MII Annual Report 2012 - The Malaysian Insurance Institute

Transcription

The Malaysian Insurance Institute
Annual Report 2012
MII City Centre @ Maju Junction Mall
S17-S28, 2nd Floor, (below the food court)
Maju Junction Mall
1001, Jalan Sultan Ismail, 50250
Kuala Lumpur, Malaysia
Tel : 03 2691 8233
Fax : 03 2693 2370
Tra n s fo r m at i o n
2012
HEADQUARTERS:
No. 5, Jalan Sri Semantan Satu,
Damansara Heights, 50490
Tel
: 03 2087 8882 / 8883
Fax
: 03 2093 7885
Email : customercare@mii.org.my
Website : www.insurance.com.my
annual report
(35445-H)
PROFESSIONAL SERVICE PROVIDER
OF THE YEAR 2007
EDUCATIONAL SERVICE PROVIDER
OF THE YEAR 2012
CONTENTS
2
Vision, Mission & Core
Values
3
Corporate Information
4
Board of Directors
5
Management Team
6
CEO’s Message
10
Audit Committee Report
MII Activity Report
Financial Statements
13
MII as a Training Provider
100
Directors’ Report
30
MII as an Examination Centre
103
Independent Auditors’ Report
46
MII as a Professional Body
105
50
MII as a Conference Organiser
Statements of Comprehensive
Income
63
MII as a Knowledge Centre
106
Statements of Financial
Position
72
MII as the Secretariat of AITRI
108
77
Others: Business Development
Statements of Changes in
Equity
92
Others: Staff Training &
Development
109
Statements of Cash Flow
111
97
Others: Information
Technology
Notes to the Financial
Statements
140
Statement by Directors
140
Declaration by the officer
primarily responsible for the
financial management of the
Institute
Annual Report 2012
THE MALAYSIAN INSURANCE INSTITUTE
2
(Incorporated in Malaysia)
VISION
CORE VALUES
To be the preferred insurance institute for human
capital development and professional standards in
insurance in Malaysia and Emerging Markets
Resourceful
We are solution-oriented by exploring possibilities to
achieve the objectives
MISSION
Strengthening the industry and adding value as
strategic partners with the insurance community by:

Raising the level of professional standards

Delivering effective human capital development
programmes

Promoting insurance related knowledge and
information

Providing a platform for social and networking
opportunities

Supporting the national agenda in promoting
insurance training and education
Speed
We strive to be fast and accurate at all times
Customer
We benchmark against best practices to meet and
exceed the needs of our customers
Integrity
We inspire trust and confidence among customers and
partners by upholding good corporate governance
Learning
We play a more effective role by continuously striving
for knowledge and skills enhancement
Annual Report 2012
Corporate Information
Board of Directors
Auditors
Encik Hashim bin Harun (Chairman)
Encik Chua Seck Guan (appointed on 03.07.2012)
Encik Vincent Kwo Shih Kang
Encik K. Logan A/L K.A Ratnam
Encik Alex Low Choon Hoong
Y.Bhg Dato Koh Yaw Hui
Encik Francis Lai @ Lai Vun Sen (appointed on
29.06.2012)
Y.Bhg Dato’ Adrian Low Heong Chow @
Loh Heong Chow
Encik Shaik Abdul Rasheed bin Abdul Ghaffour
Y.Bhg Dato’ Hj. Syed Moheeb bin Syed Kamarulzaman
Encik Alex Foong Soo Hah
Encik Md. Adnan bin Md. Zain (appointed on
29.06.2012)
Messrs. Deloitte KasimChan
Chartered Accountants
Level 19, Uptown 1
1, Jalan SS 21/58
Damansara Uptown
47400 Petaling Jaya, Selangor
(Firm No: AF 0080)
MII Executive Committee (EXCO)
Y.Bhg Dato’ Adrian Low Heong Chow @
Loh Heong Chow
Y.Bhg Dato’ Hj. Syed Moheeb bin Syed Kamarulzaman
Encik Chua Seck Guan
Bankers
Malayan Banking Berhad
RHB Bank Berhad
MII Website
www.insurance.com.my
MII Members’ e-mail
miimembers@mii.org.my
MII General Enquiry e-mail
customercare@mii.org.my
Audit Committee
Registered Office and
Principal Place of Business
(Audit Committee Chairman)
Y.Bhg Dato Koh Yaw Hui
Encik Md. Adnan bin Md. Zain (appointed on
03.07.2012)
No. 5 Jalan Sri Semantan Satu,
Damansara Heights
50490 Kuala Lumpur, Malaysia
Tel: 03 2087 8882/3
Fax: 03 2093 7885
Chief Executive Officer
MII City Centre
Puan Khadijah binti Abdullah
S17-S28, 2nd Floor
Maju Junction Mall
1001 Jalan Sultan Ismail
50250 Kuala Lumpur, Malaysia
Tel: 03 2691 8233
Fax: 03 2693 2370
Company Secretaries
Cik Lim Seck Wah (MAICSA: 0799845)
Encik M. Chandrasegaran A/L S. Murugasu
(MAICSA: 0781031)
3
Annual Report 2012
4
Board of Directors
Encik Hashim bin Harun
President & CEO
Malaysian Reinsurance Berhad
(Chairman of MII)
Encik Shaik Abdul Rasheed
bin Abdul Ghaffour
Encik Chua Seck Guan
Bank Negara Malaysia
CEO
MSIG Insurance (Malaysia) Berhad
(Chairman on PIAM)
CEO
Uni Asia Life Assurance Berhad
(President of LIAM)
CEO
Logan Loss Adjusters Sdn Bhd
(Chairman of AMLA)
Y. Bhg Dato Koh Yaw Hui
Executive Director
Jardine Lloyd Thompson Sdn Bhd
(Chairman of MITBA)
CEO
Great Eastern Life Assurance
(Malaysia) Berhad
Y.Bhg Dato’ Haji Syed Moheeb
bin Syed Kamarulzaman
MII Director
Encik Francis Lai @
Lai Vun Sen
CEO
Progressive Insurance Berhad
Y.Bhg Dato’ Adrian Low
Heong Chow @
Loh Heong Chow
MII Director
Encik Md. Adnan bin Md. Zain
MII Director
MII Director
Annual Report 2012
5
Management Team
Standing (from left)
Sitting (from left):
Rohaya Wan Khalid
Vice President – Information Technology
Muhammad Mohsin
Vice President – Internal Audit
Mohd Azlin Ahmad
Vice President – Information Technology
Tan Li Na
Senior Vice President – Corporate Services
Charan Kaur A/P Kapal Singh
Vice President – Strategy & Quality Assurance (Sales)
Mohd Taipor Suhadah
Chief Operating Officer
Zekri Ghazali
Senior Vice President – Strategy & Quality Assurance
Wahida Shariff
Senior Vice President – Registry & Examinations Centre
Khadijah Abdullah
Yahani Hashim
Vice President – Professional Centre (Product Development)
Freddie Phoon Wai Wan
Vice President – Education Centre
Rosmaniwati Agus
Vice President – Registry & Examinations Centre (Agents
Examinations Centre)
Haslindah Atan
Vice President – Accounts
Hairul Hilmi Ramlee
Senior Vice President – Professional Centre
Caroline Darlington
Vice President - Professional Centre (Product Development)
Not in the Photo:
Sherry Safrina Idris
Vice President – Strategy & Quality Assurance
(Business Development & Marketing)
Ann Margaret Joseph
Vice President - Registry
& Examinations Centre
(Examination Development
& Exemption Centre)
Mohd Khairul Reeza Ruslan
Vice President – Project
Management Office
Annual Report 2012
6
Message From CEO
Welcome to The Malaysian Insurance Institute’s 2012 Annual Report
We are pleased to report that 2012 was another positive year for MII, with a number of significant achievements. Our
strong operational and financial results have enabled us to continue to expand and provide better services to the
insurance industry. We further strengthened our educational offerings and continued to maintain high standards for our
customer support services, making us the leading insurance human capital development Institute in the Asian region and
gaining the recognition of being awarded the Asia’s Educational Service Provider of the Year 2012.
FINANCIAL PERFORMANCE
In 2012, our revenue decreased by 12% to RM15, 604,681 from
RM17, 672,941 in 2011. The decrease was due to the Takaful Basic
Examination (TBE) being no longer under custody of MII since 1
April 2012. However, with the continuous alignment of our products
and services to the needs of the industry, we are highly confident of
a stronger and better performance in 2013.
Below are the highlights of our significant achievements in 2012.
PROFESSIONAL BODY
Our professional membership continues to be one of our core
strengths, with our members comprising professionals from
all sectors in the Malaysian insurance industry. Our individual
membership rose by 18% in 2012 due to the growth in the number
of our Affiliate, Ordinary, Associate and Fellow members. In line
with the increased recognition of our professional membership,
we were excited to present many more networking channels,
information-sharing, knowledge-gathering and education support
activities to our members. This provides them with extensive
means to elevate their networking channels and professionalism as
respected insurance practitioners in this fast-moving industry.
It was a great honour for MII to receive
the Educational Service Provider of the
Year award at the 16th Asia Insurance
Industry Awards 2012 in appreciation
of MII’s laudable efforts in transforming
into an important provider of human
capital development solutions to the
industry in Asia and for expanding
our role to help create greater public
awareness of insurance.
Annual Report 2012
7
TRAINING AND EDUCATION PROVIDER
Our world-class education and professional development
programmes and courses continue to set the standard
for knowledge and skills in the industry. Our professional
qualifications, the Certificate of The Malaysian Insurance
Institute (CMII), the Diploma of The Malaysian Insurance
Institute (DMII) and the Associateship of The Malaysian
Insurance Institute (AMII) remain as our key educational
offerings and the benchmarks for the insurance industry.
In 2012, we received 7,719 enrolments for all our training
and education programmes, reflecting our constant and
resolute strive to improve our offerings to meet the diverse
and unique needs of our customers.
After many years of developing high-quality insurance
education products which have benefitted large numbers
of local and foreign insurance practitioners, we have
been in demand to provide specialised programmes for
a number of foreign insurance markets. In 2012, we were
proud to receive for the first time a group of participants
from Afghanistan who attended our training courses.
Our international participants and students also included
those from Brunei, Indonesia, Maldives, Oman, Papua New
Guinea, Saudi Arabia, Singapore, Sri Lanka, Sudan, Vietnam,
Bangladesh, Cambodia, Laos, Lebanon and Thailand.
While addressing local insurance needs remains our
main priority, we have continued to endeavour to assist
in the development of human capital in other emerging
markets worldwide. We were also honoured to be given
the opportunity to assist in developing the human capital
development of 4 foreign insurance companies, namely
Dubai Islamic Insurance and Reinsurance Company (Aman),
UAE; Thailand Insurance Institute; Insurance Business
Development Center (IBDC) of Iran and Afghanistan
Insurance Authority (AIA). For the first 3 companies, the
programmes were conducted in their home countries
while for AIA, the training was conducted in Kuala Lumpur.
The programme for AIA included introductions to the
Malaysian regulator and industry associations as part of
their knowledge-enhancement requirement.
EXAMINATION CENTRE
As the official examination centre and the custodian
of standards for the Malaysian insurance industry, we
have been given the mandate to conduct numerous
examinations for various qualifications for staff and
the agency force. These examinations were conducted
at our various centres throughout Malaysia and at our
international centres.
The increasing demand for qualifications by the industry
saw us increasing the number of our examination sessions
to cater for the large number of candidates sitting for our
examinations. In 2012, we conducted 1,154 examination
sessions involving 92,885 candidates for the 10 types of
examinations provided.
We have been implementing the Computer-Based
Examination (CBE) as an alternative to our Paper-and-Pencil
Examination (PPE) for our Pre-Contract Examination for
Insurance Agents (PCEIA) and the Certificate Examination
in Investment-Linked Life Insurance (CEILLI) papers.
The response was encouraging from our customers
from all over the country regarding our CBE facilities.
These facilities have brought them greater and speedier
opportunity to acquire agency licensing, resulting in a
big number of candidates who took the PCEIA and CEILLI
in 2012, with 51, 221 PCEIA candidates and 28, 271 CEILLI
candidates.
CONFERENCE ORGANISER
We organise about 6 to 8 national and international
conferences a year as part of our continuous initiative
to provide a platform for knowledge enhancement and
knowledge sharing within the insurance fraternity. Our
conferences for industry staff and agents for both general
and life insurance have proven to satisfy the needs of
thousands of insurance professionals each year. In 2012,
we successfully organised 7 conferences for the insurance
industry, which drew 3,491 participants from Malaysia,
Brunei, Papua New Guinea, Singapore, India, Indonesia,
Sudan, Hong Kong, Nepal and the United Kingdom.
We greatly appreciate the voluntary support of 108
speakers from all over the world who gave us their
invaluable time off from their busy schedule to present
stimulating papers and to share their ideas, expertise and
experiences. This has been extremely beneficial to the
delegates who attended our conferences.
We realise the immense potential in the role of our
conferences as the main avenue for insurance professionals
from all around the world to expand their networking
and global knowledge, especially on the Asian insurance
industry. As such, we will continue to plan more new
and improved conferences in 2013 that will discuss the
emerging and current scenarios and issues faced by the
industry and also provide practical platforms for forging
relationships among insurance practitioners worldwide.
Annual Report 2012
8
Message From CEO
(cont’d)
KNOWLEDGE CENTRE
2012 marked a momentous year for our Knowledge Centre
with the official MoU of the Knowledge Management Task
Force (KMTF), a synergistic project between MII, the Asian
Institute of Finance (AIF), the Institute of Bankers Malaysia
(IBBM), IBFIM and the Global University for Islamic Finance
(INCEIF). The aim of the KMTF is to bring about knowledge
management integration among the key players in the
Malaysian financial services industry. With the support
of Bank Negara Malaysia (BNM) and the Securities
Commission Malaysia (SC), 2 respected bodies with worldclass and established knowledge management systems
within their respective organisations, we are highly
confident that this project will be a huge success for MII
and the Malaysian insurance industry and will also provide
superior value across all other financial services sectors.
With the improved knowledge management services
provided to our members at our Knowledge Centre and
by our library online services, we recorded a total of 6,688
visitors to our MII Knowledge Centre in 2012. Our recently
launched Digital Library portal received encouraging
response with 323 visitors. This offers various online
services, namely MII Library Catalogue, MII Visualizer and
MII Digital Library.
Among our initiatives is to have more local professionals
and academicians share their experiences and knowledge
in different areas of insurance in the form of researchbased articles focusing on insurance in the Malaysian
context. In this regard, we organised a one-day intensive
workshop, INTAJ Journal Articles Writing Workshop (JAWS),
in 2012, which was well attended by university and
polytechnic lecturers, insurance practitioners and students.
This programme was designed to provide the skills of
writing quality research-based articles and to encourage
more working professionals and academicians to write for
our journal, INTAJ.
ASEAN INSURANCE TRAINING AND RESEARCH
INSTITUTE (AITRI)
On the regional front, we have been honoured to be
given the mandate as the Secretariat of AITRI for the
past 9 years by the 10 ASEAN insurance regulators. With
AITRI, we continue to strengthen regional cooperation
between the 10 ASEAN countries in facilitating human
capital development needs through education, training
and research for ASEAN regulators and insurers. In 2012,
88 participants from ASEAN countries and 21 participants
from non-ASEAN countries attended AITRI programmes
namely, Azerbaijan, Bahrain, Kazakhstan, Maldives,
Mauritius, Nepal, Nigeria, Papua New Guinea, Saudi Arabia
and Swaziland.
The Young ASEAN Manager Award (YAMA) 2012, an annual
event, was also successfully held in Thailand in 2012. The
award honours outstanding young ASEAN insurance
managers for their excellent performance and contribution
to the industry. We hope that this initiative will encourage
more outstanding young talents to join the insurance
industry and become future leaders of the industry who
will enhance the future landscape of the ASEAN insurance
industry.
CAPACITY BUILDING INITIATIVES
The Capacity Building Fund generously contributed by
BNM and the insurance industry, has greatly facilitated the
delivery of capacity building initiatives for the Malaysian
insurance industry. With the fund, we have planned 19
major projects that will change the Malaysian insurance
training and education landscape.
With some of the projects completed, in 2012, we started
the development of the MII Qualification and Education
Framework. This will be directly relevant to the industry
and insurance professionals. It aims to address our
professional programmes, qualifications and continuous
professional activities. This project is expected to position
MII as the premier insurance professional body and
education centre, consistent with the aim summarised in
BNM’s Financial Sector Blueprint 2011-2020 of positioning
Malaysia as one of the financial talent development hubs
in the region and generating more talents in the industry.
Annual Report 2012
9
Message From CEO
(cont’d)
In response to BNM’s Financial Master Plan for the
insurance sector, we are collaborating with The Malaysian
Insurance and Takaful Brokers Association (MITBA) to
develop the Competency Framework for Insurance and
Takaful Brokers as part of MITBA’s 5-year plan focusing
on a 3-pronged strategy to build and set the professional
standards of the broking fraternity.
These recognitions are derived from the tireless efforts
of our Board of Directors, staff, trainers, lecturers, the
insurance industry, regulators and countless other parties
whose commitment and dedication to MII make these
recognitions possible.
SINCEREST GRATITUDE
With all the projects in the pipeline, we maintain close
communication with the industry to provide better
understanding of our commitment and to gain useful
inputs in serving the industry better. We also work closely
with AIF to ensure that the projects are well planned and
executed.
RECOGNITIONS
We have been very privileged to receive various
recognitions from other reputable local and international
insurance-related institutions. This is a strong indication
that our roles and responsibilities are highly recognised
by the insurance fraternity worldwide. We would like to
extend our utmost appreciation to MII’s board of directors,
stakeholders, the industry and our customers for their
continuous support.
It was a great honour for MII to receive the Educational
Service Provider of the Year award at the 16th Asia
Insurance Industry Awards 2012 in appreciation of MII’s
laudable efforts in transforming into an important provider
of human capital development solutions to the industry
in Asia and for expanding our role to help create greater
public awareness of insurance.
The year 2012 was certainly very challenging and exciting
for us. We commend the industry for its support, hard
work and commitment as a result of which we have been
able to achieve noteworthy accomplishments. I am also
very grateful for the ongoing leadership and dedication of
MII EXCO Members, the MII Audit Committee and the MII
Board of Directors who have provided a strategic strength
of purpose to MII. My sincerest appreciation also goes to
our members, students and customers whose continued
trust in MII and enthusiasm for our offerings has made
2012 one of the best years for us.
Thank you.
Khadijah Abdullah
Sincerest
Appreciation
from MII CEO,
COO and Heads
of Departments
Annual Report 2012
10
1.
Constitution
The Audit Committee was established by the Board of Directors (the Board) on 15th October 2001 to
implement and support the oversight function of the Board relating to:
2.

accounting policies, financial reporting practices, risk management, control and governance processes;
and

provision of a line of communication between the Board and the external/internal auditors.
Membership and Composition
The members of the Audit Committee are appointed by the Board. The Audit Committee comprises no fewer
than 3 members, all of whom are non-executive directors. The Chairman is either appointed by the Board or
elected by members of the Audit Committee from among themselves.
3.
Authority
The Audit Committee is authorised by the Board to review or investigate any activity within its terms of
reference. It has full and unrestricted access to any information, records, personnel, and properties of MII.
The Audit Committee is also authorised to have access to independent professional or external legal advice,
and to secure attendance of outsiders with relevant experience and expertise, whenever it is deemed
necessary. MII will meet the cost of such advice or attendance.
4.
Meeting and Quorum
The Audit Committee shall meet at least 3 times each year. The quorum for each meeting is 2 members,
which must include the Chairman.
The Chief Executive Officer and the Head of Internal Audit are required to attend each meeting. Any other
directors and employees of MII or outsiders may attend the meeting upon invitation of the Audit Committee.
The Audit Committee shall also meet with the external auditors at least once a year.
In 2012, the Audit Committee met 3 times, as per the requirement of the Terms of Reference, on 12 April, 9
August and 6 December. The record of attendance is as follows:
Members
Encik Alex Low Choon Hoong (Chairman)
YBhg. Dato Koh Yaw Hui
Encik Md. Adnan bin Md. Zain*
*
Attendance
3/3
1/3
2/2
Appointed as a member of the Audit Committee on 3 July 2012
The Chairman of the Audit Committee reports to the Board on all significant matters deliberated in each
meeting.
Annual Report 2012
11
(cont’d)
5.
Duties
The main duties of the Audit Committee are:
6.

to consider the appointment of a suitable accounting firm to act as external auditors. Among the
factors that may be considered are adequacy of experience and resources of the firm, the credentials of
the persons assigned to the audit, and the audit fee;

to endorse decisions regarding the appointment or termination of the Head of Internal Audit;

to discuss with the external and internal auditors, their audit plans, nature and scope;

to review the half-year interim accounts (if any) and the audited annual financial statements;

to discuss with the external auditors their evaluation of the quality and the effectiveness of the system
of internal accounting controls;

to review the internal audit reports and discuss with the internal auditors their evaluation of the risk
management, control, and governance processes;

to review the co-operation or assistance given by MII management and staff to the external and
internal auditors;

to examine the appropriateness of the accounting policies and management practices adopted;

to review whether there is a reasonable ground to believe that the external auditors are not
independent and/or not suitable for reappointment; and

to consider any other issues, as proposed by the Board.
Highlight of Activities
The Audit Committee undertook the following routine duties in 2012:

reviewed the 2011 audited financial statements;

reviewed and approved the 2013 internal audit plan;

reviewed the internal audit reports covering ‘Strategic Management Process’, ‘Life Insurance Training
Unit’, and ‘Examination Development Unit’;

considered and endorsed internal audit’s recommendations and management’s responses; and

