Scomi Group Bhd Corporate Communication Practice: Corporate Event An analysis on the Corporate Communication Practice in highlighted on Corporate Event of Scomi Group Bhd. Lim Sie Eng, Chong Jun Wei, Povilas, Negar 11/11/2009

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Table of Contents

About Scomi

Company Profile ....................................................................................................................... 4

Corporate Statement................................................................................................................. 5

Core Business ........................................................................................................................... 6

Corporate Structure .................................................................................................................. 7

Code of Conduct ................................................................................................................. 8 - 13

Whistleblower Policy ............................................................................................................... 14

Milestone ......................................................................................................................... 15 - 17

Key Public ............................................................................................................................ 18 - 20

Shareholder

Government

Employee

Community

Media

Customer

Corporate Responsibility ...................................................................................................... 21 - 34

Investor Relation

Government Relation

Employee Relation

Community Relation

Customer Relation

Media Relation

Corporate Event as a mean................................................................................................... 35 - 38

Buka Puasa Dinner

Scomi Premier League

Scomi Family Day

Monorailex 2010

Reaching out to our customer

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Challenges faced by organization.......................................................................................... 39 - 40

Key Success factor ...................................................................................................................... 41

Internal Affairs

External Affairs

Recommendation....................................................................................................................... 42

References........................................................................................................................... 43 - 44

Appendix ............................................................................................................................. 45 - 49

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About Scomi

COMPANY PROFILE

Scomi Group Bhd, a global service provider mainly in the oil and gas industry, is a company

listed on the Main Market of Bursa Malaysia. Achieving RM1.97 billion or USD544 million in

2009. Scomi employs over 5,000 employees in 60 locations in 29 countries.

Scomi was listed on 13 May 2003 on the Second Board of Bursa Malaysia. It was transferred

to the Main Board which is now known as Main Market just a year later on 13 May 2004.

Other public listed companies within Scomi Group are Scomi Engineering Bhd and Scomi

Marline Bhd which are listed on Bursa Malaysia, and PT Rig Tenders which is listed on

Jakarta Stock Exchange.

Scomi’s ability to harness the synergies between its varied businesses has seen it transform

itself to become an integrated solutions provider in niche markets. Scomi’s subsidiary and

associate companies are involved in the following wide range of activities worldwide.

(Company Profile, 2010)

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CORPORATE STATEMENT WE ARE A GLOBAL TECHNOLOGY ENTERPRISE.

Our global reach, capabilities and talent provide us with the necessary resources to develop and own new technology in all areas of our business. WE FOCUS ON ENERGY & LOGISTICS.

All of our 3 business units are focused in the Energy and/or Logistics sectors with the ability

to compete globally. All of us in the Scomi family should remember that any new initiatives we undertake will

focus on these areas of business.

WE PROVIDE INNOVATIVE SOLUTIONS.

We innovate to respond to an evolving environment. Our products and operations meet today’s needs while anticipating tomorrow’s. We are committed to developing competitive and innovative solutions to create effi ciency, add value and grow with our customers to shape our future.

WE AIM TO REALISE POTENTIAL FOR OUR STAKEHOLDERS.

• Our customers: We will develop and offer customers innovative and competitive products and services that help them grow their business. • Our shareholders: We are committed to providing long-term superior returns to our

shareholders. • Our people: We aim to provide our employees with developmental opportunities so they

can succeed on personal and professional levels.

• Our suppliers: We will treat our suppliers as our partners in the mutual interest of business growth.

• Our society / environment: As a good corporate citizen, we will give back to the communities we operate in worldwide. (Scomi Annual Report, 2009)

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CORE BUSINESS

Oilfield Services, which comprises integrated drilling fluids and drilling waste

management solutions, OCTG machine shops and distribution of oilfield products

and services.

Transport Solutions – which comprise of rail, monorail and buses for the

transportation sector and special purpose vehicles for th aviation, health, defense,

commercial and rescue services.

Energy Logistics, which provides marine vessels for the coal and oil and gas industry.

Production Enhancement, which comprises industrial and production chemicals

division; and gas business, which mainly provides gas processing equipment.

