TUN ABDUL RAZAK RESEARCH CENTRE ANNUAL REPORT 2014

TUN ABDUL RAZAK RESEARCH CENTRE 

ANNUAL REPORT 2014 

TUN ABDUL RAZAK RESEARCH CENTRE 

A research and promotion centre of the Malaysian Rubber Board 

Company registration number: 336256 

TARRC, Brickendonbury, Hertford, SG13 8NL, United Kingdom 

T: +44 (0)1992 584966 F: +44 (0)1992 554837 E: general@tarrc.co.uk 

www.tarrc.co.uk 

@tarrcuk 

#TARRC 


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2 www.tarrc.co.uk 

TARRC welcomed a visit from 

YAB Dato’ Seri Mukhriz Tun Dr Mahathir, 

Chief Minister of Kedah on 14th April 2014. 

He was shown one of the bearings used on 

the second Penang Bridge by TARRC’s CEO, 

Dato’ Dr Kamarudin Ab-Malek

THE TARRC ANNUAL REPORT FOR 2014 

Opening of the second Penang Bridge, 

Sultan Abdul Halim Muadzam Shah Bridge, 

on 1st March 2014 

05 THE BOARD 

07 SENIOR STAFF 

18 CHAIRMAN’S FOREWORD 

20 STRATEGIC & DIRECTORS’ REPORT 

24 REVIEW OF THE YEAR 

46 ANNUAL FINANCIAL STATEMENTS 

46 REPORT OF THE INDEPENDENT AUDITORS 

52 NOTES TO THE FINANCIAL STATEMENTS 

64 STAFF LECTURES, POSTERS & PUBLICATIONS 


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One of TARRC’s 

primary activities in 

2014 was to promote 

the sustainable 

speciality rubber, 

Ekoprena. An 

exhibition stand was 

manned by TARRC 

personnel at Tire 

Technology Expo 2014 

in Cologne, Germany 

from 11th-13th 

February 2014

THE BOARD 

as at 31st December 2014 

LEADING INNOVATION FOR THE FUTURE 

Chairman 

Datuk Dr Mohd Akbar 

bin Md Said 

Director General, 

Malaysian Rubber Board, 

ex-officio 

(Appointed 24th July 2015) 

Chairman 

Datuk Dr Salmiah 

Ahmad DPSM, FASc, EMBA 

Director General, 


ex-officio 

(Retired 23rd July 2015) 

Vice-Chairman 

Dato’ Dr Kamarudin 

Ab-Malek DIMP, FASc, SMP, 

FIMM, ARSM 

London Representative, 


ex-officio 

(Appointed 24th March 2010) 

Board Member 

Datuk Abd Halim Hamid 

Appointed by the 

Minister of Plantation 

Industries and 

Commodities, Malaysia 

(Appointed 1st January 2012) 

Board Member 

Mr Lim Kwee Shyan 





(Appointed 1st January 2012) 

Board Member 

Dr Zakaria Abd Hadi 





(Appointed 1st January 2012, 

resigned 28th January 2015) 

Accounts Supervisor 

Zaila Bakar CAT 

Registered Office and Laboratories 

Tun Abdul Razak Research Centre, 

Brickendonbury, Hertford, SG13 8NL, UK 

Board Member 

Dr Stuart Cook 

Director of Research, exofficio 

(Appointed 1st July 2009) 

Solicitors 

Longmores 

Auditors 

Wags LLP t/a Wagstaffs 

Chartered Accountants and Statutory Auditors 

Bankers 

CIMB Bank Berhad, Barclays Bank PLC 


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ORGANISATION STRUCTURE 


TARRC Board Meeting in Kuala Lumpur, 5th September 2014 

6 www.tarrc.co.uk

SENIOR STAFF 


FURTHERING ADVANCES IN RUBBER SCIENCE 

AND ITS APPLICATIONS 

CEO 

Dato’ Dr Kamarudin Ab-Malek DIMP, FASc, SMP, FIMM, ARSM 

Director of Research 


Head - Industry Support 

and Engineering Division 

Hamid Ahmadi MSc 

Senior Research Fellow 

Dr Andy Chapman 

(Head until 2nd June 2014 - 

Materials and Biotechnology 

Division) 

Assistant Company Secretary 

Malcolm Harris 


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Quality Manager/ Safety 

Officer 

Charles Stephenson MA 

Accounts Supervisor 

Zaila Bakar CAT 

IT Manager 

David Newton BSc 

Site Manager 

Stuart Ballard BEng, CEng 

IT Administrator 

Prasaj De Silva BSc 

Head - Rubber Consultants 


8 www.tarrc.co.uk

MARKET INTELLIGENCE AND PROMOTION UNIT 

Unit Head 

Kristina Lawson MSc, MBA, 

MCLIP 

Market Development and 

Promotion 

Gail Reader BSc 


Promotion 

David Cawthra BA 


Promotion 

Norain Tyler BA 


Promotion 

Sarah Mahyudin BA 


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INDUSTRY SUPPORT AND ENGINEERING DIVISION 

ENGINEERING DESIGN UNIT 

Unit Head 

Dr Alan Muhr CPhys, CEng, 

MIMMM 

Finite Element Analysis 

Dr Julia Gough 

Engineering Design 

Ian Stephens FIMechIE 

Mechanical Properties and Testing 

Dr John Kingston GradIMMM 

Vibration and Seismic Control 

Judith Picken MSci 

Creep/Stress Relaxation 

Robert Picken MA 

Rubber Fatigue 

Dr Jean-Louis Poisson 

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www.tarrc.co.uk


INDUSTRIAL SUPPORT UNIT 

Unit Head 

Dr Marina Fernando DIC 

Senior Rubber Technologist 

Colin Robinson HNC 


PRODUCT EVALUATION AND TESTING UNIT 

Unit Head 

Charles Forge MSc 

Tyre and Testing Technologist 

Hanna Peltonen MSc 

www.tarrc.co.uk 11

MATERIALS AND BIOTECHNOLOGY DIVISION 

ADVANCED MATERIALS AND PRODUCT DEVELOPMENT UNIT 

Unit Head 

Paul Brown MA 

Thermoplastic Vulcanisates/ 

Tyre Compounds 

Jaymini Patel BSc, CEng 

Atomic Force Microscopy 

Dr Anna Kepas-Suwara 

Nanocomposites 

Dr David Lowe 

Tyre Compounds 

Dr Pamela Martin 

Tyre Compounds/Novor 

Graham Spiller BSc 

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www.tarrc.co.uk


BIOTECHNOLOGY UNIT 

Unit Head 

Dr Maria Kolesnikova- 

Allen 

Deputy Head 

Dr Alessandra Di Cola 

Plant Genomics 

Dr Ishtiaq Khaliq 

Plant Genomics 

Rachel Greenhill BSc 

Bioinformatician 

Ewan Mollison MSc 

Bioinformatician 

Dr Christopher Middleton 

Plant Proteomics 

Dr Nurul Siddiqui 

www.tarrc.co.uk 13


MATERIALS CHARACTERISATION UNIT 

Head 

Dr Mark Perkins 

Nitrosamine Testing 

Paul Gugan BSc 

Microscopy 

Dr Robin Davies 

Spectroscopy and Thermal Analysis 

Colin Hull BSc 

Spectroscopy 

Susanna Mathys MSc 

Pharmaceuticals Extractables 

and Leachables 

Anna Benton BSc 

Extractables and Leachables 

Chromatography 

Leighton James BSc 

Liquid Chromatography 

Jolanta Bonfante MSc 

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www.tarrc.co.uk

Liquid Chromatography 

Dhiren Heisnam MSc 

ISO Testing 

Gemma Channon MSc 

Nitrosamine Testing 

Ingrid Heyes BSc 

www.tarrc.co.uk 15

TARRC 

Brickendonbury 

Hertfordshire, UK 

MAIN OFFICES: 

MARKETING & PROMOTION 

ADMINISTRATION 

RUBBER CONSULTANTS 

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www.tarrc.co.uk

BIOTECHNOLOGY 

TYRE TESTING 

ANALYTICAL & MATERIALS 

LABORATORIES 

MILL ROOM 

PHYSICAL TESTING 

INDUSTRIAL SUPPORT 

ENGINEERING DESIGN 

TYRE RETREADING 

www.tarrc.co.uk 17

CHAIRMAN’S FOREWORD 

STEERING THE MRB AND TARRC AS GLOBAL CENTRES 

OF EXCELLENCE FOR RUBBER R&D 

Natural FR – has resulted in a low smoke, low toxic, 

halogen-free black coloured compound that has passed 

both the EU standard for use in flooring rail applications 

and the more stringent British Standard smoke density test. 

I am delighted that a commercial agreement with an 

entrance matting supplier to London Underground was 

signed during the year and expect to see an increase in 

uptake of the material in the rail sector. Meeting the critical 

specifications that are required by London Underground is 

a major step forward. I am pleased that further work to 

develop coloured compounds for use in rail and other 

sectors is also progressing well. 

Datuk Dr Mohd Akbar bin Md Said 

I write this Foreword as I begin my first year in office as the 

Director General of the Malaysian Rubber Board and 

Chairman of the TARRC Board. I would like to thank Datuk 

Dr Salmiah Ahmad, who retired on July 23rd 2015, for her 

tireless work and commitment to our organisation over the 

past five and a half years. 

In 2014, the MRB launched the One Nation Rubber 

Strategy (1NRS) under the guidance of Datuk Dr Salmiah. 

1NRS industry strategies are focused on increasing the 

local supply of raw materials, the competitiveness of NR 

productivity, commercialising speciality rubbers and 

promotion of rubber as a sustainable material. 1NRS is 

specifically planned to ensure that barriers to the growth of 

the rubber industry are eliminated and the objectives of the 

Rubber National Key Economic Areas (NKEA) are met. 

TARRC’s R&D activities play a key part in the success of 

the uptake of NR and speciality rubbers as green materials 

for use in the manufacturing industry of rubber-based 

products. 

One of TARRC’s projects demonstrates precisely how 

applied R&D can have a direct impact on achieving our 

goals, in this case finding new markets for NR by 

highlighting its green credentials. TARRC’s work to develop 

and commercialise a fire retardant NR-based material – 

Work on Ekoprena, one of MRB’s speciality rubbers, for use 

in tyres, is a key project at TARRC and has resulted in 

practical formulations as well as advanced mixing and 

processing technologies. To ensure uptake of Ekoprena by 

tyre manufacturers, it is necessary to up-scale the mixing of 

compounds. It is therefore encouraging that towards the 

end of the year, successful large-scale mixing trials of a 

truck tread compound developed by TARRC technologists 

were carried out at the facilities of a major EU tyre 

retreading compound manufacturer, confirming that the 

compound performs well in the commercial tyre industry 

manufacturing environment. Through TARRC’s promotional 

activities, customer awareness of Ekoprena as an advanced 

speciality rubber has increased and an enhanced image of 

the NR industry as sustainable and environmentally friendly 

has been achieved. 

