Pos Malaysia Berhad Annual Report 2009

Group Financial Highlights POS MALAYSIA ANNUAL REPORT 2009
Revenue Operating Profit EBITDA Profit After Tax Earnings Per Share (Basic) NTA Per Share
109 108 167
922 148 148
903 31.1
101 20.2
859 9.2 9.6
145
RM MILLION
RM MILLION
14.3
RM MILLION
RM MILLION
820 108
86 127 131
82 77
SEN
786 1.6 1.4 1.5
RM
(34) (33) (6.3) (6.2)
05 06 07 08 09 05 06 07 08 09 05 06 07 08 09 05 06 07 08 09 05 06 07 08 09 05 06 07 08 09
2009 2008 2007 2006 2005

Profitability Revenue Breakdown Operating Expenses Breakdown
Profit before taxation RM million 109.3 (0.5) 15.5 155.9 166.3
Operating margin % 9.1 9.4 11.8 13.2 13.9
EBITDA margin % 14.5 13.7 16.9 18.0 18.9 6% 6%
18% 5%
Return on Assets % 5.9 6.2 7.9 8.1 8.6
2%
Return on Equity % 9.6 (4.4)* (3.9)* 11.5 18.6 13% Maintenance & Supplies
Balance Sheet Mail 6% Rental, Communications & Utilities
Total Assets RM million 1,274.6 1,537.8 1,247.1 1,326.0 1,333.8 Courier Depreciation & Amortisation
RM 903 mil 15% RM 820 mil
Total Equity Attributable to Equity Holder of the Company RM million 799.6 764.5 859.4 938.0 900.5 Retail 5% Raw Materials & Consumables
Current Ratio times 1.2 1.1 1.3 2.2 1.9 Transportation
Others
Staff Information Staff Costs
No. of Staff 15,780 16,125 15,777 15,425 15,063
Other Operating Expenses
Staff Costs RM million 512.3 513.3 456.4 427.7 425.1
62% 62%
Revenue per employee RM’000 57.2 57.2 54.5 53.2 52.2
* Note: Return on Equity (ROE) is negative due to allowance for impairment losses. Excluding impairment, ROE stood at 10.8% and 12.5% for 2008 and 2007 respectively.
2 Pos Malaysia Annual Report 2009 Pos Malaysia Annual Report 2009 3
Business Highlights POS MALAYSIA BERHAD POS MALAYSIA ANNUAL REPORT 2009
MAIL BUSINESS COURIER BUSINESS RETAIL BUSINESS

SHARE PRICE PERFORMANCE
RM2.02 as at RM2.22 as at
2 Jan 2009 31 Dec 2009
• Revenue RM562.3 mil (down 0.6%) • Revenue RM167.0 mil (up 2.7%) • Revenue RM139.0 mil (down 3.2%)
BUSINESS
REVIEW
• Volume: 1,241.4 mil items (down 2.3%) • Volume: 14.6 mil items (up 5.0%) • Volume: 107.6 mil transactions (down
• Revenue contribution: 62.3% • Revenue contribution: 18.5% 6.5%)
• Revenue contribution: 15. 4%
• Gold Award for the Universal Postal • Rationalised international lanes for cost • Introduced Shared Banking Services
Union’s (UPU) Quality Management savings and improved profitability with RHB Bank
Certification Programme • Introduced shipment tracking via SMS • Introduced Pos Automated Machine
• Participated in the trial of UPU’s Global • Reader’s Digest Trusted Brand Awards (PAM)
ACCOMPLISHMENTS
Monitoring System; an RFID based • Frost & Sullivan Asia Pacific Transportation • Launching of Pos-on-Wheels JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
service quality monitoring system & Logistics Awards for Domestic Express • New Look & Feel for KL GPO and
• Embarked on delivery beat recasting Service Provider of the Year (Malaysia) Kuantan GPO
2009
• Started deployment of an Electronic • MSC Malaysia APICTA as the Best • Addition of Affin Bank, Al-Rajhi Bank POS Volume POS Share Price
e-Logistics for PITTIS and EON Bank as payment gateway
Prepaid Mail Transaction System
• Brand Laureate Awards for PosOnline
• International Business Review Awards for
excellence in government delivery services
• Introduced Electronic Shipping Tools (EST) 2009 JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC
to premium customers which handles
large shipments. Total Monthly Volume 5,762,700 4,665,900 4,841,400 2,923,000 1,869,000 3,402,500 3,075,600 2,744,700 4,436,200 1,842,700 1,822,600 5,307,300
Monthly High (RM) 2.04 2.20 2.14 2.23 2.50 2.54 2.34 2.47 2.35 2.43 2.42 2.31
• Develop Direct Mail • Establishing network relationship with • Crafting new Retail Strategy
• Grow parcel business Monthly Low (RM) 1.98 2.03 2.05 2.10 2.22 2.14 2.01 2.18 2.11 2.21 2.12 2.12
international courier providers to • Focus on financial services/products and
FORWARD
• Capitalise on new business Monthly End Closing 2.02 2.03 2.12 2.23 2.39 2.20 2.34 2.20 2.28 2.31 2.36 2.22
MOVING
develop new business opportunities postal products Price (RM)

opportunities in Corporate Mail
Management
POS MALAYSIA ANNUAL REPORT 2009
6 Pos Malaysia Annual Report 2009 OUR BUSINESS AND ACCOMPLISHMENTS

Pos Malaysia Annual Report 2009 7
Contents Cover Rationale
Group Financial Highlights
01
02
Business Highlights 04
Share Price Performance 05
Our Business & Accomplishments 06
Chairman’s Statement 10
Group Managing Director / CEO’s Report 14
Accolades and Awards 20
Mail Business 22
Courier Business 26
Retail Business 30
Group Products & Services 36
Corporate Events 40
Pos Malaysia in the News 48
18 th Our Profile
Corporate Information
Corporate Structure
50
52
54
SIMPLIFY ENGAGE DELIVER Annual General Meeting Board of Directors

Leadership Team
55
68
12 May 2010 Our Commitment 72
The Legend Grand Ballroom, Corporate Social Responsibility Statement 74
Corporate Governance Statement 76
Legend Hotel Kuala Lumpur, Statement of Internal Control 92
Level 9, Putra Place, Directors’ Responsibility Statement 96
100, Jalan Putra, Additional Compliance Information 98
Audit Committee Repor t 100
50350 Kuala Lumpur Directors’ Report & Financial Statements 107
Directors’ Repor t 108
Balance Sheet 112
Income Statement 114
Statement of Changes in Equity 115
Cash Flow Statements 116
Notes to the Financial Statements 119
Top 10 Proper ties 188
Analysis of Shareholdings 194
Notice of 18 Annual General Meeting
th
198
Proxy Form 203
Chairman’s Statement
“Cost mitigation measures
and process improvement
Dear Valued Shareholders, initiatives were aggressively
It is my pleasure to present to you the Annual Report and 2009 Headline Key Performance Indicators (KPI)
Audited Financial Statements of the Group for the financial The 2009 Headline KPI achievement showed mixed pursued in 2009.”
year ended 31 December 2009. results. The Group managed to surpass its Earnings Before
Interest, Taxes, Depreciation and Amor tisation (EBITDA)
The Group posted revenue of RM902.6 million for 2009, and Return on Assets (RoA) Headline KPIs. Pos Malaysia
lower than 2008 performance of RM921.7 million. The recorded EBITDA of RM131.3 million, slightly above the
revenue decline of 2.1% was recorded amidst weak economic target of RM130 million, whilst RoA was at 5.9% against the
conditions which adversely affected mail volume. Despite the announced Headline KPI of 4.5%. The achievement is line
drop in revenue, the start of our transformation effort has with cost management measures adopted by the company.
managed to reduce the impact whereby operating profit only However, Pos Malaysia missed its Revenue Headline KPI of
declined by RM3.9 million from RM86.2 million in 2008 to RM940 million by 3.8%.
RM82.4 million in 2009.
Dividend Payout
2009: Weathering the Turbulence Pos Malaysia remains committed to its Dividend Policy of
The recession in 2009 was unprecedented in its scale and declaring at least 35% of net profit as dividend. Our Dividend
impact. The first quarter of the year was heavily influenced by Policy defines net profit as net profit after tax excluding
the massive de-risking as volatility and risk aversion pushed one-off exceptional/extraordinary items such as impairment
investors to unwind their positions. In the second half of the and capital gains. For 2009, the net profit attributable to
year, government and central bank support was a key driver to shareholders excluding minority interests and exceptional
help inch positive readings back to macroeconomic indicators. items stood at RM70.5 million.
Pos Malaysia weathered through this difficult period through

intensifying cost management. Cost mitigation measures and
process improvement initiatives were aggressively pursued
in 2009. In line with the measures taken, the Group saw
operating expenses declined by RM15.2 million to close at
RM820.2 million.
10 Pos Malaysia Annual Report 2009

POS MALAYSIA ANNUAL REPORT 2009 Chairman’s Statement
I am pleased to report that the Board of Directors is 2010: The First Year of the Transformation Board Changes
proposing a final dividend of 12.5 sen per ordinary share Master Plan The Board of Directors would like to welcome to the ceased pursuant to the expiration of his term of service as
less 25% income tax to be paid out to the shareholders The macroeconomic outlook for Malaysia and other emerging Pos Malaysia Berhad Board of Directors Tan Sri Dato’ Ir. ED/GCOO of the Company with effect from 1 August 2009.
for the financial year ending 31 December 2009, subject to market economies is positive. However, we need to remain Muhammad Radzi bin Haji Mansor and En. Haizan bin Mohd Datuk Abu Huraira also subsequently resigned as Director
shareholders’ approval at the 18th Annual General Meeting cautious as concerns remain on the sustainability of the global Khir Johari who were appointed on 21 October 2009 and effective 1 August 2009 and has been appointed as Chairman
of Pos Malaysia. This translates into net dividend payout of recovery as well as added downside risks from withdrawal of 23 February 2010 respectively as Non Independent Non of SOCSO effective the same day. We wish him all the best
71.4% of net profit, 36.4% higher than the minimum payout government support in developed economies. Executive Directors. Tan Sri Dato’ Ir. Muhammad Radzi brings in his current role.
ratio declared in the Dividend Policy. with him a wealth of knowledge and experiences from more
The postal industry, both globally and locally will continue than 20 years in the telecommunications industry including Lastly, we would like to thank our loyal shareholders for their
Awards to be a challenging environment as it continues to face as Chairman and Director at Telekom Malaysia Berhad from continued trust and faith in Pos Malaysia. With the suppor t of
Even in difficult times Pos Malaysia continues to deliver an unprecedented level of competition from electronic 1999 to 2009. En. Haizan is currently Senior Vice President, all our stakeholders, Pos Malaysia will endeavour to deliver its
outstanding services and this is recognised by the array of communications. While we do not expect to see a free fall Investments at Khazanah Nasional Berhad. best in the years ahead.
awards bestowed on to the Group. Pos Malaysia garnered in letter mail volumes, there does appear to be a systemic
the Universal Postal Union’s (UPU) Quality Management decline especially with transactional letter mails. However Pos Malaysia weathered through the turbulence of 2009
Cer tification Programme Gold Award for 2009. PosLaju the same trend in electronic communications is also through the strength and suppor t of all our stakeholders.
continues its winning streak with the Reader’s Digest providing real growth oppor tunities as more goods are We would like to extend our hear tfelt gratitude and Sincerely,
Trusted Brand Gold Award for the fourth consecutive year. being ordered online. appreciation to all those who have been instrumental in
PosLaju also clinched the Frost & Sullivan 2009 – Asia Pacific helping us cope with the difficult conditions: our staff for Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat
Transpor tation & Logistics Award for Domestic Express The launch of Pos Malaysia’s Transformation Master Plan is their unwavering dedication and sacrifices, the Unions for Chairman
Service Provider of the Year. Pos Malaysia’s continuous effort timely in addressing the challenges and seizing oppor tunities their collaboration and our customers and par tners for their
to leverage on Information and Communications Technology that surfaced as a result of the downturn. Cost management continuous suppor t.
was also recognised when it won the MSC Malaysia Asia initiatives will be accentuated with the redesign and
Pacific ICT Award, as the Best in e-Logistics Category for enhancements to operations and functions so as to deliver The Board of Directors and Management of Pos Malaysia
our development of a track and trace system. optimum productivity. New growth opportunities will Berhad would also like to extend its sincere appreciation to
also arise through leveraging on previously under utilised YBhg Datuk Abu Huraira bin Abu Yazid for his contributions
strengths within the Group especially with its courier and as Executive Director/Group Chief Operating Officer (ED/
retail businesses which will help to reduce our dependency GCOO). Datuk Abu Huraira’s term as Executive Director
on mail.
Group Managing Director / CEO’s Report POS MALAYSIA ANNUAL REPORT 2009
It has since been another tr ying year for the postal industry Mail business continues to be the major source of revenue This was largely attributable to the effective cost optimisation
worldwide amidst a turbulent global economy. Pos Malaysia despite declining mail volume, contributing RM562.3 million, measures throughout the year and the absence of any
navigated through 2009 with intensified cost management or 62.3% of the Group’s revenue. Courier business improved, investment impairment provisions. The year also saw Pos
measures and revenue enhancement effor ts to battle severe registering a 2.7% revenue increase to RM167.0 million, whilst Malaysia consolidating its investments via disposal of
challenges from declining postal volume. the retail business experienced a slight dip in revenue by G-Force and the acquisition of the remaining 45% equity
3.2% to RM139.0 million in 2009. Courier and retail business interest in Digicer t.
Sustained Performance Amidst Adversities contributed 18.5% and 15.4% to total revenue respectively
In 2009, Pos Malaysia achieved a total year end revenue of in 2009. Aligning People and Strategy
RM902.6 million, underperforming 2.1% against the results Our people are our most treasured resources and they have
of RM921.7 million in 2008. Taking into consideration the Operating expenses for 2009 registered at RM820.2 million, continued to suppor t our growth in good and bad times. In
difficult business environment, Pos Malaysia’s performance lower by RM15.2 million from RM835.4 million in 2008. The return, Pos Malaysia continues to provide oppor tunities for
and achievement in 2009 is yet a commendable one. intensified cost management programme has contained learning and growth, career development as well as equipping
significant cost escalation. For example, staff cost is at the our people with the right skills and competencies to handle
same level as last year even with salary increases and bonus value adding tasks and expanded roles. Our commitment
“We see 2010 bringing payments while transpor tation cost has reduced by 13.6% is evidenced through our “Growing Together Programme”
greater opportunities for due to lower fuel prices. which saw qualified, performing non executive staff being
given oppor tunities to assist in under taking responsibilities in
us, as we shift strategies Notwithstanding the prevailing difficulties in the economy, the execution of strategic initiatives.
in line with the expected Pos Malaysia emerged profitable in 2009. Operating profit
gradual economic recovery, was slightly lower by 4.5% from RM86.2 million in 2008 to At the same time, we fur ther recognise and reward our
RM82.4 million. On the other hand, Earnings Before Interest, people’s effor ts through the launch of Employee of the Month
capitalising on new growth Depreciation and Amor tisation (EBITDA) improved by and Employee of the Year Awards apar t from realigning
areas such as direct mail and 3.6% to RM131.3 million from RM126.7 million last year. our reward framework to instil a high performance, profit
emerging technologies to We recorded a profit before taxation of RM109.3 million driven culture. During the year, the company revisited its
facilitate e-commerce and net profit of RM76.7 million, as compared to a loss recruitment and resource planning strategy and redeployed
before taxation of RM0.5 million and a loss after taxation staff to better manage resources in difficult times.
and delivery needs.” of RM33.3 million in 2008.
POS MALAYSIA ANNUAL REPORT 2009 Group Managing Director / CEO’s Report
Improving Customer Satisfaction Enhancing Regulatory and International Gearing Up for Transformation
Pos Malaysia’s commitment towards improving customer consultant. The survey results showed improved satisfaction Development The postal industry is at a precipice of change, driven by the
satisfaction is evidenced by our improved Customer levels for courier and retail business which achieved an index In 2009, Pos Malaysia together with its policymakers explosion of digital media and changing customer behaviours.
Satisfaction Index (CSI) and Image Index (II) results. For 2009, of 4.0 respectively, while mail CSI is sustained at 3.8. The and regulators namely; the Ministry of Information, In recent years, letter volumes continue to decline at
Pos Malaysia scored 3.9 out of 5.0 for CSI, which translates customers are also satisfied with our new corporate identity Communications & Culture (KPKK) and the Malaysian unprecedented rates as companies seek cheaper alternatives
into 78% satisfied customers, an increase by 2 percentage as reflected in improved Image Index (II) at 3.5 against 3.3 in Communications & Multimedia Commission (MCMC), to drive down business costs. For Pos Malaysia, the status quo
point against preceding year with CSI score of 3.8. The preceding year. All business segments showed improvements achieved a milestone through the development of the is untenable.
study measures customer satisfaction on Pos Malaysia’s in Image Index with scores for courier at 3.9, retail at 3.5 and National Postal Strategy which sets the guiding principles for
products and service level which was conducted by an external mail at 3.3 out of 5.0 respectively. the strategy formulation, objectives and action plans for the Our Transformation Framework
reform, development and integration of the postal industry
in line with national economic objectives and Universal Postal
Union (UPU) postal strategy.
On the international front, Pos Malaysia’s re-election into

the Asia Pacific Post Cooperative Management Board in
Auckland, New Zealand during the Asia Pacific Postal Union
(APPU) Congress in March 2009 was testimony to our
regional leadership role.
As par t of our contribution to improving quality of service

in the region, Pos Malaysia par ticipated in the UPU-APPU We are compelled to respond to the new landscape and shape
Regional Quality of Service Programme which commenced our future. Having our business confronted with alarming mail
in August 2008 and was completed in November 2009. volume declines, escalating costs and threats of obsolescence
from abundant electronic substitutes, we had no choice but to
Consequently, Pos Malaysia won the Gold award for the gear into a transformation mode for survival.
UPU Quality Management Cer tification Programme. In
addition, Pos Malaysia implemented the Global Monitoring Acknowledging the challenges and the need to achieve
System (GMS) in our International Office of Exchange as performance breakthrough, Pos Malaysia launched the 3-year
a first step towards enhancing delivery performance for Transformation Master Plan (TMP). Our TMP is anchored
inbound international mail and thus, contributing to overall on a clear strategic direction: focus on our domestic core
international network enhancement. business, namely mail, courier and retail in the next 3 years.
POS MALAYSIA ANNUAL REPORT 2009 Group Managing Director / CEO’s Report
The TMP aims to develop a more customer-centric Within the pillars are 39 initiatives with comprehensive In addition, extensive vibrant renovations have also been We pledge to SIMPLIFY our processes, to better ENGAGE
environment to extend convenience and easier access to execution plans. Management will be actively and regularly carried out at our main branches as par t of the re-branding our people and customers, allowing us to DELIVER more
our customers, along with improvements to our operational monitoring the progress of the initiatives, and look forward initiative, with every intention of revamping the total customer value to all our stakeholders.
efficiency and optimisation of our resources, allowing the to sharing our fruition from rejuvenation throughout the experience at Pos Malaysia.
Group to pursue new business opportunities. next 3 years. Though some quick wins have been realised, the
TMP would only yield most of its benefits in 2011 and 2012. 2010: Opportunities and Prospects
The TMP equips us with a road map that zeroes in on the We see 2010 bringing greater oppor tunities for us, as we Truly Yours,
following pillars: Early Successes shift strategies in line with the expected gradual economic
Through more effective management of resources, Pos recovery, capitalising on new growth areas such as direct Dato’ Syed Faisal Albar
• Focus on customer needs – Create new solutions to Malaysia managed to reduce its total number of employees mail and emerging technologies to facilitate e-commerce and Group Managing Director / Chief Executive Officer
meet ever-changing customer demands; for the very first time. Total number of staff at 31 December delivery needs.
• Operational excellence – Leverage on the latest 2009 was 15,780, down 345 from 16,125 a year earlier.
technological advances to improve efficiency;
• Concentrate on core business – Anchoring on profitable This was done through natural attrition and redesigning
business and doing away with the contrary; certain processes. Key among them is our delivery beat
• Unleash talent and capabilities – Developing and recasting initiative which saw the number of delivery beats
nourishing talents to nurture future leadership team; reduced, whilst at the same time allowing for the redeployment
• Strengthen image – Refreshing look and feel to our outlets of our employees. Upgrading of our procurement process
and simplifying processes for customer satisfaction. through demand aggregation as well as Group wide Quality
Improvement Team are yielding significant cost reductions.
Pos Malaysia also introduced the first ever Pos Automated

Number of Staff Declined in 2009 Machine (PAM), a self-service terminal capable of conducting
16,125 simple posting transactions, stamp purchases and bill
The 16th ASEAN Postal Business Meeting in Phuket in January 2010
15,780 payments as part of our commitment to improve customer
15,777
15,425 experience and convenience.
15,063 The Group will persist in offering its services to all Malaysians
In early 2010, Pos-on-Wheels was also launched, essentially a affordably, while improving efficiency and service delivery.
mobile post office offering the full range of services, to reach
out to more convenient locations and rural areas. We will go the distance to show how serious we are at
05 06 07 08 09
changing the way Pos Malaysia connects with consumers and
remain relevant always.
ACCOLADES AND AWARDS
Accolades and Awards
Mail Business POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia as the designated postal operator in Malaysia The Quality Management System (QMS) which utilises customers. The system has now been deployed at thir ty (APPU). These workshops were held in Jakar ta in May
handles traditional mail business through its strategic business “lean management” concept at our 32 MPCs, has two locations in Klang Valley and will be progressively 2009, in Ulaanbaatar, Mongolia in August 2009 and in
unit, PosMel. Datapos Sdn Bhd, a wholly owned subsidiary of been successful in simplifying the workflow, improving extended to other states. Male, Maldives in December 2009.
Pos Malaysia manages the hybrid mail business, which offers efficiency and minimising waste. It has also improved
document and data processing services. teamwork and created a “continuous improvement” Pos Malaysia participated in the trial of a new service
culture among the employees. quality monitoring system based on radio frequency
PosMel Highlights identification (RFID) technology that involves 21 postal
Mail business posted total revenue of RM562.3 million, a The National Mail and Parcel Hub (NMPH) project is administrators. Developed by the Universal Postal Union
marginal drop of 0.6% from RM566.0 million in 2008. The progressing as planned. The project aims to improve mail (UPU), the Global Monitoring System (GMS) aims to
decline in revenue against the preceding year was in line with sorting efficiency by consolidating four mail processing measure inbound service quality for letter mail delivery.
lower mail volume handled for the year, in particular the social centres in the Central region at a single facility in Shah
mail. In 2009, we handled 1.25 billion mail items, against 1.27 Alam with improved building design and workflow Leveraging on our wide network of deliver y postmen
billion items in the preceding year. Key growth areas such as with advanced systems and equipment. The project is and our effor ts to be closer to customers, we
parcel and transactional mail continue to record 25% and 1% expected to be completed by the end of 2010 and will extended the access points for customers to do simple
growth respectively. Thus far, mail remains the major revenue see higher automation level and improve quality of mail transactions such as purchase of stamps, purchase of
contributor representing 62.3% of the Group’s revenue. services to our customers. Pos Ekspres envelopes and posting of letters through
mobile postmen. Launched nationwide in April 2009,
PosMel is supported by an extensive delivery network • Focus on customers’ needs this initiative to bring our products and ser vices
comprising 32 mail processing centers (MPC), 387 delivery We continue to explore new technology in effor ts to closer to customers received encouraging response
branches, 4,482 street posting boxes, 103,198 P.O. boxes and provide customers with better and faster services. We from the public.
one international gateway at KLIA. have developed the Electronic Prepaid Mail Transaction
System which allows our bulk mail customers to prepare • Strengthening ties and quality of services
• Operational excellence posting documents and enquire about posting history via We have par ticipated in various international and
During the year, PosMel embarked on various initiatives the Internet. This integrated system also allows our bulk regional postal forums to foster closer ties and develop
to improve operational efficiency. Among others, we mailers to conduct their transactions at any of the mail business par tnerships. In 2009, we par ticipated in the
are optimising deliver y workforce and reducing costs processing centres nationwide as well as purchase any of Regional Workshop on Quality of Ser vice for Asia-Pacific
by implementing our beat recasting exercise. our products, making it easier and more convenient for Region under the New Approach to Field Suppor t for
Postal Administrations, which was organised by the
UPU with the cooperation of Asia Pacific Postal Union
POS MALAYSIA ANNUAL REPORT 2009 Mail Business
Datapos Highlights
Datapos provides total mailing solution from data processing (formatting and sor ting) to data printing, enveloping, bulk mailing
and deliver y. The establishment was a strategic move to complement the array of services that Pos Malaysia offers and
penetrate into document and data processing market.
In 2009, Datapos registered a marginal increase in revenue of 0.4% from RM14.4 million to RM14.5 million, amid intense
competition and price war. Similarly, volume has increased by 20% from 51.1 million in 2008 to 61.3 million.
As par t of our modernisation efforts, Datapos has introduced a tracing system known as Account Number Verification (ANV) for
customers to conveniently track and refer to the data processed.
Moving Forward Into 2010

Focus in coming year includes embarking on core business, in par ticular growing direct mail, parcel as well as hybrid mail
business. We will continue to foster business par tnerships with relevant organisations to expand the high growth areas. In
addition, we will continue to pursue operational excellence by streamlining the network structure and consolidating mail
processing centers in other regions within Malaysia.
Can a GPS find incomplete addresses?

A postman can. He knows his area like the back of his hand through years of delivering mail, not to mention his familiarity with
the locals. It’s experience, and that’s something no GPS has.
24 Pos Malaysia Annual Report 2009 25
Pos Malaysia Annual Report 2009
Courier Business POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia operates its courier business through its strategic • Operational excellence The scanners on web facility were deployed at post offices e-Logistics for its effor t in enhancing its ser vice
business unit, PosLaju and PSH Express Sdn Bhd. For 2009, In 2009, we embarked on a project to restructure nationwide to improve its track and trace capability. The quality and performance via the development of Pos
courier business posted a consolidated revenue of RM167.0 the existing deliver y network for the Group’s high above effort allowed the Operation Application Layer Integrated Track & Trace System (PITTIS).
million amidst a competitive and challenging environment, an value items. The Streamlining Network Structure (OAL) system to provide the latest delivery status for
increase of 2.7% against 2008 performance. (SNS Project) is on-going and is expected to fur ther items processed at post offices.
improve the operational efficiency of express and
PosLaju Highlights mail ser vices. In 2009, PosLaju opened the Batu Caves branch and
In 2009, PosLaju recorded RM165.2 million in revenue, an relocated two of its branches; PosLaju Bukit Mer tajam
increase of 3.1% from RM160.3 million in 2008, despite the Our effor ts to improve the international deliver y and PosLaju Melaka. PosLaju has appointed more
contraction in Malaysian economy. The increase in revenue network by rationalizing the international lanes authorised agents in 2009 to provide greater accessibility
was attributed to increase in demand from contract customers utilisation (EMS vs Non EMS) saw cost savings and to customers nationwide. All these expansion plans
by 4.2% and retail customers by 1.9%. In tandem with the higher profitability for some international lanes. enable PosLaju to continue having the largest network
increase in revenue, PosLaju recorded an increase in volume among any other courier company in Malaysia.
by 5.0% from 13.9 million in 2008 to 14.6 million in 2009. • Focus on customers needs
PosLaju contributes 18.5% of the total group revenue. During the year, we introduced the Electronic Shipping • Recognition of excellence
Tools (EST) to our premium customers, which handles PosLaju has won 5 industr y awards in recognition of
To date, PosLaju services are available at more than 1,217 large volume of shipments. EST provides convenience, its outstanding performance in the domestic courier
outlets, leveraging on our vast network of post offices cost and time savings to our customers. industr y. These awards include the Reader’s Digest
and Pos Mini outlets, as well as 50 PosLaju centres, 274 Trusted Brand 2009, Brandlaureate Awards 2009 for
authorised agents and 2 service centres. With more than PosLaju has also introduced SMS ser vice for customers Best Brand under courier & express ser vice categor y,
27% market share of domestic shipment, PosLaju is the to track their shipment. Now, customers can choose to and the Merit Award by International Business Review
leading domestic courier company in Malaysia. do tracking via SMS or through www.poslaju.com.my. 2009 for excellence in government deliver y ser vice.
For the first time in 2009, PosLaju has been selected

to receive Frost & Sullivan Asia Pacific Transpor tation
and Logistics Awards for Domestic Express Ser vice
Provider of the Year (Malaysia) and the MSC Malaysia
Asia Pacific ICT Awards (APICTA) as the Best in
POS MALAYSIA ANNUAL REPORT 2009 Courier Business
PSH Express Highlights Moving Forward In 2010

