26 annual report for the financial year ended 31 December 2003 s Corporate Section Operations Review - Pos Malaysia Berhad Board of Directors 1 2 1 Dato’ Annuar bin Maaruf Chairman 2 Dato’ Ikmal Hijaz bin Hashim Managing Director & CEO 3 Datuk Wan Mohd Hanafiah bin Wan Mat Saman Director 3 4 5 4 Dato’ Dr. Halim bin Shafie Director 5 Datin Aida Boey bt. Abdullah Director 6 Datuk Low Seng Kuan Director 7 Encik Abu Huraira bin Abu Yazid Director 8 Dato’ Krishnan a/l Chinapan 6 7 8 Director Pos Malaysia & Services Holdings Berhad 27 Corporate Section s Executive Management Committee a Y. Bhg. Dato’ Ikmal Hijaz bin Hashim d En. Mohd Zarif Hashim (Managing Director / Chief Executive Officer) (Head, Corporate Planning & Business Evaluation) b En. S. M. Haja Alawadin S. Md Sulaiman e Tuan Hj. Mohamed Bakar (Chief Operating Officer, PosMel) (Chief Operating Officer, PosNiaga) f Puan Magaret S. C. Fam c Tuan Hj. Norddin Samadi (Company Secretary) (General Manager, Property Management) g Puan Hjh. Latifah Md. Khir (General Manager, Human Resource / Training) h En. S. Shanmugam (Chief Operating Officer, PosLogistik) d e g h j c i i Y. M. Raja Shahreen Raja Othman f (Chief Financial Officer) b a j Tuan Hj. Mohd Zin Abdul Manap (Chief Operating Officer, PosLaju) 28 annual report for the financial year ended 31 December 2003 s Corporate Section HEAD OF DEPARTMENTS 1. Chief Operating Officer, Datapos - Tuan Hj. Mohd Derus Harun 2. General Manager, Internal Audit - Puan Hjh. Che Norehan Yahya 3. General Manager, Information Technology - Tuan Hj. Abu Sujat Ikhsan 4. Head, Corporate Communication - Puan Rohaiza Hashim 5. General Manager, Office of MD/CEO - Tuan Hj. Nadza Abdul 6. General Manager, Quality & Documentation - Puan Hjh. Habibah Hassan 7. Deputy General Manager, Customer Service - En. Mohamed Saaid Abdul Manap STATE MANAGERS 1. State Manager, Kedah/Perlis - Tuan Hj. A. Raof Suhimi 2. State Manager, Pulau Pinang - Tuan Hj. Abdul Hadi Hamid 3. State Manager, Perak - En. Mohd Aziz Sulong 4. State Manager, Selangor - En. Koh Lai Yong 5. State Manager, Wilayah Persekutuan, K. Lumpur - Tuan Hj. Mohd. Noor Sulaiman 6. State Manager, Negeri Sembilan - En. Wan Sharpudin Ramli 7. State Manager, Melaka - Tuan Hj. Abd. Rahman Kadir 8. State Manager, Johor - En. Shahri Jikun 9. State Manager, Pahang - En. Abd. Razak Samsudin 10. State Manager, Terengganu - Tuan Hj. Din Hussin 11. State Manager, Kelantan - Tuan Hj. Othman Dari 12. State Manager, Sarawak - En. Muhamad Mat Nor 13. State Manager, Sabah - En. Mohd Said Mobin Pos Malaysia & Services Holdings Berhad 29 Corporate Section s CORPORATE STRUCTURE 30 annual report for the financial year ended 31 December 2003 s Corporate Section CALENDAR OF EV ENTS 1. Presentation of ISO 9001 : 2000 Certificate for WPKL Pos Malaysia Wilayah Persekutuan, Kuala Lumpur succeeded in extending the ISO Certification to 6 new sites involving 2 key Post Offices within the Kuala Lumpur Business Area and 4 business processing areas within the General Post Office, Kuala Lumpur, to ensure customers receive quality services. The Acting CEO Pos Malaysia Berhad, Encik S. M. Haja Alawdin presented ISO Certificates to a group of Management Representatives responsible for the respective sites during a ceremony held on 11 January, 2003. 2. Blood Donation Campaign Pos Malaysia Staff contributed towards a worthy cause as they came forward to donate blood at a Blood Donation Campaign held at the premises on 25 January, 2003. 3. Commemorative Stamps, Coin and Book of Technical collaboration in conjunction with XIII NAM Meeting Pos Malaysia Berhad issued two se-tenant stamps in 20 sen and 50 sen denominations to commemorate the XIII Conference of Heads of States or Governments of the Non-aligned Movement held in Kuala Lumpur from 20 – 25 February, 2003. This issue also placed on record Malaysia as the host country of the NAM Summit as well as its Chair for 2003-2006. 4. Father of Independence Commemorative Stamp Issue A Stamp Issue entitled Father of Independence was issued by Pos Malaysia Berhad to commemorate 100 years birth of the Late Tunku Abdul Rahman Putra Al- Haj on 28 February, 2003. He was the first Prime Minister of Malaysia who had led the country to Independence amidst shouts of ‘ Merdeka’ on the morning of 31 August, 1957. Pos Malaysia & Services Holdings Berhad 31 Corporate Section s CALENDAR OF EV ENTS (continued) 5. A Day with the Customer A Dialogue session was held for the public including leaders in society, representatives from various institutions and associations to provide a venue to raise their concerns with the Energy, Communications and Multimedia sectors. Such programs were undertaken by the Ministry of Energy, Communications and Multimedia to provide an effective system for the general public to provide feedback and respond to the Ministry’s role in ensuring the industry plays a dynamic role towards the development of the country and its people. 