kuala lumpur stock exchange annual report 2001

Strengthening Corporate Governance

Corporate governance is essential for investor confidence and enhancement of shareholder

value. It is only with high standards of corporate governance that a secure and vibrant market

can be cultivated, one which is premised on the principles of fairness, integrity, transparency

and accountability.

What s Inside

2

Corporate Information

5

Highlights

7

Executive Chairman s

Statement

25

Market Report

31

Issues in Focus

38

Committee Members

122

Monthly High, Low and

Closing Indices*

124

Market Indicators

131

Membership Report

137

KLSE Members

148

Notice of

Annual General Meeting

Form of Proxy/

Certificate of Representation

40

Management Team

45

KLSE Group

73

Calendar of Events

79

Financial Statements

118

KLSE Sub-Committees

120

New Listings

Kuala Lumpur Stock Exchange Annual Report 2001

pg1-78.qxd 1/2/02 11:44 AM

2


Committee Members

Dato Mohammed Azlan Hashim(Executive Chairman)

Datuk Mohaiyani Shamsudin(Deputy Chairman)

Tan Kim Leong

Abdul Kadir Hj Md Kassim

Abdul Jabbar Abdul Majid(appointed w.e.f 18.1.2001)

Chan Guan Seng

Abdul Wahab Nan Abidin

Peter Leong Tuck Leng

Yusli Mohamed Yusoff

Dato Ranita Mohd Hussein(resigned w.e.f 31.12.2000)

Abang Zainal Abidin Abang Ahmad(resigned w.e.f 31.12.2000)

Johari Hassan(resigned w.e.f 31.12.2000)

President

Dato Mohd Salleh Abdul Majid

Deputy President I

Md Nor Ahmad

Deputy President II

Ungku A Razak Ungku A Rahman

Company Secretaries

Ahmad Aznan Mohd Nawawi

Azman Shah Md Yaman

Auditors

Arthur Andersen & Co

Tax Consultants

Arthur Andersen & Co (Tax and Business Advisory)

Bankers

Bumiputra-Commerce Bank Berhad

Hongkong Bank Malaysia Berhad

Malayan Banking Berhad

Southern Bank Berhad

Registered Office

Kuala Lumpur Stock Exchange14th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 7099Fax: 03-2026 3684

Bankers



RHB Bank Berhad

Hong Leong Bank Berhad

Registered Office

Malaysia Derivatives ExchangeBerhad10th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2070 8199

KUALA LUMPUR STO C KEXCHANGE (KLSE)

(30632-P)

MALAYSIA DERIVATIVESEXCHANGE BERHAD (MDEX)

(261937-H)

LABUAN INTERNATIONALFINANCIAL EXCHANGE INC

(LFX)(LL02032)

Board of Directors

Abdul Jabbar Abdul Majid(Executive Chairman)(appointed w.e.f 3.1.2001)

Iskander Ismail

W ong Fook Wah(appointed w.e.f 3.1.2001)

Dato Mohammed Azlan Hashim

Dato Hwang Sing Lue

Yusli Mohamed Yusoff(appointed w.e.f 2.2.2001)

Md Nor Ahmad(appointed w.e.f. 2.2.2001)

Tunku Dato Seri Nadzaruddin TuankuJa afar(appointed w.e.f 15.8.2001)

Alvin Kwan Wing Yew(appointed w.e.f 15.8.2001)

Khairussaleh Ramli(Alternate director to DatoMohammed Azlan Hashim)(appointed w.e.f 19.1.2001)

Omar Malek Ali Merican(resigned w.e.f 30.6.2001)

K Sree Kumar(resigned w.e.f 14.3.2001)

Dato Mohd Salleh Abdul Majid(resigned w.e.f 2.2.2001)


Ramli Ibrahim(resigned w.e.f 14.12.2000)

Chief Operating Officer

Dr Zaha Rina Zahari

General Manager

Raghbir Singh Bhart

Company Secretaries

Manoj Devadasan


Auditors


Tax Consultants


Board of Directors

Dato Mohammed Azlan Hashim(Chairman)


Dato Ahmad Johan Raslan(appointed w.e.f 1.2.2001)

Peter Leong Tuck Leng(appointed w.e.f 1.2.2001)

Company Secretaries


Nor Hakimah Abdul Latif

Exchange Committee Members

Tan Sri Wan Azmi Wan Hamzah(Chairman)


Mohd Nasir Ali

Dr Mohamed Arif Nun

Larry Gan

Md Nor Ahmad

Ridzuan Salleh

Chin Chee Kee

Izzuddin Tajudin

Abdul Jabbar Abdul Majid

Dr Ghazali Atan

Prof Madya Dr Mohd Daud Bakar

General ManagerS. Loganathan

Secretary


Auditors


pg1-78.qxd 1/2/02 11:44 AM


3

KLSE PROPERTYMANAGEMENT SDN BHD (KPM)

(147792-H)(formerly known as KLSE Realty Sdn Bhd)

SECURITIES CLEARINGAUTO M ATED NETWORK

SERVICES SDN BHD (SCANS)(109716-D)

General Manager


Company Secretaries

Azman Shah Md Yaman


Auditors


Tax Consultants


Bankers


Alliance Bank Berhad

Southern Bank Berhad

Standard Chartered Bank (M) Berhad

Registered Office

Securities Clearing AutomatedNetwork Services Sdn Bhd8th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 8099Fax: 03-2026 3715

Bankers



Registered Office

KLSE Property Management Sdn Bhd14th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 7099Fax: 03-2026 3684

Board of Directors


Datuk Mohaiyani Shamsudin

Tan Kim Leong


Abdul Jabbar Abdul Majid(appointed w.e.f 18.1.2001)

Dato Hj Megat Najmuddin Khas DatoSeri (Dr) Hj Megat Khas

Chan Guan Seng


Peter Leong Tuck Leng(appointed w.e.f 1.1.2001)

Yusli Mohamed Yusoff(appointed w.e.f 1.1.2001)


Md Nor Ahmad(Alternate to Dato Mohd SallehAbdul Majid)


Abang Zainal Abidin Abang Ahmad(resigned w.e.f 1.1.2001)

Johari Hassan(resigned w.e.f 1.1.2001)

Board of Directors


Tan Kim Leong

Md Nor Ahmad

Abang Zainal Abidin Abang Ahmad(resigned 31.12.2000)

General Manager

Abdul Razak Mohd Amin

Company Secretaries


Abdul Raihan Mohd Yusof

Auditors


Tax Consultants


MALAYSIAN CENTRALDEPOSITO RY SDN BHD (MCD)

(165570-W)

Board of Directors


Tan Kim Leong

Chan Guan Seng

Datuk Amirsham A Aziz

Dato Seri Syed Zainol AnwarJamalullail

General Manager


Company Secretaries


Yong Hazadurah Hashim

Auditors


Tax Consultants


Bankers



Alliance Bank Berhad

Registered Office

Malaysian Central Depository SdnBhd6th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 2099Fax: 03-2026 3719

pg1-78.qxd 1/2/02 11:44 AM

4


Board of Governors


Datuk Mohaiyani Shamsudin(Deputy Chairman)

Tan Kim Leong

Chan Guan Seng

Tan Sri Dato Dr Syed JalaluddinSyed Salim


Tan Sri Dato Dr Abdullah Sanusi HjAhmad


Director

Abdullah Naib

Company Secretaries



Auditors


Tax Consultants


Bankers


Registered Office

Research Institute of InvestmentAnalysts Malaysia6th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 7099Fax: 03-2026 3701

KLSE-BERNAMA REAL-TIMEINFORMATION SERVICES

SDN BHD (KULBER)(152961-H)

Board of Directors


Datuk Abdul Kadir Jasin(Deputy Chairman)(appointed w.e.f 24.10.2000)

Datuk Teh Ghee Kok


Md Nor Ahmad

Leong Koon Choy(appointed w.e.f 24.10.2000)

Jaafar Hussin(appointed w.e.f 1.1.2001)

Syed Jamil Syed Jaafar(resigned 31.12.2000)

Company Secretaries



Auditors


Tax Consultants


Bankers


Registered Office

KLSE-Bernama Real-Time InformationServices Sdn Bhd8th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 7099Fax: 03-2026 3684

YAYASAN BSKL (YBSKL)(464552-M)

Board of Governors



Chan Guan Seng

Datuk Hj Abdul Karim Haron

Dato N Sadasivan A/L N N Pillay

Dato Che Mohd Annuar Che MohdSenawi

Tan Sri Dato Dr Abdullah Sanusi HjAhmad(appointed w.e.f 30.7.2001)

Dato Mohd Salleh Abdul Majid(appointed w.e.f 30.7.2001)

Company Secretaries



Auditors


Bankers


RESEARCH INSTITUTE OFINVESTMENT ANALYSTS

MALAYSIA (RIIAM)(139281-V)

Registered Office

Yayasan BSKL14th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 7099Fax: 03-2026 3684

Shahnaz Radhiah Zulkifli(Alternate director to Tan Sri ZulkifliMahmood)

Tuan Haji Mustapha Hashim(Alternate director to Mohamad ShuibAbdul Ghani)(resigned w.e.f 31.12.2000)

General Manager

Abdul Nasir Ahmad Daud

Company Secretaries



Auditors


Tax Consultants


Bankers


Registered Office

Malaysian Share Registration ServicesSdn Bhd8th Floor, Exchange SquareBukit Kewangan50200 Kuala LumpurTel: 03-2026 7099Fax: 03-2026 3684

MALAYSIAN SHAREREGISTRATION SERVICES

SDN BHD (MSRS)(378993-D)

Board of Directors


Dato Hj Megat Najmuddin Khas DatoSeri (Dr) Hj Megat Khas


Tan Sri Zulkifli Mahmood

Mohamad Shuib Abdul Ghani

pg1-78.qxd 1/2/02 11:44 AM


5

highlights

pg1-78.qxd 1/2/02 11:44 AM

Meticulous in approach and

transparent in every aspect

ensuring substance over form.

pg1-78.qxd 1/2/02 11:44 AM


Dato MohammedAzlan HashimExecutive Chairman

pg1-78.qxd 1/2/02 11:44 AM

8

There was a statement planned in reviewing the financial year for the Kuala Lumpur Stock

Exchange Group.

This is another.

Just as we close the year, events unfolded leading to conditions of uncertainty influencing an

outcome different from what was generally expected in the economies and capital markets of many

countries. More importantly, it is in the uncertainty of unfolding events that the impact of existing

challenges are accelerated, even magnified reminding us that the unexpected does happen.

Reminding us too, of the degree of preparedness and the degree of readiness of both industry and

participants to face the full impact of

coming challenges.

It is against such an environment that we view, perhaps with more discerning eyes than before, the many

efforts contributed during the year to continue developing the national economy, capital market and

securities industry. It is also in times like this, that it becomes clear that the indicators of performance and

achievement for the KLSE Group are not those of the market and the market alone but of the many,

many efforts contributing to sustainable progress and growth for market and industry.

Perhaps, central to the effort, is this.

It is the written word, in whichever faith we belong to, that seeks to guide the conduct of man. It is in

humbly learning from this example, that forms the major effort for the year.

At both exchange and industry level, it was a year of putting rules, requirements and plans to words and

to work for participants, regulators and the industry alike. For KLSE, it was the new Listing Requirements;

for the industry the Capital Market Masterplan.

Launched in January 2001, the new Listing Requirements achieve the objective of enhancing corporate

governance and transparency, enhancing efficiency in capital market activities, strengthening investor

protection and promoting investor confidence.

The Capital Market Masterplan (CMP) launched in February 2001, contains 6 objectives, 24 strategic

initiatives and 152 recommendations, which are to be implemented over the next 10 years.

Out of the 152 recommendations, 105 recommendations are directly or indirectly related to the KLSE

Group. Thus, at no other time has there been clearer signposts at both the market participants level or the

industry level in charting the way forward. To facilitate the smooth implementation of these

recommendations and monitor its progress, KLSE set up the CMP Implementation Committee (CIC). It is

thus the time to get to work and begin the journey forward.

What we leave behind during the period, is a downtrend in equity markets, driven primarily by uncertainty

in the direction of the global economy. The contraction in the global technology industry, on which the

region s export strength is dependent upon, contributed to the weakening of the regional economies and

equity markets. Some of these markets were also influenced by social and political developments at home.

Under the influence of these events, comparing the last trading day of the fiscal year with that of the

previous period, the KLSE Composite Index (CI) as at 29 June 2001 declined 240.38 points or 28.84% to

close at 592.99 compared to 833.37 on 30 June 2000. Similarly, total market capitalisation at the end of

the fiscal year was at RM403 billion, a decrease of RM169 billion or 29.55% from RM572 billion a year ago.

Total volume traded amounted to 34 billion units valued at RM89 billion in contrast to 106 billion units valued

at RM305 billion during the previous corresponding period.

However, despite uncertainty at the securities market level, capital generation efforts continued positively

for new issues. During the period under review, 36 new companies were listed compared to 28 in the

previous financial year, bringing the total number of companies listed to 809 at fiscal year end. Of the 36

new companies, 14 were listed on the Main Board and 22 on the Second Board, with a combined nominal

capital of RM5.1 billion. A total of RM1.6 billion was raised from Initial Public Offerings (IPOs) compared

with RM0.9 billion in the previous period.

Executive Chairman s Statement

pg1-78.qxd 1/2/02 11:44 AM


9

I REGULATO RYBusiness without governance is an injustice to all.

It inflicts harm not only on to itself, but on to others in the investment community impeding

growth, destroying reputation, diminishing investment value and with it, investor confidence.

Now more than ever, the continued growth and progress of the Malaysian securities industry

lies in the collective will of its participants to be more responsible, to be more accountable

in essence to be compliant.

New Listing Requirements

In ensuring that investors will continue to have confidence in investing at the KLSE and in the Malaysian

e c o n o m y ,

a key effort is to continuously improve the level of corporate governance.

The new Listing Requirements is set to achieve the continuous objective of further promoting the efficiency

and credibility of the market to benefit listed companies, directors, intermediaries, major shareholders and

minority investors alike.

Launched in January 2001, the new Listing Requirements is a fine example of co-operation and combined

effort by both industry participants and regulators, involving an extensive consultation process meticulously

conducted, taking into account the views and feedback of industry participants.

The new Listing Requirements, amongst others, strengthened provisions in areas relating to disclosure,

corporate governance, continuing listing obligations, financial reporting and enforcement. It codified

unwritten rules and procedures relating to listed companies, simplified procedural requirements and

processes, clarified requirements and removed ambiguities and adopted international best practices and

standards in listing rules, where applicable.

The new Listing Requirements is now more business friendly and user friendly. Provisions have been

drafted with the aim of promoting business efficacy whilst safeguarding the interests of minority

shareholders. Provisions have also been streamlined and re-organised as part of the measures to facilitate

easy reference and understanding of the Listing Requirements.

Under the new Listing Requirements, listed companies, their advisers and directors are now subject to a

higher standard of responsibility and accountability. They are required to be more transparent with their

activities and are expected to exercise higher standards of corporate governance.

In recognising that both industry regulators and participants manage and operate in a dynamic

e n v i r o n m e n t ,

the new Listing Requirements is designed to be accommodative and flexible. As such the new Listing

pg1-78.qxd 1/2/02 11:44 AM

10


Requirements will be continually reviewed and reassessed for relevance and practicality. Refinements to

the new Listing Requirements will be undertaken from time to time.

As stakeholders in the growth and development of the securities market and industry, all industry

participants are encouraged to continue to provide feedback and suggestions for improvement to the Listing

Requirements.

Towards this end, it is important for industry participants to continue to cooperate and work closely with

regulators to make the securities industry in Malaysia the preferred investment destination of investors.

Practice Notes

In conjunction with the new Listing Requirements, the Exchange has issued 12 Practice Notes. These

Practice Notes have been issued with the objective of, amongst others, providing interpretation of several

provisions of the Listing Requirements and specifying administrative procedures. These Practice Notes are

aimed at facilitating greater compliance with the Listing Requirements.

Of special significance are Practice Notes No. 4/2001 and 10/2001 issued pursuant to paragraphs 8.14

and 8.16 of the new Listing Requirements respectively. These are 2 of the several provisions introduced

to enhance the quality of companies listed on the KLSE.

Practice Note No. 4/2001 on Criteria and Obligations pursuant to paragraph 8.14 of the Listing

Requirements (PN4) relates to the requirement that listed companies must maintain a financial condition

that warrants continued trading and/or listing on the Official List of the Exchange. PN4 sets out amongst

others, the criteria in relation to the expected minimum financial condition of a listed company.

Similar provisions are contained in Practice Note No. 10/2001 on Level of Operations (PN10).

PN10 relates to the requirement that listed companies must maintain a certain minimum level of operations

to warrant continued trading and/or listing on the Official List of the Exchange.

PN10 clarifies the application of paragraph 8.16 of the Listing Requirements and sets out the

circumstances which may indicate that a listed company s level of operations is inadequate to warrant

continued trading and/or listing on the Official List, including the obligations of such listed company.

Hence with PN4 and PN10, investors can expect to obtain greater disclosure of information regarding the

status of restructuring of companies which have an inadequate level of financial condition or level of

operations. The rights of shareholders of listed companies under PN4 and PN10, are better protected by

the enhanced disclosure requirements.

A significant objective of PN4 and PN10 is undoubtedly the hastening of the pace of restructuring of

companies with inadequate level of financial condition or operations. To a large extent this has been met

by a significant number of these companies now at varying stages of their restructuring plans.

Through the on-going efforts of the KLSE Group in holding consultations and dialogues with industry

Compliance not only with the letter of the requirements, but with the spirit of the requirements.

In meeting this objective and to facilitate compliance with the letter and spirit of the new Listing

Requirements, Practice Notes were issued where required, detailing administrative and operational

procedures for compliance.

pg1-78.qxd 1/2/02 11:44 AM

participants, industry feedback and suggestions have been incorporated in the Practice Notes issued.

Practice Notes will continue to be issued from time to time to further reflect industry input and to achieve

the intended objectives of the new Listing Requirements.


11

Issuance of the guidance signifies the importance of internal control for enhancing corporate

governance in a company. Implementation of the guidance augurs well for the preservation of

company assets and will result in better protection for investors.

pg1-78.qxd 1/2/02 11:44 AM

12

Statement on Internal Control: Guidance for Directors of Public Listed Companies

To assist listed companies in making disclosure of their state of internal control pursuant to paragraph15.27(b) of the Listing Requirements, KLSE established an independent Taskforce on Internal Control inMay 2000 to prepare and issue a guidance. The guidance entitled Statement On Internal Control:Guidance for Directors of Public Listed Companies was issued by the Taskforce in February 2001.

The guidance deals with the following areas in relation to internal control:the system of internal control and the responsibilities of various parties in the maintenance of a soundsystem of internal control;the process of review of the adequacy and integrity of a system of internal control; andthe minimum disclosures to be made by the board of directors on the state of internal control.

Roadshows and Conference on Listing RequirementsWhilst KLSE has put in place a framework intended to enhance the credibility and attractiveness of theMalaysian capital market, the KLSE recognises that it is important for the market to support the new ListingRequirements. Industry response to date has indicated that there has been a high degree of support forthe new Listing Requirements.

On 29 March 2001, the Exchange held a public conference on the new Listing Requirements, whichreceived overwhelming response from industry.

The public conference was aimed at promoting greater understanding of the new Listing Requirements,increasing awareness among industry participants of their rights, duties and obligations and providing anopportunity for comments and queries on relevant issues pertaining to the new Listing Requirements.

The main areas covered in the conference included corporate governance, investor protection andtransparency with speakers from various sectors of the industry presenting papers from the perspective ofregulators, advisers, listed companies, investors and the legal fraternity.

To facilitate greater understanding of and compliance with the new Listing Requirements, the Exchangealso conducted 11 roadshows throughout Peninsular and East Malaysia. These roadshows also provideda forum for the exchange of constructive views and concerns.

The response to the roadshows was encouraging and provided invaluable feedback to the Exchange. Italso indicated the support and enthusiasm of industry participants to the introduction of the new ListingRequirements and their desire to comply.

Apart from the KLSE roadshows, the Exchange also facilitated and sponsored other roadshows such asthe roadshow by the Institute of Internal Auditors Malaysia (IIAM), which served as the secretariat for theTaskforce on Internal Control. The objective of these roadshows was to educate the industry on theStatement on Internal Control: Guidance for Directors of Public Listed Companies and to provide a forumto clarify any issues relating to the Guidance.


Members of professional organisations undergo continuing education and formal training, to update

and improve their knowledge in order to discharge their duties more responsibly, effectively, efficiently.

It is with this objective that directors of listed companies have given full support in participating in

the training programmes prescribed in the new Listing Requirements. The Mandatory Training

Programme will subsequently be supplemented with the continuing education programmes.

The new Listing Requirements have been developed to deter wrongdoings, without impeding the beneficial.

Thus, whilst it has been developed to be pro-business and pro-growth, there are now enhanced

powers to enable more effective enforcement of the new Listing Requirements.

The penalties that may be imposed range from caution and impress to private and public

reprimands, fines and where necessary, suspension and ultimately de-listing. Due process is

accorded in respect of all alleged breaches of the Listing Requirements. Penalties will only be

imposed after thorough consideration of all facts and circumstances relating to a case.

The KLSE LINK makes a valuable contribution in the implementation of measures to achieve greater

disclosure and market transparency. With the use of KLSE LINK, listed companies are better able

to ensure accuracy, completeness and timeliness of their announcements. Investors in turn, should

make full use of such information in their investment decisions.

pg1-78.qxd 1/2/02 11:44 AM


13

Status of Investigation Cases on Public Listed Companies as at 30 June 2001

Cases CasesBrought Cases OutstandingForward Initiated as at from during end of

Financial Financial Total Cases FinancialType of Cases Year 2000 Year 2001 Cases Completed Year 2001

Failure to comply with the Policy on Response to 3 3 (1) 2Unusual Market Activity/Failure to promptly provide information or documents to the ExchangeSections 99, 338 of MBLRClause 1.18 of SBLR

Failure to comply with Corporate Disclosure Policy and 53 175 228 (103) 125Immediate AnnouncementsSections 22-41, 335-341 of MBLRClauses 1.18, 3.4, 3.11-3.16 of SBLR

Failure to comply with Part 4 of the MBLR/Part 5 38 98 136 (54) 82of the SBLR on Acquisitions and Realisations

Failure to comply with Part 2 of the MBLR/Part 3 3 3 (1) 2of the SBLR (excluding Immediate Announcements and Accounting Standards)

Failure to release Quarterly Reports on time 7 19 26 (17) 9Section 56A of MBLR/Clause 3.20A of SBLR

Failure to furnish Annual Reports on time 4 6 10 (8) 2Section 60(a) of MBLR/Clause 3.22(a) of SBLR

Failure to furnish Annual Audited Accounts on time 4 62 66 (45) 21Section 60(b) of MBLR/Clause 3.22(b) of SBLR

Failure to release Preliminary Financial Statements 1 1 (1)Section 57 of MBLR/Clause 3.21 of SBLR

Failure to release Half Yearly Results 1 1 1Section 56 of MBLR/Clause 3.20 of SBLR

Failure to comply with the share buyback guidelines 4 4 4

Failure to comply with Accounting Standards 1 2 3 (2) 1Section 65 of MBLRClause 3.27 of SBLR

Total 108 373 481 (232) 249

Actions Taken for Breaches of Listing Requirements as at 30 June 2001

No. of Cases

PublicCaution Private Public Reprimand

Type of Cases & Impress Reprimand Reprimand & Fine Total

Failure to comply with the Corporate Disclosure Policy 10 20 15 5 50and Immediate AnnouncementsSections 22-41, 335-341 of MBLRClauses 1.18, 3.2, 3.4, 3.11-3.16 of SBLR

Failure to comply with Part 4 of the MBLR/Part 5 9 13 10 11 43of the SBLR on Acquisitions and Realisations

Failure to comply with Part 2 of the MBLR/Part 3 1 1of the SBLR (excluding Immediate Announcements)

Failure to release Quarterly Reports on time 4 4Section 56A of MBLR/Clause 3.20A of SBLR

Failure to furnish Annual Reports on time 1 7 8Section 60(a) of MBLR/Clause 3.22(a) of SBLR

Failure to furnish Annual Audited Accounts on time 3 9 12Section 60(b) of MBLR/Clause 3.22(b) of SBLR

Failure to release Preliminary Financial Statements on time 1 1Section 57 of MBLR/Clause 3.21 of SBLR

Total 19 37 26 37 119

MBLR: Main Board Listing Requirements SBLR: Second Board Listing Requirements

pg1-78.qxd 1/2/02 11:44 AM

14


II INFRASTRUCTUREKLSE has a vision to develop into a world class stock exchange.

Notwithstanding its relatively young age, KLSE is a developed exchange in terms of

infrastructure and regulations.

The exchange intends to keep abreast of international developments to ensure its continued

relevance and wide acceptance, by investors and industry participants domestically and

internationally.

Growth of Investor Activity

Reporting Period Total as at1 July 2000 to 30 June 2001 30 September 2001

1. No. of new accounts opened 77,336 2.8 million

2. No. of securities immobilised 16.5 billion 197.8 billion

3. No. of companies prescribed into CDS 28 816

4. Book entry settlement of 34.9 billion 362.7 billiontraded securities

5. No. of ordinary transfer transactions 578,293 8.1 million

6. No. of Record of Depositors (ROD) 13,241 69,464produced

T+3 settlement

KLSE has successfully shortened the settlement period from T+5 to T+3 in December 2000. Based on the

T+3 Settlement System, delivery and settlement dates are fixed based on 3 market days after trade date.

In the implementation process, consultation with industry participants was undertaken to ensure feedback

and concerns are addressed in implementing T+3 to ensure industry participants are fully aware of the

benefits of T+3.

The main objective of shortening the settlement system is to increase efficiency and to reduce settlement

risk in order to enhance competitiveness.

Infrastructure Development

Just as the Exchange is enhancing corporate governance to ensure continued investor confidence, there

has been continuous enhancement in its infrastructure and regulations to meet investor requirements and

expectations, in line with internationally accepted practices.

KLSE s infrastructure and regulations today are comparable to many of the developed exchanges. These

attributes include fully immobilised securities, T+3 settlement system, delivery versus payment, quarterly

reporting and general compliance with international accounting standards.

KLSE has worked closely with industry participants to ensure there is continued progress and improvement

in the infrastructure for the securities industry. This infrastructure development, is to enable a reliable,

efficient and cost effective market to meet investors needs and demands. The results are evident in the

continuing growth of investor interest and investor confidence in the Malaysian securities market.

pg1-78.qxd 1/2/02 11:44 AM


15

The benefit of T+3 extends to the various industry participants. Investors will particularly benefit from the shorter

settlement period, which reduces risk and exposure as shares and cash are settled earlier. For international

investors, T+3 standardises the settlement system in line with that of major international exchanges, thus

facilitating investment operations.

Delivery vs Payment

The delivery versus payment (DVP) environment was further enhanced by the implementation of the

Institutional Settlement Service for Direct Business Transactions (ISS-DBT) in July 2001.

The Institutional Settlement Service (ISS) for on-market transactions was first introduced in July 1999. On-

market transactions are transactions that are executed through the Automated and Computerised Trading

System established by the Exchange whilst Direct Business Transactions (DBT) are transactions that are

not executed through the Automated and Computerised Trading System.

ISS enables eligible financial institutions to clear and settle securities transactions on behalf of their

institutional clients directly with SCANS. The beneficial objective of ISS is to reduce the settlement risk

exposure of institutional investors whilst enhancing DVP, in line with international settlement best practices

and requirements. Since its introduction, ISS has been well received, with industry participants increasingly

relying on ISS to clear and settle securities transactions.

W ith ISS expanded for DBT, this will further ensure local and foreign institutional investors continue

to have access to a secure and efficient clearing and settlement system. Similar to industry support

for ISS, since its introduction, ISS-DBT has also been well received by industry participants, with

increasing volume and value of securities transactions cleared and settled through ISS-DBT.

Electronic handling of Provisional Allotment Letters

The electronic management of Provisional Allotment Letters (PALs) was implemented in January

2001.

W ith the immobilisation of PALs, all securities on

the Exchange are traded scripless. This will not

only result in more efficient and convenient delivery,

settlement of trades and reduced costs for

securities holders but also achieve speedier

processing from the books closing date to the listing

of the new securities. Thus, the immobilisation of

pg1-78.qxd 1/2/02 11:45 AM

16


III DEVELOPMENTAL STOCKBROKING COMPANIESStockbroking companies, now more than ever, are facing the challenges of an increasingly

liberalised and competitive marketplace.