(Company Profile, 2010)

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CORPORATE STRUCTURE

(Corporate Structure, 2010)

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CODE OF CONDUCT

The Directors and Management of Scomi Group Bhd, together with that of its subsidiary and associated companies (the “Scomi Group”) are committed to adhering to the best practice in corporate governance and observing the highest standards of integrity and behaviour in all activities conducted by the Scomi Group, including the interaction with its customers, suppliers, shareholders, employees and business partners, and within the community and

environment in which the Scomi Group operates.

All employees of the Scomi Group play an important role in establishing, maintaining and enhancing the reputation, image and brand of the Scomi Group and ensuring the

observance to and compliance with the standards of integrity and behaviour that the Scomi Group is committed to. It is required that employees display the highest levels of

professionalism in all aspects of their work and comply with this Code of Conduct (the “Code”) and all applicable laws, regulations and other policies applicable within the Scomi Group.

Objective

2.1 Purpose of the Code a) This Code provides ethical and legal guidance to all Affected

Personnel in the conduct of their business and that of the Scomi Group.

b) This Code provides a common behavioural framework for all

employees of the Scomi Group, irrespective of their specific job or location. However, it is not intended to be all–

encompassing and there are areas in which the Scomi Group

has developed or will develop specific detailed policies. This Code is to be read and applied in conjunction with such

policies.

2.2 Applicability of the Code

a) This Code applies to all Directors and employees of the Scomi Group (the “Affected Personnel”).

b) The standards set out in this Code extend beyond normal working hours, and apply to Affected Personnel fulfilling their roles while on the business of the Scomi Group, including after hours functions, conferences and social activities.

c) It is a condition of employment and/or appointment with the Scomi Group that all Affected Personnel comply with this Code and all applicable laws, regulations and other policies of

the Scomi Group and failure to comply may result in the commencement of disciplinary proceedings that may lead to

termination of employment and/or appointment.

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2.3 Confirmation of

Compliance

a) All employees of the Scomi Group of grades 17 and above

shall be required to confirm their receipt and understanding of the Code and shall further be required to certify their

continued compliance with the Code on a semi annual basis.

General Principle

3.1 Compliance with Laws

a) The Scomi Group operates in a highly regulated business environment and its activities are subject to numerous laws, regulations and licensing conditions. Affected Personnel must ensure that they familiarise themselves with the laws, regulations and licence conditions applicable to their activities. If in doubt, Affected Personnel are to seek advice.

b) Affected Personnel activities and the business activities of the Scomi Group must be conducted in absolute compliance with

applicable laws and regulations.

c) Scomi Group aims to provide a safe working environment for its Affected Personnel and for its customers and other

business partners. Employees must work safely and adhere to appropriate industry practices and laws to protect the health,

safety and wellbeing of employees, customers and other business partners.

3.2 Fair Dealing a) The aim of Scomi Group is that it provides an environment in which all Affected Personnel, customers, suppliers and other

business partners are treated fairly and equitably irrespective of, amongst others, sex, race, sexual orientation, age,

disability, and religion or ethnic origin. Affected Personnel are to conduct themselves and the business activities of the

Group to facilitate these aims being achieved.

b) Scomi Group will compete effectively and fairly in the markets in which it operates. It will be honest, ethical and responsible in the way it presents products and services to its customers, uses its market power and its pricing practices.

c) Scomi Group will be fair, honest and transparent in its relationship with suppliers and contractors from selection

through to payment and termination of the relationship.

d) All commercial transactions will be properly and accurately recorded and documented.

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e) Corrupt practices, whether directly or through intermediaries,

are unacceptable. No bribes or improper payments, gifts or inducements will be made to, or accepted from, any party,

irrespective of local business custom and practices. However, in recognition of the reality of commercial and business

practices, the Scomi Group acknowledges that modest gifts and reasonable entertainment are acceptable as part of the

normal course of business provided that such gifts or entertainment are not supplied, or received, in circumstances

indicating an inducement or reward has been given, or received.

