About the Cover - malaysiastock.biz was due to changes in the projected revenue of SYABAS following the yearly review at the end of 2007 and 2008

About the CoverCOMMITTED TO THE COURSE

In 2008, we achieved several operational initiatives by remaining on track to achieve our Vision to be a Leading and Dynamic Integrated Water Services Company. As we move forward, our focus in 2009 is to execute well…to stay the course…concentrating on working at it until all is done and done right.

Like a river that flows into the ocean, our foray into expanding our business worldwide remain challenging yet exciting. We are optimistic and eagerly embrace the bright future that lies ahead.

• To provide a synergy of socio-economic products and services in the realm of water treatment, management and distribution, and other related businesses.

• To cater to the increasing challenges in the demand for high quality water production and distribution through the continuous implementation of high quality standards, efficient services, human resources development, innovative technology and operational systems.

• To actively participate in regional and global business opportunities with linkages to the Company’s core activities and related interests.

• To actively support and participate in programmes and activities aimed at uplifting the community’s living standards and value systems in line with the aspirations of Vision 2020.

• To address national and international concerns pertaining to the protection, conservation and enhancement of the natural environment we live in.

Our VISIOnTo be the Leading and Dynamic Integrated Water Services Company

punCAk ValUESOur Company’s values, the PUNCAK Values shape our organisational culture and guide the way we run our business.They are integrated into our business processes and our core values.

At punCAk, we are and continuously seek to be: Passionate about our business for sustainable performance.

United as one in our corporate responsibility strategy to align with our Vision to be the Leading and Dynamic Integrated Water Services Company.

Nurture our human capital towards an exemplary workforce.

Corporate Governance guides the way we run our business in an evolving global business environment.

Accountable for all our actions and engagement process with our stakeholders.

Knowledgeable in all aspects of our business operations and continue to be the trusted and reliable provider of clean water supply.

Our MISSIOn

ORGanISaTIOn STRUCTURE

2008 annUal REPORT

2008 kEy HIGHlIGHTS

rM54.86m

29WTps with total production

of 691.78 million cubic metres of treated water equivalent to 97.3% of total design capacity

of the WTps

profit before tax

7 Awards

3Certificates of recognition

Expansion into

employeesworldwide

• Single tier Dividend payout of 10 sen per share for financial year ended 31 December 2008

• all Credit Ratings affirmed by rating agency

• Zero lost Time Injury (lTI) maintained by SSp2 WTp (3,035,001.97 hours), Wangsa Maju WTp

(818,445.21 hours) and Sungai Sireh WTp (117,811.86 hours) which recorded accumulated man-hours without LTI

• Billings to consumers of RM1.395 billion exceeded billings growth target of rM1.394 billion

• 100% Collection efficiency (on the amount collected from the account holders over the amount billed during the year)

• Trained 3,117 employees

punCAk ValUESOur Company’s values, the PUNCAK Values shape our organisational culture and guide the way we run our business.They are integrated into our business processes and our core values.

At punCAk, we are and continuously seek to be: Passionate about our business for sustainable performance.

United as one in our corporate responsibility strategy to align with our Vision to be the Leading and Dynamic Integrated Water Services Company.

Nurture our human capital towards an exemplary workforce.

Corporate Governance guides the way we run our business in an evolving global business environment.

Accountable for all our actions and engagement process with our stakeholders.

Knowledgeable in all aspects of our business operations and continue to be the trusted and reliable provider of clean water supply.

Chinamarket

regional Offices with ISO Certifications

pnSB’s IMS Certifications

WTps17 &3&

4,188

PUnCak nIaGa HOlDInGS BERHaD 1

&

12th Annual General Meeting

23 June 2009 (Tuesday)

10.00 a.m.

Concorde 1Concorde Hotel Shah AlamLevel 2,No. 3, Jalan Tengku Ampuan Zabedah C9/C40100 Shah AlamSelangor Darul Ehsan

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table of contents 4 Executive Chairman’s Statement

UnDERSTanDInG US 12 Corporate profile 14 Corporate Information 16 pnHB Fact Sheet 18 Corporate Achievements 19 Our role in the Water Supply System 20 Corporate Structure 21 Organisation Structure - pnSB 22 Organisation Structure - SYABAS

OUR PEOPlE

26 Board of Directors’ profile 37 Board of Directors 38 key personnel profile - pnSB 41 key personnel profile - SYABAS 45 key personnel profile - Sino Water pte Ltd 46 Human Capital Expertise 47 puncak niaga’s Global presence PERfOManCE fIGURES

50 Five-Year Financial Highlights 51 Five-Year Group performance 52 Share price & Volume Traded 53 Financial Calendar OPERaTIOnS REVIEw

56 Operations review - pnSB Water Treatment Activities 62 Operations review - SYABAS Water Distribution Activities 69 Operations review - Operational Highlights: people’s republic of China 71 Operations review - Operational Highlights: India & pakistan 72 Innovative research and Development Initiatives

building socially responsible businesses

79 Building a Dynamic Workplace 84 Valuing relationships in the Marketplace 89 reaching Out to Our Community 91 Sustaining Our Environment 98 Our Focus on Occupational Health & Safety 104 Commitment to Quality 108 Corporate Events 112 Milestones 114 Water news

aCCOUnTaBIlITy

117 Corporate Disclosure policy 118 Statement on Corporate Governance 132 Statement on Internal Control 134 Audit Committee report 140 risk Management policy & report 143 Investor relations policy & report 145 Quality policy & report 146 Distribution Schedule of Equity Securities 150 List of properties

fInanCIal STaTEMEnTS

151 Statement of Directors’ responsibility for preparation of Financial Statements 152 Financial Statements

270 notice of Annual General Meeting 272 Statement Accompanying the notice of Annual General Meeting • proxy Form • Corporate Directory

PUnCak nIaGa HOlDInGS BERHaD4

yBHG Tan SRI ROZalI ISMaIlExecutive Chairman of PnHB Group

2008 annUal REPORT


EXECUTIVE CHaIRMan’S STaTEMEnT

To the Shareholders of puncak niaga Holdings Berhad,

During the year under review, we maintained momentum in both our water treatment and water distribution operations in spite of numerous challenges. We met most of our key performance Indicators with continual improvement on many work processes towards operational efficiency. These achievements are mainly due to the hard work and commitment of our workforce of over 4,000 employees who embody the theme for this year’s Annual report, “Committed to the Course”. Each year, we keep raising the benchmark, particularly in improving our service levels and addressing concerns in raw water quality.

As the year progressed, the global financial crisis deepened and global economic conditions worsened significantly. By year end, the country’s economic growth rate had slowed to 0.1% in the fourth quarter of 2008 against a growth rate of 4.7% in the preceding quarter. For the full year of 2008, the Malaysian economy expanded by 4.6%, compared to 6.3% in 2007. Moving into 2009, the global economy is not expected to record any growth with a large number of economies experiencing a synchronised recession. The Malaysian real gross domestic product is projected to grow between minus 1% and 1% in 2009. Amidst this, the Group remains confident and inspired to overcome the obstacles, and to be on the constant look out for new businesses, both locally and abroad. We will remain focused to achieve our goals as we continue to advance our operations base and expertise, expand and nurture our workforce, preserve financial resources, and intensify r&D initiatives and efforts towards the protection and enhancement of the environment.

We remain focused to achieve our Vision to be a Leading and Dynamic Integrated Water Services Company.

fInanCIal PERfORManCE

For the financial year ended 31 December 2008, the Group reported a 1.9% increase in revenue to rM1,415.3 million from rM1,388.4 million in 2007 (restated). The increase in revenue was due to higher water revenue of rM1,394.9 million (2007: rM1,331.7 million - restated). Although revenue recorded an increase, profit before taxation (pBT) decreased by rM59.0 million (51.9%) to rM54.9 million compared with rM113.9 million in 2007 (restated). net profit posted rM22.1 million against rM69.4 million in the previous year, denoting a decrease of rM47.3 million (68.2%). The decrease was due to lower other income, higher operating cost, finance costs and depreciation and amortisation of expenses. The higher finance costs were mainly attributed to the further drawdown of the Bai Bithaman Ajil Medium Term notes (BAMTn) in SYABAS to fund its operating cash flow deficit. The increase in depreciation and amortisation was due to changes in the projected revenue of SYABAS following the yearly review at the end of 2007 and 2008.

The Group’s Shareholders’ Funds stood at rM1,372.6 million (2007:rM1,397.2 million - restated) and Earnings per Share (EpS) was 5.27 sen compared to 15.61 sen in 2007 (restated), down by 10.34 sen (66.2%).

On the strength of the Group’s financial performance, the Board of Directors is pleased to propose a final single tier dividend of 10 sen per share for the financial year ended 31 December 2008 (2007: tax exempt dividend of 10 sen per share).

yBHG Tan SRI ROZalI ISMaIlExecutive Chairman of PnHB Group


annUal REPORT 2008

Executive Chairman’s Statement (continued)

CORPORaTE DEVElOPMEnTS

On 20 February 2008, SYABAS issued BAMTn with an aggregate nominal value of rM230.0 million in four series, which will mature beginning 20 February 2020. On 31 October 2008, SYABAS issued a further BAMTn with an aggregate nominal value of rM500.0 million in four series with maturity dates on 31 October 2016 to 31 October 2023 respectively. On 11 March 2008, rM184.2 million of redeemable Cumulative preference Shares (rpS) of rM0.01 each of SYABAS were subscribed by the Minister of Finance, Incorporated (MOF) at an issue price of rM1.00 per rpS (representing a premium of rM0.99 per rpS) to fund the operations and capital expenditure requirements of SYABAS. As at 31 December 2008, the rpS stood at rM309.6 million.

pursuant to the Call Option Agreement dated 19 December 2006 between pnHB and Arena Tekad Sdn Bhd (ATSB), pnHB exercised its option to re-acquire 1.75 million ordinary shares of rM1.00 each in puncak niaga (M) Sdn Bhd (pnSB) representing 17.5% equity interest on 18 September 2008 at an exercise price of rM320,250,000.00 (Exercise of Call Option). On 22 October 2008, the Company completed the Exercise of Call Option and pnSB is now a wholly owned subsidiary of pnHB.

On 20 november 2008, pnSB carried out the second mandatory partial redemption of rM54,687,500.00 of the outstanding rM492,187,500.00 nominal value 15-Year redeemable unconvertible Junior notes (JnA) from pnHB. Concurrently, pnHB utilised the proceeds from the redemption of the JnA to undertake a second mandatory partial redemption of rM54,687,500.00 of the outstanding rM492,187,500.00 nominal value of 15-Year redeemable unconvertible Junior notes (run) from pnHB’s run holders.

In March 2009, Malaysian rating Corporation Berhad (MArC) affirmed the A+ long term ratings of pnHB’s run, pnSB’s JnA and ruBs and the AA1D rating for pnSB’s BAIDs whilst SYABAS’s BA Commercial papers/BAMTn was affirmed at MArC-11D/ AA-1D in February 2009.

EffECTIVE GOVERnanCE

The Group upholds the core values of corporate governance, integrity, transparency and accountability in the conduct of its business operations. As Malaysia’s leading water services company, we believe that the principles of good governance are integral to the Group’s continued growth and ability to promote the confidence of our stakeholders.

BUIlDInG BETTER RElaTIOnSHIPS

Being an essential services provider, we are constantly under the scrutiny of the public and authorities, which makes us more determined to outperform our obligations with each turn of the year. It is no doubt a heavy responsibility to cater to the demands of 7.3 million consumers in Selangor, kuala Lumpur and putrajaya. Through our customer-centric efforts and initiatives, we have experienced an increase in public confidence in SYABAS over the past years since we took over the water distribution responsibility in January 2005. puSpEL, SYABAS’ 24-hour customer contact centre recently launched its new logo to reflect reliability, courteousness and commitment in the discharge of its functions and responsibilities to the consumers. We have also established a Code of Ethics for our counter staff to improve counter services, courtesy and time taken in handling enquiries.

Our

4,000+hard working and committed

employees are key to improving our service levels

Our focus in 2009 to drive growth will be on preserving financial resources, advancing operations base and expertise,

and intensifying R & D initiatives

EXEMPlaRy lEaDERSHIP

2008 annUal REPORT



STayInG On COURSE

Each year, our challenges increase, especially in addressing the problems of raw water contamination. However, with stringent and rigid testing, we are able to mitigate the issues immediately. In 2008, we implemented the 24-hour On-Line river Level Monitoring System at the Langat river to monitor levels at seven locations of stage gauges. This project enables fast and optimal response to regulating dam release in ensuring adequate water supply particularly during the dry season.

The hard work and effort put in by the teams at the Operation II Division and the relevant Departments have paid off as pnSB successfully obtained the Integrated Management System (IMS) Certification for the provision of Construction Services for Building, Civil Engineering Works, Mechanical and Electrical Engineering Works, Specialising in Water related Infrastructure by Lloyd’s register Quality Assurance (LrQA). The certification comprises the ISO 9001:2000 Quality Management System, the OHSAS 18001:2007 Safety and Health Management System and the ISO 14001:2004 Environmental Management System, which are also accredited under the united kingdom Accredited Service (ukAS). This certainly further enhances our international acceptance and recognition to compete effectively as we have the capability and capacity to provide construction services with high work quality, safety and health features with emphasis on environmental preservation.

STanDaRD BEaRER Of EXCEllEnCE

In August 2008, we were shortlisted as a finalist for the inaugural StarBiz-ICr Malaysia Corporate responsibility

Awards 2008 in the Community category in recognition of our ongoing efforts to promote awareness on protecting the environment and natural resources. This has certainly encouraged us to intensify our community-driven programmes and various Corporate responsibility (Cr) initiatives such as the river rescue Brigade (Briged Penyelamat Sungai), Educational Outreach programme, Factory Visit programme and SYABAS’ Kempen Mesra Pelanggan. A great deal of our Cr programmes is focused on advocating and promoting environmental awareness among children. Our employees are also encouraged to reach out to the community and to be involved in these programmes to increase their appreciation of the natural resources and to take their work responsibilities seriously. In november 2008, the Company obtained the nACrA 2008 Industry Excellence Award for Main Board Construction & Infrastructure project Companies sector for excellence in annual reporting whilst SYABAS was awarded with the Malaysian Business Ethics Excellence Award 2008 for large companies category by the Business Ethics Institute of Malaysia.

In March 2009, SYABAS became a proud recipient of the Hr Excellence Award (Bronze recognition) in the Malaysia Hr Awards 2008-2009 awarded by the Malaysian Institute of Human resource Management.

EnVIROnMEnTal RESPOnSIBIlITy

Looking at the bigger picture, as with other responsible corporations, we share increasing concerns on global warming and climate change. Water is in all aspects of climate change and is among the key areas to be impacted as reported by the *Intergovernmental panel on Climate Change (IpCC). Freshwater is indispensable for all forms of life and

providing

7.3 millionconsumers with quality supply

of treated water daily(Selangor, kuala lumpur & Putrajaya)

is needed in large quantities, for almost all human activities. Climate, freshwater, biophysical and socio-economic systems are interconnected in complex ways, so a change in any one of these induces a change in another. Climate change due to human activities adds a major pressure to nations that are already confronting the issue of sustainable freshwater use. Water resources, both in terms of quantity and quality, are critically influenced by human activity, including agriculture and land-use change, construction and management of reservoirs, pollutant emissions, and water and wastewater treatment.

* The IPCC was established by the World Meteorological Organization (WMO) and United Nations Environment Programme (UNEP) to assess on a comprehensive, objective, open and transparent basis the latest scientific, technical and socio-economic literature produced worldwide relevant to the understanding of the risk of human-induced climate change, its observed and projected impacts and options for adaptation and mitigation.


annUal REPORT 2008


EXEMPlaRy lEaDERSHIP

pursuant to Section 192 of the WSIA, pnSB and SYABAS are only given the option to either send a notice to SpAn on its intention to apply for a licence under WSIA in substitution of the registered existing licence or apply for authorisation. pnSB’s Board has in principle agreed to migrate to the licensing regime since it is in line with the Federal Government’s policy to restructure the nation’s water industry. In the case of SYABAS, Clause 24.7 of its Concession Agreement provides that for any disposal of assets, SYABAS is required to obtain the Federal Government’s prior written consent by virtue of the Golden Share held by MOF.

We are also still awaiting for pengurusan Aset Air Berhad (pAAB) to initiate the preliminary talks with pnSB and SYABAS on the terms for migration. We will carefully consider the impact and implications to our shareholders, lenders, customers and all other stakeholders before a decision is made in the interests of all stakeholders.

InCREaSInG THE MOMEnTUM

In 2009, we will continue with our business development efforts to secure new projects in other states within Malaysia whilst at the same time, expanding our operations into the international markets.

The emerging markets of India and China warrant fast track development where our expertise has been called for. In May 2008, pnHB entered into a Shareholders’ Agreement with a strategic partner, Environmental Holding pte Ltd to take up an 80% equity interest in a Singapore company, Sino Water pte Ltd (SWpL) to enable the Group to tap into investments in water and wastewater projects in China.

We take a serious view of our corporate environmental responsibility and remain conscious of our impact on the atmosphere through emissions of greenhouse gases and the need to adapt to a changing climate. We will seek to increase our knowledge on these issues as we continue to develop and implement innovative and sustainable adaptation measures. We will endeavour to conduct our operations in a responsible manner and promote greater awareness on the conservation and enhancement of our natural environment, particularly relating to the care and management of our water resources.

waTER InDUSTRy OUTlOOk

With heightened concerns over climate change and global warming, water sustainability becomes an urgent concern which requires integrated planning by the government and industry players. proactive and prudent water management is key to helping our nation’s holistic approach to optimise its water resources and to protect and preserve our watercourses and water catchments. In line with this, the legal and administrative framework has been put in place via two laws, i.e. the Suruhanjaya perkhidmatan Air negara Act 2006 (SpAn Act or Act 654) and the Water Services Industry Act 2006 (WSIA or Act 655) to ensure an orderly and well regulated water supply services and sewage services industry in Malaysia that delivers effective and efficient service to the consumers.

On 13 February 2009, pnSB and SYABAS each received a Letter of Offer from the Selangor State Government to take over the water assets and operations of both entities. On 20 February 2009, both pnSB and SYABAS reverted to the Selangor State Government with the decision of the respective Boards not to accept the offers based on various reasons.

The catchment area at Sungai Langat Dam

2008 annUal REPORT



In pakistan, pnSB is currently undertaking feasibility studies under the auspices of the Asian Development Bank (ADB) to address the need for long term system planning for a sustainable and safe water supply system, and an effective sewage treatment network for the karachi Water and Sewerage Board. This collaboration is implemented and financed by ADB as a South Asian Water utilities network activity as part of the Water Operators’ partnerships programme.

On 18 november 2008, pnHB and the Government of Banten province entered into a Memorandum of understanding to establish mutual beneficial investment co-operation in water management and related infrastructures in Banten province, Indonesia. This is in line with the Group’s expansion plan to tap the Indonesian market.

aCknOwlEDGInG EffORTSIn today’s dynamic business environment, our Management and employees are the ultimate source of competitive advantage. On behalf of the Board, I would like to offer each and every one of them our sincere appreciation. We will continue to rely on their professionalism, knowledge and experience to fulfil our aspirations.

Our thanks also go to the Federal Government and the Selangor State Government as well as various government authorities, agencies and non-governmental organisations for the guidance they consistently provide.

I am also grateful to my fellow Board Members who comprise a formidable Board, with the vision, expertise and experience to provide sound counsel and corporate strategies in propelling the Group forward.

To our shareholders, pnHB’s success is a direct result of your ongoing commitment, loyalty and support. We look forward to your continued support in 2009.

As we move ahead into 2009, we will continue to address the growing demand for water, and do so in a way that endeavours to both preserve our environment and ensure a dependable water system for the consumers.

Tan SRI ROZalI ISMaIlExecutive Chairman

27 April 2009

80%equity interest in

Singapore-based Sino water Pte ltd to enable the Group to explore further opportunities in the water and wastewater

industries in China

The Gujjo Headworks that supply water to the pumping station for subsequent pumping to water treatment plants for treatment in Karachi, Pakistan

PNHB Group has expanded into the China market

Clarifiers at the Central Ordinance Depot (COD) WTP in Karachi, Pakistan

Our strengths lie in our

expertise in meeting the

demand for high quality water

production and distribution.

We are proactive and

continously seek methods

to improve the services we

provide. Each and every day

we endeavour to respond promptly and efficiently to

enable uninterrupted service to

the consumers.

Un

DER

STa

nD

InG

US

Committed to the course


annUal REPORT 2008

OUR COMPany

The puncak niaga Holdings Berhad (pnHB) Group is the leading and dynamic integrated water services company in Malaysia. pnHB is an investment holding company, whilst its subsidiaries are principally involved in the operation, maintenance, management, construction, rehabilitation and refurbishment of water treatment facilities; the supply and distribution of treated water within the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya; undertaking research and development and technology development for the water, wastewater and environment sectors as well as undertaking works related to the oil and gas industry and other materials and the provision of offshore and onshore engineering works.

Established on 7 January 1997, pnHB was listed on the Main Board of Bursa Malaysia Securities Berhad on 8 July 1997. As at the end of December 2008, pnHB’s market capitalisation stood at rM1.0 billion. It is the first water treatment and supply concession company to be listed on Bursa Malaysia Securities Berhad under the Infrastructure project Company guidelines issued by the Securities Commission.