Recognising that investor capital is mobile regionally and internationally, more securities

markets are reviewing transactions cost in working towards the objective of offering more

comprehensive and more efficient services at lower fees.

Therefore, to remain attractive and competitive, the Malaysian securities market will need to

continually seek efficiency and innovation as a means to continued prosperity.

Prior to First Stage Reduction Second Stage Reduction

1 September 2000 1 September 2000 1 July 2001

SCORE Fee* 0.01% ad valorem 0.005% ad valorem 0.0025% ad valorem

Clearing Fee 0.05% ad valorem 0.05% ad valorem 0.04% ad valorem Max. RM200 per contract

SC Levy 0.02% ad valorem 0.02% ad valorem 0.015% ad valorem

*SCORE System on Computerised Order Routing & Execution

Reduction in Transaction Cost

Key to industry competitiveness, is the ability to offer competitive cost. Thus, in line with the commitment

to liberalise the capital market, which is expected to improve liquidity and efficient price discovery, the

reduction in transaction cost was implemented. Among others, these factors will contribute to make KLSE

and Malaysia a more attractive and competitive investment destination for investors.

Regulators have taken the lead to promote industry competitiveness by proceeding to reduce the

components of transaction cost which include clearing and other fees as part of the commitment to

enhance the cost competitiveness of the industry.

Prior to First Stage Reduction Second Stage Reduction

1 September 2000 1 September 2000 1 July 2002

Brokerage Commission Contract Value Rate Contract Value Rate Fully negotiable (RM) (%) (RM) (%) commission rates for Retail trades subject to a cap 1st 500,000 1.00 Less than or 0.75 of 0.70%Next 1.5mill 0.75 equal to 100,000Above 2.0 mill 0.50 More than FullyInstitutional 100,000 Negotiable1st 500,000 0.75Next 1.5mill 0.5625Above 2.0 mill 0.375Interbroker1st 2.0 mill 0.4Above 2.0 mill 0.35

The reduction in brokerage commission, as part of the reduction in transaction cost, has been implemented

since September 2000 and is expected to be completed by July 2002.

The reduction is in line with the government and industry regulators commitment to liberalise the capital

market to make KLSE and Malaysia a more attractive investment destination for all investors.

pg1-78.qxd 1/2/02 11:45 AM


17

Supervising Compliance

As part of the overall effort to ensure a high standard of compliance to prudential requirements review, the

KLSE conducts inspections on stockbroking companies and audits on Authorised Depository Agents (ADAs)

to:

ascertain their compliance to the Rules of KLSE;

to determine their compliance to the Rules of Malaysian Central Depository;

to determine the state of preparedness of branches of stockbroking companies to commence

operations.

Overall, there was continued vigilant monitoring for compliance, as evident from the number of cases

initiated during financial year 2001. However, with the enhanced rules for investor protection and the

continuous investor education programmes undertaken by KLSE, it is expected that the number of cases

will decline in future periods. In addition, heightened levels of controls at stockbroking companies with the

requirement of internal audit function, together with compliance officers to handle clients complaints will

Growth Indicators for Stockbroking Companies

Increase/(Decrease) 1 July 2000 30 September 2001 during the period

Consolidated for all stockbroking companies RM billion RM billion RM billion

Paid-up Capital* 7.705 7.211 (0.494)

Reserves (0.127) 0.916 1.043

Shareholders Funds 7.578 8.127 0.549

Cost reduction is not the only factor in enhancing the overall competitiveness of the Malaysian

securities market.

Greater compliance to prudential standards and improved vigilance in risk management by

stockbroking companies are also significant factors in contributing to enhanced confidence and the

creation of a more competitive market.

In addition to reduction in transaction cost, on-going measures in enhancing the overall competitiveness of

the Malaysian securities market continue to be implemented in several key areas, i.e. to:

strengthen the financial position of stockbroking companies

encourage greater compliance to prudential standards

improve vigilance in risk management

In line with the successful consolidation and restructuring efforts, the number of stockbroking companies

under trading restrictions was reduced from 8 to 1 during the financial year. 5 of these stockbroking

companies were acquired by other stockbroking companies and another 2 stockbroking companies were

able to regularise their financial positions following the successful implementation of Workout Proposals

with their creditors pursuant to Section 24 of the Pengurusan Danaharta Nasional Berhad Act, 1998.

These efforts have collectively contributed in further enhancing the services and business capabilities of

the Malaysian securities industry in line with international standards.

During the period from 1 July 2000 to 30 September 2001, there was an increase in aggregate reserves

and shareholders funds of stockbroking companies, as follows:-

* During the aforesaid period, there was an increase in the paid-up capital of RM0.444 billion and a reduction of RM0.938billion arising from the consolidation (acquisitions and mergers) within the stockbroking industry. This has resulted in a netreduction of RM0.494 billion.

pg1-78.qxd 1/2/02 11:45 AM

18

Status of Investigation Cases as at 30 June 2001

CasesBrought Cases Forward Initiatedfrom during Total Cases Cases

Category Financial Year Financial Year Cases Completed Outstanding2000 2001

Buying-in/potential shortselling 75 95 170 128 42

Alleged defaulter 70 34 104 46 58

Potential misuse of clients account 60 17 77 63 14

Other complaints of improper conduct 40 21 61 41 20against dealers representatives

Complaints of improper conduct against 86 24 110 45 65stockbroking companies

Potential false trading/market rigging/ 38 103 141 64 77market manipulation/ insider trading

General complaints 2 5 7 7 0

Total 371 299 670 394 276

Disciplinary Actions on Dealers Representatives and Stockbroking Companies during financial year ended 30 June 2001

Disciplinary Action Dealers Representatives Stockbroking Companies

Struck Off 2

Fined 7 1

Suspension 1

Reprimanded 1

Total 10 2


also help to reduce the number of cases.

Universal Brokers

In efforts to further encourage the consolidation of the stockbroking industry, the Securities Commission

(SC) announced guidelines for Universal Brokers in October 2000. The development of universal brokers

is part of the industry strengthening process to create financially stronger and more competitive

stockbroking companies.

A Universal Broker is a stockbroking company, approved by the SC to be a Universal Broker, which is able

to offer a diverse range of products and services within the capital market, including corporate finance,

futures broking business and dealings in debt securities. To become a Universal Broker, a stockbroking

company must meet various quantitative and qualitative criteria besides having merged with or acquired at

least 3 other stockbroking companies.

As at 30 September 2001, the SC has granted Universal Broker status to 5 stockbroking companies.

Following the merger with, and acquisition of other stockbroking companies, these 5 Universal Brokers

have set up in total 15 branch offices. In addition, 3 stockbroking companies, which are not Universal

Brokers, have also acquired in total 3 other stockbroking companies and converted these into their

respective branch offices.

pg1-78.qxd 1/2/02 11:45 AM

Consolidation into an integrated exchange

In line with the competitive strategies of the CMP, KLSE continues in the move to develop an integrated

exchange to achieve optimum utilisation of resources and economies of scale, to achieve greater efficiency

and competitiveness in the securities industry.

W ith the establishment of Malaysia Derivatives Exchange (MDEX) in June 2001, KLSE completed the

integration of The Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) and Commodity and

Monetary Exchange of Malaysia (COMMEX) as an integrated derivatives exchange.

KLSE has also signed a Memorandum of Understanding (MOU) with Malaysian Exchange of Securities

Dealing and Automated Quotation (MESDAQ) on 27 June 2001 to initiate discussions with MESDAQ for it

to join the KLSE Group.

In connection with an integrated exchange, the CMP s recommendation includes the establishment of a

common trading platform and a common clearing and settlement platform across all exchange-traded

products. Such a move is intended to facilitate a single integrated access for investors to an integrated

exchange that is able to offer a wide range of products. This will benefit not only market intermediaries

but all market participants in an industry that will offer greater efficiency and cost-effectiveness.

Disclosure Based Regulation

KLSE continues to progress with the implementation of the full Disclosure Based Regulation (DBR) for the

primary market.

As part of the implementation effort, KLSE has developed a DBR model that is suitable for the Malaysian

equity market and consistent with international best practices. This effort includes benchmarking, research

and consultation with market participants, industry specialists and the SC. In the process, special emphasis

is placed on reduction of timeframes for capital raisings, lowering of costs for capital raisings, extensive

use of information technology and introduction of

more efficient operational processes and

procedures.

The National Bond Market Project

Amongst the recommendations put forth in the CMP

is the development of a robust, active and liquid

bond market. KLSE is actively involved in various

aspects, including the creation of an exchange

traded bond market.

The exchange traded bond

market aims to widen access

The move to disclosure based regulation is to provide a more efficient framework for corporations to

raise capital, in the shortest time possible, without compromise to investor protection.


19

IV DEVELOPMENTAL MARKET INSTITUTIONSIn enhancing industry development, the Capital Market Masterplan supports the adoption of

competitive strategies including the consolidation of exchanges, catalytic development of the

derivatives and bond markets and continued enhancement of disclosure based regulations.

The KLSE Group is committed to implementing the recommendations of the CMP in a practical

and expeditious manner, for the overall benefit of the industry.

pg1-78.qxd 1/2/02 11:45 AM

20


Informed Investing Activities

For the period under review, a total of 83 Saturday Informed Investing talks were conducted at the regional

Balai Maklumat BSKL, drawing a total audience of over 5000 participants ranging from academia,

professionals, students to the general investing public and other industry participants.

Topics covered ranged from understanding basic components of the stock market, to smart investing and

investor rights. These programmes have in turn created awareness and greater interest in the use of the

facilities and services of Balai Maklumat BSKL. For the period under review, over 52,000 visitors used the

facilities provided at the Public Information Centre in Kuala Lumpur and the regional network of Balai

Maklumat.

KLSE also organised two roadshows in 2001 Miri from 14-16 June 2001 and Kuantan from 29-30 June

2001. The roadshows are for the purpose of educating investors on fundamentals of investing and to

update the general public on the latest developments in the stock market and securities industry. Besides

KLSE, the SC, Permodalan Nasional Berhad and the respective local stockbroking companies Sarawak

Securities in Miri and Kuala Lumpur City Securities in Kuantan, participated in the roadshows.

KLSE Investors Week

The inaugural KLSE Investors Week 2000 was held from 12 to 16 September 2000. The event, which is

in line with KLSE s efforts to enhance investor education and promote the Malaysian capital market,

received overwhelming response with more than 16,000 visitors.

This was followed by KLSE Investors Week 2001 held from 5-9 September 2001, which expanded the

range of topics presented to include an overview of the Malaysian securities market, principles of informed

investing, investment options, investor rights, conventional and syariah investments. The response to the

talk sessions on the Malaysian capital market as well as the company presentation sessions was

exceptional.

Meanwhile, to further promote and educate investors, the Exchange has actively participated at various

events during the year including:

Minggu Saham Amanah Malaysia Permodalan Nasional Berhad (PNB), Jengka, Pahang (10-13 August

2000)

Minggu Saham Amanah Malaysia Permodalan Nasional Berhad (PNB), Kota Bahru, Kelantan (20-24

April 2001)

SC Organised Roadshow in Kuala Selangor (26 August 2000)

SC Organised Roadshow in Kangar (28 October 2000)

Federation of Malaysian Unit Trust Managers Unit Trust Roadshow in Kuala Lumpur (6-8 October 2001)

The Malaysian Corporate Information Technology Conference and Exhibition (CITEX) 2001 in Sunway

Pyramid Convention Centre (11-13 May 2001)

The Malaysian Finance Association Third Annual Symposium at International Islamic University, Gombak (26

May 2001)

V INVESTOR EDUCATION & TRAININGThe wealth of information and facilities provided by KLSE is an example of its significant

investment in one of the principal groups it serves the investors.

KLSE has been unrelenting in its efforts to promote investments in the stockmarket based on

fundamentals and knowledge gained from understanding the market. Investing hard-earned

money should not be determined by speculation or rumours.

The continued ability of investors to participate in the KLSE, and invest well, is of paramount

importance to the Exchange. An informed investor is a more prudent investor.

pg1-78.qxd 1/2/02 11:45 AM

International Communications TeamFurther to the announcement by the Honourable Minister of Finance in the Budget 2001, KLSE establishedan International Communications Team (ICT) in November 2000, with the purpose of fostering relations withand enhancing the information flow to the international investment community.

Specifically, ICT focuses on:Enhancing dissemination of comprehensive and accurate market and other relevant information to theinternational media; andFostering more open and active communications with the foreign investment community, including fundmanagers,

with the purpose of addressing perception gaps and correcting misconceptions that might exist regardingthe Malaysian market on a timely basis.

Among the activities that ICT has undertaken since its establishment are as follows:-

Roadshows and MeetingsIn engaging with the international investment community, meetings with international investors were heldregularly, either locally or abroad.

Apart from participation in local conferences for foreign fund managers, ICT has co-organised roadshows inTokyo, Taipei, Hong Kong and Singapore with leading international stockbroking and investment bankinggroups. These investment promotion activities have been participated by senior representatives from KLSE,SC and Bank Negara Malaysia.

In communicating facts and figures on Malaysia inthe right perspective, ICT contributed articles andadvertorials in various international investmentmagazines and handbooks. An internationaladvertising campaign was launched to buildawareness on KLSE s efforts to strengthen themarket and investment environment.

Participation in International OrganisationsKLSE continued its active participation in meetingsand events organised by international organisations.

Participation in theInternationalFederation of StockExchanges (FIBV),East Asian andOceanian Stock


21

VI INTERNATIONAL RELATIONSW ith accelerating globalisation and planned liberalisation, exchanges worldwide have quickly

moved to forge international alliances.

Exchanges no longer hold an exclusive franchise for listing and trading of instruments within

borders. Domestic exchanges are now being challenged not only by other exchanges but also

by alternative trading systems such as electronic communication networks (ECNs).

To ensure continued relevance and competitiveness, KLSE has to be at the forefront of these

developments. However, in pursuing these alliances, KLSE will not lose sight of its principal

objectives to continue to offer a secure, efficient and cost effective platform for Malaysian

corporations to raise capital and to facilitate investments to be the premier exchange for

Malaysian securities.

pg1-78.qxd 1/2/02 11:45 AM

R O YAL VISIT TO KLSE

KLSE Group was honoured to receive a very special visit on 13 February 2001 when DYMM Seri

Paduka Baginda Yang Dipertuan Agong, Sultan Salahuddin Abdul Aziz Shah and DYMM Raja

Permaisuri Agong, Tuanku Siti Aishah, visited the Exchange.

The royal couple was briefed on the operations of the KLSE Group

as well as on current industry developments. The programme also

included a visit to the KLSE Information Gallery where the royal

couple was given a complete tour of the facilities and services

provided to assist investors. As a special treat for the royal visitors,

KLSE Group staff also enacted a spirited simulation of the open

outcry trading system.

The Deputy Minister of Finance, YB

Datuk Dr Shafie Hj Mohd Salleh and

his wife, Datin Dr Hjh Mizan Abdullah,

joined the KLSE Executive Chairman

and Committee Members in welcoming

the royal guests to the Exchange.

It was certainly a privilege for KLSE

to host this visit which will be etched

in the Exchange s history.

22


In closing, thank you to the KLSE Committee Members for their support and co-operation and to all the

members of the various sub-committees of the Exchange and Group for their invaluable contributions.

To the board of directors of Securities Clearing Automated Network Services Sdn Bhd (SCANS), Malaysian

Central Depository Sdn Bhd, (MCD), Malaysia Derivatives Exchange (MDEX), Labuan International

Financial Exchange (LFX), KLSE Bernama Real-Time Information Services Sdn Bhd (KULBER), Malaysian

Share Registration Services Sdn Bhd (MSRS), the Board of Governors of the Research Institute of

Investment Analysts Malaysia (RIIAM) and Yayasan BSKL thank you for your dedication and guidance.

On behalf of the KLSE Committee and Group Management, our sincere appreciation to the Right

Honourable Prime Minister and Finance Minister for his unwavering commitment towards the sustained

development of the capital market and the national economy. Our acknowledgement for the support and

co-operation of the Ministry of Finance, Bank Negara Malaysia, the Securities Commission, the Registrar

of Companies, and related regulatory authorities in guiding us through the many trials of the year.

Finally, very special commendations to the KLSE Group staff for their untiring contribution and dedication

in enabling the KLSE Group to achieve its aspirations to spearhead continuous improvements in the

industry.

D ATO MOHAMMED AZLAN HASHIM

VI COMMENDATIONS

KLSE s Information Gallerycaptures the interest of itsmost honoured guests, theroyal couple, Seri PadukaBaginda Yang Dipertuan

Agong and Raja Permaisuri Agong.

pg1-78.qxd 1/2/02 11:45 AM

Investors DigestInvestors Digest is the official monthly publication of KLSE, offering investors and

industry participants a comprehensive review of current news, updated information and

latest statistics relating to the stock market and the securities industry.

Mid-July 2000 Mid-August 2000 Mid-September 2000 Mid-October 2000

Mid-November 2000 Mid-December 2000 Mid-January 2001 Mid-February 2001

Mid-March 2001 Mid-April 2001 Mid-May 2001 Mid-June 2001

pg1-78.qxd 1/2/02 11:45 AM

Combination of controls,

checks and balances form a

pg1-78.qxd 1/2/02 11:46 AM


25

The performance of the Kuala Lumpur Stock

Exchange (KLSE) was very much in line with that

of other markets during the period between July

2000 to end-June 2001. During the period, most of

the equity markets showed a downtrend, primarily

driven by the uncertain direction

of the global economy. The contraction in the global

technology industry on which the region s export

strength is based contributed to the weakening of

the regional economies and respective equity

markets. Some of these markets were also

influenced by social and political developments.

As at 29 June 2001, the last trading day of the

fiscal year, the KLSE Composite Index (CI) declined

240.38 points or 28.84% to close at 592.99

compared to 833.37 on 30 June 2000. Similarly,

total market capitalisation at 29 June 2001

decreased by 29.55% to RM403 billion from RM572

billion a year ago. Total volume decreased to 34

billion units valued at RM89 billion in contrast to

106 billion units valued at RM305 billion during the

previous period.

On 3 July 2000, the first trading day of the financial

year, the CI dipped below the 800-point level to

793.93 in thin trading as a result of profit-taking at

the end of June. Concerns lingered over the

expected impact of the staggered release of the

Central Limit Order Book shares, which when proved

to be unfounded, saw renewed interest in the market.

On 13 July, the CI reached a high of 860.77,

encouraged by the Right Honourable Prime

Minister s statement that Malaysia was expected to

register a GDP growth of 9% for 2nd quarter 2000,

and by expectations of a possible ratings upgrade

by Moody s. However, a report by Morgan Stanley

Dean Witter of its decision to reduce Malaysia s

weighting in its portfolio from 11.7% to 1.6%

dampened sentiment once again. By the end of

July, the CI slipped to 798.83. Total market

capitalisation fell from RM572 billion at the end of

June to RM558 billion at end-July. While average

daily volume for the month was 194 million units

compared to 163 million units in June 2000,

average daily value shrank to RM532 million

compared to RM636 million.

Trading remained quiet in August with investors

staying on the sidelines amidst a lack of positive

leads. The CI closed at 795.84 at month s end,

almost unchanged from its end-July level. Average

daily volume transacted reduced to 106 million units

valued at RM391 million while market capitalisation

was marginally lower at RM553 billion.

Uncertainty surrounding the merger of banking

institutions dominated market sentiments in

September. Added to this concern was the

possibility that the rise in crude oil prices could lead

to a slowdown in the global economy and

negatively impact Malaysian exports. The U.S. and

regional markets also recorded weak performances

on the back of profit warnings from U.S. companies

and weakness in the Euro. The CI closed at its

lowest level for the month at 713.51, a drop of

82.33 points or 10.35% from end-August. While

1 July 2000 to 30 June 2001

pg1-78.qxd 1/2/02 11:46 AM

26

Market Report 1 July 2000 to 30 June 2001

average daily volume increased to 124 million units,

average daily value declined to RM374 million.

Market capitalisation fell to RM489 billion.

Although the market continued to move lower in

early October, taking the lead from poor U.S.

corporate news, interest returned to the market mid-

month, in anticipation of an investor-friendly Budget

2001. Investors interest in the market was apparent

from the significant rise in average daily volume to

285 million units for the period 13-25 October

compared to 132 million units from

2-12 October. Buying support of index-heavyweights

lifted the CI to the month s high of 796.22 on 25

October. This uptrend, however, could not be

sustained as profit-taking set in following Budget

Day. Nevertheless, the CI managed to move higher

by 38.85 points or 5.44% to close the month at

752.36. Average daily volume for October was 205

million units valued at RM635 million. Similarly,

market capitalisation improved to RM502 billion.

In November, uncertainty over the U.S. presidential

election, worries over the future earnings of U.S.

technology stocks and concerns over local corporate

restructuring exercises pressured the CI lower to

729.95 at the close of the month, a loss of 22.41

*29.6.2001 vs 30.6.2000

Points %KLSE Indices 29.6.2001 30.6.2000 Change Change

EMAS 142.29 207.15 64.86 31.31

Composite 592.99 833.37 240.38 28.84

Industrial 1,151.73 1,444.10 292.37 20.25

Consumer Products 146.39 163.32 16.93 10.37

Industrial Products 59.31 87.19 27.88 31.98

Construction 138.37 226.75 88.38 38.98

Trading/Services 87.01 127.14 40.13 31.56

Finance 4,334.71 6,718.52 2,383.81 35.48

Property 593.18 970.02 376.84 38.85

Plantations 1,417.77 1,826.47 408.70 22.38

Mining 185.24 217.13 31.89 14.69

Syariah 93.71 132.76 39.05 29.41

Second Board 106.93 215.19 108.26 50.31

Technology 45.23 129.35 84.12 65.03

* Last trading day of fiscal year

pg1-78.qxd 1/2/02 11:46 AM


27

points or 2.98%. Average daily volume transacted

declined to 111 million units valued at RM334

million. Market capitalisation contracted to RM487

billion.

Activity in December continued to be affected by

lingering concerns over the pace of corporate and

debt restructuring, companies commitment to raise

the standard of corporate governance and potential

threats from the economic slowdown in the U.S.

Consequently, the CI ended the year 2000 at

679.64, lower by 50.31 points or 6.89% from the

previous month. Likewise, market capitalisation

shrank to RM444 billion, although average daily

volume increased to 138 million units valued at

RM348 million. The announcement on 10

December by Morgan Stanley Capital International

(MSCI) of its decision to apply the free-float criteria

on weighting of index calculations had no visible

impact on the market.

From 20 December, KLSE implemented its shorter

settlement period from T+5 to T+3, which

proceeded smoothly.

pg1-78.qxd 1/2/02 11:46 AM

28

The unexpected decision by the U.S. Federal

Reserve to cut key interest rates by 50 basis points

on 3 January managed to lift the CI higher

temporarily, in tandem

with other regional markets. Supported by a pre-

Chinese New Year run-up, the CI crossed the 700-

point level on 22 January and continued to rise

thereafter to end the month at 727.73, a gain of

48.09 points or 7.08% compared to 679.64 on 26

December 2000. Market capitalisation at end-

January 2001 improved to RM476 billion from RM444

billion at end-December 2000. Average daily

volume in January rose to 162 million units valued at

RM378 million compared to 138 million units valued

at RM348 million in December 2000.

However, the upside was capped by lack of follow-

through buying support and weakness in the U.S.

markets.

Sentiment turned negative again in February due

also to the release of poorer-than-anticipated

corporate results and weak economic data at home.

Reflecting investors’ passive mood was the

undersubscription in several Initial Public Offers

(IPOs) during the following months. The negative

undertone towards IPOs was also felt by

other markets, in particular where it involved the

telecommunication and technology sectors. The CI

closed at 709.39 for the month of February, a drop

of 18.34 points or 2.52%. Average daily volume fell

to 131 million units valued at RM376 million. Market

capitalisation shrank to RM459 billion.

A key event during the month was the launch of the

pg1-78.qxd 1/2/02 11:47 AM


29

Capital Market Masterplan (CMP) on 22 February.

The CMP contains a three-phase development plan

over a

10-year period to ensure that the domestic capital

market continues to remain relevant and

competitive. While the release of the plan had no

immediate impact on the market, it was welcomed as

a long-term measure to strengthen the industry.

The market drifted lower in March, with the CI

falling below the 700-level to end the month at

647.48. Sentiment continued to be influenced by the

U.S. markets, which went through severe

corrections. The Nasdaq Composite Index plunged

below the 2000-level for the first time in more than

two years on revisions of earnings by technology

companies. The Dow Jones Industrial Average

closed below the 10,000-level for the first time

since October 2000 on signs that the U.S.

economic slowdown was extending beyond

technology companies. This influenced not only the

regional bourses, but also the KLSE. To protect the

Malaysian economy from the adverse effects of a

U.S. economic slowdown, the Government

announced a RM3 billion stimulus package. For the

month, average daily volume decreased to 100

million units valued at RM226 million, while market

capitalisation moved lower to RM418 billion.

This correctional phase continued into mid-April,

with the CI touching 553.34 on 9 April, its lowest

level for the period under review. There were

reports of concerns that the Ringgit peg could be

reviewed due to softening regional currencies,

declining international reserves and fears of

increasing non-performing loans. Falling stock

prices resulted in recurring margin calls from

stockbrokers and financial institutions, thus

exacerbating the situation. On 23 April, the Eighth

Malaysia Plan (8MP) was tabled in Dewan Rakyat

by the Right Honourable Prime Minister. The three

key thrusts in the 8MP were to shift growth from

input-driven to knowledge-driven, speed up structural

changes in the agriculture, manufacturing and

services sectors, and strengthen socio-economic

stability by equitable distribution of the country s

wealth. Whilst there was no immediate response

from the market by the tabling of the 8MP, there

was, however, some accumulation of selective blue

chips ahead of the corporate results season. This

lent some support to the market, with the CI

recovering by 31.16 points or 5.63% from its low of

553.34 on

9 April to close the month at 584.50. Compared to

its level at end March, the CI was still lower by

62.98 points or 9.73%. Average daily volume

transacted improved to 118 million units with a

value of RM248 million. Market capitalisation,

however, fell to RM394 billion.

In early May, the market staged a brief rally with

the CI breaching the 600-level on 2 May to close at

611.42, in reaction to the government s abolishment

of the 10% exit levy on profits of portfolio

investments repatriated within one year. However,

the uptrend was not sustained and the CI fell again

below the 600-level to 576.99 on 4 May on heavy

selling of selected heavyweights. Concerns

surfaced over the poorer-than-expected banking

Investors have access to online marketinformation at the KLSE s Information Gallery.

pg1-78.qxd 1/2/02 11:47 AM

Accountability and responsibility

for every decision.

pg1-78.qxd 1/2/02 11:47 AM


31

STRENGTHENING CORPORATE GOVERNANCECorporate governance is essential for investor confidence and enhancement of shareholder value. It is only

with high standards of corporate governance that a quality and vibrant market can be cultivated, one which

is premised on principles of fairness, integrity, transparency and accountability.

Why the need for corporate governance

In Malaysia, corporate governance has always been

recognised as the primary focus of increasing

shareholders value. Laws, rules and regulations

have long been in place to ensure that the principles

of corporate governance are adhered to by listed

companies. However, with the financial crisis, came

the realisation that more had to be done in this area.

The need to enhance corporate governance was

amplified by the onslaught of globalisation. In this

era of fluid capital and transborder investments, a

market s stability and future growth hinges on a culture

of heightened corporate governance and increased

transparency.

Finance Committee on Corporate Governance

It was against this background that the Government

established the Finance Committee on Corporate

Governance to improve the corporate governance

framework for the Malaysian capital market. The

Finance Committee recommended changes to the

relevant laws, regulations and rules, formulated a

Code on Corporate Governance for the industry and

even made recommendations to enhance corporate

governance through training and education.

Measures undertaken by KLSE to enhance

corporate governance

Fully cognisant of good corporate governance and

in its efforts to continuously enhance the capital

market, the KLSE has over time implemented

various corporate governance requirements. KLSE

has required each listed company to have

independent directors since the 1980s and has

required the establishment of an audit committee in

each listed company since 1993. As an active

member participating in the Finance Committee,

KLSE quickly moved to operationalise and

implement the recommendations put forth. KLSE

has implemented applicable recommendations of

the Finance Committee in relation to the Listing

Requirements, via the introduction of the new

Listing Requirements that were announced in

January 2001. The KLSE also undertook various

other measures to heighten the level of corporate

governance amongst its listed companies via the

new Listing Requirements. Thereafter, KLSE

conducted roadshows and seminars throughout the

country to actively promote awareness of corporate

governance and encourage its acceptance by

industry participants. These activities are expected

to be on-going as part of the securities market

development programme.

