Pos Malaysia Berhad ( M) POS MALAYSIA BERHAD annual report two thousand seven. We value your trust.

Transcription

1 Pos Malaysia Berhad ( M) POS MALAYSIA BERHAD annual report two thousand seven We value your trust

2 Corporate Vision Statement Your Trusted Partner Corporate Mission Statement Execute excellence in everything we do and generate best returns Concept & Design by

3 We value your Trust Corporate Vision and Mission This year, Pos Malaysia would like to take the opportunity to unveil its refined Corporate Vision and Mission to all its stakeholders saw the continuation of Pos Malaysia s transformation journey, with emphasis on strengthening trust between Pos Malaysia and all its stakeholders. The metamorphosis towards a customer-focused organisation translates into the refined Corporate Vision, Your Trusted Partner, building on the core emotions of trust and the affinity of partnership to epitomise the long-standing relations and commitments between Pos Malaysia and its stakeholders. Pos Malaysia is committed to be your trusted partner in the delivery of communication, goods and services. The drive towards institutionalising this commitment is encapsulated in the Corporate Mission Execute excellence in everything we do and generate best returns. The Board of Directors and Management wish to convey to the stakeholders that Pos Malaysia is dedicated to deliver our best. We invite you to be part of this transormation.

4 2 group financial highlights (34) (6.27) RM Million RM Million RM Million revenue profit after tax operating profit earnings per share (basic) ebitda net tangible assets per share RM Million Sen RM For 2007, PAT and EPS include provision for impairment losses. Excluding impairment, PAT & EPS stood at RM107.2 mil & sen repectively.

5 3 group financial highlights Revenue Breakdown (RM Million) Operating Expenses Breakdown (RM Million) 65.9% mails 17.2% courier 13.0% retail % others Profitability For the year ended Profit before Tax RM ,723 95, , ,924 15,526 Operating Margin % EBITDA Margin % Return on Assets (ROA) % (2.70) a Return on Equity (ROE) % (3.92) a Balance Sheet Total Assets RM 000 1,128,595 1,202,734 1,333,777 1,325,963 1,247,144 Shareholders Fund RM , , , , ,391 Price/Earnings Ratio b times N/A Current Ratio times Staff information Number of Staff 14,533 14,688 15,063 15,425 15,777 Staff Costs RM , , , , ,362 Revenue per Employee RM NOTES a ROA & ROE negative due to allowance for impairment losses. Excluding impairment, ROA & ROE stood at 8.60% and 12.47% respectively. b P/E Ratio for is based on Pos Malaysia & Services Holdings Berhad performance for the respective years. For 2007, P/E Ratio is not available due to negative earnings registered, which was attributed to allowance for impairment losses. Excluding impairment, 2007 P/E Ratio stood at times.

6 4 business highlights mail courier retail logistics Business Review Revenue RM567.0 mil (up 4.1%) Volume: 1.4 bil items (up 2.6%) Revenue contribution: 65.9% Revenue RM147.6 mil (up 10.7%) Volume: 9.8 mil items (up 14.1%) Revenue contribution: 17.2% Revenue RM111.5 mil (up 10.0%) Volume: mil transactions (up 7.8%) Revenue contribution: 13.0% Revenue RM7.1 mil (down 57.2%) Volume Air Cargo: 5,749 tonnes outbound (up 22.0%) Volume Land Cargo: 318,000 tonnes (up 28.7%) Key Highlights Volume growth: Express mail (up 14.0%) Parcel (up 6.2%) Corporate mail (up 18.0%) Revenue per postman RM66,600 (up 1.8%) Upgraded servers at 6 delivery branches to support PosDaftar Track & Trace deployed to 323 delivery branches to support PosEkspres Updated addresses in database Deployed 825 new workstations to delivery branches Revenue per courier RM148,400 (up 7.2%) Bulk of volume growth is from contract customers PITTIS went live in May 2007 Equipped couriers with more than 800 new handheld scanners Wilayah Persekutuan PosLaju Centre recorded 100% D+1 delivery standard 60% D+1 coverage for Malaysia Awarded Reader s Digest Gold Award for Malaysia s Trusted Brand for 3 consecutive years Volume growth from all segments in particular PosOnline transactions (up 105.0%) Opened 12 new post offices and 68 new mini post offices, of which 18 outlets were opened in rural areas in 2007 Conducted Sales, Operations & Service training for 1,160 front liners Established partnership with CIMB to promote credit card and personal loan products Introduced online shopping (eshop) 32.1% retail outlets are operated by third parties Load factor: Air outbound recorded 76.9% whilst land recorded 81.3% Service standard for line haul recorded consistent performance at 99.4%, whilst air recorded 38.5% Serve internal and external customer via fleet of 32 line haul vehicles to 34 destinations PSHE (AsiaXpress) registered profit in the 3rd year of operations Extended JPJ services to another 92 outlets 11 staff participated in PETER programme Moving Forward Embarking on ISO 9001: 2000 Grow direct mail segment Increase D+1 coverage to 70% by opening new PosLaju centres ISO certification at all PosLaju branches Pursue shared banking service arrangements to enhance financial services to rural areas Deployment of self service kiosks Market air cargo space and distribution services to niche industries Focus on opportunities in SDC and SCORE

7 5 share performance RM5.00 as at 3 Jan 07 RM2.44 as at 31 Dec 07 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2007 POS Volume POS Share Price Suspension of PSH share to facilitate capital repayment and transfer of listing - Capital Repayment exercise completed - Transfer of Listing from PSH to PMB 2007 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total monthly 294, , , , , , ,737 99, , , , ,235 Volume Monthly High (RM) Monthly Low (RM) Month end closing price (RM) PSH PMB

8 We value the trust you have bestowed upon us. Your trust has allowed us to continue nearly 200 years of legacy, and shaped us into what we are today. We will do our utmost to delight you for years to come.

9 7 accolades and awards PosLaju has been awarded the Reader s Digest Trusted Brand Gold Medal award for two consecutive years; 2006 and 2007 under courier/air freight category. History now repeats itself when the Malaysian consumers again voted PosLaju as a Trusted Brand in This recognition proves that PosLaju continues to be valued by Malaysians. In addition to the above, PosLaju was also conferred the Universal Postal Union Bronze level award for the EMS performance in 2005 and nominated for 2007 EMS Customer Care Award. To some, this would be reason to celebrate, but to the hardworking people at PosLaju, strengthening the trust bestowed by Malaysians year after year is what matters.