3.3 Confidentiality & Protection of Company Assets

a) Affected Personnel must keep confidential all information that would reasonably be considered to be confidential, including but not limited to terms and conditions of contracts entered into by the Scomi Group, employee and customer

details, performance and financial details and policies and procedures of the Scomi Group.

b) The Scomi Group will maintain the privacy of confidential

information relating to its Affected Personnel and customers.

c) Assets and confidential information should be fully protected and must not be used by Affected Personnel for personal gain or for any other reason that is not in the best interests of the Scomi Group.

d) Misappropriation of property owned by the Scomi Group, Affected Personnel, customers or suppliers will not be tolerated. Any misappropriation should be immediately reported and properly investigated. Appropriate disciplinary and or legal action will be taken.

3.4 Conflicts of Interest

a)

Affected Personnel are to act in the best interests of the Scomi Group.

b) Affected Personnel must not engage in activities that directly

or indirectly involve, or could appear to involve, a conflict between their personal interests and the interests of the

Scomi Group.

c) Areas where conflicts might arise include: substantial share ownership in competing organisations, direct or indirect

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personal interest in contracts, dual employment with outside

organisations or seeking or accepting gifts or entertainment beyond levels considered reasonable in the business

environment of the Scomi Group.

d) Any actual or potential conflicts of interest are to be fully disclosed to appropriate management and/or Board of

Directors and where such circumstances are permitted by management and/or the Board of Directors to continue, shall

not be deemed a breach of this Code.

3.5 Reporting Non-Compliance

a) Affected Personnel are to report genuine suspicions of non-compliance with this Code.

b) The reporting of non-compliances with this Code may either be made to the appropriate supervising manager and/or

Board of Directors or may be done in accordance with the Whistleblower Framework and Policy which shall be a safe

environment in which to speak up without fear, reprisal or victimisation.

Specific Principles

4.1 Employees a) Scomi Group envisages itself as an equal opportunity employer and aims to:

(i) make human resource decisions on the basis of merit

with the information available to it, including the possession of skills, experience, qualifications and

characteristics relevant to the performance of work; (ii) ensure unlawful discrimination does not occur in the

workplace or in circumstances arising out of the employment relationship;

(iii) maintain a workplace free from sexual harassment, unfair discrimination or other offensive conduct; and

(iv) promote a work environment in which individuals have the opportunity to develop and realise their full potential.

b) An employee who is found to be in breach of this Code, other Scomi Group policies or applicable laws will be subject to

disciplinary action. Inappropriate conduct or performance, or non-compliance issues will be brought to the attention of the

employee who will be allowed to respond to any allegations. Except in the case of summary dismissal for serious

misconduct, employees should be given a reasonable chance to remedy the inappropriate conduct or performance.

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c) Any grievances with respect to an employee’s employment, treatment, the action of other staff members, customers or

suppliers or compliance with this Code or other policies should be raised.

d) The Global People Policy sets out these policies in more detail

and must be complied with, with such variations as are necessary from jurisdiction to jurisdiction as set out in the

relevant Country People Policy.

4.2 Occupational, Health, Safety & Environment

a) It is envisaged that the Scomi Group will conduct its business activities and operations in a safe manner and in an environment that prevents, to the extent possible, injury to its Affected Personnel, customers, suppliers and contractors.

b) Scomi Group endeavours to ensure that the Scomi Group will reduce the environmental impacts of its business activities and will seek to do this through continual improvement of environmental performance, protection and safety.

c) Scomi Group is committed to provide effective support and training for the employees of the Scomi Group to assist them in their responsibilities of ensuring a safe workplace and reducing the environmental impacts of their activities.

4.3 Know Your Customer(“KYC”) and

Proper Documentation

a) Employees are required to conduct due diligence on new customers, suppliers and business partners of the Scomi

Group (including any intermediaries acting on behalf of such customers, suppliers and business partners) and monitor their

activities to identify any issues of concern.

b) Employees are required to ensure that payments in respect of all transactions and business activities of the Scomi Group are properly documented to indicate that such payments are

made to the proper party for legitimate purposes and in respect of which proper consideration has been received.

Administration

5.1 Publication of the Code

This Code will be available at all venues and places of employment in the Scomi Group.

5.2 Continual The appropriateness and effectiveness of this Code will be

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Improvement continuously monitored and appropriate agreed improvements

and reporting procedures will be adopted where necessary.

5.3 Amendments and Updates

a) This Code may be updated from time to time. Affected Personnel will be required to comply with the Code as updated.

b) Amendments to this Code must be approved by the Board of Directors.

c) All updates and amendments are to be communicated to Affected Personnel.