Generally, the approach adopted by KLSE is to

provide a strong framework of corporate

governance consisting of minimum standards of

corporate governance which must be complied with

by all listed companies. Beyond this, listed

companies should be allowed the flexibility to

develop and adapt practices that are best suited to

their own business circumstances and market

pg1-78.qxd 1/2/02 11:47 AM

32

requirements. However, to meet the increasing

demand by investors and shareholders for more

effective disclosure of information on governance

issues, KLSE has mandated the disclosure of

information relating to the extent of compliance with

corporate governance practices and state of internal

control.

Corporate governance framework

The framework put in place by KLSE focuses on

practitioners with key responsibilities in the

corporate landscape the directors and audit

committee members. In short, KLSE sought to

create a sound framework for corporate governance

in the Listing Requirements through the following:

enhancing the definition of independent director

and strengthening the composition of the board

of directors

requiring directors to attend a prescribed

minimum number of board meetings

enhancing the composition of the audit

committee, its functions, rights and authority

express statement of directors rights

imposition of obligations on directors

Issues in Focus

LIST OF PRACTICE NOTES

Practice Notes Effective Dates

Practice Note No 1/2001 on Default in Payment 1 June 2001

Practice Note No 2/2001 on Requests for Suspension 1 June 2001

Practice Note No 3/2001 on Disclosure in relation to Internet-related Businesses or

E-commerce Activities 1 June 2001

Practice Note No 4/2001 on Criteria and Obligations pursuant to paragraph 8.14 of the

Listing Requirements 15 February

2001

Practice Note No 5/2001 on Training for Directors 15 February

2001

Practice Note No 6/2001 on Independent Directors 1 June 2001

Practice Note No 7/2001 on Classification of Applicants or Listed Issuers 1 June 2001

Practice Note No 8/2001 on Submission of Semi-annual Returns 1 June 2001

Practice Note No 9/2001 on Disclosure in relation to the Malaysian Code on Corporate

Governance and the State of Internal Control 1 June 2001

Practice Note No 10/2001 on Level of Operations 1 July 2001

Practice Note No 11/2001 on Provision of Financial Assistance 1 July 2001

pg1-78.qxd 1/2/02 11:47 AM


33

To ensure greater compliance with the Listing

Requirements, the Exchange has issued 12 Practice

Notes. These Practice Notes have been issued with

the objective of promoting better understanding and

to facilitate consistent application of the new Listing

Requirements by industry participants.

Acceptance by industry

Most importantly, however, the industry must buy-in

to the efforts made by the regulators in promoting

corporate governance. Listed companies in

particular must embrace corporate governance in

total. Why? Because good corporate governance is

the way to enhance investor confidence and in turn,

attract more investors and investments. By

committing to high standards of corporate

governance, shareholder value will be enhanced.

Investors are becoming more discerning. Empirical

studies have shown that investors are willing to pay

a premium for companies with good corporate

governance. They believe that companies with good

corporate governance will perform better over time,

leading to enhanced shareholders value and a

higher share price. Some see good corporate

governance as a means of reducing risk. Other

stakeholders, such as the employees also

recognise good governance. In this age of the

knowledge-economy, employee commitment is of

paramount importance and may be the determinant

factor in the success of a company.

Enforcement as impetus for compliance

However, rules and regulations by themselves may

not be effective if not accompanied by acceptance

and desire to comply by the industry. This is where

surveillance, monitoring and enforcement continue to

be part of KLSE s duty to the industry. KLSE has

always been committed to enforcing its Listing

Requirements objectively, promptly and without fear

or favour and it will continue to do so under the

new Listing Requirements.

In tandem with the rising expectations of directors

performance and accountability to the company and

its shareholders, KLSE is empowered under the

new Listing Requirements, to take action against

the directors personally, where they commit a

breach of the Listing Requirements. Such

enforcement actions against directors, where

necessary will serve as a wake-up call that they

have been put in positions of trust and that they

must honour this trust and act in the best interests

of the company. To assist the directors in

discharging their duties, KLSE has also mandated

them to attend training programmes on a

continuous basis.

The Adjudication Panel of the KLSE Corporate Awards ensuresthat recipients of the Awards are companies that practise highstandards of corporate governance.

pg1-78.qxd 1/2/02 11:47 AM

Issues in Focus

KLSE CORPORATE AW ARDSThe KLSE Corporate Awards were developed to honour companies listed on both the Main Board and

Second Board of the KLSE, which have shown exemplary corporate conduct in complying with the KLSE

Listing Requirements. The Awards also recognise public listed companies which have demonstrated high

standards of corporate governance, disclosure and transparency and have been proactive in investor

relations.

More importantly, the aim of the Awards is to

inspire public listed companies to practise high

standards of corporate conduct as a mechanism of

self-regulation and establish the practice of a

greater degree of accountability and responsibility to

shareholders, investors and other stakeholders.

The KLSE Corporate Awards are presented

annually with 2 categories of awards the KLSE

Corporate Excellence Awards and the KLSE

Corporate Sectoral Awards. The KLSE Corporate

Excellence Awards honour the top 2 companies

each from the Main Board and the Second Board

respectively. The KLSE Corporate Sectoral Awards

are presented to the top company of each sector

from the Main Board and Second Board. All

companies listed

on the KLSE are eligible to participate in the KLSE

Corporate Awards.

The KLSE Corporate Awards set thestandard for excellence in corporateconduct for the companies listed onthe Kuala Lumpur Stock Exchange.

pg1-78.qxd 1/2/02 11:47 AM


35

THE CAPITAL MARKET MASTERPLAN COMMITMENT TO IMPLEMENTATION

Introduction

The Capital Market Masterplan (CMP), unveiled by the Securities Commission (SC) on 22 February 2001,

provides a vital roadmap for the Malaysian capital market covering a period of ten years, i.e. 2001 2010.

The CMP aims to foster and develop a capital market, which will be internationally competitive, highly

efficient and supported by a strong and facilitative regulatory framework. In short, the CMP sets out a vision

where the Malaysian capital market should be:

Internationally Competitive in all areas necessary to support Malaysia’s basic capital and investment

needs, as well as its longer-term objectives;

Highly Efficient as a conduit for the mobilisation and allocation of funds; and

Supported by a Strong and Facilitative Regulatory Framework that enables the capital market to

perform its functions effectively and provides a high degree of confidence to its users.

The achievement of these, as envisioned by the

C M P, is through the development and achievement

of the six key objectives, composed of 24 strategic

initiatives and 152 specific recommendations.

The implementation and achievement of the

objectives, strategic initiatives and

recommendations of the CMP is characterised by a

phased approach. The approach has been

identified as involving three distinct phases:

Phase 1: Strengthen domestic capacity, and

develop strategic and nascent

sectors (2001-2003)

Phase 2: Further strengthen key sectors and

gradually liberalise market access

(2004-2005)

Phase 3: Further expansion and

strengthening of market processes

and infrastructure towards

becoming a fully developed capital

market, and enhancing

international positioning

in areas of comparative and

competitive advantage (2006-

2010)

For the KLSE Group, the significance of the CMP

is undoubtedly huge as almost two thirds of the

recommendations made in the CMP have

relevance, either directly or indirectly.

The KLSE Group

Addressing the CMP Recommendations

The KLSE Group has taken a proactive role in

implementing the recommendations contained in the

C M P. In fact, work on some of the

recommendations commenced as early as in 1998,

as reflected by KLSE s lead role in pursuing

consolidation of market institutions. The acquisition

of the Kuala Lumpur Options and Financial Futures

Exchange (KLOFFE) and subsequent merger of

KLOFFE with the Commodity and Monetary

Exchange of Malaysia (COMMEX) to form the

Malaysia Derivatives Exchange (MDEX) is a prime

example.

W ith the launch of the CMP, KLSE recognises that

to implement the recommendations would require

pg1-78.qxd 1/2/02 11:47 AM

36

Issues in Focus

efficient and effective management and co-

ordination. For this, the KLSE Group formed an

implementation committee comprising senior

management personnel to co-ordinate, monitor and

supervise the implementation of the CMP

recommendations.

CMP Implementation Committee

The internal framework to implement the CMP

recommendations within the KLSE Group is the

CMP Implementation Committee (CIC). Headed by

the Executive Chairman of KLSE, the CIC provides

an oversight to the KLSE CMP implementation

programme.

CIC will also act as the primary contact point with

the SC s Implementation Task Force and the various

W orking Committees established to oversee the

implementation of the CMP recommendations. To

enhance the efficiency and effectiveness of the CIC,

the task of implementing the CMP

recommendations is assigned to specific teams.

Project Teams

The establishment of Project Teams is to directly

undertake the specific task of implementing the

recommendations. Based on the identification of

areas related to the CMP recommendations, six

core areas have been identified, namely:

Business and Industry Development

Clearing, Settlement and Depository

Infrastructure and Technology

Intermediary Activities and Supervision

Primary and Secondary Market

Derivatives

A Project Team has been assigned to each core

area and will be responsible to represent the KLSE

Group at the various Working Committees

established by SC.

Areas and Goals

CMP Sequencing

Source: Securities

Strengthen domestic capacity, and develop strategic and

nascent sectors

Further strengthen key sectors andgradually liberalisemarket access

Further expansion and strengthening of marketprocesses and infrastructure towards becoming a fully developed capital market, and enhancinginternational positioning in areas of comparative

and competitive advantage

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Phase 1 Phase 2 Phase 3

pg1-78.qxd 1/2/02 11:47 AM


37

A number of goals have been identified and

addressed under each respective area. In respect

of Business and Industry Development, which covers

macro recommendations that affect the development

and growth of the securities and futures markets,

goals that have been identified include market

institutions reform, business development, legal and

regulatory framework, and industry training and

education.

The area of the Clearing, Settlement and Depository

team addresses the need to further enhance

support functions carried out by other market

institutions, namely the clearing and depository

houses, in order to further strengthen and support

the growth and development of the exchanges.

Goals here revolve around the clearing and

settlement infrastructure, depository facilities and

competitive level.

The growth and development of the securities and

futures markets cannot be achieved without

formulation and utilisation of the best technology

and infrastructure in meeting the needs of market

participants. Thus, the area of Infrastructure and

Technology involves issues such as market

infrastructure, technological developments and

electronic commerce.

Of concern to the area of Intermediary Activities

and Supervision are matters related specifically to

stockbroking companies, including their development

and regulation. Goals relevant to this area also

include market activities, stockbroking companies

consolidation, electronic access and market

regulation.

The Primary and Secondary Market cover goals that

concern the development, growth and regulation of

Overview of Core Areas

pg1-78.qxd 1/2/02 11:47 AM

38

D ATUK MOHAIYANI

SHAMSUDIN

Deputy Chairman

Master of Business

Administration (Finance),

Cornell University,

New York;

Bachelor of Arts

(Economics)

Knox College, Illinois;

Elected to the

Committee: 28.11.1998

present;

Elected as Deputy

Chairman: 20.11.1999

present

TAN KIM LEONG, JP

Committee Member

Member of Malaysian

Institute of Accountants;

Member of Malaysian

Association of Certified

Public Accountants;

Fellow of Institute of

Chartered Accountants,

Australia;

Fellow of Malaysian

Association of the

Institute of Chartered

Secretaries &

Administrators;

Government appointed

Committee Member:

18.12.1996 present

ABDUL KADIR HJ MD

KASSIM

Committee Member

Bachelor of Laws (Hons)

University of Singapore;

Advocate & Solicitor,

Malaysia;


Committee Member:

1.3.1998 present

ABDUL JABBAR ABDUL

MAJID

Committee Member

Member of Malaysian

Institute of Accountants;

Member of Malaysian

Association of Certified

Public Accountants;

Fellow of Institute of


Australia;


Committee Member:

18.1.2001 present

pg1-78.qxd 1/2/02 11:48 AM


39

CHAN GUAN SENG

Committee Member

Bachelor of Commerce

(Hons), University of

Melbourne, Australia;

Member of Australian

Society of Certified

Practising Accountants;

Member of Institute of


Australia;

Elected to the


18.12.1988;

6.12.1989 18.12.1994;

5.12.1996 present

ABDUL WAHAB NAN

ABIDIN

Committee Member

Bachelor of Arts (Hons),

University Malaya;

Elected to the


present

PETER LEONG TUCK LENG

Committee Member

Master of Science

London School of

Economics

Elected to the


present

YUSLI MOHD YUSOFF

Committee Member

Bachelor of Arts (Hons)

Economics, University of

Essex, England;

Member of Institute of


England and Wales;

Elected to the


present

D ATO MOHAMMED AZLAN HASHIM

Executive Chairman

Bachelor of Economics (Accounting), Monash

University, Australia;

Member of Malaysian Institute of Accountants;

Member of Institute of Chartered Accountants,

Australia;

Government appointed Committee Member:

18.12.1996 31.12.1997;

Government appointed Executive Chairman:

1.1.1998 present

pg1-78.qxd 1/2/02 11:48 AM

40


Deputy President II

Md Nor Ahmad

Deputy President I


President

Chuah Mei Lin

Senior Vice President, Legal Advisory & Membership Services, Market Supervision Group

Devanesan Evanson

Senior Vice President, Compliance & Inspection,Market Supervision Group

W ong Kay Yong

Senior Vice President,Surveillance & Investigation,Market Supervision Group

Lim Boon Hang

Vice President, Legal Advisory & Membership Services, Market Supervision Group

pg1-78.qxd 1/2/02 11:48 AM


41

Tan Chun Weng

Senior Vice President, Financial Review &Surveillance, Listing Group

Selvarany Rasiah

Legal Advisor, Listing Group

Latifah Hj Mohd Yusof

Senior Vice President, Listing Operations, Listing Group

Norhan Che Awang

Vice President, Inspection,Market Supervision Group

Johan Abdullah

Senior Vice President, Securities Issues, Listing Group

Ch ng Boon Huat

Vice President, Financial Review &Surveillance,Listing Group

Ahmad Aznan Hj Nawawi

Senior Vice President, Secretarial & Legal Affairs


Senior Manager, Secretarial & Legal Affairs

pg1-78.qxd 1/2/02 11:48 AM

42

Khairussaleh Ramli

Vice President, Business Development &International Affairs,Policy & Development

Abdul Hamid ShMohamed

Senior Vice President, Policy & Development

Lew Lup Seong

Senior Vice President, Finance & Administration

Abdul Razak Mohd Amin

Senior Vice President, Group Human Resource

Qua Gek Kim

Senior Vice President, Public Information

Tai Yoke Peng

Vice President, Organisation & Methods, Policy & Development

Zulkifli Harun

Senior Vice President, Information Services/Information Technology

Yew Kim Keong

Senior Vice President, Facilities Management

pg1-78.qxd 1/2/02 11:48 AM


43

Alice Thomas

Vice President, Group Communications,Corporate Affairs

Low Pheng

Vice President, Group Internal Audit

Mohamad Azam Ali

Vice President, Public Affairs, Corporate Affairs

Shukoriah Mohd Noor

Senior Manager, Public Information Centre,Corporate Affairs

pg1-78.qxd 1/2/02 11:48 AM

Balancing the need for

regulation with the practical

requirements of business efficacy.

pg1-78.qxd 1/2/02 11:48 AM


45

Kuala Lumpur StockExchange (KLSE)

Malaysia DerivativesExchange Bhd

(MDEX)

Labuan InternationalFinancial Exchange

(LFX)

Securities ClearingAutomated Network Services

Sdn Bhd(SCANS)

Malaysian CentralDepository Sdn Bhd

(MCD)

KLSE-Bernama Real-Time InformationServices Sdn Bhd

(KULBER)

Malaysian ShareRegistration Services

Sdn Bhd(MSRS)

KLSE PropertyManagement Sdn Bhd

(KPM)

Yayasan BSKL (YBSKL)

Research Institute of Investment

Analysts Malaysia(RIIAM)

Malaysian DerivativesClearing House Bhd

(MDCH)

pg1-78.qxd 1/2/02 11:48 AM

46

Tan Kim Leong

(KLSE, SCANS, KPM, MCD, RIIAM)

Datuk MohaiyaniShamsudin

(KLSE, SCANS, RIIAM)

Dato Mohammed Azlan Hashim

(KLSE, MDEX, LFX,SCANS, KPM, MCD,KULBER, MSRS, YBSKL,


(KLSE, LFX, SCANS,YBSKL)

Abdul Jabbar Abdul Majid

(KLSE, MDEX, LFX,SCANS)

Chan Guan Seng

(KLSE, SCANS, MCD,YBSKL, RIIAM)

pg1-78.qxd 1/2/02 11:48 AM


47

Yusli Mohamed Yusoff

(KLSE, MDEX, SCANS)

Peter Leong Tuck Leng

(KLSE, LFX, SCANS)


(KLSE, SCANS)

Tunku Dato SeriNadzaruddin TuankuJa afar

(MDEX)

Md Nor Ahmad

(MDEX, LFX, KPM,KULBER)

Iskander Ismail

(MDEX)

W ong Fook Wah

(MDEX)

Dato Hwang Sing Lue

(MDEX)

pg1-78.qxd 1/2/02 11:48 AM

48

Alvin Kwan Wing Yew

(MDEX)

Dato Ahmad JohanRaslan

(LFX)

Tan Sri Wan Azmi WanHamzah

(LFX)

Dr Mohamed Arif Nun

(LFX)

Mohd Nasir Ali

(LFX)

Larry Gan

(LFX)

pg1-78.qxd 1/2/02 11:48 AM


49

Izzuddin Tajudin

(LFX)

Chin Chee Kee

(LFX)

Ridzuan Salleh

(LFX)

Dr Ghazali Atan

(LFX)

Prof Madya Dr MohdDaud Bakar

(LFX)

Dato Hj MegatNajmuddin Khas DatoSeri Dr Hj Megat Khas

(SCANS, MSRS)


(SCANS, KULBER, YBSKL,RIIAM)

pg1-78.qxd 1/2/02 11:48 AM

50

Datuk Abdul Kadir Jasin

(KULBER)

Dato Seri Syed ZainolAnwar Jamalullail

(MCD)

Datuk Amirsham A Aziz

(MCD)

Datuk Teh Ghee Kok

(KULBER)

Leong Koon Choy

(KULBER)

Jaafar Hussin

(KULBER)


(MSRS)

pg1-78.qxd 1/2/02 11:48 AM


51

Datuk Hj Abdul KarimHarun

(YBSKL)

Mohamad Shuib Abdul Ghani

(MSRS)

Tan Sri Zulkifli Mahmood

(MSRS)

Dato Che Mohd AnnuarChe Mohd Senawi

(YBSKL)

Dato N Sadasivan a/l NN Pillay

(YBSKL)

Tan Sri Dato Dr AbdullahSanusi Hj Ahmad

(YBSKL/RIIAM)

Tan Sri Dato Dr SyedJalaluddin Syed Salim

(RIIAM)

pg1-78.qxd 1/2/02 11:48 AM

52

Malaysia DerivativesExchange Bhd

The 2000/2001 financial year marks a significant

landmark for the Malaysian derivatives industry.

In January 1999, a sale and purchase agreement

was finalised between the Kuala Lumpur Stock

Exchange (KLSE) and shareholders of KLOFFE

Capital Sdn Bhd, resulting in the Kuala Lumpur

Options and Financial Futures Exchange Bhd

(KLOFFE) becoming a subsidiary of KLSE.

In September 2000, approvals were obtained from

members of the Commodity and Monetary

Exchange of Malaysia (COMMEX), the Board and

shareholders of KLOFFE and the regulatory

authorities for the merger of the two exchanges to

form a single derivatives exchange.

The strategic objective for the merger exercise was

to create a single, efficient and cost effective

marketplace for Malaysian derivatives. The merger

was also aimed at enhancing the product range

offered by the sole exchange for all three market

segments, namely equity derivatives, financial

derivatives and commodity derivatives.

The Malaysia Derivatives Exchange Bhd, or in

short, MDEX came into being following the

completion of the merger. MDEX was officially

launched on 11 June 2001.

As an integrated derivatives exchange, MDEX

currently offers a wide range of derivatives

products, including the KLSE Composite Index

(KLSE CI) Futures and Option, the 3-Month Kuala

Lumpur Interbank Offered Rate (KLIBOR) Futures

and the Crude Palm Oil (CPO) Futures.

pg1-78.qxd 1/2/02 11:48 AM


53

Siah Boon Peng

Senior Manager, Trading

Raghbir Singh Bhart

General Manager

Dr Zaha Rina Zahari

Chief Operating Officer

Edmund Koh

Manager, Management InformationSystems

V Pasupathy

Senior Manager, Audit & Compliance

Allan Au Yong

Senior Manager, Business Development

Rosli Mahmood

Senior Manager, Market Surveillance

Peter Mah

Senior Manager, Finance & Administration

Mohamed Shah Shariff

Senior Manager, Information Technology

Manoj Devadasan

Senior Manager, Member, Legal Affairs Human Resource

K Sree Kumar

Senior Manager, Strategic Planning & Product Development

pg1-78.qxd 1/2/02 11:48 AM

The objective of MDEX is to provide a single,efficient and cost-effective marketplace for Malaysianderivatives.

54

MDEX also aims to provide the following benefits:-

i. To meet investors needs for innovative and

flexible investment tools capable of exploiting

global market opportunities,

ii. To provide the conceivable above-average

returns and portfolio protection to investors,

iii. To provide the ability to engage in hedging

activities which in turn can generate a more

efficient financial illustration of investment

portfolios.

Trading will remain on the KLOFFE Automated

Trading System (KATS), an electronic screen-based

trading system. However, trading on the Crude Palm

Oil Futures and the 3-Month KLIBOR Futures

Contracts is currently conducted on the Open Outcry

system. The immediate priority of MDEX is to

transfer these contracts to the KATS. Appropriate

amendments and measures are being made to

ensure smooth conversion which is expected to be

completed by the end of 2001.

As part of our continuous efforts to have more

derivatives products to meet the requirements of all

investors, the Malaysian derivatives market marked

a milestone with the launching of the Kuala Lumpur

Stock Exchange Composite Index (KLSE CI) Option

contract in December 2000. The options launch saw

MDEX embarking on an intensive programme to

educate investors in making full and effective use of

pg1-78.qxd 1/2/02 11:48 AM


55

pg1-78.qxd 1/2/02 11:48 AM

56

pg1-78.qxd 1/2/02 11:49 AM


57

Labuan International Financial Exchange

The 2000/2001 financial year proved to be a

momentous one for Labuan International Financial

Exchange Inc. (LFX Inc) especially with the official

launch of the Labuan International Financial

Exchange (LFX) on

23 November 2000 by the Minister of Finance. This

represented another milestone in the development

of Labuan as an International Offshore Financial

Centre (IOFC) as the launching was in conjunction

with the island’s 10th anniversary as an IOFC.

As a web-based exchange, LFX offers its

participants fast and efficient access to the capital

market. Its participants can be based anywhere in

the world and all the major functions of LFX, be it

the application for a participant s licence,

submission of listing applications, trade confirmation

or subsequent corporate announcements, can be

done via the web through its @LFX System which

went live on 15 October 2000. LFX acts as the

platform for companies to raise funds and capital

through the innovative listing of a range of multi-

currency financial instruments.

LFX operates via a licensing system whereby

participation on LFX is through its Listing Sponsors

and Trading Agents. Listing Sponsors are

responsible for the financial instruments listed while

Trading Agents are used by investors to trade in

the instruments listed. Trading on LFX can be done

24 hours a day, 7 days a week although the

confirmation of trades can only be done during

LFX s operating hours.

As at 30 June 2001, there were 4 Listing Sponsors

and 2 Trading Agents licensed by LFX Inc. The Listing

Sponsors are Multimedia Development Corporation

Sdn Bhd (MDC), K & N Kenanga Holdings Bhd,

Kuala Lumpur City Securities Sdn Bhd and AMMB

International (Labuan) Ltd. The two trading agents

are K & N Kenanga Holdings Bhd and Kuala

Lumpur City Securities Sdn Bhd.

Still being in the initial stages of operations, KLSE

S Loganathan

General Manager

Megat Joha Megat Abdul Rahman

Assistant General Manager

lfx

pg1-78.qxd 1/2/02 11:49 AM

58

as sole shareholder, increased the paid-up capital

of LFX Inc from USD100,000 to USD2 million on 29

June 2001.

As a web-based Exchange, LFX offers participants fast and efficient access to theworld s capital markets.

pg1-78.qxd 1/2/02 11:49 AM


59

Securities Clearing Automated NetworkServices Sdn Bhd

scansThe Malaysian securities industry has witnessed

many changes and developments which have

brought many enhancements for the benefit of the

investors, the market participants and the nation as

a whole. In view of such rapid changes and

developments SCANS is continuing to assume a

more active role in the securities industry,

particularly in respect to the clearing and settlement

of Market Contracts and other services which would

serve to benefit the industry.

In conjunction with this, SCANS has undertaken a

number of activities/projects during the financial

year to further enhance and strengthen the

infrastructure services of the local market and these

activities/projects. The significant developments

which SCANS achieved during the year under

review are:

Settlement Cycle of T + 3

The most notable development in the year 2000

with regard to the clearing and settlement

infrastructure is in respect of the move from a

T+5 settlement period to a shorter settlement

period of T+3. This was implemented on 20

December 2000.

The conversion to T+3 on 20 December 2000

was smooth and orderly. The successful

implementation of T+3 represented great efforts

across the entire securities industry. There was a

high degree of coordination, cooperation and

synchronisation among the industry participants

to ensure a smooth transition to the shorter

settlement period. Extensive conversion tests

Azman Shah Md Yaman

Legal Advisor, Corporate Affairs, Legal & Compliance

Fathi Ridzuan Ahmad Fauzi

Assistant General Manager,Finance & Administration


General Manager

Lim Lean Beng

Senior Manager, Clearing

pg1-78.qxd 1/2/02 11:49 AM

60

To improve the overall efficiency of the payment process,payment settlement data is uploaded into the Desktop Banking System.

and not the Direct Business Contracts. The

new rate aims to improve liquidity and promote

efficient price discovery of the stockmarket,

hence making KLSE and Malaysia a more

attractive investment destination for all

investors.

conducted in the months prior to the

implementation of T+3 served as a gauge of

participants preparedness for the switch to the

shortened settlement cycle, thus allowing

participants to adjust to new processing

routines.

The T+3 settlement cycle will create a much

stronger and resilient settlement system which

will maximise investors confidence in our

market and enhance our competitiveness with

that of other markets world wide. The benefits of

implementing T+3 include reducing operational,

credit, market and systemic risk. T+3 also

standardises the settlement system and places

Malaysia in the ranks of other major

exchanges in line with international settlement

best practices.

Upload of Settlement Data into Desktop

Banking Systems

As part of the ongoing efforts to improve the

overall efficiency of the payment process,

SCANS had implemented a process whereby

the payment settlement data would be

uploaded into the Desktop Banking Systems

via diskette with effect from June 2001.

Reduction of Clearing Fee

In line with the government and industry

regulators commitment to liberalise the capital

market, SCANS has implemented the new

clearing fee rate with effect from 1 July 2001.

The clearing fee has been reduced from the

current rate of 0.05% to 0.04%, subject to a

maximum of RM200 per contract. The new

rate affects only trades done on the Exchange

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61

Malaysian Central Depository Sdn Bhd

The financial year under review witnessed the

consolidation of the stockbroking industry and

financial institutions and the creation of a new

category of intermediaries known as Universal

Brokers which are able to take on a wider range of

activities and establish their own branch networks

throughout the country. This resulted in the

reduction of the number of MCD s Authorised

Depository Agents and Authorised Direct Members

(ADMs). In addition, these mergers and acquisitions

among the participants gave rise to the conversion

of some of the existing ADAs into branches and the

cessation of a number of ADMs.

pg1-78.qxd 1/2/02 11:49 AM

62mcd


General Manager

Ahmad Aznan Nawawi

Senior Vice President,Corporate Affairs, Legal & Compliance

Ang Ting Kang

Vice President, Information Technology

Nadzirah Abd Rashid

Senior Manager, Finance & Administration

Chua Kong Khai

Vice President, Depository

pg1-78.qxd 1/2/02 11:49 AM


63

its participants. The new manuals superseded the

previous versions issued in 1995, and are aimed at

strengthening the CDS operations of ADAs and

ADMs.

Effective 2 January 2001, all Provisional Allotment

Letters (PALs) are prescribed into the CDS. The

prescription process has been expedited to enable

the listed companies to obtain their funds sooner

and the investors to obtain their new securities

faster.

Operational Update

During this period, the number of CDS accounts

opened was 77,336 (i.e. an average of 6,444 per

month) bringing the total number of accounts in the

CDS to 2.78 million as at 30 June 2001.

