Annual Report 2011 Puncak Niaga Holdings Berhad EXPANDING HORIZONS

Transcription

1 EXPANDING HORIZONS ANNUAL REPORT A

2 Expanding Horizons Despite the challenges surrounding the water industry in Selangor, 2011 was a year of significant and positive development for Puncak Niaga Holdings Berhad ( PNHB ) Group a year in which we crossed new frontiers. During the year, the Group embarked into the Oil & Gas arena with the acquisitions of two sizeable oil and gas entities. In addition, our business operations continued to expand beyond the confines of the Klang Valley with a new project in Sarawak. We remained wholeheartedly committed to our stakeholders, to society and the environment, and during the year, we implemented new CSR initiatives while vigorously pursuing existing ones. The dove symbolizes renewal of life and a sign of hope, peace and love. In this design, the blue color represents our business of providing clean water, green is CSR and red is the new and vibrant oil and gas revenue contributor to PNHB Group s bottomline. 15 th Annual General Meeting Date 26 June 2012 (Tuesday) Time am Venue Concorde 1 Concorde Hotel Shah Alam, Level 2 No. 3, Jalan Tengku Ampuan Zabedah C9/C Shah Alam Selangor Darul Ehsan

3 Our Mission Our Vision To Be A Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector. To meet the increasing challenges in the demand for high quality water supply, wastewater and environmental systems through the continuous implementation of high quality standards, efficient services, human capital development, innovative technologies and operational systems. To share our experience and offer our expertise through Smart Business Partnerships, Public Private Partnerships or other innovative business models. To actively participate in local, regional and global business opportunities with linkages to the Company s core activities, waste water & solid waste management, environment management and oil & gas sectors. 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 To address national and international concerns pertaining to the protection, conservation and enhancement of the natural environment we live in.

4 Table Of Contents 004 Notice Of Annual General Meeting 006 Appendix 1 - Proposed Amendments To The Articles Of Association Of The Company 011 Statement Accompanying The Notice Of Annual General Meeting Key Highlights About Us 016 Executive Chairman s Message 025 About This Report 026 Corporate Profile 028 Corporate Information 031 PNHB Fact Sheet 034 Our Role In The Water Supply System 035 Milestones 038 Water News 040 Corporate Achievements PNHB Structure 044 Corporate Structure 045 Organisation Structure - PNSB 046 Organisation Structure - SYABAS 048 Organisation Structure - POG 049 Organisation Structure - GOM Resources Leadership 052 Board Of Directors Profile 063 Board Of Directors 064 Key Personnel Profile - PNSB 070 Key Personnel Profile - SYABAS 081 Key Personnel Profile - Sino Water Pte Ltd 082 Key Personnel Profile - POG 084 Key Personnel Profile - GOM Resources

5 Performance Review 086 Five-Year Financial Highlights 087 Five-Year Group Performance 088 Share Price & Volume Traded 089 Financial Calendar Operations Review 092 Operations Review Puncak Niaga (M) Sdn Bhd 097 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd 105 Operations Review Puncak Oil & Gas Sdn Bhd GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) 107 Business Expansion 110 Delivering Service Excellence 117 Delivering Quality Corporate Responsibilities 132 Valuing Our People 152 Preserving Our Environment 167 Engagement With Our Community 175 Corporate Events Accountability 178 Corporate Disclosure Policy 179 Statement On Corporate Governance 193 Statement On Internal Control 195 Audit Committee Report 201 Risk Management Policy & Report 204 Investor Relations Policy & Report 206 Quality Policy & Report 207 Health, Safety And Environmental Policy 208 SYABAS Corporate Responsibility Policy 209 Statement Of Directors Responsibility For Preparation Of Financial Statements Financial Statements 212 Financial Statements Other Information 381 Distribution Schedule Of Equity Securities 385 List Of Properties 387 GRI Index Proxy Form Corporate Directory

6 Notice Of Annual General Meeting NOTICE IS HEREBY GIVEN THAT the Fifteenth Annual General Meeting of ( U) will be held at Concorde I, Concorde Hotel Shah Alam, Level 2, No. 3, Jalan Tengku Ampuan Zabedah C9/C, Shah Alam, Selangor Darul Ehsan on Tuesday, 26 June 2012 at a.m. for the following purposes: - 1. To receive the Audited Financial Statements of the Group and of the Company for the financial year ended 31 December 2011 together with the Reports of the Directors and Auditors thereon. Resolution 1 2. To re-elect the following Directors of the Company who retire by rotation pursuant to Article 98 of the Company s Articles of Association: - (a) YBhg Dato Hashim Bin Mahfar Resolution 2 (b) YBhg Dato Ir Lee Miang Koi Resolution 3 (c) Mr Ng Wah Tar Resolution 4 3. To re-appoint Messrs Ernst & Young as the Auditors of the Company and to authorise the Directors of the Company to fix their remuneration. Resolution 5 AS SPECIAL BUSINESS To consider and, if thought fit, to pass the following Ordinary Resolution and Special Resolution: - 4. Ordinary Resolution Allotment Of Shares Pursuant To Section 132D Of The Companies Act, 1965 THAT subject always to the Companies Act, 1965, the Articles of Association of the Company and the approvals of the relevant governmental/regulatory authorities, the Directors of the Company be and are hereby empowered, pursuant to Section 132D of the Companies Act, 1965, to issue and allot shares in the Company, from time to time, and upon such terms and conditions and for such purposes as the Directors of the Company may deem fit provided that the aggregate number of shares to be issued pursuant to this resolution does not exceed ten per centum (10%) of the issued share capital of the Company for the time being AND THAT the Directors of the Company be and are hereby also empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad AND FURTHER THAT such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company. Resolution 6 5. Special Resolution Proposed Amendments To The Articles Of Association Of The Company THAT the proposed amendments to the Articles of Association of the Company as set out in Appendix I ( Proposed Amendments To The Articles Of Association Of The Company ) of the Annual Report 2011 ( Proposed Articles Amendments ) be and are hereby approved and adopted AND THAT the Directors and Secretaries of the Company be and are hereby authorised to execute all relevant documents and to do all acts and things as deemed necessary to give full effect to the Proposed Articles Amendments. Resolution 7 6. To transact any other ordinary business of which due notice shall have been given. BY ORDER OF THE BOARD TAN BEE LIAN (MAICSA ) LIM YEW HEANG (MAICSA ) Secretaries Shah Alam 4 June

7 Notice Of Annual General Meeting Notes: - 1. In respect of deposited securities, only members whose names appear in the Record of Depositors on 18 June 2012 (General Meeting Record of Depositors) shall be entitled to attend, speak and vote at this Fifteenth Annual General Meeting. 2. A member entitled to attend and vote at the Meeting is entitled to appoint another person to attend and vote in his stead. 3. A proxy need not be a Member of the Company and the provision of Section 149(1)(b) of the Act shall not apply to the Company. There shall be no restriction as to the qualification of the proxy. 4. A Member shall not be entitled to appoint more than two (2) proxies to attend and vote at the Meeting provided that, (a) where a Member is an authorised nominee as defined in the Central Depositories Act, it may appoint up to two (2) proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. (b) where a Member is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account namely, Omnibus Securities Account, there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each Omnibus Securities Account it holds with ordinary shares of the Company standing to the credit of the said Omnibus Securities Account. Where a Member appoints two (2) or more proxies (as the case maybe), the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. 5. The instrument appointing a proxy shall be in writing under the hand of the appointer or his attorney duly appointed under a power of attorney or if such appointer is a corporation, either under its common seal or under the hand of an officer or attorney duly appointed under a power of attorney. If this Proxy Form is signed under the hand of an officer duly authorised, it should be accompanied by a statement reading signed as authorised officer under an Authorisation Document which is still in force, no notice of revocation having been received. If this Proxy Form is signed under the attorney duly appointed under a power of attorney, it should be accompanied by a statement reading signed under a power of attorney which is still in force, no notice of revocation having been received. A copy of the Authorisation Document or the power of attorney, which should be valid in accordance with the laws of the jurisdiction in which it was created and is exercised, should be enclosed with this Proxy Form. 6. Any corporation which is a member of the Company may by resolution of its Directors or other governing body authorise such person as it thinks fit to act as its representative at the Meeting in accordance with Article 82 of the Company s Articles of Association. 7. The instrument appointing the proxy must be deposited at the Office of the Company s Share Registrar, Tricor Investor Services Sdn Bhd at Level 17, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur not less than 48 hours before the time set for holding the Meeting or any adjournment thereof. 8. Explanatory Notes And Statement Of Effect For Special Business: - Resolution 6 Ordinary Resolution : Allotment Of Shares Pursuant To Section 132D Of The Companies Act, 1965 The Ordinary Resolution proposed under Agenda 4 of the Notice of this Fifteenth Annual General Meeting dated 4 June 2012 is for the purpose of seeking a renewal of the general mandate to empower the Directors of the Company pursuant to Section 132D of the Companies Act, 1965, from the date of the above Meeting, to issue and allot ordinary shares from the unissued share capital of the Company for such purposes as the Directors of the Company consider would be in the interest of the Company. This authority will, unless revoked or varied at a General Meeting, expire at the next Annual General Meeting of the Company. This authority will provide flexibility to the Company for allotment of shares for any possible fund raising activities, including but not limited to placement of shares, funding future investment(s) and/or working capital. As at the date of this Notice, the Company did not implement its proposal for new allotment of shares under the general mandate pursuant to Section 132D of the Companies Act, 1965 as granted at the Fourteenth Annual General Meeting of the Company held on 27 June Resolution 7 Special Resolution: Proposed Amendments To The Articles of Association Of The Company The Special Resolution proposed under Agenda 5 of the Notice of this Fifteenth Annual General Meeting dated 4 June 2012 is for the purpose of seeking the shareholders approval for amendments to the Company s Articles of Association following Bursa Malaysia Securities Berhad Main Market Listing Requirements amendments in relation to Disclosure and Other Obligations pursuant to Bursa Malaysia Berhad s letter dated 22 September The amendments to the Company s Articles of Association namely, appointment of multiple proxies by exempt authorised nominee, no restriction on proxy s qualification and according proxies same rights as members to speak at general meeting are aimed at providing greater clarity and certainty to the market. 005

8 Appendix I PROPOSED AMENDMENTS TO THE ARTICLES OF ASSOCIATION OF THE COMPANY The details of the Proposed Amendments to the Articles of Association of the Company are as follows :- To amend the following existing Article 2 and existing Article 77 of the Articles of Association of the Company and to incorporate the following new Article 76A and new Article 77A immediately after the existing Article 76 and existing Article 77, respectively:- EXISTING ARTICLE Article 2 Interpretation clause In these Articles, the words standing in the first column of the table next hereinafter contained shall bear the meanings set opposite to them respectively in the second column thereof, if not inconsistent with the subject or context :- PROPOSED ARTICLE Article 2 Interpretation clause In these Articles, the words standing in the first column of the table next hereinafter contained shall bear the meanings set opposite to them respectively in the second column thereof, if not inconsistent with the subject or context :- WORDS MEANINGS WORDS MEANINGS The Act The Companies Act, 1965 and every other Act for the time being in force concerning companies and affecting the Company. The Act The Companies Act, 1965 and every other Act for the time being in force concerning companies and affecting the Company. The Company or such other name to which it may be changed from time to time. The Company or such other name to which it may be changed from time to time. These Articles These Articles of Association as originally framed and adopted or as altered from time to time by Special Resolution. These Articles These Articles of Association as originally framed and adopted or as altered from time to time by Special Resolution. The Directors The Directors for the time being of the Company. The Directors The Directors for the time being of the Company. The Office The Registered Office for the time being of the Company. The Office The Registered Office for the time being of the Company. The Seal The Common Seal of the Company. The Seal The Common Seal of the Company. The Secretary Any person appointed by the Directors to perform any of the duties of the Secretary of the Company and includes any person appointed temporarily or as an assistant secretary. The Secretary Any person appointed by the Directors to perform any of the duties of the Secretary of the Company and includes any person appointed temporarily or as an assistant secretary. Central Depository Bursa Malaysia Depository Sdn Bhd. Central Depository Bursa Malaysia Depository Sdn Bhd. 006

9 Appendix I EXISTING ARTICLE PROPOSED ARTICLE WORDS MEANINGS WORDS MEANINGS Central The Securities Industry (Central Depositories Act Depositories) Act Central The Securities Industry (Central Depositories Act Depositories) Act Depositor A holder of a securities account established by the Central Depository. Depositor A holder of a securities account established by the Central Depository. Record of A record provided by Central Depositors Depository to the Company under Chapter 24.0 of the Rules. Record of A record provided by Central Depositors Depository to the Company under Chapter 24.0 of the Rules. Deposited A security standing to the credit of a Security securities account and includes securities in a securities account that is in suspense. Deposited Security A security standing to the credit of a securities account and includes securities in a securities account that is in suspense. Exchange Bursa Malaysia Securities Berhad. Exchange Bursa Malaysia Securities Berhad. Listing Requirements The Listing Requirements of the Exchange or Rules including any amendment to the Listing Requirements that may be made from time to time and such practice notes or circulars as may be issued by the Exchange from time to time. Listing Requirements The Listing Requirements of the Exchange or Rules including any amendment to the Listing Requirements that may be made from time to time and such practice notes or circulars as may be issued by the Exchange from time to time. Group The Company together with its subsidiaries and associate companies in which the Company hold 20% or more of the issued capital. Group The Company together with its subsidiaries and associate companies in which the Company hold 20% or more of the issued capital. Member A Depositor who shall be treated as if he were a member pursuant to Section 35 of the Central Depositories Act but excludes the Central Depository in its capacity as a bare trustee member. Member A Depositor who shall be treated as if he were a member pursuant to Section 35 of the Central Depositories Act but excludes the Central Depository in its capacity as a bare trustee member. Rules The Rules of the Central Depository and shall have the meaning given in Section 2 of the Central Depositories Act. Rules The Rules of the Central Depository and shall have the meaning given in Section 2 of the Central Depositories Act. Trading Days A day on which the stock market of the Exchange is open for trading in securities. Trading Days A day on which the stock market of the Exchange is open for trading in securities. 007

10 Appendix I EXISTING ARTICLE PROPOSED ARTICLE WORDS MEANINGS WORDS MEANINGS Securities Account An account established by a central depository for a depositor for the recording of deposit or withdrawal of securities and for dealing in such securities by the depositor. Securities Account An account established by a central depository for a depositor for the recording of deposit or withdrawal of securities and for dealing in such securities by the depositor. Jumbo same meaning as is assigned to that Certificate expression under the Central Depositories Act. Jumbo same meaning as is assigned to that Certificate expression under the Central Depositories Act. None None Authorised nominee As defined in the Central Depositories Act. None None Exempt authorised nominee An authorised nominee as defined in the Central Depositories Act which is exempted from compliance with the provisions of subsection 25A(1) of the Central Depositories Act. None None Omnibus A securities account held by an exempt Securities authorised nominee for multiple Account beneficial owners. Writing shall include printing and lithograph and any other mode or modes of representing or reproducing words in a visible form. Words importing the singular number only shall include the plural number and vice versa. Words importing the masculine gender only shall include the feminine; and Words importing persons shall include corporations and companies. Subject as aforesaid, any words or expressions defined in the Act shall, except where the subject or context forbids, bear the same meanings as in these Articles. Writing shall include printing and lithograph and any other mode or modes of representing or reproducing words in a visible form. Words importing the singular number only shall include the plural number and vice versa. Words importing the masculine gender only shall include the feminine; and Words importing persons shall include corporations and companies. Subject as aforesaid, any words or expressions defined in the Act shall, except where the subject or context forbids, bear the same meanings as in these Articles. 008

11 Appendix I EXISTING ARTICLE Article 76A None Article 77 Proxy need not be a member A proxy need not be a Member of the Company and the provision of Section 149(1)(b) of the Act shall not apply to the Company. A Member shall not be entitled to appoint more than two (2) proxies to attend and vote at the Meeting provided that where a Member is an authorised nominee as defined in the Central Depositories Act, it may appoint up to two (2) proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. Where a Member appoints two (2) proxies, the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. PROPOSED ARTICLE Article 76A Rights of Proxies A member of the Company entitled to attend and vote at a meeting of a General Meeting of the Company, or at a meeting of any class of members of the company, shall be entitled to appoint any person as his proxy to attend and vote at the General Meeting. A proxy appointed to attend and vote at a General Meeting shall have the same rights as the member to speak at the General Meeting. Article 77 Proxy need not be a member A proxy need not be a Member of the Company and the provision of Section 149(1)(b) of the Act shall not apply to the Company. There shall be no restriction as to the qualification of the proxy. 009

12 Appendix I EXISTING ARTICLE Article 77A None PROPOSED ARTICLE Article 77A Appointment Of Proxy A Member shall not be entitled to appoint more than two (2) proxies to attend and vote at the Meeting provided that, (a) where a Member is an authorised nominee as defined in the Central Depositories Act, it may appoint up to two (2) proxies in respect of each Securities Account it holds with ordinary shares of the Company standing to the credit of the said Securities Account. (b) where a Member is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account namely, Omnibus Securities Account, there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each Omnibus Securities Account it holds with ordinary shares of the Company standing to the credit of the said Omnibus Securities Account. Where a Member appoints two (2) or more proxies (as the case may be), the appointments shall be invalid unless he specifies the proportions of his holdings to be represented by each proxy. 010

13 Statement Accompanying The Notice Of Annual General Meeting DETAILS OF DIRECTORS STANDING FOR RE-ELECTION AT THE FIFTEENTH ANNUAL GENERAL MEETING:- Name of Retiring Director Dato Hashim Bin Mahfar Dato Ir Lee Miang Koi Mr Ng Wah Tar Age Nationality Malaysian Malaysian Malaysian Qualification Institute of Chartered Masters Degree Certified Public Secretaries And in Environmental Accountant, Administrators (UK) Engineering Australia Position In PNHB Managing Director Non-Independent Executive Director, Non-Executive Director Corporate Finance Division Working Experience For details of YBhg For details of YBhg For details of & Occupation Dato Hashim Mahfar s Dato Ir Lee Miang Koi s Mr Ng Wah Tar s profile, please refer profile, please refer profile, please refer to his profile on page 054 to his profile on page 056 to his profile on page 062 of the Annual Report of the Annual Report of the Annual Report Directorships None None None in other public companies Equity securities None Please refer to None interests in PNHB page 384 of the and its subsidiaries Annual Report Family relationship None None None with any director and/or major shareholder of PNHB Any conflict of None None None interests with PNHB List of convictions None None None for offences (other than traffic offences, if any) within the past 10 years 011

14 2011 Key Highlights We operate, manage and maintain 29 WTPs with a combined capacity of 1,930 million litres per day. The Group expanded its horizons in the Oil & Gas sector in In 2011, Our WTPs achieved an impressive 99.9% compliance with treated water quality standards. All our 29 WTPs performed well. Complaints received to be acknowledged within 30 minutes and we achieved 99.23%. Our WTPs delivered combined capacity of million cubic metres of treated water. We achieved a Collection Efficiency of 99.9%. We distributed a daily average of 4,143 MLD of treated water to about 7.5 million consumers. 012

15 Puncak Values Our 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 Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector. 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. 013

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17 Enhancing Performance 2011 saw our water business achieve or exceed every one of its Key Performance Indicators. To meet increasing consumer demand, PNSB s Water Treatment Plants increased the production of treated water by some 1.63%, while SYABAS continued to maintain and enhance the water distribution system and to provide efficient customer service. The Oil and Gas division contributed to 11.17% of the Group s revenue whilst Construction contributed 12.01% of the Group s revenue. 015

18 Executive Chairman s Message YBHG TAN SRI ROZALI ISMAIL EXECUTIVE CHAIRMAN OF PNHB GROUP Dear valued Shareholders and Stakeholders, 2011 proved to be yet another exceptionally challenging year for Puncak Niaga Holdings Berhad ( PNHB ) and the Group ( PNHB Group or the Group ) as we continue to deliver ourselves in not only the water sector, but also in the Oil & Gas and construction sectors in our continuous efforts to enhance shareholder value. Despite the challenging circumstances, I am proud to record that the Group once again excelled in our Key Performance Indicators ( KPIs ), conserving the environment, fulfilling our commitments to our stakeholders as a responsible water services provider, and achieving sustainable growth. During the year, the Group also undertook several water related projects in the construction sector. 016

19 Executive Chairman s Message Effective 1 January 2011, the Group adopted the IC Interpretation 12 (Service Concession Arrangements) ( IC Interpretation 12 ) in accordance with the Financial Reporting Standard requirements. Although the Group reported a net loss of RM83.72 million (audited) for the financial year ended 31 December 2011 following the adoption of IC Interpretation 12 which also resulted in a substantial decrease in the shareholders equity (as of 31 March 2011, the shareholders equity was RM35.6 million), the Group s business viability and cash flow profile remain unchanged. However, as at 31 December 2011, the Group s shareholders equity was RM107.1 million and had exceeded the benchmark shareholders equity of RM40.0 million and accordingly, no longer fall under the Practice Note 17 (Criteria and Obligations of PN17 Companies) ( PN17 ) criteria of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ( Bursa Securities ). On 28 September 2011 the Group, via PNHB s wholly owned subsidiary, Puncak Oil & Gas Sdn Bhd, expanded its horizons in the Oil & Gas sector with the acquisitions of GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) ( GOM Resources ) and KGL Ltd ( KGL ), respectively. As always, the outstanding loyalty, dedication, commitment, sense of responsibility and effort of our Management and workforce despite the various challenging issues, coupled with their unwavering commitment to delivering the highest level of service to the consumers, has enabled the Group to maintain the quality of water supply throughout 2011 and expanded its horizons beyond the water sector. All this is aptly embodied by the theme for our Annual Report 2011, Expanding Horizons. BACKGROUND In 2011, the global economy again faced a difficult environment. Although disruptions to the global supply chain caused by the natural disasters in Japan lessened considerably, new challenges emerged including the still-unfolding euro zone debt crisis. Despite this, towards the year end, global economic activity still managed to expand, albeit at a more modest and uneven pace. The growth of most Asian economies remained resilient in the face of the global economic turmoil even as regional exports were sustained by demand both from within the region and from other emerging economies. In addition, regionwide, domestic demand was robust while private consumption was driven by a combination of rising wages and strong labour markets. At the home front, the Malaysian economy successfully met the various challenges posed by ongoing problems in global financial markets, an unfavourable fiscal environment and weak labour market conditions in the advanced economies. Healthy domestic demand was spurred by increased household and business spending as well as higher public sector expenditure, while regional demand led to an improvement in the external sector. (Source: Bank Negara Malaysia Quarterly Bulletin, Third Quarter 2011.) Against this backdrop, on behalf of the Board of Directors of PNHB, I am pleased to present the Annual Report and the Audited Financial Statements of the Company and Group for the financial year ended 31 December On 28 September 2011 the Group, via PNHB s wholly owned subsidiary, Puncak Oil & Gas Sdn Bhd, expanded its horizons in the Oil & Gas sector. 017

20 Executive Chairman s Message CHALLENGES The uncertainty in the water services sector in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, ongoing since 2008, remains unresolved with no decisive action taken in the protracted restructuring of the water services sector in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya ( Proposed Restructuring ) by the Government. At the same time, neither the water tariff adjustment for the third operating period commencing 1 January 2009 and ended 31 December 2011 nor the compensation in lieu thereof by the Selangor State Government to Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) under the Concession Agreement dated 15 December 2004 signed between SYABAS, the Federal Government and the Selangor State Government ( Concession Agreement ), was forthcoming as the matter was referred to the court for decision. Inevitably, this culminated in acute cash flow problems for SYABAS resulting in its inability to make full payment for water purchases from the three water treatment operators, namely Konsortium ABASS Sdn Bhd ( Konsortium ABASS ), Syarikat Pengeluar Air Sungai Selangor Sdn Bhd ( SPLASH ) and Puncak Niaga (M) Sdn Bhd ( PNSB ). Meanwhile, the Government s decision to freeze the SYABAS Capital Expenditure ( CAPEX ) programme in July 2008 pending the protracted Proposed Restructuring, remains in force, with the exception of some very critical works for which limited funding was made available. The protracted Proposed Restructuring has also adversely affected our position to drawdown from other sources of funding to finance our CAPEX Programme. This has in effect crippled our plans to refurbish, rehabilitate and enhance water distribution infrastructure in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya and is especially worrying given the ever-increasing demand for treated water in the nation s most populous area and the fast-growing probability of a water shortage. The water shortage situation will be further aggravated unless additional interim measures are put in place by the Government immediately to alleviate the impending water crisis prior to the completion of the new Langat 2 Water Treatment Plant ( WTP ), where its completion date is uncertain. Further to these ongoing challenges, the adoption of IC Interpretation 12 by the Group for the financial statements for the financial year ended 31 December 2011 has resulted in the Group reporting a net loss of RM83.72 million (audited) for the financial year ended 31 December An explanation of the accounting treatment of IC Interpretation 12 and its effects are set out under the heading Financial Performance of this Executive Chairman s Message. Although the adoption of IC Interpretation 12 does not affect the Group s business viability and the cash flow profile of the Group, it nevertheless triggered the equity criteria under PN 17 in the first quarter ended 31 March As previously announced on 31 May 2011, the Company had obtained a PN 17 conditional waiver from Bursa Securities from being categorised as an Affected Listed Issuer under PN 17 until the release of its quarterly results for the period ending 30 June 2012 on or before 31 August The Group had however, self-regularised its position since 30 September On the rating of the Group s debts which fell below the minimum rating under their respective trust deeds, which arose from Malaysian Rating Corporation Berhad s ( MARC ) various rating actions on the Selangor water sector bonds including the rating actions against the bonds of the Company, PNSB and SYABAS respectively on 6 April 2011, waivers were obtained from the respective bondholders for declaration of Event 018

21 Executive Chairman s Message of Default and also waiver on minimum rating requirements for Redeemable Unsecured Bonds ( RUBs ) and Bithaman Ajil Islamic Debt Securities ( BaIDS ) at the respective bondholders meetings held in Subsequently, as part of the Federal Government s efforts to protect the stability and integrity of the nation s bond market, in the second half of 2011, Pengurusan Aset Air Bhd ( PAAB ) via their wholly owned subsidiary company, Acqua SPV Bhd ( Acqua ), acquired all the bonds from the Group. On 1 November 2011, PNHB entered into a conditional Sale & Purchase Agreement with Acqua and PNSB to sell its entire holdings of PNSB Redeemable Unsecured Coupon Bearing Notes ( PNSB JNA Notes ) to Acqua for a total consideration of RM328.1 million. The sale was completed on 18 November On the same date, the Company concurrently completed the Put and Call Option Exercises of the Company s RM546,875, Nominal Value of 15-Year Redeemable Unconvertible Notes ( Notes ) pursuant to the Trust Deed dated 5 September 2001 Constituting The Notes. Accordingly, the Company s Notes were withdrawn from the Official List of Bursa Securities on 21 November The legal suits in relation to Konsortium ABASS, SPLASH and the Selangor State Government are still ongoing. The amount of water tariff compensation claimed in the suit by SYABAS against the Selangor State Government has, since the previous Annual Report, increased from RM471.6 million (for the period from 1 January 2009 to 31 December 2009) to RM1,054.2 million for the period from 1 January 2009 to 31 March 2011 under the terms of the Concession Agreement. As the Group expands into the Oil & Gas and the construction sectors, we aim to ensure delivery of sustainable or improved results for the Group. FINANCIAL PERFORMANCE With effect from 1 January 2011, PNHB adopted IC Interpretation 12 as required by the Financial Accounting Standards. IC Interpretation 12 applies to service concession operators and explains how to account for obligations undertaken and rights received in service concession arrangements. As a result, PNHB s consolidated shareholders equity decreased substantially from RM1,501.4 million as at 31 December 2010 to RM35.6 million as at 31 March The primary reason for the shareholders equity decrease is that the new accounting treatment under IC Interpretation 12 requires the entire present value of the Annual Charges, Land Use Charges, and Fixed Capacity Charges payable by SYABAS to the Selangor State Government and the water treatment operators, be capitalised as intangible assets and subject to amortisation. A corresponding amount is credited as a concession liability and subjected to notional interest which is charged to the income statement. The application of these adjustments also resulted in higher water purchasing cost being allocated to the income statement. With this, for the financial year ended 31 December 2011, the Group registered a loss after taxation of RM83.72 million (audited), despite recording a 25.7% increase in revenue to RM2.59 billion from RM2.06 billion (Restated) in The increase in revenue was due to higher water consumption, higher construction revenue and contribution from the Oil & Gas division. The net loss after taxation is mainly due to a higher operating cost as a result of the increase in the water purchasing cost allocated to the income statement, combined with the higher finance cost of the notional interest arising from the notional concession liabilities mentioned above. 019

22 Executive Chairman s Message Despite the loss and as mentioned earlier, the Group s business operations and cash flow are not affected as the new accounting treatment does not result in additional utilisation of cash resources. Dividend Given the need for the Group to conserve its financial resources under the current circumstances as highlighted above, the Board of Directors does not recommend any final dividend for the financial year ended 31 December ACHIEVEMENTS As in previous years, the challenges we face have spurred our determination to fulfil our stakeholder commitments and in particular to ensure that consumers continue to get the best services. Thus, in spite of the challenges mentioned above, the Group exceeded all of the KPIs set with the exception of reduction in Non Revenue Water ( NRW ) which was affected by the protracted SYABAS CAPEX freeze. We continued to deliver not only the supply of high quality water but consistently outstanding standard of customer service. Within our financial resources constraint, we prioritised critical works and strategic programmes and pushed ahead with our efforts and investment in Research and Development ( R&D ) and Information and Communication Technology ( ICT ) thereby continuing to enhance the cost-effectiveness of our operations. PNSB has consistently adhered to the Integrated Management System covering ISO 9001 (Quality Management System), ISO (Environment) and OHSAS (Safety) Management Systems in the water treatment operations. CORPORATE DEVELOPMENTS Entry Into Oil & Gas Sector In 2010, the Group expanded its horizon to include the Oil & Gas sector in the Group s business plans. In line with this vision, on 23 May 2011, PNHB s wholly owned subsidiary, Puncak Oil & Gas Sdn Bhd ( POG ) entered into two separate Sale & Purchase Agreements with Global International Vessels Ltd ( GIVL ) for the acquisition of 40% equity interest in GOM Resources and KGL respectively, which were completed on 30 June The acquisitions of the remaining 60% equity interest in GOM Resources and KGL were completed on 28 September 2011, making both GOM Resources and KGL wholly-owned subsidiaries of POG. GOM Resources is involved in the business of construction and subsea services and marine support services to the offshore Oil & Gas industry in Malaysia whilst KGL is the registered and beneficial owner of the pipelaying barge DLB 264. The acquisitions of GOM Resources and KGL provide a platform for PNHB s entry into the Oil & Gas industry, which the Group has identified as a sector in which it intends to strengthen its presence over the next few years. Details of the business activities of GOM Resources and KGL are given on pages 105 and 106 of this Annual Report. Water Related Construction Projects Over the years, PNHB Group has amassed a formidable amount of water related expertise which has enabled us to set our sights on a variety of water and water-related construction projects. 020

23 Executive Chairman s Message A 40:60 unincorporated joint-venture between PNHB and Quality Concrete Holdings Bhd ( Konsortium Puncak Niaga Holdings Bhd Quality Concrete ) is currently undertaking a contract for a Rural Water Supply Project in Sarawak from 2010 to 2012 for the Government of Malaysia. Undertaken for the Rural and Regional Development Ministry, the project involves the supply, construction and commissioning of water supply facilities to rural areas in Sarawak and is due to be completed by 31 December The contract, worth RM million, is expected to contribute positively to the earnings and net asset per share of the Group for the financial year ended 31 December Additionally, the Group is also exploring the opportunities of designing, constructing and operating other water-related facilities within the country and abroad. Overseas Expansion In 2011, PNHB continued to explore the potential for overseas expansion, focusing mainly on China, India, Indonesia, Cambodia and Vietnam, where there is a massive and urgent need for sustainable development and efficient management of water and wastewater resources. For this reason, the Group expanded its operations overseas, setting up a wholly owned subsidiary in India and a Representative Office in Vietnam in The Group is continuing to bid for potential water and water related projects in India together with strategic partners, and likewise in other countries. In 2012, the Group will continue its business development efforts to clinch potential water and water-related business via Government-to-Government arrangements and joint ventures with reliable local partners. Our expertise and experience in the water and water-related sector make us a strong contender in bids overseas. Although we do not have any current projects in India, we have qualified for several large water projects which are pending decision on award to the successful bidders/tenderers from the respective clients, while in China our construction works of two projects have completed and currently pending Testing and Commissioning. In both countries, competition is keen, and it is vital to have the right business partners and good strategic plan with appropriate risk assessments. Though the economies of Indochina, specifically Cambodia and Vietnam, are relatively young, rapid national development presents us with major potential opportunities in these countries, and we hope to be able to benefit from these opportunities. CORPORATE & ENVIRONMENTAL SOCIAL RESPONSIBILITY Corporate Social Responsibility ( CSR ) is integral to the Group s overall business strategy, underpinning the responsible and sustainable delivery of our key business drivers. We believe that the integration of CSR across the Group and the inclusion of broader social and environmental issues into our decision-making will help us achieve our business goals. CSR acts as a building block for shareholder value creation and benefits the communities in our areas of operations. PNHB believes that everyone deserves access to clean water. We are committed to delivering outstanding quality and a reliable service at an affordable price. Our R&D team continues to evaluate the best possible water treatment processes and water distribution operations to deliver high water quality to the public. CSR is embedded into each stage of our water service delivery process to ensure that they are economically, environmentally and socially sustainable. A 40:60 unincorporated joint-venture between PNHB and Quality Concrete Holdings Bhd ( Konsortium Puncak Niaga Holdings Bhd Quality Concrete ) is currently undertaking a contract for a Rural Water Supply Project in Sarawak from 2010 to 2012 for the Government of Malaysia. 021

24 Executive Chairman s Message Our focus for 2012 will be increasing stakeholder value as we believe that it is an integral part of running our business which can greatly affect the Group s success marked an active year at PNHB. Various CSR activities were introduced during the year to focus on community development, environmental conservation, workplace talent management and development, quality improvement and sustainable marketplace practices. We reached out to all our stakeholders in these activities including our customers, media partners, shareholders, Government agencies, our people and the consumers. I am pleased to see an increasing number of employees volunteering for our CSR activities such as the Misi Bantuan Bekalan Air to Johor, Melaka and Port Dickson, active participation in the Regimen 60 Program and continued contribution to the Tabung Budi Programme. This is testament to our success in instilling a sense of responsibility and spirit of employee volunteerism amongst our employees as good corporate citizens. On 8 September 2011, the Prime Minister, YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak announced plans for a Low Carbon Cities Framework and Assessment System. This system aims to propel Malaysia towards a low carbon economy and achieve a 40% carbon dioxide reduction by Work commenced on our Carbon Management Plan during 2009, when we first reported our Greenhouse Gas ( GHG ), adhering to the World Resources Institute GHG Protocol. In 2011, we continued to identify links between GHG emissions and the provision, usage and treatment of water including the widespread introduction of water efficiency measures, water quality enhancement and management of our water footprint. Our focus for 2012 will be increasing stakeholder value as we believe that it is an integral part of running our business which can greatly affect the Group s success. Our CSR efforts place emphasis on risk management and operational efficiencies to provide value added services, community development and talent management. Our principal of sustainable innovation is key to delivering this commitment. CORPORATE GOVERNANCE PNHB Group is profoundly aware of its responsibility to implement and abide by best practice and the principles of good corporate governance throughout its operations. Accordingly, we are totally committed to demonstrating transparency, integrity and accountability in everything we do. We are equally dedicated not only to maintaining the highest ethical standards but also to achieving sustainability both in our operations and in our impact on the environment for the benefits of our customers, shareholders, stakeholders and business associates. ACCOLADES AND ACCOMPLISHMENTS 2011 brought the Group widespread recognition of its innovations, high safety standards and product and service excellence. PNSB received a total of 19 Innovative & Creative Circle ( ICC ) Awards in At the Malaysian Productivity Corporation ( MPC ) Mini ICC 2011 held on 26 April 2011, five of our teams won three Gold Awards and two Silver Awards. At the MPC Regional Conventions 2011 held on 27 to 28 June 2011, 20 to 21 July 2011 and 25 to 26 July 2011, six of our teams received four Gold Awards and two Silver Awards, and two teams achieved 3 Gold Star Awards and one team achieved 2 Gold Star Award from the MPC National ICC Convention 2011 held on 19 to 20 October At the International ICC Conference Quality Creative Circle 2011 held in Yokohama, Japan from 11 to 15 September 2011 our Tag Team succeeded in garnering the prestigious Excellent Award for its cost-cutting and innovative project, namely Unstable micro sand in the Actiflo process. On 22 July 2011, the Malaysian Society for Occupational Safety & Health ( MSOSH ) gave recognition to the operational calibre of five of our WTPs. The Gombak, Cheras Mile 11, Wangsa Maju and SSP2 WTPs won Gold Class I Awards, while the Rantau Panjang WTP received a Gold Class II Award. On

25 Executive Chairman s Message 21 December 2011, the National Council for Occupational Safety & Health ( NCOSH ) honoured the SSP2 WTP with a Gold Trophy Award. In 2011, SYABAS received Gold Awards for the ten District Offices namely, Petaling District, Hulu Langat District, Klang District, Kuala Lumpur District, Kuala Langat District, Sepang District, Gombak District, Hulu Selangor District, Kuala Selangor District and Sabak Bernam District at MSOSH OSH Award On 28 June 2011, PNHB was awarded the Best Environmental Services Technology Company Award at the World Finance Technology Awards On 28 July 2011, PNHB was awarded the Masterclass Company Category Award at the International Standard Quality (ISQ) Award On 14 September 2011, PNHB was awarded the Industry Excellence Award Water Sector at the launching ceremony of 5th Edition Malaysia 1000 and on 4 October 2011, PNHB garnered a Commendation for Integrated Reporting of Annual Report at the Association of Chartered Certified Accountants (ACCA) Malaysia Sustainability Reporting Awards (MaSRA) PNHB attained the Employee of Choice - Silver Award at the 11th Malaysia HR Awards 2011 on 13 October PROSPECTS Economic Prospects With downside risks on the increase, the global growth outlook remains volatile, and the potential deepening of the fiscal crisis in the advanced economies could strain the international financial system further. Despite this, led once again by China, Asia s emerging economies are predicted to grow robustly in 2012, buffered by strong fundamentals, sound budgets and high reserves. Bank Negara Malaysia anticipates that Malaysia s Gross Domestic Product growth will moderate slightly to 5.0% in Although the uncertainties in the international environment will have an impact on Malaysia s prospects, rising domestic demand is predicted to underpin and secure national economic growth. Meanwhile, expansion in private consumption and private investment combined with public spending and investment activity are expected to lend further support to growth. (Sources: Bank Negara Malaysia and Asian Development Bank) Gas Saving Tips Travelling at fast speed can consume up to 45% more fuel. 023

26 Executive Chairman s Message Group Prospects PNHB Group remains committed to supporting any resolution of the Proposed Restructuring of the water services sector that proves beneficial to all stakeholders concerned: the water industry players, and above all, the public. At home, prospects for the Group are bright. Whatever the outcome of the issues currently facing us as a water concessionaire, we are hopeful for a win-win resolution in the near future. We are also now making inroads into the water infrastructure construction sector, which is already expanding our business not just within Malaysia but overseas. Meanwhile, our initial foray into the Oil & Gas arena has met with commendable success and augurs well for the future, and we are hopeful to clinch more Oil & Gas projects in accordance with our vision to become a significant player in this sector. Our newly formed Indian subsidiary and the Representative Office in Vietnam have provided two operational bases for our international expansion efforts in addition to our subsidiaries in China. With a growing presence across Asia, we are well-positioned to capitalise on the development opportunities which the region has made available. Looking ahead, the Group has the vision, the resources and the willpower to continue in its quest to achieve sustainable long-term growth for the benefit of all its stakeholders and shareholders, of the environment, and of the nation as a whole. APPRECIATION On behalf of the Board, I wish to end my message to our shareholders and stakeholders as I began it with a tribute and heartfelt appreciation to our Management and staff. I am ever grateful for their tremendous support, and I commend them unreservedly for their hard work and their unfailing commitment to maintaining an outstanding level of service to our customers and to meeting our KPIs despite the challenging circumstances in My thanks also go to our customers, investors, financiers and business partners, whose loyalty and support have once again been vital to everything we achieved during the year. In addition, I deeply appreciate the guidance and co-operation we received from the Federal Government and the various government authorities, agencies and non-governmental organisations. Finally, and on a personal note, I wish to express my heartfelt gratitude to my fellow Board members and to all of the Group s Management team, who have kept the Group on track to achieve our vision To Be A Regional Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector will be another challenging year, but I am confident that, with full commitment from the Management team and staff and full support from our shareholders and stakeholders, we will continue to fulfil our obligations by delivering the highest levels of service to our customers, protecting the environment, and contributing positively to the communities in the areas of our operations. TAN SRI ROZALI ISMAIL Executive Chairman 26 April

27 About This Report THIS INTEGRATED REPORT DEMONSTRATES THE COHESION OF PUNCAK NIAGA HOLDINGS BERHAD ( PNHB ) TRIPLE BOTTOM LINE APPROACHES. THESE INCLUDE STRATEGY, GOVERNANCE AND FINANCIAL PERFORMANCE AND THE SOCIAL, ENVIRONMENTAL AND ECONOMIC CONTEXT. BY REINFORCING THESE CONNECTIONS, OUR INTEGRATED REPORTING HELPS US TO TAKE MORE SUSTAINABLE DECISIONS AND DELIVER AN ACCURATE REPRESENTATION OF OUR PERFORMANCE TO OUR STAKEHOLDERS. THE CORPORATE SOCIAL RESPONSIBILITY ( CSR ) SECTION PROVIDES DISCLOSURE OF OUR SUSTAINABILITY EFFORTS IN THE AREAS OF MARKETPLACE, WORKPLACE, COMMUNITY AND ENVIRONMENT. THROUGH THIS REPORT, WE STRIVE TO COMMUNICATE MORE EFFECTIVELY WITH OUR STAKEHOLDERS. TOGETHER WITH THE REPORT ON FINANCIAL AND OPERATIONS ASPECTS OF OUR BUSINESS ACTIVITIES, THE FULL REPORT PROVIDES A CLEAR, COMPREHENSIVE AND TRANSPARENT REPRESENTATION OF PNHB S PERFORMANCE IN MANAGING THE ECONOMIC, SOCIAL AND ENVIRONMENTAL ASPECTS OF OPERATIONS. This Report also presents our approaches to material issues and ability to sustain value in the short, medium and longer term. Quantitative indicators are used wherever relevant for better accuracy. We ensure that the measurements and claims in this Report are accurately collected and reported. We also ensure that the underlying methodology is sound. In order to quantify the progression of our CSR sustainability milestones, the achievements in 2011 have been compared against previous years. Certain regulatory performance data contained in PNHB s 2011 Annual Report is subject to regulatory audit. As part of our continuous commitment in delivering greater transparency on our approach to reporting, we have applied the most recent and most comprehensive sustainability reporting guidelines produced by the Global Reporting Initiatives ( GRI ), GRI G3.1 Guidelines, which falls under Level A application level. This latest guidelines cover a wider range of issues on the main sustainability areas: economic, social and environmental. The GRI G3.1 Content Index which can be found on pages 387 to 393 of this Annual Report serves as an interactive navigation tools and reflects our disclosure on each indicator outlined by the GRI. We will continuously improve the level of disclosures in our future Reports. This Report is available to all stakeholders in hard copy on request and can be downloaded from our corporate website. SCOPE OF REPORTING Reporting Period: 1 January to 31 December 2011 Coverage: PNHB Group including all of its subsidiaries, local and overseas Date of Publication: 4 June

28 Corporate Profile OUR COMPANY THE PUNCAK NIAGA HOLDINGS BERHAD ( PNHB ) GROUP IS THE LEADING REGIONAL INTEGRATED WATER, WASTEWATER AND ENVIRONMENTAL SOLUTIONS PROVIDER AND AN EMERGING SIGNIFICANT PLAYER IN THE OIL & GAS SECTOR. 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 WORKS RELATED TO THE OIL AND GAS INDUSTRY AND OTHER MATERIALS AND THE PROVISION OF OFFSHORE AND ONSHORE ENGINEERING WORKS AS WELL AS UNDERTAKING RESEARCH AND DEVELOPMENT AND TECHNOLOGY DEVELOPMENT FOR THE WATER, WASTEWATER AND ENVIRONMENT SECTORS. Established on 7 January 1997, PNHB was listed on the Main Board of Bursa Malaysia Securities Berhad (now known as the Main Market of Bursa Malaysia Securities Berhad) on 8 July As at the end of 31 December 2011, PNHB s market capitalisation stood at RM393.0 million. 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 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 1,930 million litres per day. PNSB undertook the finance, design, construction, operation, management and maintenance of the Sg 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 7.5 million including industrial and commercial users, with a total registration of million consumer accounts. SYABAS also undertakes the maintenance of 26,145 km of water pipes, 1,469 service reservoirs, elevated water tanks and suction tanks and 557 booster 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. PNHB had on 15 December 2010 further increased its stake in SWPL to 98.65%. SWPL has established various subsidiaries in the People s Republic of China to undertake potable water and wastewater projects in several provinces in China. To facilitate PNHB Group s overseas expansion plans in water and our new business sectors in the Asian countries, in mid 2010, PNHB formed a wholly owned Singapore subsidiary, Puncak Niaga Overseas Capital Pte Ltd, which will spearhead our entry into Vietnam, Cambodia, Laos and other Asian countries. 026

29 Corporate Profile In March 2011, PNHB set up a Representative Office in Ho Chi Minh City, Saigon, Vietnam to explore potential business opportunities in Vietnam. On 10 March 2011, PNHB formed a 99.99% owned subsidiary in India, Puncak Niaga Infrastructures & Projects Private Limited which will focus primarily on potential markets in India. On 23 May 2011, PNHB s wholly owned subsidiary, Puncak Oil & Gas Sdn Bhd ( POG ) entered into Agreements to acquire 40% equity interest in two (2) oil and gas entities, namely GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) ( GOM Resources ) and KGL Ltd ( KGL ) with proven track records in undertaking oil and gas works for Petronas which will enable Puncak Group to make further forays and strengthen its presence as a significant company in the oil & gas industry. The 40% equity acquisitions of GOM Resources and KGL were completed on 30 June On 28 September 2011, POG completed the acquisitions of the remaining 60% equity interest in GOM Resources and KGL thereby resulting in both GOM Resources and KGL becoming wholly owned subsidiaries of POG. Our customer contact centre, PUSPEL which is manned by a team of 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. On 8 October 2010, PUSPEL was awarded the special award, The Best Emerging Contact Centre category for Government Link Company by Contact Centre Association of Malaysia or Customer Relationship Management & Contact Centre Association of Malaysia in recognition of PUSPEL s excellent customer service to all water users in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. 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 the water resources, which is relevant to our business operations. Our River Rescue Brigade ( Briged Penyelamat Sungai ) programme which 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 4,630 school children and 218 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 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 and secondary school and tertiary level 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 the stakeholders, we will look into expanding our operations in areas related to our core business and other sector such as oil & gas sector, and competencies within Malaysia and undertaking projects in other countries such as India, China and the ASEAN countries. 027

30 Corporate Information BOARD OF DIRECTORS Yang Berbahagia Tan Sri Rozali Ismail Executive Chairman Yang Berbahagia Dato Hashim Mahfar Managing Director Yang Berbahagia Dato Ruslan Hassan Non-Independent Non-Executive Director Yang Berbahagia Dato Ir Lee Miang Koi 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 Mr Ng Wah Tar Executive Director Corporate Finance Division COMPANY SECRETARIES Madam Tan Bee Lian (MAICSA ) Madam Lim Yew Heang (MAICSA ) REGISTERED OFFICE 10th Floor, Wisma Rozali No. 4, Persiaran Sukan Seksyen 13, Shah Alam Selangor Darul Ehsan Tel : Fax : BRANCH OFFICES Kuala Terengganu Office 201B Jalan Sultan Zainal Abidin Kuala Terengganu Terengganu Darul Iman Tel : Fax : Penang Office No. 12, Jalan Todak 5 Pusat Bandar Seberang Jaya Perai, Pulau Pinang Tel : Non-Independent Non-Executive Director Yang Berbahagia Dato Syed Danial Syed Ariffin Chief Operating Officer Yang Berbahagia Tan Sri Dato Hari Narayanan Govindasamy Independent Non-Executive Director Yang Berbahagia Tan Sri Dato Seri Dr Ting Chew Peh Independent Non-Executive Director PRINCIPAL OFFICE Wisma Rozali No. 4, Persiaran Sukan Seksyen Shah Alam Selangor Darul Ehsan Tel : Fax : (general): corpcom@puncakniaga.com.my (investors): investors@puncakniaga.com.my website: Sarawak Office Lot &10865 Section 64, KTLD Jalan Mendu Kuching, Sarawak Tel : Fax : Sri Aman Site Office (Zone 1) : 1st Floor, Lot 440 Block 3, Jalan Council Sri Aman, Sarawak Tel : Fax : Sarikei Site Office (Zone 2) : 1st Floor, No. 82C Wisma CS Kua Jalan Masjid Lama Sarikei, Sarawak Tel : Fax :

31 Corporate Information SYARIKAT BEKALAN AIR SELANGOR SDN BHD S (SYABAS) OFFICE SYABAS Head Office Jalan Pantai Baharu Kuala Lumpur Tel : / Fax : puspel@syabas.com.my Website: Network: follow@puspel (on Twitter and Facebook) PUNCAK OIL & GAS SDN BHD S OFFICE Unit 12-1, Level 12 No. 11, Jalan 16/11 Pusat Dagang Seksyen Petaling Jaya Selangor Darul Ehsan Tel : Fax : GOM RESOURCES SDN BHD (FORMERLY KNOWN AS GLOBAL OFFSHORE MALAYSIA SDN BHD) S OFFICE Level 4 & 17, Tower 1 ETIQA Twin Towers 11, Jalan Pinang Kuala Lumpur Tel : Fax : KGL LTD S OFFICE c/o Lot 1, 2nd Floor Wisma Siamloh Jalan Kemajuan Federal Territory of Labuan Tel : Fax : SINGAPORE OFFICE Sino Water Pte Ltd s and Puncak Niaga Overseas Capital Pte Ltd s Office No. 8, Eu Tong Sen Street #22-85 & #22-86 The Central Singapore Tel : (Main Line) / Fax : CHINA OFFICES Sino Water Environmental Consultancy (Shanghai) Co. Ltd Unit 301, No. 398 City Gateway Caoxi (North) Road Xuhui District Shanghai People s Republic of China Tel : Fax : Luwei (Pingdingshan) Water Co. Ltd No. 6 ShunCheng Road (East) Lushan County Henan Province People s Republic of China Tel / Fax : Xinnuo Water (Binzhou) Co. Ltd Chenlou Industrial & Commerce Park Laodian Village Yangxin County Shandong Province People s Republic of China Luancheng Dayu Water Supply Co. Ltd No. 17, Xinyuan Road Luancheng County Hebei Province People s Republic of China Tel / Fax : Hebei Sino Panlong Industrial Water Supply Co. Ltd No. 117, Renmin Road Yuanshi County Hebei Province People s Republic of China INDIA OFFICE Puncak Niaga Infrastructures & Projects Private Limited 1, Kutchery Road Mylapore, Chennai Tamil Nadu, India Tel : Fax : VIETNAM OFFICE (Representative Office) 16F, Saigon Tower 29, Le Duan Street District 1, Ho Chi Minh City Saigon, Vietnam Tel : Fax : DATE AND PLACE OF INCORPORATION 7 January 1997, Malaysia COMPANY NUMBER U Tel / Fax :