10 8 continuing our legacy of trust Over the years, as the nation grows and matures, Pos Malaysia has also been evolving and expanding beyond traditional postal services, so as to remain relevant and to adapt to the changing global landscape. The years have also reminded us of what we uphold most - the value of Trust. The Business Today Pos Malaysia has been entrusted as the provider of postal services in Malaysia. There are four core business areas namely; mail, courier, retail and logistics services. Leveraging on more than 15,700 staff and 1,000 outlets which include retail and courier service centres, Pos Malaysia handles more than 1.4 billion items per year, provides doorto-door postal delivery to more than 6.3 million addresses, serving more than 27.3 million Malaysians. Through its outlets, Pos Malaysia serves more than 5 million customers per month. The History Pos Malaysia traces its roots back to the early 1800s with the establishment of postal services in the Straits Settlements (Penang, Malacca and Singapore). By early 20th century, the postal services had reached every corner of Malaya. As postal services in other countries gradually evolved, so did the postal services in Malaysia. The postal services began to venture into parcel delivery, registered mail, insurance service, transaction of money (postal order and money order) and investment of funds (Post Office Saving Bank). Upon independence in 1957, Pos Malaysia, then known as Jabatan Perkhidmatan Pos, began its active participation in numerous international associations to stay abreast in the nation s postal development. It was subsequently admitted as a member of the Universal Postal Union (UPU) on 17 January The vast experience gained from years of operation forms the strong backbone to support the massive restructuring when Jabatan Perkhidmatan Pos became a corporatised entity in 1992 as Pos Malaysia Berhad. Through another corporate exercise in 2001, Pos Malaysia became part of a listed entity, Pos Malaysia & Services Holdings Berhad. In 2007, the listing status of Pos Malaysia & Services Holdings Berhad was transferred to Pos Malaysia Berhad through a restructuring exercise. The Future Capitalising on existing strengths and opportunities, the key strategy employed by Pos Malaysia is to defend and strengthen the four core business areas by providing innovative solutions, growing non-traditional mail, entering into smart partnerships and exploring potentials in communication technology. The Commitments Pos Malaysia makes every effort to provide the best in quality and to continuously improve service levels for its customers. Pos Malaysia is also committed towards adding value and generating best returns for its investors and shareholders. Pos Malaysia believes in human capital development for its workforce. This is a crucial ingredient to support Pos Malaysia s mission to execute excellence in everything it does and to generate best returns. Pos Malaysia pledges its commitment to promote sustainable development of Universal Service Obligation (USO) for the benefit of all Malaysians. Pos Malaysia will continue to do its best to strengthen the bond that is shared between Pos Malaysia and its stakeholders. Pos Malaysia values your Trust.

11 9 contents 16 th annual general meeting 19 June 2008, a.m Grand Ballroom, First Floor, Sime Darby Convention Centre, 1A, Jalan Bukit Kiara 1, Kuala Lumpur Corporate Vision and Mission 1 Group Financial Highlights 2 Business Highlights 4 Share Performance 5 Accolades and Awards 7 Continuing our Legacy of Trust 8 Our Business & Accomplishments Chairman s Statement 12 Mail Business 17 Courier Business 20 Retail Business 23 Logistics 27 Transformation Initiatives 29 Harness & Invest in Human Capital 31 Enhancing Core ICT Capabilities 34 Group Products & Services 36 Corporate Events 38 Financial Calendar 45 Our Profile Corporate Information 48 Group Structure 50 Board of Directors Profile 51 Senior Management 60 Director s Report & Financial Statements Top 10 Properties Owned 158 Analysis of Shareholdings 162 Notice of 16th Annual 165 General Meeting Proxy Form 167 Our Commitments Corporate Responsibility 64 Corporate Governance Statement 68 Statement of Internal Control 79 Directors Responsibility Statement 81 Additional Compliance Information 82 Audit Committee Report 83 Unique Marine Life The South China Sea contains life forms which are both fascinating and mysterious. Among them are the ancient fish-like creatures of the Ordovician period some 480 million years ago.

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13 We view our partnership with you as an enduring commitment. For many years, we have delivered superior shareholder value. We endeavour to outperform your expectations. Trust us to deliver. our business & accomplishments

14 12 chairman s statement In retrospect, the year 2007 came with its own sets of challenges and rewards. As Chairman, it is my pleasure and privilege to present you with the inaugural Annual Report and Audited Financial Statements for Pos Malaysia Berhad (Pos Malaysia) for the financial year ended 31 December Tan Sri Adam Kadir Chairman

15 13 chairman s statement Restructuring Exercise During the 3rd Quarter 2007, Pos Malaysia & Services Holdings Berhad (PSH) was restructured to allow the shareholders to have direct exposure to the main operating entity, and provide greater operational efficiency. This move entailed the transfer of the listing status of PSH to Pos Malaysia Berhad on the Main Board of Bursa Malaysia Securities Berhad. With the listing of Pos Malaysia on 28 August 2007, PSH ceased to be a listed company and thereafter became a wholly-owned subsidiary of Pos Malaysia. The listing of Pos Malaysia enables the company to improve its fiscal standing in relation to clearer accountability and transparency. This would allow for a more focused business repositioning, thus generating better returns for its stakeholders and partners. The restructuring also saw the consolidation of both the PSH and Pos Malaysia Berhad Boards into a single Pos Malaysia Berhad Board of Directors. Having one Board simplifies the strategic decision-making and accelerates implementation of transformation initiatives. RM859.3m group revenue in 2007 RM805.1m capital repayment excercise In tandem with the restructuring, PSH undertook a capital repayment exercise, whereby, cash amounting to RM805.1 million, or RM1.50 per share was distributed to shareholders. This move was designed to achieve a more efficient capital management, in line with the Purple Book authored by the Putrajaya Committee on GLC High Performance. Financial Performance In 2007, Pos Malaysia revenue grew 4.8% to RM859.3 million. This was achieved on the back of increased revenue generated from the mail business (by 4.1%), courier business (by 10.7%), and retail business (by 10.0%). Earnings before interest, tax, depreciation and amortization (EBITDA) stood at RM145.0 million. In contrast, Pos Malaysia s profit before tax (PBT) declined to RM15.5 million and the company recorded a loss after tax of RM33.7 million. This was mainly due to the allowance for the diminution of the value of our investments in Transmile and other investments, amounting to RM140.9 million.

16 14 chairman s statement Business Performance The overall business and transaction volumes saw an increase across the board. The increase was the result of conscious efforts to pursue business growth from existing and new customers, and a more focused management of the existing clientele. Mail business contributed RM567.0 million or 65.9% to the group revenue. Despite stagnating global volume trend, domestic mail volume continued to show increasing growth trend. Overall mail volume grew by 2.6% to 1.4 billion items handled. However, mail business is confronted with challenges in the form of competition from other service providers, threat of substitutions and changing customer behavioural patterns. Courier business, which contributed RM147.6 million or 17.2% to the group revenue, saw its volume increasing by 14.2% to 9.8 million items handled. The bulk of this increase was attributed to the growth from the contract customer segment, which grew by 16.8%. Retail business posted revenue of RM111.5 million and accounted for 13.0% of group revenue. Its business transaction volume surpassed the 100 million mark in The total volume, which stood at million transactions, was 7.8% above the performance in Online transactions via PosOnline recorded more than 400,000 transactions, a strong growth of 105.0% in Logistics business recorded revenue of RM7.1 million. Cargo and logistics volume, for both land and air, also rose in Land cargo volume reached 318,000 tonnes from 247,000 tonnes in Air cargo outbound volume increased to 5,749 tonnes as a result of increased mail and parcel volumes. Dividends and Share Performance Pos Malaysia registered a commendable operating profit for the year 2007 at RM101.0 million with net cash generated from operating activities of RM118.3 million. As such, Pos Malaysia declared a dividend of 10 sen per share, of which 5 sen was the interim dividend and another 5 sen as special dividend, paid out on 24 March The Board of Directors has further recommended a final dividend of 5 sen per share for financial year ended 31 December 2007, subject to shareholders approval at the 16th Annual General Meeting of Pos Malaysia. The payment translates into net dividend payout of 55.6% of profit after tax, exceeding our dividend payout policy to distribute at least 35% of profit after tax. Upon listing of Pos Malaysia Berhad, its share price closed at RM2.95 and ended at RM2.44 on 31 December 2007.