Biotechnology is a subject of great importance for the 

successful growth of the rubber industry in Malaysia. I 

believe the work TARRC is carrying out to improve the 

yield, quality and disease resistance of Hevea brasiliensis 

under MRB’s Malaysian Rubber Genome Programme will 

provide a competitive edge for our smallholders in the 

future. I also am pleased with the biotechnology team’s 

success in the development of the Latex-T to detect 

allergens in gloves and other latex products and can foresee 

this becoming an integrated quality tool throughout the 

industry. 

I have always been aware of the very high regard in which 

TARRC’s engineers are held in the rubber community 

worldwide. Their expertise in the field of base isolation is 

unprecedented and provides Malaysia with a competitive 

advantage in the global supply of rubber-metal laminated 

bearings to protect structures from earthquakes. The 

opening of the second Penang Bridge in 2014 was an 

historic milestone for TARRC and one of which it should 

be very proud. In collaboration with their MRB colleagues, 

TARRC engineers provided the design of the bearings as 

well as technical support and advice to the Malaysian 

manufacturer. They also designed and successfully 

implemented an ingenious solution for installation of the 

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www.tarrc.co.uk

earings that would accommodate the large displacements 

of the structure during construction. This high profile 

project has already led to several other promising 

opportunities in earthquake-prone regions for large 

construction projects. 

I am also optimistic about another area of development 

work that the engineers are pursuing – the design and 

installation of a seismic bearing test facility at TARRC. This 

will allow Malaysian manufacturers to test their products 

and to obtain CE marking, essential for penetration of the 

EU market. I look forward to seeing this facility fully 

operational and TARRC becoming an accredited laboratory 

for this service during my tenure as Chairman. 

At this point, it is appropriate to also congratulate TARRC’s 

CEO, Dato’ Dr Kamarudin Ab Malek, who was conferred 

the honorary Darjah Indera Mahkota Pahang (DIMP) which 

carries the title Dato’. This honour reflects Dato’ Dr 

Kamarudin’s work on behalf of the rubber industry, 

particularly in his specialised area of rubber in engineering 

applications and his success in promoting MRB’s base 

isolation technology across the globe. 

I am very positive about TARRC’s continued contribution to 

the success of our rubber industry in Malaysia. Industrial 

support in terms of factory visits by TARRC technologists 

to Malaysian manufacturers is making a big impact with 

significant savings for companies which are implementing 

the recommended improvements to their production 

processes. The new on-line technical helpdesk set up in 

2014 means even more Malaysian manufacturers can now 

take advantage of our technologists’ industrial expertise. 

Complementing this project are the marketing and 

promotion activities, vital for any successful organisation. 

TARRC’s marketing team plays a key role in assisting 

Malaysian companies to achieve more business in new 

markets by promoting the deserved reputation our 

manufacturers have for high quality products and materials. 

I am pleased to see that TARRC is very active in all 

marketing platforms including social media, which is 

becoming an ever increasing way for organisations to reach 

out and connect with potential customers and partners. 

In my previous position at MRB as Deputy Director 

General, I have been closely involved with overseeing the 

direction, planning and strategies of research and innovation 

and look forward to bringing this experience to TARRC as 

Chairman of the Board. I was fortunate to visit TARRC in 

2013 to participate in the celebration for its 75th 

Anniversary and during the seminar presentations, I was 

reminded of just how significant TARRC’s contribution has 

been to the development of rubber science and technology. 

Datuk Dr Mohd Akbar bin Md Said visited TARRC 

on 12th June 2014 

I also visited TARRC in 2014 to discuss ongoing and future 

projects with researchers and was pleased to find that 

innovative and ambitious R&D continues to be the driving 

force behind recent achievements. I am confident that the 

considerable investment awarded to TARRC in 2014 for 

equipment and high impact projects will enable more 

pioneering research and development that addresses the 

future needs of the Malaysian rubber industry. Finally, I 

would like to see an even closer relationship between 

TARRC and MRB, working together as one team, with R&D 

central to its activities and crucial for the Malaysian rubber 

industry. 

Datuk Dr Mohd Akbar bin Md Said 

Chairman 

Tun Abdul Razak Research Centre 


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STRATEGIC AND DIRECTORS’ REPORT 

The Board of Directors is pleased to submit its seventy-seventh Annual Report (incorporating the Strategic 

Report) and the Audited Accounts of the Research Centre for the year ended 31st December 2014 

The Board 

Datuk Dr Salmiah Ahmad retired as a Member and 

Chairman of the TARRC Board on 23rd July 2015 after 

almost five and a half years in office. Her successor, 

Datuk Dr Mohd Akbar bin Md Said, was appointed 

Director General of the Malaysian Rubber Board (MRB) 

by the Minister of Plantation Industries and Commodities, 

Malaysia, on 24th July 2015 and became a Member and 

Chairman of the TARRC Board (ex-officio). 

Dato’ Dr Kamarudin Ab-Malek was appointed as London 

Representative of the MRB and a Member and Vice- 

Chairman (ex-officio) of the Board on 24th March 2010. 

Dr Stuart Cook was appointed as Director of Research 

on 1st July 2009 and remains a Member of the Board (exofficio). 

Mr Lim Kwee Shyan and Datuk Abd Halim Hamid were 

appointed to the Board by the Minister of Plantation 

Industries & Commodities, Malaysia on 1st January 2012. 

Dr Zakaria Abd Hadi was appointed to the Board by the 

Minister of Plantation Industries & Commodities, Malaysia 

on 1st January 2012 and resigned on 28th January 2015. 

The Board met three times during 2014 to transact 

business. 

General Meeting 

The seventy-seventh Annual General Meeting of TARRC 

was held on 5th September 2014. 

Legal Status 

The Tun Abdul Razak Research Centre (TARRC) is an 

organisation and research centre of the Malaysian Rubber 

Board (MRB). Incorporated in England since 1938, TARRC 

is a Company Limited by Guarantee and not having a 

share capital, the word ‘Limited’ being omitted by Licence 

of the Department of Trade and Industry. TARRC, by 

reason of the definition in Section 1(1) of the Companies 

Act 1980 and the bringing into force of Part 1 of that Act, 

became a Private Company on 22nd December 1980. 

Principal Activities 

The core activities of TARRC are identified as: 

- specialised R&D focusing particularly on rubber in 

engineering applications; 

- development of sustainable advanced materials 

and products; 

- biotechnology activities; 

- transfer of technology to the Malaysian rubber 

manufacturing industry; 

- commercialisation of R&D outcomes; 

- promotion of Malaysian manufactured rubber-based 

materials and products; 

- FDI opportunities in the Malaysian rubber industry; 

- training for personnel both from the MRB and the 

industry in Malaysia; 

- consultancy services to generate income. 

All these activities involve the publishing and distribution 

of associated scientific, technical and promotional 

literature. Participation in international meetings, 

conferences, seminars and exhibitions are also important 

activities to encourage the expansion of markets for 

Malaysian rubber products and materials. Clear targets 

are set for income generation and in keeping with this 

policy, the Board charged the Director and Staff to 

continue to enhance income through exploitation of 

TARRC’s scientific resources, expertise and 

commercialisation of its R&D findings to increase its 

degree of self-financing. Turnover from Rubber 

Consultants in 2014 came in at £919,707.59. 

Future Prospects 

The successful involvement with the Penang Bridge 

project has opened up further opportunities to raise 

awareness of TARRC engineers’ expertise in the field of 

seismic base isolation based on NR bearings and influence 

other large-scale construction projects to utilise this 

technology. Work will continue to support the Malaysian 

manufacturers of such devices to secure contracts in 

earthquake-prone regions as well as to provide advice 

and technical input for the construction of demonstration 

buildings such as the apartment block in Langkawi. 

Europe constitutes an important market for the Malaysian 

seismic and structural bearings industry but all products 

must be certified by a CE mark. TARRC’s future seismic 

bearing testing facility will ultimately provide the 

Malaysian industry with this service to accredit their 

bearings in Europe that will allow them to penetrate this 

important market. 

Following the approval by London Underground for 

TARRC’s zero halogen, low smoke, low toxic rubber 

compound Natural-FR to be used in entrance matting in 

station flooring, further research and development will 

continue to increase its uptake in other industrial 

products. 

TARRC’s project on green tyre technology based on 

Ekoprena will require the up-scaling of mixing 

Ekoprena/silica compounds to facilitate the use of the 

material by the global tyre and tyre retreading industries. 

20 

www.tarrc.co.uk

Following the initial successful mixing trials held at the 

factory of a European retreader, further R&D will take 

place to confirm the performance of the resulting 

compounds. Testing will continue in 2015 as well as 

studies to further optimise compounds for the tyre 

industry. 

Marketing activities will continue to raise the awareness 

of the Malaysian rubber industry with the objective of 

increasing business in global markets for the benefit of 

Malaysia’s gross national income. Known income 

generated for the industry with TARRC’s direct assistance 

increased by almost 17% to well over RM35 million in 

2014. Successful participation at international events to 

promote TARRC’s technical expertise and consultancy 

services continued in 2014 and further involvement at key 

exhibitions and conferences is planned for 2015, including 

new events in the Middle East and North America. 

Project A5 to assist the Malaysian manufacturing industry 

to become more competitive in the global market has 

made good progress under its new project leader. An 

objective in 2014 was to raise the awareness of the 

service within the industry and the Board is pleased to 

report that this has been achieved with 14 factory visits 

made during the year resulting in savings in excess of 

RM3 million per annum once the recommendations for 

improvements are implemented. An on-line technical 

support desk was also established during 2014 to provide 

Malaysian rubber product manufacturers with advice and 

support with day-to-day issues. Project A5 works closely 

with TARRC’s marketing projects and additional 

companies identified as having the potential for greater 

export opportunities will be requested to quote for new 

business. 

MRB’s strategic programme in rubber genomics – 

Malaysian Rubber Genome Programme – is a two year 

project that aims to dramatically improve the quality of 

the current Hevea brasiliensis genome assembly, discover 

thousands of new SNPs, refine the panel of molecular 

markers for clonal identification, create high density 

genetic maps and link the performance of key commercial 

traits to the individual molecular markers. TARRC’s 

biotechnologists have been involved with a series of 

meetings with their colleagues at MRB and international 

collaborators and will play a crucial role in the 

programme’s future success. 

Encouraging progress under TARRC’s biotechnology 

projects in 2014 projects includes the development of a 

prototype molecular marker panel for the clonal 

confirmation of planting materials. This could become an 

essential tool for certification of planting material 

distributed to smallholders. The Release Version 1 of the 

Hevea brasiliensis genome sequence along with its global 

annotation has been completed and is now available 

throughout MRB. This information is a vital resource for 

other on-going and future projects. 

The commercialisation of Latex-T – a quick detection test 

device for allergens in latex products – will provide a 

valuable tool in the quality control of manufactured latex 

gloves and products and due to the growing interest from 

commercial companies worldwide, could provide an 

important source of revenue for MRB. 