32 Corporate Information AUDITORS Messrs Ernst & Young (AF 0039) TAX ADVISORS Ernst & Young Tax Consultants Sdn Bhd PRINCIPAL BANKERS RHB Bank Berhad (6171-M) CIMB Investment Bank Berhad (18417-M) AmIslamic Bank Berhad ( U) CIMB Bank Berhad (13491-P) SOLICITORS Messrs Adnan Sundra & Low Messrs Belden Messrs Marcia Ng & Associates Messrs Sreenevasan Young Messrs Zul Rafique & Partners SHARE REGISTRAR (place where all registers of securities are kept) Tricor Investor Services Sdn Bhd ( V) Level 17 The Gardens North Tower Mid Valley City Lingkaran Syed Putra Kuala Lumpur Tel : Fax : STOCK EXCHANGE LISTING Main Market Of Bursa Malaysia Securities Berhad under Infrastructure Project Companies Sector INDICES FTSE Bursa Malaysia Kuala Lumpur FTSE Bursa Malaysia Emas Syariah Index AUDIT COMMITTEE Chairman: Yang Berbahagia Tan Sri Dato Seri Dr Ting Chew Peh Members: Yang Berbahagia Tan Sri Dato Hari Narayanan Govindasamy Yang Amat Mulia Tengku Dato Rahimah Almarhum Sultan Mahmud Yang Berbahagia Tan Sri Dato Ahmad Fuzi Haji Abdul Razak Secretaries: Madam Tan Bee Lian Madam Lim Yew Heang REMUNERATION COMMITTEE Chairman : Yang Berbahagia Tan Sri Dato Ahmad Fuzi Haji Abdul Razak NOMINATION COMMITTEE Chairman: Yang Berbahagia Tan Sri Dato Ahmad Fuzi Haji Abdul Razak Members: Yang Berbahagia Tan Sri Dato Hari Narayanan Govindasamy Yang Berbahagia Tan Sri Dato Seri Dr Ting Chew Peh Secretaries: Madam Tan Bee Lian Madam Lim Yew Heang COMPLIANCE, INTERNAL CONTROL AND RISK POLICY COMMITTEE (CICR) Chairman: Yang Berbahagia Tan Sri Dato Seri Dr Ting Chew Peh Members : Yang Berbahagia Tan Sri Dato Hari Narayanan Govindasamy Yang Berbahagia Tan Sri Dato Seri Dr Ting Chew Peh Mr Ng Wah Tar Members: Yang Berbahagia Dato Hashim Mahfar (Head of CICR) Mr Ng Wah Tar Madam Tan Bee Lian Madam Wong Ley Chan Tuan Haji Sonari Solor Secretaries : Cik Hayati Ab Wahab Madam Tan Bee Lian Madam Lim Yew Heang Secretary: Madam Johty Priyatharashani D/O Tiagarajah 030

33 PNHB Fact Sheet PNSB FACT SHEET AS AT 31 DECEMBER 2011 AUTHORISED SHARE CAPITAL RM1,300,000,000 PAID-UP SHARE CAPITAL RM411,142,895 (comprising 411,142,895 ordinary shares of RM1.00 each) Number of PNSB s 29 Water Treatment Plants Number of Water Treatment Plants 20 with ISO Certifications COMPLETION OF RUN PUT OPTION AND CALL OPTION EXERCISES 18 November 2011 SYABAS FACT SHEET AS AT 31 DECEMBER 2011 WITHDRAWAL OF RUN FROM THE OFFICIAL LIST OF BURSA MALAYSIA SECURITIES BERHAD 21 November 2011 Number of SYABAS Consumer Accounts Maintenance of water pipes million 26,145 km Number of service reservoirs, 1,469 elevated water tanks and suction tanks Number of pumping stations 557 GROUP MANPOWER AS AT 26 APRIL 2012 Category No. of Gender Race (In Malaysia) Race (Overseas) of Employees Personnel Male Female Malay Chinese Indian Others Chinese Management Executive 1, Non-Executive 3,275 2, , Total 4,586 3,398 1,188 4,

34 PNHB Fact Sheet LIST OF CORPORATE MEMBERSHIPS 1 Malaysian Water Association (MWA) Member since Malaysia South-South Association (MASSA) Member since Federation of Public Listed Companies (FPLC) Member since Malaysian Employers Federation (MEF) Member since Malaysian Industry-Government Group for High Technology (MIGHT) Member since Malaysian-German Chamber of Commerce and Industry (MGCC) Member since National Institute of Occupational Safety and Health (NIOSH) Member since American Water Works Association (AWWA) Member since Malaysian-French Chamber of Commerce and Industry (MFCCI) Member since Malaysia-Russia Business Council Member since British Malaysian Chamber of Commerce (BMCC) Member since Malaysia-Japan Economic Association (MAJECA) Member since Commonwealth Partnership for Technology Management (CPTM) Member since Institute of Marketing Malaysia (IMM) Member since South East Asian Water Utilities Network (SEAWUN) Member since Malaysian Islamic Chamber of Commerce (MICC) Member since Singapore Water Association Member since Malaysian Investors Relations Association (MIRA) Member since Water Association of Selangor, Kuala Lumpur and Putrajaya (SWAn) Member since Malaysian Nature Society (MNS) Member since Environmental Management & Research Association of Malaysia (ENSEARCH) Member since Malaysia-Europe Forum (MEF) Member since Malaysia External Trade Development Corporation (MATRADE) Member since

35 PNHB Fact Sheet GROUP MANPOWER ANALYSIS as at 26 April 2012 BREAKDOWN BY JOB CATEGORY BREAKDOWN BY GENDER 7% 22% 7% 7% 15% 41% MALE FEMALE 71% 78% 52% BREAKDOWN BY RACE 6% 22% 5% 13% 6% 42% MALAY INDIAN CHINESE 72% 82% 52% 43% 14% 8% 6% OTHERS CHINESE overseas operation 43% 86% Management Executive Non-Executive 033

36 Our Role In The Water Supply System REGULATORY AUTHORITIES OPERATORS Policy, Planning, Enforcement and Surveillance by Government Agencies Selangor Water Management Authority (LUAS) Department of Environment (DOE) Department of Irrigation and Drainage Malaysia (DID) Manages river basin upstream beginning 3 nautical miles from the sea Oversees environment issues concerning rivers Flood control and river management Rivers Dams Dam Operators in Selangor Puncak Niaga (M) Sdn Bhd (PNSB) Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) Konsortium ABASS Sdn Bhd SCHEMATIC DIAGRAM OF WATER TREATMENT SYSTEM Raw Water Pump Band Screen Grit Chamber WTP Operators in Selangor Modified Liquid Alum FILTRATION TANK Intake Chlorine Sodium Silicoflouride Hydrated Lime Puncak Niaga (M) Sdn Bhd (PNSB) Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) Konsortium ABASS Sdn Bhd National Water Services Commission (SPAN) Aerator Mixing Channel Flocculation Channel Sedimentation Tank Filtration Gallery Treated Water Pump Balancing Reservoir To River / Sludge Lagoons Clear Water Tank Bulk Meters Ministry of Health (MOH) - water quality BOOSTER STATION Water Supply Distributor for Selangor, Kuala Lumpur and Putrajaya RESERVOIR WATER TOWER SERVICE RESERVOIR Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) Consumers Water Meter (Condominium/ Flat) Water Meter (Industrial/ Factory) Water Meter (Office) Water Meter (Shopping Centre) 034 Water Meter (Residential Home) Water Meter (Government/ Institutional)

37 Milestones JUL MAR JAN PNHB was included in the KLSE Composite Index (now known as FTSE Bursa Malaysia Kuala Lumpur Composite Index). 09 APR Signing Ceremony of the Second Amendment to the Construction Cum Operation Agreement. 08 JUL Listing on the Main Board of the KLSE (now known as Main Market of Bursa Malaysia Securities Berhad effective 3 August 2009) and launching of Puncak Niaga Holdings Berhad s ( PNHB ) Homepage. 16 OCT Signing Ceremony of Turnkey Construction Contract between PNSB and Seni Kembara-Hazama-Central Energy-OTV Consortium for the construction of Stage 2 of SSP2 Water Treatment Plant ( WTP ). 14 MAR Rivercare Campaign I for school children was launched by YB Datuk Haji Mohd Khalid Mohd Yunus, the former Deputy Minister of Education. 20 JUL Official Ceremony to mark the release of initial 100 MLD of treated water at SSP2 WTP OCT PNHB won the KLSE Corporate Excellence Award 2000 for Main Board Companies and the KLSE Corporate Sectoral Award 2000 for Main Board Infrastructure Project Companies. 08 NOV PNHB was honoured with the NACRA 2000 Industry Excellence Award for the Construction & Infrastructure Project Companies category APR PNHB received the Certificate of Approval by Lloyd s Register Quality Assurance ISO 9002:1994,EN ISO 9002:1994, BS EN ISO 9002:1994, MS ISO 9002:1994 for Quality Management System of Wangsa Maju WTP. 06 NOV PNHB was awarded the NACRA 2001 Industry Excellence Award under the Construction & Infrastructure Project Companies category. PNSB received the Occupational Safety & Health Award 2000 Gold Award for SSP2 WTP. 10 NOV PNHB was awarded the Anugerah Citra Laporan Tahunan 2001 by Dewan Bahasa dan Pustaka. 01 DEC PNHB was included in the Morgan Stanley Capital International Standard Index. 09 APR 035

38 Milestones MAR PNHB Group s Executive Chairman, YBhg Tan Sri Rozali Ismail was awarded the Asia Water Management Excellence Award 2002 under the Individual Award Category. 31 OCT PNHB was awarded the NACRA 2002 Industry Excellence Award under the Construction & Infrastructure Project Companies Category JAN YAB Dato Seri Dr Mohd Khir Toyo officiated the ceremony to mark the commencement of operations of SYABAS at SYABAS Headquarters. 01 JAN 19 JAN YBhg Tun Dr Lim Keng Yaik, the former Minister of Energy, Water and Communications, witnessed the Signing Ceremony of the Financing Facilities Agreement between SYABAS and a panel of financial institutions at Hotel Istana Kuala Lumpur FEB PNHB received the Asiamoney Corporate Governance Poll 2002 Award for Best Corporate Governance Standards in the Utilities Sector in Malaysia. 14 JUN PNHB received the Institute of Public Relations Malaysia IPRM Crystal Award 2002 under the Environmental Relations Category for the River Rescue Brigade Programme and the Voluntary Relations Category for the Educational Outreach Programme FEB PNHB was awarded the KLSE Corporate Sectoral Award 2003 for Main Board by Bursa Malaysia. 15 DEC Concession Agreement for the Privatisation of Water Supply Distribution in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya between SYABAS, the Federal Government and the Selangor State Government. 31 DEC 31 DEC Handover Ceremony of the 26 WTPs in Selangor, Kuala Lumpur and Putrajaya from CGE Utilities (M) Sdn Bhd to PNSB at Bukit Nanas WTP NOV MAR Signing Ceremony of the Collaboration Agreement between Puncak Research Centre Sdn Bhd and DHI Water Environment Health Denmark. 30 MAR Handover Ceremony of Sg Sireh WTP from Kumpulan Perangsang Selangor Berhad to PNSB. 15 MAY SYABAS garnered the 2007 Malaysia Water Award (Management Category) for PUSPEL. 14 NOV 16 OCT PNHB announced a capital repayment of up to RM million via a cash distribution to reward its shareholders. 28 NOV Official Opening Ceremony of Wisma Rozali, Shah Alam, Selangor. 26 JUNE PNSB s Ekspedisi Menuju Puncak at Mount Kinabalu, Sabah. 14 NOV PNSB received an Honourable Mention for its River Rescue Brigade at the Prime Minister s Corporate Social Responsibility Awards 2007.

39 Milestones MAY PNHB was shortlisted under the Social Reporting Category for ACCA Malaysia Environmental And Social Reporting Awards (MESRA) 2007 [now known as ACCA Malaysia Sustainability Reporting (MaSRA) Awards]. 11 NOV SYABAS was awarded the Malaysian Business Ethics Excellence Award 2008 under the Large Company Category. 17 NOV & 15 DEC PNSB received the Integrated Management System (IMS) Certification for the Provision of Construction Services certified by URS Certification (M) Sdn Bhd (URS) and accredited under United Kingdom Accredited Service (UKAS). 19 NOV PNHB was awarded the NACRA 2008 Industry Excellence Award for Main Board Construction & Infrastructure Project Companies Category. 10 JAN SYABAS launched PUSPEL s new logo with the service motto Friendly, Committed and Trusted as a symbol of SYABAS ongoing commitment to provide the best services to consumers. 19 MAY SYABAS was awarded Silver Awards for Innovation in Information Technology, Computer Software and Training Category and Solution Technology in Water Manager at Water Inno Awards 2009 Malaysian Water Association. 13 AUG PNHB was the winner for Integrated Reporting in an Annual Report at ACCA Malaysia Sustainability Reporting Awards (MaSRA) DEC PNHB was awarded the Certificate of Merit at National Annual Corporate Report Awards (NACRA) JAN SYABAS launched PUSPEL on social networks, follow@puspel on Twitter and Facebook. 2 NOV The Official Launch of SYABAS Operation Command Center ( OCC ). 13 APRIL 8 OCT SYABAS/PUSPEL was awarded the Best Emerging Contact Centre Award 2010 at the Customer Relationship Management & Contact Centre Association of Malaysia Award NOV Two of SYABAS teams PNHB was the winner were awarded Gold Awards for Integrated Reporting at the Innovative & Creative in an Annual Report Circle Central Region for ACCA Malaysia Mini Convention Sustainability Reporting Awards (MaSRA) JAN 8 OCT 9 DEC The Highest Award In The Malaysian Business Ethics Excellence Award 2010/2011 (Main Category Of Large Company) were awarded to both PNSB and SYABAS, respectively. 037

40 Water News 038

41 Water News 039

42 Corporate Achievements 1. Asia Pacific Entrepreneurship Awards (APEA 2011) Entrepreneur of the Year 2011 awarded to YBhg Tan Sri Rozali Ismail on 20 July World Finance Technology Awards 2011 Best Environmental Services Technology Company awarded to PNHB on 28 June World Finance Technology Awards 2011 Technology CEO of the Year (Global) awarded to YBhg Tan Sri Rozali Ismail on 28 June Innovative & Creative Circle (ICC) Central Region Mini Convention 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC AIM Team on 26 April Innovative & Creative Circle (ICC) Central Region Mini Convention 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC Tenaga Tengah Team on 26 April Innovative & Creative Circle (ICC) Central Region Mini Convention 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC HR CREW Team on 26 April Innovative & Creative Circle (ICC) Central Region Mini Convention 2011 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC Tool Guyz Team on 26 April Innovative & Creative Circle (ICC) Central Region Mini Convention 2011 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC BRH Team on 26 April Innovative & Creative Circle (ICC) Central Region 2011 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC Tenaga Tengah Team on July

43 Corporate Achievements 10. Innovative & Creative Circle (ICC) Sabah & Sarawak Region 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC R.O.T. 11 Team on July Innovative & Creative Circle (ICC) Central Region 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC HR Crew Team on July Innovative & Creative Circle (ICC) Central Region 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC AIM Team on July Innovative & Creative Circle (ICC) East Coast Region 2011 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC Tag Team on June Innovative & Creative Circle (ICC) Central Region 2011 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC 3EQ Team on July International Standard Quality (ISQ) Award Masterclass Company Category Award awarded to PNHB on 28 July International Standard ard Quality (ISQ) Award Masterclass Leader Award awarded to YBhg Tan Sri Rozali Ismail on 28 July International Convention on Quality Creative Circle 2011 Award Yokohama, Japan Excellent Award awarded to PNSB s ICC Tag Team on September Malaysia 1000 Industry Excellence Award - Water Sector awarded to PNHB on 14 September

44 Corporate Achievements th Malaysia HR Awards 2011 Employer of Choice Silver Award awarded to PNSB on 13 October Malaysian Society for Occupational Safety and Health (MSOSH) Occupational Safety & Health ( OSH ) Award Gold (Class I) awarded to SSP2 WTP on 22 July Malaysian Society for Occupational Safety and Health (MSOSH) OSH Award 2010 Gold (Class I) awarded to Wangsa Maju WTP on 22 July Malaysian aysian Society for Occupational onals lsafe Safety and Health ealth(mso (MSOSH) SH) OSH Award 2010 Gold (Class I) awarded to Cheras Mile 11 WTP on 22 July Malaysian Society for Occupational Safety and Health (MSOSH) OSH Award 2010 Gold (Class I) awarded to Sg Gombak WTP on 22 July Malaysian Society for Occupational Safety and Health (MSOSH) OSH Award 2010 Gold (Class II) awarded to Rantau Panjang WTP on 22 July ACCA Malaysia Sustainability Reporting Awards Commendation for Integrated Reporting of Annual Report awarded to PNHB on 4 October National Excellence Award 2011 for Occupational Health & Safety 2011 awarded to PNSB on 21 December

45 Corporate Achievements 27. Innovative & Creative Circle (ICC) National Convention 2011 Malaysian Productivity Corporation: 3-Star Gold Award awarded to PNSB s ICC AIM Team on October Innovative & Creative Circle (ICC) National Convention 2011 Malaysian Productivity Corporation: 3-Star Gold Award awarded to PNSB s ICC R.O.T. 11 Team on October Innovative & Creative Circle (ICC) National Convention 2011 Malaysian Productivity Corporation: 2-Star Gold Award awarded to PNSB s ICC HR Crew on October Malaysian Society for Occupational Safety and Health ( MSOSH ) Occupational Safety & Health Award 2010 MSOSH OSH Gold (Class I) and MSOSH OSH Gold (Class II) Award (for Utilities Sector Category) on 22 July 2011: MSOSH OSH Gold (Class I) Award - SYABAS Gombak District - SYABAS Hulu Selangor District - SYABAS Kuala Selangor District - SYABAS Klang District - SYABAS Kuala Lumpur District - SYABAS Petaling District - SYABAS Sepang District MSOSH OSH Gold (Class II) Award - SYABAS Hulu Langat District - SYABAS Kuala Langat District - SYABAS Sabak Bernam District 043

46 Corporate Structure INVESTMENT HOLDING 100% IDEAL WATER RESOURCES SDN BHD ceased operation 100% UNGGUL RAYA (M) SDN BHD ceased operation 100% PERBADANAN URUS AIR SELANGOR BERHAD ceased operation 100% PUNCAK NIAGA (M) SDN BHD operation, maintenance, management, construction, rehabilitation and refurbishment of water treatment facilities 70% SYARIKAT BEKALAN AIR SELANGOR SDN BHD supply & distribution of treated water within Selangor and the Federal Territories of Kuala Lumpur & Putrajaya 100% PUNCAK NIAGA OVERSEAS CAPITAL PTE LTD investment in water, wastewater, solid waste, environmental and oil & gas in Asian countries 98.65% SINO WATER PTE LTD investment in water and wastewater projects in China 100% SINO WATER ENVIRONMENTAL CONSULTANCY (SHANGHAI) CO LTD consultancy services for water and wastewater projects 100% PUNCAK OIL & GAS SDN BHD exploration for the production of oil & gas and other materials and the provision of offshore and onshore engineering works 100% KGL LTD offshore leasing of vessels on bareboat basis 100% PUNCAK RESEARCH CENTRE SDN BHD research & 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% GOM RESOURCES SDN BHD (FORMERLY KNOWN AS GLOBAL OFFSHORE MALAYSIA SDN BHD) providing offshore personnel services and renting of machinery and vessels % XINNUO WATER (BINZHOU) CO LTD treatment of wastewater and related services 80% HEBEI SINO PANLONG INDUSTRIAL WATER SUPPLY CO LTD distribution of water to industrial areas 91.34% LUWEI (PINGDINGSHAN) WATER CO LTD treatment and distribution of water and related services 80% LUANCHENG DAYU WATER SUPPLY CO LTD treatment and distribution of water and related services 100% PUNCAK NIAGA INFRASTRUCTURES & PROJECTS PRIVATE LIMITED carry out activities of infrastructures, constructions and other projects in India ASSOCIATE COMPANY 50% PURNAMA PERSADA SDN BHD dormant ASSOCIATE COMPANY 40% OASIS WATER RESOURCES SDN BHD dormant

47 Organisation Structure - PNSB Note: and DIV denote Division BOARD OF DIRECTORS and DEPT denote Department/Centre and SECT denote Section EXECUTIVE CHAIRMAN YBhg Tan Sri Rozali Ismail SPECIAL FUNCTIONS DIV EXECUTIVE DIRECTORS YBhg Datuk Mohd Yunus Mohd Amin Dr Abd Rahim Awang Kechik SENIOR GENERAL MANAGER Mr Ramalingam K R Arumugam GENERAL MANAGER Encik Kamaruzaman Budin GENERAL MANAGER Encik Rajini Ramlan EXECUTIVE CHAIRMAN S OFFICE MANAGER Puan Nurul-Dinah Kamarudin MANAGING DIRECTOR S OFFICE INFORMATION TECHNOLOGY DEPT GENERAL MANAGER Encik Azlan Shah Tan Sri Rozali CONTRACT & PROCUREMENT DEPT GENERAL MANAGER Puan Hafizah Ahmat FOOD & BEVERAGE DEPT MANAGER Encik Hamzah Awang Kechik MANAGING DIRECTOR YBhg Dato Syed Danial Syed Ariffin O&M DEPT GENERAL MANAGER Encik Johari Pawanchik O&M SECT (ALL WTPS & DAMS) SENIOR MANAGER Encik Ismail Hasan HEALTH, SAFETY & QUALITY MANAGEMENT SECT SENIOR MANAGER Vacant WATER QUALITY & RESEARCH SECT MANAGER Madam Teh Yeok Sien OPERATION & MAINTENANCE (O&M) DIV EXECUTIVE DIRECTOR Encik Abd Rashid Abd Satar CHIEF OPERATING OFFICER/ EXECUTIVE DIRECTOR, ENGINEERING/PROJECT DEVELOPMENT DIV Ir Tan Hui Kuan RESEARCH & DEVELOPMENT (R&D) CENTRE MANAGER Encik Aminuddin Ismail ENGINEERING & PROJECT DEPT GENERAL MANAGER Mr Tan Seng Yuan FINANCE DIV CORPORATE FINANCE DIV BUSINESS DEVELOPMENT DIV HUMAN RESOURCES & ADMINISTRATION DIV CORPORATE SERVICES DIV STRATEGIC RESOURCE & PUBLIC RELATIONS DIV EXECUTIVE DIRECTOR Madam Wong Ley Chan EXECUTIVE DIRECTOR Mr Danny Ng Wah Tar EXECUTIVE DIRECTOR YBhg Dato Nasir Khan Illadad Khan EXECUTIVE DIRECTOR Encik Ismail Hashim EXECUTIVE DIRECTOR Madam Tan Bee Lian EXECUTIVE DIRECTOR YBhg Datuk Dr Muzahet Masruri FINANCE & ACCOUNTS DEPT (TREASURY, AR & AP) SENIOR MANAGER Encik Mohd Shahree Shamsuddin FINANCE & ACCOUNTS DEPT (FINANCIAL ACCOUNTING) SENIOR MANAGER Madam Winnie Chia Li Koon COMPENSATION & BENEFITS DEPT SENIOR MANAGER Encik Hairulizam Muhamad Kastawi CORPORATE FINANCE DEPT SENIOR MANAGERS Mr Nicholas Chew Keng Meng Encik Rozailan Rosli BUSINESS DEVELOPMENT DEPT ASSISTANT GENERAL MANAGER Encik Helmi Faisal Fuad PROPERTY MANAGEMENT DEPT HEAD Vacant ADMINISTRATION DEPT HEAD Vacant PROTECTIVE SERVICES DEPT SENIOR MANAGER Encik Abdul Latif Othman HR MANAGEMENT ASSISTANT GENERAL MANAGER Puan Faridatulzakiah Mohd Bakhry HUMAN RESOURCES MANAGEMENT DEPT SENIOR MANAGER Encik Mohd Sofie Ismail INDUSTRIAL RELATIONS DEPT MANAGER Puan Zalina Mat HUMAN CAPITAL DEVELOPMENT DEPT MANAGER Puan Mahfuzah Muhamad Tarmidi INTERNAL AUDIT DEPT SENIOR GENERAL MANAGER Tuan Haji Sonari Solor SECRETARIAL DEPT GENERAL MANAGER Madam Jenny Lim Yew Heang LEGAL DEPT GENERAL MANAGER Madam Christina Lee Chin Kee PUBLIC RELATIONS DEPT SENIOR GENERAL MANAGER Puan Siti Hajar Ismail STRATEGIC RESOURCE CENTRE SENIOR MANAGER Puan Raja Rozaila Raja Azman 045

48 Organisation Structure - SYABAS EXECUTIVE CHAIRMAN YBhg Tan Sri Rozali Ismail CHIEF EXECUTIVE OFFICER (CEO) YBhg Dato Ruslan Hassan SPECIAL TASK DEPT SPECIAL ASSISTANT TO EXECUTIVE CHAIRMAN / EXECUTIVE DIRECTOR, SPECIAL TASK DEPARTMENT & BUMIPUTERA ENTREPRENEUR PARTICIPATION & DEVELOPMENT Encik Mohamad Isa Mohd Yassin GENERAL MANAGER Mejar (B) Zulkifli Bin Ishak INTERNAL AUDIT DEPT SENIOR GENERAL MANAGER Cik Hayati Ab Wahab SECRETARIAL DEPT ASSISTANT GENERAL MANAGER Madam Lau Pueh Geok CORPORATE AFFAIRS DIV FINANCE DIV EXECUTIVE DIRECTOR Encik Abdul Halem Mat Som EXECUTIVE DIRECTOR Madam Thein Kwee Sim DISTRICT DEPT ASSISTANT GENERAL MANAGER Tuan Haji Mohd Yunus Othman (Acting) LEGAL & ENFORCEMENT DEPT GENERAL MANAGER Vacant CONTRACT & PROCUREMENT DEPT SENIOR MANAGER Encik Wan Abd Aziz Wan Muda (Acting) CORPORATE COMMUNICATIONS & PUBLIC AFFAIRS DEPT ASSISTANT GENERAL MANAGER Ms Priscilla Alfred FINANCE & ACCOUNTS DEPT SENIOR GENERAL MANAGER Vacant NORTHERN ZONE KUALA SELANGOR (Category C) ASSISTANT GENERAL MANAGER Encik Abdul Halim Ishak SABAK BERNAM (Category C) ASSISTANT GENERAL MANAGER Puan Roslina Ab Lazid CENTRAL ZONE KUALA LUMPUR (Category A) ASSISTANT GENERAL MANAGER Mr Kelvin Siew Weng Hoe PETALING (Category A) GENERAL MANAGER Encik Ahmad Suhaidin Ismail SOUTHERN ZONE HULU LANGAT (Category B) SENIOR MANAGER Encik Mohd Indra Arshad KUALA LANGAT (Category C) ASSISTANT GENERAL MANAGER Encik Surani Naim SECRETARY OF WORKS PETALING Encik Yusran Yusof KLANG Encik Syamsul Kamal Tajudin HULU LANGAT Cik Nurul Farhana Kamarulzaman GOMBAK Puan Sharifah Fairus Syed Jaafar KUALA LUMPUR Encik Izhar Zafifi Razalli CUSTOMER SERVICE DEPT GENERAL MANAGER Encik Mohd Yaman Mohd Zin BILLING & RECOVERY DEPT GENERAL MANAGER Encik Shahruddin Ab Rahman HULU SELANGOR (Category C) SENIOR MANAGER Encik Ahmad Fuad Zainudin SEPANG (Category C) MANAGER Ir Wan Amzari Abdul Halim HULU SELANGOR Encik Ahmad Sharul Ishak (Acting) SABAK BERNAM Encik Mohd Azmi Md Nasir GOMBAK (Category A) SENIOR MANAGER (Acting Head of District) Encik Mat Saman Mat Soom KLANG (Category A) SENIOR MANAGER Encik Khairul Anuwar Ismail KUALA LANGAT Puan Maizatul Hazariah Mahayadin (Acting) KUALA SELANGOR Puan Nur Sharlina Shaharuddin (Acting) SEPANG Encik Ezrul Azzim Wahid 046

49 CHIEF OPERATING OFFICER (COO) YBhg Dato Ir Lee Miang Koi HUMAN RESOURCE & ADMINISTRATION DIV TECHNICAL DEVELOPMENT DIV WATER QUALITY, ASSET & STRATEGIC RESOURCES DIV OPERATION DIV PLANNING DIV PROJECT & NRW DIV EXECUTIVE DIRECTOR Tuan Haji Zainuddin Othman EXECUTIVE DIRECTOR Ir V Subramaniam EXECUTIVE DIRECTOR Puan Roowina Merican A Rahim Merican EXECUTIVE DIRECTOR Tuan Haji Yusof Saroji (Acting) EXECUTIVE DIRECTOR Tuan Haji Sanusi Sulieman EXECUTIVE DIRECTOR Encik Yusof Badawi HUMAN RESOURCE & ADMINISTRATION DEPT GENERAL MANAGER Encik Abd Latif Ismail TECHNICAL DEVELOPMENT DEPT GENERAL MANAGER Vacant WATER QUALITY & ASSET DEPT SENIOR GENERAL MANAGER Tuan Haji Muhamad Darif Haji Idris OPERATION & MAINTENANCE DEPT SENIOR MANAGER Encik Hussain Rusmin (Acting) NETWORK & INSTRUMENTATION DEPT GENERAL MANAGER Ir Dr Teoh Seng Giap NON REVENUE WATER (NRW) DEPT GENERAL MANAGER Tuan Haji Ariff Ibrahim SECURITY DEPT ASSISTANT GENERAL MANAGER Encik Ismail Hj Ibrahim STRATEGIC RESOURCES DEPT ASSISTANT GENERAL MANAGER Vacant MECHANICAL & ELECTRICAL DEPT ASSISTANT GENERAL MANAGER Encik Mohd Yusri Abu Samah PLANNING AND DESIGN DEPARTMENT GENERAL MANAGER Ir Khor Tse Tong PROJECT MANAGEMENT DEPT GENERAL MANAGER Ir Ahmad Marzuki Hashim INFORMATION & COMMUNICATION TECHNOLOGY DEPT SENIOR GENERAL MANAGER Tuan Haji Mohd Suhaimi Rafie CONTRACT ADMINISTRATION DEPT SENIOR MANAGER Puan Rohaniah Mohd Danan Note: and DIV denote Division and DEPT denote Department DEVELOPMENT DEPARTMENT GENERAL MANAGER Puan Rosmizah Ahmad denotes Secretary of Works denotes Sections denotes District 047

50 Organisation Structure - POG PUNCAK OIL & GAS SDN BHD ( P) BOARD OF DIRECTORS EXECUTIVE CHAIRMAN YBhg Tan Sri Rozali Ismail PRESIDENT S OFFICE PRESIDENT YBhg Dato Hashim Mahfar BUSINESS DEVELOPMENT DEPT ASSISTANT VICE PRESIDENT Encik Zohrab Zolkipli SPECIAL PROJECT DEPT TENDER & CONTRACT DIV FINANCE & ACCOUNTS DEPT HUMAN RESOURCES & ADMINISTRATION DIV HEAD Vacant VICE PRESIDENT Ir Nasir Ismail VICE PRESIDENT Madam Chan Yuet Leng VICE PRESIDENT Dato Mat Hairi Ismail INFORMATION TECHNOLOGY DEPT SENIOR MANAGER Encik Norazman Mohamad LEGAL DEPT HEAD Vacant SECRETARIAL DEPT ASSISTANT VICE PRESIDENT Madam Chang Siew Khim Note: and DIV denote Division and DEPT denote Department 048

51 Organisation Structure - GOM Resources ( V) (formerly known as Global Offshore Malaysia Sdn Bhd) BOARD OF DIRECTORS CHAIRMAN S OFFICE CHAIRMAN YBhg Dato Dr Khalid Ngah YBhg Dato Hashim Mahfar PRESIDENT OF PUNCAK OIL & GAS SDN BHD ( POG ) SENIOR VICE PRESIDENT Encik Angat Anum Lingoh TENDER & CONTRACT DEPT LEGAL DEPT COMMERCIAL DIV VICE PRESIDENT (POG) Ir Nasir Ismail HEAD Vacant VICE PRESIDENT Encik Jamel Salleh BUSINESS DEVELOPMENT DEPT ESTIMATING DEPT HEAD Vacant HEAD Vacant PROJECT MANAGEMENT DEPT PROJECT MANAGER Encik Shamsul Kamal Halim HEALTH, SAFETY & ENVIRONMENT DEPT ENGINEERING DEPT PLANNING & COST CONTROL DEPT CONTRACTS/ LEGAL DEPT MARINE CONSTRUCTION DEPT SUPPLY CHAIN MANAGEMENT DEPT OPERATIONS DEPT QUALITY ASSURANCE QUALITY CONTROL DEPT INFORMATION TECHNOLOGY DEPT ACCOUNTING DEPT HUMAN RESOURCES & ADMINSTRATION DEPT MANAGER Encik Itan Panyin MANAGER Encik Mohd Yuzli Yaacob HEAD Vacant HEAD Vacant MANAGER Encik Hapiza Akmar Che Daud MANAGER Encik Mohd Zhamry Madza MANAGER Encik Huzaimi Amir MANAGER Encik Amir Zakee Adnal MANAGER Encik Mokhtar Abd Hamid FINANCE MANAGER Encik Rizaini Jasman MANAGER Puan Rasidah Yaacob Note: and DIV denote Division and DEPT denote Department 049

52 050

53 Expanding Horizons In a move that will provide a strong platform for us to bid for lucrative oil and gas contracts, PNHB is fast emerging as a significant Oil & Gas player. During the year, our wholly-owned subsidiary, Puncak Oil & Gas Sdn Bhd acquired both GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) and KGL Ltd with focus on construction and subsea services as well as marine support services and pipe-laying barges. 051

54 Board Of Directors Profile YBHG TAN SRI ROZALI ISMAIL Aged 55 Malaysian Executive Chairman of PNHB Group 052 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 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 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 (effective 3 August 2009 known as Main Market of Bursa Malaysia Securities Berhad) on 8 July 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 Individual Award Category, an award at Asian level, by the Regional Institute of Environmental Technology on 26 March 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 YBhg Tan Sri Rozali was conferred the Jaksa Pendamai ( JP ) Award in conjunction with the 72nd birthday of the Yang di-pertua Negeri Melaka on 9 October 2010.

55 Board Of Directors Profile 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. On 16 January 2009, YBhg Tan Sri Rozali received the title of Kolonel Kehormat 60 Rejimen Pakar Pengendalian Air (AW). In recognition of his excellent services performed with utmost dedication towards the betterment of the community, YBhg Tan Sri Rozali was the proud recipient of the Vocational Excellence Service Award 2009, conferred by the Paul Harris Fellow Award and inducted as an Honorary Rotarian by the Rotary Club of Kuala Lumpur West on 6 November On 16 June 2010, YBhg Tan Sri Rozali received the Anugerah Perdana (Kepimpinan), a Premier Award for Leadership at the Anugerah Usahawan Bumiputera 2010 organised by Gagasan Badan Ekonomi Melayu ( GABEM ). On 20 June 2010, YBhg Tan Sri Rozali was honoured with the Top Achiever Of The Year 2009 Award at the Fourth Business Of The Year Award organised by the SMI & SME Worldwide Network. On 28 June 2011, YBhg Tan Sri Rozali was honoured with Technology CEO of the Year-Global Award by World Finance Magazine under the World Finance Technology Awards 2011 in recognition of his contributions towards the water sector in Malaysia and the region over the past 15 years and commitment to continuously innovate and improve lives in the process. YBhg Tan Sri Rozali received the title Brigedier Jeneral (Kehormat) Pakar Pengendalian Air-Ke-60 RAJD (AW) on 4 July On 20 July 2011, YBhg Tan Sri Rozali received the prestigious Entrepreneur of the Year 2011 Award at the Asia Pacific Entrepreneurship Awards On 28 July 2011, YBhg Tan Sri Rozali was awarded the Masterclass Leader Award at the International Standard Quality ( ISQ ) Award On 9 January 2012, he was recognised as International Distinguished Entrepreneur Of The Year for the Asia Pacific International Brands Summit (Malaysia) 2011 by the Asia Entrepreneur Alliance. 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, Malaysia India Business Council ( MIBC ), Commonwealth Partnership for Technology Management, FELDA Community Social Development Committee, Yayasan Budi Penyayang Malaysia, Malaysian Institute of Management (MIM) and a Trustee of Perdana Leadership Foundation 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 the Universiti Putra Malaysia (July 2007 June 2015), Governor for Malaysia of Asia Pacific Marketing Federation ( APMF ) Foundation, Advisor of Gabungan Persatuan Usahawan Melayu Selangor/Wilayah Persekutuan ( GAPUMS ) and Advisor of Persatuan Bola Sepak Melayu Malaysia ( PBSMM ). He is also the Chairman of Gabungan Wawasan Generasi Felda Berhad and Chairman of Majlis Perundingan Ekonomi Melayu ( MAPEM ). 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 2011/2013 Session. YBhg Tan Sri Rozali is the past Deputy President of the Malaysian Water Association ( MWA ) (2003/2005 Session), former Board Member of the Universiti Utara Malaysia ( ), and past Advisor of the Business and Accounting Faculty Council, the University of Malaya (21 May 2004 to 20 April 2007) and former Trustee of Yayasan WAQAF Malaysia ( YWM ) (January 2008 December 2009). YBhg Tan Sri Rozali is the major shareholder of one (1) listed company, namely TRIplc Berhad, a property company. YBhg Tan Sri Rozali attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

56 Board Of Directors Profile YBHG DATO HASHIM MAHFAR Aged 52 Malaysian Managing Director of PNHB and President of POG YBhg Dato Hashim Mahfar was appointed to the Board of ( PNHB ) and Puncak Niaga (M) Sdn Bhd ( PNSB ) respectively on 1 January He was appointed as the Head of PNHB s Compliance, Internal Control and Risk Policy Committee ( CICR ) and Chairman of Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) Audit Committee on 1 January He was appointed a Director of Puncak Oil & Gas Sdn Bhd ( POG ) on 3 May 2010 and he is the President of POG. He also sits on the Board of several private companies and he is 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 Water Association ( MWA ) and the Malaysian Institute of Directors ( MID ). He did his tertiary education in 1981 at the Universiti Teknologi MARA ( UiTM ) and attended the professional qualification of the Institute of Chartered Secretaries and Administrators (UK). Throughout his career, YBhg Dato Hashim has been very much involved in the corporate services which includes legal and secretarial, contract administration, marketing and corporate finance. He also has extensive operational experience in the property, construction and manufacturing sectors. He was with SAP Holdings Berhad from 1985 to 1996 where he started his working career as an Assistant Company Secretary. Over the years, he rose up to the rank of Group General Manager (Corporate Services). In 1996, he joined Bridgecon Holdings Berhad as Executive Director and was made the Group Managing Director/Chief Executive Officer and he was part of PNSB s Senior Management team in 1998 to YBhg Dato Hashim was the Managing Director of TRIplc Berhad from 2002 to December 2009 prior to joining PNSB. YBhg Dato Hashim attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

57 Board Of Directors Profile YBHG DATO RUSLAN HASSAN Aged 56 Malaysian Non-Independent Non-Executive Director of PNHB and Chief Executive Officer of SYABAS YBhg Dato Ruslan Hassan joined Puncak Niaga (M) Sdn Bhd ( PNSB ) on 1 November 1995 as the Executive Director of Corporate and Legal Affairs Division. When Puncak Niaga Holdings Berhad ( 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 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 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 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

58 Board Of Directors Profile YBHG DATO IR LEE MIANG KOI Aged 58 Malaysian Non-Independent Non- Executive Director of PNHB and Chief Operating Officer of SYABAS YBhg Dato Ir Lee Miang Koi joined Puncak Niaga (M) Sdn Bhd ( PNSB ) in 1995 as General Manager, Business Development. He was subsequently appointed as a Director 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 Syarikat Bekalan Air Selangor Sdn Bhd ( 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 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 34 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 5 Board Meetings of PNHB held in the financial year ended 31 December

59 Board Of Directors Profile YBHG DATO SYED DANIAL SYED ARIFFIN Aged 54 Malaysian Chief Operating Officer of PNHB, Managing Director of PNSB and a Director of SYABAS 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 ( PNHB ) Group since December He began his career with Puncak Niaga (M) Sdn Bhd ( 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 redesignated as Executive Director, Operation I Division on 1 April On 16 November 2007, YBhg Dato Syed Danial was appointed as the Chief Operating Officer of PNHB and PNSB. On 15 February 2012, YBhg Dato Syed Danial was appointed the Managing Director of PNSB and ceased to be the Chief Operating Officer of PNSB. He is also a Director of Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) since 3 September He was appointed as the Chairman of Sino Water Pte Ltd, PNHB s 98.65% owned subsidiary in Singapore on 1 January YBhg Dato Syed Danial previously worked with the Pahang Public Works Department for 10 years, holding positions from Project Engineer ( ) to District Engineer for JKR Cameron Highlands ( ) and the Selangor Water Works Department between 1991 to 1995, where he was the Senior Project Engineer overseeing the construction of the Sg 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, a member of the Universiti Teknologi Mara s Board of Academics, Faculty of Civil Engineering (October March 2014 term), Advisor to the Institute For Infrastructure Engineering & Sustainable Management and he 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. On 2 May 2012, YBhg Dato Syed Danial was appointed as a member of Universiti Putra Malaysia s Committee of Program of Study, Faculty of Science. YBhg Dato Syed Danial attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

60 Board Of Directors Profile YBHG TAN SRI DATO HARI NARAYANAN GOVINDASAMY Aged 62 Malaysian Independent Non-Executive Director of PNHB 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 Narayanan is a member of the Malaysian Institute of Directors and a Registered Professional Engineer with the Board of Engineers Malaysia. He has extensive experience in the field of electrical and electronic engineering and has held various key positions with some established companies as an engineer and entrepreneur. YBhg Tan Sri Dato Hari Narayanan also sits on the Boards of Tenaga Nasional Berhad and SP Setia Berhad, both public listed companies and he is the Chairman of IEV Holdings Limited, Singapore. He also holds directorships in several other private limited companies. 058 YBhg Tan Sri Dato Hari Narayanan attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December 2011.

61 Board Of Directors Profile YBHG TAN SRI DATO SERI DR TING CHEW PEH Aged 69 Malaysian Independent Non-Executive Director of PNHB 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 He also holds a Doctorate in Philosophy, which he obtained from the University of Warwick in 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 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 ( ), Deputy Minister in the Prime Minister s Department ( ), Minister of Housing and Local Government ( ) and Secretary- General of the Malaysian Chinese Association ( MCA ) ( ). He also sits on the Boards of Pan Malaysia Capital Berhad Group, Hua Yang Bhd, Pan Malaysia Corporation Berhad, Johan Holdings Berhad, Huaren Education Foundation and also serves as a director of several private companies. YBhg Tan Sri Dato Seri Dr Ting attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

62 Board Of Directors Profile YAM TENGKU DATO RAHIMAH ALMARHUM SULTAN MAHMUD Aged 46 Malaysian Non-Independent Non-Executive Director of PNHB 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 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 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 with the Hongkong Bank in London, England. She then joined Esso Malaysia Berhad before moving on to DJAJANTI Group, an Indonesian agriculturebased company. YAM Tengku Dato Rahimah is currently the Chairman of Loh & Loh Corporation Bhd and a Director 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 also sits on the Board of a few private limited companies. YAM Tengku Dato Rahimah attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

63 Board Of Directors Profile YBHG TAN SRI DATO AHMAD FUZI HAJI ABDUL RAZAK Aged 63 Malaysian Independent Non-Executive Director of PNHB 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 Certificate in Diplomacy (Foreign Service Course) 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). YBhg Tan Sri Dato Ahmad Fuzi Haji Abdul Razak was previously the Secretary General of the Ministry of Foreign Affairs Malaysia. He joined the Malaysian Diplomatic and Administrative Service in 1972, and 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. He also served as the Director General, Institute of Diplomacy and Foreign Relations. YBhg Tan Sri Dato Ahmad Fuzi is currently the Secretary General of the World Islamic Economic Forum Foundation (WIEF); Chairman of Amanahraya-REIT Managers Sdn Bhd, Seremban Engineering Berhad, Worldvest Energy Sdn Bhd, Theatre Management Associates Sdn Bhd, Leisure Guide Publishing Sdn Bhd and Optima Capital Sdn Bhd; Non- Executive Chairman of Sofgen (Malaysia) Sdn Bhd and Xadacorp Sdn Bhd; Group Chairman of Ace Holdings Sdn Bhd; Deputy Chairman of Asia-Development & Investment Bank Limited (Labuan); Independent Non-Executive Director, Maybank Islamic Berhad; Non- Executive Director, Management Development Institute of Singapore; and Member, Board of Trustees, F3 Strategies Berhad. YBhg Tan Sri Dato Ahmad Fuzi is also a Distinguished Fellow, Institute of Strategic and International Studies (ISIS); Distinguished Fellow, Institute of Diplomacy and Foreign Relations; Deputy Chairman, Malaysian Member Committee of the Council for Security Cooperation in the Asia Pacific (CSCAP Malaysia); Member, Board of Trustees, MERCY, Malaysia; Member, Institute of Advanced Islamic Studies (IAIS); Member, Advisory Board, Asia Pacific Entrepreneurship Award (APEA); and Advisor, High School Bukit Mertajam Alumni Malaysia. YBhg Tan Sri Dato Ahmad Fuzi attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

64 Board Of Directors Profile MR NG WAH TAR Aged 48 Malaysian Executive Director Corporate Finance Division of PNHB and PNSB Mr Ng Wah Tar was appointed to the Board of ( PNHB ) and Puncak Niaga (M) Sdn Bhd ( PNSB ) on 1 January 2010 as the Executive Director, Finance Division and was re-designated to Executive Director, Corporate Finance Division on 1 January He was also appointed a Member of PNHB s Remuneration Committee and the Compliance, Internal Control and Risk Policy Committee ( CICR ) and Syarikat Bekalan Air Selangor Sdn Bhd s ( SYABAS ) Audit Committee on 1 January 2010, respectively. He is 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 the water resources. He is also a member of the Malaysian Water Association ( MWA ). Mr Ng has more than 25 years of working experience in various areas covering auditing, accounting, finance and corporate finance. He commenced his articleship with an accounting firm in 1984 and is a member of MIA, MICPA and CPA Australia. He had previously worked with United Engineers (M) Berhad ( UEM ) from 1994 to 2000 overseeing the finance and accounting functions of UEM. In March 2000, Mr Ng joined PNSB as General Manager, Finance & Accounts and was promoted twice to Senior General Manager, Finance & Accounts on 1 April 2006 and Executive Director, Corporate Finance under the Executive Chairman s Office on 1 April 2007, respectively. He left PNSB on 1 September 2007 to assume the position of Executive Vice Chairman of WWE Holdings Bhd till 30 June Mr Ng resigned as the Executive Vice Chairman of WWE Holdings Bhd and rejoined PNHB Group on 1 July Mr Ng attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December

65 Board Of Directors YBHG TAN SRI ROZALI ISMAIL Executive Chairman of PNHB Group YBHG DATO HASHIM MAHFAR Managing Director of PNHB and President of POG YBHG DATO RUSLAN HASSAN Non-Independent Non-Executive Director of PNHB and Chief Executive Officer of SYABAS YBHG DATO IR LEE MIANG KOI Non-Independent Non-Executive Director of PNHB and Chief Operating Officer of SYABAS YBHG DATO SYED DANIAL SYED ARIFFIN Chief Operating Officer of PNHB, Managing Director of PNSB and a Director of SYABAS YBHG TAN SRI DATO HARI NARAYANAN GOVINDASAMY Independent Non-Executive Director of PNHB YBHG TAN SRI DATO SERI DR TING CHEW PEH Independent Non-Executive Director of PNHB YAM TENGKU DATO RAHIMAH ALMARHUM SULTAN MAHMUD Non-Independent Non-Executive Director of PNHB YBHG TAN SRI DATO AHMAD FUZI HAJI ABDUL RAZAK Independent Non-Executive Director of PNHB MR NG WAH TAR Executive Director Corporate Finance Division of PNHB and PNSB 063

66 Key Personnel Profile - PNSB IR TAN HUI KUAN Aged 58 Malaysian Chief Operating Officer/ Executive Director, Engineering/Project Development Division Ir Tan Hui Kuan joined PNSB in August 2003 as General Manager, Operation II where he had successfully executed and completed an overseas project in Chennai, India, besides local projects in Sabah, Sarawak and Peninsular Malaysia. Ir Tan Hui Kuan was appointed the Chief Operating Officer/Executive Director, Engineering/Project Development Division on 15 February Ir Tan Hui Kuan graduated with a Bachelor of Engineering (Civil) (Hons) Degree from the University of Malaya in He has 25 years of working experience in Jabatan Kerja Raya Malaysia and Lembaga Air Perak in the field of production, distribution, maintenance and consumer services management of a District Waterworks Department, geotechnical investigation, maintenance of military camps, project management of military buildings and infrastructures. The last position held by Ir Tan Hui Kuan was Assistant Director for Millitary Works in Jabatan Kerja Raya, Malaysia. Ir Tan Hui Kuan was appointed as Managing Director of Sino Water Pte Ltd on 8 June He was previously the Alternate Director to Mr Ooi Cheng Swee, the former Managing Director of Sino Water Pte Ltd. He oversees the management, operation and project implementation of all projects undertaken in the People s Republic of China. YBhg Dato Nasir Khan Illadad Khan joined PNSB on 21 February 2006 as Executive Director, Corporate Affairs Division before being appointed as the Executive Director, Business Development Division effective from 1 January He holds a Bachelor s Degree in Social Science, Political Science (Hons) from the Universiti Sains Malaysia and a Master s Degree in 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. YBhg Dato Nasir Khan has more than 32 years of management experience with the Government, holding various positions and covering areas of human resources, security, land development and finance. Prior to joining PNSB, he was the Senior Assistant Director, Budget Division at the Ministry of Finance, Malaysia. YBHG DATO NASIR KHAN ILLADAD KHAN Aged 59 Malaysian Executive Director, Business Development Division YBHG DATUK MOHD YUNUS MOHD AMIN Aged 64 Malaysian Executive Director, Special Functions Division YBhg Datuk Mohd Yunus Mohd Amin joined PNSB on 7 March 2011, as Executive Director (Special Function), Executive Chairman s Office and on 1 March 2012, he was re-designated as Executive Director, Special Functions Division. Prior to the expiration of his contract with PNSB on 14 November 2010, he was the Executive Director, Human Resources & Administration Division of PNSB from 15 November 2007 to 14 November He holds a Degree in Mass Communications from the Universitas Padjajaran Bandung, Indonesia and a Diploma in Public Management from the National Institute of Public Administration (INTAN). Prior to joining PNSB on 15 November 2007, 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 31 years of management experience during his tenure with the Government, inclusive of 27 years of experience as Diplomatic Service Officer. 064

67 Key Personnel Profile - PNSB YBHG DATUK DR MUZAHET MASRURI Aged 60 Malaysian Executive Director, Strategic Resource and Public Relations Division YBhg Datuk Dr Muzahet Masruri joined PNSB on 1 January 2010 as Senior General Manager, Strategic Resource Centre. On 15 February 2012, YBhg Datuk Dr Muzahet Masruri was promoted to Executive Director, Strategic Resource and Public Relations Division. He has 34 years of working experience in economics research, planning and management during his tenure with the Government. Prior to joining PNSB, he held various senior positions including Secretary General in the Ministry of Unity, Culture, Arts & Heritage, Deputy Director General 1 in the Economic Planning Unit, Prime Minister s Department, Deputy Secretary General in the Ministry of Domestic Trade & Consumer Affairs, Deputy Head of Secretariat in the National Economic Action Council (NEAC), Prime Minister s Department, Senior Assistant Director in the Socio-Economic Research Unit, Prime Minister s Department, and Editor in Dewan Bahasa dan Pustaka. He holds a Doctorate in Economics and Masters in Development Economics, both from the University of East Anglia, United Kingdom. He obtained his Bachelor of Arts Degree from the University of Malaya, Diploma in Teaching from Sultan Idris Teachers Training College, Tanjung Malim, Perak. Among the key strategic areas he was involved in during his working experience with the Government include the preparation of the 5-year Malaysia Development Plans, bilateral trade negotiations with the USA and Chile, the preparation of strategic policies and stimulus packages to avert the negative impacts of the Malaysian economy from the Asian Financial Crisis in 1997, the tension between Iraq & the US in 2001 and SARS in He was also instrumental in drafting the national policy guidelines to promote retail and distributive trade as well as addressing the price control mechanism. Madam Tan Bee Lian joined PNSB as Company Secretary on 7 November 1994 and was promoted thrice before assuming her current position as Executive Director, Corporate Services Division on 1 January As Group Company Secretary, Madam Tan is responsible for PNHB Group s company secretarial and regulatory compliance. On 27 June 2008, she was appointed as a Director of Sino Water Pte Ltd. Madam Tan is a Fellow of the Malaysian Association of the Institute of Chartered Secretaries and Administrators ( MAICSA ) and has more than 24 years of working experience in company secretarial practice and corporate work. She had previously worked with Projek Lebuhraya Utara-Selatan Berhad ( PLUS ) and Metramac Corporation Sdn Bhd / Metacorp Berhad. She is also the winner of the ROC-MAICSA Company Secretary Award 2001 for the Listed Company Category. MADAM TAN BEE LIAN Aged 46 Malaysian Executive Director, Corporate Services Division 065