The financial period from 1 July 2000 to 30 June

2001 saw the number of securities immobilised in

the Central Depository System (CDS) increase from

179.8 billion for the previous year to 196.3 billion

securities.

During this financial period, the CDS facilitated the

settlement of 34.9 billion securities traded on the

stock exchanges and the movement of more than

39.4 billion securities by way of the ordinary

transfer facility.

MCD s services are utilised by a total of 64 share

registrars, representing 812 public listed companies,

809 of which are listed on the KLSE and 3 on the

Malaysian Exchange of Securities Dealing and

Automated Quotation (MESDAQ). During the financial

period, a total of 13,241 Record of Depositors

(RODs) detailing investor holdings in the CDS were

produced upon issuers requests.

Compensation Scheme and Insurance

MCD maintains a Compensation Scheme for the

purpose of settling claims by depositors against the

company, its authorised depository agents and

nominees. The scheme is funded by the

Compensation Fund of RM50 million, and a crime

and professional liability insurance policy of RM25

million. In addition, all ADAs are required to

maintain adequate insurance coverage in the form

of crime and professional liability insurance.

Developments During the Year

In facilitating the on-going mergers, MCD

introduced a new facility called Interbranch

Transaction (IBT) on

20 November 2000. The main objective of this

facility is to allow depositors to perform CDS

transaction requests such as deposits, transfers,

updating and closure of accounts, account balance

inquiries and printing of ad-hoc statements at the

ADA branch office other than the branch at which

the relevant account is maintained.

MCD signed a service level agreement on the

Electronic Share Application (ESA) facility with the

MIDF Corporate and Consultancy Services on 8

March 2001. This is in addition to a similar

agreement between MCD and the Malaysian

Issuing House Sdn Bhd (MIH) which was signed on

16 July 1999. The ESA facility provides investors with

an alternative method for applying for shares of

Initial Public Offerings (IPOs) via Automatic Teller

Machines (ATMs) of participating financial

institutions without having to complete the IPO

subscription forms.

During the period, MCD issued new sets of the

procedures manual for its ADAs and ADMs after

conducting extensive updates and amendments and

taking into consideration the views and feedback of

At the MCD counter, MCD s staff members are on handto assist investors with their CDS related queries.

pg1-78.qxd 1/2/02 11:49 AM

kulber

Information is crucial in promoting informed

i n v e s t i n g .

1 of the ways to optimise resources and profitability

in today s rapidly changing market is to act on the

right information at the right time. Whether it is for

an individual investor who is building a securities

portfolio or a research house which needs

information to build a database for investment

analysis, KULBER intends to become the premier

real-time and delayed market information provider

of the full range of information needs of the

investing community.

As such, KULBER which has a local and

international subscriber base, continuously explores

new avenues to improve its services by taking

advantage of the latest technological innovations in

its mission to be a disseminator of information which

is:

Accessible Secure

Accurate Affordable

Timely

As a provider of such information, KULBER will be

contributing towards enhancing investors

knowledge and understanding of the Malaysian

market, thus encouraging investments in Malaysian

companies.

KLSE-Bernama Real-Time Information Services Sdn Bhd

64

pg1-78.qxd 1/2/02 11:50 AM

msrs

Abdul Nasir Ahmad Daud

General Manager

As economic conditions improve,MSRS anticipates handling a greatervolume of corporate action activities.


During the year under review, MSRS introduced an

alternative mode of dividend payment through an

electronic payment system whereby shareholders

are given the opportunity to choose to receive the

dividend monies either by cheque or by crediting

their bank account electronically.

MSRS has also embarked on the dissemination of

shareholder information via the Internet through its

web-site, w w w.msrssb.com. This will further

enhance accessibility to information on MSRS s

client companies. MSRS is also in the process of

providing support services to unit trust companies.

Being the largest share registrar in Malaysia, MSRS

shall continue be in the forefront of the industry

providing new technologically advanced services to

its client companies.

As economic conditions improve, we anticipate

better results in the near future with increased

volume of corporate action activities. In line with the

KLSE s new Listing Requirements, the minimum

paid-up capital for Main Board and Second Board

companies must be RM60 million and RM40 million

respectively. The deadline for compliance with the

capital restructuring is by year 2003. MSRS expects

to facilitate the impending restructuring exercises

which will most likely be in the form of rights issues,

bonus issues or special issue to entitled

Malaysian Share Registration ServicesSdn Bhd

pg1-78.qxd 1/2/02 11:50 AM

66

KLSE PropertyManagement Sdn Bhd

Azmi Othman

Manager, Building Management

kpmAbdul Razak Mohd Amin

General Manager

Security Services

KLSE Property Management provides security

services to the KLSE Group. These services

include:

Physical security

This covers the protection of the premises,

property and people. Physical security involves

the use of physical barriers, manpower and

complementary services as well as electronic

technology in the form of closed-circuit

television, alarms systems and access control to

provide the required protection.

Information security

This deals with the protection of proprietary or

sensitive information.

KLSE Property Management Sdn Bhd, formerly

known as KLSE Realty Sdn Bhd, is a wholly owned

subsidiary of KLSE. KPM was activated as an

operating entity effective 1 May 2000.

The principal activities of KLSE Property

Management are as follows:

Property Management

KLSE Property Management provides

management services with respect to the

maintenance and enhancement of the KLSE

building infrastructure and its facilities.

pg1-78.qxd 1/2/02 11:50 AM


67

BackgroundYayasan BSKL (YBSKL) is a foundation establishedby Kuala Lumpur Stock Exchange (KLSE) in 1998to provide assistance, support and financial aid forcommunity and educational activities, projects andprogrammes with the objective of improving thestandard of living, skills and professionalism ofMalaysians.

YBSKL obtained tax-exempt status in May 1999from the Inland Revenue Board under Section 44(6) and Schedule 6, Paragraph 13 of the IncomeTax Act 1967. Funds in YBSKL started withvoluntary salary deductions by KLSE Group staff.Subsequently, the KLSE Group provided alaunching grant to YBSKL to fund its communitydevelopment projects.

YBSKLs VisionYBSKL s vision is to assist in the balanceddevelopment of a caring Malaysian community,through various efforts including to:

Provide assistance to the members in societywith special requirementsProvide funds and support to Malaysianspursuing any level of educationOrganise and support schemes and projects forthe promotion of the well being and welfare ofthe special members in societyProvide assistance to voluntary organisations,having the same charitable objectives ofYayasan BSKLEncourage active participation from the KLSEstaff in all activities of Yayasan BSKL

Management of YBSKLYBSKL is governed by a Board of Governors.There are 8 members of the Board of Governorscomprising the Executive Chairman of the KualaLumpur Stock Exchange, 2 KLSE CommitteeMembers, the President of KLSE and 4 externalmembers. They are appointed by the KLSECommittee.

Yayasan BSKL

The Board of Governors is assisted by a WorkingCommittee comprising KLSE Group staff from alllevels. The Working Committee implements activitiesin line with the objectives of YBSKL.

The Working Committee is assisted by the KLSEGroup Community Club, which comprisesvolunteers within the KLSE Group. The Clubprovides the manpower for the activities of YBSKL.

Activities/ProgrammesSince its establishment in 1998, Yayasan BSKL hasadopted a comprehensive approach in contributingto community development. To date, Yayasan BSKLhas worked with over 250 community organisationsthroughout Peninsular Malaysia, including Sabahand Sarawak contributing over RM2 million tovarious community programmes.

The reach and diversity of Yayasan BSKLcontributions and programmes have touched manylives from those who are terminally ill to the elderly,orphans and those with special needs.

Community programmes which have beenorganised range from visits to homes and vice versa,educational tours and camps, telematches andexcursions to places of interests.

Complementing these various communityprogrammes, Yayasan BSKL has also offered studyloans to 62 students in local public universities. Thisyear, for the first time, YBSKL is offering the StudyLoan Scheme to those pursuing a Diploma course. Tomake the Study Loan Scheme even more attractivethis year, YBSKL has also reclassified the interest-free Study Loan to a convertible loan. This meansthat upon procuring a degree, qualified studentswould have the opportunity to have these loansconverted to full scholarships.

YBSKL has also launched for the first time, thetutoring assistance programme for children ofcommunity homes preparing for majorexaminations. This programme is offered to childrenin community homes nationwide.

This year, YBSKL also played an active role inhosting The Edge Kuala Lumpur Annual Rat Race2001, an event which saw corporate executivesrunning a route within the city for charity. For thisrun, RM450,000.00 was collected for distribution to5 community organisations, namely, MalaysianParalympic Council, Spastic Children s Associationof Selangor and Wilayah Persekutuan, The NationalAutism Society of Malaysia, The National KidneyFoundation of Malaysia and HOSPIS Malaysia.

For the rest of the year, YBSKL will continue toorganise fun and creative programmes includingvisits to public listed companies, environmentalawareness camps and festive celebrations.

pg1-78.qxd 1/2/02 11:50 AM

68

Date Activities

15 July 2000 Sukaneka YBSKL 2000 10 homes participated.

28 August 2000 Contributions to 25 charitable organisations at the KLSE Group Charity Luncheonheld in conjunction with National Day.

29 September 2000 English Camp for orphanages at D Ark Training and Resort. 5 homes participated.1 October 2000

14 October 2000 Contributions of educational materials to Kiwanis Down Syndrome Foundation(Petaling Jaya Centre) in conjunction with its Concert cum Graduation ceremony.

17 October 2000 Blood donation campaign for Hospital Kuala Lumpur.

11 November 2000 Visit to the Tara Bhavan orphanage in conjunction with Deepavali.

25 November 2000 Contributions to 20 charitable organisations in conjunction with KLSE MembersDinner 2000.

14 December 2000 Majlis Berbuka Puasa at KLSE with residents of Pertubuhan Anak Yatim dan IbuTunggal, Kampung Medan, Petaling Jaya.

15 January 2001 Contributions to 30 charitable organisations in conjunction with KLSE GroupAnnual Staff Hari Raya and Chinese New Year Lunch.

17 February 2001 A day of activities with residents of children’s and old folks’ homes in conjunctionwith Hari Raya and Chinese New Year.

24 March 2001 Educational visit to Petronas Science Centre and National Planetarium for 2children s homes.

April 2001 Launch of Tutoring Programme for children of community homes preparing formajor examinations.

23 May 2001 Blood donation campaign for Hospital Kuala Lumpur.

May 2001 Launch of Convertible Interest-free Study Loan Scheme for the academic year2001/2002.

9 June 2001 First aid training for KLSE Group Community Club Members.

16 June 2001 Educational visit to Kuantan Flour Mills Bhd for children from Rumah Anak-anakTengku Ampuan Fatimah Kuantan, Pahang.

30 June 2001 Seminar Kerjaya di Pasaran Saham jointly organised with YATIM for 40 poorstudents from several schools in the district of Bentong, Pahang.

21 July 2001 Educational visit to Oriental Food Industries in Melaka for 30 students fromRumah Anak Yatim Islam Darul Ai-Tam, Melaka.

23 July 2001 Presentation ceremony and press conference for the Convertible Interest-FreeStudy Loan Scheme for the academic year 2001/2002.

3-5 August 2001 Motivational and English Camp for 60 youths from 5 homes at Nur LembahPansun.

8 August 2001 Yayasan BSKL hosted the Annual Kuala Lumpur Rat Race for Charity 2001. Thefunds raised were equally distributed amongst 5 charitable organisations.

29 August 2001 Contributions to 30 charitable organisations in conjunction with the 44th MerdekaDay celebration.

22 September 2001 Sukaneka YBSKL 2001 for 204 children from 10 community homes.

pg1-78.qxd 1/2/02 11:50 AM


69

Left Top to Bottom:

Educational visit to Oriental Food Industries HoldingsBerhad.

Visit to orphanage in conjunction with Deepavali.

Majlis Berbuka Puasa.

Right Top to Bottom:

A day with the children and old folks.

Sukaneka YBSKL 2001.

Contributions

Details of contributions to various causes as at 30 September 2001 are as follows:

No Categories/Causes Amount (RM) Percentage (%)

1. Children s homes 702,502 33.04

2. Senior citizens 164,302 7.73

3. Educational support 339,752 15.98

4. Special care 862,846 40.58

5. Community projects 56,629 2.67

TO TAL 2,126,031 100

pg1-78.qxd 1/2/02 11:50 AM

Research Institute of Investment Analysts Malaysia

70

The introduction of the KLSE s new Listing

Requirements in February 2001 has resulted in

tremendous increase in the activites of RIIAM as it

was appointed the sole provider of the Mandatory

Accreditation Programme (MAP) for directors of

public listed companies. RIIAM has also been

directly involved in the organisation of various

roadshows, workshops and a major conference in

relation to the new Listing Requirements.

Additionally, RIIAM continued to conduct

programmes throughout the year for markets

participants, investors and the general public.

RIIAM also organised in-house programmes for the

staff of the KLSE Group.

RIIAM organised more than 130 training sessions/

programmes, which include in-house programmes

for the KLSE Group staff and public programmes

for various target audiences in the industry. This

works out to an average of 11 sessions per month.

A substantial number of the programmes for markets

professionals were specially designed

seminars/workshops on Malaysian Accounting

Standards Board (MASB) standards and the

Mandatory Accreditation Programme (MAP)

sessions for directors of public listed companies.

W ith the introduction of the Continuing Professional

Education (CPE) for dealers representatives by the

Securities Commission in January 2001, RIIAM has

been recognised as a training provider for CPE.

The most significant activity for RIIAM is the

implementation of the MAP for directors of public

listed companies. Pursuant to the introduction of the

new Listing Requirements in February 2001, RIIAM

has been assigned by KLSE to conduct the MAP

which consists of a one and a half day seminar.

RIIAM has been conducting the MAP sessions since

April 2001. Apart from the weekly MAP sessions for

the public, RIIAM has also conducted in-house

pg1-78.qxd 1/2/02 11:50 AM


71

MAP sessions for several large corporate groups as

requested. More than 3,000 directors of public listed

companies have attended the MAP to date.

In September 2000, RIIAM assisted KLSE to

organise the Investors Week 2000. RIIAM was

tasked to organise Investor Education talks, which

comprised of various topics ranging from basic

information on the stock market and investment to

professional topics like derivatives and other

instruments. The talks were an overwhelming

success. Apart from Investors Week, together with

KLSE, RIIAM has participated in numerous

roadshows. The roadshows/exhibitions have been a

resounding success as it allows the investing public

the opportunity to interact and provide comments

on investment related issues.

Abdullah Naib

Director

riiam

As the training arm of KLSE and centre for professionaldevelopment and investor education in the securitiesindustry, RIIAM is promoting high standards ofcompetency in analysis and research activities.

pg1-78.qxd 1/2/02 11:50 AM

72

RIIAM has assisted KLSE in organising road-shows

to introduce the new Listing Requirements

t h r o u g h o u t

the country. A one day conference on the new

Listing Requirements was organised in March 2001.

The conference was very well received with more

than 500 participants. RIIAM has also assisted the

Institute of Internal Auditors Malaysia to organise

workshops on Statement on Internal Control:

Guidance for directors of public listed companies .

The RIIAM Diploma in Investment Analysis

programme has come into its eighth year in 2001

with classes conducted in Kuala Lumpur, Penang

and Kuching. The collaboration with University

Putra Malaysia to conduct the Diploma programme

for its students has entered into its second year

with an increasing number of students taking the

programme. Since the collaborative effort has

proven to be successful, RIIAM is approaching other

public universities with the view of having similar

collaborations.

KLSE is offering 15 scholarships each year for

qualified candidates of the RIIAM diploma

programme. This is further strengthened with the

commitment of the Association of Stockbroking

Companies in Malaysia (ASCM) to contribute

awards and cash prizes for the top 3 graduates of

the diploma programme for 5 consecutive years

beginning 2000. In addition, ASCM will offer 5

scholarships to employees of stockbroking

companies to pursue the diploma programme.

KLSE-RIIAM Information Service (KLSE-RIS)

recorded an increase in the number of users and

During the year, RIIAM organised more than 130 trainingprogrammes which included in-house programmes forKLSE Group staff and public programmes for varioustarget groups.

pg1-78.qxd 1/2/02 11:50 AM


73

Calendar of Events

held later that evening at Hotel Nikko Kuala

Lumpur.

20 December 2000Shorter T + 3 Delivery and Settlement Period

The T + 3 delivery and settlement period was

introduced on 20 December 2000. The benefit of T

+ 3 extends to various industry participants.

Investors will particularly benefit from the shorter

settlement period which reduces risk and exposure

as the shares and cash are settled earlier.

2 January 2001Electronic Management of Provisional

Allotment Letters

All Provisional Allotment Letters (PALs) in relation

to abridged prospectuses despatched on or after 2

January 2001 will be allotted and managed

electronically under the Central Depository System

20 November 2000Inter-branch Transaction

Malaysian Central Depository introduced a new

facility called Inter-branch Transaction (IBT) with

effect from

20 November 2000.

W ith the implementation of IBT, depositors can now

perform their CDS transactions such as transfers,

deposits, updating of accounts, closure of accounts,

account balance enquiries and printing of ad-hoc

statements at any branch offices without having to

go to the home branch where the CDS account is

maintained.

23 November 2000Launch of Labuan International

Financial Exchange

Labuan International Financial Exchange (LFX) was

established on 23 November 2000 in Labuan,

Malaysia s international offshore financial centre. LFX

is primarily web-based with all functions of the

Exchange from the application for a market

participant s licence to the trading of financial

instruments and the dissemination of information

done on the @ LFX system via the Internet.

25 November 200024th KLSE Annual General Meeting & Annual

Members Dinner

The KLSE s 24th Annual General Meeting was held

on 25 November 2000 at Exchange Square in Bukit

Kewangan, while the Members Dinner 2000 was

pg1-78.qxd 1/2/02 11:50 AM

74

unless specifically exempted under the law or MCD s

rules. The main objective of the immobilisation is to

ensure greater security and operational efficiency in

managing listed securities.

22 January 2001New Listing Requirements

The new KLSE Listing Requirements were issued

as an integral part of KLSE s continuous efforts to

develop a dynamic and robust stock market as well

as to promote the credibility and efficiency of our

market to benefit listed companies, directors, major

shareholders and minority investors alike.

31 January 2001Issuance of Practice Notes

KLSE issued Practice Notes to assist compliance

with the revamped Listing Requirements on 31

January 2001 and on 1 June 2001. The main

objective of the Practice Notes is to promote better

understanding of the new Listing Requirements

amongst public listed companies, directors, advisers

and other industry participants to facilitate

consistent application of the new Listing

Requirements.

13 February 2001

Calendar of Events

Visit by Seri Paduka Baginda Yang Dipertuan

Agong and Raja Permaisuri Agong

KLSE was honoured to host a visit by the royal

couple on 13 February 2001. The royal couple was

briefed on the current and future developments of

the KLSE and was also given a guided tour of the

Information Gallery.

16 February 2001Guidance on Internal Controls

The Taskforce on Internal Controls, established by

KLSE, issued the guidance Statement on Internal

Control: Guidance for Directors of Public Listed

Companies , which was aimed at guiding directors

of listed companies in making disclosures on the

state of internal control of their companies in their

annual reports as required by paragraph 15.27(b) of

the new Listing Requirements.

20 April 2001Yayasan BSKL Convertible Interest-Free Study

Loan Scheme

Yayasan BSKL announced the introduction of its

Convertible Interest-Free Study Loan Scheme for

the 2001/2002 academic year, following the

successful implementation of its inaugural Study

Loan Scheme which was launched last year.

9 May 2001KLSE Annual Dialogue Sessions

KLSE commenced its annual dialogue sessions

with industry partners on 9 May 2001. Up to

October 2001,

a total of 16 sessions have been held. The

dialogues are for the purpose of discussing current

issues of mutual interest relating to all parties

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75

27 June 2001MESDAQ set to join KLSE Group

KLSE and the Malaysian Exchange of Securities

Dealing Automated Quotation Bhd (MESDAQ)

signed a memorandum of understanding to set out

the agreement for both parties to enter into detailed

negotiations to facilitate the consolidation exercise.

The objective of integrating the existing exchanges

into a single exchange is to enhance the efficiency

and competitiveness of the Malaysian capital

market and securities industry.

concerned.

19 May 2001KLSE Family Day 2001

A total of 2,779 persons, which included staff and

their family members participated in this annual get-

together, held on 19-20 May 2001 at Port Dickson.

It was a fun-filled and memorable event for the staff

and their family members.

11 June 2001Integrated Derivatives Exchange Benefits Market,

Industry

The establishment of Malaysia Derivatives

Exchange Bhd the result of the merger between

the Kuala Lumpur Options and Financial Futures

Exchange and the Commodity and Monetary

Exchange of Malaysia signified the formation of a

single derivatives exchange on 11 June 2001. The

integrated derivatives exchange will offer a wide

range of derivatives products and services including

KLSE Composite Index Futures and Options, Crude

Palm Oil Futures and Kuala Lumpur Inter-Bank

Offered Rate Futures.

14 June 2001KLSE Smart Investor Roadshows

KLSE Smart Investor Roadshows held in Miri,

Sarawak from 14-15 June 2001 and in Kuantan,

Pahang from

29-30 June 2001 aimed to educate investors on the

fundamentals of smart investing and to keep

investors and the general public updated on the

latest developments in the stock market and

securities industry.

21 June 2001Inaugural Listing at LFX

The inaugural listing on the Labuan International

Financial Exchange (LFX) took place on 21 June

2001, with the secondary listing of a USD250

million bond issue by 1st Silicon (Labuan) Inc. The

inaugural listing capitalises on the capability of LFX

to cater for the listing of a wide variety of multi-

currency instruments.

pg1-78.qxd 1/2/02 11:50 AM

76

Calendar of Events

14 July 2001Clearing, Settlement & Depository Workshop

Malaysian Central Depository Sdn Bhd (MCD) and

Securities Clearing Automated Network Services

Sdn Bhd (SCANS) organised the inaugural Clearing,

Settlement & Depository Workshop on 14 July 2001

which was attended by 160 participants comprising

representatives of stockbroking companies and

custodian banks.

The workshop covered a comprehensive range of

issues including strategic initiatives to enhance

infrastructure support, market intermediaries

operations and consolidation of market institutions.

18 July 2001Enhanced Settlement Service for

Institutional Investors

KLSE enhanced its settlement service to local and

foreign institutional investors with the expansion of its

Institutional Settlement Service (ISS) to include

direct business transactions. The implementation of

ISS for direct business transactions is a significant

step in ensuring local and foreign institutional

investors continue to have access to a secure and

efficient clearing and settlement system whilst

enhancing the DVP environment in line with

international best practices.

6 July 2001KLSE Group Staff Annual Dinner

A total of 1,500 KLSE Group staff and their

spouses attended the KLSE Group Staff Annual

Dinner 2001 which was held at Mandarin Oriental. It

was a memorable night for the staff who were

entertained by homegrown talents and professional

artistes.

pg1-78.qxd 1/2/02 11:50 AM


77

21 July 200112th Annual KLSE-FPLC Golf Tournament & Lunch

The 12th Annual KLSE-FPLC Golf Tournament &

Lunch was held on 21 July 2001 at Palm Garden

Golf Club, IOI Resort, Putrajaya.

23 July 2001CLOB Solution Concluded

The comprehensive solution to regularise securities

formerly traded under the Central Limit Order Book

(CLOB) achieved the objective of maintaining a fair

and orderly market.

The comprehensive solution, amongst others,

included a 13-month staggered release of CLOB

traded securities from July 2000 to July 2001. The

release of the final balance of CLOB traded

securities under the 13-month staggered release

was completed on 23 July 2001.

26 July 2001Familiarisation visits to Public Listed Companies

As part of KLSE s efforts to promote understanding,

goodwill and closer ties with companies listed on

the Exchange, the KLSE Group visited Kumpulan

Guthrie Berhad on 26 July 2001. Subsequently, a

similar visit was made to Dialog Group Berhad on

6 August 2001 and several others are planned for

this year.

8 August 2001Annual Kuala Lumpur Rat Race for Charity 2001

Yayasan BSKL hosted the Annual Kuala Lumpur

Rat Race for Charity 2001, with funds raised at the

event contributed to community organisations.

The Race saw a total of 46 companies fielding 300

participants. A total of RM450,000.00 was collected

and subsequently donated to Hospis Malaysia,

National Autism Society of Malaysia, Malaysian

Paralympic Council, National Kidney Foundation and

Spastic Children s Association of Selangor &

Federal Territory.

pg1-78.qxd 1/2/02 11:50 AM

Statutory regulation alone cannot

promote the development of

excellent standards in corporate

governance. Developing these

standards takes the combination of

regulation by the authorities and

self-regulation by industry

pg1-78.qxd 1/2/02 11:50 AM

Financial Statements

80Report of the Committee

84Statement by The Committee

84Statutory Declaration

85Auditors Report

86Consolidated Balance Sheet

87

Income Statement

94Statement of Changes inEquity

95Cash Flow Statement

96Notes to The FinancialStatements

Consolidated IncomeStatement

88Consolidated Statement ofChanges in Equity

89Consolidated Cash FlowStatement

92Balance Sheet

93


KLSE_E_Accs_August2001 1/2/02 12:12 PM

80

Report of The Committee

The Committee hereby submit their report together with the audited financial statements of the Exchange

and the Group for the financial year ended 30 June 2001.

Principal Activities

The principal activities of the Exchange are to provide, regulate and maintain facilities for conducting the

business of a stock exchange in Malaysia.

The principal activities of the subsidiaries are described in Note 9 to the financial statements.

There were no significant changes in these activities during the financial year except for the addition of

commodity and interest rate futures and options clearing and exchange activities arising from the merger

of the business operations of Commodity and Monetary Exchange of Malaysia ( COMMEX ) with Malaysia

Derivatives Exchange Bhd. ( MDEX ) (formerly known as The Kuala Lumpur Options & Financial Futures

Exchange Bhd.).

Results

Group Exchange

R M R M

Net surplus for the year 24,152,620 36,574,686

Reserves and Provisions

There were no material transfers to or from reserves or provisions during the financial year other than as

disclosed in the Consolidated Statement of Changes in Equity and the transfers made to the Compensation

Fund of Malaysian Central Depository Sdn Bhd as disclosed in Note 21 to the financial statements.

Bad and Doubtful Debts

Before the income statements and balance sheets were made out, the Committee took reasonable steps

to ascertain that action had been taken in relation to the writing off of bad debts and the making of

provision for doubtful debts and satisfied themselves that all known bad debts had been written off and

that adequate provision had been made for doubtful debts.

At the date of this report, the Committee is not aware of any circumstances which would render the

amounts written off as bad debts or provided for as doubtful debts in the financial statements of the

Exchange and the Group inadequate to any substantial extent.

Current Assets

Before the income statements and balance sheets were made out, the Committee took reasonable steps

to ensure that any current assets which were unlikely to be realised in the ordinary course of business

including their values as shown in the accounting records of the Exchange and the Group have been

written down to an amount which they might be expected so to realise.

At the date of this report, the Committee is not aware of any circumstances which would render the values

attributed to the current assets in the financial statements of the Exchange and the Group misleading.



81


82

Valuation Methods

At the date of this report, the Committee is not aware of any circumstances which have arisen which

render adherence to the existing methods of valuation of assets or liabilities of the Exchange and the

Group misleading or inappropriate.

Contingent and Other Liabilities

At the date of this report, there does not exist:

(a) any charge on the assets of the Exchange or the Group which has arisen since the end of the

financial year which secures the liabilities of any other person; or

(b) any contingent liability of the Exchange or the Group which has arisen since the end of the financial

year.

No contingent or other liability has become enforceable or is likely to become enforceable within the period

of twelve months after the end of the financial year which, in the opinion of the Committee, will or may

substantially affect the ability of the Exchange or the Group to meet their obligations when they fall due.

Change of Circumstances

At the date of this report, the Committee is not aware of any circumstances not otherwise dealt with in

this report or the financial statements of the Exchange or the Group which would render any amount stated

in the financial statements misleading.

Items of an Unusual Nature

The results of the operations of the Exchange and the Group during the financial year were not, in the

opinion of the Committee, substantially affected by any item, transaction or event of a material and unusual

nature.

There has not arisen in the interval between the end of the financial year and the date of this report any

item, transaction or event of a material and unusual nature likely, in the opinion of the Committee, to affect

substantially the results of the operations of the Exchange or the Group for the financial year in which this

report is made.

Significant Events

The significant events during the financial year are disclosed in Note 30 to the financial statements.

Subsequent Event

The subsequent event is disclosed in Note 31 to the financial statements.

