TA Enterprise Berhad ( M) Annual Report Fostering Aspirations and Dreams

Transcription

1 TA Enterprise Berhad (194867M) Annual Report 2010 Fostering Aspirations and Dreams

2 Corporate Directory TA ENTERPRISE BERHAD 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel: Fax: TA CAPITAL SDN. BHD. 14th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : TA INVESTMENT MANAGEMENT BERHAD 23rd Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : TA FUTURES SDN. BHD. 32nd Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : SWISSOTEL MERCHANT COURT 20 Merchant Road Singapore Tel: (65) Fax: (65) TA SECURITIES (HK) LIMITED Room 1203, 12/F Tower One, Lippo Centre 89 Queensway Hong Kong Tel: Fax: TA SECURITIES HOLDINGS BERHAD 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : IPOH BRANCH 1st Floor, Plaza Teh Teng Seng 227 Jalan Raja Permaisuri Bainun Ipoh, Perak Darul Ridzuan Malaysia Tel: Fax: KOTA BHARU BRANCH 298, Jalan Tok Hakim Kota Bharu Kelantan Darul Naim Malaysia Tel: Fax: KUCHING BRANCH 2nd Floor, Bangunan Binamas Lot 138, Section 54, Jalan Padungan Kuching, Sarawak Malaysia Tel: Fax: SIBU BRANCH 12G, Jalan Kg Datu Sibu, Sarawak Malaysia Tel: Fax: SUBANG JAYA BRANCH 21, 22, 23, & 42, Jalan USJ 9/5T Subang Business Centre UEP Subang Jaya Selangor Darul Ehsan, Malaysia Tel: Fax:

3 Table of Contents 03 Notice of Twentieth Annual General Meeting 04 Statement Accompanying Notice of Annual General Meeting 06 Corporate Information 08 Directors Profile 14 Chairman s Statement 21 Corporate Social Responsibility 24 5year Group Financial Summary 26 Segmental Analysis 28 Statement on Corporate Governance 35 Report on Audit Committee 38 Statement on Internal Control 41 Statement on Directors Responsibility in Relation to Financial Statements 41 Directors Report 45 Statement by Directors 45 Statutory Declaration 46 Independent Auditors Report 47 Consolidated Balance Sheet 48 Consolidated Income Statement 49 Consolidated Statement of Changes in Equity 50 Consolidated Cash Flow Statement 52 Balance Sheet 53 Income Statement 53 Statement of Changes in Equity 54 Cash Flow Statement 56 Notes to the Financial Statements 145 List of Properties held by TA Enterprise Berhad Group 148 Analysis of Shareholdings Form of Proxy Implementation of Electronic Dividend Payment

4 Governed by Integrity At TA Group we place the utmost importance in the integrity of every individual that we employ or deal with. We strive to practice integrity in all our actions, decisions, practices, policies and procedures. This relates to both internally within the organization as well as externally to all parties that we deal and associate with.

5 Notice of Twentieth ANNUAL GENERAL MEETING Notice is hereby given that the Twentieth Annual General Meeting of TA Enterprise Berhad will be held at the Auditorium, 10th Floor, Menara TA One, 22 Jalan P. Ramlee, Kuala Lumpur on Wednesday, 23 June 2010 at 2:00 pm for the following purposes: AGENDA AS ORDINARY BUSINESSES 1. To receive and adopt the Audited Financial Statements for the year ended 31 January 2010 and the Reports of the Directors and Auditors thereon. Resolution 1 2. To approve a first and final dividend of 2.5% less taxation for the year ended 31 January Resolution 2 3. To reelect the following Directors: (a) Dato Sri Mohamed Bin Abid who retires by rotation in accordance with Article 102 of the Company s Articles of Association. Resolution 3a (b) Pn Zainab Binti Ahmad who retires by rotation in accordance with Article 102 of the Company s Articles of Association. Resolution 3b (c) Mr Peter U Chin Wei who retires by rotation in accordance with Article 102 of the Company s Articles of Association. Resolution 3c (d) Mr Yaw Chun Soon who retires by rotation in accordance with Article 109 of the Company s Articles of Association. Resolution 3d 4. To approve the payment of Directors fees of RM 120, for the year ended 31 January Resolution 4 5. To reappoint Messrs Ernst & Young as Auditors of the Company to hold office until the conclusion of the next Annual General Meeting and to authorise the Directors to fix their remuneration. Resolution 5 AS SPECIAL BUSINESS 6. To consider and if thought fit, to pass the following ordinary resolution: THAT subject always to the Companies Act, 1965, the Articles of Association of the Company and the approvals of the relevant government/regulatory authorities, the Directors be and are hereby empowered pursuant to Section 132D of the Companies Act, 1965 to further allot and issue ordinary shares in the Company from time to time upon such terms and conditions and for such purposes as the Directors may deem fit provided that the aggregate number of shares to be allotted and issued pursuant to this resolution does not exceed ten percent (10%) of the total issued share capital of the Company in any one financial year and that such authority shall remain in force until the conclusion of the next Annual General Meeting of the Company. Resolution 6 7. To transact any other business of which due notice shall have been received. NOTICE OF DIVIDEND ENTITLEMENT NOTICE IS HEREBY GIVEN THAT the first and final dividend of 2.5% less taxation for the year ended 31 January 2010, if approved by the shareholders at the Company s Twentieth Annual General Meeting, will be paid on 29 July 2010 to members whose names appear in the Company s Register of Members at the close of business on 30 June A depositor shall qualify for entitlement only in respect of: 1. Shares transferred to the depositor s securities account before 4.00 p.m. on 30 June 2010 in respect of ordinary transfers; 2. Shares deposited into the depositor s securities account before p.m. on 28 June 2010 (in respect of shares exempted from mandatory deposit); and TA Enterprise Berhad Annual Report