6. A Post Office opens at Bandar Country Homes, Rawang The Deputy Minister, Ministry of Energy, Communications and Multimedia, Malaysia officially opened the Post Office at Bandar Country Homes, Rawang on 29 May, 2003, in line with Pos Malaysia’s efforts to provide efficient and effective services to its customers. 7. Official Launch of the Subang Jaya Mail Delivery Depot A new mail delivery depot was launched in Subang Jaya on 5 June, 2003 to cater to the delivery needs of the customers within that area. Customers can now carry out their postal transactions under convenient surroundings with ample parking space to enable them to collect their registered and other mail. 8. Official Launch of PosLaju’s On Demand Pick-up ( ODP ) & Domestic Time Certain Service PosLaju introduced 2 new services to better serve the customer, namely the On Demand Pick Up and the Time Certain Service on 25 July, 2003. Customers using the ODP service can just call the PosLaju Center and a postman will collect items for posting right from the customer’s doorstep. The Domestic Time Certain Service guarantees delivery by 10 a.m. the next working day. 32 annual report for the financial year ended 31 December 2003 s Corporate Section CALENDAR OF EV ENTS (continued) 9. ICT Carnival, Sik – Baling The ICT Carnival in Sik - Baling was organized by the Ministry of Energy, Communications and Multimedia on 12 August, 2003 to foster ICT values ( Information Communication Technology ) amongst the school children as well as adults in the Sik and Baling areas. 10. Commemorative Stamp Issue in conjunction with 10th OIC Meeting Two pairs of se-tenant stamps in 30 sen and 50 sen denominations were issued on October, 2003 to commemorate the 10th session of the Islamic Summit Conference ( OIC ). Malaysia was honoured to host the meeting at Putrajaya, which gathered together 57 States to speak with one voice to safeguard the interests and secure the progress and well-being of their people and all Muslims in the world. 11. Breaking Fast with Darul Kifayah Orphanage, Kuala Lumpur Pos Malaysia Berhad expressed its social concern for the needy as it entertained children from the Darul Kifayah Orphanage to food, provisions and cash gifts on 19 November, 2003, thus making it a memorable Hari Raya for these less fortunate children. 12. Visit and Briefing Session by Y. B. Datuk Amar Leo Moggie, Minister of Energy, Communications and Multimedia Y. B Datuk Leo Moggie, Minister of Energy, Communications and Multimedia visited Pos Malaysia Berhad on 22 November, 2003 to share with the management the values and aspirations of the newly appointed Prime Minister. Pos Malaysia & Services Holdings Berhad 33 Corporate Section s CORPORATE HIGHLIGHTS Pos Malaysia Berhad (PMB) recorded operating revenue of RM647.1 million in 2003, a 0.825% impro ve m e n t over the re venue for 2002. The main source of revenue is PosMel which contributed 67.5% of the total re venue. PMB’s operating costs increased by 5% in 2003. The cost increase was unavoidable given the rise in fuel cost and wages. The biggest component of the cost is staff related cost which was 63% of the total operating costs. In 2003, a new Collective Agreement was signed. With the increase in wages, the manpower cost per employee increased by 4% whilst the revenue per employee remained flat. 34 annual report for the financial year ended 31 December 2003 s Corporate Section CORPORATE HIGHLIGHTS (continued) The postal rates in Malaysia are among the lowest in the world. The last revision was done in 1992. Low international tariffs resulted in many foreign mailers taking advantage of the postal rates in Malaysia to re-mail their items to the rest of Asia Pacific region. The low tariffs are not sufficient to offset international delivery charges set by the Universal Postal Union. In spite of the slim margin, PMB would need to invest in machines to increase its automation level and efficiency. Without counting on any tariff increase, PMB is doing its best to balance the needs for re-investment, dividend payout and universal service obligations. In light of that, efforts are being taken to position mail services as an advertising medium. With this strategy, PMB hopes to increase mail volume. As the country grows, the advertising mail is also expected to grow. For example, the mail volume per capita in Malaysia is 52 pieces. In countries such as Singapore and Germany, the mail volume per capita is approximately 200 pieces and 250 pieces, respectively. In addition, PMB will be focusing on PosLaju courier business as the next lever for growth. It is hoped that growth of PosLaju would in some way compensate the slim margin of other postal businesses. PMB would also review its operational and overhead cost structures. The company would find innovative ways to contain future cost increases. Pos Malaysia & Services Holdings Berhad 35 Corporate Section s STRATEGIC BUSINESS UNITS POSMEL The overall mail volume