This is the focus of our 2012 Annual Report.

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2 Puncak Niaga Holdings Berhad ( PNHB ) is a diverse team of many hands but one mind. Each of our team members has different talents, but all of us unite in strength as one team to achieve the Company s vision, mission and goal. Strength in Unity Our goal is to serve our stakeholders and our nation by responsible custodianship of the natural environment. We believe in mutual responsibility and mutual prosperity, and we aim to build a sustainable business by means of mutual effort. We also believe that growth whether individual or corporate is best achieved by unity in strength and teamwork. This is the focus of our 2012 Annual Report. DATE 26 June 2013 (Wednesday) 16 th Annual General Meeting 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 To Be A Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector. Our Vision 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. Our Mission 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 Contents ABOUT US OUR STRUCTURE OUR LEADERSHIP PERFORMANCE REVIEW OPERATIONS REVIEW Key Highlights 5 Puncak Values 8 Executive Chairman s Message 17 About This Report 18 Corporate Profile 20 Corporate Information 23 PNHB Group Fact Sheet 26 Our Role In The Water Supply System 27 Milestones 30 Puncak News 32 Corporate Achievements 35 Corporate Structure 36 Organisation Structure - PNSB 38 Organisation Structure - SYABAS 40 Organisation Structure - POG 41 Organisation Structure - GOM Resources 44 Board Of Directors Profile 55 Board Of Directors 56 Key Personnel Profile - PNSB 62 Key Personnel Profile - SYABAS 71 Key Personnel Profile - Sino Water 72 Key Personnel Profile - POG & GOM Resources 78 Five-Year Financial Highlights 79 Five-Year Group Performance 80 Share Price & Volume Traded 81 Financial Calendar 84 Operations Review - Puncak Niaga (M) Sdn Bhd 90 Operations Review - Syarikat Bekalan Air Selangor Sdn Bhd 98 Operations Review - Puncak Oil & Gas Sdn Bhd, GOM Resources Sdn Bhd And KGL Ltd. 101 Business Expansion 105 Delivering Service Excellence 111 Delivering Quality

5 CORPORATE RESPONSIBILITIES 126 Valuing Our People 150 Preserving Our Environment 164 Engagement With Our Community 170 Corporate Events Contents NOTICE OF AGM ACCOUNTABILITY FINANCIAL STATEMENTS OTHER INFORMATION 174 Statement On Corporate Governance 196 Statement On Internal Control 198 Audit Committee Report 204 Risk Management Policy & Report 208 Corporate Disclosure Policy 209 Corporate Social Responsibility Policy 210 Health, Safety And Environmental Policy 211 Investor Relations Policy & Report 214 Quality Policy & Report 216 Statement Of Directors Responsibility For Preparation Of Financial Statements 218 Financial Statements 418 Distribution Schedule Of Equity Securities 422 List Of Properties 424 GRI Index 431 Notice Of Annual General Meeting 436 Appendix A Of The Notice Of Annual General Meeting 437 Statement Accompanying The Notice Of Annual General Meeting Proxy Form Corporate Directory

6 Key Highlights In We operate, manage and maintain 29 WTPs with a combined capacity of 1,930 million litres per day. Our expansion into the Oil & Gas sector gained traction, a success that contributed signifi cantly to the Group s fi nancial results for RM3.74 billion For the financial year ended 31 December 2012, the Group s revenue advanced 44.5% to RM3.74 billion. RM778.0 million Revenue for our Oil & Gas Division almost tripled to RM778.0 million in RM million The Group achieved a profit after taxation of RM million for the financial year ended 31 December % Achievement in overall 2012 collection efficiency million Our WTPs delivered million cubic metres of treated water in million We distributed a daily average of 4,322 MLD of treated water to about 7.5 million consumers. 99.8% Our WTPs achieved an impressive 99.8% compliance with stipulated treated water quality standards. Annual Report 2012 Puncak Niaga Holdings Berhad

7 5 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. Puncak Niaga Holdings Berhad Annual Report 2012

8 Working together means sharing the task and multiplies our success

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10 8 Executive Chairman s Message YBHG TAN SRI ROZALI ISMAIL Executive Chairman of PNHB Group Dear valued Shareholders and Stakeholders, Throughout 2012, Puncak Niaga Holdings Berhad ( PNHB ) and the Group ( PNHB Group or the Group ) remained unwavering in its dedication to building sustainable value for the benefit of its stakeholders, and above all in its total commitment to serving its customers and to protecting the environment. Throughout the year, in our core business of water supply and distribution, the PNHB Group was proactive not only in supplying an important public utility, but in meeting business challenges such as ensuring excellent water distribution services and quality water supply to meet the growing consumers expectations within various constraints including adequacy of treated water to meet the demand. In addition to this, the Group had to face the many challenges in relation to the protracted proposed restructuring of the water services sector in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya ( Proposed Restructuring ), and the issue in relation to the water tariff adjustment for the third and fourth operating periods commencing 1 January 2009 and ended 31 December 2011 and commencing 1 January 2012 and ending 31 December 2014, respectively ( Water Tariff Adjustment ) or compensation in lieu thereof as provided under the Concession Agreement dated 15 December 2004 signed between Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ), the Federal Government and the Selangor State Government ( SYABAS Concession Agreement ). Our expansion into the Oil & Gas sector gained traction, a success that contributed significantly to the Group s financial results for Annual Report 2012 Puncak Niaga Holdings Berhad

11 It is therefore pleasing to report that, despite the challenges, the Group remain focused to achieve its Vision to become a Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil & Gas Sector. We recognise the importance of continuously enhancing and nurturing the skills and dynamism of our people; of seeking out and nurturing talented and energetic employees in all key business areas for succession planning; of fostering smart, forward-thinking innovation; and of inculcating a culture of high performance and teamwork within the workforce with a shared vision, mission and goal as the path towards achieving the Group s Vision. Leveraging on the strengths of our people, PNHB s theme for the Annual Report 2012 is, Strength in Unity, focusing on team leadership. 9 Executive Chairman s Message BACKGROUND In 2012, a number of factors combined to depress world economic growth. Stresses in the Eurozone intensified, exacerbated by doubts about the ability of European policymakers to resolve the crisis. The United States economy slowed, with output and employment weakening during the year. In addition, domestic demand continued to lose momentum in key emerging market economies. Specifically, in developing Asia, growth is estimated to have decreased to less than 7% in the first half of (Source: International Monetary Fund World Economic Review 2012 and World Economic Outlook 2013.) Despite this, the local economy proved surprisingly resilient and Malaysia made further progress towards its goal of becoming a high-income, developed nation. To counter the negative impact on Malaysia s growth of the problems in the global economy, the Government introduced a National Transformation Policy ( NTP ). The NTP effectively consolidates several transformation programmes, strengthening domestic demand and steering the nation in its mission to achieve inclusive and sustainable growth. We recognise the importance of continuously enhancing and nurturing the skills and dynamism of our people The timely implementation of the Tenth Malaysia Plan projects and other NTP programmes partly cushioned the domestic economy from the effects of a weaker external sector and enabled the nation to record a creditable growth of 5.1% in the first half of With the implementation of programmes under the NTP intensifying, plus the related multiplier effects, the economy should now be on an upward trend, as of the second half of (Source: Economic Report 2012/2013, Ministry of Finance, Malaysia) 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 FINANCIAL PERFORMANCE For the financial year ended 31 December 2012, the Group s revenue advanced 44.5% to RM3.74 billion from RM2.59 billion for the financial year ended 31 December The increase in revenue was mainly due to claimed higher water tariff compensation arising from the scheduled tariff hike which should have been gazetted on 1 January 2012, combined with the revenue contribution from the Oil & Gas sector. Meanwhile, the Group achieved a profit after taxation ( PAT ) of RM million compared to the loss after taxation of RM83.13 million recorded in the preceding year. This commendable profit performance enhanced the basic earnings per share from 2.42 sen in 2011 to sen in The Group achieved a segment profit before interest and tax ( segment PBIT ) of RM million compared to RM million recorded in the preceding year. The increase in segment PBIT was mainly due to higher segment PBIT from the Water Distribution and Oil & Gas Segment of RM million and RM83.44 million respectively. Puncak Niaga Holdings Berhad Annual Report 2012

12 10 Dividend The Board of Directors is pleased to propose a final single tier dividend of 5 sen per ordinary share for the financial year ended 31 December 2012 (2011: Nil). Executive Chairman s Message CHALLENGES The issue of the Proposed Restructuring has remained unresolved since July No progress was achieved during the year under review, and neither has the Water Tariff Adjustment nor the compensation in lieu thereof under the SYABAS Concession Agreement been settled. The legal suits in relation thereto involving Konsortium ABASS Sdn Bhd ( Konsortium ABASS ), SYABAS, Puncak Niaga (M) Sdn Bhd ( PNSB ) and the Selangor State Government are ongoing. On 20 February 2013, the Company received two letters from Kumpulan Darul Ehsan Berhad ( KDEB ) on behalf of the Selangor State Government in relation to the Proposed Restructuring offering on the indicative terms and conditions for the proposed acquisition of 100% equity in PNSB and 70% equity of PNHB in SYABAS not already owned by KDEB ( KDEB Offers ). On 6 March 2013, after full deliberation of the indicative terms and conditions of the KDEB Offers and after considering the advice of the Adviser appointed by the Company to assist in evaluating the KDEB Offers, the Company announced that the Board of Directors was unable to reach a final decision to even consider giving approval-in-principle or acceptance in principle to KDEB given the incomplete and inconclusive nature of the KDEB Offers as well as the position taken by Pengurusan Aset Air Berhad ( PAAB ). The Board of Directors was also not ready to convene an Extraordinary General Meeting of the Company for the purpose of tabling the KDEB Offers to the shareholders of the Company for consideration. The amount of compensation in lieu of the Water Tariff Adjustment claimed in the suit by SYABAS against the Selangor State Government under the SYABAS Concession Agreement is RM1, million for the period from 1 January 2009 to 31 March Total Water Tariff Adjustment for the period from 1 January 2009 to 31 December 2012 amounted to RM2, million. To date, SYABAS is still unable to make full payment for water purchases from the four water treatment operators, namely PNSB, Konsortium ABASS, SPLASH and Konsortium Air Selangor Sdn Bhd. The cashflow problem also reduces the financing capacity of SYABAS to carry out its Capital Expenditure ( CAPEX ) programme to reduce the Non Revenue Water ( NRW ) and rehabilitate the old distributions assets. The Selangor State Government s decision in 2008 to freeze the SYABAS CAPEX programme (which includes replacement of old and aging pipes and others) until the Proposed Restructuring is accepted and implemented, remained unchanged and continued into With a substantial part of the planned programmes withheld for so many years, this has restricted SYABAS from providing quality service to the consumers and has resulted in numerous and frequent pipe bursts and water supply interruptions and has jeopardised SYABAS efforts to improve the water distribution services to the consumers. At present, only ad hoc initiatives classified as extremely critical works are approved by the National Water Services Commission [Suruhanjaya Perkhidmatan Air Negara] ( SPAN ). Besides replacement of old and aging pipes and others, SYABAS is also not able to further reduce the NRW level due to such restriction. Annual Report 2012 Puncak Niaga Holdings Berhad

13 In May to July 2012, the water crisis in Hulu Langat areas affecting 209,678 consumer accounts was due to insufficient treated water. The crisis was temporarily resolved with the completion of the second stage distribution work in relation to the new Sg Labu WTP. Nevertheless, water supply has remained at a crisis state since July 2012 with the reserve margin standing at below 3% most of the time and resulting in occasional water interruptions in several areas. The critical water supply situation will persist and continue into 2013 with an increase in demand but limited additional distributable treated water capacity. The water crisis at Gombak and Kuala Lumpur Districts at the beginning of 2013 was due to the technical problems at the pump house in Wangsa Maju resulting from many years of continuous overloading beyond its original design capacity. The crisis was finally resolved in mid January 2013 after the installation of bypass pipes with approval of the authorities. The authorities had in March 2012 approved SYABAS previous proposal to build an additional pump house at Wangsa Maju and the construction of the pump house is currently undertaken by the Selangor State Government. The water crisis had caused considerable hardship to the affected consumers and these circumstances underline the vital need for the water woes in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya to be resolved swiftly. 11 Executive Chairman s Message The Selangor State Government on 4 December 2012 indicated its intention to terminate the Operation and Maintenance Agreement dated 7 March 2008 in respect of the Sg Sireh WTP between PNSB and the Selangor State Government, and the Novation Agreement dated 7 March 2008 in respect of the Sg Sireh WTP between PNSB, SYABAS and the Selangor State Government. On 18 February 2013, PNSB instituted legal proceedings against the Selangor State Government on the matter. The suit is currently ongoing. The Group s Oil & Gas unit has successfully completed contracts with Kebabangan Petroleum Operating Company Sdn Bhd ( KPOC ), Newfield Peninsula Malaysia Inc ( Newfield ), Exxonmobil Exploration and Production Malaysia Inc ( Exxonmobil ) and Hess Exploration & Production Malaysia BV ( Hess ) in GOM Resources Sdn Bhd s ( GOM Resources ) major contract, the Integrated Transportation and Installation of Offshore Facilities Package A : DLB 264 has been extended for one more year in 2013 with a further option to extend in Aside from its core business of transportation and installation, GOM Resources will have to explore other viable areas of business within the Oil & Gas sector and continue to look out for potential project acquisitions, both domestically and overseas. ACHIEVEMENTS None of the challenges we faced during the year dented the Group s determination to fulfil its commitments to its various stakeholders and above all to consumers. I am therefore pleased to record that the Group exceeded all of its KPIs. The Group had provided a good supply of clean, treated water and had continued to manage the ever-increasing demand for water within Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. Moreover, despite the financial constraints affecting the whole of our concession business, significant sums were invested in upgrading the Water Treatment Plants ( WTP ) we operate. Other critical works and strategic programmes were also prioritised, including Research and Development ( R&D ) and Information and Communication Technology ( ICT ). In the Oil & Gas sector, the Group performed up to expectation and was awarded by KPOC the Integrated Transportation and Installation of Offshore Facilities contract for one more year in 2013 with an extension option of one year. Across all of its water treatment operations, PNSB has rigorously adhered to the Integrated Management System covering ISO 9001:2008 (Quality), ISO (Environment) and OHSAS 18001:2007 (Safety) Management Systems. The three Regional Offices of PNSB also adhered to the Integrated Management System with ISO 9001:2008 (Quality). Puncak Niaga Holdings Berhad Annual Report 2012

14 12 Executive Chairman s Message Three SYABAS districts were accredited with OHSAS 18001:2007 (Health and Safety). In addition, SYABAS Human Resources & Administration Department was awarded with ISO 9001:2008 certification in For Oil & Gas operations, GOM Resources adhered to the Integrated Management System covering ISO 9001:2008 (Quality), ISO 14001:2004 (Environment), OHSAS 18001:2007 (Occupational, Health and Safety) and ISO/TS29001:2010 (Petroleum, Petrochemical and Natural Gas Industries Sector Specific Quality) Management Systems. CORPORATE DEVELOPMENTS Oil & Gas The Oil & Gas sector is a massive potential growth area for the Group and our initial foray into the sector has met with commendable success in its infant stage as, after just one full year of operation, GOM Resources results had a positive impact on the Group s results, contributing approximately 20.8% of the Group s revenue in The Oil & Gas sector is a massive potential growth area for the Group and our initial foray into the sector has met with commendable success in its infant stage The Group s Oil & Gas capabilities currently involve construction and subsea services and marine support services to the offshore Oil & Gas industry in Malaysia. The Oil & Gas unit is exploring many other areas, both mid-stream and upstream and is looking to expand locally and overseas. During the year, GOM Resources set up the Exploration & Production Division to evaluate business development opportunities, locally and overseas. Looking forward, the Group is confident and hopeful of clinching more Oil & Gas projects to achieve its Vision to become a significant player in this sector and to constantly enhance the sustainability of the Group s businesses. Water Related Construction Projects The Group s ongoing water related construction projects in Sarawak are coming to an end, with total completion of three (3) remaining work orders expected by June The Group is working towards securing more new water related construction contracts in There is undoubtedly a potential growth area for PNHB not only in construction but also in operation and maintenance. In the year ahead, we will continue to dedicate our resources to business development efforts in this area. Overseas Expansion Asia is expected to be the world s next growth centre. Such growth is creating a substantial increase in demand for resources in both the consumer and the industrial markets, which in turn offers the Group tremendous opportunities for business expansion. (Source: The European Magazine January-February 2013) The Group has amassed considerable experience of successfully managing large scale water projects in India and China, and this experience will stand us in good stead as we bid for further contracts in water/wastewater and water/wastewater related projects across developing Asia. In China, we continue to make good with our current projects. We are also actively exploring fresh potential investments in other provinces of China. Meanwhile in ASEAN, we are looking into the possibility of bidding for water/wastewater and water/wastewater related projects via Government-to-Government arrangements and joint ventures with reliable local partners. For this reason, in 2013, PNHB s wholly owned subsidiary, Puncak Oil & Gas Sdn Bhd ( POG ) is in the process of setting up a branch office in Turkmenistan and incorporated a wholly owned limited company in The Republic of the Union of Myanmar, namely GOM Annual Report 2012 Puncak Niaga Holdings Berhad

15 Resources Limited, with the objective to undertake potential business of transportation and installation of pipelines and other services for the onshore and offshore operations of the Oil & Gas industry. Corporate Exercise In conjunction with PNHB s fund raising exercise and to reward the existing PNHB shareholders for their continued support in the Company, on 27 September 2012, PNHB announced the proposed issue of up to 40,910,609 free Warrants in PNHB ( Warrants ) on the basis of one Warrant for every ten existing ordinary shares of RM1.00 each in PNHB held ( PNHB Shares ) ( Proposed Free Warrants Issue ), and a five-year Redeemable Convertible Secured Sukuk Ijarah ( Convertible Ijarah Sukuk ) of up to RM million in nominal value ( Proposed Convertible Ijarah Sukuk Issue ) ( The Proposals ). The Proposals will enable shareholders to participate in a PNHB derivative without cost as well as giving them an opportunity to increase their equity participation in PNHB. The Proposals will also further strengthen PNHB s capital base and market capitalisation, enabling PNHB to raise funds for working capital purposes without incurring financing cost and to raise funds at fixed and reasonable cost to pursue potential acquisitions and/or investment opportunities. 13 Executive Chairman s Message The Proposals had been approved by the relevant authorities and an Extraordinary General Meeting will be convened by the Company in end May 2013 to seek the shareholders approval for the Proposals. CORPORATE & ENVIRONMENTAL SOCIAL RESPONSIBILITY Corporate Responsibility ( CR ) within PNHB is guided by a CR strategy which reflects the Group s Vision to be a Leading Regional Integrated Water, Wastewater And Environmental Solutions Provider And To Emerge As A Significant Player In The Oil And Gas Sector. In day-to-day operations, we continue to increase shareholder value and respond to societal needs. We develop the nation by providing a new generation of innovative services and solutions. These efforts really make a difference to our communities, the world today and future generations. PNHB believes that everyone deserves access to clean water. We are committed to delivering outstanding quality and 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. It is part of the Group s commitment to deliver reliable and trusted quality service. Our Research & Development Centre has collaborated with the Ministry of Defence under the Penjodohan Initiatif Kementerian Pertahanan dengan Menteri Tempatan and successfully developed a mobile water purification prototype JERNIH that is able to meet the demand of a population of 500, tapping from the Army experience in Bamyan, Afganistan. JERNIH was showcased at the recently concluded Langkawi International Maritime & Aerospace Exhibition (LIMA) 2013, held in Langkawi from 26 March 2013 to 30 March 2013 and received good reviews from visitors to LIMA Our stakeholders can significantly affect our business viability. We continue to prioritise the importance of actively engaging with our stakeholders to understand their views and concerns. Our effective stakeholder engagement including visits, philanthropic activities, educational programmes, awareness sessions and participations in various events have helped us to shape our business. I am pleased to witness the Group s active role in its mission in assisting flood victims in Selangor, Perak and Terengganu which was extended to help the needy. As a good corporate citizen, PNHB continues to assist the Government in addressing current issues concerning the water shortage by introducing educational sessions for the public to provide accurate information on water status and ways to save water. Puncak Niaga Holdings Berhad Annual Report 2012

16 14 Executive Chairman s Message We continue to integrate CR into every aspect of our business. PNSB, SYABAS and GOM Resources recognise the importance of providing staff with an adequate work-life balance. Our Program Bantuan Bekalan Air Tabung Budi was launched in 2010 to help the poor, homeless, single parents, the disabled and those in need. Contributions received from PEKA members, employees of SYABAS/PNSB, individuals and corporate bodies are used to help these people. Tabung Budi continues to finance payment of water bill arrears, water connection charges, repair of water pipes and meter stands; installation of water supply for new water account, installation and reconnection charges on water supply to recipients residences and payment of monthly bills. In 2012, Tabung Budi held 40 events covering 10 districts namely, Klang, Petaling, Kuala Lumpur, Hulu Selangor, Kuala Selangor, Sepang, Gombak, Kuala Langat, Hulu Langat and Sabak Bernam. PNHB is acutely aware of the importance of protecting the natural environment. The Group is wholeheartedly committed to the preservation and conservation of the environment, especially rivers, which are the main sources of raw water. PNHB s Environmental Surveillance section continuously monitors environmental conditions in the catchment areas that provide us with raw water. PNHB runs a variety of programmes, the most noteworthy being the River Rescue Brigade (Briged Penyelamat Sungai) ( BPS ), to promote a sense of environmental responsibility amongst the general public. This programme teaches students from primary/secondary/tertiary schools in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya about the vital importance of protecting the environment. During the United Nations Climate Change Conference ( COP15 ) in Copenhagen in December 2009, Prime Minister YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak announced an initiative to achieve a 40% reduction in carbon and other greenhouse gas ( GHG ) emissions by In 2012, we implemented various green initiatives and I am proud to announce that our operational footprint has improved as a result. Our focus for 2013 will be to support our transformation into a next-generation water and water related specialist and a significant player in oil & gas industry with a strong focus on sustainability. This includes continuous innovation and service excellence; sustaining a high level of commitment; sustaining shareholders confidence; and enhancing PNHB s reputation in the marketplace by responding to societal needs. CORPORATE GOVERNANCE PNHB operates a rigorous corporate governance regime that aims to ensure a fair deal for all its stakeholders and is imbued with the principles of transparency, integrity and accountability. Our objective is not only to maintain the highest ethical standards but to build a business which is sustainable in the long term and which contributes significantly to environmental protection, wealth-creation and nation-building. Recognising the importance of the role of Directors of public listed companies, the Malaysian Code on Corporate Governance 2012 ( MCCG 2012 ) was launched in 2012 with the first reporting on compliance with MCCG 2012 to be by public listed companies whose financial year end is 31 December The focus of MCCG 2012 is to strengthen the structure and composition of the Boards of Directors of public listed companies in Malaysia. PNHB has ensured compliance where possible with the recommendations as provided by MCCG 2012 as detailed in the Statement On Corporate Governance, set out on pages 174 to 195 of this Annual Report; including amendments to the Listing Requirements of the Main Market of Bursa Malaysia Securities Berhad. PNHB is committed to demonstrating transparency, integrity, accountability and achieving sustainability across its operations for the benefit of our customers, shareholders, stakeholders and business associates. Annual Report 2012 Puncak Niaga Holdings Berhad

17 ACCOLADES AND ACCOMPLISHMENTS PNHB received two awards from the Federation of Public Listed Companies Berhad ( FPLC ), namely, the Top 10 Companies Highest Sponsorship Recognition Award 2010/ CSR in Sport Activities and the Top 10 Companies Most Active in Professional Development Participation in Seminars and Conferences by FPLC in June On 6 May 2012, SYABAS achieved the Anugerah Promosi Gaya Hidup Sihat Melalui Sukan for the Anugerah Industri Sukan Negara Executive Chairman s Message PNSB received a total of 25 Innovative & Creative Circle ( ICC ) Awards in 2012, surpassing the previous year s performance. At the Mini ICC Convention 2012 organised by the Malaysian Productivity Corporation ( MPC ), on 8 May 2012, six PNSB teams won four Gold Awards and two Silver Awards. The Regional ICC Convention 2012 held in June and July 2012 saw 12 PNSB teams brought home nine Gold Awards and three Silver Awards. At the National ICC Convention 2012 held from October 2012, three teams earned 2-Star Gold Awards and three teams won 3-Star Gold Awards. PNSB s R.O.T. II Team was one of the top 10 teams from Service Sector and they will participate in the International Convention on Quality Creative Circle ( ICQCC ) 2013 in Taiwan. PNSB s AIM Team earned the 3-Star Gold Award at the ICQCC 12 on 16 October On 11 October 2012, PNSB achieved the Bronze Award for the 12 th Malaysia HR Awards 2012 Employer of Choice. On 27 October 2012, PNHB received the Socrates International Award in Oxford, United Kingdom. PNSB s Central Laboratory s/ssp2 WTP Laboratory s high standards for training, health and safety earned them the Institut Kimia Malaysia ( IKM ) Laboratory Excellence Award 2012 on 30 November OIL & GAS SAVING TIPS Aggressive driving wastes gas In 2012, the Sg Selisek, Kalumpang, Sg Batu, Bukit Tampoi, Wangsa Maju and SSP2 WTPs won Gold (Class I) Awards from the Malaysian Society for Occupational Safety & Health ( MSOSH ), while the Sg Dusun and Ampang Intake WTPs received Gold (Class II) Awards from MSOSH. The National Council of Occupational Safety & Health ( NCOSH ) honoured the Sg Langat WTP with a Gold Trophy Award under the water utility sector on 30 October SYABAS also achieved MSOSH recognition in Seven districts, namely Kuala Lumpur, Hulu Langat, Petaling, Gombak, Sabak Bernam, Hulu Selangor and Kuala Selangor obtained Gold (Class I) Awards. Three districts, Kuala Langat, Sepang and Klang, earned the Gold (Class II) Awards. PROSPECTS Economic Prospects Mainly due to the Eurozone crisis, the debt problem in Japan and the US, and the slowdown in China, the global economy is not expected to be in prosperous shape until at least Indeed, in 2013, activity is forecast to remain tepid in many economies. Nevertheless, the International Monetary Fund is predicting a slight rebound for the global economy to 3.6% growth this year. The recovery is expected to limp along in the major advanced economies, though growth should remain at a fairly healthy level in many emerging markets and developing economies. (Source: International Monetary Fund World Economic Review 2012 and World Economic Outlook 2013.) Puncak Niaga Holdings Berhad Annual Report 2012

18 16 Executive Chairman s Message In 2013, the Malaysian economy is expected to strengthen further and to grow at a faster rate of 4.5% to 5.5% in support of improving exports and strong domestic demand. The external trade-related industries are anticipated to benefit from stronger global growth, particularly during the second half of the year. Domestic demand, meanwhile, is expected to grow by 5.6% and will remain the main engine of growth in 2013, underpinned by strong private sector expenditure. Private consumption is projected to expand 5.7% driven by higher disposable income arising from the improved employment outlook, firm commodity prices, and the wealth generated by the stable performance of the stock market stimulated by strong domestic economic activities. (Source: The Economic Report 2012/2013, Ministry of Finance, Malaysia.) Group Prospects The Group remains totally committed to supporting a Governmental restructuring of the water services sector in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya on a willing buyer willing seller basis. PNHB maintains its conviction that such restructuring must be beneficial to all parties, and especially to the public at large. In the environmental sector, the Group is actively looking into the provision of solutions to the sewerage and solid waste sectors in Malaysia and overseas. The Group is also seeking opportunities in the construction sector. Meanwhile, initial successes in the Oil & Gas arena augur well for the Group s future. The Group is hopeful to clinch more Oil & Gas projects and to invest in or acquire other Oil & Gas assets to further expand its business in line with its Vision to become a significant player in this field locally and overseas. Looking ahead, the Group is thus determined to continue in its quest to achieve sustainable long-term growth by continuous, prudent expansion into niche areas within the water, wastewater, Oil & Gas and construction sectors. APPRECIATION At the end of another year of major and positive achievements in the face of considerable challenges, I would like to record, on behalf of the Board, our profound appreciation of the skills, dedication and teamwork consistently displayed by our Management and staff, which made such a tremendous contribution to the Group s ongoing development and growth. I would also like to convey our thanks to our customers, investors, financiers and business partners for their unfailing support; and to the Government and the various government authorities, agencies and non-governmental organisations for the guidance and cooperation they provided during the year. Finally, I wish to express my appreciation of the exceptional energy and commitment so consistently displayed by my colleagues on the Board of Directors and by the Group s Management team who have kept the Group on track with its Vision. Looking forward, despite the many challenges in anticipation, I am convinced that in 2013, PNHB will once again, with full commitment and support from the Board of Directors, Management team, staff, the shareholders and the stakeholders, continue to fulfil our obligations by delivering the highest levels of service to our customers, protecting the environment, and achieving the results that our stakeholders so rightly expect. TAN SRI ROZALI ISMAIL Executive Chairman 29 April 2013 Annual Report 2012 Puncak Niaga Holdings Berhad

19 PUNCAK NIAGA HOLDINGS BERHAD ( PNHB ) CONTINUES TO DELIVER TO THE EXPECTATION OF ITS STAKEHOLDERS ON TRANSPARENCY AND COMPREHENSIVE DISCLOSURES. WE CONTINUE TO REPORT ON OUR PERFORMANCES IN THE TRIPLE-BOTTOM-LINE: ECONOMIC, ENVIRONMENT AND SOCIAL ASPECTS. OUR INTEGRATED REPORTING WHICH INCLUDES THE FINANCIAL AND OPERATIONS ASPECTS OF OUR BUSINESS, AND THE FULL REPORT PROVIDES A CLEAR, COMPREHENSIVE AND TRANSPARENT REPRESENTATION OF PNHB S PERFORMANCE TO OUR STAKEHOLDERS. 17 About This Report Our integrated reporting creates value over the short, medium and long term. This Report comprehensively illustrates the Group s performances and achievements in financial and non-financial areas. We have endeavoured to present our data in the most accurate manner possible, using quantitative indicators where relevant. We aim to provide detailed disclosures on those areas which are deemed to be material. This information includes areas of our business which have a great influence on our businesses and a high level of potential impact on our stakeholders. The Corporate Social Responsibility ( CSR ) section of this Report provides information on PNHB s impacts on the environment and community in which it operates and how the environment and community impact its businesses. The principle framework used is the Global Reporting Initiatives ( GRI ), GRI G3.1 Guidelines. This Report has been prepared to adhere to an application level of A. Other guidelines include the Bursa Malaysia Securities Berhad CSR Guidelines as well as the ISO Guidance on Social Responsibility. The GRI G3.1 Content Index which can be found on pages 424 to 430 of this Annual Report serves as an interactive navigation tools and reflects our disclosure on each indicator outlined by the GRI. We will continue to improve the level of disclosures in our future Reports. In order to quantify the progression of our CSR sustainability milestones, the achievements in 2012 have been compared against previous years. Certain regulatory performance data contained in PNHB s 2012 Annual Report is subject to regulatory audit. 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 2012 Coverage: PNHB Group including all of its subsidiaries, local and overseas Date of Publication: 4 June 2013 Puncak Niaga Holdings Berhad Annual Report 2012

20 18 OUR COMPANY Corporate Profile 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 OFFSHORE INSTALLATION CONTRACT WORK SPECIFICALLY IN THE AREAS OF INTEGRATED TRANSPORTATION AND INSTALLATION OF OFFSHORE FACILITIES 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 2012, PNHB s market capitalisation stood at RM482.7 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 the Securities Commission. OUR CORE BUSINESS AND CAPABILITIES Our subsidiary, Puncak Niaga (M) Sdn Bhd ( PNSB ) which holds five water treatment concessions with the Selangor State Government, is the nation s second largest water supply concessionaire, operating, managing and maintaining 29 water treatment plants with a combined capacity of 1,930 million litres per day. PNSB undertook the finance, design, construction, operation, management and maintenance of the Sungai Selangor Phase 2 Water Treatment Plant with a design capacity of 950 million litres per day at a cost of RM1.28 billion which was completed on 1 January 2001, one year ahead of schedule. Subsequently, PNSB completed the Wangsa Maju Water Treatment Plant with a design capacity of 45 million litres per day at a cost of RM122.0 million in a record time of six months in July 1998, during the water crisis. These early completion of projects clearly exemplifies the PNHB Group s excellent capabilities in managing and undertaking large-scale water supply projects in Malaysia. Under a separate concession agreement with the Federal Government and the Selangor State Government, our other subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) supplies treated water to consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya to a population of 7.5 million including industrial and commercial users, with a total registration of million consumer accounts as at 31 December SYABAS also undertakes the maintenance of 26,425 km of water pipes, 1,527 service reservoirs, elevated water tanks and suction tanks and 589 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 ( Sino Water ), a company incorporated in Singapore which focuses primarily on potential markets in China. PNHB had on 15 December 2010 further increased its stake in Sino Water to 98.65%. Sino Water 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. 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. Annual Report 2012 Puncak Niaga Holdings Berhad

21 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 ( 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 and 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. 19 Corporate Profile On 9 January 2013, PNHB s wholly-owned subsidiary, POG had incorporated a wholly-owned limited company in The Republic of the Union of Myanmar ( Myanmar ), namely, GOM Resources Limited to explore potential business opportunities in Myanmar. On 1 March 2013, Sino Water s wholly-owned subsidiary, Sino Water Environmental Consultancy (Shanghai) Co Ltd established a Liaison Office in Chengdu, Sichuan Province, China to explore potential business opportunities in Sichuan Province. 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 at Customer Relationship Management & Contact Centre Association of Malaysia Award 2010 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 businesses 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 5,595 school children and 281 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 sectors such as the oil & gas sector, and competencies within Malaysia and undertaking projects in other countries such as India, China and the ASEAN countries. Puncak Niaga Holdings Berhad Annual Report 2012

22 20 Corporate Information BOARD OF DIRECTORS Yang Berbahagia Tan Sri Rozali Ismail Executive Chairman Yang Berbahagia Dato Ruslan Hassan Non-Independent Non-Executive Director Yang Berbahagia Dato Ir Lee Miang Koi 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 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 10 th Floor, Wisma Rozali No. 4, Persiaran Sukan Seksyen Shah Alam Selangor Darul Ehsan Tel : Fax : 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 : BRANCH OFFICES Kuala Terengganu Office 201B, Jalan Sultan Zainal Abidin Kuala Terengganu Terengganu Darul Iman Tel : Fax : Penang Office No. 12C, Jalan Todak 5 Pusat Bandar Seberang Jaya Perai, Pulau Pinang Tel : Sarawak Office Lot & Section 64, KTLD Jalan Mendu Kuching, Sarawak Tel : Fax : Sri Aman Site Office (Zone 1): 1 st Floor, Lot 440 Block 3, Jalan Council Sri Aman, Sarawak Tel : Fax : Sarikei Site Office (Zone 2): 1 st Floor, No. 82C Wisma CS Kua Jalan Masjid Lama Sarikei, Sarawak Tel : Fax : Sabah Office: No. 5, 1st Floor, Block A Lorong Plaza Permai 1 Alamesra, Sulaman Coastal Highway Kota Kinabalu Sabah Tel : Fax : SUBSIDIARY OFFICES MALAYSIA Puncak Niaga (M) Sdn Bhd s ( PNSB ) Office Wisma Rozali No. 4, Persiaran Sukan, Seksyen Shah Alam Selangor Darul Ehsan Tel : Fax : 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) Annual Report 2012 Puncak Niaga Holdings Berhad