6 Notice of Twentieth ANNUAL GENERAL MEETING 3. Shares bought on the Bursa Malaysia on a cum entitlement basis according to the Rules of Bursa Malaysia Securities Berhad. BY ORDER OF THE BOARD Kimmy Khoo Poh Kim (LS 04542) Yong Kim Kiong (MIA 19777) Agnes Lim Boon Yoke (MAICSA ) Secretaries 1 June 2010 Notes: 1. A member entitled to attend and vote at this meeting is entitled to appoint a proxy or proxies (but not more than two) to attend and vote in his stead. A proxy may but need not be a member of the Company and if he is not a member, he neednot be an advocate, an approved company auditor or a person approved by the Companies Commission of Malaysia for this purpose. 2. The Form of Proxy, in the case of an individual, shall be signed by the appointer or his attorney and in the case of a corporation, shall be given under its common seal or signed on its behalf by an attorney or officer of the corporation so authorised. 3. Where a member appoints more than one proxy, the appointment shall be invalid unless he specifies the proportion of his holdings to be represented by each proxy. 4. The Form of Proxy must be deposited with the Share Registrar of the Company at Tricor Investor Services Sdn Bhd (formerly known as Tenaga Koperat Sdn Bhd) at Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur not less than fortyeight (48) hours before the time appointed for holding the meeting or any adjournment thereof. 5. Explanatory Note on Special Business: This is the renewal of the mandate obtained from the members at the last Annual General Meeting ( the previous mandate ). The previous mandate was not utilised and accordingly no proceeds were raised. The proposed Ordinary Resolution No. 6, if passed, will empower the Directors of the Company to issue and allot shares in the Company up to an amount not exceeding ten percent (10%) of the issued capital of the Company for the time being. This authorisation will provide flexibility to the Directors to undertake fund raising activities, including but not limited to placement of shares for the funding of the Company s future investment projects, working capital, acquisitions and/or implementation of Employees Share Option Scheme by the issuance of shares in the Company to such persons at any time as the Directors may deem fit, without having to convene a general meeting. This authority unless revoked or varied at a general meeting will expire at the next Annual General Meeting of the Company. Statement Accompanying Notice of Annual general Meeting 1. THE DIRECTORS WHO ARE STANDING FOR RE ELECTION Dato Sri Mohamed Bin Abid Pn Zainab Binti Ahmad Mr Peter U Chin Wei Mr Yaw Chun Soon 2. DETAILS OF ATTENDANCE OF DIRECTORS AT BOARD MEETINGS There were five (5) Board of Directors Meetings held during the financial year ended 31 January The attendance of the Directors at the Board Meetings is presented in the Statement of Corporate Governance on page PLACE, DATE AND HOUR OF MEETING Date : Wednesday, 23 June 2010 Time : 2.00 p.m. Place: The Auditorium 10th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur 4. PROFILE OF DIRECTORS STANDING FOR RE ELECTION Further details pertaining to Directors standing for reelection are outlined on 8 to 13 of the Annual Report. Details pertaining to the Directors interest in the securities of the Company and its subsidiaries are outlined on pages 43 to 44 and 148 of the Annual Report. TA Enterprise Berhad Annual Report

7 Encouraging Innovation In TA Group, it is our culture to constantly encourage a progressive work environment where new ideas, inputs, opinions and suggestions are highly cherished and favored.

8 Corporate Information BOARD OF DIRECTORS Datuk Tiah Thee Kian NonIndependent NonExecutive Chairman Datin Tan Kuay Fong Managing Director & Chief Executive Officer Zainab Binti Ahmad Executive Director Yaw Chun Soon Executive Director Dato Sri Mohamed Bin Abid NonIndependent NonExecutive Director Peter U Chin Wei Independent NonExecutive Director Jory Leong Kam Weng Independent NonExecutive Director Christopher Koh Swee Kiat Independent NonExecutive Director Rahmah Binti Mahmood Independent NonExecutive Director COMPANY SECRETARIES Kimmy Khoo Poh Kim (LS 04542) Yong Kim Kiong (MIA 19777) Agnes Lim Boon Yoke (MAICSA ) REGISTERED OFFICE 34th Floor, Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel : Fax : AUDIT COMMITTEE Peter U Chin Wei Chairman Jory Leong Kam Weng Member Christopher Koh Swee Kiat Member SHARE REGISTRAR Tricor Investor Services Sdn Bhd (118401V) (formerly known as Tenaga Koperat Sdn Bhd) Level 17, The Gardens North Tower Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur Tel : Fax : AUDITORS Ernst & Young STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad STOCK CODE 4898 TA Enterprise Berhad Annual Report

9 Governed by Excellence We at the TA Group define excellence as the neverending, uncompromising pursuit of doing things better. We believe that excellence is not a standard or level of competency; excellence is the desire of wanting to get better, to grow, to expand, to achieve and to progress. It is the uncompromising commitment to move forward and get better in everything that we do.

10 Directors Profile YG BHG Datuk Tiah Thee Kian NonIndependent NonExecutive Chairman Yg Bhg Datuk Tiah Thee Kian, aged 63, a Malaysian, is the NonIndependent NonExecutive Chairman of TA Enterprise Berhad. He holds a Bachelor of Science from University of Malaya and a Master in Business Management from Asian Institute of Management, Philippines. He started his career as a manager of Malaysian International Merchant Bankers Bhd from year 1972 to year He then joined Credit Leasing Corporation Sdn Bhd as an Executive Director from year 1978 to He joined Othman & Ng Sdn Bhd as a General Manager in September In January 1988, he initiated the change of name of Othman & Ng Sdn Bhd to TA Securities Sdn Bhd to reflect the change of management. Subsequently, he was appointed as its Managing Director in November 1988 and Executive Chairman in July He is the substantial shareholder and cofounder of TA Enterprise Berhad. In 1990, he initiated the public listing of the stockbroking business of TA Securities Sdn Bhd under TA Enterprise Berhad and took over the helm as the Executive Chairman and Managing Director of TA Enterprise Berhad in October 1990, a position that he held until May On 16 August 2007, he resumed his position as the Executive Chairman of TA Enterprise Berhad and is primarily responsible for the overall direction of TA Enterprise Berhad. He was then redesignated as the NonIndependent NonExecutive Chairman of TA Enterprise Berhad on 5 October 2009, a position he holds todate. He is the visionary leader of TA Enterprise Berhad Group.Armed with a vision in developing a Malaysian onestop supermarket of financial products and services, he propelled TA Enterprise Berhad s extraordinary growth in retail broking and in a short period of 5 years, TA Enterprise Berhad s turnover grew to RM1.2 billion in 1995 and became one of the largest retail broker in Malaysia. In the midnineties, he embarked TA Enterprise Berhad Group into property development and was instrumental in amassing the strategic land banks and investment properties of TA Enterprise Berhad. He has spent a major portion of his time in nurturing, developing and transforming the property development and property investments activities of TA Enterprise Berhad and was instrumental in the demerger of the financial services and property business of TA Enterprise Berhad to improve the execution capacity of the property business in pursuing its strategies in a more focused way. Under the stewardship and leadership of Yg Bhg Datuk Tiah, TA Group became a dynamic and diversified conglomerate with businesses in stockbroking, asset and unit trust management, futures and derivatives trading, credit lending, hotel operations, property development, property management and property investments spread over Malaysia, Canada, Australia, Hong Kong and China. He also sits on the Board of TA Global Berhad, a public listed company and a number of companies within the TA Global Berhad Group. He is the Chairman of the Company s Group Investment Committee. He is the husband of Yg Bhg Datin Tan Kuay Fong, Managing Director & Chief Executive Officer of the Company. He has attended all five of the Board Meetings held during the financial year. He is deemed interested in the Share Purchase Agreement dated 11 March 2010 entered into between TA Enterprise Berhad and TA Global Berhad for the proposed disposal of the entire issued shares of Quayside Gem Limited, a company incorporated in Mauritius, comprising 50,569,495 ordinary shares of US$1.00 each for a consideration of RM651,831,492 to TA Global Berhad, by virtue of him being a Director and substantial shareholder in both the Company and TA Global Berhad. On 10 May 2002, he was convicted in the Sessions Court in Shah Alam, Selangor for permitting the furnishing of a false report on share prices to the Kuala Lumpur Stock Exchange and was fined RM3,000,000.00, which he paid on the same day. TA Enterprise Berhad Annual Report