OUR CORE BUSInESS anD CaPaBIlITIES

Our subsidiary, puncak niaga (M) Sdn Bhd (pnSB) which holds five water treatment concessions with the Selangor State Government, is the nation’s second largest water supply concessionaire, operating, managing and maintaining 29 water treatment plants with a combined capacity of 1,942 million litres per day. pnSB undertook the finance, design, construction operation, management and maintenance of the Sungai Selangor phase 2 Water Treatment plant with a design capacity of 950 million litres per day at a cost of rM1.28 billion which was completed on 1 January 2001, one year ahead of schedule. Subsequently, pnSB completed the Wangsa Maju Water Treatment plant with a design capacity of 45 million litres per day at a cost of rM122.0 million in a record time of six months in July 1998, during the water crisis. These early completion of projects clearly exemplifies the pnHB Group’s excellent capabilities in managing and undertaking large-scale water supply projects in Malaysia.

under a separate concession agreement with the Federal Government and the Selangor State Government, our other subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS), supplies treated water to a population of 7.3 million including industrial and commercial users, with a total registration of 1.579 million consumer accounts. SYABAS also undertakes the maintenance of 23,500 km of water pipes, 1,226 service reservoirs, elevated water tanks and suction tanks and 444 pumping stations within the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya.

In mid 2008, pnHB Group entered the China market via its 80% owned subsidiary, Sino Water pte Ltd (SWpL), a company incorporated in Singapore which focuses primarily on potential markets in China. SWpL has established various subsidiaries in the people’s republic of China to undertake potable water and wastewater projects in several provinces in China.

CORPORaTE PROfIlE

SUCCESS

2008 annUal REPORT


Two subsidiaries within the Group, namely puncak research Centre Sdn Bhd and puncak Oil & Gas Sdn Bhd undertake the research and development activities and oil and gas works respectively.

Our customer contact centre, puSpEL, which is manned by 60 highly trained call agents, operates 24 hours daily and provides customers with a convenient and effective way to contact SYABAS on water supply matters. In May 2007, puSpEL received the 2007 Malaysia Water Award for Excellence in Customer Service Management from the Malaysian Water Association.

Out of the manpower strength of more than 4,000 employees in the pnHB Group, more than half comprise Management, professionals, technical and supervisory executives with core competencies in engineering, accountancy, legal, management, administration and business; which are instrumental in supporting the Group’s business and operations.

OUR COMMITMEnT TO CORPORaTE CITIZEnSHIP

The pnHB Group is committed to upholding the principles of good corporate governance and core values such as quality, value, service, innovation and trust in the conduct of our business which are integral to our success over the years. We have received various repeat awards and accolades for good governance, annual reporting, occupational safety and health; and environmental and social reporting.

In line with our corporate vision and mission, we seek to be environmentally responsible in the protection, conservation and enhancement of the natural environment, particularly in the management aspect of water resources, which is relevant to our business operations. Our river rescue Brigade (Briged Penyelamat Sungai) programme, that was initiated by our Executive Chairman in 1998 is a programme which aims to educate the younger generation on the importance of the conservation and protection of the environment, especially the rivers. To date, we have enlisted 3,080 school children and 115 schools in the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya into the programme. In november 2007, our river rescue Brigade was accorded an Honourable Mention at the inaugural prime Minister’s Corporate Social responsibility (CSr) Award 2007. Another programme, the Educational Outreach programme (Turun Ke Padang) launched in 1999, is an extension of the river rescue Brigade, which aims to educate the primary school children located within our areas of operations on the importance of river preservation. The objectives of these programmes are to ensure the continuous supply of clean water as well as to enlighten them on the roles played by pnSB and SYABAS in the water treatment and water distribution processes respectively.

OUR fUTURE PlanS

As the pnHB Group seeks to grow its business and deliver value to its stakeholders, we will look into expanding our operations in areas related to our core business and competencies within Malaysia and undertaking projects in other countries such as India, China, the Middle East and Indonesia.


annUal REPORT 2008

CORPORaTE InfORMaTIOnBOaRD Of DIRECTORS

COMPany SECRETaRIES

Madam Tan Bee Lian, MAICSA 7006285Madam Lim Yew Heang, MAICSA 7007653

REGISTERED OffICE

10th Floor, Wisma rozalino. 4, persiaran SukanSeksyen 1340100 Shah AlamSelangor Darul EhsanTel : 603-5522 8589Fax : 603-5512 0220

BRanCH OffICE

Penang OfficeBlock C, no.12, Jalan Todak 5pusat Bandar Seberang Jaya13700 peraipulau pinangTel : 604-397 8589Fax : 604-397 0058

Kuala Terengganu Office201B, Jalan Sultan Zainal Abidin20000 kuala TerengganuTel : 609-623 8589Fax : 609-624 8589

PRInCIPal OffICE

Wisma rozalino. 4, persiaran SukanSeksyen 1340100 Shah AlamSelangor Darul EhsanTel : 603-5522 8589Fax : 603-5522 8598website : www.puncakniaga.com.mye-mail (general) : [email protected] (investors) : [email protected]

DaTE anD PlaCE Of InCORPORaTIOn

7 January 1997, Malaysia

COMPany nUMBER

416087-u

SUCCESS

Name Designation

yang Berbahagia Tan Sri Rozali Ismail Executive Chairmanyang Berbahagia Dato’ Matlasa Hitam Managing Directoryang Berbahagia Dato’ Ruslan Hassan Non-Independent Non-Executive Directoryang Berbahagia Dato’ Ir lee Miang koi Non-Independent Non-Executive Director yang Berbahagia Dato’ Syed Danial Syed ariffin Chief Operating Officeryang Berbahagia Tan Sri Dato’ Hari narayanan Govindasamy Independent Non-Executive Directoryang Berbahagia Tan Sri Dato’ Seri Dr Ting Chew Peh Independent Non-Executive DirectorMr Tan Seng lee Executive Director, Finance Division yang amat Mulia Tengku Dato’ Rahimah almarhum Sultan Mahmud Non-Independent Non-Executive Director yang Berbahagia Tan Sri Dato’ ahmad fuzi Haji abdul Razak Independent Non-Executive Director

2008 annUal REPORT


Corporate Information (continued)

TaX aDVISOR

Ernst & Young Tax Consultants Sdn Bhd

PRInCIPal BankERS

CIMB Investment Bank Berhad (13491-p)rHB Bank Berhad (6171-M)AmIslamic Bank Berhad (295576-u)HwangDBS Investment Bank Berhad (14389-u)united Overseas Bank (Malaysia) Bhd (271809-k)

SOlICITORS

Messrs Adnan Sundra & LowMessrs Azian Haslina & CoMessrs BeldenMessrs kadir, Andri & partnersMessrs Sreenevasan YoungMessrs Wong & partnersMessrs Zaid Ibrahim & CoMessrs Zul rafique & partners

SHaRE REGISTRaR

Tenaga koperat Sdn Bhd (118401-V)Level 17, The Gardens north TowerMid Valley CityLingkaran Syed putra59200 kuala LumpurTel : 603-2264 3883Fax : 603-2264 1886

STOCk EXCHanGE lISTInG

Main Board of Bursa Malaysia Securities Berhad under the Infrastructure project Companies Sector

aUDIT COMMITTEE

REMUnERaTIOn COMMITTEE

Chairman:Yang Berbahagia Tan Sri Dato’ Ahmad Fuzi Haji Abdul razakMembers:Yang Berbahagia Tan Sri Dato’ Hari narayanan GovindasamyYang Berbahagia Tan Sri Dato’ Seri Dr Ting Chew pehMr Tan Seng LeeSecretaries:Madam Tan Bee LianMadam Lim Yew Heang

nOMInaTIOn COMMITTEE

Chairman:Yang Berbahagia Tan Sri Dato’ Ahmad Fuzi Haji Abdul razakMembers:Yang Berbahagia Tan Sri Dato’ Hari narayanan GovindasamyYang Berbahagia Tan Sri Dato’ Seri Dr Ting Chew pehSecretaries:Madam Tan Bee LianMadam Lim Yew Heang

COMPlIanCE, InTERnal COnTROl anD RISk POlICy COMMITTEE (CICR)

Chairman:Yang Berbahagia Tan Sri Dato’ Seri Dr Ting Chew pehMembers:Yang Berbahagia Dato’ Matlasa Hitam (Head of CICr)Tuan Haji Sonari SolorMadam Tan Bee LianSecretary:Encik Mohammed Sofian Ismail(Head of risk Management Section)

aUDITORS

Messrs Ernst & Young (AF 0039)

InDICES

FTSE Bursa Malaysia kuala Lumpur Composite Index (FTSE Bursa Malaysia kLCI)FTSE Bursa Malaysia Emas Syariah Index

Chairman:Yang Berbahagia Tan Sri Dato’ Seri Dr Ting Chew pehMembers:Yang Berbahagia Tan Sri Dato’ Hari narayanan GovindasamyYang Amat Mulia Tengku Dato’ rahimah Almarhum Sultan Mahmud Yang Berbahagia Tan Sri Dato’ Ahmad Fuzi Haji Abdul razakSecretaries:Madam Tan Bee LianMadam Lim Yew Heang

(Place where all registers of securities are kept)


annUal REPORT 2008

PnHB faCT SHEET

SUCCESS

Authorised Share Capital rM1,300,000,000.00paid-up Share Capital rM411,142,895.00 (comprising 411,142,895 ordinary shares of rM1.00 each)number of run Issued 546,875,000run Coupon rates 2.5% per annum for the first 10 years and 3.5% per annum for the remaining 5 yearsrun Maturity Date 18 november 2016run Holders’ put Option Date 20 november 2011run redemption Dates (2007-2011) First (1st) Mandatory partial redemption - 20 november 2007 (completed) Second (2nd) Mandatory partial redemption - 20 november 2008 (completed) Third (3rd) Mandatory partial redemption - 20 november 2009 Fourth (4th) Mandatory partial redemption - 20 november 2010 Fifth (5th) Mandatory partial redemption - 20 november 2011

Management 230 174 56 185 37 7 1

Executive 748 370 378 660 56 21 11

non-Executive 3,137 2,551 586 2,810 70 243 14

Total 4,115 3,095 1,020 3,655 163 271 26

Genderno. ofPersonnel Male female

Race

Malay Chinese Indian Others

number of pnSB’s Water Treatment plants 29

number of Water Treatment plants with ISO Certifications 20

PnSB faCT SHEET

number of SYABAS’ Consumer Accounts 1.579 million

Maintenance of water pipes 23,500 km

number of service reservoirs, elevated water tanks 1,226and suction tanks

number of pumping stations 444

SyaBaS faCT SHEET

GROUP ManPOwER aS aT 27 aPRIl 2009

Category

2008 annUal REPORT


GROUP ManPOwER analySIS

non-Executive76.2%

Management 5.6%

fact Sheet (continued)

lIST Of CORPORaTE MEMBERSHIPS

Breakdown by Category

Breakdown by GenderMale female

Breakdown by Race

nO. Of STaff TRaInED In yEaR 2008 By CaTEGORy

Directors & Management166

Executive626

non-Executive2,325

Total Staff Trained: 3,117

5.3% 20.1% 74.6%

TOTal TRaInInG ORGanISED In yEaR 2008

In-House Functional/knowledge programme238

External Courses(Local/Overseas)165

1.8% 16.8% 33.3%48.1%

In-House Supplementary knowledge programme83

In-House personal & Leadership programme9

Total: 495

1. Malaysian Water Association (MWA) Member since 1994 2. Malaysia South-South Association (MASSA) Member since 1995 3. Federation of public Listed Companies (FpLC) Member since 1997 4. Malaysian Employers Federation (MEF) Member since 1999 5. Malaysian Industry-Government Group for High Technology (MIGHT) Member since 2001 6. Malaysian-German Chamber of Commerce and Industry (MGCC) Member since 2002 7. national Institute of Occupational Safety and Health (nIOSH) Member since 2002 8. American Water Works Association (AWWA) Member since 2002 9. Malaysian-French Chamber of Commerce and Industry (MFCCI) Member since 2002 10. Malaysia-russia Business Council Member since 2002 11. British Malaysian Chamber of Commerce (BMCC) Member since 2003 12. Malaysia-Japan Economic Association (MAJECA) Member since 2003 13. Commonwealth partnership for Technology Management (CpTM) Member since 2003 14. Institute of Marketing Malaysia (IMM) Member since 2003 15. South East Asian Water utilities network (SEAWun) Member since 2004 16. Malaysian Islamic Chamber of Commerce (MICC) Member since 2006 17. Singapore Water Association Member since 2006 18. Malaysian Investors relations Association (MIrA) Member since 2008 19. Water Association of Selangor, kuala Lumpur and putrajaya (SWAn) Member since 2008

Executive 18.2%

82.4% 12%5.6%

57.5%

Managementnon-Executive Executive

Malay Chinese

Indian Others

Management

non-Executive

Executive

5.1%

18.1%

76.8%

37% 5.5%

2.6%7.7%

89.7%

22.7% 42.9%

3.8%42.3%

53.9%

34.4%


QuALITY MAnAGEMEnT

SYSTEM ISO 9001:2000

Certification received on 17 november 2008

HEALTH AnD SAFETY MAnAGEMEnT

SYSTEM BS OHSAS 18001:2007Certification received on

15 December 2008

EnVIrOnMEnTAL MAnAGEMEnT

SYSTEM ISO 14001:2004

Certification received on 15 December 2008

SUCCESS

CORPORaTE aCHIEVEMEnTSannUal REPORT 2008

1

5

8

4

7

6

32

1 aCCa MalaySIa EnVIROnMEnTal anD SOCIal REPORTInG awaRDS (MESRa) 2007 *

pnHB was shortlisted under the Social reporting Category on 22 May 2008

2 naTIOnal COUnCIl fOR OCCUPaTIOnal SafETy anD HEalTH MalaySIa (nCOSH) awaRDS 2007

Gold Award for the Water Sector awarded to Wangsa Maju WTp on 9 July 2008

3 STaRBIZ-ICR MalaySIa CORPORaTE RESPOnSIBIlITy awaRDS 2008 for the Community Category (Finalist) awarded to pnHB on 22 August 2008

4 MalaySIan SOCIETy fOR OCCUPaTIOnal SafETy & HEalTH (MSOSH) annUal OSH PERfORManCE awaRDS 2007 Gold (Class II) awarded to Sungai Langat WTp, Sungai Batu WTp and Bukit nanas WTp on 25 August 2008

5 MalaySIan BUSInESS ETHICS EXCEllEnCE awaRD 2008 under the Large Company Category awarded to SYABAS on 11 november 2008

6 naCRa 2008 InDUSTRy EXCEllEnCE awaRD for Main Board Construction & Infrastucture project Companies

Category awarded to pnHB on 19 november 2008

7 InTEGRaTED ManaGEMEnT SySTEM (IMS) CERTIfICaTIOn

for the provision of Construction Services for Building, Civil Engineering Works, Mechanical and Electrical Engineering Works, Specialising in Water related Infrastructure awarded to pnSB

Certified by urS Certification (M) Sdn Bhd (urS) and accredited under united kingdom Accredited Service (ukAS)

8 MalaySIa HR awaRDS 2008-2009 HR EXCEllEnCE CaTEGORy (BROnZE awaRD) awarded to SYABAS on 25 March 2009

* now known as ACCA Malaysia Sustainability Reporting Awards (MaSRA)

2008 annUal REPORT


SCHEMaTIC DIaGRaM Of waTER TREaTMEnT SySTEMrAW WATEr

puMp

InTAkE

GrIT CHAMBErBAnD SCrEEn

MODIFIED LIQuID ALuM

AErATOrFLOCCuLATIOn CHAnnEL

MIxInG CHAnnEL

TO rIVEr / SLuDGE LAGOOnS

SEDIMEnTATIOn TAnk

FILTrATIOn TAnkFILTrATIOn

GALLErY

CHLOrInESODIuM SILICOFLOurIDE

HYDrATED LIME

TrEATEDWATEr puMp

CLEAr WATEr TAnk

BALAnCInGrESErVOIr

BuLk METErS

rivers Dams

BOOSTER STaTIOn

RESERVOIR waTER TOwER

SERVICE RESERVOIR

Water Meter(Condominium/

Flat) Water Meter(residential

Home)

Water Meter(Industrial/

Factory) Water Meter(Government/ Institutional)

Water Meter(Office) Water Meter

(Shopping Centre)

Manages river basin upstream beginning 3 nautical miles from the sea

Regulatory authorities

Oversees environment issues concerning rivers

Flood control and river management

polic

y, pl

anni

ng, E

nfor

cem

ent a

nd S

urve

illan

ce b

y Gov

ernm

ent A

genc

ies

Dam Operators in Selangor

• puncak niaga (M) sdn bhd (pnsb)• syarikat pengeluar air sungai selangor sdn bhd (splasH)• Konsortium abass sdn bhd

• puncak niaga (M) sdn bhd (pnsb)• syarikat pengeluar air sungai selangor sdn bhd (splasH)• Konsortium abass sdn bhd

syarikat bekalan air selangor sdn bhd (syabas)

consumers

Selangor Water Management Authority

(LUAS)

Department of Environment

(DoE)

Department of Irrigation and Drainage

Malaysia(DID)

National Water Services Commission

(SPAN)

Operators

OUR ROlE In THE waTER SUPPly SySTEM

wTP Operators in Selangor

water Supply Distributor for Selangor,

kuala lumpur and Putrajaya

InVESTMEnT HOlDInG

100%XInnUO waTER (BInZHOU) CO. lTD treatment of wastewater and related services.

100%SInO waTER EnVIROnMEnTal COnSUlTanCy (SHanGHaI) CO. lTD consultancy services for water and wastewater projects.

100%PUnCak nIaGa (M) SDn BHDoperation, maintenance, management, construction, rehabilitation and refurbishment of water treatment facilities.

100%UnGGUl Raya (M) SDn BHDceased operation.

70%SyaRIkaT BEkalan aIR SElanGOR SDn BHDsupply and distribution of treated water within Selangor and the Federal Territories of kuala Lumpur and putrajaya.

100%IDEal waTERRESOURCES SDn BHD ceased operation.

100%PERBaDanan URUS aIR SElanGOR BERHaDceased operation.

100%PUnCak RESEaRCH CEnTRE SDn BHD

research and development and technology development for water, wastewater and environment sectors.

100%PUnCak SERI (M) SDn BHD

dormant.

100%PUnCak nIaGa (InDIa) SDn BHD

dormant.

100%nS waTER SySTEM SDn BHD

dormant.

100%PUnCak OIl & GaS SDn BHD

exploration for the production of oil and gas and other materials and the provision of

offshore and onshore engineering works.

40%OaSIS waTER

RESOURCES SDn BHDdormant.

50%PURnaMa PERSaDa

SDn BHDdormant.

83%lUwEI (PInGDInGSHan) waTER CO. lTD treatment and distribution of water and related services.