The Board was pleased to acknowledge the achievement 

of Former Deputy Director of TARRC, Dr Alan Roberts, 

who received the highest honour from the Rubber 

Division of the American Chemical Society, the Charles 

Goodyear Medal. This award follows a long line of 

previous recipients from TARRC and it is heartening to 

see TARRC’s younger scientists at ACS conferences and 

meetings that will encourage increased collaboration and 

awareness. These events are excellent platforms to 

showcase TARRC’s work and ensure that scientists’ and 

technologists’ expertise will continue to be recognised in 

the future. 

The Board was pleased that good progress was made 

during 2014 under all projects and prospects for the 

future support of the Malaysian industry by TARRC are 

encouraging. An exercise undertaken during the year to 

estimate the financial benefit TARRC provided to the 

Malaysian industry in 2013 through its R&D, marketing, 

training and consultancy activities. Results show the 

business generated for Malaysian manufacturers was 

almost three times TARRC’s running costs – this figure is 

based on known contracts and income secured and does 

not take into account other business generated by 

TARRC’s more general marketing activities. With the 

income from sales of Ekoprena and Natural-FR expected 

to increase significantly in coming years, the Malaysian 

industry will ultimately reap the benefit from TARRC’s 

efforts in these areas. 

Senior Staff as at 31st December 2014 

During the year four appointments were made; one 

member retired and there were two resignations. The 

total senior staff strength on 31st December, 2014 was 49. 

Supporting Staff as at 31st December 2014 

During the year there was one appointment and two on 

fixed term contracts. Mrs Snehlata Patel, Assistant 

Scientist in the Materials Characterisation Unit, died 

www.tarrc.co.uk 21

following illness. Her death is recorded with deep regret. 

One fixed-term contract was ended during the year. The 

total number of supporting staff as at 31st December, 

2014 was 43. 

Staff Lectures & Publications 

During 2014 30 staff lectures or posters were given and 

18 scientific and technological papers or proceedings were 

published. 

Finance 

The Income and Expenditure Account and the Balance 

Sheet as at 31st December 2014, together with 

Explanatory Notes and the Auditor’s Report, are 

presented on pages 46 to 63. In the opinion of the Board, 

the current market value of TARRC's freehold properties 

is in excess of the net book value shown in the Balance 

Sheet. 

Financial Risk Management Objectives & Policies 

The company’s operations expose it to a variety of 

financial risks that include the changes in debt market 

prices, credit risk, liquidity risk, interest rate risk and 

foreign exchange rate risk. The company has in place a risk 

management programme that seeks to limit the adverse 

effects on the financial performance of the company by 

monitoring the levels of debt finance and the related 

costs. The company does not use derivative financial 

instruments to manage interest rate costs and as such, no 

hedge accounting is applied. 

Given the size of the company, the Directors have not 

delegated the responsibility of monitoring financial risk 

management to a subcommittee of the Board. The policies 

set by the Board of Directors are implemented by the 

company’s finance department. The department has a 

policy and procedures manual that sets out the specific 

guidelines to manage interest rate risk, credit risk, foreign 

exchange risk and circumstances where it would be 

appropriate to use financial instruments to manage these. 

Statement of Directors’ Responsibilities 

In compliance with their responsibilities, the Directors 

ensured that every year the financial statements are 

prepared in accordance with applicable law and 

regulations, such as the United Kingdom Generally 

Accepted Accounting Practice (United Kingdom 

Accounting Standards and Applicable Law). To ensure that 

the financial statements give a true and fair view of the 

state of the affairs of the company and of the income and 

expenditure of the company for that year, they: 

- selected suitable accounting policies and apply them 

consistently; 

- made judgments and estimates that were reasonable 

and prudent; 

- prepared the financial statements on the going 

concern basis unless it is inappropriate to presume 

that the company will continue in business. 

In keeping with their responsibilities, the Directors 

ensured the maintenance of adequate accounting records 

that are sufficient to show and explain the company’s 

transactions and to disclose with reasonable accuracy at 

any time the financial position of the company to enable 

them to ensure that the financial statements comply with 

the Companies Act 2006. They have been responsible for 

safeguarding the assets of the company and hence for 

taking reasonable steps for the prevention and detection 

of fraud and other irregularities. 

Insofar as the Directors are aware: 

- there is no relevant audit information (information 

needed by the company’s auditors in connection with 

preparing their report) of which the company’s 

auditors are unaware, and 

- they have taken all the steps that they ought to have 

taken to make themselves aware of any relevant audit 

information and to establish that the company’s 

auditors are aware of that information. 

Auditors 

Wags LLP t/a Wagstaffs are deemed to be reappointed in 

accordance with Section 487(2) of the Companies Act 

2006. 

This report was approved by the Board on 22nd May 

2015 and signed on its behalf by 

Dato’ Dr Kamarudin Ab-Malek 

CEO 

Tun Abdul Razak Research Centre 

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The Board was pleased to acknowledge the 

achievement of Former Deputy Director of 

TARRC, Dr Alan Roberts, who received the 

highest honour from the Rubber Division of 

the American Chemical Society (ACS), the 

Charles Goodyear Medal for 2014 

www.tarrc.co.uk 23

REVIEW OF THE YEAR 2014 

TARRC - A GLOBAL CENTRE OF EXCELLENCE 

FOR RUBBER RELATED SCIENCE AND TECHNOLOGY 

The culmination of several years’ work by TARRC 

engineers came to fruition during 2014 with the official 

opening of Malaysia’s second Penang Bridge on 1st 

March 2014. TARRC’s engineers, along with their 

colleagues at the MRB, worked tirelessly in the design 

and testing of the seismic rubber bearing technology to 

provide the maximum protection to the bridge from 

earthquakes. The high damping natural rubber bearings 

enable the bridge to withstand earthquake tremors up 

to 7.5 on the Richter scale. The rubber bearings were 

produced by a Malaysian manufacturer of rubber 

products and more than 2000 rubber bearings are used 

on the bridge. 

Dato’ Dr Kamarudin Ab-Malek, TARRC’s CEO was 

delighted to be able to attend the opening ceremony of 

the bridge, accompanying the Malaysian Rubber Board’s 

Director General Datuk Dr Salmiah Ahmad. He described 

how TARRC is honoured to have played its part in the 

construction of this monumental structure. To see the 

bridge open for cars to cross fills me with great 

admiration for all the hard work that has gone into 

constructing such a landmark’. 

The bridge is 24km (15miles) with 16.9km (10.5 miles) 

over water, making it the longest bridge in Malaysia and 

the longest in South East Asia. The bridge, which began 

construction in November 2008, took 5 years and 4 

months to complete. 

A new project was approved in November for the 

construction of the seismic bearing testing facility at 

TARRC. Europe constitutes an important market for the 

Malaysian seismic and structural bearings industry; 

however, the sale of these products within Europe is 

only possible if they are certified by a CE mark. This 

involves testing of full-scale bearings by an independent 

testing laboratory according to the European antiseismic 

or structural bearings standards. TARRC 

engineers are designing and developing a biaxial seismic 

and structural test machine with large capacities, to 

undertake CE marking tests. The design, ordering and 

acquisition of the main components of the testing 

facility are being carried out by TARRC and were largely 

finalised by the end of 2014. 

The opening ceremony of the bridge on the evening of the 1st March 2014 

was marked by a majestic firework display 

24 

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Dato’ Dr Kamarudin Ab-Malek, CEO of TARRC met the former Prime Minister of Malaysia, YAB Tun Dr Mahathir bin Mohamad, 

at the Perdana Leadership Foundation, in Putrajaya, Malaysia on the 23rd July 2014 to discuss the future use of seismic rubber 

bearing technology. Dato’ Dr Kamarudin was delighted that he was able to present Tun Dr Mahathir with a copy of his book 

‘From Pelham to Penang’ which tells the fascinating story of the development of NR seismic base isolation protection technology 

Dato’ Dr Kamarudin Ab-Malek, was awarded the 2014 International Rubber Research & Development Board’s BC Sekhar Award 

for Research Excellence. During the IRRDB International Rubber Conference, held in Manila, Philippines from 24th-26th November, 

Dato’ Dr Kamarudin was presented the award for his work on rubber in engineering and the promotion of seismic rubber bearing 

technology. Presenting the award was Hon. Ann K Hofer, Representative of the 2nd District, Zamboanga Sibugay, Mindanao and 

Datuk Dr Salmiah Ahmed, DG of the Malaysian Rubber Board (right) 

www.tarrc.co.uk 25

TARRC was pleased to welcome a high level visit to 

Brickendonbury from the University of Malaya on 

Tuesday 18th March 2014. The delegation included Prof. 

Dato’ Dr Mohd Amin Jalaludin, Vice Chancellor of the 

University of Malaya, Prof. Dr Sharifuddin Mohd Zain, 

Head of the Department of Chemistry, Faculty of 

Science and Prof. Dato’ Dr Mohd Jamil Maah, 

Department of Chemistry, Faculty of Science, 

accompanied by Prof. David Bradley from the University 

of Surrey. 

The visit was made to Brickendonbury to develop future 

collaborations between TARRC and the University of 

Malaya to enhance and increase the economic and 

technological contribution to Malaysia. Discussions 

included the possibility of collaborating with the 

University of Malaya and the University of Surrey to set 

up joint programmes of Research and Postgraduate 

Training. 

Other highlights in 2014 from TARRC include the 

successful development of the new ‘zero halogen’, low 

smoke, low toxic, fire retardant rubber compound, 

Natural-FR, for use in entrance matting, now undergoing 

a trial at a London Underground station. Further R&D 

will focus on other industrial applications to increase the 

uptake of the Natural-FR compound. 

This work has been carried out under the project that 

provides technical support and promotion of Malaysia’s 

NR-based materials. Following the success of the work 

described above, the project will now focus solely on the 

commercialisation of Natural-FR by expanding market 

opportunities and conducting R&D to increase its uptake 

in industrial products. 

Current use of synthetic rubber compounds cannot 

address the sustainability targets that need to be met by 

companies and the development of Natural-FR provides 

a solution to both flammability requirements and 

sustainability. 

TARRC was pleased to welcome a high level visit to Brickendonbury from the University of Malaya in March 2014 

Natural-FR entrance matting in a London Underground station 

26 

www.tarrc.co.uk

TARRC ‘s work on green 

tyre technology based on 

Ekoprena has 

demonstrated that silicareinforced 

Ekoprena 25 in 

both passenger and truck 

tyre tread compounds 

provides both lower rolling 

resistance and increased 

wet grip, when compared 

with ‘state-of-the-art’ tyre 

treads, with the bonus of a 

low carbon footprint. In 

total, TARRC has met with 

all but one of the top ten 

tyre companies and 

discussions are ongoing 

with four major tyre 

manufacturers with regard 

to commercialisation of 

Ekoprena-based tyre tread 

compounds. Papers were 

presented at key 

conferences and 

participation at Tire 

Technology Expo 2014, in 

Germany, generated much 

interest 

www.tarrc.co.uk 27

TARRC’s Colin Robinson on 

the Project A5 Helpdesk 

During the year, under Project A5, industry assistance 

has been offered to 14 Malaysian companies. It provides 

manufacturers free and confidential support with day-today 

product and process issues with the overall aim of 

reducing operating costs. This assistance is of significant 

value to the MRI: cost savings amounting to 

approximately RM190,000 have been made, of which 

more than 75% relates to improvements in productivity. 

