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I l J P E N N G P O R T PEN NG PORT SON BHO 2835440SU
CORPORATENo1 Pesara King Edward10300 Georgetown Penang Malaysia T
604 210 2211 604 263 4792 ceATNOKLA 439 3www penangport com my4
February 2014
To all Penang Port Sdn. Bhd. employees
Message f rom Chairman
Assalamualaikum and Salam Sejahtera,As you are most probably
aware, effective 9 January this year, I hovetaken over Chairmanship
of the Penang Port Board and I am alsocurrently assuming the role
of the Chief Executive Officer of the port.Ever since I assumed the
above roles, I have been busy going aroundthe various port
installations to meet the staff and to acquaint myself withthe way
things are being done here in Penang.In addition, I have also taken
the liberty to meet with the ports SeniorManagement team and the
Executive Committee members of thePenang Port Police Association,
Workers Union and Senior OfficersAssociation. I would like to take
this opportunity to thank everyone for thesupport shown thus far.As
part of my efforts to better understand the issues and
challengesfaced by the various SBUs and CSUs, I have requested for
briefingsessions from all SBUs and departments. I hope to complete
thesebriefing sessionswithin the next two weeks or so.I wish to
assure everyone that I am not on a witch hunt and that theongoing
initiatives are being undertaken in the best interest of
thecompany. As part of the privatization deal, we have given
ourcommitment to the Government that we will not retrench any of
theexisting staff over the next five years, and that all employees
will continueto enjoy their current staff entitlements and
benefits. However, please bereminded that just like any other
organization, actions can and will betaken against employees who
commit wrong doings or who are found tobe in breach of their terms
of employment.
LEGA L ADMINNo 1 Pesara King Edward10300 Georgetown Penang
MalaysiaT 604 210 2211 F 604 263 4792
OSHEButterworth Wharves Jalan Bagan Dalam12100 Butterworth
Penang MalaysiaT6043102300 F6043331432
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As shared and explained to those that I have had the opportunity
tomeet up with, Penang Port is no longer a Government-owned
company.With the privatisation of the port, we are now a totally
private entity, andwe are accountable to our shareholders.As such,
I would like to encourage all of you to change your mind setsand
the way we conduct our business. As a privately run
organization,our main goal should be to operate a profitable
business. In relation tothis, I intend to inculcate a better and
more efficient service culture,attain better cost efficiency and
ultimately grow the business to greaterheights.Based on my initial
observation, Penang Port has several challenges. Topof the list is
the RM1.2 billion bank borrowings of the company, which iscausing a
huge financial drain to us. To put things in perspective, for
theyear 2014 alone, we have an obligation to repay approximately
RM260million in bank loans.However, due to the port s weak cash
flow, we will have great difficultiesmeeting this obligation of
ours. Furthermore, it worries me to see that thecargo throughput
volume for the first month of 2014 has not been veryencouraging and
is lower by approximately 20 as compared to whatwe have previously
budgeted for.As such, one of my main and top priorities will be to
immediately work onconvincing the banks to agree to a restructuring
of our existing bankloans. Equally important will be the need for
us to immediately generatemore revenue from our existing
businesses, cut down on our operationalcost and in the mid to long
term explore new revenue streams. I believethat we will be able to
achieve all these if we work collectively as ateam.Moving forward,
I will consider introducing some changes to the currentmanagement
structure based on what I feel is best for the port.However, the
changes introduced will be fluid, will not be cast in stone,and may
change from time to time. Several vacant managementpositions will
need to be filled up and in doing so, I will be bringing insuitable
candidates with the required drive, skills and expertise. If
needbe, for the betterment of Penang Port, I may also consider
Expatriatecandidates.Moving forward, once I have completed engaging
the various SBUsanddepartments and have a better feel of the
business issues andchallenges, I will be requesting Human Resources
department toorganize a town hall session where I will be able to
meet all of you tofurther share my plans and direction for the
port.
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Lastly, I would like to once again thank all of you for your
kindunderstanding and support, I look forward to a good working
relationshipwith all of you.
Thank you.
Warm regards,
OATUK MOHO SIOIK SHAIK OSMANChairman
