
1999
Revamp of Listing Requirements
the KLSE Risk Management System (KLSE RMS) in July
1998 at KLSE and the stockbroking companies.
R e p o r t
To remove all ambiguities and plug loopholes, if any,
in the provisions.
new guidelines on Suspension of Interest and Provision
for Bad and Doubtful Debts has standardised interest
The main aim of the KLSE is to produce a
income recognition and provisioning for bad and
comprehensive and easily comprehensible rule book
doubtful debts across the stockbroking industry.
that adequately governs both the companies listed on
This complements the CAR, in that, the standardisation
the Main Board and the Second Board. In that regard,
of the treatment of bad and doubtful debts will result
the Main Board Listing Requirements and the Second
in the financial reports of the stockbroking companies
Board Listing Requirements have been merged into
being more reflective of their true financial position.
one single rule book. Existing guidelines were also
reviewed and incorporated into the revamped Listing
The CAR is a dynamic tool and is constantly being
Requirements. The KLSE also took into account the
refined and upgraded to keep abreast with changes in
need to provide the rules in a clear, succinct and
the Malaysian capital market and developments in
easily comprehensible manner. Accordingly, in
international exchanges.
addition to emphasis on the substance of the rules,
25
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Issues In Focus
equal emphasis has also been given to the format of
To provide guidance and assist market participants in
the Requirements so as to produce a rule book that
complying with the revamped Listing Requirements,
will facilitate easy understanding and application.
the KLSE will also issue Practice Notes on pertinent
areas. These Practice Notes will provide an explanation
The enhancement of standards of corporate governance
and clarification to the provisions of the revamped
and transparency amongst public listed companies
Listing Requirements to minimise ambiguity in the
underpins some of the proposed new requirements.
interpretation and increase clarity, thus achieving
In this regard, the recommendations of the Finance
consistent application of the same.
Committee on Corporate Governance in relation to the
Listing Requirements made in its report dated February
Prior to the implementation of the revamped Listing
1999 have also been adopted.
Requirements, the KLSE will ensure that sufficient
opportunity is given to the relevant market participants
The revamp exercise was carried out in consultation
to understand and familiarise themselves with the
with the industry. The KLSE also held informal
revamped requirements.
discussions with selected industry participants as well
26
as industry professionals to obtain their view points on
The KLSE is relentless in its efforts to promote the
specific issues arising from the revised provisions of
exchange as a premier market with adequate investor
the Listing Requirements. The extensive consultation
protection rules. It is believed that the implementation of
process is to ensure that any new rule proposed to be
the revamped Listing Requirements will positively
introduced will continue to promote business efficacy
contribute towards efforts in making KLSE a more
and achieve the intended objectives.
attractive market for capital raising and investment.
A n n u a l
Informed Investing
One of the objectives of KLSE is to promote the orderly
conduct and expansion of the stockmarket. Investor
education plays an important role towards this end as
an informed investing public is essential to the growth
and well-being of the capital market. A well-informed
investing public would base its investment decisions
more on fundamentals rather than rumours, perception
or sentiment, and tend to invest for the longer term,
thereby contributing to the stability of the market.
Investor education is also an important tool in the
enhancement of the level of disclosure and
transparency in the Malaysian securities market.
A higher degree of transparency, complemented
by greater professionalism among market participants,
would contribute towards the success of a disclosurebased market.
Recognising the importance of investor education,
various efforts have been and will continue to be
undertaken by the KLSE Group to meet the diverse
information and training needs of existing and
potential market participants.
Among others, the Research Institute of Investment
Analysts Malaysia (RIIAM), the training arm of KLSE,
offers a wide selection of public courses, ranging from
basic to more in-depth subject matters. These include
the Malaysian Securities Industry Introductory Course,
Stockmarket Outlook Seminar and the RIIAM Diploma
in Investment Analysis (a joint-venture effort between
RIIAM and the Royal Melbourne Institute of Technology)
R e p o r t
1999
programmes. Also, in collaboration with the Malaysian
Accounting Standards Board (MASB), briefings/seminar
sessions on the “Technical and Practical Overview of
MASB Standards” have been organised throughout the
country to educate all relevant parties on these
standards which became effective 1 July 1999.
The establishment of Balai Maklumat BSKL (KLSE
Information Centres) in Penang, Johor Bahru and
Kuching, as well as the Public Information Centre
at Exchange Square in Kuala Lumpur, also assist in
promoting informed investing as complete information
is made available to all investors. To date, the facilities
and services offered in these centres have been well
received by the public, especially information on listed
companies, market analysis and trading information of
listed companies. We expect the public response to
increase further with the expansion of training
programmes and courses related to the securities
industry to be held at the centres. The network of
Balai Maklumat BSKL will be expanded to other cities.
Securities industry information is also available
electronically. KLSE’s web-site (www.klse.com.my)
provides comprehensive information on the Exchange
and the Malaysian securities industry. The KLSE
web-site underwent major structural and design
changes in February 1999 to further improve the
27
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Issues In Focus
timely dissemination of information and to provide
visitors with a more user-friendly web-site. Based on a
survey carried out to obtain feedback from site visitors
as well as from research, the restructured web-site
provides a more efficient categorisation of the main
sections/topics. The web-site has also been commended
for having “good hyperlinks and very timely updates”.
In addition to the KLSE web-site, the KLSE-RIIAM
Information System, accessible through the internet
at no cost (www.klse-ris.com.my), provides more
detailed financial data and information through its
three main modules, namely the KLSE-RIS Trader,
KLSE-RIS Pricing Package and KLSE-RIS Securities
Analysis Package.
Another internet-based facility is the KLSE Listing
Information Network (KLSE LINK) which was
introduced on 8 October 1999. Accessible via the
KLSE’s web-site, KLSE LINK provides investors with
timely and easy access to the corporate announcements
and other financial information submitted by the
public listed companies, free of charge. This facility
enhances investors’ ability to make well-considered
investment decisions.
Besides providing the above avenues and facilities
that are accessible to the public, KLSE personnel also
give briefing sessions to various groups of people
such as students, fund managers, government officials
and directors of corporations. The types of briefings
vary depending on the type of visitors and the
objectives of their visits. The usual topics covered are
the workings of the KLSE Group, recent developments
of the KLSE and of the Malaysian securities market.
The KLSE received a total of 4,500 visitors, for the
period under review.
However, we recognise that investor education is
best developed in a proactive manner. Valuable lessons
can be learned from the exchange of ideas and views
between the regulators and market participants.
Thus, dialogue sessions have been organised by
the KLSE with various groups, among others, the
Malaysian Investors Association and the Malaysian
Institute of Directors. These sessions, aimed at fostering
a better and closer relationship with industry
participants, are ongoing. These groups of industry
participants can also act as strategic partners of the
KLSE in the effort to help educate investors.
In addition to these sessions, the KLSE also reaches out
to the public in the market place through the organisation
and/or participation in roadshows or seminars.
For example, KLSE sponsored and participated in
roadshows/seminars organised by the Bumiputera
Remisiers Association (Pribumi) held in various
locations such as Kuala Lumpur, Penang, Johor Bahru
and Kuching. KLSE also jointly organised, with the
Asian Strategy and Leadership Institute, The National
Securities Industry Summit. In addition, KLSE was the
main sponsor of the International Conference on
Malaysia’s Capital Market Investment (ICOMVEST)
1999 jointly organised by Universiti Teknologi
Malaysia Skudai and the Association of Remisiers
Malaysia. A KLSE information booth was also set up
at the ICOMVEST 1999 to promote the KLSE and
the courses offered by RIIAM.
28
A n n u a l
On the international front, briefing sessions were also
held for the officers of Wisma Putra as they play an
important role in the promotion of the Malaysian
securities market abroad. The opportunity was also
taken during overseas visits to brief officials at
Malaysian diplomatic missions and the Malaysian
business community abroad on KLSE measures and
new initiatives. In addition, KLSE also participated
in investment related conferences and business council
meetings overseas.
Last but not least, the various KLSE publications such
R e p o r t
1999
Challenges for the Stockmarket
The new Millennium sees the dawn of new challenges
for stockmarkets. Challenges here stem from a variety
of issues that would have significant impact on the
facade of the global securities industry. The KLSE for its
part must comprehend these changes and challenges
in order to survive and to excel in an increasingly
competitive securities industry environment. Here, we
look at a number of priority issues that loom over
KLSE as its major challenges.
as the Daily Diary, Investors’ Digest, KLSE Statistics
and the Annual Companies Handbook, complement
the above investor education efforts. Additional
publications and enhancement of existing publications,
to be more tailored to the diverse needs of current and
potential market participants, are in the pipeline in
order to further promote the KLSE.
Thus, various efforts have been directed towards
investor education. In line with KLSE’s stance of
obtaining feedback for further improvement, a
Malaysian Securities Industry Survey will be conducted
on existing investors. One of the objectives of the
survey is to gauge investors’ knowledge level of the
Information Technology
Advances in information technology have led to
significant changes in securities markets. A major
impact has seen the lowering of entry barriers towards
establishing new exchanges. This has led to the
widespread emergence of alternative and proprietary
trading systems that are executing trades outside
traditional exchanges between large participants at low
cost and competitive speed. This technology which has
facilitated easier market access by these new electronic
networks or exchanges, now threatens the business
and even the existence of a number of exchanges.
local securities industry in order to improve and
develop the information currently provided by KLSE.
As we embrace disclosure-based regulation, KLSE,
as a front-line regulator, would have to assume a larger
role in instilling greater awareness among investors on
the importance of fundamentals in making their
investment decisions, at the same time strengthening
our capital market.
29
K u a l a
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E x c h a n g e
Issues In Focus
Internet
Economic Liberalisation
The growth of the internet in the commercial sector
Many governments and their securities authorities are
has significantly impacted on the fascia of markets and
undertaking or considering broad-based deregulation
further accelerated developments in the securities
of their securities industries resulting in the reduction
industry. In fact, the impact of the internet can be seen
of regulatory protection granted to national markets
as three-fold, as it has allowed intermediaries and
and participants to enhance competition and efficiency
exchanges to have wider access to investors globally,
of their economies and markets. The aim is to increase
minus the physical barriers that previously existed.
and attract international participation as it is perceived
that these markets are more competitive and efficient.
Firstly, on-line internet brokerages now threaten the
International participation also brings in a larger and
business of conventional brokerages by offering
more diverse investor base, enabling not only transfer
reduced rates for transactions and providing wider
of knowledge and skills but also fast injection of funds
access to investors. Secondly, there is the prospect of
to further develop the economy. However, efforts
disintermediation in the securities industry, as a
towards this end will be undertaken in gradual stages
number of exchanges will be or will consider
and, in consultation with market participants, to ensure
introducing new trading systems allowing investors to
that the industry is ready to face the new set of
trade directly on the bourse instead of going through
challenges posed by economic liberalisation.
brokers. And finally, exchanges also face the
challenging prospect of issuers raising capital directly
from the public without going through the exchange.
Investors’ Markets
The phenomenal growth of investor participation in the
securities markets has led to increased investor
activism in the markets that they participate in,
especially in relation to institutional investors who seek
global diversification and efficient methods of trade
execution. Their search for alternative and cost
effective ways of trading has led to fierce competition
among existing exchanges and has encouraged the
growth of alternative and proprietary trading systems.
The search by investors for better value is also resulting
in increasing disintermediation of brokers in the
trading process and is leading to demands from
investors for:•
Direct access to stock exchanges, and
•
Representation in the governance of the markets.
In summary, the balance of power in the markets
appears to be shifting from intermediaries to investors.
30
A n n u a l
R e p o r t
Cross-Border Trading and Listing
Global Competition
The ability of issuers and investors to migrate from one
Markets have begun to embark on the creation of
market to another basically poses a huge threat to
larger markets through consolidation, mergers or
markets that fail to respond to their needs. In facing
alliances. The outcome of these initiatives could be the
competition offered by more developed and bigger
creation of regional and inter-linked markets offering
exchanges, small and large markets have begun
24-hour access to worldwide participants. This is a
pooling their resources to further promote their
primary example of the impact of globalisation and
markets. For example, merger of exchanges is one
liberalisation in financial markets, boosted by
method to strengthen the resources of exchanges,
technological developments and spurring the creation
indifferent to the size and location of the markets.
of a financial world without boundaries. The removal
Another method is through the establishment of
of physical and legal barriers accentuates the influence
alliances between markets, the objective being to
of the financial sector on the policies of nations.
1999
widen the investor base and investor participation,
which indirectly attracts intermediaries and issuers.
Regional Competition
Conclusion
The challenges faced by KLSE in the next Millennium
are basically all about competition, especially
Asia-Pacific exchanges have notably embarked on
competition between KLSE and other market institutions.
a number of initiatives to raise their competitiveness
The ability of KLSE to handle all these challenges
not only in terms of operations, but also in attracting
efficiently would certainly reflect on the competitiveness
market participants to their exchanges. Methods
and attractiveness of KLSE as an internationally
used include reduction of operating costs, widening
recognised market for the mobilisation of capital.
access, ensuring operational efficiency, and utilising
current technology.
KLSE will continue to monitor the challenges
facing the securities industry and will engage all
participants in formulating a plan of action to ensure
its continued development.
31
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Committee
Members
Left to right:
Tan Kim Leong, JP
Executive Chairman
Mohaiyani Shamsudin
Chan Guan Seng
Deputy Chairman
Benny Ng Wu Hong
Koh Kee Tee
KOH KEE TEE
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.
CHAN GUAN SENG
Deputy Chairman
•
•
•
•
•
•
•
32
Bachelor of Commerce (Hons.)
(University of Melbourne, Australia);
Member of Australian Society of Accountants;
Member of Institute of Chartered Accountants,
Australia;
Admitted to Membership of the Exchange: 7.3.1984;
Appointed Corporate Nominee: 1.6.1991;
Elected to the Committee: 13.12.1986 – 18.12.1988;
6.12.1989 – 18.12.1994;
Elected to the Committee and as Deputy Chairman:
5.12.1996 – present.*
•
•
•
Appointed as Corporate Nominee: 5.10.1995;
19.12.1987 – 19.12.1992; 18.12.1994 – 18.12.1996;
26.11.1997 – present.*
BENNY NG WU HONG
•
•
•
Bachelor of Commerce (Deakin University, Australia);
1.1.1999 – present.*
MOHAIYANI SHAMSUDIN
•
•
•
•
Master of Business Administration (Finance)
(Cornell University, New York);
Bachelor of Arts (Economics) (Knox College, Illinois);
Elected to the Committee: 28.11.1998 – present.*
A n n u a l
R e p o r t
DATO’ HWANG SING LUE
DATO’ RANITA MOHD HUSSEIN
•
•
•
•
•
•
•
Director of Malaysian Exchange of Securities
Dealing & Automated Quotation Bhd (MESDAQ);
14.12.1991 – 26.11.1997; 28.11.1998 – present.*
•
Bachelor of Laws (Hons.) (University of Singapore);
Advocate & Solicitor, Malaysia and Brunei;
Member, Panel of Arbitrators, The Kuala Lumpur
Options and Financial Futures Exchange Bhd;
18.12.1996 – present.
TAN KIM LEONG
ABDUL KADIR HAJI MD KASSIM
•
•
•
•
•
Bachelor of Laws (Hons.) (University of Singapore);
1.3.1998 – present.
*
Redesignated as Dealing Members of the Exchange
effective 1 July 1999 under the Exchange’s new Rules.
•
•
Member of Malaysian Institute of Accountants;
Fellow of Institute of Chartered Accountants, Australia;
Member of Malaysian Association of Certified
Public Accountants;
Fellow of Malaysian Association of the Institute of
Chartered Secretaries & Administrators;
18.12.1996 – present.
1999
33
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Management
Te a m
Left to right:
Md Nor Ahmad
Deputy President
President
Deputy President
Left to right:
Izlan Izhab
Executive Vice President, Corporate & Legal Affairs
Ku Abdul Rahman Ku Sulaiman
Senior Vice President, Market Infrastructure
Devanesan Evanson
Senior Vice President, Compliance & Inspection,
Market Supervision Group
Left to right:
Tan Chun Weng
Senior Vice President, Financial Review
& Surveillance, Listing Group
Lew Lup Seong
Senior Vice President, Finance & Administration
Latifah Hj Mohd Yusof
Senior Vice President, Listing Operations, Listing Group
34
A n n u a l
R e p o r t
1999
Left to right:
Abdul Razak Mohd Amin
Senior Vice President, Group Human Resource
Qua Gek Kim
Senior Vice President, Public Information
Abdul Hamid Sh Mohamed
Senior Vice President, Policy & Development
Left to right:
Wong Kay Yong
Vice President, Surveillance & Investigation,
Market Supervision Group
Chuah Mei Lin
Legal Advisor, Market Supervision Group
Alice Thomas
Senior Manager, Group Communications
Left to right:
Selvarany Rasiah
Legal Advisor, Listing Group
Ch'ng Boon Huat
Vice President, Financial Review & Surveillance,
Listing Group
35
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Left to right:
Tai Yoke Peng
Vice President, Organisation & Methods,
Market Infrastructure
John Duggan
Group Advisor, Derivatives Markets
Yew Kim Keong
Senior Vice President, Facilities Management
Left to right:
Mohamad Azam Ali
Senior Manager, Public Affairs,
Executive Chairman’s Office
Johan Abdullah
Vice President, Listing Operations,
Listing Group
Chee Yaw Soon
Senior Manager, Trading Services,
Listing Group
Left to right:
Shukoriah Mohd Noor
Senior Manager, Public Information
Winnie Choong
Senior Manager, Public Information
Zulkifli Harun
Senior Vice President,
Information Services / Information Technology
36
A n n u a l
R e p o r t
1999
Left to right:
Senior Manager, Secretarial Affairs, Corporate & Legal Affairs
Low Pheng
Senior Manager, Group Internal Audit
Left to right:
Haji Hayata Elias
Manager, Security
Ayub Mohamed
Senior Manager, Corporate & Legal Affairs
Lee Choy
Senior Manager, Administration
37
&
Subsidiary
Related
Companies
A n n u a l
R e p o r t
1999
KLSE
Group Of Companies
Securities Clearing
Automated Network
Services Sdn Bhd (SCANS)
KLSE-Bernama
Real-Time Information
Services Sdn Bhd (KULBER)
Malaysian Share
Registration Services
Sdn Bhd (MSRS)
Malaysian Central
Depository Sdn Bhd (MCD)
MCD Nominees Sdn Bhd
The Kuala Lumpur Options
& Financial Futures
Exchange Bhd (KLOFFE)
Kuala Lumpur
Stock Exchange (KLSE)
Research Institute
of Investment
Analysts Malaysia (RIIAM)
Yayasan BSKL
39
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Group Directors
And
Governors
Left to right:
Chan Guan Seng
(KLSE/SCANS/MCD/RIIAM)
(KLSE/SCANS/MCD/KULBER/MSRS/KLOFFE/RIIAM)
(KLSE/SCANS/KLOFFE/RIIAM)
Benny Ng Wu Hong
(KLSE/SCANS/RIIAM)
Left to right:
(KLSE/SCANS)
Datuk Amirsham A Aziz
(MCD)
Koh Kee Tee
(KLSE/SCANS)
Tan Kim Leong
(KLSE/SCANS/MCD/RIIAM)
Left to right:
Ramli Ibrahim
(KLOFFE)
Dato’ Seri Syed Zainol Anwar Jamalullail
bin Tuanku Syed Putra Jamalullail
(MCD)
(SCANS/KULBER/KLOFFE/RIIAM)
(SCANS/MSRS)
40
A n n u a l
R e p o r t
1999
Left to right:
Tan Sri Zulkifli Mahmood
(MSRS)
Mohd Ridzal Mohd Sheriff
(KLOFFE)
Omar Merican
(KLOFFE)
Mohamad Shuib Abdul Ghani
(MSRS)
Left to right:
Prof Datuk Abu Bakar Abdul Hamid
(KULBER)
Datuk Teh Ghee Kok
(KULBER)
Prof Tan Sri Dato’ Dr Syed
Jalaluddin Syed Salim
(RIIAM)
Shahzalan Adam
(KULBER)
Left to right:
Syed Jamil Syed Jaafar
(KULBER)
Mohamad Ariff Md Yusof
(KLOFFE)
Mohaiyani Shamsudin
(KLSE/SCANS)
(KLSE/SCANS /KLOFFE)
Not in picture:
SA Vanar
(KLOFFE)
41
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Securities Clearing Automated
Network Services Sdn Bhd
SCANS
Left to right:
Azman Shah Md Yaman
Legal Advisor, Corporate Affairs,
Legal & Compliance
Lim Boon Hang
Senior Manager, Risk Management,
Compliance & Surveillance
Lim Lean Beng
Senior Manager, Clearing
General Manager
Fathi Ridzuan Ahmad Fauzi
Assistant General Manager,
Finance & Administration
For the financial year ending June 1999, SCANS
industry through the development of centralised,
has achieved a net profit before tax and before
standardised, post-trade automated processing
extraordinary items of RM84 million.
solutions that will increase efficiency, minimise
settlement risk and reduce settlement costs.