11 Directors Profile YG BHG Datin Tan Kuay Fong Managing Director & Chief Executive Officer Yg Bhg Datin Tan Kuay Fong, aged 59, a Malaysian, is the Managing Director & Chief Executive Officer of TA Enterprise Berhad. She holds a Bachelor of Economics (Honours) Degree and a Post Graduate Diploma in Accounting from the University of Malaya. She is the cofounder of TA Enterprise Berhad. She started her profession as a Remisier in In 1983, she was one of the pioneer founders of A.T. Securities Sdn Bhd, the first stockbroking company to be established in Shah Alam. She was a Director in A.T. Securities Sdn Bhd from 1983 to In December 1987, she joined TA Securities Sdn Bhd and was appointed the Managing Director of TA Securities Berhad in July In June 2003, she resigned from the Board of TA Securities Berhad to concentrate more on the property investments and other business activities of the TA Enterprise Berhad Group. She was appointed as Executive Director of TA Enterprise Berhad on 13 March 1990 and subsequently on 10 May 2002, she was appointed as its Executive Chairman. She was then redesignated as Managing Director & Chief Executive Officer of TA Enterprise Berhad on 16 August 2007, a position she holds todate. She now continues to impart her business acumen and skills to the growth and development of TA Enterprise Berhad s financial services business. She was instrumental in the growth and development of TA Enterprise Berhad s financial services businesses during its formation years. In the 1990s, Yg Bhg Datin Tan revolutionised the stock broking business of TA Enterprise Berhad by taking the bold step to build up its IT infrastructure and employed IT programmers and system analysts to design and tailor specific back office IT systems and controls to provide its remisiers and clients with a more efficient platform to trade with greater accuracy and efficiency. She was also instrumental in developing the proprietary trading activities of TA Enterprise Berhad, expanding its retail market, building up its remisiers/dealers base to enlarge its retail clientele and to expand its business. She has over 25 years of senior management experiences in stockbroking, derivatives and property management. Her experience and expertise incorporate strategic planning, initial business setup, operations planning and implementation, international business expansion and overall business management. She also sits on the Board of TA Global Berhad, a public listed company and a number of companies within the TA Group. She is the Chairperson of the Company s Tax Planning Committee and Information Technology Management Committee and a member of the Company s Group Investment Committee and Option Committee. She is also an advisor to the Stockbroking Management Committee. She is the wife of Yg Bhg Datuk Tiah Thee Kian, NonIndependent NonExecutive Chairman and a substantial shareholder of the Company. She has attended all five of the Board Meetings held during the financial year. She is deemed to have vested interest in the Share Purchase Agreement dated 11 March 2010 mentioned in Yg Bhg Datuk Tiah s profile, by virtue of her being the spouse of Yg Bhg Datuk Tiah and she also holds directorship in both the Company and TA Global Berhad. TA Enterprise Berhad Annual Report

12 Directors Profile the Boards of TA Centre Berhad and Asian Outreach (M) Berhad, public companies; TA Foundation, a charitable public company established by TA Enterprise Berhad and a number of companies within the TA Enterprise Berhad Group. He is the Chairman of the Company s Stockbroking Management Committee, TA Investment Management Committee and Futures Management Committee. He is also a member of the Company s Option Committee, Risk Management Committee, Group Investment Committee, Proprietary Trading Investment Committee, Corporate Governance Committee and Information Technology Management Committee. He has attended all the Board Meetings held after his appointment as Executive Director till the end of the financial year. Mr. Yaw Chun Soon Executive Director Mr Yaw Chun Soon, aged 48, a Malaysian, is the Executive Director of TA Enterprise Berhad. He holds a Bachelor of Law from University of Canterbury, New Zealand. In 1987, he was called to the Malaysian Bar and practiced law as an Advocate & Solicitor of the High Court of Malaya. His legal practice experience was mainly in the areas of corporate, commercial and property. In November 1993, after 6 years of law practice, he left to join TA Securities Berhad as Senior Manager of the Legal Affairs Department, a position which he held until May His scope of responsibilities extended to providing legal advice to the TA Group of Companies. In May 1996, he was appointed as General ManagerOperations of Botly Securities Sdn Bhd, a whollyowned subsidiary of TA Enterprise Berhad and subsequently in November 1997 as the Executive Director of Botly Securities Sdn Bhd. From May 1998 till October 1998, he was the Corporate Finance Director of TA Bank of the Philippines, Inc. Thereafter, from November 1998 to July 1999, he was the Assistant General Manager and subsequently the General Manager of TA Securities Berhad. On 19 November 1999, he was appointed to the Board of TA Securities Berhad. Subsequently with the merger of the four stockbroking companies, he was appointed the Executive Director Operations of TA Securities Holdings Berhad, a public company on 14 August 2004, a position he held till 6 October 2009 and he then resumed his position as Executive Director Operations of TA Securities Holdings Berhad on 28 December He was then appointed to the Board of TA Enterprise Berhad as Executive Director on 7 October 2009, a position he holds todate. He has been a Committee Member of the Association of Stockbroking Companies in Malaysia ( ASCM ) since 2000 and the past President of ASCM for four years. He also sits on Puan Zainab Binti Ahmad Executive Director Puan Zainab Binti Ahmad, aged 58, a Malaysian, is the Executive Director of TA Enterprise Berhad. She holds a Bachelor in Business Administration Degree from the Institut Teknologi Mara/University of Ohio. She started her career in June 1983 with A.T. Securities Sdn Bhd as the General Manager. She then joined TA Securities Sdn Bhd as Director in December 1987 till October She was then appointed as Executive Director of TA Enterprise Berhad on 13 March 1990, a position she holds todate. She also sits on the Boards of TA Global Berhad, a public listed company; TA Centre Berhad, a public company which is a whollyowned subsidiary of TA Enterprise Berhad and a number of companies within the TA Enterprise Berhad Group. She has attended all five of the Board Meetings held during the financial year. TA Enterprise Berhad Annual Report