5.4 Questions about this Code

Questions about this Code and its application by employees should be directed to their Manager or Human Resources.

(Code of Conduct, 2010)

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WHISTLEBLOWER POLICY

“Whistleblowing”, in the context of the Capital Markets & Services Act 2007 (“CMSA”),

involves the disclosure of information to the relevant authorities by auditors and specific employees of a public-listed company, who in the course of carrying out their duties, discover breaches of the securities laws or the rules of the stock exchange or any matter which may adversely affect, to a material extent, the financial well being of the said listed company.

In tandem with provisions of the CMSA, which offer protection to such persons against harassment or victimisation as a result of such disclosures, companies are encouraged to establish internal procedures for handling employee concerns, to assist companies to address any shortcomings within its processes, and to facilitate good governance practices.

All employees of the Scomi Group of Companies play an important part in maintaining the

highest level of corporate ethics within the Group, and have a professional responsibility to disclose any known malpractices or wrongdoings. The Structure adopted by the Group

establishes a clear line of communication and reporting of Disclosures for employees at all levels, and provides alternative lines of communication depending on the person(s) who is/are the subject of such Disclosure.

The Whistleblower Policy applies to all employees of the Group and is designed to enable them to raise concerns internally at a high level, and to disclose information which he reasonably believes shows malpractice or impropriety. The Whistleblower Policy is intended

to cover matters which are of public concern and may at least initially be investigated separately, but may then lead to the invocation of other internal procedures, for example

disciplinary proceedings. These matters may include, but are not necessarily limited to the following areas:

financial malpractice, impropriety or fraud;

failure to comply with laws or regulations;

dangers to health & safety or the environment;

criminal activity;

improper or unethical conduct or behaviour;

non-compliance with Group or Group Company policies and procedures;

sexual harassment; and

attempts to cover-up any of the above matters

Whistleblowers can make the disclosures electronically through the Scomi Group Bhd. Intranet, in writing or verbally to the Disclosure Officer. As far as reasonably practicable, Disclosures should be made privately and in person to the Disclosure Officer. Whistleblowers can choose to remain anonymous as the company has put in safeguards to protect the identity of the Discloser. (Whistleblower Policy, 2010)

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MILESTONE

2008

1st Half

Scomi engineering Bhd has the mandate to prepare a feasibility study for the

implementation of the monorail system in Hanoi, Vietnam.

Scomi is among the three companies short-listed for the monorail project in

Mumbai, India.

Scomi has been approached to undertake studies for the implementation of

monorail systems in Riyadh, Saudi Arabia, Bangalore, India and other countries.

The completion of the disposal of Scomi Engineering’s 100% equity interest in Scomi

Transportation Solutions Sdn Bhd (SCOTS) to ALD Automotive Sdn Bhd on 31 March

2008.

2nd Half

In November Scomi aunched ‘Formula 2011” a global 3-year initiative to grow

returns, technological innovation and be recognised by customers as the best.

Scomi tendered a proposal in December for a rights issue of 500 million new shared,

which is expected to raise Rm120 million.

Wave 2 of SAP, Scomi’s Global Operating Platform went live in November in MENAT

and Europe.

Scomi Engineering was awarded the Mumbai Monorail project valued at RM1.8

billion in Nov 2008.

Scomi Engineering made an investment of RM30 million for the extension of Scomi’s

North KL Facility.

Scomi Oiltools won its first drilling waste management contract with BP Norway

using a new green technology.

Scomi Oiltools in Aberdeen unveiled its new £10 million quayside plant to boost its

drilling fluids technology.

Scomi Marine announced an expansion move to acquire 2 Anchor Handling Tugs and

Supply (AHTS) vessels every year and an Accommodation Barge in 2009.

In July Scomi Marine was awarded a Contract of Affreightment by TNB Fuel Services

Sdn Bhd to supply shipping services for the transportation of bulk coal for 3+2 years,

with an estimated contract value for the 3 years of RM426.56 million.

Scomi Marine declared an interim tax exempt dividend of Rm1.40 per ordinary share

in November.

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2009

1st Half

Ground Breaking Ceremony of the Mumbai Monorail project graced by the

Honourable Chief Minister of the Government of Maharashtra, Mr. Ashok Chavan.

