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DRB-HICOM Berhad (203430-W) 59 Corporate Responsibility We Help Make Things Better 60 Human Resource Development 62 Information Technology 64 Our Environment 65 Calendar of Events 66

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DRB-HICOM Berhad (203430-W)

59

Corporate Responsibility

We Help Make Things Better 60

Human Resource Development 62

Information Technology 64

Our Environment 65

Calendar of Events 66

DRB-HICOM Berhad (203430-W)

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We Help Make Things Better

Through the provision of world class products and services, DRB-HICOM is not only one of the leading business entities in Malaysia, but

also one that has become synonymous with quality. This success however comes hand-in-hand with a corporate social responsibility,

something that DRB-HICOM attests to fully, and strives to uphold, in every aspect of its business and work culture. At DRB-HICOM, social

responsibility is part and culture of the business ethics and the Company consistently supports the social activities in which the society it

operates within.

Through a dedicated pool of resources and funds set aside annually, DRB-HICOM is actively involved in various social activities that

encompass various levels of society, they are mainly for the benefit of the less fortunate, the needy one and for the improvement or

development of a targeted community such as women, children and young society. This includes providing assistance in various forms to

orphans and underprivileged children, the disabled, senior citizens and the needy families. The Company also supports social and welfare

activities, volunteer organisations, women associations, welfare associations and foundations in Malaysia in its effort to reach out to as

many needy Malaysians as possible.

In addition to these groups, DRB-HICOM also provides assistance to non-government organisations (NGOs) such as the Malay Chamber of

Commerce and Industry Malaysia, which strives to develop and assist local entrepreneurs. Support is also given to the joint project with

Ministry of Entrepreneurial and Cooperative Development to aid its efforts in helping nurture young Bumiputera entrepreneurs through the

Young Entrepreneurs Project.

DRB-HICOM Berhad (203430-W)

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DRB-HICOM is also actively involved in the Malay Ping-Pong Championship of Malaysia - DRB-HICOM Chairman’s Trophy, which is in its

third year.

The championship which is organised by the Malay Ping-Pong Association of Kelantan is aimed at seeking and grooming young talent to

excel in the game, with the hope that they will then qualify to be part of the national squad and compete in national and international

tournaments.

Another aspect of DRB-HICOM’s corporate social responsibility involves the collaboration in establishing the temporary National Automotive

Museum at the Sepang International Circuit (SIC) under the auspices of the department of Museum and Antiquities. The objective is to

educate the Malaysian public and create greater awareness on Malaysia’s industrialisation drive which has since propelled the country to

greater heights. DRB-HICOM together with other leading corporate companies in Malaysia participate to showcase the automotive

components and parts produced by the respective company.

Apart from showcasing three units of Modenas motorcycles and a HICOM Perkasa truck, DRB-HICOM also displays automotive components

that are produced by companies under DRB-HICOM. This includes Malaysian Truck & Bus Sdn. Bhd., Oriental Summit Industries Sdn. Bhd.,

HICOM Diecastings Sdn. Bhd., HICOM Engineering Sdn. Bhd., HICOM Teck See Manufacturing Malaysia Sdn. Bhd., PHN Industry Sdn.

Bhd., Siemens VDO Instruments MY Sdn. Bhd., ZF Steerings (M) Sdn. Bhd., TRW Steering & Suspension (M) Sdn. Bhd., HICOM-Honda

Manufacturing Malaysia Sdn. Bhd., HICOM-Suzuki Manufacturing Malaysia Sdn. Bhd. and HICOM Yamaha Manufacturing Malaysia

Sdn. Bhd.

DRB-HICOM Berhad (203430-W)

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Human capital, the driving force behind all work processes, is a main

contributor to our achievements and successes thus far. As we look

into the future, we see again our 31,500 strong workforce rising up

to the challenges of business and change to move us forward. These

challenges, together with the new working paradigm leveraging on

knowledge management, prompted us to take a closer look into the

vital processes of Human Resource function as we strive to develop

our talents as the catalyst for performance.

HUMAN RE SOURCE MANAGEMENT

At DRB-HICOM, we believe that establishing a firm foundation in

management is the key to leveraging on our human capital. To achieve

this, the Human Resource function as a contributing business partner,

has undergone further refinements to retain its value-adding edge.