13 Directors Profile He also sits on the Board of TA Global Berhad, a public listed company and a number of companies within the TA Global Berhad Group. He has attended all five of the Board Meetings held during the financial year. Yg Bhg. Dato Sri Mohamed Bin Abid NonIndependent NonExecutive Director Yg Bhg Dato Sri Mohamed Bin Abid, aged 67, a Malaysian, is the NonIndependent NonExecutive Director of TA Enterprise Berhad. He studied Business Management at The MARA Institute of Technology and was admitted as a Member of the British Institute of Management. He was conferred the award of Sri Sultan Ahmad Shah Pahang by His Royal Highness the Sultan of Pahang in October 2008, that carries the title Dato Sri. He started his career as a Shipping Executive and was later promoted to Manager in P & O Steam Navigation Co. Ltd, Singapore & London from year 1964 to year In year 1974, he joined MISC Coastal Services Sdn Bhd, a whollyowned subsidiary of MISC Berhad as Marketing Manager and was promoted to Director/Chief Executive Officer in 1980, a position he held till Subsequently, he was appointed Chief Executive Officer of MISC Agencies Sdn Bhd until year In 1987, he was appointed as Managing Director of East & West Maritime Sdn Bhd. In 1989, he established JB Distripark Sdn Bhd and held the position of Executive Director. He then joined the Board of TA Enterprise Berhad as Executive Director on 1 July He was redesignated as the NonIndependent NonExecutive Director of TA Enterprise Berhad on 5 October 2009 and holds the position todate. He is also the Chairman of Advisory Board of Tesco Stores (Malaysia) Sdn Bhd since He has extensive experience in the shipping industry and has held various senior positions, both locally and abroad. Over the years, his established network of local and international business contacts have been invaluable to the growth and development of the TA Group. In addition, he has also actively been involved in building the corporate as well as public image of the TA Group of Companies. Mr. Peter U Chin Wei Independent NonExecutive Director Mr Peter U Chin Wei, aged 59, a Malaysian, is the Independent NonExecutive Director of TA Enterprise Berhad. He is a Fellow of the Institute of Chartered Accountants in England and Wales. Before returning to Malaysia, he worked in the London office of Coopers and Lybrand (now known as PricewaterhouseCoopers). Upon his return to Malaysia in 1977, he worked for Inchcape Malaysia Sdn Bhd, YTL Group and he joined the MUI Group in 1980 until 1989 as General Manager. He joined the Board of AsiaPac Bhd (formerly known as Pegi Malaysia Berhad) as an Executive Director in 1989 until Thereafter, he joined TA Enterprise Berhad as an Executive Director in October 1990 until October Subsequently, he was appointed as an Independent NonExecutive Director of TA Enterprise Berhad on 15 July 1999, a position he holds todate. He also sits on the Boards of TA Global Berhad and Kumpulan Europlus Berhad, public listed companies and Asian Outreach (M) Berhad, a public company. He is the Chairman of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He has attended all five of the Board Meetings held during the financial year. He is deemed interested in the Sale and Purchase Agreement dated 26 May 2009 entered into between TA First Credit Sdn TA Enterprise Berhad Annual Report

14 Directors Profile Bhd, a subsidiary of the Company as the purchaser and Europlus Corporation Sdn Bhd as the vendor for the acquisition of a vacant commercial land held under title no. Geran 54344, Lot 15207, Bandar Serendah, Daerah Ulu Selangor, Negeri Selangor Darul Ehsan, measuring approximately acres for a cash consideration of RM44,890, a position he holds todate. He also sits on the Boards of TA Global Berhad, a publicy listed company; Asian Outreach (M) Berhad and Pusat Penyayang KSKA, public companies. He is a member of the Company s Audit Committee, Nomination Committee, Remuneration Committee and Corporate Governance Committee. He has attended all five of the Board Meetings held during the financial year. Mr. Jory Leong Kam Weng Independent NonExecutive Director Mr Jory Leong Kam Weng, aged 46, a Malaysian, is an Independent NonExecutive Director of TA Enterprise Berhad. He graduated with a Bachelor of Economics Degree and a Bachelor of Laws Degree from Monash University, Australia. He is a Certified Public Accountant of CPA Australia and a Chartered Accountant of the Malaysian Institute of Accountants. He is also a certified mediator on the panel of the Malaysian Mediation Centre. He was called to the Malaysian Bar in In February 1992, he joined TA Enterprise Berhad as the Group Legal Manager until July He was the Vice President of International Division of TA Enterprise Berhad from November 1993 to October Between November 1995 to February 1997, he held the position of General Manager / Director of Credit Leasing Corporation Sdn Bhd. He also held the post of Executive Director of TA Bank of Philippines, Inc from March 1997 to June From June 1998 to July 1999, he was the Chief Executive Officer of TA Securities Berhad. Since July 1999, he has been a Partner of Messrs Iza Ng, Yeoh & Kit as a practising Advocate and Solicitor. He is also a Director of Spring Hill Management Sdn Bhd, a venture capital management corporation registered with the Securities Commission. He was then appointed as Independent Non Executive Director of TA Enterprise Berhad on 19 May 2003, Mr. Christopher Koh Swee Kiat Independent NonExecutive Director Mr Christopher Koh Swee Kiat, aged 42, a Malaysian, is the Independent NonExecutive Director of TA Enterprise Berhad. He graduated from the University of Malaya in 1992 and was called to the High Court of Malaya as an Advocate and Solicitor in March He also holds an ACCA postgraduate diploma in Accounting and Finance. He was previously attached with the Corporate Department of Messrs Chooi & Company. Thereafter, he joined TA Securities Berhad as Assistant Manager in November He was appointed the Head of Legal Affairs Department in November He has negotiated and prepared the legal documentation for the various overseas ventures of the company including a bank and stockbroking companies in various countries. He was also the Company Secretary of The Chase Manhattan (M) Berhad (now known as JP Morgan Chase). In 2001, he was the Vice President for MasterCard International in its Asia Pacific regional office in Singapore. He joined Messrs Chris Koh & Chew (formerly known as GH Tee & Co), Advocates & Solicitor in October He was appointed to the Board of TA Enterprise Berhad as Independent NonExecutive Director on 24 May 2006, a position he holds todate. He also sits on the Board of TA Enterprise Berhad Annual Report

15 Directors Profile TA Global Berhad, a public listed company. He specialises in corporate, commercial and finance matters including merger and acquisitions, corporate restructuring, joint ventures, corporate finance, listing of companies, private equity acquisition and matters relating to aviation laws. Now also an Independent NonExecutive Director of the Company, his scope of responsibilities includes extending legal advice and assisting in the acquisition of business interests on behalf of the Company. He is a member of the Company s Audit Committee, Nomination Committee and Remuneration Committee. He has attended all five of the Board Meetings held during the financial year. Being the Independent NonExecutive Director of the Company, Mr Christopher Koh declared his interest as a partner in Messrs Chris Koh & Chew, the solicitors involved in providing legal advice for the acquisition of TA Properties Sdn Bhd, Sanjung Padu (M) Sdn Bhd, Wales House Trust and Taman Duta Residences by the Company. Messrs Chris Koh & Chew are also the solicitors appointed for the corporate exercise involving the Proposed Reorganisation, Proposed Listing of TA Global Berhad on the Main Board (now known as Main Market) of Bursa Malaysia Securities Berhad, Proposed Capital Distribution and Proposed Amendments to the Memorandum and Articles of Association of the Company. She started her own automotive spares manufacturing company, Malaysian Automotive Lighting Sdn Bhd ( Malaysian Automotive ) about 20 years ago in Penang with Robert Bosch Gmbh as the initial partners and later with Magnetti Mirelli of Italy. Malaysian Automotive is now a global manufacturing partnership with Automotive Lighting Reutlingen Gmbh, Germany, manufacturing automotive head lamps and rear lamps for companies such as Proton, Perodua, Suzuki, Mazda and other international car manufacturers and currently she is the Director and shareholder of Malaysian Automotive Lighting. She is also the Chairman and Managing Director of Syarikat Mahmood Ambak & Sons Sdn Bhd since 1988, a trading company supplying automotive spares to the Ministry of Defence of Malaysia and the Royal Police Force of Malaysia for the last 20 years. She was then appointed to the Board of TA Enterprise Berhad as an Independent NonExecutive Director on 16 August 2007, a position she holds todate. She has also diversified her business dealings into Independent Environmental Monitoring and sits on the Board of Spanfield Sdn Bhd and Clearwater Towers Sdn Bhd, an environmental company. Currently, she is looking into being involved in renewable energy such as solar energy and other manufacturing concerns in Malaysia through a company Solarah Sdn Bhd. She has over 25 years of experience in business management, contract negotiations and manufacturing practices. She also has assisted the Malaysian government in bringing in foreign investment into the country especially in the field of manufacturing. She also sits on the Boards of TA Global Berhad, a public listed company and TA Investment Management Berhad, a public company which is 70% owned by TA Enterprise Berhad. She has attended four of the five Board Meetings held during the financial year. Notes : 1. Family Relationship of Directors Save as disclosed, none of the directors has any family relationship with any director and/major shareholder of the Company. Puan Rahmah Binti Mahmood Independent NonExecutive Director Puan Rahmah Binti Mahmood, aged 52, a Malaysian, is the Independent NonExecutive Director of TA Enterprise Berhad. She graduated with a double Bachelor of Science degree in both Marketing and Mass Communications from Syracuse University, New York. She also obtained a Master in Journalism (PR) from the University of Southern California (USC). 2. Conflict of Interest Save as disclosed, none of the Directors has any conflict of interest with the Company. 3. Conviction of Offence Save as disclosed, none of the Directors has been convicted of any offence in the past 10 years. 4. Interest in Securities The particulars of the Directors interest in securities of the Company are set out in pages 43 to 44 and 148. TA Enterprise Berhad Annual Report