Scomi Coach/SPV launched its Service, Warranty. After-Sales, & Technical (“SWAT”)

centre, a one-stop service centre and convenient after-sales service for busses.

Scomi OMS Oilfield Services Pte.Ltd, Singapore, received the “Best Overall VAM

Licensee” award by Vallurec & Mannesmann Oil & Gas France (V&M), a world

leading manufacturer of Oil Country Tubular Goods (OCTG) product.

2nd Half

Csomi Group embarked on a renounceable Right Issue of Irredeemable Convertible

Secured Lan Stocks (ICSLS) of RM165 million which raised RM151.6 million.

Scomi Oiltools won 1st Drilling Fluid contract in South Venezuela.

Scomi Oiltools scored a win in Indonesia with its 1st Drilling Fluids contract for major

client, Chevron.

Scomi Rail signed a Joint Bidding Agreement with CR Almeida S.A. Engenharia de

Obras (“SR Almeida”), a leading Brazilian construction company enabling joint

marketing and submission of proposals for monorail projects in Brazil.

Scomi Engineering signed a Joint Bidding Agreement with Geodesic Techniques Pvt.

Ltd. (“Geodesic”), a leading engineering design & structural company based in India,

for a proposal to build a 59 KM Monorail in Bangalore.

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2010

1st Half

Comi delivered the first Monorail car to Mumbai. Scomi is among the three

companies short-listed for the monorail project in Mumbai, India.

The first Monorail car for the Mumbai Monorail project successfully completed test

run in conjunction with India’s Republic Day.

Scomi Marine completed the disposal of 29.07% equity interest in CH Offshore Ltd

Falcon Energy Group Limited

Scomi Marine entered into a Sale Shares Agreement with ANZ Capital Sdn Bhd and

Mirapo Sdn Bhd to acquire 600,000 ordinary shared of RM1.00 each in Trans

Advantage Sdn Bhd.

2nd Half

Mumbai’s First 4-car monorail set was inaugurated by the Commissioner of Mumbai

Metropolitan Region Development Authority at Scomi’s North KL Facility.

Scomi Engineering completed the sale of its Machine Shop business to Sumitomo.

Scomi Marine entered into heads of agreement with PT Rig Tenders Indonesia TBK

(PTRT) and Portside Offshore Inc. (POI), which is owned by a privately managed

Indonesian fund, in relation to PQI acquiring a significant stake in PTRT.

(Milestone, 2010)

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Key Publics SHAREHOLDER

Shareholders are the first modal and asset of an organisation because they are the supporter of

financial for the company. Scomi Group Bhd is heavily in Shareholder relation because shareholders

play a important role in their organisation.

Scomi Group done a good CSR and provide the sufficient information for the shareholder about the

development in a company and understand the implications of these developments of the

organisation. Scomi Group will ensure that they will always a positive engagement with Shareholders

to provide a good understanding of the company’s business, its prospects and the risks.

Shareholders relation is both a financial discipline and corporate communication function. (Argenti,

pg 144)

GOVERNMENT

Government relationship is very vital in every organization. The government – legislative

and regulatory branches of federal, state and local jurisdictions – constitutes an audience no

less important than customers, consumers, investors, media and activist. It is particularly

important that messages sent to various governmental audiences are consistent with those

that have been woven into any communication strategies targeted at other strategic public.

(Government relation, 2002)

Scomi is aware that having good governmental relationships will help the organization to

grow more easily as they will have less obstacles. They portray their image that favours the

state, and the state in return grant them their approval.

EMPLOYEES

One of the most important key public for Scomi Group Bhd is their Employee and they name it as

their company assets. Every employer needs to maintain a good relationship with their employee.

The function of maintaining good relationship is to getting and keeping the employees solidly behind

the organization’s as the they will be more committed to the organization.

On the other hand, the other function of employee relationship is to ensure that the employees

know that they are important in the organisation. Scomi come out with a lot of CSR program,me

such as training for the employee to make sure they are on the track of the company, share the

same mission and vision and achieve it together.

