Dear All,

2008 was in fact a year of CHANGE for PJBUMI Berhad. Firstly, on 28th Feb 2008, Progressive Impact Corporation had acquired 30.2% of PJBUMI shares and became the substantial shareholder of the company. Secondly, a new management team was created with the mission to turnaround PJBUMI Berhad, which was in the red since 2005. Most importantly, a change in business strategy was introduced and executed since middle of 2008 in order to position back the company as a profitable one.

Business Turnaround Strategy

In June 2008, the new management team has introduced a Business Turnaround Strategy (BTS) for PJBUMI Berhad and its subsidiaries. The strategy is the prescription for the company’s survival in a short term and growth for the long term. It is primarily consist of 7 Paradigms which include 1) Revenue growth, 2) Margin and Cost Improvements, 3) Prudent Cash Management, 4) Disposal of Non-Revenue Assets, 5) Debt Restructuring, 6) Increase Organizational Velocity and 7) Good Customer Management and Satisfaction. At the end of 2008, the company had displayed some interesting and promising results from the operation. We believe that, with a commitment from the PJBUMI team, continuous support from the Board of Directors and undivided shareholders confidence, PJBUMI will be able to achieve its objective and would enhance its shareholder values in a shortest possible time.

Business Growth

In the second half of 2008, PJBUMI was back in the Malaysian’s Government book. PJBUMI was recognized by the Ministry of International Trade and Industry (MITI) as the Bumiputera Controlled Public Listed Company (Bumiputera PLC) while its subsidiary PJBUMI Composite was awarded with Government Panel Contract as Bumiputera Manufacturer for Sewerage Tanks and Treatment Plant. The two approvals will allow PJBUMI to participate and bid for the Government contracts and projects locally.
In the international scene, we had organized series of road-shows for customers in ASEAN Countries to market PJBUMI product. Moreover, PJBUMI had also continued to receive orders from Sudan through its associate company in Sudan, SEECO. In 2008 alone, we had shipped HI-Kleen systems and more than 300 Units of Super-Septs systems to Sudan.

Cash and Cost Management

To survive in the business, PJBUMI must manage our cash and cost prudently. We had streamlined the organization structure to make it more effective and efficient. We had also reduced the workforce by about 25% from the previous year. Cost reduction program was also introduced to minimize cash outflow unnecessarily. We are also actively pursuing to dispose non-revenue generated assets such as company properties and vehicles which had been a burden to the company financial position.

A Brand New Culture

Throughout the implementation of the new business strategy, we had also created a brand new culture in the company. Since the PJBUMI team plays a very crucial role in the new strategy, the team mindset and work culture must be nurtured progressively. We have a common goal, which all individual employees of PJBUMI knows and follows. Customer’s satisfaction overwhelmed other priorities and the team knows that ‘Deliver On Time’ mission is not compromised. Our team spends more time on external mission rather than internal or un-productive issues.
To make the organization more effective and efficient, we have pursued on implementing ISO 9000:2000 Quality System across the departments. Today, PJBUMI Berhad and PJBUMI Composites are both an ISO 9000:2000 accredited company by SIRIM. We are one step ahead of our competitors in providing quality and reliable products and services to our customers.
Building competencies of the human capital is the critical success factor for our business future. We have provided continuous training programs for our staff both in house and external training to improve their performance and career development.

Prospect

Although the Global Recession had affected many businesses, we strongly believe that we could weather the business climate effectively. By changing our business image from‘Sewerage’ company to a ‘Green Environmental’ company, we had created a ‘Blue Ocean’ strategy that will keep us ahead of our competitors.




JOHAR BIN YUSOF
Group Managing Director