PSH Express, a wholly owned subsidiary of Pos Malaysia Courier industry will remain competitive in 2010 and
Berhad, provides customised door-to-door courier services to meet these challenges, Pos Malaysia will continue to
to corporate clients under the brand name of AsiaXpressTM. build on its strengths and introduce new and innovative
AsiaXpress offers corporate clients fast and reliable products to meet customers demand. Our courier business
solutions for the movement of time-sensitive documents and is also looking at establishing network relationship with
parcels to more than 220 destination countries worldwide. international courier providers to develop new business
AsiaXpress’ clientele comprises mostly government ministries oppor tunities and increase revenue streams.
and agencies, Government-Linked Companies, financial
institutions, law firms, oil and gas companies, engineering
firms and institutes of higher learning.
2009 was a challenging year for PSH Express against a backdrop

of global economic crisis. In tandem with the economic
slowdown, overall shipment volume for PSH Express fell 11%
mainly due to a dip in demand for international shipment
which was mitigated by a growth in volume of 13% from
domestic shipment. Despite a softer demand for international
shipment, PSH Express posted revenue of RM4.2 million.
“Pos Malaysia will
During the year, PSH Express focused much of its efforts continue to build on its
towards the improvement of the online shipping system
“X-Ship” to be a more user-friendly, efficient and robust
strengths and introduce
shipping tool for customers. 2009 marked another notable new and innovative
milestone for PSH Express when it was awarded the products to meet
prestigious Industry Excellence Award 2009 – Certificate of
Excellence in the Export (Services) category by the Ministry customers demand.”
of International Trade and Industry in recognition of its par
excellence performance.
Retail Business POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia’s retail service is operated by PosNiaga, one of its strategic business units. PosNiaga has the largest footprint in the PosNiaga Highlights
country, managing more than 1,000 outlets. It offers a wide variety of products and services through many channels; over-the-counter, PosNiaga registered a drop in revenue by 3.2%, from RM143.6 for PAM are from 6:00 am to 11:30 pm daily (Monday
online and its recently introduced self service terminal to accept payment. million in 2008 to RM139.0 million in 2009.This was mainly due to Sunday). In future, PAM shall be made available 24
to the completion of fuel cash rebate disbursement services hours a day, 7 days a week.
Retail Business Network Reach (as at 31.12.2009) since 14 April 2009. In addition, PosNiaga also registered a
drop in the number of transactions handled from a total
Post Offices 697 transaction of 115.2 million to 107.6 million attributed mainly
Pos Mini 352 by the reduction in utility bills and completion of fuel cash
Postal Agents 227 rebate exercise.
Stamp Vendors 5,087
Mobile Post Offices 1 • Focus on customers need
Post Offices that can handle renewal of road tax/driving license 688 True to its commitment to continuously provide
Post Offices at shopping complex 65 innovation for customers’ convenience, PosNiaga made a
Post Offices with extended services beyond 7pm 24 maiden introduction of its new payment channel, namely
Post Offices which open on Sundays/Fridays 19 the Pos Automated Machine (PAM) in November 2009.
(where Sundays/Fridays are weekend) The first PAM terminal was placed at the Kuala Lumpur
Pos Automated Machine (PAM) 1 General Post Office (KL GPO). PAM will be deployed in
stages, at twenty (20) selected locations throughout the
country in 2010.
PAM is essentially a self ser vice terminal, similar to a

bank’s ATM machine with additional postal services,
the first of its kind in Malaysia. PAM offers purchase
of stamp label, posting of Non-Standard Letter, posting
of domestic PosLaju items, posting of domestic
PosParcel and PosDaftar items, top-up for Standing
Order Deposit Account (SODA) and bills payment.
During this familiarisation stage, the operation hours
POS MALAYSIA ANNUAL REPORT 2009 Retail Business
In Januar y 2010, PosNiaga launched “Pos-on-Wheels” • Addition of new payment gateway for PosOnline
which offers range of services that is similar to a normal In 2009, Pos Malaysia via PosOnline (www.posonline.
post office. Pos-on-Wheels will be able to conduct com.my) introduced new payment gateway providers,
online transactions, such as buying and selling of namely Affin Bank, Al-Rajhi Bank and EON Bank, thus
Amanah Saham units, Jabatan Pengangkutan Jalan (JPJ’s) expanding its customer base. With the addition of
transactions and purchase of insurance, using satellite these banks, PosOnline now has a total of 8 banks for
connectivity. In 2010, PosNiaga plans to deploy more customers to have more choices for payment of bills
units of Pos-on-Wheels, to serve the rural areas. and online purchases.
During the year, PosNiaga embarked on the new Look Moving forward in 2010
& Feel initiative, creating a new image and conducive PosNiaga has to brace itself for enormous challenges;
environment for customers patronising our outlets. 2 competition with multiple service providers offering payment
outlets, KL GPO and Kuantan GPO have been renovated channels in the market, as well as fast emerging technology
according to the new Look & Feel in 2009. This will be that influence consumer’s behaviour in doing transactions.
extended to other selected outlets, in stages.
The changing landscape has led PosNiaga to transform its
business model. 2010 will see PosNiaga crafting a new retail
• Concentrate on core business via partnerships strategy in order to remain relevant in the marketplace. The
Pos Malaysia believes in smar t par tnerships to complement and grow our business. Pursuant to the approval from Bank retail strategy will focus on few areas such as streamlining and
Negara Malaysia (BNM) for Pos Malaysia to offer banking services, PosNiaga via its par tnership with RHB Bank introduced expansion of products/services and retail network structure.
the marketing of financial products at selected outlets. The services include application for ASB loan, personal loans and
credit card.
At present, we are at the tail-end of system integration test with both our par tners, RHB Bank and Maybank. Upon
completion, PosNiaga will be able to rollout other services under the Shared Banking Services, such as opening of bank
account, cash deposit, withdrawal and repayment of loans.
DIGICERT SDN BHD POS MALAYSIA ANNUAL REPORT 2009
Digicer t, the Licensed Certification Authority in Malaysia Moving forward

which issues legally binding digital certificates, is a wholly The company will look into fur ther developing and diversifying its products and services as required by its key customers.
owned subsidiary of Pos Malaysia. The enhancements on application services for customers are expected to be the company’s main focus. Digicer t is confident
that 2010 will bear a better outlook for PKI as well as other IT security products and ser vices amid fast growing electronic
Key Highlights commerce activities.
Digicer t recorded revenue of RM10.5 million, down by
58.1% from RM25.1 million in 2008 due to the completion
of the one-off project of setting up the e-filing system for
Lembaga Hasil Dalam Negeri Malaysia (LHDNM) and the
subsequent diminishing volume in e-filing by first time users
evidenced by the drop in the number of digital cer tificates
issued from 659,319 in 2008 to 508,043 in 2009. This was
par tially mitigated by Public Key Infrastructure (PKI) projects
with Ministr y of International Trade and Industry (MITI) and
Malaysian Industrial Development Authority (MIDA).
2009 saw Digicer t embarked on MyGSet PKI project for

Kastam DiRaja Malaysia (KDRM) and the third generation
e-passpor t project for Immigration Department of Malaysia
besides completion of MIDA and MITI PKI projects.
Based on the Digital Signature Act (DSA) Performance

and Compliance Audit 2009, Digicert exceeded the key
performance indicators in 5 out of 6 areas for Local &
Technical Security Policy and all 3 PKI Security & Technical
Controls as stipulated by Malaysian Communications and
Multimedia Commission (MCMC), an achievement in
operational excellence.
Group Products and Services POS MALAYSIA ANNUAL REPORT 2009
POSMEL PRODUCT AND SERVICES DATAPOS SERVICES POSLAJU PRODUCT AND SERVICES • TRACK & TRACE
• Via www.pos.com.my, www.poslaju.com.my and
• MAILING SOLUTIONS • DATA PROCESSING • NEXT DAY DELIVERY
SMS service via mobile
• Standard Mail • Database management Next working day delivery (D+1) within PosLaju
• Non-standard Mail • Software solutions coverage area.
• Parcel • SAME DAY DELIVERY
• HIGH SPEED DIGITAL LASER PRINTING
• PREMIUM MAILING SOLUTIONS • High volume digital quality printing Local Town & Cross Town Delivery for documents up to 1kg ASIAXPRESS PRODUCT AND SERVICES
• PosEkspress • Personalised (variable data printing) • PUTRAJAYA EXPRESS • INTERNATIONAL COURIER
• PosEkspress International • Simplex highlight colour
Same day delivery from/to Klang Valley to/from Putrajaya • Economy Xpress
• PosDaftar • Simplex and duplex B&W/colour
or Cyberjaya • Priority Xpress
• Bagasi Haji • Continuous and cut sheet printing
• Diplomatic Xpress
• TIME CERTAIN SERVICE DOMESTIC (TCS)
• BUSINESS MAILING SOLUTIONS • MAIL PROCESSING • Inbound Xpress
Guaranteed delivery by 10 am on the next working day
• Enveloping, barcoding & account number
• Pre-paid postage • DOMESTIC COURIER
verification (ANV) • TIME CERTAIN SERVICE SINGAPORE
• Franking
• Poly wrapping (plastic) Guaranteed delivery by 10 am on the next working day • Standard Xpress
• Periodicals
• Page mailer/seal mailer • Same Day Xpress
• PosDokumen • TIME CERTAIN SERVICE TOKYO
• Address labeling, AR register, packing, • Time Cer tain Xpress
• Corporate Mail Management Guaranteed delivery by 1 pm next working day
docket posting and reporting
• Business Reply Services • OTHERS
• Bulk Mailing • TRANSPORTATION • POSPRIORITY EXPRESS
• Special Handling Services
• Pick-up & delivery A high performance, premium delivery service to
• POST OFFICE SERVICES • Customised Logistics Solutions
international destinations.
• Private Letter Box • VALUE ADDED SERVICES • Corporate Mail Solutions
• Locked Bag Service • Data archiving & imaging • INTERNATIONAL DELIVERY (EMS)
• Window Delivery Counter • Return mail management Deliver to over 200 countries worldwide
• ADVERTISING SERVICES • OUR VALUES ADDED SERVICES

• AdMail • Pick-Up service
• Direct Mail • Packaging Services
• PosLaju Pack – Boxes, envelopes and tube
• PosLaju Insurance
POS MALAYSIA ANNUAL REPORT 2009 Group Products and Services
POSNIAGA RETAIL SERVICES
• POSTAL & EXPRESS SERVICES • PHILATELY
• PosLaju • Parcel • Stamps • Personalised Stamps
• PosDaftar • AsiaXpress - Special Issue - Corporate
• Stamps - Commemorative - Individual
• PosEkspres
(Domestic and International) - Definitive
• SODA account
• PAYMENT SERVICES - New Account Registration - Account Top-Up
• Bills Payment • Bills Payment • Public Service Network • Ticketing and Booking • Other Philatelic Products
- Electricity - JPA - MARA - Driving License Renewal - AirAsia - Firefly
- PTPTN - First Day Cover - Folder Set
- Water - Road Tax Renewal • Zakat (Tithe) Payment - Miniature Sheet - Stamp Album
- Telephone - SOCSO payment -14 states Pusat Zakat - Stamp Booklet
- Presentation Pack
- Internet • Telco Prepaid Cards/ Reload - Voters’ registration and
- Assessment change of address • Stamp Duty
- Time Kontact - Digi
- Quit Rent - Maxis - Celcom
• POSONLINE
DIGICERT PRODUCT AND SERVICES
• Bills Payment • Philately Online • Personalised Stamps Online • Services Online • AUTHENTICATION & • ENTERPRISE MANAGED • DOCUMENT SECURITY SOLUTION
- 116 Agencies - Stamp album - Corporate - Pharmacy Home Delivery DIGITAL SIGNATURE IT SECURITY SERVICES (EMITSS) • SecureCODE
- Folder set - Individual Service SOLUTIONS • Risk Assessment • ID-Trace
• PosOnline eShop
- Stamp booklet • DIGISIGN Server ID Enrich • IT Security Assurance • Optical Watermark, Transactional
- More than 500 products
- Special package • DIGISIGN ID Enhanced • Monitoring Services of critical assets Micro-print & Print Control
ranging from books,
• DIGISIGN ID Basic • IT Security Assurance Testing
consumer products, health
• DIGICERT Server based PKI • Managed Identity Management Service
supplements, accessories,
(Roaming) • Assurance Services for Data Protection
office stationaries etc
• DIGICERT Token based PKI
• FINANCIAL SERVICES • DIGICERT Wireless PKI
• Remittance • Shared Banking Services • Insurance • DIGISIGN File Manager
- Domestic Money Order - RHB Bank: Marketing - Pos Auto Plus • DIGICERT Forms Solution
- International Money Order of Financial Products - Pos Hospital Cash Income • DIGICERT PKI Toolkit
- Express Money Order (ASNB Loan, Personal Loan, - Pos Maid Protector - dc Tools
- Postal Order Credit Card) - Motor Insurance in partnership with panel insurers : - dc Signature
- Western Union - dc Tools Crypto
- Malaysian Motor Insurance Pool - Allianz General Insurance
• iVEST Client
• Unit Trust - Malaysian Assurance Alliance - ETIQA Takaful
• iVEST Server
- PNB Products - Syarikat Takaful Malaysia - ETIQA Insurance
• iVEST File
(ASN, ASB, ASM, ASW, ASD, ASG, AS1M) - Kurnia Insurance
Corporate Events POS MALAYSIA ANNUAL REPORT 2009
Collaboration with 12 March 2009 To My Friend in Gaza

23 January 2009 NSTP Gaza Fund
The project was a collaboration between Pos Malaysia, UNICEF and Wondermilk, to provide
Realising the responsibility to support the humanitarian efforts for the Palestinians, Pos Malaysia
the platform for Malaysian children in expressing their thoughts, hopes and support to the
had taken the initiative to place donation boxes in selected post offices countrywide to raise
Children of Gaza through writing. For this purpose, Pos Malaysia had created a special P.O. Box
fund for the Palestinians. At the launching ceremony, Pos Malaysia was represented by the
to receive all the letters, cards and drawings from young well-wishers throughout Malaysia.
Group Managing Director/ Chief Executive Officer YBhg Dato’ Syed Faisal Albar, while NSTP
was represented by its Chief Executive Officer, YBhg Dato’ Anthony Firdauz Bujang. Signing Ceremony between
17 March 2009 Pos Malaysia and TNT
3 February 2009 Service with a Smile Campaign
PosLaju, the courier arm of Pos Malaysia was appointed by TNT Express to extend TNT’s
The campaign was launched by YBhg Tan Sri Dato’ Seri (Dr.) Aseh Che Mat, Chairman of Pos
delivery into rural areas in Malaysia. PosLaju will perform pick-up and delivery activities for
Malaysia in Ipoh, Perak. The campaign aims to promote good customer centric culture among
TNT in Kelantan, Terengganu, Pahang and across the sea in Sabah and Sarawak. The strategic
Pos Malaysia employees in servicing the customers.
partnership is to provide products and services that offer speed and convenience for both
Commemorative Stamp in Honour of the PosLaju and TNT’s customers. The partnership also reflects TNT’s trust in PosLaju’s capability
Silver Jubilee Anniversary of His Royal Highness as the preferred courier service in Malaysia.
3 February 2009 the Sultan of Perak Darul Ridzuan
PosLaju Receives the
Pos Malaysia issued a Commemorative Stamp and First Day Cover in honour of the Silver 31 March 2009 Award of Excellence for Courier Industry
Jubilee Anniversary of the reign of Duli Yang Maha Mulia Paduka Seri Sultan Azlan Muhibbuddin
PosLaju had received the award from Brand Laureate and Readers’ Digest, and it was
Shah Ibni Almarhum Sultan Yussuf Izzuddin Shah Ghafarullahu-Lah, the Sultan of Perak Darul
presented by the former Prime Minister of Malaysia, YABhg. Tun Abdullah Hj Ahmad
Ridzuan. The Commemorative Stamp and First Day Cover was officially launched by His Royal
Badawi.
Highness the Sultan of Perak at Ipoh City Hall, Ipoh, Perak.
4 February 2009 Launch of new PosLaju Centre, Ipoh Appointment of Telco & Post
PosLaju centre in Ipoh officially moved to a new premise to ensure consistency of comfort 10 April 2009 as PosLaju Certified Agent
and convenience for customers, which are growing with time. The new centre was officiated Telco & Post Sdn Bhd had been appointed as PosLaju certified agent, where the company
by YBhg Tan Sri Dato’ Seri (Dr.) Aseh Che Mat, Chairman of Pos Malaysia. will accept shipment for PosLaju at their premises. The signing of the agreement was also
witnessed by Malaysian ex-premier, YABhg. Tun Mahathir Mohamad.
POS MALAYSIA ANNUAL REPORT 2009 Corporate Events
Bowling Friendly Match between PINTAR Motivational Camp

22 – 24 June 2009 for Adopted Schools
Pos Malaysia and Malaysia Communications
19 April 2009 and Multimedia Commission
As part of its Corporate Social Responsibility (CSR) initiatives, Pos Malaysia organised a
Pos Malaysia participated in the friendly match that included children from Rumah Kebajikan motivational camp for students in Standard 5 and Form 5 from Sekolah Kebangsaan Kuala Perai,
Anak Yatim/ Miskin Taman Baiduri, Dengkil. The event was held in Berjaya Times Square Bagan Dalam and Sekolah Menengah Kebangsaan Sungai Acheh, Nibong Tebal respectively,
and organized by the Sports and Recreational Club of Malaysian Communications and under the PINTAR programme. The Camp was held at Dusun Minda Resort, Kuala Nerang,
Multimedia Commission. Kedah.
27 June 2009 SenamSeni 1Malaysia
19 - 27 April 2009 Minggu Saham Amanah Malaysia Pos Malaysia par ticipated in the national event, SenamSeni 1Malaysia, which was organised
by the Ministry of Information, Communications and Culture at Dataran Merdeka. The
Pos Malaysia participated in the annual Minggu Saham Amanah Malaysia, organised by
activity was organised to promote a healthy and active lifestyle, besides uniting Malaysia
Permodalan Nasional Berhad from 20 – 28 April 2009 in Johor. The exhibition involved the
through dance moves which combined elements from all major ethnics in Malaysia.
Strategic Business Units of Pos Malaysia namely PosMel (mailing services), PosNiaga (retail &
counter services), PosLaju (courier services), PosLogistik (logistics services), and Asia Express
23 July 2009 PosLaju Received the Frost & Sullivan Awards
(international courier services).
Once again, PosLaju received the Frost & Sullivan Award for Domestic Express Service
26 May 2009 17th Annual General Meeting Provider of the Year 2009. The award was received by YBhg. Dato’ Syed Faisal Albar, Group
The 17th Annual General Meeting for Pos Malaysia Berhad was held at the Legend Hotel Kuala Managing Director/ Chief Executive Officer at the Award Presentation Ceremony, held at
Lumpur on 26th May 2009. the Intercontinental Hotel, Singapore.
29 July 2009 Hospital Bills Payment via Pos
3 June 2009 MOU with China Post Pos Malaysia and HUSM signed an agreement to enhance and improve the business payment
Pos Malaysia and China Post signed the MOU in enhancing and improving the business service at Pos Malaysia. Customers can now pay their hospital bills at Pos Malaysia’s counter
relationship between the two postal operators. The ceremony held in Beijing China was also and also via Pos Malaysia’s online payment service, PosOnline. Hospital Universiti Sains Malaysia
witnessed by the Prime Minister of Malaysia, YAB Dato’ Sri Mohd Najib Tun Hj Abdul Razak. Kubang Kerian is the first hospital to cooperate with Pos Malaysia to provide convenience to
the customers.
Pos Malaysia Hosts the
17 June 2009 Second Quarter of K9 HR Heads Meeting 30 July 2009 RHB Offers Maid Protection Plan via Post Office Counters
Understanding the qualms of the employers of more than 230,000 foreign maids in Malaysia,
Pos Malaysia was given the honour to host the Second Quarter of K9 HR Circle meeting, is
RHB Insurance now offers the Maid Protection Insurance Plan via post office counters. The
an event held every quarter of the year. K9 HR Circle is a group of nine Human Resources
plan provides coverage for the maids, including death, permanent disability, vicarious liability,
Heads for GLCs under the governance of Khazanah Nasional Berhad.
and repatriation benefits, up to RM30,000.
Buka Puasa with the Orphans

Appointment of Contractor to Develop the New National
10 September 2009 and Distribution of Bubur Lambuk
31 July 2009 Mail and Parcel Hub (NMPH)
Pos Malaysia continues its transformation efforts with the development of the new National Pos Malaysia continued the tradition of giving and sharing to the unfortunates. Seventy six
Mail and Parcel Hub in Shah Alam, that will soon replace the Mail Centres in Bukit Raja, orphans, mostly children of Pos Malaysia’s employees that had passed away, and also children
Bangi and Kuala Lumpur. Global Technological Support Sdn Bhd was appointed as the main from Rumah Anak Yatim Darul Taqwa and Nur Hikmah were feted at a ceremony held at
contractor for the project to ensure smooth development of the NMPH. Dewan Sri Pos, Pos Malaysia Headquarters. The Bubur Lambuk, a favourite dish in Ramadhan,
was also distributed to all employees in Pos Malaysia Headquarters.
2 August 2009 Pos Malaysia FC won FAM Cup

18 September 2009 Pos Malaysia tied-up with TIAM
Pos Malaysia Football Club which was formed in March 2008 had made its debut in the FA
A Memorandum of Understanding was signed between Pos Malaysia and Taipei Investors’
Cup. Although the first strike was not an encouraging win, the team was later recommended
Association in Malaysia (TIAM) for Pos Malaysia to provide its services to all members
to compete in the FAM Cup. The move proved to be fruitful as Pos Malaysia FC was
of TIAM. TIAM members will be promoting Pos Malaysia services and to appoint PosLaju
crowned the 2009 Champion for the FAM Cup.
as their preferred courier service. At the ceremony, Pos Malaysia was represented by its
Chairman, YBhg Tan Sri Dato’ Seri (Dr.) Aseh Che Mat, while TIAM was represented by its
National President, YBhg Datuk Dr Ting Chung Cheng.
ASEANPost RMC for IEMO

6 – 7 August 2009 and Terminal Dues Working Committee 8 October 2009 PosLaju won MSC APICTA Awards 2009
PosLaju’s Pos Integrated Track & Trace Information System (PITTIS) applications, had won the
The ASEAN Terminal Dues Working Committee Meeting and ASEAN Regional Management
MSC-APICTA Award 2009, in the Best E-Logistic category. The award was presented by the
Committee (RMC) for IEMO (International Electronic Money Order) Meetings were
Minister of Science, Technology and Innovation, YB Datuk Dr Maximus Ongkili.
successfully held on 6 – 7 August 2009 in Concorde Hotel, Kuala Lumpur. The ASEAN
Terminal Dues Working Committee Meeting was participated by 15 members from all
ASEANPOST countries except Brunei Darussalam and Myanmar.
Meanwhile, the ASEAN RMC for IEMO Meeting was attended by 13 members from 6
ASEANPOST countries and 3 coordinators namely; Cambodia, Indonesia, Lao PDR, Malaysia,
Philippines, Vietnam, La Poste and Universal Postal Union (UPU).
9 October 2009 World Postal Day

10 December 2009 Official Visit of SingPost to Pos Malaysia
Just like any other postal organisations around the world, Pos Malaysia had also celebrated
this year’s World Postal Day. This year, the national level celebration was held at Shah Alam Singapore Post visited Pos Malaysia to fur ther explore on business oppor tunities par tners
General Post Office in Selangor. It was launched by Encik Jezilee Mohamad Ramli, Group Chief in the postal industry. During the visit, a mutual agreement to embark on a collaboration
Strategy & Planning of Pos Malaysia. for Postal Transshipment was realised between the two postal operators.
20 October 2009 More Banks became PosOnline Partners
PosOnline, Pos Malaysia’s online payment service has appointed AFFIN Bank, Al-Rajhi
29 December 2009 Launching of Letter for Prime Minister Competition
Bank and EON Bank as the latest partners for its payment channel. Pos Malaysia was
represented by its Group Chief Strategy & Planning, Encik Jezilee Mohamad Ramli. A “Letter for Prime Minister Competition” for Malaysian students to voice out their
opinions and suggestions towards achieving the 1Malaysia vision. The competition, which
is opened to all Malaysian students aged 7 – 17 was co-organised by the Ministry of
Commemorative Stamp on the Coronation of the Yang Information, Communications and Culture (MICC), and the Ministry of Education (MOE),
24 October 2009 Di-Pertuan Besar Negeri Sembilan as well as RTM as the media par tner. It was launched by YAB Prime Minister, Dato’ Sri
Pos Malaysia issued a commemorative stamp in conjunction with the Coronation of the Yang Mohd Najib Tun Haji Abdul Razak during the Christmas Open House in Kota Kinabalu.
Di-Pertuan Besar of Negeri Sembilan, DYMM Tuanku Muhriz Ibni Almarhum Tuanku Munawir.
The Commemorative Stamp and First Day Cover was officially launched by His Royal Highness
the Yang Di-Pertuan Besar of Negeri Sembilan at Istana Lama Seri Menanti, Negeri Sembilan.
Signing Ceremony between

2 November 2009 Pos Malaysia and Prisons Department
A strategic par tnership was formed between Pos Malaysia and the Prisons Department
of Malaysia, to provide postal services in prison complexes nationwide. With this
collaboration, Pos Malaysia via its strategic business unit, PosNiaga will now be operating in
the complexes, and PosLaju on the other hand will become the preferred courier service
for the Prisons Department.
Pos Malaysia In the NewsPos Malaysia Annual Report 2009 49

OUR PROFILE
Corporate Information POS MALAYSIA ANNUAL REPORT 2009
BOARD OF DIRECTORS BOARD COMMITTEES

Tender Board Committee
Audit Committee Registered Office
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat
Non-Independent Non-Executive Chairman Datuk Low Seng Kuan Eshah binti Meor Suleiman Level 33, Menara Dayabumi
Dato’ Syed Faisal Albar bin Syed A.R Albar Chairman/Senior Independent Non-Executive Director Chairperson/Non-Independent Non-Executive Director Jalan Sultan Hishamuddin
Group Managing Director/Chief Executive Officer Wee Hoe Soon @ Gooi Hoe Soon Dato’ Ibrahim Mahaludin bin Puteh 50050 Kuala Lumpur
Dato’ Ibrahim Mahaludin bin Puteh Independent Non-Executive Director Independent Non-Executive Director Tel: 603-22672267
Independent Non-Executive Director Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin Puan Sri Datuk Nazariah binti Mohd Khalid Fax: 603-22672266
Datuk Low Seng Kuan Non-Independent Non-Executive Director Independent Non-Executive Director
Share Registrar
Senior Independent Non-Executive Director Abdul Hamid bin Sh Mohamed Dato’ Krishnan a/l Chinapan
Dato’ Krishnan a/l Chinapan Independent Non-Executive Director Independent Non-Executive Director Tricor Investor Services Sdn Bhd
Independent Non-Executive Director Puan Sri Datuk Nazariah binti Mohd Khalid (formerly known as Tenaga Koperat Sdn Bhd)
Puan Sri Datuk Nazariah binti Mohd Khalid Independent Non-Executive Director COMPANY SECRETARY Level 17, The Gardens Nor th Tower
Independent Non-Executive Director (Appointed w.e.f 12 March 2010) Mid Valley City, Lingkaran Syed Putra
Sabrina Albakri binti Abu Bakar (LS 8508) 59200 Kuala Lumpur
Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor Board Nomination and
Non-Independent Non-Executive Director Remuneration Committee Tel: 603-22643883
(Appointed w.e.f 21 October 2009) Puan Sri Datuk Nazariah binti Mohd Khalid Fax: 603-22821886
Wee Hoe Soon @ Gooi Hoe Soon Chairperson/Independent Non-Executive Director
Auditors
Independent Non-Executive Director Dato’ Ibrahim Mahaludin bin Puteh
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin Independent Non-Executive Director KPMG
Non-Independent Non-Executive Director Datuk Low Seng Kuan Char tered Accountants
Abdul Hamid bin Sh Mohamed Senior Independent Non-Executive Director Bankers
Independent Non-Executive Director Dato’ Krishnan a/l Chinapan
Malayan Banking Berhad
Eshah binti Meor Suleiman Independent Non-Executive Director
CIMB Bank Berhad
Non-Independent Non-Executive Director Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
HSBC Bank Malaysia Berhad
Haizan bin Mohd Khir Johari Non-Independent Non-Executive Director
Non-Independent Non-Executive Director Eshah binti Meor Suleiman Stock Exchange Listing
(Appointed w.e.f 23 February 2010) Non-Independent Non-Executive Director Main Market of Bursa Malaysia Securities Berhad
POS MALAYSIA ANNUAL REPORT 2009 Group Structure
SUBSIDIARIES
No. Name of Company Shareholder % of Shareholdings
1. Prestige Future Sdn Bhd PSH Capital Partners Sdn Bhd 100%
2. PSH Venture Capital Sdn Bhd Pos Malaysia Berhad 100%
3. PSH Merchandise Sdn Bhd Pos Malaysia Berhad 100%
4. PSH Express Sdn Bhd PSH Venture Capital Sdn Bhd 100%
5. PSH Capital Partners Sdn Bhd Pos Malaysia Berhad 100%
6. PSH Allied Berhad Pos Malaysia Berhad 100%
7. PSH Management Sdn Bhd Pos Malaysia Berhad 100%
8. PSH Properties Sdn Bhd Pos Malaysia Berhad 100%
9. Effivation Sdn Bhd PSH Properties Sdn Bhd 100%
10. Real Riviera Sdn Bhd PSH Properties Sdn Bhd 100%
11. Datapos (M) Sdn Bhd Pos Malaysia Berhad 100%
12. Pos Takaful Agency Sdn Bhd Pos Malaysia Berhad 100%
13. Virtual Pos Sdn Bhd Pos Malaysia Berhad 100%
14. Pos Logistics-Fulserve Sdn Bhd Pos Malaysia Berhad 100%
15. Philately Pos Malaysia Sdn Bhd Pos Malaysia Berhad 100%
16. PMB Properties Sdn Bhd Pos Malaysia Berhad 100%
17. Digicert Sdn Bhd Pos Malaysia Berhad 100%
18. Pos Malaysia & Services Holdings Berhad Pos Malaysia Berhad 100%
19. Poslaju (M) Sdn Bhd Pos Malaysia Berhad 100%
20. PSH Investment Holding (BVI) Ltd Pos Malaysia & Services Holdings Berhad 100%
ASSOCIATES
No. Name of Company Shareholder % of Shareholdings
1. CEN Sdn Bhd Pos Malaysia Berhad
Transmile Group Berhad
42.5%
57.5%
BOARD OF DIRECTORS
2. Pospay Exchange Sdn Bhd Pos Malaysia Berhad 50%
Royal Mint Exchange 50%
3. Elpos Print Sdn Bhd Econlink Sdn Bhd 60%
Pos Malaysia Berhad 40%
4. CEN Worldwide Sdn Bhd CEN Sdn Bhd 100%
5. CEN Technology Sdn Bhd CEN Sdn Bhd 50%
Chay Wai Lan 50%
Board of Directors POS MALAYSIA ANNUAL REPORT 2009
Tan Sri Dato’ Seri (Dr.) Aseh, 58, a Malaysian, was appointed to Dato’ Syed Faisal Albar, 44, a Malaysian, was appointed to the
the Board on 15 July 2008 as Non-Independent Non-Executive Board on 1 November 2008 as the Group Managing Director/
Chairman. Tan Sri Aseh obtained his Bachelor of Economics Chief Executive Officer of the Company.
(Honours) degree from the University of Malaya in 1974 and
obtained his Masters in Public Administration degree from the Dato’ Syed Faisal is a member of the Malaysian Institute of
University of Southern California, USA in 1984. In year 2007, he Cer tified Public Accountants (MICPA) and a member of the
received his PhD (Honorary) in International Relations from the American Institute of Cer tified Public Accountants (AICPA).
Limkokwing University of Creative Technology, Cyberjaya.
He star ted his career with Pricewaterhouse (now
Upon his graduation in 1974, Tan Sri Aseh joined the Ministry of PricewaterhouseCoopers) Kuala Lumpur in 1991. He ser ved with
Finance as Assistant Secretary. Prior to his retirement in October Pricewaterhouse, San Francisco, California, USA in 1995 before
2007 as Secretary General of the Ministry of Home Affairs, he held returning to Kuala Lumpur in 1997. Dato’ Syed Faisal joined
various positions in the civil service, ranging from Principal Assistant The New Straits Times Press (Malaysia) Berhad (NSTP) in May
Secretary in the Education Services Commission, serving Sarawak 2000 as Financial Controller and was appointed Chief Executive
and Sabah for 7 years from 1977 to 1981, and other various Officer/ Executive Director of NSTP in 2003; a position which he
positions in the Ministry of Home Affairs before being appointed held until October 2008.
Deputy Director-General of Immigration Malaysia and thereafter,
Director-General of Immigration Malaysia. Dato’ Syed Faisal does not have any family relationship with any
director and/or substantial shareholder of the Company or any
Tan Sri Aseh is active in community services and is currently the conflict of interest with the Company. He has not been convicted
Chairman of RELA Cooperative, Chairman of FAM Monitoring of any offence within the past 10 years.
Committee, President of Rifle Association Malaysia, President of
Tiara Golf & Country Club, Melaka, Advisor of PAPITA (Singer Dato’ Syed Faisal attended all eight (8) Board meetings held
Association of Malaysia) and Chairman of Limkokwing University of during the financial year under review.
Creative Technology since June 2009. Tan Sri Aseh was also active in
the Administrative and Diplomatic Service (ADS) and was its longest
serving President from 2001 to 2008. Prior to his appointment as
President, he was an EXCO member and thereafter made Vice
President of the ADS. Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat Dato’ Syed Faisal Albar bin Syed A.R Albar
Non-Independent Non-Executive Chairman Group Managing Director/ Chief Executive Officer
Tan Sri Aseh does not have any family relationship with any director
and/or substantial shareholder of the Company or any conflict of
interest with the Company. He has not been convicted of any Par ticulars of other directorships in public companies:
offence within the past 10 years. * MWE Holdings Berhad (Chairman)
* Stemlife Berhad (Chairman)
Tan Sri Aseh attended seven (7) out of eight (8) Board meetings * Lion Diversified Holdings Berhad
held during the financial year under review.
POS MALAYSIA ANNUAL REPORT 2009 Board of Directors
Datuk Low Seng Kuan, 63, a Malaysian, was appointed Director of Dato’ Krishnan a/l Chinapan, 63, a Malaysian, was appointed
the Company on 1 July 1992. He was re-designated as Independent Director of the Company on 1 July 1992. He was re-designated
Non-Executive Director and simultaneously appointed Senior as Independent Non-Executive Director of the Company with
Independent Director with effect from 21 August 2007. Datuk Low effect from 21 August 2007. Dato’ Krishnan is a member of the
is the Chairman of the Audit Committee and a member of the Board Nomination and Remuneration Committee and the Tender
Board Nomination and Remuneration Committee. Board Committee.
Datuk Low is a Char tered Accountant by profession and is a member Dato’ Krishnan is currently a Director of National Land Finance
of the Malaysian Institute of Accountants and has more than 30 Co-Operative Society Limited, Nalfin Realities Sdn Bhd and
years of experience in the manufacturing industry. He graduated Apollo Medical Centre TTDI. Dato’ Krishnan was a Senator in the
from the Footscray Institute of Technology (Victoria University) in Parliament from 1986 to 1992.
Business Studies (Accountancy) and the Royal Melbourne Institute
of Technology (RMIT) in Industrial Accountancy. Dato’ Krishnan does not have any family relationship with any
Datuk Low was the Managing Director of Malaysian Sheet Glass Sdn conflict of interest with the Company. He has not been convicted
Bhd until 31 March 2010. He also serves on the Board of a number of any offence within the past 10 years.
of private and government-linked corporations. He is the former
President of the Federation of Malaysian Manufacturers (FMM) and Dato’ Krishnan attended seven (7) out of eight (8) Board meetings
is currently the Vice-President of FMM. Datuk Low had served as a held during the financial year under review.
Board member of the Malaysian Industrial Development Authority
(MIDA) and Malaysian Institute of Economic Research (MIER). He is
currently the President of Transparency International Malaysia.
Datuk Low does not have any family relationship with any director
interest with the Company. He has not been convicted of any
offence within the past 10 years.
Datuk Low attended seven (7) out of eight (8) Board meetings
held during the financial year under review.
Par ticulars of other directorships in public companies: Datuk Low Seng Kuan Dato’ Krishnan a/l Chinapan
* Sunway Holdings Incorporated Berhad Senior Independent Non-Executive Director Independent Non-Executive Director
* Logos Institute Berhad
* Be in Health Berhad
Puan Sri Datuk Nazariah binti Mohd Khalid, 60, a Malaysian, was Dato’ Ibrahim Mahaludin bin Puteh, 58, a Malaysian, was appointed
appointed to the Board on 13 August 2007 as an Independent to the Board on 22 August 2007 as a Non-Independent Non-
Non-Executive Director. She is the Chairperson of the Board Executive Director. On 25 Februar y 2009, he was re-designated as
Nomination and Remuneration Committee and a member of the Independent Non-Executive Director. Dato’ Ibrahim is a member
Tender Board Committee. On 12 March 2010, Puan Sri Datuk of the Board Nomination and Remuneration Committee and
Nazariah was appointed member of the Audit Committee. Tender Board Committee.
Puan Sri Datuk Nazariah graduated with a Bachelor of Arts (Honours) Dato’ Ibrahim holds a Bachelor of Ar ts (Honours) degree from
degree from the University of Tasmania, Australia and holds a Master the University of Malaya and a Master of Business Administration
of Business Administration degree from Michigan State University, degree from the Manchester Business School, University of
USA. She joined the Malaysian Civil Service in 1972 and served in Manchester, United Kingdom.
various capacities prior to her last post as the Director General
of the Malaysian Administrative Modernisation and Management Dato’ Ibrahim is currently the Chairman of Indah Water Konsor tium
Planning Unit (MAMPU) in the Prime Minister’s Department. Sdn Bhd, a position which he held since 1 September 2009 and
Chairman of Computer Forms (Malaysia) Berhad since 1 December
Puan Sri Datuk Nazariah does not have any family relationship with 2008. He is the former Chairman of Syarikat Prasarana Negara
any director and/or substantial shareholder of the Company or any Berhad. Prior to that, Dato’ Ibrahim had ser ved in various divisions
conflict of interest with the Company. She has not been convicted at the Ministr y of Finance since 1974 including as Senior Adviser
of any offence within the past 10 years. to the Executive Director for South East Asia at the World Bank
Group in Washington D.C. His last post prior to his retirement
Puan Sri Datuk Nazariah attended all eight (8) Board meetings from the Ministr y of Finance in 2008 was the Deputy Secretar y
held during the financial year under review. General (Policy) in the Ministr y of Finance.
Dato’ Ibrahim does not have any family relationship with any
conflict of interest with the Company. He has not been convicted
of any offence within the past 10 years.
Dato’ Ibrahim attended all eight (8) Board meetings held during
the financial year under review.
Puan Sri Datuk Nazariah binti Mohd Khalid Par ticulars of other directorships in public companies: Dato’ Ibrahim Mahaludin bin Puteh
Independent Non-Executive Director *Computer Forms (Malaysia) Berhad (Chairman) Independent Non-Executive Director
Mr Wee Hoe Soon @ Gooi Hoe Soon, 49, a Malaysian, was appointed Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin, 51, a
to the Board on 13 August 2007 as an Independent Non-Executive Malaysian, was appointed to the Board on 13 August 2007 as a
Director. He is a member of the Audit Committee. Non-Independent Non-Executive Director. Tunku Dato’ Mahmood
Fawzy is a member of the Audit Committee and Board Nomination
Mr Gooi is a member of the Malaysian Institute of Cer tified Public and Remuneration Committee.
Accountants and the Malaysian Institute of Accountants. He has
more than 25 years of experience in the fields of accounting and Tunku Dato’ Mahmood Fawzy holds a Bachelor of Ar ts (Honours)
corporate finance and was Finance Director of several private and degree in Business Studies from the Polytechnic of Central London,
public listed companies. a Master of Business Administration degree from the Warwick
University and a Diploma in Marketing from the Char tered
He had been instrumental in the successful implementation Institute of Marketing. He is also a member of the Malaysian
of several corporate exercises, which included mergers and Institute of Management. He has worked in the United Kingdom,
acquisitions and corporate debt restructuring exercises under taken New Zealand, South Africa and Malaysia in a variety of senior
by public listed companies. management positions that span 22 years.
In 1999, Mr Gooi was appointed to the Board of Avenue Capital Tunku Dato’ Mahmood Fawzy does not have any family relationship
Resources Berhad as a Non-Executive Director and subsequently with any director and/or substantial shareholder of the Company
appointed as Group Managing Director in 2001 and Deputy or any conflict of interest with the Company. He has not been
Chairman in 2004; holding this last post until 2006. He was also the convicted of any offence within the past 10 years.
CEO/Executive Director (Dealing) of Avenue Securities Sdn Bhd.
Tunku Dato’ Mahmood Fawzy attended seven (7) out of eight (8)
Mr Gooi does not have any family relationship with any director Board meetings held during the financial year under review.
interest with the Company. He has not been convicted of any Par ticulars of other directorships in public companies:
offence within the past 10 years. * Telekom Malaysia Berhad
Mr Gooi attended all eight (8) Board meetings held during the
financial year under review.
Par ticulars of other directorships in public companies:

* Hup Seng Industries Berhad
* Winsun Technologies Berhad Wee Hoe Soon @ Gooi Hoe Soon Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
* Kobay Technology Berhad Independent Non-Executive Director Non-Independent Non-Executive Director
* EON Bank Berhad
* MIMB Investment Bank Bhd
* EON Capital Bhd
Encik Abdul Hamid bin Sh. Mohamed, 44, a Malaysian, was appointed Puan Eshah binti Meor Suleiman, 55, a Malaysian, was appointed
to the Board on 13 August 2007 as an Independent Non-Executive to the Board on 25 Februar y 2009 as Non-Independent Non-
Director. He is a member of the Audit Committee. Executive Director. She is the Chairperson of the Tender
Board Committee and member of the Board Nomination and
Encik Abdul Hamid is currently the Executive Director of Remuneration Committee.
Symphony House Berhad. Immediately preceding his appointment
at Symphony, he was the Chief Financial Officer of the Kuala Puan Eshah obtained her Bachelor of Economics (Honours)
Lumpur Stock Exchange (KLSE), now known as Bursa Malaysia degree from the University of Malaya in 1980 and obtained her
Berhad. He joined KLSE in 1998 as Senior Vice President, in charge Master in Business Administration (Finance) from the Oklahoma
of the Strategic Planning & International Affairs Division and was City University, U.S.A in 1994.
promoted to Deputy President (Strategy and Development) in
2002. He was re-designated to Chief Financial Officer in 2003. She star ted her career in 1981 as Assistant Director (Macro
During his five years with the KLSE Group, he held diversed Economic Section) Economic Planning Unit of the Prime
roles and had experience in strategy, corporate finance, business Minister’s Depar tment before ser ving as Assistant Secretar y at
transformation, finance and administration, treasury, external affairs the Government Procurement Division, Ministr y of Finance in
and public relations. He led KLSE’s acquisitions of KLOFFE and middle of 1991. Puan Eshah later held various positions in the
COMMEX and their merger to form MDEX, and the acquisition of Government Ministries. In September 2006, she was promoted to
MESDAQ. He also led KLSE’s demutualisation exercise. her current position as Under Secretar y of Investment, Minister of
Finance (Incorporated) and Privatisation Division of the Ministr y
Encik Abdul Hamid star ted his career in the accounting firm Messrs of Finance Malaysia.
Lim Ali & Co. / Ar thur Young, before moving on to merchant
banking with Bumiputra Merchant Bankers Berhad. He later moved Puan Eshah does not have any family relationship with any director
on to the Amanah Capital Malaysia Berhad Group, an investment and/or substantial shareholder of the Company or any conflict of
banking and finance group, where he led the corporate planning interest with the Company. She has not been convicted of any
and finance functions until 1998 when he joined the KLSE. offence within the past 10 years.
Encik Abdul Hamid does not have any family relationship with any Puan Eshah attended six (6) out of eight (8) Board meetings held
director and/or substantial shareholder of the Company or any during the financial year under review.
conflict of interest with the Company. He has not been convicted
of any offence within the past 10 years. Par ticulars of other directorships in public companies:
* Global Maritime Ventures Berhad
Encik Abdul Hamid attended all eight (8) Board meetings held during Abdul Hamid bin Sh Mohamed *Telekom Malaysia Berhad (Alternate Director) Eshah binti Meor Suleiman
the financial year under review. Independent Non-Executive Director Non-Independent Non-Executive Director
Par ticulars of other directorships in public companies:

* Symphony House Berhad
* Har talega Holdings Berhad
* SILK Holdings Berhad (formerly known as Sunway Infrastructure Bhd)
* MMC Corporation Berhad
* Scomi Engineering Berhad
Tan Sri Dato’ Ir. Muhammad Radzi bin Haji Mansor, 68, a Malaysian, Encik Haizan bin Mohd Khir Johari, 39, a Malaysian, was appointed
was appointed to the Board on 21 October 2009 as a Non- to the Board on 23 Februar y 2010 as a Non-Independent Non-
Independent Non-Executive Director. Executive Director.
Tan Sri Radzi graduated with a Diploma in Electrical Engineering Encik Haizan graduated with a Bachelor of Business Administration
from Faraday House Engineering College, London in 1962, and a majoring in Finance from the University of Hawaii at Manoa in
Master in Science (Technological Economics) from the University 1992. He star ted in the investments-related field as a trainee at the
of Stirling, Scotland in 1975. A Char tered Professional Engineer Por tfolio Management division of Arab Malaysian Merchant Bank
registered with the Board of Engineers Malaysia and Engineering in December 1992. Subsequently, he became an equity research
Council United Kingdom, he is a corporate member of the analyst at several domestic and international financial institutions
Institution of Engineers Malaysia, the Institution of Engineering including Schroders, Phileo Allied and Credit Suisse First Boston from
and Technology United Kingdom and the Char tered Management 1994 to 2003, with coverage in sectors such as telecommunications,
Institute United Kingdom. automotive, oil and gas, and other primary industries.
Tan Sri Radzi was Chairman and Director of Telekom Malaysia In November 2003, Encik Haizan was appointed Special Officer
Berhad (TM) from 12 July 1999 to 30 July 2009. Prior to that, he to the Fifth Prime Minister of Malaysia and ser ved as par t of the
had served in various engineering and management capacities in Policy Unit of the Prime Minister’s Office. He joined Khazanah
the former Jabatan Telekom Malaysia (JTM) over a period of 22 Nasional Berhad in September 2006, and is currently Senior Vice
years, including a three-year secondment as Technical Adviser to President, Investments.
the Ministry of Energy, Telecommunications and Post. Tan Sri Radzi
retired as Director-General of Telecommunications upon JTM’s Encik Haizan does not have any family relationship with any
corporatization on 1 January 1987, and was subsequently appointed director and/or substantial shareholder of the Company or any
Director of Operations at TM. He served as Director of Marketing conflict of interest with the Company. He has not been convicted
and Customer Services from 1989 to 1995 and later as Director of any offence within the past 10 years.
of Regulatory Management and External Affairs before retiring in
July 1996. From 1997 to 1999, Tan Sri Radzi was retained as a
Consultant/Advisor on multimedia flagship application projects for
the Multimedia Development Corporation Sdn Bhd and currently,
he is a member of its Board of Directors.
Tan Sri Radzi does not have any family relationship with any
director and/or substantial shareholder of the Company or any Tan Sri Dato’ Ir. Muhammad Radzi bin Haji Mansor Haizan bin Mohd Khir Johari
conflict of interest with the Company. He has not been convicted Non-Independent Non-Executive Director Non-Independent Non-Executive Director
of any offence within the past 10 years.
Tan Sri Radzi attended all three (3) Board meetings held subsequent Par ticulars of other directorships in public companies:
to his appointment as Non-Independent Non-Executive Director * Kumpulan Fima Berhad (Chairman)
of the Company during the financial year under review.
Leadership Team POS MALAYSIA ANNUAL REPORT 2009
Dato’ Syed Faisal Albar Jezilee Mohamad Ramli Idham Ismail Haji Nadza Abdul Bahaman Kamaruzzaman Dato’ Mearia Hamzah
Group Managing Director/Chief Executive Officer Strategy & Planning CEO’s Office PosLaju PosMel PosNiaga
Mohd Lutfi Mat Lazim Mohd Rosdeen Hassan Pat Wahid Dato’ Mohd Derus Harun Sabrina Albakri Abu Bakar Dato’ Rohaiza Hashim
Group Finance Information, Communication & Technology Group Marketing Transport Management Legal and Secretarial Corporate Communications
POS MALAYSIA ANNUAL REPORT 2009 Leadership Team
Haji Ithnin Talib Aziz Manas Chum Choy Han Dato’ Noor Azli Othman Raja Nur Izah Raja Jafaar Mohd Ripin Kusnan
Security & Investigation Internal Audit International & Regulatory Affairs Digicert (M) Sdn Bhd PSH Express Sdn Bhd Datapos (M) Sdn Bhd
Dato’ Shahri Jikun Nuranisah Mohd Anis Balqais Yusoff Mohd Rizal Hamzah Salamah Samsudin
Group Property & Corporate Insurance Corporate Risk Management Corporate Planning & Strategic Business Group Procurement Call Center
OUR COMMITMENTS
Corporate Social Responsibility Statement POS MALAYSIA ANNUAL REPORT 2009
Corporate Social Responsibility

Pos Malaysia aspires to become a socially responsible Pos Malaysia, in collaboration with UNICEF had created ‘To
corporate citizen. Although 2009 was a challenging year due My Friends In Gaza’ project, where thousands of letters,
to sluggish economic condition, Pos Malaysia believes in giving cards, and drawings were received from young Malaysians,
back to the community. Pos Malaysia constantly strives to be dedicated especially to the children of Gaza. It was our
a caring corporate citizen by supporting nation building and responsibility to reach out and convey messages of hopes,
community services. prayers and well-wishes of Malaysian children to the
Palestinian children.
Balance between commercial objectives
and being socially responsible In addition, Pos Malaysia continued the tradition of giving and
Pos Malaysia is not only seen as a postal operator in Malaysia. sharing to the unfortunates, in particular orphans and old folks
We enable efficient flow of goods and services, information through ‘Buka Puasa’ events and celebrating Hari Raya.
and funds. We value the trust that the people have in us,
although we have to subsidize the cost of our services. Incessantly Nurturing Excellence in Education
Our existence benefits more than 15,700 employees, 1,400 In 2009, Pos Malaysia continued to support its adopted
vendors and other stakeholders. We endeavor to become a schools under the PINTAR Programme. Students from
viable entity and give positive impact to our stakeholders. Sekolah Menengah Kebangsaan Sungai Acheh, Nibong Tebal
and Sekolah Kebangsaan Kuala Perai, Bagan Dalam, Pulau
Borderless humanitarian contribution Pinang were sent to motivational camps to guide them in
2009 had witnessed the struggle of the Palestinians when their preparations for SPM and UPSR.
their homes were destroyed and basic supplies were being
thwar ted by the Israel’s regime. A call for humanitarian act
was answered by Pos Malaysia, in support of the NSTP Gaza
Fund. Donation boxes were placed at selected post offices
to raise fund. The campaign managed to collect RM253,191
for Gaza Fund.
Corporate Governance Statement POS MALAYSIA ANNUAL REPORT 2009
Pos Malaysia Berhad (“Pos Malaysia” or “the Company”), Board Effectiveness Assessment (“BEA”) A. Board of Directors Under the Pos Malaysia Board Policy Manual, the Board
a Government-linked Company (“GLC”), its Board of directs and oversees the management of the business and
During the financial year ended 31 December 2009, a set Principal Responsibilities of the Board affairs of the Group including the following:-
Directors (“Board”) and Management remain committed of findings following the conduct of the Board Effectiveness
to upholding and continuously improving good corporate The Board, which is appointed by the shareholders, is entrusted
Assessment for year 2008 (“2008 BEA”) had been analysed i. Ensure that the Group’s objectives are clearly established
governance practices throughout the Pos Malaysia Group with dealing and controlling the Group and overseeing the
and discussed. Proposed action plans were thereafter and that a strategic plan is in place to achieve those
of Companies (“Group”) for the protection of and greater business of the Group, which includes optimising long-term
developed by Management to address gaps that had been objectives;
creation of shareholders’ and other stakeholders’ value and for financial returns and shareholders’ wealth creation.
identified to improve the Board’s effectiveness and efficiency. ii. Establish policies for strengthening the performance
maintaining integrity, trust and confidence in the Company.
of the Group including ensuring that the Management
As a fundamental par t of discharging the Board’s responsibilities
The Board Nomination and Remuneration Committee is proactively seeking to build the business through
The foundation for good governance lies in having an effective in order to protect and enhance stakeholders’ value and
(“BNRC”) is tasked with conducting assessments of the innovation, initiative, technology, new products and the
Board in place. The Board realises that to be effective, the financial performance of the Group, the Board of Directors
Board effectiveness and once the action plans have been development of business capital;
Board and its members must progress to be continuously continuously acts to improve and refine management
completed by Management, they will be tabled to the Board iii. Adopt performance measures to monitor implementation
performing rather than just conforming. The Board subscribes practices and systems and ensures that the Group has strong
for endorsement and implementation. At the end of year and performance of the objectives, strategies, action
to the belief that improving the effectiveness of the Board to internal controls and processes in place to implement the
2010, a follow-up assessment on the action plans implemented plans, and policies;
best practice standards is a continuous journey. principles and concepts of good governance.
will be carried out. This is in line with the recommendation
iv. Oversee the conduct of the Group’s business to evaluate
under the Green Book.
The duties, responsibilities, powers and functions of the whether the business is being properly managed;
As a GLC in Malaysia, Pos Malaysia has, apart from abiding by
the principles and best practices as set out in the Malaysian Board are governed by the Ar ticles of Association of the v. Ensure that the Group has appropriate business and
Apart from the initiative to enhance the Board’s effectiveness
Code on Corporate Governance (“the Code”) and the Company (“Company Articles”), the Companies Act 1965 enterprise-wide risk management processes, including an
in the financial year under review, the Board received updates
Corporate Governance Guide issued by Bursa Malaysia and Companies (Amendment) Act 2007 (collectively the adequate control environment based on internal control
on a quarterly basis covering the improvement initiatives
Berhad, subscribed to most of the guidelines introduced by “Companies Act”), the Main Market Listing Requirements systems, management information systems and systems for
undertaken by the Company pursuant to other guidelines
the Putrajaya Committee on GLC High Performance (“PCG”) of Bursa Malaysia Securities Berhad and other relevant laws, compliance with applicable laws, rules and regulations;
and best practices launched by the PCG under the GLC
in enhancing Board Effectiveness. These guidelines as codified rules, and regulatory guidelines that are in force. The Board is vi. Appoint Board Committees to address specific issues,
Transformation Programme.
in the Green Book reinforce the recommendations contained also governed by its Pos Malaysia Board Policy Manual, which consider recommendations of the Board Committees
in the Code. assists Board members to better appreciate their roles and and discuss problems and reservations arising from the
The Board is now pleased to report to the shareholders in
responsibilities. With an appropriate understanding of its role, Committees’ deliberations;
greater detail on the manner by which the Group has applied
the Board is better equipped to meet its responsibilities in
the principles of the Code and the extent of compliance with
ensuring that the long-term objectives of the Group are met.
the best practice provisions of the Code.
POS MALAYSIA ANNUAL REPORT 2009 Corporate Governance Statement
vii. Ensure that the statutory accounts of the Group are Independent Directors, the Company has exceeded the The GMD/CEO manages the overall business and oversees 2007 pursuant to the restructuring of the Pos Malaysia
fairly stated and conform with the relevant regulations compliance level set under the Bursa Securities Listing the day-to-day operations of the Group and is accountable Group. Datuk Low is also the Company’s Audit Committee
including acceptable accounting policies; Requirements, which requires one-third of the Board to be to the Board for the overall organisation, management and Chairman. The Senior Independent Non-Executive Director
viii. Ensure that there is in place an appropriate succession Independent Directors. staffing of the Group and for its procedures in financial represents the interest of minority shareholders and the
planning mechanism for members of the Board and for and operational matters, including conduct and discipline. general public by exercising independent judgement as well
Senior Management positions; The Board is of the opinion that the current size and The authority limits of the GMD/CEO are enshrined in the as promoting good governance practices within the Company
ix. Ensure that the Group adheres to high standards of composition of the Board is well balanced and the Board is Company’s Discretionary Authority Limits duly approved by and the Board.
ethics and corporate behaviour including transparency able to properly discharge its responsibilities in an effective the Board.
in the conduct of business; manner. The Board members’ varied skills and breadth
of experience are relevant and important for effective The six (6) Independent Non-Executive Directors of the
x. Ensure that there is in place an appropriate public
management of the Group’s business. Details of the Board Company are independent from Management and are able
relations and communications programme, as well as an
members’ skills and experience are outlined in the Profile of to exercise independent judgement and provide positive
investor relations programme; and
Directors contained in this Annual Report. par ticipation in all the Board’s deliberations. They also play
xi. Ensure there is a Schedule of Matters reserved for a pivotal role in the provision of unbiased and independent
collective decision of the Board. views, advice and judgement as well as safeguard the
There is a clear separation of responsibilities between the
The Schedule of Matters reserved for collective decision Chairman and the GMD/CEO and a balance of power is interests of other par ties such as minority shareholders and
of the Board is enshrined in the Company’s Discretionary maintained in the Company so that no one individual has other stakeholders. Khazanah Nasional Berhad, the largest
Authority Limits document, which comprises the overall unfettered powers of decision. shareholder of the Company has nominated Tunku Dato’
internal authority limits applicable to the Company and its Mahmood Fawzy bin Tunku Muhiyiddin and Encik Haizan
principal officers. The Chairman of the Board is responsible for representing bin Mohd Khir Johari as its nominees on the Board while
the Board to shareholders. The Chairman is responsible for Puan Eshah binti Meor Suleiman and YBhg Tan Sri Dato’
ensuring integrity and effectiveness of the governance process Ir Muhammad Radzi bin Haji Mansor are the appointed
Board Balance and of the Board and will consult the Board promptly over any representatives of the Minister of Finance (Incorporated).
Composition of the Board matter that gives him cause for concern.The Chairman will act
The Company Articles stipulate that the Board shall not as facilitator at meetings of the Board to ensure that no Board Datuk Low Seng Kuan is the Company’s Senior Independent
comprise less than two (2) nor more than twelve (12) member, whether executive or non-executive, dominates Non-Executive Director to whom concerns may be conveyed
members. The Board currently consists of twelve (12) the discussion. The Chairman also ensures that appropriate by shareholders and/or members of the public. Datuk Low
members, comprising a Non-Independent Non-Executive discussions take place and that relevant opinions among has been a Director of the Company since 1 July 1992
Chairman, a Group Managing Director/Chief Executive Board members are forthcoming. The Chairman fur ther and he was re-designated as the Company’s Independent
Officer (“GMD/CEO”), four (4) Non-Independent Non- ensures that discussions result in logical and understandable Director and simultaneously appointed the Company’s
Executive Directors and six (6) Independent Non-Executive outcomes, which will lead to appropriate and considered Senior Independent Director with effect from 21 August
Directors. With half of the Board members comprising decisions by the Board.
Board Meetings and A schedule for Board Meetings and Board Committee for consideration including issues on risk management, other
meetings for the whole financial year is prepared in advance options for consideration, disclosure of interest of a Director
Supply of Information to the Board and tabled to the Board in the month of January every year or a major shareholder (if applicable), recommendations
During the financial year ended 31 December 2009, eight (8) Board meetings were held and the attendance of the Board members for approval of the Board. Generally, the Board is scheduled from Management and action sought from the Board.
was as follows:- to meet once a month with additional meetings convened as During meetings, Management and/or advisors (as and when
and when deemed necessary. necessary) make presentations on the papers tabled to the
Directors No. of meetings atended Percentage
Board to facilitate the Board in its decision-making.
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat 7 out of 8 88 % For each Board and Board Committee meeting, the meeting
agenda together with the relevant papers and suppor ting
Dato’ Syed Faisal Albar bin Syed A.R Albar 8 out of 8 100 % documents relating to the agenda items are circulated to
Board members and/or Board Committee members at least
Datuk Abu Huraira bin Abu Yazid (Resigned w.e.f. 1 Aug 2009) 4 out of 4 100 % five (5) days before each meeting while Management strives
to improve circulation of Board papers to seven (7) days
Dato’ Ibrahim Mahaludin bin Puteh 8 out of 8 100 %
before each meeting. The Board papers are issued in advance
Datuk Low Seng Kuan 7 out of 8 88 % to enable the Directors to obtain fur ther information, where
necessary, in order to be properly briefed and informed
Dato’ C. Krishnan 7 out of 8 88 % before the meetings.
Puan Sri Datuk Nazariah binti Mohd Khalid 8 out of 8 100 % All Board decisions are clearly recorded in the minutes,
including the rationale for each decision, along with clear
Wee Hoe Soon @ Gooi Hoe Soon 8 out of 8 100 % actions to be taken by responsible par ties. Relevant Board
decisions are communicated to Management verbally within
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin 7 out of 8 88 %
one (1) working day of the Board meeting and relevant
Abdul Hamid bin Sh Mohamed 8 out of 8 100 % extracts of the minutes are distributed to Management within
three (3) working days after the Board meeting.
Eshah binti Meor Suleiman (Appointed w.e.f. 25 February 2009) 6 out of 6 100 %
Board papers are prepared based on a standard format to
Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor 3 out of 3 100 % ensure consistency in the presentation of facts and to fur ther
(Appointed w.e.f. 21 October 2009)
ensure all necessary information is provided to the Board.
Each Board paper for approval contains comprehensive
information on the objective of the paper, background
information, financial effects of the proposal made, issues
The quality of information received by the Board has a direct Appointment of Board Members reviewing the composition and effectiveness of the Board Directors’ Training
impact on the quality of decisions made by the Board. The and the contributions of each individual Director including The Board recognizes the impor tance of training as a
As Pos Malaysia is a GLC, the Minister of Finance (Incorporated),
Board has, therefore adopted a rating process for papers the Appointed Directors, on an annual basis. continuous education process for the Directors in order
which is a body corporate established under the Minister of
and presentations by Management at each Board meeting to ensure that the Directors stay abreast with the latest
Finance (Incorporated) Act 1957 (Amended 1989) (“Special
whereby the Board members provide constructive feedback The BNRC is also tasked with reviewing the performance developments and changes in laws and regulations, business
Shareholder”), holds one (1) Special Rights Redeemable
on the quality of information and analysis received in the evaluation of the GMD/CEO and Chief Level Officers environment and challenges and to equip them with the
Preference Share (“Special Share”) in the Company. Under
Board papers tabled and presentations made through of the Company which comprise the Chief Operating necessary knowledge and know how to enable the Directors to
the Company Articles, the Special Shareholder has the
the completion of a Board Paper Evaluation Form by the Officers, Group Chief Strategy and Planning and the Chief fulfill their responsibilities and effectively discharge their duties.
right from time to time to appoint up to six (6) persons as
Board members at the end of each Board Meeting. This Financial Officer. The BNRC also ensures that the level and
Directors of the Company (“Appointed Director”) including
process has helped Management to continuously improve composition of remuneration are structured so as to link As an integral element of the process of recruiting new Board
appointment of the Chairman of the Board and the Group
the quality of Board papers. The Directors have access to rewards with corporate and individual performance. members, new Directors will undergo appropriate orientation
Managing Director/Chief Executive Officer.
all information within the Group to the extent that the in respect of the business of the Group. All the Directors have
information required is per tinent to the discharge of their
During the financial year under review, Tan Sri Dato’ Ir
Re-election of Directors attended the Mandatory Accredition Programme.
duties as Directors and is for the benefit of the Group. In The Company Ar ticles require all Directors of the Company
Muhammad Radzi bin Haji Mansor was appointed to the
order to ensure the Board is consistently and promptly During the financial year under review, the Directors attended
Board as a Non-Independent Non-Executive Director of the to retire by rotation at least once in every three (3) years but
updated on the Group’s performance, the Board receives formal training programmes or international study tours.
Company effective 21 October 2009. are eligible for re-election at the Company’s Annual General
a Corporate Performance Repor t from Management on a The training programmes attended included International
Meeting (“AGM”).
periodical basis. Each repor t contains information on the Islamic Capital Market Forum, The Non-Executive Directors
On 23 February 2010, Encik Haizan bin Mohd Khir Johari Development Series, Bursa Malaysia Evening Talks on
Group’s year-to-date performance and updates on action As such, in accordance with the Company Ar ticles, all
was appointed to the Board as a Non-Independent Non- Corporate Governance, Finance for Directors and Executive
plans under the Company’s Strategic and Business Plans. Directors, including the Appointed Directors retire from
Executive Director of the Company. Management, and Integrity Conference 2009-Integrity as
office at least once in each three (3) years and at least one- Development. In addition, some of the Directors visited
In addition, all Directors have access to the advice and services third of the number of Directors is subject to retirement by
Notwithstanding the right of the Special Shareholder to postal organisations in Singapore, New Zealand and the
of the Company Secretary and may seek independent rotation at each AGM but shall be eligible to offer themselves
appoint Appointed Directors, there is a formal and transparent United States of America to gain more knowledge about
professional advice should the need arise. In an effort to for re-election.
procedure in place for the appointment of Board members. the processes and operations of these foreign postal
fur ther enhance the services of the Company Secretary
The BNRC is responsible for the deliberation and proposal organizations.
to the Board, the Board members provide their respective Details of the Directors seeking re-election at the for thcoming
of suitable candidates, taking into account the required mix of
feedback on the Company Secretary’s current service AGM such as their age, qualification, working experience,
skills, calibre, experience and other qualities for appointment
standard through an Internal Customer Satisfaction Survey other directorships of public companies and position in the
of any proposed director including the Appointed Directors
designed specifically for the Company Secretary. Company are disclosed in the Profile of Directors contained
on the Board before recommendation is made to the
in this Annual Repor t.
Board for approval. The Committee is also responsible for
Board Committees The principal functions and duties of the Audit Committee are as follows:-
In accordance with the Company Articles, the Board delegates certain responsibilities to Board Committees with specified terms of • Review the quar terly results and annual financial statements of the Company and Group prior to the approval of the
reference and responsibilities. In the financial year under review, there were three (3) Board Committees: the Audit Committee, the Board.
BNRC and the Tender Board Committee. • Assess the quality and effectiveness of the systems of internal control and the efficiency of the Group’s operations, par ticularly
those relating to areas of significant risk.
(1) Audit Committee • Assess the internal process for determining and managing key risks other than those that are dealt with by other specific
The Audit Committee comprises five (5) Non-Executive Directors, of which, four (4) members including the Chairman of the Committee Board committees.
are Independent Directors. The members are as follows:- • Review the evaluation by the internal and external auditors of the Group’s system of internal control and thereafter repor t
the evaluation to the Board.
(a) Datuk Low Seng Kuan
(Chairman/Senior Independent Non-Executive Director) Fur ther details on the Audit Committee including its activities during the year under review are contained in the Audit Committee
(b) Mr. Wee Hoe Soon @ Gooi Hoe Soon Repor t of this Annual Repor t.
(Independent Non-Executive Director)
(c) Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin (2) Board Nomination and Remuneration Committee
(Non-Independent Non-Executive Director) The BNRC comprises six (6) Non-Executive Directors, of which, four (4) members including the Chairperson of the Committee
(d) Encik Abdul Hamid bin Sh Mohamed are Independent Directors. The members are as follows:-
(e) Puan Sri Datuk Nazariah binti Mohd Khalid (a) Puan Sri Datuk Nazariah binti Mohd Khalid (d) Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin
(Independant Non-Executive Director) (Appointed w.e.f. 12 March 2010) (Chairperson/ Independent Non-Executive Director) (Non-Independent Non-Executive Director)
All the Audit Committee members are financially literate and/ is currently Executive Director of Symphony House Berhad, a (b) Datuk Low Seng Kuan (e) Dato’ C. Krishnan a/l Chinapan
or have strong management experience. Datuk Low Seng company listed on the Main Market of Bursa Malaysia Securities (Senior Independent Non-Executive Director) (Independent Non-Executive Director)
Kuan, Chairman of the Committee is a Chartered Accountant Berhad, while Tunku Dato’ Mahmood Fawzy bin Tunku (c) Dato’ Ibrahim Mahaludin bin Puteh (f) Puan Eshah binti Meor Suleiman
with the Malaysian Institute of Accountants (MIA) and he was Muhiyiddin has vast experience in investments and management (Independent Non-Executive Director) (Non-Independent Non-Executive Director)
the Managing Director of Malaysian Sheet Glass Sdn Bhd. and is currently Executive Director of Investments, Khazanah
Mr. Wee Hoe Soon @ Gooi Hoe Soon is a member of the Nasional Berhad. On the other hand, Puan Sri Datuk Nazariah
Malaysian Institute of Certified Public Accountants (MICPA) binti Mohd Khalid had vast experience in the Malaysian Civil
and the Malaysian Institute of Accountants (MIA) and has Service and had served in various capacities prior to her last
vast experience in the fields of accounting and corporate post as the Director General of the Malaysian Administrative
finance. Encik Abdul Hamid bin Sh Mohamed is a Fellow of the Modernisation and Management Planning Unit (MAMPU) in
Association of Chartered Certified Accountants (ACCA) and the Prime Minister’s Department.
The principal functions and duties of the BNRC are as (3) Tender Board Committee B. Directors’ Remuneration
follows:- The Tender Board Committee comprises four (4) Non
The Board through the BNRC ensures that the level of Meanwhile, the Board as a whole determines the fees
• Propose to the Board suitable candidates for appointment Executive Directors, of which three (3) members are
remuneration of the Executive Director(s) is sufficient payable to Non-Executive Directors and any increase in
as Directors including membership and chairmanship of Independent Directors. The members are as follows:-
to attract and retain the Executive Director(s) to manage Directors’ fees shall be subject to shareholders’ approval at
Board Committees.
the Group successfully. The level and make up of the the Company’s AGM. The Non-Executive Directors are paid
• Review on an annual basis the Board structure, size and (a) Puan Eshah binti Meor Suleiman remuneration are structured so as to link rewards with meeting allowances for every Board Meeting that they attend
composition. (Chairperson/Non-Independent Non-Executive Director) corporate and individual performance.The BNRC determines and the Company also reimburses reasonable expenses
• Propose Succession Planning for the Executive Directors the performance contracts and targets and structures the incurred by the Directors in the course of their performance
(b) Dato’ Ibrahim Mahaludin bin Puteh
and Chief Level Officers of the Company. rewards for the Executive Director(s)’ performance against of duties as Directors.
• Assess on an annual basis the effectiveness of the Board these targets. The performance of the Executive Director(s)
as a whole, the Board Committees and the contribution (c) Puan Sri Datuk Nazariah binti Mohd Khalid and key senior management positions are measured via key
of each individual Director. (Independent Non-Executive Director) performance indicators that are structured early in the year
• Recommend to the Board the remuneration framework (d) Dato’ C. Krishnan a/l Chinapan to measure the performance of key personnel.
for the Executive Directors and to further recommend (Independent Non-Executive Director)
remuneration package and terms of employment of
the Executive Directors and Chief Level Officers of the The principal functions and duties of the Tender Board Details of the remuneration of the Directors of Pos Malaysia for the financial year under review are as follows:-
Company. Committee are as follows:-
• Recommend to the Board performance contracts and • Examine and where appropriate, approve awards of Category Fees Salaries & Bonus Allowance Total
Key Performance Indicators (“KPI”) for the Executive contracts for supply of goods, works or services within (Director) RM’000 RM’000 RM’000 RM’000
Directors and Chief Level Officers. the limits authorised in the DAL.
Executive - 1,041 311 1,352
• Review selection for the appointment of successful Non-Executive 409 - 445 854
tenderers for both close and open tender applications.
• Review and approve the Company’s procurement Total 409 1,041 756 2,206
policies and procedures including general evaluation
criteria, anti-corruption policy and codes of conduct.
• Oversee and monitor the overall implementation of the
Red Book issued by the Putrajaya Committee on GLC
High Performance, the Company’s Procurement Policy
Guidelines and review the efficiency and effectiveness of
the Company’s procurement processes.
The remuneration band of the Directors of Pos Malaysia for the financial year under review are shown below:- C. Relationship And Communication
With Investors And Shareholders
Number of Directors Investor Relations and Shareholder Communication
Range of Remuneration
Executive Non-Executive The Board acknowledges the impor tance of communication “The Board acknowledges the
Below RM50,000 - 3 with investors and other stakeholders. The Group has importance of communication
RM50,001 – RM100,000 - 2
been communicating with stakeholders and investors via with investors and other
prompt announcements through quar terly financial repor ts, stakeholders.”
RM100,001 – RM150,000 - 5 distribution of annual repor ts, quar terly announcements,
RM150,001 – RM200,000 - - relevant circulars and press releases. In addition, the Company
conducts briefings and dialogues with financial analysts via
RM200,001 – RM250,000 - -
Investors’ Briefings on a quar terly basis to keep potential General Meetings
RM250,001 – RM300,000 - - investors informed of the activities and developments within
The Company’s general meetings serve as the principal forum
RM300,001 – RM350,000 - - the Group.
for communicating with the shareholders of the Company.
RM350,001 – RM400,000 - - The Company’s website www.pos.com.my also provides an At general meetings, shareholders have direct access to the
avenue for keeping the general public updated on the activities Directors and are given ample oppor tunity and time to raise
RM400,001 – RM450,000 - -
of the Company. The website is a source of information on questions or seek fur ther information from the Directors
RM450,001 – RM500,000 - - regarding the Group’s activities, financial performance and
the Group’s financial results, services and products, annual
RM500,001 – RM550,000 - - repor ts, press releases, events, newsletters, media highlights, prospects as well as raise any issues of concern regarding
and other relevant information. the Group. Besides the Directors, the Senior Management
RM550,001 – RM600,000 1* -
and the external auditors of the Company are present at
RM600,001 – RM650,000 - - In the financial year under review, the Board of Directors the meetings to assist in providing the necessary responses
RM650,001 – RM700,000 - - of Utilico Emerging Markets Limited, a former substantial to queries from the shareholders. Prior to the tabling of
RM700,001 – RM750,000 - - shareholder of Pos Malaysia had visited the Company. The proposed resolutions at an AGM, the shareholders are
visit included a site visit to some of the facilities of Pos presented with a summary of the Group’s performance on
RM750,001 – RM800,000 1
Malaysia as well as a dialogue with the Board of Directors the financial year under review by the GMD/CEO.
and Senior Management of the Company on the challenges
* This was the remuneration band of the former Executive Director/Group Chief Operating Officer of the Pos Malaysia Group faced by Pos Malaysia.
until his resignation w.e.f 1 August 2009
Note: The remuneration of Executive Directors are inclusive of the Company’s contribution to provident fund, EPF, salaries, bonus,
gratuity and allowances.
D. Accountability And Audit Internal Control other relevant laws, rules and regulations applicable to the the presence of Management. Thereafter, the Audit Committee
Financial Reporting The Board has an overall responsibility for maintaining a operations of the Company including compliance with the shares and discusses with Management all concerns raised by
The Company’s financial statements are drawn up in sound system of internal control to provide reasonable relevant laws, rules and regulations governing the postal the external auditors (if any). Thereafter, the necessary action
accordance with the provisions of the Companies Act assurance of the effectiveness of the Group’s business business and the Company’s internal policies and procedures. plans will be formulated and implemented by Management.
1965, and applicable approved accounting standards for operations and risk management. The Group’s Statement of The Internal Audit function conducts regular audit checks on Pursuant to the requirement under Paragraph 15.25 of the
entities other than private entities issued by the Malaysian Internal Control is detailed in this Annual Repor t. the Strategic Business Units and other support departments Main Market Listing Requirements of Bursa Malaysia Securities
Accounting Standards Board. In presenting the annual and divisions on a periodical basis and tables its audit reports Berhad, the Board is pleased to report that the Company has
financial statements and quar terly announcements of results Compliance to the Audit Committee for deliberation. applied the principles set out in Part 1 of the Code and that the
to shareholders, the Board aims to present a balanced Pos Malaysia is licensed under the Postal Services Act 1991 Board continues to adopt and comply with the best practices in
and understandable assessment of the Group’s position to carry out postal services in Malaysia. As such, Pos Malaysia The Company also has an International and Regulator y corporate governance set out in Part 2 of the Code.
and prospects. In this regard, the Board also ensures that is subject to the provisions of the Postal Services Act 1991, Affairs Depar tment which serves as a platform for the
the Group uses acceptable accounting policies for its terms and conditions set out in the license granted under Company to engage with the Malaysian Communication Initiatives
financial statements, consistently applied and suppor ted by the Postal Services Act 1991 and all rules and regulations on and Multimedia Commission, which is the regulator of The initiatives that were introduced in year 2008 namely the
reasonable and prudent judgement and estimates. postal services set out under the Postal Services Act 1991. postal ser vices in Malaysia and other relevant authorities Whistle Blowing Policy and the Integrity Pact which were
Pos Malaysia is also subject to the relevant Universal Postal and/or government bodies to establish and develop the elaborated in the 2008 Corporate Governance Statement
The Audit Committee assists the Board by first reviewing the Union Conventions and Regulations. postal regulatory framework for Malaysia. are currently fully operationalised within the Group.
financial statements to ensure completeness, accuracy and
validity prior to adoption of the statements by the Board and The Company Secretary assists the Board in ensuring Relationship with Auditors In addition, in view of the intense challenges faced globally
subsequent release to Bursa Malaysia Securities Berhad. compliance by the Company and the Board of Directors with The Company, through the Audit Committee, has an where five major forces are changing the future of the
the Companies Act, the Main Market Listing Requirements appropriate and transparent relationship with the external postal industr y such as changing customer needs, eroding
The Board also approves the Company’s Annual Budget of Bursa Malaysia Securities Berhad and other securities auditors. In the course of audit of the Group’s operations, the mail volume, growing competition, rising cost and regulator y
and Business Plans and carries out periodic review on the laws, rules and regulations. The Board is apprised of the external auditors highlight to the Audit Committee and the changes, Management had, in August 2009, presented to
progress made by the business units. latest amendments and their application to the Company Board matters that require the Board’s attention. The external the Board and obtained the Board’s approval for the Pos
and/or the Board. As and when necessary, the Company auditors also report to the Audit Committee on their findings Malaysia Transformation Masterplan which contains 39
The Directors’ Responsibility Statement in respect of the also seeks clarification through professional opinions on the pertaining to their annual audit. initiatives to address the key issues.
Audited Financial Statement as required under Paragraph extent of application of cer tain obligations and/or duties
15.26(a) of the Main Market Listing Requirements is contained enshrined in the said laws, rules and regulations especially Further, the external auditors meet the Audit Committee The 3-year transformation plan is anchored on 5 pillars
in this Annual Report. when it concerns duties of directors. members without the presence of Management or other namely focus on customer needs, operational excellence,
employees pursuant to Paragraph 15.17 of the Main Market concentrate on core business, unleash talent and capabilities
The Company’s Internal Audit function assists the Board and Listing Requirements of Bursa Malaysia Securities Berhad. as well as strengthen the Company’s image.
Management in ensuring compliance by the Company with During the financial year under review, the external auditors
(This Statement is made in accordance with a resolution of the Board of
had two meetings with the Audit Committee members without Directors dated 31 March 2010)
Statement of Internal Control POS MALAYSIA ANNUAL REPORT 2009
Introduction Risk Management Framework Reporting Structure