grew by 4% in 2003 to 1.2 billion items. Ordinary Mail There has been a significant increase of 5.17% in the volume of mail posted in the year 2003 as compared to previous years inspite of strong competition from the electronic media. The increase in commercial mail that is business to business, has a significant impact in this area. Overseas Mail (Outward and Inward) From the year 1999 to 2002 there has been a gradual decline in outward mail. However, the year 2003 recorded an increase of nearly 10% which is a positive sign in this area of business. The inward overseas mail for the year 2003 has also been on the decline due to the increased usage of e-mail and other latest forms of transmission. Registered Mail There has been no significant increase or decline in volume of registered mail. Aggressive marketing and advertising strategies are being undertaken to ensure growth in volume of registered mail. Steps have been taken to reduce complaints on delivery of this product to ensure greater customer confidence in this service. Pos Ekspres This product has been a favourite and has seen tremendous growth among customers from its introduction in the begining. However a decline in volume of growth was recorded from the year 1999 to 2003 as follows:- 2000/1999 2001/2000 2002/2001 2003/2002 50% 27% 25% 10% Festive Cards Festive cards is still a popular means of sending greetings. Over the last five years inspite of all the modern means of communication, the volume of festive cards posted has remained constant. 36 annual report for the financial year ended 31 December 2003 s Corporate Section POSMEL (continued) Community Cluster Letter Boxes PMB embarked on a programme to install community cluster letter boxes to replace the call point system of delivery and thus ensure quality delivery service to the rural areas. A total of 18 Community Cluster Letter Boxes were installed in various locations in the rural areas within Sarawak, Johore, Kelantan, Terengganu, Pahang, Kedah and Perlis. A total sum of RM646,000.00 was utilized to install these boxes to every household which in turn has benefitted the residents of the rural areas who have been experiencing pilfering of mail and delays in receiving letters. X-Ray Scanning Machines PMB purchased two units of x-ray scanning machines at a cost of RM982,300.00 to screen international mail at the KLIA Mail and Courier Centre. To date more than 200 parcels and registered items have been detained using these x-ray scanning machines. These machines can identify prohibited pirated DVD and VCD discs and also imitation goods such as watches and ladies handbags. These goods have been found to be falsely declared on the Customs Declaration form. The biggest seizure of 750,000 items of pirated DVD discs destined for Manila, Philippines was also detected by these machines. Corporate Mail Management PMB provides Corporate Mail Management Services as a total service solution to corporate customers at the customer’s own premises for administering and managing their corporate mailing needs. A total of 21 corporate bodies are presently using this service, the latest being Sistem Televisyen (M) Bhd, TV3. Apart from enjoying value-added services such as sale of stamps and payment of utility bills, corporate bodies also acknowledge this service as one of the most economical and effective system which increases productivity, efficiency and profit in the handling of mail. Direct Mail / Admail Service The Direct Mail / Admail Service was first introduced in the 90s as an alternative to the traditional form of advertising. It enables customers to promote their business and services through the distribution of addressed and non-addressed mail at reasonable cost. This services helps to increase the loyalty of customers as it complements and enhances marketing and sales promotion programmes to existing and new customers. The Direct Mail service enables businesses to offer their products and services to their customers on a personalized and confidential nature. PMB also offers rebates for the mail posted, depending on the amount and make up of the mail. The Admail service is the alternative that gives direct approach for non-addressed mail (including product samples) which are dropped into targeted premises within a specific time frame. With a dynamic business development programme and a coordinated operations process in place, we are confident the year 2004 would yield higher revenue and a better profit margin. Pos Malaysia & Services Holdings Berhad 37 Corporate Section s POSLAJU In tandem with encouraging recovery growth of the national economy in 2003, Poslaju, the courier arm of PMB registered 10% increase in revenue over the previous year with a total volume of 10.2 million items handled. The uptrend in Poslaju business was attributable to initiatives undertaken in several key areas like introducing new products, operational process improvement, IT-related