Scientex 1Q earnings fall 26% on lower property revenue

Ng Boon Ngee joined Scientex Berhad in 2005 and was appointed Company Secretary on 30th September 2009. Subsequently, she heads the Corporate Secretarial Department of Scientex Group since 1st August 2011. She has more than two decade of experience in handling corporate secretarial matters in professional secretarial firms and the corporate sector. She is a Chartered Secretary (ICSA) and is a Fellow of the Malaysian Institute of Chartered Secretaries and Administrators.

Phang Chi Ming graduated from the National University of Singapore in 1989 with a Bachelor of Laws (Honours) degree. He has been in legal practice since 1990 and obtained his Master of Laws from University of Malaya in 1996. He has various experience in commercial and corporate work as well as litigation. He was appointed as the Legal & Corporate Affairs Manager of Scientex Berhad since 14th January 2008

Goh Tian Chin joined Scientex Polymer Sdn Bhd in September 1995 as Assistant Production Manager. He was promoted to General Manager in February 2001 and since 1st July 2010, he has assumed the responsibilities of a Senior General Manager for the stretch film business. He is a graduate of University Science of Malaysia with a Bachelor’s Degree in Technology and has more than 10 years of experience in the polymer industry.

Choo Chee Meng joined Scientex’s property division in 2006 as an Assistant Finance Manager. He was promoted to Senior General Manager of Scientex’s property business on 1st August 2013. He graduated from University of South Australia, Adelaide with a Degree in Accounting and has more than 10 years’ experience in the field of accounting and property development.

Yau Kuan Yee joined Scientex in 1996 as a Division General Manager of stretch film business. He was appointed as the Senior Technical General Manager on 1st March 2015 and presently, is the Executive Director of Manufacturing Facilities since 1 August 2017. He has almost 30 years of experience in the plastics packaging industry and 25 years in stretch film segment. He graduated from Swinburne Institute of Technology, Melbourne, Australia with a degree in Manufacturing Engineering.

Jesselyn Chang Siew Sian is an accountant by profession. She graduated from University of Malaya with a Bachelor Degree in Accounting. She is a member of the Malaysian Institute of Accountants and Malaysian Institute of Certified Public Accountants. She joined Scientex Berhad in 2002 as Corporate Finance Manager and subsequently promoted to Group Financial Controller on 15th May 2003. She was appointed as the Executive Director overseeing corporate planning of the Group since 2014. She completed the Advanced Management Program in Harvard Business School in 2015.

Alex Khaw Giet Thye joined Scientex’s property division in 1996. Starting off as a project manager in Scientex’s subsidiary, Scientex Quatari Sdn. Bhd., he was promoted to General Manager on 1st February 2004 and subsequently, as Executive Director of Scientex’s property business on 1st August 2013. He graduated from University Science of Malaysia with a Degree in Housing, Building & Planning and has over 20 years of experience in construction and property development.

Gan Kok Khye graduated from North East London Polytechnic, London in 1985 with a Bachelor of Arts (Honours) in Business Studies. He joined the Scientex Group in 1988 and since then, has held various management positions in the subsidiaries of the Company. He was appointed as an Executive Director of the Group’s subsidiary, Scientex Packaging Film Sdn Bhd in 2002. Subsequently, he was appointed as the Executive Director of Scientex’s manufacturing business on 1st April 2002.

Choo Seng Hong graduated with a Bachelor of Accountancy from Universiti Putra Malaysia in 1993 and is also a member of the Malaysian Institute of Accountants. He was formerly the Finance and Administration Manager of Scientex. Currently, he holds various senior positions in the Company’s subsidiaries. Prior to joining Scientex in 1997, he was attached to KPMG from 1993 to 1997 and has experience in the fields of banking, oil and gas, and manufacturing. He was appointed as the Executive Director of Scientex’s manufacturing business on 1st March 2003 and presently, is the Head of Manufacturing Division.

Koay Teik Chuan joined Scientex in 1997. During the early stages, he was involved in the construction and development of Scientex’s flagship development in Johor. Prior to joining Scientex, he was handling various construction projects in different parts of the country. He was appointed as the Executive Director of Scientex’s property business on 1st November 2009. He received his higher education from the Institut Teknoloji Butterworth in 1978 and has more than 25 years of experience in various aspects of construction and property development including township projects. Presently, he is also the Assistant to the Managing Director since 2001.

Lim Peng Jin is currently the Managing Director of the Company. He was appointed to the Board on 20th January 1995 as the Group Executive Director and was re-designated as Managing Director on 6th November 2001. He is also a member of the Board’s Risk Management Committee. A Bachelor of Science (Honours) graduate in Chemical Engineering from the University of Tokyo, he began his career in Japan’s chemical industry before joining Scientex in 1991. In 1998, he completed a Programme Management Development course at Harvard University, USA. He has local and international working experience in the fields of polymer and chemicals from the early years of his career. He has adopted a hands-on leadership style within the Scientex businesses over the past 20 years.