80%SInO waTER PTE lTDinvestment in water and wastewater projects in China.

associate Company

CORPORaTE STRUCTURE

SUCCESS

annUal REPORT 2008

associate Company


ORGanISaTIOn STRUCTURE ORGanISaTIOn STRUCTURE - PnSB

CHIEf OPERaTInG OffICERyBhg Dato’ Syed Danial Syed ariffin

ManaGInG DIRECTORyBhg Dato’ Matlasa Hitam

BOaRD Of DIRECTORS

COnTRaCT & PROCUREMEnT DEPaRTMEnTSenior ManagerEncik Mohd azmi Jusoh

lEGal DEPaRTMEnTGeneral ManagerVacant

CORPORaTECOMMUnICaTIOnS DEPaRTMEnT General ManagerPuan Shuhainie Shamsudin

STRaTEGIC RESOURCECEnTREGeneral ManagerDr abdul Rahimawang kechik

SECRETaRIal DEPaRTMEnTSenior General ManagerMadam Tan Bee lianGeneral ManagerMadam lim yew Heang

BUSInESS DEVElOPMEnT DEPaRTMEnTGeneral ManagerIr ahmad Marzuki Hashim

EXECUTIVE CHaIRManyBhg Tan Sri Rozali Ismail

EXECUTIVE CHaIRMan’S OffICESenior General ManagerMr Ramalingam k R arumugamSenior General ManagerEncik Zon abd HamidGeneral ManagerTuan Syed aminuddin Syed Zakaria

InTERnal aUDIT DEPaRTMEnTActing Head (Senior Manager)Encik Mohammed Sofian Ismail

fInanCE DIVISIOn

Executive DirectorMr Tan Seng lee

fInanCE & aCCOUnTS DEPaRTMEnT

General ManagerVacant

COMPEnSaTIOn & BEnEfITS SECTIOnAssistantGeneral ManagerEncik nik azminik yaacob

aCCOUnTS SECTIOnSenior ManagerVacant

HUMan RESOURCES &aDMInISTRaTIOn DIVISIOn (HRaD)

Executive DirectoryBhg Datuk Mohd yunusMohd amin

HRaD 1General ManagerEncik azhari abd Rahman

HUMan RESOURCESManaGEMEnT DEPaRTMEnTManagerEncik Muhamad noorMd Darus

aDMInISTRaTIOn DEPaRTMEnTManagerPuan Didy narisa ab Rahim

InfORMaTIOnTECHnOlOGy DEPaRTMEnTAssistant ManagerEncik Mat Suhairi Darin

OPERaTIOn I DIVISIOn

Executive DirectorVacant

OPERaTIOn Of wTPS DEPaRTMEnTAssistant General ManagerEncik azhani Sukimi

PlanTIMPROVEMEnT &MaInTEnanCESECTIOnSenior General ManagerVacant

SSP2 wTPPlant ManagerEncik Zaini Zainal

wanGSa MaJU wTPAssistant ManagerEncik Mohd Hafiz Md yunos

HEalTH, SafETy &QUalITy ManaGEMEnT DEPaRTMEnTSenior ManagerTuan Haji kaharudin Mohd ali

waTER RESOURCES &EnVIROnMEnTalSURVEIllanCE DEPaRTMEnTGeneral ManagerPuan Roowina Merican a Rahim Merican

OPERaTIOn II DIVISIOn


MaJOR PROJECT &UPGRaDInG PROJECT DEPaRTMEnTGeneral ManagerIr Tan Hui kuan

SaBaH PROJECTGeneral ManagerMr Seng Pay

PROPERTy ManaGEMEnT DEPaRTMEnTSenior ManagerVacant

HRaD 2General Manager

Encik Saadon kardi

PROTECTIVE SERVICES DEPaRTMEnT

ManagerEncik abdul latif Othman

fOOD & BEVERaGE DEPaRTMEnT

ManagerEncik Rosdi abdul Rahman

PEkaAssistant Manager

Puan Zelly asma Hassan

CHIEf OPERaTInGOffICER’S OffICEGeneral ManagerIr Dr Teoh Seng Giap

CORPORaTE affaIRS DIVISIOn

Executive DirectorTuan Haji nasir khanIlladad khan

(As at 27 April 2009)

annUal REPORT2008

21PUnCak nIaGa HOlDInGS BERHaD

aUDIT COMMITTEE

SUCCESS

ORGanISaTIOn STRUCTURE - SyaBaSannUal REPORT 2008


eXecuTiVe cHairMan (ec)ybhg Tan sri rozali ismail

cHief eXecuTiVe officerybhg dato’ ruslan Hassan

eXecuTiVe direcTorencik othman ismail

general Managerencik othman omar

audiT diVision

General ManagerTuan Haji sonari solor

corporaTe coMMunicaTions& cusToMer serVice


cusToMer serVice diVisionGeneral Managerpuan adelina iskandar

corporaTecoMMunicaTionsdeparTMenTSenior Managercik shahrul bariahMohd rejab

public affairs & coMMuniTy serVice deparTMenTPublic Affairs Managerpuan balqesh abdullah

eVenTdeparTMenTEvent Management Managerencik abdul raofahmad

puspel callcenTredeparTMenTSenior ManagerTuan Haji Mohdsufian sahran

icu deparTMenTManagerencik abdul Manafayoub

yaKin deparTMenTManagerencik HazamuddinHashim

counTer serVicedeparTMenTSenior Executiveencik syahruladha nurlis

finance &accounTs diVisionGeneral ManagerMadam chongpoh leng

conTracT, asseTManageMenT& payabledeparTMenT

Treasury &banKingdeparTMenTSenior Managerencik shamsul M isa

accounTs &financialreporTingdeparTMenTSenior ManagerMr cheah Koh leong

finance

Executive DirectorMadam Thein Kwee sim

billing & recoVerydiVisionGeneral ManagerVacant

recoVerydeparTMenTManagerMr Vasan a/lramachandram

sysTeM & finance deVelopMenTdeparTMenTManagerVacant

billing deparTMenTManagerencik asararuddin abd Mutalib

HuMan resource & adMinisTraTiondiVisionGeneral ManagerVacant

recruiTMenTdeparTMenTManagerpuan noor fadilla M samsi

indusTrialrelaTiondeparTMenTManagerpuan faridatulzakiah Mohd bakhry

TrainingdeparTMenTManagerpuan yasmin Hood

perforManceManageMenT &careerdeVelopMenTdeparTMenTManagerpuan KhamsiahMohd saad

coMpensaTions& benefiTs/eMployeerelaTionsdeparTMenTManagerpuan aida yuhanaZainul ariff

HealTH safeTy &enVironMenTdeparTMenTManagerencik Taufik afendyothman

HuMan resource& adMinisTraTion

Executive DirectorTuan Haji Zainuddin othman

Senior Managerencik norazmani ahmad

generaladMinisTraTiondeparTMenTManagerencik abd rahmanbakar

asseT & officeManageMenTdeparTMenTManagerencik damuri dollah

sporTs &recreaTionaldeparTMenTAssistant Managerencik as’ad Mohdsidek

TransporTdeparTMenTAssistant Managerencik M Taran daniel abdullah

sToredeparTMenTAssistant Managerencik norzainiM yatim

securiTy diVisionAssistant General Managerencik Zainal rashid adnan

securiTyoperaTionalsecTionAssistant Managerencik abd aziz Taip

adMinisTraTionuniTExecutiveencik ismail samek

icT, legal & conTracT


inforMaTion &coMMunicaTionTecHnologydiVisionSenior General ManagerTuan Haji Mohdsuhaimi rafie

neTWorKoperaTioncenTredeparTMenTManagerencik Mohd shafieMohd Taib

business applicaTionsupporT &adMinisTraTiondeparTMenTManagerpuan Munaliza Maseran

prograMMeplanning & applicaTiondeVelopMenTdeparTMenTManagerencik Hamidun Jaafar

legal &enforceMenTdiVisionGeneral Managerpuan nik alienasalwanee nik Mohamed

liTigaTion deparTMenTSenior ManagerMr Vignesweran a/l Thambirajah

corporaTe adVisory & coMpliance deparTMenTManagerpuan siti farah Husna

enforceMenT deparTMenTManagerMr Vishnu Kumar a/l Visvanathan

conTracT &procureMenTdiVisionGeneral Managerir nasir ismail

pre Tender &procureMenTdeparTMenTManagerVacant

posT Tender &generaladMinisTraTiondeparTMenTSenior Managerencik Wan abdul aziz Wan Muda

posT Tender &conTracTMoniToringdeparTMenTManagerVacant

corporaTecoMMunicaTions& public affairs diVisionGeneral Managerencik abdulHalem Mat som

Media relaTiondeparTMenT Managercik Hashimah che Mat din

regulaTory coordinaTion deparTMenTManagerVacant

daTa and resources collaTion sTorageExecutive Vacant

researcH & deVelopMenT deparTMenTManagerVacant

library/arcHiVes deparTMenTExecutive Vacant

sTraTegic resource

Executive Directorir V subramaniam

special assisTanT To eXecuTiVe direcTor, HuMan resource & adMinisTraTionManager encik ‘arash Mohd Zin

ORGanISaTIOn STRUCTURE

annUal REPORT2008

secreTarial deparTMenT

ManagerMadam lau pueh geok

buMipuTera parTicipaTion & deVelopMenT deparTMenT

Special Assistant to Executive Chairman/ Senior General Manager PPUBencik Mohamad isa Mohd yassin

disTricT diVision

Senior General Managerencik ismail rusmin

MecHanical/elecTricaldeparTMenTSenior Managerencik Mohd yusri abu samah

enforceMenTdeparTMenTAssistant General Managerencik yusof awang dollah

Managerencik abd Hafidz Mohd Tahet

proJecTManageMenTdeparTMenTManager encik Hasnol ezameffendy Hamzah

MigraTiondeparTMenTManager encik Mohd azmiMd nasir

TecHnicaldeparTMenTManager encik Wan amzariabdul Halim

disTricT MoniToringdeparTMenTAssistant Manager encik syamsul@Khairul amri Hamdan

pluMber MoniToringdeparTMenTSupervisorencik sulaiman samat

secreTary of WorK(soW) (acting)cik sharifah fairus syed Jaafar Manager Iencik anwar ahmadi MahmudManager II encik ahmad pauzi abdullah

soW (acting)encik syamsul Kamal TajudinManager Iencik Mohd rosli TunManager II Vacant

soW (Manager)encik Mat saman Mat soomManager Iencik Mohd paizal baharudinManager II encik Mohd asri Hassan

soW (acting)encik yusran yusofManager I (Senior Manager)encik Hamdan ahmadManager II encik Wan ediwan Wan MohamadManager IIIpuan suhaila abd rahman

cenTral Zone

1. Kuala luMpur (caTegory a) General Manager cik Hayati ab Wahab

2. peTaling (caTegory a) Senior General

Manager encik abdul rashid abd satar

soWencik abd shukor ismailManager I (Senior Manager)encik Mohd azmi JamaluddinManager II (Senior Manager)encik surani naimManager III (Senior Manager)puan roslina ab lazid

soW (acting)encik ezrul azzim WahidManager Iir ammar M noorManager II VacantManager IIIencik ahmad rosdan Jamlus (e1)

soW (acting)encik Khairul anuwar ismailManager IVacantManager IIencik abu Zarin abu bakar (e1)

soW(assistant Manager)encik ahmad fuad ZainudinManager Iencik abdul Halim othmanManager II Vacant

operaTion &MainTenancedeparTMenTGeneral Managerencik Mohd yamanMohd Zin

producTiondeparTMenTManagerVacant

bulK Transfer &TransMissionsysTeMdeparTMenTManagerVacant

WaTer QualiTydeparTMenTSenior Managerencik Mokhtar atan

TecHnical &engineeringdeparTMenTManagerencik roskhamdiKamaluddin

WaTer QualiTy &consuMercoMplainTdeparTMenTManagerencik abd latif Kamarudin

gis, asseT,scada & TeleMeTry diVisionGeneral ManagerVacant

senior Managerencik Hairuddin Munip

Mapping, gisdeparTMenTManagerencik Mohd sapran Hosnan

asseT ManageMenT sysTeM Assistant Managerencik roslan osman

scada deparTMenTManagerencik Wan burhanuddin Wan ismail

TecHnicalserVices diVisionAssistant General Managerir Hussain salikin

planning & designdeparTMenT

Hydraulic Modeling deparTMenTSenior Managerir Wan M Jaafar Wan ahmad nasiry

soW (Manager)Tg Mohd safari Tg ahmadManager IVacantManager II VacantManager IIIVacant

proJecTManageMenTdiVisionGeneral ManagerVacant

slope & oTHer specific proJecTsSenior Managerencik Muhamad Zuki Mat Zin

disTribuTion sysTeM upgradingSenior Managerencik Musa omar

pipe replaceMenTSenior Managerencik shahrom Hashim

conTracTadMinisTraTiondiVisionSenior Managerpuan ramnah M ramli

nrW conTracT deparTMenTSenior Executiveencik azhar ayob

oTHer WorKs conTracT deparTMenTExecutivepuan norsazawati Mohd azha

puan andik nurliana bachuk

non reVenueWaTer (nrW)diVisionGeneral Managerir albert loh Thiam Hock

pHysical loss reducTionSenior ManagerVacant

coMMercial loss reducTionManagerencik Mohamad nasir ramli

special proJecTsGeneral Managerir albert lohThiam Hock

cHief operaTing officer (coo)

Executive Directorybhg dato’ ir lee Miang Koi

operaTion & MainTenance

Senior General Managerencik Muhamad darif idris

proJecT

Executive Directorencik sanusi sulieman

planning uniTManagerir rohizan M asmoni

design uniTSenior Managerir you Ho Hu

deVelopMenTdiVisionGeneral ManagerMr Koh eng seng

norTHern ZonedeparTMenTSenior Managercik Maimunah Musa

cenTral ZonedeparTMenTManagerir pua eng Teik

souTHern ZonedeparTMenTManagerpuan rosmizah ahmad

norTH Zone

1. Kuala selangor

(caTegory c) Senior Manager encik abdul Halim ishak

souTH Zone

1. Hulu langaT (caTegory b) General Manager encik ariff ibrahim

2. Kuala langaT (caTegory c) Senior Manager encik ariff saring

2. sabaK bernaM (caTegory c) Assistant General

Manager encik Mohd yunus othman

3. Hulu selangor (caTegory c) Assistant General

Manager encik abdul latip Mustafa

4. goMbaK (caTegory a) General Manager encik yusof saroji

3. sepang (caTegory c) Senior Manager

(Acting) encik Mohd indra

arshad

4. Klang (caTegory a) General Manager encik ahmad suhaidin ismail

TeleMeTry deparTMenTManagerMr ragbir singh a/lHarbans singh

soW (sM)encik Kamarul bahrain ahmadSenior Manager-Administration & Customer ServicesVacantAdministration & Finance ManagerVacantCustomer Services ManagerVacantDevelopment & Projects ManagerVacantNorth Zone (Senior Manager)encik Hussain rusminSenior Manager I encik Mohamad Zahir Mohamad HassanManager II encik Mohd asgha putra M ghazaliSouth Zone (Senior Manager )Mr Kelvin siew Weng HoeManager I VacantManager II Vacant PUnCak nIaGa HOlDInGS BERHaD 23

Our people are the key

to successfully meeting the

challenges posed by growth and

expansion. We stand united

in our march towards attaining

our Vision to be the Leading

and Dynamic Integrated Water

Services Company. Through

nurturing and empowering

our human capital, we are

proactive and embrace the

vibrant future ahead of us.

OU

R P

EOP

lE



annUal REPORT 2008

YBHG TAn SrI rOZALI ISMAIL is the founder of puncak niaga (M) Sdn Bhd (pnSB), the Executive Chairman of puncak niaga Holdings Berhad (pnHB) Group and substantial shareholder of pnHB. He was appointed to the Board of pnHB on 24 April 1997.

A Bachelor of Laws Degree holder from the university of Malaya in 1981, YBhg Tan Sri rozali began his career as Legal Advisor with the urban Development Authority (uDA) before joining Bank Islam (M) Berhad in 1983. Together with a few pioneer bank staff, he conceptualised the first institution of Islamic banking in Malaysia. Subsequently, in 1987, he started his own legal practice as an Advocate and Solicitor for seven years, specialising in corporate, property and banking works.

In 1989, YBhg Tan Sri rozali set up a family-owned company and embarked into the property development sector, with involvement in several development projects in the klang Valley, kuantan and Johor. under the banner of puncak Alam Housing Sdn Bhd, he developed a new township known as Bandar Baru puncak Alam. The family-owned company also ventured into the utility business in 1989 with the setting up of pnSB. Due to his vast experience in various fields, he was entrusted by the Selangor State Government, via pnSB, to manage the water treatment plants for the whole of the State of Selangor Darul Ehsan and the Federal Territory of kuala Lumpur. pnHB was subsequently incorporated in January 1997 as the holding company of pnSB and was listed on the Main Board of Bursa Malaysia Securities Berhad on 8 July 1997.

yBHG Tan SRI ROZalI ISMaIlAGED 52, MALAYSIAnExECuTIVE CHAIrMAn OF pnHB GrOup

BOaRD Of DIRECTORS’ PROfIlE

RESPOnSIBIlITy

2008 annUal REPORT


Board of Directors’ Profile (continued)

Trustee of perdana Leadership Foundation, Yayasan WAQAF Malaysia (YWM) (January 2008-December 2009) and Sekretariat Malaysia prihatin. He is the Advisor to IMM, president of the Malay Chamber of Commerce for the State of Selangor, pro-Chancellor of universiti putra Malaysia (July 2007-June 2010), Governor for Malaysia of the Asia pacific Marketing Federation (ApMF) Foundation, Advisor of Gabungan Persatuan Usahawan Melayu Selangor/Wilayah Persekutuan (GApuMS), Advisor of Gabungan Pelajar Melayu Semenanjung (GpMS) (2006-2009 Session), Committee Member of Gagasan Badan Ekonomi Melayu (GABEM) negeri Selangor and Life Member of Gabungan Ikhtisas Dan Usahawan Bumiputra Anak Selangor, Selangor (GIBS).

In november 2006, YBhg Tan Sri rozali set up the Water Association of Selangor, kuala Lumpur and putrajaya (SWAn), a non-profit organisation which represents the common interest of all water supply and wastewater industries within the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya with the aim of promoting interaction with the general public, and enhancing their understanding of water resources. He is the president of SWAn for the 2007/2009 Session.

YBhg Tan Sri rozali is the past Deputy president of the Malaysian Water Association (MWA) (2003/2005 Session), former Board Member of universiti utara Malaysia (2004-2006) and past Advisor of the Business and Accounting Faculty Council, university of Malaya (21 May 2004 to 20 April 2007).

Besides pnHB, YBhg Tan Sri rozali is also the Executive Chairman and major shareholder of another listed company, WWE Holdings Bhd, a wastewater and environmental engineering services company and major shareholder of TrIplc Berhad, a listed property company.

YBhg Tan Sri rozali attended 6 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

YBhg Tan Sri rozali was conferred a Fellowship Award by the Institute of Marketing Malaysia (IMM) on 6 november 2001 for his invaluable contributions to promote the growth and development of the Malaysian property market. In recognition of his outstanding contributions in championing management excellence and best practices in the Malaysian water and wastewater industry, YBhg Tan Sri rozali was awarded the prestigious Asia Water Management Excellence Award 2002 - Individual Award Category, an award at the Asian level, by the regional Institute of Environmental Technology, on 26 March 2002. YBhg Tan Sri rozali was a Top 10 nominee for the Ernst & Young Entrepreneur Of The Year - Malaysia 2002 and Malaysia 2003 (Master Entrepreneur Category) Award in recognition of his outstanding entrepreneurship and leadership skills. He was conferred an Honorary Doctorate in Complementary Medicines (Humanity Services) by the Open International university for Complementary Medicines, Colombo, Sri Lanka on 24 September 2004.

On 30 november 2007, YBhg Tan Sri rozali was bestowed the SME platinum Award 2007 by the SMI Association of Malaysia for his outstanding entrepreneurship, leadership and achievements in the water industry. This award signals the SMI Association of Malaysia’s recognition of YBhg Tan Sri rozali as a role model for budding entrepreneurs, especially in view of his rapid rise from a small and medium business entrepreneur to becoming a Chief Executive Officer of a large listed company.

YBhg Tan Sri rozali is a member of various influential governmental and non-governmental associations such as Malaysian Industry-Government Group for High Technology (MIGHT), Malaysian Institute of Directors (MID), Malaysian-British Business Council, Malaysia-Indonesia Business Council, Corporate Malaysia roundtable, Malaysia-russia Business Council, Commonwealth partnership for Technology Management, FELDA Community Social Development Committee, Yayasan Budi penyayang Malaysia and a


annUal REPORT 2008

YBhg Dato’ Matlasa Hitam joined pnSB on 1 July 2003 as the Executive Director, Human resources & Administration Division and was appointed as the Managing Director of pnHB and pnSB on 1 October 2005. YBhg Dato’ Matlasa is the Head of pnHB’s Compliance, Internal Control and risk policy Committee (CICr) and sits on the Board of several private companies. He is the Chairman of SYABAS’ Audit Committee and a member of the Water Association of Selangor, kuala Lumpur and putrajaya (SWAn), a non-profit organisation which represents the common interest of all water supply and wastewater industries within the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya and to promote and advance interaction and understanding with members of the general public. He is also a member of the Malaysian Institute of Directors and the Malaysian Institute of Management.

YBhg Dato’ Matlasa holds a Bachelor’s Degree in Business Administration (Hons) from the Monmouth College, united States of America and a Master’s Degree in Business Administration (Finance) from the Central Michigan university, united States of America. He has more than 32 years of senior management experience covering areas related to manufacturing, marketing, human resources, finance as well as contract and project management.

YBhg Dato’ Matlasa served as the Managing Director/Chief Executive Officer and Board member of both petronas Methanol (L) Sdn Bhd and petronas Gas Supply (L) Sdn Bhd from January 1992 to May 1996. prior to joining pnSB, he was the Executive Vice Chairman of WWE Holdings Bhd.

YBhg Dato’ Matlasa attended 6 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yBHG DaTO’ MaTlaSa HITaMAGED 69, MALAYSIAnMAnAGInG DIrECTOr OF pnHB AnD pnSB

RESPOnSIBIlITy


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YBhg Dato’ ruslan Hassan joined pnSB on 1 november 1995 as the Executive Director of Corporate and Legal Affairs Division. When pnHB was set-up and listed on Bursa Malaysia Securities Berhad, YBhg Dato’ ruslan was appointed to its Board on 24 April 1997 and on 6 April 1999, he was appointed as the Executive Vice Chairman. Together with the Executive Chairman, YBhg Tan Sri rozali Ismail, YBhg Dato’ ruslan played a principle role in pursuing for the privatisation rights for the distribution of treated water in Selangor. upon pnHB securing the water distribution concession for the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya on 1 January 2005, YBhg Dato’ ruslan was appointed as the first Chief Executive Officer (CEO) of Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) and sits on the Boards of SYABAS and perbadanan urus Air Selangor Berhad. With his appointment as the CEO and Director of SYABAS, YBhg Dato’ ruslan was re-designated from Executive Vice Chairman of pnHB to non-Independent non-Executive Director of pnHB with effect from 1 October 2005.

YBhg Dato’ ruslan is a member of the Industrial Court-Employer panel from 1 January 2004 till present. He is also a member of the Malaysian Institute of Directors (MID), Malaysian Water Association (MWA), Institute of Marketing Malaysia (IMM) and International Water Association (IWA).

upon obtaining a Bachelor of Laws Degree from the university of Malaya in 1981, YBhg Dato’ ruslan began his career as the Legal Advisor with the multinational petroleum company, Esso Malaysia Bhd, and later as the Senior Legal Counsel of Esso production Malaysia Inc. In 1985, he joined the Sime Darby Group and was appointed as the Group Legal Advisor and Company Secretary of pernas Sime Darby Holdings Sdn Bhd, with interests in automobile, plantation and heavy machinery. YBhg Dato’ ruslan has 4 years’ experience as an Advocate and Solicitor in the capacity of a partner in a medium-sized legal firm. In 1993, he joined the securities and banking group of rashid Hussain Berhad as the Senior General Manager of the Corporate Affairs Division and was later appointed as an Executive Committee Member of the rHB Group. He was also appointed to the Boards of rashid Hussain Berhad, rashid Hussain Securities Sdn Bhd as well as various subsidiaries of rHB and served as an Audit Committee member of both companies.