68 Key Personnel Profile - PNSB MADAM WONG LEY CHAN Aged 52 Malaysian Executive Director, Finance Division Madam Wong Ley Chan graduated with a Bachelor of Accountancy Degree from the prestigious National University of Singapore. Madam Wong is a member of Malaysian Institute of Certified Public Accountant ( MICPA ) and Malaysian Institute of Accountant ( MIA ). She has more than 27 years of working experience and extensive knowledge in various areas covering auditing, corporate banking and corporate debts restructuring, corporate finance, accounting, taxation and strategic financial management. Madam Wong started her career in 1984 as a young auditor in an established accounting firm. Since then, she had served diligently in several companies at senior management level, including a 6-year stint in UEM Land Group of Companies, 5 years in TRIplc Bhd and 3 years in Syarikat Bekalan Air Selangor Sdn Bhd. Prior to joining, she was the Vice President, Finance of Scomi Engineering Bhd. On 25 November 2010, she joined PNSB as Executive Director, Finance Division. She is responsible for the overall finance and accounting functions of Puncak Niaga Group of Companies. Dr Abdul Rahim Awang Kechik joined PNSB on 1 December 2010 as Executive Director, Executive Chairman s Office. He holds a Doctorate of Philosophy Degree (PhD) in Management, a Bachelor of Arts (Hons) in Education, both from the Universiti Sains Malaysia. He obtained a Master of Business Administration from the University of Wales, College of Cardiff, United Kingdom, a Postgraduate 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). He has previously worked as a General Manager with PNSB (July 2003 until September 2009). He was an Administrative and Diplomatic Officer with the Government of Malaysia ( ) and has held various senior positions with the Ministry of Finance, the Prime Minister Department, the Ministry of International Trade and Industry (MITI), State Economics Planning Unit State of Negeri Sembilan, Ministry of Agriculture, and Ministry of Housing and Local Government. He has previously served as an Assistant Professor with the Kulliyyah of Economics and Management Sciences at the International Islamic University Malaysia, Academic Administrative Officer at the Universiti Sains Malaysia, and Field Assistant (Oil Palm Plantations) with the Federal Land Development Authority (FELDA). DR ABDUL RAHIM AWANG KECHIK Aged 61 Malaysian Executive Director, Executive Chairman s Office 066

69 Key Personnel Profile - PNSB ENCIK ISMAIL BIN HASHIM Aged 58 Malaysian Executive Director, Human Resources & Administration Division Encik Ismail Bin Hashim joined PNSB on 3 May 2011 as Executive Director, Human Resources & Administration Division. He holds a B.A (Hons) from the Universiti Kebangsaan Malaysia (UKM), Diploma In Education and Diploma in Public Management (INTAN). Prior to joining PNSB, he was the Director of Management Services Division Department of Polytechnic of the Ministry of Higher Education. He has more than 30 years of working experience in various government departments from the Ministry of Information, Director General of the Ministry of Land and Co-operative Development, the National Registration Department of the Ministry of Home Affairs, the Selangor State Government, the Ministry of International Trade & Industry and seconded to the British company under the Public Services Department/British Malaysia Industry & Trade Association Programme (BMITA). Tuan Haji Abd Rashid Abd Satar joined PNSB on 15 February 2012 as the Executive Director, Operation & Maintenance Division. Tuan Haji Abd Rashid Abd Satar holds a Diploma in Civil Engineering from the Universiti Teknologi Malaysia and a Bachelor of Civil Engineering Degree from the University of Glasgow, Scotland. He has 29 years of working experience in the water supply sector. He began his career in 1981 as a Technical Assistant and as a District Engineer of Kuala Selangor/Sabak Bernam Districts with JBAS and continued his service with PUAS from 2002 to 2005 as Senior Manager of the Kuala Langat/Sepang Districts respectively. He was the General Manager of the Klang/ Shah Alam District Office of SYABAS before assuming the position as General Manager of the Petaling District Office from March 2007 until March He was later promoted as Senior General Manager of the Petaling District Office effective from 1 April On 1 February 2011, he was appointed as Executive Director, Operation Division of SYABAS. TUAN HAJI ABD RASHID ABD SATAR Aged 52 Malaysian Executive Director, Operation & Maintenance Division He was awarded the Pingat Pekerti Terpilih (PPT) and Darjah Ahli Mahkota (A.M.S) in 1998 and 2002 respectively by the DYMM Sultan of Selangor for his dedication and services to the Selangor State. TUAN HAJI SONARI SOLOR Aged 56 Malaysian Senior General Manager, Internal Audit Department, Corporate Services Division Tuan Haji Sonari Solor joined PNSB on 10 September 1998 and was appointed as Senior General Manager, Internal Audit Department of SYABAS for the period 1 September 2006 to 15 February He re-joined PNSB on 16 February 2012 as the Senior General Manager, Internal Audit Department. Tuan Haji Sonari Solor is a Chartered Accountant with the Malaysian Institute of Accountants and Fellow Member of the Association of Chartered Certified Accountants (U.K). He holds a professional qualification from the Chartered Institute of Management Accounts (U.K). Tuan Haji Sonari Solor has more than 23 years of working experience at the managerial level in the area of accounting and auditing with several public listed companies. Prior to joining PNSB, Tuan Haji Sonari Solor held the position of Group Division Head, Internal Audit with Land & General Berhad. 067

70 Key Personnel Profile - PNSB PUAN SITI HAJAR ISMAIL Aged 47 Malaysian Senior General Manager, Public Relations Department, Strategic Resource & Public Relations Division Puan Siti Hajar Ismail joined PNSB on 11 Februay 2011 as the Personal Assistant (Social Affair/ Rural Development) to the Executive Chairman. She posseses the Certificate of Advanced Vocal (Grade 8) from the Associated Board of the Royal Schools of Music. After two years, she graduated with a Bachelor s Degree in Music from the Universiti Teknologi MARA (UiTM) in She has more than 25 years of experience in entertainment, event management and education industry and also known as Malaysia s Number One Vocal Teacher. She is also active in Non-Government Organisation such as being an EXCO Member for Gabungan Wawasan Generasi FELDA (GWGF) and as the Chairperson of Pertubuhan Kebudayaan dan Kesenian Generasi FELDA (PERKESAN). 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 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 23 years of working experience in company secretarial practice. Prior to joining PNSB on 1 April 2008, she was a Senior Manager in a leading secretarial consultancy company for 14 years. MADAM LIM YEW HEANG Aged 45 Malaysian General Manager, Secretarial Department, Corporate Services Division PUAN HAFIZAH AHMAT Aged 43 Malaysian General Manager, Contract & Procurement Department, Managing Director s Office Puan Hafizah Ahmat joined a QS Consultant Company in July 1992 as a Quantity Surveyor for three years. She graduated with an Advanced Diploma in Quantity Surveying from the Universiti Teknologi MARA in 1992 and was bestowed the Best Student Award. Prior to joining PNSB as General Manager, Contract & Procurement Department on 4 January 2010, she worked as a Manager with a medium sized construction company from October 1996 to December Puan Hafizah has more than 20 years of experience in quantity surveying works in the construction industry. 068

71 Key Personnel Profile - PNSB ENCIK JOHARI PAWANCHIK Aged 48 Malaysian General Manager, Operation & Maintenance Department, Operation & Maintenance Division Encik Johari Pawanchik joined PNSB on 9 August 2010 as General Manager for the Operation & Maintenance Department. He graduated with a Bachelor s Degree in Science from the Universiti of Kebangsaan Malaysia in 1989 and pursued his study in Engineering and obtained his Master s Degree in Engineering from the University of South Australia, in He has wide exposure in Production Operation Management with various Multinational Companies and Government Linked Company before joining PNSB. Prior to joining PNSB, he was attached to BHIC Boustead Holdings as Operations General Manager since Mr Tan Seng Yuan joined PNSB on 1 April 2011 as General Manager of Engineering & Project Department. He graduated with an Honours Degree in Bachelor of Engineering (Civil) from the University of Malaya in year Mr Tan has 23 years of working experience in the construction industry both in buildings and civil engineering works. Some of the notable projects he managed were the Retail Podium & Basement Carpark of Capital Square (Phase II) at Jalan Munshi Abdullah in Kuala Lumpur; Government Complexes for Parcel C & Parcel D in Putrajaya; Package 3 & 5 of Sg Selangor Water Supply Scheme Phase 3 (SSP3); Stage 1 & 2 of Bukit Badong Distribution Works Phase 3 (DSS3); Telibong Water Supply Scheme in Sabah; Package 1 of New Water Supply Scheme including Upgrading & NRW Improvement Works in Terengganu; Phase II of Beaufort Water Treatment Plant in Sabah & Transmission Pipeline from Mainland Sabah to Labuan, amongst others. MR TAN SENG YUAN Aged 48 Malaysian General Manager, Engineering & Project Department, Engineering/Project Development Division Prior to joining PNSB, he was the General Manager (Project) of JAKS Sdn Bhd. ENCIK AZLAN SHAH TAN SRI ROZALI Aged 26 Malaysian General Manager, Information Technology Department Encik Azlan Shah Tan Sri Rozali graduated with a Bachelor of Arts Degree in Business and Marketing from the Middlesex University, Hendon Business Campus, London, United Kingdom. He joined PNSB on 1 November 2011 and is the General Manager, Information Technology Department of PNSB, overseeing the overall Information Technology Department of PNSB. Encik Azlan Shah started his career in 2009 via an internship at an apparel merchandise company and subsequently promoted to a Manager responsible for the company s sales and marketing, business development, inventory management and administration functions. In 2010, he joined SYABAS as an Executive and had exposures and experiences in the area of human resources & administration, finance & accounts and managing SYABAS district offices. Encik Azlan Shah is an EXCO Member of the Youth Chamber in the Malay Chamber of Commerce for the State of Selangor, Founder and Vice President of 1 Malaysia Youth Entrepreneurs Club. In 2011, he received the title of Leftenan Rejimen Pakar Pengendalian Air Ke-60 RAJD (Askar Wataniah). 069

72 Key Personnel Profile - SYABAS IR V SUBRAMANIAM Aged 62 Malaysian Executive Director, Technical Development Division Ir V Subramaniam is presently the Executive Director, Technical Development Division of Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ). He has worked with the Selangor Water Works Department ( JBAS ) since 1991 and continued his services with the Perbadanan Urus Air Selangor Berhad ( PUAS ) when the Water Works Department was corporatised in March 2002 and subsequently with SYABAS as the Executive Director, Operations when the water supply in Selangor and the Federal Territories of Kuala Lumpur & Putrajaya was privatised on 1 January He holds a Bachelor of Engineering (Hons) (Civil) Degree from the University of Malaya. Ir V Subramaniam has served in the Public Works Department/Water Supply Department/ PUAS/SYABAS in various capacities for the past 38 years since graduation in He has vast experience in managing water supply and privatisation of water supply. Ir V Subramaniam successfully handled the unprecedented 1998 Water Crisis in Selangor and Kuala Lumpur, then as the Deputy Director of the Selangor Water Works Department and published a complete documentation on the management of the water crisis. He has written and presented more than 25 papers on Privatisation/Corporatisation of water supply and on other technical subjects on water supply at both international and national level seminars, conferences and publications including International Water Association ( IWA ), Asia Pacific Economic Corporation ( APEC ), Economic and Social Commission for Asia & Pacific ( ESCAP ) - United Nations and the Asian Development Bank ( ADB ). He has also assisted ADB in several studies on water supply in Asian cities as a domestic consultant appointed by the ADB. For his dedication and service to the State and Nation, 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). He is also the Deputy President of SWAn, the Water Association of Selangor, Kuala Lumpur and Putrajaya. Ir V Subramaniam truly has a great passion for the water industry with vast experience in drinking water supply from source to tap. He is also a strong advocate of our piped water quality being clean and safe and believes only in drinking water direct from the tap. 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 the Malaysian Institute of Accountants ( MIA ) since Madam Thein has more than 25 years of working experience in various areas covering auditing, group accounting, corporate debt restructuring, corporate finance and consumer billing and recovery management. Prior to joining SYABAS, Madam Thein was with the Renong Group of Companies for a total of 7 1/2 years where she served in United Engineers (Malaysia) Berhad ( ) overseeing the group finance and accounting functions and HBN Management Office ( ) where 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 Renong Group subsequent to the financial crisis of In early 2000, she joined Jendela Permai Sdn Bhd, a financial consultancy company prior to joining SYABAS in May Her appointment as Executive Director, Finance Division of SYABAS was with effect from 1 April MADAM THEIN KWEE SIM Aged 48 Malaysian Executive Director, Finance Division 070

73 Key Personnel Profile - SYABAS TUAN HAJI SANUSI SULIEMAN Aged 51 Malaysian Executive Director, Planning Division Tuan Haji 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 in 1984 holding various positions of Project Engineer, Treatment Engineer and Distribution Engineer until In 1993, he joined a consulting engineering firm, Ranhill Bersekutu Sdn Bhd as a Senior Engineer involved in the Johor Baharu Water Supplies Privatisation Scheme. In 1994, he joined Puncak Niaga (M) Sdn Bhd ( PNSB ) as the Project Manager for the RM1.3 billion Sungai Selangor Phase 2 Water Supply Scheme which involves 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. He was thereafter promoted to Chief Operating Officer of Ranhill Civil Sdn Bhd until Prior to joining PNSB again in 2004, he joined WWE Holdings Berhad as the Executive Director. He was involved in the task force for the privatisation of PUAS to SYABAS. Tuan Haji Sanusi was exposed to international construction works when he was assigned for the SR408 million North Jeddah Branch Server Network Project in the Kingdom of Saudi Arabia in 2006 before he was assigned to the position of Executive Director (Project) in SYABAS since August He was appointed as the Executive Director, Network & Planning Division of SYABAS on 1 May 2011, now known as Planning Division. Tuan Haji Zainuddin Othman joined SYABAS on 1 April 2005 as General Manager, Human Resource & Administration Division. He holds a Master of Science in Human Resource Management from the University of Lincolnshire and Humberside, United Kingdom. Prior to joining SYABAS, Tuan Haji Zainuddin was the Head of Human Resource and Administration Department at Proton Edar Sdn Bhd (a subsidiary of Proton Berhad) for six years ( ) and the Head of Human Resources and Administration for five years at PATI Sdn Bhd (a subsidiary of United Engineering (Malaysia) Berhad) ( ). He has more than 23 years of working experience in the areas of human resource management and general office administration. He was promoted to Senior General Manager, Human Resource Division with effect from 1st January 2007 and he is currently holding the position of Executive Director, Human Resource & Administration Division of SYABAS which he has held since January TUAN HAJI ZAINUDDIN OTHMAN Aged 52 Malaysian Executive Director, Human Resource & Administration Division 071

74 Key Personnel Profile - SYABAS ENCIK ABDUL HALEM HAJI MAT SOM Aged 46 Malaysian Executive Director, Corporate Affairs Division Encik Abdul Halem Haji Mat Som joined PNSB in 2004 as 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 subsequently promoted to General Manager, CCPA on 1 January He was promoted to Executive Director, Corporate Affairs Division on 1 January He holds a Diploma in Public Administration (1987) and a Bachelor s Degree in Corporate Administration (1998), both from the Universiti Teknologi MARA ( UiTM ) and a Certificate in Manufacturing Management from the Sanno Institute of Business Administration (SIBA), Tokyo (1990). Encik Abdul Halem started his career as a Deputy Assistant Director of Immigration before joining a Japanese Manufacturing company for three years and subsequently attached to an Arab based multinational company for another two years specialising in Human Resource Management. His exposure in Corporate and PR exercise started when he was the General Manager of Lagenda Abadi Sdn Bhd, an Event Management and PR Agency. He was thereafter appointed as the Managing Director of Comiteg Berhad, a company dealing with Property Development and Investment for four years. Prior to joining PNSB, Encik Abdul Halem was the Group Managing Director of Eeman Group of Companies, which dealt in manufacturing, trading, event consultancy, advertising and production. Encik Abdul Halem has more than 21 years experience in the areas of event management, film production, advertising manufacturing, human resource consultancy and training, administration and capital investment. He is also the President of UiTM Pahang Alumni and a committee member of Yayasan Siswazah Malaysia. Puan Roowina Merican A Rahim Merican joined PNSB on 22 March 1997 as a Manager in the Operations Division responsible for the Environmental Unit. She was subsequently promoted to Senior Manager, Assistant General Manager and General Manager of the Water Resources and Environmental Surveillance Department in PNSB before assuming her position as the Senior General Manager, Water Quality Department under the Strategic Resources Division in SYABAS. On 1 January 2011, she was appointed as an Executive Director, Water Quality, Asset & Strategic Resources Division of SYABAS. She graduated with a BSc (Hons) in Civil Engineering from the University of Surrey in 1984 and subsequently obtained her MEng (Hons) in Water Resources Development in She began her career in 1985 as a Civil Engineer with the Public Works Department, Malaysia ( PWD ) and held various positions during her tenure with PWD until PUAN ROOWINA MERICAN A RAHIM MERICAN Aged 50 Malaysian Executive Director, Water Quality, Asset & Strategic Resources Division 072

75 Key Personnel Profile - SYABAS ENCIK MOHAMAD ISA MOHD YASSIN, AMS, AMK Aged 53 Malaysian Special Assistant To Executive Chairman/ Executive Director, Special Task Department & Bumiputera Entrepreneur Participation & Development Encik Mohamad Isa Mohd Yassin joined SYABAS on 8 February 2007 as a Special Assistant to the Executive Chairman/General Manager of the Bumiputera Entrepreneur Participation & Development ( BEPD ). He was then promoted to Special Assistant to the Executive Chairman/ Senior General Manager of BEPD in May 2008, followed by Special Assistant to the Executive Chairman/Executive Director of BEPD in January Prior to joining SYABAS, he was attached to Matsushita Electric Co (M) Bhd as Executive of Research & Development Department and Production Planning Department. He joined Puncak Niaga (M) Sdn Bhd ( PNSB ) in 1994 as a Special Assistant to Executive Chairman, and later promoted as General Manager of Puncak Alam Housing Sdn Bhd from 2000 till 2004 and as Managing Director of Haluan Prisma Sdn Bhd from 2004 until He was trained in Industrial & Management Training Skills in Matsushita Electric Co in Osaka, under the Look East Policy Scheme in Japan from 1986 to He has vast experience of more than 34 years in town and building development, project monitoring, public relations and manufacturing industries. He was awarded the Darjah Ahli Mahkota Selangor ( AMS ) from DYMM Sultan of Selangor in 2000, followed with Darjah Ahli Mahkota Kedah ( AMK ) from DYMM Sultan of Kedah in Tuan Haji Yusof Saroji holds a Diploma and Advanced Diploma in Civil Engineering from the Universiti Teknologi MARA ( UiTM ). He has 23 years of working experience in the water supply and distribution sector ranging from district water operations to revenue and collection management. Tuan Haji Yusof Saroji is also a Graduate Member, Institution of Engineer Malaysia (IEM). He began his career in 1988 as a Technical Assistant with JBAS and continued his service with PUAS as Senior Manager/Head of District for Kuala Selangor and Sabak Bernam District Offices. He was then promoted to General Manager/Head of Gombak District Office and later assigned as General Manager of the Operations and Maintenance Department of SYABAS in January In August 2010, he joined the District Department as General Manager and he was subsequently promoted to Senior General Manager where he is responsible and accountable for overseeing the operations and management of SYABAS 10 District Offices. He is currently the Acting Executive Director, Operation Division. TUAN HAJI YUSOF SAROJI Aged 46 Malaysian Executive Director, Operation Division (Acting) Tuan Haji Yusof Saroji is also active in several non-profit organisations in the water fraternity and was the Secretary and the Chairman of the Jawatankuasa Tindakan Jurutera Air Daerah Se Malaysia ( JTJAD ) for the 2011/2013 term. He is also the Commandant for the Rejimen Pakar Pengendalian Air Ke-60 RAJD (Askar Wataniah) for the State of Selangor holding the rank of Major since

76 Key Personnel Profile - SYABAS ENCIK YUSOF BADAWI Aged 50 Malaysian Executive Director, Project & Non-Revenue Water Division Encik Yusof Badawi joined SYABAS on 1 May 2011 as Executive Director, Project and Development Division. This Division was later renamed as Project & Non-Revenue Water Division. Encik Yusof Badawi graduated with a Bachelor of Science in Engineering majoring in Civil Engineering and minoring in Construction and Mathematics from the Southern Illinois University, United States of America. He has 25 years of experience in the construction industry at various levels including senior and board level. He has been actively involved in management and implementation of various construction, infrastructure, housing development, waterworks and maintenance projects. Encik Yusof Badawi was involved in the construction, testing and commissioning of Sungai Selangor Water Supply Scheme Phase 1 and Phase II from 1990 to He has also successfully managed the implementation of the RM500 million contract for the maintenance and upgrading of schools in Peninsular Malaysia under the umbrella concept for the Ministry of Education. In May 2003, he was appointed as Chief Executive Officer of a public listed company ( PLC ). Together with the management and his staff team he managed to successfully construct and complete numerous projects and turned the PLC from a loss making company into a profitable group. Encik Yusof Badawi is a member of the Board of Engineers Malaysia, the Malaysia Institute of Management ( MIM ), the Malaysian Water Association and Dewan Perniagaan Melayu Malaysia, Selangor (professional). Tuan Haji Mohd Suhaimi holds a Diploma, Advanced Diploma of Civil Engineering and a Post Graduate Diploma in System Analyst from Universiti Teknologi Mara. He has 32 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, holding various positions until Thereafter, he joined JBAS as a Senior Assistant Director and continued his service under PUAS ( ). He was the General Manager, Information & Communication Technology Division before he was promoted to Senior General Manager, Information & Communication Technology Department on 1 January TUAN HAJI MOHD SUHAIMI RAFIE Aged 56 Malaysian Senior General Manager, Information & Communication Technology Department 074

77 Key Personnel Profile - SYABAS TUAN HAJI MUHAMAD DARIF HAJI IDRIS Aged 56 Malaysian Senior General Manager, Water Quality & Asset Department Tuan Haji Muhamad Darif Haji Idris joined SYABAS on 1 January 2005 when SYABAS took over from PUAS as Senior Manager, Operation Division at SYABAS Headquarters. Prior to assuming his position as General Manager of Klang District Office from April 2007 till March 2009, he was the General Manager of SYABAS Petaling District Office. On 1 April 2009, he assumed the post of Senior General Manager of SYABAS Operation & Maintenance Division. With effect from 1 February 2011, he was transferred to Water Quality, Asset & Strategic Services Division as Senior General Manager, Water Quality & Asset Department. Tuan Haji Muhamad Darif Haji Idris holds a Bachelor of Science (Engineering) (Hons) Degree from the University of Aberdeen, Scotland and Ordinary National Diploma (Building) from the Southampton Technical College, England and has 32 years of working experience in public works and the water supply sector. His career began as Civil Engineer with JKR Tampin District. He was transferred to JBAS as District Waterworks Engineer at the Hulu Langat District and continued his service with PUAS after the corporatisation of JBAS from 2002 to 2004 as Senior Manager, Operation Division. Cik Hayati Ab Wahab is the Senior General Manager of Internal Audit Department. Previously, Cik Hayati was the Senior General Manager of Billing and Recovery Department from January 2011 to September 2011 and General Manager of the Kuala Lumpur Regional Office from 2007 to She joined PNSB in July 2001 as an Internal Auditor before she was assigned to SYABAS in 2005 as Secretary of Works for Kuala Lumpur District. She holds a Bachelor of Accountancy (Hons) Degree from the London Guildhall University and is a Certified Public Accountant with MICPA, Chartered Accountant with MIA and Chartered member of the Institute of Internal Auditor, Malaysia. She has 21 years of working experience in auditing covering various types of industries (eg. construction, plantation, timber, manufacturing and government bodies), due diligence review and profit & cash flow forecasts, internal audits in the areas of financial, operational, risk management and investigation. She has experience working in England, Bangkok and Singapore. CIK HAYATI AB WAHAB Aged 48 Malaysian Senior General Manager, Internal Audit Department 075

78 Key Personnel Profile - SYABAS TUAN HAJI ARIFF IBRAHIM Aged 51 Malaysian General Manager, Non-Revenue Water Department Tuan Haji Ariff Ibrahim joined PNSB in January 2005 and was assigned to SYABAS as General Manager, Operation & Maintenance in January 2006 and early this year, he was appointed as the General Manager of NRW Department. He graduated with a Bachelor of Civil Engineering (Hons) Degree from the Universiti Technologi Malaysia in 1984 and subsequently obtained a Masters Degree of Business Administration from the Universiti Kebangsaan Malaysia in Tuan Haji Ariff has more than 25 years of working experience in the water industry covering operation and maintenance of water treatment plants, operation and maintenance of water supply, construction supervision of water supply schemes, safety and health and also human resource and administrative matters. Prior to joining PNSB, he worked with Jabatan Bekalan Air Selangor for 10 years and another 10 years with CGE Utilities (M) Sdn Bhd. Tuan Haji Ariff has been a member of the Institute of Management Malaysia (MIM) and International Water Association (IWA). He is also actively involved in the Rejimen Pakar Pengendalian Air Ke-60 (Askar Wataniah), Rejimen Askar Jurutera Diraja and is currently holding the rank of Major in the regiment. Ir Ahmad Marzuki Hashim graduated with a Bachelor of Science Degree in Civil Engineering (Hons) from the Ohio University in Athens in 1984 and Master of Science Degree in Environmental, Civil Engineering from the University of Liverpool, England in He is a Civil Engineer by profession and has been with PNSB since March He began his career with PNSB as a Manager of the Dam Operation Department and was subsequently promoted to the positions of Senior Manager, Assistant General Manager of the Dam Operation Department and General Manager of the Business Development Department. He then joined SYABAS as General Manager in the Chief Operating Officer s Office in August Ir Ahmad Marzuki is currently the General Manager, Project Management Department. IR AHMAD MARZUKI HASHIM Aged 50 Malaysian General Manager, Project Management Department Ir Ahmad Marzuki has more than 27 years experience in the water industry and has held various positions during his tenure with the Public Works Department s Waterworks Branch. 076

79 Key Personnel Profile - SYABAS IR DR TEOH SENG GIAP Aged 46 Malaysian General Manager, Network & Instrumentation Department Ir Dr Teoh Seng Giap graduated with a Bachelor of Engineering (Hons) Degree and a Doctor of Philosophy (Engineering) Degree from the University of Western Australia in 1989 and 1995 respectively. He has 14 years of working experience with established engineering consulting firms holding various positions. Ir Dr Teoh has participated in civil engineering design development, contract documentation and administration, project management, proposal and concept paper preparation, and project procurement. He has played key roles in projects involving hydraulic modelling, river engineering and flood mitigation. Ir Dr Teoh was an Associate Director at Sepakat Setia Perunding Sdn Bhd and actively involved in inception, design and implementation of Stormwater Management and Road Tunnel (SMART) Project. He joined PNSB on 1 April 2008 as General Manager (Hydrology & Hydraulics), Chief Operating Officer s Office. On 1 January 2010, he assumed the position as SYABAS General Manager of Network and Instrumentation Department. He is a Professional Engineer registered with the Board of Engineers Malaysia and a member of the Institution of Engineers Malaysia. En Shahruddin Ab Rahman joined SYABAS on 1 July 2009 as the General Manager of the Billing and Recovery Department. He was subsequently transferred as the General Manager of the Kuala Lumpur District effective from 1 January 2011 to 15 February 2012 to familiarise himself with District Operations and thereafter re-assigned again as the General Manager of the Billing and Recovery Department. He holds a Bachelor in Accounting (Advanced Diploma in Accounting) from the MARA University of Technology. Prior to joining SYABAS, he served Telekom Malaysia Berhad ( TM ) for 22 years with various Divisions and subsidiary Companies of TM. He was the Chief Financial Officer for two TM subsidiary Companies namely Government Integrated Telecommunication Networks ( GITN ) Sdn Bhd and TM Payphone Sdn Bhd. He was also involved with the spun off of a few TM Divisions into full subsidiaries of TM such as TM Research Sdn Bhd and TM Payphone Sdn Bhd. He was also involved in the take over of GITN Sdn Bhd, a subsidiary Company of PNB Berhad, to be a full subsidiary of TM. His last project with TM was as the Business Controller for the Malaysian Emergency Response System 999 project where TM was appointed by the Kementerian Tenaga, Air and Komunikasi to develop and maintain the system which will provide emergency facilities for the public. ENCIK SHAHRUDDIN AB RAHMAN Aged 48 Malaysian General Manager, Billing And Recovery Department 077

80 Key Personnel Profile - SYABAS ENCIK AHMAD SUHAIDIN ISMAIL Aged 51 Malaysian General Manager, Petaling District Central Zone District Department Encik Ahmad Suhaidin Ismail joined Jabatan Bekalan Air ( JBA ) as a Technical Assistant on 15 October On 15 August 2002, he was transferred from the Gombak District to Klang/ Shah Alam District as Manager. He was appointed Senior Manager ( ). He was later appointed as Assistant General Manager on 1 January 2007 and subsequently as General Manager on 1 April In 2012, he was posted to his current position as General Manager of Petaling District. He has worked with Jabatan Bekalan Air Selangor ( JBAS ) and had continued his services with PUAS from 2002 to Encik Ahmad Suhaidin has served JBA, PUAS and SYABAS in various capacities for the past 27 years of service. He graduated in 1999 with a Bachelor of Engineering (Civil) Degree from the University of Technology Malaysia. Encik Mohd Yaman Mohd Zin holds an Ordinary National Diploma in Technology (Engineering) from the Oldham College of Technology, England and graduated from the University of Sussex, England in 1982 with a Bachelor of Science Degree in Structural Engineering. Encik Mohd Yaman has 29 years of working experience involving engineering and environmental consultancy, business development, project/construction management, property development and infrastructure/utility construction and management. Prior to joining SYABAS as General Manager, Water Quality Division in 2007, he had held various senior positions in private organisations and public listed companies, the latest being as the Construction Manager for the Jeddah Sewer Network Project with WWE Holdings Bhd. Encik Mohd Yaman Mohd Zin is currently the General Manager, Customer Service Department. ENCIK MOHD YAMAN MOHD ZIN Aged 57 Malaysian General Manager, Customer Service Department ENCIK ABDUL LATIF ISMAIL Aged 50 Malaysian General Manager, Human Resource & Administration Department Encik Abdul Latif Ismail joined SYABAS on 20 August 2010, as General Manager of the Human Resource & Administration Department. He holds a Master Degree in Science, Human Resources Management from the University of Lincolnshire & Humberside, United Kingdom. Encik Abdul Latif had the opportunity to serve an established exchange prior to him joining SYABAS. He has extensive exposure in Resourcing, Employee Relations, Industrial Relations, Training & Development, Performance Management, Rewards and Benefits. He took the lead in various human resources strategic initiatives such as job design, job evaluation, rightsizing, culture profiling & culture internalisation and effective employees communication. 078

81 Key Personnel Profile - SYABAS PUAN ROSMIZAH AHMAD Aged 43 Malaysian General Manager, Development Department Puan Rosmizah Ahmad joined PUAS on 2 September 2002 as an Engineer based at the Development Department at the Head Quarters ( HQ ). On 1 January 2005, Puan Rosmizah continued her appointment with SYABAS based at the Development Department at SYABAS HQ. Upon graduating with a Bachelors Degree in Civil Engineering (Honours) from Universiti Teknologi Malaysia in 1994, Puan Rosmizah began her career as an Engineer in civil and structural engineering design. To-date, she has over 18 years of working experience in the field of engineering. Prior to working at SYABAS, Puan Rosmizah joined a consultancy firm for 8 years majoring in Structural Engineering Design. Puan Rosmizah is a Member of the Board of Engineers, Malaysian Water Association ( MWA ) and International Water Association. Puan Hayati Abd Rahman graduated with a Degree in Social Science majoring in Computer Science from University of Waikato, Hamilton, New Zealand in 1991 and holds a Master of Science in Information Management from the University Institute Technology Mara ( UITM ) in She has 20 years of working experience in the computer environment from various types of industries (eg. plantation, properties and government agencies), system development, core system migration and implementation. She began her career in 1991 as a Programmer at Sime Darby Plantation and later joined Rubber Research Institutes (RRI) as Analyst Programmer. In 1992, she joined TTDI Development Sdn Bhd and grew her career path from Analyst Programmer to Manager heading the Management Information System Section until On 1 April 2003, she assumed the post of Senior Manager heading the Application Development Section of Information & Communication Technology Division at Suruhanjaya Syarikat Malaysia ( SSM ) prior to joining SYABAS as a General Manager, Information & Communication Department on 15 January PUAN HAYATI ABD RAHMAN Aged 45 Malaysian General Manager, Information & Communication Technology Department 079

82 Key Personnel Profile - SYABAS IR KHOR TSE TONG Aged 37 Malaysian General Manager, Planning & Design Department Ir Khor Tse Tong joined SYABAS on 24 January 2011 as Assistant General Manager, Planning & Design Department ( PDD ) and was subsequently promoted in 2012 as General Manager of PDD. He is a Professional Engineer registered with the Board of Engineers Malaysia ( BEM ) and has more than 12 years of working experience as a Design Engineer for property developments in the civil and structural aspects, as a contractor in a high rise building construction, as an Engineer and Project Manager for NRW and water supply distribution network modeling projects. Ir Khor Tse Tong graduated from the Universiti Kebangsaan Malaysia ( UKM ) in 1999 with a Degree in Civil & Structural Engineering. He began his career as a Design Engineer for a civil and structural consultancy firm. He then joined PABW in 2011 to work in the Selangor NRW Project. He joined Salcon Engineering Berhad in 2003 for an NRW project in Sandakan, Sabah. Prior to joining SYABAS, Ir Khor Tse Tong worked for Halcrow Consultant in Malaysia since Mejar (B) Zulkifli Ishak joined SYABAS on 3 January 2012 as the General Manager of Special Task & Bumiputera Entrepreneur Participation & Development Department ( STD ). Mejar (B) Zulkifli obtained his Bachelor of Public Management (Hons) Degree from the Universiti Utara Malaysia and later obtained a Masters Degree in Public Management from the same university. Mejar (B) Zulkifli also has a Diploma in Landscape Architecture and Certificate in Town and Regional Planning from UiTM Shah Alam, Selangor and is a member of the Malaysia Institute of Landscape Architecture ( ILAM ) and Malaysia Institute of Planner ( MIP ). Mejar (B) Zulkifli has 28 years experience in Town and Regional Planning, Local Authority and Land Development, Urban Landscape, Entrepreneurship, Disaster and Preparedness, Defence and Strategic, Management and Training before joining SYABAS. During his service in the army, he had been entrusted to lead as an officer in various appointments such as Platoon Commander, Regiment and Battalion Adjutant, Aide-Camp, Staff Officer, Company Commander and Officer in Command with Training Unit, Operation Battalions, Brigade and Division Headquarters. MEJAR (B) ZULKIFLI BIN ISHAK Aged 48 Malaysian General Manager, Special Task & Bumiputera Entrepreneur Participation & Development Department 080

83 Key Personnel Profile - Sino Water Pte Ltd YBHG DATO SYED DANIAL SYED ARIFFIN Aged 54 Malaysian Chairman, Sino Water Pte Ltd YBhg Dato Syed Danial Syed Ariffin was appointed to the Board of Sino Water Pte Ltd ( Sino Water ) and as the Chairman of Sino Water on 1 January 2010, respectively. He is the Chief Operating Officer of ( PNHB ) and Managing Director of Puncak Niaga (M) Sdn Bhd ( PNSB ). YBhg Dato Syed Danial is a civil engineer by profession and has been with the PNHB Group since December He holds a BSc (Hons) Degree in Civil Engineering from the University of Aston in Birmingham, United Kingdom. As Chairman of Sino Water, YBhg Dato Syed Danial Syed Ariffin is responsible for the stewardship of the Board of Sino Water and its subsidiaries in the People s Republic of China. The full details of YBhg Dato Syed Danial s profile are as detailed on page 057 of this Annual Report. Ir Tan Hui Kuan was appointed as Managing Director of Sino Water on 8 June Prior to his appointment as Managing Director of Sino Water, he was the Alternate Director to Mr Ooi Cheng Swee, the former Managing Director of Sino Water. He is the Chief Operating Officer/Executive Director, Engineering/Project Development Division of PNSB. Ir Tan Hui Kuan graduated with a Bachelor of Engineering (Civil) (Hons) Degree from the University of Malaya in As the Managing Director of Sino Water, Ir Tan Hui Kuan 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. IR TAN HUI KUAN Aged 58 Malaysian Managing Director, Sino Water Pte Ltd The full details of Ir Tan Hui Kuan s profile are as detailed on page 064 of this Annual Report. 081

84 Key Personnel Profile - POG YBHG DATO HASHIM MAHFAR Aged 52 Malaysian President/ Director YBhg Dato Hashim Mahfar was appointed to the Board of Puncak Oil & Gas Sdn Bhd ( POG ) on 3 May He is also the President of POG and the Managing Director of Puncak Niaga Holdings Berhad ( PNHB ). He did his tertiary education in 1981 at the Universiti Teknologi MARA ( UiTM ) and attended the professional qualification of the Institute of Chartered Secretaries and Administrators (UK). Throughout his career, YBhg Dato Hashim has been very much involved in the corporate services which includes legal and secretarial, contract administration, marketing and corporate finance. As the President of POG, YBhg Dato Hashim Mahfar is responsible for the operations and management of Puncak Group s Oil & Gas Division. The full details of YBhg Dato Hashim Mahfar s profile are as detailed on page 054 of this Annual Report. Ir Nasir Ismail joined POG on 15 February 2012 as the Vice President, Tender & Contract Division. Ir Nasir was appointed Director of POG and GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) on 21 February Ir Nasir Ismail is a member of the Board of Engineers (BEM), MWA, SWAn, IWA, IACCM and Registered Gas Engineer with the Energy Commission, Ministry of Energy, Green Technology and Water. He holds a Bachelor of Science Degree in Civil Engineering from the Memphis State University, Tennessee, USA in 1985 and MSC in Environmental Engineering from the Shimane University, Japan in IR NASIR ISMAIL Aged 49 Malaysian Director/ Vice President, Tender & Contract Division Prior to joining POG, Ir Nasir was one of the task force members for the privatisation of Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) and has served Puncak Niaga (M) Sdn Bhd ( PNSB ) since 1998 and his designation in SYABAS prior to joining POG was the Senior General Manager, Contract & Procurement Department. Ir Nasir had also served Majlis Perbandaran Seremban, Consulting Engineer firms, contractors and Gas Malaysia Sdn Bhd. 082

85 Key Personnel Profile - POG YBHG DATO MAT HAIRI ISMAIL Aged 50 Malaysian Vice President, Human Resources And Administration Division YBhg Dato Mat Hairi Ismail was appointed as the Vice President, Human Resources and Administration Division of POG on 1 April He graduated from the Universiti Kebangsaan Malaysia in 1985 with a Bachelor in Accounting (Hons) Degree and is a member of the Malaysian Institute of Accountants ( MIA ). In 1985, he started his career as an Accountant at the Accountant General s Office in Labuan, and from 1989 to 1992 he served at the Malaysian High Commission in London and from 1992 to 1994, he was attached with the Langkawi Development Authority ( LADA ). From 24 May 1994 to 3 May 2005, YBhg Dato Mat Hairi was the Executive Director, Finance Division of PNSB. YBhg Dato Mat Hairi was a Director of Triplc Berhad on 3 September 1999 and resigned as Non-Independent Non-Executive Director on 5 October YBhg Dato Mat Hairi was also a former Managing Director of WWE Holdings Bhd from 7 July 2003 to 1 September He was re-designated to Executive Director on 1 September 2007, before retiring from the Board of Directors at the 19th Annual General Meeting on 26 March Prior to joining POG, YBhg Dato Mat Hairi was an Executive Director in Gabungan Wawasan Generasi Felda Berhad. YBhg Dato Mat Hairi is the younger sibling to YBhg Tan Sri Rozali Ismail, the Executive Chairman and substantial shareholder of PNHB. YBhg Dato Mat Hairi is a member of Malaysian Institute of Directors ( MID ) and The Malaysian Water Association ( MWA ). 083

86 Key Personnel Profile - GOM Resources YBHG DATO DR KHALID NGAH Aged 65, Malaysian Chairman YBhg Dato Dr Khalid Ngah was appointed to the Board of GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) ( GOM Resources ) on 15 December He is the Chairman of the Board. YBhg Dato Dr Khalid Ngah graduated from the Carleton University in Ottawa, Canada, in 1970 with a Bachelor of Science (Hons) in Geology. After graduation, from 1970 until 1973, he served Jabatan Kajibumi Malaysia as the Negeri Sembilan State geologist. He then pursued and obtained his Master of Science degree in Geology from the Oklahoma State University, Stillwater, OK, USA, specialising in exploration for Petroleum. On his return to Malaysia in 1975, he was assigned to serve Petronas until Under the offer by Petronas, he furthered his tertiary education at the Imperial College, University of London, UK, in the field of Petroleum Geology. He completed his doctorate program and was awarded a PhD degree in Geology, specialising in Petroleum exploration, in After obtaining his doctorate degree in 1990, he served Petronas as its General Manager of Exploration and Production Research Division and in 1997, YBhg Dato Dr Khalid Ngah opted for optional retirement. YBhg Dato Dr Khalid Ngah was formerly Joint Managing Director of Kedah Cement Holdings Berhad, Executive Chairman of FPSO Tech Sdn Bhd and an Independent Director of Eastern Pacific Industrial Corporation (EPIC) Berhad. He is currently a board member of KNM Berhad, Chairman of Tubex Sdn Bhd, a subsidiary of EPIC Berhad and also a board member of Tati Production Sdn Bhd, a subsidiary of TATIUC (Tati University College of Terengganu). He is a member of the American Association of Petroleum Geologists (AAPG) and a life member and past president of the Geological Society of Malaysia. He was awarded the Achievement Award from AAPG in 1994 for Advancement in Malaysian Petroleum Industry and for Contribution to AAPG as Regional Advocate. 084

87 Key Personnel Profile - GOM Resources ENCIK ANGAT ANUM LINGOH Aged 56, Malaysian Director / Senior Vice President Encik Angat Anum Lingoh was appointed as Director of GOM Resources on 21 February He is the Senior Vice President of GOM Resources. Prior to the acquisition of GOM Resources by POG, he was the Country Manager and Project Director of GOM Resources. Encik Angat Anum Lingoh graduated from the University of Newcastle in England with a B.Sc. in Mechanical Engineering. He started off as a Contract Engineer in Sarawak Shell Berhad in August 1982 after which he held various technical and senior management positions in Shell and other Installation Contractors. He now has more than 30 years of working experience in the Offshore Oil & Gas industry covering corporate office, operations, project, finance and human resource management. He also majors in offshore pipeline and platform project management, installation, repairs replacements and commissioning. Encik Angat Anum Lingoh had working experiences in major and established Oil & Gas companies locally and internationally such as Sarawak Shell Berhad, Swiber Marine (Malaysia) Sdn Bhd, Brunei Shell Petroleum Co, Technip Engineering in Brunei, Shell Petroleum Development Company of Nigeria, Tengizchevroil Chevron in Kazakhstan and Woodside Energy Limited in Australia. Encik Jamel Salleh was appointed as Vice President of GOM Resources on 19 July Encik Jamel Salleh s career started off with Elf Aquitaine in February 1986 and he has more than 25 years of working experience in the Oil & Gas industry covering corporate office, drilling operations, project, logistics and warehousing and Business Development. He was involved as a committee member set up by the Joint Customs Committee to formalize the Master Exemption List for the Malaysia Thailand Joint Development Area from ENCIK JAMEL SALLEH Aged 53, Malaysian Vice President Encik Jamel Salleh has working experiences in major and established Oil & Gas companies locally and internationally such as Idemitsu Exploration of Japan, Agip Ltd of Italy, Petronas Carigali Sdn Bhd (Baram Delta Operation), Carigali-Triton Operating Co Sdn Bhd, Carigali-Hess Operating Co Sdn Bhd and PJ Energy Services Co Ltd of Thailand. 085

88 Five-Year Financial Highlights 31 Dec Dec Dec Dec Dec 07 (Restated) (Restated) (Restated) (Restated) RM 000 RM 000 RM 000 RM 000 RM 000 KEY RESULTS Revenue 2,591,509 2,055,523 # 2,089,855 # 2,062,653 # 2,207,938 # Profit before tax (75,163) (108,658) # (303,406) # (521,915) # (435,754) # Net profit attributable to owners of the parent 9,320 (90,926) # (304,783) # (419,796) # (332,169) # STATEMENTS OF FINANCIAL POSITION Property, plant and equipment 452, ,324 # 234,313 # 539,225 # 440,740 # Service concession assets 7,677,592 7,685,002 # 7,647,906 # 6,529,522 # 6,166,667 # Other non-current assets 2,742,750 1,504,548 # 1,482,787 # 1,287,723 # 1,248,470 # Current assets 1,755,098 2,395,880 1,994,738 1,388,883 1,473,942 Total assets 12,628,269 11,830,754 11,359,744 9,745,352 9,329,819 ISSUE AND PAID-UP CAPITAL Share capital 411, , , , ,143 Reserves (304,038) (364,669) # (229,355) # (681,879) # (254,074) # Equity attributable to owners of the parent 107,105 46,474 # 181,788 # (270,736) # 157,069 # Net assets per share attributable to owners of the parent (RM) # 0.44 # (0.66) # 0.38 # RATIOS AND STATISTIC Net profit margin attributable to owners of the parent (%) 0.36 (4.42) # (14.58) # (20.35) # (15.04) # Basic earnings per share attributable to owners of the parent (sen) 2.28 (22.23) # (74.50) # (102.61) # (81.19) # Loans and borrowings (RM 000) 6,428,252 5,486,963 5,376,769 4,784,802 3,760,457 Service concession obligations 4,169,539 4,285,000 # 4,369,135 # 4,444,042 # 4,493,730 # Gearing ratio (%) # 98 # 100 # 98 # Current ratio (times) # 1.22 # 0.94 # 1.23 # # These comparatives have been restated to take into account the effects of the adoption of IC Interpretation 12: Service Concession Arrangement. 086

89 Five-Year Group Performance REVENUE RM 000 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT RM 000 BASIC EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE PARENT Sen 3,000,000 2,500,000 2,000,000 1,500,000 2,207,938 2,062,653 2,089,855 2,055,523 2,591, , , ,000 (90,926) 9, (22,23) ,000, , , , ,000 (332,169) (419,796) (304,783) (81.19) (102.61) (74.50) EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT RM , , ,000 50, , ,788 46, ,105 TOTAL ASSETS RM ,000,000 12,000,000 9,329,819 9,745,352 11,359,744 11,830,754 12,628,269 NET ASSETS PER SHARE ATTRIBUTABLE TO OWNERS OF THE PARENT RM ,000, , , , ,000 (270,736) 6,000,000 3,000, , , (0.66)

90 Share Price & Volume Traded SHARE PRICE MOVEMENT Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr Volume of Shares 9,524 8,442 10,637 4,906 8,149 5,894 5,606 8,210 19,550 17,480 9,750 9,533 83, ,000 94,550 27,560 Traded ( 000) PNHB Monthly Average Closing Prices (RM) FTSE Bursa 1,520 1,491 1,545 1,535 1,558 1,579 1,549 1,447 1,387 1,492 1,472 1,531 1,521 1,570 1,596 1,571 Malaysia Kuala Lumpur Composite Index ( KLCI ) Monthly Average Closing Prices SHARE PRICE (RM) KLCI 2,000 1,500 1, ,000 VOLUME OF SHARES TRADED ( 000) 150, ,000 50,000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr Volume of Shares Traded PNHB Monthly Average Closing Prices Kuala Lumpur Composite Index (KLCI) Monthly Average Closing Prices 088

91 Financial Calendar MAY 2011 TUESDAY First Quarter Results ended 31 March 2011 with limited review conducted by the Company s External Auditors 25 AUGUST 2011 THURSDAY Second Quarter Results ended 30 June NOVEMBER 2011 WEDNESDAY Third Quarter Results ended 30 September FEBRUARY 2012 TUESDAY Fourth Quarter Results ended 31 December APRIL 2012 THURSDAY Date of Audited Financial Statements for the financial year ended 31 December JUNE 2012 MONDAY Published Annual Report JUNE 2012 TUESDAY 2012 Fifteenth Annual General Meeting 089

92 090

93 Developing Natural Resources Without natural resources, life is impossible. And without abundant resources, prosperity is out of reach. At PNHB, we regard ourselves as responsible for the systematic development of natural resources in the service of man; and we treat such resources as assets which must be preserved for the next generation increased, not impaired, in value. Nor do we forget that one of the most valuable of our natural resources is our people, and that we must each and every one of us must utilise our abilities and play our role towards environmental conservation and preservation to the common good of mankind. 091

94 Operations Review Puncak Niaga (M) Sdn Bhd 2011 WAS ANOTHER SUCCESSFUL YEAR FOR PUNCAK NIAGA (M) SDN BHD ( PNSB ) IN ITS OPERATIONS OF WATER TREATMENT PLANTS ( WTPS ) AND DAMS IN SPITE OF THE CHALLENGING SITUATION. PNSB IN 2011 MAINTAINED ITS CONSISTENTLY HIGH QUALITY AND SAFETY STANDARDS FOR THE WTPS WITH OPTIMUM CAPACITY, RESULTING IN A SUPPLY OF HIGH QUALITY TREATED WATER THAT SURPASSED THE PREVIOUS YEAR S LEVELS. MEANWHILE, A RIGOROUS MAINTENANCE SCHEDULE AND SEVERAL FACILITIES UPGRADES ENSURED THE PEAK PERFORMANCE OF OUR INFRASTRUCTURE. WATER TREATMENT PLANT OPERATIONS Cause of Shutdown Hours of Shutdown Periodical process control monitoring to ensure optimisation of water treatment process PNSB operates, manages and maintains 29 WTPs with a combined capacity of 1,930 million litres per day. In 2011, PNSB delivered million cubic metres of treated water, an increase of 1.63% from million cubic metres of treated water produced in The increase in the treated water production was due to higher treated water demand from Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ). In 2011, our WTPs achieved an impressive 99.9% compliance with stipulated treated water quality standards, based on 19,670 samples tested by both the Independent Laboratory and our Central Laboratory. As well as quality, we are dedicated to providing dependability of supply. To ensure that consumers can rely on a constant supply of treated water, we endeavour to minimise unscheduled WTP shutdowns. Although our WTPs experienced hours of shutdowns for reasons beyond our control in 2011 (as shown in the table below), this did not result in interruptions to the consumers water supply, and all of our WTPs consistently met production demands. Raw water violation TNB power supply interruption Pipe leak/burst Total Hours The performance of our WTPs in 2011 was as follows:- The Sungai Selangor Phase 2 ( SSP2 ) WTP produced million cubic metres of treated water, up 0.46% on the million cubic metres recorded in The average daily production increased to million litres from million litres in 2010, exceeding SSP2 WTP s daily design capacity of 950 million litres. The 26 WTPs under the Privatisation Cum Concession Agreement dated 22 September 1994 ( PCCA ) produced million cubic metres of treated water, a 3.10% increased from the million cubic metres recorded in The 26 WTPs production of treated water in 2011 is the highest since The average monthly treated water production for 2011 was million cubic metres as against million cubic metres in The WTPs exceeded their monthly designated quantity of million cubic metres as required in the PCCA. 092