Activities/projects undertaken by SCANS for the year
under review include:
The review includes:-
•
– review and recommendations on the corporate
Review of the Operations of SCANS as Malaysia’s
National Clearing House
An on-going review of the operations of SCANS as
Malaysia’s national clearing house was undertaken.
The review was undertaken to enhance SCANS’
role in the securities industry as the central
clearing house, and thus, to realise its vision of
ensuring the soundness of the Malaysian securities
42
structure and governance of SCANS
– proposal for appropriate model for guaranteeing
of trade settlement
– review and recommendations on operational
procedures and rules of SCANS
– proposal on risk management procedures
A n n u a l
R e p o r t
1999
– review and recommendations on insolvency
laws that impact on the settlement operations
of SCANS
– proposal for the establishment of clearing
guarantee fund
– review and recommendations on interface
procedures with the central depository and
stock exchanges, and
– proposal for appropriate model for automated
securities lending facilities
In order to realise the enhanced DVP environment for
A concept paper for the overall review has been
the institutional investors, SCANS opened its
completed and adopted.
clearing
membership
to
eligible
financial
institutions to be Non-Trading Clearing Members
•
(NTCMs) of SCANS. This will enable the NTCMs to
Institutional Settlement Service (ISS)
directly report, clear and settle securities
ISS is a service offered by SCANS to institutional
transactions through SCANS, on behalf of their
investors, aimed at achieving an enhanced
institutional investors.
Delivery Versus Payment (DVP) environment that is
consistent with practices of other jurisdictions.
Amendments to SCANS’ Rules were effected to
allow the clearing membership to be extended to
The main objectives of ISS are to reduce the
NTCMs and ancillary provisions were introduced
settlement risk of institutional investors and to
to cater for the ISS.
enable SCANS to make payment directly to the
institutional investors’ settlement agents upon
This project was successfully launched on
delivery of securities on the settlement date.
15 July 1999.
•
Direct Business Transactions (DBT)
In line with the amendments made to the KLSE’s
Rules on DBT, SCANS had consequentially made
several amendments to its Rules to give effect to the
clearing and settlement of DBT. The amendments
came into effect on 1 September 1998.
43
K u a l a
L u m p u r
S t o c k
E x c h a n g e
KLSE-Bernama Real-Time
Information Services Sdn Bhd
KULBER
For the financial year ended June 1999, KULBER has achieved
a net profit before tax and before extraordinary items of
RM3.28 million, as compared to RM4.12 million achieved during
the previous financial year showing a decrease in profits of
RM0.84 million or 20.4%.
KULBER is currently pursuing a new business strategic
plan to steer the company in providing better and enhanced
financial and investment information services to the investors,
locally and abroad.
Malaysian Share Registration
Services Sdn Bhd
MSRS
For the year under review, MSRS participated in
various activities, which amongst others included
attending to clients’ and shareholders’ queries, assisting
clients in their restructuring exercises and also
extending assistance to relevant regulatory authorities.
MSRS also provided specific services as Special
Registrar for mandatory take-over offers of companies.
As at 30 June 1999, there are 81 listed and non-listed
companies which have appointed MSRS as their
share registrar.
Abdul Nasir Ahmad Daud
General Manager
44
A n n u a l
R e p o r t
1999
Malaysian Central
Depository Sdn Bhd
MCD
Left to right:
Ahmad Aznan Haji Nawawi
Legal Advisor, Corporate Affairs,
Legal & Compliance
General Manager
Nadzirah Abdul Rashid
Manager, Finance & Administration
Haji Zainuddin Alang Mamat
Assistant General Manager, Depository
Ang Ting Kang
Senior Manager, Information Technology
Amendments to the Securities Industry (Central
Depositories) Act 1991 (SICDA) and to the Rules of
MCD were made during the financial year of July
1998 to June 1999 with the objective of promoting
transparency in trading and ownership of securities in
the stock exchange, to attain full immobilisation of
securities within the Central Depository System (CDS)
and maintain KLSE as the premier market for trading in
Malaysian securities.
Transparency in Securities Trading and Ownership
1.
Beneficial owner/Authorised nominee – All
securities accounts must be opened in the name
of either the beneficial owner of the securities or
an authorised nominee, and dealings in deposited
securities can only be effected by these parties.
The categories of persons recognised to act as
authorised nominees are defined in the Rules of MCD.
45
K u a l a
2.
L u m p u r
S t o c k
E x c h a n g e
One account one beneficial owner – An authorised
nominee shall hold deposited securities for one
beneficial owner in respect of each securities
account and the full name of the beneficial owner
must be furnished to MCD, unless exempted
by order of the Minister of Finance (MOF).
Immobilisation of Securities
1.
Mandatory deposits – All prescribed securities
were required to be deposited with MCD on or
Year In Review
before 1 December 1998, failing which the
During the period under review, the accumulated
securities would be transferred to the MOF.
shares in the system increased from 122.4 billion
A person whose securities had been transferred to
shares to 157.6 billion whilst the number of companies
the MOF could appeal to the Securities
that prescribed their securities to be deposited into the
Commission (SC) by 1 June 1999, failing which
CDS has increased from 734 to 746.
the MOF can dispose the securities
and deal
with the proceeds of the disposal as if they were
The mandatory deposit requirement resulted in the
moneys paid to him pursuant to the law relating
deposit of 26 billion additional shares before its
to unclaimed moneys. In the case of securities
deadline on 1 December 1998.
prescribed into the CDS after 1 November 1998,
the securities must be deposited into the CDS
As at 30 June 1999, the percentage of securities
within the prescribed period.
immobilised into the CDS stood at 98.52 per cent whilst
the total number of shares withdrawn by the depositors
Certain classes of securities are exempted from
up to termination of the withdrawal facility on
mandatory deposit.
1 September 1998 was 222.0 million or 0.18 per cent
of the total number of shares in the system.
2.
Prohibition on withdrawals – Depositors shall not
withdraw securities which have been deposited
In the year in review, the CDS settled a total number
with MCD except when it is to facilitate share
of 65.2 billion shares traded on the KLSE and
buy back, conversion of debt securities, company
facilitated more than 1.1 million CDS ordinary
restructuring process, for rectification of error and
transfers involving 99.8 billion shares.
in any other circumstances determined by MCD.
The number of CDS accounts opened during the year
KLSE as the Premier Market
was 521,421 bringing the total number of CDS
To achieve this objective and further to the amendments
accounts opened as at 30 June 1999 to 2,447,866.
to the SICDA, the rules were also amended to the effect
46
that ordinary transfers are allowed only if the reason for
During this period, MCD appointed two new
the transfer is an approved reason and further effective
stockbroking companies as its Authorised Depository
from 8 September 1998, the express transfer facility has
Agents (ADAs) bringing the total number of ADAs to 66,
been suspended for an indefinite period of time.
in addition to the 48 Authorised Direct Members (ADMs).
A n n u a l
R e p o r t
1999
MCD CALL-DIRECT
IN
ITS EFFORTS TO PROVIDE A MORE USER-
FRIENDLY SERVICE ,
MCD
LAUNCHED AN
INTERACTIVE VOICE RESPONSE SYSTEM CALLED
MCD CALL-DIRECT
ON
MCD CALL-DIRECT
22 OCTOBER 1999.
ENABLES THE
D EPOSITORY S YSTEM (CDS)
CENTRAL
ACCOUNT
HOLDERS AMONGST OTHERS, TO OBTAIN THE
BALANCES OF THEIR
MCD was appointed as the Central Depository for the
Malaysian Exchange of Securities Dealing and
Automated Quotation (MESDAQ) on 6 October 1997.
TELEPHONE.
CDS
ACCOUNT
ACCOUNTS VIA THE
HOLDERS CAN ALSO
REQUEST FOR A FAXED COPY OF THEIR
The first MESDAQ listed counter was prescribed into
STATEMENT OF ACCOUNT IF THE CALL IS
the CDS on 22 March 1999.
PLACED THROUGH A PHONE/FAX MACHINE.
Currently, MCD provides services to 69 share
registrars who represent 746 public listed companies
in the CDS. During the period in review, a total of
13,120 Record of Depositors (ROD) detailing investor
IN
ADDITION, GENERAL INFORMATION ON
OTHER SERVICES OFFERED BY
AVAILABLE TO
holdings in prescribed companies were produced
upon issuers’ request.
THIS
MCD
MCD CALL-DIRECT
IS ALSO
USERS .
FACILITY IS THUS, NOT ONLY FOR
CDS
ACCOUNT HOLDERS BUT ALSO FOR THE
Between June 1998 and August 1998, MCD together
with the rest of the KLSE Group completed two
Y2K Integration Tests. In October 1998 and April 1999,
the CDS also passed the first and second Y2K
End-to-End Industry Wide Tests. All the ADAs and
GENERAL PUBLIC.
LINKED TO
INVESTORS
WILL ALSO BE
MCD’S HELPDESK
SHOULD THERE
BE ANY ENQUIRIES ON
MCD CALL-DIRECT.
ADMs participated in this exercise.
47
K u a l a
L u m p u r
S t o c k
E x c h a n g e
The Kuala Lumpur Options &
Financial Futures Exchange Bhd
KLOFFE
Left to right:
S Loganathan
General Manager
Mohd Shah Shariff
Senior Manager, Information Technology
Janita Cheah
Senior Manager, Business Development
Linda Song
Company Secretary/Manager, Legal
The Kuala Lumpur Options and Financial Futures
Additionally, the Futures Industry Act 1993 was
Exchange Bhd (KLOFFE) had a challenging year both
amended in October 1998 to allow the participation of
in 1998 and 1999, seeing many new developments
asset managers and unit trusts in the futures industry.
and changes in the industry.
In tandem, the Securities Commission (SC) also issued
guidelines for the licensing of futures fund managers
One of the more significant events was the signing
and futures fund managers’ representatives. This paves
of the Sale and Purchase Agreement in July 1998
the way for asset managers to obtain futures fund
between KLSE and the shareholders of KLOFFE Capital
managers’ licences and trade in futures contracts.
Sdn Bhd (the holding company of KLOFFE), namely
In addition to this, unit trust companies subject to the
Renong Bhd, HLG Capital Bhd, New Straits Times
SC’s Guidelines on Unit Trust Funds will be exempted
Press (M) Bhd and Rashid Hussain Bhd. The take-over
from licensing requirements under the Act, and can
was finalised in December 1998 when KLSE
now trade in futures contracts. This is a development
completed the acquisition of KLOFFE Capital. KLSE
that is expected to increase participation in KLOFFE
and KLOFFE are currently working together in
and enhance volume levels.
identifying areas where both parties would be able to
maximise the benefits from the acquisition.
48
A n n u a l
Prior to May 1999, KLOFFE provided front-end clearing
functions while the Malaysian Derivatives Clearing
House (MDCH) performed the back-end clearing
functions for KLOFFE traded products. It was later
decided, at industry level, that MDCH should provide
both front and back end clearing functions for KLOFFE.
Hence, in early 1999, KLOFFE focused on the
completion and implementation of the new derivatives
industry solution and at the same time, addressed its
Y2K readiness. The following summarises the steps taken
by the various industry partners in achieving this goal.
new millennium. This is because the industry trades
future contracts and Y2K application related issues
arise with the introduction of Y2K expiring
contracts. KLOFFE and MDCH have all thoroughly
tested their internal solutions, inclusive of their
applications, hardware and operating systems.
Subsequent to the joint integration testing exercises
and prior to the launch of the various systems, the
industry had the opportunity to utilise the solution
in a production mirrored environment. This
afforded the members an opportunity to test their
internal systems against the new Y2K ready
industry solution in a meaningful and realistic
manner. It should be noted that most of the
systems solutions utilised by KLOFFE members are
provided and monitored by KLOFFE and its
clearing house. This will minimise the risks of
member Y2K system failures having an adverse
impact on the industry.
d) Roll-out
On 10 May 1999, KLOFFE implemented its Y2K
ready solution as part of the roll-out of the
Malaysian derivatives Y2K industry solution.
e) Contingency Planning
KLOFFE is in the process of finalising its own
internal Y2K contingency plans and is an active
member of the Malaysian Capital Markets
Contingency Planning Y2K Steering Committee.
The aim of this Steering Committee is to ensure
b) Joint Integration Testing
Other than undertaking their own internal testing
exercises, KLOFFE and its members worked
together to undertake testing at industry level,
addressing the relevant 1999 and 2000 dates. The
joint integration testing exercises proved the Y2K
readiness of the industry solution in terms of
systems and operational procedures.
1999
c) End to End Testing
a) Renovation/Replacement/Internal Testing
In order to address Y2K issues and extend the level
of services provided to the industry, KLOFFE
undertook renovation exercises, whereas MDCH
implemented a new clearing system. The Malaysian
derivatives industry is fortunate in some ways, in
that its Y2K application related issues will be
encountered well in advance of the roll-over to the
R e p o r t
that Y2K contingency planning is addressed at
industry level.
f)
Change Freeze
As a Y2K precautionary measure, the industry has
collectively decided to implement a change freeze
during the last quarter of 1999.
49
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Future Plans
Promotion
Future plans include the launch of options on the KLSE
On the marketing and promotion front, the focus for
Composite Index (which will position KLOFFE as the
1999 has been to promote KLOFFE more aggressively
first exchange to trade options contracts in Malaysia)
in view of the current regional competition faced and
and individual stock options, to provide investors with
to place KLOFFE as a creditable futures and options
a wider range of equity derivative instruments to hedge
exchange in the region. KLOFFE will continue its
their underlying portfolio. In terms of new product
annual participation in the European Derivatives
research, KLOFFE is looking into the possibility of
Exhibition organised by Futures & Options World
introducing a KLSE-based sectoral index derivative in
(UK). This year KLOFFE participated as part of a
the future.
delegation with the Commodity and Monetary
Exchange of Malaysia (COMMEX) and MDCH. The
purpose of participating in these exhibitions is to
Education
To further build a strong presence in both the local
and international market, KLOFFE lined up a number
of projects to help increase its trading volume and
market awareness in 1998/1999. Amongst them are
ongoing educational symposiums and roadshows in
collaboration with KLOFFE’s trading members which
are targeted at the investing public. More emphasis
will be placed on conducting presentations for fund
managers, remisiers and members of other professions
in the financial industry. These presentations will be
divided into different levels, from the basics of trading
to other topics of interest.
50
market and promote KLOFFE, its product(s) and the
benefits to the investing public. Such exhibitions also
enable us to update ourselves on the latest
developments in the futures and options industry by
meeting the various representatives of international
derivatives exchanges and by attending the special
presentations by other exchanges.
A n n u a l
R e p o r t
1999
Research Institute of
Investment Analysts Malaysia
RIIAM
Haji Wan Fauzi Wan Mahmood
1998/99 was a very significant year for RIIAM.
Director
The planned activities revolved around training
programmes tailored for the investors, market
participants and the KLSE Group.
RIIAM organised some 154 training sessions/
programmes, encompassing customised in-house and
public programmes for KLSE Group staff, as well as
training programmes comprising technical and
other programmes for various target audiences in the
soft skills were conducted for KLSE Group. RIIAM
industry. This works out to an average of about
developed it own modules for Staff Development and
13 sessions per month.
Management Development Programmes and a total of
1,823 participants attended these programmes.
Working Together
The various recent regulatory changes and the current
Growth of KLSE-RIS
economic crisis also caused a significant shift in the
The KLSE-RIS web-site (www.klse-ris.com.my) gained
focus of RIIAM’s programmes. We started some
tremendous popularity in 1999. Its enhancement
specially designed programmes to address some of the
project was completed during the first quarter of the
current issues such as risk management, corporate
year whereby its capacity was expanded from a
governance, Y2K and regulatory updates. In running
monthly maximum of 4 million hits to 10 million hits.
such programmes, we solicited the co-operation of
The system recorded a monthly average of more than
some relevant professional organisations, such as the
7 million hits and had almost 30,000 users from
Malaysian Association of Certified Public Accountants
almost 80 countries.
(MACPA), the Institute of Internal Auditors Malaysia
(IIAM) as well as local universities.
International Linkages
Widening Reach
On the international front, in 1999, RIIAM continued
to play an active role as a member society of the
The RIIAM Diploma in Investment Analysis programme
Asian
has come into its sixth year in 1999. A total of seven
representing Malaysia. RIIAM is proud to have been
classes, three in KL and two each in Penang and
given the trust and honour to host the 1999 ASAF
Kuching were conducted. In addition to existing
Annual Conference which was held from 10-12
strength, more local lecturers were recruited to cater to
October 1999. The Conference “Planning for Economic
the needs of the classes.
Securities
Analysts
Federation
(ASAF),
Recovery: Platform for a Better Future”, was well
attended by international and local participants.
With the restructuring of the KLSE Group in June 1998,
RIIAM was entrusted with the responsibility of taking
RIIAM will continue to pursue its objectives of
over as the training arm of the KLSE Group; RIIAM was
providing choice investor education programmes whilst
also required to function as a financially separate
attending to the training needs of the industry and
entity. During the period, 85 sessions of in-house
KLSE Group.
