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DEAR SHAREHOLDERS,
The operating and market conditions for the
reporting financial year remained challenging
as the global economy continued to soften
given the uncertainties following the events of
September 11 2001, the continued political
crisis in the Middle East and the weak local
and international capital markets.
However, we are glad to note that domestically
Malaysia saw a return to positive growth thanks
in large part to the Government’s expansionary
policies implemented as a counter-measure to
the international weaknesses mentioned above.
Malaysia’s GDP which grew by 5.6% in the
third quarter of 2002 was boosted by a strong
performance from the manufacturing and
construction sectors.
Within this economic context, I am pleased to
report that during the financial year ended 31
August 2002, Malaysian Resources Corporation
Berhad (MRCB) achieved significant milestones
in our efforts to strengthen the Group. MRCB’s
turnaround programme to deliver greater
shareholders value, which commenced last
financial year, is progressing steadily and is
already showing results.
MRCB has been able to take advantage of the
strengthening domestic economy and I believe
MRCB is well primed to deliver stronger
financial results and capitalise on future
opportunities upon the completion of the
Group’s Corporate Restructuring process.
MALAYSIAN RESOURCES CORPORATION
BERHAD (MRCB) ACHIEVED SIGNIFICANT
MILESTONES IN OUR EFFORTS
TO STRENGTHEN THE GROUP.
MRCB’S TURNAROUND PROGRAMME
TO DELIVER GREATER SHAREHOLDERS
VALUE, WHICH COMMENCED LAST YEAR,
IS PROGRESSING STEADILY AND
IS ALREADY SHOWING RESULTS.
Accordingly, on behalf of the Board of
Directors, I am pleased to present the Annual
Report and Financial Statements of MRCB and
its Group of Companies for the financial year
ended 31 August 2002.
FINANCIAL HIGHLIGHTS
I am indeed pleased to report that for the
financial year under review, the Group
successfully returned to profitability and
achieved a net profit of RM172.7 million
compared to a net loss of RM656.8 million in
the previous financial year.
The current financial year’s profits were
significantly enhanced by the RM153.4 million
gain on the disposal of MRCB’s stake in
Sepang Power Sdn Bhd. In comparison, last
financial year’s losses were exacerbated by a
one-off provision mainly relating to the
RM398.1 million writedown of carrying value of
investment in The New Straits Times Press
(Malaysia) Berhad (NSTP).
More hearteningly, significant operational
improvements were made to the core
businesses of the Group resulting in better
operating results compared to the previous
financial year even after discounting the impact
of the one-off exceptional items mentioned
above.
Laporan Tahunan 2002 Annual Report
LETTER FROM THE CHAIRMAN
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