95 Operations Review Puncak Niaga (M) Sdn Bhd Wangsa Maju WTP produced million cubic metres of treated water, an increase of 0.18% on the million cubic metres recorded in the previous year. The average daily production was million litres as against million litres in 2010, exceeding Wangsa Maju WTP s daily design capacity of 45 million litres and daily designated quantity of 31.5 million litres as stated in the Concession Agreement. Sungai ( Sg ) Sireh WTP achieved a yearly treated water production of 6.97 million cubic metres, 6.19% less than the 7.43 million cubic metres produced in The average daily production was million litres compared to million litres in Sg Sireh WTP s daily design capacity is million litres. Sg Lolo (new) WTP achieved a yearly treated water production of 1,017,998 cubic metres in 2011, 27.3% more than 799,694 cubic metres produced in The average daily production was 2.79 million litres compared to 2.19 million litres in Sg Lolo (new) WTP daily design capacity is 2.5 million litres. Overall, our 29 WTPs performed well and met SYABAS requirements for treated water as well as the Drinking Water Quality Standards as stipulated by the Ministry of Health ( MOH ). PLANT IMPROVEMENT WORKS In line with our absolute commitment to customer satisfaction and staff well-being, in 2011, PNSB carried out a number of plant improvement works, focusing on health and safety measures. Installation of Auto Chlorine Shut-Off System During the year, we installed an Auto Chlorine Shut-Off System at nine of our WTPs to protect personnel and equipment from chlorine exposure in the event of a leak. The system is a battery-powered fail-safe device designed to provide safety where toxic gas cylinders are in use. The automatic valve operator which is mounted on each cylinder will close the cylinder s valve upon receiving the signal for shut-off. The shut-off can be triggered by sensors such as a gas leak detector, seismic sensor, fire alarm, or emergency panic button. Installation of Pressure Filter System at Sg Serai WTP A new Pressure Filter System installed at Sg Serai WTP addressed the issues of water quality at this WTP in particular, on the aluminium violation of treated water. Since the installation of the Pressure Filter System completed on 1 April 2011, there has been no violation of water quality reported. Installation of Chlorine Scrubber System at Gombak WTP The Gombak WTP did not install the Auto Chlorine Shut Off System and the existing chlorine leak detection system does not contain the spread of chlorine gas, to ensure the safety of the people, especially the WTP staff, in the event of a chlorine leak. As a contingency plan, a chlorine scrubber system was installed. The system neutralises the chlorine gas by using caustic soda through a random packing bed. Electrical Load Transfer from TNB Substation to Consumer Substation at Rantau Panjang WTP In response to the inconsistent quality of the power supply to Rantau Panjang WTP, PNSB opted to transfer its electrical load from the existing 33kV TNB Substation to an 11kV Consumer Substation. Since the completion of the transfer works on 15 June 2011, Rantau Panjang WTP has recorded no power supply interruption at all as opposed to pre-transfer works, whereby hours of power failure and 64 incidents of power transience were reported between 1 January 2011 and 31 December Overall, our 29 WTPs performed well and met SYABAS requirements for treated water as well as the Drinking Water Quality Standards as stipulated by the Ministry of Health ( MOH ). Preventive Maintenance: Inspecting electrical activator 093

96 Operations Review Puncak Niaga (M) Sdn Bhd Korean delegates visit to SSP2 WTP 094 Rehabilitation and Upgrade of Automated Filter Operation for Sg Batu WTP Rehabilitation and upgrade works for Sg Batu WTP s filtration automation system were carried out to enhance the system s efficiency, functionality and reliability whilst increasing Sg Batu WTP s operation and maintenance efficiency. The incorporation of the SCADA System has enabled the filter backwashing process to be conducted automatically for better process control. WATER FILTER PERFORMANCE We continuously and constantly monitor the water filter performance by tracking each filter s running hours as filtration is the final step in the water treatment process, removing fine suspended solids remaining after the clarification process, and further cleansing and polishing the treated water. Details of the Filter Performance Monitoring are set out under Preserving Our Environment section on pages 159 and 160 of this Annual Report. Raw Water Drawn for Treatment The following table summarises the amount of raw water drawn from the various rivers and dams for treatment at PNSB s WTPs in No. Source Volume Withdrawn (m 3 ) 1 Sg Bernam 10,687,310 2 Sg Batang Kali 4,155,650 3 Sg Dusun 404,414 4 Sg Inki 2,284,940 5 Sg Tengi 686,370 6 Sg Gerachi 1,806,680 7 Sg Darah 170,070 8 Sg Selangor 367,377,893 9 Sg Gombak 26,707, Sg Ampang 6,960, Sg Rangkap 3,911, Sg Kepong 773,395 No. Source Volume Withdrawn (m 3 ) 13 Sg Rumput 285, Sg Langat 212,437, Sg Serai 410, Sg Lolo 1,265, Sg Pangsoon 1,402, Sg Labu 1,030, Sg Sireh 9,405, Batu Dam 41,311, Klang Gates Dam 55,780, Tasik Subang Dam 3,734,000 Total 752,987,773 DAM OPERATIONS PNSB operates and maintains the Sg Langat, Klang Gates and Tasik Subang Dams. Performance in 2011 was good, and there was no critical storage drawndown at any of the dams. During the year, total annual rainfall at two of the three dams catchments areas was lower than the mean average rainfall (based on data from 1998 to 2010), as shown below:- Mean average Annual rainfall Variance rainfall 1998 against average Dam (mm) (mm) (%) Sungai Langat Dam 2, , Klang Gates Dam 2, , Tasik Subang Dam 2, ,

97 Operations Review Puncak Niaga (M) Sdn Bhd Our operators at the Dams are guided by the Reservoir Operations Rules Curves ( RORC ) method to monitor, analyse and forecast the rainfall pattern and levels in the dams catchment areas. This allows us to make the right decision during critical situations and to meet the demand from the WTPs whilst conserving as much reservoir water as possible. At Sg Langat and Klang Gates Dams, the reservoir levels were maintained above RORC No. 1 throughout 2011 while the Tasik Subang Dam s reservoir level was slightly below RORC No. 1 from the end of August 2011 until mid-september All three dams, with proper and effective planning on dam management operation, met the WTPs demands. With prudent, proper and effective planning on management of the dams, PNSB ensures the sustainability of water supply in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. To ensure the safety and stability of the dams, PNSB completed the Dam Safety Inspections for the Tasik Subang, Klang Gates and Sg Langat Dams. Conducted by independent consultants in May 2011, the field inspections covered all major dam structures, M&E equipment, flood routing analysis and instrumentation analysis. In 2011, we fulfilled our corporate social responsibility by allowing various stakeholders to visit the dams with the objective of giving the visitors an educational understanding of the function and operation of dams. Details of the Dams CSR Visitation are set out under Engagement With Our Community section on page 170 of this Annual Report. CERTIFICATIONS ISO Environmental Management System The ISO Environmental Management System certification is to ensure that the operation and maintenance of the WTP complies with the Environmental Guidelines and Requirements. SSP2 WTP became the first WTP in Malaysia in 2003 to gain the Environmental Management System accreditation and this certification has been successfully maintained until to date without any significant non-compliance. ISO 9001: 2008 Quality Management System In 2010, 20 WTPs and Regional Offices under PNSB management were upgraded from ISO 9001:2000 Quality Management System ( QMS ) certification to ISO 9001:2008 QMS certification, following the introduction of a new International Standard for QMS. In line with PNSB s commitment and standard to carry out the operation and maintenance of the WTPs under PNSB management in line with established international standards, PNSB has initiated the process of obtaining ISO 9001:2008 QMS certification for the remaining nine WTPs. The certification is expected to be achieved in This reflect PNSB s commitment to a rigorous quality management system in managing the WTPs. OHSAS 18001:2007 Safety Management System The SSP2 WTP obtained OHSAS 18001:2007 Safety Management System certification in In 2011, 27 of our WTPs and three Regional Offices had OHSAS 18001:2007 Safety Management System certification. Gas Saving Tips Drive steadily. Slowing down or speeding up waste fuel. 095

98 Operations Review Puncak Niaga (M) Sdn Bhd 096 Visit by PUSPANITA representatives to SSP2 WTP INFORMATION AND COMMUNICATIONS TECHNOLOGY ( ICT ) In 2011, PNSB launched various initiatives to strengthen PNSB s core operations via seamless and efficient communications and IT systems. Data Verification In 2011, the Operation and Maintenance Department ( OMD ) in collaboration with the Information Technology ( IT ) Department, developed the e-mjc application. The e-mjc application collects data from WTPs, analyses it, and transmits it via the internet to PNSB s Headquarters. The system commenced operation in January This newly developed e-mjc application had expedited the transfer of data gathered at WTP to OMD at PNSB s Headquarters. PREVENTIVE MAINTENANCE Predictive & Preventive Plant Maintenance Throughout 2011, we undertook rigorous monitoring and maintenance of plant and equipment to ensure the smooth and continuous operation of all the 29 WTPs. Predictive and preventive maintenance followed the annual maintenance plan, and performance was closely monitored by two maintenance software systems namely, Maximo and Maintpro. In 2011, our personnel conducted 26,240 preventive maintenance works in the areas of mechanical, electrical and instrumentation as compared to 25,826 preventive maintenance works in This was a 1.6% increase in preventive maintenance works compared to the previous year ( Increase of Maintenance Works ) and the Increase of Maintenance Works was mainly due to the installation of additional equipment into the WTP operating systems. Of the preventive maintenance works which we completed in 2011, 12,226 were in the mechanical section, 8,839 were in the electrical section, and 5,175 were in the instrumentation section. Preventive IT Maintenance Preventive IT Maintenance is important to ensure that all systems are running smoothly. PNSB s IT Department continuously supports and maintains all the 29 WTPs via its programme of scheduled preventive IT maintenance. For servers and critical equipment, preventive IT maintenance is conducted every three months while the non-critical equipment cycle is every six months. In addition, our computers and printers are updated with software patches and antivirus versions. Using the latest technology, the IT Department is able to achieve its Service Level Agreement ( SLA ) standards in ensuring that all systems are running efficiently with minimal downtime. INNOVATIVE AND COST-CUTTING MEASURES In its relentless drive to find innovative and cost-cutting measures to improve the operations of the Company and WTPs, PNSB on a yearly basis conducts Innovative & Creative Circle ( ICC ) sessions to encourage personnel to produce innovative inventions or measures. In 2011, the Company achieved and garnered the prestigious Excellent Award for its cost-cutting and innovative project, namely Unstable micro sand in the Actiflo process at the International ICC Conference Quality Creative Circle 2011 held in Yokohama, Japan from 11 to 15 September Details of the activities and achievement of the Company s ICC Programme are set out under Quality Policy & Report section on page 206 of this Annual Report.

99 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ), BEING THE SOLE WATER DISTRIBUTOR FOR SELANGOR AND THE FEDERAL TERRITORIES OF KUALA LUMPUR AND PUTRAJAYA, CONTINUED TO FACE MANY OBSTACLES AND CHALLENGES IN 2011 NAMELY, THE UNRESOLVED PROPOSED RESTRUCTURING OF THE WATER INDUSTRY IN SELANGOR AND THE FEDERAL TERRITORIES OF KUALA LUMPUR AND PUTRAJAYA ( PROPOSED RESTRUCTURING ) CONCURRENTLY WITH NO WATER TARIFF ADJUSTMENT NOR COMPENSATION IN LIEU BY THE SELANGOR STATE GOVERNMENT, AND THE FREEZE ON SYABAS CAPITAL EXPENDITURE EXCEPT FOR LIMITED CRITICAL WORKS. DESPITE THESE OBSTACLES AND CHALLENGES, THE COMMITMENT, DEDICATION AND HARD WORK OF BOTH THE MANAGEMENT AND STAFF ENABLED SYABAS TO CONTINUE TO DELIVER, EXCEEDING EXPECTATIONS PERFORMANCE IN CHALLENGES Due to rapid development in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, the population in the Klang Valley is expected to increase on current trend in the coming years, and the demand for treated water in Selangor, being the most populous state in Malaysia, and the Federal Territories of Kuala Lumpur and Putrajaya is also expected to increase. Against this backdrop, the demand for water in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya had steadily increased in 2011 in step with population and development growth, but was not met by any new water supply sources. Based on SYABAS data, in 2011, SYABAS distributed treated water to about 7.5 million consumers. In 2011, some parts of the Klang Valley already experienced low water pressure while others took a longer time to recover after major breakdowns particularly during periods of peak demand. This was due to reserve capacity falling below 5% of the average demand, making it difficult for SYABAS to meet the peak demand which, historically had risen by 7% above average demand. This situation will worsen in future unless additional interim and long term water sources are developed by the Government to avoid the impending water crisis ( Additional Water Sources ). The delay in the implementation of the Langat 2 WTP project, whose completion date is uncertain, would result in the expected shortage of water supply commencing in 2012 unless the Additional Water Sources are developed quickly. The uncertainty and delay in the Proposed Restructuring since 2008 continued, further adding to the constraints. The Government s freezing of the SYABAS CAPEX programme, ongoing since 2008, prevented urgently-needed investment in the rehabilitation and upgrading of water infrastructure in the Klang Valley although absolutely critical works which are limited in numbers and funding were approved by the Government. The CAPEX freeze also inhibited reductions in Non Revenue Water ( NRW ), which in turn forced SYABAS to increase its bulk purchase from water treatment operators and reduced reserve margin. There were frequent pipe bursts and leaks due to the old age of infrastructure, which increased SYABAS operational costs and increased consumers complaints about the many interruptions resulting from repairs to old burst/leaking pipes. The rehabilitation and upgrading of water infrastructure in the Klang Valley is necessary both for the upgrading of water services to consumers and for the reduction of NRW. World Water Day 2011 Celebration on 22 March

100 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Undeterred by the challenging issues which SYABAS faced in 2011, SYABAS to the best of its ability, continued to maintain the high service levels as required by the Concession Agreement. 098 Since the refusal of the Selangor State Government from 1 January 2009 to either approve the implementation of the water tariff adjustment or to pay compensation in lieu thereof, SYABAS has suffered a consequential loss in revenue and severe cashflow constraints, which has resulted in SYABAS amassing growing debts which have also led to legal proceedings, which are still ongoing, for SYABAS inability to make full payment for the cost of water purchased from the water treatment operators. Although the Federal Government has stepped forward to assist the water industry in Selangor in 2011 as highlighted in the Chairman s Message, there is no long term solution on the table. Unless and until a unanimous solution is reached for the water services industry in Selangor, SYABAS will continue to face the ever increasing challenges and adversities as mentioned above. Despite the many issues and challenges faced by SYABAS, SYABAS was able to meet the high expectations and high demand of the consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya in 2011 mainly as a result of the dedication, commitment and absolute sense of responsibility to the consumers of the Management and staff of SYABAS, and in addition, enhancement by SYABAS of its operational efficiency which focused on improvement in service level to consumers, the details of which are set out under the heading Achievements below. ACHIEVEMENTS Undeterred by the challenging issues which SYABAS faced in 2011, SYABAS to the best of its ability, continued to maintain the high service levels as required by the Concession Agreement dated 15 December 2004 signed between SYABAS, the Federal Government and the Selangor State Government ( SYABAS Concession Agreement ) and the Ministry of Health s ( MOH ) National Standard for Drinking Water Quality (2004) ( NSDWQ ), exceeding the 2011 performance targets which SYABAS set for itself, which were higher than the requirements of SYABAS Concession Agreement. With limited funding for CAPEX investment, SYABAS focused on operational efficiency in a bid to continue to supply good quality treated water to consumers. Operational efficiencies such as the review and improvement of existing standard operating procedures ( SOP ), the introduction of new SOP, internal innovations and cost optimization, and internal training and motivation for the workforce focusing on improvements in consumer service were implemented by SYABAS during As an interim but cost effective measure, prior to pipe replacement, SYABAS also implemented a pressure management programme to reduce NRW and the frequency of pipe bursts and leaks in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. The Intelligent Pressure Management System ( IPMS ) called i2o technology is being applied by SYABAS in 84 selected areas [District Metering Zones ( DMZ )] using intelligent modulators including time and flow based pressure management. Results from 76 of these IPMS have generated additional savings of up to 196 m 3 /d/dmz of water loss, as well as reducing NRW, pipe bursts and leaks, energy costs of water pumping and treatment and reduced operational activities due to

101 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd lesser site visits required for pressure-setting adjustments. For the same reason, SYABAS is also currently embarking on a consumer database drive to allow SYABAS to send Short Messaging Services ( SMS ) and alerts in the event of scheduled and/or major unscheduled water disruptions at the affected consumers areas. Customer service levels exceeded those of SYABAS responded to 99.23% of all water quality complaints within 30 minutes, and achieved the KPI requiring calls to be picked up within six seconds and the call abandonment rate to the lowest possible level. The SYABAS Concession Agreement establishes targets for pipe repair times, while SYABAS sets its own targets which are even more stringent. In 2011, the Company significantly out-performed both sets of targets. During the year, SYABAS boosted its Billing Collection Efficiency to 99.9% from 98.5% the previous year, exceeding the target rate of 99.5%. At RM1, million, the water purchase for 2011 reflected an increase over 2010 s figure of RM1, million but was below the target of RM1, million. Meanwhile, the Distribution Cost was 0.23 per m 3 exceeding 2010 s figure of RM0.21 per m 3 and well below the target of 0.27 per m 3. Despite SYABAS CAPEX freeze, the average NRW level for Selangor and the Federal Territories of Kuala Lumpur and Putrajaya was computed as 32.31%, slightly lower for 2011 than the 2010 s NRW level of 32.45% and lower than the NRW target of 33.43%. Details of NRW are set out under the heading Non Revenue Water of this Operations Review. In 2011, SYABAS also earned a Malaysian Society for Occupational Safety & Health ( MSOSH ) Gold Awards for all its ten districts. WATER DISTRIBUTION SERVICES In 2011, SYABAS distributed a daily average of 4,143 MLD of treated water to about 7.5 million residential and commercial consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. This amounted to 80 MLD (2%) of treated water more than in SYABAS maintains 26,145 km of water pipes; 1,469 service reservoirs, elevated water tanks and suction tanks; and 557 booster pumping stations. The numbers of these assets increased by between 3%, 6% and 12% over the previous year s count, respectively. Water supply coverage is 100% in urban areas and 99% in rural areas. NON REVENUE WATER ( NRW ) Progress to Date In the seven years since the SYABAS Concession Agreement took effect, SYABAS has successfully achieved a progressive reduction in NRW from 42.78% as at 1 January 2005 to 32.31% as at 31 December 2011, which can be summarised as follows:- Water Metered Input Consumption NRW Period (MLD) (MLD) MLD % A 3,766 2,155 1, B 4,143 2,804 1, B-A Note: A denotes 1 January 2005 B denotes 31 December 2011 SYABAS participated in Second IWA Development Congress and Exhibition 2011 on 21 November

102 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Speech by SYABAS CEO, YBhg Dato Ruslan at the Signing Ceremony of MOU with NIOSH Despite a severely limited budget and approved CAPEX, SYABAS managed to conduct a number of NRW Reduction works in 2011, and these NRW Reduction works contributed to the improved water loss figures as shown on page 099 under NRW of this Annual Report. NRW Reduction works in 2011 Some 454 mechanical bulk meters (2 and above) were replaced, the NRW savings is being evaluated. Under an approved program of RM170.0 million, a pipe replacement programme for 210 km of pipes, is being implemented in stages for 30 of the most critical areas in the Klang Valley. Installation commenced in 2011 and should be completed by NRW Phases 2 and 3 programs of SYABAS maintenance works on 992 DMZ, including installation of advanced Pressure Management and Active Leakage Detection and Control were continued. These works realised savings of 56 MLD in 2011 and are estimated to save a further 28 MLD by mid SYABAS in-house teams also engaged in a number of NRW activities throughout 2011, namely, reservoir overflow monitoring and maintenance at 80 DMZ established under the Kementerian Tenaga Air dan Komunikasi ( KTAK ) DMZs and 112 Pressure Management Zones ( PMZs ). In 2011, Suruhanjaya Perkhidmatan Air Negara ( SPAN ) approved the implementation of large-area pressure management for four zones and the installation of advance pressure management for 20 zones in KTAK DMZs. The expected savings from these works are estimated at 3.5 MLD and 4 MLD, respectively. The programs are expected to be completed in 2012 to realise the expected savings. As there are factors outside SYABAS control such as CAPEX freeze which affect its ability to reduce the NRW, SYABAS has proposed to the Selangor State Government and SPAN to revise the NRW KPI target in SYABAS Concession Agreement to allow for the impact of these uncontrollable factors. Based on SYABAS evaluation, the proposed revised KPI target is 36.27% as compared to actual achievement of 32.31% in The proposed revised KPI target is subject to the Selangor State Government s consideration and approval. CAPEX Works Under the privatisation of water supply services in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, SYABAS, as the concessionaire, planned and allocated capital expenditure under its CAPEX programme for the upgrading and rehabilitation works of the distribution assets. CAPEX program for 2011 are principally funded from RPS 2009 (RM65.24 million) and RPS 2010 (RM131.6 million) and SYABAS internal funding (RM187.6 million). In year 2011, a total expenditure of RM88.54 million has been invested to upgrade and rehabilitate the distribution infrastructure including replacement and/or repairing of leaking water tanks and slopes, improvement works to low pressure areas, improvement works for enhancement of water quality, pumphouse upgrading and rehabilitation works, ICT upgrading works, old pipes replacement works, etc. The cumulated total amount of CAPEX expenditure from 1 January 2005 to 31 December 2011 amounted to RM2, million. 100

103 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd As part of interim mitigation project on expected water shortage, on 20 October 2010, SPAN and Kementerian Tenaga, Teknologi Hijau dan Air Malaysia ( KeTTHA ) approved RM285.0 million for the program. Of this amount, SPAN and KeTTHA approved RM170.0 million to SYABAS for CAPEX for pipe replacement. Based on the CAPEX for pipe replacement, an allocation of RM16.5 million was approved for 2011 with the balance of RM153.5 million for Investment from 2012 until Eight pipe replacement packages were tendered in July 2011 and five packages were tendered in November Out of the 13 packages tendered and awarded in 2011, one package at Jalan Sg Baru, Kg Baru has so far been completed. On 2 November 2011, SYABAS submitted and presented to SPAN the fourth operating period CAPEX programme (1 January 2012 to 31 December 2014) in which the total cost for all new projects is RM2, million and RM655.0 million was planned for year However, due to the current CAPEX freeze and cashflow constraint, it is expected only a very limited amount of which would be approved for implementation. Operation Command Centre ( OCC ) and the Geographical Information System ( GIS ) The OCC, first launched on 2 November 2010, allows SYABAS to monitor, operate and manage its water distribution network in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya and take fast remedial action in the event of any distribution natural abnormality. The OCC is the primary component of the RM27.5 million Supervisory Control and Data Acquisition ( SCADA ) Project approved and funded by KeTTHA. The OCC is Malaysia s most advanced and comprehensive clean water distribution operations centre. Nevertheless, this is the stage 1 SCADA Program which covers only a part of the distribution system. The OCC has three key elements: The SCADA wireless system, which collects real-time measured field data that normally varies with time, and remotely controls distant machinery in real-time. The Geographical Information System ( GIS ), which stores and manages the network infrastructure database according to geographical location. The hydraulic operation model, which is a tool deployed to simulate distribution network flow conditions between measuring points in real-time, and hence provide a comprehensive overview of the network s flow, pressure and reservoir water levels. The status of implementation of the GIS-related works as at 31 December 2011 was as follows:- Phase 1A Development of GIS (Infrastructure and Application) The GIS captures information on pipeline and reservoir information for all ten districts and as of 31 December 2011, registered 26,145 km length of pipeline, 1,469 service reservoirs and 557 booster pumping stations. Phase 1B Development of GIS (Geo-Coding) 2,566 major consumers ( C ) have been geo-coded in their respective districts, as follows: Petaling (682 C), Klang/Shah Alam (372 C), Kuala Lumpur (669 C), Sabak Bernam (8 C), Hulu Langat (178 C), Kuala Selangor (48 C), Hulu Selangor (56 C), Kuala Langat (68 C), Sepang (148 C), and Gombak (337 C). Visit by Kumpulan Wang Simpanan Pekerja ( KWSP ) to SYABAS Headquarters on 11 July

104 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Briefing on SYABAS Operation Command Centre 102 Phase 2 Development of SCADA and Integration of SCADA with GIS and Network Modelling The OCC receives live data on water levels, pressure power supply trips, faulty measuring instruments, faulty Remote Telemetry Units ( RTUs ), incidents of vandalism, etc., from 250 RTUs. Upon receiving such alerts, SYABAS acts accordingly to resolve the issues in the shortest possible period. Phase 3 Hydraulic Model Hydraulic models for all ten districts were completed and are undergoing calibration for improved accuracy. The models are being deployed for use of planning and operations. WATER QUALITY ENHANCEMENT For year 2011, SYABAS complies fully with the MOH s NSDWQ and Quality Assurance Programme ( QAP ), as well as maintaining the Mandatory Level of Service ( MLS ) as stipulated in SYABAS CA. For this purpose, MOH has taken 32,408 samples from 729 sampling stations and SYABAS has taken 21,211 samples from the remaining 371 sampling stations. In 2008, SYABAS initiated a Water Quality Improvement Master Plan ( WQIM Plan ) to ensure consumer confidence in the water quality, and in 2011 continued to implement the following programmes under the WQIM Plan. Air Scouring Programme ( AS Programme ) The AS Programme is designed to systematically flush all the reticulation pipes using compressed air. In 2011, 9,153 km were identified to be cleaned out of a total of 12,644 km of reticulation pipes of diameters up to 200 mm. The remaining 3,491 km pipe length could not be cleaned due to the freeze on SYABAS CAPEX spending, which prevented SYABAS from installing the necessary valves and fittings required before air scouring can be carried out. The AS Programme has contributed to the reduction in water quality complaints. Reservoir Cleaning and Inspection Programme ( RCI Programme ) In 2011, 1,028 active reservoirs were registered under this programme to be inspected twice a year. Ten reservoirs were cleaned manually during the year, whilst 24 were cleaned by the open scour flushing method. Target reservoirs for cleaning were selected based on turbidity violations identified during 2011 inspections. Immediate Response To Consumer Complaints In 2011, SYABAS achieved an average compliance rate of 100% response time to attend to water quality complaints within half an hour and to undertake remedial actions within 24 hours. Consumer Awareness & Education Programme ( CAE Programme ) The CAE Programme with media coverage is ongoing with emphasis on consumers understanding of the quality of water supplied to the premises and related issues and their responsibility for maintaining their own internal plumbing system and internal storage tanks. Consumers have greatly benefited from SYABAS efforts in the CAE Programme. For further details of the CAE Programme, please turn to Preserving Our Environment section on pages 161 and 162 of this Annual Report.

105 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Year Billing (RM Million) 1, , , , , , Growth (%) 9% 18% 5% 5% 3% 3.5% 2.8% Cumulative Growth (%) 9% 27% 32% 37% 40% 43.5% 46.3% Table A - Billing Records BILLING & COLLECTION SYABAS revenue and cash flow rely heavily upon the effectiveness of its Billing and Recovery Department, and efforts are constantly made to enhance the systems and processes for peak efficiency. As at 31 December 2011, the total number of active water supply accounts was 1,793,580, up 3.5% on the 1,732,193 accounts registered in Total billings rose 2.9% to RM1.530 billion against the RM1.487 billion recorded in The Table A above shows billing records over the last seven years, demonstrating a cumulative growth exceeding 46%. Total bill payments collected in 2011 amounted to RM1.529 billion, representing a 3.3% increase on the RM1.480 billion collected the year before. Overall, SYABAS achieved a collection efficiency of 99.9% in 2011 as compared to 98.5% the previous year. Total receivables as at 31 December 2011 stood at RM163.0 million, 2.7% lower than the RM167.5 million posted in The debtors day level (accounts receivable), averaged a manageable 39 days, as compared to 41 days in 2010, due to the aggressive monitoring and control that was put in place for recovery of debts by SYABAS. Disconnections as enforcement for collection, increased by 11.0% from 139,977 disconnections in 2010 to 155,409 disconnections in Migration of Bulk Meter Accounts to Individual Meter Accounts ( Migration ) The Migration process is still slow and the success rate can best be achieved by making the process mandatory. KeTTHA and SPAN now have the intention and are in the process to make the Migration mandatory. As at 31 December 2011, SYABAS had completed the Migration of only 230 bulk meter accounts involving 49,963 individual accounts. The Table B below shows the Migration from Bulk Meter Accounts to Individual Meter Accounts up to 31 December 2011: Approved applications No of accounts approved 93,958 16,926 No of approved applications migrated No of accounts 49,963 12,440 Table B - Migration from Bulk Meter Accounts to Individual Meter Accounts Water Facts The overall amount of water on our planet has remained the same for two billion years. 103

106 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Public Awareness Programme at Pangsapuri Bustan, Shamelin, Cheras on 17 December 2011 INFORMATION AND COMMUNICATION TECHNOLOGY ( ICT ) In 2011, the Information, Communication and Technology ( ICT ) Department continues to provide high quality, reliable service and support to SYABAS and create efficient and secure environment to increase productivity and promote sustainability with the users, as follows:- (i) Maintain an up-to-date ICT infrastructure. (ii) Upgrade for SYABAS Enterprise Communication Backbone (SECOB) from Streamyx to TM Premier IPVPN Service over Metro-Ethernet technology, enhances existing network performance with faster access to SYABAS Integrated Water Management System (SWIMS) applications. (iii) Meet the internal users needs from time to time. In 2011, the ICT Department has attended to 120 numbers of system enhancements requests. (iv) With SYABAS implementation of SAP Electronic Financial Management Systems ( EFMS ) in 2011, the ICT Department has integrated the in-house applications, namely ijob, iclaim, irefund, iutilities with SAP EFMS. The following application systems were enhanced and completed, ready to be rolled out in 2012:- The Development Plan Approval Submission Management System (edplas) which enables online development plan submission by consultant and approval online by SYABAS. The Point of Sale (ipos) system to replace the current RM20.00 system to process payment at SYABAS counters. It integrates with SYABAS billing system to check the consumer account status. The imigrasi system which processes online migration application. To keep up with changing needs, early in 2011, the ICT Department rolled out a new design of emesra intranet portal, a One-Stop Centre for all electronic communication between SYABAS employees, departments and district. The new emesra intranet portal is refreshing, inviting and made it easier for employees to communicate, to seek information and accessing SYABAS daily operation application. In conclusion, the ICT Department has accomplished all of its goals for Public Awareness Programme held at Tesco Shah Alam on 29 October

107 Operations Review Puncak Oil & Gas Sdn Bhd GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) IN 2009, PUNCAK NIAGA HOLDINGS BHD ( PNHB ) EXPANDED ITS CORPORATE VISION BEYOND THE WATER INDUSTRY BY DECLARING ITS INTENTION TO EMERGE AS A SIGNIFICANT PLAYER IN THE OIL & GAS SECTOR WHICH CULMINATED IN THE ACQUISITIONS OF TWO SIZEABLE OIL & GAS COMPANIES BY PUNCAK OIL & GAS SDN BHD ( POG ) AS FURTHER ELABORATED IN THE SECTIONS BELOW. KGL s pipelaying Derrick Lay Barge ( DLB ) 264 OIL & GAS As the Group already has tremendous strengths in the natural resources arena, this new venture makes excellent sense. With the ever-increasing global demand for energy, far from being a sunset industry, Oil & Gas is an industry with huge potential. The regional forecast for the oil and gas sector is promising. At a three-day Offshore Asia Conference in February 2012, there was a consensus that oil is on an upward trend, and the industry s capital expenditure is likely to reach record levels in the coming year. All activities are increasing, which will present opportunities in new frontier areas through innovations in products, services and working methods. Geographically diverse exploration is on the rise; deepwater continues to dominate short-term expenditure; and floating liquefied natural gas is another growing niche market. In Malaysia, experts concur that, although the mature fields are in decline, the largest producers are developing new projects that should help to offset falling output. Analysts forecast that Malaysia s average output will rise from 632,200 barrels per day in 2012 to a new peak of 881,000 in They also predict continuing growth in the country s gas volumes and exports. PUNCAK OIL & GAS SDN BHD In 2011, our initiatives started to bear fruit. As reported in the Executive Chairman s Message, on 28 September 2011, PNHB s wholly-owned subsidiary, POG completed the acquisitions of the total equity of both GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) ( GOM Resources ) and KGL Ltd ( KGL ) ( Acquisitions ). These Acquisitions provided a platform for PNHB s entry into the Oil & Gas industry. GOM Resources is involved in the business of construction and subsea services and marine support services to the offshore Oil & Gas industry in Malaysia whilst KGL is the registered and beneficial owner of the pipelaying barge DLB 264. On 23 December 2011, POG was awarded a contract from Perunding Ranhill Worley-Muhibbah Consortium to provide a workbarge, workboat and support vessels for a regasification facilities project at Sungai Udang, Melaka for Petronas Gas Bhd. The workbarge is to accomodate up to 300 persons on board while the work boat is used for anchor handling and towing. The contract also includes catering for contractor s live-in personnel. Project is expected to be completed by end of the year. Gas Saving Tips Car pool to reduce travel monotony and save cost. [Source: Business Monitor International, Malaysia Oil and Gas Report Q2 2012] Looking forward, prospects for the new venture into the Oil & Gas industry are bright. POG is well-positioned to bid for projects in regions across the world where Petroliam Nasional Berhad ( PETRONAS ) is a player. 105

108 Operations Review Puncak Oil & Gas Sdn Bhd GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) POG Group will continue to grow its Oil & Gas operations organically and/or by merger and acquisition. Pre-commissioning work carried out by GOM Resources. GOM RESOURCES SDN BHD (FORMERLY KNOWN AS GLOBAL OFFSHORE MALAYSIA SDN BHD) ( GOM RESOURCES ) GOM Resources is involved in the business of engineering, procurement, installation and commissioning ( EPIC ) contracting services, subsea services and marine support services to the offshore Oil & Gas industry in Malaysia. GOM Resources has been awarded by PETRONAS the Integrated Transportation and Installation of Offshore Facilities contract for Pipelay Barge Package A for Petronas Carigali Sdn Bhd. GOM Resources had a proven track record in undertaking oil and gas works, both at home and abroad. GOM Resources has a range of expertise from simple jobs to highly complex jobs involving pipelay barge DLB 264. It has also successfully overcome challenging environments, obstacles and circumstances, even in the harshest conditions. In response to the strong demand for the decommissioning of platforms, pipe-lines and other subsurface facilities, GOM Resources is building a committed team with a wealth of skills and experience so as to enable POG, GOM Resources and PNHB to deliver exceptional results for PETRONAS. The contribution from the Oil & Gas industry will provide the Group with sustainable income and profit and enable the transfer of capabilities and expertise from GOM Resources to POG and highlight any areas where our resources need to be upgraded. POG Group are looking at off-shore pipe laying, transportation and installation and construction, locally and internationally. We are actively tendering for works in these areas. Our long term business plan is to go into exploration and production (E&P) in Malaysia as well as regionally. In order for us to do so, we are looking at partnering foreign E&P companies in marginal (Risk Service Contract) and brownfield developments. We are also looking into the potential of participating in downstream mega projects and other developments in Sabah. POG Group will continue to grow its Oil & Gas operations organically and/or by merger and acquisition, and aims to become a worthwhile contributor to the Group s profitability within the next two years. 106

109 Business Expansion MALAYSIA Sarawak ( PNHB ) extended its business activities in water related construction to Sarawak via a 40:60 unincorporated joint venture between PNHB and Quality Concrete Holdings Bhd namely, Konsortium Puncak Niaga Holdings Bhd Quality Concrete. Konsortium Puncak Niaga Holdings Bhd Quality Concrete clinched a RM million contract for a Rural Water Supply Project in Sarawak ( Sarawak BALB Project ) from the Rural and Regional Development Ministry. The Sarawak BALB Project, which is part of the Federal Government s initiative to improve the living standards of the rural population in Sarawak, will cover over 91,000 households and will increase clean water provision for rural areas from 59% to 90% by end of To date, Konsortium Puncak Niaga Holdings Bhd Quality Concrete has been awarded 15 work orders, the scope of which includes reticulation works, pipe-laying, the construction of three WTPs, booster pumping stations and reservoirs spread over six Divisions from Kuching to Sibu. So far, four work orders have been successfully completed on time and the remaining work orders are expected to be completed by the end of Existing Sewerage & Water Main For Cochrane Launching Shaft Package D2 by Syarikat Prasarana Negara Berhad under Projek Mass Rapid Transit Lembah Kelang: Jajaran Sungai Buloh-Kajang. The scope of works is the relocation of SYABAS main pipes and to carry out cement/sand grouting for existing sewer main pipes under the existing road. The project was completed on 15 March CHINA In recent years, the economy of the People s Republic of China ( PRC ) has proven its resilience in the face of financial turmoil elsewhere in the world. The collapse in international export markets in 2009 initially hit the PRC economy hard, but it rebounded, quickly returning to growth. In February 2011, it overtook Japan to become the world s second-largest economy (source: BBC). China s GDP in the coming decade is predicted to advance, albeit at a slower rate of 7.3%, in contrast to the average of 10.7% it has registered over the past ten years. In the coming year, Beijing plans to exercise prudent fiscal policies to hold consumer prices stable. In , China has vowed to double its spending on environmental protection, and analysts state that the possible increase to CNY 3.1 trillion (USD 454 billion) will benefit equipment manufacturers in water treatment, air pollution control, and also developers in the renewable energy sector (source: Bloomberg). Kelana Jaya In November 2011, Syarikat Prasarana Negara Bhd awarded Puncak Niaga (M) Sdn Bhd ( PNSB ) a RM15.3 million contract under the Kelana Jaya (KLJ) Line Extension Project involving the relocation works of SYABAS mains and Indah Water Konsortium Sdn Bhd ( IWK ) sewer pipes. The project is scheduled for completion by the end of June Project Mass Rapid Transit (MRT) Lembah Klang Through a competitive tender process, PNSB has been awarded the works for Relocation of The PNHB Group entered the Chinese market in 2008, seizing the tremendous growth opportunities afforded by the PRC s rapid rate of development. Today, our work in China, comprising both water supply and wastewater projects, is one of the linchpins of our regional expansion strategy. Our 98.65% owned Singapore subsidiary, Sino Water Pte Ltd ( Sino Water ) is leading the campaign to capture a greater share of the Chinese market. Sino Water is collaborating with and directing a number of local Chinese provincial subsidiaries in matters of project execution. Kelana Jaya (KLJ) Line Extension Project - pipe laying works 107

110 Business Expansion 108 Lushan Water Supply Project - Administration Office Lushan Water Supply Project - Treated Water Pump House Lushan Water Supply Project Located in Lushan County, Pingdingshan City, Henan Province Luwei (Pingdingshan) Water Co Ltd, a Sino Water 91.34% owned China subsidiary, currently supplies water to approximately 6,000 consumer accounts in Lushan County Township from the existing 2 million-litre-per day ( MLD ) underground pumping stations, with the daily supply ranging from 1.4 MLD to 1.8 MLD. Water is abstracted from underground and supplied directly to consumers by five pumping stations. Lushan Water Supply Project involves the rehabilitation of the existing water supply system in Lushan County Township and the construction of a new 30 MLD water treatment plant ( 30 MLD WTP ) under Phase 1, together with the laying of a km length of raw water pipeline and a new reticulation pipeline in Lushan County Township. The construction of the 30 MLD WTP was completed in As at 31 December 2011, the laying of the raw water pipelines was 99.36% completed and was subsequently fully completed in end of February Upon completion of the pipelines, water from Zhaopingdai Reservoir will be conveyed to the 30 MLD WTP for the commencement of testing & commissioning works. The 30 MLD WTP is expected to be operational by early July 2012, supplying treated water to the consumers in Lushan County Township. With that, the private wells will be gradually closed and this will mark a new era for water supply in Lushan County. The cost of the construction of the 30 MLD WTP and the laying of the distribution pipeline is 66% funded by a World Bank Loan. A 30km reticulation pipeline will be laid or replaced to cover the supply of treated water for approximately 130,000 people in Lushan County Township. To date, some 24 km of the reticulation pipeline work is completed, with a further 6 km to be laid and/or replaced by August Approximately 18,000 new consumer accounts are expected to be connected to this pipeline network by In the next two years, more efficient systems for registering water usage, billings, collections and customer service will be established for implementation in 2012/2013 in Lushan County Township to serve the estimated 130,000 population. Binzhou Wastewater Project Located in Yangxin County, Binzhou City, Shandong Province. The project, headed by Sino Water s 100% owned China subsidiary, Xinnuo Water (Binzhou) Co. Ltd., involves the construction of a 30 MLD wastewater treatment plant ( WWTP ) in two phases of 15 MLD each. The WWTP will treat wastewater from the nearby factories that house the tanneries, building material manufacturers, and chemical producers. The wastewater pipelines from these factories have already been laid and are connected to the inlet of the WWTP. At the completion of the project, the waste from these factories, estimated at 15 MLD, will be channeled to the WWTP for further treatment before being discharged into the nearby river. The construction of the Phase 1 15 MLD wastewater plant and the M & E works has been completed. The WWTP s testing and commissioning is curently ongoing. With the completion and operational commencement of the new Binzhou WWTP, the current environmental degradation caused by industrial waste will be significantly reduced, resulting in a better environment for Laodian Town in general and the Chenlou Industrial Park in particular. Luancheng Dayu Water Supply Project Located in Luancheng County, Shijiazhuang City, Hebei Province Sino Water s 80% owned China subsidiary, Luancheng Dayu Water Supply Co Ltd, has been supplying water to 3,493 consumers in Luancheng County Township, with the daily supply ranging from 1.8 MLD to 2.5 MLD. Water is abstracted from underground and supplied directly to consumers by ten pumping stations.

111 Business Expansion Reflecting delays in the commencement of the South-to-North Water Diversion Project by the Central Government of China, the construction of the proposed 15 MLD WTP to supply treated water for domestic use and the proposed 50 MLD WTP to supply water for industrial use, is now scheduled to begin in 2015 or 2016 and expected to be completed by 2017/2018. Yuanshi Industrial Water Supply Project Located in Yuanshi County, Shijiazhuang City, Hebei Province Sino Water s 80% owned China subsidiary, Hebei Sino Panlong Industrial Water Supply Co Ltd, supplies water abstracted from Ba-Yi Reservoir directly to the thermal plant in Yuanshi County by gravity flow via a 15.5 km pipeline. There were no major construction works in BUSINESS DEVELOPMENT IN INDIA AND INDOCHINA The acute need to improve water supply and sanitation in India and Indochina, and the governmental budgets allocated to these works, present the Group with immense opportunities for overseas business development. India After a return to trend growth in fiscal year , India s economic growth is likely to slow to 7-8 percent in the next two years. The slowdown is a result of uncertainties weighing down investment, tighter macroeconomic policies intended to fight still-high inflation, and the base effect of the strong agricultural rebound in FY Slow growth in core Organization for Economic Cooperation and Development ( OECD ) countries means domestic drivers for growth will have to be strengthened. This would include progress on important structural reforms, and further measures to achieve fiscal consolidation and reorient government spending towards investment and growth. Even then, risks from the uncertain international environment are high. Policymakers would do well in reviewing crisis preparedness at this time. (Source: World Bank, Economic Update) On 10 March 2011, PNHB acquired 9,999 equity shares of Rs10/- each in Puncak Niaga Infrastructures & Projects Private Limited ( PNIP Pte Ltd ), representing 99.99% of the total issued and paid-up share capital of PNIP Pte Ltd. The remaining 0.01% (one equity share of Rs10/-) was held by Puncak Niaga (India) Sdn Bhd, with a beneficial holding vesting with PNHB. PNIP Pte Ltd was set up to facilitate PNHB s expansion plans to pursue business development efforts to secure new business in India. On 15 March 2011, PNHB entered into a Memorandum of Understanding ( MoU ) with Ramky Infrastructure Limited ( RIL ) to form an exclusive collaboration in the form of an unincorporated joint venture aimed at sourcing potential water and water-related projects in India. The MoU lapsed on 14 March Vietnam Growth for the six Southeast Asian economies, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam is projected to average 5.6% during Global uncertainties and natural disasters shed a negative light on the growth prospects of the region but compared with sluggish OECD economies, overall Southeast Asia will have a solid growth performance through (Source: OECD Southeast Asian Economic Outlook) Recognising these opportunities, on 3 March 2011, PNHB set up a Representative Office in Ho Chi Minh City to explore and identify potential water supply and water related projects in Vietnam. The Vietnam Representative Office will also look into the possibility of collaboration with local partners in Vietnam. On 3 March 2011, PNHB set up a Representative Office in Ho Chi Minh City to explore and identify potential water supply and water related projects in Vietnam. Pure water has a neutral PH of 7 Water Facts 109

112 Delivering Service Excellence SYABAS CLIENT CHARTER The public will be notified of scheduled interruptions of water supply exceeding 24 hours through mass media at least two days in advance. However, SYABAS will endeavor to notify the public seven days in advance of such interruptions. Walk-in consumers at SYABAS Districts Offices and Headquarters are attended to within 15 minutes. Any enquiries or written complaints through PUSPEL, telephone, fax, , Short Messaging Services ( SMS ), Multimedia System ( MMS ) and mails will be acknowledged within 30 minutes after receipt. The company will revert within 24 hours to inform the consumers on the remedial action to be taken. For mails received, correspondence executives will call the senders upon receiving the mails if the contact numbers are available. In delivering service excellence, creating awareness, educating and managing the complaints response immediately, we, the customer service department, as the focal point of SYABAS will be responsible to deliver both the expectations of the consumers and the management. Consumers satisfaction will be our key driver towards a total consumer s experience. Technical visit by Pengurusan Pusat Dialisis Negeri Selangor and the Federal Territories of Kuala Lumpur and Putrajaya at SYABAS PUSPEL Contact Centre Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) provides its customers with quick, courteous and excellent service through its highly acclaimed and award winning one-stop contact centre, Pusat Perkhidmatan Pelanggan ( PUSPEL ). At PUSPEL, customers receive prompt feedback on all water and water supply related queries, reports and complaints in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. PUSPEL s logo with the service motto, Friendly, Committed, and Trusted was launched on 10 January 2009 as a symbol of our relentless efforts and ongoing commitment to consumers. PUSPEL operates 24 hours a day, 365 days a year. Customers may interact with PUSPEL staff via toll-free number, facsimile, Short Messaging Service ( SMS ), s and letters. PUSPEL s staff practise SMART principles in their daily work, namely, S Smile, M Manageable, A Accessible, R Reliable and T Timely. 110

113 Delivering Service Excellence PUSPEL maintains a Customer Database Management ( CDM ) section. PUSPEL is targeting a total of 1.6 million contacts for the CDM, who can expect to receive water disruption notices directly in SYABAS areas of operations. As at 31 December 2011, a total of 591,603 data of consumers accounts with mobile numbers or addresses had been collected. Consumers can also follow PUSPEL via social network tools, namely Twitter and Facebook, where users can receive information regarding water disruptions in real-time for scheduled and unscheduled disruptions. In addition, PUSPEL continues to introduce workable initiatives and innovations that are geared towards increasing efficiency and productivity at the workplace, while striving to minimise costs. PUSPEL is a highly acclaimed and integrated consumer contact centre established by SYABAS as one of several consumer-oriented efforts and initiatives for the benefit of the consumers and the general public. PUSPEL has been entrusted to undertake vital roles in ensuring that consumers and the general public receive the highest level of services as prescribed in the Concession Agreement. PUSPEL is part of a Customer Service Department within SYABAS which comprises five major integrated core functions namely PUSPEL/Contact Centre, Counter Services, Unit Kerjasama Informasi Pelanggan ( YAKIN ), Industrial Consumer Unit ( ICU ), and Customer Database Management ( CDM ). To ensure an immediate response to customer complaints, our PUSPEL agents are always ready to service consumers. According to SYABAS Client Charter, all enquiries, complaints and requests should be acknowledged within 30 minutes after receipt, and remedial actions should be taken within 24 hours. Based on reports, in 2011, PUSPEL met 100% of SYABAS Client Charter s requirements. All cases are recorded in our complaint management system known as the Pivotal System. The communication between PUSPEL and the ten SYABAS District Offices is also via the Pivotal System to ensure diligent and timely follow-up. Thus, Contact Centre agents are able to update consumers on the current status of their enquiries or complaints. COUNTER SERVICE PUSPEL constantly seeks to enhance its relationship with its customers. Walk-in customers can expect to be served within 15 minutes, in accordance with SYABAS Client Charter, and all counters adhere to PUSPEL s code of ethics, M.E.S.R.A. which carries the meaning, M Minat (Interest), E Efisien (Efficient), S Sabar (Patience), R Ramah (Friendly) and A Adil (Just). For 2011, PUSPEL achieved a Quality Management System ( QMS ) rating of only a three minute waiting period and a nine minute serving time, an achievement surpassing SYABAS Client Charter s requirement. In 2011, the ten District Offices served 360,954 customers over the counter. In a bid to further improve our service, we conducted Professional Customer Service Training to equip our counter staff to handle customer queries in a courteous, polite and thoughtful manner. To further ensure our quality of service, our Head of Unit regularly conducts district site visits to check that all counter staff are adequately briefed and groomed for the smooth running of the counter services and to provide the best of services in line with our service motto, Friendly, Committed and Trusted. Additionally, all counter services sections submit consumer survey forms twice a year to PUSPEL Headquarters, giving consumer feedback and suggesting ways to improve our services in the future. In 2011, the ten District Offices served 360,954 customers over the counter. 111

114 Delivering Service Excellence PUSPEL s follow@puspel online interaction channels on the social networks, Twitter and Facebook which allow our customers to connect with SYABAS and to lodge their complaints or queries easily and effortlessly, are progressing well and have created very impactful experience to the consumers since their launch on 14 January As at 25 January 2012, PUSPEL had gained a total of 2,267 followers on Twitter and 3,497 friends and fans on Facebook. SYABAS is continuously seeking to make these online interaction channels more effective and interesting for our consumers. Counter Service serves as a one stop solution center at all ten SYABAS District Offices. Among services provided at the counter are: new applications, opening new accounts, closing accounts, change of account ownership, bill payment, checking and printing of bills, payment of arrears, disconnection of service on request, reconnection of service, work order change meter, meter testing, meter lost/faulty, refund of deposit, buying water via tanker and renting of static tank and general inquiries. To meet consumers expectations, we seek to deliver these services in a manner that is committed, reliable and courteous, with our speed of response as the key indicator. CONTACT CENTRE PUSPEL toll free number, , continues to be widely publicised for the benefit of the consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. Consumers are assured that their complaints are attended to and will be addressed immediately. In 2011, PUSPEL recorded 290,371 cases resulting from 640,242 calls received and handled. 223,551 cases were closed during the year. In order to deliver service excellence, it is our policy that all calls received must be picked up in less than 6 seconds and the handling time must be within 3 minutes. In 2011, we achieved this target with calls answered in an average of 3.03 seconds. Meanwhile, the average handling time per call agent is 2 minutes and 51 seconds. Besides contacting the call centre, consumers are encouraged to interact via our non-voice channels such as , letter, SMS, fax, Facebook and Twitter. In delivering service excellence, we are ensuring that we have various channels available for consumers to contact and interact with us easily and without hassle. PUSPEL Statistics Technical visit by PUSPANITA at SYABAS PUSPEL Contact Centre Calls received and handled 630, , , , , ,242 Cases for investigation and remedial action 231, , , , , , 551 Remaining Calls * 398, , , , , ,691 * The remaining calls were either repeat calls, enquires about payment and billing, reports of pipe bursts and pipe leaks, reports on water theft and other matters. 112

115 Delivering Service Excellence The number of calls received and handled in 2011 increased by 18.9% to 640,242 calls compared to 538,525 calls in The Petaling District had the highest number of cases (69,789 cases), followed by the Klang District and the Kuala Lumpur District with 52,784 and 41,819 cases, respectively. Below is a summary of pipe leaks and pipe bursts cases reported in 2010 and 2011: Pipe Leaks 84,848 72,824 Pipe Bursts 4,067 5,093 All of the above cases were repaired and attended within the targeted time as shown below:- SYABAS Pipe Corrective internal Measurement Action target Achieved (Target) (hour) (hour) 200 mm 1 day mm 2 days ,200 mm 3 days ,200mm 4 days Breakdown of Cases for Investigation and Remedial Action in 2011 In spite of the increase in cases for investigation and remedial action in 2011, PUSPEL received 159 calls from consumers that commended its efficiency and initiative. In 2011, PUSPEL acknowledged all calls and correspondences within 30 minutes after receipt % of calls and correspondences surpassed this target. The PUSPEL Contact Centre KPIs were established to ensure that staff handle each call in the most efficient and effective way. Below are our achievements in 2011:- KPI Achieved Criteria KPI Set in 2011 % of Not 1% 0.35% abandoned calls (hourly average) Average answering time (seconds) seconds seconds Average call 3 minutes 2 minutes handling time 51 seconds (minutes) % of call feedback 100% 122% As illustrated above, PUSPEL s call centre exceeded all its KPIs targets for Calls received by PUSPEL for year 2011 Technical visit by Government Senior Officers from INTAN Type of Cases Month Volume of calls Water Supply Problems 165, ,572 Billing Problems 20,371 23,890 Faulty Water Meters 8,043 13,024 Disconnection 8,352 11,744 Others TOTAL 202,270 *223, 551 Note: * A total of 223,551 cases out of 290,371 cases were closed for Cases of water supply problems increased from 165,209 in 2010 to 174,572 in 2011, a rise of 5.67%. During this time, cases of billing problems also rose by 17.3% to 23,890 cases in 2011, up from 20,371 cases in The cases on faulty water meters issue also rose from 8,043 cases in 2010 to 13,024 cases in January 42,543 February 42,958 March 54,306 April 56,630 May 52,075 June 71,774 July 56,488 August 47,051 September 48,927 October 56,801 November 53,269 December 57,420 TOTAL 640,242 Average calls received per day = 1,788 Visit by students from Universiti Putra Malaysia to SSP2 WTP 113

116 Delivering Service Excellence PUSPEL s Call Agents attending to telephone calls 114 Sua Mesra Programme at Little India Visitors are always welcome to visit our PUSPEL Contact Center as we encourage knowledge sharing and exchange of information as well as discussions about areas of common interest in relation to treated water supply. This helps us to improve our services, to become a quality role model for other companies. In 2011, SYABAS hosted the following technical visits by various agencies at SYABAS Headquarters and at the PUSPEL Contact Centre:- Date Visitors 7 March 2011 Government Senior Officers from INTAN 23 March 2011 Water, Energy Consumer Association and Global Environmental Centre 24 March 2011 Malaysian Environmental NGO (MENGO) 25 March 2011 Yayasan Anak Warisan Alam and Pusat Aduan Pengguna Nasional 5 April 2011 Persatuan Pekilang-pekilang Malaysia 6 April 2011 Representative of Tamil Nesan 7 April 2011 Public Utility Board, Singapore 10 May 2011 Representative from Industri Perdagangan Zon Bebas Utama 16 May 2011 National Water and Wastewater Organisation of Iran 18 May 2011 Persatuan Suri dan Anggota Wanita Perkhidmatan Awam Malaysia (PUSPANITA) 21 June 2011 Persatuan Pentadbiran Industri Bangi 22 June 2011 Air Kelantan Sdn Bhd 11 July 2011 Top Management of Kumpulan Wang Simpanan Pekerja (KWSP) 18 July 2011 Tenaga Nasional Berhad (TNB) 19 July 2011 Lembaga Zakat Selangor (LZS) 21 November Delegation from the 2 nd IWA 2011 Development Congress and Exhibition 2011 Date Visitors 29 November Representative from 2011 Pengurusan Pusat Dialisis Negeri Selangor and the Federal Territories of Kuala Lumpur and Putrajaya 6 December Representative from Pusat 2011 Dialisis Negeri Selangor, Wilayah Persekutuan Kuala Lumpur and Putrajaya Unit Kerjasama Informasi Pelanggan ( YAKIN ) To meet the needs of customers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, the SYABAS Customer Service Department has a separate unit, YAKIN, which is community based. YAKIN engages in activities such as conducting site visits, briefings on pipe replacement programmes and dialogue sessions to promote consumer relationships with Residents Associations, Ketua Kampong/Ketua Taman and various agencies in order to give personalised service, creating awareness on issues related to water supply and providing educational programmes to the community. A total of 2,922 activities and programmes were conducted in YAKIN also performs domestic consumer education activities via dialogue sessions, briefings and presentations, product and services demonstrations, public relations and community based programmes.