17 15 chairman s statement Group-wide Integrated Financial Management Systems (GIFTS) GIFTS, the enhanced financial and management information system built on SAP platform, aims to streamline processes and enhance operational efficiency. It was initiated in August 2007 and the first phase went live on 1 January Transformation Initiatives 2007 saw Pos Malaysia striving further to be a more customer focused organisation. The projects that Pos Malaysia embarks on will equip the company with capabilities that will improve effectiveness and efficiency, as well as enhance total customer experience. Here are some key projects initiated or completed by Pos Malaysia in the past year. POS Integrated Track and Trace Information System (PITTIS) The flagship ICT project for PosLaju, PITTIS, went live in May An improvement over the earlier track & trace system of e-poslaju, PITTIS allows data to be captured for subsequent utilisation for track & trace, customer enquiry, billing, invoice generation and performance analysis. Concurrently, more than 800 mobile handheld scanners were deployed to PosLaju personnel for their daily use. Central Region Transformation Project (CRTP) The Reconfiguration of Mail Operations and System Study (REMOSS), which was completed in 2006, recommended for the use of advanced technologies and machines to enhance efficiency of mail and parcel operations. The first component to be implemented under REMOSS will be the CRTP. The signing of the Sales and Purchase Agreement for the acquisition of a 22-acre land in Shah Alam took place in February Pos Malaysia took possession of the land in September This marked the beginning of CRTP s implementation. In November 2007, works on detailed design of the mail processing centre and operations flow commenced. The facility, which is expected to begin operations in 2009, will further reduce processing time and improve delivery standard to 94% by This would also allow Pos Malaysia to achieve automation level of up to 70% from the current 20%. Human Capital Development Pos Malaysia has introduced a new Human Resource Development Programme (HRDP) to foster excellence and integrity within the organisation. The HRDP components include succession planning, medical coverage and benefits, career development plans and HRIS upgrade.

18 16 chairman s statement Corporate Responsibility In the pursuit of becoming your trusted partner, Pos Malaysia acknowledges the responsibilities of a good corporate citizen to ensure that our growth is sustainable in parallel with the nation s development. This year s Annual Report will include for the first time, a Corporate Responsibility Statement, which outlines the effects of the operations, transformation efforts as well as Corporate Social Responsibility Programmes (as prescribed by the Silver Book of the Government-Linked Company Transformation Manual) on the economic, social and environmental fronts. Customer Satisfaction Pos Malaysia has recorded an overall increase of 3% on the Customer Satisfaction Index (CSI) for 2007 at 3.9 out of 5.0, which translates to 77% satisfied customers. The study conducted by Synovate Sdn Bhd for the past three years, measures customer satisfaction on Pos Malaysia s offerings and service levels. The survey results demonstrated improved satisfaction level for mail and logistics business at CSI of 3.9 and 3.7 respectively, whilst CSI results for both courier and retail business are sustained at 3.9. Acknowledgements In closing, on behalf of the group, I would like to pay tribute to all our stakeholders. To our regulators, we thank you for your continuing support. To our employees, thank you for your exemplary performances and contributions. To our shareholders, partners and customers, thank you for putting your trust in us. I would also like to offer my appreciation and gratitude to Dato Idrose Mohamed, former Managing Director/Group Chief Executive Officer, who left Pos Malaysia Berhad, effective 2 May On behalf of the Board of Directors and employees, I would like to wish him the very best in his future endeavours. Prospects Pos Malaysia foresees the obstacles and challenges faced in 2007 will continue to persist in However, as some of the transformation initiatives come to fruition within the next year, there is a firm belief in our ability and capability to deliver value to our shareholders, regulators, customers and employees. As we continue to strive for excellence in everything we do, we remain committed to a sustainable growth path that would generate the best returns for all. We value your trust. Your trusted partner, Tan Sri Adam Kadir Chairman

19 17 notice of annual general meeting Who else can claim to have personally visited more than 6.3 million homes? Whether you are living in the foothills of Gunung Kinabalu or on a little known island off the West Coast, as long as your address is registered, we will make sure your mail arrives. Our business is about connecting Malaysians and businesses with the rest of the world. Be it a letter to a loved one or catering to your business needs, we deliver. mail

20 18 mail business The mail business segment of the postal services is addressed by Pos Malaysia s strategic business unit, PosMel. Mail business posted strong performance for the year. Although the challenges of technologies are threatening traditional mail business, PosMel successfully grew its volume by 2.6% to 1.4 billion items handled. Revenue increased by 4.1% to RM567.0 million, representing 65.9% of Pos Malaysia revenue in Currently, our mail business network encompasses 32 Mail Processing Centres (MPC), 396 delivery branches, 4,980 delivery beats with a total of 4,870 posting boxes. Key Highlights To achieve its Mail2010 (Mail Modernisation Plan) objectives, PosMel emphasized on the following key strategies in the year 2007: Sustainable revenue growth via strengthened product offerings Improve operational efficiency 1.4 billion mail items handled against target of 1.3 billion Sustainable revenue growth via strengthened product offerings Despite numerous substitutes in the market, business mail continues to record a steady increase in volume of 4.8%. Express mail recorded double digit growth of 14.0% to 4.4 million items handled despite competition from courier companies. Similarly, for parcel service, the introduction of consignment note for parcel and availability of Track and Trace system are the contributing factors for the volume growth of 6.2%. Pos Malaysia Corporate Mailroom services also recorded an increase of 18.0% for the year, in line with its aspirations to be a leading player for corporate mailroom solutions. In 2007, PosMel introduced Government Mail Delivery Service (GMDS), specifically to manage mails for government agencies within Putrajaya. The service ensures that mail items are delivered within the agreed service standard by setting up Pusat Mel Kerajaan Putrajaya at R23, Kompleks Perbadanan Putrajaya. 20gram Letter Tariff by Country (RM) Finland 3.24 Denmark 2.80 Sweden 2.74 Germany 2.55 France 2.50 Belgium 2.41 Japan 2.40 UK 2.30 Netherland 2.04 Australia 1.38 USA 1.37 Spain 1.34 Korea (Rep) 1.15 New Zealand 1.10 Philippines 0.65 Hong Kong 0.63 Indonesia 0.57 Singapore 0.57 Malaysia 0.30 Thailand 0.29 The last tariff hike for Malaysia was in 1992

21 19 mail business Improve operational efficiency PosMel has embarked on several initiatives to achieve greater operational efficiency, in line with its mail modernisation plan. Some of the efforts include updating its Address Management System database. This effort reduces error rates in last mile delivery. In the same year, PosMel deployed 825 delivery workstations to some of its delivery branches to further improve sorting time. To support its business strategy to focus on high growth areas, PosMel upgraded servers at 6 main delivery branches to enhance the process and control of PosDaftar items. As at 31 December 2007, PosEkspres Track On System Module Delivery Office (PETS MDO) was deployed to 323 delivery branches to monitor PosEkspres. The above efforts allowed PosMel to measure performance level of PosEkspres and PosDaftar products. In 2007, the overall mail delivery standard improved to 90%, whilst mail productivity improved to 158,600 items handled per postman. Revenue per postman has also increased from RM65,400 to RM66,600. Moving forward into 2008 In the continuous pursuit to consistently provide excellent and quality products and services, PosMel is embarking on ISO 9001: 2000 Quality Management System certification in year PosMel has adopted Lean Management methodology into its work culture, which is in the midst of being rolled out nationwide. Direct mail marketing gives a new definition to mail, which is no longer restricted to the traditional rectangular- shaped envelopes and letters. This allows businesses to customise their promotional materials. This segment of the industry is expected to enhance PosMel s revenue and volume growth.

