MBM Resources, Ken Holdings, breweries, tobacco, O&G firms

KUALA LUMPUR (Oct 1): The FBM KLCI could trend higher on the first trading day of the fourth quarter (4Q) on Monday, extending its positive run after ending the third quarter on a high with year-to-date gains of 6.9% as at last Friday.

The local index, however, suffered a little and fell month-on-month in September, registering a monthly loss for the first time in six months, due to investor sentiment being affected by global growth worries as well as being kept on tenterhooks ahead of the tabling of Budget 2013 and the still elusive thirteenth general election date.

In a strategy note last Friday, AmResearch said that on balance, Budget 2013 appeared a tad positive for the market when viewed against earlier somewhat downbeat expectations particularly on property, auto and — by extension — banks.

Among the stocks that could be in focus are MBM Resources Bhd; Ken Holdings Bhd; brewery and tobacco companies; and the oil and gas sector.

MBM Resources has entered into a joint-venture with Japan’s Hino Motors Ltd to establish a manufacturing plant in Malaysia.

It said last Friday that the plant would be located on a 42-acre site in Negeri Sembilan, and will require an initial investment of RM140 million.

“The new plant, with an annual production capacity of approximately 10,000 units, will manufacture the full range of Hino products comprising small, medium and heavy duty trucks; and buses for the Malaysian market,” said MBM Resources.

Ken Holdings will be seeking its shareholder’s nod for its RM1.23 billion development in Johor consisting of residential, commercial, corporate and retail podiums on Oct 15.

The development will be constructed on the land it recently purchased from Malaysia Building Society Bhd (MBSB) that will be fully satisfied with its internally-generated cash.

The oil and gas sector received a shot in the arm with Budget 2013 spelling out initiatives to further position Malaysia as oil and gas hub.

This included an Investment Tax Allowance of 100% for the period of 10 years to qualified companies undertaking refinery activities on petroleum products.

It is worth noting that some US$20 billion (RM61.4 billion) worth of investment in oil and gas projects have been implemented in 2012.

These projects include the Petronas Refinery and Petrochemical Integrated Development (RAPID), oil and gas storage Terminal in Johor, Regasification Plant in Melaka as well as oil and gas terminal in Sipitang, Sabah.

AmResearch said the oil and gas industry appeared to be the major beneficiary of Budget 2013.

“The financial assistance for land acquisition is a positive for Dialog and Benalec although the exact structure of financial support is not yet certain for ventures into the tank terminal businesses.

“We are retaining our end-2012 fair value of 1,690 for the FBM KLCI. “Our fair value is pegged to a slightly higher 2012’s PE multiple of 15.9 times (from 15.5 times) because of the inclusion of Integrated Healthcare Bhd into the market index,” it said.

Source

Qualifications

  • Diploma in Civil Engineering, University Technology MARA, Shah Alam
  • Degree in Civil Engineering, University Technology MARA, Shah Alam
  • Executive Diploma in Business Administration, University of Central Lancashire, United Kingdom.

Working Experience / Other Directorships

Present:

  • Group Advisor, PNA Technologies Sdn Bhd
  • Group Advisor, Syarikat Metal Industries of Malaysia Sdn Bhd

Past:

  • Group Advisor New Business Development of Ingress Corporation Berhad
  • President & Chief Executive Officer of Perusahaan Otomobil Kedua Sdn Bhd (Perodua) from 2013 to 2018
  • Managing Director of Perodua from 2009 to 2012
  • Executive Director of Strategic Marketing Group, UMW Toyota Motor Sdn Bhd from 2007 to 2009
  • Executive Director of Strategic Planning Group, UMW Toyota Motor Sdn Bhd in 2006
  • Executive Director, Sales Group of UMW Toyota Motor Sdn Bhd from 2004 to 2005
  • Director, Human Capital Group of UMW Toyota Motor Sdn Bhd from 2001 to 2003
  • General Manager, HR and Administration of UMW Toyota Motor Sdn Bhd from 1996 to 2001
  • Manager, Property and Facilities of UMW Toyota Motor Sdn Bhd from 1992 to 1996
  • Property and Purchasing Manager of Utusan Melayu (M) Sdn Bhd in 1992
  • Property and Maintenance Manager of Techart Sdn Bhd from 1985 to 1991
  • Project Engineer of Techart Sdn Bhd from 1983 to 1985
  • Board of Director Universiti Teknologi Mara (UiTM)
  • Board of Director Universiti Teknologi Mara Holding (UiTMH)
  • Board of Director Universiti Malaysia Pahang (UMP)