117 Delivering Service Excellence Skuad Ronda YAKIN and Sua Mesra are two of the main programmes spearheaded by YAKIN as its vehicles for enhancing consumer relationships and delivering educational activities. Sua Mesra programme focuses on briefings, dialogues and product demonstrations and allow a free flow of communication between SYABAS and the consumers on matters related to water issues. Skuad Ronda YAKIN programme is a customer relationship programme comprising personnel from YAKIN, Operation & Maintenance and Water Quality Departments of SYABAS together with the community leader, business community and consumers of a particular location randomly check the standard and quality of water supplied by SYABAS at that particular area. It s an approach by SYABAS as a form of assurance that SYABAS only supply quality water to the consumers. In 2011, YAKIN successfully conducted a total of 278 consumers education and awareness programmes/activities which involved domestic consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. The positive response received from the consumers involved indicates that consumer satisfaction is our priority. The unit exceeded its KPI targets for 2011, which were as follows:- Achievements Activity KPI in 2011 Dialogues Social & Welfare Visits Below are the KPIs set for 2011 for consumer educational activities ( Activities ) by area : Achievements Area KPI in 2011 (Average (Average per month) per month) Gombak 8 Activities 31 Activities Hulu Langat 8 Activities 29 Activities Hulu Selangor 8 Activities 24 Activities Klang 8 Activities 22 Activities Kuala Langat 8 Activities 29 Activities Kuala Lumpur 8 Activities 45 Activities Kuala Selangor 8 Activities 17 Activities Petaling Jaya 8 Activities 40 Activities Sabak Bernam 8 Activities 19 Activities Sepang 8 Activities 22 Activities Total All areas exceeded the KPI requirement for the number of Activities that were conducted on average per month. Kuala Lumpur, being the area that conducted the highest number of Activities on average per month basis, exceeded the KPI requirement by 462%, having 45 Activities on average per month as compared to eight activities per month as per the KPI requirement. Aside from interactive programmes with the local communities, YAKIN operates a system to notify community leaders and residential associations of scheduled Water Supply Disruptions ( WSD ). YAKIN is sensitive to resident feedback on WSDs, and sends out notices to Community Heads and Residential Associations two working days prior to the scheduled WSD so that residents in the affected areas can prepare for the temporary water shortage. A total of 35,774 notices were sent by YAKIN in 2011 comprising of 34,009 SMSes and 1,765 s. Gas Saving Tips Newer gas stoves use pilot-less ignition, which saves gas. 115

118 Delivering Service Excellence SYABAS participated in GREEN EXPO 2011 held at Tunku Abdul Rahman College, Setapak In 2011, there were 2,326 cases of scheduled WSDs. In the event of a scheduled water disruption, the public will be notified by SYABAS at least two days in advance via mass media / flyers as stipulated in SYABAS Client Charter. However, SYABAS will endeavour to inform the public seven days in advance of such interruptions. During a major unscheduled water disruption such as a burst pipe or failure of water treatment plants which would affect a huge number of consumers, SYABAS will activate an Emergency Response Plan ( ERP ) to ensure the most effective response with minimal disruption to the consumers. In 2011, 15 cases of ERP activation were recorded. INDUSTRIAL CONSUMER UNIT ( ICU ) The ICU, PUSPEL s customer service arm for industrial customers, provides a single point of enquiry for all industrial consumers who have problems with their water supply. The unit is responsible for enhancing public relations, building rapport with industrial customers and creating business visibility through relationships with various industrial bodies. The ICU team is responsible for promoting good public relations, rapport and visibility through visits to individual consumers and trade associations by sending advance notice on scheduled maintenance, handle cases reported by trade consumers and participating in trade programmes. A total of 11,666 SMSes and 10,238 s on these notices were sent by the ICU in Among the ICU s other duties are disseminating information on water disruption, collecting data and updating the database of industrial customer profiles, conducting awareness programmes, and taking action on all cases reported by industrial customers. The ICU also actively alerts the Industrial, Commercial and Trade Associations to water supply related matters, as well as information on other SYABAS services and products. The unit constantly updates PUSPEL headquarters with monthly activity reports, the data from which is monitored, analysed and compiled. In 2011, ICU staff visited a total of 2,590 trade consumers and ran 163 programmes which include: Dialogue/Briefings (Sua Mesra) - 81 programmes Public Relation Programs (Sports, Gotong Royong etc) - 77 programmes Educational Programmes ( Visits to PUSPEL, WTPs etc) - 5 programmes 116

119 Delivering Quality PUNCAK NIAGA (M) SDN BHD ( PNSB ) Water Quality Surveillance Programme ( WQS Programme ) PNSB has implemented via its Central Laboratory ( CL ) a WQS Programme to ensure it consistently delivers a high quality water supply to its customers. Raw and treated water at the Water Treatment Plants ( WTPs ) is monitored through the WQS Programme to ensure the water quality meets or surpasses the standards stipulated by the Ministry of Health ( MOH ) and is in accordance with MOH s Quality Assurance Programme ( MOH s QAP ). The testing and monitoring of raw and treated water is carried out at PNSB s CL and is verified by an Independent Accredited Laboratory. PNSB ensures that the water quality always complies with MOH s National Standard for Drinking Water Quality (2004) ( NSDWQ ). We also conduct bacteriological tests every day at all our WTPs which are more stringent than the weekly tests that are normally required. Water Safety Plan The World Health Organization ( WHO ), in the third edition of its Guidelines for Drinking Water Quality, has promoted the development and implementation of risk management strategies to ensure the safety of drinking water supplies through the control of hazardous constituents in water from source to consumers taps. WHO s approach is termed the Water Safety Plan ( WSP ) and involves a comprehensive risk assessment and risk management approach with built-in Hazard Analysis and Critical Control Point ( HACCP ) principles that encompass all steps in water supply from catchment to consumer to ensure the safety of our drinking water supplies. The WSP concept was fully endorsed by the International Water Association s Bonn Charter for Safe Drinking Water. Australia, Europe, Latin America, the Caribbean and Singapore have adopted WSP into their water quality management to ensure a high standard of drinking water supplies. In line with PNSB s mission to consistently provide high quality water to consumers, PNSB has initiated plans to adopt the WSP concept as a tool to manage drinking water quality and launched the implementation of WSP in In 2011, PNSB s WSP Steering Committee developed the required WSP manual and procedures. Through workshops that were held between July and October 2011, WSP was developed for five WTPs, namely Sungai ( Sg ) Langat, Sg Batu, North Hummock, Wangsa Maju and SSP2 WTPs. PNSB will implement the WSP at these WTPs in 2012 through controlling the identified Critical Control Points ( CCP ) and by monitoring and verifying the effectiveness of the WSP. Central Laboratory ( CL ) PNSB s CL, which is certified for MS ISO/IEC17025, is responsible for conducting water quality surveillance of raw and treated water at all WTPs operated by PNSB which adheres to the MOH s NSDWQ. In June 2009, CL successfully renewed the accreditation certification with seven additional water quality parameters, making the total accredited water quality analysis as 24 numbers that consist of microbiological, Group 1 (physical) and Group 2 (inorganic) water quality parameters listed in MOH s NSDWQ. As part of the on-going laboratory services enhancement, CL aims to obtain accreditation for MS ISO/IEC17025 for all water quality analysis conducted. Water Quality surveillance by Central Laboratory 117

120 Delivering Quality Based on the water quality monitoring carried out by CL, treated water compliance achieved was 99.9% and raw water compliance achieved was 89.0%. 118 CL has been equipped with an Inductively Coupled Plasma-Mass Spectrometer ( ICP-MS ) and a Gas Chromatography-Mass Spectrometer ( GC-MS ), which will increase the laboratory s capability for testing heavy metals, pesticides and herbicides under Group 3 and Group 4 of the MOH s NSDWQ. Currently, the laboratory is in the process of obtaining accreditation for 20 heavy metal parameters analysed by the ICP-MS. CL will proceed to obtain accreditation for these additional GC-MS parameters once the testing methods have been established and sufficient data has been collected. CL also provides laboratory testing services for various activities such as for Puncak Research & Development, environmental investigations conducted by WTPs, and process improvement studies by the Operation & Maintenance Department. Other than water quality testing, CL also offers support to ensure smooth operation of WTPs as listed below: Conducting laboratory assessment for all WTPs to ensure that the laboratory at the WTP is maintained in good working condition. Purchasing laboratory consumables and equipment for all WTPs. Conducting maintenance, servicing and calibration of laboratory equipment used at all the WTPs to ensure uninterrupted water quality testing. Assisting in the water quality monitoring at affected WTPs during plant shutdown due to raw water pollution. Providing training for WTP staff in relation to water quality testing and maintenance of laboratory and testing equipment. Conducting analysis of WTP process chemical supplied to ensure compliance with specifications so as not to affect plant production and quality. Conducting sieve analysis of filter media for compliance with specification prior to usage at the WTPs. Overall, CL achieved 99.9% sampling for both raw and treated water for all WTPs operated by PNSB in 2011, an improvement of approximately 0.1% as compared with % sampling could not be achieved due to plant shutdown caused by raw water pollution at Sg Sireh WTP in March The 2011 water quality analysis breakdown as conducted by CL in 2011 and the appointed Independent Laboratory is as shown below: Item Analysis conducted for PNSB s WTP By appointed By Central Independent Laboratory Laboratory Raw water 6,645 8,151 Treated water 11,524 8,146 Total 34,466 Based on the water quality monitoring carried out by CL, treated water compliance achieved was 99.9% and raw water compliance achieved was 89.0%. Out of 19,670 analyses conducted for treated water, 17 cases of non-compliance were detected, which were mainly due to aluminium residue which are above the permissible limit at Sg Serai and Sg Sireh WTPs. Details of the non-compliance for treated water at the Sg Serai and Sg Sireh WTPs are set out under the Research & Process Unit of Water Quality and Research Section below.

121 Delivering Quality Research & Process Unit of Water Quality and Research Section There were a range of projects and studies carried out by the Research and Process Unit ( RPU ) of Water Quality and Research Section ( WQRS ) in 2011 as part of PNSB s initiatives to improve water treatment efficiencies and to ensure quality of water supply. The different categories of project undertaken by RPU consist of process improvement, water quality, filter performance monitoring and value added projects. Descriptions of the projects undertaken by RPU in 2011 are as follows:- Process Improvement Process improvement comprises the process of fine-tuning at the WTPs with the objective to improving the treatment process for water quality enhancement and production cost optimisation. RPU also plays the role of providing solutions for continuous water treatment process optimisation. (1) Process Improvement at Sg Sireh WTP The violation at Sg Sireh WTP was due to raw water quality problem that normally occurred during wet season. Numerous studies have been conducted by PNSB to improve its treated water quality and some are ongoing. The treatment of raw water at Sg Sireh WTP has always required a high dosage of alum that subsequently resulted in a high aluminium residue in the treated water. This is due to the raw water characteristics of low alkalinity and high turbidity, and the presence of organic matter especially aquatic humic substances. Various chemicals were tested for at the plant such as ferric chloride, activated carbon and sodium aluminate. Although the laboratory scale study using ferric chloride showed better floc formation with lower dosage compared to alum, high colour was observed in the settled water due to residual iron. Jar tests using activated carbon and sodium aluminate as feed chemical were also found to be ineffective as the use of both activated carbon and alum resulted in higher settled water colour and turbidity compared to when using alum alone for coagulation. Hence, alum was still found to be the better coagulant at the plant. In collaboration with Puncak s Research & Development Centre, the use of two types of equipment has been studied to optimise the treatment process at Sg Sireh WTP. A Photometric Dispersion Analyser ( PDA ) can determine the optimum coagulant dosage and measure the floc strength while UV 254 can measure the level of organic matter in the raw water. As both types of equipment can improve the treatment process and water quality, PNSB has plans to install both equipment at the plant in (2) Process Improvement at North Hummock WTP In 2011, North Hummock WTP experienced short filter running hours with the filter media cracking and the presence of mudballs. Assessment and analysis indicated that the surface of the filter media grain showed a high level of iron present in comparison with aluminium and manganese. Subsequently, a laboratory-scale study was conducted in September 2011 to evaluate the effectiveness of different chemicals namely, chloride of lime, caustic soda and oxalic acid in filter media cleaning. The study found that oxalic acid had highest removal of iron (85.2% reduction), aluminium (92.6% reduction) and manganese (100% reduction) in comparison with chloride of lime and caustic soda. The summarised test results are as set out in Table A on page 120 of this Annual Report. Sample analysis for process improvement 119

122 Delivering Quality Percentage removal, at optimum concentration Initial Chloride Caustic Oxalic Parameter level of lime soda acid (%) (10%) (10%) (15%) Pipeline Inspection Iron (%) Aluminium (%) Manganese (%) Note: The study was conducted using sand media sample from Filter No. 7 of North Hummock WTP Table A - Summary of Findings for Filter Media Cleaning Study at North Hummock WTP Water Quality testing Based on these results, a plant trial using oxalic acid for filter media cleaning will be piloted at one of the filters at North Hummock WTP which is expected to commence in (3) Ammonia Removal Studies along Sg Langat Basin, namely Sg Langat, Cheras Mile 11, Bukit Tampoi and Salak Tinggi WTPs WTPs located downstream of Sg Langat such as Sg Langat Basin, Cheras Mile 11, Bukit Tampoi and Salak Tinggi WTPs are prone to ammonia pollution. At these WTPs, the ammonia level is monitored on an hourly basis so that prompt action can be taken should the plant be required to shut down due to high levels of ammonia. Ammonia removal studies using alternative chemical, namely aluminosilicate have been conducted in case there is ever a shortage of supply due to plant shutdown as a result of ammonia pollution. Based on monitoring of the pilot plant trial conducted at Bukit Tampoi WTP from 22 October 2009 to 1 July 2010, it was observed that the use of aluminosilicate in combination as feed chemical and filter medium could increase the plant s ability to remove ammonia. Due to the encouraging findings, implementation of aluminosilicate dosing at Salak Tinggi WTP has been considered in an effort to increase production for the plant. The proposed installation of an aluminosilicate dosing system at the plant s intake is targeted to be initiated in (4) Process Improvement at Sg Serai WTP In 2008, Sg Serai WTP was once shutdown due to raw water quality deterioration in view of the landslides occurring upstream of the raw water intake. Jar tests showed that the raw water could be treated by using both soda ash and alum. Following the installation of the necessary pre-treatment system and plant trial, the plant resumed operations and again supplied water to consumers. Since operations resumed, the plant encountered frequent treated water violations involving aluminium due to the absence of a filtration system to trap fine flocs escaped from the clarifier. Plans to upgrade the plant to a full treatment plant have been submitted for approval under CAPEX works but are yet to be approved. Consequently, a pressure filter was installed as a temporary measure to complete the treatment process and solve the violation problem. Since the operation commenced in April 2011, the plant has been able to supply treated water that complies with the MOH s NSDWQ. 120

123 Delivering Quality (5) Process Improvement at Sg Rumput WTP Sg Rumput WTP adopted UF membrane technology in 1997 to produce treated water. Since upgrading to full treatment using membrane technology, shutdowns due to high raw water turbidity has been reduced. However, as the plant has been operating for four years, a thorough assessment was conducted to ascertain the membrane performance. It was found that the membrane condition had deteriorated and the membrane had become coated with mud, which originated from the raw water it was treating. Eventhough the filter water still meets the required standard, PNSB is currently considering replacing the membrane module to improve further the treated water quality. Water Quality Monitoring In order to ensure the quality of the supplied treated water to consumers, activities such as river water quality index programme, treated water reservoir water quality monitoring and the monitoring of ammonia level are being carried out at four critical WTPs. Water Quality Index Programme ( WQI Programme ) A Water Quality Index (WQI) Programme is conducted on a monthly basis for all WTPs to determine the cleanliness and suitability of the raw water for drinking water supply, aquaculture and irrigation purposes. Details of the WQI Programme and its findings in 2011 are detailed in the Preserving Our Environment section on pages 152 to 166 of this Annual Report. Balancing Reservoir Water Quality Monitoring Balancing Reservoir Water Quality Monitoring is conducted on a quarterly basis to determine whether the reservoir requires cleaning to ensure that the treated water supply is of high quality at all times. Details of the Balancing Reservoir Water Quality Monitoring are set out in the Preserving Our Environment section on pages 152 to 166 of this Annual Report. Ammonia Level Monitoring Along Sg Langat Basin For early detection and necessary action should the WTPs shut down due to high ammonia level, the ammonia level at four critical WTPs along the Sg Langat Basin namely Sg Langat, Cheras Mile 11, Bukit Tampoi and Salak Tinggi WTPs are closely monitored on an hourly basis. In 2011, a total of nine incidences of pollution occurred where WTPs were shutdown, in addition to three incidences of water supply interruptions. Based on Ammonia Level Monitoring conducted in 2011, the Summary of Daily Ammonia Level in the raw and treated water at the Four WTPs along Sg Langat Basin in 2011 were as summarised below:- WTP Ammonia Level (mg/l) Raw Water Treated Water Min - Max Min - Max (Average) (Average) Sungai (0.09) ( 0.01) Langat Cheras ( 0.30) (0.00) Mile 11 Salak (0.92) (0.19) Tinggi Bukit (0.58) Old : Tampoi (0.01) New : (0.01) Note: MOH s standard reading for ammonia level is 1.50 mg/l for both raw and treated water. A Water Quality Index (WQI) Programme is conducted on a monthly basis for all WTPs to determine the cleanliness and suitability of the raw water for drinking water supply, aquaculture and irrigation purposes. 121

124 Delivering Quality Launching of World Water Day 2011 celebration Filter Performance Monitoring Filtration is the final step in the water treatment process, removing fine suspended solids remaining after the clarification process, and further cleansing and polishing the treated water. Monitoring filter performance, most importantly tracking the running hours headloss figures, is critical to ensure that the filter remains in good operating condition. When a given filter has reached its specified number of running hours or its headloss level, backwashing is initiated. Details of the Filter Performance Monitoring are set out in the Preserving Our Environment section on pages 152 to 166 of this Annual Report. Value-Added Project Other value-added project carried out by RPU in 2011 is the evaluation of various compact WTP for use during crisis comprising conventional treatment and membrane treatment technology. SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ) Water Quality Improvement Master Plan Drinking water quality has always been SYABAS top priority. Water quality results reported in the year ended 31 December 2011 indicated that SYABAS continued to meet the high standards as set out in MOH s NSDWQ and Quality Assurance Programme ( QAP ). It also complied with the requirement of the Mandatory Level of Service specified under the Concession Agreement dated 15 December 2004 signed between SYABAS, the Federal Government and the State Government of Selangor (the Concession Agreement ). As part of the policy to continuously improve water quality, SYABAS has been aggressively implementing its Water Quality Improvement Master Plan and the results have been excellent. The continuous water quality monitoring at 1,100 water sampling stations located at the WTP outlets, balancing reservoir outlets, service reservoirs and distribution mains has shown that water quality violations have been greatly reduced. This has resulted in a reduction of water quality complaints by consumers compared to the previous years. Of a total of water quality analyses carried out by SYABAS and the MOH in 2011, 99.47% complied with MOH s NSDWQ with zero violations for microbiological parameters. Such compliance level are well within the acceptable range stipulated by QAP and stipulated by MOH. Any occurrence of specific incidence of non-compliance with the standards is taken seriously and SYABAS investigates thoroughly and, where necessary, does everything possible to correct any faults. AIR SCOURING PROGRAMME ( ASP ) The ASP is designed to systematically clean all the reticulation pipes. This was done on a six month cycle in 2008, on a nine month cycle in 2009 and has been done on a 12 month cycle since A total of 29 air scouring machines have been purchased for this purpose. In 2011, a total of 9,150 km (data as at 31 December 2011) of air scouring works were performed at districts workable ASP Zones (for reticulation pipes of sizes between mm diameters). The changes made to the cleaning time period (cycle/frequency) from six months cycle in 2008 to 12 months cycle in 2011 was mainly due to the reduction in water quality complaints. However, approximately 28% of the reticulation main pipe system could not be cleaned by the air scouring method and have been declared as non-workable ASP Zones due to the unavailability of facilities in the network such as air insertion point, isolation and scour valves in the ASP Zones. It was projected that these facilities would be installed in stages starting from 2008 onwards depending on the available and approval from the authorities for budget under CAPEX. As at 31 December 2011, the expenditure for installation of the facilities was RM6.5 million. 122

125 Delivering Quality The ASP cleaning of the reticulation system has contributed to the reduction in water quality violations and consumers water quality complaints. AIR SCOURING WORKS FROM 2009 UNTIL 2011 * Extent of Air Scouring Works Month (Km) (Km) (Km) Jan Feb Mar 1, , Apr 1, May 1, June 1, July 1, Aug 1, Sept Oct 1, Nov Dec Grand Total 9, , , * Notes: I (data as at 31 December 2009) Air Scouring frequency is on a nine month cycle. Air scouring work started in March 2009). II (data as at 31 December 2010) - Air Scouring frequency is on a 12 month cycle. Air scouring work started in January 2010). III (data as at 31 December 2011) - Air Scouring frequency is on a 12 month cycle. Air scouring work started in January 2011). IV. Total Air Scouring data (workable/non-workable) for 2010 onwards was based on updated actual/latest information from the online system (WQMS & GIS). RESERVOIR CLEANING & INSPECTION PROGRAMME ( RCP ) Under this programme all service reservoirs are cleaned manually and thereafter inspected every six months to test the water quality using depth-samplers. Subsequent cleaning of the reservoirs are conducted if water quality violations are detected. SYABAS distribution system has more than 1,100 service reservoirs but as at 31 December 2011, 1,028 reservoirs were active. All these reservoirs have been cleaned since 2005 except those newly brought into service. Under the RCP programme, water quality in these reservoirs was inspected twice in Following this inspection, ten reservoirs were manually cleaned and 24 were cleaned by scour flushing to remove the sediments at the bottom of the reservoirs. Wherever possible, SYABAS minimises water supply interruption during the cleaning programme by using the by-pass valves and piping system at the reservoirs. Inspection at Actiflo Plant, SSP2 WTP 123

126 Delivering Quality The Concession Agreement stipulates that the quality of water supplied to consumers must comply with the limits provided by MOH s NSDWQ. WATER QUALITY SURVEILLANCE PROGRAMME ( WQS PROGRAMME ) Quality Assurance Programme by MOH The Concession Agreement stipulates that the quality of water supplied to consumers must comply with the limits provided by MOH s NSDWQ. Water quality supplied from WTPs into SYABAS distribution system is systematically and randomly monitored by MOH by way of sampling and testing under QAP. Based on violations recorded by MOH for residual chlorine, Total Coliform, E. Coli and aluminium, the percentage violation for each parameter was well within the QAP limits. In 2011, a monthly average of 2,816 water samples was taken and 10,418 tests or analyses were carried out by MOH. The samples were taken from designated water sampling stations located at the various WTP outlets, balancing reservoir outlets, service reservoir outlets and the distribution system. A total of 125,015 analyses were carried out by MOH in 2011, and of these, 99.47% complied with MOH s NSDWQ with zero violations recorded for microbiological parameters. The chemical violations were mostly for parameters Fluoride and Aluminium which originated from the WTPs. This result is an improvement from 2010 when 99.21% complied with MOH s NSDWQ, well within the MOH s QAP levels for each of the parameters. The summary of 2010 and 2011 MOH s Water Quality Assessment for all parameters is as follows: MOH Results For Nos. Of Nos. Of Compliance Compliance Tests Violations (%) (%) In-house Water Quality Assessment In June 2006, SYABAS started an in-house Water Quality Sampling and Testing Programme based on the same frequency of sampling and nature of parameters as listed in MOH s NSDWQ. In 2011, grab samples were collected by personnel from the districts Water Quality Units from the designated 1,100 sampling stations to be analysed in-situ and sent to a third party accredited laboratory for analysis. Based on the existing number of sampling stations and the frequency of sampling according to NSDWQ, a monthly average of 1,768 samples was taken and 6,327 analyses carried out. The results also showed that the water quality was within the requirement of MOH and the Mandatory Level of Service, whereby 99.46% of the total of 75,926 analyses had complied with MOH s NSDWQ. The summary of the 2010 and 2011 In-House Water Quality Assessment for all parameters is as follows: MOH Compliance Based on QAP Limit For Nos. Of Nos. Of Compliance Compliance Tests Violations (%) (%) 75, ,

127 Delivering Quality IMMEDIATE RESPONSE TO CONSUMER COMPLAINTS The objective is to achieve a quick initial response time on all water quality complaints from consumers followed by resolution of the complaint. Beginning March 2009, the initial response time for water quality complaints was set at half an hour and, as at 31 December 2011, compliance with this half-hour response time was 99.23%. The scope of work covers initial investigation involving in-situ testing of physical parameters and the taking of necessary remedial actions or advice to the consumers. A Water Quality Consumer Complaint s Report has also to be submitted. Consumers normally complaint about the aesthetic aspect of the drinking water, hence, the field testing on physical parameters (turbidity, colour, residual chlorine and ph) using portable test-kits to identify the level and nature of contaminants in the distribution system. If the initial results obtained show no water quality violation, the consumers will be advised to check their internal plumbing system. If violations are detected, appropriate remedial actions are taken and the distribution system is re-tested to ensure the contaminants have been removed from the system. The main reasons for not achieving the 100% target was that some complaints were received at night. All complaints received are recorded and investigated to enable improvements to take place. The most frequent area of consumer complaint is when long-term suspended solids or iron deposits arising from very fine sediment or corrosion in water mains have been disturbed by flow fluctuations. The total number of consumer complaints received from 1 January December 2011 was 2,346, of which 22.03% were due to internal plumbing problems. Table B below shows the number of water quality complaints from 1 January December 2011 and the half-hour response time achievement. ITEM Jan Feb Mar April May June July Aug Sept Oct Nov Dec *No. of complaints received 1 Hour Response Time (%) Half Hour Response Time (%) Sponsorship drive with the Federation of Malaysian Consumers Associations ( FOMCA ) Total No. of Complaints * Note: Excluding complaints due to Internal Plumbing and carried forward violation from WTPs. Table B - Water Quality Complaints

128 Delivering Quality Table C - Trend of Consumer Complaints from January 2007 December TOTAL MONTH Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec SYABAS event held at GREEN EXPO 2011 Consumer Awareness & Education Programme ( CAE Programme ) The CAE Programme with media coverage is ongoing with an emphasis on consumers understanding of the quality of water supplied to their premises and related issues, and their responsibility for maintaining their own internal plumbing system and internal storage tanks. Consumers have greatly benefited from SYABAS efforts in the CAE Programme. For further details of the CAE Programme, please turn to Preserving Our Environment section on pages 152 to 166 of this Annual Report. Research And Development ( R&D ) Centre In 2011, the PNHB Group continued its strides to improve the quality and reliability of water supply by the Group and sought to collaborate with local and international R&D institutions and universities on projects relating to water, wastewater and the environment with the objective to advancing in technological development and competencies within the fields of water, wastewater, environment and health. Through R&D, the PNHB Group continuously strives to improve the quality, sustainability and reliability of Malaysia s water supply through various projects to modernize and advance the nation s water technology. Our R&D Team actively brainstorm and develops ideas to further improve water operational efficiency and cost control at the WTPs. 126

129 Delivering Quality KWI - PRC Collaboration In this respect, in 2011, PNHB s wholly owned subsidiary, Puncak Research Centre Sdn Bhd ( PRC ) engaged in a number of exchanged visitation programmes with K-Water Institute ( KWI ), the Republic of Korea s leading water specialised research institute in the year The aim was to boost the research and technical collaboration between the two parties. Among PRC s collaborative research initiatives with KWI pursuant to the Memorandum of Understanding signed by PRC with KWI on 27 October 2010 for a period of three years are: Evaluating the treatment process for iron and manganese, in respect of long term water quality changes in river bank filtration. Optimising advanced membrane water treatment systems. Advancing technology for groundwater utilisation, groundwater use of riverine areas, assessing field applications by constructing test beds, riverbank filtration and artificial storage and recharge. DHI-PRC Collaboration PRC also entered into a Collaboration Agreement with DHI Denmark ( DHI ), a global leader in the field of water treatment on 15 March 2007, which has since been extended till 14 March Under the PRC-DHI Collaboration, in 2011, PRC has completed a full study on the effectiveness of the in-organic coagulants on highly colored water, which was carried out at Sg Sireh WTP. The main coagulants studied were Alum, Poly Aluminium Chloride ( PACl ), Acacia, Poly Aluminium-ferric-chloride ( PAF ) and Aluminium Chlorohydrate ( ACH ). Of these, only ACH stand out to be the better coagulant as compared to Alum. ACH s residual aluminium is lower than that of Alum. However, in term of cost, ACH s cost is five times more expensive than Alum, hence is less cost-effective. UPM PRC Collaboration Under the UPM-PRC collaboration, which is valid until 5 June 2013, PRC is studying the use of natural coagulants as alternative coagulants for the WTPs. The studies have the ultimate objective of replacing chemical based coagulants. In the initial stage, six natural coagulants were found to be suitable, namely Moringa Oleifera, Jatropha Curcas, Chitin Chitosan, Dragonfruit foliage, Aspergillus Flavus and Sago starch. In June 2011, PRC completed the evaluation on the natural coagulants. Based on extensive evaluation, Chitin Chitosan and Jatropha Curcas proved to be the best natural coagulants. In terms of the performances of the natural coagulants compared to Alum, both Chitin Chitosan and Jatropha Curcas achieved 4.8 and 6.2 NTU respectively versus Alum s 2.2 NTU. However, the Chitin Chitosan and Jatropha Curcas natural coagulants are ten times more expensive. Other Research Activities R&D Centre has also embarked on the following research activities:- (a) Wangsa Maju WTP From the studies on composting the WTPs residue (sludge) using microbes via a biological treatment, R&D s evaluations revealed that the sludge can be converted into a good soil conditioner. The metal contents of the treated sludge dropped by up to 70% while the nutrient contents increased by up to 300%. However, the Nitrogen, Phosphorus and Kalium ( NPK ) contents are still not favourable for the treated sludge to be considered as organic fertilizer. (b) Wangsa Maju WTP - Evaluating the treated sludge as effective micro-organism mud balls resulted in turbidity and colour removal of 50% and 25%, respectively. Launching of 25 th Briged Penyelamat Sungai ( BPS ) Programme 127

130 Delivering Quality BPS Programme at Sekolah Kebangsaan Sijangkang, Kuala Lumpur (c) Sg Sireh WTP - The trials performed at Sg Sireh WTP water yielded zero addition of Aluminium residuals. (d) Sg Selangor WTP - Evaluating the sludge dewatering systems using the tube concept to conclude that the concept can yield a space saving of up to 98.5%. It can be used as an alternative to a Sludge Treatment Plant, and as a quick solution to waste issue with the authority. (e) Wangsa Maju WTP - Based on the results obtained via Permulab testing and Lafarge Cement Plant s ( Lafarge ) internal testing, the sludge is mainly composed of aluminium oxide, iron oxide and silica oxide and fulfilled Lafarge s acceptance criteria. With the other heavy metal content also found to be acceptable, Lafarge concluded that the sludge can be accepted for safe disposal through resource recovery by co-processing in a cement klin. Lafarge has agreed to co-pilot the testing of ten tons of sludge from Wangsa Maju WTP with disposal fees to be borne by PNSB. R&D Centre will arrange for approval for this pilot testing. (f) Sg Langat WTP - A Training Pilot Plant ( TP Plant ) was developed via the collaboration between the Operation & Maintenance Department, the R&D Centre, the Engineering & Project Department and the Training Department. The TP Plant will be used in training for new operators, as a refresher for senior operators, and as exposure for new water engineers as well as for staff competency assessment. The development of the plant was assisted by a research study done in collaboration with Universiti Putra Malaysia. The study involved the testing of the natural coagulants on a pilot scale at Sg Langat WTP. CRISIS MANAGEMENT AT PNSB In delivering high quality, sustainable and expeditious services to our customers and stakeholders in particular during crisis periods, we regard our capacity to deal with crisis periods, as an important aspect of our corporate social responsibility. To this end, we are prepared at any time to deal and offer our assistance with respect to issues or problems that are related to raw water and treated water and/or our services, within or beyond our control. With our years of experience in the industry, we have expeditiously solved many crisis over the years. PNSB initiated a Crisis Management Plan ( CMP ) and the WTP Emergency Response Plan ( ERP ) in The CMP and ERP are reviewed on a yearly basis and updated, if required. Both plans ensure the most effective response to any form of emergency, crisis or disaster on our premises with minimal disruption to the Group s business operations. Both plans also protect the Group s corporate image. We have ten intervention teams at plant level and at various regional offices. These teams are trained to handle chlorine and other chemicals, in addition to being trained in search and rescue. 128

131 Delivering Quality The CMP was activated ten times in 2011 due to the following incidents:- Date Incident 2 February 2011 Bukit Tampoi WTP (old) shutdown due to treated water pipe burst 11 February 2011 Bukit Tampoi WTP (new) shutdown due to treated water pipe burst 26 March April 2011 Sg Sireh WTP shutdown due to raw water pollution 7 May 2011 Cheras Mile 11 WTP shutdown due to raw water pollution 14 May 2011 Gombak WTP shutdown due to raw water pollution 18 May 2011 Cheras Mile 11 WTP shutdown due to raw water pollution 1 June 2011 Sg Langat WTP shutdown for upgrading, maintenance and asset replacement works 22 November 2011 Cheras Mile 11 WTP shutdown due to raw water pollution 25 November 2011 SSP2 WTP reduced water production due to failure of Transformer No. 1 5 December 2011 SSP2 WTP reduced water production due to raw water high turbidity Water Facts 97% of the earth s water is in the oceans. 129

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133 Building Sustainability As with our business operations, the fundamental aim of our CSR activities is to build sustainability. Quality, value, service, innovation and trust lie at the heart of our commitment both to our stakeholders and to society at large. Our people are engaged in our CSR activities, frequently taking initiatives as well as implementing those activities launched by the Group. Education particularly for the young in environmental awareness and responsibility, remain as a key pillar and success story of our CSR initiatives. 131

134 Valuing Our People The Group recognises that our employees are core assets of the Group. We believe in providing not just a job but career development and advancement for deserving, committed and diligent employees. The Group recognises that our employees are core assets of the Group. We believe in providing not just a job but career development and advancement for deserving, committed and diligent employees together with a place where everyone is given the opportunity to grow, to mature and to nurture their skills. We are proud of the diversity of the workforce across all of the Group s operations. All employees are given equal treatment and discrimination is never tolerated. Due to the nature of our business and in a rapidly-changing environment, the health and safety of our employees and those who are involved in our supply-chain operations is always a priority. An Occupational, Health and Safety ( OH&S ) management system has been established at Puncak Niaga (M) Sdn Bhd ( PNSB ), as have other positive initiatives including obtaining ISO certification and garnering various health and safety awards. As part of our effort to promote a healthy culture at the work place, we continue to hold employee engagement activities to boost the spirit of solidarity, teamwork, a sense of belonging and conducive environment. EMPLOYEE PROFILE ( PNHB ) Group PNHB Group employed a total of 4,540 personnel as at 31 December 2011, locally and overseas. This represented an increase of approximately 6.9% compared to 4,245 personnel employed in We continue to promote diversity in the workplace. Any forms of discrimination, including discrimination based on age, gender, ethnicity or background, is not tolerated. The breakdown of the Group s employees by ethnic group, excluding employees in the People s Republic of China ( PRC ) is 91.3% Malays, 2.3% Chinese, 5.4% Indians and 1.0% others. As shown in Table A below, the majority of the Group s workforce (excluding employees in the PRC) consists of non-executive personnel (71.3%) with executives at 22.2% and management at 6.5%. Due to the nature of our work, which involves a lot of manual labour, our total employment by gender ratio is approximately 3:1 (3,260 Men: 1,105 Women). At executive and management levels, the gender ratio is closed to 3:1 (970 men: 283 women). PNHB s participation in Federation of Public Listed Companies ( FPLC ) 1 st Inter-Media Bowling Cup 2011 Category Gender Ethnic Group Non Management Executive Executive Male Female Malay Chinese Indian Others Total PNSB ,093 SYABAS ,381 2, , ,167 GOM POG PRC Note: PNSB denotes Puncak Niaga (M) Sdn Bhd SYABAS denotes Syarikat Bekalan Air Selangor Sdn Bhd GOM denotes GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) POG denotes Puncak Oil & Gas Sdn Bhd PRC denotes The People s Republic of China Table A - Breakdown of the Group s Employees by category, gender and ethnic group 132

135 Valuing Our People Puncak Niaga (M) Sdn Bhd ( PNSB ) PNSB is a private limited company in the PNHB Group of Companies. PNSB handles the operations, maintenance, management, construction, rehabilitation and refurbishment of water treatment facilities. PNSB had 1,093 employees as at the end of Out of the total number, 860 employees (78.7%) were male and 233 (21.3%) were female. The employment by gender ratio (men to women) is approximately 4:1 due to the nature of PNSB s operations, which involve a lot of manual labour. PNSB Workforce Breakdown by Ethnic Group 4.85% 2.65% 2.20% 90.30% Total Employees ( E ) : 1,093 Malay (987 E) Chinese (53 E) Indian (29 E) Others (24 E) More than half (65.51%) of PNSB s employees were non-executives while 25.52% were executives and the remaining 8.97% were at the Management level. PNSB Workforce Breakdown by Age Group No. of Employees Employee Turnover Age Group The turnover rate in 2011 for PNSB was 7.14% as compared with 11.0% for % of PNSB s employees are permanent staff, with the remaining 8.97% being contract workers. The tables below present PNSB s employees turnover for PNSB Employee Turnover by Category PNSB Workforce Breakdown by Category 8.97% 25.52% 65.51% Total Employees ( E ) : 1,093 Management (98 E) Executive (279 E) Non-Executive (716 E) Category Turnover (%) Management 1.43 Executive 3.17 Non-Executive 2.54 Total 7.14 PNSB Employee Turnover by Gender Gender Turnover (%) Female 2.14 Male 5.00 Total 7.14 PEKA s Fishing Competition

136 Valuing Our People PNSB Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay 5.23 Chinese 1.35 Indian 0.32 Others 0.24 Total 7.14 PNSB Employee Turnover by Age Group Age Group Turnover (%) The employment by gender ratio (men to women) is approximately 3:1 due to the nature of SYABAS operations, which involve a lot of manual labours. SYABAS Workforce Breakdown by Ethnic Group 1.23% 6.35% 0.47% Malay (2,912 E) Chinese (39 E) Indian (201 E) Others (15 E) % Total Employees ( E ) : 3,167 PEKA s Walkaton - Walk For Your Heart 2011 Total 7.14 Note : Turnover rates are derived from staff terminations, retirements and expiry of contracts. SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ) SYABAS is a private limited company in the PNHB Group of Companies, which carries out the distribution of treated water within Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. SYABAS had a total of 3,167 employees as at 31 December Out of the total number, 2,326 employees (73.4%) were male and 841 (26.6%) were female. SYABAS Workforce Breakdown by Category 75.18% 4.96% 19.86% Total Employees ( E ) : 3,167 Management (157 E) Executive (629 E) Non-Executive (2,381 E) 134

137 Valuing Our People More than half (75.18%) of SYABAS employees were non-executives, while 19.86% were executives and the remaining 4.96% were at the Management level. SYABAS Workforce Breakdown by Age Group No. of Employees ,319 Employee Turnover 1,079 The turnover rate in 2011 for SYABAS was 6.03% as compared with 7.9% for % of SYABAS employees are permanent staff, with the remaining 4.7% being contract workers. The tables below present SYABAS employees turnover for SYABAS Employee Turnover by Category Category Turnover (%) Management 0.45 Executive 2.20 Non Executive 3.38 Total 6.03 SYABAS Employee Turnover by Gender Gender Turnover (%) SYABAS Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay 5.46 Chinese 0.33 Indian 0.16 Others 0.08 Total 6.03 SYABAS Employee Turnover by Age Group Age Group Turnover (%) Visit to Vitagen factory by the children of PEKA s members Age Group Total 6.03 Note : Turnover rates are derived from staff terminations, retirements and expiry of contracts. PUNCAK OIL & GAS SDN BHD ( POG ) POG is a private limited company in the PNHB Group of Companies, which currently is involved in exploration for the production of oil and gas and other materials and the provision of offshore and onshore engineering works. POG had a total of 41 employees as at 31 December Out of the total number, 28 employees (68.3%) were male and 13 (31.7%) were female. The employment by gender ratio (men to women) is approximately 2:1. PEKA s Bubur Lambok 2011 during the month of Ramadhan Female 1.83 Male 4.20 Total

138 Valuing Our People POG Workforce Breakdown by Ethnic Group 5% 5% 90% Malay (37 E) Chinese (2 E) Indian (2 E) Others (0 E) Employee Turnover The turnover rate in 2011 for POG was 23.07% % of POG s employees are permanent staff, with the remaining 39.02% being contract workers. The tables below present POG s employee turnover for POG Employee Turnover by Category Category Turnover (%) Staff Expedition to Gunung Nuang No. of Employees Total Employees ( E ) : 41 Note: There were no employees belonging to the Others ethnic group category. POG Workforce Breakdown by Category 10% 34% % Total Employees ( E ) : Age Group Management (14 E) Executive (23 E) Non-Executive (4 E) More than half (56%) of POG s employees were non-executives, while 10% were executives and the remaining 34% were at the Management level. POG Workforce Breakdown by Age Group Management 1.71 Executive 8.42 Non-Executive Total POG Employee Turnover by Gender Gender Turnover (%) Female 7.02 Male Total POG Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay Chinese 1.25 Indian 0.62 Others 0.31 Total POG Employee Turnover by Age Group Age Group Turnover (%) Total Note : Turnover rates are derived from staff terminations, retirements and expiry of contracts. 136

139 Valuing Our People GOM Resources Sdn Bhd (Formerly known as Global Offshore Malaysia Sdn Bhd) ( GOM Resources ) GOM Resources is a private limited company in the POG Group of Companies, which is involved in providing offshore personnel services and renting of machinery and vessels. GOM Resources had a total of 64 employees as at 31 December Out of the total number, 46 employees (71.9%) were male and 18 (28.1%) were female. GOM Resources also utilised third party manpower resources and project contract workers with a total workforce of approximately 159 for the Derrick Lay Barge ( DLB ) 264 barge. The employment by gender ratio (men to women) is approximately 2:1. GOM Resources Workforce Breakdown by Ethnic Group 9.38% 3.12% 9.38% Total Employees ( E ) : % Malay (50 E) Chinese (6 E) Indian (2 E) Others (6 E) GOM Resources Workforce Breakdown by Age Group No. of Employees Employee Turnover Age Group The turnover rate in 2011 for GOM Resources was 16.88% as compared with 14% for the year % of GOM Resources employees are permanent staff, with the remaining 31.25% being contract workers. The tables below present GOM Resources employees turnover for GOM Resources Employee Turnover by Category Category Turnover (%) Management 3.78 Executive Non Executive GOM Resources Workforce Breakdown by Category 17.19% 21.87% Management (14 E) Executive (39 E) Non-Executive (11 E) Total GOM Resources Employee Turnover by Gender Gender Turnover (%) Female 5.13 Male SYABAS participated in the Malidur Rasul Celebration 2011 in Putrajaya 60.94% Total Total Employees ( E ) : 64 More than half (60.94%) of GOM Resources employees were executives, while 17.19% were non-executives and the remaining 21.87% were Management level. 137

140 Valuing Our People Employees participated in the Earth Day 2011 celebration SYABAS Senamrobik Perdana event GOM Resources Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay Chinese 0.91 Indian 0.46 Others 0.23 Total GOM Employees Turnover by Age Group Age Group Turnover (%) 30 years years years 3.90 Total Note : Turnover rates are derived from staff terminations, retirements and expiry of contracts. The People s Republic of China ( PRC ) Operations The Group s operations in the PRC employ in total 175 employees as at 31 December 2011, all of whom were hired on a contract basis. Out of the total number, 105 employees (60%) were male and 70 (40%) were female. The employment by gender ratio (men to women) is approximately 2:1. 100% of the PRC workforce are Chinese. PRC Operations Workforce Breakdown by Category 9.14% 5.15% Management (16 E) Executive (9 E) Non-Executive (150 E) PRC Operations Workforce By Age Group No. of Employees More than half (85.71%) of PRC s employees were non-executives, while 5.15% were at executive level and the remaining 9.14% were at the Management level. Employee Turnover The turnover rate in 2011 for PRC Operations was 1.4% as compared with 2.7% for BEST PRACTICE AT THE WORKPLACE Group Employee Benefits PNSB/SYABAS/POG Age Group The Group offers a comprehensive employee benefits package which includes competitive salary packages with insurance coverage for the immediate family, housing and car loan interest subsidies, interest-free assisted education loans as well as Tabung Kebajikan, computer, personal loans, medical benefits that cover outpatient treatment, hospitalisation and surgical, dental and maternity benefit for a maximum of up to five surviving children. We also contribute more than the statutory rate of employer s contribution to the Employees Provident Fund ( EPF ) for employees who have served more than two years % 138 Total Employees ( E ) : 175

141 Valuing Our People The Group s competitive remuneration packages enable us to recruit and retain talented and productive employees. Through the Malaysian Employers Federation ( MEF ) and other external sources, we review the Group s employees benefits package from time to time to ensure that the Group is at least at par with the prevailing market in terms of proposed remuneration for the Group employees. The Group ensures that our employees are adequately remunerated at all times and in accordance with the prevailing market conditions and the cost of living. As part of our responsibility as a water treatment and distribution Group and to ensure that we meet the relevant requirements and criteria as imposed by the relevant authorities, we require our employees, especially employees on the ground to put in long working hours round the clock under very challenging conditions. We ensure that our employees are provided with the appropriate benefit packages, facilities and assistance to ensure that their well being and safety are well taken care of at all times and that they are continuously appreciated and rewarded for their hard work. PRC Operations To ensure that our PRC employees are compensated adequately for their work, we abide by the minimum wage as set by the PRC local authorities. Although all PRC employees are hired on a contractual basis, our PRC employees also receive benefits such as overtime pay, leave in lieu, pension fund contributions, unemployment fund contributions, housing fund contributions, medical insurance, work injury insurance and maternity insurance, as required by PRC Labour Laws and the Social Contribution Act. All local PRC employees have their medical costs covered by a PRC Medical Insurance Contribution plan. Expatriate staff are covered by hospitalisation, medical and personal insurance. A subsistence allowance is also provided to our PRC employees for any outstation duties. Although PRC Labour Laws allow the forming of a union, there were no unions formed by our PRC employees. We do not hire those below the age of 18, which is the minimum age to commence working under PRC Labour Laws. None of our operations was identified as having a significant risk of incidents of forced labour. RECOGNISING EMPLOYEES SUPPORT PNSB/SYABAS/POG/GOM RESOURCES/ PRC OPERATIONS We strongly believe in rewarding our employees for their commitment, dedication and hard work. To recognise good work and to motivate productivity, employees with excellent performances are duly awarded with merit bonuses, salary increments and promotions. In appreciation of the employees contributions, in 2011 SYABAS held a Majlis Penyerahan Pampasan Kepada Kakitangan Serta Waris Keluarga Kakitangan SYABAS on 19 August 2011 for existing employees. Career Development The Group has a human capital retention policy to retain the best employees, to provide avenues for employee development and advancement, and to equip the employees with the necessary skills as they grow with the Group. With a structured performance evaluation framework in place and an emphasis on self development and career development and advancement, we believe that we have managed to retain and groom the best employees in the Group. Conduct of seminar for our employees Our employees engaging in group discussion on operation matters 139

142 Valuing Our People Category PNSB SYABAS Total Management (including Directors) Executive Non-Executive ,175 2,318 2,683 2,968 Total personnel trained 800 1,017 2,835 3,092 3,635 4, % 92.2% 92.9% 97.6% 85.6% 96.4% Note: For both companies, the majority of training was provided to non-executive employees. At PNSB and SYABAS, we are committed to equipping our employees with the best available resources and training. PEKA s Volleyball Tournament PNSB Performance appraisal exercises are conducted for all our confirmed employees twice a year. The Independent Employees Performance Review Committee ( IEPRC ) is responsible for reviewing, evaluating and harmonising the assessment and scoring as rated by the Heads of Departments/Divisions. The final recommendation of the review is submitted to the Executive Committee for approval and decision on the appropriate rewards based on the individual performance of the employees and the Company s performance. The IEPRC also makes recommendations to the EXCO on the appropriate actions to be taken against those employees whose performance is not up to the Company s performance requirements. Non-performing employees undergo counselling to improve their performance and their performance is reviewed for six months on a monthly basis. SYABAS Table B - Conduct of 2011 Training Sessions (in-house and external) At SYABAS, employee performance appraisal is conducted twice yearly. This involves a discussion session on performance which is called the Challenge Session. Following SYABAS performance appraisal process in 2011, 111 employees were rewarded with promotion effective January Through the Challenge Session, the Company and the Senior Management are able to constantly monitor the employees performance and address the challenges faced by the employees in excelling at their work. POG/GOM RESOURCES At POG and GOM Resources, performance appraisal exercises are conducted for all our confirmed employees twice a year. PRC OPERATIONS Our PRC operations conduct performance appraisal exercises once a year. Training At PNSB and SYABAS, we are committed to equipping our employees with the best available resources and training to enable them to carry out their responsibilities and prepare them for the challenges of a knowledge-based and demanding industry, as well as to enhance the productivity and competitiveness of the Group. In addition to in-house training, PNSB and SYABAS send their employees for external training, locally and overseas. Details of the number of training sessions (in-house and external) conducted for PNSB and SYABAS in 2010 and 2011 are set out in Table B above.