Report of The Committee



83

Committee Members

The Committee Members who served since the date of the last report are:

Dato Mohammed Azlan bin Hashim

Datuk Mohaiyani binti Shamsudin

Chan Guan Seng

Tan Kim Leong

Abdul Kadir bin Haji Md Kassim

Abdul Wahab bin Nan Abidin

Peter Leong Tuck Leng (elected on 25 November 2000 and effective 1 January 2001)

Yusli bin Mohamed Yusoff (elected on 25 November 2000 and effective 1 January 2001)

Abdul Jabbar bin Abdul Majid (appointed on 18 January 2001)

Dato Ranita binti Mohd. Hussein (retired on 31 December 2000)

Johari bin Hassan (retired on 31 December 2000)

Abang Zainal Abidin bin Abang Ahmad (retired on 31 December 2000)

Dato Mohammed Azlan bin Hashim, Tan Kim Leong, Abdul Kadir bin Haji Md Kassim and Abdul Jabbar

bin Abdul Majid were appointed by the Minister of Finance pursuant to Section 8(3) of the Securities

Industry Act, 1983 and are not subject to retirement by rotation.

Pursuant to Article 10.3(1) of the Exchange s Articles of Association, two of the current Elected Committee

Members are required to retire at the 25th Annual General Meeting. Pursuant to Article 10.3(2), the two

so retiring are Abdul Wahab bin Nan Abidin and Chan Guan Seng. Pursuant to Article 10.3(3), both

gentlemen are eligible for re-election.

Committee Members Benefits

During and at the end of the financial year, no arrangements subsisted to which the Exchange or its

subsidiaries is a party with the object of enabling Committee Members of the Exchange to acquire benefits

by means of the acquisition of shares in or debentures of any other body corporate.

Since the end of the previous financial year, no Committee Member of the Exchange has received or

become entitled to receive a benefit (other than the fixed salary of a full-time employee of the Exchange,

reimbursement of expenditure incurred in attending Committee Meetings in the form of meeting allowances

and any other benefits in kind as disclosed in the financial statements) by reason of a contract made by

the Exchange or a related corporation with the Committee Member or with a firm of which the Committee

Member is a member, or with a company in which the Committee Member has a substantial financial

interest.

Committee Members Interests

The Exchange is a company limited by guarantee and, thus, has no shares in which the Committee

Members could have an interest. Similarly, the Exchange has not issued any debentures.

None of the Committee Members in office at the end of the financial year had any interest in shares in its

related corporations during the financial year.


84

W e, DATO MOHAMMED AZLAN BIN HASHIM and DATUK MOHAIYANI BINTI SHAMSUDIN, being two of

the Committee Members of KUALA LUMPUR STOCK EXCHANGE, do hereby state that, in the opinion of

the Committee, the financial statements set out on pages 86 to 117, give a true and fair view of the state

of affairs of the Exchange and of the Group as at 30 June 2001 and of their results and their cash flows

for the year then ended, and have been properly drawn up in accordance with the provisions of the

Companies Act, 1965 and applicable approved accounting standards in Malaysia.

Signed on behalf of the Committee

in accordance with a resolution

of the Committee Members

D ATO MOHAMMED AZLAN BIN HASHIM

D ATUK MOHAIYANI BINTI SHAMSUDIN

Kuala Lumpur

Dated: 18 September 2001

I, DATO MOHD SALLEH BIN ABDUL MAJID, the officer primarily responsible for the financial management

of KUALA LUMPUR STOCK EXCHANGE, do solemnly and sincerely declare that the financial statements

set out on pages 86 to 117 are, to the best of my knowledge and belief correct, and I make this solemn

declaration conscientiously believing the same to be true and by virtue of the provisions of the Statutory

Declarations Act, 1960.

Subscribed and solemnly declared by the )

abovenamed DATO MOHD SALLEH )

BIN ABDUL MAJID at Kuala Lumpur in )

W ilayah Persekutuan on 18 September 2001 )D ATO MOHD SALLEH BIN ABDUL MAJID

Before me:

Commissioner for Oaths

Statement by The Committee

Statutory Declaration



85

Auditors Report

To the Members of

KUALA LUMPUR STOCK EXCHANGE

W e have audited the financial statements set out on pages 86 to 117. These financial statements are the

responsibility of the Committee Members. Our responsibility is to express an opinion on these financial

statements based on our audit.

W e conducted our audit in accordance with approved Standards on Auditing in Malaysia. Those standards

require that we plan and perform the audit to obtain reasonable assurance about whether the financial

statements are free of material misstatement. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements. An audit also includes assessing the

accounting principles used and significant estimates made by the Committee Members, as well as

evaluating the overall financial statements presentation. We believe that our audit provides a reasonable

basis for our opinion.

In our opinion:

(a) the financial statements have been properly prepared in accordance with the provisions of the

Companies Act, 1965 and applicable approved accounting standards in Malaysia and give a true and

fair view of:

(i) the state of affairs of the Exchange and of the Group as at 30 June 2001 and of their results

and their cash flows for the year then ended; and

(ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial

statements;

(b) the accounting and other records and the registers required by the Act to be kept by the Exchange

and its subsidiaries of which we acted as auditors have been properly kept in accordance with the

provisions of the Act.

W e have considered the financial statements and the auditors reports of all the subsidiaries of which we

have not acted as auditors, as indicated in Note 9 to the financial statements, being financial statements

that have been included in the consolidated financial statements.

W e are satisfied that the financial statements of the subsidiaries that have been consolidated with the

financial statements of the Exchange are in form and content appropriate and proper for the purposes of

the preparation of the consolidated financial statements and we have received satisfactory information and

explanations required by us for these purposes.

The auditors reports on the financial statements of the subsidiaries were not subject to any qualification

or any adverse comment made under subsection (3) of Section 174 of the Act.

ARTHUR ANDERSEN & CO

No AF 0103

Public Accountants

WONG KANG HWEE

No 1116/01/02(J)


86

Note 2001 2000

R M R M

CURRENT ASSETS

Cash and bank balances 17,407,580 5,849,900

Short term deposits 3 869,443,506 1,021,571,308

Receivables 4 62,236,011 56,271,817

Short term investments 5 88,535,404

Due from an associated company 544,182

Due from Compensation Fund 1,915,551

1,039,538,052 1,084,237,207

CURRENT LIABILITIES

Short term borrowings 17 219,700

Taxation 41,746,828 66,842,762

Trade payables 8 93,162,717 2,429,524

Sundry payables 52,755,571 59,030,543

187,884,816 128,302,829

NET CURRENT ASSETS 851,653,236 955,934,378

ASSOCIATED COMPANY 10 5,179,745

OTHER INVESTMENTS 11 166,198,527 57,583,840

PROPERTY, PLANT AND EQUIPMENT 12 381,717,812 406,516,450

STAFF LOANS RECEIVABLE 13 38,923,147 26,231,414

INTANGIBLE ASSETS 14 21,150

RETIREMENT BENEFITS (14,041,806) (13,026,191)

DEFERRED INCOME 15 (3,102,983)

DEFERRED TAXATION 16 (34,000) (3,652,200)

LONG TERM BORROWINGS 17 (1,757,600)

LONG TERM LIABILITY 18 (48,874,376) (49,412,937)

MINORITY INTERESTS (24,268,982) (46,516,847)

1,346,412,975 1,338,858,802

Represented by:

MEMBERSHIP FEES 19 96,960,000 96,960,000

ACCUMULATED FUNDS 1,235,709,105 1,189,150,514

CAPITAL RESERVE 20 13,749,969 2,750,000

FOREIGN EXCHANGE RESERVE (6,099) (1,712)

1,346,412,975 1,288,858,802

COMPENSATION FUND 21 50,000,000

1,346,412,975 1,338,858,802

The accompanying notes are an integral part of this balance sheet.

Consolidated Balance Sheet 30 June 2001



87

Note 2001 2000

R M R M

Revenue 22 183,378,898 436,425,361

Non-operating income 23 56,712,946 86,210,325

240,091,844 522,635,686

Staff cost 24 (78,238,214) (77,139,092)

Depreciation (36,364,380) (52,711,103)

Other operating expenses 25 (74,016,422) (116,248,699)

Surplus from operations 51,472,828 276,536,792

Finance cost 26 (1,124,611) (2,190,319)

Share of losses of associated company (500,583)

Surplus before taxation 50,348,217 273,845,890

Taxation 28 (25,133,493) (126,215,825)

Net surplus from ordinary activities 25,214,724 147,630,065

Minority interests (1,062,104) (8,202,741)


The accompanying notes are an integral part of this statement.

Consolidated Income Statement for the year ended 30 June 2001


88

Consolidated Statement of Changes in Equityfor the year ended 30 June 2001

Foreign

Membership Capital exchange Accumulated

fees reserve reserve funds Total

R M R M R M R M R M

At 1 July 1999 93,950,000 1,062,795,750 1,156,745,750

Net surplus for

the year 139,427,324 139,427,324

Contributions during

the year 3,010,000 3,010,000

Currency translation

differences (1,712) (1,712)

Transfer to capital

reserve 2,750,000 (2,750,000)

Transfer to

Compensation Fund

(Note 29) (10,322,560) (10,322,560)

3,010,000 2,750,000 (1,712) (13,072,560) (7,314,272)

At 30 June 2000 96,960,000 2,750,000 (1,712) 1,189,150,514 1,288,858,802

At 1 July 2000 96,960,000 2,750,000 (1,712) 1,189,150,514 1,288,858,802

Net surplus for

the year 24,152,620 24,152,620

Share premium from

the merger of

business operations

of COMMEX with

MDEX (Note 20) 10,999,969 10,999,969

Currency translation

differences (4,387) (4,387)

Transfer to

Compensation Fund

(Note 29) (94,029) (94,029)

Minority interest

portion of MCD

Compensation

Fund reinstated

(Note 21) 22,500,000 22,500,000

10,999,969 (4,387) 22,405,971 33,401,553

At 30 June 2001 96,960,000 13,749,969 (6,099) 1,235,709,105 1,346,412,975




89

Consolidated Cash Flow Statement for the year ended 30 June 2001

2001 2000

R M R M

CASH FLOW FROM OPERATING ACTIVITIES


Adjustment for:

Share of loss of associated company 500,583

Depreciation 36,364,380 52,711,103

Property, plant and equipment written off 1,283,701 22,096

Amortisation of intangible assets 860,106

Net (write-back of)/provision for bad and doubtful debts (14,604,803) 1,269,520

Preliminary and pre-operating expenses written off 21,150 34,569

Goodwill on acquisition written off 6,061,088

Net gain on sale of property, plant and equipment (437,879) (154,525)

W rite back of provision for diminution in value of investment (9,563,345)

Recreational club membership benefits written off 309,095 129,112

Accretion of discount less amortisation of premium (482,835) (190,012)

Provision for retirement benefits 4,301,365 7,163,192

Net gain on disposal of investments (1,020,881) (34,656,427)

Interest income (41,053,806) (32,583,703)

Interest expense 132,730 477,972

Gross dividend income (2,368,447)

Operating surplus before working capital changes 41,221,522 257,497,684

Decrease in receivables 12,344,566 56,274,277

Decrease in payables (17,744,130) (16,892,764)

Decrease in amount due from associated company 544,182 257,683

Cash generated from operations 36,366,140 297,136,880

Interest paid (132,730) (407,620)

Taxes paid (53,881,917) (45,083,437)

Net cash (used in)/generated from operating activities (17,648,507) 251,645,823


90

2001 2000

R M R M

CASH FLOW FROM INVESTING ACTIVITIES

Net cash from acquisition of subsidiaries companies/net assets* 109,491,609

Dividends received 2,368,447

Increase in intangible assets (2,834)

Purchase of unquoted bonds (195,786,419) (47,977,235)

Purchase of club memberships (197,858) (265,835)

Increase in loans granted to staff (12,691,733) (11,216,333)

Interest received 36,823,318 30,250,974

Purchase of property, plant and equipment (10,452,127) (15,711,310)

Proceeds from sale of property, plant and equipment 524,185 290,920

Net sale of investment securities 191,035,729

Net cash (used in)/generated from investing activities (72,289,025) 148,772,523

CASH FLOW FROM FINANCING ACTIVITIES

Transfer to Compensation Fund (50,094,029)

Redemption of preference shares from minority interest of a subsidiary (3,375,000)

Decrease in long term liability (538,561) (538,561)

Increase in membership fees 3,010,000

Net cash used in financing activities (50,632,590) (903,561)

Net (decrease)/increase in cash and cash equivalents (140,570,122) 399,514,785

Cash and cash equivalents at beginning of year 1,027,421,208 627,906,423

Cash and cash equivalents at end of year 886,851,086 1,027,421,208

CASH AND CASH EQUIVALENTS COMPRISE:

Cash and bank balances 17,407,580 5,849,900

Short term deposits 869,443,506 1,021,571,308

886,851,086 1,027,421,208

Consolidated Cash Flow Statement for the year ended 30 June 2001



91

* Net cash from acquisition of subsidiary companies/net assets:

2001

R M

Cash and bank balances 5,762,801

Short term deposits 103,728,808

Trade receivables 422,980

Sundry receivables 1,072,108

Investments 26,000

Property, plant and equipment 1,426,150

Trade payables (90,359,804)

Sundry payables (2,476,752)

Deferred income (3,121,170)

Taxation (34,290)

Short term borrowing (219,700)

Long term borrowing (1,757,600)

Net assets acquired 14,469,531

Investment in associated company (4,530,619)

Goodwill on acquisition 6,061,088

Total consideration 16,000,000

Less:Purchase consideration

Issuance of B preference shares (16)

Issuance of C preference shares (15)

Share premium on preference shares issued (10,999,969)

Balance payable to COMMEX members (included in sundry payables) (5,000,000)

Cash and cash equivalents acquired 109,491,609

Net cash from acquisition 109,491,609

The effect of the said acquisitions on the financial results of the Group is not presented as the amount

involved is not material.



92

Balance Sheet 30 June 2001

Note 2001 2000

R M R M

CURRENT ASSETS

Cash and bank balances 266,299 2,439,350

Short term deposits 3 419,584,626 448,509,998

Receivables 4 20,707,120 23,198,264

Short term investments 5 88,535,404

Due from subsidiaries 6 40,949,761 136,228,373

570,043,210 610,375,985

CURRENT LIABILITIES

Taxation 38,926,748 47,096,989

Due to subsidiaries 7 1,322,153

Sundry payables 28,638,809 44,446,640

67,565,557 92,865,782

NET CURRENT ASSETS 502,477,653 517,510,203

SUBSIDIARIES 9 39,761,607 37,866,092

OTHER INVESTMENTS 11 85,549,535 29,466,208

PROPERTY, PLANT AND EQUIPMENT 12 358,044,915 380,199,417

STAFF LOANS RECEIVABLE 13 37,037,388 24,656,592

RETIREMENT BENEFITS (9,383,740) (8,646,279)

DEFERRED TAXATION 16 (3,601,000)

LONG TERM LIABILITY 18 (48,874,376) (49,412,937)

964,612,982 928,038,296

Represented by:

MEMBERSHIP FEES 19 96,960,000 96,960,000

ACCUMULATED FUNDS 867,652,982 831,078,296

964,612,982 928,038,296

The accompanying notes are an integral part of this balance sheet.



93

Income Statement for the year ended 30 June 2001

Note 2001 2000

R M R M

Revenue 22 165,680,364 421,937,027

Non-operating income 23 26,679,562 59,348,665

192,359,926 481,285,692

Staff cost 24 (50,674,713) (54,877,945)

Depreciation (29,286,476) (41,793,432)

Other operating expenses 25 (49,604,107) (41,632,085)

Surplus from operations 62,794,630 342,982,230

Finance cost 26 (28,659) (42,053)

Surplus before taxation and exceptional item 62,765,971 342,940,177

Exceptional item 27 (5,329,285) (33,411,115)


Taxation 28 (20,862,000) (104,159,000)




94

Membership Accumulated

fees funds Total

R M R M R M

At 1 July 1999 93,950,000 625,708,234 719,658,234

Contributions during the year 3,010,000 3,010,000


At 30 June 2000 96,960,000 831,078,296 928,038,296


At 30 June 2001 96,960,000 867,652,982 964,612,982


Statement of Changes in Equity for the year ended 30 June 2001



95

2001 2000R M R M

CASH FLOW FROM OPERATING ACTIVITIESSurplus before taxation 57,436,686 309,529,062Adjustment for:Depreciation 29,286,476 41,793,432Provision for retirement benefits 4,015,693 6,018,821Net (write-back of)/provision for bad and doubtful debts (2,621,985) 131,994Provision for diminution in value of investments 5,329,285 23,847,770Accretion of discount less amortisation of premium (593,981) (139,857)Net gain on sales of property, plant and equipment (230,290) (150,356)Net gain on disposal of investments (1,020,881) (34,495,735)Interest income (21,571,775) (11,428,703)Gross dividend income (32,727,778) (148,804,861)

Operating surplus before working capital changes 37,301,450 186,301,567Decrease in receivables 6,716,835 1,261,628(Decrease)/increase in payables (19,086,063) 10,087,854Decrease/(increase) in amount due from subsidiaries 117,948,237 (142,553,215)

Cash generated from operations 142,880,459 55,097,834Taxes paid (23,469,463) (39,681,585)

Net cash generated from operating activities 119,410,996 15,416,249

CASH FLOW FROM INVESTING ACTIVITIESProceeds from disposal of investments 200,369,702Purchase of unquoted bonds (143,003,869) (29,326,351)Increase in investments in subsidiaries (7,224,800) (10,216,476)Increase in loans granted to staff (12,380,796) (10,600,954)Interest received 19,540,291 9,057,461Dividends received 148,804,861Purchase of property, plant and equipment (7,173,916) (38,992,060)Proceeds from sale of property, plant and equipment 272,232 524,048

Net cash (used in)/generated from investing activities (149,970,858) 269,620,231

CASH FLOW FROM FINANCING ACTIVITIESDecrease in long term liability (538,561) (538,561)Increase in membership fees 3,010,000

Net cash (used in)/generated from financing activities (538,561) 2,471,439

Net (decrease)/increase in cash and cash equivalents (31,098,423) 287,507,919Cash and cash equivalents at beginning of year 450,949,348 163,441,429

Cash and cash equivalents at end of year 419,850,925 450,949,348

Cash and cash equivalents comprise:Cash and bank balances 266,299 2,439,350Short term deposits 419,584,626 448,509,998

419,850,925 450,949,348


Cash Flow Statement for the year ended 30 June 2001


96

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.

There were no significant changes in these activities during the financial year except for the addition

of commodity and interest rate futures and options clearing and exchange activities as disclosed in

Note 30(c).

2. Significant Accounting Policies

(a) Basis of Accounting

The financial statements are prepared under the historical cost convention and comply with

applicable approved accounting standards in Malaysia.

(b) Basis of Consolidation

The consolidated financial statements include the financial statements of the Exchange and all its

subsidiaries made up to the end of the financial year.

The results of subsidiaries are included in the consolidated income statement from the effective

dates of their acquisition. Intragroup transactions are eliminated on consolidation and the

consolidated financial statements reflect external transactions only.

At the date of acquisition, the fair values of the subsidiaries net assets are determined and these

values are incorporated in the consolidated financial statements. The difference between the cost

of investments and the net assets of the subsidiaries at the date of acquisition represents

goodwill or reserve arising on consolidation. Goodwill net of reserve arising on consolidation is

written off to the income statement immediately.

(c) Associated Companies

The Group treats as associated companies those companies in which the Group has a long term

equity interest and where it exercises significant influence over the financial and operating

policies.

The Group s share of post acquisition profits less losses of associated companies is included in

the consolidated income statement and the Group s interest in associated companies is stated at

cost plus the Group s share of post-acquisition retained profits and reserves.

(d) Currency Conversion and Translation

Transactions in foreign currencies during the year are converted into Ringgit Malaysia at rates of

exchange approximating those ruling at the transaction dates. Foreign currency monetary assets

and liabilities at the balance sheet date are translated into Ringgit Malaysia at rates of exchange

approximating those ruling at that date. All exchange gains or losses are dealt with in the income

statement.

The USD denominated financial statements of a subsidiary are translated at year-end exchange

rates with respect to the balance sheet, and at the exchange rates at the date of the transactions

with respect to the income statement. All resulting translation differences are taken to reserves.

The exchange rate ruling for USD denominated balances at both balance sheet dates is RM3.80

: USD1.00.

Notes to The Financial Statements 30 June 2001



97

2. Significant Accounting Policies (cont d.)

(e) Property, Plant and Equipment and Depreciation

Property, plant and equipment is stated at cost less accumulated depreciation and impairment

losses. Depreciation on property, plant and equipment is provided on a straight line basis

calculated to write off the cost of each asset to their residual value over its estimated useful life

as follows:

Leasehold land long term 99 years

Freehold and leasehold building and office lots 2 %

Renovations 20%

Office equipment, electrical installation, furniture and fittings 10% 20%

Computers and office automation 20% 33.33%

Motor vehicles 20%

The leasehold building and office lots have a term of 99 years.

(f) Subscriptions

The rates for monthly subscription fees are as follows:

R M

Voting members 1,000

Dealing members (executive directors) 300

Non-dealing members (corporate/individual) 300

Non-dealing members (non-executive directors) 100

Dealers representatives 250

Trainee dealers representatives 50

(g) Provision for Retirement Benefits

Exchange

Non-executive staff:

Retirement benefits of the Exchange for non-executive staff are paid to the Employees Provident

Fund and are charged against income for the year.

Exchange and Subsidiaries

Securities Clearing Automated Network Services Sdn Bhd ( SCANS )

Malaysian Central Depository Sdn Bhd ( MCD )

Labuan International Financial Exchange Inc ( LFX )

KLSE Property Management Sdn Bhd

Executive and non-unionised staff:

Retirement benefits are paid to an approved scheme at a rate determined by the Exchange and

the above subsidiaries with the advice of an actuary and such payments have been charged

against income for the year. In accordance with the rules of the Retirement Benefit Scheme, the

cost of retirement benefits under this scheme is determined based on triennial actuarial valuation

using the Attained Age actuarial valuation method. The last actuarial valuation was performed

on 30 June 1999.


98

2. Significant Accounting Policies (cont d.)

(h) Investments

(i) Investments in subsidiaries are stated at cost less provision for any permanent diminution in

value.

(ii) Short term investments comprise unquoted securities which are managed by external fund

managers for the purpose of short term capital gains. These unquoted securities are stated

at the lower of cost or market value or indicative market value determined on an aggregate

basis.

(iii) Recreational club memberships, purchased for the use of directors of a subsidiary, are

written off over a period of two years. Other recreational club memberships are stated at

cost less provision for any permanent diminution in value.

(iv) Other investments comprise unquoted private debt securities that are acquired and held for

yield or capital growth and are usually held to maturity. Unquoted private debt securities are

stated at cost adjusted for amortisation of premium or net of accretion of discount. Provision

is made for permanent diminution in value where considered appropriate.

(i) Deferred Taxation

Deferred taxation is provided under the liability method in respect of all material timing differences

except where it is reasonably expected that the tax effects of such deferrals will continue in the

foreseeable future.

(j) Intangible Assets

Intangible assets comprise preliminary and pre-operating expenses which are stated at cost and

are charged to the income statement as and when incurred.

(k) Revenue Recognition

(i) Dividend income is recognised when the right to receive payment is established.

(ii) Grants received by Malaysian Derivatives Clearing House Berhad ( MDCH ), a subsidiary,

from the Securities Commission, are recognised as income over the periods necessary to

match them with the related costs which they are intended to compensate, on a systematic

basis.

(iii) Interest income comprises interest income recognised on fixed deposits and unquoted

bonds. Interest income of the Group also includes interest earned on Compensation Fund s

deposits and investments. Interest income is recognised on an accrual basis.

(iv) Other than the above, all other revenue is recognised on an accrual basis.

(l) Provision for Doubtful Debts

Provision for doubtful debts is made on all debts which are six months or older.

(m) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and in banks, short term deposits, net of bank

overdrafts and short term borrowings.




99

3. Short Term Deposits

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Deposits with:

Licensed banks 649,974,700 871,691,263 295,434,455 365,650,000

Licensed finance companies 187,573,123 85,654,047 105,555,000 36,660,000

Licensed discount houses 20,556,142 47,699,998 18,406,142 46,199,998

Licensed merchant banks 10,593,512 13,200,000

868,697,477 1,018,245,308 419,395,597 448,509,998

Repurchase agreement with

a discount house 746,029 3,326,000 189,029

869,443,506 1,021,571,308 419,584,626 448,509,998

Included in short term deposits are:

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Deposits pledged with licensed

banks for banking facilities

granted 51,200,000 51,200,000 1,200,000 1,200,000

Short term deposits of the Exchange and Group amounting to RM13,991,628 (2000: RMNil) are

managed by external fund managers.

4. Receivables

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Trade receivables 23,352,856 48,152,627 12,022,072 17,865,299

Sundry receivables 43,724,990 27,850,069 10,320,616 9,697,852

67,077,846 76,002,696 22,342,688 27,563,151

Provision for doubtful debts (4,841,835) (19,730,879) (1,635,568) (4,364,887)

62,236,011 56,271,817 20,707,120 23,198,264


100

4. Receivables (cont d.)

The movement of provision for doubtful debts is as follows:

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Balance at 1 July 2000/1999 19,730,879 19,182,562 4,364,887 4,721,905

Net (write-back of)/provision for

doubtful debts (14,604,803) 1,269,520 (2,621,985) 131,994

Amount written off (284,241) (721,203) (107,334) (489,012)

Balance at 30 June 2001/2000 4,841,835 19,730,879 1,635,568 4,364,887

Included in trade receivables of the Group in the previous financial year was an amount of

RM9,818,607 owed by Member companies of the Exchange to a subsidiary under a credit facility

scheme.

5. Short Term Investments

Group Exchange

2001 2000 2001 2000

R M R M R M R M

At cost:

Malaysian Government Securities

( MGS ) 4,872,940 4,872,940

Unquoted bonds 83,662,464 83,662,464

88,535,404 88,535,404

Indicative market price of

unquoted bonds 84,887,415 84,887,415

Market value of MGS 4,895,515 4,895,515

Short term investments of the Exchange and Group are managed by external fund managers on

behalf of the Exchange.

6. Due from Subsidiaries

Exchange

Included in amounts due from subsidiaries in the previous year was an amount of RM129,608,795

relating to royalty receivable on clearing fees from a subsidiary which was received in the current year.

The amounts due from subsidiaries are unsecured, interest free and have no fixed terms of repayment

except for amounts due from three subsidiaries amounting to RM5,987,422 which bear interest of

between 6.80% to 8.80% per annum (2000: 8.80% to 9.25% per annum).




101

7. Due to Subsidiaries

Exchange

The amounts due to subsidiaries in the previous financial year were unsecured, interest free and have

no fixed terms of repayment.

8. Trade Payables

Included in trade payables of the Group is RM92,268,486 (2000: RMNil) relating to amounts due to

futures and options brokers. The amount arises principally from accruals made for margin payable to

MDCH. Full control and ownership in MDCH was effectively transferred to the Group pursuant to the

transfer of all assets and liabilities from Commodity and Monetary Exchange of Malaysian

( COMMEX ) to Malaysia Derivatives Exchange Bhd ( MDEX ) in the current year as disclosed in Note

30(c).

9. Subsidiaries

Exchange

2001 2000

R M R M

Unquoted shares, at cost 78,502,007 71,277,207

Provision for diminution in value (38,740,400) (33,411,115)

39,761,607 37,866,092

(i) Details of the subsidiaries are as follows:

Name of Company Effective Interest Principal Activities

2001 2000

% %

Incorporated in Malaysia:

(a) Securities Clearing Automated 100 100 Providing clearing facilities for

c o n t r a c t s

Network Services Sdn Bhd between clearing members.

(b) KLSE-Bernama Real-Time 55 55 Compiling, providing and

d i s s e m i n a t i n g

Information Services Sdn Bhd real-time share price and other

relevant financial/economic

information from the Exchange to

various subscribers.

(c) Malaysian Central Depository 55 55 Maintaining and operating a

c e n t r a l

Sdn Bhd depository in respect of securities

listed on stock exchanges in

Malaysia.


102

(d) Malaysian Share Registration 51 51 Providing and/or undertaking

s h a r e

Services Sdn Bhd registration services.

(e) KLSE Property Management 100 100 Providing building management

a n d

Sdn Bhd (formerly known as security services.

KLSE Realty Sdn Bhd)




103

9. Subsidiaries (cont d.)

Name of Company Effective Interest Principal Activities

2001 2000

% %

(f) Malaysian Central Depository 55 55 Acting as nominees for Malaysian

Nominees Sdn Bhd Central Depository Sdn Bhd and

to receive securities and property

on deposit or for safe-custody or

management.