23 Puncak Oil & Gas Sdn Bhd s Office Level 17, Tower 1 Etiqa Twins No. 11, Jalan Pinang Kuala Lumpur Wilayah Persekutuan Tel : Fax : info@puncakoil.com GOM Resources Sdn Bhd s Office Level 15, 16 & 17, Tower 1 Etiqa Twins No. 11, Jalan Pinang Kuala Lumpur Wilayah Persekutuan Tel : Fax : info@gomresources.com KGL Ltd. s Office c/o Lot 1, 2 nd Floor Wisma Siamloh Jalan Kemajuan Federal Territory of Labuan Tel : Fax : info@gomresources.com SINGAPORE 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 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 : Liaison Office Level 28, One Aerospace Center No. 7, Xin Guang Hua Street Jin Jiang District Chengdu People s Republic of China Tel : / 43/46/48 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 Town Yangxin County Shandong Province People s Republic of China Tel / Fax : 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 Tel / Fax : INDIA Corporate Information Puncak Niaga Infrastructures & Projects Private Limited No. 12, 7 th Main Road First Floor Kasturibai Nagar Adyar Chennai Tamil Nadu, India Tel : Fax : MYANMAR GOM Resources Limited c/o No. 79, Taw Win Road Dagon Township Yangon Myanmar Tel : / Fax : REPRESENTATIVE OFFICE VIETNAM 21 The Representative Office of Puncak Niaga Holdings Berhad 16F, Saigon Tower 29, Le Duan Street District 1, Ho Chi Minh City Saigon, Vietnam Tel : Fax : Puncak Niaga Holdings Berhad Annual Report 2012

24 DATE AND PLACE OF INCORPORATION 7 January 1997, Malaysia COMPANY NUMBER U AUDITORS Messrs Ernst & Young (AF 0039) TAX ADVISORS 22 Corporate Information 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 Lee Hishammuddin Allen & Gledhill Messrs Marcia Ng & Associates Messrs Skrine Messrs Soo Thien Ming & Nashrah 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 Bursa Malaysia Securities Berhad 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 Members: Yang Berbahagia Tan Sri Dato Hari Narayanan Govindasamy Yang Berbahagia Tan Sri Dato Seri Dr Ting Chew Peh Mr Ng Wah Tar Secretaries: Madam Tan Bee Lian Madam Lim Yew Heang 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: Mr Ng Wah Tar Madam Tan Bee Lian Madam Wong Ley Chan Tuan Haji Sonari Solor Cik Hayati Ab Wahab Secretary: Madam Johty Priyatharashani D/O Tiagarajah Annual Report 2012 Puncak Niaga Holdings Berhad

25 23 PNHB FACT SHEET as at 31 December 2012 PNHB Group Fact Sheet AUTHORISED SHARE CAPITAL RM1,300,000,000 PAID-UP SHARE CAPITAL RM411,142,895 (comprising 411,142,895 ordinary shares of RM1.00 each) GOM RESOURCES FACT SHEET as at 31 December 2012 Number of Barge vessel 1 SYABAS FACT SHEET as at 31 December 2012 PNSB FACT SHEET as at 31 December 2012 Number of SYABAS Consumer Accounts million Number of PNSB s 29 Water Treatment Plants Number of Water Treatment Plants 26 with ISO Certifi cations Maintenance of water pipes 26,425 km Number of service reservoirs, 1,527 elevated water tanks and suction tanks Number of pumping stations 589 GROUP MANPOWER AS AT 25 APRIL 2013 Category No. of Gender Race (In Malaysia) Race (Overseas) of Employees Personnel Male Female Malay Chinese Indian Others Malay Chinese Indian Management Executive 1, , Non-Executive 3,340 2, , Total 4,782 3,571 1,211 4, Grand Total 4,782 4,782 4,782 Puncak Niaga Holdings Berhad Annual Report 2012

26 24 LIST OF CORPORATE MEMBERSHIPS 1. Malaysian Water Association (MWA) Member since 1994 PNHB Group Fact Sheet 2. 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 Oil & Gas Service Council Member since Malaysia External Trade Development Corporation (MATRADE) Member since Arab-Malaysian Chamber of Commerce Member since EU-Malaysia Chamber of Commerce and Industry Member since 2012 Annual Report 2012 Puncak Niaga Holdings Berhad

27 MANPOWER ANALYSIS as at 25 April 2013 GROUP Breakdown by Job Category Breakdown by Gender 25 PNHB Group Fact Sheet 7% 23% 25% 70% 75% Management Executive Non-Executive Male Female MALAYSIA Breakdown by Job Category Breakdown by Race 7% 24% 2% 1% 5% 69% 92% Management Executive Non-Executive Malay Chinese Indian Others OVERSEAS Breakdown by Job Category Breakdown by Race 2% 1% 11% 6% 83% 97% Management Executive Non-Executive Malay Chinese Indian Puncak Niaga Holdings Berhad Annual Report 2012

28 26 Our Role In The Water Supply System RIVERS DAMS REGULATORY AUTHORITIES Manages river basin upstream beginning 3 nautical miles from the sea Oversees environment issues concerning rivers Flood control and river management Selangor Water Management Authority (LUAS) Department of Environment (DOE) Department of Irrigation and Drainage Malaysia (DID) Policy, Planning, Enforcement and Surveillance by Government Agencies OPERATORS 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 Aerator Coagulant Coagulation & Flocculation Tank Sedimentation Tank Raw Water Pump Filtration Tank Intake Filter Gallery Band Screen Grit Chamber Chlorine Sodium Silicoflouride Hydrated Lime National Water Services Commission (SPAN) WTP Operators in Selangor Puncak Niaga (M) Sdn Bhd (PNSB) Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (SPLASH) Konsortium ABASS Sdn Bhd Konsortium Air Selangor Sdn Bhd (KASB) Mixing Channel To River / Sludge Lagoons Clear Water Tank Treated Water Pump Balancing Reservoir Bulk Meters Water Supply Distributor for Selangor, Kuala Lumpur and Putrajaya Booster Station Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) Reservoir Water Tower Service Reservoir Ministry of Health (MOH) - water quality Consumers Water Meter (Condominium / Flat) Water Meter (Industrial / Factory) Water Meter (Office) Water Meter (Shopping Centre) Water Meter (Residential Home) Water Meter (Government / Institutional) Annual Report 2012 Puncak Niaga Holdings Berhad

29 JUL 8 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 ). 4 JAN PNHB was included in the KLSE Composite Index (now known as FTSE Bursa Malaysia Kuala Lumpur Composite Index). 9 APR Signing Ceremony of the Second Amendment to the Construction Cum Operation Agreement. 9 APR 1 DEC PNHB was included in the Morgan Stanley Capital International Standard Index. 19 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. 6 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. Milestones NOV PNHB was awarded the Anugerah Citra Laporan Tahunan 2001 by Dewan Bahasa dan Pustaka FEB PNHB received the Asiamoney Corporate Governance Poll 2002 Award for Best Corporate Governance Standards in the Utilities Sector in Malaysia. 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. 14 MAR 12 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. 8 NOV PNHB was honoured with the NACRA 2000 Industry Excellence Award for the Construction & Infrastructure Project Companies category. 26 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. 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. Puncak Niaga Holdings Berhad Annual Report 2012

30 Milestones 15 MAR Signing Ceremony of the Collaboration Agreement between Puncak Research Centre Sdn Bhd and DHI Water Environment Health Denmark. 1 JAN 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. 1 JAN YAB Dato Seri Dr Mohd Khir Toyo officiated the ceremony to mark the commencement of operations of SYABAS at SYABAS Headquarters. 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 OCT PNHB announced a capital repayment of up to RM million via a cash distribution to reward its shareholders. 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. 26 JUNE PNSB s Ekspedisi Menuju Puncak at Mount Kinabalu, Sabah. 14 NOV 14 NOV PNSB received an Honourable Mention for its River Rescue Brigade at the Prime Minister s Corporate Social Responsibility Awards 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). 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. 28 NOV 28 NOV Official Opening Ceremony of Wisma Rozali, Shah Alam, Selangor. 19 NOV PNHB was awarded the NACRA 2008 Industry Excellence Award for Main Board Construction & Infrastructure Project Companies Category. Annual Report 2012 Puncak Niaga Holdings Berhad

31 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. 14 JAN 14 JAN SYABAS launched PUSPEL on social networks, follow@puspel on Twitter and Facebook. 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 Milestones 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) APRIL Two of SYABAS teams were awarded Gold Awards at the Innovative & Creative Circle Central Region Mini Convention OCT SYABAS/PUSPEL was awarded the Best Emerging Contact Centre Award 2010 at the Customer Relationship Management & Contact Centre Association of Malaysia Award NOV The Official Launch of SYABAS Operation Command Center ( OCC ). 8 NOV PNHB was the winner for Integrated Reporting in an Annual Report for ACCA Malaysia Sustainability Reporting Awards (MaSRA) OCT 22 FEB 22 FEB Signing Ceremony of the Memorandum of Understanding ( MOU ) with NIOSH for Safety Card Training Modules SYABAS-NIOSH. 23 MAY 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 ( GOM Resources ) and KGL Ltd. ( KGL ) ( Acquisitions ). The Acquisitions will enable Puncak Group to make further forays and strengthen its presence as a significant company in the oil and gas industry. 12 SEP PNSB s ICC Tag Team was awarded the Excellent Award at the International Convention on Quality Creative Circle 2011 Award. 14 SEP PNHB was awarded the Malaysia 1000 Industry Excellence Award Water Sector at the launching ceremony of 5th Edition Malaysia SEP 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. 4 OCT PNHB received a Commendation for Integrated Reporting of Annual Report at the ACCA Malaysia Sustainability Reporting Awards ( MaSRA ) OCT PNSB was awarded the 11th Malaysia HR Awards 2011 Employer of Choice Silver Award. Puncak Niaga Holdings Berhad Annual Report 2012

32 30 Puncak News Annual Report 2012 Puncak Niaga Holdings Berhad

33 31 Puncak News Puncak Niaga Holdings Berhad Annual Report 2012

34 32 Corporate Achievements MINI INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC Sepakat Team on 8 May 2012 MINI INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC U Suker Team on 8 May 2012 MINI INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC Smart Response Team on 8 May 2012 MINI INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC AL-QEMI Team on 8 May 2012 MINI INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC 1 Wangsa Team on 8 May 2012 MINI INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC OMIT Team on 8 May 2012 Anugerah Industri Sukan Negara 2012 Promosi Gaya Hidup Sihat Melalui Sukan awarded to SYABAS on 6 May 2012 NATIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: 3-Star Gold Award awarded to PNSB s ICC R.O.T II Team on October 2012 NATIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: 3-Star Gold Award awarded to PNSB s ICC U Suker Team on October 2012 NATIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: 3-Star Gold Award awarded to PNSB s ICC TAG Team on October 2012 NATIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: 2-Star Gold Award awarded to PNSB s ICC Smart Response Team on October 2012 NATIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: 2-Star Gold Award awarded to PNSB s ICC AL-QEMI Team on October 2012 NATIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: 2-Star Gold Award awarded to PNSB s ICC Tenaga Tengah Team on October 2012 Annual Report 2012 Puncak Niaga Holdings Berhad

35 33 Corporate Achievements INTERNATIONAL CONVENTION ON QUALITY CREATIVE CIRCLE Star Gold awarded to PNSB s ICC AIM Team on 16 October 2012 MALAYSIAN AYSIA AN SOCIETY FOR OCCUPATIONAL LS SAFETY AND HEALTH ( MSOSH ) AWARD ON 6 JULY 2012: MSOSH Gold (Class I) Award - SSP2 WTP - Wangsa Maju WTP - Bukit Tampoi WTP - Sg Batu WTP - Kalumpang WTP - Sg Selisek WTP MSOSH Gold (Class II) Award - Sg Dusun WTP - Ampang Intake WTP REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC AIM Team on June 2012 REGIONAL INNOVATIVE &CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC Smart Response Team on June 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC QI Team on June 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC R.O.T II Team on July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC U Suker Team on July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC TAG Team on July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC AL-QEMI Team on June 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC Tenaga Tengah Team on 4 5 July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Gold Award awarded to PNSB s ICC 3EQ Team on 4 5 July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC Sepakat Team on July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC HR Crew Team on July 2012 REGIONAL INNOVATIVE & CREATIVE CIRCLE (ICC) CONVENTION 2012 Malaysian Productivity Corporation: Silver Award awarded to PNSB s ICC D Kristal Team on June 2012 Puncak Niaga Holdings Berhad Annual Report 2012

36 34 Corporate Achievements IKM Laboratory Excellence Award awarded to PNSB s Central Laboratory/ SSP2 WTP Laboratory on 30 November 2012 NATIONAL COUNCIL OF OCCUPATIONAL SAFETY & HEALTH AWARD Gold Trophy Award under water utility sector awarded to Sg Langat WTP on 30 October th Malaysia HR Awards 2012 Employer of Choice Bronze Award awarded to PNSB on 11 October 2012 Socrates International Award awarded to PNHB on 27 October 2012 Federation eration of Public Listed Companies Berhad ( FPLC ) Top 10 Companies Highest Sponsorship Recognition Award 2010/ CSR in Sport Activities awarded to PNHB on 19 June 2012 The 1 st Malaysia Achievement Awards 2012 Special Individual Achievement Category awarded to YBhg Tan Sri Rozali Ismail on 23 February 2012 MALAYSIAN SOCIETY FOR OCCUPATIONAL SAFETY AND HEALTH ( MSOSH ) AWARD ON 6 JULY 2012: MSOSH OSH Gold (Class I) Award - SYABAS Kuala Lumpur District - SYABAS Hulu Langat District - SYABAS Petaling District - SYABAS Gombak District - SYABAS Sabak Bernam District - SYABAS Hulu Selangor District - SYABAS Kuala Selangor District MSOSH OSH Gold (Class II) Award - SYABAS Kuala Langat District - SYABAS Sepang District - SYABAS Klang District FPLC Recognition Award Top 10 Companies Most Active in Professional Development Participation in Seminars and Conferences by FPLC awarded to PNHB on 19 June 2012 Annual Report 2012 Puncak Niaga Holdings Berhad

37 35 INVESTMENT HOLDING Corporate Structure 100% PUNCAK NIAGA (M) SDN BHD operation, maintenance, management, construction, rehabilitation and refurbishment of water treatment facilities 100% PUNCAK OIL & GAS SDN BHD offshore logistics service provider and marine management 100% IDEAL WATER RESOURCES SDN BHD ceased operation 100% UNGGUL RAYA (M) SDN BHD ceased operation 70% SYARIKAT BEKALAN AIR SELANGOR SDN BHD supply & distribution of treated water within Selangor and the Federal Territories of Kuala Lumpur & Putrajaya 100% GOM RESOURCES SDN BHD offshore installation contractor for integrated transportation & installation of offshore facilities 100% GOM RESOURCES LIMITED dormant 100% KGL LTD. offshore leasing of vessels on bareboat basis 100% PERBADANAN URUS AIR SELANGOR BERHAD ceased operation 100% PUNCAK RESEARCH CENTRE SDN BHD research & development and technology development for water, wastewater and environment sectors 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% 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 100% PUNCAK SERI (M) SDN BHD dormant 100% PUNCAK NIAGA (INDIA) SDN BHD dormant 100% NS WATER SYSTEM SDN BHD dormant 100% PUNCAK NIAGA INFRASTRUCTURES & PROJECTS PRIVATE LIMITED carry out activities of infrastructures, constructions and other projects in India 91.94% LUWEI (PINGDINGSHAN) WATER CO LTD treatment and distribution of water and related services 83.99% LUANCHENG DAYU WATER SUPPLY CO LTD treatment and distribution of water and related services ASSOCIATE COMPANY 50% PURNAMA PERSADA SDN BHD dormant ASSOCIATE COMPANY 40% OASIS WATER RESOURCES SDN BHD dormant Puncak Niaga Holdings Berhad Annual Report 2012

38 36 Organisation Structure - PNSB BOARD OF DIRECTORS EXECUTIVE CHAIRMAN YBhg Tan Sri Rozali Ismail SPECIAL FUNCTIONS DIV EXECUTIVE DIRECTOR YBhg Datuk Mohd Yunus Mohd Amin MANAGING DIRECTOR YBhg Dato Syed Danial Syed Ariffin FINANCE DIV CORPORATE FINANCE DIV BUSINESS DEVELOPMENT DIV HUMAN RESOURCES & ADMINISTRATION DIV EXECUTIVE DIRECTOR Madam Wong Ley Chan EXECUTIVE DIRECTOR Mr Ng Wah Tar EXECUTIVE DIRECTOR YBhg Dato Nasir Khan Illadad Khan EXECUTIVE DIRECTOR Puan Faridatulzakiah Mohd Bakhry GENERAL MANAGER Vacant CONTRACT & PROCUREMENT DEPT SENIOR GENERAL MANAGER Puan Hafizah Ahmat INFORMATION TECHNOLOGY DEPT GENERAL MANAGER Encik Azlan Shah Tan Sri Rozali FOOD & BEVERAGE DEPT SENIOR MANAGER Encik Hamzah Awang Kechik INSURANCE DEPT SENIOR MANAGER Encik Shahrin Abd Karim FINANCE & ACCOUNTS DEPT (TREASURY, AR & AP) ASSISTANT GENERAL MANAGER Encik Mohammad Shahree Shamsuddin FINANCE & ACCOUNTS DEPT (FINANCIAL ACCOUNTING) ASSISTANT GENERAL MANAGER Madam Winnie Chia Li Koon COMPENSATION & BENEFITS DEPT ASSISTANT GENERAL MANAGER Encik Hairulizam Muhamad Kastawi CORPORATE FINANCE DEPT ASSISTANT GENERAL MANAGER Mr Nicholas Chew Keng Meng BUSINESS DEVELOPMENT DEPT ASSISTANT GENERAL MANAGER Encik Helmi Faisal Fuad MANPOWER PLANNING & RECRUITMENT DEPT SENIOR MANAGER Puan Aida Yuhana Zainul Ariff INDUSTRIAL RELATIONS DEPT SENIOR MANAGER Vacant HUMAN CAPITAL DEVELOPMENT DEPT SENIOR MANAGER Vacant PROTECTIVE SERVICES DEPT GENERAL MANAGER Vacant PROPERTY MANAGEMENT DEPT SENIOR MANAGER Vacant ADMINISTRATION DEPT SENIOR MANAGER Vacant Annual Report 2012 Puncak Niaga Holdings Berhad

39 37 Note: and DIV denote Division and DEPT denote Department/Centre and SECT denote Section denotes WTP Operation denotes Region Organisation Structure - PNSB CHIEF OPERATING OFFICER Ir Tan Hui Kuan CORPORATE SERVICES DIV STRATEGIC RESOURCE & PUBLIC RELATIONS DIV OPERATION & MAINTENANCE DIV ENGINEERING/ PROJECT DEVELOPMENT DIV EXECUTIVE DIRECTOR Madam Tan Bee Lian EXECUTIVE DIRECTOR YBhg Datuk Dr Muzahet Masruri EXECUTIVE DIRECTOR Tuan Haji Abd Rashid Abd Satar EXECUTIVE DIRECTOR Ir Ausamah Darwish Mohd Daud 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 Vacant STRATEGIC RESOURCE CENTRE ASSISTANT GENERAL MANAGER Puan Raja Rozaila Raja Azman HEALTH, SAFETY, ENVIRONMENTAL & QUALITY MANAGEMENT DEPT GENERAL MANAGER Encik Johari Pawanchik HEALTH, SAFETY, QUALITY & MANAGEMENT SECT MANAGER Vacant WATER QUALITY & RESEARCH SECT SENIOR MANAGER Madam Teh Yeok Sien OPERATION & MAINTENANCE DEPT ASSISTANT GENERAL MANAGER Tuan Haji Hussin Masrin TECHNICAL SUPPORT SECT SENIOR MANAGER Vacant PROCUREMENT SECT MANAGER Vacant RESEARCH & DEVELOPMENT (R&D) CENTRE MANAGER Encik Aminuddin Ismail WTP OPERATION NORTHERN REGION & SSP II ASSISTANT GENERAL MANAGER Ir Abdul Samad Sulaiman LOCAL PROJECT DEPT GENERAL MANAGER Tuan Syed Badli Shah Syed Mansoor INTERNATIONAL PROJECT DEPT GENERAL MANAGER Ir Yong Onn Fatt SARAWAK OFFICE SENIOR PROJECT MANAGER Mr Chai Ming Lu DAM SECT MANAGER Encik Jaffry Rabu CENTRAL REGION SENIOR MANAGER Encik Ismail Hassan SOUTHERN REGION SENIOR MANAGER Encik Zairi Zainuddin Puncak Niaga Holdings Berhad Annual Report 2012

40 38 Organisation Structure - SYABAS BOARD OF DIRECTORS EXECUTIVE CHAIRMAN YBhg Tan Sri Rozali Ismail CHIEF EXECUTIVE OFFICER 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 INTERNAL AUDIT DEPT SENIOR GENERAL MANAGER Cik Hayati Ab Wahab SECRETARIAL DEPT ASSISTANT GENERAL MANAGER Madam Lau Pueh Geok CORPORATE AFFAIRS DIV FINANCE DIV HUMAN RESOURCE & ADMINISTRATION DIV EXECUTIVE DIRECTOR Encik Abdul Halem Mat Som EXECUTIVE DIRECTOR Madam Karen Chan Yit Hwa EXECUTIVE DIRECTOR Tuan Haji Zainuddin Othman DISTRICT DEPT ASSISTANT GENERAL MANAGER Encik Mat Saman Mat Soom LEGAL & ENFORCEMENT DEPT GENERAL MANAGER Encik Armiy Rais Ahmad Sharifuddin CONTRACT & PROCUREMENT DEPT GENERAL MANAGER Encik Wan Abd Aziz Wan Muda CORPORATE COMMUNICATIONS & PUBLIC AFFAIRS DEPT ASSISTANT GENERAL MANAGER Ms Priscilla Alfred CUSTOMER SERVICE DEPT GENERAL MANAGER Encik Mohd Yaman Mohd Zin FINANCE & ACCOUNTS DEPT GENERAL MANAGER Ms Lee Chin Shin BILLING & RECOVERY DEPT GENERAL MANAGER Encik Shahruddin Ab Rahman HUMAN RESOURCE DEPT GENERAL MANAGER Encik Abd Latif Ismail ADMINISTRATION DEPT GENERAL MANAGER Encik Taufik Afendy Othman SECURITY DEPT ASSISTANT GENERAL MANAGER Encik Ismail Hj Ibrahim HEAD OF DISTRICT SECRETARY OF WORKS NORTHERN REGION CENTRAL REGION SOUTHERN REGION NORTHERN REGION CENTRAL REGION SOUTHERN REGION SABAK BERNAM ASSISTANT GENERAL MANAGER Puan Roslina Ab Lazid KUALA SELANGOR ASSISTANT GENERAL MANAGER Encik Kamarul Bahrain Ahmad HULU SELANGOR SENIOR MANAGER Encik Ahmad Fuad Zainudin GOMBAK SENIOR MANAGER Encik Mohamad Zahir Mohamad Hasan PETALING GENERAL MANAGER Encik Ahmad Suhaidin Ismail KUALA LUMPUR GENERAL MANAGER Mr Kelvin Siew Weng Hoe KUALA LANGAT ASSISTANT GENERAL MANAGER Encik Surani Naim HULU LANGAT ASSISTANT GENERAL MANAGER Encik Abdul Halim Ishak KLANG SENIOR MANAGER Encik Khairul Anuwar Ismail SEPANG MANAGER Ir Wan Amzari Abdul Halim SABAK BERNAM Encik Zairul Fahmie Mohd Tarmiji (Acting) KUALA SELANGOR Encik Ezarif Hasnol Basri (Acting) HULU SELANGOR Encik Muhammad Za im Zaki Che Mohd Nasir (Acting) GOMBAK Puan Sharifah Fairus Syed Jaafar PETALING Encik Yusran Yusof KUALA LUMPUR Encik Ahmad Sharul Ishak (Acting) KUALA LANGAT Encik Hafizulamin Yahya (Acting) HULU LANGAT Encik Muhammad Lokhman Che Ab Rahman (Acting) KLANG Encik Syamsul Kamal Tajudin SEPANG Encik Ezrul Azzim Wahid Annual Report 2012 Puncak Niaga Holdings Berhad

41 39 Note: and DIV denote Division and DEPT denote Department and SECT denote Section denotes Head of District denotes Secretary of Works denotes Region denotes District Organisation Structure - SYABAS CHIEF OPERATING OFFICER (COO) YBhg Dato Ir Lee Miang Koi TECHNICAL DEVELOPMENT DIV WATER QUALITY, ASSET & STRATEGIC RESOURCES DIV OPERATION DIV PLANNING DIV PROJECT & NON REVENUE WATER DIV EXECUTIVE DIRECTOR Ir V Subramaniam EXECUTIVE DIRECTOR Puan Roowina Merican A Rahim Merican EXECUTIVE DIRECTOR Tuan Haji Yusof Saroji EXECUTIVE DIRECTOR Tuan Haji Sanusi Sulieman EXECUTIVE DIRECTOR Encik Yusof Badawi TECHNICAL DEVELOPMENT DEPT ASSISTANT GENERAL MANAGER Vacant WATER QUALITY & ASSET DEPT ASSISTANT GENERAL MANAGER Vacant ASSET SECT ASSISTANT GENERAL MANAGER Encik Muhamad Zuki Mat Zin WATER QUALITY SURVEILLANCE SECT SENIOR MANAGER Encik Roskhamdi Kamaluddin OPERATION & MAINTENANCE DEPT ASSISTANT GENERAL MANAGER Tuan Haji Mohd Yunus Othman MECHANICAL & ELECTRICAL DEPT ASSISTANT GENERAL MANAGER Encik Mohd Yusri Abu Samah NETWORK & INSTRUMENTATION DEPT ASSISTANT GENERAL MANAGER Encik Mohamad Khatta Daem PLANNING AND DESIGN DEPT GENERAL MANAGER Mr Khor Tse Tong INFORMATION & COMMUNICATION TECHNOLOGY DEPT SENIOR GENERAL MANAGER Tuan Haji Mohd Suhaimi Rafie NON REVENUE WATER (NRW) DEPT GENERAL MANAGER Tuan Haji Ariff Ibrahim PROJECT MANAGEMENT DEPT GENERAL MANAGER Ir Ahmad Marzuki Hashim CONTRACT ADMINISTRATION DEPT SENIOR MANAGER Puan Rohaniah Mohd Danan STRATEGIC RESOURCES DEPT ASSISTANT GENERAL MANAGER Vacant DEVELOPMENT DEPT GENERAL MANAGER Puan Rosmizah Ahmad Puncak Niaga Holdings Berhad Annual Report 2012

42 40 Organisation Structure - POG PUNCAK OIL & GAS SDN BHD ( P) BOARD OF DIRECTORS EXECUTIVE CHAIRMAN YBhg Tan Sri Rozali Ismail PRESIDENT Encik Mohamed Sabri Mohamed Zain TENDER & CONTRACT DIV VICE PRESIDENT Ir Nasir Ismail FINANCE & ACCOUNTS DIV SENIOR MANAGER Encik Huzaimi Mohd Idoris MARINES SERVICES DEPT VICE PRESIDENT Puan Halizah Kamarudin CORPORATE HEALTH, SAFETY & ENVIRONMENT DEPT SENIOR MANAGER Encik Engku Hasan Wardi Note: and DIV denote Division and DEPT denote Department Annual Report 2012 Puncak Niaga Holdings Berhad

43 41 ( V) BOARD OF DIRECTORS CHAIRMAN YBhg Tan Sri Dato Sri Dr Wan Abdul Aziz Wan Abdullah Organisation Structure - GOM Resources EXECUTIVE VICE CHAIRMAN YBhg Tan Sri Rozali Ismail PRESIDENT Encik Mohamed Sabri Mohamed Zain INTERNAL AUDIT DEPT CORPORATE QUALITY, HEALTH, SAFETY & ENVIRONMENT DEPT SENIOR MANAGER Encik Itan AK Panyin CORPORATE & BUSINESS DEVELOPMENT DIV EXPLORATION & PRODUCTION DIV HUMAN RESOURCE & ADMINISTRATION DIV/ INFORMATION TECHNOLOGY DIV OPERATIONS DIV TENDER & CONTRACT DIV FINANCE & ACCOUNTS DIV SENIOR VICE PRESIDENT YBhg Dato Hashim Mahfar VICE PRESIDENT Tuan Haji Abu Samad Nordin VICE PRESIDENT YBhg Dato Mat Hairi Ismail SENIOR VICE PRESIDENT Encik Angat Anum Lingoh VICE PRESIDENT Ir Nasir Ismail VICE PRESIDENT Madam Yan Siew Ching BUSINESS DEVELOPMENT DEPT VICE PRESIDENT Encik Jamel Salleh STRATEGIC PLANNING DEPT ASSISTANT VICE PRESIDENT Encik Zohrab Zolkipli SECRETARIAL DEPT ASSISTANT VICE PRESIDENT Madam Chang Siew Khim LEGAL DEPT ASSISTANT VICE PRESIDENT Puan Haslinda Abu Bakar SPECIAL PROJECT DEPT VICE PRESIDENT Encik Azman Shabudin Note: and DIV denote Division and DEPT denote Department COMMERCIAL & RISK DEPT VICE PRESIDENT Encik Zameri Embong Puncak Niaga Holdings Berhad Annual Report 2012

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45 Teamwork is what spurs our people to attain extraordinary results

46 44 Board of Directors Profile YBHG TAN SRI ROZALI ISMAIL Aged 56 Malaysian Executive Chairman of PNHB Group 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. Annual Report 2012 Puncak Niaga Holdings Berhad

47 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 Board of Directors Profile YBhg Tan Sri Rozali was conferred a Fellowship Award by the Institute of Marketing Malaysia (IMM) on 6 November 2001 for his invaluable contributions to promote the growth and development of the Malaysian property market. In recognition of his outstanding contributions in championing management excellence and best practices in the Malaysian water and wastewater industry, YBhg Tan Sri Rozali was awarded the prestigious Asia Water Management Excellence Award 2002 Individual Award Category, an award at 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 72 nd birthday of the Yang di-pertua Negeri Melaka on 9 October 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 and 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 recognized as International Distinguished Entrepreneur Of The Year for the Asia Pacific International Brands Summit (Malaysia) 2011 by the Asia Entrepreneur Alliance. On 23 February 2012, YBhg Tan Sri Rozali was awarded the Special Individual Achievement Category at the 1 st Malaysia Achievement Awards Puncak Niaga Holdings Berhad Annual Report 2012

48 46 Board of Directors Profile 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 ). YBhg Tan Sri Rozali was 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), former Trustee of Yayasan WAQAF Malaysia (YWM) (January 2008 December 2009) and former President 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 States of Selangor, and the Federal Territories of Kuala Lumpur and Putrajaya with the aim of promoting interaction with the general public, and enhancing their understanding of water resources. YBhg Tan Sri Rozali is the major shareholder of one (1) listed company, namely TRIplc Berhad, a property company. YBhg Tan Sri Rozali attended 4 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December Annual Report 2012 Puncak Niaga Holdings Berhad

49 47 Board of Directors Profile 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 privatization 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 BIN HASSAN Aged 57 Malaysian Non-Independent Non-Executive Director of PNHB and Chief Executive Officer of SYABAS 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 Puncak Niaga Holdings Berhad Annual Report 2012

50 48 Board of Directors Profile YBHG DATO IR LEE MIANG KOI Aged 59 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 Puncak Niaga Holdings Berhad ( 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 35 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 state Waterworks Department in Malaysia, specialising in the various aspects 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 in the Water Supply Division. YBhg Dato Ir Lee attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December Annual Report 2012 Puncak Niaga Holdings Berhad

51 49 Board of Directors Profile 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 Puncak Niaga Holdings Berhad ( 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 re-designated 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 BIN SYED ARIFFIN Aged 55 Malaysian Chief Operating Officer of PNHB and Managing Director of PNSB 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 Puncak Niaga Holdings Berhad Annual Report 2012

52 50 Board of Directors Profile YBHG TAN SRI DATO HARI NARAYANAN A/L GOVINDASAMY Aged 63 Malaysian Independent Non-Executive Director of PNHB YBhg Tan Sri Dato Hari Narayanan Govindasamy, a businessman was appointed to the Board of Puncak Niaga Holdings Berhad ( 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. YBhg Tan Sri Dato Hari Narayanan attended 3 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December Annual Report 2012 Puncak Niaga Holdings Berhad

53 51 Board of Directors Profile YBhg Tan Sri Dato Seri Dr Ting Chew Peh joined Puncak Niaga Holdings Berhad ( 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 CHEW PEH Aged 70 Malaysian Independent Non-Executive Director of PNHB 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 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 Puncak Niaga Holdings Berhad Annual Report 2012

54 52 Board of Directors Profile YAM TENGKU DATO RAHIMAH BINTI ALMARHUM SULTAN MAHMUD Aged 47 Malaysian Non-Independent Non-Executive Director Of PNHB YAM Tengku Dato Rahimah Almarhum Sultan Mahmud was appointed to the Board of Puncak Niaga Holdings Berhad ( 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 and upon her return to Malaysia, she joined Esso Malaysia Berhad for 5 years. 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 Annual Report 2012 Puncak Niaga Holdings Berhad

55 53 Board of Directors Profile YBhg Tan Sri Dato Ahmad Fuzi Haji Abdul Razak was appointed to the Board of Puncak Niaga Holdings Berhad ( 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 BIN HAJI ABDUL RAZAK Aged 64 Malaysian Independent Non-Executive Director of PNHB YBhg Tan Sri Dato Ahmad Fuzi is currently the Secretary General of the World Islamic Economic Forum Foundation (WIEF); Member, Board of Trustees of MERCY, Malaysia and Perdana Global Peace Foundation (PGPF). YBhg Tan Sri Dato Ahmad Fuzi is also Chairman of Amanahraya-REIT Managers Sdn Bhd, Seremban Engineering Berhad, Theatre Management Associates Sdn Bhd, Optima Capital Sdn Bhd and Ferro Mining Sdn Bhd; Non-Executive Chairman of Sofgen (Malaysia) Sdn Bhd and Xadacorp Sdn Bhd; Group Chairman of Ace Holdings Sdn Bhd; Independent Non-Executive Director of Maybank Islamic Berhad, Maybank Ventures Sdn Bhd (formerly known as Mayban Ventures Sdn Bhd) and Ranhill Energy And Resources Berhad; Non-Executive Director, MDIS (Malaysia) Sdn Bhd; Member, Board of Trustees of F3 Strategies Berhad; Advisor of Leisure Guide Publishing Sdn Bhd and Director of HDZ Petroleum Sdn Bhd, HDZ Oil Refinery Sdn Bhd, ISAREIT Retail Properties Sdn Bhd, Weros Technology Sdn Bhd, NS Cattle Farm and Breeder Sdn Bhd. 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, Institute of Advanced Islamic Studies (IAIS); Member, Advisory Board, Asia Pacific Entrepreneurship Award (APEA); Advisor, High School Bukit Mertajam Alumni Malaysia; and Honorary Advisor, Malaysia-Myanmar Chamber of Commerce. YBhg Tan Sri Dato Ahmad Fuzi attended 5 out of the 5 Board Meetings of PNHB held in the financial year ended 31 December Puncak Niaga Holdings Berhad Annual Report 2012