22 Malaysia s market leader in the domestic courier industry gives you this promise: Rain or shine, your shipment will reach the destination on time or your money back. We push the limits of our abilities to meet your expectations. Whatever your needs are, we deliver right to your doorstep. That is what you have come to expect from us. Your Preferred On Time Service. PosLaju - Winner of Reader s Digest Trusted Brand for three consecutive years; courier

23 21 courier business PosLaju Revenue RM Million RM143.6m PosLaju revenue in 2007 against target of RM135.8m Pos Malaysia operates its courier business through its strategic business unit PosLaju and subsidiary PSH Express Sdn Bhd, under the brand name AsiaXpress. Overall courier business posted a revenue of RM147.6 million, representing 17.2% of group revenue. PosLaju PosLaju outperformed all its internal financial targets in PosLaju remains as the second biggest contributor to Pos Malaysia s revenue, contributing RM143.6 million or 16.7% in group revenue. This represents an increase of 9.7% against Similarly, volume of items handled increased by 14.1% to 9.8 million. PosLaju also offers international courier services via Expedited Mail Service (EMS) to numerous international destinations including International Time Certain Service to Tokyo and Singapore. Key Highlights Key strategies employed by PosLaju for the year include: Build capability and enhance operational efficiency Grow and strengthen market share Enhance customer service Build capability and enhance operational efficiency 2007 was indeed an eventful year for PosLaju as the courier flagship project PITTIS was completed in May. Under the PITTIS project, PosLaju re-engineered many of its processes, equipped the couriers with more than 800 handheld scanners, integrated the existing track and trace system with other systems and invested in new computing hardware and software. All these efforts were undertaken to further enhance PosLaju services to customers. Some benefits of PITTIS have already been realised, such as reduction in bottlenecks, simplification of process flows and decrease in processing time. Operationally, PosLaju delivery service standards were maintained at a high level, with key PosLaju centres such as Wilayah Persekutuan registering a rate of 100% D+1 (Next Day Service) delivery service standard. Grow and strengthen market share In terms of customer segmentation, contract customers continue to be the major contributor to the total revenue of PosLaju. The on-demand or walk-in customers, on the other hand, was the major contributor to the operating margin of PosLaju. In 2007, PosLaju acquired 489 new accounts. PosLaju s strength lies in, among others, its unrivalled coverage of the country. More than 60% of the populated areas in Malaysia is served by PosLaju D+1 (Next Day Service). At present, the service network comprises 897 outlets, made up of 45 PosLaju centres, 685 post offices, 159 Pos Mini, and 8 agents countrywide.

24 22 courier business Enhance customer service To better serve its customers, PosLaju launched the Putrajaya Express. The service offers delivery of documents from Klang Valley to Putrajaya and Cyberjaya within the same day, with full refund guaranteed in the event of service failure. With greater emphasis on operational efficiency and brand building, PosLaju was awarded the Reader s Digest Gold Award for Malaysia s Trusted Brand in the domestic express market in 2006 and This feat was repeated in AsiaXpress PSH Express, under the brand name of AsiaXpress, demonstrated steady growth in PSH Express volume grew by 76.9% to 52,000 items. It contributed RM4.0 million in revenue in 2007, an increase of 65.7% from International shipment contributed to 97.0% of revenue. Key highlights In 2007, after 3 years of operations, PSH Express marks a historical milestone when it recorded a profit before tax of RM45,353. This achievement is in line with the company s 5-year corporate strategy. AsiaXpress Worldwide Service Centres are now available at Kuala Lumpur General Post Office, as well as post offices in Subang Jaya, Kelana Jaya, Shah Alam and Bangsar Baru. The service centres provide walk-in customers with more choices to cater to their shipment needs and a chance to experience AsiaXpress service offerings. Moving forward into 2008 PosLaju intends to increase its Next Day Service coverage from the present 60% to 70%. The strategy to achieve this is via the opening of new PosLaju centres in 2008, namely in Banting, Sri Aman, Limbang, Bentong, Iskandar Malaysia and Kuala Selangor. With this, these towns will also enjoy D+1 (Next Day Service). The year 2008 will be a challenging year of intense competition for courier and express markets. The global economic slowdown, mainly due to the slowdown of the US economy, coupled with the volatile and high fuel costs, are expected to result in slower export growth. Slow to moderate growth is expected from the express market, with cheaper alternatives and trusted delivery experience being the deciding factor for repeat business. AsiaXpress clientele comprises ministries and government agencies, government-linked companies (GLC), law firms, oil and gas companies, engineering companies and colleges. In an effort to increase its touch points with customers, AsiaXpress opened 4 more counters at post offices in the Klang Valley in 2007.

25 retail We serve more than 5 million customers monthly through our wide network of retail outlets. Our reach and accessibility are unsurpassed. Even when we are not physically nearby, we can serve you, anytime, anywhere through our Internet transaction portal PosOnline brings enjoyable shopping experience and bill payment convenience at your fingertips. Your Preferred One Stop Service Centre.

26 24 retail business Retail business is addressed by Pos Malaysia s strategic business unit, PosNiaga. Similar to courier business, retail business exceeded its internal financial targets. Its revenue grew by 10.0% to RM111.5 million in 2007, representing 13.0% of the Group s revenue, on the back of higher volume handled of million transactions. Agency and retail services offered by Pos Malaysia via its retail network are in line with its Universal Service Provider status. Aside from the conventional over the counter services, PosNiaga also provides a virtual platform for greater reach and accessibility to the masses. Its online platform, PosOnline, hit a milestone of more than 400,000 transactions in Key Highlights PosNiaga entered the second year of implementation of its 5-Year Transformation Plan ( ). Under the Transformation Plan, PosNiaga strives to achieve sustainable net income growth by implementing 3 key strategies: Enhance revenue contribution from its existing business Generate new revenue sources Undertake cost optimization measures Retail Business Network Reach (as at 31 December 2007): Post Offices 677 Pos Mini 320 Postal Agents 263 Stamp Vendors 5,047 Mobile Post Offices 2 Post Offices that can handle renewal of road tax/ driving license 587 Post Offices at shopping complex 38 Post Offices with extended services until 10pm 23 Post Offices which open on Sundays 19 (excluding Kelantan, Terengganu and Kedah) Enhance revenue contribution from its existing business Through more than 900 retail outlets, PosNiaga offers a wide range of postal products and services, bill payment services, local and international remittance, renewal of road tax and driving licence as well as purchase of unit trust and insurance products. In line with its aspiration to become the Preferred One Stop Service Centre, PosNiaga is the collection agent for more than 140 agencies that subscribe for both its counter and online services. Through PosOnline, customers who have accounts with CIMB Bank, Hong Leong Bank, Bank Rakyat, PosPay and RHB Bank can have the convenience of paying their bills and making online purchases by debiting their accounts. RM111.5m PosNiaga revenue in 2007 against target of RM107.6m