Membership of Board Committees in MBMR:

  • Nominating and Remuneration Committee (Chairman)
  • Audit Committee (Member)
  • Group Transformation Committee* (Chairman)

*Dissolved on 27 January 2022

Date Appointed to the Board

  • 29 May 2019

Mr. Low Hin Choong was appointed to the Board on 18 May 2001. He is currently the Chairman of the Long Term Incentive Plan Committee and a member of the Risk Management and Sustainability Committee. During the period between 24 August 2023 to 2 January 2024, Mr. Low also served as a member of the Executive Committee of MBMR which was temporarily set up to assume the role and responsibilities of the Group Chief Executive Officer upon his departure.

He holds a Bachelor of Science (Honours) Degree in Business Administration and Computer Science from Queen’s University Belfast, United Kingdom.

Mr. Low has over 30 years of experience in the IT industry. He is the founding director of his own successful software applications company. Mr. Low has since retired but remains a director and advisor to the company.

Mr. Low is presently a Director of Perusahaan Otomobil Kedua Sdn Bhd and an alternate Director at Med-Bumikar MARA Sdn Bhd. He also holds directorships in Reliance Business Solutions Sdn Bhd, Rosen Sdn Bhd, and RBS Technology Sdn Bhd.

His current directorships in other companies within the MBMR Group include Hirotako Holdings Berhad, Hirotako Acoustics Sdn Bhd, Autoliv Hirotako Sdn Bhd, Federal Auto Holdings Berhad, Oriental Metal Industries (M) Sdn Bhd, Daihatsu Malaysia Sdn Bhd and MBMR Properties Sdn Bhd.

Mr. Ng Seng Kong has been on the Board since 1 October 2015. He is currently a member of the Audit Committee.

Mr. Ng is a Fellow Member of the Association of Chartered Certified Accountants, United Kingdom and a Fellow Member of the Chartered Institute of Management Accountants, United Kingdom. He is also a member of Chartered Global Management Accountant.

Mr. Ng started his career as an auditor at a chartered accounting firm in London from 1975 to 1979. Upon returning to Malaysia, he joined MKS Sdn Bhd as a Financial Controller from 1980 to 1981. Presently, Mr. Ng serves as Managing Director of UMS Holdings Berhad and UMS Corporation Sdn Bhd.

Mr. Ng also currently holds directorships in several companies within the MBMR Group namely, Hirotako Holdings Berhad, Hirotako Acoustics Sdn Bhd, Autoliv Hirotako Sdn Bhd, Federal Auto Holdings Berhad, Oriental Metal Industries (M) Sdn Bhd, MBMR Properties Sdn Bhd, Teck See Plastic Sdn Bhd, Hino Motors Sales (Malaysia) Sdn Bhd and Hino Motors Manufacturing (Malaysia) Sdn Bhd. He is also a Director on the Board of Med-Bumikar MARA Sdn Bhd.

Qualifications

  • Master of Arts, International Studies, Ohio University, United States of America
  • Bachelor of Economics (Hons), University of Malaya, Malaysia

Working Experience / Other Directorships

Present:

  • Chairman of Zelan Berhad

Past:

  • Director of CIMB Principal Asset Management Berhad
  • Chairman of Faber Group Berhad from 2001 to 2008
  • Various management positions in Khazanah Nasional Berhad from 1994 to 2004 including Managing Director position.
  • Special Assistant to the Secretary General of Ministry of Finance from 1993 to 1994
  • Principal Assistant Secretary in the Finance Division, Federal Treasury under Ministry of Finance from 1991 to 1993
  • Deputy Director of Petroleum Development Division under Prime Minister’s Department from 1986 to 1991
  • Principal Assistant Secretary in Foreign Investment Division, Economic Planning Unit under Prime Minister’s Department from 1982 to 1984
  • Attachment with Investment Division of the Malaysian Tobacco Company Berhad under the British Malaysia Industry & Trade Association training scheme from 1984 to 1985
  • Principal Assistant Secretary in Economic & International Division, Federal Treasury under Ministry of Finance from 1980 to 1981
  • Principal Assistant Secretary in Budget Division, Federal Treasury under Ministry of Finance from 1978 to 1980
  • Assistant Director in Industries Division under Ministry of International Trade & Industry from 1973 to 1978