THE BOARD OF DIRECTORS (“the Board”) as guided by Policy The Risk Management Committee (“RMC”) of the Group is chaired by the Group Managing Director / Chief Executive Officer
the Bursa Malaysia Securities Berhad’s Statement of Internal The Board subscribes to the fact that an effective risk (“CEO”) and during the period under review, the members are as follows:
Control – Guidance for Directors of Public Listed Companies management practice is a critical component of a sound
is pleased to provide the following Director’s Statement of system of internal control. In view of this, there is a formal Chairman: Dato’ Syed Faisal Albar bin Syed A.R. Albar-Group Managing Director/CEO
Internal Control which outlines the nature and scope of process to identify, evaluate and manage significant risks Members:
internal control of the Group during the period under review. faced by the Group that may impede the achievement of the • Jezilee M. Ramli Group Chief, Strategy & Planning (Appointed w.e.f. 03.02.09)
Group’s objectives during the period under review.
• Dato’ Mohd Derus bin Harun Chief Operating Officer, PosLogistik/ Transpor t Management
Responsibility • Dato’ Mearia Hamzah Chief Operating Officer, PosNiaga
The Board is responsible for ensuring that a sound system The Board has a stewardship responsibility to understand • Haji Ahmad Nadzarudin Abdul Razak Chief Operating Officer, PosLaju
of internal control to safeguard shareholder’s interest and these risks, communicating the requirements of this policy
• Bahaman bin Kamaruzzaman Covering Chief Operating Officer, PosMel/ Group Head, Transformation
Company’s assets is maintained. The Board affirms its overall and to guide the organisation in dealing with these risks. Management Office
responsibility for the Group’s system of internal control • Mohd Lutfi bin Mat Lazim Chief Financial Officer
which includes the establishment of an appropriate control The policy of the Board is: • Mohd Rosdeen bin Hassan Chief Information Officer
environment and framework as well as reviewing its adequacy • To manage risks proactively; • Datuk Abu Huraira bin Abu Yazid Executive Director (resigned w.e.f. 01.08.09)
and integrity. • To manage risks pragmatically, to acceptable levels given • Dato’ Mohamed Hazlan bin Mohamed Hussain Chief Operating Officer, PosMel (resigned w.e.f. 31.03.09)
the particular circumstances of each situation; • Dr. R. Hanafi bin Abdullah Group Head, Human Resource and Administration (resigned w.e.f. 05.01.10)
As there are limitations that are inherent in any system of
• To require that all papers that are put to the Board by
internal control, this system is designed to manage rather
Management relating to strategy, key project approvals, The RMC’s principal roles and responsibilities, which are stipulated in the ERM policy, are as follows:
than eliminate risks that may hinder the achievement of the
significant action or investment must include a risk • Monitor policy implementation and the continuous development of the risk management in the organisation;
Group’s business objectives. Accordingly, it can only provide
assessment summary; • Formulate policy, business rules, processes and structures to meet policy implementation needs;
reasonable but not absolute assurance against material
• To manage risk routinely and in an integrated and • Implement the processes and resource the structures;
misstatement or loss. The system of internal control includes
transparent way in accordance with good governance
strategic, financial, operational, compliance controls and risk • Agree with risk parameters and controls;
practices; and
management procedures. • Initiate and conduct business within agreed risk constraints and business rules;
• To require that an effective and formalised Enterprise
• Ensure that periodical risk repor ts are submitted accurately and in a timely manner to the Audit Committee and Board; and
Risk Management Policy and Procedure Manual (“ERM”)
• Ar ticulate and challenges the key risks, controls and elements of better practice and also offers support and advice.
framework is established and maintained by the Group.
POS MALAYSIA ANNUAL REPORT 2009 Statement of Internal Control
The Corporate Risk Management Depar tment (“CRMD”) Other Key Elements of Internal Control The monitoring, review and repor ting arrangements in place give reasonable assurance that the structure of controls and its
will act as a suppor t for the RMC in monitoring, analysing operations are appropriate to the Group’s operations and that risks are at an acceptable level throughout the Group. However, the
The other key elements of the Group’s internal control
and repor ting of the risks identified enterprise-wide and arrangements do not eliminate the possibility of human error or deliberate circumvention of control procedures by employees.
systems are described below:
as the facilitator in the risk assessment process. CRMD will
• The roles and responsibilities of the Board of Directors,
continuously evaluate the risk policy and procedures, and The Board believes that the development of the system of internal control is an ongoing process and has taken steps throughout
Risk Management Committee, Business and Suppor t
initiate improvements by maintaining awareness of trends the year to improve its internal control system and will continue to do so.
Units and State offices in respect of Risk Management
and developments in risk management that may have
are defined in the Risk Management Policy.
significant impact to the organisation.
• The lines of responsibility and frequency of repor ting of
Weakness in Internal Control that Result in Material Losses
To the best of the Board’s knowledge, there were no material losses incurred during the period under review as a result
risks are also defined in the Risk Management Policy.
Risk owners and co-owners have been identified to of weaknesses in internal control. Management continues to take measures to improve and strengthen the internal control
ensure that the risk registers and risk profiles are updated • Operating policies and procedures, which incorporate
environment.
accordingly. The risk registers and risk profiles of each regulatory and internal requirements, are prescribed in
SBU’s, depar tments and the main subsidiary companies are Operating Procedures and Circulars. The documents are
(This Statement is made in accordance with the resolution of the Board of Directors dated 31st March 2010)
updated quar terly and the consolidated repor ts are tabled updated as and when necessary to meet the continually
to the RMC and the Audit Committee. changing operational needs.
• The Board meets at least quarterly to review the
The Internal Audit Department is involved in validating the Group’s operational and financial performance against
results of the ERM processes. The Internal Audit function approved budget, approve quarterly repor t to Bursa
examines the risk management systems for its effectiveness. Malaysia Securities Berhad and deliberate on issues that
require the Board’s approval. In addition, the Board is
The Board and the Management continuously review and also updated on the changes in the business environment
enhance the ERM framework to ensure that ERM practices are that may adversely affect business performance and
aligned with the latest ERM development and best practices. relevant actions taken.
• The Audit Committee, together with the Internal
Audit Department provides an assessment on the
adequacy, efficiency and effectiveness of the Group’s
internal control system. The Internal Audit Depar tment
recommends improvements where necessary.
Directors’ Responsibility Statement POS MALAYSIA ANNUAL REPORT 2009
Pursuant to Paragraph 15.26(a) of the Main Market Listing “The Directors are responsible
Requirements of Bursa Malaysia Securities Berhad, the
to take such steps as are
Board of Directors is required to include a statement in the
Company’s Annual Report explaining its responsibility for reasonably open to them
preparing the annual audited financial statements. to safeguard the assets
of the Group.”
In preparing the financial statements of the Company and the
Group for the financial year ended 31 December 2009, the
Directors are satisfied that the Company and the Group have
used appropriate accounting policies, consistently applied
and suppor ted by reasonable and prudent judgements
and estimates. The Directors are also satisfied that all
applicable approved accounting standards for entities other
than private entities issued by the Malaysian Accounting
Standards Board and the provisions of the Companies Act,
1965 have been complied.
“The Directors are satisfied

The Directors are responsible for ensuring that the Company
and companies within the Group keep accounting records
that the Company and the
which disclose with reasonable accuracy the financial position Group have used appropriate
of the Company and of the Group. In addition, the Directors accounting policies,
are responsible to take such steps as are reasonably open to consistently applied and
them to safeguard the assets of the Group and to prevent
supported by reasonable and
and detect fraud and other irregularities.
prudent judgements
(This Statement is made in accordance with a resolution of and estimates.”
the Board of Directors dated 31 March 2010.)
Additional Compliance Information POS MALAYSIA ANNUAL REPORT 2009
1. Utilisation of Proceeds 6. Variation in Results 10. Non- Audit Fees

During the financial year ended 31 December 2009, There is no variance in the Company’s audited financial The amount of non-audit fees paid and payable to
there were no proceeds raised by the Company from results for the financial year ended 31 December 2009 external auditors by the Group for the financial year
any corporate proposals. from the unaudited results as previously announced. ended 31 December 2009 is RM60,120 which includes
The Company has not released or announced any the review on FRS 8, Statement of internal control and
2. Share buy-back estimated profit, financial forecast and projection in the advisory on corporatisation of PosLaju.
During the financial year under review, the Company financial year ended 31 December 2009.
has not exercised any share buy-back permitted by
Section 67A of the Companies Act, 1965. 7. Profit Guarantee
During the financial year ended 31 December 2009,
3. Options, Warrants or Convertible Securities the Company did not give any profit guarantee.
During the financial year, the Company did not issue or
exercise any ESOS, warrants or conver tible securities. 8. Material Contracts
There were no material contracts entered into by the
4. American Depository Receipt (ADR) /Global Company or its subsidiaries involving the directors and
Depository Receipt (GDR) substantial shareholders, either still subsisting at the end of
During the financial year ended 31 December 2009, the financial year ended 31 December 2009, or entered
the Company did not sponsor any ADR and GDR. into since the end of the previous financial year.
5. Sanctions and/or Penalties 9. Revaluation Policy

During the financial year under review, there were no During the financial year ended 31 December 2009,
sanctions and/or penalties imposed on the Company the Company did not have any revaluation policy on
and its subsidiaries, directors or management by the landed proper ties.
relevant regulatory bodies.
Audit Committee Report POS MALAYSIA ANNUAL REPORT 2009
The Board of Directors of Pos Malaysia is pleased to present the report on the Audit Committee of the Board for the financial
Terms of Reference
year ended 31st December 2009.
The Terms of Reference of the Audit Committee are in line with the Listing Requirements of Bursa Malaysia Securities Berhad and
Members and Meetings the Malaysian Code on Corporate Governance. The Terms of Reference of the Audit Committee are as follows:-
The Audit Committee of Pos Malaysia had convened seven (7) meetings during the financial year under review. The details of the
Pos Malaysia Audit Committee members and the attendance of their meetings are as follows: Composition of Committee
The Audit Committee shall be appointed by the Board of • The members of the Audit Committee shall elect a Chairman
Members
Directors upon recommendation of the Board Nomination from among themselves who shall be an Independent
(a) Datuk Low Seng Kuan Chairman Director;
and Remuneration Committee which meets the following
Senior Independent Non-Executive Director
requirements:- • No Alternate Director should be appointed as a member of
(b) Mr. Wee Hoe Soon @ Gooi Hoe Soon Member • The Audit Committee shall consist of not less than three (3) the Audit Committee;
Independent Non-Executive Director
members; • In the event of any vacancy in the Audit Committee resulting
(c) YM Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin Member • All the members of the Audit Committee must be non-
Non-Independent Non-Executive Director in the non-compliance of the Listing Requirements pertaining
executive directors, with a majority of them being independent to composition of the Audit Committee, the Board of
(d) Abdul Hamid bin Sh Mohamed Member directors as defined under the Listing Requirements of Bursa
Independent Non-Executive Director Directors shall within three (3) months of that event fill the
Malaysia Securities Berhad (‘Listing Requirements’); vacancy;
(e) Puan Sri Datuk Nazariah binti Mohd Khalid* Member • At least one (1) member of the Audit Committee must meet
Independent Non-Executive Director • The Audit Committee members shall collectively:-
the criteria set by the Listing Requirements as follows:-
(a) Have knowledge of the industries in which the Group
• Must be a member of the Malaysian Institute of Accountants;
Attendance of Meetings or
operates; and
(b) Have the ability to understand key business and financial
Members Total • If he/she is not a member of the Malaysian Institute of
risks as well as related controls and control processes.
Accountants, he must have at least three (3) years working
(a) Datuk Low Seng Kuan 6/7 experience; and • All members of the Audit Committee shall also be
• He/she must have passed the examinations specified in financially literate i.e. have the ability to read and understand
(b) Wee Hoe Soon @ Gooi Hoe Soon 7/7
Part I of the 1st Schedule of the Accountants Act 1967; or fundamental financial statements, including a Company’s
(c) YM Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin 7/7 he/she must be a member of one (1) of the associations of balance sheet, income statement, statement of cash flow and
(d) Abdul Hamid bin Sh Mohamed 7/7 accountants specified in Part II of the 1st Schedule of the key performance indicators.
Accountants Act 1967; or
(e) Puan Sri Datuk Nazariah binti Mohd Khalid* N/A
• Fulfils such other requirements as prescribed or approved
by the Bursa Malaysia Securities Berhad.
* Puan Sri Datuk Nazariah binti Mohd Khalid was appointed to the Audit Committee on 12 March 2010
POS MALAYSIA ANNUAL REPORT 2009 Audit Committee Report
Audit Committee Meetings Responsibilities and Duties

The Audit Committee Meetings shall be held not less than • Have full and unrestricted access to any employee and The responsibilities and duties of the Audit Committee are on significant lapses in controls and procedures that are
four (4) times a year. In addition to the members of the information pertaining to the Group. All documents of the as follows: identified;
Audit Committee, the meeting shall be attended by the Group shall be made accessible to the Audit Committee • To assess the performance of the external auditors and
a. Risk Management
Managing Director/Group Chief Executive Officer, Chief and all employees are directed to co-operate with the make recommendations to the Board of Directors on
To review the adequacy and effectiveness of Enterprise Risk
Financial Officer and Chief Internal Auditor. Other members request made by the Audit Committee; their appointment and removal;
Management (“ERM”), repor ting structures, risk profiles and
of the Board, senior management and external auditors’ • Have direct communication channels with the external • To recommend the nomination of external auditors, their
governance processes.
representatives may attend the meetings upon invitation auditors and person(s) carrying out the internal audit audit fees and resignation or dismissal of external auditors
of the Audit Committee. The auditors, both internal and function or activity for the Group; and b. Internal Audit and thereafter repor t the same to the Board;
external, may request a meeting if they deem necessary. • Be able to engage independent professional advisers or
• To approve the appointment, replacement and dismissal of • To review the quarterly and annual financial statements of
other advisers and to secure attendance of other third the Chief Internal Auditor and his deputy; the Group and the Company focusing on the matters set
The quorum for a meeting of the Audit Committee shall parties with relevant experience and exper tise if it • To review the adequacy of the scope, functions, competency out below, and thereafter submits the same to the Board:-
comprise a majority of Independent Directors from among considers necessary. and resources of Internal Audit Depar tment and that it • Any changes in or implementation of major accounting
its members. In the absence of the Chairman, the members has the necessary authority to carry out its work; policies and practices;
present shall elect a chairman for the meeting from among Notwithstanding anything to the contrary, the Audit • To review and approve the Annual Risk Based Audit Plan, • Major judgmental areas, significant and unusual events;
the member present. Minutes of each meeting shall be kept Committee does not have executive powers and shall repor t Key Performance Indicators and subsequently appraise • Significant adjustments arising from the audit;
and distributed to each member of the Audit Committee to the Board of Directors on matters considered and its the performance of the Internal Audit Depar tment; • Going concern assumption; and
and of the Board. The Audit Committee shall report on each recommendation thereon, relating to the Group and the • To monitor the effectiveness in the implementation of the • Compliance with Accounting Standards and regulatory
meeting to the Board. The Secretary to the Audit Committee Company. Whistleblowing Policy and procedure and other related requirements.
shall be the Company Secretary or any other person as the
governance processes; • To discuss problems and reservations arising from the
Committee may decide. Review of the Audit Committee • To review the internal audit repor ts on significant/ major interim and final audits and any matter the external
The performance of the Audit Committee and each of the auditors may wish to discuss.
Rights and Authority members shall be reviewed by the Board of Directors at
audit findings and management’s responses to ensure that
appropriate and adequate remedial actions are taken by d. Other Matters
The duties of the Audit Committee shall be in accordance least once every three (3) years to determine whether the the management; and
with the same procedures adopted by the Board:- • To review related par ty transactions entered into by
Committee and its members have carried out their duties in
• To review the systems of internal controls with the the Group and the Company and to ensure that such
• Have authority to investigate any activity within its Terms accordance with their Terms of Reference in the Corporate
of Reference; auditors. transactions are under taken on the Group’s normal
Governance Statement.
• Have the resources which are required to perform its c. External Audit commercial terms and that the internal control procedures
duties; with regards to such transactions are sufficient.
• To review the external auditors’ audit plan, scope of their
audits and their management letters and ensure appropriate • Any other functions as may agreed to by the Committee
and adequate remedial actions are taken by management and the Board.
• Where the Audit Committee is of the view that a matter Internal Audit External Auditors The audit scope includes performing audit reviews at Strategic
repor ted to the Board of Directors has not been
a. Reviewed the risk-based annual audit plan to ensure a. Reviewed the external auditors:- Business Units (“SBU”s), States Management Offices, Suppor t
satisfactorily resolved resulting in a breach of the listing
adequacy of the scope and coverage of major risk areas • their audit plan, audit strategy and scope of work for Services Depar tments and subsidiaries.
requirements of Bursa Malaysia Securities Berhad, the the year ;
of the Group;
Committee has the responsibility to properly report such • the results of annual audit, their audit repor ts and
b. Reviewed the Key Performance Indicators of the Internal The audits cover the reviews on:-
matter to Bursa Malaysia Securities Berhad. management letter together with management’s
Audit Department and appraised the depar tment’s 1. the adequacy of internal controls;
response to the findings of the external auditors; 2. the effectiveness and efficiency of operations;
Summary of Activities performance and competency level;
b. Evaluated the performance and the effectiveness of the
c. Reviewed the effectiveness of the audit process, resource 3. the accuracy of financial and operational information;
During the year, the Audit Committee carried out the external auditors and made recommendations to the Board 4. the compliance with internal policy & procedure,
requirements for the year ; of Directors on their appointment and remuneration.
following activities:- regulatory and statutory requirements;
d. Reviewed the internal audit reports which were tabled
5. the adequacy and effectiveness of IT systems in
Financial Reporting during the year, the audit recommendations made and Related Party Transactions
suppor ting operations; and
management’s responses to these recommendations where Review related par ty transactions entered into by the Group
a. Reviewed quarterly and annual financial reports of the 6. the effectiveness of risk management processes and the
appropriate, the committee has directed management and the company and the disclosure of such transactions as
Group and the company prior to submission to the Board implementation of controls by management to mitigate
to rectify and improve internal controls and Standard per the regulatory requirements.
of Directors for approval. The review was to ensure that the company’s major risks.
Operating Procedures based on the internal auditor’s
financial reporting and disclosure are in compliance with: recommendations and suggestions for improvement; Internal Audit Function The Internal Audit Depar tment shows a high level of
• Provisions of the Companies Act 1965; e. Monitored the corrective actions on the outstanding audit The Audit Committee is assisted by the Internal Audit professional exper tise, with qualified and experienced
• Listing requirements of Bursa Malaysia Securities Berhad; issues to ensure that all the key risks and control lapses Depar tment to effectively discharge its duties and auditors who consistently show their competency through
• Applicable approved accounting standards in Malaysia; and had been addressed; and responsibilities. The Internal Audit Depar tment repor ts the high quality and usefulness of the audit product over time.
• Other legal and regulatory requirements.
f. Monitored internal audit activities and the staffing directly to the Audit Committee. In 2009, there were seven
In the review of the annual audited financial statements, requirements, skills and the core competency of the (7) Audit Committee meetings held to deliberate on major The Internal Audit Depar tment also conducted ad-hoc
the Audit Committee discussed with Management and the Internal Auditors. audit findings. In general, the Internal Audit Depar tment assignments and investigation audits requested by the
external auditors, the accounting principles and standards provides an independent assurance on the adequacy and Audit Committee and management. Fur ther, Internal Audit
that were applied and their judgement of the items that may effectiveness of internal controls, corporate risk management Depar tment conducts regular follow-up on the closing of
affect the financial statements. and overall governance processes. audit issues with input from the management.
Annually, the Internal Audit Department prepares a risk based