By any yardstick, a half century is a long time. To give this some perspective, it took 50 years for man to reach the summit from the time the first photographs set Mount Everest apart as the ultimate challenge. Likewise, it took almost 50 years for cancer research to yield such progress in prevention and treatment from the time US President Richard Nixon signed the National Cancer Act as a challenge to find a cure.

These are challenges requiring courage and commitment, values that Scientex has embraced as its own. Similarly, the Scientex story is about taking up challenges and for this reason, the theme of our 50^th Anniversary is ‘Challenge New Heights Together’.

Our story may have begun 50 years ago, but it is only just taking off. After our incorporation in 1968, we made steady progress during the first 40 years. However, our efforts then were fragmented and disconnected. We lacked structure and our operations were not consolidated or streamlined. In the immediate years before 2008, Scientex operated 10 business units with 10 different sets of people, all working in silos independent of each other. To use a tug-of-war analogy, we were pulling on our own, but not pulling together.

The last 10 years were a different story. In 2008, we merged our listed entities, bringing two companies together as one. The same year, Scientex celebrated its 40th Anniversary, giving the Board, management and staff a common goal for all to cooperate and collaborate. Looking back, this was a seminal moment. We discovered we could achieve much more in lesser time by working single-mindedly to navigate in one direction. As a result, we formed an executive committee or Exco in 2009 to coalesce our focus and drive the company towards a collective vision and aspiration.

It was during these last 10 years that Scientex came into its own. In that period, we leveraged on our strengths to build capacity. At the same time, we developed our resources in capital, talent and technology that enabled us to undertake more ambitious projects to grow faster and go further. Following this exceptional decade of exponential growth and extraordinary achievements, Scientex is today a RM2.6 billion company with thousands of employees and operations spread throughout Malaysia and beyond.

Based on how far we have come, the tendency is to sit back and enjoy the fruits of our labour. Yet, it is not in our nature to rest on our laurels and let complacency creep in. Instead, we are ready to take on the next challenge, just as mountain climbers continue to attempt summiting Mount Everest and cancer researchers remain resolved in finding new pathways towards cures for different cancers.

In the next 10 years, we intend to push the boundaries and propel ourselves like never before. We have a new Vision 2028 to become a RM10 billion company with a production output of 1 million metric tonnes of flexible plastic packaging (FPP) and completion of 50,000 affordable homes.

This is an ambitious goal, one which is fraught with challenges, internal as well as external. In response, Scientex will remain nimble and responsive to the ever-changing market forces, avoiding the common trap of excessive bureaucracy which commonly afflicts companies as they grow in size. Our corporate philosophy of ‘management like water’ will continue to set us apart through lean management and our agility to navigate the volatile, uncertain, complex and ambiguous world ahead to seize opportunities wherever and whenever they appear.

Given this agility, we will intensify our investment to build capability and capacity. While we had RM620 million in assets and RM350 million in equity 10 years ago, we now have more than 5 times that amount with RM3.4 billion in assets and RM1.8 billion in equity, giving us the financial muscle for investment in new plants for manufacturing and acquisition of new land banks for property development whenever the need arises.

For our manufacturing division, we intend to drive annual capacity up from 450,000 metric tonnes to 1 million metric tonnes over the next 10 years. To reach this goal, we need to grow our market share by: capturing a slice of the rapid growth in demand for our existing products; securing new regional markets for our present offerings; and creating new solutions to penetrate different market segments. As we explore new frontiers to become a truly global player, our challenge is to learn and adapt to different market demands and conditions.

For our stretch film business segment, we will continue to tap our economies of scale to grow our volume-based model as we seek to venture into new markets. For this reason, we have invested in a new plant in the United States to expand our stretch film markets beyond Asia Pacific to the huge markets of the Americas.

In the case of our custom film segment, we first ventured into flexible plastic packaging for consumer-based products in 2013 following our acquisition of Great Wall companies. This opened the door to new opportunities for Scientex as our quality packaging products play an important role in enhancing packaging integrity to reduce food wastage and spoilage through better quality packaged products. We are now poised to tap into the fast-growing FPP market, which is expected to grow in excess of USD200 billion by 2020. The food and beverage (F&B) segment, which constitutes 70% of this market, will be a key focus for Scientex. By capitalising on our competencies, we will develop customised solutions for these specialised market needs in collaboration with our customers while also keeping pace with emerging trends such as e-commerce, convenience and sustainability. Our latest improvements through the adoption of digital printing technology in our production process are part of the continuous efforts to complement and supplement Scientex’s capabilities to meet changing customer requirements. Our specialty segment leverages on our joint ventures with international partners to produce specialty products such as adhesives and solar films. Through the transfer of skills and technology, we now have the competencies to move into high technology products that can respond to global market trends.