143 Valuing Our People Category PNSB SYABAS No of No of No of No of Programmes Participants Programmes Participants Personal & Leadership Development Positive Mindset ,147 Functional/ Knowledge 118 1, ,171 Supplementary Knowledge ,001 External Training (Local/ Overseas) TOTAL 296 2, ,564 Note: Employees may attend more than one training session. Table C - Breakdown of PNSB s and SYABAS training in Five Broad Categories for 2011 PEKA s Motivational Programme for the children of PEKA s members Category PNSB (RM) SYABAS (RM) In-house 377, RM250, , , External 382, RM436, , , TOTAL 759, RM798, , , Table D - Cost of Training for PNSB and SYABAS for 2010 and 2011 PNSB s and SYABAS number of training sessions increased in 2011 as compared to PNSB trained 92.2% of its employees in 2011 while SYABAS trained 97.6% of its employees in ,109 employees of the Group attended training in 2011 as shown in Table B on page140 of this Annual Report. Our training was conducted in five broad categories namely, personal and leadership development, positive mindset, functional/ knowledge, supplementary knowledge, and external training (local/overseas) ( Five Broad Categories ). Training enabled the employees to develop interpersonal, leadership and language skills, plus job functional skills/ knowledge and health and safety knowledge. Our training department also organised motivational talks for the organisation. New employees are required to attend a comprehensive Induction Programme ( IP ). At PNSB, the IP was for a duration of two days whereas at SYABAS, the IP was for a duration of three days. The breakdown of PNSB s and SYABAS training in the Five Broad Categories for 2011 are as set out in Table C above. PNSB spent RM798, on training, 4.9% up on the 2010 training cost. This amounts to approximately RM per employee for an average of 24 hours of training. SYABAS spent RM640, in 2011 which benefited 3,092 staff (97.6% of all SYABAS employees). PEKA s Badminton Tournament at Setia Alam 141

144 Valuing Our People Launching of 25 th BPS Club Programme on 24 June 2011 at Sg Langat WTP Visit to Vitagen factory by the children of PEKA s members PRC Operations Our PRC Operations spent RM3, on training in This equates to RM17.40 per employee. Listening to Our Employees Listening to and working in tandem with our employees is vital for the growth of our business and our organisation. It means building a shared vision of the business within the competitive environment. We constantly engage and interact with all our employees through our Monthly Staff Assemblies and staff meetings at Divisional and Departmental levels. Our Senior Management adopts a hands-on approach and engages with our employees regularly. Listening to our employees, acting on their views and involving them in improving our business are very important to us. We encourage a two-way communication for all levels at the workplace vis-à-vis sharing information and knowledge. Collective Bargaining Agreement The Management of SYABAS and the Kesatuan Pekerja-pekerja PUAS Berhad employees met seven times during Employees at our PRC operations are allowed to form a union, in accordance with PRC Labour Laws. However, as at 31 December 2011, there were no unions formed by our PRC s employees. Ensuring Quality and Work Ethics In line with good corporate governance, the Group has several Codes of Conduct and Policies which express and support the strategies that steer the Group to achieve its Key Performance Indicators. These Codes are: PNHB/PNSB Standard Operating Procedures Corporate Disclosure Policy Information Technology Policies (Software Licence Policy, IT Security Policy and Copying Software Statement) Investor Relations Policy Health, Safety & Environmental Policy Quality Policy Risk Management Policy Sexual Harassment Policy SYABAS Standard Operating Procedures Quality Telephone Ethics Standard People Practices Handbooks Sexual Harassment Policy Corporate Responsibility Policy Code of Business Ethics Service Counter Ethical Code Health, Safety & Environment Policy POG Standard Operating Procedures Quality Policy Health, Safety and Environment Protection Policy Drug & Alcohol Abuse Policy Smoking Policy Stop Work for Safety Policy GOM Resources Standard Operating Procedures Quality Policy Health, Safety and Environment Protection Policy Drug & Alcohol Abuse Policy Smoking Policy Stop Work for Safety Policy PRC Operations We have an Anti-Corruption Policy in place in our PRC operations. If any of our employees are found to have violated this policy, their employment with us will be terminated. There were no reported incidences of corruption in

145 Valuing Our People Caring for Staff PNSB and SYABAS recognise the importance of providing staff with an adequate work-life balance. The Association of Water Supply Workers for Selangor, Kuala Lumpur and Putrajaya (Persatuan Kakitangan Bekalan Air Selangor, Wilayah Persekutuan Kuala Lumpur dan Putrajaya) ( PEKA ) set up on 15 September 2006 is a staff association established to provide welfare assistance and to foster social and cultural bonds between the Group s employees and the community. In 2011, PEKA organised various events that included recreational activities, sporting events, and cultural and religious programmes. They were: 1. Recreational Activities Fraser s Hill Photography on 15 January 2011 Expedition to Gunung Rajah, Pahang on 30 April 2011 to 2 May 2011 Visit to Langkawi, Kedah on 2 July 2011 to 3 July 2011 Expedition to Gunung Nuang, Selangor on 2 July 2011 to 3 July Sporting Events PEKA International Jamboree Mountain Bike on 26 March 2011 PNSB and SYABAS football match on 23 April 2011 Bowling Competition SYABAS Management 4 May 2011 Senamrobik Perdana on 14 May 2011 Walkathon - Walk For Your Heart on 28 May 2011 Bowling Competition PEKA 2011 on 18 June 2011, 13 July 2011 and 25 November 2011 Fishing Competition on 25 June 2011 Launching of (1) Hari Alam Sekitar (2) Kelab Berbasikal SYABAS on 25 June 2011 Volleyball Tournament on 16 July 2011 Futsal Competition on 30 July 2011 Golf Tournament fund raising event on 30 July 2011 GYM SYABAS in conjunction with World Heart Day on 8 October 2011 Badminton Tournament on 19 November Cultural & Religious Programmes Monthly Solat Hajat dan Majlis Bacaan Yassin Monthly Majlis Tazkirah Maulidur Rasul celebration on 15 February 2011 Kursus Pengurusan Jenazah on 14 May 2011 Seminar on understanding the value of religion and culture on 16 June 2011 Visit to Glass Temple, Johor on 23 July 2011 Religious Discussion : Ahlan Wasahlan Ya Ramadhan on 30 July 2011 Bubur Lambok PEKA on 11 August 2011 Qiamullail Ramadhan on 20 August 2011 Majlis Ibadah Qurban on 8 November 2011 Majlis Berkhatan PEKA on 10 December Other Events PEKA s 5th Annual General Meeting on 19 March 2011 Hari Bumi Sedunia 2011 held on 23 April 2011 Motivational Programme for Excellent Students on 8 June 2011 and 24 August 2011 Seminar on Morality in a Family on 9 July 2011 Visit to Pusat Perlindungan Remaja Bermasalah on 16 August 2011 Breast Cancer Awareness on 22 October 2011 PEKA s International Jamboree Mountain Bike 2011 PEKA s Majlis Berkhatan

146 Valuing Our People Mock Safety Drill Seminar on Crime Prevention is Ours on 12 November 2011 Breast Cancer Examination and Basic Medical Checkup on 26 November 2011 PEKA s children visit to Vitagen factory on 21 December 2011 Monthly Assembly Our Executive Directors and Senior Management actively participated in these programmes to give support and encouragement to the employees. ENSURING HEALTH AND SAFETY As a responsible and caring employer, we always ensure that our employees are treated well and fairly. The Group takes responsibility for preventing any work-related injuries or illnesses. Throughout 2011, the Group demonstrated to the best of its ability, its business-wide commitment to improving health and safety at our workplace. PNSB Occupational Health and Safety Assessment Series (OHSAS) As one of Malaysia s leading water companies, in September 2011 PNSB was awarded with the Occupational Health And Safety Assessment Series ( OHSAS ) 18001:2007 certifications for 27 Water Treatment Plants ( WTP ) and three Regional Offices. This OHSAS 18001:2007 Award attests to PNSB s compliance with international OH&S management system specifications and to the Company s exemplary standards in delivering a high quality potable water supply as well as to its excellent health and safety practices at workplace. Prior to this prestigious accreditation, PNSB established an OH&S management system, which aims to eliminate or minimise risk to employees and other parties within its operations. Amidst the rapid expansion throughout the region, PNSB has been investing in establishing, maintaining and improving OH&S across its operations. Hazard Identification, Risk Assessment and Risk Control comprise the requirements of OHSAS Our Occupational Health and Safety Management Performance PNSB provides the necessary safety and health mechanisms for the employees who may be exposed to hazards while performing their duties. Apart from complying with statutory requirements, PNSB has its own internal controls to achieve optimum results for OH&S at the workplace. Since 2004, PNSB had a Corporate Health & Safety Committee, to ensure full compliances with OH&S requirements in the workplace. For proper implementation of OH&S procedures, PNSB s employees and permanent contractors must be adequately trained in three categories namely, Statutory Requirements, Competency Training and General Training. All Water Treatment Plants ( WTPs ) and dams staff are required to undergo a minimum of two man-days of training annually while permanent contractors must undergo at least one man-day of training a year. In 2011, Health, Safety and Environment ( HSE ) induction training, mock drills as well as Emergency Response Plan ( ERP ) training were carried out at all the 28 WTPs and the three dams to ensure staff are responsive and ready in the event of emergencies or crises. ERP drills were conducted to familiarise and to measure the level of readiness among our employees in responding to unforeseeable crisis situations. In addition, our Safety and Health Officers conducted 31 Site Safety Inspections at the WTPs and dams. The objective of these programmes is to ensure that all our WTPs and dams comply with safety regulations and adhere to the safety management system established within PNSB. 144

147 Valuing Our People In 2011, PNSB implemented the following OH&S programmes:- 1. Fire Fighting Training for ERP Team Four sessions of Fire Safety Training were held from September to December 2011 at the Akademi Bomba & Penyelamat Kuala Kubu Baru. The training was attended by a total of 120 staff from various WTPs, dams and the Headquarters. The objective of the training was to expose the staff to fire safety equipment, to enhance their knowledge of fire safety and to educate them on how to handle fire during an emergency. A knowledge of fire safety is useful not only at the workplace but at home and other premises too. 2. Overhead Crane Safety Training Pursuant to the requirements of the Occupational Safety & Health Act ( OSHA ) 1994, Safety and Health Committee Regulation 1997, PNSB successfully organised Overhead Crane Safety Training for HSE Committee members on 17, 18 and 24 October 2011 at Central Region, Southern Region and SSP2 WTP, respectively. The objective of the training was to comply with PNSB s OHSAS Management System Procedure, Safe Operation of Overhead Crane and Lifting Devices. Crane and lifting devices are heavy machinery and minor mistakes in handling the equipment can cause critical situations in many industries and construction operations. 3. Chemical Handling and Spillage Training Chemicals are often hazardous. Carelessness and negligence in handling chemicals may cause serious and even fatal injuries. Consequently, proper training and awareness on chemical handling is a must for the water treatment staff who are directly involved in handling chemicals. On 10 to 11 November 2011 and 15 to 16 November 2011, PNSB organised Chemical Handling and Spillage Training at the Southern and Central Region offices, respectively. The two-day training involved theoretical and practical sessions. 4. Emergency Preparedness and Response Plan PNSB s Emergency Preparedness and Response Plan has been continuously implemented and improved and in 2011, the following took place:- Modification of the siren signal system to better distinguish the type of alarm. Reorganisation and retraining of the fire fighting and rescue team and plant support team for increased efficiency. One major mock drill and three minor mock drills were conducted at each of the WTPs and dams, both internally and externally, with the collaboration of external parties such as chemical supplier. 5. Health and Safety Management Improvement for Contractors PNSB has implemented a clear health and safety management policy for its contractors by conducting contractors HSE briefings at Headquarters level. The system was put in place to enhance the health and safety performance of contractors working in or for PNSB. Safety and Health Training 145

148 Valuing Our People Accidents/Incidents Occurred in 2011 Wangsa Sg SSP2 Maju Sireh Central Southern Northern PNSB Type of Incident WTP WTP WTP Region Region Region HQ LTI Medical Treatment First Aid Near Miss Property Damage Spillage Fire Dangerous Occurrence Chemical Release Explosion Total Table E - Breakdown of Loss Time Injury in 2011 Training for SYABAS water tanker drivers during the ERP Operation External Inspection A corporate audit on health and safety management system was performed in 2011 by the OHSAS Internal Auditors for compliance with OH&S requirements and improvement of the health management system. We are pleased to announce that PNSB is in full compliance with the statutory requirements regulated by Department of Occupational Safety and Health ( DOSH ). Lost Time Injury ( LTI ) There was one accident that occurred in 2011, at the Northern Region, resulting in the reduction of man-hours with zero LTI. Details of LTI in 2011 are as set out in Table E above. We are proud to announce that since its commission in July 1998, SSP2 WTP has demonstrated a high level of commitment to health and safety standards at the workplace and its practices and procedures have constantly followed the Integrated Management System covering ISO 9001 (Quality), ISO (Environment) and OHSAS (Safety) Management Systems. It is worth noting that, since September 2002, the LTI has included contractors and suppliers man hours after they have undergone extensive health and safety training and familiarisation at SSP2 WTP. The total man hours with Zero LTI are as follows : Million Man Hours WTP with Zero LTI SSP2 WTP 4,129, Wangsa Maju WTP * 1,066, Sg Sireh WTP 311, Central Region 2,928, Southern Region 2,275, Northern Region 3,082, PNSB HQ 2,943,975 * Note: Wangsa Maju WTP has had zero LTI since 18 July 1998

149 Valuing Our People ACHIEVEMENTS IN THE AREA OF OCCUPATIONAL HEALTH AND SAFETY AWARDS 1. Malaysian Society of Occupational Safety & Health ( MSOSH ) Award: At the MSOSH Excellence Award 2011 held on 22 July 2011, five of PNSB WTPs won the following awards:- WTP Award SSP2 WTP Class 1 Gold Award, Wangsa Maju WTP Class 1 Gold Award Cheras Mile 11 WTP Class 1 Gold Award Gombak WTP Class 1 Gold Award Rantau Panjang WTP Class II Gold Award 2. National Council of Occupational Safety & Health ( NCOSH ) Award: At the NCOSH Excellence Award 2011 held on 21 December 2011, PNSB s SSP2 WTP won the Gold Trophy Award under the water utility sector. SSP2 WTP also received the Grand Award Trophy for NCOSH from the Minister of Human Resource, YBhg Datuk Seri Dr S. Subramaniam. CERTIFICATIONS 1. ISO 9001:2008 Certification for Nine (9) WTPs and Central Laboratory In April 2010, all Regional Offices and 20 WTPs obtained the internationally recognised standard ISO 9001:2008 Quality Management System ( QMS ) Certification. This ISO 9001:2008 QMS Certification was upgraded in 2008 from the ISO 9001:2000 Certification. PNSB is in the process of applying for the same internationally recognised standard ISO 9001:2008 QMS Certification for the remaining nine WTPs. This is to reflect PNSB s commitment to Quality Management in managing the WTPs. The ISO 9001:2008 QMS Certification for the nine WTPs is expected to be achieved by the end of The Central Laboratory has been certified for the ISO/IEC 17025:2005-General Requirement for the Competence of Testing and Calibration Laboratories in June The Central Laboratory intends to obtain ISO 9001:2008 QMS Certification to make improvements to existing systems in terms of QMS. SYABAS SYABAS operates a Health, Safety & Environment ( HSE ) Policy backed by Top Management to provide a safe and healthy workplace at all times, and to ensure that its business is conducted to the highest standards. SYABAS endeavours to: Recognise health, safety and environment objectives as an integral part of its business performance. Implement a continually improved HSE management system. Establish and periodically review its safety and environmental objectives and targets. Comply with all applicable HSE legal and other requirements to which SYABAS subscribes. Provide sufficient information, instruction, training and supervision to enhance employees health, safety and environmental consciousness so that work is performed in a safe manner. Minimise waste and continually prevent pollution in all activities. Investigate any incidents whose findings can be used to develop and continually improve health, safety and environmental conditions and performance. SYABAS Occupational Safety and Health ( OSH ) programmes are coordinated to ensure that we are able to harmonise and make OSH part of the workplace culture. PEKA International Jamboree Mountain Bike 2011 Event 147

150 Valuing Our People Confined Space Safety training In 2011, SYABAS implemented the following OSH programmes:- OHSAS 18001:2007 Certification Programme SYABAS has selected three Districts namely the Petaling, Hulu Langat and Kuala Lumpur Districts for the OHSAS 18001:2007 Certification Programme. SYABAS is still undergoing the various stages of the Certification Programme. The objective of the certification is to assess the safety management system that has been implemented in SYABAS. SYABAS safety management system documentation has been established since 2008 and encompasses procedures on maintaining a safe and healthy working environment and controlling hazard and risk at the workplace involving workers, contractors and the public. SYABAS NIOSH Safety Card ( SNSC ) Programme An SNSC Programme was conducted to enhance the compliance standards under the provisions of Section 15(2)(c) of Occupational Safety & Health Act ( OSHA ) 1994 which requires employers to provide information, instruction, training and supervision to ensure the safety and health of contractors who work at SYABAS premises. SYABAS signed a Memorandum Of Understanding with NIOSH on 22 February 2011 and the first training was conducted on 29 September As at 31 December 2011, a total of 15 training sessions involving 430 participants had been conducted for SYABAS staff responsible for monitoring contractors on site. The training for contractors commenced on 15 January 2012 and the Safety Cards will be provided to them one week after completing the course and pass the test. HSE Internal Audit The objectives of the HSE Internal Audit are:- To evaluate the effectiveness and efficiency of the implemented documents. To propose corrective action and improvement in all cases of non-conformance. Two HSE Internal Audits each were conducted at all District Offices. SYABAS appointed 50 Internal Auditors to assist in the HSE Internal Audit exercise for The internal audit at each District Office was conducted by seven auditors (five from the District itself and two representatives from HSE Headquarters). A total of 249 Non-Conformance Requests ( NCR ) had been raised from all the audits conducted and all had been rectified and closed within the agreed timeframe. Site Safety Inspection ( SSI ) SSIs are conducted on a monthly basis with the objective to ensure that all SYABAS premises and contractors comply with the requirements and provisions of the OSHA 1994 so as to protect the safety of SYABAS staff. In 2011, a total of 183 numbers of SSIs were conducted at various locations, namely pump houses, reservoirs, project sites, stores and office buildings. 366 NCRs were raised during the inspection and forwarded to the respective Districts for their corrective action. All NCRs have since been resolved and closed. Confined Space Emergency Drill The objective of the Confined Space Emergency Drill programme is to enhance the skills and the knowledge of workmen who work in confined spaces. The programme includes steps to be taken in an emergency situation while working in a confined space, and instruction on how to operate rescue equipment. 148

151 Valuing Our People SYABAS conducted a Confined Space Emergency Drill on 1 December 2011 to comply with Clause 12 of the Industry Code of Practice for Safe Working In A Confined Space Those who attended the programme were competent Authorised Gas Testers, Secretaries of Works and those who work in confined space. In attendance, too, was an expert from Hospital Kajang and his comments have been incorporated into SYABAS improvement strategy. Defensive Riding HSE has initiated a programme in collaboration with SYABAS, MSOSH and SOCSO to raise awareness of the importance of road safety, safe riding methods and emergency preparedness. The programme provided information about types of motorcycles and the safety aspects of motorcycle riding, accident statistics and actions to be taken by motorcyclists in accident situations. The launching ceremony for the programme was held on 15 November The programme consists of one theory session and one practical session. The programme was conducted over ten times between 31 October 2011 and 30 November 2011 for a total of 300 staff. At the end of each session, all participants were given a test to evaluate their understanding of the course. HSE Training In 2011, SYABAS conducted 55 HSE training sessions involving 1,734 staff, to provide awareness of HSE matters and to equip them with adequate information and knowledge about safety, covering mandatory issues, competency and general training. Authorised Entrant and Standby Person ( AESP ) in Confined Space training was conducted at NIOSH for staff who work in confined spaces. The training informs staff of their responsibilities as AESPs, safety measures that need to be taken while working in a confined space and equipment to be used in confined spaces. Authorised Gas Tester Refresher training was also conducted for SYABAS 12 Authorised Gas Testers (AGT). SYABAS had selected 30 staff from Headquarters and District Offices to act as First Aiders and they have now been trained by the Malaysian Red Crescent, Hulu Langat. SYABAS also had invited external parties to share their knowledge and give training to our staff. There was a Health Talk by the Federal Health Department, Taklimat Pencegahan Kebakaran from the Fire Rescue Department and many other talks and training sessions. Blood Donation Campaign The Blood Donation Campaign was successfully conducted at all Districts Offices involving SYABAS staff and the public. The campaign is part of SYABAS Corporate Social Responsibility ( CSR ) programmes to benefit the community. Fire Drill Programme The Fire Drill Programme was successfully conducted at all District Offices with co-operation from the Fire Rescue Department. The main purpose of this programme is to comply with Section 13 of the Factories & Machinery Act 1970 (Safety, Health Welfare). External Inspections In 2011, the Department of Occupational Safety and Health ( DOSH ) inspected 29 Air Scouring Machines in accordance with Factory Machinery Act ( FMA ) 1967 regulations regarding the renewal of Certificate of Fitness for machinery. The inspection of the Air Scouring Machines complied with DOSH regulations. Safety harnesses training for the contractors 149

152 Valuing Our People Recreation Activity at Fraser s Hill Golf Amal Championship PEKA 2011 Lost Time Injury ( LTI ) SYABAS aspires to complete accident and incident reports within three days to ensure cases are resolved quickly. As at the end of 2011, SYABAS had recorded 6,689,313 manhours without LTI. This statistic includes the ten District Offices covered by SYABAS. PARTICIPATION IN AWARDS National Council of Occupational Safety and Health ( NCOSH ) Award 2011 Ten District Offices participated in the NCOSH Award 2011 to gauge the level of implementation of safety and health practices at the workplace. AWARDS Malaysian Society of Occupational Safety and Health ( MSOSH ) OSH Award 2011 The objective of the participation is to evaluate and assess the effectiveness and continuously improve our safety and health management system. SYABAS has participated in this award since On 22 July 2011, seven District Offices namely Kuala Lumpur, Klang, Petaling, Gombak, Sepang, Hulu Selangor and Kuala Selangor obtained Gold Class I Awards and three District Offices namely, Hulu Langat, Kuala Langat and Sabak Bernam obtained Gold Class II Awards. CERTIFICATION ISO 19001:2008 Certification Programme SYABAS has embarked on obtaining ISO 9001:2008 certification for Human Resource and Administration to gain recognition of the international standard of our human resources practices. One Manual and 45 procedures have been developed or improved so as to obtain this certification. The certification audit is scheduled to be conducted in May SECURITY SERVICES The Group s premises are secured by the Auxiliary Police, whose duty is to create and maintain a safe working environment for employees and to protect the Group s assets and facilities. It is therefore vital that the Auxiliary Police project a good image to the public as they perform the task of overseeing the security of the Group s premises and employees, as well as being responsible and be involved and investigating any breach of security matters of the Group. As at 31 December 2011, 342 PNHB Auxiliary Police had undergone basic training conducted by Polis Di Raja Malaysia ( PDRM ) at the Police Training Centre at Jalan Semarak, Kuala Lumpur ( PULAPOL ). Training is also conducted annually to ensure PNHB s Auxiliary Police personnel are constantly equipped to carry out their various duties. The shooting training is conducted twice a year to ensure the Auxiliary Police have good shooting skills and are able to maintain firearms efficiently. The types of training conducted included the use and maintenance of firearms efficiently, protocol for carrying out duties, training on various laws and enactments, and the proper protocol for arresting offenders and approaching civilians. Additionally, members of the Auxiliary Police team undergo physical fitness examinations twice a year to ensure that they are fit and meet the mandatory requirement to always stay fit and able to perform on the job. 150

153 Valuing Our People MANAGING OUR SUPPLIERS AND CONTRACTORS PNSB As at 31 December 2011, PNSB had enlisted 178 contractors as panel contractors, suppliers or consultants. To ensure the quality of the contractors or consultants services, we have incorporated clauses in our contracts which state that any work done has to be of the highest quality and must conform to our standard practice. If contractors, suppliers or consultants fail to meet such desired standards, PNSB has the right to reject the goods or services provided by them. In addition, contractors, suppliers or consultants are selected based on the following, using a scouring system: 1. Financial and operating strength. 2. Past and current performance record. 3. Licence or certification from government and regulatory bodies. 4. History of satisfactory performance with other companies. 5. Registration with relevant government agencies or bodies. We do not condone contractors who are unable to provide proper services, thereby putting us and the consumers at risk by causing water supply disruptions and other inconveniences or dangers. We do not hesitate to penalise or terminate contractors who do not practise safety at the work site or who fall short of our requirements by:- Use of inappropriate tools/equipment at site. Causing road safety issues. Late delivery. Lack of safety measures on site. Poor work quality. Lack of personnel protective equipment on site. We are pleased to report that in 2011, there were no contractors, suppliers or consultants suspended from service. SYABAS There were a total of 299 contractors, suppliers and service providers registered with SYABAS. In addition to that, SYABAS has registered 148 panel contractors for pipes and meters to carry out emergency works for 10 SYABAS District Offices. Like PNSB, SYABAS has a procurement policy with which contractors, suppliers and service providers are appointed. Their appointment and selection is also based on other than commercial terms, but include sound and proven track records of their technical capability. To ensure quality of works and services, contractors and suppliers and service providers are given the following as guidelines: Garis Panduan Kontraktor, Pembekal dan Penyedia Perkhidmatan. Garis Panduan Bagi Kerja-Kerja Penyenggaraan Paip SYABAS. Their works are monitored and checked at all times by the respective Superintendent Officer ( SO ) or SO s representatives for each work and contract. Several contractors were suspended by SYABAS in 2011 due to the following reasons: Failure to complete work on time. Failure to supply goods within the agreed schedule. Failure to supply goods according to SYABAS specifications. Failure to comply with safety aspects at construction sites. Failure to have SPAN registrations renewed. Failure to renew relevant permits or licences with statutory authorities, i.e PKK, CIDB, SPAN, MOF, ST and SSM. Failure to wear SYABAS T-shirts or name tags during working hours. SYABAS Safety Handbook for Contractors at the work site Gas Saving Tips Remove excess weight from trunk of car. 151

154 Preserving Our Environment Earth Day 2011 celebration ( PNHB ) recognises the environmental impact resulting from its operations and continues to minimise this effect. As we operate in the water industry, environmental aspects are involved in every area of our business. Our commitment to preserving the environment is inculcated into all relevant aspects including raw and treated water quality, water safety and public health. The quality of water supplied is routinely monitored at both the Water Treatment Plants ( WTP ) and the distribution networks regularly. This ensures that high quality water is continuously supplied to our consumers. Our environmental initiatives also include energy performance, waste and effluents management. Waste generated by our activities arises from the production of residue from our WTPs. In order to reduce stress on the environment, Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) also monitor and incorporates consideration for carbon footprint in programmes which are in-line with its vision of preserving the environment. At PNHB, our environmental commitment is also nurtured within our workplace. This is reflected in various environmental initiatives being practised at our offices including reducing paper consumption, and applying 3R (Reduce, Reuse, Recycle) activities and energy conservation practices. We carefully monitor our carbon footprint performance so as to better manage the emissions derived from the activities of the Company, and its employees, suppliers and contractors. SYABAS takes its corporate environmental responsibility for the protection, conservation and enhancement of the natural environment very seriously. One of SYABAS most tangible commitments to the sustainability of water resources in Selangor is its Environmental Surveillance Section ( ESS ), a division fully responsible for monitoring issues relating to the environment within the six water catchment areas in Selangor. Since the inception of ESS, SYABAS has developed Water Resources Surveillance Programmes through its Sanitary Surveys, its Water Quality Index ( WQI ) Programme, Environmental Impact Studies and investigations of raw water quality violations. These programme provide close and effective monitoring of the water catchment areas, with special focuses on: Preservation and/or improvement to raw water quality Identifying and monitoring potential pollution sources and activities Making appropriate recommendations to stakeholder groups including water operators, government departments, government agencies and civil society Various pollution sources were identified as contributing to water resources pollution, thereby affecting water treatment and supply, namely: Illegal sand mining Industrial activities that directly or indirectly discharge untreated waste into the rivers Untreated or partially treated sewage discharges Illegal solid waste dumping Effluence from landfills Land clearing Animal husbandry activities Leachate from old and existing solid waste dumping sites SYABAS has highlighted these concerns to the authorities, and is working closely with the Department of Environment (Jabatan Alam Sekitar) ( DOE or JAS ) Selangor and Selangor Water Management Authority (Lembaga Urus Air Selangor) ( LUAS ) and other relevant authorities at state and federal levels to prevent pollution. Through these relationships, SYABAS supports the enforcement agencies efforts to mitigate incidences of pollution, and to ensure environmental care. 152

155 Preserving Our Environment SYABAS is also a member of various Selangor State Government committees, namely: Jawatankuasa Tetap Alam Sekitar Negeri Selangor Jawatankuasa Tetap Infrastruktur dan Kemudahan Awam Negeri Selangor Jawatankuasa Pengurusan Lembangan Sungai ( Sg ) Negeri Selangor Pasukan Petugas Lembangan Sg Selangor Pasukan Petugas Lembangan Sg Langat Pasukan Petugas Lembangan Sg Klang Raw Water Quality and Violations Raw water pollution is one of the leading causes of WTP shutdowns and operational interruptions. To determine pollutant levels in raw water sources, we monitor raw water quality violations at 31 water intakes located within six water catchment areas operated by Puncak Niaga (M) Sdn Bhd ( PNSB ), Syarikat No. of Raw Water Quality Violation & Frequency of Plant Shutdown Pengeluar Air Sungai Selangor Sdn Bhd ( SPLASH ) and Konsortium ABASS Sdn Bhd ( Konsortium ABASS ). For the 27 water intakes operated by PNSB, the water quality data is compiled based on the monthly Water Quality Reports. The raw water quality is monitored according to the parameters set out under the Recommended Raw Water Quality Limit of the Ministry of Health s ( MOH ) National Standard for Drinking Water Quality (2004) ( NSDWQ ) which are categorised into:- 1. Microbiological 2. Group I (Physical) 3. Group II (Inorganic matter) 4. Group III (Heavy metals) 5. Group IV (Pesticides) 6. Group V (Radioactivity) The following Chart A illustrates the annual raw water quality violations and plant shutdown cases from 1995 until Raw water pollution is one of the leading causes of WTP shutdowns and operational interruptions. Total Raw Water Quality Violations Plant Shutdown Due to Raw Water Quality Violations Chart A - Annual Raw Water Quality Violations & Plant Shutdowns ( ) 153

156 Preserving Our Environment 2011 BPS Membership Recruitment Drive at Sekolah Menengah Kebangsaan Darul Ehsan Based on the raw water quality data from PNSB in 2011, the number of violations decreased by 17.7% to 1,085 from 1,319 in The breakdown of the violated parameters in 2010 and 2011 is as shown below: Parameter group Total Raw Water Quality Violations Recorded Microbiological Group I - Physical Group II - Inorganic matter Group III - Heavy metals 11 1 Group IV - Pesticides 0 0 Group V - Radioactivity 1 3 Total 1,319 1,085 Based on the analysis conducted, most of the raw water quality violations had occurred in the Sg Langat, Sg Selangor and Sg Bernam River basins as illustrated below:- Total Raw Water Quality Violations Total Recorded Catchment Area WTP(s) Sg Langat Sg Selangor Sg Bernam Sg Kelang Sg Buluh Sg Tengi Total 29 1,319 1,085 As mentioned earlier, raw water pollution is one of the leading causes of WTP shutdowns and water supply interruptions. When such incidences occur, an environmental investigation is conducted to identify the source of the raw water pollution. As soon as the source is identified, authorities such as the National Water Services Commission ( Suruhanjaya Perkhidmatan Air Negara ) ( SPAN ), JAS Selangor and LUAS will be informed for further action. Following this, full investigation reports are forwarded to these authorities and other government agencies such as the Ministry of Energy, Green Technology and Water ( Kementerian Tenaga, Teknologi Hijau dan Air ) ( KeTTHA ), the Selangor State Government and the respective municipal councils. Cooperation from these authorities is necessary for action to be taken against the perpetrators of the pollution. Recommendations and solutions are also put forward to ensure that such incidences of pollution will not occur again. In 2011, a total of nine incidences of pollution occurred where WTPs were shutdown, in addition to numerous incidences of water supply interruptions. The details of these incidences are as set out in Table A on page 155 of this Annual Report. 154

157 Preserving Our Environment Shutdown Type of Probable source No. Date WTP hours pollution of pollution 1. 6 January 2011 Sg Rumput 3 hrs High raw High loading of silt water turbidity due to heavy rainfall March 2011 Sg Sireh hrs High raw Problematic raw water colour water quality requiring very high alum dosage 3. 7 May 2011 Cheras 7.75 hrs Diesel spillage Domestic and Mile 11 industrial effluent May 2011 Gombak 3.25 hrs Diesel spillage Source of pollution could not be identified May 2011 Cheras 7.25 hrs Diesel spillage Domestic and Mile 11 industrial effluent November Cheras 9 hrs Diesel spillage Suspected effluent 2011 Mile 11 discharge from industrial area November Cheras 9 hrs Diesel spillage Suspected effluent 2011 Mile 11 discharge from industrial area November Sg Rumput 3 hrs High raw High loading of silt 2011 water turbidity due to heavy rainfall 9. 5 December Rantau 8 hrs High raw River bank collapse 2011 Panjang water turbidity at upstream of Sg Kerling, near the Selangor-Pahang border due to heavy rainfall Misi Bantuan Bekalan Air Bersih to flood victims in Johor Table A - Record of Plant Shutdown Cases Due to Raw Water Pollution in

158 Preserving Our Environment Shutdown Type of Probable source No. Date WTP hours pollution of pollution 1. Monthly Sg Langat - High raw Discharge from sand water turbidity mining area near Sg Sub, and colour tributary of Sg Langat 2. 8 April 2011 SSP2 - High fluoride Suspected effluent level in raw water discharge from upstream industrial area 3. 5 December SSP2 - High raw River bank collapse 2011 water turbidity upstream of Sg Kerling, near the Selangor-Pahang border due to heavy rainfall Table B - Record of Water Supply Interruptions due to Raw Water Pollution in 2011 Upon a detailed breakdown and evaluation of the Water Quality Index ( WQI ) of the 31 intakes for 2010 and 2011 as below, 5 stations (16.1%) were categorized under Class I in 2011, 21 stations (67.8%) fell under Class II, and 5 stations (16.1%) under Class III. Compared to 2010, generally, the number of water intakes that were categorised under Classes I and III decreased in 2011, hence, resulting in more water intakes being classified under Class II. Table C - Record of WQI of the 31 Intakes for Year 2010 and 2011 Year 2010 Year 2011 WQI No. of No. of Class WTP WTP WTP WTP I 8 Kuala Kubu Bharu, Kalumpang, 5 Sg Pangsoon, Sg Pangsoon, Sg Lolo, Sg Lolo, Ampang Intake, Sg Serai, Gombak, Sg Rangkap, Sg Rumput Ampang Intake, Sg Rumput Launching of World Water Day 2011 II 16 Bernam River Headworks, 21 Bernam River Headworks, Rantau Panjang, North North Hummock, Batang Kali, Hummock, Batang Kali, Kuala Kubu Bharu, Sg Selisek, Sg Dusun, Kalumpang, Sg Selisek, Sg Tengi, Sg Buaya, Sg Dusun, Sg Tengi, Sg Langat, Bukit Nanas, Sg Buaya, SSP2, Sg Batu, Sg Rangkap, Sg Langat, Sg Serai, Kepong, Wangsa Maju, Bukit Nanas, Sg Batu, SSP1, SSP3-Rasa Gombak, Kepong, Wangsa Maju, SSP1, SSP3- Badong, SSP3- Rasa, Semenyih 156

159 Preserving Our Environment Year 2010 Year 2011 WQI No. of No. of Class WTP WTP WTP WTP III 7 SSP2, Sg Sireh, Bukit Tampoi, 5 Rantau Panjang, Sg Sireh, Cheras Mile 11, Salak Tinggi, Bukit Tampoi, Cheras Mile 11, SSP3-Badong, Semenyih Salak Tinggi IV 0 None 0 None V 0 None 0 None Total Note : The WQI was derived from water quality data obtained from Monthly Reports submitted by PNSB (27 intakes) and monthly raw water sampling carried out by SYABAS (SSP1, SSP3- Badong, SSP3-Rasa and Semenyih intakes) in 2010 and 2011 Name of WTP in bold The WTP fell into a lower class compared to the previous year Name of WTP in bold italic The WTP improved to higher class compared to the previous year The raw water quality at four water intakes was found to be improving, namely Sg Rangkap WTP (Class II to Class I), SSP2 WTP, SSP3- Badong WTP and Semenyih WTP (Class III to Class II). Meanwhile, four water intakes were downgraded from Class I to Class II quality, namely Kuala Kubu Bharu WTP, Kalumpang WTP, Sg Serai WTP and Gombak WTP; and one intake, namely Rantau Panjang deteriorated from Class II to Class III. Ammonia Level Monitoring Ammonia Level Monitoring was conducted on an hourly basis at four critical WTPs along the Sg Langat Basin, namely Sg Langat, Cheras Mile 11, Bukit Tampoi and Salak Tinggi WTPs to ensure early preparation and necessary action should the WTPs be required to shutdown due to high ammonia levels. Details of the Ammonia Level Monitoring along the Sg Langat Basin are as set out in the Delivering Quality section on pages 117 to 129 of this Annual Report. SANITARY SURVEYS The sanitary survey is a programme conducted to assess the general impact that human activities have on raw water resources and their corresponding quality. It is also carried out to assess the efficiency of the WTPs treatment process corresponding to the raw water components as well as the treated water quality in the distribution lines. In 2011, a total of nine sanitary surveys were jointly conducted with MOH and WTP operators at the following study areas and the surveys covered the WTP processes and distribution area:- I. North Hummock WTP II. Rantau Panjang WTP and SSP2 WTP III. Sg Selangor Distribution Area (Sabak Bernam) IV. Salak Tinggi WTP V. Sg Serai WTP VI. Sg Selangor Distribution Area (Petaling) VII. Bukit Tampoi WTP VIII. Sg Batu WTP IX. Kalumpang WTP Technical visit by Persatuan Pekilang-pekilang Malaysia (FMM) to SSP2 WTP 157

160 Preserving Our Environment Misi Bantuan Bekalan Air Bersih to flood victims in Johor Based on these surveys, several human activities that might have raw water pollution impacts were identified such as land clearing, illegal sand mining, stone quarries, open landfills and illegal waste dumping sites with no leachate treatment facilities. These surveys facilitate early detection and provide a general idea about the potential sources of contamination and plant shutdown during the occurrence of pollution events. The findings of the surveys together with recommendations thereon are highlighted to the relevant agencies and authorities to mitigate pollution incidents and manage environmental risk before any of the WTP s operation and water supply are jeopardised. ENVIRONMENTAL IMPACT STUDY ( EIS ) In 2011, land use assessment for the EIS was carried out for Sg Selangor, Sg Langat, Sg Bernam, Sg Klang, Sg Tengi and Sg Buloh catchment areas. Land use within the water catchments refers to various natural or human activities that may result in contamination of raw water and cause deterioration to its quality. The pollution may affect the raw water quality to the point where water treatment processes are unable to cope, consequently leading to a disruption in the drinking water supply. In addition to land use assessment, raw water quality monitoring and WQI assessment were also carried out for the water intakes in 2011 on a monthly basis in order to determine the current raw water quality. The EIS programme provides information on the current condition of the raw water quality and pollution issues faced within the water catchments. Treated Water Quality The Water Quality Surveillance Monitoring Programme for all the 29 WTPs managed by PNSB is conducted by the Central Laboratory as well as an independent accredited laboratory appointed by PNSB. The programme is carried as per requirement stated in the Concession Agreements and MOH s NSDWQ. Based on the water quality surveillance monitoring programme carried out for January December 2011, treated water compliance achieved was 99.9% as against MOH s NSDWQ as depicted below: Period Number Number of of % of analysis compliances compliances January December ,366 19, Note: The above is based on analysis by Central Laboratory and Independent Laboratory In addition to the above, treated water quality performance was also gauged using the indicators for Quality Assurance Programme ( QAP ) by MOH. Based on the monitoring conducted for January December 2011 by Central Laboratory, Independent Laboratory appointed by PNSB and WTPs, treated water quality produced by all the 29 WTPs complied with MOH s requirement as shown below: Parameter QAP (% violation) 2011 E. Coli Free residual chlorine (FRC) E. Coli & FRC Turbidity Aluminium Note: The above is based on analysis by Central Laboratory, Independent Laboratory and WTPs The above show that treated water produced by PNSB has high percentage of compliances as well as meeting MOH s requirements. 158

161 Preserving Our Environment Filter Run Time Per Month As December 2010 As December 2011 (hours) No. of filters % No. of filters % Total Table D - Breakdown of the filter running hours. * Note : Some of the filters were not in operation as they were either under repair or on standby. Reservoir Water Quality Monitoring The treated water from WTPs will be stored in reservoirs prior to distribution by SYABAS to consumers. In order to ensure that high quality water is continuously supplied to consumers, routine Reservoir Water Quality Monitoring at different depths is conducted on quarterly basis. The status of water quality in the reservoir is monitored through the analysis of water quality parameters such as ph, turbidity, colour, aluminium, iron and manganese. The monitoring results are used to determine whether the reservoir requires flushing or cleaning. Based on the monitoring conducted in 2011, a total of seven reservoirs were identified and cleaned either manually or by using a robotic method. These reservoirs were: 1. Sg Sireh 2. Sg Buaya 3. North Hummock 4. Gombak 5. Cheras Mile Sg Serai 7. Sg Lolo (Old) Filter Performance Monitoring Filtration is the final step in the water treatment process, removing fine suspended solids remaining after the clarification process. Monitoring filter performance, most importantly tracking the running hours is critical to ensure that the filter remains in good operating condition. When a given filter has reached its specified number of running hours or its headloss level, backwashing is initiated. The Research & Process Unit ( R&P ) constantly monitors filter performance by tracking each filter s running hours. Based on the monthly statistics for a total of 174 filters operating at our 29 WTPs, the breakdown of the filter running hours is as tabulated in Table D above. Since PNSB assumed the management of the 29 WTPs in 2005, it has implemented various initiatives which have resulted in tremendously improved filter running hours. As a result, there were no filters with short running hours in 2011 (less than 30 hours). Firstly, R&P conducted treatment process studies at the Sg Rangkap, Cheras, Bukit Nanas and Rantau Panjang Old WTPs, to ensure efficiency and other treatment process prior to the filtration process, as inefficient treatment would burden the filters. The results of the studies have also resulted in the review of filter operation procedures. BPS activities at Karnival Sayangi Selangor held at I-City Shah Alam 159

162 Preserving Our Environment Secondly, PNSB initiated plant improvement works which included refurbishing some of the older filters and installing filter monitoring instruments. 14 of the WTPs namely, Sg Buaya, Batang Kali, KKB, Sg Tengi, Sg Selisek, Rantau Panjang Old, Rantau Panjang New, North Hummock, Bukit Nanas, Sg Rangkap, Bukit Tampoi Old, Bukit Tampoi New, Sg Langat and Cheras Mile 11 WTPs have recorded more effective filter performance following this initiative. 2. Delivering a talk on PNSB s and SYABAS operations with activities and demonstrations including members recruitment drive for BPS as part of the Educational Outreach Programme ( Program Pelestarian Pendidikan ) ( 3P ) at schools. The details of the participating schools at the event are set out in the Engagement with Our Community section on pages 167 to 174 of this Annual Report. 160 World Water Day 2011 celebration in Shah Alam PNSB continues to carry out filter refurbishment works as the need arises, and the Gombak and Sg Batu WTPs filters were refurbished in R&P will continue to monitor and perform studies to further improve the running hours with the objective to achieving a backwashing cycle of 72 hours, or whenever filter headloss reaches 1.8 metres, whichever occurs first. PUBLIC AWARENESS PROGRAMME ON ENVIRONMENTAL PROTECTION AND CONSERVATION The Group successfully organised and/or participated in various environmental awareness campaigns and activities in 2011 in a bid to highlight the impact of environmental pollution, and the need to preserve and conserve our water resources ( Activities ). The Activities were as follows:- 1. Delivering environmental talk and facilitating demonstration of river water quality testing with students and the public at the 25 th River Rescue Brigade ( Briged Penyelamat Sungai ) ( BPS ) Club Programme with the theme 1 Sungai 1 Tanggungjawab 1 Kita at Sg Langat WTP on 24 June 2011, officiated by the Deputy Prime Minister s wife, YAB Puan Sri Noorainee Abdul Rahman. The details of the participating schools at the event are set out in the Engagement with Our Community section on pages 167 to 174 of this Annual Report. 3. The 2011 BPS Membership Recruitment Drive were conducted by BPS at schools. The details of the participating schools are set out in the Engagement with Our Community section on pages 167 to 174 of this Annual Report. 4. Setting up and manning a World Water Day 2011 exhibition booth at SYABAS Headquarters from 22 March 2011 to 26 March The details of the participating schools at the event are set out in the Engagement with Our Community section on pages 167 to 174 of this Annual Report. 5. SYABAS Exhibition in conjunction with an Official Visit by the Deputy Prime Minister, YAB Tan Sri Muhyiddin Hj Mohd Yassin, at Sekolah Kebangsaan Sijangkang, Kuala Langat on 29 March BPS facilitation of activities in conjunction with the World Water Day 2011 celebration by the Selangor State Government and LUAS at Dataran Kemerdekaan, Shah Alam on 2 April Public Awareness Programme for the public, the details are as set out in the Engagement with Our Community section on pages 167 to 174 of this Annual Report.