51
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Calendar
28 November 1998
Of Events
23 February 1999
4 January 1999
The KLSE announced several amendments to the Listing
Requirements relating to take-overs and mergers that
would promote enhanced disclosure by public listed
companies. The amendments were consequential to the
prescription of the new Malaysian Code on Takeovers
and Mergers 1998, which superceded and repealed
the previous Code of Take-overs and Mergers 1987.
KLSE Group Hari Raya & Chinese New Year Lunch
The KLSE celebrated the Hari Raya and Chinese New
Year festivities on 4 February 1999 at the Annex,
Exchange Square. More than 800 KLSE Group staff
attended the event where the opportunity was also
taken by Yayasan BSKL to make financial contributions
to 55 charitable organisations.
Standard Remisiers’ Agreement
22nd KLSE Annual General Meeting
The 22nd KLSE Annual General Meeting held on
28 November 1998, had close to 100 attendees
comprising KLSE Committee Members, representatives
of stockbroking companies and KLSE Group Senior
Management.
ANNA Extraordinary General Meeting
The KLSE hosted the Association of National
Numbering Agencies (ANNA) Extraordinary General
Meeting from 30 November – 1 December 1998.
ANNA is the umbrella body for agencies responsible
for issuing International Securities Identification
Numbers (ISINs) for their respective countries.
16 countries were represented at this meeting.
9 February 1999
26 – 28 October 1998
28 November 1998
30 November –
1 December 1998
KLSE sponsored the 10th Annual PACAP/FMA Finance
Conference held from 26 – 28 October 1998 in
Kuala Lumpur. Organised by the Pacific Basin Capital
Markets (PACAP) Research Centre and the Financial
Management Association International (FMA), the
Conference brought together almost 200 delegates
from over 20 countries. PACAP also organised
a joint session with the FIBV delegates to discuss
issues and challenges experienced recently by
Asia-Pacific financial markets.
Amendments to Listing Requirements
4 February 1999
The KLSE successfully hosted the 38th FIBV General
Assembly and Annual Meeting in Kuala Lumpur
from 25 – 27 October 1998, with over 125 delegates
from 40 countries participating in the assembly.
KLSE has been a member of FIBV (abbreviated
from the French – Federation Internationale des
Bourses de Valeurs) since 1975.
PACAP/FMA Finance Conference
52
25 – 27 October 1998
FIBV General Assembly
23 – 24 February 1999
25 – 27 October 1998
4 February 1999
The KLSE approved a standard remisiers’ agreement
which would apply to all stockbroking companies and
their remisiers. Amongst the significant areas covered
by the agreement are the duties and obligations
of remisiers, remisiers’ security deposits as well as the
rights and duties of the stockbroking companies.
The agreement took effect on 9 February 1999.
Visits to the Exchange
The KLSE received two prominent visits from
YB Dato’ Nazri Abdul Aziz, Deputy Minister of Finance
II and the Hon. John Moore, Australian Minister of
Defence on 23 and 24 February 1999, respectively.
Detailed briefings on the current and future
developments of KLSE were conducted for both visits.
10th Annual KLSE-FPLC Golf Tournament & Lunch
The 10th Annual KLSE-FPLC Golf Tournament
& Lunch which was held on 20 March 1999 marked
a farewell to DYMM Seri Paduka Baginda Yang
di-Pertuan Agong Tuanku Jaafar ibni Almarhum Tuanku
Abdul Rahman whose term as the Agong ended
in April 1999.
End May 1999
The KLSE announced requirements on quarterly
reporting of financial statements by public listed
companies, to enhance corporate disclosure.
To enhance corporate governance, KLSE also
announced restrictions on the number of directorships.
1999
KLSE became an affiliate member of the International
Organisation of Securities Commissions (IOSCO) in
May 1999. The membership will serve as another
platform for KLSE to learn from other members, and
also present its views and opinions in various areas of
securities regulation.
Contribution to JE Trust Fund
The KLSE, stockbroking companies and public listed
companies jointly contributed RM1 million to the
Japanese Encephalitis (JE) Trust Fund at a ceremony held
on 6 July 1999. The Trust Fund is a special fund to provide
assistance to the victims and to sponsor the activities
involved in containing the outbreak of the disease.
Institutional Settlement Service
KLSE launches Syariah Index
The KLSE launched a new index called the KLSE
Syariah Index, to expand participation in the
stockmarket from local and foreign investors who
are keen to invest in securities approved by the Islamic
principles of Syariah.
R e p o r t
Affiliate membership of IOSCO
6 July 1999
KLSE strengthens corporate accountability of public
listed companies
15 July 1999
17 April 1999
20 March 1999
11 March 1999
A n n u a l
The Institutional Settlement Service (ISS) was launched
on 15 July 1999 to facilitate the settlement of trades of
institutional investors directly with the clearing house.
Offered by SCANS, the ISS will enhance the current
Delivery versus Payment (DVP) environment by
extending clearing membership to include resident
custodian banks and institutional investors.
The Executive Chairman led a group of senior
management team members to PROTON Bhd on
23 April 1999 for the first familiarisation visit for 1999.
Subsequently, similar visits to Star Publications Berhad
(30 July 1999) and Artwright Holdings Berhad
(3 September 1999) were organised.
Opening of Balai Maklumat BSKL
26 July 1999
23 April 1999
Familiarisation visits to public listed companies
6 July 1999
8 October 1999
The KLSE began another series of industry dialogue
sessions with previous and new industry dialogue
partners. These sessions provide KLSE with the
opportunity to participate in an open forum which
allows for the interchange of ideas and thoughts on
issues relating to all parties concerned.
22 October 1999
23 April 1999
Commencement of industry dialogues
In line with KLSE’s objectives to enhance investor
education, the Exchange opened its third Balai
Maklumat BSKL, in Johor Bahru on 26 July 1999
which was officiated by YAB Dato’ Haji Abdul Ghani
bin Othman, the Menteri Besar of Johor. Subsequently,
the fourth Balai Maklumat BSKL, in Kuching was
officially opened on 26 October 1999 by the
Chief Minister of Sarawak, YAB Datuk Patinggi Tan Sri
Dr Haji Abdul Taib Mahmud.
KLSE Listing Information Network (KLSE LINK)
On 8 October 1999, the KLSE launched the KLSE LINK
to the public. An internet-based facility, the KLSE LINK
enhances corporate disclosure for investors.
MCD Call-Direct
MCD Call-Direct was launched on 22 October 1999 to
assist CDS account holders to obtain their CDS account
balances via the telephone. General information
on other services offered by MCD is also available.
23 April 1999
20 March 1999
22 October 1999
26 July 1999
Financial
Statements
Report Of The Committee
55
Statement By The Committee
60
Statutory Declaration
60
Auditors’ Report
61
Balance Sheets
62
Income And Expenditure Accounts
63
Consolidated Cash Flow Statement
64
Notes To The Accounts
67
A n n u a l
R e p o r t
1999
Report
Of The Committee
The Committee hereby submit their report together with the audited accounts of the Exchange and of the Group for
the financial year ended 30 June, 1999.
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 accounts.
There were no significant changes in these activities during the financial year, except for the addition of the options
and financial futures exchange activities as disclosed in the significant events note below.
Results
Excess of income over expenditure after taxation
Minority interests
Excess of income over expenditure after taxation and minority interests
Transfer to Compensation Fund
Group
Exchange
RM
RM
192,562,788
177,308,879
(3,511,981)
—
189,050,807
177,308,879
(212,146,440)
(206,000,000)
Accumulated funds brought forward
1,085,891,383
654,399,355
Accumulated funds carried forward
1,062,795,750
625,708,234
Reserves and Provisions
There were no material transfers to or from reserves or provisions during the financial year other than the transfers
made to the Compensation Funds of Malaysian Central Depository Sdn. Bhd. and the Kuala Lumpur Stock Exchange
as disclosed in Notes 18 and 23 to the accounts respectively.
Membership Fees
As at 30 June, 1999
(i)
membership fees received from past and present members at RM10,000 each amounted to RM2,950,000 (1998:
RM2,920,000); and
55
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Membership Fees (cont’d)
(ii)
a total contribution of RM91,000,000 (1998: RM80,000,000) was received from members as follows:
No of Members
Brought
forward
Additions
3
Total Contributions
Carried
Contribution
Brought
forward
per Member
forward
Additions
forward
Carried
RM’000
RM’000
RM’000
RM’000
5,000
15,000
10,000
25,000
2
5
50
1
51
1,000
50,000
1,000
51,000
5
—
5
3,000
15,000
—
15,000
58
3
61
80,000
11,000
91,000
Bad and Doubtful Debts
Before the income and expenditure accounts 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 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 amount written
off for bad debts or the amount of provision for doubtful debts in the accounts of the Exchange and of the Group
inadequate to any substantial extent.
Current Assets
Before the income and expenditure accounts 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 their
values as shown in the accounting records of the Exchange and of 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 accounts of the Exchange and of the Group misleading.
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 of the Group misleading
or inappropriate.
56
A n n u a l
R e p o r t
1999
Contingent and Other Liabilities
At the date of this report, there does not exist:
(a)
any charge on the assets of the Exchange or of 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 of 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 of 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 accounts of the Exchange or of the Group which would render any amount stated in the accounts misleading.
Items of an Unusual Nature
The results of the operations of the Exchange and of 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 of the Group for the financial year in which this report is made.
Significant Events
(i)
On 22 July, 1998, the Exchange entered into a Sales and Purchase Agreement for the acquisition of 19,998,002
ordinary shares of RM1 each in KLOFFE Capital Sdn. Bhd. (representing a 100% equity interest) for a cash
consideration of RM35,000,000. The said acquisition was completed on 31 December, 1998 at a revised cash
consideration of RM27,000,000.
(ii)
On 2 December, 1996, Securities Clearing Automated Network Services Sdn. Bhd. (“SCANS”), a wholly owned
subsidiary, entered into an agreement with Virtual Commerce Holdings Sdn. Bhd. to dispose off its entire
interest in its subsidiary, KLSE Chilong Systems Sdn. Bhd. for a cash consideration of RM2,978,946. The said
disposal was completed upon obtaining the approval of the Securities Commission on 11 January, 1999.
57
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Group Rationalisation
During the year, the Group embarked onto a rationalisation exercise to streamline the Group’s activities and
structure. Pursuant to this exercise, subsequent to the financial year end, the Exchange entered into agreements with SCANS
to acquire:
(i)
1,020,000 ordinary shares representing 51% equity interest in Malaysian Share Registration Services Sdn. Bhd.
(“MSRS”), for a cash consideration of RM1,020,000.
(ii)
137,501 ordinary shares representing 55% equity interest in KLSE-Bernama Real-Time Information Services Sdn.
Bhd. (“KULBER”), for a cash consideration of RM8,190,207 which is to be adjusted based on the attributable
Net Tangible Assets on the expected completion date.
Subsequent Event
Subsequent to the financial year, the Exchange subscribed for all 20,000,000 new ordinary shares of RM1 each in
KLOFFE Capital Sdn. Bhd. (KLOFFE Capital), a wholly owned subsidiary. KLOFFE Capital in turn also subscribed for
all 20,000,000 new ordinary shares of RM1 each in The Kuala Lumpur Options & Financial Futures Exchange Bhd
(a wholly owned subsidiary of KLOFFE Capital). Both transactions were satisfied by way of capitalisation of intercompany balances with the balance in cash.
Committee Members
The Committee Members who served since the date of the last report are:
Chan Guan Seng (elected on 5 December, 1996)
Tan Kim Leong
Abdul Kadir Haji Md Kassim
Koh Kee Tee (elected on 26 November, 1997)
Dato’ Hwang Sing Lue (elected on 28 November, 1998)
Mohaiyani Shamsudin (elected on 28 November, 1998)
Ng Wu Hong (retired on 28 November, 1998 and re-elected effective 1 January, 1999)
Datuk Tiah Thee Kian (retired on 28 October, 1998)
Dato’ Nik Mohamed Nik Yahya (retired on 28 November, 1998)
Dato’ Mohammed Azlan Hashim, Dato’ Ranita Mohd Hussein, Tan Kim Leong and Abdul Kadir Haji Md Kassim
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.
In accordance with Article 10.3(1) of the Exchange’s Articles of Association, two of the current Elected Committee
Members are required to retire at the 23rd Annual General Meeting. Pursuant to Article 10.3(2), the two so retiring
are Chan Guan Seng and Koh Kee Tee. Pursuant to Article 10.3(3), both gentlemen are eligible for re-election.
In accordance with Section 129 of the Companies Act, 1965, Dato’ Hwang Sing Lue retires on exceeding the age
of 70 years at the forthcoming Annual General Meeting, and being eligible, offers himself for re-election.
58
A n n u a l
R e p o r t
1999
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 accounts) 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.
Auditors
Our auditors, Messrs. Hanafiah Raslan & Mohamad, will be retiring at the forthcoming Annual General Meeting and
will be seeking re-appointment under the name of Arthur Andersen & Co.
Signed on behalf of the Committee in accordance
with a resolution of the Committee Members
CHAN GUAN SENG
Kuala Lumpur
24 September, 1999
59
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Statement
By The Committee
We, DATO’ MOHAMMED AZLAN HASHIM and CHAN GUAN SENG, being two of the Committee Members of
KUALA LUMPUR STOCK EXCHANGE, do hereby state that, in the opinion of the Committee, the accompanying
balance sheets of the Exchange and of the Group as at 30 June, 1999 and the income and expenditure accounts
of the Exchange and of the Group and the cash flow statement of the Group for the year then ended, together with
the notes thereto, give a true and fair view of the state of affairs of the Exchange and of the Group as at 30 June,
1999 and of the results of the Exchange and of the Group and cash flows of the Group for the year then ended,
and have been properly drawn up in accordance with applicable approved accounting standards.
Signed on behalf of the Committee in accordance
with a resolution of the Committee Members
CHAN GUAN SENG
Kuala Lumpur
24 September, 1999
Statutory
Declaration
I, DATO’ MOHD SALLEH ABDUL MAJID, the officer primarily responsible for the financial management of
KUALA LUMPUR STOCK EXCHANGE, do solemnly and sincerely declare that the accompanying balance sheets of
the Exchange and of the Group as at 30 June, 1999 and the income and expenditure accounts of the Exchange and
of the Group and the cash flow statement of the Group for the year then ended, together with the notes thereto
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
ABDUL MAJID at Kuala Lumpur in
Wilayah Persekutuan on 24 September, 1999
Before me:
Commissioner for Oaths
60
)
)
)
)
DATO’ MOHD SALLEH ABDUL MAJID
A n n u a l
R e p o r t
1999
Auditors’
Report
To the Members of KUALA LUMPUR STOCK EXCHANGE
We have audited the accounts of KUALA LUMPUR STOCK EXCHANGE (the Exchange) and the consolidated
accounts of KUALA LUMPUR STOCK EXCHANGE AND ITS SUBSIDIARIES (the Group) as at 30 June, 1999. These
accounts are the responsibility of the Committee Members. Our responsibility is to express an opinion on these
accounts based on our audit.
We 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 accounts are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
accounts. An audit also includes assessing the accounting principles used and significant estimates made by the
Committee Members, as well as evaluating the overall accounts presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion,
(a)
the accounts give a true and fair view of the state of affairs of the Exchange and of the Group as at 30 June,
1999 and of the results of the Exchange and of the Group and cash flows of the Group 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; and
(b)
the accounting and other records and the registers required by the Act to be kept by the Exchange and its
subsidiaries have been properly kept in accordance with the provisions of the Act.
We are satisfied that the accounts of the subsidiaries that have been consolidated with the Exchange’s accounts are
in form and content appropriate and proper for the purposes of the preparation of the consolidated accounts and
we have received satisfactory information and explanations required by us for these purposes.
The audit reports on the accounts of the subsidiaries were not subject to any qualification or any adverse comment
made under subsection (3) of Section 174 of the Act.
HANAFIAH RASLAN & MOHAMAD
WONG KANG HWEE
No. AF 0002
No. 1116/1/2000(J)
Public Accountants
Partner of the Firm
24 September, 1999
61
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Balance
Sheets
30 June, 1999
Group
Note
CURRENT ASSETS
Cash and bank balances
Short term deposits
Debtors
Stocks
Investments
Due from subsidiaries
Due from associated company
CURRENT LIABILITIES
Bank overdrafts
Short term borrowings
Trade creditors
Taxation
Due to subsidiaries
Sundry creditors
NET CURRENT ASSETS
SUBSIDIARIES
ASSOCIATED COMPANY
OTHER INVESTMENTS
FIXED ASSETS
STAFF LOANS RECEIVABLE
INTANGIBLE ASSETS
DEFERRED TAXATION
LONG TERM LIABILITY
Represented by:
MEMBERSHIP FEES
ACCUMULATED FUNDS
RESERVE ARISING ON
CONSOLIDATION
COMPENSATION FUND
MINORITY INTERESTS
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Exchange
1999
RM
1998
RM
1999
RM
1998
RM
3,205,102
649,477,970
128,159,446
248,018
156,379,302
—
801,865
4,328,978
917,440,259
63,130,112
290,562
99,133,506
—
—
666,542
162,774,887
39,353,052
248,018
156,310,622
5,923,266
—
258,314
292,501,137
20,063,966
290,562
98,898,990
28,683,584
—
938,271,703
1,084,323,417
365,276,387
440,696,553
21,176,649
3,600,000
5,077,758
—
—
79,210,010
15,543,670
—
4,831,472
138,596,590
—
72,618,767
—
—
—
—
13,570,261
36,986,244
—
—
—
732,300
26,286,172
41,745,906
109,064,417
231,590,499
50,556,505
68,764,378
829,207,286
—
5,680,328
172,372
443,674,737
15,015,081
912,991
(6,743,000)
(49,951,498)
852,732,918
—
—
497,567
440,187,994
15,901,930
127,222
(6,868,650)
(50,086,136)
314,719,882
61,060,731
—
—
383,374,481
14,055,638
—
(3,601,000)
(49,951,498)
371,932,175
16,436,502
—
—
393,610,167
9,027,647
—
(3,601,000)
(50,086,136)
1,237,968,297
1,252,492,845
719,658,234
737,319,355
93,950,000
1,062,795,750
82,920,000
1,085,891,383
93,950,000
625,708,234
82,920,000
654,399,355
—
9,958,835
—
—
1,156,745,750
39,677,440
41,545,107
1,178,770,218
33,531,000
40,191,627
719,658,234
—
—
737,319,355
—
—
1,237,968,297
1,252,492,845
719,658,234
737,319,355
The accompanying notes are an integral part of these balance sheets.
62
A n n u a l
R e p o r t
1999
Income
And Expenditure Accounts
for the year ended 30 June, 1999
Group
Note
Operating revenue
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
19
313,414,864
392,352,337
253,739,233
213,892,648
20
183,645,072
82,133,352
209,120,179
61,381,075
—
—
—
183,502,255
82,133,352
209,120,179
61,381,075
9,060,533
(45,292,471)
(31,811,300)
(33,485,000)
192,562,788
36,840,881
177,308,879
27,896,075
(3,162,289)
—
—
189,050,807
33,678,592
177,308,879
27,896,075
1,085,891,383
1,056,943,791
654,399,355
626,503,280
1,274,942,190
1,090,622,383
831,708,234
654,399,355
Excess of income over
expenditure before taxation
Share of loss of
associated company
Taxation
(142,817)
22
Excess of income
over expenditure after taxation
Minority interests
(3,511,981)
Excess of income over
expenditure after taxation
and minority interests
Accumulated funds
brought forward
Transfer to
Compensation Funds
Accumulated funds carried forward
23
(212,146,440)
1,062,795,750
(4,731,000)
1,085,891,383
(206,000,000)
625,708,234
—
654,399,355
The accompanying notes are an integral part of these accounts.