With the Human Resource Policies and Procedures and Code of

Ethics in place, the strategic initiatives and processes can now move

in unison towards the attainment of the Corporate goals.

DRIVING A PERFORMANCE WORK CULTURE

Being a result-focused Group, the emphasis on managing

competencies through Human Resource Management takes centre

stage in linking human capital with performance. The adoption of

competencies as the enabling agents for performance not only

streamlines Human Resource function but also channels our workforce

contributions to the achievements of DRB-HICOM. In our strive

towards building a performance-focused culture, we are also mindful

to incorporate the Human Resource Scorecard/Benchmarking

exercise for internal improvements as well as a comparative guide

to take us to the forefront. This also gives our Performance

Management System a critical reality impacting on the overall

performance of the Group.

DEVELOPING OUR HUMAN C APITAL

Growing our own talents and nurturing future leaders are part of our

on-going effort to manage our human capital. A talent pool is being

pursued to yield the talents for business continuity and organisational

renewal that will augur well with the needs of the Group as well as

being consistent with sound corporate governance.

In addition, our commitment to human investment and management

of careers provides the template for DRB-HICOM to engineer its

“software” for greater success. To realise this, our DRB-HICOM

Learning Centre (DHLC) has conducted some 100 programmes

benefiting more than 1,700 Group personnel of various levels.

In addition, the development of our human capital necessitated

the participation of our personnel in external workshops, locally and

overseas which befit the requirements of the jobs as well as the

Group. Apart from this, our close association with professional

bodies and institutes of higher learning for the overall growth of

our workforce complemented the pursuit of DHLC to transform

our workforce into knowledge workers.

Human Resource Development

DRB-HICOM Berhad (203430-W)

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S AFET Y, HEALTH AND ENVIRONMENT (SHE)

DRB-HICOM’s continuous effort in providing a safe, healthy and

environmentally friendly workplace to all employees sees the SHE

Department playing a pivotal role in ensuring Group Companies

comply with all statutory and regulatory requirements. Apart from

the SHE audits, our Group SHE Department provides training and

guidance to ensure the attainment of these objectives. Our Group

Companies have also taken initiatives to optimise the usage of raw

materials thus generating less wastes. This is in line with our

aspiration to be an environmentally responsible corporate citizen.

Our SHE Steering Committee continues to set benchmarks and goals

for Group Companies to follow. These include the ILO-OSH 2001

and OSHAS 18000 Safety Management Systems as well as the ISO

14001 Environmental Management System. The emphasis in safety

awareness through SHE initiatives among Group Companies has

seen the reduction of industrial accidents and workdays lost as

compared to the previous year.

INDUSTRIAL REL ATIONS

The highly harmonious industrial relations climate within the Group

is consistent with the Group Policy on Industrial Relations. This is

evidenced through the non-occurrence of labour unrest and industrial

conflict as well as the successful conclusion of seven Collective

Agreements within industrial norms.

As a Malaysian conglomerate with diverse workforce, we pride

ourselves in fair treatment of all employees across the board,

regardless of race, creed and nationality. Despite the challenges

faced, we believe that the manifestation of a greater team

performance is dependent on a favourable working environment.

The healthy industrial relations climate experienced throughout the

Group has further strengthened our resolve and commitment to

develop our workforce at all levels which we believe will be

reciprocated by the value-adding contributions to the overall Group

performance.

DRB-HICOM Berhad (203430-W)

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Information Technology

The DRB-HICOM Technology Division continues its endeavors to

align ICT investment and deployment with the Groups business

objectives and priorities. Now in its third year of implementation,

the Group Strategic ICT Plan is on track to achieve DRB-HICOM’s

goal of being a technology-empowered organisation.

Having set the foundation of the Group’s ICT deployment through

the first strategic thrust of ‘Connect the Group’, and the second

strategic thrust, ‘Rationalise and Centralise Infrastructure’, DRB-

HICOM continues its efforts to elevate the Group’s ICT maturity by

intensifying its implementation efforts in the remaining thrusts

identified in the Strategic ICT Plan.

In line with the ever-increasing reliance of businesses on information

and the growing importance of information assets, the Company

launched the Group Information Security Policy in safeguarding the

confidentiality, integrity and availability of the Group’s information

assets. The exercise aims to equip Group companies with

standardised policies, practices and procedures in handling the

Group’s information assets.