reviewed Enterprise Risk Management coordination activities focusing largely on implementation of
risk action plans.
During the year, upon the Board’s advice, the Audit Committee also deliberated the change of lead
engagement partner of the external audit firm.
7.
Internal Audit Department
MII has a dedicated Internal Audit department which was established in 2002. The Internal Audit department
assists the Audit Committee and the management in the effective discharge of their duties on matters
pertaining to internal controls, risk management and governance processes. The Head of Internal Audit
reports functionally to the Audit Committee and administratively to the Chief Executive Officer.
MII ACTIVITY REPORT
Annual Report 2012
13
Activity Report
MII AS A TRAINING PROVIDER
1.
OVERVIEW
Our role in training is to support and complement the human capital development initiatives of the insurance
industry. Our training products focus on technical, professional or specialised subjects not addressed at the
company level.
We offer 3 main categories of training to the public, namely General Insurance Training, Life Insurance
Training, and Professional and Certificated Programmes. These programmes are developed to build technical
knowledge and competencies of industry members ranging from staff of general and life insurance
companies, brokers, loss adjusters, insurance agents, financial planners, risk managers and many others.
2.
GENERAL INSURANCE TRAINING
General insurance training comprises 2 main streams, Technical Training Courses and Premier Series.
2.1.
TECHNICAL TRAINING COURSES
The technical training courses offer 3 levels of programmes with target audiences ranging from new
entrants to management staff. The courses are structured as basic, intermediate and advanced, with
each level containing the specified teaching units of the essential contents that the particular topic
or subject matter must have. The MII City Centre in Maju Junction Shopping Mall, Kuala Lumpur, is
currently the main training venue for these courses.
In meeting the different and specific needs and requirements of individual companies in developing
their staff competencies, all the above training can accordingly be customised as in-house training.
In this case, the companies determine the training venue and the choice of trainers, while we
recommend the topics based on the trainers’ areas of specialisation, experience and market exposure.
For international customers, in-house training can be held either in their home country or in Malaysia
and such training is identified as special courses for foreign participants.
The overall performance of general insurance training for 2012 reported a slight decrease in the
number of classes conducted as compared to 2011 i.e. a decrease of 6% or 9 classes due to the
shrinking demand for the basic training courses. However, there was an increase of 1% in the number
of participants registered in 2012 with 2,171 participants compared to 2,145 participants in 2011.
Out of 147 classes, 79 were conducted as public courses while the remaining 68 classes were
conducted as in-house courses. Conversely, the demand for in-house training for the past years has
shown a steady growth. In 2012, 68 classes were conducted compared to 49 in 2011 i.e. an increase of
39%, reflecting the change in customers’ preference to organise the courses as in-house, probably due
to cost savings as well as the need to be company-focused.
14
Annual Report 2012
Activity Report
(cont’d)
General Insurance Training Courses in 2012 and 2011:
2012
No.
Course
1
Public
2
No. of
Classes
2011
No. of
Participants
No. of
Classes
No. of
Participants
Technical
56
608
61
469
Premier Series
23
183
46
408
Sub-Total:
79
791
107
877
Technical
30
1,007
36
1,047
Special Courses for Foreign Participants
38
373
13
221
Sub-Total
68
1,380
49
1,268
147
2,171
156
2,145
In-House
Grand Total
Overall Number of Training Classes and Participants by Level in 2012 and 2011:
2012
No.
Level
No. of
Topics
1
Basic
62
61
1,316
87
70
1,358
2
Intermediate
137
85
853
145
85
780
3
Advanced
3
1
2
3
1
7
202
147
2,171
235
156
2,145
Total
No. of
Classes
2011
No. of
Participants
No. of
Topics
No. of
Classes
No. of
Participants
Public and In-House Training Courses by Level in 2012 and 2011:
2012
2011
Public
In-House
Public
In-House
No. of
No. of
No. of
No. of
No. of
No. of
No. of
No. of
Classes Participants Classes Participants Classes Participants Classes Participants
No.
Level
1
Basic
29
329
32
987
34
311
36
1,047
2
Intermediate
49
460
36
393
72
559
13
221
3
Advanced
1
2
–
–
1
7
–
–
79
791
68
1,380
107
877
49
1,268
Total
The number of participants for basic courses decreased slightly, with 1,316 participants in 2012
compared to 1358 participants in 2011. However, the number of participants for intermediate courses
increased by 73 participants from 780 in 2011 to 853 participants in 2012. The number of participants
for advanced courses declined from 7 in 2011 to 2 in 2012 as the training appetite now switched
to intermediate courses instead. In 2012, we received an increased demand for in-house training
programmes from overseas which caused the significant boost to the number of participants for the
year.
Annual Report 2012
15
Activity Report
(cont’d)
2.2.
PREMIER SERIES
The Premier Series are targeted at a more advanced audience and focus on topics meeting the current
needs, trends and practices of local and regional markets. The courses blend the trainers’ extensive
working experience and exposure exclusive to their respective areas of expertise with study visits
to bring classroom knowledge to the actual work site. The courses have attracted many foreign
participants and in view of that, hotels are considered as appropriate venues to conduct the training.
This is to facilitate accommodation convenience for foreign participants.
In 2012, we conducted 23 Premier Series courses. The courses attracted 183 participants, comprising
142 local participants and 41 overseas participants.
Some of the courses also included site visits to places relevant to the subject matter of the particular
courses.
Premier Series Courses with Site Visits Conducted in 2012:
No.
Premier Series Course
Inclusive of Site Visits to
1
A Comprehensive Course in Engineering Insurance
Workshop
PAHLAWAN POWER STATION
Tanjong Kling, Melaka
2
Applying Fire Engineering Knowledge in
Property Survey and Loss Controls
PROGRAM ELECTRONIC SDN BHD /
PROGRAM HI-TECH SDN BHD
Taman Perindustrian Puchong,
Selangor
3
Hospital and Surgical Insurance: A Practical
Approach on Selection of Risks and Claims
Assessment
NCI HOSPITAL
Nilai, Negeri Sembilan
4
A Comprehensive Course in General Insurance
(Claims)
WESTPORTS MALAYSIA SDN BHD
Pulau Indah, Port Klang, Selangor
The majority of the international participants were from ASEAN countries while the remainder came
from Bangladesh, Lebanon, Maldives, Oman, Papua New Guinea and Saudi Arabia.
Premier Series:
A Comprehensive Course in Engineering Insurance
Workshop Site visit to Pahlawan Power Station, Melaka.
12-15 March 2012
Premier Series:
Hospital and Surgical Insurance – A Practical Approach on
Selection of Risks and Claims Assessment.
Site visit to NCI Hospital, Nilai, Seremban.
16-19 April 2012
Annual Report 2012
16
Activity Report
(cont’d)
Premier Series:
Risk Based Audit For Conventional Insurers and Takaful Operators
at Seri Pacific Hotel, Kuala Lumpur
27-29 February 2012
2.3.
Premier Series:
Intensive Course in Reinsurance
at Seri Pacific Hotel, Kuala Lumpur
21-23 February 2012
FOREIGN PARTICIPANTS
In 2012, we received more overseas participation in our general insurance training courses, particularly
from regional and emerging markets, recording a 43% increase as compared to 2011. 462 foreign
participants attended the general insurance training courses in 2012 as compared to 324 in 2011. The
majority of foreign participants i.e. 373 came for the special courses, while 41 attended the Premier
Series and 48 came for the technical training courses.
For the first time, we received participants from Afghanistan. Participants from Iran represented the
largest group with 211 participants, followed by Dubai, UAE, with 98 participants and Thailand with 44
participants. All the above participants attended our special courses.
Among the reasons for the significant increase were the selection of topics that met market demands
and reputable trainers who are not only experts in the respective areas but are also willing to share
their valuable technical experience with participants. Reasonable course fees, flexibility exercised in our
courses and good learning experience attracted “repeat customers” to return for more courses with us.
Furthermore, some of the training courses included site visits, which added value to the training.
Number of Foreign Participants Attending General Insurance Training Courses in 2012 and 2011:
No.
Course
2012
2011
1
Increase/(Decrease) %
Technical Training*
48
32
50
2
Premier Series**
41
71
(42)
3
Special Courses***
373
221
67
Total
462
324
43
Notes:
*
Technical Training
: 3 levels of courses (basic, intermediate and advanced) with target audiences ranging from
new entrants to management staff. The courses contain the specified teaching units of the
essential contents that the particular topic or subject matter must have.
**
Premier Series
: Specialised courses targeted at a more advanced audience and focus on topics meeting
current needs, trends and practices of local and regional markets. The courses blend the
trainers’ extensive working experience and exposure exclusive to their respective areas of
expertise with study visits to bring classroom knowledge to the actual work site.
***
Special Courses
: Specialised courses organised for one organisation only based on their request and
preferences.
Annual Report 2012
17
Activity Report
(cont’d)
Number of Participants for Technical Training Courses and Premier Series Courses by Country in
2012 and 2011:
No.
Country
Technical Training Courses
1
2
3
4
5
6
7
8
9
10
11
12
13
Brunei
Cambodia
Hong Kong
Indonesia
Laos
Maldives
Oman
Papua New Guinea
Saudi Arabia
Singapore
Sri Lanka
Sudan
Vietnam
Total
Premier Series
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Bangladesh
Brunei
Cambodia
Indonesia
Laos
Lebanon
Maldives
Nepal
Oman
Pakistan
Papua New Guinea
Philippines
Qatar
Saudi Arabia
Singapore
Sri Lanka
Sudan
Thailand
Vietnam
Total
No. of Participants
2012
2011
8
–
–
15
–
1
8
4
2
1
4
1
4
48
–
2
–
13
1
–
–
2
4
–
5
4
1
32
2012
2011
1
5
1
13
1
4
2
–
2
–
3
–
–
4
1
–
1
2
1
41
2
10
4
30
2
–
2
2
–
1
1
3
1
1
4
2
–
6
–
71
Annual Report 2012
18
Activity Report
(cont’d)
2.3.1. In-House Training for Foreign Participants
We also organised and assisted in developing the human capital of 4 insurance companies,
namely Dubai Islamic Insurance and Reinsurance Company (Aman), UAE; Thailand Insurance
Institute; Insurance Business Development Center (IBDC), Iran; and Afghanistan Insurance
Authority (AIA). For the first 3 companies, the training was conducted in their home countries
while for AIA, the training was conducted in Kuala Lumpur.
Number of Participants Attending Special Courses by Country in 2012 and 2011:
No.
Country
1
Afghanistan
2
Bhutan
3
Dubai, UAE
4
Iran
5
2012
2011
20
–
–
38
98
–
211
–
Maldives
–
85
6
Mongolia
–
16
7
Nigeria
–
21
8
Saudi Arabia
–
11
9
Tehran
–
50
10
Thailand
44
–
373
221
Total
Special Courses by Country, Company and Course in 2012:
Country/Company
UAE
Dubai Islamic
Insurance and
Reinsurance Company
(AMAN)
Course
Fundamentals of Takaful
Insurance
Date
No. of
Participants
9 - 11 January 2012
98
24 - 25 April 2012
44
Course conducted in
Dubai
THAILAND
Thailand Insurance
Institute
Course conducted in
Bangkok, Thailand
Workshop in Business
Interruption Insurance - Claims
Annual Report 2012
19
Activity Report
(cont’d)
No. of
Participants
Country/Company
Course
Date
IRAN
Insurance Business
Development Center
(IBDC)
Comprehensive Course in
General Insurance
 Effective Negotiation Skills for
Settlement of Claims
 Business Interruption
Insurance
Insurance – Claims
 Designing an Insurance
Program using Risk
Management Approach
 Construction all Risk/Erection
Risk Insurance Claims
 Risk Management
 Reinsurance
 Reinsurance – Treaty Wording
& Accounting
 Comprehensive General
Liability Insurance
 Liability Insurance – Claims,
Specialist Liability & Product
Liability
 Engineering Insurance
Claims
 Marine Cargo Insurance
 Marine Cargo Insurance –
Claims
21 June 2012
13 September 2012
211
Comprehensive General
Insurance Training Programme
 Motor Insurance
 Fire Insurance
 Marine Hull Insurance
 Liability Insurance
Insurance
 Marine Cargo Insurance
 Miscellaneous Accident
Insurance
 Regulation and Supervision
of Insurance/Takaful
Companies
10 – 30 December 2012
20
Courses conducted in
Tehran, Iran
AFGHANISTAN
Afghanistan Insurance
Authority (AIA)
Course conducted
in Kuala Lumpur,
Malaysia
373
Annual Report 2012
20
Activity Report
(cont’d)
Dubai Islamic Insurance and Reinsurance Company (AMAN)
9 – 11 January 2012
Thailand Insurance Institute (TII)
24 April 2012
Afghanistan Insurance Authority (AIA)
10 – 30 December 2012
2.4.
EVENT MANAGEMENT
For the second year, we collaborated with Perbadanan Insurans Deposit Malaysia (PIDM) in offering
our event management services for PIDM to organise and support industry briefings on the Enhanced
Financial Consumer Protection System.
15 road shows were organised nationwide with 826 participants attending the programmes.
Session
Location
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
PIDM Office, KL Sentral
Katerina Hotel, Batu Pahat
Allson Klana, Seremban
Holiday Villa, Alor Setar
The Zenith, Kuantan
Primula Beach Resort, Kuala Terengganu
Renaissance, Kota Bahru
Bayview Hotel, Georgetown
Park Avenue, Sg Petani
Syuen Hotel, Ipoh
Riverside Majestic, Kuching
Mega Hotel, Miri
PIDM Office, KL Sentral
Selesa Hotel, Johor Bahru
MB Hotel, Tawau
Date
No. of Participants
10 April 2012
15 May 2012
16 May 2012
17 May 2012
24 May 2012
12 June 2012
14 June 2012
19 June 2012
3 July 2012
4 July 2012
11 September 2012
12 September 2012
9 October 2012
17 October 2012
17 November 2012
Total
90
48
91
41
73
80
78
29
27
31
21
15
90
72
40
826
Annual Report 2012
21
Activity Report
(cont’d)
3.
PIDM Kuala Lumpur Roadshow 2012
PIDM Kuala Lumpur Roadshow 2012
PIDM Kuala Terengganu Roadshow 2012
PIDM Kuantan Roadshow 2012
LIFE INSURANCE TRAINING
Life Insurance Training is divided into 4 main areas, namely Technical Training, Leadership and Teambuilding,
Agency Management and Agent Convention. These courses, except for agent conventions, are offered inhouse where they are held on company’s choice of premises.
In 2012, we continued to offer customised and relevant courses to meet the training needs of staff and agents
of life insurance companies and takaful operators.
Life Insurance Training Activities Conducted in 2012 and 2011:
2012
Activity
Life Insurance Courses
2011
No. of
Sessions
No. of
Participants
No. of
Sessions
No. of
Participants
24
3,476
54
4,821
Similar courses were offered in 2011 and 2012. Since many of the industry participants attended the same
courses in the previous year, 2012 saw the number of courses offered dropped from 54 sessions in 2011 to 24
sessions in 2012 reflected in a decrease of participants from 4,821 in 2011 to 3,476 in 2012.
Annual Report 2012
22
Activity Report
(cont’d)
Life Insurance Training, Number of Sessions and Participants in 2012 and 2011:
No. of
Sessions
Training Category
Skill-Building
Leadership and Teambuilding
Life Insurance and Takaful Agents
Convention
Agency Management Training
Course (AMTC)
Total
No. of
Agents Participating
No. of
Staff Participating
2012
2011
2012
2011
2012
2011
12
2
3
21
24
3
200
84
2,782
240
446
2,914
313
–
–
472
666
–
7
6
97
83
–
–
24
54
3,163
3,683
313
1,138
The Agency Management Training Course (AMTC) reported an increase of 17% in the number of sessions from
6 sessions in 2011 to 7 sessions in 2012. The number of participants for the AMTC increased by 17% from 83
participants in 2011 to 97 participants in 2012.
Skill-Building training
Leadership and Teambuilding training
Annual Report 2012
23
Activity Report
(cont’d)
3.1.
BUMIPUTERA TRAINING FUND
The Bumiputera Training Fund (BTF) was established in 1996 with the main objective of encouraging
more Bumiputera to join the agency force and providing Bumiputera life insurance agents and staff
with opportunities to develop the necessary skills and knowledge towards a long term career in life
insurance selling.
Training Category, Number of Sessions and Number of Participants in BTF Courses in 2012 and
2011:
No. of
Sessions
Training Category
2012
Agents
Participation
Staff
Participation
Total No. of
Participants
2011
2012
2011
2012
2011
2012
2011
Skill–Building
7
16
200
140
123
264
323
404
Leadership and
Teambuilding
2
16
77
316
–
258
77
574
Life Insurance Agents
Convention
1
1
639
932
–
–
639
932
Agency Management
Training Course (AMTC)
1
1
6
4
–
–
6
4
11
34
922
1,392
123
522
1,045
1,914
Total
In 2012, RM225,165 of the BTF was utilised to subsidise courses, benefiting 1,045 Bumiputera staff and
agents of life insurance companies.
4.
PROFESSIONAL AND CERTIFICATED PROGRAMMES
4.1.
PROFESSIONAL PROGRAMMES
We continued our role in providing high quality professional education to support the human
capital development of the insurance industry. 2012 also saw the continued implementation of
the 3 progressive qualifications for general insurance professionals i.e. Certificate, Diploma and
Associateship. The usual learning progression for the majority of students is from the Certificate of The
Malaysian Insurance Institute (CMII) or Diploma of The Malaysian Insurance Institute (DMII) leading to
the Associateship of The Malaysian Insurance Institute (AMII) within 3 to 4 years. However, students
may also enter at any level provided they meet the entry requirement.
A notable achievement in 2012 was the enrolment of 321 students in the CMII programme. This was an
increase of 35% in the number of students from 237 students in 2011 as compared to 2012. The AMII
programme also registered a 20% increase in the number of students from 182 students enrolled in
2011 as compared to 219 students enrolled in 2012. This increase was expected as more of the DMII
students completed their programme in 2011 and progressed to the AMII in 2012.
In contrast, there was no significant change in the number of students enrolled for the DMII
programme in 2012 as compared to 2011. The number of students enrolled for the DMII in 2012
was 232 students as compared to 233 students in 2011. The number of DMII students is expected to
increase in 2013 as more of the current CMII students complete their programme and progress to DMII.
There was also an increase of 13% in the number of students taking the International Certificate in
Risk Management (CIRM) as many CIRM students took advantage of the 50% subsidy offered by the
Capacity Building Fund.
24
Annual Report 2012
Activity Report
(cont’d)
MII is one of the approved training providers of the Registered Financial Planner (RFP) programme. RFP
is a designation that has been approved by Bank Negara Malaysia (BNM) as the qualification to apply
for the Financial Adviser’s Licence and Financial Adviser’s Representative Licence. The RFP designation
has also been approved by the Securities Commission Malaysia (SC) as one of the qualifications to
apply for the Investment Adviser’s Licence and the Capital Markets Services Licence. RFP is offered in 2
streams: RFP (Conventional) and RFP (Shariah).
The demand for the RFP programme, especially for the RFP (Conventional) programme has decreased
over the years as evidenced from the number of students registered for the RFP examination. In 2012,
there was no student enrolled for the RFP (Conventional) class compared to 20 students enrolled in
2011. However, the number of students attending the RFP (Shariah) classes increased by 38% from 42
students in 2011 to 58 students in 2012. The increase was due to the rapid growth of the general and
family takaful business which requires more competent agents to serve the industry.
Number of Students and Classes for Professional Programmes in 2012 and 2011:
No. of Classes
No.
Programme
1
No. of Students
2012
2011
2012
2011
Associateship of The Malaysian
Insurance Institute (AMII)
16
12
219
182
2
Diploma of The Malaysian Insurance
Institute (DMII)
12
12
232
233
3
Certificate of The Malaysian Insurance
Institute – Insurance (CMII)
15
12
321
237
4
International Certificate in Risk
Management (CIRM)
3
2
26
23
5
Registered Financial Planner
(RFP) (Conventional)
–
1
–
20
6
(RFP) (Shariah)
2
2
58
42
48
41
856
737
Total
4.1.1. In-House and Public Classes
The CMII, DMII and AMII programmes can be offered as public or in-house programmes. For
larger companies that have more students, classes may be conducted in-house. The trend of
2011 continued in 2012 where more public programmes were conducted as compared to inhouse programmes. Out of 48 classes, only 13 classes or 27% were conducted as in-house
programmes. However, the number of in-house programmes increased by 86% in 2012 as
compared to 2011. There was no significant difference in the number of classes conducted as
public programmes in 2012 as compared to 2011. There were 35 public classes conducted in
2012 as compared to 34 public classes conducted in 2011.
25
Annual Report 2012
Activity Report
(cont’d)
Number of In-House and Public Classes and Students in 2012 and 2011:
In-House
No. of
Classes
2012 2011
Public
No. of
Students
2012 2011
No. of
Classes
2012 2011
No. of
Students
2012 2011
No.
Programme
1
5
1
63
18
11
11
156
164
2
Diploma of The Malaysian
Insurance Institute (DMII)
–
2
–
29
12
10
232
204
3
Certificate of The Malaysian
Insurance Institute – Insurance
(CMII)
6
2
106
29
9
10
215
208
4
Management (CIRM)
–
–
–
–
3
2
26
23
5
(RFP) (Conventional)
–
1
–
20
–
–
–
–
6
(RFP) (Shariah)
2
1
58
28
–
1
–
14
13
7
227
124
35
34
629
613
Total
4.1.2. Classes Conducted Locally
In 2012, we conducted classes for professional programmes in Ipoh, Johor Bahru, Kota Kinabalu,
Kuching, Kuala Lumpur, Labuan, Melaka, Miri and Penang. 74% or 32 classes involving 610
students were held in Kuala Lumpur while 26% or 11 classes were conducted outside Kuala
Lumpur. CMII classes were offered for the first time in Labuan and Miri.
Number of Classes Conducted Locally in 2012:
Location
No. of
Classes
Institute (DMII)
Johor Bahru
1
9
2
Institute (DMII)
Kota Kinabalu
1
19
3
Institute (DMII)
Kuching
1
17
4
Institute (DMII)
Melaka
1
22
5
Institute (DMII)
Penang
1
15
6
Institute (DMII)
Kuala Lumpur
7
150
12
232
No.
Programme
1
Total
Cont’d
No. of
Students
Annual Report 2012
26
Activity Report
(cont’d)
Location
No. of
Classes
No. of
Students
Kuala Lumpur
10
160
Penang
1
8
11
168
No.
Programme
1
2
Total
1
(CMII)
Ipoh
1
19
2
(CMII)
Labuan
1
19
3
(CMII)
Miri
1
20
4
(CMII)
Penang
2
47
5
(CMII)
Kuala Lumpur
10
216
15
321
3
26
3
26
2
58
2
58
43
805
Total
1
Management (CIRM)
Kuala Lumpur
Total
1
(RFP) (Shariah)
Total
Grand Total
Kuala Lumpur
4.1.3. Classes Conducted Overseas
We conducted 1 class comprising 7 students for the AMII in Cambodia. This class was facilitated
by local lecturers from country with the assistance of lecturers from MII. We also conducted 2
classes for the AMII, attended by 16 and 12 students respectively in Indonesia.
4.2.
INTERNATIONAL PARTICIPATION
Our flagship professional programmes, in particular the AMII, continued to attract international
participants not only from the ASEAN market but also from other emerging markets such as the Middle
East and Asia. The AMII is offered in 2 modes of study, self-study and class-based.
In 2012, 51 international students enrolled for the AMII class-based programme conducted locally and
in international centres. This was an increase of 34% in the number of students compared to 2011. The
increase was because the students, particularly from Indonesia, were encouraged by their employers to
complete the AMII by 2012.
Annual Report 2012
27
Activity Report
(cont’d)
A special class for international students was conducted in Kuala Lumpur with 16 students from
Indonesia, Iran, Saudi Arabia, Maldives, Oman, Pakistan and Seychelles.
Number of International Students by Centre in 2012 and 2011:
4.3.
No. of Students
No. of Students
2012
2011
No.
Centre
1
Bangladesh
–
24
2
Cambodia
7
–
3
Indonesia
28
5
4
Malaysia
16
9
Total
51
38
INDUSTRY SPONSORSHIP
For the sixth consecutive year, Malaysian National Reinsurance Berhad (MNRB) continued its support
in the promotion of professionalism for the insurance industry by generously extending 50%
sponsorships to personnel from various insurance companies to pursue our professional programmes.
In 2012, a scholarship worth RM136, 500 was awarded to 25 students, 12 of whom were for the DMII
programme and another 13 for the AMII programme. 12 companies from the general, composite,
takaful and broking sectors of the industry benefited from this sponsorship.
Since 2007, 157 students have been awarded sponsorship, 64 students have graduated while the rest
are still pursuing the programmes.
Number of Students Awarded MNRB Sponsorship from 2007 to 2012:
Year
Batch
DMII
No. of Students Graduated
AMII
No. of Students
Graduated
2012
6th
12
Programme in progress
13
2011
5th
14
13
2010
4th
13
7
14
2009
3rd
14
10
15
6
2008
2nd
11
9
12
11
2007
1st
12
7
14
14
Total
76
33
81
31
Companies that Benefited from MNRB Sponsorship from 2007 to 2012:
1.
2.
3.
4.
5.
6.
7.
8.
AAO Global Insurance Brokers Sdn Bhd
Chartis Malaysia Insurance Berhad (now known as AIG Malaysia Insurance)
Allianz General Insurance Company (M) Bhd
AmG Insurance Bhd
AMLife Insurance Bhd
Anika Insurance Brokers Sdn Bhd
Antah Insurance Brokers Sdn Bhd
Aon Insurance Brokers (M) Sdn Bhd
Annual Report 2012
28
Activity Report
(cont’d)
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
4.4.
Asia Insurance (M) Bhd
AXA Affin General Insurance Bhd
Berjaya Sompo Insurance Bhd
BH Insurance (M) Bhd (merged with AXA Affin General Insurance Berhad on 1 January 2011)
Etiqa Insurance Bhd
Hong Leong Assurance Bhd
Insfields Insurance Brokers Sdn Bhd
Jerneh Insurance Berhad
Kurnia Insurans (Msia) Bhd
Labuan Reinsurance (L) Ltd
Lonpac Insurance Bhd
MAA Takaful Bhd
Malene Insurance Brokers (M) Sdn Bhd
Maphilindo International Sdn Bhd
Marsh Insurance Brokers (M) Sdn Bhd
McLarens Saksama (M) Sdn Bhd
MIT Insurance Brokers Sdn Bhd (also known as MSM International)
MSIG Insurance (M)Bhd
MUI Continental Insurance Bhd
Multi-Purpose Insurance Bhd
Oriental Capital Assurance Bhd
Overseas Assurance Corporation (M) Bhd
Prudential Assurance Malaysia Bhd
RHB Insurance Bhd
Rosegate Insurance Brokers Sdn Bhd
Sime Darby Lockton Insurance Brokers Sdn Bhd
State Insurance Brokers Sdn Bhd
Takaful Ikhlas Sdn Bhd
Tokio Marine Insurans (M) Bhd
Uni.Asia General Insurance Bhd
CERTIFICATED PROGRAMMES
MII Certificated Programmes are programmes that are recognised by the insurance industry as
qualifications to perform specific jobs or tasks. At the end of the programme, a certificate is awarded
to participants who demonstrate that they have met the intended learning outcomes and pass
the assessment. Our Certificated Programmes are categorised as mandatory and non-mandatory
programmes.
Included under the mandatory programmes are programmes for licensing and Train-The-Trainer (TTT),
which are as follows:
i.
ii.
iii.
iv.
Basic Certificate Course in Insurance Loss Adjusting (BCCILA)
Basic Certificate Course in Insurance Broking (BCCIB)
Registered Financial Planner Train-The-Trainer (RFP-TTT)
Basic Agency Management Course Train-The-Trainer (BAMC-TTT)
Annual Report 2012
29
Activity Report
(cont’d)
The BCCILA is aimed at new entrants to the insurance loss adjusting field while the BCCIB is for
potential insurance brokers. The BCCILA and BCCIB are normally offered 4 times a year as a public
programme. In 2012, BCCILA recorded an increase of 11% as there was 1 additional session conducted
in-house for 13 students from 1 insurance company. The BCCIB also recorded an increase of 22% in the
number of students. Similarly, 1 additional BCCIB session was conducted in-house with 16 students for
an insurance broker.
The RFP-TTT and BAMC-TTT are meant to certify in-house trainers to deliver the RFP and BAMC
programmes in their respective companies. There was an increase of 71% in the number of RFP-TTT
trainees with 72 trainees registering in 2012 as compared to 42 in 2011. Similarly, for the BAMC-TTT,
47 trainees attended in 2012, an increase of 213% as compared to 2011. The increased demand for
the BAMC TTT in 2012 was due to the update of the BAMC syllabus which attracted previous BAMC
certified trainers to attend the TTT as a refresher course.
Number of Participants Attending Certificated Programmes in 2012 and 2011:
No. of Participants
No.
Programme
2012
2011
1
Basic Certificate Course in Insurance Loss Adjusting
(BCCILA)
177
159
2
Basic Certificate Course in Insurance Broking (BCCIB)
94
77
72
42
3
Train-the-Trainer (TTT) for Registered Financial Planner
(RFP)
Train-the-Trainer (TTT) for Basic Agency Management
Course (BAMC)
47
15
4
390
293
Total
Annual Report 2012
30
Activity Report
(cont’d)
MII AS AN EXAMINATION CENTRE
1.
OVERVIEW
As the official examination centre and the custodian of standards for the Malaysian insurance industry, we
handle numerous examinations for various qualifications for the staff and agency force of the industry at our
various centres throughout Malaysia.
10 different examinations were conducted in 2012. The Pre-Contract Examination for Insurance Agents