16 Chairman s Statement On behalf of the Board of Directors of TA Enterprise Berhad ( TAE ), it gives me the utmost pleasure to present to you the 20th Annual Report and Financial Statements of the Company and the Group, for the financial year ended 31 January FINANCIAL REVIEW The Group reported a profit before tax of RM145 million, which was 7.8% higher than RM134.5 million for the financial year ended The better profits are attributed to robust capital market activities and commendable performance from all operating divisions, namely Property Investment, Hotel, and Credit and Lending. The Property Development division was also profitable, although the division lagged behind the preceding year s performance. The Group s net profit attributable to shareholders was stable at RM95 million despite an 18.3% contraction in revenue due to Property Development and a 184.5% surge in interest expense. Earnings per share fell to 5.94 sen from 6.44 sen in the previous financial year, pursuant to the issuance of million new shares after warrant holders exercised their rights. Nonetheless, the internal restructuring and separate listing of its property arm improved the Group s return on shareholders equity to 6.2% in the financial year 2010 from 4.5% in the previous year. The Broking and Financial Services division benefited from the 45.2% rally in the FTSE Bursa Malaysia Kuala Lumpur Composite Index ( FBM KLCI ) to 1,272.8 points, and 63% expansion to million shares in Bursa Malaysia Securities Berhad s ( Bursa Malaysia ) average daily volume. As a result its net operating profit before Foreign Exchange ( FOREX ) gains/losses, unallocated corporate expenses, finance costs and income tax expense ( Net Operating Profit ) surged 65% to RM65 million. This is approximately 40% of the Group s Net Operating Profit. The positive vibes in the equity market and broader economy contributed to the Credit and Lending division s better performance as demand for various types of financing rose. This division contributed RM11.1 million or 6.9% of the financial year ended 2010 s RM161.2 million operating profit. This is a commendable turnaround for the division compared to a net operating loss of RM51.5 million in financial year On the real estate front, the Net Operating Profit contributions from the Property Investment division increased to RM20.3 million, while the Hotel division saw a 51% improvement in Net Operating Profits. The Property Development division, which benefited from the Idaman Residence project last year, had a 72.5% contraction in this year s operating profit due to the completion of the above mentioned project, and lack of new launches. Nonetheless, there are planned new launches from 2010 onwards which will set the foundation right for a strong earnings growth in the years ahead. DIVIDEND The Board is recommending a first and final dividend of 2.5% less taxation, which translates into a payout ratio of 40% of the group s profit after tax ( PAT ) excluding TA Global Berhad s ( TAG ) PAT. However, it includes 60% of the final dividend receivable from TAG for the financial year In tandem with the aforesaid proposed dividend, the Company revised its existing dividend payout policy of 40% to 60% of the Group s PAT to 40% to 60% of the Group s PAT excluding TA Enterprise Berhad Annual Report

17 Chairman s Statement TAG s PAT. However, includes 40% to 60% of the total dividend income receivable from TAG for the same financial year. TAG, a subsidiary of TAE which is listed on the Main Market of Bursa Malaysia, has its own dividend policy 20% to 50%. OPERATIONS REVIEW AND DEVELOPMENT STOCKBROKING Malaysia During the financial year under review, TA Securities Holdings Berhad ( TASH ) recorded a net operating profit of RM57.4 million, representing 111% growth, from RM27.2 million in the previous financial year. The FBM KLCI regained 45.2% to close the year at 1,273 after falling 39.3% to 877 in 2008 following the US housing and financial crisis, and also hitting its year s low for 2009 at 838 points in March We will continue to practice prudent risk management whilst striving forward to enhance our products to be competitive, and improve our market share. During the year, income from trading in foreign equities and proprietary trading increased by 409.3% and 310.0% respectively compared to the previous year. The implementation of edividend by 3rd quarter of 2010 by Bursa Malaysia will allow the Central Depository System ( CDS ) account holders to receive their dividends by way of a direct credit into their bank accounts and also the Electronic Share Payment ( ESP ) by mid2010 by Bank Negara Malaysia ( BNM ) will promote cashless settlement in the stockbroking industry. In line with our expansion plans, we will be opening a branch in Petaling Jaya by the 2nd quarter of 2010 to cater for our clients and remisiers staying in the vicinity. The Remisiers Mobility system will be implemented by the 2nd quarter of year 2010, whereby our remisiers will be able to execute orders for clients while they are out of the office. It will be a onestop system for our remisiers to execute all trades and access back office information, charts and research reports. Hong Kong TA Securities (HK) Limited ( TAHK ) posted a lower Net Operating Profit of HK$13.1 million from HK$17.1 million in the previous year. The decline was mainly attributed to the decrease in trade volumes on Hong Kong and overseas stocks by TAHK, as well as interest income on margin financing and term deposits on the back of volatile market sentiment, and lower interest rate environment. Following the deepening of the global economic downturn in late 2008, the local market tumbled further in the 1st quarter of year 2009 with the Hang Seng Index hitting a low of 11,345 points for the year in midmarch The local market posted a strong rebound subsequently, tracking the rally in global stock markets, which were boosted by economic and financial stimulus measures introduced by governments, and central banks around the world. Strong inflow of foreign funds also underpinned the local market. The local benchmark surged 7,485 points during the year of 2009 to close at 21,872 points. Competition in the local securities industry has deepened in recent years. More Mainlandbased financial institutions have established their presence in Hong Kong to handle their Mainland clients overseas investments and fund raising activities for stateowned enterprises. Currently, more than 460 Exchange Participants are actively involved in daily dealing activities. Given their strong Mainland background together with their solid financial position, it is anticipated that the market share for localbased brokerage would contract further in the coming years. In order to face the challenges ahead, TAHK will proceed with the launch of internet trading in the current year to cater for the Mainland clients, apart from the launch of estatement and the enhancement of our backoffice system. The recent enlargement of the Closer Economic Partnership Arrangement scheme between Mainland of China and Hong Kong provided little support to the local securities industry. This is due to the high threshold for settingup joint financial advisory service companies in the Mainland. However, TAHK will continue to look for opportunities to expand our services in the Mainland in the future. Unit Trust and Asset Management For the financial year ended 31 January 2010, TA Investment Management Berhad ( TAIM ) had total assets of RM722 million, being a combination of unit trust funds and direct mandate portfolios under its management. TA Asia Pacific Islamic Balanced Fund ( TAIB ) garnered the EdgeLipper Fund Award 2010 as the best performing fund of its category Mixed Asset MYR Balanced Global, 3 years, for the year ended 31 December The Fund has outperformed its peers in the same category. This award is a reflection of the capability and experience of our fund managers who have built a commendable track record in managing Islamic funds in foreign markets. The market appears to have reached a reflection point with a mix of positive and negative news flows generally indicating that the economy is recovering. However, investors remained cautious given the global economic uncertainty, but are still holding positions. TAIM capitalised on the current lull to launch two innovative products to provide investors with an opportunity to receive potentially consistent returns regardless of market conditions. TAIM launched two new Funds, namely TA AllCycle Commodities Income Fund ( TAACCI ) and TA Select Titans In Asia Capital Protected Fund ( TASTIA ). TAACCI is an open TA Enterprise Berhad Annual Report