During the financial year under review, emphasis was given to

converge the Group’s portfolio of software applications with the

third strategic thrust. In executing the strategy, an implementation

approach called the ‘Federated Application Architecture’ was

adopted, which provides an enterprise-wide foundation of core,

common applications, across all DRB-HICOM entities. The

framework will specify applications that are common to an industry

cluster whilst at the same time recognising and catering for any

unique application requirements of a company within each cluster.

Another key project initiated during the period under review was

the shared Enterprise Resource Planning (ERP) System adopted by

several of the automotive component manufacturing companies

within the Group. Once completed, the project will result in better

efficiency through the streamlined internal business processes and

supply chain operations of the companies.

The fourth and final strategic thrust of the Group Strategic ICT Plan,

aimed at supporting decision making processes through the provision

of integrated information to all levels of management, also came on

line during the period under review, with the commencement of a

Business Intelligence project. The project will create a common

corporate reporting and analysis mechanism to provide critical

business information and key metrics to gauge the health of business

units within the Group.

With all the four strategic initiatives under the Group Strategic ICT

Plan in place, DRB-HICOM is now well poised to evolve itself into a

technology-empowered group to achieve its vision.

DRB-HICOM Berhad (203430-W)

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Our Environment

W A ST E N OT , W A N T N OT

In a bid to continue its efforts to conserve the environment and

increase the level of awareness on environment preservation, Alam

Flora Sdn. Bhd. (a member of DRB-HICOM) embarked on a unique

project targeted at Malaysian students, who would serve as

“environment ambassadors” and write about their observations and

experiences. The “Waste Not, Want Not” project, which was jointly

carried out with the Newspaper in Education (NIE) unit of the New

Straits Times (NST), was highly successful as the “environment

ambassadors” took turns to interview the personnel involved and

write in-depth articles on the importance of waste management,

seven of which were published in the NST.

The initiative involved a field trip for the 37 students aged between

11-14 years to visit a solid waste management plant and understand

the processes involved. This also included an overview of the waste

management industry in Malaysia, along with general tips and

education on how to embark on environmentally-friendly practices

such as recycling, source separation, scavenging at landfill sites

and composting. In addition to being given insights into waste

management, irresponsible waste disposal and littering issues were

also discussed with the students.

The students were also taken to the Kuala Lumpur Transfer Station

(KLTS) plant where they learnt how waste was transferred to the

landfill in Puchong. In addition to this, they were also given a briefing

on Alam Flora’s various environment conservation efforts, including

its recycling buy-back centre at the KLTS compound which is

open to the public. As part of their education process, a workshop

was held at the NST’s premises, whereby several Alam Flora

representatives spent time reiterating the importance of recycling

and waste management. The entire process culminated in the seven

articles which were then published in the NST, aimed at a wider

audience.

The “Waste Not, Want Not” project with the NST is among the

various initiatives Alam Flora has embarked on in an effort to

instill greater awareness on the importance of effective waste

management practices and recycling, particularly amongst the

younger generation.

DRB-HICOM Berhad (203430-W)

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18-21 April 2003

DRB-HICOM Berhad participated in the

annual Unit Trust Week Exhibition organised

by Permodalan Nasional Berhad.

23 April 2003

HICOM Communications Sdn. Bhd. entered

into Smart IT Partnership with ASPen Sdn.

Bhd., a member of Kumpulan Darul Ehsan

Berhad (KDEB) Group, to strengthen its

position as one-stop ICT solution and

service centre.

25 April 2003

Launch of the new Honda City by Y.Bhg.

Tan Sri Dato’ Seri (Dr.) Mohd Saleh Sulong,

Group Chairman, DRB-HICOM Berhad.

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29 April 2003

Launch of the DRB-HICOM Group Safety

Campaign 2003.

6 May 2003

Launch of Uni.Asia new name and logo

for Sea Insurance Berhad and EON CMG

Life Assurance Berhad and the renaming

of the Menara Sea Insurance to Menara

Uni.Asia by Y.B. Dato’ Dr Jamaluddin

Haji Mohd Jarjis, Minister of Finance II

(currently Minister of Science, Technology

& Innovation), who was represented

by Y. B. Dato’ Chan Kong Choy, Deputy

Minister of Finance (currently Minister of

Transport).

10 May 2003

Launch of the new Modenas “Kris 2”

110cc.