(g) KLOFFE Capital Sdn Bhd 100 100 Investment holding and the

promotion of derivative instruments

and exchanges.

(h) Malaysia Derivatives Exchange Bhd 100 100 To establish, maintain, conduct,

o p e r a t e

(formerly known as The Kuala and promote a market for the

t r a d i n g

Lumpur Options & Financial of futures and options contracts

a n d

Futures Exchange Bhd) facilities for the registration of

dealings and settlement of trades

in such contracts.

(i) KLOFFE Information Systems 100 100 Dormant intended principal

a c t i v i t i e s

Sdn Bhd are to provide information

technology and management

services.

(j) Labuan International Financial 100 100 To provide, regulate and maintain

Exchange Inc.* facilities for conducting the

business of an offshore stock

exchange in Labuan.

(k) Commodity and Monetary 100 Dormant.

Exchange of Malaysia**

(l) Malaysian Derivatives Clearing 100 50 Providing clearing, settling and

House Berhad** guaranteeing of futures and

options contracts executed on

derivatives exchanges and the

administration and enforcement of

its business rules.

(m) Malaysia Monetary Exchange 100 Dormant.

Berhad**

* Incorporated in the Federal Territory of Labuan, Malaysia.

** Audited by another firm of auditors.

In the current year, MDCH and MME effectively became subsidiaries of the Exchange pursuant

to the merger of the business operations of COMMEX with MDEX as disclosed in Note 30(c).

COMMEX is a company limited by guarantee under the Companies Act, 1965 and owns 100%

of the issued and paid-up capital of MME, which in turn, owns 50% of the issued and paid-up

capital of MDCH.


104




105

10. Associated Company

Group

2001 2000

R M R M

Unquoted shares, at cost 4,000,000

Share of post acquisition profit 1,179,745

5,179,745

The analysis of the associated company is as follows:

2001 2000

R M R M

Group s share of net tangible assets 5,179,745

The associated company in the previous financial year refers to MDCH, which effectively became a

fully owned subsidiary of the Exchange pursuant to the merger of the business operations of

COMMEX with MDEX as disclosed in Note 30(c).

11. Other Investments

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Unquoted, at cost:

Private debt securities 165,614,250 57,147,352 85,010,700 29,326,352

Accretion of discount less

amortisation of premiums 408,219 127,393 538,835 139,856

166,022,469 57,274,745 85,549,535 29,466,208

Recreational club memberships 309,095 172,372

Add: Acquired during the year 197,858 265,835

Less:W ritten off (309,095) (129,112)

Provision for diminution in

value of investments (21,800)

176,058 309,095

166,198,527 57,583,840 85,549,535 29,466,208

Indicative market value of

unquoted private debt securities 173,525,465 57,630,167 89,503,070 29,698,640


106

The club memberships are for the use of directors of a subsidiary, who are also Committee Members of

the Exchange.

12. Property, Plant and Equipment

Office

equipment,

electrical

Land and installation, Computers

buildings furniture and office Motor

Note 12(a) and fittings automation vehicles Total

Group R M R M R M R M R M

Cost

At 1 July 2000 381,668,820 65,528,955 295,396,788 11,221,097 753,815,660

Additions 2,418,433 4,425,072 4,088,418 577,676 11,509,599

Disposals (10,278) (1,438,700) (1,448,978)

W ritten off (9,359) (3,555,218) (4,713,747) (55,677) (8,334,001)

Acquisition of

subsidiaries 665,369 2,328,645 10,714,388 1,252,605 14,961,007

At 30 June 2001 384,743,263 68,717,176 305,485,847 11,557,001 770,503,287

Accumulated

Depreciation

At 1 July 2000 23,903,296 41,891,444 274,357,204 7,147,266 347,299,210

Charge for the

year 8,052,618 11,312,595 15,209,446 1,789,721 36,364,380

Disposals (10,277) (1,352,395) (1,362,672)

W ritten off (9,359) (3,125,778) (3,877,116) (38,047) (7,050,300)

Acquisition of

subsidiaries 565,655 2,065,306 10,108,836 795,060 13,534,857

At 30 June 2001 32,512,210 52,133,290 295,798,370 8,341,605 388,785,475

Net Book Value

At 30 June 2001 352,231,053 16,583,886 9,687,477 3,215,396 381,717,812

At 30 June 2000 357,765,524 23,637,511 21,039,584 4,073,831 406,516,450

Depreciation

charge for 2000 7,738,719 13,405,347 29,426,948 2,140,089 52,711,103




107

12. Property, Plant and Equipment (cont d.)

Office

equipment,

electrical

Land and installation, Computers

buildings furniture and office Motor

Note 12(a) and fittings automation vehicles Total

Exchange R M R M R M R M R M

Cost

At 1 July 2000 364,537,792 57,423,060 231,539,555 8,383,658 661,884,065

Additions 2,101,790 3,839,263 924,917 307,946 7,173,916

Disposals (690,096) (690,096)

Transfers from

a subsidiary 556,849 4,724,741 40,000 5,321,590

At 30 June 2001 366,639,582 61,819,172 237,189,213 8,041,508 673,689,475

Accumulated

Depreciation

At 1 July 2000 20,575,521 36,492,049 219,569,391 5,047,687 281,684,648

Charge for the

year 6,882,277 10,375,800 10,636,516 1,391,883 29,286,476

Disposals (620,745) (620,745)

Transfers from

a subsidiary 556,849 4,710,665 26,667 5,294,181

At 30 June 2001 27,457,798 47,424,698 234,916,572 5,845,492 315,644,560

Net Book Value

At 30 June 2001 339,181,784 14,394,474 2,272,641 2,196,016 358,044,915

At 30 June 2000 343,962,271 20,931,011 11,970,164 3,335,971 380,199,417

Depreciation

charge for 2000 6,623,251 12,135,737 21,418,730 1,615,714 41,793,432


108

12. (a) Land and Buildings

Leasehold Freehold

Leasehold building and building and

land office lots office lots Renovations Total

Group R M R M R M R M R M

Cost

At 1 July 2000 60,817,500 284,431,719 31,904,477 4,515,124 381,668,820

Additions 2,101,790 316,643 2,418,433

W ritten off (9,359) (9,359)

Acquisition of

subsidiaries 665,369 665,369

At 30 June 2001 60,817,500 286,533,509 31,904,477 5,487,777 384,743,263

Accumulated

Depreciation

At 1 July 2000 3,769,924 15,685,584 2,406,578 2,041,210 23,903,296

Charge for the

year 765,834 5,742,958 638,089 905,737 8,052,618

W ritten off (9,359) (9,359)

Acquisition of

subsidiaries 565,655 565,655

At 30 June 2001 4,535,758 21,428,542 3,044,667 3,503,243 32,512,210

Net Book Value

At 30 June 2001 56,281,742 265,104,967 28,859,810 1,984,534 352,231,053

At 30 June 2000 57,047,576 268,746,135 29,497,899 2,473,914 357,765,524

Depreciation

charge for 2000 538,561 5,711,204 638,089 850,865 7,738,719




109

12. (a) Land and Buildings (cont d.)

Leasehold Freehold

Leasehold building and building and

land office lots office lots Renovations Total

Exchange R M R M R M R M R M

Cost

At 1 July 2000 60,817,500 283,858,692 19,861,600 364,537,792

Additions 2,101,790 2,101,790

At 30 June 2001 60,817,500 285,960,482 19,861,600 366,639,582

Accumulated

Depreciation

At 1 July 2000 3,769,924 15,613,901 1,191,696 20,575,521

Charge for the

year 765,834 5,719,211 397,232 6,882,277

At 30 June 2001 4,535,758 21,333,112 1,588,928 27,457,798

Net Book Value

At 30 June 2001 56,281,742 264,627,370 18,272,672 339,181,784

At 30 June 2000 57,047,576 268,244,791 18,669,904 343,962,271

Depreciation

charge for 2000 538,561 5,687,458 397,232 6,623,251

Office lots represent office and car park space in multistorey buildings.

Included in the property, plant and equipment of the Group and the Exchange are the following cost

of fully depreciated assets which are still in use:

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Leasehold buildings, office lots

and renovations 245,042 246,341

Office equipment, furniture

and fittings 18,547,392 14,352,357 15,052,775 11,975,252

Computer equipment 241,456,121 201,755,284 226,600,477 186,299,872

Motor vehicles 3,976,447 1,421,905 3,034,747 1,113,700


110

13. Staff Loans Receivable

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Housing loans 38,360,251 26,204,764 36,769,042 24,936,759

Vehicle loans 2,739,885 2,900,039 2,220,025 2,176,527

Computer loans 229,753 655 183,489

Portion repayable within twelve

months included in sundry

receivables (2,406,742) (2,874,044) (2,135,168) (2,456,694)

38,923,147 26,231,414 37,037,388 24,656,592

The staff housing and vehicle loans are secured against the properties and vehicles of the borrowers

respectively.

14. Intangible Assets

Group 2001 2000

R M R M

Preliminary expenses 4,990 4,990

Pre-operating expenses 16,160 16,160

21,150 21,150

Less: Intangible assets written off (21,150)

21,150

In prior years, the accounting policy was to write-off intangible assets upon commencement of

operations.

Included in pre-operating expenses in the previous financial year was audit fees of RM800.

15. Deferred Income

Deferred income of the Group relates to grants received by a subsidiary, MDCH, from the Securities

Commission and are recognised as income over the period necessary to match them with the related

costs which they are intended to compensate on a systematic basis.




111

16. Deferred Taxation

Group Exchange

2001 2000 2001 2000

R M R M R M R M

At beginning of year 3,652,200 6,743,000 3,601,000 3,601,000

Net transfer to income statement (3,618,200) (3,090,800) (3,601,000)

At end of year 34,000 3,652,200 3,601,000

Deferred taxation of the Exchange in the previous year was in respect of timing differences between

depreciation and corresponding capital allowances and provisions.

17. Long Term Borrowings

Group

2001 2000

R M R M

Long term borrowings 1,977,300

Less: Portion repayable within twelve months, included as

short term borrowings (219,700)

1,757,600

Long term borrowings of the Group relate to amounts payable to the Government of Malaysia and

comprise two interest-free unsecured loans of RM697,000 and RM1,500,000. Each loan is repayable

in ten equal annual instalments, repayments of which commenced on 30 November 2000.

18. Long Term Liability

Group and Exchange 2001 2000

R M R M

Long term liability 49,412,937 49,951,498

Less: Portion repayable within twelve months included in sundry payables(538,561) (538,561)

48,874,376 49,412,937

Long term liability relates to the amount payable to the Government of Malaysia for the purchase of

leasehold land. The amount is payable in 99 annual instalments of RM538,561 each.


112

19. Membership Fees

As at 30 June 2001

(i) membership fees received from past and present members at RM10,000 each amounted to

RM2,960,000 (2000: RM2,960,000); and

(ii) a total contribution of RM94,000,000 (2000: RM94,000,000) was received from members as

follows:

No of Members Total Contributions

Brought Carried Contribution Brought Carried

forward Additions forward per Member forward Additions forward

RM 000 RM 000 RM 000 RM 000

2001

5 5 5,000 25,000 25,000

51 51 1,000 51,000 51,000

6 6 3,000 18,000 18,000

62 62 94,000 94,000

2000

5 5 5,000 25,000 25,000

51 51 1,000 51,000 51,000

5 1 6 3,000 15,000 3,000 18,000

61 1 62 91,000 3,000 94,000

20. Capital Reserves

Group

2001 2000

R M R M

Group s portion of accumulated funds capitalised from redemption of

preference shares (Note a) 2,750,000 2,750,000

Share premium from merger of business operations of COMMEX with

MDEX (Note b) 10,999,969

13,749,969 2,750,000

(a) This relates to the Group s portion of accumulated funds capitalised arising from the redemption

of 5,000,000 5% redeemable cumulative preference shares of RM1 each by a subsidiary, MCD.

(b) MDEX issued 16 non-cumulative B preference shares and 15 non-cumulative C preference

shares of RM1.00 each at a total premium of RM10,999,969 as part consideration for the merger

of business operations of COMMEX and MDEX, as disclosed in Note 30(c). The share premium

arising from the above issue is regarded as capital reserve of the Group and is not distributable.

The B and C preference shares have been accounted for as part of the Group s minority




113

interest.

21. Compensation Fund

Group

2001 2000

R M R M

At 1 July 2000/1999 50,000,000 39,677,440

Transfer from Accumulated Funds 94,029 10,322,560

Transfer to newly segregated Compensation Fund (50,094,029)

At 30 June 2001/2000 50,000,000

In 1997, pursuant to the provisions of Section 5(1)(b)(vii) of the Securities Industry (Central

Depositories) Act, 1991, MCD, a subsidiary, established a scheme of compensation for the purpose

of settling claims by depositors against MCD, its authorised depository agents and Malaysian Central

Depository Nominees Sdn Bhd. The scheme comprises the Compensation Fund and insurance

policies. MCD has also established a policy to maintain the balance in the Compensation Fund at

RM50,000,000. In consideration for the above, all revenue accruing to the Compensation Fund

deposits and investments are to be credited to MCD and all expenditure incurred for and on behalf

of the Compensation Fund will be absorbed by MCD.

During the financial year, the MCD Compensation Fund was segregated and transferred from the

financial statements of the Group and accounted for separately. Pursuant to the said segregation, the

portion of Compensation Fund accruing to the minority shareholders of MCD amounting to

RM22,500,000 was reinstated to the accumulated funds of the Group.

22. Revenue

Group

2001 2000

R M R M

Clearing fee 76,429,978 288,023,224

SCORE fee 9,066,732 56,905,533

Members subscription 24,945,510 23,730,025

Other income derived from operations of the Group 72,936,678 67,766,579

183,378,898 436,425,361


114

22. Revenue (cont d.)

Exchange

2001 2000

R M R M

Equipment rental income 16,738,930 15,926,945

Dividend income from subsidiaries 32,727,778 148,804,861

Royalty income from a subsidiary* 34,179,516 129,608,795

SCORE fee 9,066,732 56,905,533

Cost recoveries 27,170,526 26,110,495

Members subscriptions 24,243,450 22,757,525

Other income derived from operations of the Exchange 21,553,432 21,822,873

165,680,364 421,937,027

* Royalty income from a subsidiary represents royalty receivable from SCANS, a wholly owned

subsidiary. The royalty payments came into effect on 1 July 2000.

23. Non-Operating Income

Included in non-operating income are:

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Gross dividend income from

investments quoted in Malaysia 2,368,447 2,368,447

Net gain on sale of property, plant

and equipment 437,879 154,525 230,290 150,356

Net gain on disposal of investments 1,020,881 34,656,427 1,020,881 34,495,735

W riteback of provision for

diminution in value of investments 9,563,345 9,563,345

Interest income (including

Compensation Fund income of

RM2,013,519) (2000: RMNil)) 41,053,806 32,583,703 21,571,775 11,428,703

Accretion of discount less

amortisation of premium

(including Compensation Fund

amortisation of RM7,007

(2000: RMNil)) 482,835 190,012 593,981 139,857

24. Staff Cost

Included in staff cost of the Exchange and the Group are provisions for staff retirement benefits

amounting to RM4,015,693 (2000: RM6,018,821) and RM4,301,365 (2000: RM7,163,192) respectively.




115

25. Other Operating Expenses

Included in other operating expenses are:

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Auditors remuneration 160,100 157,400 45,000 45,000

Amortisation of intangible assets 860,106

Preliminary and pre-operating

expenses written off 21,150 34,569

Net (write-back of)/provision for

bad and doubtful debts (14,604,803) 1,269,520 (2,621,985) 131,994

Property, plant and equipment

written off 1,283,701 22,096

Office rental

subsidiary 44,016 44,014

others 1,445,291 1,114,144 1,154,634 59,664

Goodwill on acquisition written off 6,061,088

Securities Commission levy 15,190,894 57,605,596

Office maintenance 19,177,621 16,267,578 16,946,343 15,853,898

Remuneration of

Committee Members

Fees 310,000 232,000

Other emoluments 673,216 506,000

Other directors of subsidiaries*

Fees 260,100 334,200

Other emoluments 218,990 562,400

Rental of equipment 799,314 193,178

Recreational club memberships

benefit to directors** 309,095 129,112

Service charge by a subsidiary 5,681,999 930,315

Security services charged by

a subsidiary 1,569,600 281,400

* The estimated monetary value of other benefits not included in the above received by a director

of a subsidiary was RM61,912 (2000: RM27,550).

** This represents cost of recreational club memberships, purchased for the use of directors of a

subsidiary who are Committee Members, written off.

26. Finance Cost

Included in finance cost is:

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Interest expense 132,730 477,972


116

27. Exceptional Item

The exceptional item in the current financial year relates to provision for diminution in value of

investment in KLOFFE Capital Sdn Bhd amounting to RM5,329,285 (2000: RM33,411,115) to reflect

the net tangible assets value of KLOFFE Capital Sdn Bhd and its subsidiaries as at 30 June 2001.

The reduction in net tangible assets of KLOFFE Capital Sdn Bhd in the current year was due in part

to a capital reduction and consolidation exercise undertaken by MDEX, a wholly owned subsidiary of

KLOFFE Capital Sdn Bhd, as disclosed in Note 30(b) to the financial statements.

28. Taxation

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Current year charge 28,440,833 130,716,461 24,463,000 104,159,000

(Over)/under provision in

prior years 310,860 (1,409,836)

Transfer from deferred taxation (3,618,200) (3,090,800) (3,601,000)

25,133,493 126,215,825 20,862,000 104,159,000

The effective tax rate of the Group and Exchange is higher than the statutory tax rate mainly due to

certain expenses being disallowed for tax purposes and the non-availability of Group relief for tax

losses by companies within the Group.

29. Transfer to Compensation Fund

Group Exchange

2001 2000 2001 2000

R M R M R M R M

MCD Compensation Fund 94,029 10,322,560

30. Significant Events

During the financial year,

(a) A subsidiary, LFX, increased its issued and paid-up share capital from USD100,000 to

USD2,000,000 through the allotment of 1,900,000 new ordinary shares of USD1.00 each. The

shares were fully subscribed by the Exchange, thus retaining the Exchange s 100% equity

interest in LFX.

(b) A subsidiary, MDEX, initiated and completed a capital reduction and consolidation exercise

whereby:

(i) the issued and paid-up ordinary share capital of MDEX of RM40,000,000 comprising

40,000,000 ordinary shares of RM1.00 each was reduced and consolidated to RM11,426,708




117

divided into 11,426,708 ordinary shares of RM1.00 each. The resulting credit of

RM28,573,292 was utilised to reduce MDEX s accumulated losses.

(ii) the share premium of MDEX amounting to RM59,985,960 was reduced in full and utilised to

set-off MDEX s accumulated losses of an equal amount.

30. Significant Events (cont d.)

(c) MDEX and COMMEX completed the signing of an agreement to merge the business operations

of the two exchanges on 22 December 2000. Pursuant to the merger agreement all assets and

liabilities of COMMEX was transferred to MDEX for a consideration of RM16,000,000 to be

settled in part through the issuance of 16 B and 15 C class preference shares of RM1.00 each

at a total premium of RM10,999,969 and the remainder in cash to the members of COMMEX.

The merger has also effectively transferred full control and ownership in MDCH (previously an

associated company) and Malaysian Monetary Exchange Berhad ( MME ) to MDEX. MDCH is

principally engaged in providing clearing facilities for futures and options contracts and MME is a

dormant company. Both companies are incorporated in Malaysia.

31. Subsequent Event

A subsidiary, SCANS, made an offer to MDEX on 16 August 2001 to acquire 8,000,000 ordinary

issued and paid-up shares, representing 100% equity interest in MDCH from MDEX, for an estimated

purchase consideration of RM10,873,484. The completion of the above acquisition is currently subject

to finalisation and execution of the terms and conditions of the Share Sale Agreement.

32. KLSE Compensation Fund

The financial statements of the KLSE Compensation Fund for the year ended 30 June 2001 are as

attached and have been accounted for separately from all other properties of Kuala Lumpur Stock

Exchange as required by Section 61 of the Securities Industry Act, 1983 (Amended 1997).

33. Capital Commitments

Group Exchange

2001 2000 2001 2000

R M R M R M R M

Authorised and contracted for:


and fittings 93,150 100,186 93,150 100,186

Computer and office automation 922,456 740,388 922,456 740,388

Building and renovation 398,001 94,514

1,413,607 935,088 1,015,606 840,574

Approved but not contracted for:


and fittings 3,936,828 185,290 3,936,828 68,990

Computer and office automation 96,801,725 40,104,586 96,801,725 39,912,156

Motor vehicles 2,703,907 800,000 2,703,907 600,000


118

KLSE Sub-Committees

Audit Sub-Committee

Objectives

Assist the KLSE Committee in discharging its

responsibilities relating to accounting practices

of KLSE and its Group of Companies.

Ensure the adequacy, efficiency and

effectiveness of the Group s administrative,

operating and accounting controls and

procedures.

Oversee and evaluate the quality of the audits

conducted both by the Group s internal and

external auditors.

Members

1. Tan Kim Leong (Chairman)

2. Datuk Mohaiyani Shamsudin

3. Abdul Samad Alias

4. Dato Mohamed Adnan Ali

5. Philip T N Koh

Budget and Investment Sub-Committee

Objectives

Ensure that the KLSE and its Group of

Companies have a proper budgetary system in

place that will help to plan, co-ordinate, evaluate

and control financial activities effectively.

Ensure that proper allocations are made to

enable effective and efficient:-

operations of the KLSE and its Group of

Companies;

implementation of the development plans of

the KLSE and its Group Companies; and

utilisation of financial resources.

Review and monitor the financial position of the

KLSE and its Group of Companies.

Ensure that the cash of the KLSE and its Group

of Companies is preserved and secured.

Ensure that the funds are properly invested and

maintained with the view to maximise

return/yields on investment.

Appoint appropriate advisors in managing its

surplus funds.

Formulate policies and guidelines for the

investment of the KLSE and its Group of

Companies surplus funds.

Review the investment policy of the KLSE and

its Group of Companies to ensure that optimal

yield is achieved with minimum risk exposure to

the funds.

Members

1. Dato Mohammed Azlan Hashim (Chairman)

2. Chan Guan Seng

3. Harry K Menon

4. Jimmy Lee Soon Teck

5. YM Raja Ahmad Raja Jallaludin

Disciplinary Sub-Committee

Objectives

Consider matters relating to disputes among

Member Companies.

Consider disciplinary actions against Members,

Member Companies and Dealers

Representatives of the Exchange.

Members

1. Abdul Kadir Hj Md Kassim (Chairman)

2. Abdul Wahab Nan Abidin

3. Nik Saghir Mohd Noor

4. Tan Kim Leong

5. Yusli Mohamed Yusoff

6. YM Raja Datuk Arshad Raja Tun Uda

KLSE_E_End_NonAccs_July2001 1/2/02 12:18 PM


119

Listing Sub-Committee

Objectives

Assist the KLSE Committee in discharging all

matters relating to listing and post-listing

functions of the KLSE in a speedy and efficient

manner.

Members


2. Abdul Hamidy Hafiz

3. Abdul Kadir Hj Md Kassim

4. Chan Guan Seng


6. Dato Hj Megat Najmuddin Khas Dato Seri (Dr)

Hj Megat Khas

Index Sub-Committee

Objectives

Responsible for the construction and

establishment of new indices as directed by the

KLSE Committee or whenever necessary.

Assist in other related securities areas, if

possible, as determined by the KLSE

Committee.

Members


2. Dato Azim Mohd Zabidi

3. Dato Anwar Aji

4. Dr Aziz Abu Hassan

5. Dr Zaha Rina Zahari

6. Dr Kok Kim Lian

7. Dr John Lee Hin Hock

8. Jamiah Abdul Hamid

Membership Sub-Committee

Objectives

To consider and recommend to the KLSE

Committee applications for Membership of the

Exchange pursuant to the Exchange s Articles of

Association and Rules, after having duly

interviewed the individual applicant, proposed

Dealing Members and Non-Dealing Members, as

the case may be.

Members

1. Datuk Mohaiyani Shamsudin (Chairman)


3. Abdul Wahab Nan Abidin

4. Izlan Izhab

Rules and Development Sub-Committee

Objectives

Review changes, revisions or additions to the

KLSE Rules and Regulations to determine if

they are consistent with the mission and

objectives of the KLSE.

Review the role and direction of the KLSE and

its Group of Companies in line with its mission

and vision.

Members



3. Chan Guan Seng

4. Ching Yew Chye


6. Dato Hj Megat Najmuddin Khas Dato Seri (Dr)

Hj Megat Khas

7. Dato Ahmad Johan Raslan

8. Dato Hwang Sing Lue

9. T Jeyaratnam


120

New Listings 1 July 2000 30 June 2001

P.I.E. IndustrialBhd

Eurospan Holdings Bhd

UchiTechnologies

Foremost Holdings Bhd

G PA HoldingsBhd

SupermaxCorporation Bhd

Megan MediaHoldings Bhd

Paos HoldingsBhd

Jotech HoldingsBhd

Oriental FoodIndustries

Ta Win Holdings Bhd

Petra Perdana Bhd

Golsta SynergyBhd

NV MultiCorporation Bhd

Spritzer Bhd Courts MammothBhd

Hup SengIndustries Bhd

NWP HoldingsBhd

Paid-up Capitalwhen first

No. Name of New Listings Board Sector Listing Date listed (RM)

1 P.I.E. Industrial Bhd Second Industrial Products 07.07.2000 60,000,000

2 Eurospan Holdings Bhd Second Consumer Products 10.07.2000 40,000,000

3 Uchi Technologies Bhd Second Industrial Products 19.07.2000 40,000,000

4 Foremost Holdings Bhd Second Consumer Products 01.08.2000 43,850,000

5 G PA Holdings Bhd Second Industrial Products 03.08.2000 40,000,000

6 Supermax Corporation Bhd Second Industrial Products 07.08.2000 40,000,000

7 Megan Media Holdings Bhd Second Industrial Products 08.08.2000 54,667,000

8 Paos Holdings Bhd Main Industrial Products 08.08.2000 60,000,000

9 Jotech Holdings Bhd Second Industrial Products 09.08.2000 40,000,000

10 Oriental Food Industries Holdings Bhd Second Consumer Products

10.08.2000 40,000,000

11 Ta Win Holdings Bhd Second Industrial Products 15.08.2000 40,000,000

12 Petra Perdana Bhd Second Trading/Services 16.08.2000 40,000,000

13 Golsta Synergy Bhd Second Trading/Services 21.08.2000 42,000,000

14 NV Multi Corporation Bhd Main Trading/Services 23.08.2000 70,000,000

15 Spritzer Bhd Second Consumer Products 01.09.2000 49,000,000

16 Courts Mammoth Bhd Main Trading/Services 11.10.2000 282,000,000

17 Hup Seng Industries Bhd Main Consumer Products 02.11.2000 60,000,000

18 NWP Holdings Bhd Main Industrial Products 03.11.2000 60,000,000

19 Octagon Consolidated Bhd Second Industrial Products 08.11.2000 40,000,000

20 Heitech Padu Bhd Main Technology 20.11.2000 80,000,000

21 Kim Loong Resources Bhd Main Plantation 27.11.2000 106,750,000

22 MHC Plantations Bhd Main Plantation 29.11.2000 63,238,086

23 Haisan Resources Bhd Second Trading/Services 16.01.2001 40,000,000

24 Ranhill Bhd Main Trading/Services 15.02.2001 79,000,000

25 W eida (M) Bhd Second Industrial Products 28.02.2001 40,000,000



121

OctagonConsolidated

Heitech Padu Bhd

Kim LoongResources Bhd

MHC PlantationsBhd

Haisan Resources Bhd

Ranhill Bhd

W eida (M) Bhd IngressCorporation Bhd

TIMEdotCom Bhd

Top GloveCorporation Bhd

SKB ShuttersCorporation Bhd

D NonceTechnology Bhd

Bintulu PortHoldings Bhd

Merge HousingBhd

Knusford Bhd Edaran DigitalSystems Bhd

Century LogisticsHoldings Bhd

Aikbee Resources Bhd

26 Ingress Corporation Bhd Second Industrial Products 09.03.2001 64,000,000Paid-up Capital

when first No. Name of New Listings Board Sector Listing Date listed (RM)

27 TIMEdotCom Bhd Main Infrastructure Project 12.03.2001 2,530,775,000Companies

28 Top Glove Corporation Bhd Second Industrial Products 27.03.2001 50,000,000

29 SKB Shutters Corporation Bhd Second Industrial Products 28.03.2001 40,000,000

30 D Nonce Technology Bhd Second Industrial Products 09.04.2001 40,000,000

31 Bintulu Port Holdings Bhd Main Trading/Services 16.04.2001 400,000,000

32 Merge Housing Bhd Main Properties 14.05.2001 150,000,000

33 Knusford Bhd Main Trading/Services 23.05.2001 74,042,002

34 Edaran Digital Systems Bhd Main Trading/Services 06.06.2001 60,000,000

35 Century Logistics Holdings Bhd Second Trading/Services 07.06.2001 44,443,969

36 Aikbee Resources Bhd Second Industrial Products 22.06.2001 50,000,000

As at 30.6.2001 As at 30.6.2000

No. of listed companies 809 773

Total market capitalisation (RM billion) 403.49 572.31

1.7.2000 to 30.6.2001 1.7.1999 to 30.6.2000

Total volume (billion units) 34.17 106.44

Total value (RM billion) 88.90 304.71

New Listings from 1 July 2001 to 30 September 2001

There were no new listings during this period.