The A5 team has also set up a technical advisory 

Helpdesk, which is accessible to all Malaysian SMEs on a 

year round basis. 

TARRC’s biotechnology team is progressing well with 

the development of a portable diagnostic test kit based 

on Lateral Flow technology to provide rapid on-site 

identification of the potential allergenicity of latex 

products such as gloves. Other achievements during the 

year include improvements and refinements to the 

genetic sequence of the rubber tree genome: the first 

release of the sequence assembly has now been achieved 

and the global annotation of the sequence completed. A 

DNA-based fingerprinting method for the rapid 

identification of individual clones of Hevea brasiliensis has 

been also been developed. 

TARRC’s marketing and promotion activities include the 

promotion of TARRC, the MRB and the Malaysian rubber 

industry. The outcome from international exhibitions, 

measured in terms of business achieved for the 

Malaysian rubber products sector, has risen from an 

estimated RM20 million in 2010 to RM35 million in 

2014. 

TARRC participated in the prestigious American 

Chemical Society (ACS) Rubber Division Rubber Expo 

2014, in Nashville, Tennessee in October. A stand at the 

expo promoted the services of Rubber Consultants and 

TARRC, as well as information on Malaysia’s materials 

and products. There was a great response from visitors 

to the stand and three TARRC scientists also presented 

papers at the conference. Involvement with this event is 

proving to be an excellent forum to increase awareness 

in the North American rubber industry of TARRC, the 

MRB and ultimately provide further opportunities for 

the Malaysian manufacturing industry. 

It was also announced on the first day of the conference 

that TARRC’s Dr Alan Muhr, Head of Engineering Design, 

was the recipient of the 2015 Melvin Mooney 

Distinguished Technology Award. The award, sponsored 

by Lion Copolymer, honours someone who has 

exhibited exceptional technical competency by making 

significant contributions to rubber science and 

technology. 

Rubber Consultants also won the ACS Rubber Division 

‘Stay Social’ Award for best LinkedIn/Twitter activity at 

the conference and expo. 

28 www.tarrc.co.uk

Adolf Schallamach Leonard Mullins Alan Gent Ronald Rivlin 

Alan Thomas Graham Lake Karl-Alfred Grosch Alan Roberts 

TARRC’s Charles Goodyear Medal winners 

TARRC scientists have won some of the Rubber 

Division’s most prestigious awards including former 

Deputy Director of TARRC Dr Alan Roberts who was 

awarded the Charles Goodyear Medal at the 185th 

Technical Meeting of the Rubber Division, American 

Chemical Society in March 2014. The Charles Goodyear 

Medal is the most prestigious award given by the Rubber 

Division and was established in 1941 to perpetuate the 

memory of Charles Goodyear as the discoverer of the 

vulcanisation of rubber, by honouring individuals for 

outstanding invention, innovation, or development, which 

has resulted in a significant change or contribution to 

the nature of the rubber industry. 

TARRC recipients of ACS awards are: 

Charles Goodyear Medal 

Alan Roberts - 2014 

Karl-Alfred Grosch - 2007 

Graham Lake - 2003 

Alan Thomas - 1994 

Ronald Rivlin - 1992 

Alan Gent - 1990 

Leonard Mullins - 1986 

Adolf Schallamach - 1982 

Melvin Mooney Award 

Alan Muhr - 2015 

John Dunn - 1993 

George Stafford Whitby Award 

Alan Gent - 1987 

Fernley H. Banbury Award 

William Watson - 2002 

International Rubber Science Hall of Fame 

Ronald Rivlin - 2008 

Leonard Mullins - 2001 

Adolf Schallamach - 1998 

L.R.G. Treloar - 1987 

Graham Moore - 1980 

Ernest Harold Farmer - 1969 

Best Paper/Symposium/Honorable Mention 

Crispin Baker - Best Symposium 1993 

Alan Roberts - Best Paper 1992 

Crispin Baker - Best Paper 1989 

Andrew Tinker/John Loadman - Honorable Mention for 

Original Contribution 1988 

Crispin Baker/Ian Gelling/Roland Newell - Honorable 

Mention 1984 

Douglas Barnard - Honorable Mention 1978 

Crispin Baker/Douglas Barnard/Maurice Porter - Best 

Paper 1969 

www.tarrc.co.uk 29

Rubber Consultants exhibited at the International Elastomer Conference and Rubber Expo 2014 in Nashville, TN 

RC Pharma exhibited at the Extractables and Leachables Conference 2014 in Barcelona, Spain 

30 

www.tarrc.co.uk

TARRC exhibited at the Materials Research Exchange 2014 in Coventry, UK in February 

Rubber Consultants exhibited at the IRCO RubberCon 2014 in Manchester, UK in May 

www.tarrc.co.uk 31

Rubber Consultants 

2014 marked the significant milestone for TARRC’s 

consultancy arm, Rubber Consultants, its 30th 

anniversary. Rubber Consultants was set up in 1984 as 

an independent contract research organisation with the 

support of world-renowned rubber scientists, 

technologists and engineers. The consultancy makes an 

important contribution to the running of TARRC and 

the R&D programme to support the Malaysian rubber 

industry. 

A social media initiative was introduced during the year 

to raise awareness of TARRC and the consultancy 

services. The TARRC twitter accounts, @tarrcuk and 

@Brickendonbury, cover all of TARRC's diverse 

activities, facilities, expertise, visitors and events as well 

as highlighting the scientists’ work. It also includes 

TARRC’s promotional and marketing activities, 

conferences and exhibitions. Rubber Consultants’ twitter 

page, @RubberConsultan, also covers the services 

provided.The initiative is proving to be an excellent 

promotional tool and means of interacting with other 

companies and organisations within the global rubber 

industry. It has significantly increased traffic to both 

websites. A LinkedIn account also highlights key news 

items from the websites. It has also resulted in coverage 

in the rubber press of many of the developments at 

TARRC. 

32 www.tarrc.co.uk

2014 TARRC PROJECTS 

HIGHLIGHTS OF KEY ONGOING RESEARCH AND 

DEVELOPMENT PROJECTS, THEIR BACKGROUND, 

OBJECTIVES AND ACHIEVEMENTS 

(A list of other projects can be found on pages 42-44) 

MARKETING AND PROMOTION 

TARRC’s Market Intelligence and Promotion Unit was running four projects during 2014, the prime objectives being to 

promote the Malaysian rubber industry and FDI and outsourcing opportunities in the West, identifying and developing new 

markets for manufacturers and securing business for suppliers. The Unit is also responsible for the PR and marketing 

activities of TARRC’s commercial unit Rubber Consultants and the services of TARRC and the MRB. This includes 

exhibitions and events, the design, maintenance and updating of websites, responsibility for all the design and printing 

requirements for TARRC and Rubber Consultants. 

BACKGROUND AND OBJECTIVES 

This project aims to increase awareness in the West of the 

Malaysian Rubber Industry (MRI), increase awareness 

globally of the technical expertise of TARRC and the MRB 

and to promote TARRC’s consultancy services. 

Many European and western customers of rubber-based 

products and materials are seeking new suppliers of their 

existing products and to expand their product ranges and 

are unsure in many cases as to how to identify potential 

partners in the ASEAN region. 

TARRC, with its strategic location in Europe, can act as a 

trade and investment route and provide technical support 

to the MRI, as well as perform cost-effective marketing and 

PR activities on behalf of the industry and the MRB 

ACHIEVEMENTS 

PROMOTION OF THE MALAYSIAN RUBBER INDUSTRY AND THE SERVICES OF TARRC AND THE MRB 

Exhibition stands were organised and manned at six 

exhibitions in 2014: Tire Technology Expo 2014, Cologne, 

Germany (for Ekoprena), Alihankinta 2014, Tampere, 

Finland, the International Elastomer Conference and 

Rubber Expo 2014, Nashville, USA (as Rubber 

Consultants), AAPEX, Las Vegas, USA, Extractables and 

Leachables, Barcelona, Spain (as RCPharma) and 

RubberCon 2014, Manchester, UK. 

IDENTIFICATION AND DEVELOPMENT OF NEW MARKETS FOR MALAYSIAN RUBBER PRODUCTS 

TARRC’s promotion of the MRI at international exhibitions 

and events leads to enquiries from potential customers for 

products and materials. The marketing team, through its 

extensive knowledge of the MRI, identifies suitable 

Malaysian suppliers and is able to develop and nurture long 

term business relationships between these companies and 

buyers. TARRC has adopted a ‘hand holding’ approach 

which has proved to be successful. 

The MRI has limited access to market information, 

standards, legislative issues and other knowledge that may 

affect their ability to penetrate new markets in the west, 

particularly the EU and USA. This project identifies markets 

and products which Malaysian manufacturers can exploit. It 

aims to understand the market and customers’ 

requirements and compiles relevant data and targeted 

market reports. 

A close working relationship between staff on this project, 

TARRC’s industrial Support Unit and Malaysian 

manufacturers has already shown that suppliers can be 

competitive and business can be achieved. 

The current annual value of business achieved with the 

assistance of TARRC is now estimated at well over RM35 

million per annum, based on questionnaire returns from 

both suppliers and customers. 

In 2014 three sectors showing strong growth for Malaysian 

products are hoses, plates, sheet and strip and moulded and 

bonded parts: these are products that TARRC is actively 

promoting. Strong growth for hoses and moulded products 

was particularly apparent in the USA. Strong growth was 

also shown for moulded products in Europe. 


33

34 

www.tarrc.co.uk

INDUSTRIAL SUPPORT 

TARRC’s Industrial Support Unit is committed to serving the Malaysian industry by providing technical assistance and 

advice to manufacturers and by carrying out focussed R&D to capture new product markets for MRB’s speciality NR 

elastomers for non-tyre applications. The Unit was running four projects in 2014. 


This project aims to develop the potential of Ekoprena and 

Pureprena through R&D to increase the export of green 

materials leading to an increase in export revenue. The 

increased use of NR-based materials will contribute to the 

sustainability of the industry. 

It is expected that highlighting the green credentials of 

MRB’s speciality NR grades will lead to penetration of new 

markets for these materials. 

ACHIEVEMENTS 

TECHNICAL SUPPORT AND PROMOTION OF MRB’S SPECIALITY RUBBERS FOR NON-TYRE APPLICATIONS 

A low smoke, low toxic, halogen-free black compound 

(Natural-FR) based on NR has been developed for 

commercialisation. This material offers a natural alternative 

to the use of synthetic elastomers to meet material 

flammability requirements thus providing a ‘greener’ and 

more sustainable alternative. The new compound has 

passed the European Standard BS EN 45545-2: 2013 for 

use in flooring in rail applications. It has also passed the 

more stringent smoke density test according to the British 

Standard BS 6853:1999. It is currently undergoing a service 

trial for an entrance matting application at a London 

Underground station that will be completed in 2015. 