63
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Consolidated
Cash Flow Statement
Note
CASH FLOW FROM OPERATING ACTIVITIES
Excess of income over expenditure before taxation
1998
RM
183,645,072
82,133,352
(206,000,000)
142,817
69,046,109
278,574
937,954
8,845,119
—
(68,974)
1,326,098
(1,031,936)
—
—
59,616,786
1,273,828
143,304
10,340,669
145,639
(3,750,118)
—
—
(66,353,309)
411,715
(3,352,226)
(67,711,689)
(3,526,849)
52,232,121
186,940
75,564,161
(93,076,481)
(3,366,740)
(83,411,525)
(65,029,334)
42,544
(391,310)
(228,159)
181,443,461
231,698,359
67,326
(40,563,121)
—
Cash (used in)/generated from operations
Taxes paid
(149,017,784)
(135,757,038)
372,646,025
(73,999,964)
Net cash (used in)/generated from operating activities
(284,774,822)
298,646,061
3,526,849
(1,710,000)
(31,853,074)
(1,993,890)
(1,724,977)
(86,520)
886,849
67,711,689
(52,944,886)
1,216,505
12,531,771
3,366,740
(979,875)
—
—
—
(217,157)
(5,840,100)
97,483,671
(163,365,763)
9,640,730
(34,180,494)
(4,439,684)
(94,092,248)
Adjustment for:
Transfer to KLSE Compensation Fund
Share of loss of associated company
Depreciation
Fixed assets written off
Amortisation of intangible assets
Bad and doubtful debts
Preliminary and pre-operating expenses written off
Gain on sales of fixed assets
Goodwill on consolidation written off
Net gain on disposal of a subsidiary
(Write back)/provision for diminution in value
of investment securities
Recreational club memberships benefits
(Gain)/loss on disposal of investments
Interest income
Gross dividend income
(Deficit)/excess of income over expenditure
before working capital changes
(Increase)/decrease in debtors
Decrease in stocks
Decrease in creditors
Increase in amount due from associated company
CASH FLOW FROM INVESTING ACTIVITIES
Dividends received
Dividends paid to minority interests
Purchase of a subsidiary *
Disposal of a subsidiary *
Increase in intangible assets
Purchase of club memberships
Decrease/(increase) in loans granted to staff
Interest received
Purchase of fixed assets
Proceeds from sale of fixed assets
Net sale/(purchase) of investment securities
Net cash used in investing activities
64
1999
RM
A
B
Note
CASH FLOW FROM FINANCING ACTIVITIES
Decrease in long term liability
Increase in membership fees
Net cash generated from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Cash
Cash
Short
Short
and cash equivalents comprise:
and bank balances
term borrowings
term deposits
A n n u a l
R e p o r t
1999
RM
1998
RM
(134,638)
11,030,000
(538,561)
8,050,000
10,895,362
7,511,439
(278,319,144)
906,225,567
212,065,252
694,160,315
627,906,423
906,225,567
3,205,102
(24,776,649)
649,477,970
4,328,978
(15,543,670)
917,440,259
627,906,423
906,225,567
*
Notes to the Consolidated Cash Flow Statement
A.
The fair values of assets acquired and liabilities assumed from the acquisition of KLOFFE Capital Sdn. Bhd., a
subsidiary are as follows:
1999
1999
RM
Short term deposits
Sundry debtors
Bank overdraft
Short term borrowings
Short term loan
Sundry creditors
Fixed assets
Intangible assets
Investment in associated company
Term loan
Preference shares
319,349
1,703,550
1,294,361
573,706
(349,595)
(3,600,000)
(1,333,332)
(10,419,941)
23,281,164
15,746
5,823,145
(1,593,046)
(40)
Share of net assets acquired
Goodwill on consolidation
15,715,067
11,284,933
Total purchase consideration
Less: Cash and bank balances
27,000,000
(4,853,074)
Cash flow on acquisition, net of cash acquired
(31,853,074)
65
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Consolidated Cash Flow Statement
B.
The fair values of assets disposed and liabilities relinquished from the disposal of KLSE Chilong Systems
Sdn. Bhd., a subsidiary are as follows:
1999
RM
Short term deposits
Trade debtors
Sundry debtors
Trade creditors
Sundry creditors
Taxation
Due to related companies
Fixed assets
Intangible assets
Deferred taxation
Translation reserve
Minority interest
Gain on disposal
1,947,010
1,031,936
Proceeds from disposal
Less: Cash and bank balances
2,978,946
(4,972,836)
Cash flow on acquisition, net of cash disposed
(1,993,890)
The accompanying notes are an integral part of this statement.
66
303,397
4,669,439
361,698
691,494
350
(3,742,412)
(1,206,458)
(254,992)
(679,230)
2,267,093
17,000
(125,000)
(41,051)
(314,318)
A n n u a l
R e p o r t
1999
Notes
To T h e A c c o u n t s
30 June, 1999
1. 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 accounts.
There were no significant changes in these activities during the financial year, except for the addition of the
options and financial futures exchange activities as disclosed in Note 24(i) to the accounts.
2. Significant Accounting Policies
(a)
Basis of Accounting
The accounts are prepared under the historical cost convention and comply with applicable approved
accounting standards.
(b)
Basis of Consolidation
The consolidated accounts include the accounts 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 and expenditure account from the
effective dates of their acquisition. Related company transactions are eliminated on consolidation and the
consolidated accounts reflect external transactions only.
At the date of acquisition, the fair values of the subsidiary companies’ net assets are determined and these
values are incorporated in the consolidated accounts. The difference between the cost of investments and
the net assets of the subsidiary companies 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 and
expenditure account.
(c)
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 and expenditure accounts.
(d)
Fixed Assets and Depreciation
Fixed assets are stated at cost less accumulated depreciation. Depreciation on other fixed assets is
provided on a straight line basis calculated to write off the cost of each asset over its estimated useful
life as follows:
Leasehold land – long term
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%
67
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
2. Significant Accounting Policies (cont’d)
(d) Fixed Assets and Depreciation (cont’d)
Building under construction in the previous financial year was not depreciated. The useful life of certain
computer equipment belonging to a subsidiary acquired during the year has been reduced from 20%
(5 years) to an average ranging from 22% (4.5 years) to 67% (1.5 years) to address the Year 2000 issue.
The resultant accelerated depreciation charge of RM4,969,121 has been included in the Group’s current
year’s depreciation charge as reflected in the Group’s income and expenditure account.
(e)
Stocks
Stocks representing handbooks, listing manuals and other souvenir items, are stated at the lower of cost
(applied on a first-in, first-out basis) and net realisable value.
(f)
Subscriptions
The monthly subscription fees for members, dealers’ representatives, trainee dealers’ representatives and
corporate nominees for both the years 1998 and 1999 were RM400, RM250, RM50 and RM300 respectively.
(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
have been charged against income for the year.
Executive staff
With effect from 1 July, 1987, retirement benefits of the Exchange for executive staff are paid to an
approved scheme at a rate as determined by the Exchange 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, a valuation of the fund must be performed
by an actuary at least once every three years.
Subsidiaries
(i)
Securities Clearing Automated Network Services Sdn. Bhd.
(ii)
Malaysian Central Depository Sdn. Bhd.
Retirement benefits of the above subsidiaries for executive and non-unionised staff are paid to an
approved scheme at a rate determined by the 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, a valuation of the fund must be performed
by an actuary at least once every three years.
68
A n n u a l
R e p o r t
1999
2. Significant Accounting Policies (cont’d)
(h)
Leased Assets
The cost of assets acquired under finance lease agreements are capitalised. The depreciation policy on
these assets is similar to that of the Group’s other assets as set out in (d) above. Outstanding obligations
due under the lease agreements after deducting finance expenses are included as liabilities in the
accounts. The finance expenses of the lease rentals are charged to the income and expenditure accounts
over the period of the respective agreements.
Lease rental payments on operating leases are charged to the income and expenditure accounts in the
year they become payable.
(i)
Investments
(i)
(ii)
Investments in subsidiaries are stated at cost less provision for any permanent diminution in value.
Short term investments comprising investment in quoted shares and loan stocks are stated at the
lower of cost and market value determined on an aggregate basis.
(j)
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.
(k)
Intangible Assets
Intangible assets comprise:
(i)
Central Depository System (CDS) development cost expenditure for the development and
implementation of the CDS. The CDS development cost is being amortised over a period of 7 years.
(ii)
Preliminary and pre-operating expenses of dormant subsidiaries which are written off upon the
commencement of operations of these subsidiaries.
(iii) Value Added Network Services (VANS) license which is amortised over a period of 5 years.
(iv)
Purchased goodwill is amortised over a twelve month period commencing January 1999. Purchased
goodwill relates to excess of purchased consideration over the value of physical assets purchased,
arising from the acquisition of the business of operating and maintaining the KLOFFE Automated
Trading System.
69
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
3. Short Term Deposits
Group
1999
RM
Compensation Fund
Deposits with licensed banks
Others
Deposits with:
Licensed banks
Licensed finance companies
Discount houses
Exchange
1998
RM
1999
RM
1998
RM
—
206,000,000
—
206,000,000
472,635,465
147,112,187
29,730,318
439,414,773
268,738,669
3,286,817
106,667,390
40,247,179
15,860,318
56,816,534
26,397,786
3,286,817
649,477,970
917,440,259
162,774,887
292,501,137
Included in short term deposits are:
Group
Deposits pledged with
licensed banks for
banking facilities granted
Exchange
1999
RM
1998
RM
220,716,000
50,196,000
1999
RM
1998
RM
716,000
1,367,600
Short term deposits of the Group and Exchange amounting to RM20,312,887 (1998: RM19,444,539) are
managed by fund managers on behalf of the Exchange. In the previous financial year, the Exchange has
allocated and set aside RM206 million in separate bank accounts to meet the needs of the KLSE Compensation
Fund as and when required. This amount was transferred in the current financial year to the KLSE
Compensation Fund itself as disclosed in Notes 23 and 27 to the accounts.
4. Debtors
Group
Trade debtors
Sundry debtors
Provision for doubtful debts
70
Exchange
1999
RM
1998
RM
1999
RM
1998
RM
92,256,054
55,085,954
41,659,757
32,277,029
17,394,391
26,680,566
4,781,783
15,521,629
147,342,008
(19,182,562)
73,936,786
(10,806,674)
44,074,957
(4,721,905)
20,303,412
(239,446)
128,159,446
63,130,112
39,353,052
20,063,966
A n n u a l
R e p o r t
1999
4. Debtors (cont’d)
Included in trade debtors of the Group is an amount of RM41,399,220 (1998: RM24,255,430) owing by
Member companies of the Exchange to a subsidiary under a credit facility scheme.
5. Investments
Group
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
133,141,057
137,022,620
133,105,127
136,285,737
32,750
32,750
—
—
At cost:
Quoted shares:
– in Malaysia
– outside Malaysia
Quoted loan stocks in Malaysia
Unit trusts
482,444
1,858,048
482,444
1,858,048
32,286,396
36,358,969
32,286,396
36,358,969
165,942,647
175,272,387
165,873,967
174,502,754
Less: Provision for diminution
in value
Market value
(9,563,345)
(76,138,881)
(9,563,345)
(75,603,764)
156,379,302
99,133,506
156,310,622
98,898,990
156,517,141
99,133,506
156,310,622
98,898,990
Investments of the Group and Exchange with a carrying value amounting to RM119,406,173
(1998: RM69,997,817) are managed by fund managers on behalf of the Group and the Exchange.
6. Bank Overdrafts
The bank overdrafts bear interest of between 7.25% to 11.90% (1998: 10.85% to 13.60%) per annum.
Bank overdraft of a subsidiary amounting to RM452,097 is unsecured. The remaining bank overdraft of the
Group of RM20,724,552 (1998: RM15,543,670) is secured against fixed deposits as stated in Note 3.
7. Short Term Borrowings
The short term borrowings of the Group bear interest of between 5.65% to 11.85% (1998: 9.55% to 15.7%)
per annum, of which RM2,000,000 is secured by a negative pledge over the assets of a subsidiary.
71
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
8. Due to Subsidiaries
Exchange
The amounts due to subsidiaries are unsecured, interest free and have no fixed terms of repayment.
9. Subsidiaries
Exchange
Note
1999
1998
RM
RM
Investment in unquoted shares, at cost
(i)
43,436,502
16,436,502
Amount due from a subsidiary
(ii)
17,624,229
—
61,060,731
16,436,502
(i)
Details of the subsidiaries are as follows:
Effective
Name of company
interest
Principal activities
1999
1998
%
%
100
100
Incorporated in Malaysia:
(a)
Securities Clearing
Providing facilities for clearing contracts
Automated Network Services
between members of the Exchange
Sdn. Bhd. (“SCANS”)
and computer and allied services
to the Group.
(b)
KLSE-Bernama Real-Time
Information Services Sdn. Bhd.
55
55
Compiling, providing and disseminating
real-time share price and other relevant
financial economic information.
(c)
KLSE Chilong Systems Sdn. Bhd.
—
60
Distributing computerised display systems
to provide real-time linkages between a
stock exchange and all relevant
bodies within the securities industry.
(d)
Malaysian Central
55
55
Depository Sdn. Bhd.
To operate and maintain a central
depository system, providing custodian
and registration facilities in respect of
shares, stocks and other securities.
(e)
Malaysian Share Registration
Services Sdn. Bhd.
72
51
51
Providing share registration services.
A n n u a l
R e p o r t
1999
9. Subsidiaries (cont’d)
Effective
Name of company
(f)
KLSE Realty Sdn. Bhd.
interest
1999
1998
%
%
100
100
Dormant – intended principal activity
is real estate investment.
(g)
Malaysian Central Depository
Nominees Sdn. Bhd.
To act as nominees for Malaysian
55
55
Central Depository Sdn. Bhd. and
to receive securities and property
on deposit or for safe-custody or
management.
(h)
KLOFFE Capital Sdn. Bhd.*
100
—
Investment holding and the promotion
of derivative instruments and exchanges.
(i)
The Kuala Lumpur
100
—
To establish, maintain, conduct, operate
Options & Financial Futures
and promote a market or markets for the
Exchange Bhd.* (KLOFFE)
trading of futures and options contracts
and facilities for the registration of
dealings and settlement of trades in
such contracts.
(j)
KLOFFE Information
100
—
Systems Sdn. Bhd.*
Dormant – intended principal activities
are to provide information technology
and management services.
Incorporated in the Republic
of Singapore:
(k)
KLSE Chilong Systems
—
(Singapore) Pte. Ltd **
60
Distributing computerised display
systems to provide real time linkage
between the Exchange and the relevant
bodies within the securities industry
in Singapore.
(ii)
*
Audited by Arthur Andersen & Co, Malaysia
**
Audited by Arthur Andersen & Co, Singapore
The amount due from a subsidiary represents an unsecured advance to KLOFFE for working capital
purposes. Subsequent to the financial year, the Exchange capitalised these advances as additional capital
in KLOFFE Capital Sdn. Bhd. and KLOFFE as explained in Note 26 to the accounts.
73
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
10. Associated Company
Group
1999
1998
RM
RM
Unquoted shares, at cost
4,000,000
—
Share of post acquisition profit
1,680,328
—
5,680,328
—
The analysis of the associated company is as follows:
Group’s share of net tangible assets
1999
1998
RM
RM
5,680,328
—
The associated company which is incorporated in Malaysia, is as follows:
Effective
Name of company
Malaysian Derivatives Clearing House Bhd.
interest
1999
1998
%
%
50
—
Providing clearing facilities for futures
and options contracts.
The acquisition of the associated company was derived from the acquisition of KLOFFE Capital Sdn. Bhd. as
explained in Note 9 to the accounts.
11. Other Investments
Group
Recreational club memberships, at cost
Add: Acquired during the year
Less: Transferred to directors
The club memberships are for the use of directors of a subsidiary.