56 54 Board of Directors Profile MR NG WAH TAR Aged 49 Malaysian Executive Director Corporate Finance Division of PNHB and PNSB Mr Ng Wah Tar was appointed to the Board of Puncak Niaga Holdings Berhad ( 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. Mr Ng was appointed as the Audit Committee Chairman of SYABAS on 1 January He is a member of the Water Association of Selangor, Kuala Lumpur and Putrajaya ( SWAn ), a non-profit organization 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 to 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 26 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 February 2000, Mr Ng joined PNSB as General Manager, Finance & Accounts and was promoted to Senior General Manager, Finance & Accounts on 1 April 2006 and thereafter to 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 Annual Report 2012 Puncak Niaga Holdings Berhad

57 55 YBHG TAN SRI ROZALI ISMAIL Executive Chairman of PNHB Group Board of Directors 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 and Managing Director of PNSB 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 Puncak Niaga Holdings Berhad Annual Report 2012

58 56 Key Personnel Profile - PNSB IR TAN HUI KUAN Aged 59 Malaysian Chief Operating Officer Ir Tan Hui Kuan joined PNSB in August 2003 as the General Manager of the Project and Business Development Department. He was appointed as the Executive Director, Operation & Maintenance Division on 1 January On 1 August 2011, he was redesignated as the Executive Director of Engineering/Project Development Division. On 15 February 2012, he was promoted to be the Chief Operating Officer of the Company. He graduated with a Bachelor s Degree (Hons) in Civil Engineering from the University Malaya in He has 26 years of working experience in the Public Works Department 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. Prior to joining PNSB, Ir Tan was the Assistant Director for Military Works in the Public Works Department Malaysia. While in PNSB, he has managed for a period the operation and maintenance of the water treatment plants and dams under the various concession held by the Company, besides executed and completed projects in India, Sabah, Sarawak and Peninsular Malaysia. YBHG DATO NASIR KHAN ILLADAD KHAN Aged 60 Malaysian Executive Director, Business Development Division 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 for Business Development Division effective from 1 January He holds a Bachelor Degree in Social Science, Political Science (Hons) from the Universiti Sains Malaysia and a Masters Degree in Public Administration from the Pennsylvania State University, United States of America. He also possesses a Diploma in Public Management from the National Institute of Public Administration (INTAN), and attended an Executive Management Programme at the School of Government, Harvard University, United States of America. YBhg Dato Nasir Khan has more than 33 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 serving the Ministry of Finance, Malaysia. YBhg Datuk Mohd Yunus Mohd Amin joined PNSB on 15 November 2007, as Executive Director, Human Resources & Administration Division before assuming the position of Executive Director, Special Functions Division. He holds a Degree in Mass Communications from the University Padjajaran Bandung, Indonesia and a Diploma in Public Management from the National Institute of Public Administration (INTAN). YBHG DATUK MOHD YUNUS MOHD AMIN Aged 65 Malaysian Executive Director, Special Functions Division Prior to joining PNSB, he was the Director for Bahagian Geraksaraf Dan Perancangan Dasar, Jabatan Hal Ehwal Khas of the Ministry of Information, Malaysia. YBhg Datuk Mohd Yunus has more than 32 years of administrative and management experiences holding various positions in the Ministries and Agencies such as Ministry of Transport, Ministry of Education, Ministry of Home Affairs, Student Attache, Prime Minister Department, Selangor State Government and Ministry of Information, including 27 years of experience in the Diplomatic Service. Annual Report 2012 Puncak Niaga Holdings Berhad

59 57 YBhg Datuk Dr Muzahet Masruri joined PNSB on 1 January 2010 as the Senior General Manager, Strategic Resource Centre. He was promoted to his current position of the Executive Director, Strategic Resource & Public Relations Division on 15 February 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 and Diploma in Teaching from Sultan Idris Teachers Training College (now known as Sultan Idris University of Education), Tanjung Malim, Perak. Key Personnel Profile - PNSB He carries over 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 Socioeconomic Research Unit, Prime Minister s Department, and Editor in Dewan Bahasa dan Pustaka. Among the key strategic areas he was involved in during his working experience with the Government include the preparation of the Five-Year Malaysia Development Plans, the preparation of strategic policies and stimulus packages to avert the negative impacts of the Asian Financial Crisis in 1997, the tension between Iraq & the US in 2001 and Severe Acute Respiratory Syndrome ( SARS ) in He was also instrumental in drafting substantive policy guidelines to promote retail and distributive trade as well as addressing the price control mechanism covering retail business in oil & gas sector in Malaysia. He was involved in bilateral trade negotiations with the USA and Chile. YBHG DATUK DR MUZAHET MASRURI Aged 61 Malaysian Executive Director, Strategic Resource & Public Relations Division 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 In her current position, she oversees the Legal Department, Secretarial Department and Internal Audit Department. As Group Company Secretary, Madam Tan is responsible for PNHB Group s company secretarial and regulatory compliance. She was appointed as a Director of Sino Water Pte Ltd on 27 June 2008 and a Director of Puncak Niaga Overseas Capital Pte Ltd on 2 January 2013, both of which are Puncak Niaga Holdings Berhad s Singapore subsidiaries. Madam Tan is a Fellow of the Malaysian Association of the Institute of Chartered Secretaries and Administrators ( MAICSA ) and has more than 25 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 47 Malaysian Executive Director, Corporate Services Division Puncak Niaga Holdings Berhad Annual Report 2012

60 58 Madam Wong Ley Chan graduated with a Bachelor of Accountancy Degree from the prestigious National University of Singapore. Key Personnel Profile - PNSB MADAM WONG LEY CHAN Aged 53 Malaysian Executive Director, Finance Division Madam Wong is a member of Malaysian Institute of Certified Public Accountant (MICPA) and Malaysian Institute of Accountant (MIA). She has more than 28 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 Puncak Niaga Holdings Berhad, she was the Vice President, Finance of Scomi Engineering Bhd. On 25 November 2010, she was appointed as Executive Director, Finance Division in Puncak Niaga (M) Sdn Bhd. She is responsible for the overall finance and accounting functions of Puncak Niaga Group of Companies. Tuan Haji Abd Rashid Abd Satar joined PNSB on 15 February 2012 as Executive Director, Operation & Maintenance Division. TUAN HAJI ABD RASHID ABD SATAR Aged 53 Malaysian 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 30 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. 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 State of Selangor. Ir Ausamah Darwish joined PNSB on 9 January 2013 as Executive Director, Engineering/Project Development Division. He attained his Bachelor of Science (Engineering) from the Southern Illinois University, United States of America in IR AUSAMAH DARWISH MOHD DAUD Aged 53 Malaysian Executive Director, Engineering/Project Development Division He is a Registered Professional Engineer with the Board of Engineers Malaysia (Mechanical). Ir Ausamah Darwish has over 28 years of working experience. He started his career as a Trainee Mechanical Engineer and held various posts from Mechanical Engineer, Associate Mechanical Engineer, System Designer, Resident Engineer to a Plant Manager and Executive Director. Prior to joining PNSB, Ir. Ausamah Darwish was the Executive Director, Operation in WWE Holdings Bhd. With his vast working experiences in fields related to mechanical, water and wastewater engineering, Ir Ausamah Darwish was appointed as an Executive Director to head the Engineering/Project Development Division of PNSB. Annual Report 2012 Puncak Niaga Holdings Berhad

61 59 Puan Faridatulzakiah holds a degree in Law (LLB, Hons) from the Hertfordshire University, United Kingdom. She started her legal career at Messrs Malek & Associate in 2003, handling civil and criminal cases. In 2006, she served as Legal Officer in Great Eastern Life Assurance (Malaysia) Berhad where she was exposed to Human Resource and Industrial Relations matters. She then joined SYABAS in 2008 as Assistant Manager, Legal Department and subsequently promoted to Manager of Industrial Relations a year later before being promoted as Senior Manager in She continued leading the department until she joined PNSB in 2012 as Assistant General Manager of the Human Resources & Administration Division, overseeing the full spectrum of Human Resource Management. Under her leadership and guidance, the Department focused on delivering high quality services and consequently improved the Company s performance. On 1 February 2013, Puan Faridatulzakiah assumed the position of Executive Director of Human Resources & Administration Division of PNSB. Key Personnel Profile - PNSB PUAN FARIDATULZAKIAH MOHD BAKHRY Aged 37 Malaysian Executive Director, Human Resources & Administration 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 of the Association of Chartered Certified Accountants (U.K). He holds a professional qualification from the Chartered Institute of Management Accountants (U.K). Tuan Haji Sonari Solor has more than 24 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. TUAN HAJI SONARI SOLOR Aged 57 Malaysian Senior General Manager, Internal Audit Department Puan Hafizah 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 with the Best Student Award. Prior to joining PNSB in January 2010 as General Manager of Contract & Procurement Department ( CPD ), she was with a construction company since October Overall, Puan Hafizah has more than 21 years of experience in quantity surveying works on construction industry. She was promoted to Senior General Manager of CPD of PNSB on 1 January PUAN HAFIZAH AHMAT Aged 44 Malaysian Senior General Manager, Contract & Procurement Department Puncak Niaga Holdings Berhad Annual Report 2012

62 60 Key Personnel Profile - PNSB Madam Lim Yew Heang (Jenny) joined PNSB on 1 April 2008 as General Manager, Secretarial Department, Corporate Services Division. 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 & Administrator (ICSA) qualification and an Associate Member of The Malaysian Institute of Chartered Secretaries and Administrators (MAICSA). She has 24 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 JENNY LIM YEW HEANG Aged 46 Malaysian General Manager, Secretarial Department ENCIK JOHARI PAWANCHIK Aged 49 Malaysian General Manager, Operation & Maintenance Department Encik Johari Pawanchik joined PNSB on 9 August 2010 as General Manager for Operation & Maintenance Department. He graduated with a Bachelor s Degree in Science from the Universiti Kebangsaan Malaysia (UKM) in 1989 and pursued study in Engineering. He obtained a Master s Degree in Engineering from the University of South Australia in He has wide exposure in Production Operation Management with 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 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 of Information Technology Department of PNSB. ENCIK AZLAN SHAH TAN SRI ROZALI Aged 27 Malaysian General Manager, Information Technology Department Encik Azlan Shah started his career in 2009 via an internship at an apparel merchandise company. With his tremendous performance and high commitments, he was 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 1Malaysia Youth Entrepreneurs Club. In 2011, he received the title of Leftenan Rejimen Pakar Pengendalian Air ke-60 RAJD (Askar Wataniah). Annual Report 2012 Puncak Niaga Holdings Berhad

63 61 Madam Christina Lee Chin Kee joined PNSB on 27 April 2012 as General Manager, Legal Department, Corporate Services Division. She obtained her Bachelor of Law (LLB) from the University of Buckingham, United Kingdom in 1982 and her Certificate of Legal Practice (CLP) from the University of Malaya in She had been called to the High Court of Malaya and a Member of High Court of Borneo and enrolled as a member Sarawak Bar Association. She started her working experience with the Judicial and Legal Services, Malaysia for a period of ten years working as a Magistrate and later with the Attorney-General s Chambers before moving on to join the private sector, firstly, with the legal firm of Messrs. Abu Talib Shahrom and later with Messrs. Zul Rafique & Partners. Prior to joining PNSB, she was with UEM Builders Berhad for five (5) years as the General Manager, Legal Department. Her expertise lies in terms of drafting and negotiating contractual documents matters and concession agreements as well as overseeing legal issues in international project and other joint ventures. Key Personnel Profile - PNSB MADAM CHRISTINA LEE CHIN KEE Aged 52 Malaysian General Manager, Legal Department Tuan Syed Badli Shah joined PNSB on 9 January 2013 as the General Manager of Non Water Department, Engineering/Project Development Division. He is a degree holder in Mechanical Engineering from the Universiti Teknologi Malaysia in Tuan Syed Badli Shah has over 20 years of experience in the construction industry, water & wastewater operation & maintenance projects and solid waste management. He started his career as a Mechanical Engineer for JCM Sdn Bhd before joining Perbadanan Kilang Felda as Plant Engineer. He also served as Chief Engineer for Johor Aluminium Processing Sdn Bhd and involved in the construction of Secondary Aluminium plant as well as testing and commissioning. He gained experience as General Production Manager for Linde Industrial Gases Sdn Bhd and constructed three (3) acetylene plants and four (4) filling stations for industrial gases. He was a Plant/Facilities Planning Manager with Alam Flora Sdn Bhd and managed Taman Beringin Transfer Station and Landfill operation and maintenance. He is also a Project Director for Jeddah Sewer Networks, Saudi Arabia and managed the Operation and Maintenance Contract of Jelutong Sewage Treatment Plant, Penang. Prior to joining PNSB, he was the Business Development Manager/Jeddah Branch Manager of WWE Holdings Bhd. TUAN SYED BADLI SHAH SYED MANSOOR Aged 46 Malaysian General Manager, Local Project Department Ir Yong Oon Fatt (Dacius), is the General Manager, International Project Department of Engineering & Project Development Division of PNSB. Ir Yong Oon Fatt joined PNSB on 1 July 2010 and was seconded to the PRC China for the Group s water and wastewater business in the PRC China undertaken by Sino Water Pte Ltd, PNHB s 98.65% subsidiary in Singapore. Ir Yong Oon Fatt holds a Bachelor of Engineering degree majoring in Mechanical Engineering from the University Science of Malaysia. He is a qualified Professional Engineer registered with Board of Engineers, Malaysia. He is also a member of Institutional of Engineers Malaysia. Ir Yong Oon Fatt has more than 17 years of experience in the municipal water and waste water treatment system design and construction works. Besides having experiences in engineering construction, Ir Yong Oon Fatt also has experiences in marketing and business development. IR YONG OON FATT Aged 41 Malaysian General Manager, International Project Department Puncak Niaga Holdings Berhad Annual Report 2012

64 62 Key Personnel Profile - SYABAS IR V SUBRAMANIAM Aged 63 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 service 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 39 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 aspects of 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. 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 in 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 then promoted to Chief Operating Officer of Ranhill Civil Sdn Bhd until In 2004, he joined WWE Holdings Bhd as the Executive Director, before joining PNSB in the same year, where he was involved in the task force for the privatisation of PUAS to SYABAS. TUAN HAJI SANUSI SULIEMAN Aged 52 Malaysian Executive Director, Planning Division Tuan Haji Sanusi was exposed to international construction works when he was assigned for the SR408 million North Jeddah Branch Sewer Network Project in the Kingdom of Saudi Arabia in 2006 before he was assigned to the position of Executive Director of Projects in SYABAS in He was later re-designated as the Executive Director, Network & Planning Division of SYABAS and re-designated again in 2011, to his current position as the Executive Director, Planning Division. Annual Report 2012 Puncak Niaga Holdings Berhad

65 63 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 24 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 Key Personnel Profile - SYABAS TUAN HAJI ZAINUDDIN OTHMAN Aged 53 Malaysian Executive Director, Human Resource and Administration 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. ENCIK ABDUL HALEM HAJI MAT SOM Aged 47 Malaysian Executive Director, Corporate Affairs Division 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 of the Water Quality Department under the Strategic Resources Division in SYABAS. On 1 January 2011, she was appointed as the 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 51 Malaysian Executive Director, Water Quality, Asset & Strategic Resources Division Puncak Niaga Holdings Berhad Annual Report 2012

66 64 Key Personnel Profile - SYABAS ENCIK MOHAMAD ISA MOHD YASSIN, AMS, AMK Aged 54 Malaysian Special Assistant To Executive Chairman/Executive Director, Special Task Department & Bumiputera Entrepreneur Participation & Development Department 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 Department ( 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 the 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 in town and building development, project monitoring, public relations and manufacturing industries. The latest project under his belt is the Entrepreneur Development Programme for SYABAS contractors. He also plays an active role as Special Assistant to the Rejimen Pakar Pengendalian Air Ke-60 RAJD (Askar Wataniah) since 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 of the Institution of Engineers 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 Executive Director, Operation Division. TUAN HAJI YUSOF SAROJI Aged 47 Malaysian Executive Director, Operation Division Tuan Haji Yusof Saroji is also active in several non-profit organisations in the water fraternity and was the Secretary and later 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 Annual Report 2012 Puncak Niaga Holdings Berhad

67 65 Encik Yusof Badawi joined SYABAS on 1 May 2011 as Executive Director, Project and Development Division comprising the Project Management Department, Non-Revenue Water ( NRW ) Department, Development Department and Contract Administration Department. This Division was later renamed as Project and Non-Revenue Water Division, with the exclusion of the Development Department. 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 26 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. Key Personnel Profile - SYABAS Encik Yusof Badawi was involved in the construction, testing and commissioning of Sungai Selangor Water Supply Scheme Phase I 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). ENCIK YUSOF BADAWI Aged 51 Malaysian Executive Director, Project & Non-Revenue Water Division Madam Karen Chan holds a Bachelor of Accounting (Hons) degree from the University of Malaya. She is a member of the Malaysian Institute of Accountants. Madam Karen Chan has vast working experience of more than 25 years in various areas covering Auditing, Accounting, Finance and Corporate Finance. Prior to joining SYABAS, Madam Karen Chan was the Senior General Manager with the Scomi Group of Companies for a total of 6.5 years, with 2 years of overseas assignment based in Dubai overseeing the Middle East Operation. She was with Price Waterhouse Coopers from 1987 to Thereafter, she was with various companies within the Hong Leong Group of Companies and various Public Listed Companies in Malaysia. MADAM KAREN CHAN YIT HWA Aged 49 Malaysian Executive Director, Finance Division Tuan Haji Mohd Suhaimi holds a Diploma, Advanced Diploma in Civil Engineering and a Post Graduate Diploma in System Analyst from the Universiti Teknologi Mara. He has 33 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 57 Malaysian Senior General Manager, Information & Communication Technology Department Puncak Niaga Holdings Berhad Annual Report 2012

68 66 Key Personnel Profile - SYABAS CIK HAYATI AB WAHAB Aged 49 Malaysian Senior General Manager, Internal Audit Department 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 the Kuala Lumpur District. She holds a Bachelor of Accountancy (Hons) Degree from the London Guildhall University, England and is a Certified Public Accountant with MICPA, Chartered Accountant with the Malaysia Institute of Accountants ( MIA ) and Chartered member of the Institute of Internal Auditors, Malaysia. She has 24 years of working experience including 10 years in external audit covering various types of industries (e.g. construction, plantation, timber, manufacturing and government bodies), due diligence reviews & profit/cash flow forecasts and 8 years in internal audit in the areas of financial, operational, IT, risk management and investigation. She has experience working in England, Bangkok and Singapore. TUAN HAJI ARIFF IBRAHIM Aged 52 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 he was appointed as the General Manager of NRW Department in 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 29 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 Aged 51 Malaysian General Manager, Project Management Department 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 has more than 28 years experience in the water industry and has held various positions during his tenure with the Public Works Department s Waterworks Branch. Annual Report 2012 Puncak Niaga Holdings Berhad

69 67 Encik 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 in the takeover of GITN Sdn Bhd, a subsidiary Company of Permodalan Nasional 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. Key Personnel Profile - SYABAS ENCIK SHAHRUDDIN AB RAHMAN Aged 49 Malaysian General Manager, Billing and Recovery Department Encik Ahmad Suhaidin Ismail is the Head of Petaling District at Syarikat Bekalan Air Selangor Sdn. Bhd. ( SYABAS ). He holds a Bachelors Degree in Civil Engineering (Honours) from the Universiti Technologi Malaysia ( UTM ). He has 28 years of working experience in the water supply sector. Encik Ahmad Suhaidin joined Jabatan Bekalan Air Selangor ( JBAS ) on 15 January 1984 as a Technical Assistant ( TA ) at the Gombak District Office. His extensive participation and work commitment over the years led him to become the Manager of the Klang/Shah Alam District Office in the year He was subsequently promoted to Assistant General Manager of the Kuala Langat District Office in In April 2009, Encik Ahmad Suhaidin was promoted as the General Manager of the Klang District Office and on 15 February 2012, he was transferred from the Klang District Office to the Petaling District Office. Encik Ahmad Suhaidin is a member of the Malaysian Water Association ( MWA ) and the Secretary of the Jawatankuasa Tindakan Jurutera Air Daerah Se Malaysia ( JTJAD ) for the state of Selangor. ENCIK AHMAD SUHAIDIN ISMAIL Aged 52 Malaysian General Manager, Petaling District Central Region District Department 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 30 years of working experience involving engineering and environmental consultancy, business development, project/construction management, property development and infrastructure/utility construction and management. Encik Mohd Yaman joined SYABAS as General Manager, Water Quality Division in 2007 and was later appointed as General Manager, Operation & Maintenance Division in 2009 and as Head of Gombak District from 2010 until March He is currently the General Manager, Customer Service Department. Prior to joining SYABAS, 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 Aged 57 Malaysian General Manager, Customer Service Department Puncak Niaga Holdings Berhad Annual Report 2012

70 68 Encik Abd Latif Ismail joined SYABAS on 20 August 2010, as General Manager of the Human Resource Department. He holds a Master of Science Degree in Human Resources Management from the University of Lincolnshire & Humberside, United Kingdom. Key Personnel Profile - SYABAS Prior to joining SYABAS, he was with the Exchange for over 14 years. His experience in the field of human resource includes being the key person involved in job re-design, job evaluation, right-sizing, culture profiling and internalisation. ENCIK ABD LATIF ISMAIL Aged 51 Malaysian General Manager, Human Resource Department Puan Rosmizah Ahmad joined PUAS on 2 September 2002 as an Engineer at the Development Department. Puan Rosmizah is currently the General Manager of Development Department. PUAN ROSMIZAH AHMAD Aged 44 Malaysian General Manager, Development Department Upon graduating with a Bachelors Degree in Civil Engineering (Honours) from the Universiti Teknologi Malaysia in 1994, Puan Rosmizah began her career as an Engineer in civil and structural engineering design. Todate, she has over 19 years of working experience in the field of engineering. Prior to joining PUAS, 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 Aged 46 Malaysian General Manager, Information & Communication Technology Department Puan Hayati Abd Rahman graduated with a Degree in Social Science majoring in Computer Science from the University of Waikato, Hamilton, New Zealand in 1991 and holds a Master of Science in Information Management from the University Institut Technologi Mara ( UITM ) in She has 21 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 an 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 Prior to joining SYABAS as General Manager of the Information & Communication Technology Department on 15 January 2012, she was holding the post of Senior Manager, heading the Application Development Section of the Information & Communication Technology Division at Suruhanjaya Syarikat Malaysia ( SSM ), a post she held since 1 April Annual Report 2012 Puncak Niaga Holdings Berhad

71 69 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 Sdn Bhd in 2001 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 Key Personnel Profile - SYABAS IR KHOR TSE TONG Aged 38 Malaysian General Manager, Planning & Design Department Encik Armiy Rais Ahmad Sharifuddin joined SYABAS in 2012 as the General Manager of the Legal & Enforcement Department. He holds a Bachelor of Laws (Honours) degree from the Universiti Technologi MARA. After being called to the Malaysian Bar, he started his legal career as an Advocate and Solicitor with various major firms before joining Golden Hope Plantations Berhad as Manager, Corporate Legal & Secretarial Department. Upon the rationalisation of the Permodalan Nasional Berhad s Group of Companies, Encik Armiy had been entrusted to head the legal team in charge of a few major property companies within the Island & Peninsular Group and then headed the pioneer team in the setting-up of Pelaburan Hartanah Berhad which had successfully launched a special Bumiputera property investment trust fund, Amanah Hartanah Bumiputera. Prior to SYABAS, he was the General Manager, Legal and Company Secretarial in Petra Energy Berhad. ENCIK ARMIY RAIS AHMAD SHARIFUDDIN Aged 42 Malaysian General Manager, Legal & Enforcement Department Ms Lee Chin Shin joined SYABAS on 18 April 2013 as General Manager of the Finance & Accounts Department. She graduated with a Bachelor of Accounting (Hons) Degree from the Universiti of Malaya in 1992 and is a member of the Malaysian Institute of Accountants ( MIA ) and Malaysian Institute of Certified Public Accountants ( MICPA ). Prior to joining SYABAS, she was a Manager with HL Management Co Sdn Bhd. MS LEE CHIN SHIN Aged 45 Malaysian General Manager, Finance & Accounts Department Puncak Niaga Holdings Berhad Annual Report 2012

72 70 Key Personnel Profile - SYABAS Encik Taufik Afendy Othman joined PNSB in 1997 as an Engineer before he was assigned to SYABAS in 2005 as Secretary of Works for the Hulu Langat District. He was promoted thrice before assuming his current position as General Manager, Administration Department in He graduated with a Bachelor of Chemical Engineering (Hons) Degree from the Universiti Teknologi Malaysia in 1992 and a Master of Industrial Safety Management from the Universiti Kebangsaan Malaysia in Prior to joining PNSB, he was the Maintenance Improvement Engineer with H & R Johnson Bhd. ENCIK TAUFIK AFENDY OTHMAN Aged 44 Malaysian General Manager, Administration Department ENCIK WAN ABD AZIZ WAN MUDA Aged 46 Malaysian General Manager, Contract & Procurement Department Encik Wan Abd Aziz Wan Muda joined SYABAS in 2005 as Manager, Contract & Procurement Department. He was later promoted thrice before assuming his current position as General Manager, Contract & Procurement Department in He holds a Bachelor of Quantity Surveying (Hons) Degree from the Universiti Teknologi Malaysia in Prior to joining SYABAS, he was the Contracts Manager with U-Wood Holdings Bhd. MR KELVIN SIEW WENG HOE Aged 37 Malaysian General Manager, Kuala Lumpur District Central Region District Department Mr Siew Weng Hoe (Kelvin) joined SYABAS in 2005 as a Technical Manager, Petaling District. He was promoted thrice before assuming his current position as General Manager, Kuala Lumpur District in He graduated with a Bachelor in Civil Engineering from the Universiti Putra Malaysia in Prior to joining SYABAS, he was the NRW Engineer with Premier Ayer Sdn Bhd. Annual Report 2012 Puncak Niaga Holdings Berhad

73 71 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 Puncak Niaga Holdings Berhad ( 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 49 of this Annual Report. Key Personnel Profile - Sino Water YBHG DATO SYED DANIAL SYED ARIFFIN Aged 55 Malaysian Chairman, Sino Water Pte Ltd Ir Tan Hui Kuan was appointed as Managing Director of Sino Water on 8 June He is the Chief Operating Officer 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. The full details of Ir Tan Hui Kuan s profile are as detailed on page 56 of this Annual Report. IR TAN HUI KUAN Aged 59 Malaysian Managing Director, Sino Water Pte Ltd Puncak Niaga Holdings Berhad Annual Report 2012

74 72 YBhg Tan Sri Dato Sri Dr Wan Abdul Aziz Wan Abdullah was appointed to the Board of GOM Resources Sdn Bhd ( GOM Resources ) on 1 March Key Personnel Profile - POG & GOM Resources YBhg Tan Sri Dato Sri Dr Wan Abdul Aziz graduated with a Bachelor of Economics (Honours) from the University of Malaya, Masters in Philosophy (Development Studies) from the Institute of Development Studies, University of Sussex, Brighton, UK and obtained a Ph.D. (Economics) from the School of Business and Economic Studies, University of Leeds, UK. He also attended the Advanced Management Program at Harvard Business School, Harvard University, Boston USA. YBhg Tan Sri Dato Sri Dr Wan Abdul Aziz has spent more than 37 years in the Public Service with vast experiences in finance and economic sectors. He began his career in 1975 as the Assistant Director in the Economic Planning Unit (EPU), Prime Minister s Department and was promoted to Senior Assistant Director in 1984, before assuming the role of Director of Energy Section in the same department. In late 1998, YBhg Tan Sri Dato Sri Dr Wan Abdul Aziz was seconded by the Government of Malaysia to the World Bank Group, Washington D.C, USA as the Alternate Executive Director representing the South East Asia Group. YBhg Tan Sri Dato Sri Dr Wan Abdul Aziz returned to Malaysia in 2001 and assumed the role of Deputy Under Secretary (Macro), Economics and International Division, Ministry of Finance ( MOF ). In 2004, he served the EPU, Prime Minister s Department as Deputy Director General in the Macro Planning Division. YBHG TAN SRI DATO SRI DR WAN ABDUL AZIZ WAN ABDULLAH Aged 61 Malaysian Chairman, GOM Resources He was appointed as the Deputy Secretary General of Treasury (Policy), MOF in 2005 and was promoted on 28 February 2007 as the Secretary General of Treasury, MOF. He retired from the Public Service on 23 May 2008 and subsequently continued to serve as Secretary General of Treasury until 23 August Currently, he is the Chairman of Malaysia Airport Holdings Berhad, Bank Pembangunan Malaysia Berhad, Bintulu Port Holdings Berhad, Samalaju Industrial Port Sdn Bhd, Syarikat Jaminan Kredit Perumahan Berhad and Pembinaan BLT Sdn Bhd. He is also a Board Member of Permodalan Nasional Berhad, Sime Darby Berhad, Sime Darby Motors Sdn Bhd, Felda Global Ventures Holdings Berhad, Felda Global Ventures Plantations Sdn Bhd and Johor Petroleum Development Corporation Berhad. Encik Mohamed Sabri Zain was appointed President and Director of GOM Resources on 1 January 2013 and 8 January 2013, respectively. He was appointed as Director of KGL Ltd. ( KGL ) on 7 March He holds a Bachelor of Science Degree in Petroleum Engineering from the University of Wyoming, United States of America in Prior to joining GOM Resources, Encik Mohamed Sabri Zain held senior management positions with established Oil & Gas ( OAG ) companies both locally and internationally such as the Vice President, Offshore Business of MISC Berhad in year 2010, the President of White Nile Petroleum Operating Company Ltd ( WNPOC ), a joint-venture operating company between Petroliam Nasional Berhad ( PETRONAS ) and Sudapet of Sudan (responsible for exploration, development and production of three blocks in Sudan from 2008 to 2010). ENCIK MOHAMED SABRI MOHAMED ZAIN Aged 56 Malaysian President, GOM Resources Encik Mohamed Sabri Zain has more than thirty four years of vast experience and versatility in the OAG business covering domestic and international venture, with proven leadership capabilities. He began his career in 1978 with PETRONAS Carigali as a Petroleum Engineer and had held various senior roles including, General Manager for PCSB s various Divisions/ Operations namely, PCSB Vietnam Operations, PCSB Development Division, PCSB Middle East & Asia Region and PCSB International Operations covering Vietnam, Indonesia, Myanmar, Pakistan, Turkmenistan, Uzbekistan, Malaysia-Thailand JDA and Sudan; and President, WNPOC in Sudan. Annual Report 2012 Puncak Niaga Holdings Berhad

75 73 YBhg Dato Hashim Mahfar was appointed to the Board of Directors of Puncak Oil & Gas Sdn Bhd ( POG ) on 3 May 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. YBhg Dato Hashim Mahfar is responsible for the Corporate & Business Development of GOM Resources and Puncak Group s Oil & Gas Division. Key Personnel Profile - POG & GOM Resources YBHG DATO HASHIM MAHFAR Aged 53 Malaysian Director of POG/ Director and Senior Vice President, Corporate & Business Development Division of GOM Resources Encik Angat Anum Lingoh is the Senior Vice President, Operations Division and was appointed as Director of GOM Resources on 21 February Encik Angat Anum Lingoh graduated from the University of Newcastle in England with a B.Sc. in Mechanical Engineering. He started off as a Contracts 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 has more than 31 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 engineering, 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 ANGAT ANUM LINGOH Aged 57 Malaysian Director and Senior Vice President, Operations Division of GOM Resources YBhg Dato Mat Hairi Ismail obtained his Bachelor Degree in Accountancy from the Universiti Kebangsaan Malaysia in He began his career as an Accountant with the Jabatan Akauntan Negara Malaysia (JANM) in 1985 as Head of JANM in Labuan in YBhg Dato Mat Hairi was later appointed as the Representative Accountant of Malaysia in UK and EIRI Office in London from and upon his return to Malaysia, YBhg Dato Mat Hairi was appointed as Senior Accountant with the Langkawi Development Authority till YBhg Dato Mat Hairi began his involvement in business in 1994 together with his elder brothers, YBhg Tan Sri Rozali Ismail and YBhg Dato Shaari Ismail to set up Puncak Niaga (M) Sdn Bhd ( PNSB ) which has now successfully become the leading regional integrated water, wastewater and environmental solutions provider. YBhg Dato Mat Hairi had held various positions within the PNHB Group including Executive Director of Finance & Corporate Services, Executive Director in the Executive Chairman s Office and now as the Vice President of Human Resources & Administration Division and Information Technology Division for POG and Group. He was appointed as Director of GOM Resources on 2 January 2013 and Director of KGL on 7 March YBhg Dato Mat Hairi brings with him an extensive 27 years of experience in strategic planning, corporate finance and business management to help build POG and Group to become a significant player in the Oil & Gas sector, both locally and internationally. YBHG DATO MAT HAIRI ISMAIL Aged 51 Malaysian Director and Vice President, Human Resources & Administration Division/ Information Technology Division of GOM Resources Puncak Niaga Holdings Berhad Annual Report 2012

76 74 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 on 21 February 2012 and Director of KGL on 27 April Key Personnel Profile - POG & GOM Resources IR NASIR ISMAIL Aged 50 Malaysian Director and Vice President, Tender & Contract Division of POG & GOM Resources 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 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 PNSB since 1998 and his designation in SYABAS prior to joining POG was Senior General Manager, Contract & Procurement Department. Ir Nasir had also served Majlis Perbandaran Seremban, Consulting Engineer firms, contractors and Gas Malaysia Sdn Bhd. ENCIK JAMEL SALLEH Aged 54 Malaysian Vice President, Business Development Department of GOM Resources Encik Jamel Salleh s career started with Elf Aquitaine in Encik Jamel has more than 25 years of working experience in the Oil & Gas Industry covering logistics, warehousing, project operations and business development. Encik Jamel has worked for major and established OAG companies locally and internationally such as Idemitsu Exploration of Japan, Agip Ltd of Italy, PCSB (Baram Delta Operation), Carigali-Triton Operating Co Sdn Bhd ( CTOC ), Carigali-HESS Operating Co Sdn Bhd and PJ Energy Services Co. Ltd of Thailand. Puan Halizah joined POG Group in Puan Halizah obtained her Bachelor Degree in Civil Engineering from the University of Miami, USA in 1985 before pursuing her Masters in Puan Halizah is a member of the Board of Engineers Malaysia and American Society of Civil Engineers. PUAN HALIZAH KAMARUDIN Aged 49 Malaysian Vice President, Marine Services Department of GOM Resources Puan Halizah began her career as a Design Engineer with Bemax of Florida, USA before embarking into the dynamic Oil and Gas Industry in 1991 with ESSO Production Malaysia (EPMI) as a Structural Engineer. In her 21 over years experience, Puan Halizah has held various positions from Structural Engineer, Project Engineer, Senior Project Engineer and now Vice President, Marine Services Department. Puan Halizah brings with her a wide technical and management qualifications with an impressive track record of hands on experience in Project Management. TUAN HAJI ABU SAMAD NORDIN Aged 60 Malaysian Vice President, Exploration & Production Department of GOM Resources Tuan Haji Abu Samad Nordin joined GOM Resources as Vice President of Exploration & Production Division. He obtained his BSc. Degree in Geology from the University of Malaya in 1976 and a Master Degree in Earth Resources Management from the University of South Carolina, USA in Tuan Haji Abu Samad began his career with Petronas in 1976 and held various positions from Geologist to General Manager. His experience covers both local and international Exploration Operations. Tuan Haji Abu Samad brings with him 34 years of technical experience in the upstream operations. Annual Report 2012 Puncak Niaga Holdings Berhad