18 Chairman s Statement From left: Mr. Choo Swee Kee, Mr. Wong Mien, Datin Alicia Tiah, Mr. Siaw Wei Tang (MD of Opus Asset Management Sdn Bhd), Encik Hisham Abdul Rahim, Executive Director BNP Paribas Islamic Asset Management Malaysia Sdn Bhd launching TA BRIC and EM fund. ended fund, which primarily invests in Malaysian fixed income securities inclusive of money market instruments to provide regular income and stability of capital. The Fund also attempts to maximise potential returns by investing in a structured product with performance linked to the CYD Market Neutral Plus 5 TR Index ( CYD Index ). The CYD Index is designed for investors who want a commodity investment which is largely independent of the movements in spot prices and wish to enter into both long and short positions, thus be classified as a market neutral strategy. Market neutral strategies are effectively seeking consistent performance through all market cycles. cater to the different financial needs and objectives of investors. TAIM aspires to leap to greater heights of success through concerted and sustained effort. It is confident of achieving its niche in this increasingly competitive industry. TAIM will continue to increase the number of branches to serve the growth of institutional unit trust advisers, and unit trust consultants for efficient distribution of products and services to investors. Derivatives TA Futures Sdn Bhd ( TAF ) has once again been declared as a winner for the Top Commodity Futures Broker Award for 2009 TASTIA is a 5year closeended capital protected fund which aims to provide annual returns throughout the Fund s life even when the market is flat, as well as keeping the initial investment intact upon maturity regardless of market conditions. The Fund primarily invests in a 60month Ringgit Malaysia denominated Zerocoupon Negotiable Instruments of Deposits ( ZNIDs ) issued by Malaysian banks of investment grade rated at least AA by RAM or equivalent to provide capital protection upon maturity. The Fund also invests in an overthecounter option designed to provide potential annual returns benchmarked against the performance of selected reference companies whose securities are listed on international equity markets, and whose businesses are exposed to the growth of the Asian economies. As at the financial year end, TAIM has a total of eighteen unit trust funds under its management, of which five are Shariahcompliant funds and the remaining thirteen are conventional funds. The Funds are invested in both the local and international markets by an experienced investment team, and From left: Ms Vivien Loh, Mr Choo Swee Kee and Mr Wong Mien of TA Investment Managemenet Berhad holding the EdgeLipper Fund Award at the awards presentations ceremony on 23 February 2010 at Kuala Lumpur Convention Centre, KLCC. TA Enterprise Berhad Annual Report

19 Chairman s Statement by Bursa Malaysia Derivatives Berhad. With the exception of 2006, TAF has been the Top Commodity Futures Broker from 2003 to The prospects of the derivatives market in Malaysia remains positive especially in palm oil futures as it is now one of the world s largest traded edible oil. The company foresees a bullish year ahead with the approval for local futures brokerages to trade in foreign currencydenominated derivatives (other than currency contracts) on overseas specified exchanges. Credit and Lending For the financial year under review, TA First Credit Sdn Bhd ( TAFC ) and TA Capital Sdn Bhd ( TAC ) provided Employees Share Option Scheme ( ESOS )/Inital Public Offer ( IPO ) financing, property loan, short term loan and share financing. These two subsidiaries generated a Net Operating Profit of RM11.1 million. The Net Operating Profit was mainly contributed by income from ESOS/IPO financing, gains on disposal of other instruments and writeback of provisions for impairment loss on other investments and financial receivables. Having established our presence in the share financing business, TAC will continue to be active in ESOS/IPO financing. With more corporate action in the capital market, we anticipate greater financing business activities going forward. TAC will also continue to increase its business revenue by providing term loan financing and mezzanine financing to assist companies requiring short term and medium term loans for working capital and business expansion. PROPERTY DIVISION Business Reorganisation and Listing of TA Global Berhad In year 2009, TAE has undertaken a reorganisation exercise, which involves the disposals of its property assets to TAG and the spinoff of the latter on the Main Market of Bursa Malaysia. The assets disposed involved TA Properties, Sanjung Padu, Wales House Trust, Taman Duta Residences and Westin Melbourne to TAG for RM1.75 billion, to be satisfied via 2.3 billion ordinary shares and 1.2 billion irredeemable convertible preference shares ( ICPS ) of TAG. Thereafter, TAE has subscribed to the rights issue of TAG shares totaling 270 million worth RM135 million. The reorganization also involved capitalisation of intercompany loans wherein 1 billion ordinary shares were issues to TAE. To facilitate the listing of TAG, TAE declared the distribution of up to 1 billion TAG ordinary shares and 1 billion ICPS by way of dividendinspecie on the basis of 3 TAG shares together with 3 TAG ICPS for every 5 existing TAE shares held. At the same time, TAE proposed offer for sale of up to 460 million TAG shares, comprising up to 90 million offer shares for the Malaysian public, 360 million offer shares for the Ministry of International Trade and Industry ( MITI ) approved bumiputera institutions and investors, and 10 million offer shares for eligible directors, employees and business associates, at an offer price of RM0.50 each. On 23 November 2009, TAE has successfully listed TAG on the Main Market of Bursa Malaysia. TAE is still the major shareholder of TAG with 70% stake. Property Development The soft macro economic conditions made financial year 2010 a trying period for the property development division. The division s revenue contracted by 66.4% to RM97.6 million while operating profit dipped by a corresponding 72.5% to RM45.4 million as the highly profitable residential development project in Idaman Residence had been completed and handed out to purchasers at the beginning of the financial year while demand for highend properties in Kuala Lumpur City Centre ( KLCC ) area was poor. Lack of interest from foreign and local investors and a 15% to 20% drop in property prices around the area were the key contributing factors for the weaker performance. However, there had been some improvements in the demand for landed properties and our projects in Damansara Idaman. Idaman Villas also received reasonably good response from local buyers in the past few months. With the improvements in the demand for properties from local buyers, we believe that our developments in Damansara Avenue and Dutamas, which cater to the middle and uppermiddle class market will be well received. As part of the long term expansion plan for the property division, we are actively looking for land banks in strategic locations which are suitable for the local market, as we are of the opinion that the local market is more resilient. Going forward, we are targeting some commercial and residential projects in attractive locations to increase our Gross Development Value and improve earnings. Some of these projects are: 1) Mixed Commercial Development at Sri Damansara Damansara Avenue, which is a freehold mixed development within a 48 acres site which will ultimately become a suburban town centre, that provides a living and working community within a well managed environment. From left: Mr. Christopher Koh, Ms. Kimmy Khoo, Dato Sri Mohamed Bin Abid, Datuk Tiah Thee Kian, Datin Alicia Tiah, Puan Rahmah Binti Mahmood, Puan Zainab Binti Ahmad and Mr. Jory Leong Kam Weng officiating the launch of the listing of TA Global on the Main Market of Bursa Malaysia TA Enterprise Berhad Annual Report