74
1999
1998
RM
RM
497,567
467,350
86,520
217,157
(411,715)
(186,940)
172,372
497,567
A n n u a l
R e p o r t
1999
12. Fixed Assets
Group
1999
Cost
At beginning of year
Subsidiary acquired
Subsidiary disposed
Additions
Disposals
At end of year
Accumulated
Depreciation
Subsidiary acquired
Subsidiary disposed
Charge for the year
Disposals
Land and
buildings
Note 12(a)
RM
Office
equipment,
electrical
installation,
furniture
and fittings
RM
Computers
and office
automation
RM
367,315,086
—
(470,692)
50,754,509
2,176,677
(1,352,992)
218,747,562
45,883,463
(3,530,849)
9,440,862
785,342
(162,721)
646,258,019
48,845,482
(5,517,254)
11,379,868
—
9,600,745
(924,875)
29,306,668
(257,448)
2,657,605
(2,678,483)
52,944,886
(3,860,806)
378,224,262
8,661,365
—
(198,524)
7,701,736
—
Motor
vehicles
RM
Total
RM
60,254,064
290,149,396
10,042,605
738,670,327
17,148,374
816,939
(668,404)
11,466,884
(248,388)
175,520,051
24,251,072
(2,236,159)
47,647,631
(252,339)
4,740,235
496,307
(147,074)
2,229,858
(1,933,974)
206,070,025
25,564,318
(3,250,161)
69,046,109
(2,434,701)
At end of year
16,164,577
28,515,405
244,930,256
5,385,352
294,995,590
Net Book Value
362,059,685
31,738,659
45,219,140
4,657,253
443,674,737
1998
Cost
Additions
Disposals
280,320,925
93,718,572
(6,724,411)
27,209,157
32,436,162
(8,890,810)
246,287,386
34,957,484
(62,497,308)
8,981,092
2,253,545
(1,793,775)
562,798,560
163,365,763
(79,906,304)
At end of year
367,315,086
50,754,509
218,747,562
9,440,862
646,258,019
Accumulated
Depreciation
Charge for the year
Disposals
6,192,704
5,851,504
(3,382,843)
12,502,495
10,585,513
(5,939,634)
196,679,663
41,283,631
(62,443,243)
4,361,742
1,896,138
(1,517,645)
219,736,604
59,616,786
(73,283,365)
At end of year
8,661,365
17,148,374
175,520,051
4,740,235
206,070,025
358,653,721
33,606,135
43,227,511
4,700,627
440,187,994
Net Book Value
75
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
12. Fixed Assets (cont’d)
Exchange
Office
equipment,
electrical
1999
Land and
installation,
buildings
furniture
Computers
and office
Motor
Note 12(a)
and fittings
automation
vehicles
Total
RM
RM
RM
RM
RM
Cost
349,675,957
36,127,383
115,256,688
5,344,433
506,404,461
Additions
11,375,914
9,228,489
5,719,667
2,169,870
28,493,940
Disposals
—
At end of year
(387,884)
361,051,871
44,967,988
7,362,363
11,662,797
Charge for the year
6,542,856
9,187,574
—
120,976,355
(327,572)
(715,456)
7,186,731
534,182,945
91,238,647
2,530,487
112,794,294
21,085,419
1,402,341
38,218,190
Accumulated
Depreciation
Disposals
—
(608)
—
(203,412)
(204,020)
At end of year
13,905,219
20,849,763
112,324,066
3,729,416
150,808,464
Net Book Value
347,146,652
24,118,225
8,652,289
3,457,315
383,374,481
1998
Cost
269,991,904
18,623,809
161,190,052
4,612,914
454,418,679
Additions
84,221,183
24,403,890
13,349,450
1,515,125
123,489,648
Disposals
(4,537,130)
(6,900,316)
(59,282,814)
(783,606)
(71,503,866)
349,675,957
36,127,383
115,256,688
5,344,433
506,404,461
3,650,568
7,783,153
126,635,292
2,100,761
140,169,774
Charge for the year
5,334,617
8,231,752
23,886,169
1,057,112
38,509,650
Disposals
(1,622,822)
(4,352,108)
(59,282,814)
(627,386)
(65,885,130)
At end of year
7,362,363
11,662,797
91,238,647
2,530,487
112,794,294
342,313,594
24,464,586
24,018,041
2,813,946
393,610,167
At end of year
Accumulated
Depreciation
Net Book Value
76
A n n u a l
R e p o r t
1999
12. (a) Land and Buildings (cont’d)
Group
1999
Building
Leasehold
under
Building
land
construction
and office lots
Renovations
Total
RM
RM
RM
RM
RM
Cost
60,817,500
—
301,547,175
4,950,411
367,315,086
Additions
—
—
11,375,914
3,954
11,379,868
Subsidiary disposed
—
—
—
60,817,500
—
312,923,089
4,483,673
378,224,262
At end of year
(470,692)
(470,692)
Accumulated
Depreciation
2,693,140
—
5,473,632
494,593
8,661,365
Charge for the year
538,223
—
6,269,237
894,276
7,701,736
Subsidiary disposed
—
—
—
At end of year
3,231,363
—
11,742,869
1,190,345
16,164,577
Net Book Value
57,586,137
—
301,180,220
3,293,328
362,059,685
53,317,500
212,137,274
10,819,246
4,046,905
280,320,925
7,500,000
57,434,951
24,511,144
4,272,477
93,718,572
Transfer (out)/in
—
(269,572,225)
269,572,225
—
—
Disposals
—
—
(3,355,440)
(3,368,971)
(6,724,411)
60,817,500
—
301,547,175
4,950,411
367,315,086
2,154,579
—
1,009,567
3,028,558
6,192,704
538,561
—
5,000,935
312,008
5,851,504
—
—
(536,870)
(2,845,973)
(3,382,843)
At end of year
2,693,140
—
5,473,632
494,593
8,661,365
Net Book Value
58,124,360
—
296,073,543
4,455,818
358,653,721
(198,524)
(198,524)
1998
Cost
Additions
At end of year
Accumulated
Depreciation
Charge for the year
Disposals
77
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
Exchange
1999
Building
Leasehold
under
Building
land
construction
and office lots
Renovations
Total
RM
RM
RM
RM
RM
Cost
60,817,500
—
288,858,457
—
349,675,957
—
—
11,375,914
—
11,375,914
60,817,500
—
300,234,371
—
361,051,871
2,693,140
—
4,669,223
—
7,362,363
538,223
—
6,004,633
—
6,542,856
At end of year
3,231,363
—
10,673,856
—
13,905,219
Net Book Value
57,586,137
—
289,560,515
—
347,146,652
53,317,500
212,137,274
3,355,440
1,181,690
269,991,904
84,221,183
Additions
At end of year
Accumulated
Depreciation
Charge for the year
1998
Cost
Additions
7,500,000
57,434,951
19,286,232
—
Transfer (out)/in
—
(269,572,225)
269,572,225
—
—
Disposals
—
—
(3,355,440)
(1,181,690)
(4,537,130)
60,817,500
—
288,858,457
—
349,675,957
2,154,579
—
469,762
1,026,227
3,650,568
538,561
—
4,736,331
59,725
5,334,617
—
—
(536,870)
(1,085,952)
(1,622,822)
At end of year
2,693,140
—
4,669,223
—
7,362,363
Net Book Value
58,124,360
—
284,189,234
—
342,313,594
At end of year
Accumulated
Depreciation
Charge for the year
Disposals
Office lots represent office and car park space in multistorey buildings.
78
A n n u a l
R e p o r t
1999
Included in the fixed assets of the Group and the Exchange are the following cost of fully depreciated assets
which are still in use:
Group
Buildings, office lots and renovations
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
154,439
9,359
—
—
Office equipment, furniture
and fittings
Computer equipment
Motor vehicles
6,478,674
3,368,654
4,595,470
1,853,258
138,204,825
90,630,305
57,061,814
43,598,180
1,249,569
709,593
1,113,700
353,682
13. Staff Loans Receivable
Group
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
Housing loans
13,753,693
13,537,347
13,196,532
8,069,567
Vehicle loans
2,891,235
4,023,082
1,840,694
1,862,256
2,804
106,729
—
—
Computer loans
Portion repayable within
twelve months included
in sundry debtors
(1,632,651)
(1,765,228)
15,015,081
15,901,930
(981,588)
14,055,638
(904,176)
9,027,647
The staff housing loans are secured against the properties of the borrowers.
79
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
14. Intangible Assets
Group
1999
1998
RM
RM
At cost,
VANS license
—
20,000
Less: Amortisation
—
(3,000)
—
17,000
982,130
982,130
(982,130)
(904,282)
CDS Development cost
Less: Amortisation
—
Preliminary expenses
Pre-operating expenses
Purchased goodwill
65,682
28,450
385,433
149,563
1,720,212
—
2,171,327
178,013
—
(145,639)
Less: Amount written off
Accumulated amortisation
77,848
(1,258,336)
—
912,991
32,374
912,991
127,222
Included in pre-operating expenses are audit fees for the year of RM800 (1998: RM300).
15. Deferred Taxation
Group
(a)
Subsidiary disposed
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
6,868,650
7,153,000
3,601,000
3,601,000
—
—
—
—
(284,350)
—
—
6,743,000
6,868,650
3,601,000
3,601,000
(125,650)
Transfer from income and
expenditure accounts
At end of year
80
A n n u a l
R e p o r t
1999
15. Deferred Taxation (cont’d)
Group
Exchange
1999
RM
(b)
1998
RM
1999
RM
1998
RM
Timing differences between
depreciation and
corresponding capital
allowances
Timing differences on provisions
28,086,617
(4,004,617)
32,585,869
(8,055,869)
16,645,319
(3,785,319)
19,083,486
(6,223,486)
Net amount of
all timing differences
24,082,000
24,530,000
12,860,000
12,860,000
16. Long Term Liability
Group and Exchange
1999
1998
RM
RM
Long term liability
Less: Portion repayable within twelve months
included in sundry creditors
50,490,059
50,624,697
(538,561)
49,951,498
(538,561)
50,086,136
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.
17. Membership Fees
As at 30 June, 1999
(i)
membership fees received from past and present members at RM10,000 each amounted to RM2,950,000
(1998: RM2,920,000); and
(ii)
a total contribution of RM91,000,000 (1998: RM80,000,000) was received from members as follows:
No of Members
Total Contributions
Brought
forward
Carried
forward
Additions
1999
3
50
5
2
1
—
5
51
5
58
3
61
Contribution
per Member
RM’000
Brought
forward
RM’000
Additions
RM’000
Carried
forward
RM’000
5,000
1,000
3,000
15,000
50,000
15,000
10,000
1,000
—
25,000
51,000
15,000
80,000
11,000
91,000
81
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
17. Membership Fees (cont’d)
No of Members
Total Contributions
Brought
forward
Carried
forward
Additions
1998
3
48
3
—
2
2
3
50
5
54
4
58
Contribution
per Member
RM’000
Brought
forward
RM’000
5,000
1,000
3,000
15,000
48,000
9,000
—
2,000
6,000
15,000
50,000
15,000
72,000
8,000
80,000
Additions
RM’000
Carried
forward
RM’000
18. Compensation Fund
Group
Transfer from Income and Expenditure Accounts
At end of year
1999
1998
RM
RM
33,531,000
28,800,000
6,146,440
4,731,000
39,677,440
33,531,000
In 1997, a subsidiary, Malaysian Central Depository Sdn. Bhd. (“MCD”), established a compensation fund in
accordance with Rule 34 of the Rules of the Malaysian Central Depository Sdn. Bhd. Withdrawals from the Fund
are governed by the internal guidelines of Malaysian Central Depository Sdn. Bhd. for the Compensation Fund.
19. Operating Revenue
The operating revenue of the Exchange comprises gross dividend received from subsidiaries, fees from
members’ subscription, listing, registration, transfer and perusal, sales of publications, System on Computerised
Order Routing and Execution (SCORE) fees, equipment rental income, other income derived from the operation
of the Exchange and interest income.
The operating revenue of the Group further includes clearing fees for contracts between Member companies
of the Exchange, rental of computer terminals to subscribers, fees from Central Depository System (CDS)
operations, subscription, gross trade fees for option contracts less rebates, interest and dividend income.
82
A n n u a l
R e p o r t
1999
20. Excess of Income Over Expenditure Before Taxation
Group
This is arrived at after
charging/(crediting):
Auditors’ remuneration
Amortisation of intangible assets
Preliminary and pre-operating
expenses written off
Depreciation
Bad and doubtful debts
Fixed assets written off
(Gain)/loss on disposal of investments
Interest expense
– subsidiary
– others
Office rental
– subsidiary
– others
(Writeback)/provision for diminution
in value of investments
Remuneration of
– Committee Members
Fees
Other emoluments
– Other directors of subsidiaries:
Fees
Other emoluments
Rental of equipment
Recreational club memberships
benefit to directors*
Retirement benefits
Gross dividend income from
– subsidiaries
– investments quoted in Malaysia
Equipment rental income
Building rental
– subsidiaries
– others
Net gain on sale of fixed assets
Gain on disposal of a subsidiary
Interest income from
– subsidiary
– others
*
Exchange
1999
RM
1998
RM
150,600
937,954
155,515
143,304
—
69,046,109
8,845,119
278,574
(3,352,226)
145,639
59,616,786
10,340,669
1,273,828
75,564,161
1999
RM
1998
RM
40,000
—
—
38,218,190
4,487,162
—
(2,685,558)
35,000
—
—
38,509,650
—
502,408
75,437,906
—
809,793
—
1,180,558
10,049
—
—
—
—
2,280,992
—
4,280,637
26,544
315,929
—
904,083
(66,575,536)
52,232,121
(66,040,419)
51,697,004
306,000
520,200
251,200
879,173
—
—
—
—
236,200
81,790
366,698
363,973
80,500
1,373,036
—
—
—
—
—
—
411,715
3,681,705
186,940
3,270,679
—
2,093,107
—
1,898,010
—
(3,526,849)
(18,396,511)
—
(3,366,740)
(17,439,649)
(145,970,833)
(3,526,849)
(4,324,435)
(147,345,833)
(3,327,555)
(15,839,694)
—
(897,679)
(68,974)
(1,031,936)
—
—
(3,750,118)
—
(10,869,696)
(614,991)
(74,708)
—
(9,058,080)
—
(3,161,755)
—
—
(67,711,689)
—
(93,076,481)
(557,991)
(24,343,826)
—
(23,104,030)
This represents cost of recreational club memberships transferred to directors of a subsidiary.
83
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
21. Significant Related Party Transactions
Exchange
Transfer fees paid to subsidiary
Royalty paid to subsidiary
Information services income from subsidiary
Net service income from subsidiaries
1999
1998
RM
RM
54,271
—
900,020
1,119,810
(111,247)
—
(1,085,226)
(5,137,184)
22. Taxation
Group
Current year charge
Overprovision in prior years
Transfer from deferred taxation
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
41,346,000
33,485,000
474,167
(9,534,700)
—
(9,060,533)
45,576,821
—
(9,534,700)
—
(284,350)
—
—
45,292,471
31,811,300
33,485,000
The tax charge for the current financial year is on dividend income. There is no tax charge on other income
from other sources as the amount payable for the year is waived in accordance with the Income Tax
(Amendment) Act, 1999.
84
A n n u a l
R e p o r t
1999
23. Transfer to Compensation Funds
Group
MCD Compensation Fund (Note 18)
KLSE Compensation Fund
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
6,146,440
4,731,000
—
—
206,000,000
—
206,000,000
—
212,146,440
4,731,000
206,000,000
—
The transfer to KLSE Compensation Fund was made pursuant to Section 62 (d) of the Securities Industries Act, 1983.
24. Significant Events
(i)
On 22 July, 1998, the Exchange entered into a Sales and Purchase Agreement for the acquisition of
19,998,002 ordinary shares of RM1 each in KLOFFE Capital Sdn. Bhd. (representing a 100% equity
interest) for a cash consideration of RM35,000,000. The said acquisition was completed on 31 December,
1998 at a revised cash consideration of RM27,000,000.
(ii)
On 2 December, 1996, Securities Clearing Automated Network Services Sdn. Bhd. (“SCANS”), a wholly
owned subsidiary, entered into an agreement with Virtual Commerce Holdings Sdn. Bhd. to dispose off
its entire interest in its subsidiary, KLSE Chilong Systems Sdn. Bhd. for a cash consideration of
RM2,978,946. The said disposal was completed upon obtaining the approval of the Securities Commission on
11 January, 1999.
25. Group Rationalisation
During the year, the Group embarked onto a rationalisation exercise to streamline the Group’s activities and
structure. Pursuant to this exercise, subsequent to the financial year end, the Exchange entered into agreements
with SCANS to acquire:
(i)
1,020,000 ordinary shares representing 51% equity interest in Malaysian Share Registration Services
Sdn. Bhd. (“MSRS”), for a cash consideration of RM1,020,000.
(ii)
137,501 ordinary shares representing 55% equity interest in KLSE-Bernama Real-Time Information Services
Sdn. Bhd. (“KULBER”), for a cash consideration of RM8,190,207 which is to be adjusted based on the
attributable Net Tangible Assets on the expected completion date.
85
K u a l a
L u m p u r
S t o c k
E x c h a n g e
30 June, 1999
26. Subsequent Event
Subsequent to the financial year, the Exchange subscribed for all 20,000,000 new ordinary shares of RM1 each
in KLOFFE Capital Sdn. Bhd. (KLOFFE Capital), a wholly owned subsidiary. KLOFFE Capital in turn also
subscribed for all 20,000,000 new ordinary shares of RM1 each in The Kuala Lumpur Options & Financial
Futures Exchange Bhd (a wholly owned subsidiary of KLOFFE Capital). Both transactions were satisfied by way
of capitalisation of inter-company balances with the balance in cash.
27. KLSE Compensation Fund
The accounts of the KLSE Compensation Fund for the year ended 30 June, 1999 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).
28. Capital Commitments
Group
Exchange
1999
1998
1999
1998
RM
RM
RM
RM
Authorised and contracted for
– Office equipment
– Computer and related software
– Building
– Furniture and fittings
– Office automation
– Office renovation
1,173,400
—
1,165,000
—
202,860
—
202,860
—
12,680,565
4,836,230
12,680,565
9,638,995
5,778,544
2,925,417
5,778,544
5,050,923
15,732,511
8,369,864
15,910,511
8,369,864
57,500
—
57,500
—
35,625,380
16,131,511
35,794,980
23,059,782
2,874,510
—
2,874,510
—
252,358
—
210,508
—
2,155,115
3,342,959
2,155,115
1,941,679
899,500
—
899,500
—
3,566,667
Approved but not contracted for
– Furniture and fittings
– Office equipment
– Computer and related software
– Motor vehicle
– Office automation
86
1,102,174
3,566,667
1,102,174
– Office renovation
859,800
—
859,800
—
– Others
480,000
2,302,600
480,000
300,000
8,623,457
9,212,226
8,581,607
5,808,346
A n n u a l
R e p o r t
1999
29. Incorporation
The Exchange was incorporated under the Companies Act, 1965 on 14 December, 1976 as a company limited
by guarantee and does not have a share capital. Membership fees and accumulated funds of the Exchange are
not distributable to the members of the Exchange.
30. Comparative Figures
Certain comparative figures have been reclassified to conform with current year presentation.
31. Currency
All amounts are stated in Ringgit Malaysia.
87
K u a l a
L u m p u r
S t o c k
E x c h a n g e
KLSE
S u b-C o m m i t t e e s
AUDIT SUB-COMMITTEE
•
and maintained with the view to maximise
Objectives
•
returns/yields on investment.
Assist the KLSE Committee in discharging its
responsibilities relating to accounting practices of
•
KLSE and its Group of Companies.
•
•
Ensure that the funds are properly invested
Ensure the adequacy, efficiency and effectiveness of
Appoint appropriate advisors in managing its
surplus funds.
•
Formulate policies and guidelines for the
the Group’s administrative, operating and accounting
investment of the KLSE and its Group of
controls and procedures.
Companies’ surplus funds.
Oversee and evaluate the quality of the audits
•
Review the investment policy of the KLSE and
conducted both by the Group’s internal and
its Group of Companies to ensure that optimal
external auditors.
yield is achieved with minimum risk exposure
to the funds.
Members
1. Tan Kim Leong (Chairman)
Members
2. Abdul Jabbar Majid
1. Dato’ Mohammed Azlan Hashim (Chairman)
3. Chan Guan Seng
2. Dato’ Hwang Sing Lue
4. Benny Ng Wu Hong
3. Koh Kee Tee
4. Harry K Menon
5. Datuk Ramly Ahmad
BUDGET AND INVESTMENT SUB-COMMITTEE
Objectives
•
Ensure that the KLSE and its Group of Companies
DISPUTES AND DISCIPLINARY SUB-COMMITTEE
have a proper budgetary system in place that will
Objectives
help to plan, co-ordinate, evaluate and control
•
financial activities effectively.
•
Ensure that proper allocations are made to enable
Consider matters relating to disputes among
Member Companies.
•
Consider disciplinary actions against Members,
effective and efficient:-
Member Companies and Dealers’ Representatives
*
of the Exchange.
operations of the KLSE and its Group of
Companies;
Members
*
implementation of the development plans of
the KLSE and its Group of Companies; and
*
utilisation of financial resources.
1. Dato’ Ranita Mohd Hussein (Chairperson)
2. Abdul Jabbar Majid
3. Abdul Kadir Hj Md Kassim
4. Benny Ng Wu Hong
•
•
Review and monitor the financial position of the
5. Nik Saghir Mohd Noor
KLSE and its Group of Companies.
6. Tan Kim Leong
Ensure that the cash of the KLSE and its Group of
Companies is preserved and secured.