77 75 Madam Yan Siew Ching joined GOM Resources in Madam Yan received her Bachelor of Business in Accountancy in 1990 from the Royal Melbourne Institute of Technology (RMIT), Australia and is a Chartered Accountant (MIA). Madam Yan started her career in 1991 with Kassim Chan & Co (Delloitte Touche) before serving Pricewaterhouse Coopers (PWC) as Audit Senior in Madam Yan has served many established companies in Malaysia such as Kvaerner (Malaysia) Sdn Bhd, EON Berhad, KUB Malaysia Berhad, SYABAS and SCOMI Engineering Bhd in her 21 years of working experience. Key Personnel Profile - POG & GOM Resources MADAM YAN SIEW CHING Aged 45 Malaysian Vice President, Finance & Accounts Division of GOM Resources Encik Azman joined GOM Resources in Encik Azman obtained his BSc. in Mechanical Engineering from the University of Glasgow in 1987 before obtaining his MBA from the Universiti Kebangsaan Malaysia in He received his Dredgemaster Certificate of Competency in 1982 and is a Member of the American Society of Safety Engineers (ASSE) in Encik Azman has over 25 years of Oil & Gas ( OAG ) Industry experience mainly in the installation of subsea pipelines, installation of platforms and jackets, SBMs, FSO, underwater diving and ROV inspection, repair and maintenance of OAG facilities. Encik Azman worked for many established OAG companies such as Sarawak Shell Berhad, Esso Production Malaysia Inc, TL Offshore Sdn Bhd, Sapura Energy Sdn Bhd and Alam Maritim Group and has held various positions such as Construction Superintendent, Senior Operations Manager and Managing Director. ENCIK AZMAN SHABUDIN Aged 53 Malaysian Vice President, Special Project of GOM Resources Encik Zameri Embong commenced his career in 1989 as a Sub-Surface/Reservoir Engineer and has more than 23 years of working experiences, Encik Zameri has worked for Petronas, Petronas Carigali Sdn Bhd ( PCSB ), Petrofac and Sarawak Shell Berhad in various capacities including Project Manager (Petronas Group Tender & Contracts), Senior Manager (PCSB-SCM), General Manager (PCSB-SCM), Head (PCSB Well Operations) and Head of Business Development (Petrofac E&C) and Senior Procurement Manager (Projects) for Sarawak Shell Berhad. Encik Zameri received his BSc in Petroleum Engineering from the University Technology of Malaysia in 1987 and brings with him wide management experience in the OAG strategy, contracts and procurement operations. ENCIK ZAMERI EMBONG Aged 47 Malaysian Vice President, Commercial & Risk Department of GOM Resources Puncak Niaga Holdings Berhad Annual Report 2012

78

79 With teamwork, there are no limits to growth

80 78 Five-Year Financial Highlights 31 Dec Dec Dec Dec Dec 08 (Restated) (Restated) (Restated) (Restated) RM 000 RM 000 RM 000 RM 000 RM 000 KEY RESULTS Revenue 3,743,935 2,591,509 # 2,055,523 # 2,089,855 # 2,062,653 # Profit before tax 298,304 (74,572) # (108,658) # (78,979) # (313,185) # Net Profit attributable to owners of the parent 238,082 9,911 # ^ (19,524) # ^ 6,240 # ^ (123,816) # ^ STATEMENTS OF FINANCIAL POSITION Property, plant and equipment 462, ,829 # 245,324 # 234,313 # 254,451 # Service concession assets 7,686,187 7,694,674 # 7,685,002 # 7,647,906 # 7,600,899 # Other non-current assets 3,221,178 2,421,135 # ^ 1,182,934 # ^ 1,161,173 # ^ 966,110 # ^ Current assets 2,064,866 1,738,017 2,395,880 1,994,738 1,388,883 Total assets 13,434,462 12,306,655 11,509,140 11,038,130 10,210,342 ISSUE AND PAID-UP CAPITAL Share capital 411, , , , ,143 Reserves 95,848 (138,931) # ^ (199,562) # ^ (135,749) # ^ (54,092) # ^ Equity attributable to owners of the parent 506, ,212 # ^ 211,581 # ^ 275,394 # ^ 357,051 # ^ Net assets per share attributable to owners of the parent (RM) # ^ 0.52 # ^ 0.67 # ^ 0.87 # ^ RATIOS AND STATISTIC Net profit margin attributable to owners of the parent (%) # ^ (0.95) # ^ 0.30 # ^ (6.00) # ^ Basic earnings per share attributable to owners of the parent (sen) # ^ (4.77) # ^ 1.53 # ^ (30.27) # ^ Loans and borrowings (RM 000) 5,655,789 5,512,129 5,486,963 5,376,769 4,462,226 Service concession obligations 4,046,085 4,169,538 # 4,285,000 # 4,369,135 # 4,444,042 # Gearing ratio (%) # ^ 98 # ^ 98 # ^ 100 # ^ Current ratio (times) # 0.85 # 1.22 # 0.98 # # These comparatives have been restated to take into account the effects of the adoption of IC Interpretation 12 : Service Concession Arrangement ^ These comparatives have been restated to take into account the effects of the adoption of MFRS Annual Report 2012 Puncak Niaga Holdings Berhad

81 79 REVENUE RM ,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 3,743,935 2,591,509 2,055,523 Five-Year Group Performance ,089, ,062,653 NET PROFIT ATTRIBUTABLE TO OWNERS OF THE PARENT RM 000 BASIC EARNINGS PER SHARE ATTRIBUTABLE TO OWNERS OF THE PARENT Sen , , , ,000 50, , , , , , (19,524) 2010 (4.77) , (123,816) 2008 (30.27) EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT RM , , , , , ,000 TOTAL ASSETS RM ,000,000 6,000,000 9,000,000 12,000,000 15,000, , ,434, , ,306, , ,509, , ,038, , ,210,342 NET ASSETS PER SHARE ATTRIBUTABLE TO OWNERS OF THE PARENT RM Puncak Niaga Holdings Berhad Annual Report 2012

82 80 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 83, ,000 94,550 27,560 50,977 22,632 48,810 15,541 10,501 15,212 7,045 8,354 12,891 33,955 65, ,330 Traded ( 000) PNHB Monthly Average Closing Prices (RM) FTSE Bursa 1,521 1,570 1,596 1,571 1,581 1,599 1,632 1,646 1,637 1,673 1,611 1,689 1,628 1,638 1,672 1,668 Malaysia Kuala Lumpur Composite Index ( KLCI ) Monthly Average Closing Prices Share Price (RM) KLCI 2,000 1,750 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 Annual Report 2012 Puncak Niaga Holdings Berhad

83 81 Financial Calendar MAY 2012 TUESDAY First Quarter Results ended 31 March FEBRUARY 2013 THURSDAY Fourth Quarter Results ended 31 December AUGUST 2012 WEDNESDAY Second Quarter Results ended 30 June NOVEMBER 2012 TUESDAY Third Quarter Results ended 30 September APRIL 2013 MONDAY Audited Financial Statements for the financial year ended 31 December JUNE 2013 TUESDAY Published Annual Report JUNE 2013 WEDNESDAY Sixteenth Annual General Meeting Puncak Niaga Holdings Berhad Annual Report 2012

84 Nothing builds teamwork as effectively as challenges

85

86 84 Operations Review Puncak Niaga (M) Sdn Bhd 2012 MARKED ANOTHER SUCCESSFUL YEAR FOR PUNCAK NIAGA (M) SDN BHD ( PNSB ) IN THE OPERATION OF ITS WATER TREATMENT PLANTS ( WTPS ) AND DAMS. DESPITE THE MANY CHALLENGES FACING THE COMPANY WHICH HAD A CONSIDERABLE IMPACT ON PNSB, PNSB S FACILITIES PERFORMED ABOVE THEIR DESIGN SPECIFICATIONS TO PRODUCE HIGH VOLUMES OF TREATED WATER OF EXCELLENT QUALITY, AND PNSB SUCCESSFULLY CARRIED OUT A NUMBER OF PLANT IMPROVEMENT WORKS, AS WELL AS INITIATING SOME IMPROVEMENTS WORKS IN THE IMPROVEMENTS MADE TO OUR PLANTS DURING THE LAST YEAR FURTHER ENHANCED OPERATIONAL RELIABILITY AND EFFICIENCY AND ENABLED PNSB TO MEET AND INDEED EXCEEDED ITS KEY PERFORMANCE INDICATORS ( KPIS ) FOR WATER QUALITY AND PRODUCTION, BUT PNSB S BOTTOM LINE INEVITABLY WAS AFFECTED BY THE BUDGETARY IMPASSE. On a more positive note, environmental sustainability is a fundamental objective of PNSB, and in the year under review PNSB made further progress towards environmental sustainability. For more information on environment sustainability, please refer to the Preserving Our Environment section on pages 150 to 163 of this Annual Report. WATER TREATMENT PLANT OPERATIONS PNSB operates, manages and maintains 29 WTPs with a combined capacity of 1,930 million litres per day. PNSB delivered million cubic metres of treated water in 2012, 1.07% more than the million cubic metres produced in Higher demand for treated water from Syarikat Bekalan Air Selangor Sdn Bhd ( SYABAS ) accounted for the increased production level. In 2012, our WTPs submitted water samples to both our Central Laboratory and the Independent Laboratory to carry out 21,945 tests, and the results showed an impressive 99.8% compliance with the stipulated treated water quality standards. A reliable supply of treated water is no less critical than its quality, and PNSB strives to limit the number of unscheduled WTP shutdowns to ensure that consumers can depend on a constant supply of treated water. During the year, however, rainfall caused landslips which resulted in increased water turbidity. Although the design capacity of the WTPs is adequate to cope with this eventuality, several crucial processes needed adjustment, for which SYABAS Capital Expenditure ( CAPEX ) Programme funding was not available. As a consequence, on various occasions a number of WTPs were compelled to shut down due to raw water violations. In total, in 2012, our WTPs experienced hours of shutdown for reasons beyond our control (as shown in Table A). Despite this, throughout the year, all our WTPs consistently met production demands and PNSB was successful in providing dependable supplies of treated water. Cause of WTP shutdown Hours of shutdown PNHB s/ PNSB s Headquarters in Wisma Rozali, Shah Alam Raw water violation TNB power supply interruption Pipe leak/burst Total Hours Table A: Causes and number of hours of WTPs shutdown Annual Report 2012 Puncak Niaga Holdings Berhad

87 The performances of our WTPs in 2012 were as follows: The Sungai ( Sg ) Selangor Phase 2 ( SSP2 ) WTP produced million cubic metres of treated water, a slight decrease of 0.72% from the million cubic metres recorded in The average daily production dipped to million litres from million litres in 2011, but the plant s performance still exceeded its daily design capacity of million litres. The Wangsa Maju WTP produced million cubic metres of treated water in 2012, 6.21% less than the million cubic metres it generated in the previous year. The average daily production was million litres as against million litres in The plant s daily design capacity is 45 million litres, and its daily designated quantity in accordance with the Concession Agreement is million litres. 85 Operations Review Puncak Niaga (M) Sdn Bhd The Sg Sireh WTP produced a total of 7.56 million cubic metres of treated water last year, recording an 8.46% increase on the 6.97 million cubic metres produced in The average daily production rose to million litres from million litres in The plant s daily design capacity is million litres. The Sg Lolo (new) WTP recorded 999,974 cubic metres of treated water production last year, representing a slight drop of 1.77% from the 1,017,998 cubic metres produced in The average daily production was 2.74 million litres compared to 2.79 million litres in the previous year. The plant s design capacity is 2.50 million litres daily. 26 WTPs fall under the Privatisation Cum Concession Agreement dated 22 September 1994 ( PCCA ) and collectively, they produced million cubic metres of treated water last year, a 3.20% increase from the million cubic metres recorded in The average monthly treated water production for 2012 was million litres against million litres in The WTPs exceeded their monthly designated quantity of million litres as stipulated in the PCCA. In 2012, the 29 WTPs performed admirably, both in terms of quantity and quality, meeting SYABAS requirements for treated water and the Drinking Water Quality Standards as determined by the Ministry of Health ( MOH ). PLANT IMPROVEMENT WORKS In 2012, the 29 WTPs performed admirably, both in terms of quantity and quality, meeting SYABAS requirements for treated water and the Drinking Water Quality Standards as determined by the Ministry of Health Reflecting its steadfast commitment to providing a stable and efficiently produced water supply, PNSB successfully carried out a number of plant improvement works in Sg Langat WTP: Electrification of Two Raw Water Pumps and Replacement of Bandscreen No. 2 The prime mowers of the 8 MDG raw water pumps were converted from diesel engines to electric motors. The electric motors are a more economical means of driving the pumps and have the added benefit of generating less noise pollution and creating a cleaner environment. A new chain link system, complete with nylon rollers, carbon steel pins and bushes was installed to replace the worn-out Bandscreen No. 2. The refurbished Bandscreen has enhanced screening at the intake, preventing unwanted floating debris from entering the WTP and damaging plant equipment. PNSB operates and manages Sg Langat Dam Puncak Niaga Holdings Berhad Annual Report 2012

88 86 Cheras Mile 11 WTP: Replacement of Electrical Motor for Raw Water Pump One of the two 4.5 MGD raw water pumps received a new electric motor. The old motor was then refurbished to its original condition and is now kept as a spare unit at the WTP. Operations Review Puncak Niaga (M) Sdn Bhd Batang Kali WTP: Installation of New Air Blower The plant s filter back-washing system had been using air compressors until the 2012 upgrade to a new, enhanced air blower. The upgrade has improved the filter s performance and reduced the mud balls at the filter bed. SSP2 WTP: Installation of New Post-Chlorine System The new post-chlorine system replaced the older, inefficient chlorine system which had been running since the WTP s inception in 1998 to achieve the operational requirement for treated water quality. Most of the original system s internal and external components had corroded, and its performance was diminished. In 2012, PNSB initiated the following plant improvement works:- Replacement of filter media and associated works for the Gombak WTP, Sg Batu WTP, North Hummock WTP and Rantau Panjang WTP Installation of auto-chlorine emergency shut-off system at seven WTPs namely, Sg Pangsoon WTP, Salak Tinggi WTP, Sg Rumput WTP, Kepong WTP, Batang Kali WTP, Sg Buaya WTP and North Hummock WTP Installation of new overhead cable at the Cheras Mile 11 WTP Rehabilitation and upgrading of 110VDC supply system at the SSP2 WTP Rehabilitation and upgrading of condition monitoring system at the SSP2 WTP Rehabilitation and upgrading of pre-chlorination system at the SSP2 WTP Upgrading of Siemens S5 PLC to Siemens S7 PLC system at the SSP2 WTP Rehabilitation and upgrading of automation system for filtration plant at the Wangsa Maju WTP Rehabilitation of automation system for filtration plant at the SSP2 WTP Installation of automatic carbon dioxide fire suppression system at the Sg Langat WTP 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 the Preserving Our Environment section on pages 150 to 163 of this Annual Report. Water Quality Testing at WTP Annual Report 2012 Puncak Niaga Holdings Berhad

89 Raw Water Drawn for Treatment 87 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 Selangor 393,963,473 2 Sg Bernam 11,526,977 3 Sg Dusun 488,755 4 Sg Tengi 635,379 5 Sg Batang Kali 5,044,594 6 Sg Darah 206,627 7 Sg Gerachi 2,420,317 8 Sg Inki 2,308,354 9 Sg Ampang 6,807, Sg Gombak 12,417, Sg Rumput 416, Sg Rangkap 3,256, Sg Kepong 858, Sg Langat 193,552, Sg Labu 1,808, Sg Pangsoon 1,358, Sg Lolo 1,754, Sg Serai 435, Sg Sireh 9,375, Klang Gates Dam 63,216, Tasik Subang Dam 5,072, Batu Dam 45,317,890 Operations Review Puncak Niaga (M) Sdn Bhd Sedimentation tank at Sg Batu WTP Total 762,242,440 DAM OPERATIONS PNSB operates and maintains the Sg Langat, Klang Gates and Tasik Subang Dams in accordance with the Guidelines for Operation, Maintenance and Surveillance of Dams issued by the Malaysian Inter-Departmental Committee on Dam Safety, October Performance in 2012 was good, and there was no critical storage drawdown at any of the Dams. During the year, total annual rainfall at two of the three Dam catchment areas was lower than the mean average rainfall based on data from 1998 to 2011, but higher at the third Dam catchment area, as shown in Table B:- Mean Variance Annual rainfall average rainfall against Dam 2012 (mm) (mm) average (%) Sg Langat Dam 2, , Klang Gates Dam 2, , Tasik Subang Dam 2, , Actifl o plant inspection at SSP2 WTP Total 7, , Table B: Annual Rainfall 2012 Puncak Niaga Holdings Berhad Annual Report 2012

90 88 Operations Review Puncak Niaga (M) Sdn Bhd To ensure the safety and stability of the Dams, PNSB completed an annual Dam Visual Safety Inspection in 2012, including a field inspection and an instrumentation analysis for all major Dam structures and M&E equipment. No major deficiencies were identified except for the gate and control valves at the Sg Langat Dam drawn off tower, which need to be replaced on an urgent basis. The replacement work is presently undertaken by the Selangor State Government through their appointed consultant and contractor. The Dam operations staff utilise the Reservoir Operations Rules Curves ( RORC ) methodology to decide a release rate from the dams based on current dams storage and expected rainfall throughout the year. This helps the operators to meet the demand from the WTPs while conserving as much reservoir water as possible. At Sg Langat Dam, the reservoir levels were maintained above RORC No. 1 throughout 2012, while at the Klang Gates Dam, the reservoir level was drawn down below RORC Nos. 2 and 3 from early September 2012 until the end of October The Tasik Subang Dam s reservoir level was drawn down below RORC No. 1 from mid August 2012 until the end of October All three Dams, however, met the water demand of the respective WTPs. With prudent, proper and effective planning for the management of the dams, PNSB ensures the sustainability of the water supply in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya With prudent, proper and effective planning for the management of the dams, PNSB ensures the sustainability of the water supply in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. One component of PNSB s commitment to corporate social responsibility ( CSR ) is a standing invitation to the various stakeholders to visit the dams with the objective of educating guests on the dams functions and operations. In 2012, PNSB welcomed visitors from schools, universities, government agencies, NGOs and the general public. Prominent organisations that visited the dams included Jabatan Pengairan Dan Saliran, Pejabat Pegawai Keselamatan Kerajaan Malaysia and Lembaga Urus Air Selangor. CERTIFICATIONS ISO 9001:2008 (Quality Management System) In 2012, additional nine WTPs had been certified with ISO 9001:2008 Quality Management System ( QMS ). As at August 2012, all Regional Offices and 26 WTPs have obtained the internationally recognised standard ISO 9001:2008 QMS certification. The ISO 9001:2008 certification reflects PNSB s commitment towards Quality Management in managing the WTPs. ISO (Environmental Management System) SSP2 WTP had successfully maintained the certification until todate. OHSAS 18001:2007 (Safety Management System) 27 of our WTPs and three Regional Offices have successfully maintained the certification todate. INFORMATION AND COMMUNICATIONS TECHNOLOGY ( ICT ) In 2012, PNSB s Information Technology Department ( ITD ) continued to introduce technologies that provide strategic tools for business success, implementing systems that reduce manual processes, improve work-flow and standardise procedures. Annual Report 2012 Puncak Niaga Holdings Berhad

91 Business Applications ITD continued to enable process improvements and Standard Operating Procedures ( SOP ), and to centralise information via a work-flow application, working closely with each division to migrate all manual processes to the online system. ITD also implemented improved Human Resources Administration and Accounting systems that monitor manpower, manage capital resources and analyse costing strategies. IT Infrastructure Platform 89 Operations Review Puncak Niaga (M) Sdn Bhd ITD developed and deployed a computer data centre infrastructure, equipped with virtualised systems and high-availability system management. The data is designed to operate without downtime. PREVENTIVE MAINTENANCE Predictive & Preventive Plant Maintenance Throughout the year we undertook systematic monitoring and maintenance of plant and equipment to ensure the smooth and continuous operation of all our 29 WTPs. Predictive and preventive plant maintenance follows an annual maintenance plan, and performance was closely monitored by two maintenance software systems, Maximo and Maintpro. In 2012, our WTP staff conducted 25,128 preventive maintenance works. Preventive IT Maintenance Preventive IT Maintenance is important to ensure that all systems are running smoothly. As in previous years, PNSB s ITD continuously supported and maintained all the 29 WTPs via its programme of scheduled preventive IT Maintenance. For servers and critical equipment, preventive IT Maintenance is conducted every six months. For 2012, ITD conducted a PC replacement programme to further improve its productivity as well as to reduce maintenance cost. This programme shall be a continuous effort by ITD on a yearly basis for IT assets that are more than five years old. WATER FACTS A person can live for weeks without food. Without water, a person can only live a few days INNOVATIVE AND COST-CUTTING MEASURES PNSB on a yearly basis conducts Innovative & Creative Circle ( ICC ) Programme to encourage staff to generate innovative inventions or measures. Details of the activities and achievements of the Company s ICC Programme are set out under the Quality Policy & Report section on pages 214 to 215 of this Annual Report. ACHIEVEMENTS On 11 October 2012, PNSB achieved the Bronze Award for the 12 th Malaysia HR Awards 2012 Employer of Choice. In 2012, the Sg Selisek, Kalumpang, Sg Batu, Bukit Tampoi, Wangsa Maju and SSP2 WTPs won Gold (Class I) Awards from the Malaysian Society for Occupational Safety & Health ( MSOSH ), while the Sg Dusun and Ampang Intake WTPs received Gold (Class II) Awards from MSOSH. The National Council of Occupational Safety & Health ( NCOSH ) honoured the Sg Langat WTP with a Gold Trophy Award under the water utility sector on 30 October Water quality inspection at Central Laboratory PNSB s Central Laboratory s/ssp2 WTP Laboratory s high standards for training, health and safety earned them the Institut Kimia Malaysia ( IKM ) Laboratory Excellence Award 2012 on 30 November Puncak Niaga Holdings Berhad Annual Report 2012

92 90 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd THOUGH 2012 WAS ANOTHER CHALLENGING YEAR FOR SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ), THE SOLE WATER DISTRIBUTOR FOR SELANGOR AND THE FEDERAL TERRITORIES OF KUALA LUMPUR AND PUTRAJAYA, THE COMPANY SUCCEEDED IN ACHIEVING ALL OF ITS KEY TARGETS FOR THE MANAGEMENT AND STAFF OF SYABAS REMAINED COMMITTED, DEDICATED AND HARDWORKING TO CONTINUE TO DELIVER TO THE BEST OF THEIR ABILITIES IN CHALLENGES Water demand in 2012 in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya grew with an average production for 2012 of 4.30% as compared to 2011, while the metered consumption grew with an average production for 2012 of 3.70% as compared to Against this backdrop, in 2012, there was very tight treated water supply-demand situation in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya which resulted in water supply interruptions from time to time in various areas namely, Sg Way in Petaling District, Hicom in Klang District, Bukit Gasing in Petaling District, Meru in Klang District, Wisma Putra, KL Sentral and Cheras in Kuala Lumpur District. The reserve margin for the supply of treated water is standing at less than 3% of the average demand for Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. The reserve margin will still remain below 3% of the average demand even with the completion in due course of the ongoing KeTTHA Mitigation 1 and Mitigation 2 Programme as approved by the Federal Government for increased treated water distributable capacity, as the supply capacity from these programmes can hardly meet the increasing water demand. Unless more programmes to increase the supply of treated water are implemented by the Government, the critical water supply situation will persist and continue into 2013 with the continued increase in demand for treated water but with limited additional distributable capacity. The thin reserve margin of treated water supply with no certainty of any new additional water supply has compelled SYABAS not able to provide support of any new development projects due to consideration of the potential legal implication. In 2012, SYABAS deferred its support for 450 projects relating to additional water demand. This matter has been communicated to the regulator, the National Water Services Commission [Suruhanjaya Perkhidmatan Air Negara] ( SPAN ) for their direction. The impending issue of the Selangor State Government s Proposed Restructuring since 2008 and the refusal of the Selangor State Government from 1 January 2009 to either gazette the water tariff adjustment or to pay compensation in lieu thereof under the Concession Agreement dated 15 December 2004 signed between SYABAS, the Federal Government and the Selangor State Government ( SYABAS Concession Agreement ) continued, further add on to SYABAS constraints on its financial capacity. Media briefing on water crisis This also continued to prevent SYABAS from drawing down its arranged loan facilities or taking on any new commercial loans which resulted in insufficient cash flow to fully pay the water treatment operators. The accumulated outstanding debt to water treatment operators has sparked legal suits of claims by all 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 ). The cash flow problem has also further hampered the SYABAS Capital Expenditure ( CAPEX ) programme, which has remained frozen since 2008 except for very critical projects, particularly to reduce the Non-Revenue Water ( NRW ) and rehabilitating the old distribution assets. Annual Report 2012 Puncak Niaga Holdings Berhad

93 The frozen SYABAS CAPEX programme resulted in numerous and frequent pipe bursts and water supply interruptions, to the inevitable detriment of service levels. In 2012, it was once again impossible to rehabilitate or upgrade many old assets, while some were required to operate in overload mode, thereby causing further failures. These occurrences whilst not only increased operation and maintenance costs, also thwarted any reduction in NRW, resulting in a higher purchase cost of treated water. Despite the above challenges, 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 2012 including solving the water crisis in Hulu Langat in 2012 and Wangsa Maju in the beginning of This was made possible mainly as a result of the dedication and commitment of the Management and staff of SYABAS to the consumers. 91 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd ACHIEVEMENTS In 2012, despite the many challenges, SYABAS to the best of its ability, continued to maintain the high service levels as required by the SYABAS Concession Agreement and the Ministry of Health s ( MOH ) National Standard for Drinking Water Quality (2004) ( NSDWQ ). As a result, SYABAS successfully exceeded the 2012 performance targets it had set for itself, which were higher than the requirements of the SYABAS Concession Agreement. In a bid to continue to supply consumers with good quality treated water in 2012 with limited funding for CAPEX investment, SYABAS continued to focus on enhancing its operating standards and efficiency by upgrading and improving the existing Standard Operating Procedures ( SOP ), introducing new SOPs, researching into more efficient methodologies and making internal innovations with cost optimisation. SYABAS also implemented a very critical CAPEX programme with the limited approval of work programmes by SPAN in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya and the programmes carried out were mainly for the rehabilitation and upgrading of pumphouses and leaking water tanks, improvement of distribution network to resolve low pressures zones, and preventing the NRW from creeping up. In 2012, SYABAS responded to 93.90% of all water quality complaints within half an hour and also boosted its Billing and Collection Efficiency, the details of which are as set out in the headings Immediate Response to Consumer Complaints and Billing & Collection, respectively in this Operations Review. Despite the SYABAS CAPEX freeze, the average 2012 NRW level for Selangor and the Federal Territories of Kuala Lumpur and Putrajaya was computed as 33.06%, and lower than the targeted 2012 NRW target of 33.49%. However, the NRW level increased by 0.75% compared with 2011 average of 32.31%. Details of NRW are set out under the heading Non Revenue Water of this Operations Review. In 2012, despite the many challenges, SYABAS to the best of its ability, continued to maintain the high service levels as required by the SYABAS Concession Agreement and the Ministry of Health s National Standard for Drinking Water Quality (2004) As part of SYABAS continuous effort to further enhance customer service, with effect from 1 January 2013, PUSPEL was upgraded to double its capacity to handle customer calls. Various upgrading of facilities were carried out too to provide better service to consumers including more conducive working environment for SYABAS staff. In 2012, SYABAS received the Anugerah Industri Sukan Negara 2012 Promosi Gaya Hidup Sihat Melalui Sukan. SYABAS also earned the Malaysian Society for Occupational Safety & Health ( MSOSH ) Awards for all of its ten districts in Seven Districts, namely Kuala Lumpur, Hulu Langat, Petaling, Gombak, Sabak Bernam, Hulu Selangor and Kuala Selangor obtained Gold (Class I) Awards. Three districts, namely Kuala Langat, Sepang and Klang, earned the Gold (Class II) Awards. Three SYABAS districts were accredited with OHSAS 18001:2007 (Health and Safety). In addition, SYABAS Human Resources & Administration Department was awarded with ISO 9001:2008 certification in Puncak Niaga Holdings Berhad Annual Report 2012

94 92 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd WATER DISTRIBUTION SERVICES In 2012, SYABAS distributed a daily average of 4,322 MLD of treated water to about 7.50 million residential and commercial consumers in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. This amounted to 179 MLD (4.30%) of treated water more than in SYABAS maintains 26,425 km of water pipes, 1,527 service reservoirs, elevated water tanks and suction tanks; and 589 booster pumping stations. The number of these assets increased by 1.1%, 3.9% and 5.7% 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 eight years since the signing of SYABAS Concession Agreement, SYABAS has achieved a reduction in NRW from 42.78% as at 1 January 2005 to 33.06% as at 31 December 2012, as shown in Table A: Metered Water Input Consumption NRW Period MLD MLD MLD % ,766 2,155 1, ,322 2,893 1, Difference in figures for 2005 and Note: (1) Unbilled Authorised Consumption averaging 0.5% has been included and counted as NRW Table A: NRW Reduction Achievement The average 2012 NRW recorded at 33.06% was compared favourably with the Company s targeted 2012 NRW of 33.49%. Since 2008, the CAPEX freeze has prevented SYABAS from carrying out any but very critical works to reduce NRW, and the saving from critical works is only sufficient to offset the increase in leakage due to the Natural Rate of Rise. Nevertheless, despite limited CAPEX and the effect of the ageing distribution network in 2012, SYABAS was able to sustain the NRW at the level achieved by the end of 2008 recorded at 33.17%. Without the various diligent efforts by SYABAS, the NRW level would have crept up to a much higher level. NRW Reduction Works in 2012 SYABAS operation on illegal water piping The replacement of 210 km of pipes under the KeTTHA Mitigation 1 Programme for 30 critical areas at an approved budget of RM170.0 million progressed on schedule. The four-year programme began in 2011 with a target completion date of Eight pipe replacement packages comprising 59 km of pipes were completed in 2012 and another 22 packages are scheduled to be implemented in SYABAS was also granted approval by SPAN to carry out a number of critical NRW programmes using its own internal funding, as follows:- (a) Between February and November 2012, large area pressure management using the Advanced Pressure Management ( APM ) system known as i20 technology was implemented for four new Pressure Management Zones ( PMZ ), namely Kuala Langat, Kuala Selangor and Hulu Selangor (two numbers). The pressure controls achieved a cumulative saving of 8 MLD as against a target of 4 MLD. Annual Report 2012 Puncak Niaga Holdings Berhad

95 (b) Between April and December 2012, i20 APM systems were installed at 20 zones in existing District Metering Zones ( DMZ ) in the Petaling, Klang, Hulu Langat and Gombak Districts, saving 4 MLD, as per the target set previously. (c) The NRW Phase 3 programme also continued. This is a long term performance contract awarded in 2007 for completion by the end of 2013 with a target to achieve a cumulative saving of 300 MLD by June As at June 2012, a total saving of 303 MLD had been achieved. In addition, under the approved programmes for 2012, SYABAS embarked on two meter replacement programmes to further reduce commercial losses. Between May and December 2012, 180,000 aged meters (nine years and above) were replaced, realising commercial gains of about 18 MLD. Meanwhile, the replacement of AMR EM Flow Meters at 100 large consumer accounts commenced in January 2013 and is expected to be completed by May 2013 with total predicted gains of 5 MLD. 93 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Other NRW activities by SYABAS in-house teams included reservoir overflow monitoring and the maintenance and monitoring of 80 KTAK DMZ and 112 PMZ. Factors such as the CAPEX freeze are outside SYABAS control and materially affect its ability to reduce NRW. Accordingly, to allow for the impact of these uncontrollable factors, SYABAS has applied to SPAN and the Selangor State Government to revise the NRW KPI target in SYABAS Concession Agreement to allow for the impact of the uncontrollable factors. To date no decision has been reached for the application. CAPEX WORKS Under the privatisation of water supply services in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, SYABAS, as the concessionaire, has put in place a CAPEX programme for the rehabilitation and upgrading of the water distribution assets it operates. The CAPEX programme for 2011 and 2012 was funded mainly from RPS 2009 (RM65.24 million), RPS 2010 (RM million) and SYABAS internal funding (RM million). The cumulative CAPEX expenditure from 1 January 2005 to 31 December 2012 amounted to RM2,537.1 million. In year 2012, a total expenditure of RM77.12 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. As mentioned under the heading Achievements of this Operation Review, SYABAS also implemented very critical CAPEX programme with the approval by SPAN in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. The programmes carried out were mainly for the rehabilitation and upgrading of pumphouses and leaking water tanks, improvement of distribution network to resolve low pressure zones, and preventing the NRW from creeping up. In 2012, SYABAS managed to complete 30 projects and commenced 44 projects. As mentioned under the heading, Non Revenue Water of this Operation Review, the replacement of 210 km of pipes under the KeTTHA Mitigation 1 Programme for 30 critical areas at an approved budget of RM170.0 million progressed on schedule with a target completion date of SYABAS Consumer Awareness Programme Puncak Niaga Holdings Berhad Annual Report 2012

96 94 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Operation Command Centre ( OCC ) and the Geographical Information System ( GIS ) In 2012, OCC has further expanded by the implementation and integration of a few systems thus further improved its operational capabilities. A new 2 Mbps leaseline, fully operational in November 2012 cater for additional 2000 remote monitoring sites (originally 250 remote sites). The status of implementation of the GIS/SCADA/Hydraulic Modelling-related works as at 31 December 2012 were as follows:- Phase 1A Development of GIS (Infrastructure and Application) The GIS captures information on pipeline and reservoir for all ten Districts and as of 31 December 2012, registered 26,433 km length of pipeline, 1,527 service reservoirs and 589 booster pumping stations. Phase 1B Development of GIS (Geo-Coding) 2,566 major consumers (0.1 MLD) have been geo-coded in their respective Districts. Phase 2 Development of SCADA with GIS and Network Modelling The data for the 250 remote sites can now be accessed and viewed over GIS system seamlessly without the need to access SCADA monitoring system directly which has only 20 connection licences to key Departments and users. This has made the SCADA data available to more staff for faster and better daily operation. Phase 3 Hydraulic Model Hydraulic models for all ten Districts were completed and are being deployed for use of planning and operations. WATER QUALITY ENHANCEMENT In 2012, SYABAS complied fully with MOH s NSDWQ and Quality Assurance Programme ( QAP ), as well as maintaining the Mandatory Level of Service ( MLS ) as stipulated in SYABAS Concession Agreement. The quality of the water supplied from Water Treatment Plants into SYABAS distribution system is both systematically monitored by MOH by way of sampling and testing and is tracked by its QAP. In 2012, MOH had carried out tests or analyses based on monthly average of 2,696 (as at 31 December 2012) water samples from 1,107 (as at 31 December 2012) sampling stations located at various treatment plant outlets, balancing reservoir outlets, service reservoir outlets and at the distribution pipelines in the concession area. Briefing on water status by YBhg Dato Ir Lee at Sg Langat WTP Since 2008, SYABAS has been aggressively implementing a Water Quality Improvement Master Plan ( WQIM Plan ), and the results have been excellent. The details of the programmes under the WQIM Plan namely, the Air Scouring Programme and the Reservoir Cleaning and Inspection Programme are set out in the Delivering Quality section on pages 111 to 123 of this Annual Report. Annual Report 2012 Puncak Niaga Holdings Berhad