audit plan and presents to the Audit Committee for approval. In
view of scarce resources, the risk based audit plan gives priority and
focuses on company’s top risks identified by the management.
In ensuring effective communication of audit issues to all operational areas and prompt closing of audit issues, meetings were held
with the management on a regular basis. Management is responsible for ensuring that corrective actions on reported weaknesses
and suggested improvements as recommended are taken within the required time frame.
The Internal Audit Department also provides consultancy services to the management in evaluating the risk exposures of new
business products and projects prior to implementation and ensures that controls are in place to mitigate risks identified. The
Internal Audit Department continues to assist management in supporting the Whistleblowing policy and the Integrity Pact
established in 2008 to ensure transparency and integrity throughout the tendering process.
The Internal Audit Department independently reviews the risk management governance processes to ensure their adequacy and
effectiveness and reports to the Audit Committee on a periodical basis.
One hundred percent of the internal audit activities for the year under review were conducted by the inhouse staff of the Internal Audit
Department. Total budget for the Internal Audit function at Pos Malaysia in the year ending 31 December 2009 was RM2.6 million.
_____________________
Datuk Low Seng Kuan
Chairman
Audit Committee
Directors’ Report
The Directors have pleasure in submitting their report and the Dividends Directors’ interests
audited financial statements of the Group and of the Company Since the end of the previous financial year, the Company paid None of the Directors holding office at 31 December 2009 had any interest in the ordinary shares of the Company and of its related
for the year ended 31 December 2009. a final ordinary dividend of 10 sen per ordinary share less tax corporations during the financial year.
at 25% totalling RM40,277,000 in respect of the year ended 31
Principal activities December 2008 on 25 June 2009. Directors’ benefits
The principal activities of the Company during the financial Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit
The final dividends recommended by the Directors in respect
year are to provide postal and its related services which include (other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors as shown
of the year ended 31 December 2009 is 12.5 sen per ordinary
receiving and dispatching of postal articles, postal financial share less tax at 25% totalling RM50,346,000 and is subject to in the financial statements or the fixed salary of a full time employee of the Company or of related companies) by reason of a
services, dealing in philatelic products and sale of postage stamps. the approval of the shareholders at the forthcoming Annual contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or
The principal activities of the subsidiaries and associates are General Meeting. with a company in which the Director has a substantial financial interest.
stated in Notes 8 and 9 respectively to the financial statements.
There has been no significant change in the nature of these Directors of the Company There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company
activities during the financial year. Directors who served since the date of the last report are: to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate.
• Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat
Results • Dato’ Syed Faisal Albar bin Syed A.R Albar Issue of shares and debentures
Group Company • Tan Sri Dato‘ Ir Muhammad Radzi bin Haji Mansor (appointed There were no changes in the authorised, issued and paid-up capital of the Company during the financial year.
RM’000 RM’000 on 21.10.2009)
• Datuk Low Seng Kuan Employee Share Option Scheme (“ESOS”)
Profit attributable to:
• Dato’ Krishnan a/l Chinapan The Company had on 31 October 2007 implemented the ESOS upon the completion of the restructuring exercise of Pos
Shareholders of the Company 75,415 69,072 • Puan Sri Datuk Nazariah binti Mohd Khalid Malaysia & Services Holdings Berhad for the purpose of continuing the objectives under the Pos Malaysia & Services Holdings
Minority interest 1,296 - • Dato’ Ibrahim Mahaludin bin Puteh Berhad’s ESOS. The ESOS is governed by the ESOS Bye-laws which were approved by the shareholders on 28 June 2007. The
76,711 69,072 • Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin ESOS is in force for a period from 31 October 2007 up to 23 June 2008.
• Wee Hoe Soon @ Gooi Hoe Soon
Reserves and provisions • Abdul Hamid bin Sh. Mohamed Details of the ESOS are set out in Note 14(c) of the financial statements.
There were no material transfers to or from reserves and • Eshah binti Meor Suleiman
provisions during the year under review except as disclosed in • Haizan bin Mohd Khir Johari (appointed on 23.02.2010) Options granted over unissued shares
the financial statements.
• Datuk Abu Huraira bin Abu Yazid (resigned on 01.08.2009) No options were granted to any person to take up unissued shares of the Company during the financial year.
POS MALAYSIA ANNUAL REPORT 2009 Directors’ Report
Other statutory information Auditors
Before the balance sheets and income statements of the No contingent liability or other liability of any company in The auditors, Messrs KPMG, have indicated their willingness to accept re-appointment.
Group and of the Company were made out, the Directors the Group has become enforceable, or is likely to become
took reasonable steps to ascertain that: enforceable within the period of twelve months after the end
i. all known bad debts have been written off and adequate of the financial year which, in the opinion of the Directors, Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
provision made for doubtful debts, and will or may substantially affect the ability of the Group and
ii. all current assets have been stated at the lower of cost and of the Company to meet their obligations as and when they
net realisable value. fall due.
At the date of this report, the Directors are not aware of In the opinion of the Directors, the financial performance of
any circumstances: the Group and of the Company for the financial year ended
i. that would render the amount written off for bad debts, 31 December 2009 have not been substantially affected
or the amount of the provision for doubtful debts, in the by any item, transaction or event of a material and unusual
Group and in the Company inadequate to any substantial nature nor has any such item, transaction or event occurred Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat Dato’ Syed Faisal Albar bin Syed A.R Albar Date: 31 March 2010
extent, or in the interval between the end of that financial year and the
ii. that would render the value attributed to the current assets date of this report.
in the Group and in the Company financial statements
misleading, or
iii. which have arisen which render adherence to the existing
method of valuation of assets or liabilities of the Group
and of the Company misleading or inappropriate, or
iv. not otherwise dealt with in this repor t or the financial
statements, that would render any amount stated
in the financial statements of the Group and of the
Company misleading.
At the date of this report, there does not exist:

i. any charge on the assets of the Group or of the Company
that has arisen since the end of the financial year and
which secures the liabilities of any other person, or
ii. any contingent liability in respect of the Group or of the
Company that has arisen since the end of the financial year.
POS MALAYSIA ANNUAL REPORT 2009 Balance Sheets at
31 December 2009
Group Company Group Company

2009 2008 2009 2008 2009 2008 2009 2008
Note RM’000 RM’000 RM’000 RM’000 Note RM’000 RM’000 RM’000 RM’000
Assets: Equity:
Proper ty, plant and equipment 4 273,694 232,901 256,999 213,679 Share capital 14 268,513 268,513 268,513 268,513
Intanglible asset 5 4,630 - - - Share premium 14 385 385 385 385
Prepaid lease payments 6 262,135 273,707 182,414 193,407 Retained earnings 15 530,695 495,557 467,001 438,206
Total equity attributable to equity holders
Investment properties 7 15,071 15,071 - - 799,593 764,455 735,899 707,104
of the Company
Investments in subsidiaries 8 - - 41,284 32,784
Minority interest - 2,574 - -
Investments in associates 9 - - - -
799,593 767,029 735,899 707,104
Other investments 10 208,492 219,951 210,654 211,215
Liabilities:
Deferred tax assets 16 85 376 - -
Deferred tax liabilities 16 14,503 10,655 13,657 10,203
Total non-current assets 764,107 742,006 691,351 651,085
Hire purchase creditors 17 23,829 27,066 23,792 27,016
Other investments 10 4,967 7,643 4,967 7,643 Total non-current liabilities 38,332 37,721 37,449 37,219
Inventories 11 8,692 6,215 4,736 3,659
Payables and accruals 18 422,212 725,469 427,098 738,933
Receivables, deposits and prepayments 12 177,507 179,004 237,077 246,777
Current tax liabilities 6,054 718 5,856 -
Current tax assets 1,453 2,715 - 1,327
Hire purchase creditors 17 8,396 6,904 8,383 6,891
Cash and cash equivalents 13 317,861 600,258 276,554 579,656
Total current liabilities 436,662 733,091 441,337 745,824
Total current assets 510,480 795,835 523,334 839,062
Total liabilities 474,994 770,812 478,786 783,043
Total assets 1,274,587 1,537,841 1,214,685 1,490,147
Total equity and liabilities 1,274,587 1,537,841 1,214,685 1,490,147
The accompanying ‘Notes to the financial statement’ are an integral part of these financial statements.
POS MALAYSIA ANNUAL REPORT 2009 Income Statements For The Year Statement Of Changes In Equity For The Year
Ended 31 December 2009 Ended 31 December 2009
Attributable to equity holders of the Company
Group Company Non distributable Distributable
2009 2008 2009 2008 Share Share Retained Minority
Total
Note RM’000 RM’000 RM’000 RM’000 Capital* Premium Profits Interest
Revenue 19 902,561 921,666 872,220 874,171 Group RM’000 RM’000 RM’000 RM’000 RM’000
Raw materials and consumables used (13,582) (21,580) (6,182) (6,535) At 1 January 2008 268,369 - 591,022 - 859,391
Staff costs (512,271) (513,282) (501,926) (503,539) Loss for the year - - (35,876) 2,574 (33,302)
Rental, communication and utilities (53,012) (47,250) (51,276) (45,658) Issue of shares 144 385 - - 529
Transpor tation (108,590) (125,706) (107,531) (121,437) Dividends to shareholders - - (59,589) (59,589)
Maintenance and supplies (46,862) (50,213) (44,111) (47,101) At 31 December 2008/ 1 January 2009 268,513 385 495,557 2,574 767,029
Depreciation of property, plant and equipment (37,589) (29,098) (35,446) (26,964)
Profit for the year - - 75,415 1,296 76,711
Amor tisation of prepaid lease payments (11,366) (11,369) (10,993) (10,977)
Dividends to shareholders - - (40,277) - (40,277)
Other operating expenses (36,936) (36,939) (34,612) (30,910)
Acquisition of minority interest - - - (3,870) (3,870)
Results from operating activities 82,353 86,229 80,143 81,050
At 31 December 2009 268,513 385 530,695 - 799,593
Other operating income
- interest income 12,860 18,919 12,624 17,956 Company RM’000 RM’000 RM’000 RM’000
- others 10,964 12,307 8,462 11,950 At 1 January 2008 268,369 - 516,554 784,923
Write back of / (Allowance for) impairment losses 4,892 (116,098) 1,978 (97,647) Loss for the year - - (18,759) (18,759)
Share of results after tax of equity accounted Issue of shares 144 385 - 529
- (1,043) - -
associate Dividends to shareholders - - (59,589) (59,589)
Finance cost (1,805) (833) (1,802) (831) At 31 December 2008/ 1 January 2009 268,513 385 438,206 707,104
Profit / (Loss) before tax 20 109,264 (519) 101,405 12,478
Tax expense 22 (32,553) (32,783) (32,333) (31,237) Profit for the year - - 69,072 69,072
Profit / (Loss) for the year 76,711 (33,302) 69,072 (18,759) Dividends to shareholders - - (40,277) (40,277)
At 31 December 2009 268,513 385 467,001 735,899
Attributable to:
Equity holders of the Company 75,415 (35,876)
* Share capital includes the Special Rights Redeemable Preference Share of RM1.00.
Minority shareholders 1,296 2,574 Refer to Note 14(b) the financial statements for details of the terms and rights
Profit / (Loss) for the year 76,711 (33,302) attached to Special Rights Redeemable Preference Share.
The accompanying ‘Notes to the financial statement’ are an integral part of these financial statements.
Basic earnings (loss) per ordinary share (sen) 23 14 (6)
POS MALAYSIA ANNUAL REPORT 2009 Cash Flow Statements For The Year
Ended 31 December 2009
2009 2008 2009 2008 2009 2008 2009 2008
Note RM’000 RM’000 RM’000 RM’000 Note RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities
Profit/ (Loss) before tax 109,264 (519) 101,405 12,478 Taxes paid (21,816) (41,790) (21,696) (40,177)
Adjustments for: Net cash generated from operating activities 106,556 94,063 99,955 88,353
Amortisation of premium 561 660 561 660
Cash flows from investing activities
Gain on disposal of unquoted shares (2,602) - - -
Proceeds from disposal of unquoted shares 13,500 - - -
Gain on disposal of marketable securities (620) (4,817) (620) (4,817)
Proceeds from redemption of unquoted private
Depreciation of property, plant and equipment 4 37,589 29,098 35,446 26,964 - 40,000 - 40,000
debt securities
Amortisation of prepaid lease payments 6 11,366 11,369 10,993 10,977 Proceeds from diposal of marketable securities (net) 5,516 24,340 5,516 24,340
Gain on disposal of property, plant & equipment (2,404) (955) (2,404) (975) Proceeds from disposal of property, plant & equipment 2,611 964 2,611 1,003
(Gain)/loss on redemption of unquoted private debt Purchase of proper ty, plant and equipment (i) (71,477) (69,456) (71,861) (65,520)
- (24) - 329
securities
Interest received 12,860 18,919 12,624 17,956
Property, plant and equipment written off - 6 - 6
Net dividend received 149 878 149 878
Prepaid lease payments written off 206 - - -
Increase in investment in a subsidiary 8(a) (8,500) - (8,500) -
Allowance for dimunition in value 10 - 87,032 - 87,032
Net cash (used in)/generated from investing activities (45,341) 15,645 (59,461) 18,657
(Reversal)/write down of quoted shares in Malaysia 10 (2,220) 10,615 (2,220) 10,615
Net (reversal of)/allowance for doubtful debts: Cash flows from financing activities
- trade receivables 12 (1,920) 3,421 (1,884) (98) Issue of new shares - 529 - 529
- other receivables 12 (2,914) 18,451 - - Repayment of hire purchase (8,857) (3,338) (8,844) (3,333)
Interest income (12,860) (18,919) (12,624) (17,956) Interest expense (1,805) (833) (1,802) (831)
Dividend income (149) (1,011) (149) (1,011) Dividends paid (40,277) (59,589) (40,277) (59,589)
Share of results after tax of equity accounted associate - 1,043 - - Net cash used in financing activities (50,939) (63,231) (50,923) (63,224)
Interest expense 1,805 833 1,802 831
Movement in cash and cash equivalents 10,276 46,477 (10,429) 43,786
Operating profit before changes in working capital 135,102 136,283 130,306 125,035
Opening cash and cash equivalents 171,501 125,024 150,899 107,113
Inventories (2,477) (3,030) (1,077) (1,906) Closing cash and cash equivalents 181,777 171,501 140,470 150,899
Receivables, deposits and prepayments 6,331 (42,929) 11,584 (38,889)
Payables and accruals (10,584) 45,529 (19,162) 44,290
Cash generated from operations 128,372 135,853 121,651 128,530
POS MALAYSIA ANNUAL REPORT 2009 Cash Flow Statements For The Year Notes to the Financial Statements
Ended 31 December 2009 (Continued)
Pos Malaysia Berhad is a public limited liability company, 1. BASIS OF PREPARATION
incorporated and domiciled in Malaysia and is listed on
Cash and cash equivalents included in the cash flow statements comprise the following balance sheet amounts: the Main Market of the Bursa Malaysia Securities Berhad. (a) Statement of compliance
The addresses of its registered office and principal place of The financial statements of the Group and of the Company
Group Company business are as follows: have been prepared in accordance with Financial Reporting
2009 2008 2009 2008 Standards (“FRS”), accounting principles generally accepted
Note RM’000 RM’000 RM’000 RM’000 Registered office/Principal place of business and the Companies Act, 1965 in Malaysia.
Level 33, Menara Dayabumi
Cash and bank balances 13 119,219 91,504 87,916 79,656 Jalan Sultan Hishamuddin During the year, the Group has chosen to early adopt
Deposits 13 198,642 508,754 188,638 500,000 50050 Kuala Lumpur FRS 8, Operating Segments, which is effective for annual
317,861 600,258 276,554 579,656 periods beginning 1 July 2009. The accounting policy in
The consolidated financial statements of the Company as at relation to this standard is disclosed in Note 2(s) to the
Less:
and for the year ended 31 December 2009 comprise the financial statements.
Cash held for the purpose of distribution of fuel rebate
(4,257) (309,799) (4,257) (309,799) Company and its subsidiaries (together referred to as the
for the government
Collection on behalf of agency creditors (131,827) (118,958) (131,827) (118,958) Group) and the Group’s interest in associates. The financial The Group and Company have not applied the following
181,777 171,501 140,470 150,899 statements of the Company as at and for the year ended 31 accounting standards, amendments and interpretations
December 2009 do not include other entities. that have been issued by the Malaysian Accounting
(i) Purchase of property, plant and equipment Standards Board (“MASB”) but are not yet effective for
During the year, the Group and Company acquired property, plant and equipment with an aggregate cost of RM78,589,000 The principal activities of the Company during the financial the Group and Company:
(2008 - RM106,764,000) and RM78,973,000 (2008 - RM102,760,000) of which RM7,112,000 (2008 – RM41,466,000) and year are to provide postal and its related services which
RM7,112,000 (2008 - RM41,391,000) respectively, were acquired by means of hire purchase. include receiving and dispatching of postal ar ticles, postal FRSs, Interpretations and amendments effective for
financial services, dealing in philatelic products and sale of annual periods beginning on or after 1 January 2010
The accompanying ‘Notes to the financial statement’ are an integral part of these financial statements. postage stamps. The principal activities of the subsidiaries • FRS 4, Insurance Contracts
and associates are stated in Notes 8 and 9 respectively to • FRS 7, Financial Instruments: Disclosures
the financial statements. • FRS 101, Presentation of Financial Statements (revised)
• FRS 123, Borrowing Costs (revised)
The financial statements were approved by the Board of • FRS 139, Financial Instruments: Recognition and
Directors on 31 March 2010. Measurement
• Amendments to FRS 1, First-time Adoption of Financial
Reporting Standards
• Amendments to FRS 2, Share-based Payment: Vesting
Conditions and Cancellations
POS MALAYSIA ANNUAL REPORT 2009 Notes to the Financial Statements
• Amendments to FRS 7, Financial Instruments: FRSs, Interpretations and amendments effective for annual FRSs, Interpretations and amendments effective for annual The impacts and disclosures as required by FRS 108.30(b),
Disclosures periods beginning on or after 1 March 2010 periods beginning on or after 1 January 2011 Accounting Policies, changes in Accounting Estimates and Errors,
• Amendments of FRS 101, Presentation of Financial • Amendments to FRS 132, Financial Instruments: • Amendments to FRS 1, First-time Adoption of Financial in respect of applying FRS 7 and FRS 139 are not disclosed by
Statements - Puttable Financial Instruments and Presentation - Classification of Rights Issues Repor ting Standards- Limited Exemption from vir tue of the exemptions given in these respective FRSs.
Obligations Arising on Liquidation Material impact of initial application of a standard, an
Comparative FRS 7 Disclosures for First-time Adopters
• Amendments to FRS 127, Consolidated and Separate FRSs, Interpretations and amendments effective for annual amendment or an interpretation, which will be applied
• Amendments to FRS 7, Financial Instruments: Disclosures-
Financial Statements: Cost of an Investment in a periods beginning on or after 1 July 2010 retrospectively, is disclosed below:
Subsidiary, Jointly Controlled Entity or Associate Improving Disclosures about Financial Instruments
• FRS 1, First-time Adoption of Financial Repor ting FRS 117, Leases
• Amendments to FRS 132, Financial Instruments: Standards (revised) The amendments clarify that the classification of lease of
Presentation - Puttable Financial Instruments and The Group and Company plans to apply the abovementioned
• FRS 3, Business Combinations (revised) land and require entities with existing leases of land and
Obligations Arising on Liquidation Separation of standards, amendments and interpretations:
• FRS 127, Consolidated and Separate Financial Statements buildings to reassess the classification of land as finance
Compound Instruments • from the annual period beginning 1 January 2010 for those
(revised) or operating lease. Leasehold land which in substance is
• Amendments to FRS 139, Financial Instruments: standards, amendments or interpretations that will be
• Amendments to FRS 2, Share-based Payment a finance lease will be reclassified to proper ty, plant and
Recognition and Measurement - Reclassification of effective for annual periods beginning on or after 1 January
• Amendments to FRS 5, Non-current Assets Held for equipment. The adoption of these amendments will result
Financial Assets 2010, except for FRS 4, 123 and IC interpretation 9, 11,
Sale and Discontinued Operations in a change in accounting policy which will be applied
• Collective Assessment of Impairment for Banking 13 and 14 which are not applicable to the Group and
• Amendments to FRS 138, Intangible Assets retrospectively in accordance with the transitional
Institutions Company; and
• IC Interpretation 12, Service Concession Agreements provisions. This change in accounting policy will result
• Improvements to FRSs (2009) • IC Interpretation 15, Agreements for the Construction in reclassification of lease of land for the Group and
• IC Interpretation 9, Reassessment of Embedded • from the annual period beginning 1 January 2011 for
of Real Estate Company from prepaid lease payments to property, plant
Derivatives those standards, amendments or interpretations that will
• IC Interpretation 16, Hedges of a Net Investment in a and equipment.
• IC Interpretation 10, Interim Financial Reporting and be effective for annual periods beginning on or after 1
Foreign Operation
Impairment March 2010, 1 July 2010 and 1 January 2011 except for
• IC Interpretation 17, Distribution of Non-cash Assets (b) Basis of measurement
• IC Interpretation 11, FRS 2 - Group and Treasur y Amendments to FRS 5, IC Interpretations 12,15,16 and
to Owners The financial statements have been prepared on the
Share Transactions 17 and Amendments to IC interpretation 9 which are
• Amendments to IC Interpretation 9, Reassessment of historical cost basis except as disclosed in the notes to
• IC Interpretation 13, Customer Loyalty Programmes not applicable to the Group and Company.
Embedded Derivatives the financial statements.
• IC Interpretation 14, FRS 119 - The Limit on a Defined
Benefit Asset, Minimum Funding Requirements and The initial application of a standard, an amendment or an
(c) Functional and presentation currency
Their Interaction interpretation, which will be applied prospectively, is not
expected to have any financial impacts to the current and These financial statements are presented in Ringgit
prior periods financial statements upon their first adoption. Malaysia (“RM”), which is the Company’s functional
currency. All financial information presented in RM 2. SIGNIFICANT ACCOUNTING POLICIES (ii) Associates
has been rounded to the nearest thousand, unless Associates are entities, including unincorporated entities, price has been established at fair value, the reduction in
otherwise stated. The accounting policies set out below have been applied in which the Group has significant influence, but not the Group’s interests in the subsidiary is accounted for
consistently to the periods presented in these financial control, over the financial and operating policies. as a disposal of equity interest with the corresponding
(d) Use of estimates and judgements statements, and have been applied consistently by Group gain or loss recognised in the income statements.
The preparation of financial statements in conformity entities, except for the early adoption of FRS 8, Operating Associates are accounted for in the consolidated
with FRSs requires management to make judgements, Segments as disclosed in Note 2 (s). financial statements using the equity method unless it When a group purchases a subsidiary’s equity shares
estimates and assumptions that affect the application of is classified as held for sale (or included in a disposal from minority interests for cash consideration and the
accounting policies and the reported amounts of assets, (a) Basis of consolidation group that is classified as held for sale).The consolidated purchase price has been established at fair value, the
liabilities, income and expenses. Actual results may differ financial statements include the Group’s share of the accretion of the Group’s interests in the subsidiary
from these estimates. (i) Subsidiaries profit or loss of the equity accounted associates, after is accounted for as a purchase of equity interest for
Subsidiaries are entities, including unincorporated adjustments, if any, to align the accounting policies which the acquisition method of accounting is applied.
Estimates and underlying assumptions are reviewed on entities, controlled by the Group. Control exists when with those of the Group, from the date that significant
an ongoing basis. Revisions to accounting estimates are the Group has ability to exercise its power to govern influence commences until the date that significant The Group treats all other changes in group
recognised in the period in which the estimate is revised the financial and operating policies of an entity so as to influence ceases. composition as equity transactions between the
and in any future periods affected. obtain benefits from its activities. In assessing control, Group and its minority shareholders. Any difference
potential voting rights that presently are exercisable When the Group’s share of losses exceeds its interest between the Group’s share of net assets before and
There are no significant areas of estimation uncertainty are taken into account. Subsidiaries are consolidated in an equity accounted associate, the carrying amount after the change, and any consideration received or
and critical judgements in applying accounting policies using the purchase method of accounting. of that interest (including any long-term investments) paid, is adjusted to or against Group reserves.
that have significant effect on the amounts recognised is reduced to nil and the recognition of fur ther losses
in the financial statements other than those disclosed in Under the purchase method of accounting, the is discontinued except to the extent that the Group (iv) Minority interest
the following notes: financial statements of subsidiaries are included in the has an obligation or has made payments on behalf of Minority interest at the balance sheet date, being the
consolidated financial statements from the date that the investee. por tion of the net identifiable assets of subsidiaries
measurement of the recoverable control commences until the date that control ceases. attributable to equity interests that are not owned by
Note 5 Investments in associates are stated in the Company’s
amounts of cash-generating units the Company, whether directly or indirectly through
Investments in subsidiaries are stated in the Company’s balance sheet at cost less any impairment losses, unless
Note 7 valuation of investment properties subsidiaries, are presented in the consolidated balance
balance sheet at cost less any impairment losses, unless the investment is classified as held for sale (or included
in a disposal group that is classified as held for sale). sheet and statement of changes in equity within equity,
recognition of unutilised tax losses and the investment is classified as held for sale (or included
Note 16 separately from equity attributable to the equity holders
capital allowances in a disposal group that is classified as held for sale).
(iii) Changes in Group composition of the Company. Minority interest in the results of the
Where a subsidiary issues new equity shares to Group are presented on the face of the consolidated
minority interests for cash consideration and the issue income statement as an allocation of the total profit
or loss for the year between minority interest and the (b) Foreign currency Cost includes expenditures that are directly Gains and losses on disposal of an item of property,
equity holders of the Company. attributable to the acquisition of the asset and any plant and equipment are determined by comparing the
Foreign currency transactions other costs directly attributable to bringing the asset proceeds from disposal with the carrying amount of
Where losses applicable to the minority exceed the Transactions in foreign currencies are translated to the to working condition for its intended use, and the costs proper ty, plant and equipment and are recognised net
minority’s interest in the equity of the subsidiary, the respective functional currencies of the Group entities at of dismantling and removing the items and restoring within “other income” or “other operating expenses”
excess, and any further losses applicable to the minority, exchange rates at the dates of the transactions. the site on which they are located. The cost of self- respectively in the income statements.
are charged against the Group’s interest except to the constructed assets also includes the cost of materials
extent that the minority has a binding obligation to, Monetary assets and liabilities denominated in foreign and direct labour and, for qualifying assets, borrowing (ii) Subsequent costs
and is able to, make additional investment to cover the currencies at the balance sheet date are retranslated costs are capitalised in accordance with the Group’s The cost of replacing part of an item of property, plant
loses. If the subsidiary subsequently reports profits, the to the functional currency at the exchange rate at that accounting policy. Purchased software that is integral to and equipment is recognised in the carrying amount of
Group’s interest is allocated with all such profits until date. Non-monetar y assets and liabilities denominated the functionality of the related equipment is capitalised the item if it is probable that the future economic benefits
the minority’s share of losses previously absorbed by in foreign currencies are translated at exchange rates as par t of that equipment. embodied within the part will flow to the Group and its
the Group has been recovered. at the dates of the transactions except for those cost can be measured reliably. The carrying amount of
transactions that are measured at fair value, which are The cost of proper ty, plant and equipment recognised the replaced part is derecognised. The costs of the day-
(v)Transactions eliminated on consolidation retranslated to the functional currency at the exchange as a result of a business combination is based on fair to-day servicing of property, plant and equipment are
Intra-group balances and transactions, and any rate at the date that the fair value was determined. value at acquisition date. The fair value of proper ty is recognised in the income statement as incurred.
unrealised income and expenses arising from intra- Foreign currency differences arising on retranslation are the estimated amount for which a proper ty could be
group transactions, are eliminated in preparing the recognised in the income statements. exchanged between a willing buyer and a willing seller (iii) Depreciation
consolidated financial statements. in an arm’s length transaction after proper marketing Depreciation is recognised in the income statement on
(c) Property, plant and equipment wherein the par ties had each acted knowledgeably, a straight-line basis over the estimated useful lives of
Unrealised gains arising from transactions with equity prudently and without compulsion. The fair value of each par t of an item of property, plant and equipment.
accounted investees are eliminated against the (i) Recognition and measurement other items of plant and equipment is based on the Leased assets are depreciated over the shor ter of the
investment to the extent of the Group’s interest in the Freehold land and capital work-in-progress are stated quoted market prices for similar items. lease term and their useful lives unless it is reasonably
investee. Unrealised losses are eliminated in the same at cost. All other property, plant and equipment are cer tain that the Group will obtain ownership by the
way as unrealised gains, but only to the extent that stated at cost less accumulated depreciation and any When significant par ts of an item of proper ty, plant end of the lease term. Freehold land and capital work-
there is no evidence of impairment. accumulated impairment losses. and equipment have different useful lives, they are in-progress are not depreciated. Proper ty, plant and
accounted for as separate items (major components) equipment under construction are not depreciated
of proper ty, plant and equipment. until the assets are ready for their intended use.
(iii)Depreciation (continued) (e) Hire purchase liabilities