163 Preserving Our Environment 8. Official Visits from the following authorities, bodies and the public:- a. Persatuan Pekilang-pekilang Malaysia (FMM) at SSP2 WTP on 5 April b. Public Utility Board, Singapore at Operation Command Centre on 7 April c. TYT Mohamed Saheb Al-Daragi, Menteri Perumahan dan Pembinaan Iraq at Wangsa Maju WTP on 25 April d. Representative from Industri Perdagangan Zon Bebas Utama at Auditorium, SYABAS Head Office on 10 May e. National Water and Wastewater Organisation of Iran at SYABAS Auditorium on 16 May f. Persatuan Suri dan Anggota Wanita Perkhidmatan Awam Malaysia (PUSPANITA) to SYABAS Head Office at PUSPEL, Command Centre and Auditorium on 18 May g. Persatuan Pentadbiran Industri Bangi at SYABAS Auditorium, Command Centre and PUSPEL on 21 June h. Air Kelantan Sdn Bhd at SYABAS Auditorium on 22 June i. Top Management of KWSP to Klang Gates Dam, Wangsa Maju WTP and SYABAS on 11 July j. Tenaga Nasional Berhad to SYABAS Head Office on 18 July k. Lembaga Zakat Selangor to SYABAS Head Office on 19 July l. Delegation from the 2 nd IWA Development Congress and Exhibition 2011 at Wangsa Maju WTP and SYABAS Head Office on 21 November m. Representative from Pengurusan Pusat Dialisis Negeri Selangor and the Federal Territories of Kuala Lumpur and Putrajaya at Auditorium, Command Centre and PUSPEL on 29 November 2011 and 6 December Consumer Awareness and Education Programme ( CAE Programme ) The Consumer Awareness Programme ( CAP ) is an education campaign that was initiated by SYABAS in early 2008 to create immediate consumer awareness of water quality issues. It exposes consumers to the stringent water quality monitoring activities carried out by MOH and SYABAS. In a bid to educate consumers, the CAE Programme with media coverage includes educational events, as well as issuing print and electronic advertisements and infomercials on SYABAS. The programme also emphasises the role of consumers in enhancing water quality, such as by inspecting and maintaining internal piping systems and internal storage tanks and engaging licensed plumbers to ensure that inspections and cleaning are carried out professionally. It also counters misconceptions about using household water filters, which can sometimes contribute to the deterioration of water quality at the consumers premises. Besides this, the programme educates the consumers to actively fulfil their roles and responsibilities in preserving the quality of water supplied to their premises by maintaining the internal plumbing system. Launching of World Water Day

164 Preserving Our Environment Visit by the students from Chin Hock Methodist Sunday School to SSP2 WTP Visit by the students from Universiti Putra Malaysia to SSP2 WTP Since 2010, CAPs have been carried out on a bigger scale than in previous years at both the headquarters and district levels. The knowledge to be imparted is also delivered in a more interactive atmosphere in the form of educational talks, dialogues, exhibitions and demonstrations, which are not only limited to water quality issues. Thus, the programme also touches on other water supply issues such as low water pressure, pipe bursts/leaks, billing problems, etc. Demonstrations of the quality of water supplied were also carried out at consumers premises, including residential areas, commercial areas and at organisations such as educational and medical institutions. To ensure continuous improvement of the programme, Guidelines for Consumer Awareness and Education Programme were developed in 2010, together with the consumer feedback survey to evaluate the impact and effectiveness of the programme. Comments and suggestions received from consumers have enabled SYABAS to further enhance our efforts in ensuring that the supply of treated water is always clean and safe for consumption. Summary of CAP organised by Headquarters and Districts from Year 2007 to 2011 YEAR CAP events organised by Headquarters CAP NA events organised by Districts Note: NA Not Available. CAP at districts level was only introduced in Waste Management Waste generated by our activities is generally residue (from our water treatment facilities), paper waste, and construction waste (from our projects and maintenance programme). Our biggest waste issues arise from the generation of residue from our WTPs. In 2011, 1. SSP2 WTP produced a total of 335,124 metric tonnes ( MT ) of treatment residue. 2. Wangsa Maju WTP produced a total of MT of treatment residue. WTP Residue Treatment SSP2 and Wangsa Maju WTPs are equipped with sludge treatment facilities ( STF ) to treat the residue. DOE has approved our application for special management of scheduled waste for the Bukit Badong Depository Area to be developed for the residues from the SSP2 and Wangsa Maju WTPs. The construction of the depository area is ongoing and is expected to be completed by Reducing Paper Usage In 2011, PNSB s paper usage increased by 24.5% as compared to This increase was attributed to the increase in the Company s tender submissions, business proposals and the increased in staff recruitment. At SYABAS, we utilise paper for our daily operations. Based on internal records, our paper consumption rose from 2009 until In 2009, the A4 paper consumption stood at ton which is equivalent to ton of carbon dioxide ( CO 2 ). In 2010, the paper consumption increased by 2.68 ton (5.13%), and this increasing trend continued in 2011, with paper consumption increasing by 5.01 ton (9.12%). 162

165 Preserving Our Environment SYABAS Paper Consumption (A4) from 2009 to Paper Consumption (ton) Carbon Emission (ton of CO 2 )* *Note : Office paper produces 0.27 metric ton of carbon equivalent ( MTCE ) per ton of paper (Source: The US EPA report, Solid Waste Management and Greenhouse Gases A :Life-Cycle Assessment of Emission and Sinks 3rd Edition, 2006) The Group will continue to intensify efforts to reduce paper consumption by adopting green practices. As a start, we have encouraged the dissemination of information electronically. Reducing Construction Waste SYABAS requires all its contractors to clean up waste generated from maintenance activities. These contractors are monitored frequently to ensure full compliance. Further information is provided in the section entitled Managing Our Suppliers And Contractors under Valuing Our People section on page 151 of this Annual Report. Use of Resources Raw Water Drawn for Treatment The following table summarises the amount of raw water drawn from the various rivers and dams for treatment at PNSB s WTPs in Source of Volume No. raw water Withdrawn (m 3 ) 1. Sg Bernam 10,687, Sg Batang Kali 4,155, Sg Dusun 404, Sg Inki 2,284, Sg Tengi 686, Sg Gerachi 1,806, Sg Darah 170, Sg Selangor 367,377, Sg Gombak 26,707, Sg Ampang 6,960, Sg Rangkap 3,911, Sg Kepong 773, Sg Rumput 285, Sg Langat 212,437, Sg Serai 410, Sg Lolo 1,265, Sg Pangsoon 1,402, Sg Labu 1,030, Sg Sireh 9,405, Batu Dam 41,311, Klang Gates Dam 55,780, Tasik Subang Dam 3,734,000 TOTAL 752,987,773 The current climate changes make weather patterns harder to predict, making it more important than ever to continuously plan and monitor the flow and volume of water in the rivers from which we obtain raw water so as to ensure optimisation of raw water abstraction from the rivers. Water Utilization Water is used for cleaning and maintenance works such as WTP filter backwashing, reservoir and storage tank cleaning, cleaning of pipelines, and flushing. SYABAS participation at the Green EXPO 2011 held at Tunku Abdul Rahman College, Setapak 163

166 Preserving Our Environment We constantly endeavour to find new ways to further reduce water usage. Visit by the students from Universiti Putra Malaysia to SSP2 WTP We constantly endeavour to find new ways to further reduce water usage. Already, we have cut plant water losses by adopting wash water recovery and by increasing the filter backwash cycle to 72 hours. In addition, to clean the pipelines, since 2007, SYABAS has used air scouring technology instead of conventional flushing, which has resulted in less water usage in cleaning the pipelines. In 2011, operational water usage at SYABAS decreased by 19.08% compared to the figures reported in Reducing water losses makes for more effective utilisation of precious water resources. Between 2005, when it started operations, and 31 December 2011, SYABAS has managed to reduce water losses from 42.78% in 2005 to 32.31% in 2011, a reduction of about 10.47%. This has resulted in a saving of about 273 MLD of water in physical losses. SYABAS water consumption across all its offices saw a 27.89% increase in 2011 (55,663m 3 ) compared to the previous figure of 43,522 m 3 in In 2011, water usage at PNSB increased by 6.78% (1,054m 3 ) compared to the usage amount of 15,555 m 3 in Water Consumption (m 3 ) Our Water Consumption ( ) 0 55,663 46,300 43,522 SYABAS Company ,609 15,555 14,224 PNSB The Group also provides technical advice to the authorities on rainwater harvesting and presented various technical papers on environmental issues and protection. Electricity Consumption The water industry is electricity-intensive. At PNSB, the WTPs pumping systems account for the highest electricity consumption, while SYABAS requires electricity to drive its 498 pumping stations. The Group s electricity consumption in 2011 was as set out below:- At the Wisma Rozali (headquarters), electricity consumption was successfully reduced by 1.75% from 2010 to At the WTPs, electricity consumption increased by 0.92% from 2010 to The increase resulted from a 1.63% increase in the volume of water produced. At SYABAS, further measures were taken and continue to be taken to reduce electricity usage at booster pumping stations and office buildings. Although our electricity optimisation programme is ongoing at the WTPs, only relatively small reductions in electricity consumption are possible as the WTPs are operating at optimal efficiency in terms of electricity consumption. Energy Efficiency Initiatives However, in order to make savings wherever possible, in 2011, PNSB conducted a few initiatives at SSP2 WTP, and the initiatives were as follows:- 1) Replacement of Fluorescent Light to Low Bay Light at Lime Plant Stream C & D Estimated saving = RM3, per year 164

167 Preserving Our Environment 2) Reuse Sampling Water for WTP usage at Filtration Plant Estimated saving = RM127, per year 3) Decommission Coagulation Mixers at Coagulation process Actiflo Plant Estimated saving = RM80, per year 4) Refurbishment of Treated Water Pump P2 at TWPS Estimated saving = RM30, per year Use of Raw Materials We are also pleased to report that PNSB utilised a total of 42, MT of chemicals in the water production process in As at 31 December 2011, total production of treated water at all 29 WTPs was 703,477,920 m 3 and about kg of chemicals were required to treat 1 m 3 of water. The amount of chemical usage for 2011 is equivalent to the amount of chemicals usage last year. Carbon Emissions The first time we reported our Carbon Emissions based on the Green House Gas ( GHG ) Protocol was in Concerned with global environmental issues, especially climate change, Malaysia has adopted a voluntary target of a reduction of up to 40 per cent in the ratio of its carbon emissions to gross domestic product ( GDP ) to be achieved between 2005 and The commitment was announced by our Prime Minister, YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak during the United Nations Climate Change Conference held in Copenhagen in December To play its role in reducing environmental stress, SYABAS is also planning to position the company on a low-carbon path, which in is line with our vision to ensure the preservation of the environment. In May 2010, SYABAS initiated the Carbon Footprint Initiative Programme ( CFIP ) setting a baseline for carbon emissions arising from SYABAS operations starting in Emission quantification was based on the 2006 Intergovernmental Panel on Climate Change ( IPCC ) Guidelines for National Greenhouse Gas Inventories, the UNEP Tool and Guidelines for Calculating Greenhouse Gas Emissions for Businesses & Non-Commercial Organisations and the Department for Environment, Food and Rural Affairs UK ( DEFRA ). The Table E below summarises the carbon emissions by source and quantity for 2010 and Based on the information gathered in 2011, the electricity consumption (Scope 2) contributed 97% (103,653 t CO 2 ) to SYABAS carbon footprint and the fuel consumption by the company s vehicles (Scope 1) contributed 3% (3,557 t CO 2 ). GHG Source Unit Electricity (Scope 2) t CO 2 103, ,653 Transport (Scope 1) t CO 2 3,475 3,557 Total t CO 2 107, ,210 Note: SYABAS Carbon Footprint is based on emission factor published by GreenTech Malaysia for electricity in Malaysia (0.683 t CO 2 /Mwh) Table E - SYABAS CO 2 Emission in 2010 and 2011 Water Facts A person consumes more than 16,000 Gallons of water in his life time. 165

168 Preserving Our Environment To ensure that SYABAS staff are collectively committed to the CFIP, an integrated working group was formed in December The main task of the working group are to ensure that all relevant stakeholders are consulted and involved in the programme, to conduct studies on proposed carbon reduction measures and to develop a SYABAS Climate Change Policy. The SYABAS CFIP includes short term programmes that promote green habits/culture among staff, suppliers and contractors, to medium term programmes which emphasise increasing energy efficiency, and long term programmes that include studies on the potential to generate renewable energy. In summary, SYABAS CFIP is a voluntary programme that embodies SYABAS environmental aspirations which will encourage economic development and positively contribute to the mitigation of climate change Locations MT CO 2 -eq MT CO 2 -eq Wisma Rozali 1, , WTPs 158, , SYABAS 107, , Total 266, , MT CO 2 -EQ ( 000) Scope 2 Emissions Arising from Electricity Usage in 2010 and Year SYABAS WTPs Wisma Rozali Compared with estimated carbon emissions arising from electricity consumption in 2010, in 2011 Scope 2 s estimated carbon emissions declined by 1.75% BPS Membership Recruitment Drive at Sekolah Kebangsaan St Mary 166

169 Engagement With Our Community For ( PNHB ), Corporate Social Responsibility ( CSR ) comprises activities that safeguard the interests of the environment, communities, employees, shareholders and other affected parties as an integral part of the Group s strategy for long-term, sustainable value creation. We have a policy that specifically addresses various areas, including: The environment To promote and carry out activities to minimise the risk of pollution and degradation of our environment. Employees To respect the rights and diversity of our employees by providing conducive working conditions and equal opportunities. Ethics To promote high standards of integrity and professionalism. Relationship with consumers, suppliers and partners To satisfy consumers, suppliers and partners needs and provide a high quality of customer service and business practice. Community involvement To support philanthropic and charitable giving and encourage our employees to help local communities. Engagement with stakeholders To listen to and engage with local communities in a responsible and caring manner. Saving, protecting and nurturing the diversity of life on earth while helping to protect our sources of clean drinking water is fundamental to our CSR. For this purpose, Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) has developed the tagline Nurturing Relationships to represent its commitment to environmental preservation as a core element in its CSR efforts. We continue to contribute to maintain our recognition as a caring organization towards our community. COMMUNITY INVESTMENT As a caring organisation, Puncak Group contributes to community initiatives each year. In 2011, Puncak Niaga (M) Sdn Bhd ( PNSB ) and SYABAS contributed a total amount of RM2,793, to various causes, via sponsorship and community care. Some of these included the Turun Ke Padang Programme, donations to charitable organisations, sponsorship of community events, and of educational programmes and events organised for the Group s employees. River Rescue Brigade ( Briged Penyelamat Sungai ) ( BPS ) In 2011, our River Rescue Brigade ( BPS ) held various events involving educational and entertainment activities, such as dramatic and choral performances, poetry readings, colouring contests, IQ tests, BPS presentations, jungle trekking, cycling, gotong-royong to clean the river, and water related talks and exhibitions to educate the public and students from primary, secondary and tertiary levels on water in general and on the importance of conserving and protecting our water resources, in particular. Misi Bantuan Bekalan Air Bersih to the flood victims in Malacca 167

170 Engagement With Our Community World Water Day 2011 World Water Day 2011 These events were: 1. World Water Day 2011 on 22 March 2011 to 26 March 2011 at SYABAS Headquarters and District Offices. 1,500 students from the following schools, polytechnic and universities participated in the event:- 1. SMK Taman Dato Harun, Jalan Klang Lama 2. SK USJ 2, Subang Jaya 3. SMK Jeram, Kuala Selangor 4. Politeknik Shah Alam 5. SK Bangsar, Kuala Lumpur 6. SJK (T) Jalan Bangsar, Kuala Lumpur 7. SMK Gombak Setia, Gombak 8. SMK Aminuddin Baki, Kuala Lumpur 9. SM Teknik, Kuala Selangor 10. SK Gombak Utara, Gombak 11. SMK Seri Puteri, Cyberjaya 12. SMK Bandar Tun Razak, Kuala Lumpur 13. SK Pendidikan Khas, Shah Alam 14. SJK (C) Onn Pong 2, Ampang 15. SK Taman Tun Dr. Ismail 1, Kuala Lumpur 16. SMK Raja Lumu, Klang 17. SK Seksyen 13, Shah Alam 18. Politeknik Shah Alam 19. UiTM, Shah Alam 20. UiTM, Melaka 21. Universiti Malaya 22. Universiti KL Note: SJK (T) denotes Sekolah Jenis Kebangsaan Tamil SJK (C) denotes Sekolah Jenis Kebangsaan Cina SK denotes Sekolah Kebangsaan SMK denotes Sekolah Menengah Kebangsaan SM denotes Sekolah Menengah UiTM denotes Universiti Teknologi MARA 2. World Water Day 2011 celebration on 2 April 2011 launched by the Selangor State Government and Lembaga Urus Air Selangor at Dataran Kemerdekaan, Shah Alam. BPS facilitated activities such as quiz, exhibitions and membership drive at the event. 3. Launching of the 25 th BPS Club Programme with the Deputy Prime Minister s wife, YAB Puan Sri Noorainee Abdul Rahman on 24 June 2011 at Sungai ( Sg ) Langat WTP with the theme 1 Sungai 1 Tanggungjawab 1 Kita. 300 students from the following schools participated in the event:- 1. SK Cheras Jaya 2. SJK (C) Sungai Chua 3. SJK (T) Ampang 4. SMK Tinggi Kajang 5. SMK Abdul Jalil 6. SMJK (C) Yu Hua 7. SK Lembah Jaya, Ampang Note: SJK (T) denotes Sekolah Jenis Kebangsaan Tamil SJK (C) denotes Sekolah Jenis Kebangsaan Cina SK denotes Sekolah Kebangsaan SMK denotes Sekolah Menengah Kebangsaan SMJK (C) denotes Sekolah Menengah Jenis Kebangsaan Cina 168

171 Engagement With Our Community 4. The 2011 BPS Membership Recruitment Drive. In an effort to increase students knowledge of conservation and protection of the environment especially river water which is a source of drinking water, BPS conducted the 2011 BPS Membership Recruitment Drive by setting up a BPS Club as a co-curriculum club at the following schools:- 1. SK Batu Belah, Klang on 14 May 2011 (first school to set up a BPS Club) 2. SJK (C) Sungai Chua, Kajang on 4 October SK Cheras Jaya on 7 October SK Bangsar on 12 October SMK Tinggi Kajang on 13 October SK St Mary on 2 November SK Gombak Utara on 3 November SMK Darul Ehsan on 9 November SK Seri Tiram, Kuala Selangor on 17 November SK Kajang on 18 November Note: SJK (C) denotes Sekolah Jenis Kebangsaan Cina SK denotes Sekolah Kebangsaan SMK denotes Sekolah Menengah Kebangsaan BPS Club s activities are conducted in these schools every week for two hours per week. The activities include drawing and colouring competitions and essay writing BPS Exploration Programme. The 2011 BPS Exploration Programme was officially launched by the Deputy Prime Minister s wife, YAB Puan Sri Noorainee Abdul Rahman during the 25 th BPS Club Programme held at Sg Langat WTP on 24 June The second 2011 BPS Exploration Programme was held on 30 July 2011 together with 36 BPS Club members and four teachers from Sekolah Kebangsaan Batu Belah, Klang. The BPS Exploration Programme exposed the students to the in-depth processes for water treatment conducted by PNSB. Students interacted with organisers via questions and answers on the water treatment processes during the programme. 6. Educational Outreach Programme ( Program Pelestarian Pendidikan ) ( 3P ). We organised monthly 3P programmes, conducted in collaboration with the BPS Club, to help educating children in primary, secondary and tertiary schools about the importance of preserving rivers and the environment. A membership drive for the BPS Club was also conducted during the 3P programmes. Many schools within the area of our operations have benefited from this programme. The participating schools for the 3P programmes in 2011 were as follows:- 1. SK Selayang Baru (1), Gombak on 29 June SK Bukit Bangkong (A), Sepang on 30 June SJK (T) Ladang Glenmarie, Shah Alam on 18 July SK Batu Belah, Klang on 26 July SK Kajang, Hulu Langat on 28 July SK Olak Lempit, Kuala Langat on 13 October Note: SJK (T) denotes Sekolah Jenis Kebangsaan Tamil SK denotes Sekolah Kebangsaan We organised monthly 3P programmes, conducted in collaboration with the BPS Club, to help educating children in primary, secondary and tertiary schools about the importance of preserving rivers and the environment. 169

172 Engagement With Our Community Public Awareness Programme at Tesco Shah Alam 7. Public Awareness Programme. In 2011, BPS also facilitated activities such as drawing and colouring competitions, exhibitions and membership drive for the public at the following venue:- 1. Tesco, Puchong on 30 April Tesco, Shah Alam on 29 October Pangsapuri Kenari Court, Pandan Indah on 12 November Pangsapuri Laksamana, Batu Caves on 10 December Pangsapuri Bustan Shamelin, Cheras on 17 December Exhibitions. In conjunction with the official visit by the Deputy Prime Minister, YAB Tan Sri Muhyiddin Hj Mohd Yassin, to Sekolah Kebangsaan Sijangkang, Kuala Langat on 29 March 2011, BPS took part in an exhibition designed to raise awareness of the need to preserve and conserve our water resources. In conjunction with the Karnival Sayangi Selangor organised by Barisan Nasional Selangor at I-City Shah Alam, from 28 December 2011 to 31 December 2011 to promote the spirit of 1Malaysia amongst the people of Selangor, BPS also took part in an exhibition to raise awareness of issues relating to water resources and conducted a BPS membership drive. 9. Program Jalinan Mesra BPS For Program Jalinan Mesra BPS 2011, BPS held Majlis Berbuka Puasa during the month of Ramadhan with officers from the Ministry of Education ( MOE ) at Putrajaya International on 5 August 2011, with officers from the Selangor Education Department at Shah Alam Convention Centre on 12 August 2011 and with officers from the Wilayah Persekutuan Education Department at Quality Hotel, Kuala Lumpur on 18 August The Programme aims to strengthen the relationship between the Company and MOE and the Education Departments, and to show our appreciation and to thank them for approving our BPS programmes. 10. Visits to Dams, PNSB s WTPs, SYABAS Auditorium, Operation Command Centre and PUSPEL. School Venue Date Kolej Empangan 16 March Komuniti Klang Gates, 2011 Temerloh Hulu Klang Sekolah SSP2 WTP 30 July Kebangsaan & Batang 2011 Batu Belah, Berjuntai Klang Intake Faculty of SSP2 29 Architecture, WTP November Universiti 2011 Putra Malaysia Chin Hock SSP2 8 Methodist WTP December Sunday 2011 School, Perak 170

173 Engagement With Our Community As at December 2011, there were 4,630 BPS club members, comprising students from 218 primary/secondary/tertiary schools in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, an increase of 426 students on the 2010 figure. TABUNG BUDI Tabung Budi was founded on 24 August 2010 by SYABAS and PNSB s staff. The Program Bantuan Bekalan Air Tabung Budi was launched by PEKA at the Headquarters of SYABAS, Jalan Pantai Bahru, Kuala Lumpur on 22 October This programme as inspired by YBhg Tan Sri Rozali Ismail, our Executive Chairman, focuses on helping the poor, homeless, single parents, disabled and those in need. Contributions received from PEKA members, employees of SYABAS/ PNSB, individuals and corporate bodies are used to help these people. As at end December 2011, a total of RM172, had been used to finance the extension and installation of water pipes, repair leaks and pay outstanding water bills. As of December 2011, a total of 187 families had benefited from the Program Bantuan Bekalan Air Tabung Budi. The Tabung Budi team has introduced Majlis Turun Padang Tabung Budi whereby a presentation ceremony is held at recipients residence. The event is usually headed by the PEKA President together with SYABAS management representatives accompanied by contributors. During this event, which happens on a weekly basis, water meters are re-installed at the recipients residences. In 2011, the Tabung Budi team held several auspicious events namely, Majlis Pemimpin Bersama Rakyat 1Malaysia held on 29 March 2011 at Sijangkang, Selangor whereby the Deputy Prime Minister, YAB Tan Sri Muhyiddin Yassin, delivered Tabung Budi water supplies to eight recipients. Other events included Program Khas Ihsan Ramadhan Tabung Budi which was held on 26 August 2011 at the Fishermen s Village Teluk Gong, Klang and Program Kayuhan Amal Tabung Budi Satu SYABAS on 24 September 2011 at Kuala Selangor in conjunction with World Heart Day and Kuala Selangor Independence Month. OTHER CORPORATE RESPONSIBILITY EVENTS 1. Sponsorship and Donations 2011 We receive hundreds of requests for contributions and initiatives every year. While we review and respond to all external requests for sponsorship, the emphasis of our sponsorship is on creating or pursuing activities that provide the most effective contribution to, and are best aligned with, our business objectives. We follow a set of guidelines to help us determine where to best place our resources: Events that enhance relations between us and the government Events that strengthen our brand and reputation Events that promote a greater awareness, understanding and appreciation of our services Events that augment educational standards, especially to the benefit of the underprivileged Events or activities that provide assistance to individuals to start up small businesses that are aligned with the company s business strategy Events or activities that enable us to connect to consumer groups Tabung Budi Programmes extended to the needy 171

174 Engagement With Our Community 172 Biro Hawa s visit to Pusat Perlindungan Wanita Baitul Ehsan Breast Cancer Awareness Talk at Tropicana Medical Centre Events or activities that leverage opportunities associated with the sponsorship Events or activities by individuals or organisations that are able to demonstrate effective community support and involvement Events or activities that offer value propositions across all segments of society Events or activities that are able to account effectively for how the investment is to be spent and the outcome of the event /activities The communities that benefited from our 2011 sponsorship and donation drive included:- 1. Federation of Malaysian Consumers Associations (FOMCA) on 18 January Persatuan Bekas Polis Malaysia on 11 February Malaysian Environmental NGO (MENGO) on 5 April Majlis Belia Hindu Malaysia on 13 April Pejabat Pelajaran Bangsar Dan Pudu on 7 June Sekolah Kebangsaan Kajang on 7 June Kawasan Rukun Tetangga, Taman Pantai Sepang Putra on 8 June Pengakap Malaysia Daerah Hulu Selangor on 14 June Menara Kuala Lumpur on 6 July Pusat Latihan Polis Kuala Lumpur on 6 July Breast Cancer Welfare Association Malaysia on 21 July Majlis Sukan India Selangor (SISC) on 4 August Pusat Khidmat Ahli Parlimen Hulu Selangor on 19 October Social Responsibilities for 2011 (1) On 22 March 2011, in conjunction with the World Water Day 2011 celebration, we organised a programme simultaneously at SYABAS Headquarters, at the District Offices in Selangor and the Federal Territories of Kuala Lumpur and at PNSB s WTPs. (2) As of December 2011, a total of 187 families had benefited from the Program Bantuan Bekalan Air Tabung Budi. Auspicious events were organised by the Tabung Budi Team as elaborated above under the headline Tabung Budi. (3) We organised Gotong-Royong activities with the following parties in 2011:- (a) On 22 January 2011, with Kementerian Wilayah Persekutuan dan Kesejahteraan Bandar at Bukit Bintang, Kuala Lumpur. (b) On 22 January 2011, with MBPJ and Residents of Seksyen 5, Petaling Jaya in conjunction with Program Mesra Alam. (c) On 29 January 2011, with orphans at Rumah Anak-anak Yatim Pure Life Society, Puchong. (d) On 12 March 2011, with JKKP at Meru, Klang. (e) On 13 March 2011, with KRT Jalan Reko at Jalan Reko, Kajang. (f) On 13 March 2011, with residents of Apartment Teratai, Hulu Selangor. (g) On 19 March 2011, with residents of Seksyen 6, Wangsa Maju. (h) On 8 May 2011, with residents of Kampung Melayu Ampang, Zon 9. (i) On 4 October 2011, with Businessman Association at Rawang. (j) On 12 November 2011, with Bukit Bintang Central Committee.

175 Engagement With Our Community (4) On 2 February 2011, we launched a Misi Bantuan Bekalan Air Bersih at SYABAS Headquarters and together with Rejimen Pakar Pengendalian Air Ke-60 RAJD, we reached out by supplying clean potable water to the flood victims in Johor. (5) On 8 February 2011, we organised a presentation of a donation to Palm Grove s Resident Association, Klang. (6) On 8 February 2011, we launched a second Misi Bantuan Bekalan Air Bersih at SYABAS Operation and Maintenance Office, Sg Besi, Kuala Lumpur to supply clean potable water to the flood victims in Johor. (7) We organised Gotong-Royong activities in conjunction with our Program Tanggungjawab Social Korporat Wilayah Selangor as follows:- (a) At Surau As-Sakinah, Kuala Kubu Bharu on 12 February (b) At Tanah Perkuburan Islam Bukit Lagong, Selayang on 28 February (c) At Surau Imam Jalal, Kampung Sungai Gulang-gulang on 9 April (d) At Rumah Amal Chesire, Selayang on 23 April (e) At Rumah PPRT Batu 11, Kuala Langat on 30 April (f) At Tanah Perkuburan Kampung Sg Apong and Kampung Teluk Rhu on 20 May (g) At the residence of Tabung Budi s candidate, Encik Kamarulzaman Bin Ahmad on 31 May (8) We participated in the blood donation programmes during the year. (9) On 26 February 2011, we participated in the launching ceremony of 1Malaysia Youth Entrepreneurs Club held at the Memorial Tunku Abdul Rahman. (10) On 1 March 2011, we launched a Misi Bantuan Bekalan Air Bersih at SYABAS Operation and Maintenance Office, Sg Besi, Kuala Lumpur to supply clean potable water to the flood victims in Malacca. (11) On 23 April 2011, in conjunction with Earth Day 2011, we held senamrobik activities at SYABAS District Offices. (12) On 23 April 2011, we organised a Program Mengecat at Rumah Pam Bukit Jugra with the residents of Kampung Permatang Pasir, Bukit Jugra. (13) On 28 May 2011, PEKA organised a walkathon, Walk For Your Heart Peka 2011 at Wisma Rozali, Shah Alam. (14) On 31 July 2011, we launched a Misi Bantuan Bekalan Air Bersih at SYABAS Headquarters to supply clean potable water to the flood victims in Port Dickson. (15) In conjunction with the month of Ramadhan, on 5 August 2011, PEKA organised a charity programme for Rumah Amal Anak Yatim Yayasan Pembangunan Insan Nasional, Kuala Langat. (16) On 9 August 2011, we participated in a Gotong-Royong in conjunction with Program Berbuka Puasa with DYMM Sultan Selangor at Masjid DiRaja Alauddin Kampung Bandar. Educational Outreach Programme at Sekolah Jenis Kebangsaan (Tamil) Ladang Glenmarie, Shah Alam Water Facts A small drip of water can add up to 25 gallons per day 173

176 Engagement With Our Community Program Kayuhan Amal Satu SYABAS Tabung Budi (17) In conjunction with the month of Ramadhan:- (a) On 16 August 2011 and 23 August 2011, we organised Program Jejak Fakir at 8 and 7 locations in Petaling and Gombak Districts, respectively. (b) We organised Program Memasak Bubur Lambuk Dan Penyerahan Bubur Lambuk and donations contributions. (c) On 23 August 2011 and 25 August 2011, we organised Program Sumbangan Ihya Ramadhan at Wilayah Kuala Langat and Wilayah Kuala Selangor, respectively giving donations to the poor. (18) On 24 September 2011, we organised Program Kayuhan Amal Satu SYABAS Tabung Budi in conjunction with Bulan Kemerdekaan & Hari Jantung Sedunia (19) On 8 October 2011, we participated in Program Nurani Rakyat Sayangi Selangor Bersama the Prime Minister YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak. (20) On 29 November 2011, we participated in the Majlis Pelancaran dan Persiapan Misi Bantuan Banjir organised by Rejimen Pakar Pengendalian Air ke-60 RAJD (AW). (21) On 3 December 2011, together with Majlis Perbandaran Kajang, we contributed our workforce to clean up Kajang Town which was affected by a flash flood. (22) On 12 December 2011, we participated in the Programme, Green EXPO 2011 which was held in Tunku Abdul Rahman College, Setapak. (23) SYABAS hosted visits by various agencies, both local and overseas, at SYABAS Headquarters and at PUSPEL Contact Centre, as detailed in the Delivering Service Excellence section on page 114 of this Annual Report. (24) PNSB also hosted visits by various agencies, both local and overseas at PNSB s Headquarters, dams and WTPs, as follows:- Date Visitors 5 April Persatuan 2011 Pekilang-pekilang Malaysia 25 April TYT Mohamed 2011 Saheb Al-Daragi, Menteri Perumahan dan Pembinaan Iraq 18 May 2011 Persatuan Suri Dan Anggota Wanita Perkhidmatan Awam (PUSPANITA) 19 May 2011 JKKK Mukim Bagan Nakhoda Oman 11 July 2011 Top Management of Kumpulan Wang Simpanan Pekerja (KWSP) 21 Delegation from the November 2 nd IWA Development 2011 Congress And Exhibition 2011 (25) We celebrated the major festivals in Malaysia with the less fortunate by giving them donations. 174

177 Corporate Events 12 JAN FEB MAY 2011 SYABAS Ramah Mesra Programme with the President of Federation of Malaysian Consumers Associations (FOMCA), YBhg Datuk Marimuthu Nadason 24 JAN 2011 Consumer Awareness Programme on Water Quality Kuala Lumpur 2 FEB 2 FEB 2011 Launched a mission of supplying clean water to flood victims in Johor together with Rejimen Pakar Pengendalian Air Ke-60 RAJD (AW) 22 FEB 22 FEB 2011 Signing Ceremony of the Memorandum of Understanding (MOU) with NIOSH for Safety Card Training Modules SYABAS-NIOSH Technical Visit by Sri Lanka Water Board MAR 2011 PNSB s & SYABAS Exhibition in conjunction with the Opening Ceremony of the 2nd Asia Pacific Regional Water Conference and Exhibition (APRWC 2011) 22 MAR 2011 Launching Ceremony of PNSB s & SYABAS World Water Day 2011 celebration 29 MAR 2011 Tabung Budi event on Majlis Pepimpin Bersama Rakyat 1Malaysia at Sijangkang officiated by YAB Tan Sri Muhyiddin Hj Mohd Yassin, Timbalan Perdana Menteri Malaysia 7 APR 2011 Technical Visit by Public Utility Board, Singapore 23 APR 2011 Perdana SYABAS aerobics session in conjunction with Hari Bumi Bumi, 1 SYABAS, 1 Semangat 25 APR 2011 Official Visit by TYT Mohamed Saheb Al-Daragi, Housing and Construction Minister of Iraq Providing assistance to flood victims in Sg Serai, Hulu Langat 18 MAY 18 MAY 2011 Technical Visit by Persatuan Suri dan Anggota Wanita Perkhidmatan Awam Malaysia (PUSPANITA) 1-3 JUNE 2011 POG s participation at Oil and Gas Asia Pacific Conference 2011 ( OGA 2011 ) 24 JUNE 24 JUNE 2011 Launching of 25 th BPS Club Programme 27 JUNE 2011 PNHB s 14 th Annual General Meeting held at Concorde Hotel Shah Alam 28 JUNE 28 JUNE 2011 PNHB Group s Executive Chairman, YBhg Tan Sri Rozali Ismail was awarded the Technology CEO of the Year Global Award 4 JUL 4 JUL 2011 PNHB Group s Executive Chairman, YBhg Tan Sri Rozali Ismail received the title Brigedier Jeneral (Kehormat) Pakar Pengendalian Air-Ke-60 RAJD (AW) 11 JUL 2011 Technical Visit by Kumpulan Wang Simpanan Pekerja (KWSP) 27 JUNE 175

178 Corporate Events 28 JUL OCT JUL PNHB Group s Executive Chairman, YBhg Tan Sri Rozali Ismail was awarded the Masterclass Leader Award at the International Standard Quality ( ISQ ) Award 2011 Programme Nurani Rakyat Sayangi Selangor together with YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak, the Prime Minister 29 NOV 14 JUL 2011 PNHB s visit to the GHKL s Radiotherapy and Oncology Wards 19 JUL 2011 Technical Visit by Lembaga Zakat Selangor to SYABAS 20 JUL 2011 PNHB Group s Executive Chairman, YBhg Tan Sri Rozali Ismail was awarded the prestigious Entrepreneur of the Year 2011 Award at the Asia Pacific Entrepreneurship Awards AUG 2011 Programme Sebening Kasih Aidilfitri together with the orphanage from Yatim Tengku Ampuan Rahimah (RACTAR), Klang 14 SEP 2011 PNHB was awarded the Industry Excellence Award Water Sector at the launching ceremony of 5 th Edition Malaysia SEP SEP 13 OCT 2011 PNSB was awarded the 11th Malaysia HR Awards 2011 Employer of Choice Silver Award 20 OCT OCT Tabung Budi programme for the needy in Kuala Selangor 29 NOV 2011 Majlis Pelancaran dan Persiapan Misi Bantuan Banjir organised by Rejimen Pakar Pengendalian Air ke-60 RAJD (AW) 29 NOV 2011 Study Visit by Faculty of Architecture, Universiti Putra Malaysia DEC 2011 SYABAS exhibition in conjunction with Green EXPO 2011 at Kolej Tunku Abdul Rahman DEC 2011 SYABAS exhibition in conjunction with Karnival Sayangi Selangor 22 JUL JUL PNSB received five gold awards and SYABAS received ten gold awards at MSOSH Award Ceremony held at One World Hotel Programme Kayuhan Amal Satu SYABAS Tabung Budi in conjunction with Malaysia Independent month & World Heart Day OCT 2011 PNHB received a Commendation for Integrated Reporting at the ACCA Malaysia Sustainability Reporting Awards (MaSRA) NOV 2011 Technical Visit by P ohang Municipal Assembly, Korea 21 NOV 2011 Technical Visit by the delegation from 2nd IWA Development Congress & Exhibition 20 OCT 2 NOV

179 Accountability 178 Corporate Disclosure Policy 179 Statement On Corporate Governance 193 Statement On Internal Control 195 Audit Committee Report 201 Risk Management Policy & Report 204 Investor Relations Policy & Report 206 Quality Policy & Report 207 Health, Safety And Environmental Policy 208 Syabas Corporate Responsibility Policy 209 Statement Of Directors Responsibility For Preparation Of Financial Statements

180 Corporate Disclosure Policy As a responsible corporate citizen, Puncak Niaga is totally committed to upholding the highest standards of transparency, accountability and integrity in the disclosure of all material information on the Company to the investing public in an accurate, clear, complete and timely manner in accordance with the corporate disclosure requirements as set out in the Main Market Listing Requirements of Bursa Malaysia Securities Berhad ( Bursa Securities ). The primary objectives of Puncak Niaga s Corporate Disclosure Policy are:- 1. To promote and maintain market integrity and investor confidence. 2. To provide equal access to the Company s material information in an accurate, clear, timely and complete manner and to avoid selective disclosure to the investing public. 3. To exercise due diligence such that information disseminated to the investing public will be as far as possible accurate, clear, timely and complete. 4. To put in place an efficient management of information procedure that promotes accountability for the dissemination of material information to the investing public. 5. To build good investor relations with the investing public based on the principles of trust, honesty, openness, transparency and sound understanding of the Company. To achieve its objectives, the Company will endeavour to undertake the following:- 1. ESTABLISH POLICIES AND PROCEDURES Ensure written policies and procedures of the Company ( Puncak Niaga s Corporate Disclosure Policy and Procedure ) that encompass the Corporate Disclosure Policy and other requirements relating to corporate disclosure as set out in the Main Market Listing Requirements of Bursa Securities. Appoint a senior officer of the Company to oversee and coordinate disclosures to ensure the Company complies with the Main Market Listing Requirements of Bursa Securities. Ensure that only designated persons are the Company s spokespersons. Ensure due compliance with Puncak Niaga s Corporate Disclosure Policy And Procedure. 2. EXERCISE DUE DILIGENCE AND PREPARATION Ensure that the persons responsible for disseminating material information to the investing public, exercise due diligence in ensuring that information to be released is accurate, clear, timely and complete. Ensure that due care is observed when briefing and responding to analysts, institutional investors, the media and the investing public. 3. USE OF INFORMATION TECHNOLOGY Take advantage of current information technology to disseminate information to the investing public. Our commitment to the above Policy is driven by the Board of Directors of the PNHB Group and implemented by the Management. 178

181 Statement On Corporate Governance COMPLIANCE STATEMENT The Board of Puncak Niaga is pleased to state that Puncak Niaga is in compliance with the Best Practices in Corporate Governance as set out in Part 2 of the Malaysian Code on Corporate Governance (Revised 2007) ( Code ) and has subscribed and remain firmly committed to the principles of good corporate governance as set out in Part 1 of the Code to strive for highest standards of corporate governance within the Group. The Group believes that the principles of good corporate governance are integral to Puncak Niaga s growth and ability to promote the confidence of its stakeholders and enhancing long-term shareholders value through improving corporate performance and accountability of Puncak Niaga whilst taking into account the interest of all stakeholders. The Board is therefore committed to ensure that the Principles and Best Practices of Corporate Governance are applied throughout Puncak Niaga Group in the best interests of all stakeholders. Since 2003, the Board has adopted a Board Charter, which provides guidance on how business is to be conducted in line with international best practices and standards of good corporate governance. In 2004, the Board has also adopted a Corporate Disclosure Policy and Procedure, which was formulated in line with the Guide On Best Practices In Corporate Disclosure issued by the Task Force on Corporate Disclosure Best Practices established by Bursa Malaysia Securities Berhad ( Bursa Securities ). From time to time, the Group continues to monitor, refine and revamp its financial objectives, goals, policies and procedures, controls and risk management framework to meet the evolving corporate environment. BOARD OF DIRECTORS (a) THE BOARD The Group is helmed by an effective and experienced Board, comprising individuals of caliber and credibility with necessary skills and experience from a diverse blend of professional backgrounds. With the adoption of the Board Charter, the Board members, whether acting in their individual capacities or as a whole, share the common objective of ensuring that the Vision and Mission of the Company as set out in this Annual Report, are achieved and the Group meets its responsibilities to its stakeholders. Each Board member is fully aware of the fiduciary duties and responsibilities and the various legislations and regulations affecting his conduct as Director of the Company, and as such, takes full responsibility for the performance of the Company and of the Group. The role of the Executive Chairman is separate from that of the Managing Director. The Board Charter sets out the specific responsibilities to be discharged by the Board members collectively and the individual roles expected from the Executive Chairman, Managing Director, Executive Directors and Non-Executive Directors. YBhg Tan Sri Dato Seri Dr Ting Chew Peh is the Company s Senior Independent Non-Executive Director, to whom shareholders concerns may be conveyed. His profile is set out on page 059 of this Annual Report. The Company s governance framework enables the Board to provide strategic guidance and effective oversight of management, clarifies the role and responsibilities of the Board and Management and ensure a balance of authority. The Board of Puncak Niaga is therefore pleased to report on how the Group has subscribed and applied the principles as set out in Part 1 of the Code and the Best Practices in Corporate Governance as set out in Part 2 of the Code and the extent to which it has complied with the Best Practices during the year

182 Statement On Corporate Governance (b) BOARD COMPOSITION For compliances with Paragraph of the Main Market Listing Requirements of Bursa Securities and the Code, the Company, through the Nomination Committee of the Company, annually reviewed the required mix of skills, experience and competencies and other qualities of the Board of the Company. The Board of Puncak Niaga comprises ten (10) Members, of whom four (4) are Executive Directors and six (6) are Non-Executive Directors. The current composition of the Board of Puncak Niaga is in compliance with Paragraph of the Main Market Listing Requirements of Bursa Securities with one-third of the Board being independent and of which the Company feels is a balanced Board and appropriate to constitute an effective Board. The three (3) Independent Non-Executive Directors of the Company fulfil the criteria of independence as set out in the definition of Independent Director under Paragraph 1.01 (Definitions) of the Main Market Listing Requirements of Bursa Securities. The Independent Non-Executive Directors are persons of caliber and credibility and exercise independent and sound judgement and act in the best interests of the Company and its shareholders, in particular the minority shareholders since they do not engage in the day-to-day management of the Company and do not participate in any business dealings and are not involved in any other relationship with the Company to ensure that they discharge their duties and responsibilities effectively, void of conflict of interests situations. The Independent Non-Executive Directors provide the relevant checks and balances and ensuring that high standards of corporate governance are sustained. The composition of the Board brings to the Group a diverse wealth of skills, knowledge as well as a balanced mix of experience and expertise to effectively discharge the Board s responsibilities for competent stewardship of the Group. Together, the Board spearheads the Group s growth and future direction. The profile of the Board Members are set out on pages 052 to 062 of this Annual Report. None of the Directors has any convictions for any offences within the past ten (10) years (other than traffic offences, if any) or has any conflict of interests with the Company or has any family relationship with any Director and/or major shareholder of the Company. (c) BOARD MEETINGS The Board met five (5) times in 2011, all at the Board Room on 12th Floor, Wisma Rozali, No. 4, Persiaran Sukan, Seksyen 13, Shah Alam, Selangor Darul Ehsan, details of which are as follows:- Day Date Time Thursday 24 February noon Tuesday 26 April p.m. Tuesday 31 May p.m. Thursday 25 August a.m. Wednesday 23 November p.m. The details of the respective Director s attendance at the above Board Meetings are as follows:- No. of Name Meetings of Director Designation attended % Tan Sri Executive 5 out of Rozali Ismail Chairman Dato Hashim Managing 5 out of Mahfar Director Dato Ruslan Non-Independent 5 out of Hassan Non-Executive Director Dato Ir Non-Independent 5 out of Lee Miang Koi Non-Executive Director Tan Sri Dato Independent 5 out of Hari Narayanan Non-Executive Govindasamy Director Tan Sri Dato Independent 5 out of Seri Dr Non-Executive Ting Chew Peh Director 180

183 Statement On Corporate Governance No. of Name Meetings of Director Designation attended % Dato Syed Chief Operating 5 out of Danial Syed Officer Ariffin Tengku Non-Independent 5 out of Dato Rahimah Non-Executive Almarhum Director Sultan Mahmud Tan Sri Dato Independent 5 out of Ahmad Fuzi Non-Executive Haji Abdul Razak Director Ng Wah Tar Executive Director 5 out of Corporate Finance Board meetings are scheduled to be held regularly, at least five times in a financial year with sufficient notice for all Board Meetings of issues to be discussed. The dates for Board Meetings for the ensuing financial year are scheduled well in advance and the Board has formal schedule of matters specifically reserved for the Board s discussion and/or approval. All issues discussed and all decisions made during the Board Meetings will be properly recorded by the Company Secretaries and reviewed by the Board for completeness and accuracy. Additional Board Meetings may be called as and when significant issues arise and which require the Board s decision. In between Board Meetings, approvals on matters requiring the sanction of the Board are sought by way of circular resolutions enclosing all relevant information to enable the Board to make informed decisions. All circular resolutions approved by the Board will be tabled for notation and confirmation at the next Board Meeting. (d) DIRECTORS CODE OF ETHICS The Directors continue to observe a code of ethics based on the code of conduct expected of Directors of companies as set out in the Company Directors Code of Ethics established by the Companies Commission of Malaysia. (e) SUPPLY OF INFORMATION AND ACCESS TO ADVICE The Directors are familiar and aware of their duties and responsibilities as well as the implementation of good corporate governance and compliance practices in the Group. Each Board member is supplied with full, adequate, unrestricted and quality information on a timely basis to enable them to effectively discharge their duties and responsibilities. Except under exceptional circumstances, Board members are given at least seven days notice before any Board Meeting is held and the comprehensive Board papers are circulated to the Board members at least two (2) working days prior to the date of the Meeting to facilitate the Directors to peruse the Board papers and to review the issues to be deliberated at the Board Meeting well ahead of the meeting date. Where necessary, the Company s personnel will be called upon by the Board during the Board Meetings to present and to clarify any Board papers presented. All Board members are expected to participate actively in Board deliberations and to bring the benefit of their particular knowledge, skills and abilities to the Board. Where a potential conflict with his duties or of interests as Director arises, it is mandatory for the Director concerned to declare the fact and nature of his interests and extent of the conflict at a Board Meeting and abstain from the deliberation and decision-making process. In the event the proposal requires shareholders approval, the interested Board members will abstain from voting on the resolution at the General Meeting and will ensure that persons connected to them also abstain from voting on the proposal. The Company Secretaries organise and attend all Board Meetings and ensure that all issues discussed with the conclusions are minuted accurately in the minutes of each meeting and that all records are kept properly at the registered office of the Company. 181

184 Statement On Corporate Governance The Board is regularly updated and kept informed by the Company Secretaries and the Management of the requirements such as restriction in dealing with the securities of the Company and updates as issued by the various regulatory authorities including the latest developments in the legislations and regulatory framework affecting the Group. The Board has unrestricted and constant access to and interaction with the Senior Management of the Company. Each Board member also has full access to the advice and services of the full time Company Secretaries. Where necessary, the Directors may, whether collectively as a Board or in their individual capacities, seek external and independent professional advice from experts on any matter in furtherance of their duties as they may deem necessary and appropriate at the Company s expense. (f) COMPANY SECRETARIES The Company Secretaries ensure that Board procedures are both followed and reviewed regularly and have the responsibilities in law to ensure that each Board member is made aware of and provided with guidance as to their duties, responsibilities and powers. They are also responsible for ensuring the Group s compliance with the relevant statutory and regulatory requirements. (g) APPOINTMENT OF DIRECTORS All Board appointments and removals (if any) thereof are approved by the Board upon the recommendation of the Nomination Committee. The Board, through the Nomination Committee, has established a formal and transparent procedure in relation to the assessment of candidates for Board appointments as well as for assessing the effectiveness of the Board as a whole, the Committees of the Board and the contributions of each individual Director, including the Independent Non-Executive Directors and the Managing Director. The Board, through the Nomination Committee, also reviews the required mix of skills, experience and other qualities of the Directors annually to ensure that the Board continues to function effectively and efficiently. During the financial year under review, there were no changes to the Board composition. (h) EVALUATION OF BOARD EFFECTIVENESS As in the previous years, the Board has, with the assistance of the Company Secretaries, conducted an annual peer evaluation of the Board s effectiveness in the following key areas:- (i) Compliance; (ii) Board Meetings; (iii) Board Functions; (iv) Board Structure; (v) Board Committees; (vi) Board Operations; (vii) Board Chairman s Roles and Responsibilities; (viii) Financial and Operational Reporting; (ix) Planning and Objectives; (x) Risk Assessment; (xi) New Business Opportunities and Projects; (xii) Human Resources; and (xiii) Directors Observations and Additional Comments. The 2011 performance evaluation of the Board has been structured to ensure a balanced and objective review by the Directors for the above key areas. Following the evaluation, the Board concluded that the Board as a whole and its committees had performed well, were effective and had all the necessary skills, experience and qualities to lead the Company. (i) BOARD COMMITTEES The Board has delegated specific responsibilities to the Board Committees whose functions and authorities are spelt out in their respective terms of reference. The Board Committees will observe the same rules of conduct and procedures as the Board, unless otherwise determined by the Board. A summary of the various Board Committees at PNHB level and their composition are as follows:- 182

185 Statement On Corporate Governance Compliance, Internal Control and Risk Policy Audit Remuneration Nomination Committee Name of Director Committee Committee Committee (CICR) Tan Sri Rozali Ismail Executive Chairman Dato Hashim Mahfar Managing Director Head Dato Ruslan Hassan Non-Independent Non-Executive Director Dato Ir Lee Miang Koi Non-Independent Non-Executive Director Dato Syed Danial Syed Ariffin Chief Operating Officer Tan Sri Dato Hari Member Member Member Narayanan Govindasamy Independent Non-Executive Director Tan Sri Dato Seri Dr Ting Chew Peh Chairman Member Member Chairman Independent Non-Executive Director Tengku Dato Rahimah Almarhum Sultan Mahmud Non-Independent Non-Executive Director Member Tan Sri Dato Ahmad Member Chairman Chairman Fuzi Haji Abdul Razak Independent Non-Executive Director Mr Ng Wah Tar Member Member Executive Director, Corporate Finance Note : (1) The Audit Committee comprises non-executive directors, a majority of whom are independent directors (compliance with Paragraph of the Main Market Listing Requirements of Bursa Securities) (2) The Remuneration Committee comprises wholly or mainly of non-executive directors (as recommended in the Code) (3) The Nomination Committee comprises wholly of non-executive directors, a majority of whom are independent (as recommended in the Code) 183

186 Statement On Corporate Governance The Board Committees exercise transparency and full disclosure in their proceedings. Where applicable, issues are reported to the Board with the appropriate recommendations by the Board Committees. In order to expedite the Board s decision-making process at the operating companies level, an Executive Committee ( EXCO ) was established at Puncak Niaga (M) Sdn Bhd ( PNSB ), Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) and Puncak Oil & Gas Sdn Bhd ( POG ). PNSB s and POG s EXCO comprise of Executive Directors and Senior Management whereas SYABAS EXCO comprise of only Executive Directors. Both PNSB s and SYABAS EXCO Meetings are scheduled to be held on weekly basis to deliberate on matters requiring the Board s mandate in between the Board Meetings. POG s EXCO Meetings are scheduled to be held every fortnight. The Board of Directors of Sino Water Pte Ltd ( Sino Water ), the Company s 98.65% owned Singapore subsidiary company meets in Malaysia to deliberate on operational matters. The Board has also established the Limits of Authority ( LOA ) for the Group s operational management matters with the relevant level of authority accorded to the Management. The LOA is continuously reviewed to ensure adequacy, efficiency and integrity in the Group s internal control systems and management information systems. The Board provides the leadership necessary to enable the Group s business objectives to be met, whilst ensuring that the Company s obligations to its stakeholders are met. (j) RE-ELECTION OF DIRECTORS Articles 98 and 99 of the Company s Articles of Association ( Articles ) provide that one third of the Directors shall retire from office by rotation at each Annual General Meeting and all Directors shall retire from office at least once every three (3) years but, shall be eligible and may offer themselves for re-election. Upon the recommendation of the Nomination Committee, the following Directors shall retire at the forthcoming Fifteenth Annual General Meeting of the Company and being eligible, had offered themselves for re-election :- i. YBhg Dato Hashim Bin Mahfar, retiring pursuant to Article 98 of the Articles; ii. YBhg Dato Ir Lee Miang Koi, retiring pursuant to Article 98 of the Articles; and iii. Mr Ng Wah Tar, retiring pursuant to Article 98 of the Articles. The information on the Directors standing for re-election at the forthcoming Fifteenth Annual General Meeting is contained in the Statement Accompanying the Notice of Annual General Meeting. DIRECTORS REMUNERATION (a) PROCEDURE, LEVEL AND MAKE UP OF REMUNERATION The Company has a formal procedure to determine the remuneration of each Board member which are reviewed, from time to time, against market practices. In the case of the Executive Directors, their remuneration are structured so as to link rewards to corporate and individual performance and their remuneration packages comprise a salary, allowances, bonuses and other benefits as normally accorded to similar positions in other comparable companies and sufficiently attractive to retain persons of high calibre. Performance is measured against profits and other targets set from the Company s annual budget and business plans as well as achievements of targeted returns to shareholders. In the case of the Independent Non-Executive Directors, their remunerations reflect their experience, level of responsibilities and contributions and the time spent attending to the Group s affairs and they are paid a fixed monthly allowance, leave passage and meeting allowances for each Board and Board Committee meeting that they attend. The Remuneration Committee is responsible for recommending the remuneration packages of the Directors to the Board. The Board, as a whole, determines the remuneration of the Non-Executive Directors. Individual Directors shall abstain from discussing and voting on their own remuneration at the Board and Remuneration Committee Meetings. 184

187 Statement On Corporate Governance (b) DISCLOSURE OF DIRECTORS REMUNERATION The details of the remuneration received and receivable by the Company s Directors from the Company for the financial year ended 31 December 2011 are as follows:- Employees Leave Provident Name of Director Fees Salaries Bonuses Passage Allowance Fund Total (RM) (RM) (RM) (RM) (RM) (RM) (RM) Tan Sri Rozali Ismail Dato Hashim Mahfar Dato Ruslan Hassan Dato Ir Lee Miang Koi Dato Syed Danial Syed Ariffin Tan Sri Dato Hari ,000 74, ,000 Narayanan Govindasamy Tan Sri Dato Seri Dr , , ,000 Ting Chew Peh Tengku Dato Rahimah ,000-8,000 Almarhum Sultan Mahmud Tan Sri Dato Ahmad Fuzi ,000 74, ,000 Haji Abdul Razak Ng Wah Tar The remuneration packages of the Directors of the Company received and receivable from the Group for the financial year ended 31 December 2011 are categorised into the appropriate components as follows:- Executive Directors (RM) Non-Executive Directors (RM) Fees - - Salaries 8,255,460 - Bonuses 2,396,175 - Benefits-in-kind 405,646 - Employees Provident Fund 1,777,361 - Leave Passage 663, ,000 Other staff expenses 3,754, ,000 Total 17,252, ,