YBhg Dato’ ruslan attended 6 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yBHG DaTO’ RUSlan HaSSanAGED 53, MALAYSIAn

nOn-InDEpEnDEnT nOn-ExECuTIVE DIrECTOr OF pnHB AnD CHIEF ExECuTIVE OFFICEr OF SYABAS


annUal REPORT 2008


YBhg Dato’ Ir Lee Miang koi joined pnSB in 1995 as the General Manager of Business Development. He was subsequently appointed as a Director to the Boards of pnSB and pnHB on 2 February 1999 and 1 September 1999 respectively. On 1 January 2005, he was appointed as the Chief Operating Officer of SYABAS. YBhg Dato’ Ir Lee resigned as a Director of pnSB on 30 September 2005 and was re-designated from Executive Director, project and Business Development Division of pnHB to non-Independent non-Executive Director of pnHB with effect from 1 October 2005. He is a member of the Malaysian Water Association (MWA), the Malaysian Institute of Directors (MID) and the Institute of Marketing Malaysia (IMM).

YBhg Dato’ Ir Lee graduated as a civil engineer from the universiti Teknologi Malaysia in 1978 and in 1989, he obtained a Masters Degree in Environmental Engineering majoring in water supply and wastewater engineering from the Asian Institute of Technology in Bangkok. YBhg Dato’ Ir Lee has 31 years of experience in the water supply sector and has held various positions during his tenure with the public Works Department as well as the Waterworks Department in Malaysia, specialising in the field of water supply services. He was previously a Director of the negeri Sembilan Waterworks Department. He left the public Works Department in 1991 to join ranhill Bersekutu Sdn Bhd, holding various positions from Senior Engineer to Vice president.

YBhg Dato’ Ir Lee attended 5 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yBHG DaTO’ IR lEE MIanG kOIAGED 55, MALAYSIAnnOn-InDEpEnDEnT nOn-ExECuTIVE DIrECTOr OF pnHB AnD CHIEF OpErATInG OFFICEr OF SYABAS

RESPOnSIBIlITy

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31


YBhg Dato’ Syed Danial Syed Ariffin graduated in 1981 with a BSc (Hons) Degree in Civil Engineering from the university of Aston in Birmingham, united kingdom. He is a civil engineer by profession and has been with the pnHB Group since December 1995. He began his career with pnSB as a Manager of Operation and was subsequently promoted to Senior Manager, Assistant General Manager and General Manager of Operation. prior to his appointments to the Boards of pnSB and pnHB on 1 March 2004, he was the Acting Executive Director of the Operation Division from July 2003 to February 2004 and subsequently re-designated as Executive Director, Operation I Division on 1 April 2005. On 16 november 2007, YBhg Dato’ Syed Danial was appointed as the Chief Operating Officer. He is also a Director of SYABAS since 3 September 2007.

YBhg Dato’ Syed Danial previously worked with the pahang public Works Department for 10 years, holding positions from project Engineer (1981-1983) to District Engineer for Jkr Cameron Highlands (1983-1991) and the Selangor Water Works Department between 1991 to 1995, where he was the Senior project Engineer overseeing the construction of the Sungai Selangor phase 1 Water Supply project. YBhg Dato’ Syed Danial is a member of the Institute of Marketing Malaysia, Malaysian Water Association, a registered Engineer with the Board of Engineers Malaysia and also sits on the Boards of several private companies. He is also a member of the Water Association of Selangor, kuala Lumpur and putrajaya (SWAn), a non-profit organisation which represents the common interest of all water supply and wastewater industries within the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya with the aim of promoting interaction with the general public, and enhancing their understanding of water resources.

YBhg Dato’ Syed Danial attended 5 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yBHG DaTO’ SyED DanIal SyED aRIffInAGED 51, MALAYSIAn

CHIEF OpErATInG OFFICEr OF pnHB AnD pnSB AnD A DIrECTOr OF SYABAS

PUnCak nIaGa HOlDInGS BERHaD


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YBhg Tan Sri Dato’ Hari narayanan Govindasamy, a businessman, was appointed to the Board of pnHB on 1 July 1999 as an Independent non-Executive Director. He is a member of pnHB’s Audit Committee, remuneration Committee and nomination Committee. He holds a Bachelor’s Degree in Electrical and Electronics Engineering from the university of northumbria, England.

YBhg Tan Sri Dato’ Hari is a member of the Malaysian Institute of Directors and a registered professional Engineer with the Board of Engineers Malaysia. He has vast experience in the field of electrical and electronics engineering and has held key positions at Inchcape Berhad and Tamco Cutler-Hammer Sdn Bhd. He is currently the Chairman of noblemax resources Sdn Bhd, Chairman of IEV Group Sdn Bhd, Deputy Chairman of Emrail Sdn Bhd and Deputy Chairman of Leighton Contractors (M) Sdn Bhd. YBhg Tan Sri Dato’ Hari also sits on the Boards of Tenaga nasional Berhad and Sp Setia Berhad, both public listed companies. He also holds directorships in Lembaga Lebuhraya Malaysia (The Malaysian Highway Authority), the Asian Institute of Medicine, Science & Technology and several other private limited companies.

YBhg Tan Sri Dato’ Hari attended 6 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yBHG Tan SRI DaTO’ HaRI naRayanan GOVInDaSaMy AGED 59, MALAYSIAnInDEpEnDEnT nOn-ExECuTIVE DIrECTOr OF pnHB

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YBhg Tan Sri Dato’ Seri Dr Ting Chew peh joined pnHB on 15 July 2000 as an Independent non-Executive Director and a member of the remuneration Committee and the nomination Committee. Currently, he is the Chairman for both pnHB’s Audit Committee and Compliance, Internal Control and risk policy Committee. He graduated with a Bachelor of Arts Degree from the university of Malaya in 1970 and obtained a Master of Science Degree from the university of London in 1972. He also holds a Doctorate in philosophy, which he obtained from the university of Warwick in 1976. YBhg Tan Sri Dato’ Seri Dr Ting is a member of the Malaysian Institute of Directors.

YBhg Tan Sri Dato’ Seri Dr Ting started his career as a lecturer in the Faculty of Humanities and Social Sciences at the universiti kebangsaan Malaysia from 1974 to 1980 and was subsequently an Associate professor at the Faculty until 1987. Between 1979 to 1986, YBhg Tan Sri Dato’ Seri Dr Ting published two books entitled ‘Konsep Asas Sosiologi’ and ‘Hubungan Ras dan Etnik’.

In 1987, YBhg Tan Sri Dato’ Seri Dr Ting ventured into politics with his election as a Member of parliament for the Gopeng constituency, which he held until the 2008 general elections. He previously served as parliamentary Secretary of the Ministry of Health (1988-1989), Deputy Minister in the prime Minister’s Department (1989-1990), Minister of Housing and Local Government (1990-1999) and Secretary-General of the Malaysian Chinese Association (MCA) (1990-2005). He also sits on the Boards of pan Malaysia Capital Berhad Group, Hua Yang Bhd, pan Malaysia Corporation Berhad, Johan Holdings Berhad, Complete Logistic Services Berhad and also serves as a director of several private companies.

YBhg Tan Sri Dato’ Seri Dr Ting attended 6 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yBHG Tan SRI DaTO’ SERI DR TInG CHEw PEH AGED 66, MALAYSIAn

InDEpEnDEnT nOn-ExECuTIVE DIrECTOr OF pnHB


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Mr Tan Seng Lee was appointed to the Boards of pnHB and pnSB on 1 September 2005 and Sino Water pte Ltd on 5 June 2008. He is a Member of pnHB’s remuneration Committee and SYABAS’ Audit Committee and was a past Member of pnHB’s Audit Committee for the period from 1 September 2005 to 26 February 2008. Mr Tan is a Chartered Accountant and Certified public Accountant and a Member of the Malaysian Institute of Accountants, Malaysian Institute of Certified public Accountants and the Institute of Bankers Malaysia. He holds a Master’s Degree in Business Administration from the Charles Sturt university, Australia.

Mr Tan has over 28 years of working experience in corporate finance, mergers and acquisition, corporate restructuring, accounting, auditing and banking via his involvement with companies operating in Europe, Australia, China and Indonesia.

Mr Tan began his career as an auditor with a professional accountancy firm, Messrs HrM-Arthur Andersen (1980-1986). In 1986, he joined Bumiputra-Commerce Finance Berhad as Manager of Finance and Treasury and was subsequently promoted to Senior Manager and then to Deputy General Manager of Financial Services and Credit Control. prior to joining the pnHB Group, Mr Tan was the Chief Financial Officer of prOTOn Holdings Berhad from 1999 to 2005.

Mr Tan attended 6 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

MR Tan SEnG lEEAGED 50, MALAYSIAn ExECuTIVE DIrECTOr, FInAnCE DIVISIOn OF pnHB AnD pnSB

RESPOnSIBIlITy

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YAM Tengku Dato’ rahimah Almarhum Sultan Mahmud was appointed to the Board of pnHB on 1 August 2006 as an Independent non-Executive Director. On 1 January 2007, she was re-designated as a non-Independent non-Executive Director of pnHB following her appointment as the Executive Director of puncak research Centre Sdn Bhd. She was a past Member of pnHB’s Audit Committee, remuneration Committee and nomination Committee for the period from 1 August 2006 to 31 December 2006. On 26 February 2008, YAM Tengku Dato’ rahimah was re-invited to sit on pnHB’s Audit Committee.

YAM Tengku Dato’ rahimah holds a BSc in Economics and Accountancy from the City of London university, England. She is a member of the Malaysian Institute of Accountants (MIA).

upon completing her degree, YAM Tengku Dato’ rahimah started her career at the Hongkong Bank in London, England. She then joined Esso Malaysia Berhad, holding positions from Control Advisor, Controllers Department to Senior Accountant, Menara Esso project Team. As Control Advisor, YAM Tengku Dato’ rahimah authored the booklet entitled ‘Doing Business with Esso’, which was distributed internally and externally to all Esso’s contractors. She also wrote speeches, one of which was for the Finance Director of Esso Malaysia Berhad, entitled ‘Doing Business In Malaysia Towards Vision 2020’ that was published in the MIA magazine.

YAM Tengku Dato’ rahimah was the Business Development Manager/Director of the DJAJAnTI Group, an Indonesian-based company dealing in agriculture and deep sea fishing. She was responsible for seeking business opportunities in Malaysia, Indonesia and papua new Guinea as well as liaising with government bodies and appropriate business partners.

YAM Tengku Dato’ rahimah is currently the Executive Director of TrAG Holdings Sdn Bhd which is a holding company. She also sits on the Board of Cosway (M) Sdn Bhd, a direct selling company dealing in consumer goods and services and a wholly owned subsidiary of Cosway Corporation Berhad. She is also the Chairman of Loh & Loh Corporation Bhd.

YAM Tengku Dato’ rahimah attended 5 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

yaM TEnGkU DaTO’ RaHIMaH alMaRHUM SUlTan MaHMUD

AGED 43, MALAYSIAn nOn-InDEpEnDEnT nOn-ExECuTIVE DIrECTOr OF pnHB


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yBHG Tan SRI DaTO’ aHMaD fUZI HaJI aBDUl RaZak AGED 60, MALAYSIAn InDEpEnDEnT nOn-ExECuTIVE DIrECTOr OF pnHB

RESPOnSIBIlITy

YBhg Tan Sri Dato’ Ahmad Fuzi Haji Abdul razak was appointed to the Board of pnHB on 6 October 2008 as an Independent non-Executive Director. He is a member of pnHB’s Audit Committee and Chairman of pnHB’s remuneration Committee and nomination Committee. He holds a Bachelor of Arts Degree (Honours) from the university of Malaya (1972) and a Foreign Service Course with a Certificate in Diplomacy from the university of Oxford (1974). In recognition of his service to the nation, he was awarded the AMn (1979), the JSM (1999), the DSpn (1999), the DMpn (2002) and the pSM (2003).

Since joining the Malaysian Diplomatic and Administrative Service in 1972, YBhg Tan Sri Dato’ Ahmad Fuzi served in various capacities at the Ministry of Foreign Affairs, mainly in the political Division, and at the Malaysian Missions abroad in Moscow, the Hague, Canberra, Washington and Dhaka before assuming the post of Director General of the Institute of Diplomacy and Foreign relations, Deputy Secretary General I (political) and subsequently, Secretary General of the Ministry of Foreign Affairs. As Secretary General, he played a prominent role in organising the non Aligned Movement (nAM) Summit (2003), the

Organisation of the Islamic Conference (OIC) Summit (2003) and the ASEAn Summit and related Summits including the East Asia Summit in kuala Lumpur (2005). He also led Malaysia’s Delegation to the ASEAn Senior Officials Meeting (SOM) and the Senior Officials Meeting of the bilateral Joint Commissions between Malaysia and the relevant countries.

YBhg Tan Sri Dato’ Ahmad Fuzi had previously served on the Boards of BErnAMA, prOTOn, the Malaysian-Thailand Joint Authority (MTJA) and the Maritime Institute of Malaysia (MIMA). He was also on the panel of the Board of Advisors of the Institute of Diplomacy and Foreign relations (IDFr) and acted as Malaysia’s representative to the ASEAn High Level Task Force (HLTF) on the Drafting of the ASEAn Charter. He was a member of the Malaysian Education promotion Council, Board of Trustee of World Islamic Economic Forum (WIEF), International Advisory panel (lAp) of WIEF, Chairman of Amanahraya Capital Group Sdn Bhd and Board of Trustees of MErCY, Malaysia.

YBhg Tan Sri Dato’ Ahmad Fuzi is currently the Ambassador at-Large at the Ministry of Foreign Affairs, Malaysia. He is Malaysia’s representative to the High Level panel (HLp) on the Drafting of the Terms of reference of the ASEAn Human rights Body and the Secretary General of WIEF. He is also the Chairman of AI-nibras Limited, a Member of the Board of Trustees of F3 Strategies Berhad, an Independent non-Executive Director of LCL Corporation Berhad, Group Corporate Advisor, Weida (M) Bhd, the Advisory Board, Asia pacific Entrepreneurship Award (ApEA), the panel of Distinguished Fellows, Institute of Diplomacy and Foreign relations, the Advisory Council of the Alliance Foundation, a Distinguished Institute of Strategic and International Studies (ISIS) Fellow, an Advisor of High School Bukit Mertajam Alumni Malaysia, president of the Association of Former Malaysian Ambassadors (AFMA) and Malaysian Member Committee of the Council for Security Cooperation in the Asia pacific (CSCAp Malaysia).

Since YBhg Tan Sri Dato’ Ahmad Fuzi was appointed to the Board of pnHB on 6 October 2008, he attended 1 out of the 6 Board Meetings of pnHB held in the financial year ended 31 December 2008.

nOTE: none of the Directors has any family relationship with any director and/or major shareholder of the Company, nor any personal interest in any business arrangement involving the Company. neither have they been convicted of any offences within the past 10 years.

2008 annUal REPORT


BOaRD Of DIRECTORS

Left to right:yBhg Tan Sri Rozali Ismail Executive Chairman

yBhg Dato’ Matlasa HitamManaging Director

yBhg Dato’ Ruslan Hassan Non-Independent Non-Executive Director

yBhg Dato’ Ir lee Miang koiNon-Independent Non-Executive Director

yBhg Dato’ Syed Danial Syed ariffinChief Operating Officer

yBhg Tan Sri Dato’ Hari narayanan Govindasamy Independent Non-Executive Director

yBhg Tan Sri Dato’ Seri Dr Ting Chew Peh Independent Non-Executive Director

Mr Tan Seng lee Executive Director, Finance Division

Left to right: yaM Tengku Dato’ Rahimah

almarhum Sultan MahmudNon-Independent Non-Executive Director

yBhg Tan Sri Dato’ ahmad fuzi Haji abdul Razak

Independent Non-Executive Director


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RESPOnSIBIlITy

kEy PERSOnnEl PROfIlE - PnSB

TUan HaJI naSIR kHan IllaDaD kHanAGED 56, MALAYSIAnExECuTIVE DIrECTOr, COrpOrATE AFFAIrS DIVISIOn

Tuan Haji nasir khan Illadad khan joined pnSB in February 2006 as Executive Director, Corporate Affairs Division. He holds a Bachelor’s Degree in Social Science, political Science (Hons) from universiti Sains Malaysia and a Master’s Degree in public Administration from the pennsylvania State university, united States of America. He also possesses a Diploma in public Management from the national Institute of public Administration (InTAn), and attended an Executive Management programme at the School of Government, Harvard university, united States of America. Tuan Haji nasir khan has more than 30 years of management experience in the areas of the human resources, security, land development and finance during his attachment to the Government. prior to joining pnSB, he was the Senior Assistant Director of the Budget Division at the Ministry of Finance, Malaysia.

yBHG DaTUk MOHD yUnUS MOHD aMInAGED 61, MALAYSIAnExECuTIVE DIrECTOr, HuMAn rESOurCES AnD ADMInISTrATIOn DIVISIOn

YBhg Datuk Mohd Yunus Mohd Amin joined pnSB on 15 november 2007, as Executive Director, Human resources & Administration Division. He holds a Degree in Mass Communications from universitas padjajaran Bandung, Indonesia and a Diploma in public Management from the national Institute of public Administration (InTAn). prior to joining pnSB, he was the Director for Bahagian Geraksaraf Dan Perancangan Dasar, Jabatan Hal Ehwal Khas of the Ministry of Information, Malaysia. YBhg Datuk Mohd Yunus has more than 30 years of management experience during his tenure with the Government, inclusive of 27 years of experience as a Diplomatic Service Officer.

MaDaM Tan BEE lIanAGED 43, MALAYSIAn SEnIOr GEnErAL MAnAGEr, SECrETArIAL/GrOup COMpAnY SECrETArY

Madam Tan Bee Lian joined pnSB as Company Secretary in november 1994 and was promoted twice before assuming her current position as Senior General Manager, Secretarial on 1 January 2003. As Group Company Secretary, Madam Tan is responsible for pnHB Group’s company secretarial and regulatory compliance. She is a Fellow of the Malaysian Association of the Institute of Chartered Secretaries and Administrators (MAICSA) and has more than 21 years of working experience in company secretarial practice. She previously worked with projek Lebuhraya utara-Selatan Berhad (pLuS) and Metramac Corporation Sdn Bhd/Metacorp Berhad. In 2001, she won the rOC-MAICSA Company Secretary Award for the Listed Company Category.

IR Tan HUI kUanAGED 55, MALAYSIAnGEnErAL MAnAGEr, MAJOr prOJECT & upGrADInG prOJECT, OpErATIOn II DIVISIOn

Ir Tan Hui kuan joined pnSB in August 2003. He graduated with a Bachelor of Civil Engineering (Hons) Degree from the university of Malaya in 1979. He has 25 years of working experience in the public Works Department Malaysia and Lembaga Air perak in the management of production, distribution, maintenance and consumer services of a District Waterworks Department, geotechnical investigation, maintenance of military camps, project management of military buildings and infrastructures. prior to joining pnSB, Ir Tan was the Assistant Director for Military Works in the public Works Department Malaysia. While in pnSB, he successfully executed and completed the Chennai Water Supply Augmentation project 1, package III implemented by the Chennai Metropolitan Water Supply and Sewerage Board in Tamil nadu, India.

2008 annUal REPORT


key Personnel Profile - PnSB (continued)

DR aBDUl RaHIM awanG kECHIkAGED 57, MALAYSIAnGEnErAL MAnAGEr, STrATEGIC rESOurCE CEnTrE, COrpOrATE AFFAIrS DIVISIOn

Dr Abdul rahim Awang kechik joined pnSB in July 2003 as General Manager and was appointed as Secretary of the Independent Employees’ performance review Committee (IEprC) in 2004 and Chairman of the Tender and Contracts Committee in January 2007. prior to joining pnSB, he was an Administrative and Diplomatic Officer with the Government since 1983 and has held various positions, namely in the Ministry of Finance, national Economic Action Council (nEAC), prime Minister’s Office, Ministry of International Trade and Industry (MITI), State Economic planning unit of the State of negeri Sembilan, Ministry of Agriculture and the Ministry of Housing and Local Government. He holds a Doctorate of philosophy Degree in Management, a Bachelor of Arts Degree in Education (Hons), both from universiti Sains Malaysia. He obtained a Master of Business Administration Degree from the university of Wales College of Cardiff, united kingdom, a Diploma in Business Administration from the university of Birmingham, united kingdom and a Diploma in public Management from the national Institute of public Administration (InTAn).

IR aHMaD MaRZUkI HaSHIMAGED 47, MALAYSIAnGEnErAL MAnAGEr, BuSInESS DEVELOpMEnT DEpArTMEnT, ExECuTIVE CHAIrMAn’S OFFICE

Ir Ahmad Marzuki Hashim graduated with a Bachelor of Science Degree in Civil Engineering (Hons) from Ohio university in Athens in 1984 and a Master of Science Degree in Environmental Civil Engineering from the university of Liverpool, England in 1994. He is a civil engineer by profession and has been with pnSB since March 1997. He began his career with pnSB as a Manager of the Dam Operation Department and was subsequently promoted to the positions of Senior Manager and Assistant General Manager before assuming his current position as General Manager of the Business Development Department. Ir Ahmad Marzuki has more than 25 years experience in the water industry and has held various positions during his tenure with the public Works Department’s Waterworks Branch.