These achievements have enabled a commercial agreement 

to be signed with an entrance matting supplier to London 

underground. 

Due to the success of the development of Natural-FR, a 

new project dedicated to the commercialisation of the 

compound will commence in 2015. Development of 

coloured compounds for flooring compounds has already 

begun and its potential for use in applications outside of 

the transportation sector such as fire protection of seismic 

bearings will also be explored. 

PROJECT A5 - THE KEY TO SUCCESS 

Project A5 was established in 2004 as a downstream 

technical advisory service to assist and support the 

development of Malaysian rubber product manufacturers in 

addressing issues such as high waste levels, low 

productivity, low efficiency resulting in high production 

costs and high prices resulting in uncompetitive quotes. 

On a strictly confidential basis, technical experts from 

TARRC and MRB conduct factory audits and provide a full 

report suggesting areas for improvement. 

To date, more than 90 manufacturers have been visited, 

resulting in recommendations for improvement amounting 

to potential savings of an estimated RM14 million per 

annum. This has assisted and supported Malaysian rubber 

product manufacturers in improving their quality, 

productivity and efficiency performance towards achieving 

global standards and an increased number of Malaysian 

companies are able to compete in export markets. 

Visits were made to 14 different factories in Malaysia by the 

A5 team in 2014 including three follow-up audits. During 

these follow-up audits it was found that many of the 

recommendations made during the original visits had been 

adopted and the companies have begun to see benefits. The 

improvements included a 43% improvement in productivity 

at one company, an increase in extrusion line speed leading 

to a 50% improvement in productivity at another and 

savings of RM6000 per month had been realised at the 

third. 

The A5 team also set up a technical advisory Helpdesk, 

which is accessible to all Malaysian SMEs on a year round 

basis. This confidential service provides assistance with 

production issues, compounding and mixing advice, 

formulation queries, product failure, machine selection and 

process layout. A5support@tarrc.co.uk 

www.tarrc.co.uk 35

ENGINEERING DESIGN 

TARRC’s engineers are currently applying their expertise, technical skills and innovative thinking to six projects covering a 

wide variety of products and uses. All these projects are aimed at providing the technical knowledge and manufacturing 

assistance to the Malaysian industry enabling them to supply cutting edge technical engineering rubber products in the 

global market. 


TECHNICAL PROMOTION OF ANTI-SEISMIC DEVICES 

TARRC is recognised as a centre of excellence for 

NR-based anti-seismic devices, particularly high damping 

natural rubber base isolation systems. 

TARRC engineers, in collaboration with their MRB 

colleagues, promote anti-seismic devices in earthquakeprone 

regions across the world. They provide technical 

support for erection of demonstration structures in these 

regions, and collaborate with universities and research 

institutes to provide MRB expertise to current and future 

engineers and architects. 

There is a need to increase the market share of antiseismic 

devices based on high damping natural rubber in 

earthquake prone regions across the world. 

The project aims to put Malaysian manufacturers at the 

leading edge of providing such technologies to the global 

market, requiring technical demonstration and promotion 

and direct support in design, development, testing and 

choice of materials for each specific project. 

ACHIEVEMENTS 

The successful design, manufacture, testing and delivery of 

the 2234 bearings for the second Penang bridge was 

completed in 2013.The Penang bridge opened to traffic on 

2nd March 2014. 

A new, ultra high damping natural rubber compound for 

seismic isolation applications has been developed enabling a 

Malaysian manufacturer to win the contract for supply of 

seismic isolation bearings for a hospital in Jakarta, Indonesia 

against stiff international competition. 

The design of six new bearings for a Malaysian 

manufacturer was also completed during the year. 

A rubber joint has been specially designed for earthquake 

protection of masonry infill in reinforced concrete frame 

structures. Finite Element Analysis (FEA) was used to 

design a rubber joint with desired performance 

characteristics. The joints were then manufactured at 

TARRC and tested at the University of Padua, Italy. 

Collaborative research was carried out with the University 

of Padua, Italy on modelling and design of the next 

generation of Rolling Ball Systems. It is proposed that this 

technology, developed by TARRC, will be commercialised 

for the protection of artifacts in museums. 

Two presentations to the construction industries of 

Romania and Turkey were given in Bucharest and Istanbul. 

Three papers were co-authored for the 2nd European 

Conference on Earthquake Engineering and Seismology. 

Seven abstracts were submitted for earthquake related 

conferences in 2015. 

36 

www.tarrc.co.uk

The work of TARRC’s Engineering Design Unit ensures that Malaysian manufacturers 

remain at the forefront of anti-seismic technologies for the global market. In 2014 

TARRC produced prototype visco-elastic dissipating devices for testing in Italy (above 

left). Engineers have also successfully developed a rubber joint for earthquake 

protection of masonry infill. The graphic shows FEA simulation of a cross section of a 

wall, inserted with three rubber joints between the rows of bricks, when subjected 

to out-of-plane accelerations during an earthquake. The simulation clearly shows that 

the wall remains intact and would not collapse during the earthquake under such 

conditions. TARRC engineers are experts in using FEA for the design of elastomeric 

components for many industrial sectors 


37

ADVANCED MATERIALS 

TARRC’s Advanced Materials and Product Development Unit R&D studies concentrate on the development of durable, high 

performance materials based on natural rubber. The Unit was running five projects in 2014, the optimisation of Epoxidised 

Natural Rubber (ENR or Ekoprena) compounds for use in tyres taking priority. 


GREEN TYRE TECHNOLOGY BASED UPON EKOPRENA 

The increasing demand for eco-friendly and renewable 

materials in tyres continues. Consumers and legislators are 

increasingly demanding tyres with low environmental 

impact and in particular, low carbon footprints. These 

demands can be met by Ekoprena based compounds that 

derive from a renewable resource and provide sustainable 

materials for green tyre technology. 

TARRC’s work has demonstrated that Ekoprena tread 

compound, reinforced with highly dispersible silica fillers, is 

a unique combination that offers reduced rolling resistance 

and improved wet grip. The performance characteristics of 

such compounds are unique and unrivalled by any synthetic 

rubber. 

ACHIEVEMENTS 

Trials of Ekoprena truck and bus compound were 

completed using two vehicles from a local UK based travel 

company. Trials on the cab unit of an articulated lorry have 

demonstrated that Ekoprena tread performs better at low 

severity. 

An Ekoprena based truck tread compound has been 

successfully mixed and processed in large scale mixing trials 

at the production facilities of Kraiburg Austria, one of 

Europe’s major truck tyre retreading compound 

manufacturers. The material was taken through the factory 

processes to make pre-cured tread slabs for testing. This 

has confirmed that Ekoprena compound performs well in a 

commercial tyre industry manufacturing environment. 

This project aims to further develop effective formulations 

and mixing and processing technologies for silica-filled 

Ekoprena compounds for passenger and commercial vehicle 

tyre components. This will increase the utilisation of 

Ekoprena in commercial and passenger tyres and enhance 

MRB’s position as a centre of excellence for tyre science & 

technology. 

A new analytical technique has been developed to examine 

tyre wear in service. The technique developed by TARRC 

gives an insight into the wear mechanism of tyres and 

represents a major step forward in the understanding of 

wear mechanisms in tyre compounds. The aim is in the 

future to develop a more reliable predictive laboratory test 

for tyre wear than is currently possible. 

A new mixing procedure to exfoliate nano-clay fillers has 

been developed for low gas permeability applications. 

A liner compound based on Ekoprena 50 matches the air 

permeability of a typical butyl rubber liner compound. 

Analogous Ekoprena 25 compounds are showing promise. 

Ten papers were presented in 2014 including two each at 

Tire Technology Expo, RubberCon and ACS Fall meeting. 

38 

www.tarrc.co.uk

An Ekoprena-based 

truck tread compound 

has been successfully 

mixed in large scale 

trials. The compound 

was used to produce 

precured treads 


39

BIOTECHNOLOGY 

Since becoming established in 2008, TARRC’s Biotechnology Unit has continued to build its expertise portfolio which now 

extends to a broad range of biotechnological areas including plant molecular biology, genetics, genomics, proteomics and 

bioinformatics. The Unit was running seven projects in 2014. 


Natural rubber latex (NRL) products are widely present in 

the daily environment and allergenic reaction to these 

articles can occur in a small percentage of the population 

due to certain proteins that may be present in NRL. 

High levels of product quality and safety, as well as process 

efficiency are the main targets that the NRL industry are 

required to meet during manufacturing. Despite the 

remarkable improvements achieved in manufacturing in 

lowering the allergenic potential of latex products, allergen 

and protein monitoring is still regarded as the ultimate 

quality control necessary for meeting safety standards. 

The current methods for the detection and quantification 

of latex allergens in NRL products are time consuming, 

cumbersome and often not specific. 

A portable diagnostic test kit based on Lateral Flow 

technology has been developed at TARRC. It can test for 

two specific allergens in natural rubber latex products. The 

prototype is to undergo further refinement and 

performance improvement following clinical studies planned 

for the next phase of the test kit development. 

ACHIEVEMENTS 

DEVELOPMENT OF A SIMPLE DIAGNOSTIC KIT UTILISING TWO MAJOR NR LATEX ALLERGENS AS 

INDICATOR MARKERS 

Latex-T diagnostic test kit has been tested in glove factory 

trials in Malaysia. 

Promotion and advertising of the Latex-T kits to European 

factories has taken place during 2014. Significant interest 

was received from manufacturers of balloons and 

mattresses, as well as from latex glove distributors. 

A number of companies expressed interest in testing the 

kit with their product, 

The kit was showcased at the 7th International Rubber 

Glove Conference & Exhibition at the KLCC in Kuala 

Lumpur, Malaysia from 2nd - 4th September 2014. 

The new three year project to commercialise Latex-T will 

commence in January 2015. 

Latex-T diagnostic test kit 

40 

www.tarrc.co.uk

Fast and easy-to-use kit to detect 

allergenic proteins in manufactured 

latex products in a non-laboratory 

environment 

New kit will allow latex product 

manufacturers to maintain high 

quality standards in a highly 

competitive global market 


41

OTHER PROJECTS 

MARKET INTELLIGENCE AND PROMOTION UNIT 

PROMOTION OF EKOPRENA 

This project complements TARRC’s ‘Technical promotion of Ekoprena in tyres’ project. 

LIBRARY, INFORMATION, PRINTING AND DESIGN SERVICES 

This is a service project that provides library, printing, photography, slides and design services for TARRC’s projects 

and consultancy activities. 

INDUSTRIAL SUPPORT UNIT 

MALAYSIAN RAW RUBBER AND RUBBER PRODUCT SUPPORT 

This is a service project that provides technical advice in response to enquiries concerning the use of Malaysian raw 

rubber and rubber products. 

MILL ROOM SERVICES 

This is a service project to support TARRC R&D and Rubber Consultants contracts. 