Membership of Board Committees in MBMR:

  • Nominating and Remuneration Committee (Member)
  • Audit Committee (Chairman)
  • Long Term Incentive Plan Committee (Member)
  • Risk Management and Sustainability Committee (Member)

Date Appointed to the Board

  • 16 January 2018

Qualifications

  • Fellow Member of the Institute of Chartered Accountants in England and Wales
  • Member of the Malaysian Institute of Accountants
  • Bachelor degree in Accountancy

Working Experience / Other Directorships

Present:

  • Chief Executive Officer of Berjaya Capital Berhad
  • Non-Independent Non- Executive Director of 7-Eleven Malaysia Holdings Berhad
  • Audit Committee Member of Razak School of Government

Past:

  • Acting Chief Executive Officer and Chief Financial Officer of MARA Corporation Sdn Bhd from 2016 to 2019
  • Chief Operating and Financial Officer of Unitar Capital Sdn Bhd from 2012 to 2016
  • Advisor of ECS Solutions Sdn Bhd from 2011 to 2012
  • Audit and Assurance Director of Ernst & Young from 2008 to 2011
  • Manager under Banking and Capital Market Group of Ernst & Young LLP, London from 2003 to 2008
  • Internal Auditor of Habib Bank AG Zurich from 2002 to 2003
  • Senior Auditor of John Cumming Ross, Ltd in 2001
  • Senior Auditor of Andersen & Co, Malaysia (formerly known as Arthur Andersen & Co) from 1998 to 2001

Membership of Board Committees in MBMR:

  • Audit and Risk Management Committee (Member)
  • Group Transformation Committee* (Member)

*Dissolved on 27 January 2022

Date Appointed to the Board

  • 28 January 2019

Ms. Wong Fay Lee was appointed to the Board as a Non-Executive Director on 29 May 2019. She is currently the Chairman of the Risk Management and Sustainability Committee and a member of the Nominating and Remuneration Committee.

Ms. Wong graduated from the University of Sydney with a Bachelor’s Degree in Law. She also holds a Graduate Diploma in Applied Finance and Investments from Securities Institute Australia.

She started her career in 1987 as a corporate finance lawyer with Mallesons Stephen Jaques in Sydney, Australia and later as a Senior Associate in Mallesons’ South East Asian practice. She then joined the Malaysian Securities Commission as Manager of Product Development from 1993 to 1995.

Her past leadership positions include serving as Chief Executive Officer at Malaysian Derivatives Clearing House Bhd (now known as Bursa Malaysia Derivatives Berhad) from 1995 to 2000, Adviser to the Clearing Division of Hong Kong Exchanges and Clearing Limited from 2001 to 2002 and she was also an Independent Director at KFH Asset Management Sdn Bhd from 2002 to 2010.

Ms Wong was previously appointed as an Executive Director in MBMR from 2014 to 2017 while concurrently serving as the Head of Governance, Legal Risk & Compliance from 2011 until 2018. She was also appointed as Managing Director of Federal Auto Holdings Bhd from 2016 to 2017.

She is currently the Chairman of Federal Auto Holdings Berhad and a Director at Daihatsu (Malaysia) Sdn Bhd, Med-Bumikar MARA Sdn Bhd, and Astute Fund Management Berhad (formerly Apex Investment Services Berhad).

During the Financial Year Ended 31 December 2023, a family member of Ms. Wong was promoted to General Manager in the Company’s Subsidiary, Federal Auto Holdings Berhad wherein Ms. Wong was serving as Chairman of the Board. Ms. Wong had not participated in deliberations and abstained from voting and decision.