Motor vehicles acquired under hire purchase arrangement securities and non-current debt securities other than
The estimated useful lives for the current and comparative periods are as follows: are capitalised at their purchase cost and depreciated investment in subsidiaries and associates, the allowance
on the same basis as owned assets. The corresponding for diminution in value is recognised as an expense in the
Buildings 50 years obligations relating to the remaining capital payments financial year in which the decline is identified.
Building improvements and office renovations 2 - 10 years are treated as a liability. The interest element of the hire
Plant and machinery 10 - 20 years purchase agreements is amor tised over the period of the On disposal of an investment, the difference between net
Motor vehicles 5 years agreements on the sum of digits method. disposal proceeds and its carrying amount is recognised
Furniture and fittings, office and computer equipment 3 - 10 years in the income statement.
(f) Other investments - debt and equity securities
Depreciation methods, useful lives and residual values are reassessed at the balance sheet date. Investments in debt and equity securities are recognised All investments in debt and equity securities are accounted
initially at fair value plus attributable transaction costs. for using settlement date accounting. Settlement date
accounting refers to:
(d) Operating lease
Leases where the Group or the Company does not assume Payment made on entering into or acquiring a leasehold Subsequent to initial recognition:
a. the recognition of an asset on the day it is received
substantially all the risks and rewards of the ownership land is accounted for as prepaid lease payments, except • Investments in non-current equity securities other
by the entity, and
for leasehold land classified as investment property. than investments in subsidiaries and associates, are
are classified as operating leases and, except for property b. the de-recognition on an asset and recognition of any
stated at cost less allowance for diminution in value,
interest held under operating lease, the leased assets are gain or loss on disposal on the date it is delivered.
Payments made under operating leases are recognised • Investments in non-current debt securities are
not recognised on the Group’s balance sheet. Property stated at amor tised cost using the effective interest
in the income statements on a straight-line basis over
(g) Investment properties
interest held under an operating lease, which is held to the term of the lease. Lease incentives received are method less allowance for diminution in value,
Investment proper ties are proper ties which are owned
earn rental income or for capital appreciation or both, is recognised as an integral part of the total lease expense, • All current investments are carried at the lower of
or held under a leasehold interest to earn rental income
classified as investment property. over the term of the lease. cost and market value, determined on an aggregate
or for capital appreciation or for both. These include land
por tfolio basis by category of investments
held for a currently undetermined future use. Proper ties
Leasehold land that normally has an indefinite economic that are occupied by the companies in the Group
Long term investment in subsidiaries and associates are
life and title is not expected to pass to the lessee by the are accounted for as owner-occupied rather than as
stated at cost in the Company, less any accumulated
end of the lease term is treated as an operating lease. investment proper ties. Investment proper ties are stated
impairment losses.
at fair value and gains and losses are recognised in the
profit and loss in the year which they arise.
Where in the opinion of the Directors, there is a decline
other than temporary in the value of non-current equity
The fair values of the investment properties determined liabilities over the cost of acquisition is recognised (j) Receivables
by Jabatan Penilaian dan Perkhidmatan Harta (“JPPH”) are immediately in profit or loss. Receivables are initially recognised at their cost when The recoverable amount of an asset or cash-generating
based on market values, being the estimated amount for the contractual right to receive cash or another financial unit is the greater of its value in use and its fair value
which a property could be exchanged on the date of the Goodwill is not amortised but is tested for impairment asset from another entity is established. less costs to sell. In assessing value in use, the estimated
valuation between a willing buyer and a willing seller in an at each balance sheet date and whenever there is an future cash flows are discounted to their present value
arm’s length transaction after proper marketing wherein indication that goodwill may be impaired. Subsequent to initial recognition, receivables are stated using a pre-tax discount rate that reflects current market
the par ties had each acted knowledgeably, prudently and at cost less allowance for doubtful debts. assessments of the time value of money and the risks
without compulsion. (i) Inventories specific to the asset. For the purpose of impairment testing,
Inventories are measured at the lower of cost and net Receivables are not held for the purpose of trading. assets are grouped together into the smallest group of
Valuations reflect, where appropriate, the type of realisable value. Net realisable value is the estimated assets that generates cash inflows from continuing use
tenants actually in occupation or responsible for meeting selling price in the ordinary course of business, less the that are largely independent of the cash inflows of other
(k) Cash and cash equivalents
lease commitments or likely to be in occupation after estimated costs of completion and the estimated costs assets or groups of assets (the “cash-generating unit”).
Cash and cash equivalents consist of cash on hand,
letting vacant accommodation, and the market’s general necessary to make the sale. The goodwill acquired in a business combination, for
balances and deposits with banks and highly liquid
perception of their creditworthiness; the allocation of the purpose of impairment testing, is allocated to cash-
investments which have an insignificant risk of changes
maintenance and insurance responsibilities between the Inventories comprise mainly uniforms for postmen, generating units that are expected to benefit from the
in value.
Group and the lessee; and the remaining economic life insertion and mailing materials, digital certificates and Pos synergies of the combination.
of the proper ty. When rent reviews or lease renewals 2020 merchandise. The cost of inventories is determined
For the purpose of the cash flow statements, cash and
are pending with anticipated reversionary increases, on a weighted average basis. An impairment loss is recognised if the carrying
cash equivalents are presented net of cash held for the
it is assumed that all notices and where appropriate amount of an asset or its cash-generating unit exceeds
purpose of distribution of fuel rebate for the government
counter-notices have been served validly and within the Expenditure on the production of postage stamps is its recoverable amount unless the asset is carried at a
appropriate time. and collections on behalf of agency creditors.
expensed off in the financial year in which it is incurred revalued amount, in which case the impairment loss is
and therefore no value for stamps on hand at balance recognised directly against any revaluation surplus for
(h) Intangible asset sheet date is shown in the financial statements. However, (l) Impairment of assets the asset to the extent that the impairment loss does
Goodwill arises on business combination is measured at for internal control purposes, inventories of postage The carrying amount of assets, except for inventories, not exceed the amount in the revaluation surplus for
cost less any accumulated impairment losses. Goodwill stamps are accounted for at face value within a dedicated deferred tax assets and financial assets, are reviewed at that same asset. Impairment losses are recognised in
represents the excess of the cost of the acquisition over accounting sub-system. each repor ting date to determine whether there is any the income statements. Impairment losses recognised in
the Group’s interest in the fair value of the identifiable indication of impairment. If any such indication exists, the respect of cash-generating units are allocated first to reduce
assets, liabilities and contingent liabilities of the acquiree. asset’s recoverable amount is estimated. For goodwill, the the carrying amount of any goodwill allocated to the units
recoverable amount is estimated at each balance sheet and then to reduce the carrying amount of the other assets
Any excess of the Group’s interest in the net fair value date and whenever there is an indication that goodwill in the unit (groups of units) on a pro rata basis.
of acquiree’s identifiable assets, liabilities and contingent maybe impaired.
An impairment loss in respect of goodwill is not reversed. if dividend payments are not discretionary. Dividends estimated reliably.
In respect of other assets, impairment losses recognised thereon are recognised as interest expense in the Printing and insertion services
in prior periods are assessed at each repor ting date income statements. Revenue is recognised upon provision of services, net of The Group’s contribution to the Employees’ Provident
for any indications that the loss has decreased or no sales taxes and discounts. Fund are charged to the income statements in the year
longer exists. An impairment loss is reversed if there (n) Payables to which they relate. Once the contributions have been
has been a change in the estimates used to determine Payables are measured initially and subsequently at cost. Sale of digital certificates paid, the Group has no fur ther payment obligations.
the recoverable amount. An impairment loss is reversed Payables are recognised when there is a contractual Revenue from the sales of digital cer tificates is recognised
only to the extent that the asset’s carrying amount obligation to deliver cash or another financial asset to progressively over the life of the digital cer tificates that (q) Tax expense
does not exceed the carrying amount that would have another entity. can be used which ranges from twelve (12) to thir ty six
Tax expense comprises current and deferred tax. Tax
been determined, net of depreciation or amortisation, (36) months.
expense is recognised in the income statements except
if no impairment loss had been recognised. Reversals of (o) Revenue recognition to the extent that it relates to items recognised directly
impairment losses are credited to the income statement Other operating income
Postal and its related services in equity, in which case it is recognised in equity.
in the year in which the reversals are recognised. Interest income:
Interest income is recognised as it accrues, using the
Postage, prepaid mail and courier revenue Current tax is the expected tax payable on the
(m) Equity instruments effective interest method.
Postage, prepaid mail and courier revenue on demand taxable income for the year, using tax rates enacted or
All equity instruments are stated at cost on initial are recognised in the income statement at point of sale. Dividend income: substantively enacted at the balance sheet date, and any
recognition and are not re-assessed subsequently. No provision is made in the financial statements for any Dividend income is recognised when the right to receive adjustment to tax payable in respect of previous years.
unearned revenue as at balance sheet date in respect of payment is established.
(i) Issue expenses which the related postal service that has not yet been Deferred tax is recognised using the balance sheet
Incremental costs directly attributable to issue of equity provided as the amount is not material. (p) Employee benefits method, providing for temporary differences between
instruments are recognised as a deduction from equity. Short term employee benefits the carrying amounts of assets and liabilities for reporting
Courier revenue on contract is recognised upon Shor t-term employee benefit obligations in respect purposes and the amounts used for taxation purposes.
(ii) Preference share capital performance of the services. of salaries, annual bonuses, paid annual leave and sick Deferred tax is not recognised for the following
Preference share capital is classified as equity if leave are measured on an undiscounted basis and are temporary differences: the initial recognition of goodwill,
Commission revenue on remittances and agency services
it is non-redeemable, or is redeemable but only expensed as the related service is provided. the initial recognition of assets or liabilities in a transaction
Commission revenue on remittances and agency services
at the Company’s option, and any dividends are that is not a business combination and that affects neither
are recognised in the income statement upon the
discretionary. Dividends thereon are recognised as A provision is recognised for the amount expected to accounting nor taxable profit (tax loss). Deferred tax is
performance of services.
distributions within equity. Preference share capital be paid under shor t-term cash bonus or profit-sharing measured at the tax rates that are expected to be applied
is classified as a liability if it is redeemable on a International mail revenue plans if the Group has a present legal or constructive to the temporary differences when they reverse, based on
specific date or at the option of the shareholders, or Revenue from incoming international mail is recognised in obligation to pay this amount as a result of past service the laws that have been enacted or substantively enacted
the income statement upon performance of services. provided by the employee and the obligation can be by the balance sheet date.
Deferred tax liability is recognised for all taxable (s) Operating Segments 3. VESTING OF BUSINESS
temporar y differences. In the previous years, a segment was a distinguishable
component of the Group that was engaged either in
On 1 Januar y 1992, all proper ty, rights and liabilities, other
A deferred tax asset is recognised to the extent providing products or ser vices (business segment), or
than land and buildings and cer tain assets, to which Jabatan
that it is probable that future taxable profits will be in providing products or ser vices within a par ticular
Perkhidmatan Pos Malaysia (“JPPM”) was entitled or subject
available against which temporar y difference can be economic environment (geographical segment), which
to immediately before that vesting date, became the
utilised. Deferred tax assets are reviewed at each was subject to risks and rewards that were different
proper ty, rights and liabilities of the Company by vir tue of
repor ting date and are reduced to the extent that it from those of other segments.
Section 3 of the Postal Ser vices (Successor Company) Act
is no longer probable that the related tax benefit will
1991. The value of assets and the amount of liabilities of
be realised. Following the early adoption of FRS 8, Operating
JPPM transferred to and vested in the Company were those
Segments, an operating segment is a component of the
stated in the financial statements of JPPM as at 31 December
(r) Earnings per share Group that engages in business activities from which
1991. In accordance with Section 7(4) of the said Act, for
The Group presents basic earnings per share (“EPS”) data it may earn revenues and incur expenses, including
the purposes of any statutory financial statements of the
for its ordinary shares. Basic EPS is calculated by dividing revenues and expenses that relate to transactions with
Group and Company, the amount to be included in respect
the profit or loss attributable to ordinary shareholders any of the Group’s other components. An operating
of any item shall be determined as if anything done by JPPM
of the Company by the weighted average number of segment’s operating results are reviewed regularly by
whether by way of acquiring, revaluing or disposing of any
ordinary shares outstanding during the period. the chief operating decision maker, which in this case
assets or incurring, revaluing or discharging any liability, or
is the Managing Director, Chief Executive Officer of
by carr ying any amount to any provision of reser ve, or
the Group, to make decision about resources to be
otherwise, had been done by the Company.
allocated to the segments and assess its performance
and for which discrete financial information is available.
4. PROPERTY, PLANT AND EQUIPMENT
Furniture and
Building fittings, office
improvements Plant and Motor and computer Capital work-in
Group Freehold land Buildings and Renovations machinery vehicles equipment progress Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2008 2,276 35,114 81,468 33,281 100,064 105,570 27,793 385,566
Additions - - 1,426 11 25,092 7,032 73,203 106,764
Disposals - - - - (4,638) (428) - (5,066)
Reclassifications - - - (724) - 724 - -
Reclassified from prepaid lease payments - - 284 - - - - 284
Transfers - - 3,634 1,041 18,072 22,169 (44,916) -
Transferred to prepaid lease payments - - - - - - (1,851) (1,851)
Written off - - (33,916) (14,836) (92) (8,377) - (57,221)
At 31 December 2008/ 1 January 2009 2,276 35,114 52,896 18,773 138,498 126,690 54,229 428,476
Additions - - 1,965 31 5,642 4,073 66,878 78,589

Disposals - - - - (12,820) (1,093) - (13,913)
Transfers - - 33,583 - 3,678 15,291 (52,552) -
Written off - - - - (5) - - (5)
At 31 December 2009 2,276 35,114 88,444 18,804 134,993 144,961 68,555 493,147
4. PROPERTY, PLANT AND EQUIPMENT (continued)
Furniture and
Group Freehold land Buildings and Renovations machinery vehicles equipment progress Total
Depreciation
At January 2008 - 6,543 55,917 27,925 75,165 63,140 - 228,690
Depreciation for the year - 693 4,232 672 11,306 12,195 - 29,098
Disposals - - - - (4,648) (409) - (5,057)
Reclassifications - - - (552) - 552 - -
Reclassified from prepaid lease payments - - 59 - - - - 59
Written off - - (33,916) (14,836) (92) (8,371) - (57,215)
At 31 December 2008/ 1 January 2009 - 7,236 26,292 13,209 81,731 67,107 - 195,575
Disposals - - - - (12,736) (970) - (13,706)
Written off - - - - (5) - - (5)
At 31 December 2009 - 7,929 30,708 13,898 85,638 81,280 - 219,453
Carrying amounts
At 1 January 2008 2,276 28,571 25,551 5,356 24,899 42,430 27,793 156,876
At 31 December 2009 2,276 27,185 57,736 4,906 49,355 63,681 68,555 273,694
Furniture and
Company Freehold land Buildings and Renovations machinery vehicles equipment progress Total
Cost
At 1 January 2008 2,276 25,718 76,993 20,035 99,130 89,131 27,464 340,747
Additions - - 421 11 25,016 5,032 72,280 102,760
Disposals - - - - (4,505) (428) - (4,933)
Transfers - - 3,634 1,041 18,072 22,169 (44,916) -
Transferred to prepaid lease payments - - - - - - (1,800) (1,800)
Written off - - (33,916) (14,836) - (7,795) - (56,547)
Additions - - 1,541 25 5,642 3,773 67,992 78,973

Disposals - - - - (12,820) (1,093) - (13,913)
Transfers - - 33,583 - 3,678 15,132 (52,393) -
At 31 December 2009 2,276 25,718 82,256 6,276 134,213 125,921 68,627 445,287
Furniture and
Company Freehold land Buildings and Renovations machinery vehicles equipment progress Total
Depreciation
At 1 January 2008 - 4,732 54,365 17,336 74,369 50,228 - 201,030
Disposals - - - - (4,503) (402) - (4,905)
Written off - - (33,916) (14,836) - (7,789) - (56,541)
At 31 December 2008/ 1 January 2009 - 5,236 24,312 3,026 81,122 52,852 - 166,548
Disposals - - - - (12,736) (970) - (13,706)
At 31 December 2009 - 5,740 28,387 3,568 84,990 65,603 - 188,288
Carrying amounts
At 1 January 2008 2,276 20,986 22,628 2,699 24,761 38,903 27,464 139,717
At 31 December 2009 2,276 19,978 53,869 2,708 49,223 60,318 68,627 256,999
The Group and Company obtained Financing on motor vehicles amounting to RM34,583000 (2008- RM41,466,000) and
RM34,529,000 (2008- RM41,391,000) under hire purchase arrangements.
The title deeds for certain freehold land with carrying value amounting to RM842,000 (2008- RM846,000) have yet to be issued
in the name of the Company as at 31 December 2009 by the relevant authorities.
The cost of fully depreciated assets which are still in use by the Group and Company is RM100,144,000 (2008- RM103,805,000)
and RM80,555,000 (2008- RM84,835,000) respectively.
5. INTANGIBLE ASSET 6. PREPAID LEASE PAYMENTS
Group Goodwill
RM’000 Government
Cost Leasehold land leasehold land
Group and buildings and buildings Total
At 1 January 2008 -
RM’000 RM’000 RM’000
Acquisitions of minority interests 4,630
Cost
As at 1 January 2009/ 31 December 2009 4,630
At 1 January 2008 184,106 210,799 394,905
Amor tisation and impairment losses Transfered from capital work-in-progress 1,851 - 1,851
As at 1 January 2009/ 31 December 2009 - Reclassified to proper ty, plant and equipment (284) - (284)
At 31 December 2008/ 1 January 2009 185,673 210,799 396,472
Carrying amount
At 31 December 2007/ 1 January 2008 - Written off (206) - (206)
At 31 December 2009 4,630 At 31 December 2009 185,467 210,799 396,266
Amor tisation
Impairment testing for goodwill
At 1 January 2008 29,278 82,177 111,455
For the purpose of impairment testing, goodwill is allocated to the subsidiary acquired which represents the lowest level within
Amor tisation during the year 2,230 9,139 11,369
the Group at which the goodwill is monitored for internal management purposes.
Reclassified to proper ty, plant and equipment (59) - (59)
The Goodwill impairment test was based on value in use and was determined by the Management. At 31 December 2008/ 1 January 2009 31,449 91,316 122,765
Value in use was determined by discounting future cash flows generated from the continuing use of the subsidiary and was based Amor tisation during the year 2,022 9,344 11,366
on the following key assumptions: At 31 December 2009 33,471 100,660 134,131
• Cash flows were projected based on actual Earnings before Interest, Tax, Depreciation and Amortisation (“EBITDA”) and a 5
Carrying amounts
year business plan.
At 1 January 2008 154,828 128,622 283,450
• EBITDA for 2010 – 2014 was projected based on actual EBITDA for 2009. The anticipated annual growth rate was 5% per
annum for the years 2010 – 2014. At 31 December 2008/ 1 January 2009 154,224 119,483 273,707
• A pre-tax discount rate of 7.5% was applied in determining the recoverable amount of the subsidiary. This discount rate was At 31 December 2009 151,996 110,139 262,135
estimated based on the Group’s weighted average cost of capital.
The values assigned to the key assumptions represent management’s assessment of future trends in the Group and subsidiary’s
principal activities and are based on internal sources.
6. PREPAID LEASE PAYMENTS (continued) 6. PREPAID LEASE PAYMENTS (continued)
Government a. The cost and carrying value of cer tain leasehold land and government leasehold land is not segregated from the cost and
Leasehold land leasehold land carrying value of the buildings as the required information are not available from the sales and purchase agreements.
Company and buildings and buildings Total
RM’000 RM’000 RM’000 Similarly, information on unexpired lease period of less than fifty (50) years and of more than fifty (50) years is not available.
Cost
At 1 January 2008 99,585 210,799 310,384 b. The title deeds for cer tain landed proper ties with net carrying value amounting to RM9,379,000 (2008 - RM9,610,000) have
Transfered from capital work-in-progress 1,800 - 1,800 yet to be issued in the name of the Company as at 31 December 2009 by the relevant authorities.
At 31 December 2008/ 1 January 2009/ 31 December 2009 101,385 210,799 312,184
c. Government leasehold land and buildings:
Amor tisation
At 1 January 2008 24,986 82,814 107,800
i. Government leasehold land and buildings of RM210,799,000 (2008 - RM210,799,000) are for a lease period of sixty
Amor tisation during the year 1,838 9,139 10,977
(60) years commencing from 1 January 1992, the vesting date as stated in Note 3 to the financial statements.The cost
At 31 December 2008/ 1 January 2009 26,824 91,953 118,777
capitalised is in respect of the lease for the first thir ty (30) years period as stipulated in the agreement signed between
Amor tisation during the year 1,286 9,707 10,993 the Company and the Government. The cost in respect of the remaining thir ty (30) years lease period has not been
At 31 December 2009 28,110 101,660 129,770 agreed. However, this cost will be agreed upon finalisation of the agreement with the authorities, no later than 31
December 2020, and thereafter will be recognised accordingly.
Carrying amounts
At 1 January 2008 74,599 127,985 202,584 ii. The Company is also in the process of finalising lease agreements with the authorities for additional Government
At 31 December 2008/ 1 January 2009 74,561 118,846 193,407 leasehold land and buildings currently used by the Company, which are at present carried at nil values in the financial
At 31 December 2009 73,275 109,139 182,414 statements in the absence of Government valuation for these proper ties.These Government leasehold land and buildings
will be recognised in the financial statements upon the valuations being finalised by the authorities.
7. INVESTMENT PROPERTIES 8. INVESTMENT IN SUBSIDIARIES (continued)
Group Details of the subsidiaries are as follows:

2009 2008
RM’000 RM’000 Country of Effective
Group Name of subsidiary incorporation Principal activities ownership interest
At 1 January & 31 December 15,071 15,071 2009(%) 2008(%)
Printing and inser tion of documents
Included in the above are: Datapos (M) Sdn. Bhd. Malaysia 100 100
for mailing
Freehold Land 3,311 3,311
Digicer t Sdn. Bhd. Malaysia Sale of digital cer tificates 100 55
Leasehold land 11,760 11,760
Pos Takaful Agency Sdn. Bhd. Malaysia Dormant 100 100
15,071 15,071
Poslaju (M) Sdn. Bhd. Malaysia Dormant 100 100
Pos Logistics-Fulserve Sdn. Bhd. ** Malaysia Dormant 100 100
The carrying amount of investment properties at the balance sheet date approximated their fair values.
Vir tual Pos Sdn. Bhd. ** Malaysia Dormant 100 100
Philately Pos Malaysia Sdn. Bhd. ** Malaysia Dormant 100 100
Pos Malaysia & Services Holdings Berhad Malaysia Investment holding 100 100
8. INVESTMENTS IN SUBSIDIARIES
PSH Capital Par tners Sdn. Bhd. Malaysia Investment holding 100 100
PSH Venture Capital Sdn. Bhd. Malaysia Investment holding 100 100
Company
PSH Management Sdn. Bhd. ** Malaysia Dormant 100 100
2009 2008
PSH Proper ties Sdn. Bhd. Malaysia Proper ty investment 100 100
RM’000 RM’000
PSH Merchandise Sdn. Bhd. ** Malaysia Dormant 100 100
PSH Allied Berhad Malaysia Dormant 100 100
Unquoted shares, at cost 43,990 35,490
PMB Proper ties Sdn. Bhd. Malaysia Proper ty investment 100 100
Less Accumulated Impairment losses (2,706) (2,706)
41,284 32,784 Held by PSH Capital Partners Sdn. Bhd.
Prestige Future Sdn. Bhd. Malaysia Dormant 100 100
Held by PSH Properties Sdn. Bhd.

Real Riviera Sdn. Bhd. Malaysia Proper ty investment 100 100
Effivation Sdn. Bhd. Malaysia Proper ty investment 100 100
8. INVESTMENT IN SUBSIDIARIES (continued) 9. INVESTMENT IN ASSOCIATES
Country of Effective Group Company

Name of subsidiary incorporation Principal activities ownership interest 2009 2008 2009 2008
2009(%) 2008(%) RM’000 RM’000 RM’000 RM’000
Held by PSH Venture Capital Sdn. Bhd.
PSH Express Sdn. Bhd. Malaysia Air courier services & fulfilment business 100 100 Unquoted shares, at cost 7,650 7,650 7,650 7,650
Less: Impairment losses (7,650) (7,650) (7,650) (7,650)
Held by Pos Malaysia & Services Holdings Berhad
PSH Investment Holding (BVI) Ltd.* British Virgin Islands Dormant 100 100 The Group discontinued equity accounting of loss in associates as the loss already exceeded the carr ying amount of the
investment. As at 31 December 2009, the share of loss profits in those associates for the financial year and share of loss
cumulatively not accounted for was a profit of RM1,870,000 (2008 - a loss of RM4,839,000) and RM37,950,000 (2008 -
RM39,820,000) respectively.
Effective
* The investment in PSH Investment Holding (BVI) Ltd. has been consolidated based on the management financial statements Country of Ownership Revenue Profit /(Loss) Total assets Total liabilities
for the financial year ended 31 December 2009 as a statutory audit is not required in the British Virgin Islands. Group incorporation Interest (100%) (100%) (100%) (100%)
2009 RM’000 RM’000 RM’000 RM’000
** In the process of striking-off from the register of the Companies Commission of Malaysia Elpos Print Sdn. Bhd Malaysia 40.0 10,095 37 7,896 12,387
CEN Sdn. Bhd Malaysia 42.5 21,727 4,371 13,794 67,178
Pospay Exchange Sdn. Bhd Malaysia 50.0 - (7) 2,780 3,292
(a) During the year, the Company entered into a Share Sale Agreement with MIMOS Berhad to acquire 4,050,000 ordinary shares 31,822 4,401 24,470 82,857
of RM1.00 each in Digicert Sdn Bhd (“Digicert”) representing 45% of the issued and paid-up share capital of Digicert for a cash
consideration of RM8,500,000. Subsequently, Digicert became a wholly owned subsidiary of the Company. 2008
Elpos Print Sdn. Bhd Malaysia 40.0 11,745 888 8,578 13,106
CEN Sdn. Bhd Malaysia 42.5 69,159 (12,292) 22,969 80,714
Pospay Exchange Sdn. Bhd Malaysia 50.0 25 (1,407) 2,781 5,443
80,929 (12,811) 34,328 99,263
10. OTHER INVESTMENTS 10. OTHER INVESTMENTS (continued)
Group Company
2009 2008 2009 2008 During the year, the Group disposed off its investments in unquoted shares for a cash consideration of RM13,500,000
RM’000 RM’000 RM’000 RM’000 (2008-Nil).
Non-current
Quoted shares in Malaysia, at cost 249,562 249,562 357,343 357,343 During the year, the Group and Company disposed off quoted shares for a cash consideration of RM5,516,000 (2008-
Less: Dimunition in value (227,703) (227,703) (335,484) (335,484) RM24,340,000).
21,859 21,859 21,859 21,859
Subsequent to year end, a quoted investee of the Group and Company, Transmile Group Berhad (“TGB”), of which the
Unquoted private debt securities 190,068 190,068 190,068 190,068 Group and Company has a direct investment of 15% shareholding, announced that it was considered a PN17 company.
Less: Amor tisation of premium (3,435) (2,874) (1,273) (712)
186,633 187,194 188,795 189,356 The net carrying value of TGB recorded in the Group and Companys financial statements as at 31 December 2009 was
RM21.9 million (based on the closing share price of TGB as at 31 December 2008 of RM0.54 per share). The closing share
Unquoted shares in Malaysia, at cost 2,000 12,898 - -
price as at 31 December 2009 was RM0.88 per share. The Board of Directors is of the opinion that the movement of share
Less: Diminution in value (2,000) (2,000) - -
prices of TGB from 31 December 2008 to 31 December 2009 was temporary in nature.
- 10,898 - -
208,492 219,951 210,654 211,215 As at 31 March 2010, the market value of TGB based on the closing share price on the same date was RM0.395 per share.
Market value: The net tangible assets per share of TGB as at 31 December 2009 was RM0.08 per share.
Quoted shares in Malaysia 35,420 21,859 35,420 21,859
Had the closing share price as at 31 March 2010 of TGB of RM0.395 per share been used to determine the fair value of
Unquoted private debt securities 186,670 187,857 186,670 187,857
the investment in the Group and Company’s financial statements as at 31 December 2009, an impairment amounting to
RM5.9 million would have been provided for and the net profit of the Group and Company would have been reduced by
Current
the same amount.
Quoted shares in Malaysia, at cost 19,647 24,543 19,647 24,543
Less: Written down to market value (14,680) (16,900) (14,680) (16,900) On 26 March 2010, Transmile Air Services Sdn. Bhd. (“TAS”), the wholly owned subsidiary of TGB, was served with a
4,967 7,643 4,967 7,643 Notice pursuant to Section 218(2)(a) of the Companies Act 1965 by Malaysian Trustee Berhad (“MTB”) in demanding the
Market value: payment of the amounts owing by TAS pursuant to the Trust Deed dated 8 August 2003 entered between TAS and MTB.
Quoted shares in Malaysia 4,967 7,643 4,967 7,643
There were no other material events subsequent to balance sheet date that have not been reflected in the financial statements.
11. INVENTORIES 12. RECEIVABLES, DEPOSITS AND PREPAYMENTS

2009 2008 2009 2008 2009 2008 2009 2008
RM’000 RM’000 RM’000 RM’000 Note RM’000 RM’000 RM’000 RM’000
At cost: Trade
Postal uniforms and consumables 4,418 3,097 4,179 3,098 Trade receivables 125,226 137,015 98,672 117,782
Pos 2020 merchandise 557 561 557 561 Less: Allowance for doubtful debts (12,593) (14,513) (12,024) (13,908)
Inser tion and mailing materials 1,638 1,003 - - a 112,633 122,502 86,648 103,874
Digital cer tificates, CD ROM and smart cards 2,079 1,554 - -
Non-trade
8,692 6,215 4,736 3,659
Other receivables 55,469 57,364 6,380 5,801
Less: Allowance for doubtful debts (15,537) (18,451) - -
During the financial year, inventories recognised as expenses in the income statement of the Group and of the Company
39,932 38,913 6,380 5,801
amounted to RM28,516,000 (2008 - RM16,185,000) and RM20,005,000 (2008 - RM15,960,000) respectively.
Amount due from a subsidiaries b - - 121,034 122,128
Amount due from associates b 80 80 80 80
Deposits 10,386 6,616 9,369 5,773
Investment income receivables 2,945 7,643 2,130 6,196
Staff advances 11,531 3,250 11,436 2,925
64,874 56,502 150,429 142,903
117,507 179,004 237,077 246,777
12. RECEIVABLES, DEPOSITS AND PREPAYMENTS (continued) 13. CASH AND CASH EQUIVALENTS

2009 2008 2009 2008 2009 2008 2009 2008
The currency exposure profile of trade and other receivables is as follows: Deposits are placed with:
Ringgit Malaysia 165,142 163,906 224,712 231,679 Licensed banks 117,904 487,654 112,000 483,000
US Dollar 12,365 15,098 12,365 15,098 Other financial institutions 80,738 21,100 76,638 17,000
177,507 179,004 237,077 246,777 198,642 508,754 188,638 500,000
Cash and bank balances 119,219 91,504 87,916 79,656