PUan ROOwIna MERICan a RaHIM MERICanAGED 47, MALAYSIAnGEnErAL MAnAGEr, WATEr rESOurCES & EnVIrOnMEnTAL SurVEILLAnCE, OpErATIOn I DIVISIOn

puan roowina Merican A rahim Merican joined pnSB on 22 March 1997 as a Manager in the Operation Division in charge of the Environmental unit. She is now the General Manager of the Water resources & Environmental Surveillance Department under Operation I Division. puan roowina Merican graduated with a Bachelor of Science Degree in Civil Engineering (Hons) from the university of Surrey in 1984 and subsequently obtained her Master of Engineering Degree in Water resources Development (Hons) in 1991. She began her career in 1985 as a Civil Engineer with the public Works Department and held various positions during her tenure until 1997.

EnCIk aZHanI SUkIMIAGED 42, MALAYSIAnASSISTAnT GEnErAL MAnAGEr, OpErATIOn OF WTpS, OpErATIOn I DIVISIOn

Encik Azhani Sukimi joined pnSB in May 1998 as a process Engineer at Sungai Selangor phase 2 WTp. He was promoted to various managerial positions before assuming his current position as the Assistant General Manager, Operation of WTps, Operation I Division since August 2008. Encik Azhani graduated with a Bachelor of Science Degree in petroleum Engineering from the Colorado School of Mines, Colorado, united States of America in 1989. Encik Azhani has more than 10 years working experience in the various aspects of operations and maintenance of water treatment plants and he was also one of the pioneer engineers involved in the early operations of Sungai Selangor phase 2 WTp in 1998 to 2001. prior to joining pnSB, he was a petroleum Engineer with petronas Carigali (M) Sdn Bhd.


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key Personnel Profile - PnSB (continued)

RESPOnSIBIlITy

EnCIk aZHaRI aBD RaHManAGED 52, MALAYSIAnGEnErAL MAnAGEr, HuMAn rESOurCES AnD ADMInISTrATIOn DIVISIOn I

Encik Azhari Abd rahman joined pnSB in november 2007 as General Manager, Human resources & Administration Division and was re-designated to General Manager, Human resources & Administration Division I on 18 August 2008. He was a Maybank scholar and graduated from uiTM with a Diploma in Banking Studies. He holds a Bachelor’s Degree in Business Administration (Hons) majoring in Human resource Management from universiti putra Malaysia. Encik Azhari has 26 years of working experience in the areas of Human resource Management and Training in corporations involved in banking, information technology, manufacturing, media, construction and logistics. He has worked in various senior positions such as General Manager, Director and Vice president of Human resource at several American and Japanese Multinational Corporations (MnCs) as well as local public listed companies. During his tenure as an Hr practitioner, he served IBM Malaysia, EDS, Sony TV Industries and The new Straits Times press. He also underwent intensive and extensive on the job training in the ASEAn region and the united States of America. He has conducted several overseas training stints as part of his job scope and is a certified trainer in Behavioral Interviewing Techniques from Behavioral Inc, united States of America. prior to joining pnSB, he was the Vice president, Group Human resource of konsortium Logistik Berhad for 61/2 years.

MaDaM lIM yEw HEanGAGED 42, MALAYSIAnGEnErAL MAnAGEr, SECrETArIAL DEpArTMEnT

Madam Lim Yew Heang (Jenny) joined pnSB on 1 April 2008 as General Manager, Secretarial Department. She was appointed as the Joint Company Secretary for both pnSB and pnHB on 2 May 2008. She is a Chartered Secretary, a holder of the Institute of Chartered Secretaries & Administrators (ICSA) qualification and an Associate Member of The Malaysian Institute of Chartered Secretaries and Administrators (MAICSA). She has 20 years of working experience in company secretarial practice. prior to joining pnSB on 1 April 2008, she was a Senior Manager of Securities Services (Holdings) Sdn Bhd, a leading secretarial consultancy company for 14 years.

PUan SHUHaInIE SHaMSUDInAGED 43, MALAYSIAnGEnErAL MAnAGEr, COrpOrATE COMMunICATIOnS DEpArTMEnT, COrpOrATE AFFAIrS DIVISIOn

puan Shuhainie Shamsudin joined pnSB in October 2008 as the General Manager of the Corporate Communications Department in the Corporate Affairs Division. She started her career with the Holiday Inn City Centre as an Assistant Manager in Sales where she served for four years. puan Shuhainie then assumed the position of Sales Manager at the Legend Hotel & Apartments from January 1993 to January 1995. From January 1995 to January 1999, she was appointed as the Director of Sales and Communications at the Holiday Inn. She was subsequently appointed as the Senior Manager in Marketing at the internationally renowned Sepang International Circuit Sdn Bhd for five years. She was a Senior Manager in public relations at Malaysia Airports Holdings Berhad before assuming her current post at pnSB.

2008 annUal REPORT


kEy PERSOnnEl PROfIlE - SyaBaS

IR V SUBRaManIaMAGED 59, MALAYSIAn ExECuTIVE DIrECTOr, STrATEGIC rESOurCES DIVISIOn

Ir V Subramaniam is the Executive Director of Strategic resources Division of SYABAS. He worked with Jabatan Bekalan Air Selangor (JBAS) from 1991 and continued his services with perbadanan urus Air Selangor Berhad (puAS) from 2002 to 2004. He holds a Bachelor of Civil Engineering (Hons) Degree from the university of Malaya. Ir V Subramaniam has served in the public Works Department and Water Supply Department, in various capacities for the past 35 years since graduating in 1974. He has vast experience in managing water supply and in the privatisation of water supply. Ir V Subramaniam successfully handled the 1998 Water Crisis in Selangor and kuala Lumpur and published a complete documentation on the management of the water crisis. He has written and presented many papers on privatisation/Corporatisation of water supply and on other related technical subjects at seminars and conferences, both locally and abroad. He has also assisted the Asian Development Bank (ADB), in his capacity as ADB’s domestic consultant, in several studies on water supply in the Asian cities. Ir V Subramaniam was awarded the Darjah Kebesaran Setia Mahkota Selangor (SMS), Darjah Kebesaran Setia - Sultan Salahuddin Abdul Aziz Shah (SSA), Ahli Mangku Negara (AMn) and Pingat Jasa Kebaktian (pJk) (Terengganu), for his dedication and service to the state and the nation.

MaDaM THEIn kwEE SIMAGED 45, MALAYSIAn ExECuTIVE DIrECTOr, FInAnCE DIVISIOn

Madam Thein kwee Sim holds a professional qualification from the Malaysian Institute of Certified public Accountants (MICpA) and has been a member of MICpA and Malaysian Institute of Accountants (MIA) since 1992. Madam Thein has more than 21 years of working experience in various areas covering auditing, group accounting, corporate debt restructuring and corporate finance. prior to joining SYABAS, Madam Thein was with the renong Group of Companies for a total of 71/2 years where she served in united Engineers (Malaysia) Berhad from 1992 to 1997, overseeing the group finance and accounting functions. From 1997 to 1999 under HBn Management Office, her role was to monitor the financial performance of the listed companies under the renong Group in addition to the debt restructuring of several companies under the Group subsequent to the financial crisis of 1997. In early 2000, she joined Jendela permai Sdn Bhd, a financial consultancy company prior to joining SYABAS in May 2005. Her appointment as Executive Director of Finance at SYABAS was effective from 1 April 2007.

EnCIk OTHMan ISMaIlAGED 51, MALAYSIAn ExECuTIVE DIrECTOr, ExECuTIVE CHAIrMAn’S OFFICE

Encik Othman Ismail joined pnSB in April 2004 as General Manager and was subsequently promoted to Senior General Manager, Executive Chairman’s Office on 1 April 2006. He was promoted to Executive Director, Government relations of SYABAS under the Executive Chairman’s Office on 1 April 2007. He graduated from the university of Wales, united kingdom in 1999 with a Master’s Degree in Business Administration. Encik Othman has 16 years of working experience covering areas in marketing, sales and administration. prior to joining pnSB, Encik Othman worked with Edaran Otomobil nasional Berhad and was the Operations Director of Gold Bridge Construction and Engineering Berhad.


annUal REPORT 2008

key Personnel Profile - SyaBaS (continued)

RESPOnSIBIlITy

EnCIk SanUSI SUlIEManAGED 48, MALAYSIAn ExECuTIVE DIrECTOr, prOJECTS DIVISIOn

Encik Sanusi Sulieman graduated with a Second Class upper Degree in Civil Engineering from the university of Malaya in 1984, after which he started his career with the penang Water Authority. During his tenure with the penang Water Authority, he held various positions including project Engineer, Treatment Engineer and Distribution Engineer until 1993.

In 1993, he joined a consulting engineering firm, ranhill Bersekutu Sdn Bhd, as a Senior Engineer involved in the Johor Bahru Water Supplies privatisation Scheme. In 1994, he joined pnSB and was appointed as the project Manager for the rM1.3 billion Sungai Selangor phase 2 Water Supply Scheme, which involved the construction of the Sungai Selangor phase 2 Water Treatment plant and its distribution system.

In 2000, he joined ranhill Engineers and Contractors Sdn Bhd as the project Director in charge of all water supply construction activities at the company. He was then promoted to Chief Operating Officer of ranhill Civil Sdn Bhd until 2004. In 2004, he joined as the Executive Director of WWE Holdings Sdn Bhd before joining pnSB in the same year where he was involved in the task force for the privatisation of puAS to SYABAS.

Encik Sanusi has international construction works experience as he was assigned to the Sr408 million north Jeddah Branch Sewer network project in the kingdom of Saudi Arabia in 2006, prior to his assignment as Executive Director (projects) of SYABAS in August 2007.

TUan HaJI ZaInUDDIn OTHManAGED 49, MALAYSIAn ExECuTIVE DIrECTOr, HuMAn rESOurCES & ADMInISTrATIOn DIVISIOn

Tuan Haji Zainuddin Othman joined SYABAS on 1 April 2005 as General Manager, Human resources & Administration Division. He holds a Diploma in public Administration from the universiti Teknologi MArA (uiTM), a post Graduate Diploma and a Master of Science in Human resource Management Degree from the university of Lincolnshire and Humberside, united kingdom. He has more than 22 years of working experience in the areas of human resources management and general office administration. He was promoted to Senior General Manager of the Human resources & Administration Division with effect from 1 January 2007 and is currently the Executive Director, Human resources & Administration Division of SYABAS since 1 January 2008.

TUan HaJI MOHD SUHaIMI RafIEAGED 53, MALAYSIAnSEnIOr GEnErAL MAnAGEr, InFOrMATIOn & COMMunICATIOnS TECHnOLOGY DIVISIOn

Tuan Haji Mohd Suhaimi rafie holds a Diploma and an Advanced Diploma in Civil Engineering and a post Graduate Diploma in Systems Analysis from uiTM. He has 27 years of working experience in public works and the water supply sector. He began his career in 1979 as a Civil Engineer with Jabatan kerja raya (Jkr), holding various positions until 2001. Thereafter, he joined JBAS as a Civil Engineer and continued his service under puAS from 2002 to 2004. He was the General Manager, Information & Communications Technology Division before he was promoted to Senior General Manager, Information & Communications Technology Division of SYABAS on 1 January 2007.

TUan HaJI MUHaMaD DaRIf HaJI IDRISAGED 54, MALAYSIAnSEnIOr GEnErAL MAnAGEr, OpErATIOn & MAInTEnAnCE DIVISIOn

Tuan Haji Muhamad Darif Haji Idris holds a Bachelor of Science (Engineering) (Hons) Degree from the university of Aberdeen, Scotland and an Ordinary national Diploma (Building) from the Southampton Technical College, England. He has 29 years working experience in public works and the water supply sector. He began his career as a Civil Engineer at the Jkr Tampin District. He was then transferred to JBAS as a District Waterworks Engineer at the Hulu Langat District and continued his service with puAS from 2002 to 2004 as Senior Manager, Operation Division. prior to assuming his current position as the Senior General Manager of Operation & Maintenance Division on 1 April 2009, he was the General Manager of the klang District and petaling regional Office from April 2007 to March 2009.

2008 annUal REPORT



EnCIk ISMaIl RUSMIn AGED 39, MALAYSIAnSEnIOr GEnErAL MAnAGEr, DISTrICT DIVISIOn

Encik Ismail rusmin holds a Diploma in Business Studies from Institut Teknologi MArA and an Advanced Diploma in Business Administration from Swansea Institute of Higher Education, united kingdom. He joined pnSB as an Operations Executive in 1997. In 2003, he was placed under SYABAS’ Special project Team as a Manager during the privatisation process of water supply in the State of Selangor, and Federal Territories of kuala Lumpur and putrajaya. In 2006, he was promoted to Assistant General Manager to head the Operational Audit & Special Function Division. Subsequently, he was promoted to Senior General Manager, District Division to supervise the Enforcement Department, Mechanical & Electrical Department and the operational activities of 10 SYABAS District Offices around the concession areas as well as the Secretaries of Work (SOW).

TUan HaJI SOnaRI SOlOR AGED 53, MALAYSIAnGEnErAL MAnAGEr, InTErnAL AuDIT DIVISIOn

Tuan Haji Sonari Solor joined pnSB on 10 September 1998. He is a Chartered Accountant with MIA and a Fellow Member of the Chartered Association of Certified Accountants (uk). He also holds a professional qualification from the Chartered Institute of Management Accountants (uk). Tuan Haji Sonari has more than 20 years of working experience at several public listed companies in the areas of accounting and auditing, with focus on asset development of manufacturing companies, logging and management consultancy. prior to joining pnSB, Tuan Haji Sonari held the position of Group Division Head, Internal Audit with Land & General Berhad.

IR naSIR ISMaIlAGED 46, MALAYSIAnGEnErAL MAnAGEr, COnTrACT & prOCurEMEnT DIVISIOn

Ir nasir Ismail is a member of the Board of Engineers (BEM), MWA, SWAn, IWA and is a registered Gas Engineer with the Energy Commission at the Ministry of Energy, Green Technology and Water (formerly known as Ministry of Energy, Water and Telecommunications). He holds a Bachelor of Science in Civil Engineering Degree from the Memphis State university, Tennessee, united States of America and a Master of Science in Environmental Engineering Degree from the Shimane university, Japan in 1992. prior to joining SYABAS, Ir nasir was one of the task force members for the privatisation of SYABAS. He has served pnSB since 1998 as a Senior Manager, responsible for the upgrading and rehabilitation of water treatment plants under the Concession Agreement with the State Government of Selangor. He has previously worked with Majlis perbandaran Seremban, consulting engineer firms, contractors and Gas Malaysia Sdn Bhd.

EnCIk aBDUl HalEM HaJI MaT SOMAGED 43, MALAYSIAnGEnErAL MAnAGEr, COrpOrATE COMMunICATIOnS AnD puBLIC AFFAIrS DIVISIOn

Encik Abdul Halem Haji Mat Som joined pnSB in 2004 as the personal Assistant to the Executive Chairman before he was assigned to SYABAS as Senior Manager, Corporate Communications and public Affairs Division (CCpA). Encik Abdul Halem was then promoted to General Manager, CCpA effective 1 January 2007. He obtained a Diploma in public Administration in 1987 and a Bachelor’s Degree in Corporate Administration in 1998 both from uiTM and a Certificate in Manufacturing Management from the Sanno Institute of Business Administration (SIBA), Tokyo in 1990. His expertise lies in the areas of event management, production, human resource consultancy and training, administration and capital investment.


annUal REPORT 2008


RESPOnSIBIlITy

PUan aDElIna ISkanDaR AGED 48, MALAYSIAnGEnErAL MAnAGEr, CuSTOMEr SErVICE DIVISIOn

puan Adelina Iskandar joined SYABAS on 1 August 2007 as General Manager, Customer Service Division, the Division that caters to the needs of the consumers. puan Adelina has more than 21 years’ experience in public relations and training. She holds a Degree in Humanities and a Masters in Linguistics. puan Adelina had served as Director, Corporate Communications of the Malaysian Communications and Multimedia Commission where she was responsible for all matters pertaining to the media, government and public relations. She was also involved in strategising the branding and image building of the commission. prior to that, she was in charge of members’ relations and corporate communications at the Association of Chartered Certified Accountants. puan Adelina was also in the education field for 10 years as the Director of a university preparatory programme with an American twinning programme here. At SYABAS, puan Adelina is a member of the Corporate Social responsibility (CSr) Committee, Business Ethics Committee and Sexual Harassment Committee. MaDaM CHOnG POH lEnG AGED 39, MALAYSIAnGEnErAL MAnAGEr, FInAnCE & ACCOunTS DIVISIOn

Madam Chong poh Leng joined SYABAS in April 2008 as General Manager, Finance & Accounts of SYABAS. Madam Chong graduated with a Bachelor’s Degree in Accountancy from the university of Malaya in 1995. She is a member of MIA, having more than 14 years of working experience in auditing, corporate finance, corporate restructuring, accounting and corporate taxation. Madam Chong previously served at the senior management level of several public listed companies dealing in property development, project management, construction and manufacturing including TrIplc Berhad.

PUan nIk alIEna SalwanEE nIk MOHaMED AGED 46, MALAYSIAnGEnErAL MAnAGEr, LEGAL & EnFOrCEMEnT DIVISIOn

puan nik Aliena Salwanee nik Mohamed is the General Manager of the Legal & Enforcement Division of SYABAS. She joined the Company on 1 August 2007. She is a barrister-at-law of the Honorable Society of Lincoln’s Inn, London, England and holds a Bachelor of Laws (Hons) Degree from Middlesex university, London, England. She also holds a Master of Laws Degree from king’s College, university of London. Since graduating in 1986 she has worked in both the legal practice and corporate advisory having practiced for eight years as an advocate and solicitor. She also spent nine years as the Head of the Legal and Secretarial Department and Company Secretary of prOTOn Holdings Berhad.

MR alBERT lOH THIaM HOCk AGED 55, MALAYSIAnGEnErAL MAnAGEr, nOn-rEVEnuE WATEr DIVISIOn

Mr Albert Loh Thiam Hock joined SYABAS on 14 February 2005 as a Leak Detection Specialist and was promoted to his current position as the General Manager of the non-revenue Water Division. He graduated with a Bachelor of Science (Hons) Degree from the universiti Sains Malaysia in 1978 majoring in Geophysics. prior to working with SYABAS, he was employed by an engineering company in Melbourne to undertake water resource investigation, pipe condition assessment and leak detection services in Australia. He also worked with the Geological Survey of Malaysia from 1979 to 1981 and Malaysia Mining Corporation Bhd from 1981 to 1997. He has vast experience, both locally and overseas, in the fields of exploration & mining, oil & gas, and utility projects.

2008 annUal REPORT


kEy PERSOnnEl PROfIlE - SInO waTER PTE lTD

MR Tan SEnG lEEAGED 50, MALAYSIAn CHAIrMAn, SInO WATEr pTE LTD

Mr Tan Seng Lee was appointed to the Board of Sino Water pte Ltd on 5 June 2008 and as the Chairman of Sino Water pte Ltd on 26 June 2008. He is concurrently holding the position of Executive Director, Finance Division for both pnHB and pnSB. Mr Tan is a Chartered Accountant and Certified public Accountant by profession and a Member of the Malaysian Institute of Accountants, Malaysian Institute of Certified public Accountants and the Institute of Bankers Malaysia. He also holds a Master in Business Administration Degree from the Charles Sturt university, Australia.

As Chairman, Mr Tan is responsible for the stewardship of the Board of Sino Water pte Ltd and its subsidiaries in the people’s republic of China.

The full details of Mr Tan’s profile are as detailed on page 34 of this Annual report.

IR OOI CHEnG SwEEAGED 56, MALAYSIAnMAnAGInG DIrECTOr, SInO WATEr pTE LTD Ir Ooi Cheng Swee was appointed to the Board of Sino Water pte Ltd on 5 June 2008. He was subsequently appointed as the Managing Director of Sino Water pte Ltd on 26 June 2008 and is based in Shanghai, in the people’s republic of China. He joined pnSB in January 2005 as General Manager and was promoted to Senior General Manager, Operation of WTps, Operation I Division of pnSB on 1 January 2008. prior to assuming his current position, Ir Ooi was a civil engineer by profession and has 31 years of experience in infrastructure works, drainage, road and bridge engineering design, construction supervision of water supply schemes, water supply distribution study and operations of water treatment plants. He is a professional Engineer registered with the Board of Engineers Malaysia and a member of the Institution of Engineers Malaysia. prior to joining pnSB, he was the General Manager (Maintenance & project) of CGE utilities (M) Sdn Bhd.

As the Managing Director of Sino Water pte Ltd, Ir Ooi is responsible for the day-to-day management, operations and project implementation of all projects undertaken in the people’s republic of China including identifying potential projects, liaisons with the regulatory authorities and provincial heads of the respective government bureaus.


annUal REPORT 2008

RESPOnSIBIlITy

HUMan CaPITal EXPERTISE

l Auxiliary police

l Accountants

l Administration & Clerical Staff

l Business Development personnel

l Chartered Secretaries

l Chemists

l Civil, Electrical & Mechanical Engineers

l Corporate Communications & public Affairs personnel

l Corporate Finance personnel

l Counter Service personnel

l Electrical Chargemen

l Environmental Engineers

l Fitters

l Instrument & Automation Engineers

l IT personnel

l Lab Assistants

l Lawyers

l Leak Detection Specialists

l Leak Inspectors

l Librarian

l Meter replacement Executives

l non-revenue Water personnel

l pipe replacement Executives

l plant Operators

l plant Superintendents

l process Engineers

l production Controllers

l production Executives

l Quantity Surveyors

l research & Development personnel

l Safety & Health Officers

l Senior Draught persons

l Site Engineers

l Water Quality personnel

We demand excellence in our people so that they can deliver excellence. We are a team of over 4,000 committed employees in Malaysia and abroad comprising Management, professionals and support employees. Our workforce comprise individuals from various disciplines, each bringing a different perspective to enhance the value of our operations and projects. They include:-

2008 annUal REPORT


PUnCak nIaGa’S GlOBal PRESEnCE

MalaySIa

InDOnESIa

SInGaPORE

CHIna

InDIa

PakISTan

We are here in...