27 25 retail business Through the online collection services, customers can now pay more than 90 types of bills through PosOnline portal at During the year, 12 new post office outlets and 68 new Pos Mini outlets were opened. Out of 68 new Pos Mini outlets, 18 outlets were opened in rural areas under the 9th Malaysia Plan as part of the commitment to bring postal services to the rural community. To date, a total of 320 or 32.1% of the combined total of 997 retail outlets are operated by third parties. These operators sell postal products and offer selected bill payments to complement their existing business. Presently, PosNiaga also offers extended business hours at 28 selected outlets to cater for those who prefer to perform their transactions after normal office hours. Generate new revenue sources PosNiaga entered into a business arrangement with CIMB Bank Berhad to promote its Credit Card and Xpress Cash personal loan products. Customers can now submit their application forms for CIMB Credit Card and Xpress Cash at all Pos Malaysia outlets. PosNiaga introduced its online shopping through its eshop portal. Customers can now purchase more than 600 different products from 8 merchants, including fragrances, computer peripherals, books, office automation products, health supplement products, stamps and philatelic products. During the year, Pos Malaysia has further extended its JPJ services to another 92 outlets bringing the total number to 587 outlets. Undertake cost optimization measures There were 2 key initiatives undertaken to manage costs. In October 2007, the Board approved the outsourcing of the One-Man Post Offices to ex-employees under a program called Promoting Employees to Entrepreneur Rationalization (PETER). For the first phase, 11 staff accepted the offer by Pos Malaysia to participate in the program. Besides creating entrepreneurship amongst ex-employees, PosNiaga will benefit from reduced operational expenses. PosNiaga also continuously monitored 5 key cost elements for post offices, namely overtime, medical, telephone, electricity and water. During the year, 91 outlets reduced their costs below the average cost benchmark set by PosNiaga. Other Key Highlights For customer convenience, PosNiaga also accepts credit cards for insurance payment at 92 outlets in Kuala Lumpur and Selangor. The rollout to other outlets will be implemented in stages to other states in the near future. PosPantas PosPantas would expedite the time taken to process transactions over the counter and enhance counter staff efficiency and product knowledge through new improved features embedded within this counter system. PosPantas will be rolled out to all post offices by October 2008 and other outlets thereafter. New Look and Feel for retail outlets PosNiaga embarked on the new Look and Feel project with the objective to improve the physical appearance of our retail outlets. This move will provide a conducive environment for customers to perform their transactions at the counter. In 2007, 3 retail outlets adopted the new Look and Feel concept, namely Medan Tuanku, Kampung Tunku and Sungai Buloh. As at April 2008, additional 25 outlets have been remodelled. By the end of 2008, there will be up to 100 outlets adopting the same new look and fresher ambience.

28 26 retail business Under the Shared Banking Services products and services offered are as follows: Opening of accounts Cash deposits Cash withdrawal Cash advances Funds transfer and remittance Payment of retail borrowing Marketing of retail financial products The spirit of this arrangement is to enable communities in the rural areas to have access to banking services. Training on service improvement The year was filled with activities focusing on staff training in 3 key areas namely Sales, Operations and Service ( SOS ) for counter staff. A total of 1,160 counter staff throughout the country attended this training. The same training will be extended to the remaining 1,800 counter staff in Moving forward into 2008 In November 2007, PosNiaga received the confirmation from Bank Negara Malaysia to engage in Shared Banking Services with any 2 domestic commercial or Islamic banks in Malaysia. The retail outlets complement the banks in areas where they are already present, and to also serve areas where it is not feasible for the banks to open a new branch. Apart from that, PosNiaga will also embark on pilot installation of Self Service Terminals to be placed at selected areas to enable customers to perform simpler transactions, such as purchasing stamp labels and performing bill payments. This will enable PosNiaga to focus on other over the counter financial and specialised services through our retail outlets.

29 logistics With our logistics services, customers are well connected physically anywhere in Malaysia by means of our fleet of vehicles and air transportation network. Talk to us to customise your logistics solutions. We take pride in delivering your needs.

30 28 logistics business Logistics business segment of the postal services is addressed by Pos Malaysia s strategic business unit, PosLogistik. PosLogistik posted an increase in air cargo outbound volume of 22.0% to 5,749 tonnes against The land volume handled was 318,000 tonnes, an increase of 28.7% from It has contributed RM3.9 million from external customers for Including revenue contribution from internal services, PosLogistik posted revenue of RM7.1 million, a decrease of 57.2% from previous year. Key Highlights The year 2007 has been a challenging year for PosLogistik, due to the escalating air transportation fuel surcharge and various logistical operational issues for delivery to East Malaysia. PosLogistik, a strategic business unit established in 2005, was incepted to capitalize on the opportunity presented by market liberalization and growing regional trade. What started as a support unit to serve internal customers such as PosLaju and PosMel, was later extended to external parties. PosLogistik provided solutions for land and air transportation services within Peninsular Malaysia, and from Peninsular Malaysia to selected destinations in East Malaysia, and vice versa, through a third party service provider. Service standard for line haul recorded consistent performance of 99.4%, whilst air registered 38.5% on time performance. For load factor, air outbound posted 76.9% utilisation whilst land recorded 81.3%. As for land line haul, PosLogistik manages a fleet of 32 linehaul vehicles to serve its internal and external customers in 34 destinations in Malaysia. PosLogistik operates a hub at Pusat Mel & Kurier (PMK), Kuala Lumpur International Airport (KLIA). Pos Malaysia is assessing various options to further grow this business segment. Moving forward into 2008 PosLogistik is optimistic in securing more customers in 2008 in line with the expectation of growth in the logistics outsourcing business. The strategy is to continue to market air cargo space and distribution services for niche industries such as automotive, cosmetics and electronics. The marketing initiatives will also take into consideration the opportunities in the newly launched development corridors in Sabah and Sarawak (SDC and SCORE).

31 The journey ahead is demanding. As we chart our course to deliver value, we are constantly evolving to serve our stakeholders. Our transformation journey is about changing the mindset, upgrading infrastructure, enhancing capabilities and improving operational efficiency. All these efforts are aimed at exceeding your expectations and enriching your total experience. Transformation you can see and feel. transformation initiatives

32 30 transformation initiatives Transformation Management Office (TMO) is the outfit to drive and provide governance to Pos Malaysia s overall transformation activities, encompassing process improvement and change management. It will ensure that these activities are aligned with the company s vision, mission and corporate strategy. TMO played an active role in the refurbishment of selected Pos Malaysia retail outlets with a new Look and Feel. Three outlets were successfully transformed within one month. These outlets are located in Sungai Buloh, Medan Tuanku and Kampung Tunku. TMO also assists the implementation of the Coloured Books of the GLC Transformation initiatives as recommended by the Putrajaya Committee for GLC High Performance (PCG). Yellow Book (A Framework for Continuous Improvement) Guided by the Yellow Book, the Employee Suggestion Scheme (ESS) which involved staff in the central region was re-launched in October The ESS allows employees to communicate their creative ideas on improving and enhancing their existing operation and work processes. By 1st Quarter 2008, 313 suggestions were received, with 10 being implemented. Due to the encouraging response, a nationwide ESS campaign had commenced in April A Lean Thinking programme was also kicked-off in August More than 250 employees participated, in 11 training sessions. The purpose of the training was not only to improve the work culture of the employees, but also to prepare those who will undertake specific improvement initiatives under the POS-Quality Improvement Team (POS-QIT) programme. Green Book (Enhancing Board Effectiveness) The improvement plan derived under the Green Book saw major improvements with regards to reducing the number of Board meetings, streamlining the Board committees and agenda, monitoring and reviewing group performance and enhancing quality of Board papers. Blue Book (Intensify performance management practices) The year 2007 saw the refinements to the Balanced Scorecards (BSC) of Senior Management and State Managers with business performance review conducted during the mid year. The BSC provides the basis for linking performance to reward schemes for senior management. Red Book (Procurement Guidelines and Best Practices) Several improvement initiatives under the Red Book are already underway, which are expected to enhance procurement policies and procedures. The development of a vendor database management system has been completed and the product catalogue is currently being developed.