97 Immediate Response to Consumer Complaints In 2012, SYABAS achieved a 93.90% compliance rate in responding to consumer complaints within half an hour. The immediate response to consumer complaints did not achieve a 100% compliance rate due to the receipt of some complaints at night. The total number of consumer complaints received during 2012 was 2,278. Consumer Awareness & Education Programme ( CAE Programme ) The CAE Programme s goal is to instil public confidence in the water quality provided by SYABAS and also to educate consumers about their responsibility for inspecting and maintaining their internal plumbing systems and storage tanks regularly. It also addresses misconceptions about household water filters. In 2012, SYABAS devised Standard Operating Procedures ( SOPs ) for the CAE Programme, as well as an enhanced consumer feedback survey to evaluate the programme s effectiveness. 95 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd For further details of the CAE Programme, please turn to the Preserving Our Environment section on pages 150 to 163 of this Annual Report. BILLING & COLLECTION SYABAS revenue and cash flow rely heavily upon the effectiveness of its Billing & Recovery Department, and efforts are constantly made to enhance the systems and processes for peak efficiency. As at 31 December 2012, the total number of active water supply accounts stood at 1,857,349, representing a growth of 3.6% from the 1,793,580 accounts recorded in Total billings during the year under review stood at RM1.598 billion, 4.3% up from the billing recorded in 2011 of RM1.532 billion. Table B shows billing records over the last eight years, demonstrating a cumulative growth of 49.3%. Year Billing (RM million) 1, , , , , , , ,597.8 Growth (%) 8% 6% 17% 5% 3% 4% 3% 4% Table B: Billing For The Last Eight Years YBhg Dato Ruslan giving a speech during SYABAS monthly assembly Puncak Niaga Holdings Berhad Annual Report 2012

98 96 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd Total current trade bill payments collected for the year stood at RM1.590 billion, of which is 4.0% higher than the RM1.529 billion collected in The overall 2012 collection efficiency was 99.5%. Total current trade receivables as at 31 December 2012 amounted to RM158.9 million, representing a 9.1% increase on the RM145.7 million reported in The higher amount derived from the rise in total billings during the year and the increase in the amount of free water rebate owed by the Selangor State Government. The debtors turnover in 2012 (excluding the debt owed by the Selangor State Government) stood at an average of 36 days as compared to 34 days in Aggressive monitoring and controls were put in place by the Management for more efficient recovery of debts. Disconnection actions as enforcement for bills collection increased by 18.2%, from 155,409 disconnections in 2011 to 183,740 disconnections in 2012, while the reconnection ratio improved from 85.2% in 2011 to 85.7% in 2012, attributed to the improved communication procedures put in place for the benefit of consumers. MIGRATION OF BULK METER WATER SUPPLY ACCOUNTS TO INDIVIDUAL METER WATER SUPPLY ACCOUNTS ( MIGRATION ) Migration of bulk meter water supply accounts to individual meter water supply accounts is still slow since it was available in May Majlis Penyampaian Hadiah Pelanggan Prihatin As at 31 December 2012, a total of 1,295 applications involving 267,307 individual accounts were received by SYABAS for processing. Out of the total applications received, 568 applications involving 114,233 individual accounts were approved for Migration while 289 applications involving 61,047 individual accounts completed the Migration Bulk Meter Individual Particulars Account Account No. of applications received 1, ,307 No. of applications approved ,233 No. of applications approved and migrated ,047 Table C: Progress of Migration from Bulk Meter Water Supply Accounts to Individual Meter Water Supply Accounts up to 31 December The Migration to individual meter account would enable the individual dwelling unit in an apartment or condominium to enjoy the domestic tariff rate for landed premises. The individual meter would be read and billed by SYABAS, and will facilitate SYABAS to enforce actions for non-payment accounts by disconnecting individual accounts instead of the bulk meter accounts which will affect all units of apartment or condominium. Briefi ng on water crisis that occured at four Districts, namely Petaling, Sepang, Hulu Langat and Kuala Langat Districts As shown in the above statistics, despite various efforts by SYABAS to promote Migration, it has been slow due to various factors. One of the alternatives as proposed by SYABAS to the authority is to make Migration mandatory, which is still pending the gazettement of the New Water Supply Rules under WSIA Annual Report 2012 Puncak Niaga Holdings Berhad

99 INFORMATION AND COMMUNICATION TECHNOLOGY ( ICT ) In 2012, ICT reinforced its capability to meet the increasing needs of SYABAS users. The increasing number of end users has resulted in higher transaction counts and more data. ICT staff employed effective maintenance practices to ensure high availability with no major disruptions. The average monthly service availability for all systems was 99.98%. SYABAS increasingly turns to ICT solutions to be more effective in its business activities, and in 2012, the staff continued implementation of 32 system enhancements and initiated 12 new projects. Some of the major projects included: A long-term asset replacement programme which kicked off in 2012 to maximise the utilisation of assets whilst maintaining stable cash flow planning. A new telephony system for the PUSPEL service centre which increased the number of lines to 120 to improve customers ability to access to PUSPEL. BASIS server hardware upgrades and a back-up system for district offices to ensure continuous availability and accessibility without disruption. New Spot Billing Machines and portable printers including Spot Meter Reading Software for the Billing & Recovery Department to replace the meter readers obsolete hand-held equipment. The launch of the Development Plan Approval Submission Management System ( edplas ) online, a value-added, internally developed initiative which allows users to apply to SYABAS online for water supply system plan approval. The implementation of a Point of Sale ( ipos ) system, a new collection system for all SYABAS counters to simplify the collection process and to reduce maintenance cost. Enhancement of the emesra intranet portal, a one-stop centre for all electronic communication between SYABAS employees, Departments and Districts, to ensure all information stays relevant and easy to access for SYABAS daily operation applications. 97 Operations Review Syarikat Bekalan Air Selangor Sdn Bhd OIL & GAS SAVING TIPS Keep your car well maintained In conclusion, the ICT Department accomplished all of its goals for Puncak Niaga Holdings Berhad Annual Report 2012

100 Operations Review Puncak Oil & Gas Sdn Bhd, GOM Resources Sdn Bhd and KGL Ltd. Tower operations running anchors & monitoring tension 98 IN 2012, PNHB S WHOLLY-OWNED SUBSIDIARY, PUNCAK OIL & GAS SDN BHD ( POG ) COMPLETED ITS FIRST FULL YEAR OF OPERATION IN THE OIL & GAS INDUSTRY VIA ITS WHOLLY-OWNED SUBSIDIARY, GOM RESOURCES SDN BHD ( GOM RESOURCES ) WHICH WAS ACQUIRED BY POG IN IT WAS A YEAR OF OUTSTANDING ACHIEVEMENT FOR PNHB GROUP IN THE OIL & GAS INDUSTRY. REVENUE FOR THE OIL & GAS DIVISION ALMOST TRIPLED TO RM778.0 MILLION FROM RM289.5 MILLION IN 2011, CONTRIBUTING 20.8% OF THE GROUP S REVENUE FOR THE YEAR BACKGROUND World primary energy consumption is projected to grow by 1.6% p.a. over the period 2010 to 2030, adding 39% to global consumption by 2030, with the annual growth rate standing at approximately 2.0% over the next decade. Some 96% of the growth is expected to come from countries outside the Organisation for Economic Co-operation & Development ( OECD ) area, with China as the most important consumer market. In Malaysia, where oil output has been falling over the past years, fresh attempts are being made to enhance production from existing and marginal fields and to boost the development of new fields in deeper offshore areas. Under the Economic Transformation Program ( ETP ), the Government is working towards building Malaysia into regional oil storage and trading hub. In addition, Malaysia is set to emerge as a top petroleum investment spot in 2013, as Petroliam Nasional Berhad ( PETRONAS ) places renewed emphasis on maximising domestic oil resources after years of international expansion. Indeed, PETRONAS has announced a plan to raise capital expenditures to US$59 billion over the next five years with the aim of increasing domestic production. Malaysia s petroleum industry therefore looks set to start the year on an optimistic note. (Source: Statistical Review of World Energy, June 2012) PUNCAK OIL & GAS SDN BHD ( POG ) In addition to the six months (primary) contract awarded on 23 December 2011, POG managed to secure extension contracts from Perunding Ranhill Worley-Muhibbah Consortium to provide work barge, work boat and support vessels for a regasification facilities project at Sungai Udang Melaka for Petronas Gas Bhd. The work barge can accommodate up to 300 workers while the work boat is used for anchor handling and towing. The contract also includes catering for contractor s live-in personnel. The Project was completed on 31 October In 2012, POG had a rationalization exercise. First, POG s office was relocated to Tower 1 Etiqa Twins, Jalan Pinang in June In October 2012, POG s employees were seconded to GOM Resources to build a committed team to enrich the Oil & Gas Division with diversity skills and experiences to deliver exceptional results for the client. GOM RESOURCES SDN BHD ( GOM RESOURCES ) Construction crew working in the pipe tunnel 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 had a proven track record in undertaking oil and gas works, both at home and abroad with range of expertise from simple jobs to highly complex jobs. KGL LTD. ( KGL ) KGL is involved in the business of offshore leasing of vessels on bareboat basis. KGL owns the Derrick Lay Barge 264 ( DLB264 ). Annual Report 2012 Puncak Niaga Holdings Berhad

101 In 2012, GOM Resources completed the works of the Integrated Transportation and Installation of Offshore Facilities contract ( ) for Pipelay Barge Package A for Petronas Carigali Sdn Bhd as awarded by Petronas ( KPOC Project ) and was subsequently further awarded the Offshore Installation Contractor ( OIC ) status, which entails a contract (2010 to 2014). For the offshore installation and pipe laying works, GOM Resources operates the DLB264 which is owned by KGL. In 2012, apart from the KPOC Project , GOM Resources successfully brought the following projects to completion: 1. Kebabangan Petroleum Operating Company (KPOC) - Installation of KBB 24 x 123 km pipeline from Sabah Oil Gas Terminal ( SOGT ) to Kebabangan ( KBB ) - Installation of KBB 14 x 123 km pipeline from SOGT to KBB - Installation of KPOC - Malikai 1 km pipeline from KBB toward Malikai 99 Operations Review Puncak Oil & Gas Sdn Bhd, GOM Resources Sdn Bhd and KGL Ltd. 2. Petronas Carigali Sdn Bhd (PCSB) - Installation of Bekok 6 x 7.6 km pipeline from Tiong A to Bekok A - Pre-commissioning of 24 x 140 km pipeline from SOGT to KNPGB CHALLENGES The Group s Oil & Gas Division currently has only the Integrated Transportation and Installation of Offshore Facilities which has been renewed for one year (2013) with an extension option of one year. The Oil & Gas Division will have to make greater business development efforts to gain other Oil & Gas projects locally and overseas. One of the key challenges facing PNHB s Oil & Gas Division during the year was the need to integrate the Oil & Gas personnel into the Group s culture, vision and mission, apart from having to manage the human resources elements that arose from the impact of a company takeover. WATER FACTS Water helps to maintain a healthy body weight Monthly management visit to the DLB 264 was arranged to meet the client and the offshore crew to show that the new management is serious in the new business and in the project operation works and take great interest and time to meet the client and crew. Many other activities were organised for the Oil & Gas Division s staff such as luncheon, teambuilding, inter company bowling, majlis berbuka puasa and Safety Campaign. It is pleasing to report that the integration was well managed and achieved not only harmoniously but successfully and a new and entrepreneurial team spirit was built within the Oil & Gas Division. The Oil & Gas Division personnel has also participated in the Transformation and Motivational Programme arranged by the Group to ensure that the Oil & Gas Division is united with the Group in its vision and mission. ADVANCES IN INFORMATION TECHNOLOGY In parallel with the integration, the Information Technology Department of GOM Resources had diligently addressed the Oil & Gas Division s ever-changing technology needs to be in line with PNSB s SAP system whereby the Oil & Gas Division had implemented a full SAP System which went live on 7 January 2013 to provide better support for the client and the staff. Stalk-on riser installation at KNPGB Platform In 2012, apart from the successful implementation of a full SAP System, GOM Resources implemented a Computer Refresh Project whereby computers inventory was improved to better serve end-users; a GOM Resources Website ( was officially launched on 19 October 2012 to provide a greater emphasis on the range of products, services and vision and enable GOM Resources to communicate with the customers and to launch future online features and functionality; the existing GOM Resources network infrastructure was upgraded and configured into multiple segments or Virtual LANs. Puncak Niaga Holdings Berhad Annual Report 2012

102 100 Operations Review Puncak Oil & Gas Sdn Bhd, GOM Resources Sdn Bhd and KGL Ltd. One of the key challenges facing PNHB s Oil & Gas Division during the year was the need to integrate the Oil & Gas personnel into the Group s culture, vision and mission In 2012, KGL s pipelay barge DLB 264 was equipped with a satellite system (VSAT system) to provide data and voice communication service while at sea for the benefits of the crew/ staff and clients including contractors onboard the DLB 264. ACHIEVEMENTS For KPOC Project , GOM Resources successfully achieved a total Loss Time Injury free man-hours of 3,186,655 hours as at 31 December 2012, an outstanding achievement in preventing work-place injuries. This was achieved via the enforcement of the HSE related policies namely, HSE Protection Policy, Drug & Alcohol Abuse Policy, Smoking Policy and Stop Work For Safety Policy. GOM Resources HSE motto is Productivity is Priority, Safety is Mandatory. Another milestone for GOM Resources in 2012 is the certification from DNV Business Assurance Malaysia conforming GOM Resources Integrated Management System ( IMS ) accreditation, which consist of ISO (Quality Management System), ISO (Environment Management System), ISO/TS (Petroleum, Petrochemical and Natural Gas Industries Section Specific Quality Management System) and OHSAS (Occupational Health and Safety Management System). BUSINESS DEVELOPMENT Apart from local ground, the Oil & Gas Division is also focusing on an ambitious programme of expanding abroad to ASEAN countries and Turkmenistan. In September 2012, GOM Resources set up an Exploration & Production ( E&P ) department for purposes of evaluating and to conduct business development locally and in overseas. In 2013, POG incorporated a wholly owned limited company in The Republic of the Union of Myanmar, namely GOM Resources Limited, to undertake the business of transportation and installation of pipelines and other services for the onshore and offshore operations of the Oil & Gas industry. POG is currently in the process of registering a branch in Turkmenistan. Looking ahead, POG Group will aim to clinch potential Oil & Gas Projects and contracts locally and overseas and is building a committed team with a wealth of skills and experiences to deliver exceptional results for the Group and the client. POG Group will continue to grow its Oil & Gas operations organically and/or by merger and acquisition, and aims to be the worthwhile contributor to the Group s profitability within the next one to two years. Mattress installation on board DLB264 Annual Report 2012 Puncak Niaga Holdings Berhad

103 Between 2000 and 2050, the global demand for water is projected to increase by 55%. Many countries are increasingly recognising that water scarcity is a serious and growing concern. The inadequacy of the water supply will be further compounded by issues of water quality, and resolving the global water crisis will require a level of funding commensurate with the scale of the problem. (Source: Economic Intelligence Unit, December 2012 and World Bank, 2010) This situation augurs well for the Group to take on projects in the water, wastewater and environment related sector as well as the oil and gas sector, not just in Malaysia but in China, India and the ASEAN countries. 101 Business Expansion Nevertheless, given the volatile economic environment and political risks involved in overseas projects, our main focus remains the local market whilst cautiously looking at overseas for business expansion. MALAYSIA Sarawak Rural Water Supply Project The Rural Water Supply Project in Sarawak ( Sarawak BALB Project ) is a Federal Government initiative designed to upgrade the living standards of the rural population of Sarawak by providing clean piped water to over 91,000 households, thereby increasing the water coverage from 59% to 90% by the end of RM1.378 billion has been allocated for this purpose. The RM million contract for the Sarawak BALB Project clinched by the 40:60 unincorporated joint venture between Puncak Niaga Holdings Berhad ( PNHB ) and Quality Concrete Holdings Bhd, namely Konsortium Puncak Niaga Holdings Bhd Quality Concrete ( KPNHB-QC ), from the Rural and Regional Development Ministry ( KKLW ) involves 15 Work Orders. The scope of works includes pipe laying, reticulation works, and the construction and commissioning of three water treatment plants ( WTP ), booster pumping stations and reservoir covering six divisions from Kuching to Sibu. The successful implementation of the Sarawak BALB Project has given the Group a presence in Sarawak s waterworks industry sector As at 31 December 2012, KPNHB-QC completed ten of the Work Orders. The remaining Work Orders are expected to be completed by mid The successful implementation of the Sarawak BALB Project has given the Group a presence in Sarawak s waterworks industry sector and the Group is on the lookout to secure potential projects in East Malaysia in the near future. Selangor Kelana Jaya ( KLJ ) Line Extension Project The KLJ Line Extension Project, PNSB s RM15.3 million contract from Syarikat Prasarana Negara Bhd ( SPNB ) involving the relocation works of SYABAS water mains and Indah Water Konsortium Sdn Bhd ( IWK ) sewer pipes, is expected to complete in June Project Mass Rapid Transit (MRT) Lembah Klang The Relocation of The Existing Sewerage & Water Main For Cochrane Launching Shaft Package D2 Project was awarded to PNSB by SPNB. It involved relocating SYABAS main pipes and carrying out cement/sand grouting for existing sewer main pipes under the existing road, and was completed on 15 March Puncak Niaga Holdings Berhad Annual Report 2012

104 102 Business Expansion CHINA In the coming years, GDP growth in China is expected to moderate from the nearly 10% recorded over the first three decades of its reform period, though the growth rate should remain above 8% from 2013 to The projected slowdown is attributable to falling growth in demand for China s exports combined with reduced labour force growth and the slackening of productivity gains as a result of the shifting of labour from agriculture to industry and the adoption of various technologies. (Source: Organisation for Economic Co-operation and Development Southeast Asian Economic Outlook 2013) In line with China s rapid development, however, the need to tackle the issue of water supply and quality is especially acute. Indeed, water pollution is so widespread that 21% of available surface water resources are unfit even for agriculture. (Source: 2030 Water Resources Group, 2009) Via its 98.65% owned Singapore subsidiary, Sino Water Pte Ltd ( Sino Water ), the PNHB Group has been in the China market since 2008 and, currently, its projects in China include both water supply and wastewater projects. Lushan Water Supply Project Located in Lushan County, Pingdingshan City, Henan Province Luwei (Pingdingshan) Water Co Ltd, a Sino Water 91.94% owned China subsidiary, supplies water from a 2.0 million-litre-per day ( MLD ) underground water well pumping station to around 6,400 consumer accounts in Lushan County township. Water is abstracted from underground and supplied directly to consumers by six pumping stations, with the daily supply ranging from 1.4 MLD to 1.8 MLD. Phase 1 of the Lushan Water Supply Project, with an investment cost of RMB70.0 million, 66% funded by the World Bank Loan, involves rehabilitating the existing water distribution pipeline in Lushan County Township; building a new 30 MLD WTP and laying a 14.7 km raw water pipeline constructed of a combination of concrete and mild steel. This work is now complete and the WTP, which was successfully commissioned in November 2012, will become fully operational once the laying of the distribution pipeline crossing railway track is completed. With the new 30 MLD WTP, the existing private wells will gradually be closed. Over the next two years, it is expected that the number of consumer accounts will increase from 6,400 to 24,000, with the daily supply volume increasing to more than 11 MLD. More efficient systems for registering water usage, billings, collections and customer service will be established for implementation within the next two years in Lushan County Township to serve the estimated 130,000 population. Luwei (Pingdingshan) Water Co Ltd s Administrative Building Binzhou Wastewater Project Located in Yangxin County, Binzhou City, Shandong Province Sino Water s wholly owned China subsidiary, Xinnuo Water (Binzhou) Co. Ltd ( Xinnuo Co Ltd ) is responsible for the construction of a 30 MLD wastewater treatment plant ( WWTP ) in two phases of 15 MLD each. Annual Report 2012 Puncak Niaga Holdings Berhad

105 The WWTP is designed to treat high strength wastewater mainly from four tanneries located in Chen Lou Industry Park. The 15 MLD WWTP under Phase 1, with a total estimated investment cost of RMB43.0 million, became fully operational in August 2012 and the current treatment volume averages 5 MLD. Xinnuo Co Ltd has started billing the tanneries and collection is done via Laodian Town Government based on incoming wastewater flow, which is recorded at range of 2,500 3,000 m 3 /day. Due to the changes on the incoming waste parameters, after research was carried out by design institute and discussion with Yangxin County Government and Laodian Town Government, it was concluded that an upgrading to the existing treatment facility will be implemented. The upgrading work is expected to commence in May 2013 and completed by August Business Expansion The operation of Binzhou WWTP has helped to clean up the wastewater discharge by factories, thus improving the environment in Chenlou Industry Park. By the end of 2013, Chenlou Industry Park will house seven tanneries and it is expected that the daily wastewater discharge volume will increase to more than 10 MLD once the factories achieve full production. With the development of tannery factories at the Chenlou Industry Park, it is expected that the 2 nd phase work shall commence in Luancheng Dayu Water Supply Project Located in Luancheng County, Shijiazhuang City, Hebei Province Sino Water s 83.99% owned China subsidiary, Luancheng Dayu Water Supply Co Ltd, supplies water to around 3,500 consumers in Luancheng County Township. Water is abstracted from underground and supplied directly to consumers by ten pumping stations, with the daily supply ranging from 1.8 MLD to 2.5 MLD. OIL & GAS SAVING TIPS Purchase a more fuel effi cient vehicle 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, uses gravity flow to supply water abstracted from the Ba-Yi Reservoir via a 15.5 km pipeline directly to the thermal plant in Yuanshi County. PNHB is currently conducting a feasibility study on Phase 2 of this project, consisting of a 60 MLD domestic WTP and 55 MLD industrial WTP. There were no major construction works in INDIA Inadequate water supply and sanitation remain major issues in India, and the Group is exploring ways to capitalise on the governmental budgets allocated to these works so as to expand its programme of overseas business development. (Source: National Water Policy, New Delhi, 2002) For the period , growth in India is anticipated to remain relatively subdued at around 7%, held back by monetary policy tightening, stalled reforms, fiscal deficits, entrenched inflation, and electricity shortages, all of which in turn hamper investment activity. Luwei WTP s Filter Gallery (Source: World Bank Global Economic Prospects Volume 5) Puncak Niaga Holdings Berhad Annual Report 2012

106 104 Nevertheless, with India s population of nearly 1.2 billion, the demand for both clean and continuous drinking water and effective wastewater management is vast, and the government has allocated substantial budgets for infrastructure improvement works that are likely to continue for the next decade. This presents the Group with immense opportunities for expanding its overseas operations. Business Expansion (Source: UNICEF India Water Environmental and Sanitation) PNHB s wholly owned subsidiary in India, Puncak Niaga Infrastructures & Projects Private Limited ( PNIP Pte Ltd ) aims to establish itself as an effective Integrated Water, Wastewater and Environmental Solutions provider in India and to contribute significantly towards the expansion of PNHB abroad. Accordingly, PNIP Pte Ltd is currently exploring new business opportunities in the area of integrated water-related projects in India. ASEAN Vietnam In Vietnam, the GDP growth rate over the last ten years has averaged a relatively modest 7.3%, dampened by low internal and external demand. Externally, growth has been weakened in particular by the Eurozone crisis, the sluggish US recovery and slowing growth in China. The prospects for the year ahead are therefore not really positive. (Source: HSBC Vietnam Economic Outlook ) PNHB s Representative Office in Ho Chi Minh City continues to be on the lookout for potential water-related projects as well as the possibility of collaborating with local Vietnamese partners for potential oil and gas projects in Vietnam. Myanmar The Company s wholly-owned subsidiary, Puncak Oil & Gas Sdn Bhd ( POG ) has incorporated a wholly owned limited company in The Republic of the Union of Myanmar, namely, GOM Resources Limited, with an authorised capital of USD50, divided into 50,000 shares of USD1.00 each with 49,999 shares (99.99%) to be held by POG and 1 share (0.01%) to be held in trust by the Executive Chairman of PNHB, YBhg Tan Sri Rozali Ismail for the beneficial owner, POG. The Form of Permit (Temporary) and a Certificate of Incorporation (Temporary) were dated 9 January GOM Resources Limited will facilitate the PNHB Group to undertake the business of transportation and installation of pipelines and other services of the onshore and offshore operations of the oil and gas industry in Myanmar. The PNHB Group is also exploring potential water and wastewater related projects in Myanmar. Binzhou WWTP s Oxidation ditch Annual Report 2012 Puncak Niaga Holdings Berhad

107 SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ) 105 SYABAS ALWAYS GIVE ITS BEST TO PROVIDE ITS CUSTOMERS WITH SPEEDY, QUALITY, COURTEOUS AND EXCELLENT SERVICES. SYABAS HAS A HIGHLY ACCLAIMED AND AWARD WINNING ONE-STOP CONTACT CENTRE NAMELY, PUSAT PERKHIDMATAN PELANGGAN ( PUSPEL )/CONTACT CENTRE, COUNTER SERVICES, UNIT KERJASAMA INFORMASI PELANGGAN ( YAKIN ) AND THE INDUSTRIAL CONSUMER UNIT ( ICU ) TO SERVE ITS CUSTOMERS AND TO ENSURE BEST QUALITY SERVICES AT ALL TIMES EVEN EXCEEDING OUR CLIENT CHARTER. Delivering Service Excellence The five major integrated core functions of the Customer Service Department established by SYABAS as one of several consumer-oriented efforts and initiatives for the benefit of the consumers are namely, PUSPEL/Contact Centre, Counter Services, Unit Kerjasama Informasi Pelanggan ( YAKIN ), Industrial Consumer Unit ( ICU ), and Customer Database Management ( CDM ). PUSPEL/Contact Centre PUSPEL, a highly acclaimed and integrated consumer contact centre is 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. 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, launched on 10 January 2009 is 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 and follow PUSPEL via social network tools namely, Twitter and Facebook. 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 s staff practise SMART principles in their daily work, namely, S Smile, M Manageable, A Accessible, R Reliable and T Timely. PUSPEL maintains a CDM section. As at 31 December 2012, PUSPEL s CDM maintains a total of 1,033,081 customer contacts via a web-based application called Customer Database Repository System ( CDRS ) which has been set up both at SYABAS headquarters and at all ten district offices. PUSPEL targets a total of 1.6 million customer contacts for the CDM by year end. To ensure an immediate response to customer complaints, our PUSPEL agents are always ready to serve the consumers. All cases are recorded in our complaint management system known as the Pivotal System. The Contact Centre agents are able to update consumers on the current status of their enquiries or complaints promptly. PUSPEL s Call Agents attending to telephone calls 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. In order to deliver service excellence, except during crisis situation, it is our general policy that all calls received must be picked up in less than 6 seconds and the handling time within three minutes. Consumers are assured that their complaints will be attended to and addressed immediately. Puncak Niaga Holdings Berhad Annual Report 2012

108 106 PUSPEL continues to introduce initiatives and innovations that are geared towards increasing efficiency and productivity at the workplace, while striving to minimise costs Delivering Service Excellence Calls received 600, , , , ,837 Cases for investigation and remedial action 196, , , , ,964 Remaining Calls * 404, , , , ,873 * The remaining calls were either general inquiries and dropped calls (abandoned). Table A: PUSPEL statistics of calls received The number of calls received in 2012 increased by 13.5% to 726,837 calls compared to 640,242 calls in The Petaling District had the highest number of cases with 92,270 cases, followed by the Klang District and the Kuala Lumpur District with 68,524 and 60,807 cases, respectively. PUSPEL continues to introduce initiatives and innovations that are geared towards increasing efficiency and productivity at the workplace, while striving to minimise costs Table B is a summary of pipe leaks and pipe bursts cases reported in 2011 and The cases were attended to within the targeted time, as shown in Table C which also show the average number of hours the repair took to complete: Pipe leaks 72,824 88,870 Pipe burst 5,093 4,864 Table B: Summary of cases for pipe leaks and pipe bursts Repair period as SYABAS Internal Average time provided in Concession target (hours) to complete Pipe Size Agreement (Target) for repair time repair (hours) <200 mm <1 day mm <2 days ,200 mm <3 days >1,200 mm <4 days Table C: Summary of pipe repair cases Type of cases Water supply problems 174, ,853 Billing problems 23,890 30,402 Faulty water meters 13,024 24,188 Disconnections and related complaints 11,744 16,201 Others Total 223, ,964 Table D: Breakdown of Cases for Investigation and Remedial Action in 2011 and 2012 Based on Table D, cases of water supply problems increased from 174,572 in 2011 to 311,853 in 2012, a rise of 78.6%. During this time, cases of billing problems also rose by 27.3% to 30,402 cases in 2012, up from 23,890 cases in The cases of faulty water meter issues also rose from 13,024 cases in 2011 to 24,188 cases in The increase in cases are due to various reasons, inter alia, including the treated water shortage problem become more critical in year 2012, and the increased awareness of consumers in communicating with PUSPEL. Annual Report 2012 Puncak Niaga Holdings Berhad

109 In spite of the increase in cases for investigation and remedial action in 2012, PUSPEL received 107 calls from consumers that commended its efficiency and initiative. In 2012, PUSPEL acknowledged all calls and correspondence within 30 minutes of receipt ( 30 Minutes Target ). 100% of calls received and 99.25% of correspondence received surpassed the 30 Minutes Target. Nevertheless, there are calls that could not be received during peak period of water crisis situations. PUSPEL s Key Performance Indicators ( KPIs ) were established to ensure that staff handle each call in the most efficient and effective way. Below are our achievements in 2012:- 107 Delivering Service Excellence Criteria KPI Set KPI Achieved in 2012 % of abandoned calls Not >2% 13% (hourly average) Average answering time 6 seconds 2 seconds Average call handling time 3 minutes 3.01 minutes % of call feedback 100% 100% Table E: PUSPEL s KPIs As illustrated in Table E, PUSPEL exceeded all its KPI targets for 2012 except for percentage of abandoned calls, which is principally attributed to situations during the water crisis. Visitors are always welcome to visit our PUSPEL/Contact Centre 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 and to become a good role model for other companies. In 2012, SYABAS hosted the following technical visits and briefings for various agencies at SYABAS Headquarters and at the Contact Centre:- DATE VISITORS 14 July 2012 Visit by KAIST-KYOTO-NTU-NUS Symposium to SYABAS 25 September 2012 Briefing and Delegation Visit by Majlis Keselamatan Negara Negeri Kelantan to SYABAS and Puncak Niaga (M) Sdn Bhd ( PNSB ) Counter Service Counter Service serves as a one stop solution centre at all ten SYABAS District Offices. Among the services provided at the counter are: new applications, opening of new accounts, closing of 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, 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. Visit by KAIST-KYOTO-NTU- NUS Symposium to SYABAS PUSPEL constantly seeks to enhance its relationship with its customers 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). Puncak Niaga Holdings Berhad Annual Report 2012

110 108 Delivering Service Excellence Walk-in customers can expect to be served within 15 minutes in accordance with SYABAS Client Charter and for this, PUSPEL achieved a Quality Management System ( QMS ) rating of 98.8%. In 2012, the ten District Offices served 868,570 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. Our Head of Unit regularly conducts district site visits to check the smooth running of the counter services and the best of services in line with our service motto, Friendly, Committed and Trusted are provided. Additionally, all counter services sections submit consumer survey forms twice a year to PUSPEL Headquarters, providing consumer feedback on ways to improve our services in the future. PUSPEL s follow@puspel online interaction channels on the social networks, Twitter and Facebook allow our customers to connect with SYABAS and to lodge their complaints or queries easily and effortlessly since their launch on 14 January As at 31 December 2012, PUSPEL had a total of 7,127 followers on Twitter and 12,883 friends and fans on Facebook. SYABAS is continuously seeking to make these online interaction channels more effective and interesting for our consumers. Unit Kerjasama Informasi Pelanggan ( YAKIN ) SYABAS Customer Service Department has a separate unit namely, YAKIN, which engages in community activities and programmes such as conducting site visits, briefings on pipe replacement programmes, dialogue sessions, briefing and presentations, product and services demonstrations, public relations to promote consumer relationships with Residents Associations, Ketua Kampong/Ketua Taman and various agencies to give personalised service, creating awareness on issues relating to water supply and providing educational programmes for the community in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya. Skuad Ronda YAKIN and Sahabat Yakin are two of the main programmes spearheaded by YAKIN as its vehicles for enhancing consumer relationships and delivering educational and consumer awareness activities. The Sahabat Yakin 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. The Skuad Ronda YAKIN programme is a customer relationship programme comprising personnel from YAKIN, and the Operation & Maintenance and Water Quality Departments of SYABAS together with the community leader, business community and consumers of a particular location to randomly check the standard and quality of water supplied by SYABAS at that particular area. The aim is to reassure consumers that SYABAS only supplies high quality water. Programme Sahabat YAKIN In 2012, YAKIN successfully conducted a total of 2,265 consumers education and awareness programmes/activities involving 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. Annual Report 2012 Puncak Niaga Holdings Berhad

111 Below is the breakdown of the total number of programmes held at each month throughout 2012 by YAKIN:- Number of Programmes Held by YAKIN in Delivering Service Excellence 57 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec YAKIN s 2012 YAKIN s 2012 achievements KPIs for consumer for consumer educational activities educational activities Area (Average per month) (Average per month) Gombak 3 activities 3 activities Hulu Langat 3 activities 3 activities Hulu Selangor 3 activities 3 activities Klang 3 activities 3 activities Kuala Langat 2 activities 3 activities Kuala Lumpur 3 activities 3 activities Kuala Selangor 2 activities 2 activities Petaling Jaya 3 activities 4 activities Sabak Bernam 2 activities 3 activities Sepang 2 activities 3 activities WATER FACTS Water protects the human eye Total 26 activities 30 activities Table F: 2012 KPIs for YAKIN s consumer educational activities Table F shows the 2012 KPIs for YAKIN s consumer educational activities ( Activities ) by area. All areas met or exceeded the KPI requirement for the monthly average number of Activities that were required to be conducted by YAKIN with Petaling Jaya achieving the highest average number of Activities. Aside from interactive programmes with the local communities, YAKIN operates a system to notify community leaders and Residents Associations of scheduled Water Supply Disruptions ( WSD ). YAKIN is sensitive to resident feedback on WSDs, and sends out notices to Community Heads and Residents Associations seven working days prior to the scheduled WSD so that residents in the affected areas can prepare for the temporary water cut. In 2012, YAKIN sent out notices in the form of 9,644 SMSes and 544 s. In 2012, there were 44 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. Programme Sahabat YAKIN Wilayah Hulu Langat Puncak Niaga Holdings Berhad Annual Report 2012