Qualifications

  • Bachelor of Economic, International Islamic University Malaysia
  • London Chamber of Commerce & Industry (LCCI) Higher – Business Statistics
  • Six Sigma – Champion Training, Motorola University

Working Experience / Other Directorships

Present:

  • Group Chief Executive Officer
  • Director of Daihatsu (Malaysia) Sdn Bhd
  • Director of Federal Auto Holdings Berhad
  • Director of Autoliv Hirotako Sdn Bhd
  • Director of Teck See Plastic Sdn Bhd
  • Director of MBMR Properties Sdn Bhd
  • Director of Oriental Metal Industries (M) Sdn Bhd
  • Director of Hirotako Acoustics Sdn Bhd
  • Director of Perusahaan Otomobil Kedua Sdn Bhd

Past:

  • Head, Automotive Distribution Division, Hicom Holdings Berhad (HHB) – Holding
    company of listed DRB-Hicom Berhad
  • Director, Mitsubishi Motors Malaysia (MMM)
  • Director, Isuzu Motors Sdn Bhd (IMSB)
  • Director, Edaran Otomobil Nasional (EON)
  • Director, EON Auto Mart Sdn Bhd
  • Director, Euromobil Sdn Bhd
  • Director, Hicom Auto Sdn Bhd
  • Director, AVIS Malaysia
  • Director, ACM
  • Director, DRB-Hicom Commercial Vehicles Sdn Bhd (DHCV)
  • Director, DRB-Hicom Auto Solution Sdn Bhd
  • Senior General Manager – Sales & Marketing Division, Perodua Sales Sdn Bhd
  • General Manager – Sales Division, Perodua Sales Sdn Bhd
  • Deputy General Manager – Sales Operations, Perodua Sales Sdn Bhd
  • Senior Manager – Sales Planning Department, Perodua Sales Sdn Bhd
  • Senior Manager – Distribution Department, Perodua Sales Sdn Bhd
  • Coordinator, MD’s Office, Perodua Sales Sdn Bhd
  • Manager – Market Planning, UMW Toyota Motor Sdn Bhd
  • Marketing Manager, UMW Engineering Sdn Bhd
  • Strategic Planning & Business Development Manager, UMW Auto Parts Sdn Bhd
  • Marketing Administration Executive, UMW Heavy Equipment Group
  • Corporate Planning & Project Executive, UMW Corporation Sdn Bhd
  • Economic Analyst, Federation of Malaysia Manufacturers (FMM)

Date Appointed to MBMR

  • 8th February 2021

Ms. Chin Tze Fui @ Annie Chin was appointed as the Group Chief Financial Officer on 29 September 2020. She first joined MBMR on 1st November 2016 as the Group Financial Controller and briefly served as the Acting President and Chief Executive Officer of MBMR from October 2020 to February 2021.

Annie has also previously served on the Board of a number of companies under the MBMR Group, namely Daihatsu (Malaysia) Sdn Bhd, Federal Auto Holdings Berhad, Autoliv Hirotako Sdn Bhd and Teck See Plastic Sdn Bhd during her tenure as the Acting President & CEO.

Annie graduated with a Bachelor of Science in Accounting (Honours) from Oklahoma State University, United States of America and she is a member of Malaysian Institute of Accountants (MIA).

Annie has over 30 years of experience in the fields of financial management practices covering various aspects of accounting, finance, business assurance and corporate transactions. She served as an Audit Manager at Ernst & Young Malaysia early in her career and proceeded to join Scomi Group Berhad. During her years with Scomi Group Berhad, Annie held several senior positions including Group and Regional Financial Controller. She later became a Partner at Annbren Management & Consultancy Services from 2011 to 2016 prior to joining MBMR.