20 Chairman s Statement The lifestyle retail office suites and the first parcel of residential apartments are scheduled to be launched in the second half of year ) Mixed Commercial Development opposite KLCC Mixed Commercial Development opposite KLCC on 2.27 acres freehold commercial land that is strategically located opposite KLCC. This project is designed with two 50storey towers comprising of a 5star hotel, serviced apartments and luxury residences. The serviced apartments and luxury residences components are scheduled to be launched in year 2012, and we expect to commence the construction by the end of year ) Condominium Development at Dutamas A Condominium Development at Dutamas that will comprise of 396 apartment units with sizes ranging from 900 to 2,400 square feet. The target launch for this project is year ) Mixed Commercial Development in Bukit Bintang Nova Square, which consists of a 5star hotel, one block of fashionable luxury residences, a gradea office building and a lifestyle podium comprising alfresco food & beverage outlets, a banquet hall and boutique shop units. 5) Boutique Residential Development at Jalan UThant Boutique Residential Development at Jalan UThant that offers stylish luxurious living with a highly sought after address in Kuala Lumpur. This development is scheduled to be launched in year Besides local developments, the Group s subsidiary TAG has also created a new milestone for the Group by pursuing property development in Canada. Known as The Garden, it entails a mixed multifamily housing and commercial development on a piece of land measuring approximately 22 acres in the City of Richmond, South of City of Vancouver, British Columbia, Canada. The proposed development will take 7 years to complete and will open up a new income stream from abroad. PROPERTY INVESTMENTS Despite the sluggish global economic environment, the Property Investment division reported a 4% increase in revenue to RM43.2 million while operating profit surged 35.2% to RM20.3 million, thanks to a higher occupancy rate at all properties under management, including Canada. Menara TA One opposite the iconic Petronas Twin Towers saw a 4 percentage point increase to 92% in year 2010 while our units at USJ Taipan and Subang Business Centre boasts 100% occupancy rate. Terasen Centre in Canada is a performer too, hitting 99.3% overall occupancy. For the financial year ending 2011, we will undertake a comprehensive refurbishment of Menara TA One that will justify an increase in rental rates. HOTEL OPERATIONS With the additional contributions of our 3 new hotel properties in Canada, Australia and Singapore for the financial year 2010, the revenue contribution from hotel operations surged 104.2% in financial year This year, we acquired the Westin Melbourne which is an award winning fivestar hotel in Melbourne. In fact, the transaction was hailed as the most outstanding acquisition of the year in Australia in an international property conference. The purchase was at the low of the market, and it is poised for future appreciation when the property market improves in Melbourne. Since our acquisition of the Hotel, the Australian currency has appreciated substantially in our favour. Realising the need to expand recurring income, TAE has expanded its business reach in this region by acquiring the entire issued shares of Quayside Gem Limited ( QGL ) for S$260 million. QGL owns 100% of the equity in Merchant Quay Pte Ltd, which is the registered owner of the hotel and business of Swissôtel Merchant Court Singapore ( Swissotel ). The global economic recession as well as the H1N1 pandemic in year 2009 had a negative impact on the hotel performance in Singapore due the decline of visitor arrivals and subsequent price wars. These factors did not dampen the spirit of our staff as Swissôtel implemented aggressive cost saving measures to mitigate a drop in profit margin. Improved service levels and increased guest satisfaction have contributed in raising our Revenue Generation Index ( RGI ) position within the Competitive Set from 95.4 in the previous year in the same period to The government s budgetary initiatives, which included Job Credit Grant and training funds, cushioned the negative impacts as well. In the first half of year 2010, the hotel performance in Singapore was positively affected by two major biannual events (Singapore Air Show and Food & Hotel Asia). However, a substantial increase in supply of hotel rooms in the second half of year 2010 due to the opening of Resorts World on Sentosa and Marina Bay Sands that will have 4,300 rooms in total and the expiry of government budgetary initiatives by mid 2010 could heighten the level of uncertainty in the hospitality industry for the remainder of year PROSPECTS AND OUTLOOK The world has started seeing blue skies again in 2010 as equity market sentiment is generally upbeat across the globe. The Dow Jones Industrial, which is one of the most closely watched US index barometers, is hovering around 11,000 points on expectation of a favourable economic outlook. This is a view also shared by the US Federal Reserve chairman who is more upbeat now that the US economy will see moderate economic growth over the next few quarters. The same upbeat sentiment was reflected by Malaysia s other key export markets like China and Singapore which are already engaging restraining measures to prevent their economies from overheating, and stroking inflationary pressures. The good mood is echoed in other Asia TA Enterprise Berhad Annual Report