112 110 Delivering Service Excellence During a major unscheduled water disruption such as a pipeburst or the failure of a water treatment plants which would affect a large number of consumers, SYABAS activates an Emergency Response Plan ( ERP ) to ensure the most effective response with minimal disruption to consumers. In 2012, 23 cases of ERP activation were recorded (comprising 20 Code Green ERP, 2 Code Yellow ERP and 1 Code Red ERP). 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 ICU team 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 through visits to individual consumers and trade associations by sending advance notice on scheduled water disruption, handle cases reported by trade consumers and participating in trade programmes. A total of 6,315 SMSes and 5,133 s were sent by ICU in 2012 for the advance notices. Among the ICU s other duties are disseminating information on water disruptions, 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 providing information on other SYABAS services and products. The ICU constantly updates PUSPEL on all its activities via monthly activity reports. In 2012, the ICU implemented Consumer Relationship Enhancement Programmes and visited a total of 2,105 trade consumers and ran 273 Rakan ICU programmes. These programmes included dialogues/briefings (Sua Mesra), public relations programmes, educational programmes and consumer awareness programmes. Below is the total number of programmes conducted by the ICU each month throughout 2012:- Number of Programmes Held by ICU in Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Our courteous and cheerful PUSPEL staff on the job Annual Report 2012 Puncak Niaga Holdings Berhad

113 PUNCAK NIAGA (M) SDN BHD ( PNSB ) 111 Water Safety Plan Management System ISO 22000:2005 The Water Safety Plan ( WSP ) is the approach of The World Health Organization ( WHO ), which 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 supply through the control of hazardous constituents in water from source to consumers taps. Delivering Quality PNSB being part of the chain in delivering drinking water, has commenced implementation of the WSP in 2010 in its mission to consistently provide high quality water from its Water Treatment Plants ( WTPs ). The WSP has been developed and implemented at five of PNSB s WTPs namely the Sg Langat, Sg Batu, North Hummock, Wangsa Maju and SSP2 WTPs. In order to formalize the implementation of the WSP and to demonstrate PNSB s ability to control water safety hazards to ensure that water supplied from the WTPs is safe, PNSB is taking the initiative to apply for ISO22000:2005 Food Safety Management System certification by the third quarter of 2013 for three WTPs, namely, the SSP2, Wangsa Maju and Sg Langat WTPs. Water Quality Surveillance Programme ( WQS Programme ) for WTPs PNSB has in place a WQS Programme to ensure that it consistently delivers a high quality water supply from its WTPs. Raw and treated water at the WTPs is monitored at every critical process stage through the WQS Programme to ensure that the water quality meets or surpasses the standards stipulated by the Ministry of Health s ( MOH ) National Standard for Drinking Water Quality (2004) ( NSDWQ ) and MOH s Quality Assurance Programme ( MOH s QAP ). The testing and monitoring of raw and treated water is carried out at PNSB s Central Laboratory ( CL ) and is verified by an Independent Accredited Laboratory. We also conduct bacteriological tests every day at all our WTPs which are more stringent than the weekly tests that are normally required. 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 in accordance with MOH s NSDWQ. On 8 March 2012, CL successfully renewed its certificate of accreditation with the 24 numbers of accredited parameters that consist of the chemical and microbiology analysis. In addition, on 30 November 2012, CL/SSP2 WTP Laboratory was awarded with the IKM Laboratory Excellence Award by Institute Kimia Malaysia. The award was designed to recognise laboratories which achieve the International Standard MS ISO/IEC quality standard as well as laboratory safety and health standards. CL has been equipped with an Inductively Coupled Plasma-Mass Spectrometer ( ICP-MS ) and a Gas Chromatography-Mass Spectrometer ( GC-MS ), which increase the laboratory s capability for testing heavy metals, pesticides and herbicides in line with MOH s NSDWQ. Water Quality testing at Sg Langat WTP CL also provides laboratory testing services for various activities such as for Puncak Research & Development Centre, environmental investigations conducted by WTPs, and process improvement studies by the Operation & Maintenance Department. Puncak Niaga Holdings Berhad Annual Report 2012

114 112 Delivering Quality Other than water quality testing, CL also offer support to ensure smooth operation of WTPs as listed below: Conducting laboratory assessment for all WTPs to ensure that the laboratories at the WTPs are 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. Assisting in trouble shooting of treatment process shortcomings or non-compliance. Providing training for WTP staff in relation to water quality testing and the maintenance of laboratory and testing equipment. Conducting analyses of WTP process in relation to chemicals supplied to ensure compliance with specifications so as not to affect plant production and quality. Conducting sieve analyses of filter media for compliance with specification prior to usage at the WTPs. Raw and Treated Water Quality Performances For 2012, CL achieved 100% sampling requirements for both raw and treated water for all the WTPs operated by PNSB. The 2012 water quality analysis breakdown as conducted by CL and the appointed Independent Laboratory is as shown in Table A: Analysis conducted for PNSB s WTPs By appointed By Central Independent Item Laboratory Laboratory Raw water 6,384 8,034 Treated water 12,551 9,394 Total 18,935 17,428 Table A: Analyses conducted for PNSB s WTPs in 2012 Based on the water quality monitoring carried out by CL and the appointed Independent Laboratory, treated water compliance achieved was 99.8%. For raw water, although not part of concessionaire obligation is being monitored as part of operation and noted the compliance achieved was 92.1%. Out of the 21,945 analyses conducted for treated water, a total of 35 cases of non-compliance (0.16%) were detected, which were mainly due to the presence of aluminium, for example as detected at the Ampang Intake and the Sg Sireh WTPs. Pre-treatment of Wangsa Maju WTP For the Ampang Intake WTP, the violation was due to the deteriorating raw water quality due to turbidity, which was above the recommended raw water quality criterion set by MOH (>1,000 NTU) and which was beyond the plant s treatment capability. The violation was due to occurrence of a landslide within the water catchment area since March As an alternative to control the raw water pollution, PNSB has submitted proposals to upgrade the plant back in 2008 and 2010 but the proposals were put on hold pending the proposed restructuring of the water services industry in Selangor by the Selangor State Government. Details of the non-compliance for treated water at the Sg Sireh WTP are set out under the heading Research and Process Unit of Water Quality and Research Section of this Report. Annual Report 2012 Puncak Niaga Holdings Berhad

115 Research and Process Unit of Water Quality and Research Section The Research and Process Unit ( RPU ) of the Water Quality and Research Section ( WQRS ) carried out a range of projects and studies in 2012 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 monitoring, filter performance monitoring and value-added projects. Descriptions of the projects undertaken by RPU in 2012 are as follows:- 113 Delivering Quality Process Improvement Process improvement comprise the process of fine-tuning at WTPs with the objective to improve its treatment process for water quality enhancement and or production cost optimization. RPU also played the role to provide solutions for continuous water treatment process optimization. 1. Process Improvement at Sg Sireh WTP The violation at Sg Sireh WTP was due to a raw water quality problem that normally occurs during the wet season. During the wet season, raw water at the Sg Sireh WTP is of high colour, low alkalinity, high turbidity and organic matter is present, especially aquatic humic substances. This requires treatment with a high alum dosage which subsequently results in a high aluminium residual in the treated water. Numerous studies have been carried out by PNSB to improve its treated water quality and some studies are still in progress. Various chemicals were tested on laboratory scale at the plant such as ferric chloride, activated carbon and sodium aluminate. In the laboratory scale study using ferric chloride, high colour was observed in the settled water due to residual iron. Chemicals such as powdered activated carbon and sodium aluminate were found to be ineffective as the use of both chemicals results in higher settled water colour and turbidity compared to when using alum alone for coagulation. Hence, alum is considered to be the better coagulant at the Sg Sireh WTP. In collaboration with Puncak s Research & Development Centre, the use of two types of equipment has been studied to optimise the treatment process at the Sg Sireh WTP. A Photometric Dispersion Analyser ( PDA ) determines the optimum coagulant dosage and measures the floc strength while UV 254 measures the level of organic matter in the raw water. Both types of equipment were installed in May Based on the preliminary study of the data gathered, and given that the application of both types of equipment is still new to PNSB, further optimization studies and fine tuning for optimal performance are currently being conducted prior to full utilisation for treatment process control at the plant. 2. Process Improvement at North Hummock WTP In 2012, the North Hummock WTP encountered short filter running hours with filter media cracking and the presence of mudballs. Assessment and analysis indicated that the surface of the filter media grain showed the presence of a high level of iron in comparison with aluminium and manganese. Water quality inspection Puncak Niaga Holdings Berhad Annual Report 2012

116 114 Delivering Quality In view of the encouraging results from the laboratory-scale study conducted in 2011 to evaluate the effectiveness of different chemicals namely, chloride of lime, caustic soda and oxalic acid in filter media cleaning, a plant trial using oxalic acid was carried out at one of the filters in February The cleaning of filter media with oxalic acid as observed in plant trials conducted has observed improvement as follows:- i. Reduction in filter media cracking. ii. Mudball size becomes smaller and accumulated on the sand surface, thus facilitates the removal of mudballs manually. iii. In terms of removal of the metal contents coating the sand grains, significant reduction of aluminium and iron was observed and this was also shown by the cleanliness of the filter wall and media after being soaked with oxalic acid overnight. With the improvement observed on the filter media condition and conformity of treated water quality after the cleaning with oxalic acid, the WTP continues to use oxalic acid to clean its filter media every two months. 3. Ammonia Removal Studies WTPs located downstream of Sg Langat such as the 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 an alternative chemical, namely aluminosilicate have been conducted in case there is ever a shortage of supply of treated water due to plant shutdown as a result of ammonia pollution. Based on the pilot plant trial conducted at Bukit Tampoi WTP from 22 October 2009 till 1 July 2010, it was observed that the use of aluminosilicate in combination as feed chemical and filter media could increase the plant s capability in removing ammonia. At low raw water ammonia level of mg/l, ammonia removed through the application of aluminosilicate as feed chemical at the intake and as filter media was in the range of mg/l compared to the range of mg/l with normal sand media. At higher raw water ammonia level of mg/l, ammonia removed by aluminosilicate was in the range of mg/l as compared to the range of mg/l with normal sand media. Due to the encouraging findings, application of aluminosilicate dosing has been extended to the Salak Tinggi WTP in April Aluminosilicate will be applied intermittently whenever the raw water ammonia level exceeds 1.0 mg/l. 4. Process Improvement at Sg Rumput WTP Water Quality Surveillance by Central Laboratory The Sg Rumput WTP adopted UF membrane technology to produce treated water in Since upgrading to full treatment using membrane technology, shutdown due to high raw water turbidity has been reduced. However, as the plant has been operating for four years, in 2012 thorough assessments were carried out to ascertain the membrane performance. Based on assessments conducted, the membrane condition was observed to have deteriorated and coated with mud, which originated from the raw water it was treating. To prevent breach of water quality, replacement of membrane modules was carried out and concurrently, PNSB is considering to improve the quality of the raw water that flows into the membrane module via the installation of auto screen filter with the purpose to prolong the lifespan of the membrane modules. Annual Report 2012 Puncak Niaga Holdings Berhad

117 Water Quality Monitoring of Raw Water Activities such as the river water quality index programme, treated reservoir water quality monitoring and the monitoring of ammonia level are carried out at four critical WTPs along Sg Langat namely, Sg Langat WTP, Salak Tinggi WTP, Bukit Tampoi WTP and Cheras Mile 11 WTP to ensure the quality of the treated water supplied to consumers. 1. Water Quality Index Programme ( WQI Programme ) 115 Delivering Quality 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. Details of the WQI Programme and its findings in 2012 are detailed in the Preserving Our Environment section on pages 150 to 163 of this Annual Report. 2. 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 150 to 163 of this Annual Report. 3. Ammonia Level Monitoring 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 hourly basis. Details of the Ammonia Level Monitoring are set out in the Preserving Our Environment section on pages 150 to 163 of this Annual Report. Filter Performance Monitoring The filtration process 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 of the 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 150 to 163 of this Annual Report. Water sampling Puncak Niaga Holdings Berhad Annual Report 2012

118 116 Value Added Projects Other value-added projects carried out by the RPU in 2012 were as follows:- Delivering Quality (a) Coagulant Performance Evaluation Study at Rantau Panjang and Bukit Tampoi WTPs A feasibility study was conducted on the usage of lower cost coagulant such as Liquid Alum ( LA ) and Rock Alum to replace costly Polyaluminium Chloride ( PAC ) with a view to minimising the production cost at Rantau Panjang and Bukit Tampoi WTPs. The study however concluded that PAC was still recommended to be used at both WTPs in view that the settled water quality produced was found to be better with lowest ph depression and aluminum residual as compared to settled water quality with LA and Rock Alum. (b) Training on Process and Water Quality Since 2007, SYABAS has been aggressively implementing the Water Quality Improvement Master Plan and the results have been excellent For purpose of enhancing knowledge on process and water quality, WQRS has coordinated three (3) sessions of 3-days training programme with the Training Department in May, July and October 2012 involving a total of 56 Process Technician from various WTPs. Raw Water Quality Violation In 2012, 15 incidences of pollution occurred where WTPs were shutdown. There are also incidences where the production capacity and quality of treated water from the plants are affected by these pollution. SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ) Water Quality Improvement Master Plan ( WQIMP ) Drinking water quality of the customers taps has always been SYABAS top priority. Water quality results reported as at 31 December 2012 indicated that SYABAS has continued to meet the high standards set out in MOH s NSDWQ and MOH s QAP. It also complies with the requirement of the Mandatory Level of Service ( MLS ) specified under the Concession Agreement dated 15 December 2004 signed between SYABAS, the Federal Government and the Selangor State Government ( SYABAS Concession Agreement ). Since 2007, SYABAS has been aggressively implementing the Water Quality Improvement Master Plan ( WQIMP ), and the results have been excellent. The continuous water quality improvement programmes and monitoring at 1,107 sampling stations had shown greatly reduced water quality violations. Based on the water quality analyses carried out by SYABAS and MOH in 2012, 99.52% complied with MOH s NSDWQ with zero violations in the microbiological parameters. The minor instances of non-compliance cases were within the acceptable limit of the MOH s QAP and had no adverse impact on health. It should be noted that 6.05% of the non-compliance cases relates to the fluoride parameter, which originates from the dosing of the chemical at the water treatment stage. Any non-compliance is taken seriously, and SYABAS investigates each issue thoroughly and, where necessary, does everything possible to correct the faults. Annual Report 2012 Puncak Niaga Holdings Berhad

119 Cleaning of Water Reticulation Pipeline 117 (1) Air Scouring Programme ( ASP ) The ASP is designed to systematically clean all the reticulation pipes using compressed air on a twelve-month cycle, employing 29 Air Scouring ( AS ) machines designated for this purpose. In 2012, a total of 8,099 km of 100 mm 200 mm diameter pipes were cleaned in the district s workable ASP zone. However, 34% of the reticulation main pipe could not be cleaned via ASP due to the unavailability of fixtures which include air insertion, isolation and scour valves in the system. Such fixtures have been installed in stages but commencing 2008, such effort was affected by the freeze on approval of Capital Expenditure ( CAPEX ) programmes. As at 31 December 2012, the amount spent on installation of the valves and fittings was RM8.40 million. A total budget of RM3.0 million was approved in 2012 for the installations of valves and fittings of which were still in tender process. Delivering Quality Overall, the ASP cleaning of the reticulation system has measurably improved the water quality and consequently reduced the number of complaints received from consumers on water quality. Month *Extent Of Air Scouring Works 2009 (Km) 2010 (Km) 2011 (Km) 2012 (Km) January February March 1, , April 1, May 1, June 1, July 1, August 1, September October 1, November December Grand Total 9, , , , * Notes: i. Except for 2009, which Air Scouring work frequency was a nine month cycle, 2010 to 2012 had Air Scouring work frequency of 12 month cycle. ii. Total Air Scouring data (workable/non-workable) for 2010 onwards was based on actual/latest update from time to time from the mapping department. Table B: Air Scouring Works From Year 2009 Until 2012 Preventive Maintenance activity Puncak Niaga Holdings Berhad Annual Report 2012

120 118 Delivering Quality (2) Scheduled Manual Flushing Programme ( SMFP ) In order to ensure that all reticulation pipeline sizes of 100 mm 200 mm diameter are cleaned, non-workable ASP zones are also cleaned using the conventional method via SMFP which was implemented since 2005 and continued in Reservoir Cleaning & Inspection Programme ( RCP ) Under the RCP, all service reservoirs are cleaned manually or using robotic methods and thereafter inspected every six months to test the water quality using depth-samplers. Subsequent cleaning of the reservoirs is conducted if threshold water quality violations are detected. SYABAS distribution system has more than 1,100 service reservoirs, and as at 31 December 2012, 1,044 of them were active. All these reservoirs have been cleaned since 2005 except those newly brought into service. Under the RCP, the water quality in these active reservoirs was inspected twice in Those found to have turbidity violations were slated for cleaning. Two reservoirs were cleaned manually and nine using robotic methods, whilst 120 were cleaned via an open scour flushing method to remove the sediment at the bottom of the reservoirs. Wherever possible, SYABAS minimises water supply interruptions during the cleaning programme by utilising the by-pass valves and piping systems at the reservoirs. Water Quality Surveillance Programme ( WQS PROGRAMME ) (1) Quality Assurance Programme ( QAP ) by MOH SYABAS 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 of violation for each parameter was well within the QAP limits. In 2012, a monthly average of 2,696 water samples was taken and 100,522 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. Based on the tests or analyses, 99.22% 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. MOH Results For Nos. Nos Of Tests Of Violations Compliance (%) Compliance (%) Bottled water to affected consumers at Balakong 100, Table C: Summary of 2011 and 2012 MOH s Water Quality Assessment for all parameters Annual Report 2012 Puncak Niaga Holdings Berhad

121 (2) In-house Water Quality Assessment SYABAS started an in-house Water Quality Sampling and Testing Programme in 2006 based on the same frequency of sampling and the nature of parameters as listed in MOH s NSDWQ. In 2012, grab samples were collected from the designated 1,107 sampling stations by personnel from the districts Water Quality Units 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 1,841 samples were taken and 77,754 analyses carried out. The results also showed that the water quality was within the limit set by MOH and the Mandatory Level of Service ( MLS ) as in the concession, whereby 99.81% of the total of 77,754 analyses had complied with MOH s NSDWQ. This result is an improvement from 2011 when 99.46% complied with MOH s NSDWQ. 119 Delivering Quality MOH Compliance Based On QAP Limit For Nos. Nos Of Tests Of Violations Compliance (%) Compliance (%) 77, Table D: Summary of the 2011 and 2012 In-House Water Quality Assessment for all parameters Immediate Response to Consumer Complaints The objective is to achieve a quick initial response time for 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 2012, compliance with this half-hour response time was 93.90%. The scope of work covers initial investigation involving in-situ testing of the physical parameters and the taking of necessary remedial actions or providing advice to the consumers. A Water Quality Consumer Complaint s Report has to be submitted too. 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 reason for not achieving a 100% compliance rate for the immediate response to consumers was that some complaints were received at night. All complaints received are recorded and investigated to enable improvements to take place. The most significant area of consumer complaint is on the occasions when long-term suspended solids or iron deposits arising from corrosion in water mains caused the water to be discoloured. The total number of consumer complaints received in 2012 was 2,278 of which 20.98% were due to internal plumbing problems. Table E shows the number of water quality complaints in 2012 and the half-hour response time achievement. World Water Day 2012 Puncak Niaga Holdings Berhad Annual Report 2012

122 120 Delivering Quality Item Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec No. of complaints (excluding complaints due to Internal Plumbing) 1/2 Hour Response Time (%) Total Nos. of Complaints Table E: Water Quality Complaints 2012 Graph On Nos. of Complaints From Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Graph A: Trend of Consumer Complaints from January 2007 December 2012 Water quality inspection 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 the Preserving Our Environment section on pages 150 to 163 of this Annual Report. Annual Report 2012 Puncak Niaga Holdings Berhad

123 Research and Development ( R&D ) Centre 121 PUNCAK RESEARCH CENTRE (PRC) In 2012, the PNHB Group continued to improve the quality and reliability of water supply by the Group and look to collaborate with local and foreign R&D institutions and universities with the objectives of advancing and developing the competencies and expertise in the field of water, wastewater and environment. Delivering Quality Through research and development, the PNHB Group continuously strives to improve the quality, sustainability and reliability of Malaysia s water supply through various projects to modernize and advance the nation s water technology. Our R&D Team continues to actively brainstorm and develop on ideas to further improve water operational efficiency and cost control at the WTPs. DHI-PRC Collaboration PRC has entered into a Collaboration Agreement with DHI Denmark ( DHI ), a global leader in the field of water treatment on 15 March Under the collaboration with DHI, our R&D team has completed the study entitled Optimization of Coagulation Process. The studies revealed that Aluminium Chlorohydrate (ACH) contribute the best performance with highest color removal and lower aluminium residual. ACH was proven to be able to yield very minimum aluminium residuals at a rate of 65 times better than current Aluminium Sulphate (Alum). The findings have eventually led to the ACH plant trials at Sg Sireh WTP, which was piloted in February On 15 March 2013, Puncak Research and DHI have mutually agreed to extend the Collaboration Agreement for a further period of one (1) year, commencing 15 March 2013 until 14 March Other Research Activities/Initiatives R&D Centre has also embarked on the following research activities:- (1) Composting the WTP residue into fertilizer. The residue has been transformed loose and friable dry soil with reduced content of Aluminium Oxide (Al2O3), to a level similiar to normal soil. R&D is looking to collaborate with the right partner to progress this development in future. (2) R&D Centre is working with a cement manufacturer to explore if the residue from our WTPs can be utilised as filler in the cement industry. Based on the results obtained via accredited laboratory testing as well as from the cement manufacturer s internal testing, the residue s main composition, consist of aluminium oxide, iron oxide and silica oxide when added together have fulfilled the acceptance criteria for safe disposal through resource recovery by co-processing in a cement klin. This could be an alternative method of residue disposal if the schedule waste classification and cost are resolved. (3) SYABAS have carried out internal research and improved on the various standard drawings including meter stand and various valve installation which would improve the ease of operation and maintenance of operation. Observation on precipitation test Puncak Niaga Holdings Berhad Annual Report 2012

124 122 Delivering Quality (4) Collaboration between Puncak Niaga Holdings Berhad ( PNHB ) and the Malaysian Armed Forces ( MAF ) on the new and highly innovative field water purification system for drinking known as JERNIH. JERNIH is one of the most practical and efficient field water purification systems that is able to treat very high turbidity water. The current design is able to provide safe drinking water up to maximum of 3,000 litres/day for consumption of 500 people. PNHB and MAF signed a Memorandum of Agreement on this collaboration at the recent Langkawi International Maritime & Aerospace Exhibition (LIMA) 2013 on 28 March The collaboration is in the process of discussion on perfecting the JERNIH design, commercialising JERNIH to potential clients domestically and internationally and running some high impact corporate social responsibility projects in less developed countries. 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 to deal and offer our assistance with issues or problems that are related to raw water and treated water and/or our services, both within or beyond our control. With our years of experience in the industry, we have expeditiously solved many crises over the years. PNSB initiated a Crisis Management Plan ( CMP ) and a 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 two 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. The CMP was activated two times in 2012 due to the following incidents:- Date Incident 7 March March 2012 Ampang Intake WTP shutdown due to flooding. 13 April May 2012 SSP2 WTP operation disruption due to flashover at Transformer No. 2 at Intake Plant. SYABAS Emergency Response Plan ( ERP ) Pipe repair works by SYABAS contractors The ERP is an action plan developed by SYABAS in 2005 as a management action plan to deal with a crisis of emergency that could affect the water supply to the consumer. Development of an ERP is also in line with the provisions of SYABAS Concession Agreement. The ERP is constantly updated to ensure that it can be applied in accordance with the conditions/circumstances. SYABAS has ten districts, which has an ERP Secretariat and Crisis Operations Room (COC-D) that manage ERP activation in the respective district. In 2012, a total of 23 ERP activations were made, that consists of 20 Code Green ERP, 2 Code Yellow ERP and 1 Code Red ERP. Annual Report 2012 Puncak Niaga Holdings Berhad

125 Total ERP Vs Month 123 Total ERP (Cases) Delivering Quality 0 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Red Code Yellow Code Green Code Note: Code Red ERP signifies high or critical level of emergency Code Yellow ERP signifies medium level of emergency Code Green ERP signifies mild or operational level of emergency Two Code Yellow ERP and one Code Red ERP were activated in 2012 due to the following incidents:- Date ERP Code Incident 8 March March 2012 Yellow Code Ampang Intake WTP Shutdown due to flash flood. 8 March March 2012 Yellow Code Sg Langat WTP Shutdown due to high NTU in raw water source. OIL & GAS SAVING TIPS Anticipate stops and brake less 13 April April 2012 Red Code SSP2 WTP Operation Shutdown due to flashover at Transformer No. 2 at Intake Plant. To ensure smooth management assistance, SYABAS have intensified efforts to conduct training to ERP staff, upgrading PUSPEL telephony system, upgrade consumers contact information and procurement of additional facilities. To ensure a smooth activation of ERP, the formation of certain committees were also established as a mechanism to facilitate ERP implementation namely Crisis Executive Committee, Crisis Management Group, Crisis Operation Centre and Crisis Recovery Group. Puncak Niaga Holdings Berhad Annual Report 2012

126 By securing the good of others, we also secure our own

127

128 126 Valuing Our People The Group continues to provide a workplace where its people have the opportunity to grow, to mature and to nurture their skills. The Group focuses on creating the right culture and working environment, and providing development and career opportunities with fair processes to all employees. As part of our continuous commitment in delivering value to our stakeholders, various internal best practices have been set to build on the strength of our workforce. We promote team leadership fostering synergies and sharing commitment to achieve organisation goal and 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 operations is always a priority. 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 a conducive environment. In 2012, the Group arranged for the employees to undergo Motivational Transformation Programme with the theme Teaming for Quantum Growth. The Programmes focused on all employees to unite in strength as one team to achieve the Company s vision, mission and goal In 2012, the Group arranged for the employees to undergo Motivational Transformation Programme with the theme Teaming for Quantum Growth. The Programme focused on all employees to unite in strength as one team to achieve the Company s vision, mission and goal and, on fostering teamwork that will enable us to continue to grow and prosper by means of mutual effort and team leadership to sustain a successful business. This is aptly embodied by the theme for our Annual Report 2012, Strength In Unity. EMPLOYEE PROFILE Puncak Niaga Holdings Berhad ( PNHB ) Group PNHB Group employed a total of 4,680 personnel as at 31 December 2012, locally and overseas. This represented an increase of approximately 3.1% compared to the 4,540 personnel employed in We continue to promote diversity in the workplace. Any forms of discrimination, including discrimination based on age, gender, ethnicity or background, are not tolerated. The breakdown of the Group s employees by ethnic group, excluding employees in the People s Republic of China ( PRC ) is 92.0% Malays, 2.1% Chinese, 4.9% Indians and 1.0% others. As shown in Table A, the majority of the Group s workforce (excluding employees in the PRC) consists of non-executive personnel (70.1%) with executives at 23.4% 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 (3,394 Men: 1,120 Women). Category Gender Ethnic Group Non Management Executive Executive Male Female Malay Chinese Indian Others Total PEKA s event: Visit to Johor Premium Outlet PNSB , ,105 SYABAS ,422 2, , ,251 GOM Resources POG PRC Note: PNSB denotes Puncak Niaga (M) Sdn Bhd SYABAS denotes Syarikat Bekalan Air Selangor Sdn Bhd GOM Resources denotes GOM Resources 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 Annual Report 2012 Puncak Niaga Holdings Berhad

129 Puncak Niaga (M) Sdn Bhd ( PNSB ) PNSB is a private limited company in PNHB Group of Companies. PNSB handles the operations, maintenance, management, construction, rehabilitation and refurbishment of water treatment facilities. PNSB had 1,105 employees as at the end of Out of the total number, 862 employees (78%) were male and 243 (22%) were female. The employment by gender ratio (men to women) is 3.5:1 due to the nature of PNSB s operations, which involve a lot of manual labour. 127 Valuing Our People PNSB Workforce Breakdown by Ethnic Group (refer to Chart 1) PNSB Workforce Breakdown by Category (refer to Chart 2) More than half (65.52%) of PNSB s employees were non-executives while 25.52% were executives and the remaining 8.96% were at the Management level. PNSB Workforce Breakdown by Age Group Chart 1 PNSB Workforce Breakdown by Ethnic Group 2.71% 4.44% 1.90% No. of Employees Total Employees ( E ) 1, Employee Turnover < >49 Age Group The turnover rate in 2012 for PNSB was 9.5% as compared with 7.14% in % of PNSB s resigned employees are permanent employees, with the remaining 27.6% resigned employees being contract employees. The tables below present PNSB s employees turnover for PNSB Employee Turnover by Category Category Turnover (%) Management 1.5 Executive 3.8 Non-Executive % Malay (1,005 E) Chinese (49 E) Indian (30 E) Others (21 E) Chart 2 PNSB Workforce Breakdown by Category 8.96% Total Employees ( E ) 1, % Total 9.5% PNSB Employee Turnover by Gender Gender Turnover (%) Male 3.5 Female % Management (99 E) Executive (282 E) Non-Executive (724 E) Total 9.5% Puncak Niaga Holdings Berhad Annual Report 2012

130 128 PNSB Employee Turnover by Ethnic Group Valuing Our People Ethnic Group Turnover (%) Malay 7.69 Chinese 1.45 Indian 0.09 Others 0.27 Total 9.5% PNSB Employee Turnover by Age Group Chart 3 SYABAS Workforce Breakdown by Ethnic Group 5.75% 1.14% 0.49% Age Group Turnover (%) < > Total 9.5% Note: Turnover rates are derived from staff terminations, retirements and expiry of contracts % Total Employees ( E ) 3,251 Malay (3,011 E) Chinese (37 E) Indian (187 E) Others (16 E) 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 3,251 employees as at 31 December Out of the total number, 2,428 employees (74.7%) were male and 823 (25.3%) were female. The employment by gender ratio (men to women) is 3:1 due to the nature of SYABAS operations, which involve a lot of manual labour. SYABAS Workforce Breakdown by Ethnic Group (refer to Chart 3) Chart 4 SYABAS Workforce Breakdown by Category 4.77% 20.73% SYABAS Workforce Breakdown by Category (refer to Chart 4) More than half (74.50%) of SYABAS employees were non-executives while 20.73% were executives and the remaining 4.77% were at the Management level. SYABAS Workforce Breakdown by Age Group 74.50% Total Employees ( E ) 3,251 No. of Employees 1,400 1,200 1, ,234 1, Management (155 E) Executive (674 E) Non-Executive (2,422 E) 0 < >49 Age Group Annual Report 2012 Puncak Niaga Holdings Berhad

131 Employee Turnover The turnover rate in 2012 for SYABAS was 9.63% as compared with 6.03% in % of SYABAS resigned employees are permanent employees, with the remaining 2.49% resigned employees being contract employees. The tables below present SYABAS employees turnover for SYABAS Employee Turnover by Category 129 Valuing Our People Category Turnover (%) Management 0.68 Executive 3.11 Non-Executive 5.84 Total 9.63% SYABAS Employee Turnover by Gender Gender Turnover (%) Male 6.92 Female 2.71 Total 9.63% SYABAS Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay 8.67 Chinese 0.22 Indian 0.71 Others 0.03 Total 9.63% SYABAS Employee Turnover by Age Group Age Group Turnover (%) < > Total 9.63% 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 is currently involved in the offshore logistics service provider and marine management. POG had a total of four employees as at 31 December Out of the total number, three employees (75%) were male and one (25%) was female. GOM Resources & KPOC launching the HSE Campaign on board DLB264 The employment by gender ratio (men to women) is 3:1. As at 31 December 2012, POG s employees (100%) were of Malay ethnic group and were at the Management level. Puncak Niaga Holdings Berhad Annual Report 2012

132 130 Valuing Our People POG Workforce Breakdown by Age Group No. of Employees Employee Turnover >49 Age Group The turnover rate in 2012 for POG was 91.67%. The reason for the high turnover was because 44 employees were transferred to GOM Resources in 2012 in view of the high volume of works being undertaken by GOM Resources, the new Oil & Gas unit of the Group. 87.5% of POG s resigned employees are permanent employees, with the remaining 12.5% resigned employees being contract employees. The tables below present POG s employee turnover for POG Employee Turnover by Category Category Turnover (%) Management Executive Non-Executive Total 91.67% POG Employee Turnover by Gender Gender Turnover (%) Male Female Total 91.67% POG Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay Chinese 8.33 Indian 4.17 Others 0 Total 91.67% GOM Resources Sdn Bhd hosted a Gawai Luncheon for its clients POG Employee Turnover by Age Group Age Group Turnover (%) > > Total 91.67% Note: Turnover rates are derived from staff terminations, retirements and expiry of contracts. Annual Report 2012 Puncak Niaga Holdings Berhad

133 GOM RESOURCES SDN BHD ( GOM RESOURCES ) GOM Resources is a private limited company in the POG Group of Companies, which is involved as the offshore installation contractor for intergrated transportation & installation of offshore facilities. GOM Resources had a total of 154 employees as at 31 December Out of the total number, 101 employees (65.6%) were male and 53 (34.4%) were female. The employment by gender ratio (men to women) is 2: Valuing Our People GOM Resources Workforce Breakdown by Ethnic Group (refer to Chart 5) GOM Resources Workforce Breakdown by Category (refer to Chart 6) More than half (64.29%) of GOM Resources employees were executives while 12.99% were non-executives and the remaining 22.72% were at the Management level. GOM Resources Workforce Breakdown by Age Group Chart 5 GOM Resources Workforce Breakdown by Ethnic Group No. of Employees % 1.96% 5.84% Total Employees ( E ) < > % Employee Turnover Age Group The turnover rate in 2012 for GOM Resources was 15.59% as compared with 16.88% in % of GOM Resources resigned employees are permanent employees, with the remaining 21.43% resigned employees being contract employees. The tables below present GOM Resources employee turnover for GOM Resources Employee Turnover by Category Category Turnover (%) Management 3.90 Executive 9.74 Non-Executive 1.95 Total GOM Resources Employee Turnover by Gender Gender Turnover (%) Male 9.09 Female 6.50 Total Malay (133 E) Chinese (9 E) Indian (3 E) Others (9 E) Chart 6 GOM Resources Workforce Breakdown by Category 64.29% 12.99% Total Employees ( E ) % Management (35 E) Executive (99 E) Non-Executive (20 E) Puncak Niaga Holdings Berhad Annual Report 2012

134 132 Valuing Our People GOM Resources Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay Chinese 2.60 Indian 0 Others 0 Total GOM Resources Employee Turnover by Age Group Age Group Turnover (%) < > Chart 7 PRC Operations Workforce Breakdown by Category 84.94% 9.64% Total Employees ( E ) 166 Management (16 E) Executive (9 E) Non-Executive (141 E) 5.42% 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 employed 166 employees as at 31 December 2012, all of whom were hired on a contract basis. Out of the total number, 100 employees (60.2%) were male and 66 were female (39.8%). The employment by gender ratio (men to women) is 1.5:1. As at 31 December 2012, 100% of the PRC workforce are Chinese. PRC Operations Workforce Breakdown by Category (refer to Chart 7) More than half (84.94%) of PRC Operations employees were non-executives while 5.42% were executives and the remaining 9.64% were at the Management level. PRC Operations Workforce Breakdown by Age Group No. of Employees < >49 Age Group Annual Report 2012 Puncak Niaga Holdings Berhad