3 June 2003

Directional (Malaysia) Sdn. Bhd. launched its

new model, the Citroen C3 at the lobby of

Wisma DRB-HICOM, Glenmarie, Shah Alam.

3-5 July 2003

The 3rd CEOs’ Conference was held in

Rebak Marina Resort, Langkawi, Kedah with

“Passion For Excellence” as the theme.

A total of 70 Chief Executive Officers and

Senior Management of DRB-HICOM

Berhad attended the Conference.

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Calendar of Events

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9 July 2003

A media cruise was organised by Glenmarie

Cove Resort Sdn. Bhd. to introduce to the

members of the media on the new property

development project along Sungai Langat

by the company.

17 July 2003

Four of PUSPAKOM inspection centres

were awarded with MS ISO 9002 by SIRIM

Berhad. The centres include Muar, Mak

Mandin, Alor Gajah and Kuala Terengganu.

1 August 2003

DRB-HICOM Information Technologies

Sdn. Bhd. (DHIT), contributed the Komnas

computers to Sekolah Rendah Kebangsaan

Keratong 10, Rompin, Pahang in a ceremony

officiated by Y.B. Dato’ Dr Jamaluddin Dato’

Haji Mohd Jarjis, Minister of Finance II

(currently Minister of Science, Technology

& Innovation).

5 August 2003

DRB-HICOM Defence Technologies Sdn.

Bhd., (DEFTECH), concluded a three years’

deal with Russian-based JSC Scientific

Production Corp IRKUT’s Be-200

Amphibious aircraft as sales agent for

Malaysian and South East Asian market.

7 August 2003

Motorsikal dan Enjin Nasional Sdn. Bhd.

(MODENAS) and Edaran Modenas Sdn.

Bhd. (EMOS), hosted the official launching

and safety riding campaign officiated by

the Minister of Human Resources, Y.B.

Datuk Dr. Fong Chan Onn. The programme

targeted at workers with motorcycles was

sponsored by the National Institute of

Occupational Safety and Health (NIOSH).

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DRB-HICOM Berhad (203430-W)

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14-17 August 2003

The Human Resource practitioners turned

out in full force for DRB-HICOM Group

Human Resource Conference 2003 held

at the Riviera Bay Resort, Malacca with

thought provoking sessions from industry

movers and shakers who were invited as

speakers at the Conference.

23 August 2003

Three new MODENAS’ scooters namely

Elit, Dinamik dan Ceria were launched by

the Prime Minister, Y.A.B. Dato Seri (now

Tun) Dr Mahathir Mohamad (now retired) at

the Legend Hotel, Kuala Lumpur.

24 August 2003

DRB-HICOM Defence Technologies Sdn.

Bhd., (DEFTECH), received visit by the top

senior management of the Government

led by Y.Bhg. Tan Sri Samsudin Osman,

Chief Secretary General.

31 August 2003

DRB-HICOM Berhad and its Group of

companies participated in the Merdeka Day

Parade held for the first time at Putrajaya,

Selangor.

2 September 2003

Launch of HICOMOBIL Chevrolet by the

Deputy Prime Minister. Y.A.B Dato’ Seri

Abdullah bin Haji Ahmad Badawi (currently

Prime Minister of Malaysia).

4-14 September 2003

DRB-HICOM Group of companies participated

in the Kuala Lumpur International Motorshow

(KLIMS 2003) exhibition at Putra World

Trade Centre. The Chevrolet models i.e the

Optra, Aveo, Nabira and the Lumina were

being displayed for the first time to a large

audience.

17-19 September 2003

DRB-HICOM Berhad and HICOMOBIL Sdn

Bhd brought a group of 30 journalists to

General Motors (Thailand), Ltd in Rayong,

Pattaya to test drive the new Chevrolet

Optra, which is manufactured at General

Motors plant in Thailand. The 200 km “Ride

& Drive” was designed to highlight the

many strong qualities of the Optra.

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18 September 2003

DRB-HICOM Berhad held its 13th Annual

General Meeting.

30 September 2003

DRB-HICOM Berhad and Jaring signed a

Strategic Partnership Agreement for the

creation of Virtual Private Network.

20 October 2003

In conjunction with the World Environment

Day, Alam Flora Sdn Bhd ran a two-month

campaign in selected major newspapers for

the public to nominate deserving Alam Flora

workers. The announcement was made in

a simple yet meaningful ceremony graced

by Y.B. Datuk Peter Chin Fah Kui, Deputy

Minister of Housing and Local Government,

(currently Minister of Plantation Enterprises

& Comodities).