188 Statement On Corporate Governance Details of the Directors Remuneration at Company and Group levels for the financial year ended 31 December 2011, in bands of RM50,000 are tabulated as follows:- Company Level Group Level No. of No. of Executive Non-Executive Range of Remuneration per annum Directors Directors No. of Directors RM1 to RM50,000 1 RM100,001 to RM150, RM300,001 to RM350,000 1 RM750,001 to RM800,000 1 RM1,000,001 to RM1,050,000 1 RM1,100,001 to RM1,150,000 1 RM1,800,001 to RM1,850,000 1 RM3,750,001 to RM3,800,000 1 RM8,350,001 to RM8,400,000 1 (c) DIRECTORS SHARE OPTIONS There is no Directors Share Options Scheme in the Company during the financial year ended 31 December (d) DIRECTORS TRAINING The Directors keep themselves abreast on the latest regulatory and corporate governance developments, besides enhancing professionalism and knowledge to enable them to discharge their duties effectively. For the financial year ended 31 December 2011, the Directors have attended training programmes, seminars and conferences organised by the Company and the various training providers covering areas such as :- 2nd Asia Pacific Regional Water Conference And Exhibition 2011 Program Taklimat Khas & Forum ETP & Teraju Bersempena Mesyuarat Agung DPMMS Taklimat Media Inisiatif Penjanna Kekayaan Baru & Pembangunan Eko-Sistem Negara Melangkaui 2021 Acquaterra International Water Week Conference On Integrated Acqua Solution Singapore International Water Week Water Convention th Annual Offshore Convention South East Asia nd Asia Pacific Regional Water Conference & Exhibition Board Development Program 2011 Corporate Governance Program The Board s Responsibility For Corporate Culture Selected Governance Concerns And Tools For Addressing Corporate Culture And Board Performance Corporate Frauds Detection And Prevention Sustainable Leadership Standing Apart From Others Corporate Social Responsibility Value-creation that goes beyond compliance and philanthropic activities Islamic Trade & Finance : The Way Ahead Khazanah Global Lectures Business Opportunities In Kazakhstan & Empowering SMEs In Far Eastern Markets & Impact Of Globalisation On SMEs Business Opportunities In Halal Industry & Islamic Banking And Finance : Seeking New Markets 7th World Islamic Economic Forum CFO Show Asia 2011 Corporate Hedging Seminar Managing Your Risks In addition, the Executive Chairman and some Directors have also presented papers at seminars and forums on water-related subjects. 186

189 Statement On Corporate Governance SHAREHOLDERS COMMUNICATION AND INVESTOR RELATIONS POLICY The Board acknowledges the need for the Company s shareholders and investors to be informed of all material business and corporate developments concerning the Group in a timely manner. In addition to various announcements made during the year, the timely release of the Group s consolidated financial results on quarterly basis provides the shareholders and investors with an overview of the Group s financial and operational performances. The Company maintains regular and effective communication with its shareholders and stakeholders through one-to-one or group dialogues, participation in investor conferences organised by local and foreign institutional houses, attending to shareholders and investors s and phone calls enquiries, Company General Meetings and other Company events. The Annual Report of Puncak Niaga which is produced in line with best corporate governance practices also serves as a key channel of communication with shareholders and investors. Another communication tool to reach shareholders and investors is via our corporate website, with a direct link to SYABAS website, which can be accessed easily and promptly for information on the Group as an ongoing commitment to provide more easily accessible information to the shareholders and investors. The Company s Investor Relations Policy & Report is set out on pages 204 to 205 of this Annual Report. ACCOUNTABILITY AND AUDIT (a) FINANCIAL REPORTING The Board is responsible for the quality and completeness of publicly disclosed financial reports. In presenting the annual financial statements, quarterly reports and the annual reports to the shareholders of the Company, the Board takes appropriate steps to present a clear and balanced assessment of the Group s position and prospects. This also applies to other price-sensitive public announcements and reports to the regulatory authorities. The Group s financial statements and quarterly announcements, prepared using appropriate accounting policies, consistently and supported by reasonable and prudent judgements and estimates, will be reviewed and deliberated by the Audit Committee in the presence of the External Auditors, Internal Auditors of the Company and the Executive Director of Finance Division prior to recommending them for adoption by the Board. The Audit Committee ensures that the information to be disclosed are accurate, adequate and in compliance with the various disclosure requirements imposed by the relevant authorities. The Board discusses and reviews the recommendations proposed by the Audit Committee prior to its adoption. The Board also ensures accurate and timely release of the Group s quarterly and annual financial results to Bursa Securities. The Statement of Directors Responsibility in respect of the preparation of the Annual Audited Financial Statements of the Group is set out on page 209 of this Annual Report. (b) RELATIONSHIP WITH EXTERNAL AUDITORS The Board maintains a transparent and professional relationship with the Group s External Auditors. The External Auditors attended four out of five Audit Committee meetings of the Company held during the financial year. These quarterly meetings enabled the exchange of views on issues requiring attention. A formal mechanism has been established by the Audit Committee to ensure there is frank and candid dialogue with the External Auditors. The Audit Committee will meet the External Auditors twice a year (April and November) without the presence of the Executive Directors and Management. This allows the Audit Committee and the External Auditors the exchange of free and honest views and opinions in matters related to External Auditors audit and findings. A report by the Audit Committee together with its Summarised Terms of Reference is set out on pages 195 to 200 of this Annual Report. 187

190 Statement On Corporate Governance (c) INTERNAL CONTROL The Board acknowledges its overall responsibility for maintaining a sound system of internal controls, which provides reasonable assurance in ensuring the effectiveness and efficiency of the Group s operations and to safeguard shareholders investment and its assets and interests in compliance with the relevant laws and regulations as well as the internal financial administration procedures and guidelines. The Group s Statement on Internal Control is set out on pages 193 to 194 of this Annual Report. (d) CORPORATE SOCIAL RESPONSIBILITY Appendix 9C (Part A, Paragraph 29) of the Main Market Listing Requirements of Bursa Securities requires a listed company to provide a description in its annual report of the corporate social responsibility activities and practices undertaken by the listed company and its subsidiaries. The Group s Report on Environmental Issues, Social Accountability and Sustainability Report are set out in Valuing Our People" section on pages 132 to 151 of this Annual Report, in Engagement With Our Community section on pages 167 to 174 of this Annual Report and in Preserving Our Environment section on pages 152 to 166 of this Annual Report. OTHER COMPLIANCE INFORMATION (a) SHARE BUY BACK The Company did not implement any share buy back or resale or cancel any of the Company s treasury shares during the financial year ended 31 December As at 31 December 2011, the total number of the Company s treasury shares remained at 2,036,800 ordinary shares of RM1.00 each. (b) OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES There were no options, warrants or convertible securities exercised during the financial year ended 31 December 2011 as the options and warrants had expired, lapsed and became void and ceased to be exercisable after the expiry date or the exercisable period respectively. (c) AMERICAN DEPOSITORY RECEIPT (ADR)/GLOBAL DEPOSITORY RECEIPT (GDR) The Company does not sponsor any ADR or GDR programme. (d) SANCTIONS AND/OR PENALTIES The Company and its subsidiaries, Directors and Management have not been imposed with any sanctions and/or penalties by the relevant regulatory bodies for the financial year ended 31 December (e) NON-AUDIT FEES During the financial year ended 31 December 2011, the Group paid the following non-audit fees to the External Auditors:- (i) Tax advisory and compliance work RM187, (ii) Other non-audit related service RM392, Non-audit fees payable to the External Auditors, Messrs Ernst & Young relates to the review of the Statement of Internal Control and other professional services including tax compliance, tax planning and advisory services. (f) VARIATIONS IN RESULTS There was no material variation in the Audited Financial Statements for the financial year ended 31 December 2011 contained in this Annual Report as compared with the unaudited consolidated results of the Group for the financial year ended 31 December 2011 which was announced to Bursa Securities on 28 February (g) PROFIT GUARANTEE The Company does not provide any profit guarantee to any parties. (h) RECURRENT RELATED PARTY TRANSACTION The Company did not enter into any recurrent related party transaction, which requires the shareholders mandate during the financial year ended 31 December

191 Statement On Corporate Governance (i) MATERIAL CONTRACTS INVOLVING DIRECTORS AND MAJOR SHAREHOLDERS Material contracts entered into by the Company and the Group, which involve the interests of Directors and major shareholders of the Company and its subsidiary companies and material contracts which are still subsisting at the end of the financial year ended 31 December 2011, are as follows:- Consideration/ Relationship Nature Mode of with Director/ Date of Contract Parties Satisfaction Major Shareholder 15 December 2004 Concession Syarikat Bekalan Not Applicable YBhg Tan Sri Rozali Ismail Agreement Air Selangor Sdn Bhd ( TSRI ) is a major ( SYABAS ), shareholder of PNHB the State Government held directly under his of Selangor Darul Ehsan name and indirectly held and the Government through his 100% equity of Malaysia interest in Central Plus (M) ( Federal Government ) Sdn Bhd ( CPlus ) and Corporate Line (M) Sdn Bhd ( CLine ). PNHB in turn, holds 70% equity interest in SYABAS. 31 December 2004 Shareholders PNHB, Kumpulan Not Applicable TSRI is a major shareholder Agreement Darul Ehsan Berhad of PNHB held directly under (KDEB) and SYABAS his name and indirectly held through his 100% equity interest in CPlus and CLine. PNHB in turn, holds 70% equity interest in SYABAS. 23 February 2006 Subscription PNHB, KDEB Not applicable TSRI is a major shareholder Agreement In and SYABAS of PNHB held directly Relation To The under his name and indirectly Subscription For held through his 100% equity Up To RM1.045 interest in CPlus and CLine. Billion Nominal PNHB in turn, holds 70% Value Of equity interest in SYABAS. Redeemable Cumulative Unsecured Loan Stocks Of SYABAS (RCULS) 189

192 Statement On Corporate Governance Consideration/ Relationship Nature Mode of with Director/ Date of Contract Parties Satisfaction Major Shareholder 8 December 2006 Subscription Puncak Niaga (M) Not applicable TSRI is a major Agreement In Sdn Bhd ( PNSB ) shareholder of PNHB held Relation To The (as the Issuer), directly under his name Issue Of RM435.0 United Overseas Bank and indirectly held through Million Nominal (Malaysia) Bhd his 100% equity interest Value Of (as the Facility Agent in CPlus and CLine. Redeemable and the Issue Agent) PNHB in turn, holds 100% Unsecured and PNHB equity interest in PNSB. Bonds To PNHB 16 August 2007 Sungai Lolo The State Government Not applicable TSRI is a major Water Treatment of Selangor Darul shareholder of PNHB held Plant (Extension) Ehsan and PNSB directly under his name Operation And and indirectly held through Maintenance his 100% equity interest Agreement in CPlus and CLine. PNHB in turn, holds 100% equity interest in PNSB. 16 August 2007 Novation The State Government Not applicable TSRI is a major Agreement In of Selangor Darul Ehsan, shareholder of PNHB held Relation To The PNSB and SYABAS directly under his name Sungai Lolo and indirectly held through Water Treatment his 100% equity interest Plant (Extension) in CPlus and CLine. Operation and PNHB in turn, holds 100% Maintenance and 70% equity interests Agreement in PNSB and SYABAS, respectively. 7 March 2008 Sg Sireh Water The State Government Not applicable TSRI is a major Treatment Plant of Selangor Darul Ehsan shareholder of PNHB held (Extension) and PNSB directly under his name Operation and and indirectly held through Maintenance his 100% equity interest Agreement in CPlus and CLine. PNHB in turn, holds 100% equity interest in PNSB. 190

193 Statement On Corporate Governance Consideration/ Relationship Nature Mode of with Director/ Date of Contract Parties Satisfaction Major Shareholder 7 March 2008 Novation The State Government Not applicable TSRI is a major Agreement To of Selangor Darul Ehsan, shareholder of PNHB held The Sg Sireh PNSB and SYABAS directly under his name Water Treatment and indirectly held through Plant (Extension) his 100% equity interest Operation and in CPlus and CLine. Maintenance PNHB in turn, holds 100% Agreement and 70% equity interests in PNSB and SYABAS, respectively. 20 February 2009 Supplemental PNHB, KDEB, SYABAS Not applicable TSRI is a major Shareholders and Kumpulan shareholder of PNHB held Agreement Perangsang Selangor directly under his name (Transfer of 15% Berhad (KPSB) and indirectly held through equity interest his 100% equity interest in SYABAS in CPlus and CLine. comprising PNHB in turn, holds 70% 750,000 ordinary equity interest in SYABAS. shares of RM1.00 each from KDEB to KPSB) 16 December 2009 Loan Facility SYABAS (Borrower) Not applicable TSRI is a major Agreement and the Federal shareholder of PNHB held (in respect of a Government (Lender) directly under his name loan facility of and indirectly held through RM320,800, his 100% equity interest only). The details in CPlus and CLine. are set out in the PNHB in turn, holds 70% Audited Financial equity interest in SYABAS. Statements of the Group and the Company for the financial year ended 31 December 2011 on page 320 of this Annual Report 191

194 Statement On Corporate Governance Consideration/ Relationship Nature Mode of with Director/ Date of Contract Parties Satisfaction Major Shareholder 17 October 2011 Loan Facility SYABAS (Borrower) Not applicable TSRI is a major Agreement and the Federal shareholder of PNHB held (in respect of a Government directly under his name loan facility of (Lender) and indirectly held through RM110,000, his 100% equity interest only). The details in CPlus and CLine. PNHB are as set out in in turn, holds 70% equity the Audited Financial interest in SYABAS. Statements of the Group and the Company for the financial year ended 31 December 2011 on pages 320 and 321 of this Annual Report. Deed of Assignment SYABAS (as the Assignor) and the Federal Government (as Assignee) STATEMENT OF GOING CONCERN Barring any unforeseen circumstances and upon making due and reasonable enquiry into the affairs of the Group, the Board firmly believes that the Group shall continue to operate as a going concern business in the foreseeable future. This Statement on Corporate Governance has been approved by the Board of PNHB on 26 April

195 Statement On Internal Control INTRODUCTION The Malaysian Code on Corporate Governance (Revised 2007) requires listed companies to maintain a sound system of internal control to safeguard shareholders investments and the Group s assets. The Main Market Listing Requirements of Bursa Malaysia Securities Berhad requires Directors of listed companies to include a statement in their annual reports on the state of their internal controls. RESPONSIBILITY The Boards of the PNHB Group are responsible for maintaining sound systems of internal control and for reviewing their adequacy and integrity so as to safeguard the shareholders investments and the Group s assets. The Boards and Management have implemented a control system designed to identify and manage risks facing the Group in pursuit of its business objectives. This internal control system, by its nature, can only provide reasonable and not absolute assurance against material misstatement or loss. The Group has in place ongoing processes for identifying, evaluating, monitoring and managing significant risks faced by the Group during the year. The Management is responsible for the identification and evaluation of significant risks applicable to their respective areas of business and to formulate suitable internal controls. This process is reviewed by the Board of PNHB via a specific Board Committee, namely the Compliance, Internal Control and Risk Policy Committee, which dedicates its time at periodic intervals throughout the year for discussion on this matter. RISK MANAGEMENT FRAMEWORK Risk Management is firmly embedded in the Group s management system and is every employee s responsibility. In October 2001, the Board of PNHB formally approved a systematic risk management structure and process for the Group. Since then, the structure and process have been fully implemented by the Management and employees of the PNHB Group. The Group s risk management framework is explained in detail in the Risk Management Policy & Report set out on pages 201 to 203 of the Annual Report. INTERNAL CONTROL SYSTEM The key elements of the Group s internal control system and assurance processes, inter alia, encompass the following:- All major decisions require the final approval of the respective Boards/Executive Committees within the Group (PNHB/PNSB/SYABAS/Sino Water Pte Ltd/POG Group) are only made after appropriate in-depth analysis. The respective Boards/Executive Committees receive regular and comprehensive information covering all Divisions/ Departments/Districts in the respective companies within the Group. All Divisions and Departments of PNSB and POG Group have clearly documented Procedure Manuals and/or Policies whilst SYABAS has Standard Operating Procedures and/or Polices incorporating control procedures and the scopes of responsibilities and authorities. The Procedure Manuals/ Standard Operating Procedures/Policies are updated from time to time to incorporate all elements necessitated by changes in the legislation, industry best practices and business dynamics. The Internal Audit Department of PNSB independently reviews the control processes implemented by the Management from time to time and periodically reports on its findings and recommendations to the Audit Committee of PNHB. The duties and responsibilities of PNHB s Audit Committee are detailed in the Terms of Reference of PNHB s Audit Committee. The Audit Committee, by consideration of both Internal and External Audit Reports, is able to gauge the effectiveness and adequacy of the internal control system, for presentation of its findings to the Board. The Internal Audit Department of PNSB extends a copy of its Final Internal Audit Reports to the Executive Chairman and Managing Director and summarised Status Reports on its activities are regularly submitted to the Management Committee Meetings. The Board of SYABAS established an Audit Committee with its own Terms of Reference on 3 August The Internal Audit Division of SYABAS extends a copy of its Internal Audit Reports to the Executive Chairman and summarised Status Reports on its activities are regularly submitted to the Management of SYABAS. 193

196 Statement On Internal Control The Compliance, Internal Control and Risk Policy Committee, which is chaired by YBhg Tan Sri Dato Seri Dr Ting Chew Peh, an Independent Non-Executive Director of PNHB was established in October This Committee closely monitors the Risk Management process within the Group and the extent of compliance with the Statement on Internal Control requirements. The Tender and Contracts Committee of PNSB/POG Group and the Tender Committees of SYABAS ensure transparency and competitive pricing in the award of contracts within the Group. A detailed budgeting process has been established for PNSB, SYABAS, Sino Water Pte Ltd and POG Group requiring all Divisions/Departments/Districts to prepare their respective budgets annually. These budgets are then reviewed and approved by the respective Boards/Executive Committees prior to actual implementation each year. The monitoring of actual performance versus budget for PNSB, SYABAS, Sino Water Pte Ltd and POG Group, with major variances being followed up, is done on a monthly basis and Management action is taken to rectify any shortcomings, where necessary. Guidance for Directors of Public Listed Companies Since the issuance of the Statement on Internal Control: Guidance for Directors of Public Listed Companies (Guidance) in December 2000, the Group has monitored its level of readiness with the Guidance. The Group aims to not just achieve full compliance, but also to improve on the Group s processes by implementing best business practices in line with international best practice standards. Throughout the year 2011, the Compliance, Internal Control and Risk Policy Committee has closely monitored the Group s level of readiness with the Guidance. This Statement on Internal Control has been prepared in accordance with the Guidance and has been approved by the Board of PNHB and reviewed by the external auditors. For and on behalf of the Board of Puncak Niaga Holdings Berhad PNSB, SYABAS, Sino Water Pte Ltd and POG Group have their own Limits of Authorities that have been approved by their respective Boards. Self Assessment Audit Forms (which list all key procedures), have been developed for all Departments of PNSB. With effect from 31 March 2008, all Departments are required to submit a quarterly declaration to the Internal Audit Department as to whether all the key procedures have been complied with. Tan Sri Dato Seri Dr Ting Chew Peh Chairman Compliance, Internal Control and Risk Policy Committee 26 April

197 Audit Committee Report The Board of Directors of ( PNHB ) is pleased to present the report of the Audit Committee for the financial year MEMBERSHIPS AND MEETINGS The Audit Committee comprises the following members and details of attendance of each member at the Audit Committee Meetings held during the financial year 2011 were as follows: Number Number of of Composition Meetings Meetings Percentage of Committee Held Attended (%) YBhg Tan Sri Dato % Seri Dr Ting Chew Peh Chairman/Independent Non-Executive Director YBhg Tan Sri Dato % Hari Narayanan Govindasamy Member/Independent Non-Executive Director YAM Tengku Dato % Rahimah Almarhum Sultan Mahmud Member/Non-Independent Non- Executive Director YBhg Tan Sri Dato % Ahmad Fuzi Haji Abdul Razak Member/Independent Non-Executive Director The Executive Director (Finance Division), Senior Manager/ Manager (Internal Audit Department), General Manager (Operation & Maintenance Department) and other members of Senior Management attended these meetings upon the invitation by the Chairman of the Audit Committee. The Group s external auditors were also invited to attend these meetings where matters relating to the audit of the statutory accounts and/or the external auditors are to be discussed. The Company Secretaries, Madam Tan Bee Lian and Madam Lim Yew Heang are the Secretaries to the Audit Committee. 2. SUMMARY OF ACTIVITIES During the financial year 2011, the Audit Committee carried out its duties as set out in the Terms of Reference. The main activities carried out by the Audit Committee during the financial year included the following:- Financial Results Reviewed the quarterly and year-to-date unaudited financial results of the Group before tabling to the Board for consideration and approval. Reviewed the reports and the audited financial statements of the Company and of the Group together with the external auditors prior to tabling to the Board for approval. Reviewed the Group s Action Plan to address the Practice Note 17 issue. 195

198 Audit Committee Report External Audit Reviewed the external auditors scope of work and audit plan for the year and made recommendations to the Board on their appointment and remuneration. Reviewed and discussed the external auditors audit report and areas of concern highlighted in the management letter, including management s response to the concerns raised by the external auditors. Discussed on significant accounting and auditing issues, impact of new or proposed changes in accounting standards and regulatory requirements. Met with the external auditors without the presence of the Management. Internal Audit Reviewed the Internal Audit Plan, programme of resource requirement for the year and assessed the performance of the Internal Audit Department. Reviewed the Internal Audit reports, which highlighted the audit issues, recommendations and the Management s responses and directed action to be taken by the Management to rectify and improve the system of internal control. Monitored the implementation of recommendations made by the Internal Audit Department arising from its audits in order to obtain assurances that all key risks and control concerns have been fully addressed. Related Party Transactions Reviewed all related party transactions entered into by the Company and the Group. 3. INTERNAL AUDIT FUNCTIONS ( PNHB )/Puncak Niaga (M) Sdn Bhd ( PNSB ) PNHB/PNSB has an established independent Internal Audit Department reporting directly to the Audit Committee. The Internal Audit Department assists the Audit Committee in the discharge of its duties and responsibilities. The Internal Audit Department s primary responsibility is to provide an independent assurance on the adequacy and effectiveness of risk management, governance and internal control. The Internal Audit Department focuses on regular and systematic review and has conducted evaluation on the internal control, management information systems, and compliance with established procedures including the system for compliance with applicable laws, regulations, rules, directives and guidelines. The Annual Internal Audit Plan 2011 of the Internal Audit Department (which was developed based on a risk based approach), was approved by the Audit Committee at the 66th Audit Committee Meeting of the Company held on 25 November The Internal Audit reports, which highlights internal control weaknesses, were deliberated by the Audit Committee and the recommendations were duly acted upon by the Management. In 2011, the Internal Audit Department completed a total of 66 major audit assignments covering all the Water Treatment Plants, high-risk areas identified by the Risk Management Scorecard Working Group and adhoc assignments requested by the Senior Management. Examples of key areas audited by the Internal Audit Department during the Financial Year 2011 were Klang Gates, Tasik Subang and Sg Langat Dam Operation, Review of Related Party Transactions, Fixed Assets at Wisma Rozali, Selected Regional Offices and WTPs, Compliance with Tendering Process and Plant Audits of all Water Treatment Plants etc. All audits were performed in-house. The Internal Audit Department s role with regards to the Group s risk management framework is explained in the Risk Management Policy & Report set out on pages 201 to 203 of the Annual Report. 196

199 Audit Committee Report The total cost incurred by the Internal Audit Department in relation to the conduct of the internal audit function of PNHB/PNSB during the Financial Year 2011 was about RM1.08 million. As at 31 December 2011, the Internal Audit Department had nine staff (three Accountants, four Engineers and two support staff). Training attended by the Internal Audit Department s staff in 2011 included the Risk Compliance Summit 2011, Raising Bar on Corporate Governance, Business Writing Skills, ISO 19001,18001,14001 and Risk Based Auditing on Projects. SYABAS 4. SUMMARISED TERMS OF REFERENCE OF PNHB S AUDIT COMMITTEE A. Composition The Board shall elect an Audit Committee from amongst themselves (pursuant to a resolution of the Board of Directors), comprising of at least three (3) Directors which fulfils the following requirements: i. All the members of the Audit Committee must be Non-Executive Directors of the Company (and excluding Alternate Directors) with a majority of them being Independent Directors; and Due to the complexity of its water distribution operations which are dissimilar to that of PNSB s water treatment operations, the Board of SYABAS formally ratified the establishment of the Internal Audit Division on 1 September 2006 and an Audit Committee with its own Terms of Reference was formed on 3 August At SYABAS, the audit emphasis for the Financial Year 2011 was to determine whether the financial and other controls were in place to ensure the integrity and accuracy of information in the Review Documents submitted for the purpose of tariff adjustment for the 4 th Operating Period from 2012 to Reports on individual components of the tariff review adjustment include the review on revenue billings and collections, certified amount of program of works, amount spent on purchase of treated water, distribution costs and non-revenue water. Besides the above, the Internal Audit Department also conducted other audits e.g., Bulk Meter and sub meter reading, Administration of Leave and e-leave, Procedures of Cash Float for Report refund, stay-back allowance claims by security Executives, Accuracy of meter in and meter out at DMZ, Internet Perimeter control, effectiveness and management of virus protection and Administration of migration process. Altogether, Internal Audit Department conducted 70 assignments in The cost incurred by the Internal Audit Department in relation to the conduct of internal audit function of SYABAS during the year was about RM1.1 million. ii. At least one (1) member of the Audit Committee: a. must be a member of the Malaysian Institute of Accountants; b. if he is not a member of the Malaysian Institute of Accountants, he must have at least three (3) years working experience and: 1. he must have passed the examinations specified in Part I of the 1 st Schedule of the Accountants Act 1967; or 2. he must be a member of one of the associations of accountants specified in Part II of the 1 st Schedule of the Accountants Act 1967; or 3. fulfils such other requirements as prescribed or approved by Bursa Malaysia Securities Berhad. 197

200 Audit Committee Report The members of the Audit Committee shall elect a Chairman from amongst themselves who shall be an Independent Director. It would be advantageous if the Chairman possesses a strong personality, have knowledge and experience in financial reporting, good leadership skills and is keen to get financial reporting and controls right. The Chairman of the Audit Committee will maintain continuous engagement with the Board Members and Senior Management of the Company and the external auditors in order to be kept abreast of matters affecting the Company. All members of the Audit Committee should be financially literate. If the members of the Audit Committee for any reason be reduced to below three (3), the Board of Directors shall within three (3) months of the event, appoint such number of new members as may be required to make up the minimum number of three (3) members. B. Duties And Responsibilities In fulfilling its primary objectives, the Audit Committee will need to undertake the following duties and responsibilities: B.1 Oversee All Matters Relating to External and Internal Audits i. The Committee shall meet with the external auditors prior to the commencement of the annual audit to review and discuss: The Annual Audit Plan with the external auditors, including the scope, nature and areas of audit of the Group; The extent of any planned reliance on the work of the internal auditors and the anticipated effect of this reliance on the examination. ii. Any significant accounting and auditing problems that the auditors can foresee and impact on the financial statements of any new or proposed changes in accounting standards or regulatory requirements. Following its review of the plan, the Audit Committee may request the external auditors to perform additional audit work directed to specific areas of concern to the Committee. Oversee the Internal Audit Department. The Audit Committee in overseeing the Internal Audit Department will: Review the audit programme, scope, performance and findings of the internal auditors. Monitor the implementation of the programme so that sufficient internal audit coverage is accorded. Assess the capacity of the Internal Audit Department to fulfil its responsibilities by considering, amongst other things, the adequacy of the scope of the Department s authority as presented in the Department s charter, the competency, qualifications and experience level of its employees, the degree to which internal auditors are independent of the activities they audit and the reporting relationship between the Head of Internal Audit and Senior Management. Review any appraisal or assessment of the performance of the staff of the Internal Audit Department and approve any appointment or termination of senior internal audit staff. 198

201 Audit Committee Report iii. Review the assistance and cooperation given by the Company s officers to the external and internal auditors. iv. Consider the appointment of the external auditors, the audit fee and any questions of resignation or dismissal. B.3 Review of Financial Statements i. Meet with the Management and the external auditors to discuss the annual financial statements of the Company or Group and the results of the audit before recommending approval by the Board. v. The external and/or internal auditors shall have the right to appear and be heard at any meeting of the Audit Committee and shall appear before the Audit Committee when required to do so by the Audit Committee.` ii. Review the changes in or implementation of major accounting policy changes, the nature and resolution of any significant accounting and auditing problems encountered during the examination. vi. Upon the request of the external and/or internal auditors, the Chairman of the Audit Committee shall convene a meeting of the Committee to consider any matters the auditors believe should be brought to the attention of the Committee. vii. The Audit Committee may convene meetings with the external auditors and/or internal auditors, excluding the attendance of other Directors and employees of the Company, whenever deemed necessary. B.2 Evaluate the Standards of Internal Control and Financial Reporting i. Hold specific discussions with Senior Corporate Management to discuss the overall adequacy of the internal control system. iii. It is good practice for the Audit Committee to meet the Management at a regular interval to review the results of the Company or Group, such as quarterly review of the results. iv. Review the nature of any related party transaction and conflict of interest situation that may arise within the Company or the Group including any transaction, procedure or course of conduct that raises questions of the Management s integrity. v. Review the nature of any significant adjustments and unusual events, reclassifications or additional disclosures proposed by the external auditors that are currently significant or may become significant in the future. ii. Meet with the internal and external auditors concerning their evaluation of the system of internal accounting controls. iii. Consider the nature and disposition of the relevant comments appearing in the reports prepared by the internal auditors and in the external auditors management letter. 199

202 Audit Committee Report vi. Review the adequacy of disclosure of the impact of any changes during the year in accounting policies, standards and/or regulatory requirements. vii. Review the reasons for the major fluctuations in financial statement balances for the current year compared to prior years. viii. Review for any unusual circumstances or situations reflected in the financial statements, including identifying any marginal operations. ix. Review the nature of any unusual or significant commitments or contingent liabilities. x. Review of any significant differences between the annual report and other reports, such as reports to the regulatory agencies. xi. Review for any significant differences in format or disclosure from industry norms. B.4 Additional Duties and Responsibilities i. Act upon the Board of Directors request to investigate and report on any issues or concerns in regard to the management of the Company. ii. Such other functions as may be agreed to by the Audit Committee and the Board of Directors. C. Access To Records In carrying out their duties and responsibilities, the Audit Committee will in principle have full, free and unrestricted access to all Company records, property and personnel. D. Meetings and Minutes i. It is good practice for the Audit Committee to hold a minimum of four (4) meetings a year, although additional meetings may be called at any time at the Chairman s discretion. ii. iii. iv. In addition to the Committee members, the Executive Director of Finance Division and the Head of Internal Audit Department will normally be in attendance at the meetings. Representative of the external auditors are to be in attendance at meetings where matters relating to the audit of the statutory accounts and/or the external auditors are to be discussed. The Chief Executive Officer, other Board Members and/or other appropriate officers may be invited to attend, except for those portions of the meetings where their presence is considered inappropriate, as determined by the Committee Chairman. The Audit Committee will meet with the external auditors without the Executive Directors present at least twice a year. v. Minutes of each meeting shall be kept and distributed to each member of the Committee and also to the members of the Board. The Committee Chairman shall report on each meeting to the Board. The Secretary to the Audit Committee shall be the Company Secretary. 200

203 Risk Management Policy & Report RISK MANAGEMENT POLICY The Board of has approved the following Group s Risk Management Policy Statement:- The PNHB Group s Risk Management Policy is to identify, measure and control risks that may prevent the Group from achieving its objectives. Our challenge is to apply risk management to all parts of our business to ensure business risks are minimised and opportunities enhanced. We will achieve, maintain and review a proper risk management system which is implemented by the Management and extended to all employees of the Group. This is the commitment of the Board of Directors. This policy statement assigns responsibility for risk management to all PNHB Group employees and acknowledges that corporate responsibility lies with the Board of Directors of the PNHB Group. RISK MANAGEMENT REPORT As a follow-up from the Strategic Corporate Risk Management Workshop held for the Board and Senior Management in August 2001, information on Risk Management has been fully disseminated to all employees in the form of posters and through the Group s internal communications network. In addition, the risk management framework which was established in October 2001 has since then been fully implemented by the Management and employees of Puncak Niaga. A second Strategic Enterprise-Wide Risk Management Workshop was conducted for Directors and Senior Management staff, by an external consultant on 11 September COMPLIANCE, INTERNAL CONTROL AND RISK POLICY COMMITTEE (CICR) The establishment of the CICR was formalised by the Board in October The members of the CICR comprise the following:- Chairman : YBhg Tan Sri Dato Seri Dr Ting Chew Peh (Independent Non-Executive Director) There are risks faced by all companies in the various facets of their corporate lives. The nature of such risks including systemic, market, employees, economic, legislation, financial and others, need to be identified and managed to reduce the possibility and impact of any adverse effects. Puncak Niaga recognises this and has initiated risk management programmes to ensure its business risks are minimised and opportunities enhanced. The following steps were taken by the Board of Puncak Niaga in October 2001, for the management of the Group s corporate risks:- 1. The preparation of the Group s Risk Management Policy Statement. 2. The formation of the Compliance, Internal Control and Risk Policy Committee ( CICR ) with its own Terms of Reference. 3. The setting up of a Risk Management Section, which reports to the CICR. Members Secretary : YBhg Dato Hashim Mahfar Managing Director (Head of Compliance, Internal Control and Risk Policy Committee) Mr Danny Ng Wah Tar Executive Director, Corporate Finance Division Madam Tan Bee Lian Executive Director, Corporate Services Division Madam Wong Ley Chan Executive Director, Finance Division Tuan Haji Sonari Solor Senior General Manager, Internal Audit Department Cik Hayati Ab Wahab Senior General Manager, Internal Audit Division - SYABAS : Madam Johty Priyatharashani Manager, Internal Audit Department 201

204 Risk Management Policy & Report A) TERMS OF REFERENCE OF THE CICR The CICR shall provide assistance to the Board of Directors of Puncak Niaga in discharging its fiduciary responsibilities relating to safeguarding shareholders investment and the Group s assets through a structured approach to Risk Management. The primary responsibilities of the CICR are:- Formulating strategies to manage the overall risks associated with the Group s activities. This entails decisions on:- Long-term and short-term strategies. Justifiable capital allocation based on return per unit of risk. Recommending the appropriate risk management policies and procedures, which shall be reviewed frequently to ensure consistency with fundamental changes in the economy, market conditions and regulations. Reviewing periodically the Group s overall objectives by assessing the current risk portfolio composition and determining the desired exposures of each major area of risk. Monitoring and assessing the risk portfolio composition of significant activities of the Group. Keeping abreast of both current risk management techniques and theories, and any possible or actual changes in the regulatory environment, and recommending the appropriate action. B) CICR ACTIVITIES MEETINGS HELD AND ISSUES COVERED During the year 2011, the CICR held eight (8) meetings, of which four (4) were chaired by YBhg Tan Sri Dato Seri Dr Ting Chew Peh (Chairman of CICR) and four (4) were chaired by YBhg Dato Hashim Mahfar (Head of CICR). At its meetings, the CICR reviewed in detail, the Status Reports prepared by the Risk Management Section. The issues covered include the following:- 1. The level of readiness of PNSB and the respective Divisions and Departments with regards to the Statement on Internal Control requirements. 2. The progress of the risk assessment and risk monitoring exercises at Departmental/Divisional and Enterprise-Wide levels. The main risks, controls and management actions are highlighted for the CICR to deliberate. 3. The effective utilisation of the Q-RADAR Corporate Risk Scorecard software to identify, measure and monitor all corporate risks identified within PNSB, Sino Water Pte Ltd and POG Group. 4. Other relevant risk issues affecting the Group, from time to time. RISK MANAGEMENT SCORECARD WORKING GROUP AND ENTERPRISE-WIDE RISKS The Group recognises that Risk Management involves a structured approach, combining the efforts of all functions within the Group, to minimise the possibility and impact of unexpected damages so as to contribute towards greater efficiency and better decision-making. The Group s Enterprise-Wide Risk Profile is reviewed annually to take into consideration changes in the business environment, strategies and functional activities of the Group. In 2011, given the Group s venture into the oil & gas industry via its wholly owned subsidiary, POG which acquired 100% equity interests in GOM Resources Sdn Bhd (formerly known as Global Offshore Malaysia Sdn Bhd) and KGL Ltd respectively, a Risk Management Scorecard Working Group ( RMSWG ) Meeting was held on 17 November 2011 among the Executive Directors of PNSB and Senior Management of POG Group to deliberate on the Enterprise-Wide Risk Profile of the Group s oil & gas business. 202

205 Risk Management Policy & Report Subsequently, the RMSWG was held at Group level, comprising all Executive Directors of PNSB and Senior Management of PNSB and POG Group on 16 January 2012 to deliberate on the risks highlighted by the different business sectors and determine the Puncak Niaga Group s Enterprise-Wide Risk Profile for The deliberations of the RMSWG were reviewed by the CICR on 10 February Subsequently, a detailed Board Paper on the Group s Top Twelve Enterprise Wide Risks Facing the Puncak Niaga Group for 2012 was tabled during PNHB s Board of Directors Meeting that was held on 28 February The Group s Enterprise-Wide Risk Profile will be re-assessed by the RMSWG on a yearly basis. QUARTERLY RISK SCORECARD REPORTING (PNSB, SINO WATER PTE LTD AND POG GROUP) The respective Heads of Divisions and Departments of PNSB, the Managing Director of Sino Water Pte Ltd and the Senior Management of POG Group are responsible for assessing and managing their respective risks. Using the Q-RADAR Corporate Risk Scorecard software, the respective Heads of Divisions and Departments of PNSB, the Managing Director of Sino Water Pte Ltd and the Senior Management of POG Group submit their detailed risk scorecard reports to the Risk Management Section every quarter. Risk Management Section analyses and summarises the risk scorecard reports received for further deliberation by the CICR. Q-RADAR CORPORATE RISK SCORECARD SOFTWARE PNHB, PNSB, Sino Water Pte Ltd and POG Group utilise a risk management tool namely, the Q-RADAR Corporate Risk Scorecard ( CRS ) software to identify, measure and manage all corporate risks affecting PNSB. The CRS software offers a systematic approach to the management of enterprise-wide risks facing corporations and assists the Management of Puncak Niaga to successfully achieve their corporate objectives. The software is web-based and allows authorised users to monitor their respective risks on-line from any location. In June 2011, the Q-RADAR CRS software (Version 7.3) was upgraded to Version 8.0. Effective quarter ended 30 June 2011, a Corporate Digital Assurance module was implemented to all Risk Scorecard owners whereby they are required to validate and positively assure each individual risk, strength of control and management action. The status of this validation and assurance is reported to the CICR on quarterly basis. As at 31 December 2011, the Q-RADAR CRS software had 128 authorised users covering 23 Departments /Divisions, including POG Group and Sino Water Pte Ltd. The Q-RADAR CRS software is administered by the Risk Management Section. RISK MANAGEMENT AT SYABAS A Risk Management Workshop was conducted for all relevant Heads (or their representatives) of Divisions and Departments by the Internal Audit Division on 11 August Broadly, the topics covered during the Workshop were: 1. Risk Management Awareness. 2. Risk Management Thought Process. 3. Risk Management Scorecard Software (Q-RADAR). The Risk Management Working Group (comprising all Heads of Divisions and Departments) deliberated upon the Enterprise-Wide Risks Facing SYABAS For 2011/2012 on 16 August Matters discussed included: 1. Likelihood of risk events happening. 2. Evaluation of the consequences of the risk events happening. 3. Confirmation as to whether controls are in place and are being used to manage the risks. 4. Risks ranking from the highest to the lowest to produce a priority list. 203

206 Investor Relations Policy & Report As a responsible corporate citizen, Puncak Niaga is totally committed to upholding the highest standards of transparency, accountability and integrity in the conduct of our business activities in the best interest of our shareholders as well as to allow potential investors to make careful and informed investment decisions based on full and transparent disclosure of information. Puncak Niaga s Investor Relations Policy aims to build long-term relationships and credibility with our shareholders and potential investors based on trust, honesty, openness, transparency and sound understanding of the Company. To achieve its objectives, the Company will endeavour to undertake the following:- 1. CREATING QUALITY DIALOGUE 204 To create an environment where the effective bilateral communication between the Company and our shareholders and investors both inform and educate through regular, open and transparent provision of relevant and invaluable information over the long-term, which will build mutually beneficial long-term relationships vis-à-vis to foster a clearer understanding of the shareholders and investors expectations of the Company. To engage in quality dialogue with our shareholders and investors whereby the relationship is based on the principles of honesty, openness and transparency and to foster mutual understanding between the Company and our shareholders and investors. To reap the benefits of engaging in quality dialogue:- - Perception on our Company s risk is reduced; - Enhance feedback of our Company s performance; - Our Company s share valuation becomes more realistic; - Develop confidence in our Management team and management style; and - Works as a guide in the evaluation of our Company s business strategy. 2. INVESTOR COMMUNICATIONS STATEMENT To implement an efficient and effective Investor Relations Programme as part of our ongoing shareholders and investors communication obligations. To provide high quality, meaningful and timely information over and above that is required by law in order to improve the shareholders and investors understanding of our Company. To strive for key competence in the area of professional investor relations vide adequate resources and capabilities. To earn the trust, respect and confidence of our existing shareholders and investors. To build and maintain long-term relationships with our existing shareholders and investors. To initiate long-term relationship building with potential shareholders and investors. Our commitment to the above Policy is driven by the Board of Directors of PNHB Group and implemented by the Management. INVESTOR RELATIONS REPORT Investor relations is the means by which listed companies maintain dialogue with their existing shareholders and potential investors. It is a strategic management responsibility to present an accurate picture of corporate performance and prospects, thus enabling the investment community, through an informed market, to determine a realistic share price. As a result, investor relations can have a positive impact on the Company s market value and cost of capital relative to its industry sector and the overall economic climate. The year 2011 had been challenging amidst Puncak Niaga s relentless pursuit to gain leadership in the water industry and to remain focused in achieving our Vision and Mission. The Board is therefore pleased to report on Puncak Niaga s investor relations activities during 2011 as follows:- DIALOGUES WITH INVESTORS The Top Management of the Group actively engages in meetings, dialogues and briefing sessions with local and foreign institutional groups. In 2011, 14 dialogues and group briefing sessions were conducted with existing and potential investors, local and foreign fund managers and financial analysts from research and asset management houses.

207 Investor Relations Policy & Report INVESTORS ACCESS TO INFORMATION In line with our Investor Relations Policy, Puncak Niaga ensures timely disclosure of information over and above the regulatory authorities disclosure requirements so as to enable the investment community to make careful and informed investment decisions on the Company s securities. Shareholders and investors can contact us at investors@puncakniaga.com.my and access the Group s information and corporate announcements at our website, (with a direct link to or All announcements made to Bursa Malaysia Securities Berhad ( Bursa Securities ) are published shortly after the same is released on Bursa Securities website. All shareholders queries will be received by the Group Company Secretary who will provide feedback and responses to shareholders queries where such information can be made available to the public. Since 22 October 2004, in our efforts to meet disclosure obligations towards our shareholders, investors and stakeholders, the Group had adopted and implemented the Puncak Niaga Corporate Disclosure Policy (as set out on page 178 of this Annual Report), formulated in line with the Guide On Best Practices In Corporate Disclosure issued by Bursa Securities Task Force on Corporate Disclosure Best Practices. ANNUAL GENERAL MEETING ( AGM ) The Board of Puncak Niaga firmly believes that the AGM is the best forum to promote a closer relationship with our shareholders, enabling us to continue our engagement process with them. Since 2003, our AGMs have been preceded by a Company Presentation followed by a Question and Answer Session. Our shareholders are updated on the Group s corporate and financial performances, latest developments and issues of concern to the shareholders. This is especially important as we are the water services provider in the State of Selangor and the Federal Territories of Kuala Lumpur and Putrajaya and our shareholders are our consumers. It is Puncak Niaga s way of saying We value your views and We are here to serve you better. At the same time, our shareholders feedbacks, which are relevant to our operations, are taken into consideration in our business decisions. PNHB s Annual Report in the form of CD-ROM is sent to the entitled shareholders of the Company at least 21 days prior to the AGM as required by the Companies Act, 1965 and the Main Market Listing Requirements of Bursa Securities. Since 2007, we have set up the PUSPEL customer service counter at a secretariat room at the AGM venue to enable our shareholders to gain online access to SYABAS water related enquiries. In view of our role as a water services provider, we will continue with this practice at our future AGMs for the benefit of our shareholders. The 2012 AGM will be held on Tuesday, 26 June 2012 at the Concorde Hotel Shah Alam. The Notice of AGM is enclosed with this Annual Report. The results of all resolutions proposed at the 2012 AGM will be posted on Bursa Securities website and the Company s website on the evening of 26 June INVESTOR RELATIONS UNIT The Investor Relations Unit ( IRU ) maintains a database of shareholders and investors who wish to be updated on the Group s corporate developments and performances via . Kindly us your contact details to the attention of Madam Tan Bee Lian, Group Company Secretary at investors@puncakniaga.com.my or by mail at Investor Relations Unit, c/o Secretarial Department, Puncak Niaga Holdings Berhad, 10th Floor, Wisma Rozali, No. 4, Persiaran Sukan, Seksyen 13, Shah Alam, Selangor Darul Ehsan, should you wish to be included in our database. Similarly, to enable us to further improve our level of services to the community and our stakeholders, kindly forward your comments, views and concerns to us at corpcom@puncakniaga.com.my for public enquiries and investors@puncakniaga.com.my for investors enquiries. All water-related enquiries in the State of Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, such as complaints on water disruptions, pipe bursts or low water pressure, may be addressed to SYABAS Customer Service Centre, puspel@syabas.com.my or the toll-free line, or SMS PUSPEL space your complaints/ feedback to or the social networks on Twitter and Facebook, follow@puspel. 205

208 Quality Policy & Report QUALITY POLICY It is the Policy of Puncak Niaga to provide quality services and products to meet the customer requirements and satisfaction. Puncak Niaga shall strive to consistently adopt and maintain a quality management system based on all regulated requirements, internationally recognised standard which will ensure a planned, systematic, and proactive approach to quality in all aspects of our work. Puncak Niaga is also committed in providing a safe, harmonious and conducive working environment and continuously equips our employees with knowledge and skill to improve our quality systematically. Puncak Niaga Quality Management will be characterised by:- A culture of continual improvement and teamwork. Pro-activeness at all levels. The consistent application of Right First Time Every Time principle. Empowerment of personnel to solve problems expeditiously. All employees shall share the responsibility to understand and diligently implement the Quality Policy. INNOVATIVE & CREATIVE CIRCLE (ICC) PROGRAMME The ICC Programme is a platform to measure staff capability in maximising their knowledge and experience to extend creative ideas in solving work-related issues to increase the Company s productivity and cost-benefit. PNSB s ICC Secretariat ( the Secretariat ) had successfully conducted its sixth ICC Programme. The ICC Programme does not only support productivity enhancement, it is also designed as a channel in developing a customer-centric workforce. The ICC Programme may contribute towards the supply of technically skilled, knowledgeable and innovative workforce who possesses important generic skills such as leadership skills, interpersonal effectiveness, thinking skills, personal and professional effectiveness and effective communication skills. The ICC Programme is a reflection of the Company s continuous efforts in enhancing productivity and competitiveness. For the year ICC Programme, a total of 13 teams initially participated in the ICC Programme. They comprised 2 teams from the Head Office and 11 teams from the Water Treatment Plants. Based on the criteria set by the Malaysian Productivity Corporation ( MPC ) and after careful consideration, the ICC Secretariat shortlisted 8 teams, with the following 8 projects for final presentation:- 1. Poly pipe burst 2. Down time at chlorine plant 3. Choking of lime dosing pipe 4. Wash water pipe at sludge plant not functioning 5. Choking of micro strainer 6. Optimising alum dosing 7. In-efficient and unsystematic ways of managing staff personal file 8. Cost reduction of lead washer for chlorination system The ICC Programme s final presentation was held on 14 April 2011 at Wisma Rozali and the winning projects were:- 1. Down time at chlorine plant 2. Poly pipe burst 3. Choking of lime dosing pipe PNSB received a total of 19 ICC Awards in At the MPC Mini ICC 2011 held on 26 April 2011, five of our teams won three Gold Awards and two Silver Awards. At the MPC Regional Conventions 2011 held on 27 to 28 June 2011, 20 to 21 July 2011 and 25 to 26 July 2011, six of our teams received four Gold Awards and two Silver Awards, and two teams achieved 3 Gold Star Awards and one team achieved 2 Gold Star Award from the MPC National ICC Convention 2011 held on 19 to 20 October At the International ICC Conference Quality Creative Circle 2011 held in Yokohama, Japan from 11 to 15 September 2011 our Tag Team succeeded in garnering the prestigious Excellent Award for its cost-cutting and innovative project, namely Unstable micro sand in the Actiflo process. The company s achievement in ICC activities for 2010~2011 was outstanding and excellent. 206

209 Health, Safety And Environmental Policy It is the policy of and its subsidiaries (Puncak Niaga Group) to provide, so far as is practicable healthy, safe and environmental friendly workplace for all employees, contractors, visitors, interested members of society and others, and in the spirit of consultation and cooperation, the Management and employees will together strive to achieve goals and objectives of this Policy. Without prejudice to the generality of the above statement, the Policy of Puncak Niaga Group is:- to provide and maintain a healthy, safe and environmental friendly workplace and system of work, and to continually improve its environment and safety performance; to continuously emphasise on the prevention of injury, ill health and pollution in all activities; to ensure environmental and safety objectives and targets are set and reviewed; to ensure all employees are informed, instructed, trained and supervised on how to perform their jobs safely and without risk to health and without any harm to the environment; to investigate all occupational health, safety and environment incidents, and to make corrective measures to ensure the incidents will not recur; to comply with all legal and other requirements on health, safety and environment and other good practices which the Group subscribes; to review this policy as and when appropriate and to ensure it is understood by all employees and is available to all interested parties. 207

210 SYABAS Corporate Responsibility Policy At Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ), there is an underlying and long standing commitment to ethical practice based upon the belief that business can be both profitable and responsible. We have always believed that building meaningful long term relationships with employees, suppliers, and communities is good business practice for us and is what our stakeholders expect of us. This is, and always has been, the founding principle of our commitment to Corporate Responsibility ( CR ). SYABAS recognises both the business imperative and the moral obligation to carry out our activities in a socially responsible and environmentally sustainable manner. Leveraging on our long history of social awareness and charitable work, SYABAS aim is to contribute to a sustainable future through:- ENVIRONMENTAL IMPACTS: We shall manage development activities in order to minimise the risk of pollution and waste; EMPLOYEES: We shall respect the rights and diversity of employees, providing good conditions of work and equal opportunities, improving employee satisfaction, whilst enhancing the intellectual capital of SYABAS continuously through training and development; ETHICS: We shall encourage high standards of integrity and professionalism throughout SYABAS and providing a framework to manage the risk of unethical behaviour; RELATIONSHIPS WITH CONSUMERS: We shall anticipate and satisfy consumers needs and providing a high quality of customer service by registering and resolving consumers complaints in accordance to our published Client Charter, Mandatory Level of Services and Concession Agreement; SUPPLIERS AND PARTNERS: We shall treat all our suppliers fairly whilst delivering enhanced value and social improvements in partnership with them. We will operate in a way that safeguard against unfair business practices and shall encourage suppliers and contractors to adopt responsible business policies and practices for mutual benefit; COMMUNITY INVOLVEMENT: We shall support philanthropic and charitable giving, support for and active engagement with local communities through volunteering and other programmes. We shall also support and encourage our employees to help local community organisations and activities in the areas where we operate in; ENGAGEMENT WITH STAKEHOLDERS: We shall listen and engage with local communities and responding positively to request for information from our stakeholders in a timely and accurate manner. 208

211 Statement Of Directors Responsibility For Preparation Of Financial Statements The financial statements of the Group and Company have been drawn up in accordance with the applicable approved accounting standards in Malaysia and the provisions of the Companies Act, The Directors take responsibility in ensuring that the financial statements give a true and fair view of the financial position of the Group and of the Company as at 31 December 2011 and of the results and the cash flows of the Group and of the Company for the financial year then ended. In preparing the financial statements, the Directors have: Selected suitable accounting policies and applied them consistently; Made judgements and estimates that are reasonable and prudent; Ensured that all applicable accounting standards have been followed; and Prepared financial statements on the going concern basis as the Directors have a reasonable expectation, having made appropriate enquiries, that the Group and Company and which enables them to ensure that the financial statements comply with the provisions of the Companies Act, The Board has the overall responsibility to take all steps as are reasonably open to them to safeguard the assets of the Group to prevent and detect frauds and other irregularities. 209

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