21 Chairman s Statement Pacific countries as well, which is an optimistic indication of a broadbased economic recovery. Nonetheless, worries about the widening sovereign debt crisis in the Euro region has been a temporary dampener on global equity markets in early May. It is our view that wisdom will prevail, and world leaders and central banks will play their role to ensure that whatever efforts put in reviving the global economy so far will not be put to waste. Belt tightening by China and the unwinding of US dollar carry trades are other shortterm concerns that could haunt the market, but they are not expected to affect the underlying economic recovery. Thus, it can be concluded that the worst of the global economic meltdown two years ago is now behind us. Malaysia s Gross Domestic Product ( GDP ) had rebounded strongly in the fourth quarter of 2009, lifting the economy from a recession after a consecutive Year Over Year ( YoY ) contraction for three quarters. The rebound was driven by a reversal in external demand after four quarters of contraction and expansion in private investments. Based on trade figures and inputs from exporters, external demand recovery is gaining momentum and is likely to contribute strongly to Malaysia s 2010 GDP, which could exceed the government s official forecast of between 4.5% and 5.5%. Private consumption and investment indicators have troughed and are showing signs of further expansion, in tandem with improving domestic and external demand. There has been a notable increase in the vehicle sales numbers, private consumption, loans and activities in the capital market. The growth in private investment indicators, especially the rebound in imports of capital and intermediate goods is a good leading indicator of future exports growth. Sensing that growth momentum will pick up and inflationary pressures could kickin in the months to come, BNM may continue to normalize the Overnight Policy Rate, which has been raised by 50 basis points (bps) to 2.5%. Another 25 bps point increase is expected in 2010 and BNM may continue raising rates until it reaches the 3.5% threshold, the level in November 2008 before it starts cutting rates, potentially by mid2011. This would increase expectation of continued appreciation in the Ringgit visàvis the US dollar until the interest rate in the US starts playing catch up with the rest of the world, possibly from the fourth quarter of year 2010 onwards. Thus, the likelihood of an increase in shortterm inflows of foreign funds is bright, and could provide more room for expansion in the benchmark index as well as market activities. A gradual increase to this level is not expected to stifle loan growth. The banking sector is expected to benefit from this increase due to margin expansion. With underlying factors turning positive and appearing sustainable, corporate earnings growth is expected to be robust in year 2010 that will lead to greater activities in the capital market. This is positive for our financial services. The broadbased global economic recovery is also positive for our real estate and hospitality business. The demand for our upmarket property development is expected to be strong when the new TAE s newly acquired hotel in Singapore, Swissôtel Merchant Court Singapore. launches are done for residential and commercial projects, while our hotels are expected to enjoy higher occupancy and strong demand for space for organizing events and corporate functions. ACKNOWLEDGEMENT On behalf of the Board, I would like to express our greatest appreciation to all our valued shareholders, business partners, clients, financiers and all government authorities for your support and trust in our Group. I also wish to thank our remisiers, agents, management team and staff of the TA Group for their commitment and invaluable contribution that have seen us through the good and difficult years. Last but not least, I would like to record my appreciation to every board member of TAE and its subsidiaries for your advice, guidance and support throughout the year. Datuk Tiah Thee Kian NonIndependent NonExecutive Chairman TA Enterprise Berhad Annual Report

22 Dedicated to Corporate Social Responsibility At the TA Group, we have a heart for social responsibility and believe that we can make an impact to not only the community but globally as the world is becoming seamless and our organization has a vision to become a diversified global conglomerate that will have a presence in every region and impact these regions accordingly

23 Corporate Social Responsibility For many years, we believe that CSR has become the centre of our Company culture, part of our business model and one of the five core values embedded in TA. Our initiatives extend towards local and global communities, and its human resources. Corporate Social Responsibility ( CSR ) in TA Group is in line with Bursa Malaysia s CSR requirements. However, CSR is not just a set of ethical values that we do for marketing or compliance purposes. For many years, we believe that CSR has become the centre of our Company culture, part of our business model and one of the five core values embedded in TAE. Our initiatives extend towards local and global communities, environmental conservation and its human resources. TA S CORPORATE SOCIAL RESPONSIBILITY TO THE COMMUNITY TAE has always been making charitable donations, organising fund raising activities and providing various forms of services to the poor and needy in order to improve their quality of life. We believe that making a difference is part of our company s values by taking into consideration the responsibilities to our stakeholders, customers, employees, the environment, the communities and other members of the public sphere. TA employees painting an ocean theme mural wall of the children s playroom at the Pediatric Ward of Hospital Batu Gajah, Perak Refurbishment of children s playroom at the Pediatric Ward, Hospital Batu Gajah, Perak On 25 April 2009, 39 staff and 3 remisiers from TAE Ipoh Branch refurbished the children s playroom at the Pediatric Ward of Hospital Batu Gajah, Perak. Some of the child patients were terminally ill and were undergoing continuous treatment at the hospital. To brighten and cheer the children at the hospital, the employees of TAE painted an ocean theme mural on the internal and external walls of the playroom, installed new carpets, provided new furniture, redecorated the place and allocated new books and toys for the children. The newly refurbished children playroom provided a comfortable and fun environment for the young patients. Cheer Party for terminally ill children at Hospital University Sains Malaysia Continuing our CSR heritage, on 10 May 2009, 29 staff from TAE Kota Bharu branch organized a cheer party for child patients at the Hospital University Sains Malaysia. The children were given food and drinks, coloring books, stationeries, balloons and a mascot to brighten up the children s day. The staff also presented the Pediatric Ward with new children storybooks for the child patients to read in the library. Cheer Party organized by TA employees for terminally ill children at Hospital University Sains Malaysia TA Enterprise Berhad Annual Report

24 Corporate Social Responsibility Charity Premier Screening of Disney s A Christmas Carol In the same month, TA organized a charity premier screening of A Christmas Carol at TGV cinema in Suria KLCC on 14 November TA managed to raise a net amount of RM40, from the two shows of the premier screening. The proceeds received from the ticket sales were in aid of the following beneficiaries: 1. Persatuan Penyayang Nur Iman 2. Praise Emmanuel Children s Home 3. Sanctuary Care Centre 4. Bridges EIP Centre for Children with learning disabilities 5. Persatuan Kristian Shuang Fu Alicia Loh Charity Dinner, book sales, and golf tournament. On 18 December 2009, TAE in conjunction with Delta Trend Golf and Leisure Holidays Sdn Bhd organized the Alicia Loh Medical Fund charity dinner at the Six Happiness Restaurant, Selayang. The charity dinner was to help raise funds for Alicia Loh, a 13yearold girl who was diagnosed with Spinal Muscular Atrophy Type 2. We successfully raised total funding of RM60, at the charity dinner to bless Alicia Loh and contribute to her medical fund. From left: Ms. Sally Tan, Mr. & Mrs. Loh,, Alicia Loh, Datin Alicia Tiah, and Datuk Tiah Thee Kian at the Alicia Loh Charity Dinner TAE continued their charity work for Alicia Loh on 26 March 2010 by organizing a charity golf tournament at Templers Park Country Club. Approximately RM30,000 was raised at the charity golf tournament in support of Alicia Loh s medical fund. TAE has also helped raise funds for Alicia Loh by promoting sales of her novel The Last Chapter via poster advertisements to other tenants at Menara TA One, announcements to employees, speeches at special gatherings and company newsletters. TAE s effort in promoting her books helped sold 240 books, contributing RM3,600 worth of book sales. TA Group of employees posing for TA Family Day 2010 at Desa Water Park TA S CORPORATE SOCIAL RESPONSIBILITY TO ITS HUMAN RESOURCES TA Family Day 2010 On 24 April 2010, TAE organized a fun family day event at Desa Waterpark for its employees and their respective family members. The objective of the family day is to improve family ties, boost employee relations, and create a work and life balance. Approximately 600 employees and their family members were given whole day access to the park with wet and dry telematch games, food and drinks, prizes, mascots, sand art, inflatables, and balloon shaping clowns. Red Team s victory in Water Tug of War at TA Family Day 2010 held at Desa Water Park TA Enterprise Berhad Annual Report

25 Focused on People In TA Group, is our culture to constantly encourage a progressive work environment where new ideas, inputs, opinions and suggestions are highly cherished and favored.