ENGINEERING DESIGN UNIT 

COMPUTER AIDED DESIGN OF RUBBER COMPOSITES 

This project aims to improve the design and manufacture of rubber composite products, through the use of FEA, 

other computer based methods, analytical methods and experiments. This information will be made available to 

Malaysian rubber components manufacturers and engineers through scientific publications, bulletins and other 

literature. 

DEVELOPMENT AND EVALUATION OF SMART MOUNTING SYSTEM 

This project aims to increase working knowledge in the design and development of smart engine mountings and 

active vibration control systems such as car suspensions. It provides support to the Malaysian manufacturers in the 

development and commercialisation of such components. 

DISPLACEMENT COMPENSATION UNIT (DCUs) 

This project aims to design, fabricate and test DCUs as well as to investigate creep and stress relaxation behaviour of 

rubber, especially in buckling modes of deformation, since the performance of DCUs depends on the maintenance of 

adequate load during many years of service. 

WAVE ENERGY CONVERTERS 

This project aims to progress research into applications of natural rubber in the offshore renewable energy industry, 

especially wave energy converters (WECs). 

COMMERCIALISATION OF VISCO-ELASTIC ENERGY DISSIPATING DEVICES (VEDDS) 

This project aims to develop, improve and evaluate viscoelastic energy dissipating devices to protect buildings from 

damage during earthquakes with the aim of commercialising this technology. 

ADVANCED MATERIAL AND PRODUCT DEVELOPMENT UNIT 

EVALUATION OF OIL-EXTENDED EKOPRENA 

The project aims to develop and evaluate oil-extended ENR, in particular for use in tyre tread compounds. 

EVALUATION OF EVOPRENA (TG RUBBER) 

The core activities of the project are directed at proving the performance of Evoprena in tyre tread applications vs 

the established rubber grades. 

TECHNICAL PROMOTION OF EKOPRENA IN TYRES 

This project promotes the results of other technical Ekoprena projects directly to the rubber industry. 

TYRE TESTING 

This is an ongoing service project that provides accredited tyre testing facilities for TARRC, MRB and Rubber 

Consultants contracts. 

42 www.tarrc.co.uk

Examination of electrophoresis gel plates in one of TARRC’s Biotechnology laboratories 

A new scanning electron microscope, a TESCAN VEGA-3 XMU was installed in 2014. One of its key features 

is that it has been fitted with a new Energy Dispersive X-ray Spectrometer (EDX) to identify chemical 

elements in a sample. This can provide invaluable information to identify the source of production problems 


43

BIOTECHNOLOGY UNIT 

CHARACTERISATION OF HEVEA BRASILIENSIS RRIM928 CLONE GENOMIC FOSMID LIBRARY AS A VALUABLE 

RESOURCE FOR GENOME SEQUENCE REFINEMENT AND GENE MINING FOR CLONAL IMPROVEMENT 

The aim of this project is to contribute to the extension of the current genome sequence assembly and generation 

of new fragments of the genome that were not sequenced or assembled during the initial project. This will result in a 

physical material resource that will be used in further studies on individual genes for commercial trait improvement. 

DEVELOPMENT OF SINGLE NUCLEOTIDE POLYMORPHISM (SNP) MARKERS FOR HEVEA BRASILIENSIS 

The project will develop a set of molecular markers based on Single Nucleotide Polymorphisms (SNPs) that would 

be suitable to be used in an array to enable the rapid identification of individual Hevea clones. 

TARGETED ANNOTATION OF HEVEA BRASILIENSIS GENOME 

This project takes a more targeted approach to genome annotation following the global annotation of the Hevea 

brasiliensis genome. It will result in the identification of genes/regulatory elements associated with traits of 

commercial importance. 

STUDY OF GENE EXPRESSION AND PROTEIN CHANGES IN HEVEA BRASILIENSIS INFECTED WITH 

RIGIDIPOROUS MICROPORUS (WHITE ROOT ROT DISEASE) 

The aim of the project is to identify unique proteins that are strictly linked to the presence of the pathogen and to 

use them as molecular markers for early stage detection of infected trees. 

HEVEA BRASILIENSIS ROOT TRANSCRIPTOME, A NEW PLATFORM FOR THE IDENTIFICATION OF BIOTIC 

AND ABIOTIC DEFENCE-RELATED GENES 

The project aims to obtain a map of the genes expressed in the Hevea brasiliensis root system in order to investigate 

and subsequently improve the tolerance to soil-borne pathogens responsible for diseases specifically affecting the 

root tissue. 

ACCELERATION OF HEVEA BRASILIENSIS BREEDING PROGRAMMES THROUGH THE DISCOVERY AND 

VALIDATION OF SNP MARKERS 

This new project aims to assemble a comprehensive genetic resource based on Reference Draft Genome Sequence 

of Hevea brasiliensis and to establish a panel of SNP markers for rapid and definitive clonal identification of Hevea 

plants. 

MATERIALS CHARACTERISATION UNIT 

TESTING SERVICES 

TARRC’s Materials Characterisation Unit provides an analytical testing service to support internal research projects 

and consultancy work. Three internal projects were running in 2014. 

INSTRUMENT MAINTENANCE AND ADMINISTRATION 

PROACTIVE ANALYTICAL METHOD RESEARCH AND DEVELOPMENT 

REPRESENTATION ON BRITISH/EUROPEAN STANDARDS COMMITTEES 

PRODUCT EVALUATION AND TESTING UNIT 

TESTING SERVICES 

TARRC’s Product Evaluation and Testing Unit also supports internal and consultancy activities and was running two 

internal projects in 2014. 

TYRE TESTING 

Reported under Advanced Material and Product Development Unit. 

PHYSICAL TESTING METHOD RESEARCH AND DEVELOPMENT 

44 www.tarrc.co.uk


45

REGISTERED NUMBER: 00336256 

ANNUAL FINANCIAL STATEMENTS 

FOR THE YEAR ENDED 31ST DECEMBER 2014 

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TARRC 

We have audited the financial statements of Tun Abdul Razak Research Centre Limited by Guarantee for 

the year ended 31st December 2014 which comprise the Income and Expenditure Account, the Statement 

of Total Recognised Gains and Losses, Balance Sheet, the Cashflow Statement, the reconciliation of 

movements in Members Funds and the related notes. The financial reporting framework that has been 

applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom 

Generally Accepted Accounting Practice). 

This repors members, as a body, in accordance with Chapter 3 of Part 16 of 

the Companies Act 2006. Our audit work has been undertaken so thas 

members those matters we are required to state to them in a Report of the Auditors and for no other 

purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other 

than ts members as a body, for our audit work, for this report, or for the 

opinions we have formed. 

Respective responsibilities of directors and auditors 

As explained more full Responsibilities set out on pages three and four, the 

directors are responsible for the preparation of the financial statements and for being satisfied that they 

give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in 

accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards 

require us to comply wis) Ethical Standards for Auditors. 

Scope of the audit of the financial statements 

A description of the scope of an audit of financial st s website at 

www.frc.org.uk/apb/scope/private.cfm. 

Opinion on financial statements 

In our opinion the financial statements: 

- give a true and fair view of the state of the comps affairs as at 31st December 2014 and of its surplus 

for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting 

Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

Opinion on other matter prescribed by the Companies Act 2006 

In our opinion the information given in the Strategic Report and the Report of the Directors for the financial 

year for which the financial statements are prepared is consistent with the financial statements. 

Matters on which we are required to report by exception 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us 

to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been 

received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directo remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

Nilesh Savjani (Senior Statutory Auditor) for and on behalf of Wags LLP t/a Wagstaffs 

Chartered Accountants and Statutory Auditors 

Richmond House, Walkern Road, Stevenage, Hertfordshire, SG1 3QP 

46 www.tarrc.co.uk


INCOME AND EXPENDITURE ACCOUNT 


2014 2013 

Notes £ £ 

TURNOVER 2 5,441,842 5,535,405 

Cost of sales (3,360,185) (3,292,173) 

GROSS SURPLUS 2,081,657 2,243,232 

Distribution costs (12,118) (9,279) 

Administrative expenses (1,712,632) (1,618,820) 

OPERATING SURPLUS 5 356,907 615,133 

Other finance costs 12 (35,000) (55,000) 

SURPLUS ON ORDINARY ACTIVITIES 

BEFORE TAXATION 321,907 560,133 

Tax on surplus on ordinary activities 6 (820) (1,063) 

SURPLUS FOR THE FINANCIAL YEAR 321,087 559,070 

CONTINUING OPERATIONS 

s activities were acquired or discontinued during the current year or previous year. 

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 



£ £ 

SURPLUS FOR THE FINANCIAL YEAR 321,087 559,070 

Actuarial gains / (losses) (1,408,000) 140,000 

NOTE OF HISTORICAL COST SURPLUSES AND DEFICITS 



£ £ 

The notes form part of these financial statements. 


47

Other finance costs 12 (35,000) (55,000) 


INCOME AND EXPENDITURE ACCOUNT 



s activities were acquired or discontinued during the current year or previous year. 


s activities STATEMENT were OF acquired TOTAL RECOGNISED or discontinued GAINS during AND the LOSSES current year or previous year. 


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES 


2013 

£ £ 


SURPLUS FOR THE FINANCIAL YEAR 321,087 £ 559,070 £ 

Unrealised surplus on revaluation of properties 8,817,775 - 

Actuarial SURPLUS gains FOR THE / (losses) FINANCIAL YEAR (1,408,000) 321,087 140,000 559,070 

Actuarial TOTAL RECOGNISED gains / (losses) GAINS AND LOSSES RELATING TO (1,408,000) 140,000 

THE YEAR 7,730,862 699,070 





2013 

£ £ 


£ £ 

REPORTED SURPLUS ON ORDINARY ACTIVITIES 


Difference between the historical cost depreciation 

charge and the actual depreciation charge for the 

year calculated on the revalued amount (48,197) - 

HISTORICAL COST SURPLUS ON ORDINARY ACTIVITIES 


HISTORICAL COST SURPLUS FOR THE YEAR RETAINED 

AFTER TAXATION 272,890 559,070 


48 www.tarrc.co.uk


BALANCE SHEET 

31ST DECEMBER 2014 

BALANCE SHEET 

31ST DECEMBER 2014 

ASSETS 


Notes £ £ 

FIXED ASSETS 

Tangible assets 8 9,952,665 1,212,474 

CURRENT ASSETS 

Debtors 9 1,435,314 1,577,784 

Cash at bank 705,989 677,544 

LIABILITIES 

2,141,303 2,255,328 

12,093,968 3,467,802 

RESERVES 

Revaluation reserve 10 8,817,775 - 

Income and expenditure account 10 (1,466,615) (379,702) 

15 7,351,160 (379,702) 

CREDITORS 11 189,414 160,110 

PENSION LIABILITY 12 4,553,394 3,687,394 

12,093,968 3,467,802 

The financial statements were approved by the Board on 22nd May 2015 and signed on its behalf by 

Dato’ Dr Kamarudin Ab-Malek 

Director 


Director 


Company Registraon No: 00336256 


49


CASH FLOW STATEMENT 



Notes £ £ 

Net cash inflow/(outflow) 

from operating activities 1 29,508 (1,915,930) 