4 November 2003

The long awaited 7th generation Honda

Accord was officially launched by Y.Bhg.

Tan Sri Dato’ Seri (Dr.) Mohd Saleh Sulong,

Group Chairman, DRB-HICOM Berhad.

The Honda Accord was launched in three

versions - 2.0 Vti, 2.4Vti-L and 3.0 V6.

18 November 2003

DRB-HICOM Berhad held a Breaking Fast

Dinner with 64 orphans from Associaiton

of Orphans and Poor Children, District of

Kuala Langat and the members of media.

24 December 2003

Kelab Sukan DRB-HICOM held its annual

Hari Raya Feast, attended by DRB-HICOM

staffs with Tan Sri Dato’ Seri (Dr.) Mohd

Saleh Sulong and wife as guests of honour.

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29 December 2003

DRB-HICOM Berhad signed a strategic

partnership with Fuji Xerox Asia Pacific Pte

Ltd (Malaysia Operations), to provide

Document Management Solutions for

Rawang-Ipoh Electrified Double Track

Project.

29 January 2004

Alam Flora’s solid waste management

contract in Pahang was officially renewed

for another year at a simple signing

ceremony at Kota Permai Golf & Country

Club in Shah Alam.

18 February 2004

DRB-HICOM Berhad signed a Memorandum

of Understanding (MOU) with Kolej Universiti

Teknikal Kebangsaan Malaysia (KUTM) to

offer on-job-training to students of the

college.

26 February 2004

Pusat Pemeriksaan Kenderaan Berkomputer

Sdn. Bhd. (PUSPAKOM) made its collaboration

with AmFinance Berhad when both parties

signed an agreement to implement a

vehicle inspection scheme. Under the two-

pronged scheme, PUSPAKOM will inspect

all vehicles repossessed by AmFinance

before approval of financing to vehicle.

28 February 2004

Alam Flora and the Putrajaya Municipality

joined forces with the Ministry of Housing

and Local Government to launch the

Putrajaya Recycling Programme. The

programme was launched by the Housing

and Local Government Minister, Y.B. Dato’

Seri Ong Ka Ting, in Putrajaya, Selangor.

29 February 2004

MODENAS’ new, sleek and chic scooter,

the 150cc Elegan was unveiled to an

admiring crowd in Shah Alam in a

ceremony at Pan Pacific Glenmarie Resort.

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Calendar of Events

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1 March 2004

Group Information Security Policy was launched

by DRB-HICOM Group Chairman, Y.Bhg. Tan

Sri Dato’ Seri (Dr.) Mohd Saleh Sulong.

8 March 2004

HICOM Teleservices Sdn. Bhd. a subsidiary

of HICOM Communications Sdn. Bhd., was

appointed the Value Added Reseller (VAR)

for LaserFiche Document Imaging in

Malaysia by California-based Compulink

Management Center.The appointment had

broken new ground in terms of cross-border

business dealings between the two

companies.

13 March 2004

An Extraordinary General Meeting (EGM) held

by DRB-HICOM Berhad at the Pan Pacific

Glenmarie Resort accepted the motion to

approve the proposed disposal of the assets

of Intrakota Komposit Sdn Bhd, comprising

mainly of buses and landed properties, to

Syarikat Prasarana Negara Berhad (SPNB).

16 March 2004

In a special ceremony, the Menteri Besar

of Perak, Y.A.B. Dato’ Seri DiRaja (Dr.)

Mohamad Tajol Rosli Bin Tan Sri Mohd

Ghazali, handed over the keys and the

certificate of fitness to owners of Damania

Apartments, developed by Proton City

Development Corporation Sdn. Bhd.

(PCDC), in Tanjung Malim, Perak.

18 March 2004

Official visit by Y.A.B Dato’ Sri Mohd

Najib Tun Haji Abdul Razak, Minister

of Defence, to Malaysian Truck & Bus

Sdn. Bhd. (currently Deputy Prime Minister

of Malaysia).

18 March 2004

Y. B. Dato’ Seri Chan Kong Choy, Minister

of Transport did the honour of officiating

the ground breaking ceremony on the

massive 160-hectare site of Batu Gajah’s

new railway station in Kampung Pisang,

Batu Gajah, Perak.

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