While change is an

inevitable partner to growth,

we have the ability to adapt

to any given situation no

matter how challenging. It is

this persistence that steers

the Group’s performance, both

financially and operationally.

PER

fOR

Ma

nC

E fI

GU

RES



annUal REPORT 2008

fIVE-yEaR fInanCIal HIGHlIGHTS

InTEGRITy

* These comparative have been restated following the early adoption of the revised FrS 117 - Leases in 2006, which resulted in the reclassification of leasehold land as prepaid lease payments retrospectively.

** These comparatives have been restated to take into account the effects of the bonus issue and consolidation of shares which were part of the Company’s Capital repayment exercise.

# These comparatives have been restated to take into account the effects of the adoption of FrS 112: Income Taxes

+ These comparatives have been restated to take into account the effects of understatement of trade receivables and retained earnings of prior years due to underrecognition of revenues for prior years.

In RM’000 31 Dec 08 31 Dec 07 31 Dec 06 31 Dec 05 31 Dec 04 (restated) (restated) (restated)

kEy RESUlTSrevenue 1,415,283 1,388,383 + 1,438,706 + 1,196,612 + 566,841 profit before taxation 54,855 113,938 + 375,493 + 237,245 + 77,119 net profit attributable to equity holders of the Company 21,573 64,184 # + 297,087 # + 364,479 # + 46,439

BalanCE SHEETproperty, plant and equipment 1,560,927 1,526,029 + 1,495,397 + 1,424,554 * + 1,361,459 * prepaid land lease payments 76,738 77,581 20,128 20,356 * 8,107 * project development expenditure 3,465,899 2,411,218 + 1,429,790 + 825,293 + 266,840Other non-current assets 1,284,236 1,248,470 1,272,187 972,047 825,805 Current assets 1,388,883 1,473,942 + 2,233,311 + 1,667,242 + 665,678

Total assets 7,776,683 6,737,240 6,450,812 4,909,491 3,127,889 ISSUE anD PaID-UP CaPITalShare capital 411,143 411,143 587,347 463,180 459,935 reserves 961,437 986,094 # + 1,280,249 # + 1,076,688 # 739,207

Equity attributable to equity holders of the Company 1,372,580 1,397,237 1,867,596 1,539,868 1,199,142 net assets per share attributable to equity holders of the Company (rM) 3.36 3.40 # + 3.25 # + 3.37 # + 2.61

RaTIOS anD STaTISTICnet profit margin attributable to equity holders of the Company (%) 2 5 # + 21 # + 30 # + 8 Basic earnings per share attributable to equity holders of the Company (sen) 5.27 15.61 # + 90.94 # + 113.08 # +** 14.52 ** Interest bearing debt (rM’000) 4,784,802 3,760,457 2,923,089 2,423,279 1,504,082 Gearing ratio (times) 3.49 2.69 # + 1.57 # + 1.57 # + 1.25 Current ratio (times) 0.98 1.28 + 2.02 + 2.01 + 1.57

2008 annUal REPORT


fIVE-yEaR GROUP PERfORManCE

04 05 06 07 08

21,5

7364,1

84

297,

08736

4,47

9

46,4

39

nET PROfIT aTTRIBUTaBlE TO EQUITy HOlDERS OfTHE COMPanyrM ‘000

08

1,41

5,28

3

07

1,38

8,38

3

06

1,43

8,70

6

05

1,19

6,61

2

04

566,

841

REVEnUErM ‘000

04 05 06 0807

15.6

1

90.9

4

113.

08

14.5

2

EaRnInGS PER SHaRESen

04 05 06 07 08

7,77

6,68

3

6,73

7,24

0

6,45

0,81

2

4,90

9,49

1

3,12

7,88

9

TOTal aSSETSrM ‘000

0807

1,39

7,23

7

06

1,86

7,59

6

05

1,53

9,86

8

04

1,19

9,14

2

EQUITy aTTRIBUTaBlE TO EQUITy HOlDERS Of THE COMPanyrM ‘000

04 05 06 0807

3.40

3.253.

37

2.61

nET aSSETS PER SHaRErM

5.27

0

10

20

30

0

40

50

60

70

80

90

100

110

300,000

0

600,000

900,000

1,200,000

1,500,000

1,37

2,58

0

0 0

3.36

0

50

100

150

200

250

300

350

400

500,000

1,000,000

1,500,000

2,000,000

1.00

2.00

3.00

4.00

2,000,000

4,000,000

6,000,000

8,000,000


annUal REPORT 2008

SHaRE PRICE & VOlUME TRaDED

InTEGRITy

0

1.00

2.00

3.00

4.00

5.00

May Jun Jul Aug Sept Oct nov Dec Jan Feb Mar Apr

500

1,500

2,000

1,000

2008 2009

pnHB Monthly AverageClosing prices

kuala Lumpur Composite Index (kLCI) Monthly Average Closing prices

Volume of Shares Traded

Share price (rM) kLCI

SHaRE PRICE MOVEMEnT

Volume of Shares Traded 6,260 8,393 29,260 7,508 11,952 5,666 6,479 4,242 3,598 10,126 5,705 4,750 5,164 16,650 4,767 7,974(‘000)pnHB Monthly AverageClosing prices (rM) 4.71 4.74 3.39 3.37 3.32 3.49 3.31 3.14 2.76 2.39 2.58 2.51 2.61 2.80 2.84 2.95kuala Lumpur Composite Index (kLCI) Monthly Average Closing prices 1,435 1,397 1,235 1,259 1,281 1,225 1,139 1,103 1,039 923 885 858 900 893 862 948 Jan Feb Mar Apr May June Jul Aug Sep Oct nov Dec Jan Feb Mar Apr

2008 2009

Jan Feb Mar Apr

Volume of Shares Traded (‘000)

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

27,000

30,000

ORGanISaTIOn STRUCTURE fInanCIal CalEnDaR

Thursday, 22 May 2008

First Quarter results ended 31 March 2008.

Thursday, 26 february 2009

Fourth Quarter results ended 31 December 2008.

2008 2009

Thursday, 28 august 2008

Second Quarter results ended 30 June 2008.

Thursday, 20 november 2008

Third Quarter results ended 30 September 2008.

Monday, 27 april 2009

Audited Financial Statements for the financial year ended 31 December 2008.

Monday, 1 June 2009

published Annual report 2008.

Tuesday, 23 June 2009

Twelfth Annual General Meeting.

Monday, 3 august 2009

payment of Final Single Tier Dividend of 10 sen per share for the financial year ended 31 December 2008.

wednesday, 15 July 2009

Entitlement Date for payment of Final Single Tier Dividend for the financial year ended 31 December 2008.


2008 annUal REPORT

We are aggressively pursuing

our ventures overseas to tap

into the vast opportunities that

are available to us. We operate

with utmost integrity as we

set out to foster long-lasting

relationships with whomever

we come in contact with, be

it our partners, associates or

consumers.

OP

ERa

TIO

nS

REV

IEw


OPERaTIOnS REVIEw - PnSB waTER TREaTMEnT aCTIVITIES

In 2008, pnSB focused its efforts on improving operational performance and efficiency at the WTps and Dams under its responsibility whilst at the same time, managing the operating cost at an efficient level. The correspondingly higher operating cost was attributed to factors such as increase in chemical costs due to higher chemical consumption to address poor raw water quality at the WTp intakes and upward electricity tariff revision which took effect on 1 July 2008. The 29 WTps recorded a total production of 691.78 million cubic metres of treated water in 2008, up 4.72% from 660.63 million cubic metres in 2007.

The total hours of unscheduled plant shutdowns in 2008 was 89.17 hours, a decrease of 91.8% against 1,087.62 hours in 2007, attributed mainly to incidences of TnB power failure and raw water violation.

yBHG DaTO’ SyED DanIal SyED aRIffInChief Operating Officer PNSB

yBHG DaTO’ MaTlaSa HITaMManaging Director PNSB

analyTICal

56 PUnCak nIaGa HOlDInGS BERHaD

annUal REPORT 2008

SSP2 WTP


2008 annUal REPORT

Operations Review - PnSB water Treatment activities (continued)

MEETInG DEManDS

Water Treatment Plant (WTP) operationsThroughout 2008, all our 29 WTps performed at the expected levels to consistently fulfil the production demands for the supply of treated water by SYABAS and met with the stipulated treated water quality requirements under the Ministry of Health’s Drinking Water Quality Standards. With the proper implementation of scheduled preventive maintenance as prescribed in the Operation and Maintenance Manual, none of the WTps encountered major interruptions, which could have disrupted the water supply to consumers in the designated areas.

With the diligent execution of our comprehensive scheduled preventive maintenance programme, we were able to sustain the momentum of our past year’s performance in achieving the targets set. By adopting several improvement initiatives in our daily operations throughout 2008, we continued to advance our technological know-how, bridge gaps in our operations’ methodologies and processes, and intensify research and development efforts.

More details of these initiatives are elaborated in pages 72 to 75 of this Annual report under the Innovative research and Development Initiatives section. Sungai Selangor Phase 2 (SSP2) WTPThe SSp2 WTp recorded a total production of 342.7 million cubic metres of treated water in 2008, an increase of 11.09% from 308.5 million cubic metres in the previous year. Average daily production in 2008 was 936.3 million litres compared to 845.7 million litres in the previous year.

Wangsa Maju WTPThe Wangsa Maju WTp produced 16.929 million cubic metres of treated water, a 7.22% decrease from the 18.246 million cubic metres recorded in 2007. Average daily production in 2008 was reduced to 46.2 million cubic metres compared to 50 million cubic metres in 2007, due to additional uptake from the SSp2 WTp.

Sungai Sireh WTPpnSB undertook the operations and maintenance of the Sungai Sireh WTp since 30 March 2007 and in 2008, the total production of treated water amounted to 7.89 million cubic metres with an average daily production of 21.6 million litres.

WTPs under the Privatisation Cum Concession Agreement (PCCA)The 26 WTps under the pCCA produced a total of 323.2 million cubic metres of treated water in 2008, an 11.47% decrease from the 326.95 million cubic metres in the previous year. The drop was due to SYABAS’ water purchase strategy of maximising abstraction from WTps with designated quantities.

SafEGUaRDInG SUPPlIES

Dam operationsBesides the 29 WTps, pnSB operates and maintains the Sungai Langat, klang Gates and Tasik Subang Dams under a Supplemental Agreement to the pCCA, which was executed on 31 December 2004. pnSB ensures strict compliance with the Guidelines for Operation, Maintenance and Surveillance of Dams (Malaysia Inter-Departmental Committee on Dam Safety, 1989) for the purpose of sustainable water supply in Selangor. All three dams operate using the Operational rule Curve which regularly monitors the rainfall level at the dams’ catchments areas and help our operators meet the demand for raw water release while conserving as much dam water as possible.

According to the Malaysian Meteorological Department’s forecasts until June 2009, the average rainfall record for the year 2009 will be similar to that of 2008. As the reservoir levels at the three dams were at their maximum at the end of 2008, for 2009, we do not anticipate any critical storage drawdown at any of these dams or any major change in raw water demand from the WTps.

Sungai Langat DamThe total rainfall in the Sungai Langat Dam catchment area in 2008 was 2,408.20mm/year, about 5% lower than the 21 years’ average (1988-2008) of 2,534.75mm/year. The reservoir level of the dam was maintained above the Operational rule Curve no. 1, enabling the reservoir to supply the maximum amount of raw water to the Sungai Langat WTp.

Klang Gates DamAt the klang Gates Dam, total rainfall in the catchment area for 2008 was 3,302.80mm/year, an increase of 32.7% compared to the 22 years’ average (1987-2008) of 2,488.25 mm/year.


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Aerial view of Sungai Langat Dam


annUal REPORT 2008

Owing to the markedly higher than average rainfall, the reservoir level has been able to maintain its maximum level above the Operational rule Curve no.1 throughout the year, which allows maximum abstraction not only from Bukit nanas WTp but also from Wangsa Maju WTp. Tasik Subang DamThe Tasik Subang Dam catchment area experienced a total rainfall of 2,714.50mm for 2008, a 10.7% increase compared to the 13 years’ average (1996-2008) of 2,452.99 mm/year. However, there was a constant demand from the north Hummock WTp, which resulted in fluctuating reservoir levels throughout 2008. The reading dropped below the levels of the Operational rule Curve no. 1 in early January 2008 before returning to the normal zone in October 2008 due to the increase in rainfall at the catchment area.


ongoing InitiativesAs part of pnSB’s progressive initiative to ensure sustainable water supply to the Sungai Langat WTp, the On-Line river Level Monitoring System (On-Line rLM System) was implemented at the Langat river. The project commenced in April 2008 and was completed in December 2008. The On-Line rLM System provides 24 hour monitoring of the river levels at seven locations of stage gauges along Langat river. The monitoring data are automatically transmitted to the Sungai Langat Dam and pnSB’s Head Office in Shah Alam, which will then be used to determine the volume of water to be released from the dam. Costing rM396,000.00, this project enables fast and optimal response to regulating dam release to support adequate water supply particularly during the dry season.

Reservoir rim surveillance in progress

Land development activities near to Klang Gates Dam

Aerial view of Tasik Subang Dam catchment area


annUal REPORT2008

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EXPanDInG OUR EXPERTISE

Telibong and Telipok Project, SabahWith the completion of the rM313.5 million project which included the construction of the WTp, intake, off river storage, reservoir and pipe laying, Stage 1 of the Telibong Water Supply Scheme commenced operations in April 2008 and was handed over to Jabatan Air Sabah on 17 February 2009. The WTp currently treats and supplies 80 million litres of treated water per day to residential developments, industrial parks and tourist resorts in the Tuaran area.

Sungai Langat Dam

Mile 18

Sungai Lui

Mile 16

Mile 14

Sungai Langat WTP

Level Sensors

Lui River

Mile 18

Mile 16

Mile 14

WTP Intake

Head Office

Langat River

CentralisedComputer at

Sungai Langat Dam

On-Line River Level Monitoring System for the Langat River

Aerial view of the 10 million cubic meter capacity Off River Storage (earth filled dam) site

Aerial view of the 80 MLD WTP site

Diagram 2: Schematic diagram of the On-line RLM System

Another major investment for the Sungai Langat Dam in 2008 was the refurbishment of the main switchboard at rM189,000.00. All in, the total capital expenditure for Dam Operations in 2008 for the Sungai Langat Dam amounted to rM585,000.00.

In 2008, all three dams incurred a total operation and maintenance expenditure of rM2,103,033.23 inclusive manpower cost, unscheduled and preventive maintenance, routine surveys, grass cutting and landscape maintenance works.

annUal REPORT 2008



Utilising IT solutions at the workplace

EnHanCInG BUSInESS OPERaTIOnS wITH IT SOlUTIOnS

While we continue to strive for organic growth, the need for technological advancements to enhance our operations is essential. In 2008, our Information Technology Department (ITD) continued to provide IT solutions for the business and operations by introducing new systems and projects. These included:-

• MySaP.com - a Financial Accounting package with new module on Cash Management, Cheque printing Enhancement, Electronic Desktop Banking, Liquidity Forecast and Cash position.

• PR Online - a Material Management module for centralising the creation of purchase requisitions for pnSB and the WTps.

• fixed asset Tracking and Tagging (faTTS) - a new module for tracking and tagging of assets for the Administration Department.

• Electronic Document and Records Management System (EDRMS) - a central system for documenting and keeping track of all active files for the Administration Department.

Incorporation of IT solutions reduces downtime in operations

A Centralised network printing system was also implemented at Wisma rozali, with the aim of reducing maintenance cost, which in turn improves productivity. Apart from these, 82 units of obsolete desktop computers located at all WTps were replaced with newer energy-saving models. These efforts form part of the Group’s ongoing plans to be more office automated, IT savvy and environmental conscious in our daily operations.

PNHB’s revamped website features new user interface elements to better serve our target audiences

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2008

OPERaTIOnS REVIEw - SyaBaS waTER DISTRIBUTIOn aCTIVITIES

2008 marked numerous challenges for SYABAS as we continued to focus on improving our service levels to meet our consumers’ demands. This required us to perform beyond the Concession Agreement (CA) requirements even as SYABAS operates on a cashflow deficit.

We generally met all the targets set as well as the CA requirements and the mandatory level of service. We fell short on achieving targets for non revenue water (nrW) due to a number of factors beyond the control of SYABAS and a provision has been made under the CA for SYABAS to claim allowances arising from these factors. Fuel price increases as well as the 26% rise in electricity tariff during the year added to the strain of managing distribution costs. However, with prudent management and effective implementation on several cost cutting measures, SYABAS was able to maintain distribution costs within budget and the CA requirements.

As provided under the CA, SYABAS is entitled to a second water tariff review on 1 January 2009 upon achievement of certain key performance Indicators. The proposal for a 36% water tariff revision as provided for in the CA was submitted on 31 March 2008 and is pending the approval of the Federal Government and Selangor State Government. under Clause 11.3 of the CA, the Federal Government and Selangor State Government shall within six months from 31 March 2008 notify SYABAS of their decision. As SYABAS has not received any decision from the Federal Government and Selangor State Government, SYABAS has served notice on the Selangor State Government under Clause 11.3(4) of the CA to claim for compensation for the delay in implementation of the water tariff revision.

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annUal REPORT 2008


yBHG DaTO’ IR lEE MIanG kOIChief Operating Officer SYABAS

yBHG DaTO’ RUSlan HaSSanChief Executive Officer SYABAS

Operations Review - SyaBaS water Distribution activities (continued)

DElIVERInG MORE

Water Distribution ServicesSYABAS distributes treated water to approximately 7.3 million consumers that include domestic consumers, factories, commercial and industrial buildings in the State of Selangor and the Federal Territories of kuala Lumpur and putrajaya through 1.579 million consumer connections or accounts, the largest in the country, of which 69% of the quantity is for domestic use. During the year, SYABAS distributed a daily average of 3,867 million litres of treated water (MLD) which is 56 MLD (1.5%) more from 3,811 MLD in 2007. SYABAS continued to maintain its water distribution assets comprising 23,500 km water distribution pipes of sizes ranging from 2,200 mm to 100 mm in diameter, 1,226 service reservoirs, elevated water tanks and suction tanks, and 444 booster pumping stations. Water supply coverage in urban areas is 100% whereas water supply in sub-urban or rural areas has reached 99%.

Our water resources depend entirely on surface water with raw water abstracted from the rivers and some are regulated by the dams. SYABAS obtains treated water from three WTp operators namely puncak niaga (M) Sdn Bhd (pnSB), Syarikat pengeluar Air Sungai Selangor Sdn Bhd (SpLASH) and konsortium ABASS Sdn Bhd (ABASS).

In 2008, several projects were initiated to specifically increase connectivity between various water supply sources aimed at enhancing the water supply distribution capacity from the available sources to cater to the demand centres and also to enhance reliability in case of system breakdowns. In the Hulu Langat District, SYABAS is currently implementing the Bulk Transfer from Sungai Semenyih to the Sungai Langat Water Distribution System. The project is now 85% completed and is slated for full commissioning by September 2009. The klang water transfer project is currently in design stage for Bulk Transfer from Sungai Selangor phase 3 Water Treatment plant (SSp3) to the klang area and implementation is subject to approval from SpAn.

Non Revenue Water (NRW) ReductionDuring the year under review, SYABAS continued to carry out various strategic programmes to reduce water losses as formulated under the SYABAS’ nrW reduction Master plan. We intensified efforts to further improve and expand these programmes, which have proven to be effective in yielding the desired results within a shorter payback period. These include meter replacements, District Metering Zones (DMZ) establishment, active leak detection and reservoir overflow controls. As a result, the overall nrW level for Selangor, kuala Lumpur and putrajaya has been progressively reduced from 42.78% recorded as at the commencement of the CA on 1 January 2005 to 31.94% as at 31 December 2008, representing a total reduction of 10.84% over the four-year period.

Air scouring is a cost effective solution to cleaning reticulation pipes

48 reservoirs were cleaned in 2008

annUal REPORT2008


REaCHInG OUT TO OUR COnSUMERS

Customer ServiceIn 2008, our Customer Contact Centre, pusat perkhidmatan pelanggan (puSpEL) made a more concerted effort to intensify its commitment of demonstrating the highest standards of customer service for its domestic, commercial and industrial customers in Selangor, kuala Lumpur and putrajaya. With the aim of providing exemplary services to our consumers, puSpEL’s services is divided into three major components besides the counter service it provides. These are the puSpEL Call Centre, Industrial Consumer unit (ICu) and YAkIn (unit kerjasama Informasi pelanggan).

A new logo was recently launched in January 2009 to better reflect puSpEL’s values of being reliable, Courteous and Committed in discharging its functions and responsibilities. The new logo design also establishes puSpEL’s Contact Centre as a customer-oriented, convenient and an effective two-way communication channel for consumers to contact SYABAS on all water supply related matters and issues.

At puSpEL’s Service Counters located at all the ten Districts, a total of 10,779 enquiries and complaints from walk-in consumers were received throughout the year. To ensure consistency and integrity of its counter service employees in handling customers throughout the ten Districts, puSpEL has adopted a Code of Conduct, which is outlined in the Standard practice Handbook.