On the property front, Scientex has long been entrenched in the southern part of Peninsular Malaysia, providing affordable housing to the masses for the past 20 years. In line with our corporate philosophy, we continue to search for new ways to deliver affordable housing by tapping into our expertise and efficiencies in order to derive greater cost savings which are then passed on to our buyers. A decade ago, we were building at a rate of 500 units per annum. Today, Scientex is building 5 times the number of units at 2,500 per year. All in, we have delivered nearly 17,300 units of quality affordable homes, with high occupancy rates recorded for all our Johor and Melaka projects. To achieve our next 10-year aspiration, we need to look beyond our existing markets by crossing boundaries and extending our trademark of developing affordable housing in previously uncharted territories. Since last year, we have expanded from our traditional bases in Johor and Melaka northwards to Selangor and Perak as we strive to deliver 50,000 affordable homes by 2028.

As with both the manufacturing and property development divisions, going where we have never been before comes with a host of challenges. Here again, our people would need to push the envelope as they contend with new rules and regulations, different market sentiments as well as intense competition from established players with home ground advantage.

Central to these ambitions and aspirations is our embrace of sustainability as a catalyst to develop a company of the future and for the future. For many years, Scientex has been committed to driving sustainability across the economic, environment and social spheres.

Economically, Scientex’s robust business performance in recent years has significantly contributed to the financial growth and greatly improved the livelihoods of our stakeholders, from our shareholders, partners and associates to our employees and vendors. To reduce the impact of our operations on the environment, we have diligently adhered to the 3Rs programme of Reduce, Reuse, Recycle in every aspect of our manufacturing and property development activities. In addition, our quality packaging solutions have gone a long way to reduce food wastage for our customers by extending the shelf life of packaged food products. In property development, Scientex’s commitment to providing affordable housing has helped to put a roof over the heads of tens of thousands of Malaysians.

At Scientex, we are firm in our belief that sustainability drives growth, by generating opportunities and optimising resources in capital, assets and people while also harmonising our activities with the communities and environment within our considerable sphere of influence. To us, sustainability is a business imperative with the potential to ensure we can meet all our aspirations and achieve all our goals on a continuous and consistent basis.

What I have outlined represents our concerted approach to our ambitious target. Some may say this is a bridge too far for Scientex. Yet, we can be successful, if only we are courageous and fully committed to take up the challenge.

Mankind is at its best when we come out of our comfort zone to test ourselves and push our limits. In this regard, this is what we will and must do at Scientex. It is together that we can challenge for new heights.

Wong Chin Mun, a Malaysian, male, aged 74, is an Independent Non-Executive Director of the Company. He was appointed to the Board as a Non-Executive Director on 6 October 2017. He is also the Chairman of the Board’s Audit Committee and a member of the Nomination and Remuneration Committee.

Wong Chin Mun received the Teacher’s Certificate from the Ministry of Education of Malaysia in 1966 and graduated with Bachelor of Business (Accounting) Degree and Bachelor of Business (Secretarial Administration) Degree from Curtin University, Western Australia in 1972 and 1974 respectively. He is a Fellow of Australian Society of Certified Practising Accountants as well as associate members of Institute of Chartered Secretaries and Administrators, UK and Malaysian Institute of Accountants.

Wong Chin Mun worked as the Financial Controller/Company Secretary in Yeo Hiap Seng Bhd from 1974 to 1975. He then joined Nylex (Malaysia) Berhad (“Nylex”) as the Financial Controller/Company Secretary in 1976 and became the first local General Manager/Director of Nylex in 1980. He was promoted to the position of Managing Director in 1985 and left Nylex at the end of June 1994 to found TEC Asia Centre (now known as Vistage Malaysia Sdn Bhd), an international organisation which aims to help chief executive officers and entrepreneurs to manage change and grow their businesses. He had served on the National Export Council under the Ministry of International Trade & Industry (“MITI”) from 1989 to 1992 and was appointed to the National Branding Taskforce of MITI 2006 to 2009. He also served on the Board of Trustees of Malaysian Rubber Export Promotion Council from 2000 to 2002. Currently, Mr Wong is the Senior Independent Non-Executive Director of Sunway Berhad as well as the Independent Non-Executive Director of Khind Holdings Berhad. He serves on the Board of Trustees of Scientex Foundation since 2008. He is also the Chairman of the FMM-MIER Business Conditions Survey Committee and a Member of the FMM Strategic Policies Committee.

Dato’ Noorizah Binti Hj Abd Hamid, a Malaysian, female, aged 58, is an Independent Non-Executive Director of the Company. She was appointed to the Board as a Non-Executive Director on 7 November 2016. She is also the Chairperson of the Board’s Risk Management Committee and a member of the Board’s Audit Committee.