(PCEIA) recorded the largest number of examination candidates, numbering 51,221 candidates while the
Certificate Examination in Investment-Linked Life Insurance (CEILLI) recorded 28,271 examination candidates.
We conducted 1,154 examination sessions in 2012 involving 92,885 candidates for the various types of
examinations at 22 examination centres in 14 states throughout Malaysia. This was an increase of 5% or 58
examination sessions as compared to 1,096 examination sessions conducted in 2011. However the number of
examination candidates saw a decrease from 115,609 in 2011 to 92,885 candidates in 2012. This was a drop
of 20% or 22,724 candidates. The significant decrease was due to the Takaful Basic Examination (TBE) being
no longer under the custody of MII since 1 April 2012 and being taken over by IBFIM.
Types of Examinations, Number of Examination Sessions, Candidates and Examination Centres in 2012:
No.
No. of
Exam
Sessions
Examination
Month/Day
of Exam in 2012
No. of
Candidates
Sat for Exam
No. of
Exam
Centres
Professional Programmes
1
Associateship of The
Malaysian Insurance Institute
AMII
4
January, April, July,
October
1,154
11
2
Diploma of The Malaysian
Insurance Institute
DMII
3
Insurance Institute Insurance
CMII
4
January, April, July,
October
301
9
4
RFP
4
February, May, August,
November
487
8
Certificated Programmes
5
Basic Certificate Course in
Insurance Loss Adjusting
BCCILA
4
February, May, August,
November
191
9
6
Basic Certificate Course in
Insurance Broking
BCCIB
4
March, June, July,
October
101
9
7
Basic Agency Management
Course
BAMC
4
March, June,
September, December
1,192
13
Cont’d
Annual Report 2012
31
Activity Report
(cont’d)
No.
No. of
Exam
Sessions
Examination
Month/Day
of Exam in 2012
No. of
Candidates
Sat for Exam
No. of
Exam
Centres
Agents’ Qualifying Examinations
8(a)
Pre-Contract Examination for
Insurance Agents
8(b)
63
Scheduled
examinations: Every
month
Ad-hoc: On average
every Saturday
11,831
22
Pre-Contract Examination for
PCEIA
Insurance Agents
computerbased
494
KL Centre: Monday to
Friday
Outstation/Ad-hoc:
Every Saturday
39,390
9
9(a)
The Certificate Examination
in Investment-Linked Life
Insurance
CEILLI
paper
–andpencil
60
Scheduled
examinations: Every
month
Ad-hoc: On average
every Saturday
7,202
22
9(b)
The Certificate Examination
in Investment-Linked Life
Insurance
CEILLI
computerbased
494
KL Centre: Monday to
Friday
Outstation/Ad-hoc:
Every Saturday
21,069
9
10
Takaful Basic Examination
(examinations conducted
for January to March
examination sessions only)
TBE
paperandpencil
19
Scheduled
examinations: Every
month
Ad-hoc: On average
every Saturday
9,967
22
Total
2.
PCEIA
paperandpencil
1,154
92,885
COMPUTER-BASED ASSESSMENT SYSTEM (C-BASS)
We offer the computer-based examination (CBE) as an alternative to the paper-and-pencil (PPE) examination
for the agents’ qualifying examinations. The CBE, conducted via a web-based computer-based assessment
system (C-BASS), comprises a robust question bank system (Q-Bank) and a computer-based examination
system (CBES).
We began by offering the CBE at MII City Centre, Kuala Lumpur. In July 2009, we began to offer the CBE in
Johor Bahru and Penang. In January 2011, we started to offer the CBE at 3 other centres, namely Kota Bharu,
Kota Kinabalu and Kuching. In October 2011, we opened another 3 new CBE centres in Ipoh, Melaka and
Kuantan, earlier than the original plan of early 2012. In January 2013, another 2 new CBE centres were opened
in Sungai Petani and Miri. We now have 11 CBE centres nationwide.
The industry has responded positively to the functions of the 11 CBE centres and the trend has shown a
significant increase in the number of candidates taking the CBE over the past few years.
The main advantage of candidates taking the CBE is immediate results can be obtained after each
examination session and therefore, potential agents can be recruited immediately upon their passing the
agents’ qualifying examinations. In addition, the examinations can be conducted more frequently, allowing
more candidates to pass through the system for recruitment.
Annual Report 2012
32
Activity Report
(cont’d)
Computer-Based Examination (CBE) Centres in Operation
KOTA KINABALU
SUNGAI PETANI
KOTA BHARU
MIRI
PENANG
KUANTAN
KUCHING
IPOH
KUALA LUMPUR
MELAKA
New Centre
JOHOR BAHRU
2.1.
COMPUTER-BASED EXAMINATION – OUTSTATION CENTRES
PENANG CENTRE
JOHOR BAHRU CENTRE
KOTA BHARU CENTRE
KOTA KINABALU CENTRE
Annual Report 2012
33
Activity Report
(cont’d)
3.
KUCHING CENTRE
IPOH CENTRE
KUANTAN CENTRE
MELAKA CENTRE
SUNGAI PETANI CENTRE
MIRI CENTRE
EXAMINATION E-PERMIT AND E-RESULT
We have made the examination e-permit and e-result facilities available online for all our examinations, as
part of our commitment to serve the industry more efficiently. The e-permit and e-result replace the normal
manual hardcopy examination entry permit and result notification slip.
Candidates are able to print the examination e-permits before the scheduled examination and the
e-result notification slips within a specified time after the end of the examination from our website at
www.insurance.com.my.
Annual Report 2012
34
Activity Report
(cont’d)
4.
PROFESSIONAL PROGRAMMES
4.1.
ASSOCIATESHIP OF THE MALAYSIAN INSURANCE INSTITUTE (AMII) AND DIPLOMA OF THE
MALAYSIAN INSURANCE INSTITUTE (DMII)
(a)
AMII and DMII - Local Students
The AMII and the DMII programmes are offered in 2 study schemes, class-based and self-study.
Self-study students are those not able to attend the class-based programme due to distance
and time constraints and therefore take the examination on a 100% final examination basis. In
the case of class-based students, the marks allocation for the DMII is 40% for course work and
60% for the final examination while for the AMII it is 50% for course work and 50% for the final
examination.
In 2012, 1,140 candidates sat for the AMII and the DMII examinations locally. 994 were classbased students and 146 were self-study students. The average pass rate by session ranged
between 53% and 57%, with between 11 and 16 subjects taken. The number of candidates
sitting for the examination in 2012 decreased by 9% or 114 candidates as compared to 2011.
Examination sessions were conducted on 17-19 January, 24-26 April, 24-26 July and 22-24
October 2012 at various centres throughout the country.
AMII and DMII Examinations Statistics (Local Students) for 2012 and 2011:
2012
Examination
Session
Sat
Passed
Average
Pass %
No. of
Subjects
Sat
Passed
Average
Pass %
January
12
250
143
57%
11
276
144
52%
April
11
319
175
55%
15
319
204
64%
July
14
303
161
53%
18
327
196
60%
October
16
268
146
54%
18
332
169
51%
1,140
625
55%
1,254
713
57%
Total
(b)
No. of
Subjects
2011
AMII and DMII (Class-Based) - International Students
In 2012, we continued to conduct the AMII and the DMII examinations outside Malaysia, namely
in Jakarta, Indonesia, and Phnom Penh, Cambodia.
14 candidates sat for the AMII and the DMII examinations at these international centres. The
average pass rate by session ranged between 54% and 100% with between 1 and 4 subjects
taken.
The number of candidates sitting for the examinations reflected a decrease of 78% or 51
candidates in 2012. This was because no examination was conducted in Bangladesh due to
the students’ work commitment, thus significantly reducing the total number of examination
candidates throughout the year.
Annual Report 2012
35
Activity Report
(cont’d)
AMII Examination Statistics (International Students) for 2012 and 2011:
2012
Examination
Venue
No. of
Subjects
Dhaka,
Bangladesh
Passed
Average
Pass %
No examination conducted
Phnom Penh,
Cambodia
4
13
7
54%
Jakarta,
Indonesia
1
1
1
100%
14
8
57%
Total
4.2.
Sat
2011
No. of
Subjects
Sat
Passed
Average
Pass %
5
57
8
14%
No examination conducted
3
8
1
13%
65
9
14%
CERTIFICATE OF THE MALAYSIAN INSURANCE INSTITUTE - INSURANCE (CMII)
In 2012, 301 candidates sat for the CMII examination with the average pass rate by session ranging
between 59% and 79%. The overall pass rate in 2012 registered an average of 73%, which was 15%
higher as compared to the 2011 average pass rate. The examination sessions were conducted in
January, April, July and October 2012. We will continue to encourage the industry to take the CMII as
an introductory certification for staff without any insurance background.
CMII Examination Statistics for 2012 and 2011:
2012
Month
Sat
January
41
24
59%
April
84
62
74%
35
29
83%
July
85
67
79%
97
62
64%
October
91
67
74%
50
18
36%
39
19
49%
221
128
58%
November
Total
4.3.
Passed
2011
Pass %
No examination in November 2012
301
220
73%
Sat
Passed
Pass %
No examination in January 2011
REGISTERED FINANCIAL PLANNER (RFP)
In 2012, 487 candidates sat for the RFP examination, a decrease of 10% or 52 candidates for the various
modules as compared to 2011. The average pass rate remained the same at 83% for 2012 and 2011. 4
modules i.e. modules 2, 4, 6 and 7 recorded an increase in the pass rate for 2012 as compared to 2011.
Since the inception of the programme, the Risk Management and Insurance Planning module has
achieved the highest pass rate of 99%. 242 candidates completed the RFP programme by completing
all 7 RFP modules.
36
Annual Report 2012
Activity Report
(cont’d)
RFP Statistics for Each Module for 2012 and 2011:
2012
No.
Module
Sat
Passed
Pass %
Sat
Passed
Pass %
1
Fundamentals of Financial
Planning
150
123
82%
125
106
85%
2
Risk Management and Insurance
Planning
99
98
99%
123
115
93%
3
Investment Planning
55
37
67%
62
49
79%
4
Tax Planning
54
41
76%
65
49
75%
5
Estate Planning
40
38
95%
59
57
97%
6
Retirement Planning
42
34
81%
52
41
79%
7
Application of Financial Planning
47
32
68%
53
31
58%
487
403
83%
539
448
83%
Total
5.
2011
CERTIFICATED PROGRAMMES
5.1.
BASIC CERTIFICATE COURSE IN INSURANCE LOSS ADJUSTING (BCCILA)
In 2012, 191 candidates sat for the BCCILA examination, a 20% increase or 32 candidates as compared
to 2011. 4 examinations were conducted in February, May, August and November 2012 after the
candidates attended a 4-day course at MII.
BCCILA Examination Statistics for 2012 and 2011:
2012
Month
Sat
January
No examination in January 2012
55
Pass %
90%
Sat
18
Passed
15
Pass %
83%
February
61
April
No examination in April 2012
22
May
32
25
78%
No examination in May 2011
August
28
24
86%
92
87
95%
November
70
57
81%
27
20
74%
191
161
84%
159
138
87%
Total
5.2.
Passed
2011
No examination in February 2011
16
73%
BASIC CERTIFICATE COURSE IN INSURANCE BROKING (BCCIB)
In 2012, 101 candidates sat for the BCCIB examination, an increase of 35% or 26 candidates as
compared to 2011. The examination was conducted after the candidates completed a 5-day course at
MII. The examination sessions were held in March, June, July, October and November 2012.
Annual Report 2012
37
Activity Report
(cont’d)
BCCIB Examination Statistics for 2012 and 2011:
2012
Month
Sat
Passed
Pass %
Sat
Passed
Pass %
March
45
38
84%
6
6
100%
May
No examination in May 2012
14
13
93%
June
11
9
82%
July
15
13
87%
26
26
100%
October
30
26
87%
29
25
86%
101
86
85%
75
70
93%
Total
5.3.
2011
No examination in June 2011
BASIC AGENCY MANAGEMENT CERTIFICATE (BAMC)
In 2012, 1,192 candidates sat for the BAMC examination, a decrease of 25% or 403 candidates as
compared to 2011. The average pass rate was 92%. 4 examinations were conducted in March, June,
September and December 2012.
BAMC Examination Statistics for 2012 and 2011:
Examination
Session
Sat
Passed
2011
Pass %
Sat
Passed
Pass %
March
264
237
90%
284
262
92%
June
315
293
93%
470
444
94%
September
306
272
89%
486
441
91%
December
307
293
95%
355
328
92%
1,192
1,095
92%
1,595
1,475
92%
Total
6.
2012
AGENTS’ QUALIFYING EXAMINATIONS
6.1.
PRE-CONTRACT EXAMINATION FOR INSURANCE AGENTS (PCEIA)
(a)
Overview
The Pre-Contract Examination for Insurance Agents (PCEIA) is a pre-qualifying examination for
which a pass is a must to be a life or general insurance agent. This examination is 1 of the 2
examinations which we offer in 2 modes, PPE and CBE. The PCEIA examination is divided into
3 parts. Part A tests the Principles of Insurance, Part B focuses on General Insurance and Part C
focuses on Life Insurance. Passing Part A of the PCEIA is compulsory for those wanting to join
the agency force, whether in the life or the general insurance sector. The PCEIA (PPE) and the
PCEIA (CBE) examinations are available in Bahasa Malaysia, English and Mandarin. The PCEIA
(PPE) is also offered in Tamil upon request only.
In 2012, 51,221 candidates sat for the PCEIA examination throughout Malaysia. Of these, 11,831
candidates or 23% sat for the PCEIA (PPE) and 39,390 candidates or 77% sat for the PCEIA (CBE).
Overall, 2012 saw a slight increase of 0.4% or 222 candidates for the PCEIA examination.
38
Annual Report 2012
Activity Report
(cont’d)
The number of candidates who sat for the PCEIA (PPE) declined by 26% or 4,108 candidates
as compared to 2011. However, the number of candidates sitting for the PCEIA (CBE) saw an
increase of 12% or 4,330 more candidates as compared to 2011. In 2012, 77% of the candidates
opted for the PCEIA (CBE) as compared to 69% in 2011.
PCEIA (PPE and CBE) Statistics for 2012 and 2011:
Year
2012
2011
Variance
2012 vs. 2011
Paper-and-Pencil
Examination (PPE)
Computer-Based
Examination (CBE)
Examination
Mode
Life
General
Total
Life
General
Total
Total
PPE & CBE
Sat
9,265
2,566
11,831
32,436
6,954
39,390
51,221
Passed
4,698
1,629
6,327
19,926
5,129
25,055
31,382
Pass %
51%
63%
53%
61%
74%
64%
61%
Sat
12,668
3,271
15,939
29,370
5,690
35,060
50,999
Passed
7,507
2,392
9,899
17,884
4,175
22,059
31,958
Pass %
59%
73%
65%
61%
73%
63%
63%
Sat
(3,403)
(705)
(4,108)
3,066
1,264
4,330
222
Variance %
(27%)
(22%)
(26%)
10%
22%
12%
0.4%
6.1.1. PCEIA - Paper-and-Pencil Examination (PPE)
We conduct the PCEIA (PPE) twice a month on average at 23 examination centres in Malaysia.
However, due to increasing demand and requests by companies, we also conduct the PCEIA
(PPE) sessions on an unscheduled or ad-hoc basis every Saturday on average.
2012 saw a decline of 26% or 4,108 candidates sitting for the PCEIA (PPE) as compared to the
figure for 2011. The average pass rate decreased by 9% to 53% in 2012 as compared to 62% in
2011.
PCEIA (PPE) Overall Statistics for 2012 and 2011:
2012
Life
General
2011
Total
Life
General
Total
PCEIA Paper-and-Pencil Examination
Sat
9,265
2,566
11,831
12,668
3,271
15,939
Passed
4,698
1,629
6,327
7,507
2,392
9,899
Pass %
51%
63%
53%
59%
73%
62%
Variance 2012 vs. 2011
Sat
Life
-3,403
General
-27%
-705
Total
-22%
-4,108
-26%
39
Annual Report 2012
Activity Report
(cont’d)
(a)
PCEIA (PPE) - Life Insurance Route
In 2012, the number of candidates sitting for the PCEIA (PPE) - life insurance route
dropped by 27% or 3,403 candidates to 9,265 candidates. The figure for 2011 was 12,668
candidates. These candidates comprised 78% of the total number of candidates who sat
for the PCEIA (PPE) in 2012 as compared to 79% in 2011. The average pass rate decreased
by 8% to 51% as compared to 59% in 2011.
PCEIA (PPE) Life Route Statistics for 2012 and 2011:
2012
2011
Variance
2012 vs 2011
Sat
9,265
12,668
(3,403) / (27%)
Passed
4,698
7,507
(2,809)
Pass %
51%
59%
In 2012, the number of candidates taking the examination in all 4 available languages
declined as compared to 2011. The number of candidates sitting for the examination
in Bahasa Malaysia in 2012 decreased by 36%. Candidates taking the examination in
Mandarin, English and Tamil showed a similar trend, with a drop of 21%, 20% and 11%
respectively.
PCEIA (PPE) Life Route Statistics by Language for 2012 and 2011:
2012
2011
Bahasa
Malaysia English Mandarin Tamil
(b)
Total
Bahasa
Total
Sat
3,199
3,332
2,717
17
9,265
5,010
4,190
3,449
19
12,668
Passed
1,299
1,870
1,529
0
4,698
2,734
2,663
2,106
4
7,507
Pass %
41%
56%
56%
0%
51%
55%
64%
61%
21%
59%
PCEIA (PPE) – General Insurance Route
The number of candidates sitting for the PCEIA (PPE) - general insurance route decreased
by 22% or 705 candidates to 2,566 candidates in 2012 as compared to 3,271 candidates
in 2011. The overall pass rate dropped slightly to 63% in 2012. The pass rate was 73% in
2011.
PCEIA (PPE) General Route Statistics for 2012 and 2011:
2012
2011
Variance
2011 vs 2010
Sat
2,566
3,271
(705) / (22%)
Passed
1,629
2,392
(763)
Pass %
63%
73%
40
Annual Report 2012
Activity Report
(cont’d)
In 2012, the English version of the examination remained preferred. However, the number
of candidates sitting for the examination decreased by 21% as compared to 2011.
Candidates for the examination in Mandarin, Bahasa Malaysia and Tamil showed the same
trend, reporting a decrease of 29%, 17% and 50% respectively.
PCEIA (PPE) General Route Statistics by Language for 2012 and 2011:
2012
2011
Bahasa
Total
Bahasa
Total
Sat
851
1,247
467
1
2,566
1,030
1,580
659
2
3,271
Passed
481
842
306
0
1,629
708
1,194
490
0
2,392
Pass %
57%
68%
66%
0%
63%
69%
76%
74%
0
73%
6.1.2. PCEIA: Computer-Based Examination (CBE)
The PCEIA (CBE) was conducted throughout 2012 from Mondays to Fridays at the MII City
Centre, Maju Junction Mall, Kuala Lumpur, except on public holidays. 4 sessions were conducted
on Mondays and Wednesdays, 3 sessions on Tuesdays and Thursdays, and 2 sessions on Fridays.
As for the centres in Johor Bahru and Penang, 4 sessions of the CBE were conducted every
Saturday from 9.00 am to 7.00 pm. Due to increasing demand and requests by companies, the
CBE sessions were conducted on Saturdays at the MII City Centre and on Sundays at the Johor
Bahru and Penang centres on an ad-hoc basis in addition to the pre-determined schedule. 4
sessions of the CBE were conducted each month from 9.00 am to 7.00 pm at the other outstation centres, namely Kota Kinabalu, Kuching, Kota Bharu, Ipoh, Melaka, Kuantan, Miri and
Sungai Petani.
2012 recorded a growth of 12% or 4,330 candidates as compared to 2011. The CBE is preferred
due to the immediate release of results after each examination, speeding up the candidates’
recruitment registration process as insurance agents. The average pass rate reported an increase
of 1% to 64% as compared to 63% in 2011.
PCEIA (CBE) Overall Statistics for 2012 and 2011:
2012
Life
General
2011
Total
Life
General
Total
PCEIA Computer-Based Examination
Sat
32,436
6,954
39,390
29,370
5,690
35,060
Passed
19,926
5,129
25,055
17,884
4,175
22,059
Pass %
61%
74%
64%
61%
73%
63%
Variance 2012 vs. 2011
Life
Sat / %
3,066
General
10%
1,264
Total
22%
4,330
12%
Annual Report 2012
41
Activity Report
(cont’d)
(a)
PCEIA (CBE) - Life Insurance Route
In 2012, the number of candidates who sat for the PCEIA (CBE) - life insurance route
increased by 10% or 3,066 candidates as compared to 2011. The average pass rate
remained the same at 61% for 2012 and 2011.
PCEIA (CBE) Life Route Statistics for 2012 and 2011:
(b)
2012
2011
Variance
2012 vs 2011
Sat
32,436
29,370
3,066 / 10%
Passed
19,926
17,884
2,042
Pass %
61%
61%
PCEIA (CBE) - General Insurance Route
The number of candidates taking the PCEIA (CBE) - general insurance route increased
by 22% or 1,264 candidates as compared to 2011. The average pass rate reported an
increase of 1% to 74% as compared to 73% in 2011.
PCEIA (CBE) General Route Statistics for 2012 and 2011:
6.2.
2012
2011
Variance
2012 vs 2011
Sat
6,954
5,690
1,264 / 22%
Passed
5,129
4,175
954
Pass %
74%
73%
THE CERTIFICATE EXAMINATION IN INVESTMENT-LINKED LIFE INSURANCE (CEILLI)
(a)
Overview
The CEILLI is a pre-qualifying examination for life insurance agents who want to sell investmentlinked life insurance products for life insurance companies. This examination is 1 of the 2
examinations we offer in 2 modes, PPE and CBE. The PPE and CBE examinations are available in
Bahasa Malaysia, English and Mandarin.
In 2012, 28,271 candidates sat for the CEILLI examinations throughout Malaysia. 7,202
candidates sat for the PPE and 21,069 sat for the CBE. Overall, the total number of candidates
who sat for the examination in 2012 saw a decrease of 6% or 1,886 candidates as compared to
2011. The overall average pass rate was 52%, a drop of 1% as compared to 2011.
The number of candidates who sat for the CEILLI (PPE) declined by 26% or 2,491 candidates
as compared to 2011. However, the number of candidates sitting for the CEILLI (CBE) saw an
increase of 3% or 605 more candidates as compared to 2011. In 2012, 75% of the candidates
opted for the CEILLI (CBE) while in 2011 the figure stood at 68%.
Annual Report 2012
42
Activity Report
(cont’d)
CEILLI Overall Statistics for 2012 and 2011:
Year
2012
2011
Variance 2012
vs. 2011
(a)
Examination
Mode
Paper-and-Pencil
Examination (PPE)
Computer-Based
Examination (CBE)
Total PPE
and CBE
Sat
7,202
21,069
28,271
Passed
3,153
11,424
14,577
Pass %
44%
54%
52%
Sat
9,693
20,464
30,157
Passed
5,091
10,904
15,995
Pass %
53%
53%
53%
Sat
(2,491)
605
(1,886)
Variance %
(26%)
3%
(6%)
CEILLI Paper-and-Pencil Examination (PPE)
The CEILLI (PPE) is conducted on average twice a month at 22 examination centres all
over the country. However, due to increasing demand and requests by companies, the
CEILLI (PPE) sessions were also conducted as unscheduled or on an ad-hoc basis on
average every Saturday.
The number of candidates sitting for the CEILLI (PPE) declined by 26% or 2,491
candidates in 2012 as compared to 2011. The average pass rate was 44%, a decrease of
9% as compared to 53% in 2011. All CEILLI, PPE and CBE examination questions were
reviewed, checked and moderated by the LIAM committee in early 2012. The drop in
the 2012 pass percentage could have been due to candidates’ lack of preparation and
understanding of the subject matter.
CEILLI (PPE) Overall Statistics for 2012 and 2011:
2012
2011
Variance
2012 vs 2011
Sat
7,202
9,693
(2,491) / (26%)
Passed
3,153
5,091
(1,938)
Pass %
44%
53%
The number of candidates for the CEILLI (PPE) examination in all offered languages
reported a decrease. The drop in the number of candidates for the examination in Bahasa
Malaysia was 40%, for English it was 23% and for Mandarin it was 15%.
Candidates who sat for the examination in English reported the highest pass rate of 56%,
followed by Mandarin at 43% and Bahasa Malaysia at 29%. The overall average pass rate
dropped by 9% from 53% in 2011 to 44% in 2012.
43
Annual Report 2012
Activity Report
(cont’d)
CEILLI (PPE) Statistics by Language for 2012 and 2011:
2012
2011
Bahasa
Malaysia English Mandarin Total
Sat
Passed
Pass%
(b)
1,887
554
29%
2,508
1,394
56%
2,807
1,205
43%
Bahasa
Malaysia English Mandarin
7,202
3,153
44%
3,150
1,313
42%
3,249
2,127
65%
3,294
1,651
50%
Total
9,693
5,091
53%
CEILLI Computer-Based Examination (CBE)
The CEILLI (CBE) was conducted throughout 2012 on Mondays to Fridays at MII City
Centre, Maju Junction Mall, Kuala Lumpur, except on public holidays. 4 sessions were
conducted on Mondays and Wednesdays, 3 sessions on Tuesdays and Thursdays, and
2 sessions on Fridays. As for the Johor Bharu and Penang centres, 4 sessions of the CBE
were conducted every Saturday from 9.00 am to 7.00 pm. Due to increasing demand and
requests by companies, the CEILLI (CBE) examinations were also conducted ad-hoc on
Saturdays at the MII City Centre and on Sundays at the Johor Bharu and Penang centres.
As for the other out-station centres, namely Kota Kinabalu, Kuching, Kota Bharu, Ipoh,
Melaka, Kuantan, Miri and Sungai Petani, 4 sessions of the CEILLI (CBE) were conducted
each month from 9.00 am to 7.00 pm.
2012 recorded a growth of 3% or 605 candidates as compared to the figures for 2011.
CBE has become the preferred mode of examination due to the immediate release
of results after each examination, speeding up candidates’ recruitment registration
process as insurance agents. The average pass rate reported an increase of 1% to 54% as
compared to 53% in 2011.
CEILLI (CBE) Overall Statistics for 2012 and 2011:
Sat
Passed
Pass %
2012
2011
21,069
11,424
54%
20,464
10,904
53%
Variance
2012 vs 2011
605 / 3%
520
The number of candidates sitting for the CEILLI (CBE) examinations in all languages
increased, with the examination in Mandarin reporting the highest increase of 13%.
Candidates who sat for the examination in English reported the highest pass rate of 67%,
followed by Mandarin at 45% and Bahasa Malaysia at 38%. The overall average pass rate
increased by 1% from 53% in 2011 to 54% in 2012.
CEILLI (CBE) Statistics by Language for 2012 and 2011:
2012
2011
Bahasa
Malaysia English Mandarin Total
Sat
Passed
Pass %
4,245
1,604
38%
10,099
6,767
67%
6,725
3,053
45%
21,069
11,424
54%
Bahasa
Malaysia English Mandarin
4,376
1,554
36%
10,125
6,732
66%
5,963
2,618
44%
Total
20,464
10,904
53%
Annual Report 2012
44
Activity Report
(cont’d)
6.3.
TAKAFUL BASIC EXAMINATION (TBE)
The Takaful Basic Examination (TBE) is an examination made compulsory for all takaful agents by the
Malaysian Takaful Association (MTA). The first TBE was introduced in February 2009. The examination
was offered in Bahasa Malaysia and in the PPE mode only.
In 2012, the TBE was conducted only for 3 months. IBFIM took over the conduct of the TBE beginning
the April 2012 examination. 2012 recorded a growth of 47% or 1,898 candidates as compared to the
same period in 2011.
The average pass rate for the January to March 2012 examinations decreased by 5% to 71% as
compared to 76% for the same period in 2011.
Takaful Basic Examination Overall Statistics for 2012 and 2011- (January to March):
2012
7.
Variance
2012 vs 2011
2011
January - March
January - March
January - December
January - March
Sat
9,967
6,785
30,665
3,182 / 47%
Passed
7,046
5,148
24,076
1,898
Pass %
71%
76%
79%
EXAMINATIONS DEVELOPMENT AND EXEMPTIONS
The Examinations Development & Exemptions Unit (EDE) under the Registry & Examinations Centre
ensures quality standards while maintaining our question bank for all examinations conducted by MII.
The development of question papers involves appointing question setters, moderators, translators and
proofreaders, right up to the production of the final examination papers.
The Unit also assesses and awards accreditation of prior learning for some of the major and compulsory
examinations offered by MII.
The Unit is committed to continuously enhancing the quality and standard of the examinations offered to be
in line with international standards. As such, the Unit
i.
Develops the questions using the guidelines given by Majlis Peperiksaan Malaysia (MPM), The
Chartered Insurance Institute (CII), UK, and other professional bodies to ensure reliability, validity and
quality.
ii.
Continuously reviews the questions periodically to ensure that the questions remain current, relevant
and in tandem with the needs of the industry.
iii.
Ensures the setting of, moderation and review of examination questions by subject matter experts
(SME).
iv.
Imposes a high level of security in the process of ensuring the questions are reliable and valid.
Annual Report 2012
45
Activity Report
(cont’d)
Significant Activities in 2012
The Examinations Development & Exemptions Unit:
8.
i.
Developed 1,649 sets of e-papers for the PCEIA (CBE) and the CEILLI (CBE).
ii.
Developed 1,432 sets of question papers for all PPE. The number of sets of question papers produced
increased by 4% as compared to 2011 due to the conduct of more ad-hoc examinations for the PCEIA,
CEILLI and TBE examinations.
iii.
Developed 922 additional new questions, of which 240 new questions were developed for PCEIA,
CEILLI and BCCILA and a total of 682 questions were received from AMII and DMII class lecturers and
question setters.
iv.
Developed 20 sets of assignment questions and 8 sets of test questions for DMII and AMII international
class in Cambodia.
v.
Carried out the processes of moderation, proofreading, editing and translations by SMEs of a total of
5617 questions for various examinations in 2012 to uphold the quality, standards and relevancy of the
examination questions.
vi.
Continued to process requests for exemptions in respect of prior learning that students have
undertaken outside of MII qualifications. A total of 101 exemptions applications were received for AMII,
DMII, CMII, PCEIA and CEILLI examinations in 2012.
EXTERNAL EXAMINATIONS
We continued to be given the trust and mandate as the regional examination centre by several international
examining bodies during the year. We facilitated the following examinations for 376 candidates taking various
external examinations.
External Examinations Facilitated by MII in 2012 and 2011:
No. of Candidates
No.
Examination
2012
2011
1
Casualty Actuarial Society (CAS), UK
42
29
2
The Chartered Insurance Institute (CII), UK
91
93
3
The Chartered Institute of Loss Adjusters (CILA),UK
4
Society of Actuaries (SOA), USA
5
The Institute of Risk Management (IRM),UK
6
The Australian and New Zealand Institute of Insurance and
Finance (ANZIIF), Australia
Total
1
No
examination
204
246
38
41
No
examination
376
1
410
46
Annual Report 2012
Activity Report
(cont’d)
MII AS A PROFESSIONAL BODY
1.
OVERVIEW
As a professional body, we maintain a membership register comprising Individual and Institutional
members. Individual membership includes Fellow, Associate, Ordinary and Affiliate membership. In 2012,
we had 1,397 individual members. Institutional members comprise all registered insurance and reinsurance
companies, insurance brokers and loss adjusters in Malaysia, making a total of 127 Institutional members with
approximately 25,000 staff.
Our membership offers a platform for members to enjoy privileges in our products and services and
professional networking through invitation to our activities and events. Selected benefits are also extended to
the staff of our Institutional members.
1.1.
MEMBERSHIP STATUS IN 2012
As at 31 December 2012, MII had 1,397 Individual members and 127 Institutional members.