Qualifications

  • B. A. (Hons) Accounting and Financial Studies, University of Exter, UK
  • Certified Training Professional, ARTDO-ITD International
  • Member, Society for Human Resource Management
  • Member, International Coaching Federation

Working Experience / Other Directorships

Present:

  • Director, Group Corporate Services

Past:

  • Director, Transformation Office of MBMR Resources Berhad
  • Board of Trustees of Kelab Belia Kalsom (The Kalsom Movement)
  • Director/Head, Group Human Capital of MARA Corporation Sdn Bhd
  • Executive Director, UNITAR International Academy Sdn Bhd
  • Director, Vice Chancellor’s Office of UNITAR International University
  • Head of Collaboration of Arise Asia Sdn Bhd
  • Vice President, Strategic Human Capital Management of Khazanah National Berhad
  • Consultant of Mercer Human Capital Consulting

Date Appointed to MBMR

  • 4th February 2020

CHAIRMAN’S STATEMENT

2022 was a highly successful year for MBMR with recordbreaking revenue and profits. As we celebrate the Groupwide achievements, we are also proud that the exceptional performance was achieved on the back of progress made in our sustainability strategies and objectives in the year.

Key environmental achievements in 2022 involved the increase in our Group-wide reduce, reuse and recycle initiatives from the preceding year. These initiatives included the installation of solar panels in our manufacturing plants and continued Group-wide upgrades from conventional to LED lighting. We also reduced the Group’s water and electricity intensity consumption even with the resumption of normal operating hours and a substantial increase in our manufacturing numbers.

Waste management saw an improvement along with the expansion of our recycling initiatives. In our manufacturing companies, the continued maintenance of the ISO 14001 environmental management system accreditation provides the assurance to our stakeholders that our operations comply with environmental regulations while also generating cost-savings through more efficient use of resources and waste management.

On the social front, we strongly believe that our investment in people is a key driver of commercial success throughout the Group, underpinned by employee engagement and a firmly integrated culture of employee appreciation, development, diversity and inclusion. From providing a safe working environment, encouraging diversity and inclusion at all levels to remuneration and benefits benchmarking and ensuring that our employees are rewarded for their respective contributions, have access to training and career development opportunities, we will continue to attract and retain the best talent.

The talent development programmes for the upskilling of our employees were undertaken with this belief in mind. We have also expanded the talent development to the communities, most notably our pledge towards the establishment of MBMR’s Scholarship Programme to support the younger generation to gain access to quality education, details of which will be announced in due course.

Additionally, our social sustainability initiatives, which included wellness programmes and our CSR activities throughout the year have helped us in being recognised as a better employer engaged in more responsible business practices. The employee and customer satisfaction surveys conducted have achieved an encouraging score, an indication that our sustainability and business strategieshavehadapositiveeffectonour stakeholders. As we expand our efforts in the respective overarching pillars, it is our hope that the satisfaction scores would increase further.

Concurrently, digitalisation initiatives have also enabled us to build closer relationships with our dealers and customers in our motor trading companies, contributing to better overall sales and service figures. In our manufacturing companies, improved monitoring and adoption of automation has improved the operational efficiencies in our manufacturing plants.

As the Group widens the adoption of digitalisation initiatives, the ongoing deployment of our Data Protection and Cyber Security programmes under the Governance pillar have improved the Group’s Cyber Security infrastructure and awareness.

Our efforts to improve our Group’s businesses are supported by a robust governance, risk management and internal control framework and practices. We aim to instil the highest standards of integrity, honesty, and transparency within the Group. Other significant initiatives under the Governance pillar involve the implementation of fundamental Group-wide policies with the aim of improving overall governance within the Group. This includes the adoption of a new Group Enterprise Risk Management Policy and Framework to ensure effective identification, assessment and management of the Group’s risks in a holistic manner towards achieving the Group’s business objectives.

We see environmental, social, economic and governance priorities as an important part of our mission to be the automotive partner of choice to our stakeholders. Through our ongoing investments in knowledge development and management, operational excellence, innovative technology adoption and digitalisation, we continue to drive our businesses to directly address these pillars to help in ensuring the sustainability of our planet. We do not see an alternative. Therefore, we believe continuous improvements in the material sustainability matters that we have identified are aligned with delivering sustainable returns to our shareholders. Having embarked on our transformation journey since 2019 and with our commitment to continue on that course, we aim to deliver additional and continuous improvements.

Moving forward, existing initiatives undertaken by the Group under all four pillars of sustainability will be further refined and expanded. The Group will also seek to further improve disclosures in line with recent enhanced sustainability reporting requirements.

Encik Aqil bin Ahmad Azizuddin
Chairman