In the communication, the CSR programme will help the employee in removing the communication

resistance between the employer and employee and different department of employee. This is one

of the functions in employee relationship as this will make easy in the running of the company. This

is because they know each other well and for sure their work will done smoothly and more

productive.

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COMMUNITY

Scomi Group believe that the philosophy will lead them a successful company not only by

the achievement of its business goals, but also by the integration level into the society and

creating a positive impact on communities that it operates in.

While managing the organisation operations responsibly and effectively, and contributing to

social and economic development, Scomi Group fully recognise that the long-term success

depends on the strength of the relationships between the organisation and community. By

applying the corporate social responsibility programmes in the company, the strategic

initiative that helps the organisation manage and create value for the company and the

society in general.

Undeniably, communities are stakeholders for an organisation to operate. The organisation

needs their resources, infrastructure, markets, and workforce to thrive.

Undeniably, communities hold our franchise to operate, and we need their resources,

infrastructure, markets, and workforce to thrive. In line with this, we are actively involved in

various causes that benefit the community, either by providing financial support, our

expertise, or other resources whenever the opportunity presents itself. We contribute

either directly through our employees, customers, and suppliers, in our plants, and through

our many non-profit partners around the world. (Our approach, 2010)

MEDIA

A good relation with media is important for any kind of business and firm. Media is a tool for

an organisation to help in publishing the philosophy, identity, image and the operation of a

organisation to the public.

Scomi Group has a good relationship with the media to make easier for them to publish the

services and product to the world. Media can help a lot in an organisation as they ca n easily

reach the mass audience.

CUSTOMER

Customer relations is the process by which companies promote customer satisfaction and,

moreover, loyalty. At its most basic, it involves managing communications with customers,

particularly customer questions and complaints, and resolving disputes amicably. The

ultimate goal of most customer relations programs is to build long-term relationships with

customers. To meet this goal, companies may go to great lengths to build a strong

reputation for lavishing their customers with special services, discounts gifts or other

benefits.

Scomi has been always there to examine their customers’ needs and make sure their cater

products and services that satisfy their expectations. The rationale behind is to keep them

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customer and to make more profit out of them, as well as keep the business growing.

(Customer Relation, 2010)

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Corporate Responsibility

Our Approach

At Scomi, we fully subscribe to the philosophy that a successful company is defined not only

by the achievement of its business goals, but by how well it integrates into the very fabric of society and creating a positive impact on communities that it operates in.

While managing our operations responsibly and effectively, and contributing to social and economic development, we fully recognise that our long-term success depends on the strength of our relationships with the community. We view our corporate social responsibility programmes as a strategic initiative that helps us manage and create value for our company and the society in general.

Undeniably, communities hold our franchise to operate, and we need their resources, infrastructure, markets, and workforce to thrive. In fact, we owe them our integrity, and our

ability to offer jobs and community support. In line with this, we are actively involved in various causes that benefit the community, either by providing financial support, our

expertise, or other resources whenever the opportunity presents itself. We contribute either directly through our employees, customers, and suppliers, in our plants, and through

our many non-profit partners around the world.

Scomi, through its corporate social responsibility programmes, touches the lives of thousands of people every day in the community. (Our approach, 2010)

Investor Relationship

1. Shareholder Engagement

Scomi is committed to continuous engagement with its investors and key stakeholders which include the investing community and shareholders. By utilising various modes of communication, we ensure that they are informed on the Group’s latest developments, quarterly results and latest announcements in a timely manner. Scomi’s Investor Relations team regularly engages with the investing community and shareholders to share updates and developments relating to the Group. This is done via regular meetings, briefings and participation in conferences and road shows (both locally and internationally) to keep key stakeholders and potential investors abreast on the latest development of the Group. Whilst doing so, we are always mindful of our obligation to ensure that we announce any material information to Bursa Malaysia beforehand. (Shareholder Engagement, 2009)

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Government Relationship

Y.B MITI Minister Dato’ Mustapa Mohamed led the Trade and Investment Mission to

Mumbai, Bangalore and Chennai, India from 28 October – 3 November 2009. Besides officers from MITI and its agencies MATRADE and MIDA, the mission was also participated

by Y.B Datuk Patinggi Tan Sri Dr. George Chan, Deputy Chief Minister Sarawak and Y.B Dato’ Perumal Raju, Exco Member of Melaka State Government.