135 Employee Turnover 133 The turnover rate in 2012 for PRC Operations was 8.2% as compared with 1.4% in The tables below present PRC Operations employees turnover for PRC Operations Employee Turnover by Category Valuing Our People Category Turnover (%) Management 0 Executive 0.59 Non-Executive 7.63 Total 8.2 PRC Operations Employee Turnover by Gender Gender Turnover (%) Male 5.2 Female 3.0 Total 8.2 PRC Operations Employee Turnover by Ethnic Group Ethnic Group Turnover (%) Malay 0 Chinese 8.2 Indian 0 Others 0 SYABAS Bubur Lambuk event Total 8.2 PRC Operations Employee Turnover by Age Group Age Group Turnover (%) < > Total 8.2 Note: Turnover rates are derived from staff terminations, retirements and expiry of contracts. BEST PRACTICES AT THE WORKPLACE PNHB Group Employee Benefits (excluding PRC Operations) The Group offers a comprehensive employee benefits package which includes competitive salary packages with insurance coverage for the staff and the immediate families, housing and car loan interest subsidies, interest free education assistance loan scheme as well as Tabung Kebajikan, computers, personal loans, medical benefits that cover outpatient treatment, hospitalisation and surgical, dental and maternity benefit for up to five 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. PEKA s Bubur Lambuk event with media and celebrities Puncak Niaga Holdings Berhad Annual Report 2012

136 134 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 packages from time to time to ensure that the Group is at least at par with the prevailing market in terms of proposed remuneration for our 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 taken care of at all times and that they are continuously appreciated and rewarded for their hard work. PNHB Group recognises that our employees are core assets of the Group and strongly believes in rewarding our employees for their commitment, dedication and hard work Effective 1 January 2013, the whole Group are on a Five Day Work Week for non-operation staff as part of its ongoing efforts to enhance employees engagement through a healthy work-life balance, to improve employee-employer relationships, and to enhance staff benefits to enable the Group to be recognised as an organisation of priority choice. 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, they also receive benefits such as overtime pay, leave in lieu, a welfare allowance, pension fund contributions, unemployment 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 a hospitalisation, medical and personal insurance plan. 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 PNHB Group recognises that our employees are core assets of the Group and strongly believes in rewarding our employees for their commitment, dedication and hard work. To recognise good work and to motivate productivity, employees with good and excellent performances are awarded bonuses, salary increments, position upgrades and promotions. In appreciation of the employees contributions, in 2012 SYABAS held a Majlis Penyerahan Pampasan Kepada Kakitangan Serta Waris Keluarga Kakitangan SYABAS for existing employees. At PNSB, Majlis Penyerahan Insuran Pampasan Kepada Ahli Keluarga Bekas Kakitangan Yang Telah Meninggal Dunia were held to show PNSB s appreciation to the demised staff. In addition, PNSB provides financial assistance to the family of the demised staff for a year for those in dire need of financial assistance in view of non-working spouses. Annual Report 2012 Puncak Niaga Holdings Berhad

137 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 groom and retain the best employees as well as providing them with career opportunities/ career path in the Group. 135 Valuing Our People Performance Appraisal Exercises With the exception of PRC Operations, the Group conduct performance appraisal exercises for all confirmed employees twice a year. At PNSB, 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 recommendations of the review are 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, or the appropriate actions to be taken against those employees whose performances are not up to the Company s performance requirements. Non-performing employees undergo Performance Improvement Programme ( PIP ) with counselling by the Head of Division and the Counselling Committee to improve their performances. Review of their performance is conducted for six months on a monthly basis. At SYABAS, this involves a discussion session on performance which is called the Challenge Session. 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. Senamrobik at SYABAS Petaling Jaya District office Our PRC Operations conduct performance appraisal exercises once a year. Training PNHB Group is committed to equip 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, the Group sends its employees for external training, locally and overseas. Details of the number of training sessions (in-house and external) conducted for PNSB, SYABAS, POG and GOM Resources in 2011 and 2012 are set out in Table B. POG & GOM PNSB SYABAS Resources Total Category Management (including Directors) N/A Executive N/A ,007 SYABAS Jom Senamrobik November 2012 Non-Executive ,318 2,305 N/A 0 2,968 2,838 Total Personnel 1, ,092 3,091 N/A 132 4,109 4,139 Trained (92.2%) (82.9%) (97.6%) (95.0%) (83.0%) (96.4%) (91.7%) Note: The majority of training was provided to non-executive employees. Table B: Conduct of 2012 Training Sessions (in-house and external) Puncak Niaga Holdings Berhad Annual Report 2012

138 136 Valuing Our People PNSB s and SYABAS number of training sessions decreased in 2012 as compared to PNSB trained 82.9% of its employees in 2012 while SYABAS trained 95% of its employees in ,139 employees of the Group attended training in 2012 as shown in Table B on page 135 of this Annual Report. Our training was conducted in five broad categories namely, personal and leadership development, functional/knowledge, positive mindset, supplementary knowledge, and external courses/public programme (local/overseas) ( Five Broad Categories ). Trainings 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 and at GOM Resources, the IP was for a duration of one day only. The breakdown of PNSB s, SYABAS, POG s and GOM Resources training in the Five Broad Categories for 2012 is as set out in Table C. Category PNSB SYABAS POG & GOM Resources No. of No. of No. of No. of No. of No. of Programmes Participants Programmes Participants Programmes Participants Teaming for Quantum Growth Teambuilding Programme Personal & Leadership Development Functional Knowledge 220 1, , Positive Mindset Supplementary Knowledge , External Courses / Public Programme (Local/ Overseas) Total 402 3, , Note: Employees may attend more than one training session. Table C: Breakdown of PNSB s, SYABAS, POG s and GOM Resources trainings held in Five Broad Categories for 2012 PNSB spent RM686, in 2012 on training, 14.1% reduction from the 2011 training cost. SYABAS spent RM886, in 2012 on training, 38.3% up from the 2011 training cost. POG and GOM Resources spent RM1,123, in 2012 on training. These are shown in Table D. Our PRC Operations spent RM6, on training in PEKA Walk Hunt 2012 POG & GOM PNSB (RM) SYABAS (RM) Resources (RM) Category Internal 250, , , , N/A 0 External 436, , , , N/A 1,123, Total 798, , , , N/A 1,123, Note: N/A - Not Applicable Table D: Cost of Training for PNSB, SYABAS, POG and GOM Resources for 2011 and 2012 Annual Report 2012 Puncak Niaga Holdings Berhad

139 Listening to Our Employees 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. We believe that listening to and working in tandem with our employees is vital for the growth of our business and our organisation in building a shared vision of the organisation within the competitive environment. We encourage two-way communication for all levels at the workplace vis-à-vis sharing information and knowledge. 137 Valuing Our People In 2012, the Group sent all levels of employees of the Group for Motivational Transformation Programme with the theme Teaming for Quantum Growth to promote team leadership and to groom the employees to inculcate a shared vision, mission and goal. Collective Bargaining Agreement In 2012, there were two negotiation sessions held between SYABAS and the Kesatuan Pekerja-pekerja PUAS Berhad on the third collective agreement. The agreement was finalised in April 2012 and signed in September Employees at our PRC operations are allowed to form a union, in accordance with PRC Labour Laws. However, as at 31 December 2012, 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 and Policies 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 Water Quality Policy Gender Diversity Policy Whistle Blowing Policy Corporate Social Responsibility Policy Code of Conduct Board of Directors Code of Conduct - Employees No Smoking Policy Board Charter Operasi Cegah in Gombak Puncak Niaga Holdings Berhad Annual Report 2012

140 138 Valuing Our People 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 The Group recognises the importance of providing staff with an adequate work-life balance 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 Caring for Staff The Group recognises 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 2012, PEKA organised various events that included recreational activities, sporting events and cultural and religious programmes. They were: PEKA s Fishing Competition Recreational Activities Photo Jamboree on 3 March 2012 Fishing Competition on 27 May 2012 Walk Hunt and Mini Carnival on 10 November 2012 Visit to Johor Premium Outlets on 1 December Sporting Events Kuantan Century Ride on 25 March 2012 Bowling Competition President Cup 2012 on 14 April 2012 Seminar/talk on Indian Traditional Exercise (Yoga) & Ayurvedic Treatment on 26 May 2012 Ping Pong Competition on 16 June 2012 Futsal Competition on 30 June 2012 Annual Report 2012 Puncak Niaga Holdings Berhad

141 Bowling Competition 3 Penjuru on 14 July 2012 Ipoh Century Ride on 15 July 2012 Pertandingan Bola Sepak 9 Sebelah on 20 October 2012 Sepak Takraw Championship on 17 November 2012 Netball Championship on 8 December 2012 Volleyball Championship on 29 December Cultural & Religious Programmes Solat Sunat Hajat & Tazkirah every Thursday of the 2 nd and 4 th week of the month Maulidur Rasul celebration on 5 February 2012 Program Bubur Lambuk with Media and Celebrities on 3 August 2012 Fiesta Aidilfitri Puncak Niaga at Sg Batu WTP on 8 September 2012, SSP2 WTP on 13 September 2012 and Sg Langat WTP on 15 September 2012 Majlis Ibadah Qurban on 27 October 2012 Majlis Berkhatan on 24 November 2012 Seminars on Religion/Tazkirah at PNSB s/syabas office and WTPs 4. Other Events Seminar on Alerting parents on child behaviour towards crime and Self-grooming Class Be Beauty on 10 March 2012 PEKA s 6 th Annual General Meeting on 31 March 2012 Visit to Rumah Jagaan & Rawatan Orang Tua Al-Ikhlas, Puchong, Selangor on 14 April 2012 Program Kursus Pengurusan Jenazah with Jabatan Agama Islam Selangor ( JAIS ) on 28 April 2012 PEKA members children visit to NSTP & Karangkraf at Shah Alam on 5 June 2012 Majlis Berbuka Puasa bersama Anak Yatim on 3 August 2012 Program Gotong Royong at an orphanage home at Bandar Tasek Puteri, Rawang, Selangor on 13 August 2012 Visit to demised employee s family and employees who suffered from sickness etc. Program Gotong-Royong to clean up WTP and staff quarters 139 Valuing Our People Netball Championship 2012 Our Executive Directors and Senior Management actively participated in these programmes to give support and encouragement to the employees. ENSURING HEALTH AND SAFETY Everyone has the right to work in a healthy and safe environment. As a responsible and caring employer, we always ensure that our employees are treated well and fairly in a healthy, safe environment. We also ensure a safe environment in our premise to our visitors and contractors. The Group takes responsibility for preventing any work-related injuries or illnesses. The Group had in 2012 demonstrated to the best of its ability, its commitment to improving health and safety at our workplace. PNSB Health, Safety and Environment In September 2011, PNSB was awarded the Occupational Health And Safety Assessment Series ( OHSAS ) 18001:2007 certifications by the Bureau Det Norske Veritaas (DNV) for 27 Water Treatment Plants ( WTP ) and three Regional Offices. This OHSAS 18001:2007 Award attests to PNSB s compliance with International Occupational Health & Safety ( OHS ) 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 the workplace. Volleyball Championship on 29 December 2012 Puncak Niaga Holdings Berhad Annual Report 2012

142 140 Valuing Our People PNSB established an OHS management system prior to the prestigious accreditation, with the aim of eliminating or minimising risk to employees, visitors, contractors and other parties who are exposed to OHS risks within its operations. Amidst its rapid expansion over the years, PNSB has been investing in establishing, maintaining and improving OHS at its operations. This coveted industry certification is evidence of our commitment to OHS and is clear proof of the Company s high standards of safety awareness, which can be traced back to the first day of its operations. The certification has also motivated us to further strengthen our initiatives towards efficiently meeting our health and safety obligations and is a rewarding recognition of our dedicated efforts to achieve results that are favourable to all our stakeholders, shareholders, employees and customers. PNSB s Occupational Health and Safety Management Performance PNSB provides the necessary health and safety protections for 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 OHS at the workplace. Since 2004, PNSB has a Corporate Health & Safety Committee, to ensure full compliances with OHS requirements in the workplace. For proper implementation of OHS procedures, PNSB s employees and permanent contractors must be adequately trained in three categories namely, Statutory Requirements, Competency Training and Awareness Training. All 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 2012, Health, Safety and Environment ( HSE ) induction training, and 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. In the process, matters such as adequate signage as well as proper storage of chemicals and usage of personal protective equipment at the workplace are also reviewed annually. In 2012, PNSB implemented the following OHS programmes:- 1. Fire Safety Training for ERP Team Four sessions of Fire Safety Training were held from March to December 2012 at the Akademi Bomba & Penyelamat Kuala Kubu Baru. The training was attended by 120 employees from various WTPs, dams and the Headquarters. Hand & Finger Campaign 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. The knowledge of fire safety is useful not only at the workplace but at home and other premises too. Annual Report 2012 Puncak Niaga Holdings Berhad

143 2. Hazard Identification and Risk Assessment 141 The objectives are:- To identify hazards associated with the workplace facilities and the activities of all personnel (including subcontractors and visitors), as well as to evaluate and categorise any identified risks. To define, via a Risk Management System, the objectives and targets of the management programme, with the aim of preventing and controlling risks. To check, monitor and review the system at the managerial level to ensure the effectiveness of the management system. Valuing Our People 3. Emergency Preparedness and Response Plan PNSB s Emergency Preparedness and Response Plan has been continuously enforced and improved and in 2012, 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 and three minor mock drills at each of the WTPs and dams. Regular drills conducted both internally and with the collaboration of external parties such as chemical suppliers. 4. 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 at or for PNSB. 5. Surveillance Audit / Inspections A corporate audit of the health and safety management system was performed in 2012 by the OHSAS Internal Auditors for various Regions and Headquarters to ensure compliance with OHS requirements and to enhance the health management system. 6. Management Review Top management is responsible for reviewing OHSAS annually at plant to ensure the continuing, suitability, adequacy and effectiveness of the system. The review includes assessing Opportunity for Improvements (OFI), and the needs of the OHS management system, the status of the OHS policy and objectives, OHS resources and other elements of the OHS management system. Records regarding management review decisions and actions prior to possible changes are retained and made available for future communication and consultation. We are pleased to announce that PNSB is in full compliance with the statutory requirements regulated by the Department of Occupational Safety and Health ( DOSH ). Health and Safety training In 2012, PNSB held 18 health and safety trainings, briefings and talks such as Chlorine Handling Training, Training and Briefing for LEV/GEV & Chemical Exposure Monitoring, ERP Training, Malaysian Society of Occupational Safety & Health ( MSOSH ) Audit HSE Briefing, Safety Talk, Fire Prevention Training, HSE SOP Briefing Workshop and Forklift Defensive Driving Training. Puncak Niaga Holdings Berhad Annual Report 2012

144 142 Lost Time Injury (LTI) No LTIs occurred in 2012, except for two cases of Medical Treatment Injury (MTI) which occurred at the Central and Northern Region. Valuing Our People We are proud to announce that since its commission in July 1998, the SSP2 WTP has no industrial accidents and the 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, LTIs have included the man hours of contractors and suppliers after they have undergone extensive health and safety training and familiarisation at SSP2 WTP. The LTIs recorded in 2012 were as follows:- Accidents/Incidents Occurred in 2012 Wangsa SSP2 Maju Sg Sireh Central Southern Northern PNSB Type of Incident WTP WTP WTP Region Region Region HQ Majlis Berkhatan PEKA 2012 LTI Medical Treatment First Aid Near Miss Property Damage Spillage Fire Dangerous Occurrence Chemical Release Explosion Total Table E: Breakdown of LTIs in 2012 The total man hours with Zero LTIs were as follows : WTP Million Man Hours with Zero LTI Majlis Berbuka Puasa with Anak Yatim 2012 SSP2 WTP 4,475, (SSP2 WTP has had zero LTI since its commissioning on 17 July 1998) Wangsa Maju WTP 1,142, (Wangsa Maju WTP has had zero LTI since its commissioning on 18 July 1998) Sg Sireh WTP 374, Central Region 3,453, Southern Region 2,686, Northern Region 3,694, PNSB HQ 4,423, Annual Report 2012 Puncak Niaga Holdings Berhad

145 ACHIEVEMENTS Awards (a) Malaysian Society of Occupational Safety & Health (MSOSH) Award: At the MSOSH Excellence Award 2012 held on 6 July 2012, eight of PNSB s WTPs won the following awards:- Valuing Our People WTP SSP2 WTP Wangsa Maju WTP Bukit Tampoi WTP Sg Batu WTP Kalumpang WTP Sg Selisek WTP Sg Dusun WTP Ampang Intake WTP Award Gold Class I Gold Class I Gold Class I Gold Class I Gold Class I Gold Class I Gold Class II Gold Class II (b) National Council of Occupational Safety & Health (NCOSH) Award: NCOSH honoured the Sg Langat WTP with a Gold Trophy Award under the water utility sector on 30 October (c) Laboratory Excellence Award By Institute Kimia Malaysia ( IKM ) PNSB s Central Laboratory s/ssp2 WTP Laboratory s high standards for training, health and safety earned them the Institut Kimia Malaysia ( IKM ) Laboratory Excellence Award 2012 on 30 November All Regional Offices and 26 WTPs have obtained the internationally recognised standard ISO 9001:2008 Quality Management System certification CERTIFICATIONS ISO 9001:2008 CERTIFICATION FOR ALL WTPS In 2012, additional nine WTPs had been certified with ISO 9001:2008 Quality Management System ( QMS ). As at August 2012, all Regional Offices and 26 WTPs have obtained the internationally recognised standard ISO 9001:2008 QMS certification. The ISO 9001:2008 certification reflects PNSB s commitment towards Quality Management in managing the WTPs. SYABAS Health, Safety And Environment 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. Puncak s Cyclist Team at Kuantan Century Ride Puncak Niaga Holdings Berhad Annual Report 2012

146 144 Valuing Our People SYABAS endeavours to: Recognise HSE objectives as an integral part of its business performance. Continually improved its HSE management system. Establish and periodically review its safety and environmental objectives and targets. Comply with all the applicable HSE legal and other requirements to which SYABAS subscribes. Provide sufficient information, instruction, training and supervision to enhance employees HSE consciousness so that work is performed safely. Minimise waste and continually prevent pollution in all activities. Investigate any incidents whose findings can be used to develop and improve HSE 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. ACHIEVEMENTS Through its Human Resource & Administration Department, SYABAS achieved ISO 9001:2008 certification on 4 May MSOSH OSH Award The objective of participation is to evaluate and assess the effectiveness of the safety management system implemented by SYABAS and to ensure that its workplaces are safe and healthy. At the MSOSH OSH Award held on 6 July 2012, seven districts namely Kuala Lumpur, Hulu Langat, Petaling, Gombak, Sabak Bernam, Hulu Selangor and Kuala Selangor obtained Gold (Class I) Awards and three districts, namely Kuala Langat, Sepang and Klang obtained Gold (Class II) Awards. CERTIFICATION 1. OHSAS 18001:2007 (Health and Safety) Certification Programme The objective of this programme is to gain recognition of the safety management system implemented by SYABAS. Three districts namely, Petaling, Hulu Langat and Kuala Lumpur achieved OHSAS 18001:2007 (Health and Safety) certification on 28 March The scope of the certification programme is Distribution and storage of treated water at Petaling, Hulu Langat and Kuala Lumpur districts including their operations and the administrative operations of the HSE Section at Headquarters. In 2012, SYABAS implemented the following OSH Programme:- 1. ISO 9001:2008 Certification Programme Through its Human Resource & Administration Department ( HRAD ), SYABAS achieved ISO 9001:2008 certification on 4 May The objective of this programme is to ensure that a working system is effectively implemented and monitored by the HRAD. Bowling Competition President Cup 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 the 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 their clients premises. As at 31 December 2012, 120 training sessions involving 1,916 participants had been conducted for SYABAS contractors. Annual Report 2012 Puncak Niaga Holdings Berhad

147 3. HSE Internal Audit The objectives of the HSE Internal Audit:- To evaluate the level of implementation of HSE requirements at District offices. To propose corrective action and improvement in all cases of non-conformance. Two HSE Internal Audits were conducted at every District Office. SYABAS appointed 62 Internal Auditors to assist in the HSE Internal Audit exercise for Valuing Our People All Non-Conformance Requests were rectified and closed within the agreed timeframe given by the Internal Auditors. 4. National Council of Occupational Safety and Health (NCOSH) Award 2012 SYABAS participated the NCOSH Award 2012 to gauge the level of implementation on safety and health at workplace. 5. Confined Space Emergency Drill Programme 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 exposure on how to operate rescue equipment. In 2012, SYABAS conducted the Confined Space Emergency Drill programme involving nine more districts and for future planning, SYABAS planned to increase the number of competent staff in confined space by organising competencies programme such as Authorised Entrants and Standby Person And Authorised Gas Testers by collaboration with NCOSH. GOM Resources HSE Rescue Boat Training 6. Defensive Riding HSE, SYABAS has initiated a programme in collaboration with MSOSH and the Social Security Organisation ( SOCSO ) to raise awareness to the motorcyclist on 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. In 2012, the programme was conducted in ten series at three different locations namely, Sg Besi, Kuala Selangor and Gombak. At the end of each session, all participants were given a test to evaluate their understanding of the course. 7. HSE Training In 2012, SYABAS conducted 73 HSE training sessions involving 1,515 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 seven Authorised Gas Testers ( AGT ). Fire Drill Programme Puncak Niaga Holdings Berhad Annual Report 2012

148 146 Valuing Our People 8. Fire Drill Programme The Fire Drill Programme was successfully conducted at all District Offi ces with co-operation from the Fire Rescue Department to comply with Section 13 of the Factories & Machinery Act 1970 (Safety, Health Welfare) and with the requirement listed in OHSAS 18001:2007 Standards. 9. 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 2012, SYABAS had recorded 6,809,216 manhours without LTIs. This statistic includes the ten District Offices covered by SYABAS. The LTIs recorded in 2012 were as follows: 2012 Type of Injuries Employees Contractors FATALITIES 0 0 LTI 0 0 Restricted Work Cases 0 0 Medical Treatment Cases 0 0 First Aid 0 0 Equipment Damage 0 4 Near Miss 0 2 Fire 0 0 Spill 0 0 Hydrocarbon Release 0 0 Vehicle Accident 0 0 Others 0 0 Hazards Report Manhours 80, ,228 In 2012, SYABAS arranged for HSE Trainings for the employees namely, First Aider Training, health talk and safe handling of forklift truck, HSE Knowledge Enhancement Programme for Technician. SYABAS also conducted briefings such as Law Requirements, Working at Heights, Permit to Work, Ergonomics HIRADC and Personal Protective Equipments. PUNCAK OIL & GAS SDN BHD ( POG ) Health, Safety And Environment A Corporate HSE Committee was formed with two meetings held on 18 April 2012 and 9 August 2012 and had participated in monthly Petronas HSE Focal Person meeting. Blood donation campaign 2012 in Hulu Langat In 2012, POG implemented the following OHS programmes: Endorsement of four HSE related policies including the HSE Protection Policy; Drug and Alcohol Abuse Policy; the Smoking Policy; and the Stop Work for Safety Policy Conduct of communication sessions to address office safety, basic life support and office move safety An Emergency Evacuation Drill was held in July 2012 at POG s Office Annual Report 2012 Puncak Niaga Holdings Berhad

149 GOM RESOURCES 147 Health, Safety And Environment GOM Resources Corporate HSE Committee was set up in May In 2012, GOM Resources implemented the following OHS programmes: Valuing Our People A Driving Safely, Buckle Up campaign was held with Kebabangan Petroleum Operating Company Sdn Bhd ( KPOC ) in Etiqa building Monthly management visits were made to project site HSE induction was conducted for all new staff A monthly safety campaign on hand and finger injury protection; housekeeping; slip trip and fall protection; and lifting safety was held at project sites Monthly drills were conducted including muster drill, fire drill, helicopter crash drill, CPR, first aid and stowaway drills Project pre-mobilization Induction was conducted at Batam, Labuan, Kota Kinabalu and Kemaman Health Campaign at the worksite includes high blood pressure check, blood cholesterol & glucose Construction Risk Assessment were conducted for all installation and project campaigns Monthly Safety Award presentation were made to the Safest Man of the Month, the Best Safety Observation Report ( SOR ), the Highest SOR and the best Stop Work for Safety Initiative A Petronas Carigali Sdn Bhd ( PCSB ) Project was conducted including Time off For Safety and Touch the Heart sessions Staff participated in a marine forum and a quarterly contractor conference Urine testing for drugs and alcohol was conducted for all project crew and spread Monthly site safety committee meetings were held A Hazard Hunt and weekly safety walkabouts were held at the work site Monthly Spread Vessel Visit and Inspection The LTIs recorded in 2012 were as follows: Type of Injuries Employees Contractors FATALITIES 0 0 LTI 0 0 Restricted Work Cases 0 0 Medical Treatment Cases 1 2 First Aid 0 0 Equipment Damage 4 Near Miss 5 Fire 0 Spill 0 Hydrocarbon Release 0 Vehicle Accident 0 Others 0 SOR 2,436 Manhours 1,661,136 ACHIEVEMENTS GOM Resources launching of HSE campaign Injury Free Recognitions On 25 May 2012, the management and crew of the Derrick Lay Barge 264 ( DLB 264 ) were recognised by GOM Resources for their outstanding achievement in preventing work-place injuries and for achieving 250,000 man-hours LTI-free. The management and crew of DLB 264 were also recognised for achieving 500,000 man-hours LTI-free on 18 July Puncak Niaga Holdings Berhad Annual Report 2012

150 148 Valuing Our People The KPOC project received an award for achieving 1,000,000 man hours LTI-free on 15 October GOM Resources (DLB264) was awarded for its 2,000,000 man hours LTI-free on 30 October CERTIFICATION 1. GOM was awarded the following Integrated Management System certificates by Det Norske Veritas ( DNV ):- ISO , Quality Management System ISO , Environment Management System OHSAS , Occupational Health and Safety Management System ISO/TS , Petroleum, Petrochemical and Natural Gas Industries Sector Specific Quality Management System The objectives and benefits of implementing an Integrated Management System and of ISO certifications are:- Staff Monthly Assembly Meeting clients requirement for all companies servicing the Oil & Gas sector to have ISO 9001 certification. Increasing operational efficiency by maintaining standard processes. Uplifting the Company s image with a high standard of Quality Management System which support GOM Resources operations. Increasing the Company s marketing value by winning recognition from an international certification body. Reducing auditing time by integrating the four systems into one. Security Services On 9 June 2006, PNHB formed its Auxiliary Police with the objectives of enhancing PNHB security services, creating and maintaining a safe working environment for staff, and customers, and protect the Company s asset. The PNHB Auxiliary Police project a good image by overseeing security and performing the task of developing the trust of PNHB, the Government and the public. Armed with knowledge gained during Auxiliary Basic Training and the authority granted by the Royal Malaysian Police ( PDRM ) to enforce rules and regulations, in 2012, PNHB Auxiliary Police Agency continued its strong commitment and outstanding services to PNHB and the Government. Besides playing a major role in PNHB, it also continuously provided close rapport with the PDRM and local authorities in order to deal with any security issues. With a staff strength of 305, the Auxiliary Police have been placed at PNHB s Management Office, Store, Residency, Billing Counters, WTPs, Pump Houses, Balancing Reservoirs and all sites belonging to PNHB. Besides carrying out standard security duties, the PNHB Auxiliary Police performs the following tasks:- Training Drill by PNHB s Auxiliary Police Acting as Cash-In-Transit ( CIT ) for cash handling activities Escorting vehicles of VIPs or any others as required by the Company Ensuring proper protocol for official ceremonies organised by PNHB Assisting the PDRM in carrying out joint patrols and being omnipresent in specified locations Performing surveillance tasks as directed by the Management Participating in PDRM s official activities by invitation Carrying out police vetting of newly recruited staff to ensure that they do not have criminal record. Annual Report 2012 Puncak Niaga Holdings Berhad

151 In order to enhance the knowledge and efficiency of all the PNHB Auxiliary Police staff, external training is conducted on an ongoing basis. Shooting training is conducted every year to ensure that the PNHB Auxiliary Police staff have good shooting skills and are able to handle firearms efficiently. In ensuring that all PNHB Auxiliary Police staff have a high level of fitness, they are sent for continuous fitness training and are tested twice a year. MANAGING OUR SUPPLIERS AND CONTRACTORS 149 Valuing Our People PNSB As at 31 December 2012, PNSB had enlisted 203 contractors as panel contractors, suppliers or consultants. Apart from the normal criteria assessment for contractors, suppliers or consultants, such as financial and operating strength, past and current performance record, licence or certification from government and regulatory bodies, history of satisfactory performance with other companies and registration with relevant government agencies or bodies, we ensure the quality of the contractors or consultants services, by incorporating clauses in our contracts specifying that work done must be of the highest quality and conform to our standard desired practice, failing which, PNSB has the right to reject the goods or services provided by them. 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. SYABAS As at 31 December 2012, there were 543 contractors, suppliers and service providers registered with SYABAS. In addition to that, SYABAS has registered 214 panel contractors for pipes and meters to carry out emergency works for ten SYABAS District Offices. Like PNSB, SYABAS has a procurement policy with which contractors, suppliers and service providers are appointed. Their appointment and selection also includes non-commercial terms, such as sound and proven track records of their technical capability. WATER FACTS Water increases energy levels To ensure the quality of works and services, contractors, suppliers and service providers have to abide by SYABAS following guidelines:- Garis Panduan Kontraktor, Pembekal dan Penyedia Perkhidmatan. Garis Panduan Bagi Kerja-Kerja Penyenggaraan Paip SYABAS. 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. Auxiliary Police Shooting Training Puncak Niaga Holdings Berhad Annual Report 2012

152 150 Preserving Our Environment The Group continues to operate in an ethical and environmentally responsible manner that contributes to sustainable development At Puncak Niaga Holdings Berhad ( PNHB ), we recognise the need to preserve and to protect the environment and we also recognise the impact that results from our operations. As we operate, the environmental aspects are involved in every area of our business and we continue, to the best of our ability, to minimise the negative effect. Our commitment to preserve the environment is inculcated into all relevant aspects including raw and treated water quality, water safety and public health and we continually review our operations and processes to identify the relevant elements. The Group continues to operate in an ethical and environmentally responsible manner that contributes to sustainable development. Operating in this industry, we recognise our corporate social responsibility for the environment and we endeavour to optimise the use of natural resources. Our environmental initiatives include energy performance, and waste and effluents management. Our environmental commitment is also nurtured within our workplace. This is reflected in the various environmental initiatives practised at our offices and Water Treatment Plants ( WTPs ) including reducing paper consumption, and applying 3R (Reduce, Reuse, Recycle) activities and energy conservation practices. We carefully monitor our carbon footprint so as to better manage the emissions derived from the activities of the Company, its employees, suppliers and contractors. Syarikat Bekalan Air Selangor Sdn Bhd ( 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. Through the ESS, SYABAS has developed Water Resources Surveillance Programmes via its Sanitary Surveys, its Water Quality Index ( WQI ) Programme, Environmental Impact Studies and investigations of raw water quality violations. These programmes focus on preservation of and/or improvement in raw water quality, identifying and monitoring potential pollution sources and activities, and liaising with and making appropriate recommendations to stakeholder groups including water operators, government departments/authorities, government agencies and civil society to mitigate incidences of pollution, and to ensure environmental care. PUNCAK NIAGA (M) SDN BHD ( PNSB ) Raw Water Quality and Violation 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 27 water intakes located within six water catchment areas operated by Puncak Niaga (M) Sdn Bhd ( PNSB ). The water quality data is compiled based on the monthly Water Quality Reports. Annual Report 2012 Puncak Niaga Holdings Berhad

153 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 s ) National Standard for Drinking Water Quality (2004) ( NSDWQ ) as categorised in Table A:- Total Raw Water Quality Violations Recorded Parameter group Microbiological Group I - Physical Group II Inorganic matter Group III Heavy metals 1 1 Group IV Pesticides 0 0 Group V - Radioactivity Preserving Our Environment Total 1,085 1,114 Table A: Breakdown of PNSB s Violated Parameters in 2011 and 2012 Chart A illustrates the annual raw water quality violations and plant shutdown cases from 1995 until ,600 1, No. of Raw Water Quality Violation & Frequency of Plant Shutdown 1,400 1,200 1, ,268 1, , ,319 1,085 1, Production Loss (Hours) Total Raw Water Quality Violations Production Loss (No. of Hours) Year Plant Shutdown Due to Raw Water Violation Chart A: Annual Raw Water Quality Violations and Plant Shutdowns ( ) PNSB s raw water quality data shows that the number of violations increased by 2.7%, from 1,085 in 2011 to 1,114 in 2012 (Table A). Based on PNSB s raw water quality monitoring, it showed that most violations occurred in Sg Langat, Sg Selangor, Sg Bernam and the Sg Tengi basins, as recorded in Table B. Total Raw Water Quality Total Violations Recorded Catchment Area WTP(s) Sg Langat Sg Selangor Sg Bernam Sg Klang Sg Buluh Sg Tengi Inspection visit at Sg Langat WTP Total 29 1,085 1,114 Table B: Breakdown of PNSB s Violations by Catchment Area in 2011 and 2012 Puncak Niaga Holdings Berhad Annual Report 2012

154 152 Preserving Our Environment 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 ), Jabatan Alam Sekitar ( JAS ) Selangor and Selangor Water Management Authority (Lembaga Urus Air Selangor) ( 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 do not occur again. In 2012, 15 incidences of raw water pollution occurred that resulted in WTPs shutdown. The details of these incidences are as follows:- No Date WTP Shutdown hours Type of pollution Probable source of pollution Sg Selisek 6.5 hrs High raw water ammonia level Sg Selisek 5 hrs High raw water ammonia and manganese level Sg Selisek 5 hrs High raw water ammonia level Suspected due to discharges from chicken farm Suspected due to discharges from chicken farm Suspected due to discharges from chicken farm Cheras Mile hrs Diesel spillage Suspected from a quarry site Water quality sampling and testing Ampang Intake 3.75 days Landslide and flood SSP2 15 hrs Abnormal odor (leachate smell) Heavy rainfall resulting mud and runoffs from nearby forest reserve area enter into treatment plant facilities, flocculation tank, sedimentation tank and filter tanks Suspected due to leachate contamination at Sg Air Hitam Annual Report 2012 Puncak Niaga Holdings Berhad

155 No Date WTP Shutdown hours Type of pollution Probable source of pollution Sg Selisek 4.75 hrs High raw water ammonia level Sg Selisek 2.75 hrs High raw water ammonia level Sg Selisek 5.5 hrs High raw water ammonia level Sg Selisek 9.5 hrs High raw water ammonia level Sg Selisek 4.5 hrs High raw water ammonia level Suspected due to discharges from chicken farm Suspected due to discharges from chicken farm Suspected due to discharges from chicken farm Suspected due to discharges from chicken farm Suspected due to discharges from chicken farm Preserving Our Environment Ampang Intake Ampang Intake Ampang Intake Kuala Kubu Bahru 4 hrs High raw water turbidity 2.67 hrs High raw water turbidity 3 hrs High raw water turbidity 2 hrs High raw water turbidity High loading of silt from disturbed catchment due to heavy rainfall High loading of silt from disturbed catchment due to heavy rainfall High loading of silt due to heavy rainfall High loading of silt due to heavy rainfall Note: SYABAS also carried out ESS on the above WTP shutdown incidences investigated in Table C: Record of Plant Shutdown Cases Due to Raw Water Pollution in 2012 as recorded by PNSB BPS Eco-Challenge Programme on 27 June 2012 Puncak Niaga Holdings Berhad Annual Report 2012