The nrW level of 31.94% achieved by SYABAS as at 31 December 2008 is 3.96% above the CA’s nrW target of 27.98% for the second Operating period (1 January 2006 to 31 December 2008). This was attributed to a number of external factors and circumstances beyond the control of SYABAS, such as :-

• substantial increase in the cost of construction materials namely pipes and related items during the implementation period of the nrW programmes;

• lack of enforcement by the authorities against illegal connections; and• a bigger and wider distribution network than that disclosed in the CA.

A comprehensive report detailing all these factors has been submitted to SpAn for review. We have accordingly put in a claim for nrW allowance quantified in accordance with the provisions in the CA for inclusion into the overall measurement of nrW reduction performance and is still a subject of discussion and acceptance by the authorities.

In terms of work progress for the year, SYABAS successfully replaced approximately 4 km of old pipes using the “trenchless” technique in Jalan Bukit pantai, Jalan Maarof, Jalan Brickfields and Bt 3, Jalan Cheras. using the Static pipe Bursting Method, this technique is specially undertaken for pipe replacement works in areas prone to traffic congestion or where there is limited working space.

As at the end of 2008, with the establishment of an additional 400 District Metering Zones (DMZ), the total DMZs in place is now 880. Another 180 new DMZs are expected to be set up in 2009 to derive additional gains in nrW reduction.

PUSPEL’s Counter Service


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annUal REPORT 2008

PUnCak nIaGa HOlDInGS BERHaD

PUSPEL Call CentreOperating 24 hours a day, seven days a week throughout the year, puSpEL is managed by 60 highly trained call agents located at our Headquarters in Jalan pantai Bharu, kuala Lumpur. puSpEL provides an effective and convenient communication channel for our consumers with the following objectives:

• A convenient one-stop centre for the consumers to convey their complaints, concerns, or queries.

• Assist in explaining the cause(s) of water related concerns.

• provide timely updates on resolution of the consumer’s water supply-related problems.

• Share information to better serve the consumers.

The number of calls and cases handled by puSpEL continue to rise each year with the increasing public confidence in the ability of SYABAS to act promptly on feedbacks or complaints from consumers.

In 2008, puSpEL received 600,085 calls, an increase of 3% from the preceding year (2007: 583,052 calls). Our call agents responded to 95% of these calls with an average handling time of 2.3 minutes per call. Out of the 536,053 cases recorded, 302,648 were water related cases while the remainder were related to general enquiries such as billing statements, procedures on applying for new accounts, reconnection time and payment methods. Feedbacks and complaints received via other channels included 680 letters, 6,447 emails, 6,792 faxes and 4,250 text messages; of which 289 were commendations from consumers.

PUSPEL operates 24 hours a day, seven days a week and 365 days a year to attend to customers’ queries, complaints and monitor remedial actions

Briefing session with the village heads from Dengkil and Sepang

Briefing session with the Residents Association of Kota Warisan

Industrial Consumer Unit (ICU)In 2008, puSpEL’s Industrial Consumer unit (ICu) actively carried out its duties, which included sending notices, collecting and updating the ICu Database on Industrial Customer profiles, which primarily comprises the manufacturing, trading and commercial consumers, conducting water quality surveys, identifying badly-hit areas and following-up on all cases reported by industrial consumers. Our ICu Executives from the Headquarters and Districts visited a total of 2,418 industrial consumers.

Unit Kerjasama Informasi Pelanggan (YAKIN)During the year under review, YAkIn conducted 2,836 briefings, site visits and dialogue sessions with various residents’ associations and community leaders, almost double the number held in the previous year. As part of its operating procedures, SYABAS representatives are required to conduct detailed briefing sessions with residents prior to starting any pipe replacement works in the targeted areas. This is to ensure that consumers are aware of the project and cooperate with SYABAS to ensure smooth implementation of the works.


2008 annUal REPORT


Since the programme was launched in May 2007, SYABAS received only 637 applications for migration compared to the existing 2,600 bulk meter accounts. As at 31 December 2008, 50 applications involving 10,068 individual accounts were approved and the migration exercise for these accounts have been completed.

SpAn is in the process of enacting the relevant rules under WSIA, which will make it mandatory for all building managements with bulk meter accounts to apply for migration to individual meter accounts, to be enforced in 2009.

PROGRESSInG fORwaRD

Information Communications Technology (ICT)In 2008, SYABAS proactively invested in business intelligence systems with a focus on integration and workflow automation to gain efficiencies. During the year, we took several measures towards achieving operational and customer service effectiveness and compliance. This effort is in line with SYABAS Integrated Water Management Information System (SWIMS) framework initiative to enhance capabilities and competencies in five main areas, namely :-

• Supply.• Operation and Maintenance.• Billing and Collection.• Development plan Approval.• Customer Service.

As at year end, YAkIn updated the details of 8,537 Ketua Kampung/Ketua Taman/Pengerusi JKKK into its database. The purpose of this database is to facilitate the release of advance automated water interruption or water disruption notices to inform these representatives of any scheduled and unscheduled water disruptions in their respective areas.

InTEnSIfyInG EffORTS

Billing and CollectionOne of our primary growth strategies is to improve on billing and collection systems and processes in order to boost our revenue stream. As at 31 December 2008, the total number of active water supply accounts was 1,579,171, an increase of 3.5% from 1,522,384 accounts recorded in the corresponding period for the year 2007. Total billings during the year under review were recorded at rM1.395 billion, exceeding the targeted billing of rM1.394 billion by rM0.7 million. Bills collection however was rM1.396 billion, slightly below the target of rM1.409 billion. Total collection included payment received from kDEB from June till the close of the financial year under review for the first 20m³ ‘free’ water averaging rM10.5 million a month. Overall, a collection efficiency of 100% was achieved in 2008.

Total receivables for 2008 were reduced to rM162.36 million, representing a 15% reduction compared to rM191.78 million (restated) in 2007. As at 31 December 2008, Debtors’ days improved to an average of 42.49 days as compared with 52.56 days (restated) in 2007. The continuous effort by the Districts in collecting the arrears had contributed to lower Debtors’ days.

Disconnections performed in 2008 dropped by 41.3%, from 237,533 disconnections performed in 2007 to 139,441 during the year in review whilst the reconnection to disconnection ratio increased from 62% in 2007 to 83% in 2008, attributed to the improved communication between the consumers and SYABAS.

Migration of bulk meter accounts to individual meter accountsThe migration exercise by the management of condominiums, apartments and flats from bulk meter accounts to individual meter accounts had been slow.

PUSPEL emphasises on quality customer service


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annUal REPORT 2008


ICT projects introduced to enhance performance in our operations included:

• irEFunD - developed in-house, this application is an end-to-end solution that manages consumers’ refund of water service deposits requests right through to the release of refund payment. irEFunD’s built-in capabilities include electronic cross-functional workflow and integration to bridge the core systems of BASIS (Billing Systems) and Sunsystem Financial Systems, which prints control documents, monitors and tracks reports, and exports data to other tools for analysis. This has resulted in the streamlining and elimination of major variants in processing of refund payments at the ten front end processing centres; faster turn-around-time, shared data entry eliminating duplicating of records, promoting paperless initiative, reducing human errors, optimising manpower usage and reducing operational costs.

• iEnFOrCEMEnT - the Illegal Connection/Tapping

Cases Tracking and Management System was enhanced to include functions for the legal recovery process. This feature maintains continuity of the cross-functional activities through the promotion of data sharing and electronic workflow among the relevant Divisions. Similar to irEFunD, the iEnFOrCEMEnT application is optimised by integration with the Billing Systems and Customer Service Call Logging System.

• iCOLLECTIOn - a new on-line water bill payment collection data submission by SYABAS’ appointed Agents introduced to replace the existing BpnET. It is an improved version of data transfer, which provides better data submission management and tracking functions, and user interface. It also includes an automated feature to enable a scheduled data transfer function to the Collection Exchange Centre (CEC) System. This function implements full automation, which transfers the payments data to the Billing Systems, which in turn updates the consumer accounts at the scheduled time. In 2008, more than ten agents migrated to this system which reduces manual dependency and eliminates human factor issues on the internal processes.

• ipOS - a Cashier System developed for integration with the Billing Systems Consumer Master database. This feature alerts cashiers on disconnection status at the point of payment and enables SYABAS to

Utilising ICT solutions at the workplace

immediately trigger reconnection upon settlement of outstanding bills. The pilot implementation of ipOS was launched at the kuala Selangor District Office and roll-out to the other Districts is scheduled in 2009.

• eDpLAS, - a module for the property Development Water Supply Infrastructure Approval Management System that enables the Internal plumbing Approval process to be managed by electronic workflow from submission to approval.

• new Automated Meter reading (AMr) - a system introduced for major commercial consumer accounts, which utilises GprS/GSM technology with features such as remote meter management, nrW – water consumption trend analysis, and integration to the Billing System. The AMr readings channelled by the integration enables water bills to be produced on a monthly basis by the billing system. Continuous consumption data is recorded at preset intervals by the AMr and is transmitted to the meter master host server on a daily basis for consumption trend analysis whilst alert messages from the AMr enables SYABAS to act promptly should the meter encounter problems.

• In order to extend ICT central resources and facilities to users within the vicinity of SYABAS Headquarters and its extended offices, a 1 Gbps Free Space Optics (FSO), a laser technology network was implemented with cost savings in mind. Ip Telephony was implemented between these three sites so that telephone calls among the workstation phones within these three buildings are considered as internal extension calls with no charges incurred. This marked a milestone for SYABAS ICT where a common network backbone for voice and data was implemented.


annUal REPORT


2008

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a PROaCTIVE STanD

SYABAS operation Command CentreLocated on the Ground Floor of SYABAS Headquarters in Jalan pantai Bharu, kuala Lumpur, the Operation Command Centre commenced operation in September 2008.

Currently, the existing telemetry system, the operation hydraulic model being developed and some of the completed water balance master stations are incorporated in the Command Centre. The telemetry system with 238 stations located at key service reservoirs are being monitored from the Command Centre from 7.00 a.m. to 11.00 p.m. daily to detect and trigger alert signals on reservoir overflows and low reservoir levels.

By the end of 2009, the Command Centre will be fully operational when the new SCADA System is completely implemented. This will enable SYABAS to better manage water distribution. The Command Centre will also be used to trigger all related Divisions/Districts for immediate follow up action when any abnormalities or emergency situations are detected in the production and distribution of water system and also for operation planning, nrW planning and storage monitoring.

CaTalySInG GROwTH POTEnTIal

Tender and Award of ContractsIn accordance with our Client Charter, SYABAS’ contractors are expected to be efficient, deliver high quality services and carry out works of a high standard. In 2008, 125 new contractors, suppliers and consultants were registered under SYABAS’ pre-Qualification and registration of Contractors programme.

During the year, 487 contracts worth rM129.9 million were awarded to 241 contractors, suppliers and consultants for capital expenditure, operation and maintenance programmes, consultancy services and supply of goods. A total of 445 of the contracts worth rM111.2 million were awarded to Bumiputra companies registered under our Bumiputra Entrepreneurs programme or program penyertaan usahawan Bumiputra (ppuB).

The Operation Command Centre where monitoring of key service reservoirs are undertaken

Water quality sampling and testing being conducted


annUal REPORT 2008


BEyOnD MalaySIan SHORES

China has the fastest growing major economy in the world and is undergoing rapid urbanisation. As a result, its demand for potable water is increasing rapidly while the need to upgrade its wastewater and sewage facilities is urgent. China has a rural population of 730 million, of which 40% still do not have access to safe drinking water and 80% do not have sewage treatment facilities. untreated sewage is one of the factors contributing to water pollution and public health problems.

realising this, pnHB Group entered the China market in May 2008 via its 80% Singapore subsidiary company, Sino Water pte Ltd (SWpL) which focuses primarily on potential markets in China. SWpL has established various local subsidiaries in China to undertake its projects in China.

The water treatment industry in China is slated to be one of the biggest beneficiaries of the republic’s plan with rMB4.0 trillion (uSD585.0 billion) in government spending in 2009 to stimulate the economy. The government already spent rMB120.0 billion in the fourth quarter of 2008, with about 10% of the money going to energy saving and ecological projects. In 2009, rMB350.0 million or nearly 9% is planned for ecological projects with many of those projects connected to water conditions, stimulating the demand for equipment serving the water and wastewater treatment sectors in China.

Source: Frost & Sullivan Country Report 2009 - China

OPERaTIOnS REVIEw OPERaTIOnal HIGHlIGHTS: PEOPlE’S REPUBlIC Of CHIna

Ir Ooi Cheng SweeManaging Director of Sino Water pte Ltd

annUal REPORT2008


Puncak’s foray into China is timely based on the Republic’s increasing demand for potable water

Operations Review - Operational Highlights: People’s Republic of China (continued)

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OUR OnGOInG CHIna PROJECTS

Lushan Water Supply ProjectThe project, located in Lushan County, pingdingshan City of Henan province, is held by SWpL’s 83% owned China subsidiary, Luwei (pingdingshan) Water Co. Ltd.

The project involves taking over the operations and rehabilitating the Lushan Water Supply Facilities including the construction of a new 30 MLD WTp that treats water from the Zhaopingtai reservoir. The new plant will replace all existing underground water wells. Construction works commenced in november 2008 and upon completion in the fourth quarter of 2009, the plant is targeted to distribute treated water to consumers in the Lushan Township via 40 km of distribution pipelines to be laid under the project. Binzhou Wastewater ProjectSWpL’s wholly owned Chinese subsidiary, xinnuo (Binzhou) Water Co Ltd is undertaking this project, which is located in the Laodian Village of Yangxin County, in Binzhou City of the Shandong province.

The project encompasses the construction of a 30 MLD wastewater treatment plant, which is divided into two phases of 15 MLD each. Detailed design is presently ongoing after the groundbreaking ceremony for the plant was held in September 2008. upon completion of the construction by the end of the first quarter of 2010, the plant will treat wastewater from the nearby Tannery Industrial park.

other ProjectsBesides these two projects, SWpL will be acquiring a few other projects including the Luancheng Water Supply and the Yuanshi Water Supply in the Hebei province. The project companies are in the process of being transferred to SWpL, while several other potential projects for possible acquisitions have also been identified in the provinces of Henan, Hebei, Guangdong, Jiangxi and Tianjin City.

The treated water suction tank construction in progress

Coagulation tank construction in progress

Entrance of the project site in Lushan County, Pingdingshan City of Henan Province


annUal REPORT 2008

The growing population coupled with industrialisation and urbanisation in this sub-continent has resulted in increased demand for sustainable development and efficient management of water resources. This is key to economic growth and poverty alleviation, given that 70% of the population is dependent on agriculture. In the Budget 2008-2009, allotment for the rajiv Gandhi Drinking Water Mission was increased to rs 7,300 Crore. rs 200 Crore was allocated for drinkable water in the schools while rs 300 Crore was assigned for a desalination plant at Chennai for facilitating the production of clean drinking water.

pnHB is exploring potential water projects in India and pakistan.

InDIa

Chennai Project, IndiapnHB and Lanco Infratech continued to operate and maintain the Chennai Water Supply Augmentation project 1 – package III, for which the joint venture had completed the construction work in 2005. The five-year Operations & Maintenance (O&M) service contract is ongoing until January 2010.

PakISTan

Memorandum of Agreement with the Karachi Water and Sewerage Board (KWSB) and the Asian Development Bank (ADB)On 4 September 2008, pnSB entered into a Memorandum of Agreement with the kWSB and the ADB to form a voluntary partnership with kWSB through a Twinning Agreement to be implemented and financed by ADB as a South Asian Water utilities network activity as part of the Water Operators’ partnerships programme.

This collaboration enables pnSB to share its experience and assist kWSB in its mission to provide quality water supply and sanitary services in karachi, pakistan as well as to enable the exchange of knowledge, ideas and experience between both parties.

Gadilam Bridge at Chennai, India

Kanniyakoil Bridge at Chennai, India

Degremont Pulsator clarifier at Pipri Old WTP, Karachi, Pakistan

OPERaTIOnS REVIEw OPERaTIOnal HIGHlIGHTS: InDIa & PakISTan


2008 annUal REPORT

InnOVaTIVE RESEaRCH anD DEVElOPMEnT InITIaTIVES

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In both developed and developing countries, the water sector is facing serious challenges owing to overexploitation of a limited and unevenly distributed water resource. This weighs heavily on the water resource, habitats, environment and ecological systems. This scenario will be exacerbated in the future with rapid population growth and increasing urbanisation and at the end of the spectrum lie impacts of climate change such as unpredictable rainfall patterns and increasing temperatures.

The need, therefore, for proper planning and implementation of measures to minimise social, economic and environmental impacts of stress on the water resource is clearly evident.

Through research and development, the pnHB Group continuously strives to improve the quality, sustainability and reliability of Malaysia’s water supply through various projects to modernise and advance the nation’s water technology. Our r&D Team actively brainstorm and develop on ideas to further improve water operational efficiency and cost control at the WTps and the water distribution network under our responsibility.

We are in the midst of establishing the state-of-the-art puncak research and Development Centre (prDC), which will not only address current water supply and wastewater issues, but also act as a one-stop reference, solution and training centre for the industry, both in Malaysia and across the region.

In this respect, pnHB’s wholly owned subsidiary, puncak research Centre Sdn Bhd (prCSB), entered into Collaboration Agreements with DHI Denmark (DHI), a global leader in the field of water treatment on 15 March 2007 and with universiti putra Malaysia (upM) on 6 June 2008.

Besides DHI and upM, pnHB Group is looking to collaborate with other local r&D institutions and universities on projects in the water, wastewater and environment industries with the objectives of advancing technological development and competencies within the fields of water, environment and health.

Overview of the accelators at North Hummock WTP

PnSB

Since inception in 2005, our process Improvement Section (pIS) has been instrumental in generating solutions especially for improvements in water quality. These improvements are divided into four categories of short-term projects to address immediate issues and concerns, long-term projects, continuous or ongoing projects and other value-added projects. SHORT-TERM PROJECTS

Process Improvement at the North Hummock WTPThe north Hummock WTp has been encounting carry over flocs problem in the accelator type circular settling tanks resulting in the short filter running for 24 hours only. Although numerous tests and subsequent plant trials conducted showed better flocs formation at the plant, the carry over flocs problem still occurred especially during hot sunny days. In July 2008, rectification works were undertaken to address this issue but the flocs problem persisted during hot weather. As such, pIS is now exploring other options including the installation of a tube settler or lamella to improve the treatment process at the WTp.

Process Improvement at Rantau Panjang old WTPThe rantau panjang Old WTp also encountered high carry over flocs problem at its rectangular settling tanks due to its tank’s design problem. The tanks were then modified under the plant Improvement Works that was carried out in 2007. Settled water quality improved from 7 - 9 nTu to 4 – 5 nTu after modification and performance of the filter running at the plant was also improved from 48 hours to 72 hours.

annUal REPORT 2008


Innovative Research and Development Initiatives (continued)

Process optimisationAs the normal coagulant optimisation process using the conventional jar test method is time consuming, a plant trial was conducted instead using a streaming current detector, which is an instrument that can measure the net charges on particulate and coagulant surface in water on a continuous basis following coagulant addition. The plant trial conducted at the Sungai Langat WTp showed improvements in its coagulation process to reduce aluminium violation in the settled water quality, reduced coagulant consumption through optimisation and also prolonged the filter run hours from 48 hours to 60 hours.

In view of the encouraging results, SCD has been installed at the Sungai Langat, the BrH and the Batang kali WTps in September 2008 for actual plant trial. The plant trial was completed in December 2008 and indicated that the water quality met with the stringent required high standards. Given the positive outcome from the plant trial, the installation of SCD may be extended to other WTps in stages as it also contributes towards cost savings. lOnG-TERM PROJECTS

The Bukit Tampoi and the Cheras WTps have always been susceptible to high ammonia levels in the raw water and subsequently in the treated water due to lack of ammonia removal facilities at the plant. On many occasions, ammonia level in the treated water exceeded the standard value due to the extremely high ammonia level in the raw water. The source of ammonia was determined as coming from nearby industrial and domestic waste discharges and this affected the disinfection process, making it difficult to comply with the standard level of free residual chlorine or combined chlorine in the treated water leaving the plant.

A laboratory scale test was then conducted using aluminosilicate in powdered and granular forms. The

granular form was found effective in removing ammonia, thus plant trial commenced at one of the filters at the Bukit Tampoi Old WTp. results indicated that up to 63.5% or 0.47 mg/l of ammonia was removed by aluminosilicate as compared to 50% or 0.2 mg/l of ammonia removed with normal sand media. A dosing system to feed aluminosilicate into the raw water at the Bukit Tampoi Old WTp was also installed to further remove ammonia. nevertheless, the evaluation of the system could not be carried out in 2008 due to the low ammonia level in the raw water as the result of wet weather. As such, the plant trial will proceed during high raw water ammonia level that is expected to occur during dry periods.

COnTInUOUS PROJECTS

a) Alternative coagulant studiesStudies on alternative coagulants to replace alum are ongoing as alum sludge incurs high disposal cost, despite it being currently the most cost effective coagulant in terms of water treatment. Although various alternative coagulants ranging from iron based coagulants to organic coagulants that were studied were found to be less effective, the search for alternative coagulant continues especially for an environmentally friendly type. The 10 types of alternative coagulant that were studied are:-

• DB 45• DB 45 VHM• DB 45 SH• DB 45 SSH• FL 45

b) Filter performance monitoringFiltering is essentially the final step available to remove solids in a water treatment plant. pIS undertook monthly monitoring of a total of 174 filters from 29 WTps to ensure their reliability and the breakdown of filter running hours is tabulated below:-

Sedimentation tanks at Rantau Panjang Old WTP

• FL 45 C• LT 7991• C 4591• Chitosan• Ferric Chloride

filter as at as at Run length March 2005 December 2008 Category no. % no. % (hours) of filters of filters 60 - 72 7 4.0 75 44.1 40 - 60 78 44.8 67 39.4 30 - 40 50 28.7 15 8.8 ≤ 30 39 22.4 13 7.6 Total 174 100 170 100

annUal REPORT


Note : 4 nos. of filters were not in operation as they were either under repair or on standby.