1.1.1 Number of Individual Members in 2012:
Year
No.
Category
1
Affiliate
558
504
2
Ordinary
506
380
3
Associate
321
293
4
Fellow
12
11
1,397
1,188
Total
2012
2011
The significant increase of 18% or 209 in the total number of Individual members in 2012 was
due to the increase in the number of Affiliate, Ordinary, Associate and Fellow members. This
is because our membership has become better recognised through our continuous efforts to
promote MII membership to potential members at our conferences and other external events.
We also actively visit insurance companies to promote our membership programmes to
industry staff.
1.1.2 Number of Institutional Members in 2012:
Year
No.
Sector
1
Reinsurance
7
7
2
Composite
7
9
3
General
20
21
4
Life
8
8
5
Brokers
36
36
6
Adjusters
36
36
7
Others (Non- Insurance)
13
9
127
126
Total
2012
2011
Annual Report 2012
47
Activity Report
(cont’d)
All current registered insurance and reinsurance companies, insurance brokers and loss
adjusters in Malaysia which are licensed under the Insurance Act 1963 remained as MII
Institutional members in 2012. The overall total of Institutional members increased from 126 in
2011 to 127 company members in 2012. This was attributed particularly to the increase in the
number of MII Institutional non-insurance members from 9 in 2011 to 13 in 2012. These noninsurance companies, particularly takaful operators and other service providers are not required
to be Institutional members of MII.
2.
MEMBERSHIP ACTIVITIES
7 activities involving 436 members were successfully organised in 2012. The activities ranged from industrywide events to specific activities for members for networking and also to gain general knowledge.
In order to cater to all categories of members that include insurance industry staff and the agency force, the
topics of membership talks in 2012 ranged from technical insurance to non-technical insurance subjects such
as Liability Insurance and Your Role in Estate Planning, among others.
We also continuously participated in exhibitions at seminars and conventions organised by external parties.
These initiatives were to create awareness of our membership to potential Individual members.
2.1.
MEMBERSHIP TALKS
List of Membership Talks in 2012:
No.
Date
Topic
1
22 February 2012
Liability Insurance
2
27 March 2012
Work & Life Balance
3
7 May 2012
Personality Assessment for Better Management
4
12 June 2012
Your Role in Estate Planning
5
29 June 2012
MII Annual General Meeting
6
14-16 August 2012
MII Transformation Blueprint Briefing with MII Members
7
13 October 2012
Inter-Insurance Companies Bowling Tournament 2012
Talk on Liability Insurance at MII City Centre
22 February 2012
Talk on Personality Assessment for Better Management
at MII City Centre
27 March 2012
Annual Report 2012
48
Activity Report
(cont’d)
2.2.
INTER-INSURANCE COMPANIES BOWLING TOURNAMENT 2012
As part of our mission to provide a platform for social and networking opportunities to people across
the insurance industry, the Inter-Insurance Companies Bowling Tournament 2012 was successfully
organised for the sixth year on 13 October 2012 at Sunway Mega Lanes, Sunway Pyramid, Selangor.
This served as an excellent opportunity for the industry to get together as a unified industry. 240
players from 30 companies from all sectors of the insurance industry including general and life
companies, brokers and loss adjusters participated in the tournament.
Insurance Companies’ Team:
Total Score
Pins
Place
Company/Team
Prize
Champion
Etiqa Insurance Berhad – Group A
2,229
Champion trophy, trophy for
each player, cash and hamper
1st runner-up
Etiqa Insurance Berhad – Group B
1,988
Trophy for each player, cash
and hamper
2nd runner-up
Great Eastern Life Assurance
Berhad – Group A
1,954
and hamper
4th placing
MSIG Insurance (Malaysia) Bhd –
Group A
1,911
and hamper
5th placing
MSIG Insurance (Malaysia) Bhd –
Group B
1,882
and hamper
Best Bowler:
Total Score
Pins
Category
Name/Company
Prize
Male
En Tajuddin Tajul Ariffin – Etiqa
Insurance Berhad
595
Trophy, cash and hamper
Female
Ms Yvonne Chang – Great Eastern
Life Assurance (Malaysia) Berhad
404
Trophy, cash and hamper
Annual Report 2012
49
Activity Report
(cont’d)
Team ETIQA A – Champion
Team ETIQA B – 1st Runner Up
Team GELA A – 2nd Runner Up
En Tajuddin Tajul Ariffin from Team ETIQA A,
the winner for Best Bowler (male category)
Ms Yvonnne Chong from Team GELA B, the winner for Best Bowler
(female category)
Annual Report 2012
50
Activity Report
(cont’d)
MII AS A CONFERENCE ORGANISER
1.
OVERVIEW
Annually, we conduct about 6 to 8 national and international level conferences specially designed to meet
the specific needs of the industry. These receive tremendous support from various local and international
organisations. In addition to the gaining and sharing of knowledge and experiences, our conferences provide
valuable platforms for networking.
We successfully organised 7 conferences for the insurance industry in 2012. These drew 3,491 participants
from Malaysia, Brunei, Papua New Guinea, Singapore, India, Indonesia, Sudan, Hong Kong, Nepal and United
Kingdom. 108 international and local speakers presented exciting papers, sharing their expertise with the
delegates. We have been very honoured to receive the invaluable support of speakers in their voluntary
presence at all the events. This has been extremely beneficial to MII in our aim of providing world class
knowledge and expertise to delegates attending the conferences.
Conferences Organised in 2012:
No.
Conference
Date
No. of
participants
No. of
speakers
General Insurance Conferences
1
International Claims Convention
28-29 May 2012
88
20
2
Medical and Health Insurance Conference
18-19 June 2012
60
16
3
General Insurance Agents Convention
3 July 2012
434
8
4
2nd Malaysia Insurance Summit
1-2 October 2012
127
33
19 May 2012
441
8
Life Insurance Conferences/Conventions
5
Konvensyen Ejen Takaful 2012
6
Malaysia MDRT Day 2012
1 September 2012
1,691
18
7
Konvensyen Ejen Insurans Hayat
Bumiputera 2012
22 September 2012
650
5
3,491
108
Total
2.
CONFERENCES ORGANISED
2.1.
INTERNATIONAL CLAIMS CONVENTION
MII, with the support of the General Insurance Association of Malaysia (PIAM), Life Insurance
Association of Malaysia (LIAM), Association of Malaysian Loss Adjusters (AMLA), The Malaysian
Insurance and Takaful Brokers Association (MITBA), Malaysian Takaful Association (MTA) and National
Insurance Claims Society (NICS), convened the International Claims Convention 2012. Themed Claims
Challenges, the convention was held from 28-29 May 2012 at Hotel Istana, Kuala Lumpur.
The convention was officiated by Mr Donald Joshua Jaganathan, Assistant Governor of Bank Negara
Malaysia. 88 delegates attended the two-day convention,including delegates from, Brunei, Papua New
Guinea, Singapore and Malaysia. This was an increase of 28 participants or 47% from 60 participants
in 2011. 20 renowned industry experts from Singapore, Australia, Korea and Malaysia shared their
experience as speakers at this event.
Annual Report 2012
51
Activity Report
(cont’d)
The convention highlighted the trends and impact on claims resulting from climate changes, natural
catastrophe, fraud, regulatory changes both in domestic and regional content. Participants were
delighted with the session and discussion and provided very encouraging evaluation.
Testimonials from participants:
“Well organised. Good selection of speakers. Active two-way communication between
delegates and speakers”
S. Vickkneswaran, Vice President – Operations & Claims, Antah Insurance Brokers Sdn Bhd
“Great opportunity to hear precious views of expertise from various fields.”
Cheung Li Han, Deputy Manager, Labuan Reinsurance Ltd
“Gained valuable updates on global events with insight details. Love the forum as more
views were shared.”
Rebecca Chan, Underwriter, MCIS Zurich
“Good platform to share current local and overseas claims challenges.”
Kok Yan Peng, MSIG Insurance
Mr Donald Joshua Jaganathan, Assistant Governor, Bank Negara Malaysia delivering the keynote address
Participants at the conference
Annual Report 2012
52
Activity Report
(cont’d)
2.2.
MEDICAL AND HEALTH INSURANCE CONFERENCE
The Medical and Health Insurance Conference was held from 18-19 June 2012 at Hotel Istana, Kuala
Lumpur, with the support of PIAM, LIAM, AMLA, MITBA, MTA and Malaysia Healthcare.
The theme was Defining the Future of Medical and Health Insurance to specifically address the challenges
faced by the healthcare industry in the local and foreign markets.
The two-day international conference also provided a platform for engagement with renowned field
practitioners from advanced and local markets. Over 60 participants from Singapore, India, Indonesia,
Sudan and Malaysia attended the conference. This reflected an increase of 12 participants or 25%
from 48 participants in 2011. 16 insurance experts from Singapore, India, Indonesia and Malaysia
participated as speakers.
Interactive presentations by the speakers
Q & A session with speakers
“A conference with informative and interesting topics.”
Ko Ching Lay, Assistant Manager, Zurich Insurance Malaysia Berhad
“Superb event for medical and healthcare practitioners.
Sheikh Abdul Rahman, Vice President, Medical Health, Takaful Ikhlas Berhad
Annual Report 2012
53
Activity Report
(cont’d)
“Well organised, informative and provides a good platform for exchanging of ideas.”
M.H Geng, ACE Jerneh Insurance Berhad
“It is a good conference and networking space to all insurer associates.”
Chong Sock Yee, Assistant Manager, Prudential Insurance Berhad
“A good choice of topics with speakers from varied backgrounds.”
Lee Phaik Suan, Assistant Manager, QBE Insurance Berhad
“Very informative conference on global health.”
Masriati, Tradewinds International Insurance Brokers Sdn Bhd
2.3.
GENERAL INSURANCE AGENTS CONVENTION
The General Insurance Agents Convention is an annual event organised by MII with the support of
PIAM. Subsequent to the success of the event in previous years, the convention was again held on
3 July 2013 at Hotel Istana, Kuala Lumpur, with the theme The Way Forward…What is the Big Picture?.
Mr Wong Kim Teck, Deputy Chairman of PIAM, delivered the opening address and officiated the
convention. The event was well attended by 434 participants and 8 speakers spoke on various topics
that benefited the audience with 1 forum dedicated for the CEOs and senior leaders of the Malaysian
insurance industry. The number of participants did not meet our expectation and was lower by 10% or
46 participants compared to 480 in 2011 due to several companies merger and acquisition this year.
Nonetheless, those who attended provided very encouraging evaluation.
This convention opened a platform for agents to gain new knowledge and skills to enable them to play
a bigger role in the insurance industry in addition to their continuous professional development (CPD).
“A very interactive programme and should be attended by all general insurance agents.”
Mohd Aizly Mohamad Moh, Etiqa Takaful Berhad
“Well done. Good exposureto thefuture of agents. Gained a lot!”
Sin Dun Suan, Agent, Jee Seng Marketing
“The way forward brings me real positive change, positive thinking also helped me to
improve and raise my confidence level.”
Suzila Mat Hussin, Manager, Pantai Bharu Corporation SB
“Good platform for networking.”
Kevin Seong, Manager, RHB Insurance Berhad
“Good for knowledge and motivation besides networking.”
Ramli Ar, Agent, Agensi Nadi - Etiqa
Annual Report 2012
54
Activity Report
(cont’d)
Panel session: 90 Minutes with CEO
Inspiring speakers motivating the participants
Participants at the convention
Annual Report 2012
55
Activity Report
(cont’d)
2.4.
2nd MALAYSIA INSURANCE SUMMIT
Following the success of the 1st Malaysia Insurance Summit 2011, MII, with the support of PIAM, LIAM,
AMLA and MITBA, organised the 2nd Malaysia Insurance Summit with the theme Are We Ready for
Tomorrow?. About 127 delegates gathered at the Prince Hotel, Kuala Lumpur, from 1-2 October 2012 to
listen to the views of C-level executives and subject matter experts on up-to-date insights of the future
market and trends that have impacted the Malaysian insurance industry.
The Summit was officiated by YB Sen Dato’ Ir Donald Lim Siang Chai, Deputy Minister of Finance
(I), Ministry of Finance Malaysia. The Summit attracted 127 delegates from Brunei, Hong Kong,
Malaysia, Nepal, Singapore and United Kingdom, with an increase of 15 participants or 13% from 112
participants in 2011.
High quality keynotes and papers were presented by 33 industry experts who shared knowledge on
various topical topics and their experiences with the participants. The Summit provided a platform for
networking opportunity for members of the insurance industry to meet with key leaders and generate
solutions for the industry’s consideration.
YB Sen Dato’ Ir Donald Lim Siang Chai officiating the Summit accompanied by (from left) En Azli Munani, CEO of MTA; Pn
Khadijah Abdullah, CEO of MII; Mr Francis Lai Vun Sen, MII Director and En Shaiful Arbi Abdul Aziz, Honorary Secretary,
MITBA.
Annual Report 2012
56
Activity Report
(cont’d)
Industry leaders as panellists and speakers at
the event
“I found the 2nd Malaysia Insurance Summit 2012 is the best and was really impressed by
the way entire summit was organised.”
Suriani Mohd Zain, Etiqa Insurance
“Well-thought of topics encompassing current issues and well organised. Well done
organiser!”
Nurhafizi Hanis, Petronas
“It is a good platform for all the insurance players together to discuss all issues related to
the industry.”
Diana Chua Hong Ping, AIA
“The summit has chosen very current and relevant topics related to the Malaysian market.
It has been very fruitful and something to take home.”
Chan Wai Choong, AXA Affin General Insurance Bhd
“Good forum to network and a platform to hear the experience on issues / topics discussed.”
Loke, MSIG Insurance Berhad
“It is an interesting forum which reflects current and future issues with leaders who are
willing to share Malaysian insurance standards and capability.”
Joanne Cheah, AON Insurance Brokers
Annual Report 2012
57
Activity Report
(cont’d)
2.5.
KONVENSYEN EJEN TAKAFUL (TAKAFUL AGENTS CONVENTION)
In 2012, the Takaful Agents Convention was organised in collaboration with IBFIM, and with the
support of the Malaysian Takaful Association (MTA) at Putra World Trade Centre (PWTC), Kuala Lumpur
on 19 May 2012. The theme for the event was Integriti dan Amalan Saksama Pemacu Kejayaan. The
event was officiated by YBhg Datuk Nik Mustapha Bin Hj. Nik Hassan, Chief Director, Institut Kefahaman
Islam Malaysia (IKIM).
The objective of the event was to create a platform for the 441 takaful agents who attended the
convention to learn, share and exchange new knowledge, skills and experiences to sustain and further
enhance business success. However the number of participants dropped by 14% or 69 participants as
many of the takaful agents were attending company events during the same time. Nonetheless, those
who attended provided very encouraging evaluation.
YBhg Datuk Nik Mustapha
Bin Hj. Nik Hassan officiating
the event accompanied by
(from left) En Dzul Abdul
Hamid from MTA; YBhg Dato’
Dr Adnan Alias, CEO of IBFIM;
En Zainudin Ishak, Chairman
of MTA and Pn Khadijah
Abdullah.
Renowned speakers at the convention
Annual Report 2012
58
Activity Report
(cont’d)
“Menambah ilmu pengetahuan dan mengeratkan silaturahim dengan ejen takaful yang
lain.”
Habibah Yaakob , Etiqa Takaful Bhd “Forum, sangat menarik!”
Sazulhairi Bin Ahmad, Takaful Ikhlas Sdn Bhd
“Meningkatkan kefahaman saya tentang takaful.”
Karem Husin, Great Eastern Takaful
“Penceramah memberi informasi yang bagus.”
Fairus Binti Ku Abdul Ghani, ING Public Takaful Ehsan Berhad “Memberi penjelasan yang bermanfaat dan berguna di dalam mempromosikan takaful.” Zarina Zainal, Prudential BSN Takaful
“Ilmu yang sungguh baik.”
Shaimee Mahayudin, Prudential Assurance Berhad
“Menambah pengetahuan saya dari segala aspek terutamanya syariah.”
Norhanizah Bt Ismail, Bank Simpanan Nasional
“Keseluruhan ahli-ahli panel sangat bagus dan meyakinkan.”
Roziah Binti Abd Rashid, Takaful Ikhlas Sdn Bhd
“Secara keseluruhan Konvensyen Ejen Takaful 2012 sangat bermanfaat dan saya harap
Konvensyen Ejen Takaful 2013 akan bertambah baik. Tahniah kepada penganjur. Terima
Kasih.”
Rosmaria Mohamad, Takaful Ikhlas Sdn Bhd
2.6.
MALAYSIA MDRT DAY
MII and the MDRT Communication Committee Malaysia (MCC) organised the Malaysia MDRT Day 2012
with the theme Sparking Change on 1 September 2012 at Kuala Lumpur Convention Centre (KLCC),
Kuala Lumpur. A line-up of 18 top MDRT, COT and TOT speakers shared their success stories at the
event.
This one-day convention aimed to inspire insurance agents and financial planners to face challenges
to ensure survival and sustain success in the business. The convention also provided a platform for
insurance agents and financial planners to acquire new knowledge, skills and experiences. 2012 saw
the attendance of 1,691 agents, an increase of 15% or 220 participants from 1,471 participants in 2011.
Annual Report 2012
59
Activity Report
(cont’d)
The opening ceremony of the event
From left: Pn Khadijah Abdullah; Dr Radhakrishna (RK) Shetty,
MDRT Ambassador and Organising Chairman of the 2013 MDRT
Experience, Hydrabad, India; Ms Jenny Yeoh, MDRT Country
Chair – Malaysia; and En Manmohan Abdullah, Zone Chairman,
South East Asia, Million Dollar Roundtable (MDRT)
MDRT Malaysia and MII presented the donation derived from
the sale of MDRT t-shirts and wrist bands for the MDRT Day
2012 to the Society for the Severely Mentally Handicapped
Selangor and Federal Territory
Annual Report 2012
60
Activity Report
(cont’d)
”Very well organised!”
Kevin Kaan, AIA Berhad
“Speakers are well balanced – Gen Y and senior agents. Learnt from both views.”
Yeo Beng Chu, AIA Berhad
“Excellent arrangement. The convention really motivated me.”
Subramaniam Ramasamy, MCIS Zurich Insurance Berhad
“Speakers shared valuable experience. The emcee was very good.”
Lee Bee Yin, Allianz Life
“Good job! Keep it up!”
Sarawanan A/L Perumal, ING Insurance Berhad
“Good venue and facilities for great event!”
Ang Kin, AIA Berhad
“Good sharing from all speakers!”
Ang Siew Yen, Prudential Assurance Berhad
2.7.
KONVENSYEN EJEN INSURANS HAYAT BUMIPUTERA (BUMIPUTERA LIFE INSURANCE AGENTS
CONVENTION)
The Bumiputera Life Insurance Agents Convention is an annual event organised with the support
of LIAM. The convention organised on 22 September 2012 at PWTC, Kuala Lumpur, was graciously
officiated by YBhg Dato’ Muhammad Ibrahim, Deputy Governor, Bank Negara Malaysia.
The objective of the event was to create a platform for Bumiputera agents in the life insurance
industry to learn and share new knowledge, skills and experiences to sustain and further enhance
business success. 40 Top Agency Leaders and Top Personal Producers from 10 life insurance companies
received their awards during the convention. The award was introduced to acknowledge and
recognise the achievements of agents of life insurance companies. It was extremely well received and
highly appreciated not only by the companies but also Bumiputera agency leaders and agents. The
convention with its theme Professionalisme Tunggak Kejayaan, saw the attendance of 650 Bumiputera
agents, a decrease of 30% or 282 participants from 932 participants in 2011.
Annual Report 2012
61
Activity Report
(cont’d)
“Teruskan program-program seperti ini untuk meningkatkan lagi prestasi bagi ejen-ejen
terutamanya ejen bumiputera sebagai pengiktirafan pencapaian.”
Suzana Zainal Abidin, Prudential Assurance Berhad
“Penceramah dan ahli panel yang berpengalaman. Harus menjadi idola kepada ejen
insurans yang baru.”
Norazura Binti Amdan, MCIS Zurich Insurance Berhad
“Sangat baik!”
Mohamad Radzian Saidin, Prudential Assurance Berhad
“Teruskan usaha dengan mengadakan lebih banyak lagi seminar dan juga konvensyen
pada masa akan datang.”
Kharul Izwan, Great Eastern Life Assurance
“Terbaik!”
Syed Mohd Faizal, Great Eastern Life Assurance
“Ya, setiap ejen wajib hadir program ini!”
Azman Tukiran, MCIS Zurich Insurance Berhad
“Satu pendedahan yang terbaik untk ejen baru.” Mohd Ridzwan Bin Mohd Shafie, Great Eastern Life Assurance
YBhg Dato’ Muhammad Ibrahim officiating the event while accompanied by (from left); En Abdul Rasheed Abdul Ghaffour, MII Director,
Mr Vincent Kwo Shih Kang, MII Director and President of LIAM, En Hashim Harun, MII Chairman and Pn Khadijah Abdullah.
Annual Report 2012
62
Activity Report
(cont’d)
From left: En Wira Arjuna, En Abu Bakar Othman, Pn Norizza Muhamad Yusof, En Fareed Shumaily Mohd Shukor, YBhg Dato’ Azlin Ahmad
Sharharbi, YBhg Dato’ Muhammad Ibrahim, Tuan Haji Othman Bin Shaharum, Pn Khadijah Abdullah, En Hashim Harun, Mr Vincent Kwo
Shih Kang and En Abdul Rasheed Abdul Ghaffour
Annual Report 2012
63
Activity Report
(cont’d)
MII AS A KNOWLEDGE CENTRE
1.
OVERVIEW
We have marked solid progress and developed considerable strengths over the years in our mandate as the
knowledge provider of the insurance industry. In 2012, we continued to enhance our operational strengths
and resource capability in our focus to position MII Knowledge Centre (MII KC) as the main reference
centre for the Malaysian insurance industry. Our unique competitive advantages are our rare insurance
reference collection gathered from all over the globe and our “customer-first” focus that we implement in
all our services and offerings without compromising the standard in providing insurance knowledge and
information for the members.
Guided by our 3 pillars, namely Library Service, Research and Knowledge Management, we accomplished
several milestones in 2012. With the support from the Capacity Building Fund, we made considerable
investment in increasing the number and volume of our references and collections, both printed and
electronic. Today, our library collections are valued at about RM1million.
In 2012, we also recorded a total of 6,688 visitors to the MII KC compared to 6,576 visitors in 2012, an increase
of 5% or 112 visitors due to the activities and rigorous promotions conducted throughout the year. We also
received 323 visitors at our new digital library portal.
2.
DEVELOPMENTS IN 2012
2.1.
NEW REFERENCES
In 2012, we purchased about 1,000 new references and other related fields in the form of books,
audiovisuals, magazines, journals, research papers, business reports, electronic references and
databases.
Annual Report 2012
64
Activity Report
(cont’d)
Some of our library collections
2.2.
INSURANCE AND TAKAFUL JOURNAL (INTAJ)
We published the 2nd and 3rd volumes of Insurance and Takaful Journal (INTAJ) in January and July
2012 respectively. INTAJ is an industry collaboration with Universiti Kebangsaan Malaysia (UKM) which
supports our mandate to promote research studies and knowledge creation in the insurance industry.
Published twice a year, INTAJ contains papers from academicians and industry practitioners.
2nd Volume
3rd Volume
2.2.1. INTAJ Journal Articles Writing Workshop (JAWS)
We organised a one-day intensive workshop on INTAJ Journal Articles Writing on 16 July 2012
at Sasana Kijang, Bank Negara Malaysia. It was well attended by university and polytechnic
lecturers, insurance practitioners and students. This workshop was facilitated by Prof. Dr. Abdul
Ghafar Ismail, Prof. Dr. Zaidi Isa and En Azman Ismail. The workshop was designed to provide
exposure and a broad perspective of general research and the skills of journal writing to those
interested in producing research-based articles but do not have the right understanding and
tools to write quality articles. It also gave participants a thorough understanding of editorial
policy. The workshop also aimed to encourage more working professionals and academicians to
write for INTAJ.
Annual Report 2012
65
Activity Report
(cont’d)
Participants attended the workshop
2.3.
NETWORKING GROUP
2.3.1. Knowledge Management Task Force (KMTF)
The Knowledge Management Task Force (KMTF) that consists of MII, Asian Institute of Finance
(AIF), Institut Bank-Bank Malaysia (IBBM), IBFIM and the Global University of Islamic Finance
(INCEIF) successfully signed a Memorandum of Understanding (MoU) on 3 May 2012 at Sasana
Kijang, Bank Negara Malaysia. The focus of the MoU is to open up a channel for integration
and rationalisation of collections, resources, system and technology, distribution channels,
joint-activities and knowledge management among the partner members. MII was given the
mandate to lead the KMTF while Bank Negara Malaysia (BNM) and Securities Commission
Malaysia (SC) were appointed as advisors.
CEOs and COO from the 5 financial human capital development institutes signing the MoU
Annual Report 2012
66
Activity Report
(cont’d)
The guests of honour (third from left): Cik Siti Loreley Bakri from SC and Ms Yap Lai Kuen from BNM. CEOs and
COO from the 5 Malaysian financial human capital development institutions (from left) Dato’ Dr. Adnan Alias, CEO
of IBFIM; Lt Col (R) Ranjit Singh, COO of AIF; (from right) En Daud Vicary Abdullah, CEO and President of INCEIF; Mr
Tay Kay Luan, CEO of IBBM; and Pn Khadijah Abdullah, CEO of MII
2.3.2. MII Knowledge Centre Committee (MKCC)
Among our commitments is to ensure that MII KC’s facilities and offerings are highly relevant
to the needs of the insurance industry. Initiated in October 2011, the MII Knowledge Centre
Committee (MKCC) consists of representatives from MII, PIAM, LIAM, MITBA and AMLA. MKCC
discussed and recommended references for MII to purchase, review books for selection and
assess whether the MII KC’s collection is adequate to meet the knowledge and information
needs of industry members.
2.3.3. Knowledge Management’s Community of Practice (KM CoP)
In strengthening our Knowledge Management (KM) pillars, we are actively involved in KM
CoP which comprises members from organisations from other sectors such as Bank Negara
Malaysia (BNM), Jabatan Kerja Raya (JKR), Malaysia Productivity Corporation (MPC), Standards
and Industrial Research Institute Malaysia (SIRIM) and the Administrative Modernisation and
Management Planning Unit (MAMPU).
The local and global experiences of other institutions provide us with a broader view of the
direction of and need for KM in the insurance industry which is still at the premature and
awareness stages. The lessons learned from other organisations will help MII to create
and provide better solutions for industry members in terms of KM framework, strategy,
implementation and assessment.
Annual Report 2012
67
Activity Report
(cont’d)
2.3.4. Special Library Committee (SLC)
It was a great honour for us to have been appointed a committee member of SLC. The SLC,
formed by Persatuan Pustakawan Malaysia (PPM), provides special librarians in Malaysia a
platform to discuss and promote their professional work in library services. SLC members
include MII KC, BERNAMA infolib, PETRONAS Knowledge Centre, BNM KMC, Institute of
Diplomacy and Foreign Relations Malaysia Library (IDFR), Malaysia Productivity Corporation
Library (MPC) and Pusat Dokumentasi Melayu Dewan Bahasa dan Pustaka (DBP).
SLC members
2.4.
KNOWLEDGE MANAGEMENT DAY
Knowledge Management Day is organised every quarterly with the objective to strengthen MII KC’s
third pillar, which is Knowledge Management. The activities conducted include talks by renowned
KM personalities, motivational video presentations, quizzes, games and lucky draws. The Knowledge
Management Day was organised in July and November 2012. In addition to this, we conducted 3 video
show days on various topics.
i.
Knowledge Management Day and Book Author Talk on 11 July 2012
The Book Author Talk was presented by Mr Dechen Lau, author of the international bestselling
business book The Relationship Age. This session was held in collaboration with MPH Bookstore.
Mr Dechen Lau sharing his book contents with the participants
Annual Report 2012
68
Activity Report
(cont’d)
En Hairul Hilmi Ramlee, Head of MII KC (second from left) and Mr Dechen Lau in a group photo with MPH staff
MII KC team and participants of the programme in a group photo
ii.
Knowledge Management Day and KM Talk on 21 November 2012
We organised a KM Talk session entitled Knowledge Sharing through Story Telling conducted
by Dr Rumesh Kumar, Managing Director of Sharma Management International. Participants
from various public and private institutions such as SIRIM, UMK, Biotech Corp, and insurance
companies such as MSIG Insurance (Malaysia) Berhad, ACE Jerneh Insurance Berhad and ING
Insurance Berhad attended this event. Based on the feedback received from the programme, the
majority of the participants were eager to adopt this new concept within their organisation.
Annual Report 2012
69
Activity Report
(cont’d)
Dr Rumesh Kumar sharing his thoughts with the participants
MII KC team and some of the participants in a group photo
2.5.
KNOWLEDGE PACK
In 2012, we produced the 4th volume of Knowledge Pack in
digital format which can be downloaded from our website at
www.insurance.com.my. The knowledge pack provides relevant
industry statistical reports and key insurance data extracted and
edited from reliable sources.
Annual Report 2012
70
Activity Report
(cont’d)
2.6.
KNOWLEDGE CENTRE NEW LIBRARY SYSTEM
We launched the new library system that consists of MII Visualizer, MII Library Catalogue and MII Digital
Library. This will assist our members to locate resources from multiple locations speedily. Links to these
systems are provided in the MII e-Library portal (www.miielibrary.com):