projects and training and development programs. In July 2003, two new products, Domestic Time Certain Service (TCS) and On Demand Pick-up (ODP) were introduced in our continuous efforts to respond to customers’ needs. The Domestic TCS guarantees the delivery of items before 10.00 am in 25 major cities and towns in Malaysia whereas the ODP is a service specially tailored to the needs of non-contract customers. The ODP service enables customers to “send from your doorstep” with just a phone call. These two new products have been enjoying encouraging sales since launching. It is another feather in the cap for Poslaju after the successful launching of the Same Day Delivery (SDD) service in 2002. Indeed, we are proud to be the only domestic courier company offering the widest range of courier services across the length and breadth of the country. For the international sector, the TCS was expanded to Tokyo in December 2003 in line with our objective of expanding TCS to major cities in Asia. Singapore was the pilot project for international TCS in October 2002. TCS 1 pm to Tokyo guarantees the delivery of items to Tokyo before 1.00pm the next working day. This service caters to the business community, particularly for the d e l i very of urgent and important documents like c o n t ract papers, tender documents, shipping documents, legal papers, etc. 38 annual report for the financial year ended 31 December 2003 s Corporate Section POSLAJU (continued) Underlying the successful launching of new products were the smooth implementation of the e-Poslaju system and operational process improvement which enable an efficient process-flow with quality, reliable and state-of- art track and trace system. Moving forward to 2004, Poslaju will continue to focus on improving operational efficiency, pro d u c t enhancement eg. extending TCS to Miri and Kuching, expansion of reachability, enhancement of value-added service to support international business and establishing a customer-driven organization via various customer service initiatives. People have always been Poslaju’s most valuable asset; therefore human resource development programmes will be aggressively implemented in the following years. In line with PMB’s strategic plan to develop a total customer service culture throughout the organization, Poslaju will embark on a ‘Total Customer Care’ Program which involves the training and development of 1,280 employees in Poslaju. Pos Malaysia & Services Holdings Berhad 39 Corporate Section s POSNIAGA PosNiaga, a Strategic Business Unit of Pos Malaysia Berhad, is entrusted to provide efficient, trustworthy and convenient retail services to its customers. The scope of business comprise the sale of stamps and postal stationery, acceptance of postal items, agent for Payee Cooperation (Tenaga, Telekom, Water Authority, Telco), Unit Trust Fund (Permodalan Nasional Berhad), Pusat Zakat, Insurance Companies and government organizations including the Department of Road Transport, Election Commission and Companies Commission of Malaysia. It also provides money transfer services and the sale of philatelic items and merchandise. Network strength Pos Malaysia Berhad has the largest physical network in the country with a total of 5,497 postal outlets, out of which 650 are Post Offices, 5 Mobile Post Offices, 213 Mini Post Offices, 339 Postal Agencies and 4,290 Stamp Vendors. Postal stationery vending machine With its extensive network, PosNiaga is able to act as an agent for more than 110 organizations. There are more agents in the pipe line as it is proven that the Post Office is the most cost effective and convenient way of reaching the masses in both the urban and rural areas. Performance In the financial year 2003, PosNiaga’s collection recorded a 0.6 % increase in turnover from RM9,764,694,997 in 2002 to RM9,821,633,099 in 2003. The average growth rate of turnover for the past two years is 1%. PosNiaga handled 89.32 million transactions in 2003 and the average growth rate of transactions handled for the past two year is 1.6%. 40 annual report for the financial year ended 31 December 2003 s Corporate Section POSNIAGA (continued) Highlights • PMB renewed 5.36 million road tax and driving licences which represent 25% of the total renewal of road tax and driving licences in the country. • 278,721 new voters have registered and changed their addresses through the Post Office. • Appointed as an agent for Air Asia. This enables customers to pay for their Air Asia tickets at the Post Office. • PMB was appointed as an agent for the payment of Zakat for following ‘Pusat Zakat’ organization namely: Pusat Zakat Selangor, Pusat Zakat Melaka, Pusat Zakat N. Sembilan, Majlis Agama Islam dan Adat Melayu, Perak (MAIP) • Takaful Ikhlas Sdn. Bhd. has appointed PMB as an agent, thus enabling the Post Office to provide a wide range of insurance products to customers, beside the existing insurance products provided by Takaful