Taxation (1,063) (741) 

Capital expenditure 2 - (26,006) 

Increase/(decrease) in cash in the period 28,445 (1,942,677) 

Reconciliation of net cash flow 

to movement in net funds 3 

Increase/(decrease) in cash in the period 28,445 (1,942,677) 

Change in net funds resulting 

from cash flows 28,445 (1,942,677) 

Movement in net funds in the period 28,445 (1,942,677) 

Net funds at 1st January 677,544 2,620,221 

Net funds at 31st December 705,989 677,544 


50 www.tarrc.co.uk


NOTES TO THE CASH FLOW STATEMENT 


NOTES TO THE CASH FLOW STATEMENT 


1. RECONCILIATION OF OPERATING SURPLUS TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING 

ACTIVITIES 


£ £ 

Operating surplus 356,907 615,133 

Depreciation charges 77,584 193,338 

Amounts owed by connected companies (195,098) (45,195) 

Decrease/(increase) in debtors 337,568 (253,769) 

Increase/(decrease) in creditors 29,547 (1,873,437) 

Difference between pension charge and cash contributions (577,000) (552,000) 

Net cash inflow/(outflow) from operating activities 29,508 (1,915,930) 

2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT 


£ £ 

Capital expenditure 

Purchase of tangible fixed assets - (26,006) 

Net cash outflow for capital expenditure - (26,006) 

3. ANALYSIS OF CHANGES IN NET FUNDS 

At 

At 1.1.14 Cash flow 31.12.14 

£ £ £ 

Net cash: 

Cash at bank 677,544 28,445 705,989 

677,544 28,445 705,989 

Total 677,544 28,445 705,989 

The notes form part of these financial statements 

Page 11 


51


NOTES TO THE FINANCIAL STATEMENTS 


NOTES TO THE FINANCIAL STATEMENTS 


1. ACCOUNTING POLICIES 

Accounting convention 

The financial statements are prepared under the historical cost convention and comply with financial 

reporting standards of the Accounting Standards Board. 

Turnover 

Turnover represents net invoiced sales of goods, excluding value added tax, trade discounts and all 

other taxes of sales made during the year. 

Tangible fixed assets 

Depreciation is provided at the following annual rates in order to write off each asset over its 

estimated useful life. 

Plant and machinery - 25% on cost, 20% on cost and 10% on cost 

Prior to the year ended 31st December 2014 the company depreciated freehold properties over 50 

years straight line. In addition these properties were recognised at historical cost value as the 

company did not have a policy of revaluation. It was considered by the directors that the fair value of 

the freehold properties was substantially different to the historical cost value and therefore the 

company has changed the accounting policy in this respect. The property is maintained to a high 

standard and the directors consider that the life of the property is so long and that the residual value 

is so great that future depreciation is considered immaterial. 

Where any permanent diminution of property value is incurred, a provision is made to the profit and 

estimate of residual value is based on prices prevailing at the time of 

acquisition or subsequent revaluation. 

Land and buildings are revalued by independent professional valuers on a triennial basis and 

whenever their carrying amounts are likely to differ materially from their revalued amounts. When 

an asset is revalued, any accumulated depreciation at the date of revaluation is eliminated against 

the gross carrying amount of the asset. The net amount is then restated to the revalued amount of 

the asset. 

Deferred tax 

Deferred tax is recognised in respect of all timing differences that have originated but not reversed 

at the balance sheet date. 

Research and development 

Expenditure on research and development is written off in the year in which it is incurred. 

Foreign currencies 

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling 

at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate 

of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving 

at the operating result. 


Page 12


NOTES TO THE FINANCIAL STATEMENTS continued 


NOTES TO THE FINANCIAL STATEMENTS - continued 


1. ACCOUNTING POLICIES - continued 

Hire purchase and leasing commitments 

Rentals paid under operating leases are charged to the income and expenditure account on a 

straight line basis over the period of the lease. 

Pension costs and other post-retirement benefits 

The company operates a defined benefit pension scheme for employees. The assets of the scheme 

are held separately from those of the company. 

Pension scheme liabilities are measured on an actuarial basis using a projected unit method and are 

discounted to their present value using a discount rate of 3.7% per annum. 

Pension scheme assets are valued at market value at the balance sheet date. 

The pension scheme deficit is recognised in full on the balance sheet. 

The company also operates a defined contribution scheme. Contributions payable to the defined 

contribution scheme are charged to the profit and loss account in the period to which they relate. 

2. TURNOVER 

An analysis of turnover by class of business is given below: 


£ £ 

Rubber Consultants 919,457 1,069,976 

Contributions from MRB 4,223,566 4,257,385 

Research and other contracts 194,853 97,406 

Sundry and other income 103,966 110,638 

5,441,842 5,535,405 

An analysis of turnover by geographical market is given below: 


£ £ 

UK 580,134 580,741 

Europe 403,742 543,322 

Rest of the World 4,457,966 4,411,342 

5,441,842 5,535,405 

Page 13 


53






3. STAFF COSTS 


£ £ 

Wages and salaries 2,704,609 2,608,142 

Social security costs 246,306 244,704 

Other pension costs 276,112 289,202 

3,227,027 3,142,048 

The average monthly number of employees during the year was as follows: 


Technical and administration 95 90 

4. EMOLUMENTS 


£ £ 

remuneration 63,796 62,387 

long term incentive schemes 7,868 7,322 

The number of directors to whom retirement benefits were accruing was as follows: 

Defined benefit schemes 1 1 

5. OPERATING SURPLUS 

The operating surplus is stated after charging: 


£ £ 

Hire of plant and machinery 12,362 11,216 

Depreciation - owned assets 77,584 193,337 

Auditors' remuneration 10,500 10,500 


Page 14






6. TAXATION 

Analysis of the tax charge 

The tax charge on the surplus on ordinary activities for the year was as follows: 


£ £ 

Current tax: 

UK corporation tax 820 1,063 

Tax on surplus on ordinary activities 820 1,063 

Factors affecting the tax charge 

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The 

difference is explained below: 


£ £ 

Surplus on ordinary activities before tax 321,907 560,133 

Surplus on ordinary activities 

multiplied by the standard rate of corporation tax 

in the UK of 20% (2013 - 20%) 64,381 112,027 

Effects of: 

Non taxable activities (63,561) (110,964) 

Current tax charge 820 1,063 

7. PENSION COSTS 

The company operates a defined contribution pension scheme in respect of its employees. The 

scheme and its assets are held by independent managers. The pension charge represents 

contributions due from the company and amounted to £223,074 (2013: £214,504). 

Page 15 


55






8. TANGIBLE FIXED ASSETS 

Freehold 

land and Plant and 

buildings machinery Totals 

£ £ £ 

COST OR VALUATION 

At 1st January 2014 2,513,179 3,827,532 6,340,711 

Revaluations 7,236,821 - 7,236,821 

At 31st December 2014 9,750,000 3,827,532 13,577,532 

DEPRECIATION 

At 1st January 2014 1,580,954 3,547,283 5,128,237 

Charge for year - 77,584 77,584 

Revaluation adjustments (1,580,954) - (1,580,954) 

At 31st December 2014 - 3,624,867 3,624,867 

NET BOOK VALUE 

At 31st December 2014 9,750,000 202,665 9,952,665 

At 31st December 2013 932,225 280,249 1,212,474 

Included within land and buildings above is property with a valuation of £9,750,000. The land and 

buildings were valued on 10th December 2014 by Derrick Wade Waters, Chartered Surveyors. The 

valuations are considered to be open market value. Tangible fixed assets included at a valuation 

would have been included on a historical cost basis at £2,513,179 with total aggregate depreciation 

£1,629,150 and a net book value of £884,029. 

9. DEBTORS 


£ £ 

Amounts falling due within one year: 

Trade debtors 160,213 243,347 

Amounts owed by connected companies 460,850 265,752 

Other debtors 21,161 19,649 

VAT - 16,632 

Prepayments and accrued income 276,190 276,190 

918,414 821,570 


Page 16






9. DEBTORS - continued 


£ £ 

Amounts falling due after more than one year: 

Other debtors 3,348 4,078 

Prepayments and accrued income 513,552 752,136 

516,900 756,214 

Aggregate amounts 1,435,314 1,577,784 

Included within other debtors are staff loans to the sum of £4,079 (2013: £4,809) representing 

amounts due from employees in respect of housing loans. The balance at the year end due over 1 

year is £3,348 (2013: £4,078). 

Also included within prepayments and accrued income is £789,742 (2013: £1,028,326) representing 

a contribution from the Malaysian Rubber Board in order to s 

defined pension scheme deficit. The contribution is payable over 10 years. Of the total contribution, 

£513,552 (2013: £752,136) is receivable over a period in excess of one year. 

10. RESERVES 

Income 

and 

expenditure Revaluation 

account reserve Totals 

£ £ £ 

At 1st January 2014 (379,702) - (379,702) 

Surplus for the year 321,087 321,087 

Actuarial gain / (loss) (1,408,000) - (1,408,000) 

Revaluation gain - 8,817,775 8,817,775 

At 31st December 2014 (1,466,615) 8,817,775 7,351,160 

Profit and loss account 

excluding pension liability 3,086,779 

Pension deficit (4,553,394) 

Income and expenditure account (1,466,615) 

Page 17 


57






11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 


£ £ 

Trade creditors 104,275 81,808 

Corporation tax 820 1,063 

Social security and other taxes 69,379 64,838 

VAT 742 - 

Other creditors 3,448 1,651 

Accruals and deferred income 10,750 10,750 

189,414 160,110 

12. EMPLOYEE BENEFIT OBLIGATIONS 

The amounts recognised in the balance sheet are as follows: 

Defined benefit 

pension plans 


£ £ 

Present value of funded obligations (18,417,000) (16,256,000) 

Fair value of plan assets 13,863,606 12,568,606 

(4,553,394) (3,687,394) 

Present value of unfunded obligations - - 

Deficit (4,553,394) (3,687,394) 

Net liability (4,553,394) (3,687,394) 


Page 18






12. EMPLOYEE BENEFIT OBLIGATIONS - continued 

The amounts recognised in surplus or deficit are as follows: 


pension plans 


£ £ 

Current service cost 52,000 94,000 

Interest cost 737,000 708,000 

Expected return (702,000) (653,000) 

87,000 149,000 

Actual return on plan assets 1,180,000 433,000 

Changes in the present value of the defined benefit obligation are as follows: 


pension plans 


£ £ 

Opening defined benefit obligation 16,256,000 16,287,000 

Current service cost 52,000 94,000 

Interest cost 737,000 708,000 

Actuarial losses/(gains) 1,886,000 (360,000) 

Benefits paid (514,000) (473,000) 

18,417,000 16,256,000 

Page 19 


59







Changes in the fair value of scheme assets are as follows: 


pension plans 


£ £ 

Opening fair value of scheme assets 12,568,606 11,962,606 

Contributions by employer 629,000 646,000 

Expected return 702,000 653,000 

Actuarial gains/(losses) 478,000 (220,000) 

Benefits paid (514,000) (473,000) 

13,863,606 12,568,606 

The amounts recognised in the statement of recognised gains and losses are as follows: 


pension plans 


£ £ 

Actuarial gains/(losses) (1,408,000) 140,000 

(1,408,000) 140,000 

Cumulative amount of actuarial 

gains/(losses) (1,408,000) 140,000 

The major categories of scheme assets as amounts of total scheme assets are as follows: 


pension plans 


£ £ 

Equities 8,269,000 7,998,000 

Bonds 2,291,000 1,924,000 

Gilts 3,154,000 2,612,000 

Cash 149,606 34,606 

13,863,606 12,568,606 


Page 20







The company operates a pension scheme providing benefits based on final pensionable pay. The 

assets of the scheme are held separately from those of the company, being invested with insurance 

companies. 