Two (2) companies were delisted on 13 August 2001:

1) Gadek (Malaysia) Bhd

2) HICOM Holdings Bhd

As at 30.9.2001

No. of listed companies 807


122

Monthly High, Low and Closing Indices*

Composite

High Low Closing High Low Closing

2000 July 860.77 793.93 798.83 217.38 199.48 200.40August 825.52 795.84 795.84 205.89 198.24 198.27September 767.02 713.51 713.51 192.11 174.94 174.94October 796.22 703.95 752.36 189.01 170.72 179.89November 763.84 708.87 729.95 182.49 170.01 174.19December 741.00 679.64 679.64 176.00 159.77 159.77

2001 January 727.73 657.52 727.73 170.53 152.94 170.53February 736.34 709.39 709.39 172.36 164.97 164.97March 706.03 647.48 647.48 163.65 149.15 149.15April 650.74 553.34 584.50 149.17 131.10 139.84May 611.42 554.36 572.88 146.65 135.36 139.29June 600.86 564.08 592.99 144.76 137.60 142.29

EMAS

Industrial


2000 July 1,494.54 1,381.93 1,397.44 172.81 156.82 162.14August 1,459.24 1,400.28 1,429.92 172.12 163.41 168.06September 1,399.14 1,307.91 1,307.91 165.28 156.84 156.84October 1,400.86 1,270.11 1,333.36 161.69 151.57 153.79November 1,372.19 1,288.36 1,312.37 157.63 151.24 154.37December 1,315.53 1,217.28 1,217.28 154.97 146.58 146.58

2001 January 1,281.82 1,182.58 1,277.77 149.39 140.90 149.05February 1,281.52 1,247.14 1,261.54 152.08 146.86 152.08March 1,258.91 1,165.96 1,165.96 151.30 142.34 142.48April 1,177.18 1,068.72 1,119.59 143.73 137.22 143.73May 1,164.92 1,119.03 1,150.29 147.82 143.07 147.82June 1,161.11 1,137.24 1,151.73 148.57 145.70 146.39

Consumer Products

Industrial Products




Construction

Trading/Services


2000 July 134.34 122.53 124.04 6,960.44 6,372.89 6,372.89August 126.57 118.59 118.59 6,667.55 6,375.24 6,431.32September 114.03 104.42 104.42 6,146.23 5,639.28 5,639.28October 118.64 101.63 111.85 6,198.51 5,545.49 5,869.98November 115.70 106.25 111.27 5,866.54 5,406.87 5,406.87December 113.27 103.32 103.32 5,485.96 5,051.59 5,070.62

2001 January 111.80 98.56 111.80 5,408.22 4,905.07 5,408.22February 113.05 107.56 107.76 5,542.31 5,256.71 5,256.71March 107.82 99.54 99.54 5,188.20 4,558.34 4,558.34April 100.04 81.00 87.64 4,534.93 3,917.41 4,171.21May 92.55 80.52 83.20 4,453.55 4,101.29 4,206.42June 88.43 81.67 87.01 4,495.05 4,154.86 4,334.71

Finance



123

Property


2000 July 1,033.37 947.32 951.93 1,825.79 1,718.76 1,806.89August 974.64 931.96 932.16 1,847.67 1,797.72 1,798.23September 916.66 815.54 815.54 1,769.77 1,622.37 1,622.37October 835.20 773.68 791.34 1,608.85 1,562.94 1,562.94November 794.99 741.41 746.39 1,558.34 1,463.26 1,490.31December 746.21 626.97 632.54 1,489.08 1,361.59 1,361.59

2001 January 670.59 591.46 663.30 1,403.54 1,283.17 1,373.17February 662.49 618.53 618.53 1,388.37 1,348.96 1,348.96March 612.11 551.34 554.77 1,355.74 1,307.58 1,318.03April 552.67 514.37 552.67 1,320.44 1,248.99 1,298.47May 583.29 557.54 574.80 1,344.53 1,290.89 1,344.53June 594.38 573.30 593.18 1,417.77 1,335.56 1,417.77

Plantations

Mining




Syariah

Second Board Technology




Note: * Based on closing index.


124

Market Indicators

FYE 1998 FYE 1999 FYE 2000 FYE 2001

Highest Lowest Highest Lowest Highest Lowest Highest Lowest

EMAS Index 289.93 115.36 207.56 79.55 255.63 174.81 200.40 139.29

EMAS Moving Average 332.28 170.81 157.39 119.69 217.49 155.44 221.67 160.99

FYE 1998 FYE 1999 FYE 2000 FYE 2001


COMPOSITE Index 1,012.84 455.64 811.10 302.91 982.24 675.45 798.83 572.88

COMPOSITEMoving Average 1,159.88 645.44 603.50 464.09 846.69 611.03 868.82 675.64



125

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Industrial Index 2,028.06 915.83 1,380.58 639.44 1,683.24 1,207.07 1,429.92 1,119.59

Volume (mil) 5,155 1,152 7,086 820 10,623 1,299 1,693 669

Value (RM mil) 15,002 3,514 14,603 2,169 25,760 5,005 6,179 2,023

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Consumer Products Index 430.59 121.18 169.52 83.86 191.02 138.34 168.06 142.48

Volume (mil) 652 133 485 62 778 82 71 34

Value (RM mil) 1,850 363 1,266 212 2,013 459 487 239


126

Market Indicators

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Industrial Products Index 143.36 56.96 86.44 40.20 113.43 76.96 84.55 59.23

Volume (mil) 795 184 2,071 161 2,341 202 299 112

Value (RM mil) 4,874 375 3,282 331 8,190 587 821 159

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Construction Index 430.59 93.27 237.39 63.23 312.79 202.52 224.46 132.72

Volume (mil) 1,354 197 1,190 139 1,890 191 382 91

Value (RM mil) 3,120 303 2,541 189 4,806 611 1,085 172



127

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Mining Index 451.00 153.35 264.46 85.90 329.01 198.74 265.36 174.18

Volume (mil) 117 9 77 6 128 9 21 4

Value (RM mil) 597 10 137 8 239 18 42 4

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Trading/Services Index 150.69 71.07 128.84 47.36 154.97 106.53 124.04 83.20

Volume (mil) 2,353 629 3,341 455 5,620 802 941 401

Value (RM mil) 8,105 2,407 7,513 1,326 13,729 2,956 4,061 1,412


128

Market Indicators

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Finance Index 8,702.03 2,419.22 6,328.23 1,695.38 8,344.93 5,209.09 6,431.32 4,171.21

Volume (mil) 2,205 372 1,619 245 2,307 366 556 205

Value (RM mil) 5,829 860 4,836 615 7,765 1,648 2,301 849

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Property Index 2,103.50 580.35 1,064.73 414.61 1,274.90 950.21 951.93 552.67

Volume (mil) 1,335 231 1,585 175 3,530 224 207 94

Value (RM mil) 3,724 231 2,087 123 6,236 335 286 68



129

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Plantations Index 2,690.26 1,604.78 1,853.75 1,137.37 1,951.09 1,475.63 1,806.89 1,298.47

Volume (mil) 376 79 217 77 390 55 97 28

Value (RM mil) 2,077 254 678 203 1,373 151 247 64

FYE 1998 FYE 1999 FYE 2000 FYE 2001


Second Board Index 546.82 97.99 179.77 76.83 298.50 153.60 213.06 104.21

Volume (mil) 1,331 143 1,221 93 2,417 88 468 101

Value (RM mil) 13,467 221 3,607 103 9,822 240 1,368 128


130

Market Indicators

FYE 2000 FYE 2001

Highest Lowest Highest Lowest

Technology Index 166.05 129.35 137.54 38.46

Volume (mil) 10 4 30 2

Value (RM mil) 207 76 227 17

FYE 1999 FYE 2000 FYE 2001

Highest Lowest Highest Lowest Highest Lowest

Syariah Index 123.89 102.74 160.50 106.26 137.54 88.96

Volume (mil) 220 51 2,129 123 436 32

Value (RM mil) 487 127 6,043 443 1,633 114



131

Membership Report

During the year under review (1 July 2000 to 30 June 2001):-

(1) Cessation of Eight Member Companies (Voting Members):

No. Member Company Date of

Cessation

1 WK Securities Sdn Bhd 10.07.2000

2 Halim Securities Sdn Bhd 16.10.2000

3 Taiping Securities Sdn Bhd 20.11.2000

4 MBf Northern Securities Sdn Bhd 26.02.2001

5 OSK Securities (Melaka) Sdn Bhd 27.03.2001

6 Hwang-DBS Securities (Johor Bahru) Sdn Bhd 09.04.2001

7 PhileoAllied Securities Sdn Bhd 20.04.2001

8 Ke-Zan Securities Sdn Bhd 28.05.2001

(2) Six Corporations were admitted as Non-Dealing Member of the Exchange (Corporate Shareholder), via

the following Member Companies:

No. New Non-Dealing Member Member Company Date of

(Corporate Shareholder) Admission

1 Ideal Appraisal Sdn Bhd Alor Setar Securities Sdn Bhd 17.07.2000

2 Avenue Assets Bhd MGI Securities Sdn Bhd 22.11.2000

3 Share Technology Capital Group Sdn Bhd Labuan Securities Sdn Bhd 28.11.2000

4 Hwang-DBS Securities Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

5 Arab-Malaysian Securities Sdn Bhd South Johor Securities Sdn Bhd 26.02.2001

6 Kuala Lumpur City Corporation Bhd Malacca Securities Sdn Bhd 26.02.2001

(3) Thirteen Corporations resigned as Non-Dealing Member of the Exchange (Corporate Shareholder), via the

following Member Companies:

No. Non-Dealing Member Member Company Date

(Corporate Shareholder) Resigned

1 Omega Holdings Bhd WK Securities Sdn Bhd 10.07.2000

2 Uniphoenix Corporation Bhd Halim Securities Sdn Bhd 16.10.2000

3 Durapark Corporation Sdn Bhd Taiping Securities Sdn Bhd 20.11.2000

4 Johor Capital Holdings Sdn Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

5 Securities Investment Pte Ltd Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

6 Malaysian General Investment Allied Avenue Assets Securities Sdn Bhd 22.11.2000

Corporation Bhd

7 Mayban Securities (Holdings) Sdn Bhd PhileoAllied Securities Sdn Bhd 20.04.2001

8 South Johor Equities Sdn Bhd South Johor Securities Sdn Bhd 21.02.2001

9 MBf Capital Bhd MBf Northern Securities Sdn Bhd 26.02.2001

10 Phileo Allied Bhd PhileoAllied Securities Sdn Bhd 21.03.2001

11 TCL Premier Holdings Bhd OSK Securities (Melaka) Sdn Bhd 27.03.2001

12 Hwang-DBS Securities Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd

09.04.2001

13 Ke-Zan Holdings Bhd Ke-Zan Securities Sdn Bhd 28.05.2001

(4) One Individual resigned as Non-Dealing Member of the Exchange (Individual Shareholder), via the

following Member Company:

No. Name Member Company Date

Resigned

1 Estate of Rashidi Baba Labuan Securities Sdn Bhd 28.11.2000


132

Membership Report

(5) Demise of Dealing Member (Executive Director)

No. Name Member Company Date of

Demise

1 Din bin Mohd Hassan PhileoAllied Securities Sdn Bhd 20.12.2000

(6) Demise of Non-Dealing Member (Non-Executive Director)


Demise

1 Heinz Ewald Johann Poehlsen K & N Kenanga Bhd 04.01.2001

(7) Eleven Individuals were admitted as Dealing Member, viz:


Admission

1 Mohd Yusof bin Mohd Rashidi Kuala Lumpur City Securities Sdn Bhd 10.07.2000

2 Hashimah binti Ismail Alor Setar Securities Sdn Bhd 17.07.2000

3 Saiful Bahri bin Zainuddin Fima Securities Sdn Bhd 13.10.2000

4 Teoh Hock Chooi Fima Securities Sdn Bhd 13.11.2000

5 W ee Hoe Soon @ Gooi Hoe Soon MGI Securities Sdn Bhd 21.11.2000

6 Abdul Rauf bin Ramli MGI Securities Sdn Bhd 21.11.2000

7 Zulazman bin Zulkifli Labuan Securities Sdn Bhd 28.11.2000

8 Hwang Lip Teik Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

9 Noor Zakri bin Abdul Ghani Sarawak Securities Sdn Bhd 15.12.2000

10 Junaida bt Abdul Jalal Rashid Hussain Securities Sdn Bhd 22.12.2000

11 Awang bin Ahmad @ Awang Ariffin InnoSabah Securities Bhd 15.01.2001

(8) Thirty-five Individuals resigned/ceased as Dealing Member, viz:


Resignation

1 Lau Yew Kong SBB Securities Sdn Bhd 01.07.2000

2 Zainal bin Ahmad WK Securities Sdn Bhd 10.07.2000

3 Haji Rahmat bin Awi Peninsula Securities Sdn Bhd 12.07.2000

4 Dato Haji Sallehuddin bin Kassim Alor Setar Securities Sdn Bhd 18.07.2000

5 Haji Mansor bin Hussein Alor Setar Securities Sdn Bhd 18.07.2000

6 Tengku Abdul Halim Alhaj Ibni Almarhum Halim Securities Sdn Bhd 16.10.2000

Sultan Ibrahim

7 Loo Khee Kwong Halim Securities Sdn Bhd 16.10.2000

8 Chua Hock Seng Halim Securities Sdn Bhd 16.10.2000

9 Hassim bin Haji Baba Halim Securities Sdn Bhd 16.10.2000

10 Mohd Nasir bin Ali Kuala Lumpur City Securities Sdn Bhd 31.10.2000

11 Dato Ahmad bin Hj Ibnihajar Taiping Securities Sdn Bhd 20.11.2000

12 Harris bin Hj Ismail Taiping Securities Sdn Bhd 20.11.2000

13 Muhammad Nadzri bin Hamzah Taiping Securities Sdn Bhd 20.11.2000

14 Dr Abdul Hadi bin Derani Labuan Securities Sdn Bhd 28.11.2000

15 Dato Abdol Mulok bin Awang Damit Labuan Securities Sdn Bhd 28.11.2000

16 Abdul Hakim Mordani bin Abdul Hadi Labuan Securities Sdn Bhd 28.11.2000

17 Mohd Yusof bin Pandak Yatim Fima Securities Sdn Bhd 15.12.2000

18 Datuk Teh Ghee Kok TA Securities Bhd 22.01.2001

19 Thevanaigam Sukumari Chitty TA Securities Bhd 22.01.2001

20 Ahmad bin Abdullah PhileoAllied Securities Sdn Bhd 31.01.2001

21 Koh Kee Tee South Johor Securities Sdn Bhd 21.02.2001



133

22 Jason Chan Chau Yang South Johor Securities Sdn Bhd 21.02.2001

23 Ng Say Keow South Johor Securities Sdn Bhd 21.02.2001

24 Md Yusoff bin Md Ali Ke-Zan Securities Sdn Bhd 06.03.2001

25 Rosli bin Abdol Wahab Eng Securities Sdn Bhd 09.02.2001

26 Zainuddin bin Hj Din Malacca Securities Sdn Bhd 26.02.2001

27 Jimmy Tan Soon Sum OSK Securities (Melaka) Sdn Bhd 27.03.2001

28 Chow Yook Hey @ Chow Yoke Pui OSK Securities (Melaka) Sdn Bhd 27.03.2001

29 Loh Teck Yen OSK Securities (Melaka) Sdn Bhd 27.03.2001

30 Amin Rafie bin Othman Smith Zain Securities Sdn Bhd 31.03.2001

31 Johari bin Hassan Hwang-DBS Securities (Johor Bahru) Sdn Bhd

09.04.2001

32 Abang Zainal Abidin bin Abang Ahmad Upen Securities Sdn Bhd 23.04.2001

33 Dato Mahmud bin Haji Ali TA Securities Bhd 26.05.2001

34 Mohd Idris bin Ahmad Jais Ke-Zan Securities Sdn Bhd 28.05.2001

35 Loo Kok Yuen PM Securities Sdn Bhd 28.05.2001

(9) Twenty-nine Individuals were admitted as Non-Dealing Member of the Exchange (Non-Executive

Directors), viz:


Admission

1 Haji Yusoff bin Haji Tahir PTB Securities Sdn Bhd 07.07.2000

2 Datuk Dr Abdul Aziz bin Muhamad MIDF Sisma Securities Sdn Bhd 07.07.2000

3 Neoh Lean Teik Ke-Zan Securities Sdn Bhd 26.07.2000

4 Dr Lim Tock Hooi Ke-Zan Securities Sdn Bhd 26.07.2000

5 Musa bin Haji Mohd Dahan Leong & Company Sdn Bhd 01.08.2000

6 Ausaf Akhtar Abbas Smith Zain Securities Sdn Bhd 21.08.2000

7 Khoo Bee Lin PM Securities Sdn Bhd 22.08.2000

8 Nikmat bin Abdullah InnoSabah Securities Bhd 05.10.2000

9 Dato Mohamed Zain bin Mohamed Yusof Malacca Securities Sdn Bhd 01.11.2000

10 Hwang Lip Teik Hwang-DBS Securities Bhd 29.11.2000

11 Zainab bt Ahmad Botly Securities Sdn Bhd 06.12.2000

12 Dato Halim bin Muhamat CIMB Securities Sdn Bhd 15.01.2001

13 Arni bt Ariffin BBMB Securities Sdn Bhd 22.01.2001

14 Lok Bah Bah @ Loh Yeow Boo Alor Setar Securities (2000) Sdn Bhd 30.01.2001

15 Dato Mohammed bin Hussein PhileoAllied Securities Sdn Bhd 31.01.2001

16 Norazizi bin Mohd Rashid PhileoAllied Securities Sdn Bhd 31.01.2001

17 Nor Izmin bin Hasbullah Jupiter Securities Sdn Bhd 06.02.2001


19 Chang Tuck Chee @ Philip Chang South Johor Securities Sdn Bhd 12.02.2001

20 Mohamed Azahari bin Mohamed Kamil Jupiter Securities Sdn Bhd 22.02.2001

21 Dato Seri Dr Ting Chew Peh PM Securities Sdn Bhd 14.02.2001

22 Kalimullah bin Masheerul Hassan TA Securities Bhd 01.03.2001

23 U Chin Wei TA Securities Bhd 01.03.2001

24 W ong Hong Meng TA Securities Bhd 01.03.2001

25 Mustafa bin Haji Mohd Nor South Johor Securities Sdn Bhd 12.03.2001

26 Lee Yew Kin South Johor Securities Sdn Bhd 12.03.2001

27 Dato Seri Dr Ting Chew Peh Pan Malaysia Equities Sdn Bhd 12.04.2001

28 Othman bin Abdul Jalal BBMB Securities Sdn Bhd 23.04.2001

29 Haji Mohd Sallehuddin bin Othman MIDF Sisma Securities Sdn Bhd 11.05.2001

(10) Two Individuals were admitted as Non-Dealing Member of the Exchange (Individual Shareholder), viz:



134

Membership Report

Admission

1 Dato Haji Sallehuddin bin Kassim Alor Setar Securities Sdn Bhd 18.07.2000

2 Haji Mansor bin Hussein Alor Setar Securities Sdn Bhd 18.07.2000



135

(11) Forty Individuals resigned as Non-Dealing Member of the Exchange (Non-Executive Directors), viz:


Resignation

1 Abdul Aziz bin Mahmoud Salim PTB Securities Sdn Bhd 07.07.2000

2 Lutfiah bt Ismail Kuala Lumpur City Securities Sdn Bhd 07.07.2000

3 Ruzmi bin Ag Ya Alor Setar Securities Sdn Bhd 18.07.2000

4 Francis Yeo Teng Yang Affin-UOB Securities Sdn Bhd 19.07.2000

5 Tan Sri Dato Hj. Anuar bin Hj. Zainal Kuala Lumpur City Securities Sdn Bhd 21.07.2000

6 Jamaludin bin Md Ali PJB-OUB Securitites Sdn Bhd 12.08.2000

7 Leong Mun Wai OCBC Securities (Melaka) Sdn Bhd 12.08.2000

8 Goh Geok Khim Straits Securities Sdn Bhd 30.08.2000

9 Mohd Redza Shah bin Abdul Wahid BBMB Securities Sdn Bhd 13.10.2000

10 Dato Nik Mohd Sidek bin Nik Abu Bakar Halim Securities Sdn Bhd 16.10.2000

11 Dato Kamaruddin Taib Halim Securities Sdn Bhd 16.10.2000

12 Lee Kwong Ann Halim Securities Sdn Bhd 16.10.2000

13 Ho Chun Fatt Halim Securities Sdn Bhd 16.10.2000

14 Edwin Madarang Yang JB Securities Sdn Bhd 13.11.2000

15 Datuk Hj Ishak bin Ismail Taiping Securities Sdn Bhd 20.11.2000

16 Dato Hj. Md Shariff bin Hj Shamsuddin MGI Securities Sdn Bhd 25.11.2000

17 Haji Ahamad bin Mohamad Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

18 Mohamed Azahari bin Mohamed Kamil Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

19 Kau Jee Chu Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

20 Mohamad bin Alwi Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

21 Dato Mohd Ghazali bin Mohd Khalid MGI Securities Sdn Bhd 15.12.2000

22 Datuk Tiah Thee Kian Botly Securities Sdn Bhd 22.12.2000

23 Dato Haji Darwis bin Mohd Daid @ MIDF Sisma Securities Sdn Bhd 31.12.2000

Darwis bin Mohd Daek

24 Datuk Mohamed bin Abid TA Securities Bhd 22.01.2001

25 Hamzah bin Harun Kota Bharu Securities Sdn Bhd 06.02.2001

26 Roslan bin Haji Yahya South Johor Securities Sdn Bhd 21.02.2001

27 Dato Loy Teik Ngan MBf Northern Securities Sdn Bhd 26.02.2001

28 Mirzan bin Mahathir Ke-Zan Securities Sdn Bhd 06.03.2001

29 Ronald Anthony Ooi Thean Yat Ke-Zan Securities Sdn Bhd 06.03.2001

30 Dr Lim Tock Hooi Ke-Zan Securities Sdn Bhd 06.03.2001

31 Neoh Lean Teik Ke-Zan Securities Sdn Bhd 06.03.2001

32 Hwang Lip Teik Hwang-DBS Securities (Johor Bahru) Sdn Bhd

09.04.2001

33 Azlan bin Mohd Zainol Arab-Malaysian Securities Sdn Bhd 15.04.2001

34 Dato Mohamed bin Hussein PhileoAllied Securities Sdn Bhd 20.04.2001

35 Norazizi bin Mohd Rashid PhileoAllied Securities Sdn Bhd 20.04.2001

36 Dato Mokhzani bin Mahathir Kestrel Securities Sdn Bhd 26.04.2001

37 Yeow Keng Chew Kestrel Securities Sdn Bhd 26.04.2001

38 W ong Hong Meng TA Securities Bhd 19.05.2001


40 Haji Mahfudz bin Muhamad Botly Securities Sdn Bhd 30.06.2001

(12) Change of Member Companies Name

No. Member Company New Name Effective

Date


136

Membership Report

1 OCBC Securities (Melaka) Sdn Bhd OSK Securities (Melaka) Sdn Bhd 18.09.2000

2 O.S.K. Securities Berhad OSK Securities Bhd 27.11.2000

3 PJB-OUB Securities Sdn Bhd Hwang-DBS Securities (Johor Bahru) Sdn Bhd

29.11.2000

4 Alor Setar Securities Sdn Bhd Alor Setar Securities (2000) Sdn Bhd 06.12.2000

5 Labuan Securities Sdn Bhd ShareTech Securities Sdn Bhd 05.01.2001

6 MGI Securities Sdn Bhd Allied Avenue Assets Securities Sdn Bhd 19.02.2001

(13) Changes of Member Companies Business Address

No. Member Company Business Address Effective

Date

1 JF Apex Securities Bhd W isma Apex 20.10.2000

145A-C & 2nd Floor 145D-F

Jalan Bukit

43000 Kajang

Selangor Darul Ehsan

2 HLG Securities Sdn Bhd Level 1-7, No. 3 23.10.2000

W isma Kia Peng

Jalan Kia Peng

50450 Kuala Lumpur

Tel. No: 03-21681168/27101168

Fax No: 03-21615900

3 PM Securities Sdn Bhd Tingkat Bawah dan Tingkat 1 27.11.2000

Plaza MUI

Jalan P. Ramlee

50250 Kuala Lumpur

Tel. No: 03-21463000

Fax No: 03-21456345

4 ShareTech Securities Sdn Bhd Unit 7A, Level 7 29.11.2000

Financial Park Complex

Jalan Merdeka

87000 Wilayah Persekutuan Labuan

5 FA Securities Sdn Bhd No. 51 & 51A 11.12.2000

Ground, Mezzanine and 1st Floor

Jalan Tok Lam

20100 Kuala Terengganu

6 Mayban Securities Sdn Bhd Tingkat 5 13 27.03.2001

MaybanLife Tower

Dataran Maybank

No. 1 Jalan Maarof

59000 Kuala Lumpur

Tel. No: 03-22978888

Fax No: 03-22825136

7 Kuala Lumpur City Securities Sdn Bhd No. 8 Jalan Binjai 02.04.2001

Off Jalan Ampang

50450 Kuala Lumpur



137

KLSE Members as at 30 June 2001

ARAB-MALAYSIANSECURITIESSDN BHD

15th FloorBangunan Arab-Malaysian55, Jalan Raja Chulan50200 Kuala LumpurTel : 03-2382788/99Fax : 03-2383162

2303175

Dealing Members:Haji Ismail bin AbdullahMustafa bin Hj Mohd NorChang Tuck Chee @Philip Chang

Ahmad bin Bachok

Non-Dealing Members:Arab-Malaysian SecuritiesHoldings Sdn Bhd

Dato Hj Azlan bin HashimCheah Tek KuangLee Siang Korn @Lee Siang Chin

AFFIN-UOBSECURITIESSDN BHD

Level 3, Menara KeckSeng203, Jalan Bukit Bintang55100 Kuala LumpurTel : 03-21438668Fax : 03-21433663

Dealing Member:To Puan Siti Norizam bteMohd Yusoff

Non-Dealing Members:Affin-UOB HoldingsSdn Bhd

Yu Choong CheongGen (B) Dato Ismail binHassan

Lee Swee Kiat

ALLIED AVENUEASSETSSECURITIESSDN BHD

1st & 2nd FloorW isma MGIC38, Jalan Dang Wangi50100 Kuala LumpurTel : 03-26911889Fax : 03-26942903

Dealing Members:W ee Hoe Soon @Gooi Hoe Soon

Abdul Rauf bin Ramli

Non-Dealing Member:Avenue Assets Bhd

BBMBSECURITIESSDN BHD

Level 2, 3, 4 & 15Menara OlympiaLetter Box No 2No 8, Jalan Raja Chulan50200 Kuala LumpurTel : 03-2019900Fax : 03-2041582

Dealing Member:Hassan bin Jaafar

Non-Dealing Members:Khazanah Nasional BhdNik Hassan binNik Mohd Amin

Dato Anwar bin Haji @ AjiArni bte AriffinOthman bin Abdul Jalal

BIMBSECURITIESSDN BHD

1st & 2nd FloorPodium BlockBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel : 03-4433533Fax : 03-4413433

44126224414159

Dealing Member:Dato Dr Abdul Halim binHaji Ismail

Non-Dealing Members:BIMB Securities (Holdings)Sdn Bhd

Yayasan PembangunanEkonomi Islam Malaysia

Dato Ahmad Tajudin binAbdul Rahman

Dato Hj Mohamed binShafie

Mustafa bin Hamat

CIMBSECURITIESSDN BHD

9th Floor, CommerceSquareJalan SemantanDamansara Heights50490 Kuala LumpurTel : 03-2532288