Nasional Sdn. Bhd., Malaysian Assurance Alliance Bhd., Kurnia Insurance (M) Bhd. and AMI Insurance Bhd. • The first stamp with fragrance (Roses in Malaysia) was issued on 22 February 2003. • 54,735 local and foreign stamp collectors have purchased philatelic products via SODA accounts, thus recorded the fact that more people have acquired an interest in collecting Malaysian stamps. • The Malaysia Book of Records has recorded Muzium Setem dan Filateli, Muzium Negeri, Seremban, Negeri Sembilan as the first such muzium in the country. The Largest Stamp Album in Malaysia, produced by Sekolah Menengah Pendeta Za’ba, Taman Paroi Jaya, Seremban also entered The Malaysia Book of Records. • Our Post Office which is located at SS15 Subang Jaya was awarded the Minister’s Quality Award 2003 (Category : Innovation) by the Ministry of Energy, Communications and Multimedia. • Queue Management System (QMS) was installed at 64 Post Offices throughout the country for convenience of customers. • The introduction of the Customer Service Center at the 21 selected post offices provides an efficient service for the renewal of vehicle insurance and road tax, besides rendering services such as registration of voters and Information Center. • 30 stamp and postal stationery vending machines have been installed in various locations at the Klang Valley and KLIA for the convenience of customers. Pos Malaysia & Services Holdings Berhad 41 Corporate Section s POSNIAGA (continued) Moving forward Future plans are underway to elevate PosNiaga to greater heights and to materialize an objective into reality. First and foremost, the renewal of road tax and driving licences will be extended to more outlets, coupled with the appointment of more Insurance agents, thus providing convenience for the public to renew their insurance and road tax at the Post Office. The above process is made even simpler by the e-cover note which was introduced by the Government recently. Customers do not have to produce a physical copy of their cover note or insurance policy as the transaction status can be checked electronically. PMB will continue to add-in and extend its products and services to its postal network. The payment of zakat will be extended to include other zakat organizations throughout the country. New agency services including the payment of insurance premiums and bank loans will be introduced. For the financial services, Western Union service will be available for the sale and enhancement of money provided by the Post. Other future development plans include the installation of QMS at more Post Offices, the introduction of various modes of payment at the counter using Credit Cards and extending business hours till night at selected Post Offices. New retailing models such as payment online and the upgrading of Information Technology which enables more real-time transactions between the Post and third party Agency will be introduced to portray and develop a new image for postal outlets. Philatelic Section 1. Introduction During the year 2003, Pos Malaysia issued 14 Commemorative and Special Issues. These issues were based on interesting themes ranging from history, flora, fauna, heritage, personalities, technology and the development of institutions. The themes issued were also chosen based on public interest in current issues such as roses, fighting fish, Malaysia made Vehicles; Scooter and Island Resorts. Malaysia’s achievement in the international arena in hosting the 10th OIC Conference and the 13th NAM Conference was also recorded in the issue of Commemorative Stamps. 2. Type of purchase Members of the public may purchase new stamps, First Day Covers and other philatelic products through three channels provided by the Stamp and Philatelic Section as follows: 2.1 The Post Office Counters These stamp enthusiasts are categorised as serious collectors. They are senior stamp collectors and will always frequent the post office counters whenever there are new stamp issues. 2.2 Purchase through Standing Order Deposit Account (S ODA) This group consists of serious collectors who will not miss any new stamp issued. These collectors will receive each new issue and other philatelic products through Posdaftar whenever there are new stamps issued. 2.3 Philately Counters / Gallery These stamp enthusiasts are categorised as amateur collectors. They collect stamps selectively based on specific themes. They are also on the look out for unique stamps such as misprints or stamps that may have technical mistakes. They are willing to travel all over the country if they have information about such stamps. 