317,861 600,258 276,554 579,656
Included in deposits with licensed banks are cash held for the purpose of distribution of fuel rebate for the government
a. Trade receivables
amounting to RM4,257,000 (2008– RM309,799,000) and collection on behalf of agencies amounting to RM131,827,000 (2008–
Credit terms of trade receivables other than international trade receivables. Due to these factors, management
RM118,958,000).
mail receivables range from thirty (30) days to sixty (60) believes that no additional credit risk beyond amounts
days. The credit terms for international mail receivables provided for collection losses is inherent in the Group’s
Deposits, cash and bank balances are denominated in Ringgit Malaysia. The weighted average interest rates of deposits, cash and
range from six (6) months to eighteen (18) months in trade receivables.
bank balances that were effective as at balance sheet date were as follows:
accordance with the Universal Postal Union guidelines.
b. Amount due from subsidiaries and associates
Group and Company
Concentration of credit risk with respect to trade The amounts due from subsidiaries and associates
2009 2008
receivables are limited due to the Group’s large number are unsecured, interest free and repayable on demand.
% %
of customers whereby sufficient allowance has been
made for debts that are doubtful in collection. In addition,
Deposits with licensed banks 1.95 3.16
the Group has adopted a credit evaluation policy for all
Deposits with other financial institutions 1.70 3.00
Deposits of the Group and of the Company have maturity period ranging from 1 to 365 days (2008 - 1 to 365 days).
14. SHARE CAPITAL AND RESERVES (b) The Special Rights Redeemable Preference Share confers
the following rights:
Group and Company
Amount Number of shares Amount No. of Shares (i) The Special Rights Redeemable Preference Share shareholder is entitled to the repayment of the
issued to the Government of Malaysia would enable capital paid-up on the Special Rights Redeemable
2009 2009 2008 2008
RM’000 ’000 RM’000 ’000 the Government of Malaysia through Minister of Preference Share in priority to any repayment of
Finance, (Incorporated) or its successors or any capital to any other member. The Special Rights
Authorised:
Minister, representative or any person acting on behalf, Redeemable Preference Share does not confer
Ordinary shares of RM0.50 1,000,000 2,000,000 1,000,000 2,000,000
to ensure that cer tain major decisions affecting the any right to par ticipate in the capital or profits of
Special Rights Redeemable Preference shares of RM1 each * * * *
operation of the Company are consistent with the the Company.
Government’s policy. The Special Rights Redeemable
Issued and fully paid:
Preference shareholder is entitled to receive notices (c) Employees Share Option Scheme (“ESOS”)
Ordinary shares of RM0.50 each
of meetings but does not carry any right to vote at
Balance at 1 January 268,513 537,026 268,369 536,738 such meetings of the Company. He also has the right The Company had on 31 October 2007 implemented
Exercise of share option - - 144 288 to require the Company to redeem the Special Rights the ESOS upon the completion of the restructuring
Redeemable Preference Share at par at any time. exercise of Pos Malaysia & Ser vices Holdings Berhad
Ordinary shares of RM0.50 each (“PSH”) for the purpose of continuing the objectives
Balance at 31 December 268,513 537,026 268,513 537,026 (ii) Cer tain matters, in par ticular, the alteration of the under the Pos Malaysia & Ser vices Holdings Berhad’s
Special Rights Redeemable Preference shares of RM1 each * * * * Ar ticles of Association of the Company relating ESOS. The ESOS is governed by the ESOS Bye-laws
268,513 537,026 268,513 537,026 to the rights of the Special Rights Redeemable which were approved by the shareholders on 28
Preference shareholder, the dissolution of the June 2007. The ESOS is in force for a period from 31
* Share capital includes the Special Rights Redeemable Preference Share of RM1.00. Company, any substantial acquisitions and disposal October 2007 up to 23 June 2008.
of assets, amalgamation, merger and takeover,
(a) During the previous financial year, the issued and the Company for cash by virtue of the exercise of share appointment of foreign directors, creation or issue The main features of the ESOS are as follow:
paid up capital of the Company was increased from options pursuant to the Company’s Employee Share of any shares which when aggregated with all other
RM268,369,042.50 to RM268,513,042.50 by the Option Scheme (ESOS). Details of the ESOS exercised existing issued shares, carr y ten percent of total (i) The maximum number of new shares of the Company
issuance of 288,000 ordinary shares of RM 0.50 each by are set out in Note 14 (c) below. voting rights, require prior consent of the Special which may be made available under the ESOS shall
Rights Redeemable Preference shareholder. be 16.016 million shares, representing approximately
three per centum (3%) of the enlarged issued and
(iii) In a distribution of capital or a winding-up of the paid-up share capital of the Company after the PSH
Company, the Special Rights Redeemable Preference restructuring exercise.
(ii) Subject to any adjustments, which may be made • An employee or executive director, being a (v) The new shares of the Company to be allotted upon rank for any dividends, rights, allotments and/or other
under the Bye-laws, the number of the new shares of natural person who is a Malaysian citizen who any exercise of the option shall, upon allotment and distributions declared for payment to the shareholders
the Company that may be offered, allotted and issued has attained the age of eighteen (18) years and issue, rank pari passu in all respects with the existing of the Company appearing in its Register of Members
to any of the eligible employees of the Group who is employed full-time by and is on the payroll ordinary shares of the Company (including in respect or Record of Depositors the entitlement date of
are entitled to participate in the ESOS shall be at the of a company within the Group (other than a of voting, dividend, transfer and other rights and rights which precedes the date of allotment of the new
discretion of the Option Committee after taking into company which is dormant) and who has been arising on a liquidation of the Company) save and shares of the Company to be issued upon exercise
consideration the performance, seniority and length confirmed and has been in the employment in the except that the new shares of the Company will not of the Option.
of service of the eligible employees in the Group Group for a continuous period of at least twelve
subject to the following: (12) months on a full time basis including service
Details of options over the ordinary shares of the Company granted under the ESOS are as follows:
during the probation period and is not prohibited
• The number of the Company shares allocated, in or disallowed by the relevant authorities from
Grant date Expiry date Exercise Price Opening balance Allocated (Subscribed) (Lapsed) Closing balance
aggregate, to the executive directors and senior participating in the ESOS. RM ‘000 ‘000 ‘000 ‘000 ‘000
management of the Group shall not exceed 50% 3.6.2008 23.6.2008 2.03 - 525* (20.3) (504.7) -
of the total shares of the Company available under (iv) The subscription price under the ESOS shall be 3.6.2008 23.6.2008 1.83 - 1,590 (267.7) (1,322.3) -
the ESOS; and set at the weighted average market price of the
Company’s shares as shown in the Daily Official * The amount has been granted in 2008 under the “Performance Share Scheme” and allocated/vested to the respective personnel
• The number of shares of the Company allocated List of the Bursa Malaysia Securities Berhad for on 6 June 2008. The ESOS cost is not material to the results of the Group and Company.
to any individual executive director or employee the five (5) Market Days immediately preceding
who, either singly or collectively through persons the Offer Date with an allowance for a discount of
connected with the employee, the executive not more than ten per centum (10%) therefrom (d) Share premium reserves
director (as defined in paragraph 6.30A(4)(b) of at the Option Committee’s discretion, (or such
This reserve comprises the premium paid on subscription of shares in the Company over and above the par value of the shares.
the Listing Requirements) holds twenty per centum other pricing mechanism as may be permitted by
(20%) or more in the issued and paid-up share the Bursa Malaysia Securities Berhad or any other The movements in each category of the reserves are disclosed in the statements of changes in equity.
capital of the Company shall not exceed ten per relevant regulatory authorities, from time to time)
centum (10%) of the total shares of the Company provided that the subscription price shall in no event
available under the ESOS. be less than the par value of the Company’s share.
(iii) Any eligible employee shall be eligible to participate

in the ESOS if, as at the Offer Date, such person is:
15. RETAINED EARNINGS 16. DEFERRED TAX ASSETS AND LIABILITIES (continued)
Subject to agreement by the Inland Revenue Board, the will be available to the Company until such time the credit is Deferred tax assets and liabilities are attributable to the following:
Company has sufficient Section 108 tax credit and tax exempt fully utilised or upon expiry of the six-year transitional period
income to frank and distribute all of its distributable reserves on 31 December 2013, whichever is earlier. Assets Liabilities Net
as at 31 December 2009 if paid out as dividends. 2009 2008 2009 2008 2009 2008
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
The Finance Act 2007 introduced a single tier company income Group
tax system with effect from year of assessment 2008. As such, Proper ty, plant and equipment 1,657 1,247 (22,796) (18,800) (21,139) (17,553)
the remaining Section 108 tax credit as at 31 December 2009 Provisions 6,721 7,274 - - 6,721 7,274
Net tax assets/ (liabilities) 8,378 8,521 (22,796) (18.,800) (14,418) (10,279)
16. DEFERRED TAX ASSETS AND LIABILITIES Company

Proper ty, plant and equipment 1,629 1,219 (21,237) (17,518) (19,608) (16,299)
Group Company Provisions 5,951 6,096 - - 5,951 6,096
2009 2008 2009 2008 Net tax assets/ (liabilities) 7,580 7,315 (21,237) (17,518) (13,657) (10,203)
Note RM’000 RM’000 RM’000 RM’000
Opening balance (10,279) (6,960) (10,203) (7,220)

Recognised in the income statement 22 247 (3,544) 563 (3,057)
(Under)/over provision in prior years 22 (4,386) 225 (4,017) 74
Closing balance (14,418) (10,279) (13,657) (10,203)
Presented after appropriate offsetting as follows:

Deferred tax assets 85 376 - -
Deferred tax liabilities (14,503) (10,655) (13,657) (10,203)
Balance at 31 December 2009 (14,418) (10,279) (13,657) (10,203)
16. DEFERRED TAX ASSETS AND LIABILITIES (continued) 16. DEFERRED TAX ASSETS AND LIABILITIES (continued)
The components and movements of deferred tax liabilities and assets during the financial year prior to offsetting are as No deferred tax has been recogised for the following items:
follows:
Group
Deferred tax (liabilities) Property, Plant and 2009 2008
/assets of the Group: Equipment Provisions Total RM’000 RM’000
RM’000 RM’000 RM’000
Unutilised tax losses 96,828 97,081
At 1 January 2008 (8,450) 1,490 (6,960)
Unabsorbed capital allowances 1,887 1,887
Recognised in the income statement (8,392) 4,848 (3,544)
98,715 98,968
(Under)/over provision in prior years (711) 936 225
At 31 December 2008/1 January 2009 (17,553) 7,274 (10,279)
Recognised in the income statement 483 (236) 247
The deductible temporar y differences do not expire under the
(Under)/over provision in prior years (4,069) (317) (4,386)
current tax legislation. Deferred tax assets were not recognised
At 31 December 2009 (21,139) 6,721 (14,418)
in respect of these items because it was not probable that future
taxable profit will be available against which the Group can utilise
the benefits there from.
Deferred tax (liabilities) Property, Plant and
/assets of the Company: Equipment Provisions Total
RM’000 RM’000 RM’000 The unutilised tax losses and unabsorbed capital allowances
At 1 January 2008 (7,887) 667 (7,220) amounting to approximately RM96,828,000. (2008 –RM97,081,000)
Recognised in the income statement (8,080) 5,023 (3,057) and RM1,887,000 (2008- RM1,887,000) will not be available to
the Group if there is substantial change in shareholders (more
(Under)/over provision in prior years (332) 406 74
than 50%).
At 31 December 2008/1 January 2009 (16,299) 6,096 (10,203)
Recognised in the income statement 508 55 563
(Under) provision in prior years (3,817) (200) (4,017)
At 31 December 2009 (19,608) 5,951 (13,657)
17. HIRE PURCHASE CREDITORS 18. PAYABLES AND ACCRUALS
Hire purchase creditors are payable as follows: Group Company

2009 2008 2009 2008
Minimum Minimum Note RM’000 RM’000 RM’000 RM’000
lease payment Interest Principal lease payment Interest Principal Trade
2009 2009 2009 2008 2008 2008 Trade payables a 35,437 40,486 34,107 37,757
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group Non-Trade
Less than one year 9,812 1,416 8,396 8,402 1,498 6,904 Amount due to subsidiaries b - - 24,434 28,508
Between one and five years 25,447 1,618 23,829 29,416 2,350 27,066 Amount due to associates b 835 - 835 -
35,259 3,034 32,225 37,818 3,848 33,970 Other payables and accruals:
- Unpresented postal and money orders 86,905 71,990 86,906 71,990
Company
- Agency payables c 136,084 428,757 136,084 428,757
Less than one year 9,798 1,415 8,383 8,386 1,495 6,891
- Money order payables 17,142 18,264 17,142 18,264
Between one and five years 25,408 1,616 23,792 29,362 2,346 27,016
- Service payables 26,714 31,115 23,664 27,056
35,206 3,031 32,175 37,748 3,841 33,907
- Others 2,471 - - -
Other accruals 103,483 120,964 91,593 109,575
The Group and Company obtained financing on motor vehicles amounting to RM34,583,000 (2008- RM41,466,000) and
Advances from subsidiary corporate shareholder d - 2,486 - -
RM34,529,000 (2008- RM41,391,000) under hire purchase arrangement.
Deposits received 13,141 11,407 12,333 17,026
386,775 684,983 392,991 701,176
422,212 725,469 427,098 738,933
18. PAYABLES AND ACCRUALS (continued) 19. REVENUE

2009 2008 2009 2008 2009 2008 2009 2008
The currency exposure profile of trade and other payables is as follows:
Ringgit Malaysia 409,039 712,677 413,925 726,142 Mail 576,850 580,405 560,009 561,686
US Dollar 12,650 12,241 12,650 12,241 Courier and logistic 175,389 171,666 173,243 168,901
EURO 167 172 167 172 Retail 138,968 143,583 138,968 143,584
SGD 7 60 7 59 Sale of digital certificates 10,533 25,120 - -
CHF 213 166 213 166 Rental income 821 892 - -
DKK 102 102 102 102 902,561 921,666 872,220 874,171
Others 34 51 34 51
422,212 725,469 427,098 738,933
a. Trade payables c. Agency payables

Credit terms of international mail payables of the Group Included in agency payables is cash held for the purpose of
and of the Company range from six (6) months to fuel distribution rebate for the government amounting to
eighteen (18) months (2008 – 6 months to 18 months) in RM4,257,000 (2008 –- RM309,799,000).
accordance with the Universal Postal Union guidelines.
d. Advances from subsidiary’s corporate shareholder
b. Amount due to subsidiaries and associates The advances from a subsidiary’s corporate shareholder
The amounts due to subsidiaries and associates were unsecured, interest free and repayable on demand.
are unsecured, interest free and repayable on demand.
20. PROFIT/ (LOSS) BEFORE TAX 20. PROFIT/ (LOSS) BEFORE TAX (continued)
2009 2008 2009 2008 2009 2008 2009 2008
Profit/(loss) before tax is arrived at after charging: and after crediting:
Staff cost (excluding key management personnel) Gain on disposal of proper ty, plant and equipment 2,404 955 2,404 975
- salaries, bonuses and allowances 405,643 404,859 397,868 397,622 Dividend income (gross) 149 1,011 149 1,011
- defined contribution plan 63,247 64,186 62,136 63,307 Inventories written back - 276 - 294
- others 36,704 38,709 35,694 37,439 Allowance for doubtful debts written back
Auditors’ remuneration 315 315 210 210 - trade receivables 4,999 - 4,963 -
Rental - other receivables 2,914 - - -
- office and computer equipment 4,776 1,738 4,184 929 Reversal of write down of quoted shares 2,220 - 2,220 -
- land and buildings 15,322 13,876 15,341 14,068 Bad debt recovered from subsidiaries - - - 3,392
- machinery 274 118 133 105 Realised foreign exchange gain 1,264 2,405 1,268 2,405
- motor vehicles 108 72 62 26 Unrealised foreign exchange gain 514 87 514 87
Proper ty, plant and equipment written off - 6 - 6 Rental income 1,935 2,264 1,933 2,256
Prepaid lease written off 206 - - - Gain on redemption of unquoted private debt securities - 24 - -
Inventories written off - 18 - - Gain on disposal of quoted shares 620 4,817 620 4,817
Allowance for doubtful debts Gain on disposal of unquoted shares 2,602 - - -
- trade receivables 3,079 3,421 3,079 3,490
- other receivables - 18,451 - -
Allowance for diminution in value - 87,032 - 87,032
Write down of quoted shares - 10,615 - 10,615
Operating licence fee 4,368 5,176 4,368 5,176
Loss on redemption of unquoted private debt securities - - - 329
Amor tisation of premium 561 660 561 660
21. KEY MANAGEMENT PERSONNEL COMPENSATION 22. TAX EXPENSE (continued)

The key management personnel compesation are as follows: A reconciliation of income tax expense applicable to profit/(loss) before taxation at the statutory income tax rate to income tax
Group Company expense at the effective income tax rate of the Group and of the Company is as follows:
2009 2008 2009 2008
Group Company
RM’000 RM’000 RM’000 RM’000
2009 2008 2009 2008
Directors
RM’000 RM’000 RM’000 RM’000
- Fees 422 381 409 363
- Other emoluments 1,797 1,167 1,797 1,167
Profit/(loss) before tax 109,264 (519) 101,405 12,478
2,219 1,548 2,206 1,530
Tax calculated using Malaysian tax rate of:
Other key management personnel - 25% (2008- 26%)* 27,316 (91) 25,351 3,244
- Salaries, bonuses and allowances 3,853 3,493 3,493 3,224 - 20% ** - (52) - -
- Defined contribution plan 605 487 529 417 Tax exempt income (527) 121 (495) (150)
4,458 3,980 4,022 3,641 Effect of change in tax rate on deferred tax brought forward - (497) - (529)
6,677 5,528 6,228 5,171 Expenses not deductible for tax purposes 3,813 36,433*** 5,060 30,288***
Other key management personnel comprises persons other than the Directors of Group entities, having authority and responsibility Utilisation of previously unrecognised deferred tax assets (63) (1,346) - -
for planning, directing and controlling the activities of the entity either directly or indirectly. 30,539 34,568 29,916 32,853
Under/(over) provision in prior years
22. TAX EXPENSE - income tax (2,372) (1,560) (1,600) (1,542)
Company Group
2009 2008 2009 2008 - deferred tax 4,386 (225) 4,017 (74)
Note RM’000 RM’000 RM’000 RM’000
Tax expense 32,553 32,783 32,333 31,237
Income tax expense:
Malaysian income tax 30,786 31,024 30,479 29,796
Over provision in prior years (2,372) (1,560) (1,600) (1,542)
* The corporate tax rate is 25% for the year of assessment 2009 (2008: 26%) and subsequent years of assessment. Consequently,
28,414 29,464 28,879 28,254 deferred tax assets and liabilities are measured using this tax rate.
Deferred tax expense: ** With effect from year of assessment 2004, companies with paid-up capital of RM2.5 million and below at the beginning of the basis
Relating to origination and reversal of temporary period for a year of assessment are subject to the corporate tax at 20% on chargeable income up to RM500,000. However, with
16 (247) 3,544 (563) 3,057 effect from year of assessment 2009, the 20% tax rate will not be applicable for companies which are controlled by another company
differences
with paid up capital exceeding RM2.5 million.
Under/(over) provision in prior years 16 4,386 (225) 4,017 (74)
*** Included in the amount of expenses not deductible for tax purposes in the previous year were impairment losses for Group and
4,139 3,319 3,454 2,983 Company amounting RM116,098,000 and RM97,647,000 respectively.
Total tax expense 32,553 32,783 32,333 31,237
23. EARNINGS PER SHARE 25. CAPITAL COMMITMENTS
Basic earnings per share Group Company

2009 2008 2009 2008
RM’000 RM’000 RM’000 RM’000
The earnings per ordinary share for the financial year has been calculated based on the consolidated net profit for the financial
Property, plant and equipment
year of RM76,711,000 (2008– net loss of RM33,302,000) and on the weighted average number of ordinary shares in issue during
the financial year of 537,026,085 (2008 - 537,026,085). Approved and contracted for 188,392 76,518 187,880 76,194
Approved but not contracted for 198,857 292,931 193,255 281,967
387,249 369,449 381,135 358,161
24. DIVIDENDS
Dividends recognised in the current year by the Company are:
Sen Total 26. COMMITMENTS AND CONTINGENCIES - Group and Company

per share amount
(net of tax) RM’000 (a) i. Pursuant to the agreement entered into with Malayan ii. For the material litigation matters identified in the
2009 Banking Berhad (“MBB”) on the sale of PhileoAllied Share Sale Agreement, PSH and PSHAB have agreed
Final dividend in respect of financial year ended 31 December 2008 7.5 40,277 Bank (Malaysia) Berhad and Phileo Allied Securities to indemnify MBB to the extent of the amount stated
Sdn. Bhd. dated 30 August 2000 (“the Share Sale in the final judgement (including taxed costs and costs
The Company did not declare and pay any interim dividends in respect of the financial year ended 31 December 2009. However, Agreement”) Pos Malaysia & Services Holdings of solicitors in defending the claims) if the claim for
subsequent to the balance sheet date the following dividends were proposed by the Directors. These dividends will be recognised Berhad (“PSH”) and its subsidiary, PSH Allied indemnify is received by PSH and PSHAB within 4
in subsequent financial reports upon approval by the shareholders. Berhad (“PSHAB”) have given cer tain warranties, years from the Completion Date of 31 January 2001.
under takings and obligations to MBB, which shall
Sen Total continue for a period of twenty four (24) months
per share amount from the Completion Date of the agreement of 31
(net of tax) RM’000 January 2001. Save as disclosed in Note 26 (a)(iii) to
(v) below, as at the date of the financial statements,
Final dividend 12.5 50,346 there are no other legal suits filed by MBB arising from
the above warranties, under takings and obligations.
iii. On 18 January 2002, PSH and PSHAB (“the On 30 July 2002, the Defendants’ application to strike 26. COMMITMENTS AND CONTINGENCIES (continued)
Defendants”) were served with a Writ of Summons out Plaintiff ’s Writ of Summons was allowed with costs
and Statement of Claim by MBB (“the Plaintiff ”) by the Senior Assistant Registrar. A Notice of Appeal to (2) a declaration that Defendants are liable, jointly The same was dismissed by the learned Judge on 26 April
(Kuala Lumpur High Court Civil Suit D3-22-2240- Judge In Chambers dated 6 August 2002 filed by the and severally to indemnify the Plaintiff and keep 2005. The Plaintiff has appealed to Cour t of Appeal vide
2001). Subsequently, an Amended Writ of Summons Plaintiff has been dismissed with costs on 25 April 2003. indemnified the Plaintiff from and against all Notice of Appeal dated 25 May 2005 in CA Civil Appeal
and Amended Statement of Claim were served on A Notice of Appeal to the Court of Appeal dated 20 claims, demands, damages, losses (including loss of
No. W-03-86-2005.
the Defendants by the Plaintiff on 19 March 2002. The May 2003 has been filed by the Plaintiff. profit), costs, obligations, penalties, liabilities, fines
Plaintiff claims against the Defendants for : and expenses sustained by the Plaintiff in respect
of the Defendants’ or either of the Defendants’ At the hearing on 23 July 2009 at the Court of Appeal,
(1) declaration that the Defendants are in breach At the hearing on 23 July 2009 at the Court of Appeal,
the court had allowed MBB’s appeal with costs at the breach referred to in (1) above; the cour t had allowed MBB’s appeal with costs at the
of their warranties and undertakings under
the Share Sale Agreement in failing to make Court of Appeal. The matter will now therefore proceed (3) that the Plaintiff be indemnified as referred Cour t of Appeal. The matter will now therefore proceed
specific disclosure of the condition of the loan to trial. to in (2) above and be at liber ty to apply for to trial.
and security documents in relation to the credit an assessment of the amount to be paid
facility granted by Phileo Allied Credit & Leasing The matter has been fixed for case management before thereunder ; The matter has been fixed for case management before
Sdn. Bhd. to Salient Growth Sdn. Bhd.; the Judge on 5 May 2010. (4) special damages in the sum of RM41,790,851.83 the Judge on 5 May 2010.
(2) a declaration that the Defendants are liable, jointly as at 31 January 2000 with interest thereon at
and severally, to indemnify the Plaintiff and keep iv. On 2 April 2003, PSH and PSHAB (“Defendants”) the rate of 12.25% per annum from 1 February v. On 2 April 2003, PSH and PSH Allied Berhad
indemnified the Plaintiff from and against all were further served with another Writ of Summons 2000 until the date of full payment; (“Defendants”) were also served with a Writ of
claims, demands, damages, losses (including loss of and Statement of Claim (Kuala Lumpur High Cour t (5) general damages; Summons and Statement of Claim (Kuala Lumpur
profit), costs, obligations, penalties, liabilities, fines Civil Suit No. D3-22-330-2003) by MBB (“the
(6) interest on the sums payable as damages; High Cour t Civil Suit No. D3-22-331-2003) by
and expenses sustained by the Plaintiff in respect Plaintiff ”). The Plaintiff claims against the Defendants
(7) costs to be borne by the Defendants; and MBB (“the Plaintiff ”). The Plaintiff claims against the
of the Defendants’, or either of the Defendants’ for the following:
(8) such fur ther or other reliefs as the Cour t deems Defendants for the following:
breach referred to in (1) above; (1) a declaration that the Defendants are in breach
fit and proper. (1) a declaration that the Defendants are in breach
(3) that the Plaintiff be indemnified as referred to in (2) of the warranties and undertakings under the
of the warranties and under takings under the
above and be at liberty to apply for an assessment Share Sale Agreement in failing to make specific
On 16 June 2004, the Defendants’ application to strike Share Sale Agreement in failing to make specific
of the amount to be paid thereunder ; disclosure of the condition of two margin
disclosure of the action instituted by Zainuddin
accounts maintained by Zuhrah Sentosa Sdn. out the Plaintiff ’s Writ of Summons was allowed with
(4) damages to be assessed; bin Abu Bakar against Mayban Allied Berhad
Bhd. and Ujung Prinsip Sdn. Bhd. respectively with costs by the Senior Assistant Registrar. A Notice of
(5) that the cost of the action be borne by the vide Kuala Lumpur High Cour t Suit No.D2-22-
Mayban Securities Sdn. Bhd. Appeal to Judge In Chambers has been filed by the
Defendants; and 1853-2000;
(6) such further or other reliefs as the Court deems Plaintiff on 24 June 2004 to appeal against the decision
fit and proper. of the Senior Assistant Registrar.
(2) a declaration that the Defendants are liable, The same was dismissed by the learned Judge on 26 27. SEGEMENTAL REPORTING
jointly and severally, to indemnify the Plaintiff April 2005. The Plaintiff has appealed to Court of Appeal
and keep indemnified the Plaintiff from and vide Notice of Appeal dated 25 May 2005 in CA Civil The Group has three repor table segments, as described below, which are the Group’s strategic business units. The strategic
against all claims, demands, damages, losses business units offer different products and services and are managed separately because they require different business processes
Appeal No. W-03-87-2005
(including loss of profit), costs, obligations, and customer needs. The following summary describes the operations in each of the Group’s repor table segments:
penalties, liabilities, fines and expenses sustained
by the Plaintiff in respect of the Defendants’ or At the hearing on 23 July 2009 at the Court of Appeal,
Includes the provision of basic mail services for corporate and individual customers and
either of the Defendants’ breach referred to in the court had allowed MBB’s appeal with costs at the
• Mail customised solutions such as Mailroom Management, Direct Mail and hybrid mail which
(1) above; Court of Appeal. The matter will now therefore proceed
provides Data and Document Processing services.
(3) that the Plaintiff be indemnified as referred to trial.
to in (2) above and be at liber ty to apply Includes logistics and courier solutions by sea, air and land to both national and
for an assessment of the amount to be • Courier and logistic
The matter has been fixed for case management before international destinations.
paid thereunder ;
the Judge on 5 May 2010
(4) special damages in the sum of RM6,021,462 Includes over-the-counter services for payment of bills and cer tain financial products and
with interest thereon at the rate of 8% per • Retail
services.
(b) The Company has given financial suppor t to cer tain
annum from 3 October 2000 until the date of
subsidiaries to meet all their liabilities due within the
full payment;
next 12 months.
(5) general damages;
Other operations include the business of internet security Information regarding the operations of each repor table
(6) interest on the sums payable as damages;
products, solutions and services and rental income from segment is included below. Performance is measured based
(7) costs to be borne by the Defendants; and
investment proper ties held by the Group. None of these on segment results. Segment results is used to measure
(8) such fur ther or other reliefs as the Cour t
segments meets any of the quantitative thresholds for performance as management believes that such information
deems fit and proper.
determining repor table segments in 2009 and 2008. is the most relevant in evaluating the results of cer tain
segments relative to other entities that operate within these
On 16 June 2004, the Defendants’ application to strike industries. Inter-segment pricing is determined on an arm’s
There are varying levels of integration between the Mail
out Plaintiff ’s Writ of Summons was allowed with costs repor table segment and the Courier and Logistics repor table length basis.
by the Senior Assistant Registrar. A Notice of Appeal to segments. This integration includes shared distribution
Judge In Chambers has been filed by the Plaintiff on 24 services. The accounting policies of the repor table segments
June 2004 to appeal against the decision of the Senior are the same as described in note 2(s).
Assistant Registrar.
Courier Courier
Year Ended 31 December 2009 Year Ended 31 December 2008
Mail & Logistic Retail Others Elimination Group Mail & Logistic Retail Others Elimination Group
Revenue Revenue
Total external revenue 576,850 175,389 138,968 11,354 - 902,561 Total external revenue 580,405 171,666 143,583 26,012 - 921,666
Intersegment revenue 20,409 353 (765) 9,394 (29,391) - Intersegment revenue 13,669 459 (748) 858 (14,238) -
Total revenue for reportable segments 597,259 175,742 138,203 20,748 (29,391) 902,561 Total revenue for reportable segments 594,074 172,125 142,835 26,870 (14,238) 921,666
Reportable segment results 85,822 13,148 (18,363) 2,151 (405) 82,353 Reportable segment results 83,979 15,217 (17,833) 7,561 (2,695) 86,229
Other unallocated income 26,911 Other unallocated expenses (86,748)
Profit before taxation 109,264 Loss before taxation (519)
Reportable segments assets 265,998 97,689 187,209 147,416 (49,852) 648,460 Reportable segments assets 243,986 97,140 186,954 101,029 - 629,109
Other unallocated assets 626,127 Other unallocated assets 908,732
Total assets 1,274,587 Total assets 1,537,841
Reportable segment liabilities 48,857 17,064 136,443 896 - 203,260 Reportable segment liabilities 53,069 18,986 429,661 1,497 - 503,213
Other unallocated liabilities 271,734 Other unallocated liabilities 267,598
Total liabilities 474,994 Total liabilities 770,811
Other information Other information