Two signings of Memorandum of Agreement between SCOMI Engineering Berhad with

Geodesic Techniques Pte. Ltd and between SCOMI International Pvt. Ltd. with Artevea Digital Limited proves that Scomi is being part of Malaysia government’s Trade Mission to

India. (Economic Trend, 2009)

Employee Relationship

Scomi’s Formula 2011 initiative aims to empower our people, harness their capabilities, unlock their potential and motivate them to epitomise the values of the Scomi brand, with the ultimate goal of producing or supplying superior products and services as a recognised

Global Technology Enterprise.

Ancillary to our brand vision of “Realising Potential”, Scomi offers its workforce multiple opportunities for personal and career skills talent development. The structured training and development programmes we provide our workforce forms the forefront of our human capital development initiatives and include coaching and mentoring to encourage unimpeded communication and constructive feedback. The nurturing of our people is further complemented by Scomi’s focus on providing them with a workplace environment that is governed by the key principles of safety, health, security and a sense of camaraderie through employee engagement initiatives such as the Project Pyramid where cross functional teams work together to achieve their own chosen social responsibility task. (The Workplace, 2009) Talent Development

1. Project Pyramid – The Scomi Way

Within a competitive business environment, companies increasingly recognise the

need to establish cultures that fully leverage the skills of their employees. By creating cultures in which employees feel valued, companies can better drive business results through their human capital.

Experts agree that the purpose of corporate culture is to develop an internal

environment that is conducive for individuals to perform effectively. However, a corporate culture will only be relevant and useful if it is aligned with the

organisation’s vision, mission, strategies, goals, and the external environment.

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Project Pyramid was launched by Scomi Group CEO, Mr Shah Hakim on 22nd

October 2007. The objectives of the Project Pyramid are to:

Cultivate leadership capabilities Create a mentoring and networking platform Inculcate a learning culture

Foster “Living the Brand” within Scomi Create a culture of innovation and high performance

2. Management Trainee Programme (MTP)

As part of the Group’s Talent Management Programme, Scomi has implemented the Management Trainee Programme (MTP) since year 2004. In 2006 we recruited a group of 10

trainees to join the programme and in 2007 we recruited the next group of 6 trainees who joined us on the 1st November 2007.

The MTP programme is a structured 18-month programme introduced with the primary objective to “train and mould” future talents by giving young fresh graduates experiences in a variety of operational settings within the organisation. Their attachment to arotational-

based placement programme provides them the rounded exposure to managerial and

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functional skills where they are able to learn and perform in their respective duties . Upon

completion, successful trainees will be absorbed into the Group’s talent pool equipped with the Scomi values and culture.

Our responsibility at Learning & Development (LeaD), who is the custodian of this

programme, is to not only ensure that the trainees follow the identified learning path and produce their key deliverables but also to provide the mentoring and coaching support in

order to groom their personal leadership qualities to realise their potential in Scomi.

Over the next 18 months, as the trainees go through their rotations, we hope that they will gain valuable insights and learning experiences from the various departments that they have been attached to. Let’s give them our full support as they embark on this learning journey with Scomi.

3. Scomi Managers Programme (SMP)

As we move into streamlining our businesses, equipping our frontline managers with

knowledge on our internal processes will allow them to perform better on their day-to-day responsibilities. In turn, it will also see an increase productivity at all levels.

To facilitate this development and skills upgrade, we have launched a work-based training

program called the ‘Scomi Managers Programme (SMP)’in June 2008. The objective of the programme is to provide all managers with the essential work-based skills by understanding

the internal processes and policies in order for them to become a more effective manager in their current roles.

Scomi Manager - ‘The Programme’

The programme is designed to be flexible to cater for Manager’s busy work schedule. It will run on 4 half day Modules which managers are free to sign up as and when their time

permits.

Module 1 – People Management (HR) Module 2 – Compliance Module 3 – Project Management Module 4 – Finance

All participants/managers will be given a ‘learning passport’. A ‘stamp of completion’ will be issued in the passport for each module completed. Upon completion of all 4 modules, participants will be given a Scomi certificate of completion. Managers who manage to complete all 4 modules before 31st August, 2008 will be given a reward – a ticket to a

renowned Leadership programme.