MII Visualizer: a search engine designed to search within the MII Knowledge Centre’s collection
of physical books and digital documents. Users can filter their search using resource types,
subjects, keywords and dates to achieve optimum results.

MII Library Catalogue: an online library catalogue containing information on physical books
residing in the MII Knowledge Centre.

MII Digital Library: a digital repository containing digital collections owned, purchased or
subscribed by MII such as AMII/DMII past examination papers, e-books, newspaper clippings,
online databases, etc.

Among the online databases and e-books available for access in MII Digital Library:

Bernama Library and Infolink Service (BLIS)

Library Press Display

Institute of Southeast Asian Studies e-books
INSURANCE Magazine and INTAJ are also published electronically and are available online in Bernama
Library & Infolink Service (BLIS) and Library Press Display.
Only active MII members are entitled to get free access to these databases by requesting their login ID
for MII Digital Library at knowledgecentre@mii.org.my.
MII Digital Library
Annual Report 2012
71
Activity Report
(cont’d)
MII Visualizer
MII Library Catalogue
Annual Report 2012
72
Activity Report
(cont’d)
MII AS THE SECRETARIAT OF AITRI
1.
OVERVIEW
The ASEAN Insurance Training & Research Institute (AITRI), a non-profit organisation established by the
insurance regulators of the 10 ASEAN member countries, was officially incorporated on 1 December 2004 in
Malaysia. We were given the honour to lead and drive the mandate as the Secretariat of AITRI. AITRI continues
to fulfil its mandate to serve and facilitate human capital development needs through education, training and
research for ASEAN regulators and insurers.
2.
PROGRAMMES FOR REGULATORS
In 2012, AITRI successfully conducted 4 human capital development programmes for insurance regulators in
Thailand, Brunei, Indonesia and Vietnam respectively. These training programmes were delivered by 14 field
experts from regulatory bodies and private institutions all around the world.
AITRI managed to obtain funding and sponsorship from Bank Negara Malaysia, Office of Insurance
Commission Thailand, Authoriti Monetari Brunei Darussalam, Centre of Insurance Research and Training,
Ministry of Finance of Vietnam, Indonesia Capital Market and Financial Institution Supervisory Agency,
Toronto Leadership Centre, International Association of Insurance Supervisors and AITRI Members
Contribution Fund for the regulators’ programmes.
In 2012, 88 participants from ASEAN countries and 21 participants from non-ASEAN countries, namely
Azerbaijan, Bahrain, Kazakhstan, Maldives, Mauritius, Nepal, Nigeria, Papua New Guinea, Saudi Arabia and
Swaziland attended the programmes.
Workshop on On-Site & Off-site Examinations for Insurance Supervisors
2 - 5 April 2012 Bangkok, Thailand
Annual Report 2012
73
Activity Report
(cont’d)
Workshop on Self-Assessment on IAIS Insurance Core Principles
4 – 6 June 2012 Gadong, Brunei Darussalam
Regional Seminar on Risk Management and Financial Stability
18 – 20 September 2012 Da Nang, Vietnam
Seminar on Market Conduct Supervision
22 – 23 October 2012 Jakarta, Indonesia
Annual Report 2012
74
Activity Report
(cont’d)
AITRI Programmes for Regulators Conducted in 2012:
Title
Date
Host/Venue
Funded/Supported by
Workshop on On-Site and
Off-Site Examination for
Insurance Supervisors
2 - 5 April 2012
Bangkok, Thailand



Workshop on SelfAssessment on Insurance
Core Principles
4 - 6 June 2012
Gadong, Brunei



Regional Seminar on Risk
Management and Financial
Stability
18 - 20 September
2012
Da Nang, Vietnam







Workshop on Market
Conduct Supervision For
22 – 23 October
Jakarta, Indonesia





Office of Insurance
Commission, Thailand
Toronto Leadership Centre
International Association of
Autoriti Monetari Brunei
Darussalam
Examination Resources,
Atlanta
AITRI Members Contribution
Fund
Centre of Insurance Research
and Training, Ministry of
Finance, Vietnam
Financial Stability Institute,
Bank for International
Settlements
Financial Services Agency,
Japan
Australian Prudential
Regulation Authority,
Australia
Bermuda Monetary Authority,
Bermuda
International Association of
Fund
Indonesia Capital Market
and Financial Institution
Supervisory Agency, Ministry
of Finance of Indonesia
Bank Negara Malaysia
Financial Services Agency,
Japan
Insurance Regulatory &
Development Authority, India
Fund
75
Annual Report 2012
Activity Report
(cont’d)
Participants from ASEAN Member Countries in 2012 AITRI Programmes for Regulators:
On-Site
and Off Site
Examination
SelfAssessment on
Insurance Core
Principles
Risk
Management
and Financial
Stability
Market Conduct
Supervision
Brunei
–
4
2
2
8
Cambodia
2
2
2
2
8
Indonesia
2
2
–
7
11
Laos
2
–
1
1
4
Malaysia
2
4
1
5
12
Myanmar
–
–
–
–
–
Philippines
2
2
–
–
4
Singapore
2
2
3
–
7
Thailand
19
4
2
2
27
Vietnam
–
–
7
–
7
31
20
18
19
88
Country
Total
Total
Participants from Non-ASEAN Member Countries in 2012 AITRI Programmes for Regulators:
On-Site
and Off Site
Examination
SelfAssessment on
Insurance Core
Principles
Risk
Management
and Financial
Stability
Market Conduct
Supervision
Azerbaijan
2
–
–
–
2
Bahrain
1
–
–
–
1
Kazakhstan
1
–
–
–
1
Maldives
–
1
–
–
1
Mauritius
–
–
–
1
1
Nepal
1
–
–
–
1
Nigeria
6
–
1
–
7
Papua New
Guinea
–
1
3
–
4
Saudi Arabia
–
1
1
–
2
Swaziland
1
–
–
–
1
12
3
5
1
21
Country
Total
Total
Annual Report 2012
76
Activity Report
(cont’d)
3.
INDUSTRY EVENT
3.1.
YOUNG ASEAN MANAGER AWARD 2012
The Young ASEAN Manager Award (YAMA) is a project initiated by the ASEAN Insurance Council
(AIC) and organised by AITRI. This prestigious award is inspired under the spirit of ASEAN to honour
outstanding young managers for their achievement, contribution and dedication to the insurance
industry and to recognise their potential, talent and leadership qualities.
The Young ASEAN Manager Award 2012 event was held in Thailand in conjunction with the annual
ASEAN Insurance Regulators Meeting (AIRM) and ASEAN Council Meeting. 11 candidates from 5
ASEAN countries competed for this prestigious award in 2012 and only 3 were shortlisted for the final
selection interview with the judges.
3.1.1. YAMA 2012 Judges
The panel of judges for the award comprised 12 industry leaders from Brunei, Cambodia,
Indonesia, Malaysia, Philippines, Singapore and Thailand. The judges had a challenging time
to name the recipient of the award due to the high quality of the finalists. The process involved
online assessment based on essay write-up and interview with the finalists.
3.1.2. YAMA 2012 Recipient
The recipient of the award for 2012 was Mr Pichet Jiaramaneetaveesin, Head of Corporate
Actuarial, American International Assurance Company Limited, Thailand. He was chosen based
on his commendable leadership qualities, series of achievements and significant contributions
to the growth and development of the insurance industry.
The award was presented by Mr Areepong Bhoocha-oom, Permanent Secretary, Ministry
of Finance, Office of Insurance Commission, Thailand, accompanied by Mr Chhay Rattanak,
Chairman of AIC, and Ms Evelina Fadil Pietreuschka, Secretary General of AIC, at the Welcoming
Dinner held at Shangri-La Hotel, Bangkok, Thailand. The 2 other finalists were Mr. Yap Chee
Keong, Great Eastern Life Assurance (Malaysia) Berhad and Mr. Yong Wai Sing, Chartis Singapore
Insurance Pte Ltd. Both received tokens of recognition.
Mr Pichet Jiaramaneetaveesin accepting the award from the Permanent
Secretary, Ministry of Finance, Thailand, accompanied by Mr Chhay
Rattanak, Chairman of AIC ,and Ms Evelina Fadil Pietrushchka, Secretary
Standing proud: Finalists of YAMA 2012
From left: Mr Yap Chee Keong (Malaysia),
Mr Pichet Jiaramaneetaveesin (Thailand)
and Mr Yong Wai Sing (Singapore)
Annual Report 2012
77
Activity Report
(cont’d)
BUSINESS DEVELOPMENT
1.
STRATEGIC PARTNERSHIP
1.1.
OVERVIEW
As the preferred insurance training and education institution in Malaysia and other emerging
markets, our reputation and capability are highly recognised by insurance and non - insurance related
organisations all around the world. In achieving our vision, we have been actively penetrating new
markets by offering our products and services. At the same time, we also leveraged on strong brand
names of external institutions through collaborations on joint-programmes and products for the
insurance industry in Malaysia and other countries.
These collaborations open doors for market expansions in the international and local insurance and
non-insurance industry. Concurrently, we can leverage on the opportunity to market our programmes
in other foreign emerging markets. These efforts are in line with MII’s vision and mission in delivering
effective human capital development programmes and supporting the national agenda in promoting
Malaysia as the centre for insurance professional development and education. These efforts are also
part of our revenue strategy in strengthening our financial position.
Some of MII’s strategic partnerships in 2012 were:
1.1.1. Insurance Business Development Center (IBDC)
We worked with Insurance Business Development Center (IBDC) which is based in Tehran, Iran
to bring our programmes in Tehran. This collaboration opened up mutual benefits and strategic
advantages for both institutes to provide MII’s in-house training programmes for the Iranian
insurance fraternity. A total of 9 training courses were successfully conducted in Tehran from 21
June 2012 to 13 September 2012 attended by more than 200 participants have proven to better
drive the participants and develop their capabilities to face and adapt to the rapid changes in
the market.
MII staff and trainer together with Mr S.A.H. Shojaee,
Mapna Combined Cycle Power Plants Construction &
Development Co. (second from left) and Mr Hashem
Aghazadeh, CEO of IBDC.
MII receiving a token of appreciation from
Mr Hashem Aghazadeh, CEO of IBDC
Annual Report 2012
78
Activity Report
(cont’d)
1.1.2. Afghanistan Insurance Authority (AIA)
We were also approached by the Afghanistan Insurance Authority (AIA), the insurance regulator
for Afghanistan insurance industry based in Kabul, Afghanistan. AIA brought a delegation of
21 AIA staff to MII to attend 16 sessions of MII short training courses from 10 to 31 December
2012. This training opportunity provided a thorough insight to the participants on the Malaysian
insurance industry’s structure, industry knowledge, procedures, professional development and
regulatory practice of our insurance services which can be applied to Afghanistan’s insurance
market.
En Zekri Ghazali, Head of
Department, Strategy &
Quality Assurance, MII, Pn
Khadijah Abdullah, Mr Fazal
Bari Mumtaz, President of
AIA, Mr Kanishka Nasiry,
Cultural and Student
Affairs and Mr Noor Ahmad
Salangi, Administration &
Finance Attache, both from
the Embassy of the Islamic
Republic of Afghanistan
in Kuala Lumpur and Mr
Mahmoud Asad Samani.
2.
CORPORATE BRANDING
2.1.
OVERVIEW
We have optimised our resources to promote MII and collaborate with partners in selected potential
markets around the globe to carry and market the MII brand. To support this objective, we conducted
several activities such as participating in local and international insurance-related events; meeting
with other international insurance bodies; developing MII branding collaterals (INSURANCE Magazine,
corporate gifts and corporate brochures); and gaining exposure through local and international
publications.
2.2.
PARTICIPATION IN LOCAL AND INTERNATIONAL INSURANCE-RELATED EVENTS
In 2012, we participated in 1 international insurance-related event and 4 local insurance events by
opening up exhibition booths to promote MII products and services to potential customers.
List of Events Participated in 2012:
No.
Event
Date
1
Program Usahasama Perkongsian
Maklumat (CIS) Siri 1: Kewangan
23 May 2012
2
34th NAMLIFA Mega Convention
2012
27 – 29 August 2012
Venue
UiTM Shah Alam, Selangor
Genting Highlands Convention
Centre, Pahang
Annual Report 2012
79
Activity Report
(cont’d)
2.3.
No.
Events
Dates
3
MFPC & FPAM Inaugural Joint
Seminar and Hari Raya Luncheon
2012
4
IBBM FSI Careers 2012
20 October 2012
Kuala Lumpur Convention
Centre, Kuala Lumpur
5
26th East Asian Insurance Congress
(International)
29 October –
2 November 2012
Kuala Lumpur Convention
Centre, Kuala Lumpur
6 September 2012
Venues
Bukit Kiara Equestrian Country
Resort, Kuala Lumpur
MEETINGS WITH INTERNATIONAL INSURANCE BODIES
2012 also saw us meeting with a number of international insurance bodies to discuss potential
business opportunities, new programme development and prospective market expansions. Besides
introducing MII to the international market, these meetings also strengthened and developed more
business relationships with overseas organisations. These efforts have also helped us to gain access to
a bigger pool of resources that can add value to MII activities to further contribute to the development
of the insurance industry.
Some of the meetings conducted in 2012:
Meeting with the American Institute for Chartered
Property Casualty Underwriters (The Institutes), USA at
MII HQ
2.4.
Meeting with PetroVietnam, Vietnam at MII HQ
MEETINGS WITH UNIVERSITIES
2.4.1. Study Visits From Universities / Colleges
We are also actively involved in insurance awareness programmes with local universities
and colleges as part of our effort to promote career opportunities in insurance to the young
generation. In 2012, we organised 3 study visits from university and college students to MII
during which we conducted a half-day knowledge sharing session on introduction to insurance
and career opportunities in insurance, among others. We also invited several of our trainers and
industry members to share their knowledge and experience of the industry with the students.
Annual Report 2012
80
Activity Report
(cont’d)
List of Study Visits in 2012:
No.
University/College
Date
Venue
1
Universiti Teknologi Mara (UiTM), Dungun
Branch, Terengganu
6 January 2012
MII HQ
2
Politeknik Sultan Salahuddin Abdul Aziz Shah,
Shah Alam, Selangor
14 February 2012
MII City Centre
3
Universiti Sultan Zainal Abidin (UniSZA),
Terengganu
15 March 2012
MII HQ
4
Politeknik Sultan Salahuddin Abdul Aziz Shah,
Shah Alam, Selangor
15 March 2012
MII HQ
Study visits conducted at MII HQ
Study visits conducted at MII City Centre
Annual Report 2012
81
Activity Report
(cont’d)
2.4.2. MII Dialogue Session with Universities
On 5 June 2012, we had a dialogue session with 10 representatives from 5 universities, namely
Universiti Kebangsaan Malaysia (UKM), Universiti Teknologi Mara (UiTM), Universiti Tun Abdul
Razak (UNIRAZAK), Universiti Sultan Zainal Abidin (UniSZA) and Politeknik Sultan Salahuddin
Abdul Aziz Shah. At the meeting, it was agreed that MII and the universities should work closely
together to ensure that the graduates of the universities meet with the industry’s expectation.
The parties also agreed in principle that sharing of resources and materials are important to
ensure that the syllabuses are current and up-to-date. Another issue discussed was regarding
future strategies to promote insurance as a preferred career and field of study. This inaugural
dialogue with universities was a success and more meetings, especially focusing on specific
areas would be conducted in the future.
Participants of the meeting
Annual Report 2012
82
Activity Report
(cont’d)
2.5.
DEVELOPMENT OF INSURANCE MAGAZINE
2012 was the fourth year of the publication of our INSURANCE Magazine as part of our mandate to
promote insurance-related knowledge and information.
During the year, we published another 6 issues of INSURANCE, from issue 11 to issue 16, which
discussed various topics, issues and updates related to insurance and takaful. The magazine is sold at
RM12 per copy but a special 25% discount is given for subscription at RM10 per copy. Subscription is
open for a period of 1 to 2 years.
Starting January 2013, we will enchance the concept of the magazine for more improved updates and
knowledge in insurance and takaful. The magazine also comes with new and improved content with
various informative articles and columns being introduced to the readers.
Issue 11
Issue 12
Issue 13
Issue 14
Issue 15
Issue 16
Annual Report 2012
83
Activity Report
(cont’d)
3.
CAPACITY BUILDING INITIATIVES
Below is the significant development status of MII Capacity Building Projects:
Status of Approved MII Projects as at December 2012:
No.
Project
Project Status
A
Curriculum and Programme Enhancement
1
Competency Framework Development
2
External Advisory Council (EAC)
3
Development of Study Texts for the DMII and the AMII Programmes
4
Development of Professional Qualifications Programmes
In progress
5
Development of Technical Training Programmes
In progress
6
Subsidised Courses
In progress
7
CII Accreditation
8
MII Education Framework
In progress
9
Competency Framework for Insurance and Takaful Brokers
In progress
B
Web-Based Learning System
10
Integrated Learning Management System (ILMS)
On hold
11
Online Learning Content
On hold
12
E- Learning@ MII
C
IT Infrastructure
13
IT Infrastructure – Data Centre Project
Completed
14
IT Infrastructure – Accounting System
Completed
D
Knowledge and Resource Upscaling
15
Research and Resource Centre - Purchase of Books, Magazines, Periodicals,
Journals
In progress
16
Research and Resource Centre -Library Management System
In progress
17
Research and Resource Centre -Purchase of Audio Visual Materials
In progress
18
Research and Resource Centre -Purchase of Electronic Database
In progress
19
Research and Resource Centre -Purchase of Library Equipment
In progress
20
Research and Resource Centre -Library Management System IT Backup
Solution/Internet Line
Plan in 2013
E
Research and Publication
21
Research and Publication Centre - Insurance and Takaful Journal (INTAJ)
F
Faculty Enhancement and Expansion
22
Internal Faculty and Support Facilities
G
Customer Service and Branding
23
Corporate Branding and Value Added Partnership
In progress
24
MII City Centre
Completed
Completed
Deferred/Closed
On hold
Deferred/Closed
In progress
In progress
In progress
Annual Report 2012
84
Activity Report
(cont’d)
Below are some of the notable highlights of the projects in 2012:
3.1.
CURRICULUM AND PROGRAMME ENHANCEMENT
3.1.1. MII Qualification and Education Framework
MII proposed a new project, the MII Education Framework, which will supersede 2 earlier
approved projects, namely External Advisory Council and CII Accreditation. The main reason for
this restructuring is to ensure full compliance with the various laws, namely the PHEI Act 1996,
the MQA Act 2007, the Insurance Act 1996, the Insurance Regulations 1996 and MII Constituent
Documents for MII to maintain its status as the nation’s professional body for insurance and
education provider for insurance qualifications recognised by the Government of Malaysia.
This project is expected to position MII as the world’s premier insurance professional body and
education centre, consistent with the spirit encapsulated in BNM’s Financial Sector Blueprint
2011-2020. As an overarching outcome, this project will embed very strong corporate,
professional and education governance structures that are designed on the premise of
‘Separation of Power’ to ensure objectivity between MII’s different roles, particularly from the
perspective of the law and its stakeholders.
Along with the governance restructuring, this project will also produce a new organisational
structure fitting the various MII roles with separation of duties and adequate checks and
balances.
Another major outcome of this project is the MII new Qualification Framework which will
provide a comprehensive reference for use and reference by MII, the industry and insurance
professionals for professional programmes, qualifications and continuous professional
development activities.
The main objectives of this transformation are as follows:
1)
To strengthen MII Governance Structures to position MII as the world’s premier insurance
professional body and education provider, and to support the Malaysian Financial Sector
Blueprint 2011-2020.
2)
To ensure full compliance with the PHEI Act 1996 (Act 555), amended in 2009, and the
Malaysian Qualifications Agency Act 2007.
3)
To ensure compliance with the MII Memorandum and Articles of Association and MII
Constitution.
4)
To develop key policies, processes and procedures to support the new governance
structures.
5)
To develop a new MII Qualifications Framework for use and reference by MII, the industry
and insurance professionals for professional programmes, qualifications and continuous
professional development activities.
Annual Report 2012
85
Activity Report
(cont’d)
MII successfully organised a three-day exclusive series of briefings on its Transformation
Blueprint for industry leaders, human resource managers, insurance professionals and
representatives from insurance industry statutory associations, namely PIAM, LIAM, MITBA and
AMLA. The briefings were held on 14, 15 and 16 August 2012 at Hotel Istana, Kuala Lumpur. The
briefing was aimed to:
1)
share with MII members and industry leaders on the new MII Transformation Blueprint.
2)
illustrate the strengthening of MII governance as the nation’s leading insurance
professional body and education institution, complying with the relevant laws and
supporting the BNM’s Financial Sector Blueprint.
3)
illustrate the fortifying of the MII Qualification Framework for an unassailable leadership
position in professional standards and education.
4)
seek industry feedback and endorsement.
Group photo with MII
members on the first day of
the briefings
Group photo with the industry leaders on the second and third days
90 participants including MII members, CEOs, HR personnel and insurance professionals
attended the briefings. The intense efforts expended since July 2012 include the extensive
engagement with key stakeholders and bench-markings with the world’s best have produced
breakthrough outcomes in the form of new governance structures and qualifications framework
which have received extremely encouraging support from the industry. This project was then
presented and approved at the AIF Board meeting chaired by YBhg Tan Sri Dato’ Sri Dr. Zeti
Akhtar Aziz on 28 September 2012.
Moving forward, we are expecting significant changes across a broad spectrum of areas, mostly
in the governance of the dual mandates of MII, i.e. education and serving as a professional body
for the insurance industry.
Annual Report 2012
86
Activity Report
(cont’d)
3.1.2. Competency Framework for Insurance and Takaful Brokers
In response to BNM’s 2011 Financial Masterplan for the insurance sector, MITBA has developed
a 5-year plan focusing on a 3-pronged strategy i.e. re-branding, capability building and setting
standards for the insurance and takaful brokers industry.
A Term of Reference (TOR) was created in view of inviting a third party consulting partner to
assist especially in the areas of building capability focusing on setting a basis for the Education
and Training Framework. The plan is to help build the capabilities of brokers in terms of
competency level, thus enhancing the competitiveness in anticipation of the opening up of the
financial markets.
Subsequent discussions to date with regard to MITBA’s needs have pointed towards the
development of a Continuing Professional Development (CPD) framework as a starting point
in ensuring the sustainability of the above effort. In summary, the project will focus on 2 broad
areas:

Identifying and developing the required competencies, covering core and functional /
technical areas in the broking industry; and

Providing over-the-shoulder advisory assistance to MITBA’s team that is currently working
on developing the draft CPD programme.
The primary objectives are to:
 
Elevate the image and reputation of the broking fraternity by focusing on putting
in place structures, systems and processes which ultimately enhance the level of
competency and professionalism amongst the members.
 