88
A n n u a l
RULES AND DEVELOPMENT SUB-COMMITTEE
INDEX SUB-COMMITTEE
Objectives
Objectives
•
•
Review changes, revisions or additions to the
R e p o r t
1999
Responsible for the construction and establishment
KLSE Rules and Regulations to determine if they
of new indices as directed by the KLSE Committee
are consistent with the mission and objectives
or whenever necessary.
of the KLSE.
•
•
Assist in other related securities areas, if possible,
as determined by the KLSE Committee.
Review the role and direction of the KLSE and
its Group of Companies in line with its mission
and vision.
Members
Members
2. Azim Mohd Zabidi
3. Dr. Aziz Abu Hassan
4. Iskander Ismail
3. Chan Guan Seng
5. Izzaddin Idris
6. Jamiah Abdul Hamid
5. Johan Raslan Raslan Mohamad
7. Dr. Kok Kim Lian
6. Mohaiyani Shamsudin
8. Dr. John Lee Hin Hock
7. Benny Ng Wu Hong
MEMBERSHIP SUB-COMMITTEE
LISTING SUB-COMMITTEE
Objectives
•
Objectives
•
To consider and recommend to the KLSE
Assist the KLSE Committee in discharging all
Committee applications for Membership of the
matters relating to listing and post-listing functions
Exchange pursuant to the Exchange’s Articles of
of the KLSE in a speedy and efficient manner.
Association
and
Rules,
after
having
duly
interviewed the individual applicant, proposed
Members
Dealing Members and Non-Dealing Members, as
the case may be.
3. Chan Guan Seng
Members
1. Chan Guan Seng (Chairman)
5. Koh Kee Tee
3. Koh Kee Tee
7. Benny Ng Wu Hong
8. Tan Kim Leong
9. Dato’ Ranita Mohd Hussein
89
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Monthly
High, Low And Closing Indices
COMPOSITE
EMAS
High
Low
Closing
High
Low
Closing
1998
July
August
September
October
November
December
478.20
386.44
445.06
424.37
502.15
586.13
385.97
302.91
262.70
360.10
419.78
510.85
402.65
302.91
373.52
405.33
501.47
586.13
119.29
99.70
115.55
111.57
134.56
146.94
99.47
79.55
71.60
95.66
109.81
137.31
102.97
79.55
99.34
106.12
134.56
146.94
1999
January
February
March
April
May
June
618.54
579.55
531.54
674.96
780.29
829.72
561.65
526.10
494.57
527.56
677.93
731.01
591.43
542.23
502.82
674.96
743.04
811.10
157.82
147.47
134.46
166.63
193.34
211.07
142.06
133.79
122.47
131.30
166.08
179.44
151.22
137.34
125.14
166.63
181.47
207.56
Closing
High
Low
Closing
INDUSTRIAL
CONSUMER PRODUCTS
High
Low
1998
July
August
September
October
November
December
945.76
812.40
861.26
828.15
967.23
1,043.52
805.61
639.44
545.69
719.55
811.88
983.50
836.68
639.44
739.10
789.79
967.23
1,043.52
121.86
112.70
107.89
98.88
119.48
127.73
110.01
83.86
73.07
88.47
97.56
120.82
114.72
83.86
90.62
95.19
119.48
127.30
1999
January
February
March
April
May
June
1,132.55
1,054.04
1,001.12
1,145.27
1,337.36
1,418.32
1,012.93
972.14
912.27
962.02
1,143.85
1,258.60
1,074.75
1,009.89
921.39
1,138.18
1,275.14
1,380.58
136.83
129.24
120.88
146.38
164.46
171.76
124.46
120.11
113.58
118.09
145.33
154.26
132.05
122.14
115.18
146.38
157.16
169.52
INDUSTRIAL PRODUCTS
90
High
Low
1998
July
August
September
October
November
December
57.85
49.85
56.48
54.78
65.73
71.51
1999
January
February
March
April
May
June
71.20
66.93
61.79
70.98
79.39
87.13
CONSTRUCTION
Closing
High
Low
Closing
50.72
40.20
35.36
47.22
53.45
65.90
51.77
40.20
48.98
51.88
65.73
67.01
102.61
77.47
115.54
117.24
137.42
147.94
77.94
63.23
56.76
94.60
112.90
131.87
79.80
63.23
101.23
109.10
137.42
136.75
66.23
61.23
55.83
59.58
70.27
73.70
68.36
62.43
56.86
70.98
73.77
86.44
156.42
147.53
130.96
167.43
207.07
241.45
135.47
129.55
111.90
124.55
163.38
190.90
151.03
134.00
117.20
165.22
192.45
237.39
A n n u a l
TRADING/SERVICES
1998
July
August
September
October
November
December
1999
January
February
March
April
May
June
1999
January
February
March
April
May
June
1999
FINANCE
High
Low
Closing
High
75.31
60.29
67.45
66.20
76.86
90.92
60.01
47.36
41.58
56.18
65.27
78.22
62.23
47.36
58.04
63.13
76.60
90.92
2,469.95
1,890.42
2,767.77
2,674.13
3,345.90
3,720.09
1,880.61
1,616.02
1,642.37
2,223.92
2,626.44
3,429.15
1,961.08
1,695.38
2,301.08
2,535.42
3,345.90
3,669.63
96.61
90.11
81.13
102.74
121.06
131.19
86.67
81.57
74.40
80.20
102.31
113.55
91.67
83.32
75.34
101.45
114.51
128.84
4,123.29
3,763.33
3,475.04
4,987.11
5,759.80
6,515.67
3,527.83
3,390.28
3,235.26
3,517.22
4,927.46
5,242.81
3,900.68
3,544.35
3,381.13
4,987.11
5,362.08
6,328.23
PROPERTY
1998
July
August
September
October
November
December
R e p o r t
Low
Closing
PLANTATION
High
Low
Closing
High
583.89
474.13
668.32
629.80
783.99
917.13
474.40
403.42
408.25
535.97
608.76
749.32
486.34
414.61
560.20
587.79
783.99
781.42
1,654.90
1,507.06
1,462.45
1,339.35
1,706.49
1,875.41
1,513.08
1,137.37
1,017.18
1,194.81
1,362.12
1,663.19
1,573.10
1,137.37
1,259.58
1,292.98
1,706.49
1,830.06
827.24
768.09
688.84
812.13
993.68
1,080.31
761.51
687.39
587.87
648.75
789.64
867.29
792.35
704.74
614.22
807.83
863.87
1,064.73
1,896.31
1,805.91
1,626.78
1,714.41
1,819.34
1,802.65
1,750.35
1,613.47
1,386.34
1,478.64
1,682.71
1,690.88
1,853.75
1,659.49
1,426.81
1,686.14
1,713.37
1,766.92
MINING
Low
Closing
SECOND BOARD
High
Low
Closing
High
Low
Closing
1998
July
August
September
October
November
December
170.57
163.75
165.50
152.66
242.60
262.40
144.31
85.90
78.68
113.46
154.60
220.48
159.33
85.90
120.25
143.59
242.60
246.16
98.26
87.94
105.85
104.67
172.07
188.83
88.74
75.64
75.30
90.11
100.90
151.29
89.06
76.83
92.69
98.66
172.07
158.37
1999
January
February
March
April
May
June
237.24
241.98
261.59
269.13
248.34
269.86
221.87
196.39
208.03
223.87
220.42
221.53
222.40
219.47
217.64
228.06
221.49
264.46
172.90
157.18
137.44
156.00
173.42
184.31
154.03
138.56
107.57
125.46
148.16
151.10
163.05
141.59
114.70
151.90
150.99
179.77
SYARIAH*
1999
April
May
June
*
High
Low
Closing
106.56
120.70
127.34
98.10
106.77
113.64
105.97
114.75
125.65
Officially launched on 17 April 1999
91
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Volume,
Va l u e A n d I n d i c e s
KLSE COMPOSITE INDEX
Index
1,500
MONTHLY CLOSING AND 200 DAYS MOVING AVERAGE
JULY 1995 – JUNE 1999
1,200
900
600
300
0
J A S O ND J F M AM J J A S O ND J F M AM J J A S O ND J F M AM J J A S O ND J F M AM J
Composite Index
Composite Index Moving Average
KLSE EMAS INDEX
Index
400
MONTHLY CLOSING AND 200 DAYS MOVING AVERAGE
JULY 1995 – JUNE 1999
350
300
250
200
150
100
50
0
EMAS Index
92
EMAS Index Moving Average
A n n u a l
Volume & Value
(Billions)
R e p o r t
KLSE INDUSTRIAL INDEX, VOLUME & VALUE
MONTHLY CLOSING
JULY 1995 – JUNE 1999
25
Index
(Thousand)
2.5
20
2.0
15
1.5
10
1.0
5
0.5
0
Volume
Volume & Value
(Billions)
Value
1999
0
Index
KLSE CONSUMER PRODUCTS INDEX, VOLUME & VALUE
MONTHLY CLOSING
Index
JULY 1995 – JUNE 1999
6
5
4
3
2
1
0
Volume
Value
Index
93
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Volume & Value
(Billions)
KLSE INDUSTRIAL PRODUCTS INDEX, VOLUME & VALUE
MONTHLY CLOSING
Index
JULY 1995 – JUNE 1999
12
10
8
6
4
2
0
Volume
Volume & Value
(Billions)
Value
Index
KLSE CONSTRUCTION INDEX, VOLUME & VALUE
MONTHLY CLOSING
Index
JULY 1995 – JUNE 1999
4.0
600
3.5
450
3.0
2.5
300
2.0
1.5
150
1.0
0.5
0
Volume
94
Value
Index
0
A n n u a l
Volume & Value
(Billions)
1.6
R e p o r t
KLSE MINING INDEX, VOLUME & VALUE
MONTHLY CLOSING
Index
JULY 1995 – JUNE 1999
800
1.4
700
1.2
600
1.0
500
0.8
400
0.6
300
0.4
200
0.2
100
0
Volume
Volume & Value
(Billions)
10.0
Value
0
Index
KLSE TRADING/SERVICES INDEX, VOLUME & VALUE
MONTHLY CLOSING
Index
JULY 1995 – JUNE 1999
200
7.5
150
5.0
100
2.5
50
0
1999
Volume
Value
0
Index
95
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Volume & Value
(Billions)
KLSE FINANCE INDEX, VOLUME & VALUE
MONTHLY CLOSING
JULY 1995 – JUNE 1999
8
Index
(Thousand)
7
6
5
4
3
2
1
0
Volume
Volume & Value
(Billions)
8
Index
KLSE PROPERTY INDEX, VOLUME & VALUE
MONTHLY CLOSING
JULY 1995 – JUNE 1999
Index
(Thousand)
4.0
7
3.5
6
3.0
5
2.5
4
2.0
3
1.5
2
1.0
1
0.5
0
Volume
96
Value
Value
Index
0
A n n u a l
Volume & Value
(Billions)
R e p o r t
KLSE PLANTATION INDEX, VOLUME & VALUE
MONTHLY CLOSING
JULY 1995 – JUNE 1999
2.8
Index
(Thousand)
3.5
2.4
3.0
2.0
2.5
1.6
2.0
1.2
1.5
0.8
1.0
0.4
0.5
0
Volume
Volume & Value
(Billions)
Value
0
Index
KLSE SECOND BOARD INDEX, VOLUME & VALUE
MONTHLY CLOSING
Index
JULY 1995 – JUNE 1999
28
700
24
600
20
500
16
400
12
300
8
200
4
100
0
1999
Volume
Value
0
Index
97
K u a l a
L u m p u r
S t o c k
E x c h a n g e
New
Listings
From 1 July 1998 to 30 June 1999
Name of New Listings
New listings: 17
Board
Listed Date
Paid-up Capital when
first listed (RM)
1
Abric Berhad
Second Board
11 Jan 1999
30,000,000
2
Ahmad Zaki Resources Berhad
Second Board
9 Jun 1999
30,000,000
3
AKN Technology Berhad
Second Board
2 Sep 1998
25,000,000
4
Astral Supreme Berhad
Second Board
10 Feb 1999
45,000,000
5
Avangarde Resources Berhad
Second Board
13 Aug 1998
35,000,000
6
CB Industrial Product Holding Berhad
Second Board
31 May 1999
28,000,000
7
Chin Well Holdings Berhad
8
Comsa Farms Berhad
9
15 Jun 1999
90,000,000
28 Oct 1998
26,800,000
FW Industries Berhad
Second Board
8 Jul 1998
26,888,000
10
Khind Holdings Berhad
Second Board
12 Aug 1998
30,000,000
11
Malaysian AE Models Holdings Berhad
Second Board
26 May 1999
33,000,000
12
Merge Energy Berhad
Main Board
17 Nov 1998
67,000,000
13
Seacera Tiles Berhad
Second Board
27 May 1999
39,999,000
14
SM Summit Holdings Berhad
Second Board
1 Jun 1999
30,000,000
15
Takaso Resources Berhad
Second Board
16 Mar 1999
23,000,000
16
Unisem (M) Berhad
Main Board
30 Jul 1998
143,000,000
17
Yong Tai Berhad
Second Board
15 Sep 1998
39,900,000
As at 30.6.1999
As at 30.6.1998
No. of listed companies
Total market capitalisation (RM billion)
Total volume (billion units)
Total value (RM billion)
98
Main Board
Second Board
745
728
532.04
285.88
1.7.1998 to
1.7.1997 to
30.6.1999
30.6.1998
72.02
66.84
135.93
253.55
A n n u a l
R e p o r t
1999
Membership
Report
During the year under review (1 July 1998 to 30 June 1999):(1)
Recognition of Three {3} New Member Companies:
No. Member Company
Business Address
Registered Address
Date of
Recognition
1
Utama Securities Sdn Bhd
Lot 2465, Jalan Boulevard Utama
Boulevard Commercial Centre
98000 Miri
Sarawak
Tel: 085-435577
Fax: 085-435511
Lot 363, Jalan Kulas
93400 Kuching
Sarawak
Tel: 082-419296
Fax: 082-424954
01.10.98
2
Affin-UOB Securities
Sdn Bhd
Level 3, Menara Keck Seng
203, Jalan Bukit Bintang
55100 Kuala Lumpur
Tel: 03-2438668
Fax: 03-2433663
55100 Kuala Lumpur
Tel: 03-2438668
Fax: 03-2433663
01.12.98
3
PTB Securities Sdn Bhd
Tingkat 1, 2 & 3
No. 61, Jalan Sultan Ismail
Peti Surat 151
Pejabat Pos Besar
20700 Kuala Terengganu
Terengganu Darul Iman
Tel: 09-6235546
Fax: 09-6235532
3A01, Block B
Menara Amcorp
No. 18, Jalan Persiaran Barat
46050 Petaling Jaya
Selangor Darul Ehsan
Tel: 03-7543030
Fax: 03-7588716
15.01.99
(2)
Three {3} Corporations were admitted to Membership of the Exchange, via the following Member Companies:
No. New Corporate Member
1
2
3
(3)
Utama Capital Sdn Bhd
Affin-UOB Holdings
Sdn Bhd
PTB Securities Holdings
Sdn Bhd
2
Mohamed Nizam
Tun Abdul Razak
Sia Say Yee
(4)
Demise of Member:
No. Name
1
Date of Admission
Affin-UOB Securities Sdn Bhd
01.10.98
01.12.98
15.01.99
Two {2} Natural persons resigned from Membership of the Exchange, viz:
No. Name
1
Name of Member (Corporation)
Datuk Haji Ali Esa
Member Company
Date of Resignation
PB Securities Sdn Bhd
31.07.98
Amsteel Securities (M) Sdn Bhd
03.09.98
Member Company
Date of Demise
Thong & Kay Hian
Securities Sdn Bhd
02.11.98
99
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Membership Report
(5)
Seventeen {17} individuals were appointed as Corporate Nominees, viz:
No. Name
A. Bakar Buyong
2
3
6
Abrizah Dato’ Abdullah
Ahmad Ezzanee Azizan
Mohd Ali Azizan
To’ Puan Siti Norizam
Mohd Yusoff
Abdul Wahab
Nan Abidin
Ng Seng Leong
7
Tan Chong Pen
Mayban Securities (Holdings)
Sdn Bhd
Jardine Fleming (Malaysia)
Services Sdn Bhd
Smith Zain (Malaysia) Sdn Bhd
8
Ban Chee Kheong
Datavest Sdn Bhd
9
Richard Anthony Magides
RHB Capital Berhad
10
11
12
Ang Poo Guan
Ismail Nik Man
Yong Yoong Fa
13
Lee Eng Hua
Malpac Holdings Berhad
PTB Securities Holdings Sdn Bhd
Public Consolidated
Holdings Sdn Bhd
Pakatan Canggih Sdn Bhd
14
15
16
17
Lim Poh Ho
Najmiyah Abd Hasan
Chang Tuck Chee
@ Philip Chang
Rashid Ismail
Carta Bintang Sdn Bhd
Rentak Wira Sdn Bhd
Arab-Malaysian Securities
Holding Sdn Bhd
MIDF Sisma Holdings Sdn Bhd
(6)
Eleven {11} individuals resigned/ceased as Corporate Nominees, viz:
5
No. Name
BBMB Securities (Holdings)
Sdn Bhd
Straits Asset Holdings Sdn Bhd
Member Company
1
4
Affin-UOB Holdings Sdn Bhd
Corporate Member
1
2
3
Looi Keng Hwa
Tay Thin Hock
Lee Tak Suan
Olympia Industries Bhd
Pengkalen Capital Bhd
Datavest Sdn Bhd
4
5
Patrick Soh Kim Ngiap
Abdul Wahab
Nan Abidin
Baharil Ihzan Hashim
KAF-Seagroatt &
Campbell Berhad
Mayban Securities (Holdings)
Sdn Bhd
Apex Equity Holdings Berhad
SimeSecurities Holdings Sdn Bhd
6
7
8
9
Ng Seng Leong
Asnah Ahmad
Abdullah Abd
Karim Bajerai
10 Lee Siang Korn
@ Lee Siang Chin
11 Chia Kam Pooi
100
Corporate Member
Holding Sdn Bhd
RHB Capital Berhad
Date of
Admission
BBMB Securities Sdn Bhd
23.07.98
Straits Securities Sdn Bhd
01.10.98
12.11.98
Sdn Bhd
Mayban Securities
Sdn Bhd
JF Apex Securities Bhd
01.12.98