156 154 In 2012, the production capacity and quality of treated water of some of the WTPs are also affected by raw water pollution as follows:- Preserving Our Environment No Date WTP 1 Monthly event Sg Langat Type of Pollution High raw water turbidity Probable Source of Pollution Discharge from sand mining area near Sg Sub, tributary of Sg Langat Interruption of WTP Operation Reduced production from 10 50% during pollution 2 During low river water level Salak Tinggi High raw water ammonia level Suspected Industrial and domestic effluent Could cause treated water quality violations January 2012 Cheras Mile 11 Abnormal high fluoride level Suspected industrial effluent Could cause treated water quality violations 4 November December 2012 Sg Sireh Low ph Surface runoff from peat swamp during heavy rain Could cause treated water quality violations Table D: Incidences of Raw Water Pollution in 2012 affecting operation of the plants Treated Water Quality The Water Quality Surveillance ( WQS ) Programme for all the 29 WTPs managed by PNSB is conducted by the Central Laboratory ( CL ) and verified by an independent accredited laboratory appointed by PNSB. The WQS Programme is carried out as per the requirements of MOH s NSDWQ and MOH s Quality Assurance Programme ( QAP ). Based on the WQS Programme carried out by CL and the independent accredited laboratory in 2012, treated water compliance achieved was 99.8% as shown in Table E: Nos of Nos of % Year analyses compliance Compliance ,945 21, Note: The above is based on analysis by Central Laboratory and the Independent Laboratory Table E: Treated Water Compliance Achieved in 2012 Table F shows that the treated water produced by PNSB complied with MOH s QAP. Parameter MOH s QAP (% violation) 2012 (% violation) Visit by students to SSP2 WTP E. Coli < Free residual chlorine (FRC) < E. Coli & FRC < Turbidity < Aluminium < Note: The above is based on analysis by Central Laboratory, the Independent Laboratory and the WTPs Table F: Treated Water Quality compliance to QAP Annual Report 2012 Puncak Niaga Holdings Berhad

157 Water Quality Monitoring Water Quality Monitoring 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 the drinking water supply. The WQI assessment that is carried out for the 27 water intakes in Selangor and the Klang Valley serves as a basis for environmental assessment. The WQI is calculated based on six parameters, namely Dissolved Oxygen, BOD5, COD, Ammoniacal Nitrogen, Total Suspended Solids ( TSS ) and ph. Preserving Our Environment Based on the WQI value, the rivers can be classified under Class I, II, III, IV or V quality, whereby Class I value indicates best river water quality. WQI Class Range Water Usage Description I > 92.7 Water supply I Practically no treatment necessary (except disinfection or boiling) only II Water supply II Conventional treatment required III Water supply III Extensive treatment required IV Irrigation only V < 31.0 Water unsuitable for any of the above uses (Source: Department of Environment Malaysia) Note: Class I value indicates best river water quality. Table G: Water Quality Index Classification According to Department of Environment Malaysia WQI Class Nos of WTPs WTP I 8 Kuala Kubu Bharu, Kalumpang, Sungai Pangsoon, Sungai Lolo, Sungai Serai, Sungai Gombak, Sungai Kepong, Sungai Rumput WTPs. II 12 Rantau Panjang, Bernam River Headworks, North Hummock, Batang Kali, Sungai Selisek, Sungai Dusun, Sungai Tengi, Sungai Buaya, Sungai Langat, Sungai Batu, Ampang Intake, Sungai Rangkap WTPs. III 7 Sungai Selangor Phase 2 ( SSP2 ), Sungai Sireh, Bukit Tampoi, Cheras Mile 11, Salak Tinggi, Bukit Nanas, Wangsa Maju WTPs. IV 0 None. V 0 None. Total 27 World Water Day 2012 Note : Sg Keroh WTP and Sg Pusu WTP have been shutdown. Table H: Water Quality Index ( WQI ) Record at the WTPs for 2012 The average monthly WQI readings in 2012 for the 27 WTPs showed eight stations fall in Class I, 12 stations in Class II and the remaining seven stations in Class III. Puncak Niaga Holdings Berhad Annual Report 2012

158 Balancing Reservoir Water Quality Monitoring The treated water from WTPs is stored in reservoirs prior to distribution by SYABAS to consumers. Preserving Our Environment Balancing Reservoir Water Quality Monitoring at different depth 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. 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 2012, four reservoirs were cleaned either manually or by robotic method at Kuala Kubu Bahru, Ampang Intake, Sg Langat and Matang Pagar. 3. Ammonia Level Monitoring 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 hourly basis. Based on the Ammonia Level Monitoring conducted in 2012, the Summary of Daily Ammonia Level in the raw and treated water at the four WTPs along the Sg Langat basin in 2012 were as summarised below:- Ammonia level (mg/l) Raw Water Treated water WTP Min Max (Average) Min Max (Average) Sungai Langat (0.09) (0.01) Cheras Mile (0.53) (0.01) Salak Tinggi (0.78) (0.05) Bukit Tampoi (0.86) Old : (0.09) New : (0.09) Note: MOH s standard reading for ammonia level is 1.50 mg/l for both raw and treated water. Table I: 2012 Summary of Daily Ammonia Level at four WTPs Along the Sg Langat Basin PNSB has highlighted the high raw water ammonia level issue to LUAS who will take the necessary action to reduce the pollution and to prevent further raw water quality deterioration. Filter Performance Monitoring Visit by BPS Club & PEKA to Sg Langat WTP and Sg Langat Dam 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 and headloss 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 whichever is earlier, backwashing is initiated. Annual Report 2012 Puncak Niaga Holdings Berhad

159 The Research & Process Unit ( R&P ) constantly monitors filter performance by tracking each filter s running hours. Based on the monthly statistics for 174 filters operating at the 29 WTPs, the breakdown of the filter running hours is as tabulated below:- As at As at December 2011 December 2012 Filter Run Time Nos Nos Per Month (hours) of filter % of filter % < Preserving Our Environment Total Note: Some of filters were not in operation as they were either under repair or on standby Table J: Breakdown of filter running hours in 2012 In 2012, the overall filter performance deteriorated with an increased number of filters having less than 30 running hours compared to This could be due to deteriorating raw water quality and also problems with the aging of the filter system which may require either refurbishment or replacement of the filter media. In order to improve filter operation, refurbishment and upgrading of the filter system are being actively carried out at most WTPs. Among the filter refurbishment works carried out in 2012 were those at the SSP2, North Hummock, Sg Rangkap, Sg Batu, Gombak, Sg Langat, Batang Kali and Rantau Panjang WTPs. R&P will continue to monitor and perform studies to further improve the running hours with the objective of achieving a backwashing cycle of 72 hours, or whenever filter headloss reaches 1.8 metres, whichever occurs first. SYARIKAT BEKALAN AIR SELANGOR SDN BHD ( SYABAS ) Water Quality Monitoring 1. Water Quality Monitoring Index ( WQI ) Assessment Programme The details are set out under the section of PNSB s Water Quality Monitoring on page 155 of this Annual Report. The monitoring carried out by SYABAS included additional four water intakes i.e. Sg Semenyih, SSP1- Badong, SSP3-Badong and SSP3-Rasa intakes. WQI Class No. of WTP WTP I 5 Sungai Pangsoon, Sungai Lolo, Ampang Intake, Sungai Rangkap, Sungai Rumput Year 2011 Year 2012 No. of WTP WTP 8 Kuala Kubu Bharu, Kalumpang, Sungai Pangsoon, Sungai Lolo, Sungai Serai, Gombak, Sungai Rumput, Kepong BPS Nature Hunt 2012 in Hulu Langat Puncak Niaga Holdings Berhad Annual Report 2012

160 158 WQI Class No. of WTP WTP Year 2011 Year 2012 No. of WTP WTP Preserving Our Environment II 21 Bernam River Headworks, North Hummock, Batang Kali, Kuala Kubu Bharu, Kalumpang, Sungai Selisek, Sungai Dusun, Sungai Tengi, Sungai Buaya, SSP2, Sungai Langat, Sungai Serai, Bukit Nanas, Sungai Batu, Gombak, Kepong, Wangsa Maju, SSP1, SSP3- Badong, SSP3- Rasa, Semenyih III 5 Rantau Panjang, Sungai Sireh, Bukit Tampoi, Cheras Mile 11, Salak Tinggi 16 Bernam River Headworks, North Hummock, Batang Kali, Sungai Selisek, Sungai Dusun, Sungai Tengi, Sungai Buaya, Sungai Langat, Sungai Batu, Ampang Intake, SSP1, SSP3- Badong, SSP3- Rasa, Semenyih, Sungai Rangkap, Rantau Panjang 7 SSP2, Sungai Sireh, Bukit Tampoi, Cheras Mile 11, Salak Tinggi, Bukit Nanas, Wangsa Maju IV 0 None 0 None V 0 None 0 None Total BPS Nature Hunt 2012 Notes: The WQI was derived from the water quality data obtained from the Monthly Report submitted by PNSB (27 intakes) and the monthly raw water sampling carried out by SYABAS (SSP1 Badong, SSP3- Badong, SSP3-Rasa and Semenyih intakes) in 2011 and Name of WTPs in bold the WTP fell into a lower class compared to the previous year. Name of WTPs in bold italic the WTP improved to a higher class compared to the previous year. Table K: Water Quality Index ( WQI ) Record at 31 Intakes for 2011 and 2012 Raw water quality at five water intakes was found to have improved from Class II to Class I namely Kuala Kubu Bharu WTP, Kalumpang WTP, Sungai Serai WTP, Gombak WTP and Kepong WTP, whilst Rantau Panjang WTP has climbed from Class III to Class II in Year Ampang Intake WTP and Sg Rangkap WTP intakes deteriorated from Class I to Class II while three water intakes fell from Class II to Class III, namely SSP2 WTP, Wangsa Maju WTP and Bukit Nanas WTP. 2. Sanitary Surveys The sanitary survey is a programme conducted to assess the general impact that human activities have on raw water resources and their consequent quality. It also assesses the efficiency of the WTPs treatment process in respect of the raw water components as well as the treated water quality in the distribution lines. World Water Day 2012 In 2012, eight sanitary surveys were jointly conducted by SYABAS team with MOH and WTP operators at the following study areas and the surveys covered the water catchment area, the WTP processes and the distribution area:- i. Kepong WTP ii. Sungai Sireh WTP iii. Sungai Selisik WTP iv. Bernam River Headworks WTP v. Sungai Semenyih WTP vi. Sungai Semenyih WTP s Distribution System (Petaling) vii. Sungai Semenyih WTP s Distribution System (Hulu Langat) viii. Sungai Semenyih WTP s Distribution System (Klang) Annual Report 2012 Puncak Niaga Holdings Berhad

161 Based on these surveys, several activities that might have raw water pollution impacts were identified such as industry, land clearing, illegal sand mining, stone quarries, open landfills and illegal waste dumping sites. These surveys facilitate early detection and provide a general idea about the potential sources of contamination for reference and plant shutdown during the occurrence of pollution events. The survey findings and recommendations are highlighted to the relevant agencies and authorities to mitigate pollution incidents and manage environmental risk before the water supply or the operation of any WTP is jeopardised. 159 Preserving Our Environment 3. Environmental Impact Study ( EIS ) In 2012, land use assessment for an EIS was carried out for the Sg Selangor, Sg Langat, Sg Bernam, Sg Klang, Sg Tengi and Sg Buloh catchment areas. Land use within the water catchment areas refers to various natural or human activities that may result in contamination of raw water and cause deterioration in its quality. Pollution may affect the raw water quality to the point where water treatment processes are unable to cope, 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 2012 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 any pollution issues and risks faced within the water catchment areas. The findings and recommendations are highlighted to the relevant agencies and authorities to mitigate the environmental risk before the water supply or the operation of any WTP is jeopardized. Public Awareness Programme on Environmental Protection and Conservation The Group successfully organised and/or participated in various environmental awareness campaigns and activities in 2012 in a bid to highlight the impact of environmental pollution, and the need to preserve and conserve our water resources ( Activities ). The details of the Activities are set out in the Engagement with Our Community section on pages 164 to 169 of this Annual Report. The Consumer Awareness and Education Programme is an education campaign that was initiated by SYABAS in 2007 to create immediate consumer awareness of water quality issues Consumer Awareness and Education Programme ( CAE Programme ) The Consumer Awareness and Education ( CAE ) Programme is an education campaign that was initiated by SYABAS in 2007 to create immediate consumer awareness of water quality issues. It disseminates knowledge and instils consumer confidence that the water provided by SYABAS is clean and safe for consumption because of the stringent water quality monitoring activities carried out by SYABAS and MOH. To educate consumers, the CAE Programme which involves media coverage includes educational events, as well as 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 by engaging licensed plumbers to ensure that inspections and cleaning are carried out professionally. It also counters misconceptions about household water filters, which can sometimes contribute to the deterioration of water quality at the consumers premises. In addition, the CAE Programme educates consumers to actively fulfil their roles and responsibilities in preserving the quality of water supplied to their premises by maintaining the internal plumbing system. Puncak Niaga Holdings Berhad Annual Report 2012

162 160 Preserving Our Environment Since 2010, the CAE Programme has been carried out on a larger 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 CAE Programme touches on other water supply issues such as low water pressure, pipe bursts/leaks, billing problems, etc. Demonstrations of the quality of water supplied are also carried out at consumers premises. To ensure continuous improvement to the CAE Programme, Standard Operating Procedures ( SOP ) for the programme were developed in 2012, together with a consumer feedback survey to evaluate the impact and effectiveness of the programme. The SOP was updated in Comments and suggestions received from consumers have enabled SYABAS to further enhance its efforts in ensuring that the supply of treated water is always clean and safe for consumption. Year CAE Programme events organised by Headquarters CAE Programme events NA organised by Districts Note: NA Not available. CAE Programme at districts level was only introduced in PNSB AND SYABAS Waste Management Table L: Summary of CAE Programme events organised by Headquarters and Districts from 2007 to 2012 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 2012, 1. SSP2 WTP produced 167,010 metric tonnes ( MT ) of treatment residue. 2. Wangsa Maju WTP produced MT of treatment residue. WTP Residue Treatment SSP2 and Wangsa Maju WTPs are equipped with sludge treatment facilities ( STF ) to treat the residue. The Department of Environment Malaysia had 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 new depository area was completed in 2012 and the residue from the SSP2 and Wangsa Maju WTPs is now sent to this depository area. Reducing Paper Usage Launching of BPS Club Programme at SMK Ungku Aziz In 2012, PNSB s paper usage decreased by 20.4% as compared to This decrease was mainly attributed to the Company s effort in adopting a paperless office Paper Consumption (ton) Carbon Emission (ton of CO2)* * 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) Annual Report 2012 Puncak Niaga Holdings Berhad Table M: PNSB Paper Consumption (A4) from 2010 to 2012

163 At SYABAS, we utilise paper for our daily operations. Based on internal records, our paper consumption dropped in 2012 compared to the previous year. In 2011, the A4 paper consumption stood at ton which is equivalent to ton of carbon dioxide ( CO2 ). In 2012, the paper consumption comprising A4 and A3 papers reduced by 1.85 ton (3.1%) as compared to the consumption in (A4 Size) (A4 Size) (A4 & A3 Size) Paper Consumption (ton) Preserving Our Environment Carbon Emission (ton of CO2)* * Note : Office paper produces 0.27 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) Table N: SYABAS Paper Consumption (A4 and A3) from 2010 to 2012 PNSB and SYABAS will continue to intensify its 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 the Valuing Our People section on pages on 126 to 149 of this Annual Report. Use of Resources Briefing on BPS Raw Water Drawn for Treatment The table summarises the amount of raw water drawn from the various rivers and dams for treatment at PNSB s WTPs in 2012 as provided in PNSB s Operations Review on pages 84 to 89 of this Annual Report. The current climate changes make weather patterns harder to predict, making it more important than ever to continue to 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 Utilisation Water is used for cleaning and maintenance works such as WTP filter backwashing, reservoir and storage tank cleaning, cleaning of pipelines, and flushing. 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. Program SYABAS Prihatin at Laman Budaya, Shah Alam In 2012, water usage at PNSB decreased by 9.49% (15,033 m 3 ) compared to the usage amount of 16,609 m 3 in Puncak Niaga Holdings Berhad Annual Report 2012

164 162 Preserving Our Environment Reducing water losses makes for more effective utilisation of precious water resources. Between 2005, when it started operations, and 31 December 2012, SYABAS has managed to reduce water losses from 42.78% in 2005 to 33.06% in 2012, a reduction of about 9.72%. PNSB and SYABAS 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 589 pumping stations. PNSB s and SYABAS electricity consumption in 2012 was as set out below:- At Wisma Rozali (headquarters), electricity consumption decreased by 0.55% from 1,852,385kWh in 2011 to 1,842,228kWh in The electricity cost however increased by 2.74% due to tariff rise in June 2011 from RM0.397/kWh to RM0.43/kWh. At the WTPs, electricity consumption decreased by 2.5% from 2011 to The decrease was due to the success implementation of energy saving initiatives at several WTPs. At SYABAS, total electricity consumption increased by 6.33% from 2011 to The increase resulted from the increase in the quantity of water pumped during the year. SYABAS measures to replace old and inefficient pumping equipment to reduce electricity usage at booster pumping stations and office buildings were hampered by CAPEX freeze. 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 In order to make savings wherever possible, in 2012, PNSB conducted the following energy efficiency initiatives:- 1. Refurbishment of three treated water pump for the Matang Pagar reservoir. 2. Optimization of recirculation pumps at the Actiflo Plant at SSP2 WTP. 3. Replacement of existing lights to energy saving type for street lighting at SPP2 WTP. 4. Programme to reduce carbon footprint through bicycle utilisation at SPP2 WTP. Use of Raw Materials We are also pleased to report that PNSB utilised 41, MT of chemicals in the water treatment process in As at 31 December 2012, total production of treated water at all 29 WTPs was 711,003,863 m 3 and about kg of chemicals were required to treat 1 m 3 of water. The amount of chemical usage per m 3 of water for 2012 is the same as that of last year. BPS event at Hulu Langat Carbon Emissions The first time we reported our carbon emissions based on the Green House Gas ( GHG ) Protocol was in Being concerned with global environmental issues, especially climate change, Malaysia has adopted a voluntary target of a reduction of up to 40% 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 Annual Report 2012 Puncak Niaga Holdings Berhad

165 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 ). To play its role in reducing environmental stress, SYABAS is also planning to position the company on a low-carbon path, which is in 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 Preserving Our Environment SYABAS carbon footprint excludes carbon emission from WTP which are not operated by SYABAS. Table O illustrates SYABAS CO2 emission profile by source since Based on the information gathered, electricity consumption (Scope 2) contributed 97.77% to SYABAS carbon footprint, fuel consumption by company s vehicles (Scope 1) contributed 2.21% and the remainder 0.02% was contributed from paper consumption (Scope 1) CO2 Source (Tonnes CO2) (Tonnes CO2) (Tonnes CO2) Electricity (Scope 2) 103, , ,811 Transport (Scope 1) 3,475 3,557 2,486 Paper Consumption (Scope 1) Total 107, , , Notes: 1) SYABAS carbon footprint has been updated with the new CO2 emission factor published by GreenTech Malaysia for electricity in Malaysia (0.683 ton CO2/MWh). The previous emission factor used was ton CO2/MWh. 2) Scope 1 - Paper consumption data for 2010 and 2011 was for A4 size only, whilst data for year 2012 is inclusive of A3 size paper. 3) Scope 2 - Direct emissions resulting from company vehicles. 4) Scope 3 - Indirect emissions from electricity purchased and used. OIL & GAS SAVING TIPS Use overdrive gears to save gas Table O: SYABAS CO2 Emission Profile by Source from 2010 to 2012 The main task of SYABAS integrated working group for CFIP 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. SYABAS CFIP includes short term programmes that promote green habits/culture among staff, suppliers and contractors, 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 contribute positively to the mitigation of climate change Locations (MT CO2 -eq) (MT CO2 -eq) BPS Nature Hunt 2012 Wisma Rozali 1, , WTPs 159, , SYABAS 107, , Total 268, , Puncak Niaga Holdings Berhad Annual Report 2012

166 Engagement With Our Community 164 Puncak Niaga Holdings Berhad ( PNHB ) recognises the principles of Corporate Social Responsibility ( CSR ) as sustainable and ethical ways of doing business to 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, PNHB recognises the need to continue to foster and nurture meaningful relationships with its stakeholders. 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 BPS Nature Hunt 2012 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. Conserving, 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 continually strive to maintain our reputation as a caring organization towards our community. COMMUNITY INVESTMENT Tabung Budi event in Gombak As a caring organisation, PNHB Group contributes to community initiatives each year. In 2012, Puncak Niaga (M) Sdn Bhd ( PNSB ), SYABAS and GOM Resources Sdn Bhd ( GOM Resources ) contributed a total amount of RM5,471, 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. Annual Report 2012 Puncak Niaga Holdings Berhad

167 RIVER RESCUE BRIGADE ( BRIGED PENYELAMAT SUNGAI ) ( BPS ) In 2012, 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. 165 Engagement With Our Community As at 31 December 2012, there were 5,595 BPS club members, comprising students from 281 primary, secondary and tertiary schools in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya, an increase of 965 students on the 2011 figure. Events held in 2012 include: 1. World Water Day 2012 Celebrations on 22 March 2012, officiated by YBhg. Tan Sri Rozali Ismail, our Executive Chairman at SYABAS Headquarters. 14 schools in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya participated in the event. 2. Officiating Ceremony of Kelab BPS with Sekolah Menengah Kebangsaan Ungku Aziz Sabak Bernam on 24 March ECO Challenge BPS in conjunction with World Environmental Day on 27 June 2012 at Nur Laman Bistari, Ulu Yam. Four schools around Gombak and the Hulu Selangor area participated in the event. 4. Majlis Berbuka Puasa Jalinan Mesra BPS 2012 on 8 August The above event which was held during the month of Ramadhan was participated by representatives from the Ministry of Education ( MOE ), District Education Offices, NGOs and teachers from Selangor area, aims to strengthen the relationship between the Company and MOE and the Education Departments, and to show our appreciation for their support of our BPS programmes. In 2012, our River Rescue Brigade held various events involving educational and entertainment activities 5. BPS Nature Hunt 2012 on 18 October 2012 which was officiated by YB Dato Hajjah Noriah Kasnon, Deputy Minister of Tenaga, Teknologi Hijau dan Air (KeTTHA) at Nur Lembah Pangsun, Hulu Langat. One school and two universities in the Cheras and Sabak Bernam areas participated in the event BPS Membership Recruitment Drive. Briefing introduction of BPS Club to 80 primary and secondary schools in Selangor and the Federal Territories of Kuala Lumpur and Putrajaya on 7 November 2012 for the purposes of increasing students knowledge of conservation and protection of the environment in particular the river water, the source of drinking water. 7. Educational Outreach Programme ( Program Pelestarian Pendidikan ) ( 3P ). We organised monthly 3P programmes, conducted in collaboration with the BPS Club, to help educate 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. Misi Bantuan Kemanusiaan Bekalan Air in Terengganu Six schools participated in the 3P programmes in Puncak Niaga Holdings Berhad Annual Report 2012

168 166 Engagement With Our Community 8. Public Awareness Programme In 2012, BPS conducted public awareness programme during Migration programmes and Pelanggan Prihatin programmes, some of which also facilitated activities such as drawing and colouring competitions, exhibitions and membership drive at public venues. TABUNG BUDI Tabung Budi was founded on 24 August 2010 by staff of SYABAS and PNSB. The Program Bantuan Bekalan Air Tabung Budi was launched by PEKA at SYABAS Headquarters on 22 October This programme, inspired by YBhg Tan Sri Rozali Ismail, our Executive Chairman, focuses on helping the poor, the homeless, single parents, the disabled and those in need. To date, 2,770 individuals including PEKA members, employees of SYABAS and PNSB as well as the public are supporting the Program Bantuan Bekalan Air Tabung Budi. The Tabung Budi team has introduced Aktiviti Turun Padang Tabung Budi whereby a presentation ceremony is held at the recipients residences. In 2012, Tabung Budi held 40 events covering ten districts namely, Klang, Petaling, Kuala Lumpur, Hulu Selangor, Kuala Selangor, Sepang, Gombak, Kuala Langat, Hulu Langat and Sabak Bernam. A total of 377 families have benefited from the Tabung Budi programme since its implementation in In 2012, 190 families irrespective of their social and ethnic background were selected to benefit from the Tabung Budi programme. The total donation received to date amount to RM309, Since the introduction of Tabung Budi, RM304, of the money raised was utilised for payment of water bill arrears, water connection charges, repair of water pipes and meter stands; installation of water supply for new water account, installation and reconnection charges on water supply to recipients residences and payment of monthly bills. Other Corporate Responsibility Events 1. Sponsorship and Donations 2012 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: Staff s visit to Old Folks Home Al-Ikhlas 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 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 Annual Report 2012 Puncak Niaga Holdings Berhad

169 Some of the communities that benefited from our 2012 sponsorship and donation drive included:- Perdana Leadership Foundation University Malaya Sekolah Jenis Kebangsaan Tamil Bestari Jaya Sekolah Menengah Kebangsaan TTDI Jaya Persatuan Pentadbir Universiti Teknologi Mara Federation of Public Listed Companies Bhd Suruhanjaya Koperasi Malaysia Mangsa Banjir Hulu Langat Sekolah Kebangsaan Bangsar Mangsa Banjir Hulu Selangor Sekolah Pendidikan Khas Malaysia Water Resources Management Persatuan Down Sindrom Malaysia UiTM Tabung Rejimen 514 Askar Wataniah The Malaysia Oil & Gas Services Council 167 Engagement With Our Community 2. Key Social Responsibilities in On 6 January 2012, we participated in the Sumbangan Air Mineral in conjunction with the Prime Minister, YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak s visit to the PROTON Shah Alam plant. 2. The launch of World Water Day 2012 on 22 March 2012 at SYABAS Headquarters by YBhg Tan Sri Rozali Ismail, our Executive Chairman. 3. In 2012, we hosted and participated in various Gotong-Royong events with the residents:- Majlis Berbuka Puasa with the orphanage On 18 March 2012, at Kg. Hulu Rening Batang Kali. On 13 April 2012, at Masjid As Sabirin Kg. Bukit Changgang. On 20 April 2012, at Masjid Jamek Jamaiyah Morib. On 29 April 2012, at Kg. Wawasan Fasa 5, Bandar Utama Batang Kali. On 14 May 2012, at Kg. Baru Batu 9, Cheras. On 25 May 2012, at Kg Tg Sepat, Kuala Langat. On 16 June 2012, at Jalan Tanjung, Bukit Beruntung. On 14 July 2012, at Kg. Sg Manggis, Kuala Langat. 4. On 11 February 2012, we participated in Gotong-Royong with Pejabat Belia Dan Sukan Daerah ( PBSD ), Kuala Selangor at PBSD s office. 5. In 2012, we participated in various Misi Bantuan Kemanusiaan Bekalan Air Bersih events with the following parties:- On 10 March 2012, in helping the flood victims at Kg. Melayu Ampang. On 9 May 2012, in helping the flood victims at Kg. Sentosa, Batang Kali. On 7 April 2012, with Rejimen Pakar Air Jurutera Di Raja (RAJD) in helping the flood victims at Gerik, Perak. On 27 December 2012, with Rejimen Pakar Air Jurutera Di Raja (RAJD) in helping the flood victims in Terengganu. Program Migrasi & BPS in Pangsapuri Subang Impian 6. On 28 January 2012, we organised a Program Khidmat Masyarakat Bersama Penduduk Masjid Lama Kg. Ampang at Kuala Kubu Bharu. Puncak Niaga Holdings Berhad Annual Report 2012

170 168 Engagement With Our Community 7. In 2012, 190 families benefited from the Program Bantuan Bekalan Air Tabung Budi In 2012, we hosted the Program Penyerahan Sumbangan Air Bersih at various locations as follows: On 5 to 7 February 2012, for the National Blood Centre in conjunction with Kempen Derma Darah Daerah Gombak. On 6 to 7 February 2012, for the Hindu Sevai Sangam temple at Batu Caves in conjunction with Thaipusam celebration. 9. We brought smiles to the unfortunate children and community through various philantrhopic activities. These include: On 26 May 2012, we held the Program Motivasi Anak-Anak Yatim PAYSA Bersama SYABAS at Rumah Anak Yatim PAYSA, Wilayah Kuala Selangor. On 15 October 2012, we invited some Down syndrome children for a trip to the Kuala Lumpur Bird Park, Kuala Lumpur. On 28 November 2012, we treated the orphans from Rumah Amal Al Rahmaniah, to a trip to the Aquaria KLCC, Kuala Lumpur. On 24 December 2012, we held a Christmas Cherish with the paediatric patients at Selayang Hospital. On 27 December 2012, we treated the Anak - Anak Yatim Shifa and Rumah Perlindungan Agathians to a theatre musical show, Beauty & The Beast. 10. On 9 June 2012, we hosted the Explorasi Bukit Gasing bersama Pihak Berkuasa Tempatan Wilayah Petaling. 11. On 3 to 4 November 2012, we supported the Program Kem Solehah Surau Al Salam Gugusan Dedap Kota Damansara. 12. PNSB and SYABAS hosted visits by various agencies, both local and overseas, details as shown below:- Visitors Venue Date Compassive SSP2 WTP 8 March 2012 Secondary School, Singapore Lembaga Urus Air Klang Gates Dam 4 April 2012 Selangor JKKK Sabak Bernam SSP2 WTP 28 April 2012 JKKK Sabak Bernam Bernam River Headworks WTP 30 June 2012 Tabung Budi event in Hulu Langat District Universiti Malaya Klang Gates Dam 5 July 2012 Malaysia University Bukit Nanas WTP 14 July 2012 Science Technology SEGI College SSP2 WTP 14 July 2012 KAIST-KYOTO- SYABAS Headquarters and 14 July 2012 NTU-NUS Symposium PUSPEL Contact Centre Annual Report 2012 Puncak Niaga Holdings Berhad

171 Visitors Venue Date The Office of Waterworks, SSP2 WTP 5 September 2012 Seoul Metropolitan Government Majlis Keselamatan Sg Langat WTP and SYABAS 25 September 2012 Negara, Negeri Kelantan Korean ICC Delegation SSP2 WTP 16 October Engagement With Our Community Japanese School Wangsa Maju WTP 27 November 2012 Politeknik Sultan SSP2 WTP 6 December 2012 Idris Shah Universiti Putra Malaysia Sg Langat WTP and Langat Dam 8 December 2012 Universiti Putra Malaysia Wangsa Maju WTP 15 December 2012 PEKA Members Children Wangsa Maju WTP & 20 December 2012 Klang Gates Dam 13. In conjunction with the month of Ramadhan:- (a) On 31 July 2012, we organised Program Bubur Lambuk Amal bersama Media. (b) On 3 August 2012, PEKA organised Program Bubur Lambuk PEKA bersama Media & Selebriti. WATER FACTS Water is the primary mode of transportation for all nutrients in our body and is essential for proper circulation Program Migrasi at Pangsapuri Desa Perangsang Puncak Niaga Holdings Berhad Annual Report 2012

172 FEB 2012 PNHB s Group s Executive Chairman, YBhg Tan Sri Rozali Ismail was awarded the Special Individual Achievement Category at the 1 st Malaysia Achievement Awards 2012 Corporate Events 6 JAN 8 MAR MAR 2012 Study visit by students from the Compassive Secondary School, Singapore to SSP2 Water Treatment Plant ( WTP ) Gotong-royong and contribution of 5 litre mineral water to the flood victims at Ampang Intake 22 MAR 2012 Launching Ceremony of PNSB s and SYABAS celebration of World Water Day JAN 24 MAR 2012 Contribution of 5,000 bottles of mineral water in conjunction with the Prime Minister, YAB Datuk Seri Mohd Najib Tun Haji Abdul Razak s visit to the Institut Kemahiran Belia Dusun Tua, Negeri Selangor 4 APR 2012 Visit by Lembaga Urus Air Selangor to Klang Gates Dam 23 FEB 22 MAR 7 APR 2012 Launching of the mission of supplying bottled water to residents in Perak together with Rejimen Pakar Pengendalian Air Ke-60 RAJD (AW) 14 APR 2012 Visit by PEKA to Rumah Jagaan & Rawatan Orang Tua Al-Ikhlas 6 MAY 2012 SYABAS was awarded the Anugerah Industri Sukan Negara 2012 Promosi Gaya Hidup Sihat Melalui Sukan 10 MAR 11 MAY 2012 Signing Ceremony of the Memorandum of Understanding ( MOU ) between Puncak Niaga Holdings Berhad and the Government of Malaysia, represented by Politeknik Sultan Idris Shah ( PSIS ) 6 JAN JAN JAN FEB 2012 SYABAS Klang District Public Relations Programme Contribution of mineral water in conjunction with the Prime Minister s visit to PROTON Shah Alam plant PNHB s Group s Executive Chairman, YBhg Tan Sri Rozali Ismail was awarded the International Distinguished Entrepreneur Of The Year for the Asia Pacific International Brands Summit (Malaysia) 2011 by the Asia Entrepreneur Alliance Briefing on Water Status to the Federation of Malaysian Manufacturers Selangor SYABAS Klang District Public Relations Programme Dialogue session with Nippon Electrical Glass (M) Sdn Bhd 7 APR 11 MAY 26 JUN Annual Report 2012 Puncak Niaga Holdings Berhad

173 22 MAY JUN JUN JUN JUN JUL 2012 GOM Resources Sdn Bhd attended the launching of the PAN Malaysia Integrated Offshore Installation 2012 Campaign held at the Rennaisance Hotel, Kuala Lumpur GOM Resources Sdn Bhd hosted Gawai Luncheon for clients PNHB received two awards namely, Federation of Public Listed Companies Berhad ( FPLC ) Top 10 Companies Highest Sponsorship Recognition Award 2010/2011 CSR in Sport Activities and FPLC Recognition Award Top 10 Companies Most Active in Professional Development Participation in Seminars and Conferences by FPLC PNHB s 15th Annual General Meeting held at Concorde Hotel Shah Alam BPS ECO-Challenge Programme in conjunction with World Environment Day 2012 PNSB received eight gold awards and SYABAS received ten gold awards at MSOSH Award Ceremony 14 JUL SEPT SEPT NOV 171 Corporate Events 19 JUN 27 JUN Visit by participants from KAIST-KYOTO- NTU-NUS Symposium to SYABAS Visit by the Office of Waterworks, Seoul Metropolitan Government to SSP2 WTP Visit by the delegates from Majlis Keselamatan Negara, Kelantan to Sg Langat WTP 11 OCT 18 OCT 5 SEPT 27 DEC 11 OCT OCT OCT OCT NOV NOV DEC & 8 DEC DEC 2012 PNSB was awarded the Bronze Award at the 12 th Malaysia HR Awards 2012 Employer of Choice Korean Innovative & Creative Circle ( ICC ) delegation visit to SSP2 WTP BPS Nature Hunt Programme 2012 Official launching of GOM Resources Sdn Bhd s website at SYABAS exhibition in conjunction with The Malaysia Water Resources Management Forum 2012 (MyWRM) PNHB was awarded the Socrates International Award in London, United Kingdom Study visit by lecturers from Politeknik Sultan Idris Shah to SSP2 WTP GOM Resources Sdn Bhd attended the Ministry of Energy Partners and Operators Appreciation Dinner held in Nay Phi Taw, Myanmar Launching of a mission of supplying clean water to residents in Terengganu together with Rejimen Pakar Pengendalian Air Ke-60 RAJD (AW) Puncak Niaga Holdings Berhad Annual Report 2012

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