Place emphasis on developing the skills, knowledge and behaviours (or competencies)
required of a broker in ensuring professionalism and a creation of a continuous
development framework to ensure sustainable growth of the industry via professional
providers
In line with the development of the Competency Framework for Malaysian Insurance and
Takaful Industry (CFMITI) at large by MII, MITBA will use this framework as a reference point, thus
ensuring consistency in international standards to assist them in raising the bar for their own
members. The project development will take 6 months beginning October 2012 to completion.
It is envisaged that the new Competency and CPD Framework for MITBA will be rolled out and
implemented in July 2013.
3.1.3. Development of Technical Training Programmes
Some of the technical training programmes reviewed in 2012 to ensure their relevance are:
1)
Induction Programme for Agents
2)
Technical Course In Legal Aspects of Life Insurance
3)
Course Notes and Slides for Ethics
4)
Course Notes and Slides for Anti Money Laundering and Counter Financing of Terrorism
Annual Report 2012
87
Activity Report
(cont’d)
3.1.4. Subsidised Courses
Summary of Fund Utilisation for Subsidised Courses in 2012:
Actual
Fee
(RM)
Fee after
50%
Subsidy
(RM)
PIAM
(RM)
LIAM
(RM)
MITBA
(RM)
Regional Officers
School (ROS)
5,000
2,500
–
35,000
–
Leading a High
Performance Team
5,000
2,500
Certification in Risk
Management (CIRM)
8,500
4,250
Course
17,500
7,500
5,000
(7 participants) (3 participants) (2 participants)
TOTAL
3.2.
Total
Total
amount
No. of
utilised
participants (RM)
14
35,000
12
30,000
42,250
–
–
10
42,250
59,750
42,500
5,000
36
107,250
KNOWLEDGE AND RESOURCE UPSCALING
3.2.1. Library Management System
The Library Management System (LMS) is a secured platform. It is an integrated application
system that manages reference materials (books, serials and research papers), members and
backroom processing (acquisitions, cataloguing, circulation, inventory control, etc) effectively
and efficiently.
This project is expected to enhance the current MII e-Library portal which acts as the content
management system to manage online repository documents. This feature is pivotal in
developing MII digital library capability.
The components of the LMS are:
1)
Virtual Library Management System
This supports backroom operations which include cataloguing, authority control,
circulation, indexing, inventory control, reports, acquisition and serials control.
2)
Vectors OPAC with iPortal
This supports the search and item locator function. It also provides services that patrons
can execute online such as renewal, reservation, inquiry, etc.
3)
Vital Repository System
This is a digital library software. The system will store collections and it can be assessed
online by patrons. Collections include past years’ examination papers, conference
proceedings, articles, research papers, e-journals, e-thesis and dissertations, photographs,
sound clips, video clips, etc. It can be linked to VALET, a function which allows patrons to
submit their content online. This system supports our other services such as knowledge
repository and knowledge sharing under knowledge management. It is also linked to
MII Visualizer, where contents from this database are extracted for patrons based on
keywords.
Annual Report 2012
88
Activity Report
(cont’d)
The project began in April 2011 and was successfully installed in August 2012. Presently, the
facility is already made available to all our members.
1)
MII Library Catalogue
This facility offers our members easy view of the wide array of the physical books,
journals, magazines and newspapers that are available in MII KC.
2)
MII Visualizer
This facility is a search engine designed to search within MII KC’s collection of physical
books and digital documents.
3)
MII Digital Library
For registered MII members and MII KC Gold members, this facility offers easy download
of AMII/DMII past years’ examination papers and online reading of various other
publications in MII KC.
Below is the statistic of new library portal usage (MII Digital Library) from September 2012 until
December 2012. The number of visitor is increasing from September 2012 to December 2012
since the MII Library Portal Go Live.
MII Digital Library Usage Statistics in 2012:
Month ( 2012)
3.3.
Visitor
Hits
September
71
960
October
80
687
November
54
1,029
December
118
1,957
Total
323
4,633
CUSTOMER SERVICE AND BRANDING
3.3.1. MII Industry Dialogue 2012
The MII Industry Dialogue 2012 was successfully organised at the Royale Chulan Hotel, Kuala
Lumpur on 21 February 2012. The dialogue was conducted to share with the industry on
MII’s development and performance in 2011 and to present MII’s plans for 2012. This platform
will also be used to update the industry on the Capacity Building projects and future project
activities. This dialogue was planned to facilitate better understanding of MII’s commitment
to the development of human capital in the financial sector and to develop effective
communication with the industry.
A total of 70 key representatives from member companies of PIAM, LIAM and MITBA attended
the dialogue session. The one-day session was divided into 2 sessions, with the first session
organised for the CEOs of insurance companies and the second session for the Human Resource
and Training personnel.
This activity will be organised yearly to further enhance our development for the benefit of the
insurance industry and to strengthen relationship within the insurance community.
Annual Report 2012
89
Activity Report
(cont’d)
Pn Khadijah delivering the presentation on MII developments and highlights to the participants.
4.
RECOGNITION
We have been very privileged to receive various recognitions from other reputable local and international
insurance-related institutions. This is a strong indication that our roles and responsibilities are highly regarded
by the worldwide insurance fraternity. We would like to extend our outmost appreciation to the MII’s board of
directors, stakeholders, the industry and customers for their continuous support.
4.1.
PUAN KHADIJAH AWARDED AS ASIA’S LEADING WOMAN IN FINANCE AND INVESTMENT
The CEO of MII Pn Khadijah Abdullah, received the Asia’s Leading Woman in Finance and Investment
award at the 2nd Women in Leadership Awards 2012 on 17 February 2012. This is an appreciation for
her commitment and leadership to the development of insurance education and training in Malaysia,
as well as her dedication in elevating the professionalism of the insurance industry in Malaysia and
other emerging markets.
Pn Khadijah received the award from the Prime Minister’s wife, Yang Amat Berbahagia Datin Paduka
Seri Rosmah Mansor, at the Gala Dinner held in conjunction with the 2nd Women in Leadership Forum
Asia 2012 on 16-17 February 2012 in Kuala Lumpur.
Pn Khadijah (farthest right) in a group photo with the event patron, Yang Amat Berbahagia Datin Paduka Seri Rosmah
Mansor, the organiser, the judging committee and the other winners after the award ceremony
Annual Report 2012
90
Activity Report
(cont’d)
Pn Khadijah (centre) receiving the award
4.2.
MII ACKNOWLEDGED AS THE EDUCATIONAL SERVICE PROVIDER OF THE YEAR
We were very honoured to receive the Educational Service Provider of the Year award in appreciation of
MII’s great efforts in transforming into an important provider of human capital development solutions
to the industry in Asia and for expanding our role to help create greater public awareness of insurance.
Pn Khadijah received the award on behalf of MII, which was presented at the 16th Asia Insurance
Industry Awards 2012 Dinner on 28 October 2012 in Kuala Lumpur. The award winners were
evaluated by a panel of experts and industry leaders comprising 29 representatives from insurance
and reinsurance companies and associations within and outside Asia. The awards received about 800
entries from companies and organisations all across Asia and 14 winners were acknowledged for their
outstanding performance.
MII’s current and past board of directors attended the event to show their support to MII. From left: Y Bhg Dato’ Adrian
Loh Heong Chow, En Mohamad Abdullah, En Hashim Harun, Pn Khadijah Abdullah, Mr Alex Foong Soo Hah, Mr Leong
Yee Fook, Mr Jahanath Muthusamy and Mr Ng Lian Lu.
Annual Report 2012
91
Activity Report
(cont’d)
Pn Khadijah in group photo with other 13 winners
Pn Khadijah receiving the award on
behalf of MII
Annual Report 2012
92
Activity Report
(cont’d)
STAFF TRAINING AND DEVELOPMENT
1.
OVERVIEW
We recognise our employees as our most important resource and are committed to consistently upgrading
their competencies and skills through training and development such as on-the-job-training and coaching,
external courses, internal sharing sessions conducted by management staff, job rotation and further
education through sponsorships and study loans.
As an ongoing effort in developing our human capital, the learning needs of the staff are carefully planned.
The objective is to determine the appropriate training programmes for the staff to further strengthen and
further expand their knowledge and skills. These efforts will be a catalyst in pursuing the mandates entrusted
to us as a professional body and an education centre.
In 2012, 127 staff participated in 38 short courses and seminars in their respective areas ranging from related
IT and Insurance Programmes, Accounting, Knowledge Management, Auditing, Business Writing, Project
Management, Risk Management, Human Resource Management, and Strategic Sales Transformation to Safety
and Health. These programmes were conducted both internally and externally by local and overseas training
providers and institutions.
2.
IN-HOUSE TRAINING
In 2012, an in-house training was organised specifically for the MII sales team. The three –series training was
conducted at MII HQ.
In-house Training for Staff Conducted in 2012:
No.
1
Category
Executive and
Management Staff
Date
Programme
22 – 24 March 2012
Strategic Sales Transformation Series (1) : Core Selling Skills
4, 5 & 8 May 2012
Strategic Sales Transformation Series (2) : Strategic Selling Skills
19, 20, 26 & 27
November 2012
Strategic Sales Transformation Series (2) : Sales Mastery
No. of Employees
Attending
20
Annual Report 2012
93
Activity Report
(cont’d)
Strategic Sales Transformation
3.
EXTERNAL TRAINING (LOCAL)
Throughout the year, 63 staff attended 31 courses conducted locally by external training providers. 8 nonexecutive staff participated in 4 courses, 29 executives participated in 20 courses and the entire management
staff participated in 14 courses covering topics such as Basic Introduction to Insurance, Certificate in
Insurance, Accounting, Auditing, IT, Financial Planning, Business Writing Skills, Library Information System,
Risk Management, Project Management and Human Resource Management.
External Training (Local) for Staff Conducted in 2012:
Month
January
February
NonExecutive
Executive
Manager &
Above
Field Management Seminar
–
1
1
Information Security Workshop
–
2
1
Certificate in MII
5
–
–
Fundamentals of Budgeting and Cash Flow
Forecasting
–
1
–
Effective Stock Take Techniques
1
–
–
Dynamic Writing – How To Make Words Work
For You
–
1
–
Programme
Annual Report 2012
94
Activity Report
(cont’d)
Month
March
April
May
August
September
October
November
December
NonExecutive
Executive
Manager &
Above
Napoleon Hill International Convention –
Journeying Together Towards Success
–
–
3
Personality Traits Assessment
–
–
1
PPM-LAS Joint Conference – Digital
Information Resources
–
2
–
Bank Reconciliation, Petty Cash Management
and Effective Receipts and Payment Control
Mechanisms
1
–
–
Occupational Health & Safety Series
–
1
–
Application of Malaysian Labour Laws at the
Workplace
–
1
–
Administrative Professional Conference
–
1
–
An Update on Employment Issues in Malaysia
–
–
1
National Achievers Congress
–
2
–
A Simulation Approach by Project
Management
–
2
2
Cloud Computing
–
–
1
Basic Introduction To Insurance
1
4
–
Information Management
–
1
1
EPF Act 1991 & Employees’ Social Security Act
1969
–
1
–
Knowledge Management Conference –
Strengthening Organisational Performance
Through Knowledge management
–
1
1
Internal Auditing – Rising Potential
–
–
1
Inaugural Conference – Financial Advisors
–
–
8
Asia Pacific Risk Management Conference
–
–
1
Basic Introduction To Insurance
–
1
–
Effective Human Resource Documentation &
Standard Operating Procedures
–
1
–
Sustaining Business Success
–
–
2
Windows Server 2008
–
1
–
Visit Tour to Libraries in Northern Region –
organized by Library Association of Malaysia
–
2
–
Risk Based Auditing – A Value Add Proposition
–
1
–
Programme Management for Implementing
Strategy
–
2
2
Programme
Annual Report 2012
95
Activity Report
(cont’d)
4.
EXTERNAL TRAINING (OVERSEAS)
6 management staff and 2 executives attended overseas training held in China, Indonesia, Vietnam and
Holland.
5.
Venue
Executive
Manager
& Above
Shanghai, China
–
2
Beijing, China
–
1
Annual Strategies Issues
Conference
Ho Chi Minh City,
Vietnam
2
–
2 – 3 July 2012
Asia Life Insurance Summit
Jakarta, Indonesia
–
1
6 – 7 September
2012
Unit4 Data Center and Cloud
Experience
Amsterdam, Holland
–
2
Date
Programme
18 – 19 April 2012
Asian Claims Convention
22 – 24 May 2012
Bancassurance and Alternative
Distribution Channels
6 – 8 June 2012
INTERNAL SHARING (BY MANAGEMENT TEAM)
As part of our continuous efforts in encouraging life-long learning and knowledge enhancement for the staff
force, 15 managers and senior managers took the initiative to share their knowledge of various topics ranging
from Health and Diet, Practise Self-Safety, Motivation, Products Brief, Importance of Continuous Personal
Development and Organisational Effectiveness to Cultivating Workforce Synergy with the staff force. The
sessions were conducted on 3 Saturdays, in March, June and December. This programme reflects one of our
core values – “Learning”.
6.
INDUSTRY AND EXTERNAL SUPPORT
We continued to receive good support from the Asian Institute of Finance (AIF) that organised a number of
training courses as part of the ongoing initiative in the development of human capital. The supportive climate
benefited many individuals to gain new knowledge continuously and further strengthen their capacities to
drive them forward and contribute optimally.
Several MII staff members attended the following 2 training courses:
Organisation
Date
Topic
Asian Institute of
Finance (AIF)
28 – 29 May 2012
Managing By Project - A Simulation Approach by
Project Management Consultant
17 – 18 December 2012
Programme Management for Implementing Strategy
Annual Report 2012
96
Activity Report
(cont’d)
7.
STAFF SPONSORSHIP PROGRAMME
The staff sponsorship programme aims to develop the capabilities and expand the knowledge pool of our
staff force through the acquisition of insurance qualification. A dedicated budget is set aside every year to
encourage staff to pursue qualifications approved under the sponsorship scheme with 60% of the course fee
fully sponsored by MII and 40% by the staff themselves.
The 3 approved sponsorship programmes are DMII, AMII and RFP. 3 staff participated in the sponsorship
programmes in 2012.
Staff Sponsorship Programmes in 2012:
No.
Approved Programme
Position
No. of Staff
Sponsored
1
Diploma of The Malaysian Insurance Institute (DMII)
Executive
1
2
Associateship of The Malaysian Insurance Institute (AMII)
Executive
2
3
Registered Financial Planner (RFP)
Manager
–
Annual Report 2012
97
Activity Report
(cont’d)
INFORMATION TECHNOLOGY
1.
OVERVIEW
We developed an IT roadmap as a strategy to support our business plans. The roadmap was carefully planned
and the stages of implementation will continue to be put in place. The more critical areas were given
immediate focus and priority. The focus for 2012 was to expand and enhance the technology system so as to
improve efficiency in the operational and procedural processes of our business and non- business activities.
The 5 key initiatives were:
1.1.
IT Disaster Recovery Plan (IT DRP)
An Information Technology Disaster Recovery Plan (IT DRP) is crucial for us to develop in conjunction
with the Business Continuity Plan (BCP). Priorities for Information Technology (IT) should be consistent
with priorities of business functions and processes that are developed.
In 2012, our business users successfully ran the business impact analysis. Therefore we carefully
developed Information Technology Disaster Recovery Strategy by promoting MII Headquarters (MII
HQ) as Disaster Recovery Site for MII Data Centre (MII DC). The following improvement plans of IT
infrastructure at MII HQ were implemented to materialise the IT DRP strategy, as follows:




1.2.
Upgrading Electrical Power System.
Upgrading Uninterruptible Power Unit (UPS) system.
Implementing Backup and Restore solution at MIIHQ.
Upgrading servers.
IT Technical Assessment for New Computer-Based Centres
To meet the current increasing demands for more examinations to be offered in various states in
Malaysia, we successfully evaluated and conducted technical assessment of computer labs in Miri,
Sarawak and Sungai Petani, Kedah. The assesments were conducted to ensure that they meet the
technical requirements standard of the MII Computer-Based Examinations (CBE) before they could be
appointed as our CBE centres.
The computer lab centres evaluated were Cosmopoint Sdn Bhd, Hasani Group, Insaniah College, BCOM
Trading, Kampus Intan Wilayah Utara (INTURA), Community College and Asia TechBiz Computers Sdn
Bhd.
Based on our findings related to several criteria such as internet bandwidth, infrastructure, number of
PCs and technical staff skills and capabilities, we recommended BCOM Trading Computer Centre, Miri,
Sarawak and Asia TechBiz Computers Sdn Bhd, Sungai Petani, Kedah as our appointed CBE branches to
the MII Examination Management unit.
The MII CBE was successfully conducted for the first time in Miri, Sarawak on 4 August 2012, earlier
than planned, and on 8 December 2012 in Sungai Petani, Kedah.
Annual Report 2012
98
Activity Report
(cont’d)
1.3.
Data Migration of Legacy System
In today’s business, risk management plays a critical role in the sustainability and growth of an
organisation. It is also closely links to the function of IT as IT is now being enrolled in almost all core
functions of a business. Therefore, IT had taken a proactive action in mitigating the hardware risks of
legacy systems that was running on the obsolete hardware and software. We successfully completed
the migration of the old examinations data from older Oracle (Oracle 8) to Ms SQL databases.
We also successfully developed the online enquiry screens for the users to view the examinations
records.
1.4.
IT Computer Audit
The Computer Audit exercise forms part of our IT activities. It involves all personal computers (PCs) and
notebooks in MII. With the limitations of IT resources, we generally audit not more than 3 departments
annually.
In 2012, as recommended by the MII Audit Committee, IT made extra effort to complete the computer
audit for all PCs and notebooks in MII including rental PCs in the computer lab at MII City Centre. In
total we audited 30 notebooks and 186 computers.
1.5.
IT Operation Improvements
We also made some improvements on the MII systems and network environment to ensure that the
operation and security are maintained. IT upgraded the Active Directory from AD 2003 to AD 2008. By
upgrading the Active Directory to AD 2008, we are mitigating risk in terms of the obsolete Windows
Server 2003 by replacing it with Windows Server 2008.
We also upgraded some computers that were still running on Windows XP to Windows 7 for security
reasons.
As for IT internal improvements, we developed the IT PC audit system to capture all the computer audit
information. With that system in place, we managed to retrieve the computer audit information by
generating the report at any time instead of referring to the manual files.
Our internal IT developer also helped to develop the IT Asset Tracking system. The systems are able to
capture all IT hardware particulars and the locations of IT. The systems are also able to track the history
records, hence, making our IT infrastructure easily track the movements of the hardware within MII.
Annual Report
2012
FINANCIAL STATEMENTS
100
Directors’ Report
103
105
Statements of Comprehensive Income
106
Statements of Financial Position
108
Statements of Changes in Equity
109
Statements of Cash Flows
111
Notes to the Financial Statements
140
140
Declaration by the officer primarily responsible for the
financial management of the Institute
Annual Report 2012
100
Directors’ Report
DIRECTORS’ REPORT
The directors of THE MALAYSIAN INSURANCE INSTITUTE (“the Institute”) have pleasure in submitting their report
and the audited financial statements of the Group and of the Institute for the year ended December 31, 2012.
PRINCIPAL ACTIVITIES
The Institute is engaged in the provision and promotion of insurance education, training and research in insurance
and related disciplines. The Institute is the sole examining body for professional insurance examinations in the
country leading to the award of the Associateship of the Institute. It is also a society of insurance professionals. The
Institute is affiliated to other insurance examining institutes internationally and works closely with local institutions
of higher learning in promoting the development of insurance education in Malaysia.
The subsidiary company was incorporated on September 3, 1999 and has not commenced operation since the date
of incorporation.
There have been no significant changes in the nature of the activities of the Institute and of its subsidiary company
during the financial year.
RESULTS OF OPERATIONS
The results of operations of the Group and of the Institute for the financial year are as follows:
The Group
RM
The Institute
RM
Surplus before tax
Tax income
1,477,394
548,885
1,473,684
550,435
Surplus for the year
2,026,279
2,024,119
In the opinion of the directors, the results of operations of the Group and of the Institute during the financial year
have not been substantially affected by any item, transaction or event of a material and unusual nature.
RESERVES AND PROVISIONS
There were no material transfers to or from reserves or provisions during the financial year other than those
disclosed in the financial statements.
OTHER STATUTORY INFORMATION
Before the statements of comprehensive income and statements of financial position of the Group and of the
Institute were made out, the directors took reasonable steps:
(a)
to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of
allowance for doubtful debts, and have satisfied themselves that no bad debts need to be written off and that
no allowance for doubtful debts is required; and
Annual Report 2012
101
Directors’ Report
(cont’d)
(b)
to ensure that any current assets which were unlikely to realise their book values in the ordinary course of the
business had been written down to their estimated realisable values.
At the date of this report, the directors are not aware of any circumstances:
(a)
which would require the writing off of bad debts or the setting up of an allowance for doubtful debts in the
financial statements of the Group and of the Institute; or
(b)
which would render the values attributed to current assets in the financial statements of the Group and of
the Institute misleading; or
(c)
which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Institute misleading or inappropriate; or
(d)
not otherwise dealt with in this report or financial statements which would render any amount stated in the
financial statements of the Group and of the Institute misleading.
At the date of this report, there does not exist:
(a)
any charge on the assets of the Group and of the Institute which has arisen since the end of the financial year
which secures the liabilities of any other person; and
(b)
any contingent liability of the Group and of the Institute which has arisen since the end of the financial year.
No contingent or other liability has become enforceable, or is likely to become enforceable within the period of
twelve months after the end of the financial year which, in the opinion of the directors, will or may substantially
affect the ability of the Group and of the Institute to meet their obligations as and when they fall due.
In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen in the
interval between the end of the financial year and the date of this report which is likely to affect substantially the
results of the Group and of the Institute for the succeeding financial year in which this report is made.
DIRECTORS
The following directors served on the Board of the Institute since the date of the last report:
Encik Hashim bin Harun
Encik Foong Soo Hah
Y.Bhg. Dato’ Adrian Low Heong Chow @ Loh Heong Chow
Y.Bhg. Dato’ Hj. Syed Moheeb Bin Syed Kamarulzaman
Y.Bhg. Dato Koh Yaw Hui
Encik Low Choon Hoong
Encik Kwo Shih Kang
Encik Md Adnan bin Md Zain (appointed on 29.6.2012)
Encik Francis Lai @ Lai Vun Sen (appointed on 29.6.2012)
Encik Chua Seck Guan (appointed on 3.7.2012)
Annual Report 2012
102
Directors’ Report
(cont’d)
DIRECTORS’ BENEFITS
Since the end of the previous financial year, none of the directors of the Institute has received or become entitled
to receive any benefit by reason of a contract made by the Institute with a firm of which he is a member, or with a
company in which he has a substantial financial interest.
During and at the end of the financial year, no arrangement subsisted to which the Institute was a party whereby
the directors of the Institute might acquire benefits by means of the acquisition of shares in, or debentures of, the
Institute or any other body corporate.
AUDITORS
The auditors, Messrs. Deloitte KassimChan, have indicated their willingness to continue in office.
Signed on behalf of the Board
in accordance with a resolution of the Directors,
Signed
HASHIM BIN HARUN
(DIRECTOR)
Signed
FOONG SOO HAH
(DIRECTOR)
Kuala Lumpur,
April 24, 2013
Annual Report 2012
103
To the Members of THE MALAYSIAN INSURANCE INSTITUTE
Report on the Financial Statements
We have audited the financial statements of THE MALAYSIAN INSURANCE INSTITUTE, which comprise the
statements of financial position of the Group and of the Institute as of December 31, 2012 and the statements
of comprehensive income, statements of changes in equity and statements of cash flows of the Group and of
the Institute for the year then ended, and a summary of significant accounting policies and other explanatory
information, as set out on pages 105 to 139.
Directors’ Responsibility for the Financial Statements
The directors of the Institute are responsible for the preparation of financial statements that give a true and fair
view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting Standards and
the Companies Act, 1965 in Malaysia. The directors are also responsible for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the entity’s preparation of the financial statements
that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements have been properly drawn up in accordance with Malaysian Financial
Reporting Standards, International Financial Reporting Standards and the requirements of the Companies Act,
1965 in Malaysia so as to give a true and fair view of the financial position of the Group and of the Institute as of
December 31, 2012 and of the financial performance and cash flows of the Group and of the Institute for the year
then ended.
Annual Report 2012
104
To the Members of THE MALAYSIAN INSURANCE INSTITUTE
(cont’d)
Report on Other Legal and Regulatory Requirements
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the following:
(a)
in our opinion, the accounting and other records and the registers required by the Act to be kept by the
Institute and by the subsidiary company have been properly kept in accordance with the provisions of the
Act;
(b)
we are satisfied that the accounts of the subsidiary company that have been consolidated with the financial
statements of the Institute are in form and content appropriate and proper for the purpose of the preparation
of the financial statements of the Group, and we have received satisfactory information and explanations as
required by us for these purposes; and
(c)
our auditors’ report on the accounts of the subsidiary company was not subject to any qualification and did
not include any adverse comment made under Section 174(3) of the Act.
Other Matters
(a)
As stated in Note 2 to the financial statements, the Group and the Institute adopted Malaysian Financial
Reporting Standards on January 1, 2012 with a transition date of January 1, 2011. These standards were
applied retrospectively by directors to the comparative information in these financial statements, including
the statements of financial position as of December 31, 2011 and January 1, 2011, and the statement of
comprehensive income, statement of changes in equity and statement of cash flows for the year ended
December 31, 2011 and related disclosures. We were not engaged to report on the restated comparative
information and it is unaudited. Our responsibilities as part of our audit of the financial statements of the
Group and the Institute for the year ended December 31, 2012 have, in these circumstances, included
obtaining sufficient appropriate audit evidence that the opening balances as of January 1, 2012 do not
contain misstatements that materially affect the financial position as of December 31, 2012 and financial
performance and cash flows for the year then ended.
(b)
This report is made solely to the members of the Institute, as a body, in accordance with Section 174 of the
Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility towards any
other person for the contents of this report.
Signed
DELOITTE KASSIMCHAN
AF 0080
Chartered Accountants
Signed
MAK KUM CHOON
Partner - 1478/1/15 (J/PH)
Chartered Accountant
April 24, 2013
Annual Report 2012
105
Statements of Comprehensive Income
For the year ended December 31, 2012
Note
The Group
2012
2011
RM
RM
The Institute
2012
2011
RM
RM
Revenue
Other income
Employee benefits expense
Depreciation of property, plant and
equipment
Amortisation of prepaid lease payments
Interest on zero coupon bonds
Other expenses
6
7
7
15,604,681
924,787
(6,509,859)
17,672,941
647,893
(6,568,247)
15,604,681
917,336
(6,509,859)
17,672,941
641,181
(6,568,247)
9
10
22
7
(717,091)
(65,038)
(483,096)
(7,276,990)
(721,370)
(65,038)
(463,464)
(7,067,287)
(717,091)
(65,038)
(483,096)
(7,273,249)
(721,370)
(65,038)
(463,464)
(7,063,272)
Surplus before tax
Tax income/(expense)
8
1,477,394
548,885
3,435,428
(1,488,681)
1,473,684
550,435
3,432,731
(1,487,321)
Surplus for the year
Other comprehensive income, net of tax
2,026,279
–
1,946,747
–
2,024,119
–
1,945,410
–
Total comprehensive income for the year
2,026,279
1,946,747
2,024,119
1,945,410
The accompanying Notes form an integral part of the Financial Statements.
Annual Report 2012
106
As of December 31, 2012
The Group
Note
31.12.2012
RM
31.12.2011
RM
1.1.2011
RM
9
10
12
10,147,248
3,934,852
5,115,306
10,552,661
3,999,890
3,953,535
11,140,599
4,064,928
3,346,328
19,197,406
18,506,086
18,551,855
102,512
461,518
1,277,618
–
–
113,497
–
20,769,476
2,398,366
175,615
579,248
1,100,955
–
–
598,436
–
18,854,009
3,017,008
201,375
233,982
642,461
11,955
7,550
1,001,585
181,667
16,759,317
1,315,784
Total Current Assets
25,122,987
24,325,271
20,355,676
Total Assets
44,320,393
42,831,357
38,907,531
6,673,042
19,820,333
6,673,042
17,794,054
6,673,042
15,847,307
26,493,375
24,467,096
22,520,349
2,435,000
11,887,626
3,166,000
11,404,530
1,837,000
10,941,066
14,322,626
14,570,530
12,778,066
433,063
3,037,419
33,910
560,314
3,109,446
123,971
217,193
3,391,923
–
3,504,392
3,793,731
3,609,116
Total Liabilities
17,827,018
18,364,261
16,387,182
Total Reserves and Liabilities
44,320,393
42,831,357
38,907,531
ASSETS
Non-Current Assets
Property, plant and equipment
Prepaid lease payments
Fixed deposits
Total Non-Current Assets
Current Assets
Inventories
Trade receivables
Other receivables and prepaid expenses
Tax recoverable
Bumiputra Training Fund
Capacity Building Fund
ASEAN Insurance Training Fund
Fixed deposits
Cash and bank balances
RESERVES AND LIABILITIES
General reserves
Surplus
13
14
15
17
18
19
12
24
20
Accumulated Fund
Non-Current and Deferred Liabilities
Deferred tax liabilities
Zero coupon bonds - Secured
21
22
Total Non-Current and Deferred Liabilities
Current Liabilities
Trade payables
Other payables and accrued expenses
Tax liabilities
Total Current Liabilities
23
23
Annual Report 2012
107
(cont’d)
The Institute
Note
31.12.2012
RM
31.12.2011
RM
1.1.2011
RM
9
10
11
12
10,147,248
3,934,852
200,002
5,115,306
10,552,661
3,999,890
200,002
3,953,535
11,140,599
4,064,928
200,002
3,346,328
19,397,408
18,706,088
18,751,857
102,512
461,518
1,277,194
–
43,477
–
113,497
–
20,531,184
2,375,090
175,615
579,248
1,100,832
–
38,206
–
598,436
–
18,615,717
3,000,862
201,375
233,982
642,015
11,955
32,851
7,550
1,001,585
181,667
16,521,025
1,306,653
Total Current Assets
24,904,472
24,108,916
20,140,658
Total Assets
44,301,880
42,815,004
38,892,515
6,673,042
19,802,820
6,673,042
17,778,701
6,673,042
15,833,291
26,475,862
24,451,743
22,506,333
2,435,000
11,887,626
3,166,000
11,404,530
1,837,000
10,941,066
14,322,626
14,570,530
12,778,066
433,063
3,036,419
33,910
560,314
3,108,446
123,971
217,193
3,390,923
–
3,503,392
3,792,731
3,608,116
Total Liabilities
17,826,018
18,363,261
16,386,182
Total Reserves and Liabilities
44,301,880
42,815,004
38,892,515
ASSETS
Non-Current Assets
Prepaid lease payments
Investment in subsidiary company
Fixed deposits
Total Non-Current Assets
Current Assets
Inventories
Trade receivables
Tax recoverable
Amount due from subsidiary company
Fixed deposits
RESERVES AND LIABILITIES
General reserves
Surplus
13
14
15
16
17
18
19
12
24
20
Accumulated Fund
Non-Current and Deferred Liabilities
Deferred tax liabilities
Zero coupon bonds - Secured
21
22
Total Non-Current and Deferred Liabilities
Current Liabilities
Trade payables
Tax liabilities
Total Current Liabilities
23
23
Annual Report 2012
108
Statements of Changes in Equity
General
Reserves
RM
Surplus
RM
Total
RM
As of January 1, 2011
6,673,042
–
15,847,307
1,946,747
22,520,349
1,946,747
6,673,042
17,794,054
24,467,096
6,673,042
–
17,794,054
2,026,279
24,467,096
2,026,279
6,673,042
19,820,333
26,493,375
6,673,042
–
15,833,291
1,945,410
22,506,333
1,945,410
6,673,042
17,778,701
24,451,743
6,673,042
–
17,778,701
2,024,119
24,451,743
2,024,119
6,673,042
19,802,820
26,475,862
The Group
The Institute
Annual Report 2012
109
The Group
2012
2011
RM
RM
CASH FLOWS FROM/(USED IN)
OPERATING ACTIVITIES
Surplus before tax
Adjustments for:
Depreciation of property, plant and equipment
Amortisation of interest on zero coupon bonds
Amortisation of prepaid lease payments
Over utilisation of ASEAN Insurance Training
Fund written off
Property, plant and equipment written off
Interest income
Unrealised foreign exchange loss/(gain)
The Institute
2012
2011
RM
RM
1,477,394
3,435,428
1,473,684
3,432,731
717,091
483,096
65,038
721,370
463,464
65,038
717,091
483,096
65,038
721,370
463,464
65,038
–
11
(722,528)
16,705
5,000
3,884
(548,193)
(18,123)
–
11
(715,077)
16,705
5,000
3,884
(541,481)
(18,123)
2,036,807
4,127,868
2,040,548
4,131,883
(Increase)/Decrease in:
Inventories
Trade receivables
73,103
117,730
(183,826)
–
25,760
(345,266)
(442,571)
–
73,103
117,730
(183,826)
(5,271)
25,760
(345,266)
(442,571)
(5,355)
Increase/(Decrease) in:
Trade payables
(127,251)
(72,027)
343,121
(282,477)
(127,251)
(72,027)
343,121
(282,477)
Cash Generated From Operations
Income tax paid
1,844,536
(272,176)
3,426,435
(23,755)
1,843,006
(270,626)
3,425,095
(22,395)
Net Cash From Operating Activities
1,572,360
3,402,680
1,572,380
3,402,700
INVESTING ACTIVITIES
Interest received
Placement of fixed deposits
Additions to property, plant and equipment
729,691
(1,161,771)
(311,689)
532,270
(607,207)
(137,316)
722,541
(1,161,771)
(311,689)
525,235
(607,207)
(137,316)
(743,769)
(212,253)
(750,919)
(219,288)
Operating Profit Before Working Capital Changes
Net Cash Used In Investing Activities
Annual Report 2012
110
(cont’d)
Note
FINANCING ACTIVITIES
Bumiputra Training Fund received
Utilisation of Bumiputra Training Fund
ASEAN Insurance Training Fund received
Capacity Building Fund received
Utilisation of Capacity Building Fund
Net Cash From Financing Activities
NET INCREASE IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR
Effect of foreign exchange rate changes
CASH AND CASH EQUIVALENTS AT END
OF YEAR
24
The Group
2012
2011
RM
RM
The Institute
2012
2011
RM
RM
234,165
(234,165)
–
3,281,304
(2,796,365)
563,227
(555,677)
176,667
3,687,800
(3,284,651)
234,165
(234,165)
–
3,281,304
(2,796,365)
563,227
(555,677)
176,667
3,687,800
(3,284,651)
484,939
587,366
484,939
587,366
1,313,530
3,777,793
1,306,400
3,770,778
21,871,017
(16,705)
18,075,101
18,123
21,616,579
(16,705)
17,827,678
18,123
23,167,842
21,871,017
22,906,274
21,616,579
Annual Report 2012
111
1.
GENERAL INFORMATION
The Institute is a private company limited by guarantee, incorporated and domiciled in Malaysia.
The Institute is engaged in the provision and promotion of insurance education, training and research
in insurance and related disciplines. The Institute is the sole examining body for professional insurance
examinations in the country leading to the award of the Associateship of the Institute. It is also a society of
insurance professionals. The Institute is affiliated to other insurance examining institutes internationally and
works closely with local institutions of higher learning in promoting the development of insurance education
in Malaysia.
The subsidiary company was incorporated on September 3, 1999 and has not commenced operations since
the date of incorporation.
There have been no significant changes in the nature of the activities of the Institute and of its subsidiary
company during the financial year.
The principal place of business and registered office of the Institute is located at No.5, Jalan Sri Semantan 1,
Damansara Heights, 50490 Kuala Lumpur, Malaysia.
The financial statements of the Group and of the Institute have been authorised by the Board of Directors for
issuance on April 24, 2013.
2.
BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
The financial statements of the Group and of the Institute have been prepared in accordance with Malaysian
Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”) and the
provisions of the Companies Act, 1965 in Malaysia.
Adoption of Malaysian Financial Reporting Standards
The Group’s and the Institute’s financial statements for the financial year ended December 31, 2012 have been
prepared in accordance with MFRS for the first time. In the previous years, these financial statements were
prepared in accordance with Financial Reporting Standards (“FRS”) in Malaysia.
The transition from FRS to MFRS is accounted for in accordance with MFRS 1 First-time Adoption of Malaysian
Financial Reporting Standards, with January 1, 2011 as the date of transition and does not have significant
impact to the financial statements of the Group and of the Institute. There is also no effect on surplus and
consequently, reconciliations of surplus reported in accordance with FRS to surplus in accordance with MFRS
for the date of transition to MFRS in the Group’s and the Institute’s most recent annual financial statements
are not being presented.
Annual Report 2012
112
(cont’d)
MFRSs and IC Interpretations (“IC Ints.”) issued but not yet effective
At the date of authorisation for issue of these financial statements, the new and revised Standards and IC
Interpretations which were in issue but not yet effective and not early adopted by the Group and the Institute
are as listed below:
MFRS 1
First-time Adoption of Malaysian Financial Reporting Standards (Amendments relating to
government loans)1
MFRS 7
Financial Instruments: Disclosures [Amendments relating to Mandatory Effective Date of
MFRS 9 and Transition Disclosures (IFRS 9 issued by IASB in November 2009 and October
2010 respectively)]2
MFRS 7
Financial Instruments: Disclosures (Amendments relating to Disclosures - Offsetting
Financial Assets and Liabilities)1
MFRS 9
Financial Instruments (IFRS 9 issued to IASB in November 2009)3
MFRS 9
Financial Instruments (IFRS 9 issued by IASB in October 2010)3
MFRS 10
Consolidated Financial Statements1
MFRS 10
Consolidated Financial Statements (Amendments relating to Transition Guidance)1
MFRS 11
Joint Arrangements1
MFRS 11
Joint Arrangements (Amendments relating to Transition Guidance)1
MFRS 12
Disclosure of Interests in Other Entities1
MFRS 12
Disclosure of Interests in Other Entities (Amendments relating to Transition Guidance)1
MFRS 13
Fair Value Measurement1
MFRS 101
Presentation of Financial Statements (Amendments relating to Presentation of Items of
Other Comprehensive Income)4
MFRS 119
Employee Benefits (IAS 19 as amended by IASB in June 2011)1
MFRS 127
Separate Financial Statements (IAS 27 as amended by IASB in May 2011)1
MFRS 128
Investments in Associates and Joint Ventures (IAS 28 as amended by IASB in May 2011)1
MFRS 132
Financial Instruments: Presentation (Amendments relating to Offsetting Financial Assets
and Financial Liabilities)5
IC Int. 20
Stripping Costs in the Production Phase of a Surface Mine1
Amendments to MFRSs contained in the document entitled Annual Improvements 2009 - 2011 Cycle issued in
July 20121
1
Effective for annual periods beginning on or after January 1, 2013
2
Effective immediately on issuance date of March 1, 2012
3
Effective for annual periods beginning on or after January 1, 2015 instead of January 1, 2013 immediately upon the
issuance of Amendments to MFRS 9 (IFRS 9 issued by IASB in November 2009 and October 2010 respectively) and MFRS 7
relating to “Mandatory Effective Date of MFRS 9 and Transition Disclosures” on March 1, 2012
4
Effective for annual periods beginning on or after July 1, 2012
5
Effective for annual periods beginning on or after January 1, 2014
The directors anticipate that the abovementioned Standards and IC Interpretations will be adopted in the
annual financial statements of the Group and of the Institute when they become effective and that the
adoption of the Standards and IC Interpretations will have no material impact on the financial statements of
the Group and of the Institute in the period of initial application.
Annual Report 2012
113
(cont’d)
3.
FINANCIAL AND CAPITAL RISK MANAGEMENT POLICIES
The Group’s and the Institute’s financial risk management policies seek to ensure that adequate financial
resources are available for the development of the Group’s and of the Institute’s business whilst managing
their risks. The Group and the Institute operate within guidelines that are approved by the Board, and the
Group’s and the Institute’s policy is not to engage in speculative transactions.
The main areas of financial risks faced by the Group and the Institute and the policies in respect of the major
areas of treasury activities are set out as follows:
(a)
Foreign currency risk
The Group and the Institute are exposed to foreign currency risk as a result of its normal operating
activities, where the currency denomination differs from the local currency, Ringgit Malaysia (RM). The
Group’s and the Institute’s policy is to minimise the exposure to foreign currency risk by monitoring
and approving requisitions which involves foreign currencies. No sensitivity analysis is prepared as
the Group and the Institute do not expect any material effect on the Group’s and the Institute’s profit
net of tax and equity arising from the effect of reasonably possible changes to exchange rates on the
foreign currency denominated monetary assets and monetary liabilities at the end of the reporting
period as the balances are immaterial. The Group did not engage in any transactions involving financial
derivative instruments during the financial year.
(b)
Credit risk
The credit risk is controlled by not granting any credit to individuals and companies with the exception
of entities within the insurance industry, which have a special arrangement with the Group.
The maximum credit risk associated with recognised financial assets is the carrying amount shown in
the statements of financial position.
The Group and the Institute has no significant concentration of credit risk with any single counterparty.
(c)
Liquidity and cash flow risks
The Group and the Institute seek to achieve a balance between certainty of funding even in difficult
times for the markets of the Group and the Institute and a flexible, cost-effective borrowing structure.
This is to ensure that at the minimum, all projected net borrowing needs are covered by committed
facilities. Also, the objective for debt maturity is to ensure that the amount of debts maturing in any
one year is not beyond the Group’s and the Institute’s means to repay and refinance.
Annual Report 2012
114
(cont’d)
The maturity analysis and the effective interest rates for the class of financial asset is as follows:
Less than
1 year
RM
1 to 5
years
RM
Total
RM
Effective
interest
rate during
the year
Financial assets:
Fixed deposits
20,769,476
5,115,306
25,884,782
1.90% - 3.35%
2011
Financial assets:
Fixed deposits
18,854,009
3,953,535
22,807,544
1.90% - 3.30%
Financial assets:
Fixed deposits
20,531,184
5,115,306
25,646,490
1.90% - 3.35%
2011
Financial assets:
Fixed deposits
18,615,717
3,953,535
22,569,252
1.90% - 3.30%
The Group
2012
The Institute
2012
The financial liabilities of the Group and the Institute are repayable within one year other than the zero
coupon bonds which are redeemable in 2022.
No sensitivity analysis is prepared as the Group and the Institute do not expect any material effect on
the Group’s and the Institute’s profit net of tax and equity arising from the effect of reasonably possible
changes to interest rates on interest bearing financial instruments at the end of the reporting period.
Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns,
through regular reviews of the capital structure.
The capital structure of the Group consists of net debts (zero coupon bonds as disclosed in Note 22 offset by
cash and cash equivalents as disclosed in Note 24) and reserves and surplus as disclosed in the statements of
changes in equity.
The Group is not subject to any externally imposed capital requirements.
Annual Report 2012
115
(cont’d)
4.
SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation
The financial statements of the Group and the Institute have been prepared under the historical cost
convention, unless otherwise indicated in the accounting policies stated below. Historical cost is generally
based on the fair value of the consideration given in exchange for assets.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of the Institute and entities
(including special purpose entities) controlled by the Institute (its subsidiary company). Control is achieved
where the Institute has the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities.
The results income and expenses of subsidiaries acquired or disposed of during the year are included in
the consolidated statement of comprehensive income from the effective date of acquisition and up to the
effective date of disposal, as appropriate. Total comprehensive income of subsidiary company is attributed
to the owners of the Institute and to the non-controlling interests even if this results in the non-controlling
interests having a deficit balance.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting
policies into line with those used by other members of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
Changes in the Group’s ownership interests in subsidiary company that do not result in the Group losing
control are accounted for as equity transactions. The carrying amounts of the Group’s interests and the noncontrolling interests are adjusted to reflect the changes in their relative interests in the subsidiary company.
Any difference between the amount by which the non-controlling interests are adjusted and the fair value of
the consideration paid or received is recognised directly in equity and attributed to owners of the Institute.
When the Group loses control of a subsidiary company, a gain or loss is recognised in profit or loss and is
calculated as the difference between (i) the aggregate of the fair value of the consideration received and the
fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill),
and liabilities of the subsidiary company and any non-controlling interests. When assets of the subsidiary
company are carried at revalued amounts or fair values and the related cumulative gain or loss has been
recognised in other comprehensive income and accumulated in equity, the amounts previously recognised
in other comprehensive income are accounted for as if the Group had directly disposed of the relevant
assets (i.e. reclassified to profit or loss or transferred directly to retained earnings as specified by applicable
Standards). The fair value of any investment retained in the former subsidiary at the date when control is
lost is regarded as the fair value on initial recognition for subsequent accounting under MFRS 139 Financial
Instruments: Recognition and Measurement or, when applicable, the cost on initial recognition of an investment
in an associate or jointly controlled entity.
Annual Report 2012
116
(cont’d)
Business Combinations
Acquisitions of subsidiary companies and businesses are accounted for using the acquisition method. The
consideration transferred in a business combination is measured at fair value which is calculated as the sum
of the acquisition-date fair values of assets transferred by the Group, liabilities incurred by the Group to the
former owners of the acquiree and equity instruments issued by the Group in exchange for control of the
acquiree. Acquisition-related costs are recognised in profit or loss as incurred.
At acquisition date, the identifiable assets acquired and liabilities assumed are recognised at their fair value,
except that:

deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are
recognised and measured in accordance with MFRS 112 Income Taxes and MFRS 119 Employee Benefits
respectively;

liabilities or equity instruments related to the share-based payment arrangements of the acquiree
or share-based payment arrangements of the Group entered into to replace share-based payment
arrangements of the acquiree are measured in accordance with MFRS 2 Share-based Payment at the
acquisition date; and

assets (or disposal groups) that are classified as held for sale in accordance with MFRS 5 Non-current
Assets Held for Sale and Discontinued Operations are measured in accordance with that Standard.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in
the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the
liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets
acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any noncontrolling interests in the acquiree and the fair value of the acquirer’s previously held equity interest in the
acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at
the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable
net assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of
non-controlling interests are measured at fair value or, when applicable, on the basis specified in another
Standard.
Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at
its acquisition-date fair value. Changes in the fair value of the contingent consideration that qualify as
measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information obtained
during the ‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and
circumstances that existed at the acquisition date.
The subsequent accounting for changes in the fair value of contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent
consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent
settlement is accounted for within equity. Contingent consideration that is classified as an asset or liability is
remeasured at subsequent reporting dates in accordance with MFRS 137 Provisions, Contingent Liabilities and
Contingent Assets, as appropriate, with the corresponding gain or loss being recognised in profit or loss.
Annual Report 2012
117
(cont’d)
Where a business combination is achieved in stages, the Group’s previously held equity interests in the
acquiree are remeasured to fair value at the acquisition date (i.e. the date when the Group attains control)
and the resulting gain or loss, if any, is recognised in profit or loss. Amounts arising from interests in the
acquiree prior to the acquisition date that have previously been recognised in other comprehensive income
are reclassified to profit or loss, where such treatment would be appropriate if that interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period
in which the combination occurs, the Group reports provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts are adjusted during the measurement period (see
above), or additional assets or liabilities are recognised, to reflect new information obtained about facts
and circumstances that existed as of the acquisition date that, if known, would have affected the amounts
recognised at that date.
Revenue
Revenue is measured at the fair value of the consideration received or receivable and represents amounts
receivable for goods and services provided in the normal course of business, net of returns and trade
discounts after eliminating sales within the Group.
Revenue consists of seminar and course fees, membership fees, examination fees and sale of books. Fees
revenue is accounted for on an accrual basis.
Revenue from sale of books is accounted for when the risks and rewards of ownership have passed.
Foreign Currency
The individual financial statements of each group entity are presented in the currency of the primary
economic environment in which the entity operates (its functional currency). For the purpose of the
consolidated financial statements, the results and financial position of each group entity are expressed in
Ringgit Malaysia (‘RM’), which is the functional currency of the Institute and the presentation currency for the
consolidated financial statements.
In preparing the financial statements of the individual entity, transactions in currencies other than the entity’s
functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period, monetary items denominated in foreign currencies
are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are
denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was
determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not
retranslated.
Exchange differences are recognised in profit or loss in the period in which they arise except for:

exchange differences arising on the retranslation of non-monetary items carried at fair value in respect
of which gain and losses are recognised in other comprehensive income. For such non-monetary items,
the exchange component of that gain or loss is also recognised in other comprehensive income;

exchange differences on foreign currency borrowings relating to assets under construction for
future productive use, which are included in the cost of those assets when they are regarded as an
adjustment to interest costs on those foreign currency borrowings;
Annual Report 2012
118
(cont’d)

exchange differences on transactions entered into in order to hedge certain foreign currency risks; and

exchange differences on monetary items receivable from or payable to a foreign operation for which
settlement is neither planned nor likely to occur (therefore, forming part of the net investment in the
foreign operation), which are recognised initially in other comprehensive income and reclassified from
equity to profit or loss on repayment of the monetary items.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year, calculated using tax rates that have been
enacted or substantively enacted by the end of the reporting period. Current tax for current and prior periods
is recognised as a liability (or asset) to the extent that it is unpaid (or recoverable).
Deferred tax is provided for, using the “liability” method, on temporary differences at the end of the reporting
period between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets
are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the
extent that it is probable that future taxable profit will be available against which the deductible temporary
differences, unused tax losses and unused tax credits can be utilised. Deferred tax is not recognised if the
temporary difference arises from goodwill or from the initial recognition of an asset or liability in a transaction
which is not a business combination and at the time of the transaction, affects neither the accounting profit
nor taxable profit.
Deferred tax is measured at the tax rates that are expected to apply in the period when the asset is realised
or the liability settled, based on tax rates that have been enacted or substantively enacted by the end of the
reporting period. Deferred tax is recognised in profit or loss, except when it arises from a transaction which is
recognised outside profit or loss (whether in other comprehensive income or directly in equity), in which case
the deferred tax is also recognised outside profit or loss, or when it arises from a business combination that is
an acquisition, in which case the deferred tax is included in the resulting goodwill.
The carrying amount of deferred tax assets, if any, is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient future taxable profit will be available to
allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group and the Institute intend to settle its current tax assets and liabilities on a net basis.
Employee Benefits
(i)
Short-term benefits
Wages, salaries, bonuses and social security contributions are recognised as an expense in the period
in which the associated services are rendered by employees. Short-term accumulating compensated
absences such as paid annual leave are recognised when services are rendered by employees that
increase their entitlement to future compensated absences, and short-term non-accumulating
compensated absences such as sick leave are recognised when the absences occur.
Annual Report 2012
119
(cont’d)
(ii)
Defined contribution plans
The Group and the Institute are required by law to make monthly contributions to the Employees
Provident Fund (“EPF”), a statutory defined contribution plan for all their eligible employees based
on certain prescribed rates of the employees’ applicable remuneration. Contributions are charged to
profit or loss in the period in which they relate. The Group’s and the Institute’s contributions to EPF
are disclosed separately and the employees’ contributions to EPF are included in salaries, bonuses,
allowances and other staff benefits. Once the contributions have been paid, the Group and the
Institute have no further payment obligations.
Impairment of Assets
At the end of each reporting period, the Group reviews the carrying amounts of its tangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset,
the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When
a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to
individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value-in-use. In assessing value-in-use,
the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessment of the time value of money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying
amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An
impairment loss is recognised immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit)
is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been determined had no impairment loss been
recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised
immediately in profit or loss.
Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment loss.
Subsequent cost is included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future benefits associated with the item will flow to the Group and the Institute
and the cost can be measured reliably. The carrying amount of the part of the asset being replaced is
derecognised. All other repairs and maintenance costs are charged to profit or loss in the year in which they
are incurred.
Annual Report 2012
120
(cont’d)
Depreciation of property, plant and equipment are computed on the straight-line method at the following
annual rates based on the estimated useful lives of the various property, plant and equipment:
Leasehold building
Furniture and fittings, audio visual and office equipment
Motor vehicles
Computers and peripherals
Renovation
2%
10% - 33.33%
20%
20% - 33.33%
20% - 33.33%
At the end of each reporting period, the residual values, useful lives and depreciation method of the property,
plant and equipment are reviewed, and the effects of any changes are recognised prospectively.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the sales
proceeds and the carrying amount of the asset, and is recognised in profit or loss.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating leases.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of
the relevant lease. Benefits received and receivable as an incentive to enter into an operating lease are also
spread on a straight-line basis over the lease term. However, contingent rentals arising from operating leases
are recognised as an expense in the periods in which they are incurred.
Investment in Subsidiary Company
Investment in subsidiary company, which is eliminated on consolidation, held on long term basis is stated at
cost less any impairment losses in the Institute’s separate financial statements.
Prepaid Lease Payments
Lease of land where title is not expected to pass to the lessee at the end of the lease term is classified as
operating leases as land normally has an indefinite useful life. The upfront payments made on entering into or
acquiring a leasehold land that is an operating lease represents prepaid lease payments which are amortised
on a straight line basis over the lease term.
Inventories
Inventories are valued at the lower of cost and net realisable value. Inventories include books and
publications for sale. Administration and computer stationeries are expensed to profit or loss with effect from
2012.
In arriving at net realisable value, due allowance is made for obsolete and slow moving inventories.
Annual Report 2012
121
(cont’d)
Provisions
Provisions are made when the Group and the Institute have a present legal or constructive obligation as a
result of past events, when it is probable that an outflow of resources will be required to settle the obligation,
and when a reliable estimate of the amount can be made.
Provisions are measured at the directors’ best estimate of the expenditure required to settle the obligation at
the end of each reporting period, and are discounted to a present value where the effect is material.
At the end of each reporting period, provisions are revised by the directors and adjusted to reflect the current
best estimate. Provisions are reversed if it is no longer probable that the Group and the Institute will be
required to settle the obligation.
Financial Instruments
Financial assets and financial liabilities are recognised in the statements of financial position when, and only
when, the Group and the Institute become a party to the contractual provisions of the financial instruments.
(i)
Financial Assets
Financial assets are classified into the following specified categories: financial assets “at fair value
through profit or loss” (FVTPL), “held-to-maturity” investments, “available-for-sale” (AFS) financial assets
and “loans and receivables”. The classification depends on the nature and purpose of the financial
assets and is determined at the time of initial recognition.
Loans and receivables comprising trade and other receivables, cash and cash equivalents, training
funds and amount due from subsidiary company are measured at initial recognition at fair value, and
are subsequently measured at amortised cost using the effective interest method less impairment
losses, if any. Interest income is recognised by using the effective interest rate, except for short-term
receivables where the recognition of interest would be immaterial.
The effective interest method is a method of calculating the amortised cost of a financial asset and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.
Impairment of financial assets
Receivables are assessed for indicators of impairment at the end of each reporting period. Receivables
are impaired where there is objective evidence that, as a result of one or more events that occurred
after the initial recognition of the receivables, the estimated future cash flows of the trade receivables
have been impacted.
Objective evidence of impairment could include:

Significant financial difficulty of the customers; or

Default or delinquency in interest or principal payments; or

It becoming probable that the customers will enter bankruptcy or financial re-organisation.
Annual Report 2012
122
(cont’d)
Receivables that are assessed not to be impaired individually are subsequently assessed for
impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables
could include the Group’s and the Institute’s past experience of collecting payments, an increase in
the number of delayed payments in the portfolio, as well as observable changes in national or local
economic conditions that correlate with default on receivables.
The carrying amount of the receivables is reduced by the impairment loss through the use of an
allowance account. When a receivable is considered uncollectible, it is written off against the allowance
account. Subsequent recoveries of amounts previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance account are recognised in the profit or loss.
The amount of impairment loss recognised is the difference between the asset’s carrying amount and
the present value of estimated future cash flows, discounted at the financial asset’s original effective
interest rate.
Derecognition of financial assets
Financial assets are derecognised when the contractual right to receive cash flows from the asset has
expired or when the Group and the Institute transfer the financial asset and substantially all the risks
and rewards of ownership of the asset to another entity. If the Group and the Institute neither transfer
nor retain substantially all the risks and rewards of ownership and continue to control the transferred
asset, the Group and the Institute recognise its retained interest in the asset and an associated liability
for amounts it may have to pay. If the Group and the Company retain substantially all the risks and
rewards of ownership of a transferred financial asset, the Group and the Institute continue to recognise
the financial asset and also recognise a collateralised borrowing for the proceeds received.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and
the sum of the consideration received and any cumulative gain or loss that had been recognised in
other comprehensive income is recognised in profit or loss.
(ii)
Financial liabilities and equity instruments
Classification as debt or equity
Debts and equity instruments are classified as either financial liability or as equity according with the
substance of the contractual arrangements.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct
issue costs. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable transactions costs.
Dividends on ordinary shares are recognised in equity in the period in which they are declared.
Financial liabilities
Financial liabilities are classified as either financial liabilities at ‘FVTPL’ or ‘other financial liabilities’.
Annual Report 2012
123
(cont’d)
Other financial liabilities comprising payables, accrued expenses and debt instruments such as bonds
are initially measured at fair value net of transaction costs. These financial liabilities are subsequently
measured at amortised cost using the effective interest method, with interest expense recognised on
an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.
Derecognition of financial liabilities
The Group and the Institute derecognise financial liabilities when, and only when, the Group’s and the
Institute’s obligations are discharged, cancelled or they expire. The difference between the carrying
amount of the financial liabilities derecognised and the consideration paid or payable is recognised in
profit or loss.
Cash and Cash Equivalents
The Group and the Institute adopt the indirect method in the preparation of the statements of cash flows.
Cash and cash equivalents comprise cash on hand and demand deposits, other highly liquid investments with
maturities of three months or less from the date of acquisition and are readily convertible to a known amount
of cash with insignificant risk of changes in value.
5.
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(i)
Critical judgements in applying the Group’s and the Institute’s accounting policies
In the process of applying the Group’s and the Institute’s accounting policies, which are described in
Note 4 above, management is of the opinion that there are no instances of application of judgement
which are expected to have a significant effect on the amounts recognised in the financial statements.
(ii)
Key sources of estimation uncertainty
Management believes that there are no key assumptions made concerning the future, and other key
sources of estimation uncertainty at the end of the reporting period that have a significant risk of
causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year.
Annual Report 2012
124
(cont’d)
6.
REVENUE
The Group and
The Institute
2012
2011
RM
RM
Fees received
Sale of books
7.
15,240,550
364,131
17,176,776
496,165
15,604,681
17,672,941
OTHER INCOME/(EXPENSES) AND EMPLOYEE BENEFITS EXPENSE
Included in other income/(expenses) are the following:
The Group
2012
2011
RM
RM
Interest income from fixed deposits
Rental income
Gain/(Loss) on foreign exchange:
Unrealised
Realised
Rental of venue and office premises
Rental of equipment
Auditors’ remuneration:
Current year
Underprovision in prior year
Over utilisation of ASEAN Insurance Training
Fund written off (Note 19)
Property, plant and equipment written off
The Institute
2012
2011
RM
RM
722,528
24,625
548,193
–
715,077
24,625
541,481
–
(16,705)
(818)
(926,436)
(95,653)
18,123
(32,600)
(642,624)
(235,891)
(16,705)
(818)
(926,436)
(95,653)
18,123
(32,600)
(642,624)
(235,891)
(34,000)
–
(34,000)
(3,000)
(33,000)
–
(33,000)
(3,000)
–
(11)
(5,000)
(3,884)
–
(11)
(5,000)
(3,884)
Employee benefits expense includes salaries, contributions to EPF and all other staff related expenses. During
the financial year, contributions of EPF made by the Group and by the Institute amounted to RM792,863
(RM745,281 in 2011).
Included in other income is Hibah, a voluntarily gift on saving account in licenced banks, amounted to
RM75,724 (RM43,805 in 2011).
Annual Report 2012
125
(cont’d)
8.
TAX (INCOME)/EXPENSE
The Group
2012
2011
RM
RM
Current year:
Estimated tax payable
Deferred tax (Note 21)
(Over)/Underprovision in prior years:
Estimated tax payable
Deferred tax (Note 21)
The Institute
2012
2011
RM
RM
201,287
292,000
156,809
1,121,000
199,737
292,000
155,449
1,121,000
493,287
1,277,809
491,737
1,276,449
(19,172)
(1,023,000)
2,872
208,000
(19,172)
(1,023,000)
2,872
208,000
(548,885)
1,488,681
(550,435)
1,487,321
Overprovision of deferred tax in prior years arose mainly from the revision of tax computation for years of
assessment 2010 and 2011 following the receipt of exemption order from Ministry of Finance on the nontaxability of grants received by the Institute for Capacity Building Fund (Note 18) during the year. The said
exemption order took effect retrospectively from 2010 to 2016 for grants up to RM44.8 million.
A numerical reconciliation of tax (income)/expense applicable to the surplus before tax at the statutory
income tax rate to tax (income)/expense at the effective tax rate of the Group and of the Institute is as follows:
The Group
2012
2011
RM
RM
Surplus before tax
Tax of RM14,325 for the first RM100,000 of
chargeable income and the remaining at 26%
Tax at statutory rate at 20%
Tax effects of:
Expenses not deductible for tax purposes
Non-taxable items
(Over)/Under provision in prior years:
Current tax
Deferred tax
Tax (income)/expense for the year
The Institute
2012
2011
RM
RM
1,477,394
3,435,428
1,473,684
3,432,731
371,483
742
880,835
539
371,483
–
880,835
–
220,882
(99,820)
665,814
(269,379)
220,074
(99,820)
664,993
(269,379)
(19,172)
(1,023,000)
2,872
208,000
(19,172)
(1,023,000)
2,872
208,000
(548,885)
1,488,681
(550,435)
1,487,321
Annual Report 2012
126
(cont’d)
9.
PROPERTY, PLANT AND EQUIPMENT
The Group and the Institute
Leasehold
building
RM
Furniture
and fittings,
audio visual
and office
equipment
RM
Motor
vehicles
RM
Computers
and
peripherals
RM
Renovation
RM
Total
RM
Cost
Additions
Write offs
13,212,131
–
–
1,795,617
126,676
(193,978)
454,016
–
–
3,943,820
10,640
(335,360)
1,842,264
–
–
21,247,848
137,316
(529,338)
13,212,131
1,728,315
454,016
3,619,100
1,842,264
20,855,826
Additions
Write offs
13,212,131
–
–
1,728,315
1,499
–
454,016
–
–
3,619,100
310,190
(32,240)
1,842,264
–
–
20,855,826
311,689
(32,240)
13,212,131
1,729,814
454,016
3,897,050
1,842,264
21,135,275
Accumulated
Depreciation
Charge for the year
Write offs
3,727,298
151,757
–
1,399,333
119,193
(191,000)
284,836
56,023
–
2,897,262
360,043
(334,454)
1,798,520
34,354
–
10,107,249
721,370
(525,454)
3,879,055
1,327,526
340,859
2,922,851
1,832,874
10,303,165
Charge for the year
Write offs
3,879,055
151,757
–
1,327,526
108,636
–
340,859
56,023
–
2,922,851
396,035
(32,229)
1,832,874
4,640
–
10,303,165
717,091
(32,229)
4,030,812
1,436,162
396,882
3,286,657
1,837,514
10,988,027
Net Book Value
9,181,319
293,652
57,134
610,393
4,750
10,147,248
9,333,076
400,789
113,157
696,249
9,390
10,552,661
9,484,833
396,284
169,180
1,046,558
43,744
11,140,599
Annual Report 2012
127
(cont’d)
The following assets were acquired using the Capacity Building Fund (Note 18) during the current year:
The Group and the Institute
Leasehold
building
RM
Furniture
and fittings,
audio visual
and office
equipment
RM
18,817
(18,817)
Net book value
Motor
vehicles
RM
Computers
and
peripherals
RM
Renovation
RM
–
–
110,805
(110,805)
–
–
129,622
(129,622)
–
–
–
–
–
December 31, 2011
Cost
Fund received
–
–
99,435
(99,435)
1,161,544
(1,161,544)
14,400
(14,400)
1,275,379
(1,275,379)
Net book value
–
–
–
–
–
50,173
(50,173)
–
–
2,224,161
(2,224,161)
163,899
(163,899)
2,438,233
(2,438,233)
–
–
–
–
–
December 31, 2012
Cost
Fund received
January 1, 2011
Cost
Fund received
Net book value
The leasehold building has been charged as a security for the Zero coupon bonds as disclosed in Note 22.
Included in property, plant and equipment of the Group and of the Institute are fully depreciated assets
which are still in use, with costs totalling RM5,623,901 (2011: RM4,789,556).
Annual Report 2012
128
(cont’d)
10.
PREPAID LEASE PAYMENTS
The Group and
The Institute
2012
2011
RM
RM
Cost
At beginning and end of year
5,662,342
5,662,342
Accumulated Amortisation
At beginning of year
Amortisation for the year
1,662,452
65,038
1,597,414
65,038
At end of year
1,727,490
1,662,452
Carrying amount
3,934,852
3,999,890
The unexpired portion of the said leasehold land as of December 31, 2012 is 60 years (61 years in 2011; 62
years in 2010).
The leasehold land has been charged as a security for the Zero coupon bonds as disclosed in Note 22.
11.
INVESTMENT IN SUBSIDIARY COMPANY
The Group and The Institute
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Unquoted shares, at cost
200,002
200,002
200,002
The details of subsidiary company incorporated in Malaysia are as follows:
Name of Institute
31.12.2012
%
M.I.I. Academy Sdn. Bhd.
100
Effective
equity interest
31.12.2011
%
100
Principal activity
1.1.2011
%
100
Dormant
The establishment of M.I.I. Academy Sdn. Bhd. is a requirement under Section 12 of Akta IPTS 1996.
Annual Report 2012
129
(cont’d)
12.
FIXED DEPOSITS
Short-term:
Deposits placed with licensed bank
Long-term:
Short-term:
Long-term:
31.12.2012
RM
The Group
31.12.2011
RM
1.1.2011
RM
20,769,476
18,854,009
16,759,317
5,115,306
3,953,535
3,346,328
25,884,782
22,807,544
20,105,645
31.12.2012
RM
The Institute
31.12.2011
RM
20,531,184
18,615,717
16,521,025
5,115,306
3,953,535
3,346,328
25,646,490
22,569,252
19,867,353
1.1.2011
RM
The long-term fixed deposits of the Group and of the Institute placed with a licensed bank amounting to
RM5,115,306 (RM3,953,535 in 2011; RM3,346,328 in 2010) is deposited for the purpose of redemption of the
Zero coupon bonds as disclosed in Note 22.
13.
INVENTORIES
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Bookshop books
Administration stationeries
Computer stationeries
102,512
–
–
143,818
24,016
7,781
160,956
27,012
13,407
102,512
175,615
201,375
The cost of inventories recognised as an expense for the year was RM63,902 (RM118,072 in 2011; RM107,258
in 2010).
Annual Report 2012
130
(cont’d)
14.
TRADE RECEIVABLES
Trade receivables comprise amounts receivable from customers for academic and training courses conducted.
These are non-interest bearing and recognised at their original invoice amounts which represent their fair
values on initial recognition. In general, the Group practices no credit to its customers. However, the Group
allows credit to customers which are insurance companies with special arrangement with the Group.
The Group’s historical experience in collection of trade receivables and other receivables (as disclosed in
Note 15) falls within the recorded allowances and management believes that there is no additional credit risk
inherent in the Group’s trade and other receivables.
Trade receivables as disclosed include amounts (see below for aged analysis) that are past due at the end of
the reporting period but against which the Group has not recognised an allowance for doubtful receivables
because there has not been a significant change in credit quality and the amounts are still considered
recoverable.
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of
the trade receivable from the date credit was initially granted up to the end of the reporting period.
Ageing of past due but not impaired
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
15.
1-30 days
31-60 days
61-90 days
>90 days
35,547
91,648
77,170
257,153
111,449
210,327
34,690
222,782
92,089
37,497
62,450
41,946
Total
461,518
579,248
233,982
31.12.2012
RM
The Group
31.12.2011
RM
1.1.2011
RM
362,386
521,502
256,130
137,600
435,370
293,000
227,822
144,763
124,246
179,427
209,948
128,840
1,277,618
1,100,955
642,461
OTHER RECEIVABLES AND PREPAID EXPENSES
Prepaid expenses
Other receivables
Refundable deposits
Interest receivable
Annual Report 2012
131
(cont’d)
31.12.2012
RM
Prepaid expenses
Other receivables
Refundable deposits
Interest receivable
The Institute
31.12.2011
RM
1.1.2011
RM
362,386
521,502
256,130
137,176
435,370
293,000
227,822
144,640
124,246
179,427
209,948
128,394
1,277,194
1,100,832
642,015
Included in other receivables of the Group and of the Institute is an amount of RM281,820 (RM189,030 in
2011; RM57,405 in 2010) representing amount owing by the ASEAN Insurance Training and Research Institute.
This amount arose mainly from expenses paid on behalf, is unsecured, interest-free and repayable on demand.
16.
AMOUNT DUE FROM SUBSIDIARY COMPANY
Amount due from subsidiary company, which arose mainly from payment on behalf, is interest-free and
repayable on demand.
17.
BUMIPUTRA TRAINING FUND
The Group and
The Institute
2012
2011
RM
RM
Payment of subsidies for Bumiputra life insurance agents
Subsidy received
At end of year
–
234,165
(234,165)
7,550
555,677
(563,227)
–
–
The Bumiputra Training Fund (“BTF”) was set up with the objective of assisting the development of the
bumiputra life insurance agents and staff in Malaysia.
The contributions are collected by Life Insurance Association of Malaysia (“LIAM”) from the various life
insurance companies. Eligible bumiputra life agents and staff would utilise this fund to subsidise the course
fees for approved programmes conducted by the Institute. The basis of subsidy depends on the programme
and it is determined and approved by LIAM.
Annual Report 2012
132
(cont’d)
18.
CAPACITY BUILDING FUND
The Group and
The Institute
2012
2011
RM
RM
Payments/Activities
Fund received
At end of year
598,436
2,796,365
(3,281,304)
1,001,585
3,284,651
(3,687,800)
113,497
598,436
Following the idea of having a permanent funding mechanism from the industry, Bank Negara Malaysia
initiated the move to set up a capacity building fund to be jointly funded by Bank Negara Malaysia and the
insurance industry. The basis of the contribution is that Bank Negara Malaysia will match ringgit-for-ringgit
the contribution by the insurance industry. The funds will be channelled through the Board of Trustees of
Asian Institute of Finance which will disburse the necessary funds for any approved projects. The balance at
the end of the reporting period is pending reimbursement by the fund. The fund was also utilised to acquire
assets as disclosed in Note 9.
19.
ASEAN INSURANCE TRAINING FUND
The Group and
The Institute
2012
2011
RM
RM
Over utilisation of fund written off
Fund received
–
–
–
181,667
(5,000)
(176,667)
At end of year
–
–
The ASEAN Insurance Training Fund (“AITF”) was set up with the objective to promote the development of
insurance expertise in ASEAN. The fund is used to develop the Institute into a regional training centre and
to provide financial assistance through scholarships to ASEAN insurance personnel who wish to pursue
insurance courses conducted by the Institute.
The fund was established in 1997 with an initial fund of RM300,000. The Institute received the balance of
RM176,667 in 2011 which represents part of the fourth and final instalment of RM300,000.
Annual Report 2012
133
(cont’d)
20.
GENERAL RESERVES
General reserves consist of:
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Building and renovation fund
Scholarship fund
Institute Insurans Malaysia (IIM) fund
General reserves
157,037
85,646
122,171
6,308,188
157,037
85,646
122,171
6,308,188
157,037
85,646
122,171
6,308,188
6,673,042
6,673,042
6,673,042
General reserves arose mainly from contributions by insurance companies, brokers, agents and adjusters and
the surplus arising on the disposal of a subsidiary company in prior years.
21.
DEFERRED TAX LIABILITIES
The Group and
The Institute
2012
2011
RM
RM
Charged/(Credited) to profit or loss for the year (Note 8):
Other receivables
Unabsorbed capital allowances
At end of year
3,166,000
1,837,000
(264,000)
(155,000)
(3,000)
(2,000)
(307,000)
(468,000)
155,000
5,000
95,000
1,542,000
(731,000)
1,329,000
2,435,000
3,166,000
Annual Report 2012
134
(cont’d)
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Tax effects of:
Taxable/(Deductible) temporary differences arising from:
Other receivables
2,704,000
–
36,000
2,000
2,968,000
155,000
38,000
5,000
3,436,000
–
–
–
Deferred tax liabilities (before offsetting)
2,742,000
3,166,000
3,436,000
–
(307,000)
–
–
(57,000)
(1,542,000)
(307,000)
–
(1,599,000)
2,435,000
3,166,000
1,837,000
Deductible temporary differences arising from
other receivables
Unabsorbed capital allowances
Deferred tax assets
Deferred tax liabilities recognised (after offsetting)
22.
ZERO COUPON BONDS - SECURED
The Group and
The Institute
2012
2011
RM
RM
Zero coupon bonds
Less: Accumulated amortisation
Interest charged to profit or loss
18,000,000
18,000,000
(6,595,470)
483,096
(7,058,934)
463,464
At end of year
(6,112,374)
(6,595,470)
Amortised cost
11,887,626
11,404,530
The bonds are secured by way of a fixed charge over the leasehold land and the building erected thereon and
a floating charge over the assets of the Institute.
These bonds carry a 30 year maturity period which is subject to early redemption by the Institute. The
directors of the Institute do not expect to undertake an early redemption of these bonds.
Date of redemption of the bonds is December 1, 2022.
The bonds are measured at amortised cost. The interest expense is calculated by applying an effective interest
rate of 4.2% (4.2% in 2011 and 2010).
Annual Report 2012
135
(cont’d)
23.
TRADE PAYABLES, OTHER PAYABLES AND ACCRUED EXPENSES
Trade and other payables comprise amounts outstanding for trade purchases and ongoing costs. These
payables are non-interest bearing and the credit period granted to the Group and the Institute for trade
purchases ranges from 30 days to 90 days (30 days to 90 days in 2011 and 2010).
Other payables and accrued expenses consist of the following:
Deferred income
Other payables
Accrued expenses
31.12.2012
RM
The Group
31.12.2011
RM
1.1.2011
RM
1,014,871
482,842
1,539,706
1,030,992
487,305
1,591,149
1,255,787
884,906
1,251,230
3,037,419
3,109,446
3,391,923
31.12.2012
RM
Deferred income
Other payables
Accrued expenses
24.
The Institute
31.12.2011
RM
1.1.2011
RM
1,014,871
482,842
1,538,706
1,030,992
487,305
1,590,149
1,255,787
884,906
1,250,230
3,036,419
3,108,446
3,390,923
31.12.2012
RM
The Group
31.12.2011
RM
1.1.2011
RM
2,398,366
20,769,476
3,017,008
18,854,009
1,315,784
16,759,317
23,167,842
21,871,017
18,075,101
31.12.2012
RM
The Institute
31.12.2011
RM
2,375,090
20,531,184
3,000,862
18,615,717
1,306,653
16,521,025
22,906,274
21,616,579
17,827,678
CASH AND CASH EQUIVALENTS
Fixed deposits (Note 12)
Fixed deposits (Note 12)
1.1.2011
RM
Annual Report 2012
136
(cont’d)
The currency profile of cash and cash equivalents is as follows:
Ringgit Malaysia
United States Dollar
Euro
Singapore Dollar
Great Britain Pound
Ringgit Malaysia
United States Dollar
Euro
Singapore Dollar
Great Britain Pound
25.
31.12.2012
RM
The Group
31.12.2011
RM
1.1.2011
RM
23,123,129
22,744
9,986
6,079
5,904
21,523,016
326,040
9,980
6,080
5,901
18,048,975
12,142
8,960
–
5,024
23,167,842
21,871,017
18,075,101
31.12.2012
RM
The Institute
31.12.2011
RM
22,861,561
22,744
9,986
6,079
5,904
21,268,578
326,040
9,980
6,080
5,901
17,801,552
12,142
8,960
–
5,024
22,906,274
21,616,579
17,827,678
1.1.2011
RM
CAPITAL COMMITMENTS
As of the end of the financial year, the Group and the Institute have the following capital commitments in
respect of property, plant and equipment:
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Approved but not contracted for
1,417,400
1,129,000
849,500
Annual Report 2012
137
(cont’d)
26.
RENTAL COMMITMENT
As of the end of the financial year, the Group and the Institute have the following rental commitment in
respect of office premises and equipment:
Future Minimum Lease Payments
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Financial years ending December 31,
2012
2013
2014
2015
2016 onwards
27.
–
1,172,031
964,682
876,964
219,241
523,106
570,903
320,669
69,683
–
445,890
442,770
242,985
43,200
3,600
3,232,918
1,484,361
1,178,445
COMPENSATION OF KEY MANAGEMENT PERSONNEL
Included in employee benefits expense is the following compensation of key management personnel, which
comprises key members of senior management of the Group and the Institute during the financial year:
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Short-term employee benefits
Contributions to EPF
1,315,397
213,380
1,122,535
174,308
890,655
138,255
1,528,777
1,296,843
1,028,910
Annual Report 2012
138
(cont’d)
28.
FINANCIAL INSTRUMENTS
Categories of financial instruments
31.12.2012
RM
The Group
31.12.2011
RM
1.1.2011
RM
5,115,306
23,167,842
3,953,535
21,871,017
3,346,328
18,075,101
461,518
659,102
256,130
–
113,497
–
579,248
437,763
227,822
–
598,436
–
233,982
308,267
209,948
7,550
1,001,585
181,667
1,490,247
1,843,269
1,942,999
Trade payables
Other payables (Note 23)
Accrued expenses (Note 23)
Zero coupon bonds
433,063
482,842
1,539,706
11,887,626
560,314
487,305
1,591,149
11,404,530
217,193
884,906
1,251,230
10,941,066
Other financial liabilities at amortised cost
14,343,237
14,043,298
13,294,395
31.12.2012
RM
The Institute
31.12.2011
RM
5,115,306
22,906,274
3,953,535
21,616,579
3,346,328
17,827,678
461,518
658,678
256,130
43,477
–
113,497
–
579,248
437,640
227,822
38,206
–
598,436
–
233,982
307,821
209,948
32,851
7,550
1,001,585
181,667
1,533,300
1,881,352
1,975,404
Financial assets
Fixed deposits
Cash and cash equivalents (Note 24)
Trade receivables
Other receivables (Note 15)
Refundable deposits (Note 15)
Loans and receivables at amortised cost
Financial assets
Fixed deposits
Cash and cash equivalents (Note 24)
Trade receivables
Other receivables (Note 15)
Refundable deposits (Note 15)
Loans and receivables at amortised cost
1.1.2011
RM
Annual Report 2012
139
(cont’d)
31.12.2012
RM
The Institute
31.12.2011
RM
Trade payables
Other payables (Note 23)
Accrued expenses (Note 23)
Zero coupon bonds
433,063
482,842
1,538,706
11,887,626
560,314
487,305
1,590,149
11,404,530
217,193
884,906
1,250,230
10,941,066
Other financial liabilities at amortised cost
14,342,237
14,042,298
13,293,395
1.1.2011
RM
Fair values
The carrying amounts of all financial assets and liabilities of the Group and of the Institute at the end of the
reporting period approximate their fair values except for the following financial liability:
31.12.2012
31.12.2011
1.1.2011
RM
RM
RM
Zero coupon bonds (Note 22)
Carrying Value
11,887,626
11,404,530
10,941,066
Fair Value
12,118,768
12,041,839
10,943,586
The above fair value is estimated based on Level 2 fair value measurement using discounted cash flow
analysis based on current borrowing rates for similar type of borrowing arrangement.
Annual Report 2012
140
The directors of THE MALAYSIAN INSURANCE INSTITUTE state that, in their opinion, the accompanying financial
statements are drawn up in accordance with Malaysian Financial Reporting Standards, International Financial
Reporting Standards and the provisions of the Companies Act, 1965 in Malaysia so as to give a true and fair view of
the financial position of the Group and of the Institute as of December 31, 2012 and of the financial performance
and the cash flows of the Group and of the Institute for the year ended on that date.
Signed in accordance with
a resolution of the Directors,
Signed
HASHIM BIN HARUN
(DIRECTOR)
Signed
FOONG SOO HAH
(DIRECTOR)
Kuala Lumpur,
April 24, 2013
Declaration by the Officer Primarily Responsible
for the Financial Management of The Institute
I, KHADIJAH ABDULLAH, the Officer primarily responsible for the financial management of THE MALAYSIAN
INSURANCE INSTITUTE, do solemnly and sincerely declare that the accompanying financial statements are, in my
opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of
the provisions of the Statutory Declarations Act, 1960.
Signed
KHADIJAH ABDULLAH
Subscribed and solemnly declared by the
abovenamed KHADIJAH ABDULLAH at
KUALA LUMPUR this 24th day of April, 2013.
Before me,
Signed
COMMISSIONER FOR OATHS
Annual Report 2012
MII City Centre @ Maju Junction Mall
S17-S28, 2nd Floor, (below the food court)
Maju Junction Mall
1001, Jalan Sultan Ismail, 50250
Tel : 03 2691 8233
Fax : 03 2693 2370
Tra n s fo r m at i o n
2012
HEADQUARTERS:
No. 5, Jalan Sri Semantan Satu,
Damansara Heights, 50490
Tel
: 03 2087 8882 / 8883
Fax
: 03 2093 7885
Email : customercare@mii.org.my
Website : www.insurance.com.my
annual report
(35445-H)
PROFESSIONAL SERVICE PROVIDER
OF THE YEAR 2007
EDUCATIONAL SERVICE PROVIDER
OF THE YEAR 2012

MII Annual Report 2012 - The Malaysian Insurance Institute

Transcription

Similar documents

Brief - Juwita Suwito

CYBERJAYA

Citrawarna Malaysia

Ekuinas Expands its Education Portfolio with Investment in

Foreign Workers in Malaysia - Centre for Global Sustainability

MIHRM HR Certification Programmes in collaboration with

DPS - Cyberjaya University College of Medical Sciences

HIGHER EDUCATION TODAY

wfwp malaysia - WFWP-Asia

Malaysia News Bulletin Jun