42 annual report for the financial year ended 31 December 2003 s Corporate Section POSNIAGA (continued) Philatelic Section (continued) 3. Standing Order Deposit Account (SODA) A total number of 52,753 people operated the Standing Order Deposit Account in 2003. Heading the list is Selangor with 6145 accounts, Sarawak 6109, Penang 6021, Perak 5820, Johor 5187, Wilayah Persekutuan 5095, Sabah 4886, Kedah 3703, Pahang 2098, Negeri Sembilan 2066, Kelantan 1460, Malacca 1332, Terengganu 570 and Perlis 279 while 1982 accounts are overseas account holders. The number of new Standing Order Deposit Accounts opened in 2003 were as follows: No. New accounts opened at Philately Counters 393 New accounts opened at Post Office Counters 514 New accounts opened through the post 208 4. Local Market 4.1 The contribution from the local sector is relatively small as compared to Malaysia’s population of 24 million people. It is estimated that there are only 13,000 stamps enthusiasts in the country (based on the number of enthusiasts who bought First Day Covers and the number of Standing Order Deposit Account holders). The local market has the potential to expand especially among school children besides encouraging the existing stamp enthusiasts. For the local market, the Post Offices as outlets and main centers played a vital role in attracting new stamp enthusiasts. 4.2 Sekolah Menengah Teknik Ampangan, Seremban registered their name in The Guinness Book of Records in the Longest Stamp category in Malaysia. Sekolah Menengah Pendeta Zaa’ba registered their name under the Biggest Stamp Album Book Category while the Biggest Registered Letter was registered by Sekolah Menengah Kebangsaan Tunku Khursiah. Such achievements in stamp collecting as a hobby has led Maktab Rendah Sains MARA to invite Pos Malaysia to establish a Philatelic Club at all MRSM outlets in 2004. 5. Overseas Market Pos Malaysia has succeeded in exploring the overseas market. At present we have 4 agencies that buy our stamps and other philatelic products directly through the internet. These agencies are namely the International House of Stamps, Thailand, Japan Agency, Max Stern, Australia and Crown Agent Stamp, Britain with a total purchase of RM 108,443.78. Roses Pos Malaysia & Services Holdings Berhad 43 Corporate Section s POSNIAGA (continued) Philatelic Section (continued) 6. Achievements through 2003 6.1 Pos Malaysia won the ‘Best Joint Issue 2002’ awarded by the International Philatelic Society of Joint Issues Collector for the Malaysia – China Joint Issue on 27 June, 2002 6.2 The issue of the first fragrant stamps on Roses in Malaysia on 22 February 2002. This Issue has become the most outstanding and popular issue for the year. 6.3 The issue of embossed stamps for Island Resort and Beaches issued on 26 August 2003. These stamps were issued in conjunction with Malaysia’s ownership of Pulau Sipadan and Ligitan. Island Resorts We are looking forward to a better performance in 2004 with better planning and more aggressive promotion efforts. The year 2004 will focus on themes that may interest the public such as flora and fauna. At least 50% of Stamp designs will also be produced by actual artwork and not through graphic designing except for stamps that have imaginary themes. Stamps on an international theme will be issued in 2004 which may be a Joint Issue with China. Fighting Fish 44 annual report for the financial year ended 31 December 2003 s Corporate Section POSLOGISTIK The postal industry’s landscape is changing with liberalization knocking on our doors. The art of sustaining in business and registering growth requires market area development and innovation. As the Company leaps forward to be more proactive in analyzing and fulfilling customer needs, new focus is required in establishing a logistics business to ensure that our customers are provided with a host of integrated services. This business group, in the initial stages has been entrusted to manage both the fleet of vehicles and air transportation network used for the delivery of mail, courier and parcels in the most cost effective manner. We would then move forward to provide tailor made logistics solutions which should include pick-up, warehousing and door-to-door delivery. Our ultimate plan is to offer comprehensive supply chain management services to manage the complete flow of goods and information for our customers. In the logistics business, success is driven by speed of its services together with flexibility and simplicity. Our mission is to deliver value to our customers by providing the most reliable and efficient solutions in distribution and logistics in a most cost effective manner. HUMAN RESOURCE DIVISION EMPLOYEE R ELATIONS Management-Union Relationship Pos Malaysia Berhad has always maintained a good and harmonious working relationship with the postal employees’ Unions through frequent meetings held between management and the in-house union members. For year 2003, two meetings were held in February and October between management and the in-house union members from West and East Malaysia. On 23 August 2003, the fourth Collective Agreement (CA) was successfully concluded and signed between the management and the postal employees’ unions retrospective from 1 January 2003, for a period of