08.12.98
15.12.98
Smith Zain Securities
Sdn Bhd
Amsteel Securities (M)
Sdn Bhd
Rashid Hussain
Securities Sdn Bhd
Malpac Securities Sdn Bhd
28.12.98
Kota Bharu Securities
Sdn Bhd
SJ Securities Sdn Bhd
UT Securities Sdn Bhd
Arab-Malaysian
Securities Sdn Bhd
MIDF Sisma
Securities Sdn Bhd
04.03.99
Member Company
Jupiter Securities Sdn Bhd
Kimara Equities Sdn Bhd
Amsteel Securities
(M) Sdn Bhd
KAF-Seagroatt & Campbell
Securities Sdn Bhd
Mayban Securities Sdn Bhd
JF Apex Securities Bhd
SimeSecurities Sdn Bhd
Sdn Bhd
Sdn Bhd
Rashid Hussain Securities
Sdn Bhd
29.12.98
04.01.99
07.01.99
15.01.99
11.02.99
14.04.99
01.05.99
01.06.99
16.06.99
Date of
Resignation
16.07.98
17.08.98
11.09.98
06.10.98
30.10.98
08.12.98
15.12.98
16.12.98
04.03.99
01.04.99
31.05.99
A n n u a l
(7)
Corporate Member
Member Company
Date of
Appointment
TA Enterprise Bhd
TA Enterprise Bhd
Botly Securities Sdn Bhd
10.07.98
10.07.98
3
Leong Kam Weng
Chang Tuck Chee @
Philip Chang
Chan Gak Keong
11.07.98
4
Dato’ Kamarudin Abu
Smith Zain (Malaysia) Sdn Bhd
5
6
7
8
9
Olympia Industries
Utama Capital Sdn
Utama Capital Sdn
Utama Capital Sdn
Utama Capital Sdn
11
12
Looi Kheng Hwa
Nik Hashim Nik Yusoff
Haji Iskandar Haji Razali
Abdul Rashid Haji Aziz
Datuk Haji Abdul Aziz
Haji Hussain
Vaseehar Hassan
Abdul Razack
Francis Ng Hee Chang
Yu Choong Cheong
Sdn Bhd
Smith Zain Securities
Sdn Bhd
Jupiter Securities Sdn
Utama Securities Sdn
13
Gn Hiang Meng
14
Gen. (Rtd) Dato’
Ismail Hassan
Faisol Zulkifli
10
15
16
17
18
19
20
21
22
23
24
25
26
1999
Twenty-six {26} individuals were appointed as Non-Executive Directors, viz:
No. Name
1
2
R e p o r t
Dato’ Mazlan @
Mohd Nanri Hashim
Raja Halinuddin
Raja Halid
Mat Zaid Ibrahim
Abdul Aziz
Mahmoud Salim
Seah Sen Leang
Dato’ Nik Mohd Sidek
Nik Abu Bakar
Ho Chun Fuat
Lee Siang Korn
@ Lee Siang Chin
Khet Kok Yin
Dato’ Rastam Abdul Hadi
Khadijah Abdul Khalid
Berhad
Bhd
Bhd
Bhd
Bhd
24.08.98
Bhd
Bhd
Bhd
Bhd
Bhd
28.08.98
01.10.98
01.10.98
01.10.98
01.10.98
01.10.98
01.10.98
01.12.98
Securities Holdings Bhd
Sdn Bhd
Sdn Bhd
Sdn Bhd
Securities Sdn Bhd
15.01.99
15.01.99
15.01.99
Kretam Holdings Berhad
InnoSabah Securities
Sdn Bhd
Halim Securities Sdn Bhd
25.03.99
Sdn Bhd
Pengkalen Securities Sdn Bhd
Pengkalen Securities Sdn Bhd
Kuala Lumpur City
Securities Sdn Bhd
31.03.99
01.04.99
Uniphoenix Corporation Berhad
Holding Sdn Bhd
Pengkalen Capital Berhad
Pengkalen Capital Berhad
Assedina Sdn Bhd
01.12.98
01.12.98
23.12.98
15.01.99
31.03.99
12.04.99
12.04.99
27.04.99
101
K u a l a
L u m p u r
S t o c k
E x c h a n g e
Membership Report
(8)
Twenty-three {23} individuals resigned as Non-Executive Directors, viz:
No. Name
1
Zulkifli Abdul Malek
2
Chong Ah Wah @
Chong Kon Kooi
Haji Haris Abdul Hamid
3
4
5
6
7
8
9
10
11
12
13
14
Ang Poo Guan
Tan Sri Mohamed
Ngah Said
Lynette Mohamed
Dato’ Yeoh Chin Kee
Member Company
Premier Capital Holdings
Sdn Bhd
Sdn Bhd
Johor Capital Holdings Sdn Bhd
Premier Capital Securities
Sdn Bhd
Premier Capital Securities
Sdn Bhd
PJB Pacific Securities
Sdn Bhd
Jupiter Securities Sdn Bhd
Peninsula Securities Sdn Bhd
Olympia Industries Berhad
Pan Pacific Asia Berhad
TA Enterprise Berhad
TA Enterprise Berhad
TCL Premier Holdings Berhad
19.09.98
06.10.98
10.10.98
07.12.98
07.12.98
14.01.99
03.03.99
K & N Kenanga Berhad
01.04.99
BBMB Securities (Holdings)
Sdn Bhd
Assedina Sdn Bhd
BBMB Securities Sdn Bhd
17.04.99
Kuala Lumpur City
Securities Sdn Bhd
SimeSecurities Sdn Bhd
Sdn Bhd
Sdn Bhd
Sdn Bhd
InnoSabah Securities
Sdn Bhd
MGI Securities Sdn Bhd
26.04.99
Datuk Wong Boon Loong
Kretam Holdings Berhad
22
Mohamad Zubairi
Ahmad Rubian
Gn Hiang Meng
Malaysian General Investment
Corporation Berhad
Affin-UOB Holdings Berhad
23
27.08.98
21
19
29.07.98
Public Consolidated
Holdings Sdn Bhd
K & N Kenanga Holdings Berhad
Malpac Holdings Berhad
17
18
29.07.98
31.12.98
20
16
Date of
Resignation
OCBC Securities
(Melaka) Sdn Bhd
Malpac Securities Sdn Bhd
David Alexander
Cospatrick Douglas-Home
Datuk Alladin
Mohd Hashim
Dato’ Osman
Mohd Zain
Michael Wong Kuan Lee
Dato’ Muhammad
Ali Hj Hashim
Tan Sri Datuk (Dr)
Arshad Ayub
Zainah Mustafa
15
102
Ahmad Farid Haji Omar
Patrick Soh Kim Ngiap
Paw Swee Choo
Leong Kam Weng
Chang Tuck Chee
@ Philip Chang
Elizabeth Sam
Corporate Member
SimeSecurities Holdings Sdn Bhd
Sdn Bhd
07.01.99
14.01.99
29.04.99
07.05.99
07.05.99
07.05.99
03.05.99
15.05.99
19.05.99
A n n u a l
(9)
2
3
1999
Changes of Member Companies’ Name:
No. Member Company
1
R e p o r t
United Traders
Securities Sdn Bhd
Faiz Securities Sdn Bhd
Capitalcorp Securities
Sdn Bhd
New Name
Effective Date
UT Securities Sdn Bhd
06.01.99
Kota Bharu Securities Sdn Bhd
Fima Securities Sdn Bhd
30.01.99
20.05.99
(10) Changes of Member Companies’ Business Address:
No. Member Company
Business Address
Effective Date
1
27th Floor
Bangunan Public Bank
No. 6, Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel: 03-2013011
Fax: 03-2012533
02.02.99
2
JB Securities Sdn Bhd
Level 6, 7 & 8
Menara Sarawak Enterprise
No. 5, Jalan Bukit Meldrum
80300 Johor Bahru
Johor Darul Takzim
Tel (General): 07-3332000
Tel (Dealing): 07-3332800
Fax:
07-3354728
01.03.99
3
M & A Securities Sdn Bhd
M & A Building
52A, Jalan Sultan Idris Shah
30000 Ipoh, Perak Darul Ridzuan
Tel: 05-2419800
Fax: 05-2551015
28.06.99
103
K u a l a
L u m p u r
S t o c k
E x c h a n g e
KLSE
Members
MEMBER COMPANY
ARAB-MALAYSIAN
SECURITIES
SDN BHD
104
as at 30 June 1999
FEDERAL TERRITORY OF KUALA LUMPUR
15th Floor
Bangunan Arab-Malaysian
No. 55, Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03-2382788/99 (General)
03-2321866/99 (Dealing)
Fax: 03-2383162
03-2303175
(General & Dealing)
Telex: AMSEC MA 31796
MA 30869
Members:
Haji Ismail bin Abdullah
Wong Tee Hing @
Wong Tee Eng
Arab-Malaysian
Securities Holdings
Sdn Bhd
Corporate Nominees:
AFFIN-UOB
SECURITIES
SDN BHD
55100 Kuala Lumpur
Tel: 03-2438668
Fax: 03-2433663
Member:
Affin-UOB Holdings
Sdn Bhd
BBMB SECURITIES
SDN BHD
Level 2, 3 & 4
Member:
Menara Olympia
BBMB Securities
Letter Box No. 2
(Holdings) Sdn Bhd
No. 8 Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03-2019900 (General)
Fax: 03-2019819 (Finance)
03-2025087 (Dealing)
Telex: MA36804 BBSEC (Finance)
Corporate Nominees:
Hassan bin Jaafar
A. Bakar Buyong
BIMB SECURITIES
SDN BHD
1st & 2nd Floor
Podium Block
Bangunan AMDB
No. 1, Jalan Lumut
50400 Kuala Lumpur
Tel: 03-4433533 (15 lines)
Fax: 03-4413433/4412622
03-4414159
Member:
BIMB Securities
(Holdings) Sdn Bhd
Corporate Nominee:
Dato’ Dr Abdul Halim
bin Haji Ismail
CIMB SECURITIES
SDN BHD
9th Floor, Commerce Square
Jalan Semantan
Damansara Heights
50940 Kuala Lumpur
Tel: 03-2532288
Fax: 03-2535533
Telex: MA 30991 CIMSEC
Member:
CIMB Holdings
Sdn Bhd
Corporate Nominees:
Mohd Shukri bin Hussin
Gan Soo Jin
Kanajan a/l Samypullay
Mustafa bin Hj Mohd Nor
Ahmad bin Bachok
Chang Tuck Chee @
Philip Chang
Corporate Nominee:
To’ Puan Siti Norizam
bt Mohd Yusoff
A n n u a l
R e p o r t
FIMA SECURITIES
SDN BHD
Level 1 & 2, Block G Central
Pusat Bandar Damansara
Damansara Heights
50490 Kuala Lumpur
Tel: 03-2549966
Fax: 03-2548595
Telex: MA 28040
Member:
Capitalcorp Holdings
Sdn Bhd
Corporate Nominee:
Mohd Yusof bin
Pandak Yatim
HLG SECURITIES
SDN BHD
21st Floor, Wisma HLA
Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03-2022778
03-2452998 (General)
Fax: 03-2022390
Telex: MA 31097, MA 33802
Member:
HLG Capital Bhd
Corporate Nominees:
Omar bin Zolkifli
Lee Wai Kok
INTER-PACIFIC
SECURITIES
SDN BHD
Level 7, Menara Shahzan Insas
No. 30, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03-2441888
Fax: 03-2441686
Telex: MA 31469 IPSEC
Member:
Inter-Pacific Capital
Sdn Bhd
Corporate Nominees:
Pang Poh Ping
Abdul Majid bin Hj
Mohd Harun
JUPITER
SECURITIES
SDN BHD
Level 7, 8 & 9
Menara Olympia
50200 Kuala Lumpur
Fax: 03-2042288
Telex: MA 33713 (JUPSSB)
Members:
Olympia Industries Bhd
Mohd Saleh bin
Md Yusof
Lo Kok Kee
Corporate Nominee:
Yee Yoke Leong
K & N
KENANGA BHD
801, 8th Floor
Pernas International Building
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03-2629080, 2621490
(30 lines)
Fax: 03-2614990, 2635927
Telex: KEN MA 35231, 31276
(Admin)
Member:
K & N Kenanga
Holdings Bhd
Corporate Nominees:
Tengku Noor Zakiah
binti Tengku Ismail
Haji Abdul Aziz
bin Hashim
Dato’ Ramli bin Ismail
KAF-SEAGROATT
& CAMPBELL
SECURITIES
SDN BHD
26th-30th Floor, Menara Weld
50200 Kuala Lumpur
Tel: 03-2081600
Fax: 03-2323464
Telex: SEAGRO MA 32816
Member:
Corporate Nominee:
KAF-Seagroatt &
Ahmad bin Kadis
Campbell Holdings Bhd
1999
105
K u a l a
L u m p u r
S t o c k
KLSE Members
106
E x c h a n g e
as at 30 June 1999
KUALA LUMPUR
CITY SECURITIES
SDN BHD
3.07, Level 3
Bangunan Angkasaraya
Jalan Ampang
50450 Kuala Lumpur
Tel: 03-2449322
Fax: 03-2448099
Member:
Assedina Sdn Bhd
Corporate Nominee:
Mohd Nasir bin Ali
LEONG & CO
SDN BHD
Level 18, Wisma Cyclecarri
No. 288, Jalan Raja Laut
50350 Kuala Lumpur
Tel: 03-2928899 (Admin)
Fax: 03-2949088 (Admin)
Telex: SHABON MA 31363
Members:
Leong Kun Kay
Yu Kwei Sim
Anne Leong Sau Leng
Leong Yuen Leng
Peter Leong Tuck Leng
MAYBAN
SECURITIES
SDN BHD
30th Floor, Menara Maybank
No. 100, Jalan Tun Perak
50050 Kuala Lumpur
Tel: 03-2323822/33
Fax: 03-2323807
Telex: MA 20294 MAYSEC
Member:
Mayban Securities
(Holdings) Sdn Bhd
Corporate Nominee:
Abdul Wahab bin
Nan Abidin
MGI SECURITIES
SDN BHD
1st & 2nd Floor, Wisma MGIC
No. 38, Jalan Dang Wangi
50100 Kuala Lumpur
Fax: 03-2930628 (General)
Telex: MA 33186 CBSB
Member:
Malaysian General
Investment
Corporation Bhd
Corporate Nominee:
No appointment as at
30.6.1999
MIDF SISMA
SECURITIES
SDN BHD
17th & 18th Floor
Empire Tower
No. 182, Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-2668888
Fax: 03-2669999
Telex: MIDFS MA 32827
Member:
MIDF Sisma Holdings
Sdn Bhd
Corporate Nominees:
Datin Mariam
Prudence bte Yusof
Rashid bin Ismail
OSK SECURITIES
BHD
10th Floor, Plaza OSK
Jalan Ampang
50450 Kuala Lumpur
Tel: 03-2624388
Fax: 03-2618254
Member:
OSK Holdings Bhd
Corporate Nominees:
Dato’ Nik Mohamed
bin Nik Yahya
Chin Cheng Mei
Wong Chong Kim
Ong Leong Huat @
Wong Joo Hing
Nik Halim @ Nik Ghazi
bin Haji Nik Daud
A n n u a l
R e p o r t
PB SECURITIES
SDN BHD
27th Floor
Bangunan Public Bank
50000 Kuala Lumpur
Tel: 03-2013011
Fax: 03-2012533
Member:
Public Consolidated
Holdings Sdn Bhd
Corporate Nominee:
Yong Yoong Fa
PENGKALEN
SECURITIES
SDN BHD
1st Floor
Menara Pengkalen
No. 2, Jalan Changkat Ceylon
50200 Kuala Lumpur
Tel: 03-2448055 (10 lines)
Fax: 03-2448082
Telex: MA 31186
Members:
Noorjehan Rahima bt
Abdul Hamid Jumat
Leong Kok Wah
Corporate Nominee:
RASHID HUSSAIN
SECURITIES
SDN BHD
Level 1, 2, 3 & 5
Tower One, RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel: 03-9852233
Fax: 03-9855522
Telex: MA 31790 RHSSB
Member:
RHB Capital Berhad
Corporate Nominees:
Tan Sri Dato’ Abdul
Rashid bin Haji Hussain
Tajul Ariffin bin
Mohd Tahir
Saiful Bahri bin Zainuddin
Richard Anthony Magides
SIMESECURITIES
SDN BHD
21st Floor
Bangunan Sime Bank
50000 Kuala Lumpur
Tel: 03-2749288/778
Fax: 03-2749907
03-2749908 (Trading)
Telex: MA 20288 SIMESEC
Member:
SimeSecurities
Holdings Sdn Bhd
Corporate Nominee:
No appointment as at
30.6.1999
TA
SECURITIES BHD
Menara TA One
No. 22, Jalan P Ramlee
50250 Kuala Lumpur
Tel: 03-2321277
Fax: 03-2322369
Telex: TASEC MA 30848
Member:
TA Enterprise Bhd
Corporate Nominees:
Datuk Tiah Thee Kian
Dato’ Mahmud bin
Haji Ali
Datin Tan Kuay Fong
Teh Ghee Kok
Ignatius Luke Jr. Tan
Keng Hee
MEMBER COMPANY
JF APEX
SECURITIES BHD
1999
Loo Kok Yuen
SELANGOR DARUL EHSAN – KAJANG
3rd Floor, Wisma Apex
145A-C, Jalan Bukit
43000 Kajang
Tel: 03-8361118
Fax: 03-8374532
(Admin/Acc)
Telex: MA 31617 CHLICK
Members:
Apex Equity
Holdings Bhd
Jardine Fleming (M)
Services Sdn Bhd
Corporate Nominees:
Chan Guan Seng
Kharul Hurri bin
Khalid Abbas
Ng Seng Leong
107
K u a l a
L u m p u r
S t o c k
KLSE Members
MEMBER COMPANY
AMSTEEL
SECURITIES (M)
SDN BHD
MEMBER COMPANY
as at 30 June 1999
SELANGOR DARUL EHSAN – KLANG
1st, 2nd, 3rd & 4th Floors
Wisma Amsteel Securities
No. 1, Lintang Pekan Baru
Off Jalan Meru
41050 Klang
Tel: 03-3439999 (28 lines)
Fax: 03-3442343/3442350
Members:
Datavest Sdn Bhd
Corporate Nominees:
Ban Chee Kheong
Ee Beng Guan
Dato’ Hj Abdul Rahim
bin Mohd. Ibrahim
SELANGOR DARUL EHSAN – PETALING JAYA
HALIM
SECURITIES
SDN BHD
(Cessation of dealing
activities by the
Securities Commission
on 8 June 1998)
No. 68, Jalan Selangor (52/6)
P O Box 561
46770 Petaling Jaya
Tel: 03-7555777
Fax: 03-7554612
Members:
Uniphoenix
Corporation Bhd
Tengku Abdul Halim
Alhaj Ibni Almarhum
Sultan Ibrahim
Hassim bin Haji Baba
Chua Hock Seng
Loo Khee Kwong
Mohd Yusof bin
Mohd Rashidi
Corporate Nominee:
No appointment
as at 30.6.1999
MOHAIYANI
SECURITIES
SDN BHD
1st, 2nd & 3rd Floor
Plaza Damansara Utama
No. 2, Jalan SS21/60
47400 Petaling Jaya
Tel: 03-7197345 (6 lines)
Fax: 03-7181357
Members:
Mohaiyani bt
Shamsudin
Abdul Hamid bin
Abdul Samad
Nik Aminaldin bin
Nik Jaafar
Abdul Ghani bin Ahmad
Asia Equity (Malaysia)
Holdings Ltd
Corporate Nominee:
Member:
Corporate Nominees:
Ahmad Azman bin
Abdul Manaf
Abdul Rauf bin Ramli
Lim Poh Ho
SJ SECURITIES
SDN BHD
108
E x c h a n g e
Level 3, Holiday Villa
No. 9, Jalan SS12/1
Subang Jaya
47500 Petaling Jaya