33 We recognise that realising our business growth goes hand in hand with developing our people. Hence we will continue to invest in attracting, nurturing and retaining the talents. We realise our aspirations through people. harness & invest in human capital

34 32 harness & invest in human capital Realising that high performing employees are key ingredients for success in any organisation, talent attraction, development and retention were given primary focus in The highlights for 2007 include emphasis on learning and development, commencement of succession planning initiative, strengthening the performance based work culture and infusion of new talents at management and executive levels. Learning & Development In 2007, learning and growth continues to be a priority with focus on enhancing leadership qualities, customer service and operational excellence. A total of 1,000 postmen underwent a series of technical courses conducted at Institut Latihan Pos, our learning centre. These courses encompass the fundamentals in postal operations such as quality management, processing and delivery. Each postman spent at least 5 days on formal training. For service quality, Sales, Operations and Service ( SOS ) programme was conducted for front liners. A total of 1,160 front liners throughout the country attended this training with the remaining 1,800 to attend in Managers and executives also attended appropriate training programmes to further hone their leadership and technical skills. Soft-skill trainings were attended by more than 1,500 employees. The syllabus includes amongst others, change management, process improvement topics, and Lean Thinking programme. Other management training programmes held externally were attended by 130 executives and managers.

35 33 harness & invest in human capital Succession planning One of the initiatives being undertaken under the Orange Book (Strengthening Leadership Development) is the Organisational Leadership Capabilities Review (OLCR). As part of its succession planning, Pos Malaysia has identified 155 future leaders with suitable attributes to be fast-tracked in their career path. These leaders are expected to spearhead breakthrough performance and results. To complement this effort, employee development programme continued in 2007 to ensure a pool of talent exists at various levels in the organization. Employee Engagement Employee Engagement Survey (EES) is a platform which enabled employees to express their views on various employment issues. In 2007, through EES, Pos Malaysia was able to study workplace dynamics, establish opinions and values of employees throughout the organisation. Remedial action plans arising from the findings of EES, such as improvements in both working environment and reward / remuneration programme, will be implemented in Overall, a high score of 4.2 over a total score of 5.0 was established as a baseline for future comparisons. Communication The CEO Quarterly Briefing, a platform to update employees on the quarterly goals and achievements was initiated in The briefing was not only attended by executives including state managers, but representatives from unions and non-executives were also present. Union and employee relations Pos Malaysia is also committed to maintain a harmonious relationship between unions and Management. In 2007, several formal and informal meetings were held between senior management, the in-house unions and key HR personnel to resolve issues and concerns. Being sensitive to employees' wellbeing, Pos Malaysia once again proved to be a caring organisation when it carried out its obligations by providing financial assistance to its employees who suffered losses due to the flood situation which hit the country in December Strengthening the performance based work culture For non-executive group, technical competencies for clerks and postmen were established in Key results areas were defined for postmen to inculcate a performance driven culture. The technical competencies assessment enables the development of competencybased career development plan. In addition, structured learning development programmes were also identified. The implementation of both programmes is slated to commence in Also in the pipeline is the construction of Competency-Based Job Description (CBJD) for all levels of employees. A performance management system using the Balanced Scorecard will be another major project in 2008 which will allow key performance indicators to be cascaded from Senior Management to all executives. In the past, the practice of bonus pay-out was based on a uniform quantum. Beginning 2006, performance based bonus payment was introduced to executives and nonexecutives. Further to that, in 2007, the merit bonus was given out to high performing employees, apart from the performance based bonus. This signifies Pos Malaysia s commitment towards embracing high performance work culture.

36 enhancing core ICT capabilities As we set forth in our voyage, we are putting in place core ICT capabilities that will accelerate business growth, achieve greater operational efficiency and enhance service delivery. Supported by a strong risk management framework, Pos Malaysia will continue to make sound business decisions with a view to protect your interests. Driving collaboration forward for business flexibility.

37 35 enhancing core ICT capabilities Enhancing Core ICT Capabilities 2007 in review The year 2007 saw the completion of POS Integrated Track and Trace Information System (PITTIS), a flagship project which went live in May This system equips Pos Malaysia to better cater for current and future requirements of the business, as scalability and high availability are built into the design. ICT was actively involved in another flagship project; POS Automated Network Transaction Acceptance System (PosPantas), which kicked off in June The project will enable increased efficiency for over the counter transactions at post offices, hence increasing the turnaround time and reducing waiting time for the customers to transact. Apart from the flagship application initiatives, ICT is also focusing its effort on the service delivery channel improvements. For a good number of years, Pos Malaysia has been constrained by the limited network bandwidth at its various post offices. In 2007, the Wide Area Network Upgrade Project was initiated in order to provide the post offices with the Managed IP VPN and Broadband network. This will improve system performance and availability which is critical for Pos Malaysia in meeting the service level standards set by its customers, agencies and statutory bodies. Moving forward to 2008 ICT will further improve Pos Malaysia s core capabilities in Major projects planned are the Data Centre Upgrades, Disaster Recovery Centre, Desktop Management and System Security Enhancement. Continuous improvement to the core capabilities to enable Pos Malaysia to achieve its business targets will be the main strategic thrust and theme for ICT. Enhancing Risk Management Capabilities Pos Malaysia adopted its enterprise-wide risk management framework from AS/NZ 4360, which details the approach and process of systematically identifying, assessing and managing risks. The framework provides relevant guiding principles on the techniques of applying various risk management stage process such as risk identification, analysis, evaluation, treatment and monitoring of risks. This is applicable across different risk categories with the focus of reducing the likelihood and impact of all identified risks beyond Pos Malaysia s risk appetite. Control measures will be put in place and monitored using management tools with a view to ensure management action plans to minimize risks are adhered to. In addition, control measures are also subject to ongoing regular reviews to ascertain the efficacy levels and revised accordingly to enhance effectiveness. Pos Malaysia will continually improve the methodology of identifying, assessing and managing of risks by observing the evolution of global leading risk management practices and in consultation with subject matter experts from time to time.