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): 


Discount rate 3.70% 4.60% 

Expected return on scheme assets 4.83% 5.53% 

Future salary increases 2.90% 3.20% 

Future pension increases 3.40% 3.60% 

Amounts for the current and previous four periods are as follows: 

2014 2013 2012 2011 2010 

£ £ £ £ £ 

Defined benefit pension plans 

Defined benefit obligation (18,417,000) (16,256,000) (16,287,000) (14,201,000) (12,580,000) 

Fair value of scheme assets 13,863,606 12,568,606 11,962,606 11,262,606 10,604,606 

Deficit (4,553,394) (3,687,394) (4,324,394) (2,938,394) (1,975,394) 

Experience adjustments 

on scheme liabilities (1,886,000) 360,000 (1,549,000) (975,000) (451,000) 

Experience adjustments 

on scheme assets 478,000 (220,000) 99,000 (313,000) 538,000 

Page 21 


61






13. RELATED PARTY DISCLOSURES 

During the year the company charged the Office of London Representative of the Malaysian Rubber 

Board a sum of £39,433 (2013: £45,687) in respect of administration services, use of office and 

services supplied. 

At the balance sheet date a net amount of £353,501 (2013: £81,287) was owed from the Office of 

London Representative of the Malaysian Rubber Board. This amount is shown within debtors falling 

due within one year. 

During the year the company charged a sum of £171,522 (2013: £149,052) to Elgem Technology for 

scientific and research consultancy, and the provision of services. 

At the balance sheet date Elgem Technology owed the company a sum of £94,349 (2013: £123,723). 

This amount is shown within debtors falling due within one year. 

During the year the company charged the Malaysian Rubber Export and Promotion Council £Nil 

(2013: £11,827) in respect of administration services, use of office and services supplied. No 

amounts were due at the balance sheet date. 

At the balance sheet date Malaysian Rubber Board owed the company a sum of £13,000 (2013: 

£60,742). This amount is shown within debtors falling due within one year. Also included within 

prepayments and accrued income is £789,742 (2013: £1,028,326) representing a contribution from 

the Malaysian Rubber Board in order to ass defined pension scheme 

deficit. The contribution is payable over 10 years. Of the total contribution, £513,552 (2013: 

£752,136) is receivable over a period in excess of one year. 

Tun Abdul Razak Research Centre, Elgem Technology, Malaysian Rubber Board, Malaysian Rubber 

Export and Promotion Council and the Malaysian Rubber Board Office of London Representative are 

all controlled by the Ministry of Plantation Industries and Commodities. 

14. ULTIMATE CONTROLLING PARTY 

The company is controlled by the Malaysian Rubber Board, which is a statutory authority of the 

government of Malaysia. 


Page 22






15. RECONCILIATION OF MOVEMENTS IN RESERVES 


£ £ 

Surplus for the financial year 321,087 559,070 

Other recognised gains and losses relating to the year 

(net) 7,409,775 140,000 

Net addition to reserves 7,730,862 699,070 

Opening reserves (379,702) (1,078,772) 

Closing reserves 7,351,160 (379,702) 

16. COMPANY LIMITED BY GUARANTEE 

The Tun Abdul Razak Research Centre (TARRC) is an organisation and research centre of the 

Malaysian Rubber Board, the body corporate established by statute in Malaysia for purposes of 

overseeing the development of the rubber industry with research and development as the core 

activity. 

Incorporated in England since 1938, TARRC is a Company Limited by Guarantee and not having share 

capital, the word Limited being omitted by Licence of The Department of Trade and Industry. TARRC 

by reason of the definition in Section 1 (1) of the Companies Act 1980 and the bringing into force of 

Part 1 of the Act became a Private Company on 22nd December 1980. 

The liability of each member is limited to £1. 


63

STAFF LECTURES, POSTERS & PUBLICATIONS 2014 

Speakers are indicated by an asterisk (*). All lectures listed with a number have been published. 

Stuart Cook 

Decoding the natural rubber genome for customised properties 

Tire Technology Expo, Cologne, Germany 

11-13 February 2014 

Publication 1920 

Andy Chapman 

A comparison of the performance of natural with synthetic rubbers 

German-Malaysia Round Table (GMRT) Meeting, MATRADE, Malaysian Consulate, Frankfurt, Germany 

30 October 2014 


Marina Fernando*, Anna Kepas-Suwara, Jonathan Clark and James Sandilands 

Dynamic properties of silica-filled polyisoprene rubbers and their blends with polybutadiene rubber 

186th Technical Meeting of Rubber Division, American Chemical Society (ACS), Tennessee, USA 

14-16 October 2014 


Dr Marina Fernando 

Asyraf Ismail (MRB) and Julia Gough 

Redesigning monorail lateral suspension for riding comfort 

MRB Rubber Technology Developments, volume 14 (2), pp 28-35. 


Kamarudin Ab-Malek 

Challenges in the applications of seismic rubber bearing technology 

IRRDB International Rubber Conference 2014, Manila, Philippines 

24-28 November 2014 


Anna Kepas-Suwara 

AFM imaging of silica-filled epoxidised natural rubber under strain 




Anna Kepas-Suwara, Andy Chapman* and Stuart Cook 

Nanomechanical mapping of NR/BR blends using atomic force microscopy 

186th Technical Meeting of Rubber Division, American Chemical Society (ACS), Nashville, USA 



Anna Kepas-Suwara* and Stuart Cook 

AM-FM Viscoelastic mapping of elastomer blends with AFM 

RubberCon 2014, Manchester, UK 

14-15 May 2014 


Dr Anna Kepas-Suwara 

Maria Kolesnikova-Allen 

The potential impact of biotechnology on future NR supply 




64 www.tarrc.co.uk

STAFF LECTURES, POSTERS & PUBLICATIONS 

continued 

David Lowe*, Andy Chapman, Stuart Cook and James Busfield (QMUL) 

Organo-montmorillonite and organo-sepiolite in NR-based nanocomposites 




Dr David Lowe 

Pamela Martin*, Paul Brown, Jaymini Patel and Stuart Cook 

Silica-filled ENR-25 tyre tread performance on the road 




Pamela Martin*, Paul Brown, Andy Chapman and Stuart Cook 

Silica-reinforced epoxidised natural rubber tire treads – performance and durability 

186th Technical Meeting of Rubber Division, American Chemical Society (ACS), Nashville, USA 



Pamela Martin*, Stuart Cook, Paul Brown, Andy Chapman and Jaymini Patel 

Ekoprena TM - optimising all season performance 




Alan Muhr 

Fatigue behavior of natural rubber in marine environment: comparison between air and sea water 

Materials and Design, 65 (2015), 462-467 


Alan Muhr, Hamid Ahmadi and Stergios Mitoulis* (University of Surrey) 

Uplift of elastomeric bearings in isolated bridges – A possible mechanism: Effects and remediation 

Second European Conference on Earthquake Engineering and Seismology, Istanbul, Turkey 

25-29 August 2014 


Alan Muhr and Marco Dona* (University of Padova, Italy) 

Isolation of light structures with rolling-ball rubber-layer system – characteristics and performance 




Alan Muhr, Muhammad Umar* and Nazirah Ahmad (MRB) 

Design of seismic isolation system for serviced apartment at Langkawi 




Judith Picken*, Hamid Ahmadi, and Ashley Haines (Trelleborg Ridderkerk BV) 

High frequency response of rubber-steel laminated bearings 





65

STAFF LECTURES & POSTERS 

(no publication available) 

Hamid Ahmadi 

High damping natural rubber isolators from applied research to a mature industry, a historical account 

Construct Expo 2014, Bucharest, Romania 

9-10 April 2014 


The use of seismic rubber bearings for the second Penang Bridge 

Special lecture given to Universiti Sains Malaysia, Penang, Malaysia 

March 2014 


Recent developments in natural rubber 

German Rubber Industry Association (WDK), Frankfurt, Germany 

June 2014 

Dr Pamela Martin 


High damping natural rubber bearings for seismic protection of structures 

Brunei Ministry of Development, Bandar Seri Bagawan, Brunei 

July 2014 


Seismic rubber bearings for the protection of bridges from earthquakes 

Kuwait Ministry of Public Works, Kuwait City, Kuwait 

August 2014 


Natural rubber for seismic protection of the second Penang Bridge 

Faculty of Engineering, University of Malaya, Malaysia 

November 2014 


Harnessing the future natural rubber supply – Hevea brasiliensis genome sequence as a foundation 

for targeted crop improvement 

2nd Plant Genomics Congress, London Heathrow Marriott Hotel, UK 


Poster 


Working for the future of the industry - Hevea brasiliensis clonal identification using SNP marker genotyping 

2nd Plant Genomics Congress, London Heathrow Marriott Hotel, UK 


Poster 

Alan Muhr 

Application of viscoplastic model to deformation of rubber in tension 



Poster 

66 

www.tarrc.co.uk

STAFF LECTURES & POSTERS 

continued 

Alan Muhr 

Development of a rubber for application in a tuned mass damper for rail vibration 

Rubber in Engineering Group meeting, Institute of Materials, Minerals & Mining, Trowbridge, UK 

6 June 2014 

Alan Muhr 

Rubber-steel laminates: Applications in Transport Engineering: a historical perspective 

Vereniging van Rubber en Kunststof Technologie (VKRT), Kasteel Doorwerth, Holland 

11 December 2014 

Judith Picken 

Alan Muhr, Julia Gough and Jean Louis Poisson 

The prediction of rubber behaviour for engineering design 

Short Course (15 presentations) 



Judith Picken 

Predicting the performance of hydromounts 

Advanced Engineering Exhibition, Automotive Engineering Open Conference 

NEC Birmingham, UK 

12 November 2014 

Judith Picken, Hamid Ahmadi, and Ashley Haines (Trelleborg Ridderkerk BV) 

High frequency response of rubber-steel laminated bearings 



Poster 


67

TARRC Photography Competition 2014 

Winner 

John Peters 

© Tun Abdul Razak Research Centre 2014 

68 www.tarrc.co.uk

TUN ABDUL RAZAK RESEARCH CENTRE ANNUAL REPORT 2014

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