Dato’ Noorizah Binti Hj Abd Hamid graduated with a Diploma in Accountancy from MARA Institute of Technology in 1980, a Bachelor of Science Degree in Business Administration (Finance) and a Master Degree in Business Administration (Finance and Management) from Central Michigan University, United States of America in 1982 and 1984 respectively.

She was the former Non-Executive Chairperson and Managing Director/Chief Executive Officer of PLUS Expressways International Berhad (“PEIB”) and former Managing Director of PLUS Malaysia Berhad and PLUS Expressways Berhad. Presently, she sits on the Board of Directors of Mass Rapid Transit Corporation Sdn Bhd, which is wholly-owned by Minister of Finance Incorporated Malaysia, Amanah Mutual Berhad, PNB Merdeka Venture Sdn Bhd and various subsidiaries of PEIB.

Ang Kim Swee, a Malaysian, male, aged 60, is an Independent Non-Executive Director. He was appointed to the Board on 17 December 2014. He is also the Chairman of the Board’s Nomination and Remuneration Committee and a member of the Board’s Audit Committee and Risk Management Committee.

Ang Kim Swee graduated with Diploma in Accounting and Costing LCCI Higher. He is a Registered Financial Planner and a Chartered Financial Consultant registered with The Malaysian Insurance Institute. He is also an Audit Committee Member of The Institute of Internal Auditors Malaysia. He has attended Premier Business Management Program organised by Harvard Club of Malaysia in 2015. He has more than 30 years of working experience in various capacities including senior management roles in the areas of finance, costing, information technology systems and administration. Presently, he is the General Manager (Finance) of Meditop Corporation (M) Sdn Bhd, a well established Japanese corporation with international track records in manufacturing and sales of disposable medical devices and healthcare products. He is a pioneer since 1990 and is primarily responsible for the management of financial affairs of the company.

Lim Peng Cheong, a Malaysian, male, aged 56, is a Non-Independent Non-Executive Director of the Company. He was appointed to the Board as an Executive Director on 9 September 1988, and has held this position until 10 November 2003 when he was re-designated as Non-Executive Director. He graduated with a Bachelor of Science (Honours) in Business Studies from the City University, London, UK in June 1984. He is currently the Managing Director of Malacca Securities Sdn Bhd.

Lim Peng Jin, a Malaysian, male, aged 51, is currently the Managing Director of the Company. He was appointed to the Board on 20 January 1995 as the Group Executive Director and was re-designated as Managing Director on 6 November 2001. He is also a member of the Board’s Risk Management Committee.

Lim Peng Jin graduated with a Bachelor of Science (Honours) in Chemical Engineering from the University of Tokyo, Japan in 1990. He began his career in the chemical industry in Japan before joining the Company in 1991. He had also completed a course in Programme Management Development at Harvard University, USA in 1998. He has local and international working experience in the field of polymer and chemicals during the early years of his career and is very hands-on in the business of Scientex Group of Companies involving packaging, property, polymer and chemicals industries for the past 20 years. The success of the Group owes much to his extensive involvement in its operations and management.

Tan Sri Dato’ Mohd Sheriff Bin Mohd Kassim, a Malaysian, male, aged 79, is a Non-Independent Non-Executive Director and Chairman of the Company. He was appointed to the Board as Independent Non-Executive Chairman on 20 June 2003 and was re-designated as Non-Independent Non-Executive Chairman on 22 March 2018. He is also a member of the Board’s Nomination and Remuneration Committee.

Tan Sri Dato’ Mohd Sheriff graduated with a Bachelor of Arts (Honours) Economics degree from University of Malaya in 1963 and a Diploma in Economic Development from Oxford University, United Kingdom in 1969. He graduated with a Master of Arts in Economics from Vanderbilt University, USA in 1974.

He served as the Secretary General of Treasury, Ministry of Finance for 3 years from 1991 to 1994 and as Managing Director of Khazanah Nasional Berhad for 9 years from 1994 to 2003. He was a former Director of United Engineers (Malaysia) Berhad, RHB Bank Berhad and former Chairman of Renong Berhad, Projek Penyelenggaraan Lebuhraya Berhad, PLUS Expressways Berhad, Malaysian Institute of Economic Research, Manulife Holdings Berhad, Standard Chartered Bank Malaysia Berhad and Standard Chartered Saadiq Berhad. He was also a former President of the Malaysian Economic Association.

He also sits on the Board of PLUS Malaysia Berhad as Non-Executive Director and Chairman; and Yayasan UEM as Non-Executive Director. He is also a Non-Executive Chairman of Warisan Pinang Sdn Bhd, a property development company.