Dealing Member:Yusli bin Mohamed Yusoff

Voting Members Federal Territory of Kuala Lumpur

Non-Dealing Members:CIMB Holdings Sdn BhdMohamed Nazir binAbd Razak

Robert Chiem Dau MengLim Tiang SiewMohd Shukri bin HussinDato Halim bin Muhamat


138


HLGSECURITIESSDN BHD

Level 1-7No 3, Wisma KiaPengJalan Kia Peng50450 Kuala LumpurTel : 03-21681168

27101168Fax : 03-21615900

Dealing Members:Omar bin ZolkifliLee Wai KokDavid Chua Ming Huat

Non-Dealing Member:HLG Capital Bhd

INTER-PACIFICSECURITIESSDN BHD

Level 7Menara Shahzan Insas30 Jalan Sultan Ismail50250 Kuala LumpurTel : 03-21441888Fax : 03-21441686

Dealing Members:Pang Poh PingAbdul Majid binHj Mohd Harun

Non-Dealing Members:Inter-Pacific Capital SdnBhdChan Kien SingRobert Yong Kuen LokeTan Sri Datuk AbdulRahimbin Hj Din

JUPITERSECURITIESSDN BHD

7th, 8th & 9th FloorMenara Olympia8, Jalan Raja Chulan50200 Kuala LumpurTel : 03-2041888Fax : 03-2042288

Dealing Members:Mohamad Saleh binMd Yusof

Lo Kok Kee

Non-Dealing Members:Olympia Industries BhdKoperasi Polis Di RajaMalaysia Bhd

Looi Kheng HwaIshak bin HassanZahar bin Hj AriffinYap Wee KeatTun Dato Seri AbdulHamidbin Omar

Nor Izmin bin HasbullahMohamed Azahari bin

K & NKENANGA BHD

801, 8th FloorKenanga InternationalJalan Sultan Ismail50250 Kuala LumpurTel : 03-21649080

21624190Fax : 03-21614990

21635927

Dealing Members:Tengku Dato PadukaNoorZakiah bte Tengku

Ismail

Non-Dealing Members:K & N Kenanga HoldingsBhd

KAF-SEAGROATT &CAMPBELLSECURITIESSDN BHD

30th Floor, The WeldTower76, Jalan Raja Chulan50200 Kuala LumpurTel : 03-2081600

Dealing Member:Ahmad bin Kadis

Non-Dealing Members:KAF-Seagroatt & CampbellHoldings Bhd

Datuk Khatijah bte AhmadFaisol bin Zulkifli

FIMASECURITIESSDN BHD

No 45-14Plaza Level & Level 1Plaza DamansaraJalan Medan Setia SatuDamansara Heights50490 Kuala LumpurTel : 03-2549966Fax : 03-2548595

Dealing Members:Saiful Bahri bin ZainuddinTeoh Hock Chooi

Non-Dealing Members:Capitalcorp HoldingsSdn Bhd

Ahmad Riza bin BasirTan Sri Dato Hj Basir binIsmail

Dato Hj Mohd Noor binIsmail

Abu Hassan bin Kendut



139

M AYBANSECURITIESSDN BHD

Tingkat 5-13MaybanLife TowerDataran MaybankNo 1, Jalan Maarof59000 Kuala LumpurTel : 03-22978888Fax : 03-22825136

Ipoh Branch55, 57 & 63Persiaran Greenhill30450 IpohPerak Darul RidzuanTel : 05-2558233

2423888Fax : 05-2534333

Dealing Member:Abdul Wahab binNan Abidin

Non-Dealing Members:Mayban Securities(Holdings)Sdn Bhd

Tan Sri Mohamed BasirbinAhmad

Mohammad bin AbdullahHj Mohd Hashir binHj Abdullah

Dato Ahmad Badri binMohd Basir

Dato Mohammed binHj Che Hussein

MIDF SISMASECURITIESSDN BHD

17th & 18th FloorEmpire Tower182, Jalan Tun Razak50400 Kuala LumpurTel : 03-21668888Fax : 03-21669999

Dealing Member:Datin Mariam Prudencebte Yusof

Non-Dealing Members:MIDF Sisma HoldingsSdn Bhd

Dato Dr Abdullah binMohd Tahir

Dato Mohd Ghaus binBadioze Zaman

Allen N LopezDato Syed Ibrahim binSyed Mohamed

Datuk Dr Abdul Aziz binMuhamad

Haji Mohd Sallehuddin binOthman

LEONG & COSDN BHD

Level 18, WismaCyclecarri288, Jalan Raja Laut50350 Kuala LumpurTel : 03-26928899Fax : 03-26949088

Dealing Members:Leong Kun KayAnne Leong Sau LengChristine Leong YuenLengPeter Leong Tuck LengMaggie Yu Kwei Sim

Non-Dealing Members:Ceria Alam Sdn BhdEdaran Otomobil NasionalBhd

Musa bin Haji MohdDahan

KUALA LUMPURCITYSECURITIESSDN BHD

No 8, Jalan BinjaiOff Jalan Ampang50450 Kuala LumpurTel : 03-21667922Fax : 03-21667909

Kuantan BranchA-397, A-399 & A-401Taman Sri Kuantan IIIJalan Beserah25300 KuantanPahang Darul MakmurTel : 09-5660800Fax : 09-5660801

Dealing Member:Mohd Yusof bin MohdRashidi

Non-Dealing Members:Assedina Sdn BhdKhadijah bte Abdul Khalid


140

OSKSECURITIESBHD

10th Floor, Plaza OSKJalan Ampang50450 Kuala LumpurTel : 03-21624388Fax : 03-21618254

Ipoh Branch21-25, JalanSeenivasagamGreentown30450 IpohPerak Darul RidzuanTel : 05-2415100Fax : 05-2553903

Melaka Branch579, 580-581 A&BTaman Melaka Raya75000 MelakaTel : 06-2825211

2845211Fax : 06-2844861

Penang Branch64, Bishop Street20F & 20G Penang Street10200 PenangTel : 04-2634222Fax : 04-2622299

Dealing Members:Dato Nik Mohamed binNik Yahya

Chin Cheng MeiW ong Chong KimOng Leong Huat @W ong Joo Hwa

Nik Halim @ Nik Ghazibin Haji Nik Daud

Non-Dealing Member:OSK Holdings Bhd

P MSECURITIESSDN BHD

Ground & 1st FloorPlaza MUIJalan P Ramlee50250 Kuala LumpurTel : 03-21463000Fax : 03-21456345

Dealing Members:Noorjehan Rahima bteAbdul Hamid Jumat

Leong Kok Wah

Non-Dealing Members:Pan Malaysia Capital BhdKhet Kok YinDatin Munirah bteAbdullah Ng

Dato Abdul Raman binSuliman

Zainal Rashid binZainal Abidin

Khoo Bee LinDato Seri Dr Ting Chew

PB SECURITIESSDN BHD

27th FloorBangunan Public BankNo 6, Jalan SultanSulaiman50000 Kuala LumpurTel : 03-2013011

Dealing Member:Yong Yoong Fa

Non-Dealing Members:Public ConsolidatedHoldingsSdn Bhd

Dato Tay Ah LekTan Sri Dato Dr TehHong Piow

Dato Lee Kong LamIsmail Ibrahim

RASHIDHUSSAINSECURITIESSDN BHD

Level 9, Tower OneRHB CentreJalan Tun Razak50400 Kuala LumpurTel : 03-9852233Fax : 03-9855522

Dealing Members:Tan Sri Dato AbdulRashidbin Haji Mohamed

HussainTajul Ariffin bin Mohd

Non-Dealing Members:RHB Capital BerhadOh Chong PengRuslan bin Hassan




141

MOHAIYANISECURITIESSDN BHD

1st, 2nd & 3rd FloorPlaza Damansara UtamaNo 2, Jalan SS21/60Damansara Utama47400 Petaling JayaSelangor Darul EhsanTel : 03-77297345Fax : 03-77281357

Dealing Members:Datuk Mohaiyani bteShamsudin

Abdul Hamid binAbdul Samad

Nik Aminaldin binNik Jaafar

Chin Kok Keng

Non-Dealing Members:ParibasChristian Georges HenriGautier De Charnace

Abdul Ghani bin AhmadAdam Ghani Ahmad binAbdul Ghani

Amir Ghani Ahmad binAbdul Ghani

Voting Member Selangor Darul Ehsan Petaling Jaya

JF APEXSECURITIESBHD

W isma Apex145A-C & 2nd Floor 145D-FJalan Bukit43000 KajangSelangor Darul EhsanTel : 03-87361118Fax : 03-87374532

Petaling Jaya BranchLevel 15 & 16Menara Choy Fook OnNo 1B, Jalan Yong ShookLin46050 Petaling JayaSelangor Darul Ehsan

Dealing Members:Chan Guan SengNg Seng LeongKharul Hurri binKhalid Abbas

Non-Dealing Members:Apex Equity Holdings BhdJardine Fleming (M)ServicesSdn Bhd

Christopher Mark Quinton

Voting Member Selangor Darul Ehsan Kajang

AMSTEELSECURITIES (M)SDN BHD

1st, 2nd, 3rd & 4th FloorW isma Amsteel SecuritiesNo 1, Lintang Pekan BaruOff Jalan Meru41050 KlangSelangor Darul EhsanTel : 03-3439999Fax : 03-3433872

Dealing Members:Ee Beng GuanDato Hj Abdul Rahim binMohd Ibrahim

Non-Dealing Members:Datavest Sdn BhdDato Hj Kamaruddin @Abas bin Nordin

Sia Say Yee

Voting Member Selangor Darul Ehsan Klang

TA SECURITIESBHD

Menara TA One22, Jalan P Ramlee50250 Kuala LumpurTel : 03-2321277Fax : 03-2322369

Dealing Members:Datin Tan Kuay FongIgnatius Luke Jr TanKeng Hee

Attan Akmar bin Masbah

Non-Dealing Members:TA Enterprise BhdKalimullah bin MasheerulHassan

U Chin Wei

SIMESECURITIESSDN BHD

21st FloorBangunan Sime Bank4, Jalan Sultan Sulaiman50000 Kuala LumpurTel : 03-22749288/778Fax : 03-22749907

Dealing Member: Nil

Non-Dealing Members:SimeSecurities HoldingsSdn Bhd

Dr Shafiq Sit bin AbdullahNik Din bin Nik SulaimanTunku Tan Sri Dato SeriAhmad bin Tunku Yahya

Thavarajah a/l Chinniah


142


SJ SECURITIESSDN BHD

Level 3, Holiday VillaNo 9, Jalan SS12/147500 Subang JayaSelangor Darul EhsanTel : 03-7340202Fax : 03-7348342

Dealing Members:Ahmad Azman binAbdul Manaf

Lim Poh Ho

Non-Dealing Members:Carta Bintang Sdn BhdDato Ahmad Sebi binBakar

O M E G ASECURITIESSDN BHD(Dealer s licencerevoked by theSecuritiesCommission on 5 June 1998)

15th FloorPlaza PerangsangPersiaran Perbandaran40990 Shah AlamSelangor Darul EhsanTel : 03-5594900Fax : 03-5599682

Dealing Members:Abdullah bin AyubTiah Thee PengYeo Lee Hoe

Non-Dealing Member:Omega Holdings Bhd

Member Company Selangor Darul Ehsan Shah Alam

E N GSECURITIESSDN BHD

95, Jalan Tun AbdulRazak80000 Johor BahruJohor Darul TakzimTel : 07-2231211/8212Fax : 07-2246266

Dealing Member:Lim Khuan Eng

Non-Dealing Members:Inter-Pacific Capital SdnBhdDatuk Hj Mohd Fatmi binHj Che Salleh

Azlan Meah binHj Ahmad Meah

Chan Kien Sing

JB SECURITIESSDN BHD

Suite 8.2 Level 8Menara SarawakEnterpriseNo 5, Jalan Bukit Meldrum80300 Johor BahruJohor Darul TakzimTel : 07-3332000

Dealing Members:Yap Kai KengIdris bin Osman

Non-Dealing Member:Dynamic Pearl Sdn Bhd

PENINSULASECURITIESSDN BHD

Level 2, Menara PelangiJalan Kuning, TamanPelangi80400 Johor BahruJohor Darul TakzimTel : 07-3333600

Dealing Member:Er Chin Her @ Er Ee

Non-Dealing Members:Pan Pacific Asia BhdDatuk Dr Philip LingLee Kang

Voting Member Johor Darul Takzim Johor Bahru

KESTRELSECURITIESSDN BHD

57, 59 & 61, Jalan Ali84000 MuarJohor Darul TakzimTel : 06-9532222

9531222Fax : 06-9516660

Dealing Members:Leow Wong Kong @Leow Woon Kuang

Abd Rahman binAbu Samah

Non-Dealing Members:Tongkah Holdings BhdAbdul Rahman binDato Mohd Hashim

Affendi bin ZahariMohd Alkaf bin Mohd

Voting Member Johor Darul Takzim Muar

SOUTH JOHORSECURITIESSDN BHD

3rd FloorPenggaram Complex1, Jalan Abdul Rahman83000 Batu PahatJohor Darul TakzimTel : 07-4342282Fax : 07-4327982

Dealing Member:Husni bin Hussain

Non-Dealing Members:Arab-Malaysian SecuritiesSdn Bhd

Chang Tuck Chee @Philip Chang

Mustafa bin Haji Mohd NorLee Yew Kin

Voting Member Johor Darul Takzim Batu Pahat



143

KOTA BHARUSECURITIESSDN BHD

298, Jalan Tok Hakim15000 Kota BharuKelantan Darul NaimTel : 09-7432288Fax : 09-7485366

Dealing Member:Mohamad bin Ab Aziz

Non-Dealing Members:Pakatan Canggih Sdn BhdMohd Faiz bin AbdullahChan Gak KeongW ong Hong MengHj Mahfudz bin Muhamad

Voting Member Kelantan Darul Naim

MALACCASECURITIESSDN BHD

No 1, 3 & 5, Jalan PPM 9Plaza Pandan MalimBusiness ParkBalai Panjang75250 MelakaTel : 06-3371533Fax : 06-3371550

3371577

Dealing Members:Sim Swee TinSim Cheng Khuan

Non-Dealing Members:T.M. Lim Sdn BhdLim Peng CheongDato Mohamed Zain binMohamed Yusof

Kuala Lumpur CityCorporation Bhd

STRAITSSECURITIESSDN BHD

Lot 9 & 10, 1st FloorBangunan Tabung HajiJalan Banda Kaba75000 MelakaTel : 06-2833622Fax : 06-2849886

Dealing Members:Goh Choon HockAhmad Ezzanee AzizanbinMohd Ali Azizan

Non-Dealing Members:Straits Asset HoldingsSdn Bhd

Rosely bin AhmadSeah Fook Chin

Voting Members Melaka

MALPA CSECURITIESSDN BHD

Tingkat 1, 2 & 3Nos 19 21Jalan Kong Sang70000 SerembanNegeri Sembilan DarulKhususTel : 06-7623131

Dealing Members:Chew Loy CheeGan Teck Chong @Gan Kwan Chong

Tan Chon Sing @Tan Kim Tieng

Ang Poo Guan

Non-Dealing Member:Malpac Holdings Bhd

Voting Members Negeri Sembilan Darul Khusus

UPENSECURITIESSDN BHD

2nd Floor, Podium BlockBangunan KWSP01000 KangarPerlis Indera KayanganTel : 04-9765200Fax : 04-9760411

Dealing Member: Nil

Non-Dealing Members:Amal Bakti Sdn BhdTan Sri Dato Seri DrAbdulHamid bin Pawanteh

Voting Member Perlis Indera Kayangan

ALOR SETA RSECURITIES(2000) SDN BHD

Lot T-30, 2nd FloorW isma PKNKJalan Sultan Badlishah05000 Alor SetarKedah Darul AmanTel : 04-7317088/8270Fax : 04-7318428

Dealing Member:Hashimah bte Ismail

Non-Dealing Members:Kelanamas Capital SdnBhdTunas Enterprise Sdn BhdIdeal Appraisal Sdn BhdDato Dr Haji SallehuddinMansor bin HusseinLok Bah Bah @

Voting Member Kedah Darul Aman


144


PAN MALAYSIAEQUITIES SDN BHD

9th & 10th FloorBangunan Yayasan NegeriSembilan, Jalan Yam Tuan70000 SerembanNegeri Sembilan DarulKhususTel : 06-7633888

7638999

Dealing Member:Ramli bin Mahmudin

Non-Dealing Members:Pan Malaysia Capital BhdDatuk Mohd Yasin binJaafarKhet Kok YinDato Seri Dr Ting ChewPeh

A A ANTHONY& CO SDN BHD

No 41-1-1 & 41-2-1Jalan Cantonment10250 Pulau PinangTel : 04-2299318Fax : 04-2268788

Dealing Members:Lim Tiong ChinHaji Abdul Rahman binHaji Ahmad

Non-Dealing Members:Dato Lim Pee HungLim Pee KeeLim Pee TongLim Teong Khoon

Voting Members Penang

H WANG-DBSSECURITIESBHD

Level 2, 3, 4, 7 & 8W isma Sri Pinang60, Green Hall10200 Pulau PinangTel : 04-2636996Fax : 04-2639597

Shah Alam Branch:16th, 18th-20th FloorPlaza Masalam2, Jalan Tengku AmpuanZabedahE9/E Section 940100 Shah AlamSelangor Darul EhsanTel : 03-55133288Fax : 03-55138288

Taiping Branch:Tingkat BawahAras 1, 2 & 321, Jalan StesenAras 2 & 343 & 45 Jalan Stesen34000 TaipingPerak Darul RidzuanTel : 05-8066688

8060888Fax : 05-8089229

Johor Bahru Branch:Podium 2A & 3Menara Ansar65, Jalan Trus80000 Johor BahruJohor Darul TakzimTel : 07-2222692

2768787Fax : 07-2765201

Dealing Members:Dato Hwang Sing LueTunku Dato SeriNadzaruddin ibniTuanku Ja afar

Hwang Lip Teik

Non-Dealing Members:Hwang-DBS (Malaysia)Berhad

Tunku Tan Sri Imran ibniTuanku Ja afar



145

THONG & KAY HIANSECURITIESSDN BHD

W isma Sri PinangLevel 5 & 660, Green Hall10200 PenangTel : 04-2635481Fax : 04-2635741

2622852

Dealing Members:Thong Wai LoenThong Yue LeongThong Miew Peng

Non-Dealing Members:Kay Hian (M) HoldingsSdn Bhd

Tang Wee LokeW ee Ee ChaoEstate of Dato Hj Alibin Esa

UT SECURITIESSDN BHD

6th, 10th & 12th FloorBangunan Mayban Trust3, Penang Street10200 PenangTel : 04-2626644/6660Fax : 04-2644166

Dealing Members:Frederick Ng Kweng ChanLee Seong Chong

Non-Dealing Members:Rentak Wira Sdn BhdGoh Choon LyeLing Hee KeatDato Kamaruddin binJaafar

MERCURYSECURITIESSDN BHD

Ground, 1st, 2nd & 3rdFloorW isma UMNOLorong Bagan Luar Dua12000 ButterworthSeberang PeraiTel : 04-3322123Fax : 04-3231813

Dealing Members:Chew Sing GuanMat Zuki bin Mahmud

Non-Dealing Member:Hj Shuaib bin Lazim

Voting Member Butterworth

BOTLYSECURITIESSDN BHD

1st FloorPlaza Teh Teng Seng227, Jalan Kampar30250 IpohPerak Darul RidzuanTel : 05-2531313Fax : 05-2536785

2557950

Dealing Members:Ee Beng WatToo Hai OngAhmad Sabri bin Harun

Non-Dealing Members:TA Enterprise BhdDatin Tan Kuay FongZainab bte Ahmad

KIN KHOON &CO SDN BHD

A23 A29W isma Kota EmasJalan Dato Tahwil Azar30300 IpohPerak Darul RidzuanTel : 05-2543311Fax : 05-2545567

2556570

Dealing Member:Abdul Molok bin AbuBakar

Non-Dealing Members:Asian Pac Holdings BhdDato Hamzah binZainuddinPhillip Gong Chiok Sin

Voting Members Perak Darul Ridzuan

SMITH ZAINSECURITIESSDN BHD

7th & 8th FloorMenara PSCI39, Jalan Sultan AhmadShah10050 PenangTel : 04-2283355

Dealing Members:Tan Chong PenTan Giap How

Non-Dealing Members:Smith Zain (Malaysia)Sdn Bhd

Dato Kamarudin bin AbuAusaf Akhtar Abbas

SOON THEAMSECURITIESSDN BHD

No 111, Jalan Macalister10400 PenangTel : 04-2281868Fax : 04-2263912

Dealing Members:Yeo Khee NamYeo Khee BeeAhmad bin Md MydinYeo Khee Aik

Non-Dealing Members:Yeo Eng Chew, CorneliusYeo Eng HaiYeo Eng Ho


146


M & ASECURITIESSDN BHD

M & A Building52A, Jalan Sultan IdrisShah30000 IpohPerak Darul RidzuanTel : 05-2419800

Dealing Members:Choo Sen YoongThong Kok Yoon

Non-Dealing Member:Insas Bhd

SBBSECURITIESSDN BHD

51-53 Persiaran Greenhill30450 IpohPerak Darul RidzuanTel : 05-2530888Fax : 05-2537666

Dealing Members:Raja Puan Sri DatoNooraAshikin bte Raja

Abdullah

Non-Dealing Members:SBB Capital MarketsSdn Bhd

Ramuda Sdn BhdNordin bin YahayaDato Tan Teong Hean

PTBSECURITIESSDN BHD

Tingkat 1, 2 & 3No 61, Jalan Sultan IsmailPeti Surat 151Pejabat Pos Besar20700 Kuala TerengganuTerengganu Darul ImanTel : 09-6235546Fax : 09-6235532

Dealing Member:Ismail bin Nik Man

Non-Dealing Members:PTB Securities HoldingsSdn Bhd

Mat Zaid bin IbrahimDato Mazlan @ MohdNanribin Hashim

Hj Yusoff bin Hj Tahir

FA SECURITIESSDN BHD

No 51 & 51A, Ground,Mezzanine and 1st FloorJalan Tok Lam20100 Kuala TerengganuTerengganu Darul ImanTel : 09-6238128Fax : 09-6238129

Dealing Member:Isa bin Mustapha

Non-Dealing Members:FA Peninsular BhdPerbadanan Menteri BesarTerengganu

Dato Muhammad Fasir binSamsudin

Hj Mohd Ariff bin Taib

Voting Members Terengganu Darul Iman

SARAW AKSECURITIESSDN BHD

W isma MahmudJalan Sungai Sarawak93100 KuchingSarawakTel : 082-338000Fax : 082-338222

Miri Branch:Lot 2465Jalan Boulevard UtamaBoulevard CommercialCentre98000 MiriSarawakTel : 085-435577

Dealing Members:Dato Haji Onn binMahmudShahnaz bte Abdul MajidNoor Zakri bin Abdul

Non-Dealing Members:CMS Capital Sdn BhdHijjas bin KasturiMahmud Abu Bekir binTaibSulaiman Abd Rahmanbin Taib

Voting Members Sarawak



147

Number of Member Companies (Voting Members): 56

Number of Dealing Members : 116

Number of Non-Dealing Members : 206

INNOSABAHSECURITIESBHD

11 Equity House, Block KSadong Jaya,Karamunsing88100 Kota KinabaluSabahTel : 088-234090

Dealing Members:Faidzan bin HassanKong Kok KeongFreddie Chew Sun GheeAwang bin Ahmad @Awang Ariffin

Non-Dealing Members:Kretam Holdings BhdSeah Sen LeangLee Swi HengNikmat bin Abdullah

Voting Member Sabah

SHARETECHSECURITIESSDN BHD

Unit 7A, Level 7Financial Park ComplexJalan Merdeka87000 WilayahPersekutuanLabuanTel : 087-410622

Dealing Member:Zulazman bin Zulkifli

Non-Dealing Member:Share Technology CapitalGroup Sdn Bhd

Voting Member Federal Territory of Labuan

BORNEOSECURITIESSDN BHD

12G, Jalan Kampung Datu96000 SibuSarawakTel : 084-319998Fax : 084-313193

Dealing Member:Tan Mee Mee

Non-Dealing Members:Borneo Securities HoldingsSdn Bhd

Tan Sri Dato Seri MegatJunid bin Megat Ayob

Engak @ Richard WilAnak Uban

Henry Lian AranClement Jamal Anak EddyJoseph Salang Anak


148

Notice of Annual General Meeting

NOTICE IS HEREBY GIVEN THAT the Twenty-Fifth Annual General Meeting of the Exchange will be held

at the KLSE Theatrette, Lower Ground Floor, Exchange Square, Bukit Kewangan, 50200 Kuala Lumpur on

S a t u r d a y ,

10 November 2001 at 11:30 a.m. to transact the following business:

1. To confirm the Minutes of the Twenty-Fourth Annual General Meeting held on 25 November 2000 at

11:30 am.

2. To receive and adopt the report of the Committee, the Income and Expenditure Accounts for the year

e n d e d

30 June 2001 and the Balance Sheet as at 30 June 2001 with Auditors Report thereon in respect of

the Kuala Lumpur Stock Exchange and the Kuala Lumpur Stock Exchange Compensation Fund.

3. To elect two (2) Committee Members.

4. To elect Auditors and to authorise the Committee to fix their remuneration.

5. To transact any other business which may be properly transacted at an Annual General Meeting.

BY ORDER OF THE COMMITTEE

AHMAD AZNAN MOHD NAW AWI

(LS No: 006940)

Company Secretary

Kuala Lumpur

19 October 2001

NOTE:A. APPOINTMENT OF PROXY

RE: ARTICLES OF ASSOCIATION OF THE EXCHANGE1. ARTICLE 24.7

(a) in the case of a Voting Member, only one of its executive directors shall be entitled to attend and voteon its behalf at the general meeting and in the event such executive director is unable to attend thegeneral meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint a proxy toattend and vote on behalf of the Voting Member;

(b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstancesreferred to in Article 4.2(2) apply, such Members are entitled to appoint proxies to attend and vote ontheir behalf, respectively.

2. ARTICLE 26.4(1)A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.

3. ARTICLE 4.2(1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at

all general meetings of the Exchange.(2) In addition to the rights conferred under Article 4.2(1) a Non-Voting Member shall also have the right to

vote upon any resolution which varies or affects his rights or privileges as a Non-Voting Member underthe Memorandum of Association or these Articles.


W e ____________________________________________________________________________________

of _____________________________________________________________________________________

being a Member of Kuala Lumpur Stock Exchange hereby appoint _______________________________

of _____________________________________________________________________________________

as our proxy/representative to vote for us and on our behalf at the Twenty-Fifth Annual General Meeting

of the Exchange to be held on Saturday, 10 November 2001 at 11:30 a.m. and at any adjournment thereof.

Made this ____________ day of ____________ 2001.

______________________________________________

Signature of Director/Attorney authorised to act on

behalf of the Member

______________________________________________

Common Seal of the Member affixed in the presence

of the persons authorised by the Board of Directors

EXPLANATO RY NOTESA. 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 voteon its behalf at the general meeting and in the event such executive director is unable to attend thegeneral meeting, the Voting Member shall, subject to Article 26.4(1), be entitled to appoint a proxy toattend and vote on behalf of the Voting Member;

(b) in the case of Non-Voting Members who are entitled to attend and vote and where the circumstancesreferred to in Article 4.2(2) apply, such Members are entitled to appoint proxies to attend and vote ontheir behalf, respectively.

(2) ARTICLE 26.4(1)A Member shall not be entitled to appoint a natural person who is not a Member as its proxy.

(3) ARTICLE 4.2(1) Every Non-Voting Member shall have the right to receive any notice of and to attend and to speak at

all general meetings of the Exchange.(2) In addition to the rights conferred under Article 4.2(1), a Non-Voting Member shall also have the right

to vote upon any resolution which varies or affects his rights or privileges as a Non-Voting Memberunder the Memorandum of Association or these Articles.

B. INSTRUMENT APPOINTING PROXY/REPRESENTATIVE TO BE DEPOSITEDThe instrument appointing a proxy/representative shall be deposited at the registered office of the Exchange notless than twenty four (24) hours before the time for holding the meeting or adjourned meeting at which the personnamed in the instrument proposes to vote.

To ensure receipt of the above by the Exchange, kindly contact: Ahmad Aznan Mohd Nawawi Tel: 03-20717810 or Marhani Hamzah Tel: 03-20717327

Form of Proxy/Certificate of Representation


kuala lumpur stock exchange annual report 2001

Documents