38 36 group products & services mail courier logistics General Mailing Solutions Mail > Standard > Non-Standard > International > Parcel > Aerogramme > Post Card Post Office Service P. O. Box Poste Restante Window Delivery Locked Bag Special Mailing Solutions PosEkspres PosDaftar Insured Mail Jemaah Haji Baggage Hybrid Mail Solution Data Processing > Database Management High Speed Printing Mail Processing > Address Labeling Pick Up, Delivery & Mailing Services Business Mailing Solutions PosDokumen Periodical Bulk Mailing Franking Envo-Ad Corporate Mail Management Business Reply Service > Domestic > International Direct Mail marketing > Ad mail International Courier Expedited Mail Service (EMS) Time Certain Service > To Tokyo > To Singapore Economy Xpress Priority Xpress Diplomatic Xpress Inbound Xpress Domestic Courier Next Day Delivery Putrajaya Express Same Day Delivery Time Certain Service Pick-up Service Logistics Solutions Inbound Services Outbound Services Transportation Management Custom Clearance Break Bulk Distribution Freight Forwarding

39 37 group products & services retail philately Pos Mini Postal Payment Purchase Protection Plan Corporate Agent Takaful & Insurance > Kurnia Insurans > Malaysia Assurance Aliance > Allianz General Insurance > Berjaya Sompo Insurance > AmAssurance > The Pacific Insurance > Commerce Assurance > Oriental Capital Assurance > etiqa Insurance > etiqa Takaful > Syarikat Takaful Malaysia > Takaful Ikhlas PosOnline Online Payment > 80 Agencies Online Shopping > E-Shop Philately Online > SODA Account Registration > SODA Account Top Up > SODA Account Update Payment Services Bill Payment > Utilities > Telephone/Mobile/Internet > Assessment > Quit Rent > Others Ticketing & Booking Zakat (Tithe) Payment Others (Lembaga Tabung Haji, Courts, Aeon) Public Service Network > Driving License Renewal > Road Tax Renewal > Business License Renewal > Voter Registration > SOCSO Payment Student Loan Repayment >MARA >JPA > PTPTN Proxy Bank Application Acceptance for: > Credit Card > Personal Loan Purchase Remittance > Money Order - International - Domestic > Postal Order > Western Union Reloads > Maxis, Celcom, DiGi Unit Trust > Permodalan Nasional Berhad > Miniature Sheet Prepaid Cards >TM > Tune Money > Time Kontact Others > Revenue Stamps Stamps > Special issue > Commemorative > Personalised SODA Account > New Account Registration > Account Top Up Philatelic Products > First Day Cover > Miniature Sheet > Presentation Pack > Folder Set > Stamp Album > Maximum Card

40 38 corporate events 23 January 2007 Signing ceremony between Pos Malaysia and Bank Rakyat Pos Malaysia and Bank Kerjasama Rakyat Malaysia (Bank Rakyat) officially launched a strategic alliance to provide a convenient method for customers to pay bills and other transactions online. The signing ceremony was witnessed by YB Datuk Khamsiyah Yeop, the Deputy Minister of Entrepreneur and Co-operative Development. 29 January 2007 Signing Ceremony Between Pos Malaysia and Sankyu Pos Malaysia and Sankyu (M) Sdn Bhd officially launched a strategic partnership for Sankyu s domestic distribution in Malaysia. This strategic partnership promises the Sankyu s customers extra services including pick-up, export and import customs clearance, air freight, and delivery consignee. 31 January 2007 Signing Ceremony between Pos Malaysia and Setiausaha Kerajaan Negeri Selangor Pos Malaysia and Selangor State Government officially launched a strategic partnership to provide a convenience to the public to pay their quit rent bills at post offices in Selangor and Kuala Lumpur, as well as through Pos Malaysia s online service. The signing ceremony was witnessed by YAB Dato Seri Dr Hj Mohamad Khir bin Toyo, the Menteri Besar of Selangor. 13 February 2007 Signing Ceremony between Pos Malaysia and MT Picture Display Pos Malaysia officially signed the agreement to acquire a RM69 million property to locate its new National Mail Processing Centre (MPC). The official signing ceremony between Pos Malaysia Properties Sdn. Bhd. and MT Picture Display (M) Sdn Bhd was held in Shah Alam, Selangor. 1 March 2007 Launch of Corporate Personalised Stamp Pos Malaysia officially launched Malaysia s first ever Corporate Personalised Stamps that allow corporate organisations to depict their products, services and corporate images on the stamps. MEASAT, the premium supplier of satellite communication services to Asia s leading broadcaster and telecom providers, was given the honour to be the first company to issue the Corporate Personalised Stamp. The stamp was officially launched by YB Dato Shaziman Abu Mansor, Deputy Minister of Energy, Water and Communications in Kuala Lumpur.

41 39 corporate events 9 March 2007 Signing Ceremony between Pos Malaysia and CIMB Bank Pos Malaysia and Malaysia s second largest financial provider, CIMB Group signed an agreement for the distribution of selected banking products through post offices nationwide. 19 March 2007 Launch of Visit Malaysia Year 2007 Stamp In commemoration of the Visit Malaysia Year 2007, Pos Malaysia in collaboration with the Ministry of Tourism Malaysia issued a special set of stamps and First Day Cover on Visit Malaysia Year The stamps and First Day Cover which feature the unique cultural and natural assets of the country was officially launched by YB Datuk Donald Lim Siang Chai, Deputy Minister of Ministry of Tourism at the Kuala Lumpur Tower. 3 April 2007 Extraordinary General Meeting (EGM) Pos Malaysia s Extraordinary General Meeting was held at the Crowne Plaza Mutiara Hotel Kuala Lumpur. One of the highlights of the EGM was to approve the proposed repayment of RM1.50 per share to the shareholders. 6 April 2007 Launching of Putrajaya Express PosLaju, one of the strategic business units of Pos Malaysia officially launched its new product, Putrajaya Express. It is an express delivery service that delivers documents from Klang Valley to Putrajaya or Cyberjaya within the same day, which guarantees a full refund of the delivery costs in the event of service failure. This fast and convenient door-to-door delivery service is available for all walk-in and contract customers. The launching ceremony was graced by YB Dato Shaziman Abu Mansor, Deputy Minister of Energy, Water and Communications in Putrajaya. 19 April 2007 Signing Ceremony between Pos Malaysia, Pusat Pungutan Zakat Pahang and Kuantan Municipal Council Pos Malaysia established a strategic partnership with Pusat Pungutan Zakat Pahang and Kuantan Municipal Council to provide convenience to the customers of Pos Malaysia in Pahang to pay their zakat (tithe) and their assessments through Pos Malaysia s 35 mini post offices across the state as well as for the payment of parking compound and sale of parking coupons at post offices and mini post offices in Pahang.

42 40 corporate events April 2007 Minggu Saham Amanah Malaysia by Permodalan Nasional Berhad Pos Malaysia participated in the annual Minggu Saham Amanah Malaysia, organised by Permodalan Nasional Berhad from April 2007 in Kuantan. The exhibition involved the Strategic Business Units of Pos Malaysia and Asia Express (international courier service). 6 June 2007 Launch of Clock Tower Series II Stamp Pos Malaysia issued a set of special stamps and First Day Cover on Clock Towers Series II. The special stamps and First Day Cover featured the images of historical clock towers in Malaysia. The stamp was officially launched by YAB Dato Seri Abdullah Haji Ahmad Badawi, the Prime Minister of Malaysia at the Kuala Lumpur Convention Centre in conjunction with the SMIDEX Exhibition. 6 9 June 2007 Pos Malaysia Participated in SMIDEX Exhibition Pos Malaysia participated in the annual Small and Medium Industry Exhibition (SMIDEX) 2007, organised by Small and Medium Industries Development Corporation (SMIDEC). The company participated as the official postal and logistics service provider for the exhibition. 3 July 2007 Signing Ceremony between Pos Malaysia and Singer Malaysia Pos Malaysia and Singer (M) Sdn Bhd officially launched a strategic partnership to provide a convenient method and venue for Singer customers to pay their installments at post offices all over the country. 26 July 2007 Signing ceremony between Pos Malaysia and Pusat Pungutan Zakat Pulau Pinang Pos Malaysia and Pusat Pungutan Zakat Pulau Pinang signed an agreement to provide customers a convenient method to pay their zakat (tithe) and endowment through Pos Malaysia s 38 post offices across the state and through Pos Malaysia online payment portal,