Capital expenditure Capital expenditure
- Proper ty, plant & equipment 44,829 6,164 28,455 253 (1,112) 78,589 - Proper ty, plant & equipment 30,217 32,002 40,784 3,761 - 106,764
Depreciation and amortisation 24,976 12,244 10,336 1,763 (364) 48,955 Depreciation and amor tizsation 20,834 9,008 9,275 1,695 (345) 40,467
Interest income - - - - - (12,860) Interest income - - - - - (18,919)
Interest expense 976 748 81 - - 1,805 Interest expense 383 385 65 - - 833
Allowance for impairment in value - - - - - 5,134 Allowance for impairment in value - - - - - 116,098
written back written back
Taxation - - - - - 32,553 Taxation - - - - - 32,783
28. SIGNIFICANT RELATED PARTY TRANSACTIONS 29. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
For the purposes of these financial statements, parties are considered to be related to the Group or the Company if the Financial risk management objectives and policies
Group or the Company has the ability, directly or indirectly, to control the party or exercise significant influence over the The Group’s and the Company’s activities expose it to a changes in interest rates. The Group’s and the Company’s
party in making financial and operating decisions, or vice versa, or where the Group or the Company and the party are variety of financial risk, including foreign currency exchange short term deposits are placed at fixed rate investments
subject to common control or common significant influence. Related parties may be individuals or other entities. risk, interest rate risk, credit risk, liquidity and cash flow which management endeavours to obtain the best rate
risk. The Group’s and the Company’s overall financial available in the market.
Key management personnel are defined as those persons having authority and responsibility for planning, directing and risk management objective is to ensure the continuous
controlling the activities of the Group either directly or indirectly. The key management personnel includes all the Directors growth in profitability and enhance shareholders’ value in a Credit risk
of the Group, and certain members of senior management of the Group. competitive and changing environment. At the same time, The Group and the Company seeks to control credit risk
the Group and the Company is focused in performing its by setting counter party limits and ensuring that services
Transactions with government departments and agencies or with entities providing public utilities are entered at arms Universal Service Obligation as a provider of postal service are made to customers with an appropriate credit history.
length by virtue of their normal dealings as a public utility or a government department and agency. throughout the country and to international destinations The trade receivables are all collectable and adequate
in an efficient and effective manner. allowance for bad and doubtful debts are provided for.
Group
Foreign currency risk At the balance sheet date there were no significant
The Group and the Company is exposed to currency concentrations of credit risk. The maximum exposure to
2009 2008 exchange risk as a result of providing foreign mail credit risk is represented by the carrying amount of each
RM’000 RM’000 exchange service and remittance service. However the financial asset in the balance sheet.
Purchase of paper based supplies from an associate company: material portion of the exposure is in US Dollar and the
Elpos Print Sdn. Bhd. 7,160 9,679 Group and the Company ensures that the net exposure is Liquidity and cash flow risk
kept to an acceptable level by monitoring the fluctuation Prudent liquidity risk management implies maintaining
Information regarding outstanding balances arising from related party transactions are disclosed in Note 12 and Note 18 of the foreign currency. sufficient liquid assets to meet financial commitments
to the financial statements. and obligations when they fall due at a reasonable cost.
Interest rate risk The Group and the Company ensures that liquidity
There are no allowances for doubtful debts being provided in respect of these balances outstanding at year end at 31 The Group’s and the Company’s income and operating requirements are met and surplus is within limits set to
December 2009 and 2008 and no allowances for doubtful debts made during the year and the previous year as the cash flows are substantially independent of the changes avoid liquidity surpluses which may result in loss of income
balances are amount payable to related parties. in market interest rate except for the Group’s and the opportunities.
Company’s investment in fixed-rate debt securities which
are exposed to a risk of change in their fair value due to
STATEMENT BY DIRECTORS PURSUANT TO SECTION 169(15) OF THE COMPANIES ACT, 1965 STATUORY DECLARATION PURSUANT TO SECTION 169(16) OF THE COMPANIES ACT, 1965
In the opinion of the Directors, the financial statements set out on pages 5 to 68 are drawn up in accordance with Financial I, Mohd Lutfi bin Mat Lazim, the officer primarily responsible for the financial management of Pos Malaysia Berhad, do
Reporting Standards and the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of solemnly and sincerely declare that the financial statements set out on pages 5 to 68 are, to the best of my knowledge
the Group and of the Company as of 31 December 2009 and of their financial performance and cash flows for the year and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the
then ended. provisions of the Statutory Declarations Act, 1960.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors: Subscribed and solemnly declared by the above named in Kuala Lumpur on
Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat Mohd Lutfi bin Mat Lazim
Before me:
Dato’ Syed Faisal Albar bin Syed A.R Albar
Date: 31 March 2010
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF POS MALAYSIA BERHAD INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF POS MALAYSIA BERHAD
Report on the Financial Statements Auditors’ Responsibility We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
We have audited the financial statements of Pos Malaysia Our responsibility is to express an opinion on these
Berhad, which comprise the balance sheets as at 31 financial statements based on our audit. We conducted Opinion
December 2009 of the Group and of the Company, our audit in accordance with approved standards on
In our opinion, the financial statements have been properly drawn up in accordance with Financial Reporting Standards and
and the income statements, statements of changes in auditing in Malaysia. Those standards require that we
the Companies Act, 1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the
equity and cash flow statements of the Group and of comply with ethical requirements and plan and perform Company as of 31 December 2009 and of their financial performance and cash flows for the year then ended.
the Company for the year then ended, and a summary the audit to obtain reasonable assurance whether the
of significant accounting policies and other explanatory financial statements are free from material misstatement. Report on Other Legal and Regulatory Requirements
notes, as set out on pages 5 to 68.
An audit involves performing procedures to obtain audit In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
Directors’ Responsibility for the Financial Statements evidence about the amounts and disclosures in the
The Directors of the Company are responsible for financial statements. The procedures selected depend a. In our opinion, the accounting and other records and c. We are satisfied that the accounts of the subsidiaries
the preparation and fair presentation of these financial on our judgment, including the assessment of risks the registers required by the Act to be kept by the that have been consolidated with the Company’s
statements in accordance with Financial Reporting of material misstatement of the financial statements, Company and its subsidiaries of which we have acted financial statements are in form and content
Standards and the Companies Act, 1965 in Malaysia. whether due to fraud or error. In making those risk as auditors have been properly kept in accordance appropriate and proper for the purposes of the
with the provisions of the Act. preparation of the financial statements of the Group
This responsibility includes: designing, implementing and assessments, we consider internal control relevant to
b. The subsidiar y in respect of which we have not and we have received satisfactory information and
maintaining internal control relevant to the preparation the Company’s preparation and fair presentation of the
acted as auditors are identified in Note 7 of explanations required by us for those purposes.
and fair presentation of financial statements that are free financial statements in order to design audit procedures
which was consolidated using its management d. The audit reports on the accounts of the subsidiaries
from material misstatement, whether due to fraud or error ; that are appropriate in the circumstances, but not for the financial statements. did not contain any qualification or any adverse
selecting and applying appropriate accounting policies; purpose of expressing an opinion on the effectiveness comment made under Section 174(3) of the Act.
and making accounting estimates that are reasonable in of the Company’s internal control. An audit also includes
Other Matters
the circumstances. evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by This report is made solely to the members of the Company, as a body, in accordance with Section 174 of the Companies
the Directors, as well as evaluating the overall presentation Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of
of the financial statements. this report.
KPMG Mohamed Raslan Abdul Rahman

Firm Number : AF 0758 Approval Number : 1825/05/11(J/PH)
Chartered Accountants Chartered Accountant
Petaling Jaya,
Date: 31 March 2010
POS MALAYSIA ANNUAL REPORT 2009 Top 10 Properties
Registered Exisiting Use Tenure Cost of Purchase Net Book Value (RM)
No Type Location Subject Property / Beneficial Owner / Description / Age of Building Land Area Gross Floor Area / Lease Amount (RM) as of 31 December 2009
1. Alienated Land Shah Alam HS(D) 98478, PT No 1 Sek 21, PMB Properties Sdn Bhd MPC Section 21 Shah Leasehold 99 years 90,071.82 sq mt 500,000 sq.ft. 71,064,000 70,858,040
Bandar Shah Alam, Alam/Double Storey Office (remaining 85 years) /
District of Petaling Jaya, Building, 2 units of 1 ½ expiring 19/7/2094
State of Selangor Storey Factory Buidling, etc
2. Building Pej Pos HS(D) 49280, PT 46 Sek 70, Pesuruhjaya Tanah General Post Office / Eight Leasehold 99 years 8,496 sq mt 44,519 sq mt 60,000,000 31,224,489.43
Besar Kuala Bandar Kuala Lumpur, Persekutuan Storey Building (expiring 27/01/2079) / (91,453 sq ft)
Lumpur District of Kuala Lumpur, Approximately 25 years
State of Wilayah Persekutuan, KL
3. Alienated Land Mail and Mukim of Sepang, Malaysia Airports (Sepang) Mail and Courier Complex Concession 36,950 sq. mt 201,600 sq. ft. 34,277,932.04 21,744,279.05
Courier District of Sepang, Sdn Bhd
Complex State of Selangor
4. Alienated Land Ipoh Pajakan Negeri 155068 Effivation Sdn Bhd Vacant Land Leasehold 999 Years 14,102sq ft Not applicable 3,262,660 15,071,000
for Lot 2436N, (expiring on 30/12/2893) / (1,310.1677 mp)
Town of Ipoh, Daerah Kinta, Acquired 26/09/1997
Perak Darul Ridzuan
Alienated Land Ipoh Pajakan Negeri 155069 Effivation Sdn Bhd Vacant Land Leasehold 999 Years 15,328 sq ft Not applicable 2,804,939
for Lot 2437N, (expiring on 30/12/2893) / (1,423.9853 mp)
Perak Darul Ridzuan
Alienated Land Ipoh Pajakan Negeri 4738 Effivation Sdn Bhd Vacant Land Leasehold 999 Years 29,294sq ft Not applicable 4,741,831
for Lot 31448, (expiring on 24/03/2895) / (2,721.5066 mp)
Perak Darul Ridzuan
Alienated Land Ipoh Pajakan Negeri 153337 Effivation Sdn Bhd Vacant Land Leasehold 999 Years 23,985 sq ft Not applicable 3,550,000
for Lot 35120, (expiring on 24/03/2895) / (2,228.2968 mp)
Perak Darul Ridzuan
Alienated Land Ipoh Pajakan Negeri 153721 Effivation Sdn Bhd Vacant Land Leasehold 999 Years 16,144 sq ft Not applicable
for Lot 2351N, (expiring on 30/12/2883) /
Perak Darul Ridzuan
No Type Location Subject Property / Beneficial Owner / Description / Age of Building Land Area Gross Floor Area / Lease Amount (RM) as of 31 December 2009
4. Alienated Land Ipoh GRN 55283 for lot 31449 Effivation Sdn Bhd Vacant Land Freehold Acquired 32,398 sq ft Not applicable 2,980,593
Cont. Town of Ipoh, 31/10/1997 (3,009.8447 mp)
Daerah Kinta,
Perak Darul Ridzuan
Alienated Land Ipoh Pajakan Negeri 155073 for Lot Effivation Sdn Bhd Vacant Land Leasehold 999 Years 16,226 sq ft Not applicable 3,739,742
2740N, Town of Ipoh, (expiring on 30/12/2893) / (1,507.4516 mp)
Daerah Kinta, Acquired 20/11/1997
Perak Darul Ridzuan
5. Registered Land Bukit Raja HS(D) 56783, PT 27615, Pos Malaysia Berhad Mail Centre and Office / Freehold / Approximately 8,809 sq mt �60,465 sq ft 10,300,000 13,928,628.72
Mukim of Kapar, Warehouse with attached 12 years
District of Klang, three storey office
State of Selangor
6. Registered Land Larkin HS(D) 109201, PT TLO 682, Pos Malaysia Berhad Mail Centre, Johor Bahru/ Leasehold 60 years 20,234 sq mt 6,600.82 sq mt 10,300,000 13,544,802.28
Bandar Johor Bahru, a Single Storey detached (expiring 15/12/2021) /
District of Johor Bahru, Warehouse with a double Not available
State of Johor storey office annex and
a Single storey detached
office block and detached
warehouse, etc
7. Building Persiaran Refer notes Real Riviera Sdn Bhd Office Building/7 Storey Leasehold 84 to 900 years 6,840 sq ft 34,190 sq ft 9,556,461 7,352,656.26
Greenhill Building expiring as per note
below- Approximately 14
years Acquired 2/8/1994
8. Alienated Land Kota Town Lease 017542746 Lot Pesuruhjaya Tanah Post Office / Eleven Storey Leasehold 99 years 6,728.55 sq mt �145,083 sq ft 12,146,000 6,320,877.14
Kinabalu 017542746 Location of Persekutuan Building (expiring 31/12/2074) /
Kota Kinabalu Town District of Approximately 23 ½ years
Kota Kinabalu, State of Sabah
No Type Location Subject Property / Beneficial Owner / Description / Age of Building / Lease Amount (RM) as of 31 December 2009
9. Registered Land Bangi HS(D) 52880, PT 41029, Bandar Pos Malaysia Berhad Mail Centre / Warehouse Leasehold 99 years 6267 sq mt 22,000 sq ft 2,800,000 5,975,869.41
Baru Bangi, District of Hulu with attached office ( 2 expiring 19/08/2098 / (1.5486 acres)
Langat, State of Selangor Units) Approximately 9 years
Registered Land Bangi HS(D) 52881, PT 41030, Bandar Leasehold 99 years 4,206 sq mt 22,000 sq ft 2,400,000
Baru Bangi, District of Hulu expiring 19/08/2098 / (1.0393 acres)
Langat, State of Selangor Approximately 9 years
10. Building Jalan Unit Nos. F108, F110, F111, F112, PSH Properties Sdn .Bhd Office and Commercial units Freehold - 15,509 sq ft 7,694,004.63 7,205,277.82
Damansara F113, F208, F210, F211, F212 &
F213, Phileo Damansara, Jalan
Damansara, Petaling Jaya, State of
Selangor
Notes:-
* HS(D) Ka 21276 PT 18020 99 years expiring on 20/12/2078
* HS(D) Ka 7533/79 PT 18021 99 years expiring on 20/12/2078
* HS(D) Ka 7534/79 PT 18022 99 years expiring on 20/12/2078
* PN 101760 Lot 8619 N 999 years expiring on 21/09/2894
Analysis of Shareholdings as
at 15 March 2010
Distribution of Shareholdings
Authorised Capital: RM1,000,000,001.00 divided into 2,000,000,000 ordinary shares of RM0.50 each and 1 Special
Holdings No. of % of Issued No. of % of
Rights Redeemable Preference Share of RM1.00 Shares Share Capital Shareholders/ Shareholders/
Depositors Depositors
Issued and full paid-up capital: RM268,513,043.50 comprising 537,026,085 ordinary shares of RM0.50 each and one (1) Special
Less than 100 266,928 0.05 5,767 22.46
Rights Redeemable Preference Share of RM1.00
100 to 1,000 6,149,880 1.15 9,631 37.51
Voting Rights: One vote for every ordinary share 1,001 to 10,000 31,921,764 5.94 8,791 34.24
(The Special Rights Redeemable Preference Share does not carry any voting rights except in 10,001 to 100,000 35,288,078 6.57 1,344 5.24
circumstances set out in the Company’s Articles of Association) 100,001 to 26,851,303 149,591,936 27.86 136 0.53
26,851,304 and above 313,807,499 58.43 4 0.02
No. Shareholders: 25,673 Total 537,026,085 100.00 25,673 100.00
Substantial Shareholders
30 Largest Registered Shareholders
Direct Indirect
Shareholders No. of shares % No. of shares %
No. Name No. of Shares Percentage (%)
1. Khazanah Nasional Berhad 172,997,399 32.21 - -
1 Khazanah Nasional Berhad 172,997,399 32.21
2. Employees Provident Fund Board 51,507,400 9.59 - -
2 Employees Provident Fund Board 51,507,400 9.59
3. Permodalan Nasional Berhad 45,395,300 8.45
4. Amanahraya Trustees Berhad 43,907,400 8.18
3 Permodalan Nasional Berhad 45,395,300 8.45
Skim Amanah Saham Bumiputera 4 Amanahraya Trustees Berhad 43,907,400 8.18
5. Aberdeen Asset Management PLC and its subsidiaries 42,244,600 * 7.87 - - Skim Amanah Saham Bumiputera
6. Aberdeen Asset Management Asia Limited 31,451,900 * 5.86 - - 5 HSBC Nominees (Asing) Sdn Bhd 15,149,100 2.82
BNP Paribas Securities Services Lux for Aberdeen Global
7. Minister of Finance (Inc.) - - 172,997,399 (a) 32.21
6 CIMSEC Nominees (Tempatan) Sdn Bhd 14,570,332 2.71
8. Yayasan Pelaburan Bumiputra - - 45,395,300 (b)
8.45
Prima Pegun Sdn Bhd
9. Credit Suisse Group AG - - 46,144,600 (c)
8.59
7 Valuecap Sdn Bhd 10,098,500 1.90
10. Mitsubishi UFJ Financial Group, Inc - - 42,244,600 (d)
7.87
8 HSBC Nominees (Asing) Sdn Bhd 10,000,000 1.86
Notes: Exempt An For JPMorgan Chase Bank, National Association (Bermuda)
* Includes holdings of mandates delegated from other subsidiaries of Aberdeen Asset Management PLC. 9 HSBC Nominees (Asing) Sdn Bhd 6,130,000 1.14
(a) Deemed interested through Khazanah Nasional Berhad.
(b) Deemed interested through Permodalan Nasional Berhad. RBS Coutts Sg for Glenmorgan Company Inc
(c) Deemed interested through Aberdeen Asset Management PLC and its subsidiaries and Credit Suisse Securities (USA) LLC. 10 Pertubuhan Keselamatan Sosial 5,592,400 1.04
(d) Deemed interested through its wholly-owned subsidiary, Mitsubishi UFJ Trust & Banking Corp, holding more than 15% in Aberdeen Asset Management PLC.
POS MALAYSIA ANNUAL REPORT 2009 Analysis of Shareholdings
as at 15 March 2010
11 Cartaban Nominees (Asing) Sdn Bhd 5,500,000 1.02 25 Amanahraya Trustees Berhad 1,651,600 0.31
State Street London Fund XCB9 for Aberdeen Asian Smaller Companies Public Islamic Asia Dividend Fund
Investment Trust Plc 26 HSBC Nominees (Asing) Sdn Bhd 1,590,200 0.30
12 HSBC Nominees (Asing) Sdn Bhd 4,412,000 0.82 Exempt An For Danske Bank A/S (Client Holdings)
Exempt An for JPMorgan Chase Bank, National Association (Norges Bk Lend) 27 Amanahraya Trustees Berhad 1,536,400 0.29
13 Mayban Nominees (Tempatan) Sdn Bhd 4,320,400 0.80 Public Islamic Dividend Fund
Aberdeen Asset Management Sdn Bhd for Kumpulan Wang 28 HLG Nominee (Asing) Sdn Bhd 1,500,000 0.28
Persaraan (Diperbadankan) (FD 1- 280305) Hong Leong Fund Management Sdn Bhd for Asia Fountain Investment
14 HSBC Nominees (Asing) Sdn Bhd 4,183,900 0.78 Company Limited
Exempt An for BNP Paribas Securities Services 29 Kumpulan Wang Simpanan Pekerja 1,500,000 0.28
(Singapore-SGD)
30 HSBC Nominess (Asing) Sdn Bhd 1,300,000 0.24
15 Cartaban Nominees (Asing) Sdn Bhd 4,000,000 0.74 Exempt An For UBS AG
State Street London Fund XCP2 for Aberdeen Asian
Income Fund Limited
Total 430,289,348 80.12
16 Cartaban Nominees (Asing) Sdn Bhd 3,750,000 0.70
Credit Suisse Securities (USA) LLC (FIRM)
17 Citigroup Nominees (Asing) Sdn Bhd 3,546,617 0.66 Directors’ Shareholdings as per the Register of Directors’ Shareholdings as at 15 March 2010
CBNY for Dimensional Emerging Markets Value Fund
18 Mayban Nominees (Tempatan) Sdn Bhd 3,276,800 0.61 Name of Directors Direct Interest % Indirect Interest %
Aberdeen Asset Management Sdn Bhd for the Employees’ Provident Fund Tan Sri Dato’ Seri (Dr.) Aseh bin Haji Che Mat - - - -
Board (250416)
Dato’ Ibrahim Mahaludin bin Puteh - - - -
19 Amsec Nominees (Tempatan) Sdn Bhd 2,836,500 0.53
Dato’ Syed Faisal Albar bin Syed A.R Albar - - - -
Aberdeen Asset Management Sdn Bhd for Tenaga
Nasional Berhad Retirement Benefit Trust Fund Datuk Low Seng Kuan - - - -
(FM-Aberdeen) Dato’ Krishnan a/l Chinapan - - - -
20 Amanahraya Trustees Berhad 2,247,600 0.42 Puan Sri Datuk Nazariah binti Mohd Khalid - - - -
Public Islamic Select Treasures Fund
Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor - - - -
21 Affin Nominees (Asing) Sdn Bhd 2,060,000 0.38
Wee Hoe Soon @ Gooi Hoe Soon - - - -
UOB Kay Hian Pte Ltd for Cheng Good Hiang
Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin - - - -
22 Mayban Nominees (Tempatan) Sdn Bhd 2,000,000 0.37
Mayban Investment Management Sdn Bhd for Kumpulan Wang Simpanan Abdul Hamid bin Sh Mohamed - - - -
Pekerja (N14011980810) Eshah binti Meor Sulaiman - - - -
23 Amanahraya Trustees Berhad 1,899,500 0.35 Haizan bin Mohd Khir Johari - - - -
Public Islamic Opportunities Fund
24 HSBC Nominees (Asing) Sdn Bhd 1,830,000 0.34
Exempt An For JPMorgan Chase Bank, National Association
(Guernsey)
Notice of 18th Annual General Meeting
NOTICE IS HEREBY GIVEN THAT As Ordinary Business: As Special Business: Notice of Book Closure and Notice of
the 18th Annual General Meeting of 1. To receive the Audited Financial Statements for the financial year ended 31 To consider and, if thought fit, pass the following resolution, Dividend Entitlement and Payment:
Pos Malaysia Berhad will be held at December 2009 and the Reports of the Directors and Auditors thereon. with or without modifications, as ordinary resolution: NOTICE IS ALSO HEREBY GIVEN THAT the first and final
The Legend Grand Ballroom, Please refer to Note A. 6. Directors’ Fees dividend of 12.5 sen per ordinary share less 25% tax in
Legend Hotel Kuala Lumpur,
2. To declare a first and final dividend of 12.5 sen per ordinary share less 25% tax “That the payment of the Directors’ Fees of RM409,232 respect of the financial year ended 31 December 2009, if
Level 9, Putra Place, 100 Jalan Putra,
in respect of the financial year ended 31 December 2009. (Ordinary Resolution 1) for the financial year ended 31 December 2009 be hereby approved by the shareholders at the 18th Annual General
50350 Kuala Lumpur
3. To re-elect the following Directors who retire by rotation pursuant to approved.” Meeting, will be paid on 11 June 2010 to shareholders whose
on Wednesday, 12 May 2010 (Ordinary Resolution 8)
Article 115 of the Company’s Articles of Association, and who being eligible, names appear in the Register of Members or Record of
at 10.00 a.m. for the following
offered themselves for re-election : 7. To transact any other business of which due notice has Depositors at the close of business on 20 May 2010.
purposes:
(a) Puan Sri Datuk Nazariah binti Mohd Khalid (Ordinary Resolution 2) been given in accordance with the Companies Act, 1965
A Depositor shall qualify for entitlement to the dividend only
(b) Wee Hoe Soon @ Gooi Hoe Soon (Ordinary Resolution 3) and the Company’s Ar ticles of Association.
in respect of:
(c) Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin (Ordinary Resolution 4)
a. shares deposited into the Depositor’s securities account
4. To re-elect the following Directors who retire pursuant to Article 110
before 12.30 p.m. on 18 May 2010 in respect of securities
of the Company’s Articles of Association, and who being eligible, offered
exempted from mandatory deposit;
themselves for re-election :
b. shares transferred into the Depositor’s securities account
(a) Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor (Ordinary Resolution 5)
before 4.00 p.m. on 20 May 2010 in respect ordinary
(b) Haizan bin Mohd Khir Johari (Ordinary Resolution 6)
transfers; and
5. To re-appoint Messrs KPMG as Auditors of the Company for the ensuing
c. shares bought on the Bursa Malaysia Securities Berhad on
year and to authorise the Directors to fix their remuneration.
a cum entitlement basis according to the Rules of Bursa
(Ordinary Resolution 7)
Malaysia Securities Berhad.
By Order of the Board,
Sabrina Albakri binti Abu Bakar (LS8508)

Company Secretary
Kuala Lumpur,
20 April 2010
POS MALAYSIA ANNUAL REPORT 2009 Notice of 18th Annual General Meeting
Note A:
This agenda item is meant for discussion only as the provision
of Section 169(1) of the Companies Act 1965 does not require
a formal approval of the shareholders and hence is not put
forward for voting.
Notes:
1. A member entitled to attend and vote is entitled to appoint a proxy to 4. The instrument appointing a proxy or representative shall be deposited
attend and vote in his/her stead. A member may appoint a maximum at the Company’s Share Registrar’s office at Tricor Investor Services
of two (2) proxies to attend the Meeting provided that such member Sdn Bhd, (formerly known as Tenaga Koperat Sdn Bhd), Level 17, The
holds not less than the minimum board lot as specified under the Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, 59200
Rules and the Main Market Listing Requirements of Bursa Malaysia Kuala Lumpur not less than forty-eight (48) hours before the time set
Securities Berhad. for holding the Meeting or any adjournment thereof.
2. Where a member appoints two (2) proxies to attend the Meeting, 5. Additional Notes on Special Business::
the member shall specify the proportion of his/her shareholdings 5.1 Resolution on Directors’ Fees
to be represented by each proxy. A proxy may but need not be a The proposed Ordinar y Resolution No. 8 is in accordance
member of the Company and the provisions of Section 149(1)(b) of with the Company’s Ar ticles of Association and if passed,
the Companies Act 1965 shall not apply to the Company. Where a will authorise the payment of Director’s fees to Directors
member is an authorised nominee as defined under the Securities of the Company for their ser vices during the financial year
Industry (Central Depositories) Act 1991, it may appoint at least ended 31 December 2009.
one (1) proxy in respect of each securities account it holds with

ordinary shares of the Company standing to the credit of the said
securities account.
3. The instrument appointing a proxy shall be in writing under the hand

of the appointor or of his attorney duly appointed under a power
of attorney or if such appointor is a corporation, either under the
corporation’s seal or under the hand of an officer or attorney duly
appointed under a power attorney.
Proxy Form 18th Annual General Meeting
POS MALAYSIA BERHAD (229990-M)
CDS Account No. of Authorised Nominee*

Total Number of Shares Held
I/We, Tel no:

(FULL NAME OF SHAREHOLDER AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)

of
(FULL ADDRESS)
being a member of Pos Malaysia Berhad, hereby appoint the following:
I. (i) “A”
(FULL NAME OF PROXY “A” AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)

of
(FULL ADDRESS)
or failing him/her
(FULL NAME AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)

of
(FULL ADDRESS)
(ii) “B”
(FULL NAME OF PROXY “B” AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS) (if applicable)
NRIC (new) (old)

of
(FULL ADDRESS)
or failing him/her
(FULL NAME AS PER NRIC/PASSPORT NO. IN BLOCK LETTERS)
NRIC (new) (old)

of
(FULL ADDRESS)
OR
II. The CHAIRMAN OF THE MEETING (if no proxy named above);

as my/our proxy to vote for me/us and on my/our behalf, at the 18th Annual General Meeting of the Company, to be held at the Legend Grand Ballroom,
Legend Hotel Kuala Lumpur, Level 9, Putra Place, 100 Jalan Putra, 50350 Kuala Lumpur on Wednesday, 12 May 2010 at 10.00 a.m. and at any adjournment
thereof. My/our proxy is to vote as indicated below:
The proportion of my/our holding to be represented by my/our proxies are as follows:
Proxy “A” %
Proxy “B” %

100 %
Pos Malaysia Annual Report 2009 203

No. Ordinary Resolution For Against

1 Declaration of Dividend
2 Re-election of Puan Sri Datuk Nazariah binti Mohd Khalid as Director
3 Re-election of Wee Hoe Soon @ Gooi Hoe Soon as Director
4 Re-election of Tunku Dato’ Mahmood Fawzy bin Tunku Muhiyiddin as Director
5 Re-election of Tan Sri Dato’ Ir Muhammad Radzi bin Haji Mansor as Director
6 Re-election of Haizan bin Mohd Khir Johari as Director
7 Re-appointment of Messrs KPMG as the Company’s Auditors for the ensuing year
8 Approval of Directors’ Fees
Please indicate with an (“X”) in the appropriate spaces as to how you wish your votes to be cast on the Ordinary Resolutions specified in the Notice of
the 18th Annual General Meeting. If you do not do so, the Proxy may vote or abstain from voting at his/her discretion.
Signed this day of 2010

Signature(s)/Common Seal of Shareholder(s)
Notes:
1. A member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of his/her stead. A member may appoint a maximum
of two (2) proxies to attend the Meeting provided that such member holds not less than the minimum board lot as specified under the Rules and
the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
2. Where a member appoints two (2) proxies to attend the Meeting, the member shall specify the propor tion of his shareholdings to be represented
by each proxy. A proxy may but need not be a member of the Company and the provisions of Section 149(1)(b) of the Companies Act 1965 shall
not apply to the Company. Where a member is an authorised nominee as defined under the Securities Industry (Central Depositories) Act 1991,
it may appoint at least one (1) proxy in respect of each securities account it holds with ordinary shares of the Company standing to the credit of
the said securities account.
3. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly appointed under a power of attorney or if
such appointor is a corporation, either under the corporation’s seal or under the hand of an officer or attorney duly appointed under a power attorney.
4. The instrument appointing a proxy or representative shall be deposited at the Company’s Share Registrar’s office at Tricor Investor Services Sdn
Bhd (formerly known as Tenaga Koperat Sdn Bhd), Level 17, The Gardens Nor th Tower, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur not
less than forty-eight (48) hours before the time set for holding the Meeting or any adjournment thereof.
* Applicable to shares held through a nominee account.
Complete this form where applicable, place in envelope and post to:
The Share Registrar

TRICOR INVESTOR SERVICES SDN BHD (118401-V)
(formerly known as Tenaga Koperat Sdn Bhd)
Level 17, The Gardens North Tower
Mid Valley City, Lingkaran Syed Putra
59200 Kuala Lumpur

Pos Malaysia Berhad Annual Report 2009

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Pos Malaysia Berhad Annual Report 2009

Загружено:

Авторское право:

Доступные форматы

Group Financial Highlights POS MALAYSIA ANNUAL REPORT 2009

2009 2008 2007 2006 2005

MAIL BUSINESS COURIER BUSINESS RETAIL BUSINESS

develop new business opportunities postal products Price (RM)

6 Pos Malaysia Annual Report 2009 OUR BUSINESS AND ACCOMPLISHMENTS

SIMPLIFY ENGAGE DELIVER Annual General Meeting Board of Directors

Pos Malaysia weathered through this difficult period through

10 Pos Malaysia Annual Report 2009

On the international front, Pos Malaysia’s re-election into

As par t of our contribution to improving quality of service

Pos Malaysia also introduced the first ever Pos Automated

Moving Forward Into 2010

Can a GPS find incomplete addresses?

For the first time in 2009, PosLaju has been selected

PSH Express Highlights Moving Forward In 2010

2009 was a challenging year for PSH Express against a backdrop

PAM is essentially a self ser vice terminal, similar to a

Digicer t, the Licensed Certification Authority in Malaysia Moving forward

2009 saw Digicer t embarked on MyGSet PKI project for

Based on the Digital Signature Act (DSA) Performance

• ADVERTISING SERVICES • OUR VALUES ADDED SERVICES

Collaboration with 12 March 2009 To My Friend in Gaza

Bowling Friendly Match between PINTAR Motivational Camp

Buka Puasa with the Orphans

2 August 2009 Pos Malaysia FC won FAM Cup

ASEANPost RMC for IEMO

9 October 2009 World Postal Day

20 October 2009 More Banks became PosOnline Partners

Signing Ceremony between

48 Pos Malaysia Annual Report 2009

Pos Malaysia In the NewsPos Malaysia Annual Report 2009 49

BOARD OF DIRECTORS BOARD COMMITTEES

Par ticulars of other directorships in public companies:

Par ticulars of other directorships in public companies:

Corporate Social Responsibility

Introduction Risk Management Framework Reporting Structure

“The Directors are satisfied

1. Utilisation of Proceeds 6. Variation in Results 10. Non- Audit Fees

5. Sanctions and/or Penalties 9. Revaluation Policy

Audit Committee Meetings Responsibilities and Duties

Annually, the Internal Audit Department prepares a risk based

At the date of this report, there does not exist:

Group Company Group Company

(iii)Depreciation (continued) (e) Hire purchase liabilities

4. PROPERTY, PLANT AND EQUIPMENT

Additions - - 1,965 31 5,642 4,073 66,878 78,589

4. PROPERTY, PLANT AND EQUIPMENT (continued)

4. PROPERTY, PLANT AND EQUIPMENT (continued)

Additions - - 1,541 25 5,642 3,773 67,992 78,973

4. PROPERTY, PLANT AND EQUIPMENT (continued)

5. INTANGIBLE ASSET 6. PREPAID LEASE PAYMENTS

6. PREPAID LEASE PAYMENTS (continued) 6. PREPAID LEASE PAYMENTS (continued)

7. INVESTMENT PROPERTIES 8. INVESTMENT IN SUBSIDIARIES (continued)

Group Details of the subsidiaries are as follows:

Held by PSH Properties Sdn. Bhd.

8. INVESTMENT IN SUBSIDIARIES (continued) 9. INVESTMENT IN ASSOCIATES

Country of Effective Group Company

10. OTHER INVESTMENTS 10. OTHER INVESTMENTS (continued)

11. INVENTORIES 12. RECEIVABLES, DEPOSITS AND PREPAYMENTS

Group Company Group Company

Group Company Group Company

Cash and bank balances 119,219 91,504 87,916 79,656

(iii) Any eligible employee shall be eligible to participate