three years till December 2005. Employee Welfare In our efforts to take care of the employees’ welfare, various activities were held throughout the year. The Staff Welfare Fund was set up to assist employees in times of need, depending on the nature of the occasion. The Fund has been used to contribute towards bereavement expenses of an employee and/or spouse, long term critical illness, permanent disability, medical assistance, natural disaster and gifts when visiting the sick. In 2003 a total of RM63,400 have been utilized for this purpose leaving a balance of RM 2.1 million. For the coming year, we will be looking at how the utilization of this Fund could be increased for the benefit of the employees. We are striving towards becoming an employer of choice and be responsible for the well-being and welfare of the employees. Employee Development The company is committed to continue developing the employees, through formal and informal training, in instilling new values, skills and knowledge. Pos Malaysia Berhad in collaboration with University Malaya Centre for Continuing Education (UMCCed) introduced the Diploma in Business Management, a two year programme, to its employees. A total of 32 employees were selected to participate in this programme which was started in September 2003. One of the main objectives of this programme is to motivate employees to pursue higher education for their career development and advancement. Pos Malaysia & Services Holdings Berhad 45 Corporate Section s CUSTOMER SERVICE Pos Malaysia Berhad set up its Customer Service Center in May, 2003 to function as the trusted channel attending to customer feedback and queries. This center, located at the 1st Floor, Pos Malaysia Headquarters, Kuala Lumpur, provides a comfortable, friendly and convenient platform to enable transactions between customers and PMB. This center is manned by able Service Agents who are trained to handle and provide quick responses to all enquiries, feedback, complaints and suggestions received through the telephone, e-mail, fax and through personal visits. A Call Management system has been put in place to handle customer queries related to Postcode, PosLaju tariff and parcel services. Customers may also enquire the delivery status of their PosLaju, Pos Ekspres and Posdaftar transactions. The Customer Service Center also allows for an online handling of feedback from customers which is categorized according to issues related to policy and issues related to services. This Issue Management System has enabled the company to collate and use the relevant data towards the rating of customer satisfaction and the implementation of follow up plans thereafter to better serve the customers. PMB will continue its efforts and strive to provide effective and efficient customer service for the year 2004. Plans are underway to reorganize and put in place various other channels for responding to customers and their ever changing needs. A dedicated telephone line may be introduced to enable the company to respond immediately to all enquiries from the customers. Customer may also visit the PMB website for an insight into the company and its latest products. The cause of customers will continue to remain the roadmap for customer service focus and response. MINISTER OF E NERGY, COMMUNICATIONS AND M ULTIMEDIA QUALITY AWARD 2003 PMB’s effort in being innovative in introducing a new concept for the Subang Jaya Post Office was rewarded when it won the Award for the Innovation category in the Ministry of Energy, Communications and Multimedia Quality award 2003. The award which was presented by Y.B. Dato’ Amar Leo Moggie, Minister of Energy, Communications and Multimedia during the Ministry’s Quality Award Dinner held on 18th January 2004 has earmarked PMB’s innovation in providing excellent services and facilities based on the following criteria: 46 annual report for the financial year ended 31 December 2003 s Corporate Section a. Facilities for the customer. b. Preparation in attending to the customer. c. Good practice of counter staff. d. Good management support. e. Staff involvement. f. Efforts in identifying and fulfilling the customers’ needs and expectations. The Subang Jaya Post Offce has introduced an open concept counter which is more customer friendly as it allows face-to-face interaction between both the PMB staff and the customer. A Customer Service Corner has also been established at the Post Office for customer convenience in getting information regarding the Insurance and all other services offered by PMB without having to queue at the counter. As a ‘One Stop Center’ the Subang Jaya Post Office is ready to fulfill almost all of its customers’ needs through its Kedai Pos, in house public telephone and other facilities. PMB’s other products such as stamps, Pos Ekspres envelopes, philatelic items are also sold from a vending machine as an alternative for customers to easily obtain PMB ’ s products.