Telex: SJSEC MA 36157
Chin Kok Keng
A n n u a l
MEMBER COMPANY
OMEGA
SECURITIES
SDN BHD
(Dealer’s licence
revoked by the
on 5 June 1998)
MEMBER COMPANY
R e p o r t
SELANGOR DARUL EHSAN – SHAH ALAM
15th Floor
Plaza Perangsang
Persiaran Perbandaran
40990 Shah Alam
Tel: 03-5594900 (20 lines)
Fax: 03-5599682 (Admin)
03-5597723
Telex: AT SSB MA 39863
Member:
Omega Holdings Bhd
Corporate Nominees:
Abdullah bin Ayub
Yeo Lee Hoe
Tiah Thee Peng
JOHOR DARUL TAKZIM – JOHOR BAHRU
ENG SECURITIES
SDN BHD
No. 95, Jalan Tun Abdul Razak
80000 Johor Bahru
Johor Darul Takzim
Tel: 07-2231211/2238212
Fax: 07-2246266
Member:
Inter-Pacific Capital
Sdn Bhd
Corporate Nominees
Lim Khuan Eng
Mohd Fuad Foo bin
Abdullah
JB SECURITIES
SDN BHD
Suite 8.2, Level 8
Menara Sarawak Enterprise
No. 5, Jalan Bukit Meldrum
80300 Johor Bahru
Johor Darul Takzim
Tel: 07-3332800 (Dealing)
07-3332000 (General)
Fax: 07-3348259
Telex: JBSEC MA060166
Members:
Idris bin Osman
Dynamic Pearl Sdn Bhd
Corporate Nominees:
PENINSULA
SECURITIES
SDN BHD
Level 2, Menara Pelangi
Jalan Kuning, Taman Pelangi
80400 Johor Bahru
Johor Darul Takzim
Fax: 07-3343770
Member:
Pan Pacific Asia Bhd
Corporate Nominees:
Er Chin Her @ Er Ee
Haji Rahmat bin Awi
PJB PACIFIC
SECURITIES
SDN BHD
Podium 2A & 3
Menara Ansar
No. 65, Jalan Trus
80000 Johor Bahru
Johor Darul Takzim
Tel: 07-2222692/2768787
Fax: 07-2765201
Member:
Johor Capital Holdings
Sdn Bhd
Corporate Nominee:
Johari bin Hassan
MEMBER COMPANY
KESTREL
SECURITIES
SDN BHD
1999
Wan Malek Shahril
bin Wan Omar
Yap Kai Keng
JOHOR DARUL TAKZIM – MUAR
57, 59 & 61, Jalan Ali
84000 Muar
Johor Darul Takzim
Tel: 06-9532222/9531222
Fax: 06-9516660
Member:
Tongkah Holdings Bhd
Corporate Nominee:
Leow Woon Kong @
Leow Woon Kuang
109
K u a l a
L u m p u r
S t o c k
KLSE Members
MEMBER COMPANY
SOUTH JOHOR
SECURITIES
SDN BHD
MEMBER COMPANY
ALOR SETAR
SECURITIES
SDN BHD
MEMBER COMPANY
UPEN SECURITIES
SDN BHD
MEMBER COMPANY
KOTA BHARU
SECURITIES
SDN BHD
MEMBER COMPANY
MALACCA
SECURITIES
SDN BHD
110
E x c h a n g e
as at 30 June 1999
JOHOR DARUL TAKZIM – BATU PAHAT
3rd Floor, Penggaram Complex
No. 1, Jalan Abdul Rahman
83000 Batu Pahat
Johor Darul Takzim
Tel: 07-4342282 (Admin)
Fax: 07-4327982
Telex: MA 65310 SJSSB
Member:
South Johor Equities
Sdn Bhd
Corporate Nominees:
Koh Kee Tee
Ng Say Keow
Chan Chau Yang
Soh Kim Eng
Husni bin Hussain
KEDAH DARUL AMAN
Lot T-30, 2nd Floor
Wisma PKNK
Jalan Sultan Badlishah
05000 Alor Setar
Kedah Darul Aman
Tel: 04-7317088
Fax: 04-7318428
Members:
Mansor bin Hussin
Kelanamas Capital
Sdn Bhd
Corporate Nominee:
Dato’ Dr Haji Sallehuddin
bin Kassim
PERLIS INDERA KAYANGAN
2nd Floor, Podium Block
Bangunan KWSP
01000 Kangar
Perlis Indera Kayangan
Tel: 04-9765200
Fax: 04-9760411
Members:
Abang Zainal Abidin
bin Abang Ahmad
Amal Bakti Sdn Bhd
Corporate Nominee:
Wong Kum Piew
KELANTAN DARUL NAIM
No. 298, Jalan Tok Hakim
15000 Kota Bharu
Kelantan Darul Naim
Member:
Pakatan Canggih
Sdn Bhd
MELAKA
No. 1, 3 & 5, Jalan PPM 9
Plaza Pandan Malim
Business Park, Balai Panjang
75250 Melaka
Tel: 06-3371533 (8 lines)
Fax: 06-3371550/3371577
Members:
Sim Swee Tin
Sim Cheng Khuan
Zainuddin bin Haji Din
Corporate Nominee:
Lee Eng Hua
A n n u a l
R e p o r t
OCBC SECURITIES
(MELAKA)
SDN BHD
579, 580 – 581A & B
Taman Melaka Raya
75000 Melaka
Fax: 06-2844861 (Admin)
Telex: OSM MA 062658
Member:
TCL Premier
Holdings Bhd
Corporate Nominees:
Jimmy Tan Soo Sum
Yoichiro Sano
Loh Teck Yen
Latiff bin Datuk
Tamby Chik
Chow Yook Hey @
Chow Yoke Pui
STRAITS
SECURITIES
SDN BHD
Lot 9 & 10, 1st Floor
Bangunan Tabung Haji
Jalan Banda Kaba
75740 Melaka
Tel: 06-2833622
Fax: 06-2833771
Telex: MA 62855
Member:
Straits Asset Holdings
Sdn Bhd
Corporate Nominees:
Goh Choon Hock
Ahmad Ezzanee
Azizan bin Mohd
Ali Azizan
MEMBER COMPANY
NEGERI SEMBILAN DARUL KHUSUS
KIMARA
EQUITIES
SDN BHD
2nd, 9th & 10th Floor
Bangunan Yayasan Negeri
Sembilan, Jalan Yam Tuan
70000 Seremban
Negeri Sembilan Darul Khusus
06-7638999
Fax: 06-7633889
Telex: KIMARA MA 63989
Member:
Corporate Nominee:
Elias bin Abdullah Ng
MALPAC
SECURITIES
SDN BHD
No. 19 – 21, Jalan Kong Sang
70000 Seremban
Negeri Sembilan Darul Khusus
Tel: 06-7623131 (20 lines)
Fax: 06-7620537
Telex: CTSEC MA 63951
Members:
Chew Loy Chee
Gan Teck Chong @
Gan Kwan Chong
Tan Chon Sing @
Tan Kim Tieng
Malpac Holdings Bhd
Corporate Nominee:
MEMBER COMPANY
WK SECURITIES
SDN BHD
1999
Ang Poo Guan
PAHANG DARUL MAKMUR
A-397, A-399 & A-401
Taman Sri Kuantan III
Jalan Beserah
25300 Kuantan
Pahang Darul Makmur
Tel: 09-5660800 (Admin)
09-5660700 (Trading)
Fax: 09-5660801
Member:
Omega Holdings Bhd
Corporate Nominee:
Zainal bin Ahmad
111
K u a l a
L u m p u r
S t o c k
KLSE Members
MEMBER COMPANY
E x c h a n g e
as at 30 June 1999
PENANG
A A ANTHONY
& CO SDN BHD
No. 41-1-1 & 41-2-1
Jalan Cantonment
10250 Penang
Fax: 04-2268788
Members:
Lim Tiong Chin
Haji Abdul Rahman
bin Haji Ahmad
Lim Teong Khoon
HWANG-DBS
SECURITIES BHD
Levels 2, 3, 4, 7 & 8
Wisma Sri Pinang
No. 60, Green Hall
10200 Penang
Tel: 04-2636996 (50 lines)
Fax: 04-2639597
Telex: HWANG MA 40909
Member:
Hwang-DBS (Malaysia)
Berhad
Corporate Nominees:
Tunku Nadzaruddin
ibni Tuanku Ja’afar
Tan Poh Chye
Hwang Lip Teik
Shah Alam Branch
16th, 18th-20th Floor, Plaza Masalam
No. 2, Jalan Tengku Ampuan Zabedah
E9/E, Section 9
40100 Shah Alam
Tel: 04-5533288
Fax: 04-5538288
112
KE-ZAN
SECURITIES
SDN BHD
Wisma Ke-Zan
No. 64, Bishop Street
10200 Penang
Tel: 04-2634222
Fax: 04-2622299/2618011
Telex: MA 40323 KE ZAN
Member:
Ke-Zan Holdings
Sdn Bhd
Corporate Nominees:
Md Yusoff bin Dato’ Md Ali
Mohd Idris bin Ahmad Jais
SMITH ZAIN
SECURITIES
SDN BHD
7th & 8th Floor
Menara PSCI, No. 39
Jalan Sultan Ahmad Shah
10050 Penang
Tel: 04-2283355
Fax: 04-2299513
(Finance & Accounts)
04-2297108 (Dealing)
04-2295692 (Settlement)
Telex: MA 041341
Member:
Smith Zain (Malaysia)
Sdn Bhd
Corporate Nominees:
Mun Kong Hoe
Tan Chong Pen
Tan Giap How
SOON THEAM
SECURITIES
SDN BHD
No. 111, Jalan Macalister
10400 Penang
Tel: 04-2281868 (Pilot Line)
Fax: 04-2263912
Members:
Yeo Khee Nam
Yeo Khee Bee
Ahmad Mydin
Yeo Khee Aik
A n n u a l
THONG &
KAY HIAN
SECURITIES
SDN BHD
Level 5 & 6
Wisma Sri Pinang
No. 60 Green Hall
10200 Penang
Tel: 04-2635481
Fax: 04-2635741
Telex: MA 40675 THONG
UT SECURITIES
SDN BHD
12th Floor
Member:
Bangunan Mayban Trust
Rentak Wira Sdn Bhd
No. 3, Penang Street
10200 Penang
Tel: 04-2626644/6660 (General)
Fax: 04-2617312
MEMBER COMPANY
MERCURY
SECURITIES
SDN BHD
MEMBER COMPANY
Members:
Thong Wai Loen
Thong Yue Leong
Kay Hian (M) Holdings
Sdn Bhd
R e p o r t
1999
Corporate Nominee:
Thong Miew Peng
Corporate Nominees:
Frederick Ng Kweng Chan
Lee Seong Chong
Najmiyah bt Abd Hasan
BUTTERWORTH
Ground, 1st, 2nd & 3rd Floor
Wisma UMNO
Lorong Bagan Luar Dua
12000 Seberang Perai
Butterworth, Penang
Tel: 04-3322123
Fax: 04-3231813/3312195
Members:
Chew Sing Guan
Mat Zuki bin Mahmud
PERAK DARUL RIDZUAN – IPOH
BOTLY SECURITIES
SDN BHD
1st Floor, Plaza Teh Teng Seng
No. 227, Jalan Kampar
30250 Ipoh
Perak Darul Ridzuan
Tel: 05-2531313 (12 lines)
Fax: 05-2557950
05-2536785
Member:
TA Enterprise Bhd
Corporate Nominees:
Ee Beng Wat
Too Hai Ong
KIN KHOON & CO
SDN BHD
A23 – A29
Jalan Dato’ Tahwil Azhar
Wisma Kota Emas
30300 Ipoh
Perak Darul Ridzuan
Tel: 05-2543311(General)
Fax: 05-2545567
Member:
Asian Pac Holdings Bhd
Corporate Nominee:
Abdul Molok bin
Abu Bakar
M & A SECURITIES
SDN BHD
M & A Building
No. 52A, Jalan Sultan Idris Shah
30000 Ipoh
Perak Darul Ridzuan
Tel: 05-2419800 (Trading)
Fax: 05-2551015 (Trading)
Members:
Choo Sen Yoong
Thong Kok Yoon
Insas Bhd
Corporate Nominee:
No appointment
as at 30.6.1999
113
K u a l a
L u m p u r
S t o c k
KLSE Members
as at 30 June 1999
MBf NORTHERN
SECURITIES
SDN BHD
No. 71, Jalan Lim Bo Seng
30300 Ipoh
Perak Darul Ridzuan
Tel: 05-2548999/2552887
Fax: 05-2412716
Member:
MBf Capital Bhd
Corporate Nominee:
Chong Sem Shoong
PHILEO ALLIED
SECURITIES
SDN BHD
Wisma Phileo
No. 63, Persiaran Greenhill
30450 Ipoh
Perak Darul Ridzuan
Tel: 05-2558233
Fax: 05-2534333
Telex: MA 44151 PPSEC
Member:
Phileo Allied Berhad
Corporate Nominees:
Ahmad bin Abdullah
Din bin Mohd Hassan
PREMIER CAPITAL
SECURITIES
SDN BHD
Wisma Premier Capital
No. 21 Jalan Seenivasagam
30450 Ipoh
Perak Darul Ridzuan
Tel: 05-2415100 (5 lines)
Fax: 05-2553903
Member:
Sdn Bhd
Corporate Nominees:
Fung Yan Khai
Wong Kim Lin @
Wong Kim Ling
SBB SECURITIES
SDN BHD
51-53 Persiaran Greenhill
30450 Ipoh
Perak Darul Ridzuan
Fax: 05-2537666
Telex: MA 44150 SBBSEC
Members:
Raja Puan Sri Dato’
Noora Ashikin bt
Raja Abdullah
SBB Capital Markets
Sdn Bhd
Corporate Nominees:
MEMBER COMPANY
TAIPING
SECURITIES
SDN BHD
MEMBER COMPANY
FA SECURITIES
SDN BHD
114
E x c h a n g e
Lee Seang Seng
Lau Yew Kong
PERAK DARUL RIDZUAN – TAIPING
No. 21, Jalan Stesen
34000 Taiping
Perak Darul Ridzuan
05-8061188 (Trading)
05-8063388 (Trading)
Members:
Durapark Corporation
Sdn Bhd
Muhammad Nadzri
bin Hamzah
Corporate Nominees:
Ahmad bin Haji Ibni Hajar
Harris bin Haji Ismail
TERENGGANU DARUL IMAN
3rd Floor, Wisma UMNO
Jalan Masjid Abidin
Tel: 09-6238128
Fax: 09-6238129
Member:
FA Peninsular Bhd
Corporate Nominee:
Isa bin Mustapha
A n n u a l
PTB SECURITIES
SDN BHD
No. 61 Jalan Sultan Ismail
Peti Surat 151
Pejabat Pos Besar
Tel: 09-6235546
09-6235532
MEMBER COMPANY
R e p o r t
Member:
PTB Securities Holdings
Sdn Bhd
Corporate Nominee:
Ismail bin Nik Man
SARAWAK
SARAWAK
SECURITIES
SDN BHD
Wisma Mahmud
Jalan Sungai Sarawak
93100 Kuching, Sarawak
Fax: 082-338222
Telex: SASEC MA 70080
Member:
CMS Capital Sdn Bhd
Corporate Nominees:
Dato’ Haji Onn
bin Mahmud
Benny Ng Wu Hong
Shahnaz bt Abdul Majid
UTAMA
SECURITIES
SDN BHD
Lot 2465
Jalan Boulevard Utama
Boulevard Commercial Centre
98000 Miri
Sarawak
Tel: 085-435577
Fax: 085-435511
Member:
Corporate Nominee:
Abrizah bt Dato’ Abdullah
Members:
Faidzan bin Hassan
Kong Kok Keong
Kretam Holdings Bhd
Corporate Nominee:
MEMBER COMPANY
INNOSABAH
SECURITIES
SDN BHD
SABAH
11 Equity House, Block K
Sadong Jaya, Karamunsing
88100 Kota Kinabalu, Sabah
Tel: 088-234090
Fax: 088-234100
MEMBER COMPANY
LABUAN
SECURITIES
SDN BHD
(Dealer’s licence
suspended by the
on 12 May 1998)
1999
Mohd Zahir bin Ahmad
FEDERAL TERRITORY OF LABUAN
Level 2, Wisma Oceanic
Jalan OKK Awang Besar
87007 Wilayah Persekutuan
Labuan
Tel: 087-410621
Fax: 087-410620
Number of Members
Number of Corporate Nominees
Number of Member Companies
Absent Members
:
:
:
:
110
110
65
Sia Say Yee
Members:
Dr. Abdul Hadi
bin Derani
YB Abdol Mulok bin
Awang Damit
Abdul Hakim Mordani
bin Abdul Hadi
Zabidi bin Mohd Zain
Zainuddin bin Hayati Meah
115
(30632-P)
Notice
Of Annual General Meeting
NOTICE IS HEREBY GIVEN THAT the Twenty Third Annual General Meeting of the Exchange will be held at the
KLSE Theatrette, Lower Ground Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur on Saturday, 20
November 1999 at 11:30 a.m. to transact the following business:
1.
To confirm the Minutes of the Twenty Second Annual General Meeting held on 28 November 1998 at 11:30 a.m.
2.
To receive and consider the report of the Committee, the Income and Expenditure Accounts for the year ended
30 June 1999 and the Balance Sheet as at 30 June 1999 with Auditors’ Report thereon in respect of
Kuala Lumpur Stock Exchange and Kuala Lumpur Stock Exchange Compensation Fund.
3.
To consider and if thought fit, to pass the following resolution pursuant to Section 129 of the Companies Act, 1965:“THAT Dato’ Hwang Sing Lue, who is over the age of seventy years and retiring in accordance with Section
129 of the Companies Act, 1965, be and is hereby re-appointed as a Committee Member of the Exchange and
to hold office until the conclusion of the next Annual General Meeting.”
4.
To elect two (2) Committee Members.
5.
To elect a Deputy Chairman.
6.
To elect Auditors and to authorise the Committee to fix their remuneration.
7.
To transact any other business which may be properly transacted at an Annual General Meeting.
BY ORDER OF THE COMMITTEE
IZLAN IZHAB
[LS No: 01843]
Company Secretary
Kuala Lumpur
29 October 1999
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)
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)
116
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.
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.
(30632-P)
Form
Of Proxy/Certificate Of Representation
We
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 Third Annual General Meeting of the
Exchange to be held on Saturday, 20 November 1999 at 11:30 a.m. and at any adjournment thereof.
Made this _______________ day of _______________ 1999.
Signature of Director/Attorney authorised to act on
behalf of the Member
Common Seal of Member affixed in the presence
of the persons authorised by the Board of Directors
EXPLANATORY 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)
(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)
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.
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 confirm receipt of the above by the Exchange, kindly contact: Izlan Izhab – Tel: 03-2063498
Marhani Hamzah – Tel: 03-2317327

Annual Report - Bursa Malaysia Berhad - Investor Relations

Transcription

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