43 41 corporate events 28 June th Annual General Meeting and Extraordinary General Meeting The 75th Annual General Meeting for Pos Malaysia & Services Holdings Berhad was held at Berjaya Times Square Hotel and Convention Centre on 28th June July 2007 Launch of 200th Anniversary of Royal Malaysian Police Force Stamp Pos Malaysia issued stamps and First Day Cover to commemorate the 200th Anniversary of the Royal Malaysian Police Force (RMPF). The event was launched by the Inspector General of Police (IGP), YDH Tan Sri Musa Bin Dato Haji Hassan July 2007 Participated in Karnival Hari Pengguna in Shah Alam Pos Malaysia participated at the Karnival Hari Pengguna organised by the Federation of Malaysian Consumers Associations (FOMCA) in Shah Alam, Selangor. Pos Malaysia showcased and promoted the philately products such as the stamp collections and First Day Covers. 31 July 2007 Participated in Launching and Exhibition of Northern Corridor Economic Region (NCER) Pos Malaysia participated in the NCER exhibition, in conjunction with its official launch by the Prime Minister of Malaysia, YAB Dato Seri Abdullah Haji Ahmad Badawi at Sekolah Menengah Selinsing, Taiping, Perak. 2 August 2007 Launch of Negeri Sembilan Royal Heritage Stamp Pos Malaysia issued a special collection of stamps called Warisan DiRaja Negeri Sembilan (Royal Heritage Stamps of Negeri Sembilan) in conjunction with the 40th anniversary of the rule of His Royal Highness DYMM Tuanku Ja afar ibni Al-Marhum Tuanku Abdul Rahman, Yang Di-Pertuan Besar of Negeri Sembilan Darul Khusus. His Royal Highness graciously launched the stamps in Seremban.

44 42 corporate events 6 August 2007 Sehari Bersama Pelanggan with the Ministry of Energy Water and Communications in Ipoh Pos Malaysia participated in the Sehari Bersama Pelanggan programme organised by the Ministry of Energy, Water and Communications, in collaboration with the State Government of Perak. The event was held in Ipoh, Perak. 7 August 2007 Opening Ceremony of Pusat PosLaju Temerloh In line with Pos Malaysia s initiatives in providing comfort and convenience to its customers in managing their courier and express delivery requirements, Pos Malaysia launched its 39th PosLaju Centre in Temerloh, Pahang. The new PosLaju Centre was launched by Y.A.B. Dato' Sri Adnan bin Haji Yaakob, Menteri Besar of Pahang. Participated in Bursa Malaysia-The Edge KL Rat Race 2007 Pos Malaysia participated in the Bursa Malaysia-The Edge KL Rat Race August 2007 Sehari Bersama Pelanggan with the Ministry of Energy Water and Communications in Besut Pos Malaysia participated in the Sehari Bersama Pelanggan programme organised by the Ministry of Energy, Water and Communications with the collaboration of the Terengganu State Government. The event was held in Besut, Terengganu. 13 August 2007 Signing Ceremony between Pos Malaysia and Tune Money Pos Malaysia tied up with online financial services provider Tune Money Sdn Bhd to provide customers of Tune Money with one of the most convenient and affordable offline channels in the country for collecting, paying for and topping up Tune Money products.

45 43 corporate events August 2007 Motivational Camp for adopted schools As part of its Corporate Social Responsibility (CSR) initiatives, Pos Malaysia organised a motivational camp for students in Standard 5 and Form 5 from Sekolah Kebangsaan Kuala Perai, Bagan Dalam and Sekolah Menengah Kebangsaan Sungai Acheh, Nibong Tebal respectively, under the PINTAR programme. PINTAR or Promoting Intelligence, Nurturing Talent, Advocating Responsibility is part of the programme to improve educational performance. 22 August 2007 Launch of Merdeka Van Pos Malaysia unveiled its tribute to commemorate Malaysia s golden jubilee anniversary of its independence by decorating 50 units of its vans with special Merdeka-themed design and colours. 23 August 2007 Launch of Golden Jubilee Celebration of Independence of Malaysia Stamp As the nation celebrates its 50th anniversary of independence, Pos Malaysia issued a special collection of Merdeka stamps and First Day Cover. The Stamps and First Day Cover were launched by YB Dato Wong Kam Hoong, Deputy Minister of Culture, Art and Heritage Malaysia in Kuala Lumpur. The special collection of Merdeka stamps and First Day Cover featured the images that evoke the nostalgia of Malaysia s struggle for independence, the notable leaders who helped shape the face of our country as well as patriotic images to inspire the sense of pride and appreciation of our nation s accomplishments August 2007 Exhibition at 2nd Uni-Apro Regional Conference Pos Malaysia participated in the exhibition in conjunction with the 2nd Uni-Apro Regional Conference held in Kuala Lumpur. The conference was launched by YAB Dato Seri Abdullah Haji Ahmad Badawi, Prime Minister of Malaysia. At the exhibition, AsiaXpress, PosLaju and Philately took the opportunity to promote their products and services to the local as well as foreign delegates.

46 44 corporate events 30 August 2007 Launch of Aga Khan Stamp In conjunction with the Aga Khan Award for Architecture for 2007, Pos Malaysia issued a special commemorative stamp and First Day Cover. The commemorative stamp featured the image of the Petronas Twin Towers that has won the Aga Khan Award for Architecture in 2004 and was launched by the Prime Minister of Malaysia, YAB Dato Seri Abdullah Haji Ahmad Badawi. 2 October 2007 Majlis Berbuka Puasa with orphans Pos Malaysia hosted the orphans from Rumah Anak Yatim Nur Hikmah, Kajang, Selangor Darul Ehsan at a Majlis Berbuka Puasa which was attended by Managing Director/ Group Chief Executive Officer, YBhg Dato Idrose Mohamed and his wife, YBhg Datin Noor Sofiah Che Din. The ceremony was held at the Surau Utama, Pos Malaysia Headquarters October 2007 Aidilfitri Open House for Corporate Clients and Media In the spirit of Hari Raya Aidilfitri, Pos Malaysia had an Open House for its corporate clients, media representatives, Board of Directors and staff. The event took place at Dewan Sri Pos, Pos Malaysia Headquarters in Dayabumi Complex. 1 November 2007 Signing Ceremony between Pos Malaysia and Yayasan Sabah Pos Malaysia established a strategic partnership with Yayasan Sabah to allow students to pay their Yayasan Sabah loans at 45 post offices in Sabah as well as through PosOnline - Pos Malaysia s online transaction portal. The partnership was sealed at the signing ceremony between Pos Malaysia and Yayasan Sabah, held in Kota Kinabalu, Sabah December 2007 Academic Trip to Kuala Lumpur for adopted schools Pos Malaysia organised an academic trip to Kuala Lumpur for students from its adopted schools in Penang under the PINTAR Programme. Seventy two top students from Sekolah Menengah Kebangsaan Sungai Acheh, Nibong Tebal and Sekolah Kebangsaan Kuala Perai, Bagan Dalam were specially brought to Kuala Lumpur for a three day academic trip as a reward for their strong academic and non-academic achievements.