2008


analyTICal

Since pnSB took over the WTps in 2005, the filter running hours were improved tremendously for the following reasons:-• Improvement on the filter operation procedures

undertaken by pIS for the Sungai rangkap, Cheras, Bukit nanas and rantau panjang Old WTps.

• Filter refurbishment works for 14 WTps under the plant improvement works that was carried out in 2007 for the Sungai Buaya, Batang kali, kkB, Sungai Tengi, Sungai Selisek, rantau panjang Old, rantau panjang new, north Hummock, Bukit nanas, Sungai rangkap, Bukit Tampoi Old, Bukit Tampoi new, Sungai Langat and Cheras Mile 11 WTps.

• Besides filter refurbishment through plant improvement works, filter refurbishment was also carried out whenever the need arose. Following the laboratory scale studies that were conducted at Sungai Sireh WTp, the filtered water quality was observed improved in terms of turbidity and aluminium when new sand was used as a filter media compared to the existing sand media. As a result, one of the filters was refurbished in August 2008 and subsequently another filter was refurbished in December 2008.

Although the number of filters with short running hours as at to-date is low, which is 13 units or 7.6%, pIS will continue to carry out monitoring and studies to improve the running hours to achieve the target of 72 hours of filter running.

c) Treated water reservoir monitoringSince 2005, pIS has been monitoring water quality at different depths at the reservoirs to ensure that high quality water is being continuously supplied to consumers. The monitoring results will determine whether flushing or reservoir cleaning is required. In December 2008, samplings were conducted at the Batang kali and Salak Tinggi WTps. results showed that there were high levels of manganese and turbidity standards at the bottom of the reservoir and hence these reservoirs have been recommended to be cleaned.

ValUE-aDDED PROJECTS

a) pIS evaluated several products that were submitted by suppliers to determine its applicability to improve treatment at WTps. Some of the products included the Azud Helix Filter, Bacstop Silva Disinfection System, EnzyBac, GuardianBlue Early Warning System, biosensor and effective microorganism. Effective microorganism technology studies conducted in collaboration with JAMOF and uTM has the potential to convert alum sludge into fertilizer and we are currently pursuing this into the next stage of studies and plant trials for onward feasibility studies at SSp2 WTp. Similarly, we are also working with ukM to evaluate the biosensor that was developed for ammonia monitoring.

b) Besides focusing on the 29 WTps operated by pnSB, pIS has also embarked on other projects that include assisting SYABAS in undertaking a plant assessment at Lembah Beringin and as a team member of the Asian Development Board’s Twining programme with the karachi Water and Sewerage Board of pakistan.

c) Abstraction of raw water from Sungai Langat Dam to Sungai Lolo (Old) WTp.

In view of the partial plant’s frequent closure due to changes in weather conditions and proximity of the WTp to the dam, pumping dam water to the WTp was proposed and implemented to mitigate shutdowns whenever raw water violations occur. This scheme is intended as a temporary measure whilst awaiting SYABAS’/SpAn’s approval to proceed with upgrading the partial WTp to a full treatment plant.

One of the filters at Bukit Tampoi Old WTP that was installed with aluminosilicate for the ammonia removal studies

annUal REPORT 2008



The commissioning of the pumping scheme has provided an alternate raw water source to the partial treatment plant and managed to keep the WTp in operation during rainy days, and mitigated water supply disruption to SYABAS and its consumers.

SyaBaS

In 2008, SYABAS embarked on the following r&D programmes:-

Energy Saving On 1 July 2008, Tenaga nasional Berhad obtained the Federal Government’s approval on the new electricity tariff, which directly impacts SYABAS’ operating cost particularly at the pumping stations. To mitigate this cost escalation, the Technical Services Division (TSD) outlined some initiatives to reduce energy costs, which involved nine key pumping stations located at Bukit Gasing, Wangsa Maju, kepong Estate, pudu Hulu, Bukit Tadun, pantai, Bukit Jelutong, Bukit Lipat kajang and Selayang. These will include several studies and reviews on the nine individual pumping stations to determine if the existing distribution system is fully optimised.

Some of the cost saving measures that SYABAS intends to undertake are increasing the diameter and capacity of the pumping mains, refurbishment of pumps and installation of Variable Speed pumping (VSp). There have been four VSp installations, which are running effectively in the Gombak District and kuala Lumpur. VSp controls the number of pumps operating during peak and off-peak periods and SYABAS will identify possible conversions from fixed speed pumping to VSp for all Districts.

Studies on installing altitude valves and conversion from top inlet to bottom inlet at the principal reservoirs are also being conducted for enhancing pumping efficiencies while methods to maintain high water levels at suction tanks are also being looked into.

Going forward, other long term initiatives will be explored that may require changes to our design Guidelines for pipes. These include:-

• the use of thermoplastic pipes as pumping mains.• the use of epoxy/polyurethane as internal lining for

mild steel and ductile iron pipes.

• The use of thermoplastic pipes particularly for pumping mains will reduce energy costs due to its smooth surface compared to concrete lined MS/DI pipes.

With the use of other materials such as epoxy and polyurethane for internal lining for MS and DI pipes, the friction loss can be greatly reduced due to high value of friction factor. Friction loss can be reduced by as much as 56% if thermoplastic pipes or epoxy/polyurethane lined MS/DI are used for pumping mains hence saving pumping costs.

ABS Air Insertion PointThe current air insertion point for cleaning of reticulation pipes using air-scouring, is made of stainless steel (SS304). Since it has commercial value, it is susceptible to theft. The new air insertion point for air scouring purposes is made of plastic material using ABS with a pressure rating of pn16. It has no commercial value and is durable and long lasting. It will also be housed in a small chamber complete with a cover.

annUal REPORT


Laboratory testing on water quality

2008

We are responsible in the

way we conduct our business

operations and will remain

focused on our responsibilities

and commitment to our

community and

stakeholders. In our pursuit

of business expansion,

we are ever mindful of

environmental preservation as we journey

on as a society and a nation

to achieve the agenda of

attaining the aspirations of

Vision 2020.

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WORKPLACE

MARKETPLACE

COMMUNITY OCCUPATIONAL HEALTH & SAFETY

QUALITYENVIRONMENT

OUR MISSIOn

• Our corporate mission provides active support and participation in programmes that uplift the community’s living standards and value systems in line with the aspirations of Vision 2020.

• We are committed to addressing national and international concerns, pertaining to the protection, conservation and enhancement of the natural environment.

• We seek to manage our business responsibly and sensitively, with the objective of making a difference in the lives of people around us.

CORPORaTE RESPOnSIBIlITy

COMMITTED


annUal REPORT 2008

Corporate responsibility (Cr) at pnHB Group is not a programme – it is integral to the value system that has shaped the conduct of our business since our inception. As we expand our existing businesses and enter new markets, we will continue to be economically, socially and environmentally responsible by managing all aspects of our businesses for sustainable performance.

We seek to improve relationships with our various stakeholders and support communities and individuals who are underprivileged. As a committed and responsible corporate citizen, we will support an exemplary workforce and embrace their involvement in the various activities within the Group and the communities in which we operate. We will seek to make an impact that is distinctive, far reaching and inspiring for all our people as we build our corporate responsibility strategy that focuses on the workplace, Marketplace, Environment and Community in line with the nation’s agenda on Cr.

We are therefore pleased to share this report with you.

2008 annUal REPORT


Our people are united by a common purpose – to enhance and sustain the built, natural and social environments in which we operate to achieve a common purpose. as our employees are the pulse of our business, we will continue to provide learning and development opportunities and invest in building an exemplary workforce. we seek to provide a positive work-life balance through recognition of achievements, improved work environment, and a sense of reward through merit, as this encourages loyalty, improved productivity, generation of ideas and the creation of talent powerhouse. we respect the diversity of cultures represented by our employees and constantly motivate them to continually develop and leverage on their individual potential. Driven by our PUnCak Values, our people’s dedication, commitment and professionalism enables the Group to meet the challenges of today and tomorrow amidst a rapidly changing global business environment.

BUIlDInG a DynaMIC wORkPlaCE

Our in-house magazine, Buletin Kita

• For normal working days, the rate was increased from rM20.00 to rM30.00 for work in excess of 2 hours.

• For more than 4 hours of work carried out on a public Holiday, the rate was increased from rM90.00 to rM100.00.

Waiver of Employees Quarters Rental for Sungai Sireh WTPIn order to be consistent with the practice in other WTps operated by pnSB, the rental of quarters, which were imposed on the employees of the Sungai Sireh WTp, was waived in May 2008. rental charges amounting to rM12,690.00 that were charged from August 2007 to April 2008 to the 11 employees were refunded to them.

Employees Relocation AllowancepnSB approved the payment for relocation and related allowances amounting to rM25,225.00 to the 15 employees that were affected by the upgrading works on the quarters at the WTps.

Our employees are the driving force behind our success

In 2008, pnHB Group attracted 369 new talents to add to its pool of competent personnel. As at 31 December 2008, the Group’s total employees’ strength grew to 4,188 from 4,148 in 2007, which includes 73 employees from our China operations, marking an increase of 40 employees from the preceding year.

REwaRDInG OUR EMPlOyEES

As the Group grows, so does its workforce. With heightened business and operational activities in 2009, our people are the key to successfully meeting the challenges posed by growth and expansion. pnSB offers a comprehensive Employee Benefits package that exceeds basic requirements. These include insurance coverage, housing and loan subsidies, interest-free education assisted loans and also computer and personal loans. Our employees and their dependants enjoy medical benefits that cover outpatient treatment, hospitalisation and surgical and maternity expenses for a maximum of up to 5 surviving children.

In 2008, we introduced the following benefits:-

Increase of Stay Back Meal AllowanceWith effect from August 2008, the stay back meal allowance for pnSB’s executive employees was increased to streamline with the allowances provided by SYABAS, as follows:-


annUal REPORT 2008

COMMITTED

Building a Dynamic workplace (continued)

Clothing Allowance during overseas AssignmentsIn January 2008, pnSB approved the winter clothing allowance for up to a maximum of rM1,500.00 to employees who carry out official assignments in temperate countries during winter. The claim for the allowance must be accompanied with official receipts and is limited to once in every three years.

RECOGnISInG OUR EMPlOyEES’ SUPPORT

In instilling employees’ loyalty, SYABAS added on more benefits such as a 15% employer’s contribution for the Employees provident Fund for employees remaining after two years in service, a 4% interest on housing loan subsidy, education loans and employees retirement benefits. In addition to this, SYABAS organises appreciation dinners themed Majlis Jasamu Dikenang for its retired employees, Employees Excellence Award by Districts and a merit bonus on top of the annual bonus for employees with outstanding performance.

BOOSTInG OUR wORkfORCE

Training and development remains a key strategy in developing a dynamic workforce to compete effectively in an evolving business environment. In view of this, the thrust of training is on developing a workforce that is capable of meeting the challenges of a knowledge-based economy so as to enhance the productivity and competitiveness of the organisation. At the same time, the training system will be oriented in such a way that knowledge, skills and expertise acquired can support and lead the Company in its Vision of becoming a Leading and Dynamic Integrated Water Services Company.

In 2008, pnSB expended rM459,882.57 on local and overseas training programmes for a total of 697 employees.

18 March 2008 SYABAS presented its employees with Insurance Compensation Benefits at a ceremony held at Dewan Bunga raya at the kuala Lumpur District Office

23 february 2008A Chinese new Year Celebration was held to enhance rapport amongst our employees

27 february 2008pnSB’s financial aid to policeman,

Lance Corporal David Duwin kalong@ Mohd Edwin Abdullah

for his medical treatment which was received by his wife

26 January 2008pnSB’s Training Department and Strategic resources Centre conducted a Saturday Encounter programme entitled ‘Water Engineering - What’s next?’ at Wisma rozali

18 March 2008The national Water & Sanitation Workshop held at Wisma rozali to keep employees abreast with the current developments in the water industry

2008 annUal REPORT



pnSB’s training policy is aimed at obtaining the commitment of the Management and individuals to work with the Training Department to identify the types of training to fill competency gaps and to improve performance.

Our training programmes incorporate the following methods:-

• Formal training such as courses, workshops, seminars, conferences and programmes conducted in-house or externally.

• Informal training such as coaching, mentoring and other forms of “on-the-job” training.

• Self-paced-learning through the use of the facilities and resources currently available at pnSB such as the Strategic resource Centre.

The guiding principles for our training policy are for all employees to be given equal learning and development opportunities and to conscientiously apply what they have learnt at the workplace.

At SYABAS, our emphasis on human resource development during the year was on ethics and principles to assist us in gaining recognition and respect in the water industry. As a testament to achieving this objective, SYABAS was awarded with a Certificate of recognition at the Malaysian Business Ethics Excellence Awards 2008 held on 11 november 2008. During the year, SYABAS conducted a number of courses aimed at increasing the knowledge and skills of its workforce. SYABAS spent rM326,396.61 to train a total of 2,420 employees on the following:-

• Leadership and Development programmes. • Motivation courses to instil loyalty, commitment and

improve employees performance. • Courses on functional knowledge for assignment

competency enhancement.

SUPPORTInG naTIOn BUIlDInG

The internship or industrial training programme at pnHB Group is a key component of our business growth strategy. For over ten years, the Group has supported institutes of higher learning by providing placements for students for internship or industrial training. Based on their field of studies, successful candidates are placed at various Departments and Divisions within the Group, complementing academic studies with on-the-job training. Besides offering exposure to technology and innovation in the water industry, the programme is an excellent platform for interns and trainees to tap into the expert resources available in the Group, thus obtaining relevant job-skills industrial training. The programme also increases commercial awareness of the water industry and develops the much-needed interpersonal skills of the trainees. As the leading and dynamic integrated water services company in Malaysia, we will continue to contribute towards building a talent pool that is professional and knowledgeable to further support and develop the water industry in Malaysia.

International Conference & Expo on Environmental Management and Technologies at Putra World Trade Centre (PWTC) Kuala Lumpur

26 May 2008Training session in progress for pnSB’s employees

30 July 2008Induction programme for new recruits at SSp2 WTp


annUal REPORT 2008


COMMITTED

Instilling Good work Culture with BUDAYA KERJA SYABASIn an effort to instil a sense of good working culture amongst SYABAS’ employees, the Training Department drew up a 10-point Work Culture or Budaya Kerja SYABAS programme. posters featuring the Budaya Kerja SYABAS were distributed to all Divisions and Districts to continuously reinforce these values.

29 July 2008SYABAS’ Industrial relations Department conducted an in-house training to brief the appointed 32-member panel on the legal aspects and rules and regulations of proceedings

30 October 2008SYABAS conducted a training session on ‘How to Deal with and Combat Sexual Harrasment at the Workplace’ for members of the Sexual Harassment Committee

16 august 2008pnSB’s employees attended the Advanced Training for 4-wheel drive at Hutan ulu Bernam, Selangor

Instilling Good Telephone Ethics through ETIKA TELEFoN BERKUALITI ProgrammeThrough the Etika Telefon Berkualiti programme introduced in February 2008, SYABAS’ employees were exposed to the correct ways of answering telephone calls and to treat both internal and external callers as customers. Briefings were given to representatives from Divisions and District Offices before the programme was widely publicised via SYABAS’ eMesra Infonet.

Tips Maju Dalam KerjayaThe Training Department prepares informative career development articles on motivation and self development in powerpoint slides, which are then posted on SYABAS’ Infonet and also emailed to all employees. The aim of Tips Maju Dalam Kerjaya or Tips for a Successful Career is to share information and enhance employees’ knowledge.

23 July 2008Training was conducted for pnSB’s employees on Customer Service and Service Excellence

2008 annUal REPORT



20 October 2008An appreciation ceremony was held at the Hotel nilai, negeri

Sembilan for employees of SYABAS and the State Water

Supply Authorities’ in recognition of their assistance rendered during

the Code red Emergency response plan (Erp) in the Sepang District

24 October 2008pnSB’s Corporate Affairs Division held its Hari raya Aidilfitri Open House at their office in Wisma rozali

6-8 June 2008 SYABAS took the opportunity to create awareness on its activities in the Industrial Career Exposition 2008 organised by unISEL, which was held at the kompleks Belia & kebudayaan, Shah Alam, Selangor

19 September 2008pnSB hosted a Majlis Berbuka Puasa for its employees at Wisma rozali

21 June 2008pEkA organised a badminton tournament held at puchong

16 august 2008The closing of Karnival

Mini Sukan PEKA 2008 was held at pusat

pengurusan Sukan petronas (pErMATA) in

Bangi, Selangor

27-29 March 2008SYABAS held an exhibition in conjunction with upM’s Career Carnival held at the Dewan Besar, universiti putra Malaysia. YBhg Tan Sri Dato’ Dr nayan Arifin, the pro Cancellor of upM officiated the event

3 May 2008Our employees who participated at the Workers Day 2008 Celebration held at Stadium putra Bukit Jalil, kuala Lumpur


annUal REPORT 2008

COMMITTED

ValUInG RElaTIOnSHIPS In THE MaRkETPlaCE

PNHB’s and SYABAS’ websites and PNHB’s Annual Report are effective communication tools to keep stakeholders abreast with current affairs of the Group

Press advertisements to inform the public on water supply disruptions or improvement works

During the year, our various stakeholders were kept informed of our development, business activities and social programmes via a myriad of communication channels, meetings and social events. We actively build on the existing professional, trustworthy and caring relationships with our employees, customers, shareholders, business partners, government authorities, agencies and non-governmental organisations (nGOs), the media, business and financial analysts and the public at large through planned and targeted programmes and activities throughout the year.

Throughout 2008, we expanded our Company’s Social Environment Awareness programme and continued to highlight the impact of pollution and the pressing need to preserve our water resources under our Factory Visit programme. To contend with the public’s lack of concern towards defending water pollution, we also supported and participated in several exhibitions and programmes organised by government and non-governmental organisations. Besides this, our Turun Padang Bersama Media programme, which is aimed at strengthening our media relationship management, allowed for media practitioners to experience our activities first-hand.

For our shareholders, investors and the financial community, the framework for Investor relations (Ir) has been implemented to notify them about our financial performance and corporate developments. These and other corporate announcements are available via our website and are updated simultaneously on Bursa Malaysia’s website. We also conduct regular briefing sessions for financial and business analysts, fund managers and the media to update them with the Group’s latest developments.

puSpEL has three dedicated departments, the Contact Centre, Industrial Customer unit (ICu) and YAkIn (Unit Kerjasama Informasi Pelanggan) that function as convenient and effective communications channels for our domestic and industrial

customers. In addition, Counter Service is also available where employees work hand-in-hand with consumers to act expeditiously on feedback and complaints.

Another key area in our marketplace is our Bumiputra Entrepreneurs programme (Program Penyertaan Usahawan Bumiputra) or ppuB, which was formed to support and develop local contractors. In 2008, rM111.2 million worth of contracts were awarded to the companies under this programme.

we are dedicated towards earning the trust from our consumers by being a reliable provider of clean water. we have implemented ethical and responsible business practices in the delivery of our services to the consumers. we will continue to invest and intensify efforts to introduce new technologies, innovations and systems in the water industry.

2008 annUal REPORT


Valuing Relationships in the Marketplace (continued)

9 January 2008Members of the media were

brought on site to Jalan u-Thant, kuala Lumpur to witness the Trenchless pipe replacement

Method as part of SYABAS’ Turun Padang Bersama Media programme

28 January 2008The Crisis Management Centre

(CMC) was activated due to the scheduled shutdown of Bukit nanas WTp to allow

pipe diversion and valve replacement the installation of

inflow meters near the Duta-ulu kelang (DukE Highway)

highway project

15 april 2008In conjunction with

SYABAS’ Water Quality programme, a Turun Padang

Bersama Media in which officials from the Ministry of Health was held at SS7,

kelana Jaya, Selangor

19 april 2008A prize giving ceremony was held for SYABAS’ Customer

of the Month programme for the period from January to March 2008 at plaza Alam

Sentral, Shah Alam

22 September 2008The Corporate

Communications Department of pnSB organised a Majlis

Berbuka Puasa Bersama Media Biro Shah Alam at Siriwan

restaurant, Shah Alam

2 august 2008SYABAS’ Customer of

the Month prize Giving Ceremony for the months of April to June 2008 was held at plaza Alam Sentral, Shah

Alam, which also included a children’s category

1 March 2008In conjunction with the Program

Kaunter Aduan Bergerak organised by the public Complaints

Bureau of the prime Minister’s Department at Selayang Mall,

SYABAS held an exhibition complete with a Customer

Service Counter for the public

22 & 23 January 2008In conjunction with the

Deepavali Celebration at Mahamariaman Devastanam

Temple, Batu Caves, SYABAS set up an exhibition and

Customer Service Counter for devotees. The event was officiated by YB Dato’ Seri

Samy Vellu, the former Minister of Works

17 January 2008Officials from SYABAS

paid a visit to Sinar Harian to foster a closer

rapport with members of the media

Documents

About the Cover - malaysiastock.biz was due to changes in the projected revenue of SYABAS following the yearly review at the end of 2007 and 2008