4. Executive Management Programme (EMP) For Middle Managers

In promoting learning and employee development, Scomi launched another Programme called the Executive Managerial Programme (EMP) for all Global Managers (grades 16 and

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17) on the 25th November 2007 in Kuala Lumpur. The 6-day programme is designed with

two objectives:

To sharpen the skills, understanding and perspective to the critical business skills of our Managers such as financial management, human resource management, risk management,

strategic management and contract management etc.

To develop and enhance the personal competence and leadership skills of our Managers to improve management accountability and discipline, to be a more effective manager in solving problems strategically and independently.

The EMP is an in house programme consisting of 2 parts which will run every 6 months:

Topics Include:

Leadership Framework

Leadership Levels and Leadership Roles

Leadership Styles and Behaviours

Planning and Organising – Strategic Planning, Business Planning, Project and

Action Planning

Communications and Decision-Making Processes

Communications in a Multi-Cultural Society

Communication and Conflict Resolution

Negotiation Skills

Project Management

Advanced Leadership Skills

Part 1:

Moving Up the Leadership Ladder – designed to focus on Leadership, Planning and

Organising, Communications, and Teambuilding skills.

Human Resource Management – Transactional and Transformational

Workforce Planning and Performance Management

Organizational Learning and Development

Culture and Creativity at Workplace : The FISH Philosophy

Conflict Management

Creativity and Innovation

Problem Solving and Decision Making Processes

Analytical Thinking – Tools and Techniques

Logistics and Supply Chain Management

Customer Service and Quality Management

Risk Management

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Ethics and Integrity Hypothetical

Part 2:

Leadership As Purpose, Management As Process - designed to focus on both Leadership and

Management Processes, Creativity, Innovation, Problem Solving, Conflict Management, and Analytical Thinking.

Over the-12 month period, there will be extra curriculum such as reading and an assignment to enhance the participants’ learning experience. Together with a Personal Improvement Programme Manual, participants are able to self monitor all aspects of their performance and set ongoing goals and action plans for self improvements over time.

5. Management Development Programme (MDP)

For senior level managers, the need for knowledge enhancement in the business and management skills are undeniably increasing in Scomi’s aggressive business environment.

Thus, Scomi provides the opportunity for the hi-potential employees to undergo a 2 ½ years MDP/MBA programme where the participants undergo a more academic stream of management skills in order to upgrade their skills and knowledge in the international business and management arena.

In the next phase of this initiative, Scomi will be implementing series of development programmes for executives as well as leadership development programmes for senior managers with the objective to equip the current leaders within Scomi with strategic leadership skills that will inspire trust amongst their subordinates and unleashing talents whilst having the discipline to execute strategic business goals. Furthermore, the programme aims to enhance their knowledge and understanding in global business issues to

better drive the organisation.

6. Sports & Recreational Club

The Sports & Recreational Club was established to promote a healthy and active lifestyle while at the same time to nurture ties among employees from different business units in the

company. This effort has been lauded as one of the most successful voluntary employee engagement activities and the number of participation from members of the staff throughout the year has increased.

Besides various sporting activities such as futsal, bowling and volleyball, the club also

organises an annual ‘Family Day’ where employees and their families come together for a big, activities and fun-filled day.

The Sports & Recreational Club activities are focused on team participation, personal engagement and most importantly interaction among staff.

In order to facilitate a diverse range of activities, the Sports & recreational Club is run by a

team of rotating committee members on a yearly basis.

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7. First Aid Programmes

Between 20th and 27th February 2008, the Anaco office in Venezuela organised a first aid

course conducted by a representative from the Department of Civil Protection of Anaco City. The course was attended by 32 employees form field operations and administration

who clocked up 256 man-hours of training.

From CPR to the Heimlich Maneuver and blood pressure reading to patient care, the course proved to be an excellent training to prepare staff for an emergency. (Employee Development and Engagement, 2010)

Community Relationship

Environment

Scomi adopts the highest environmental standards in all areas of operations where meeting the most stringent legislative requirements in the world is the standard we strive to achieve.

Scomi includes environmental and ethical considerations in investment decisions where

appropriate, together with careful and efficient use of all materials and energy resources helps minimise waste.

1. Environmental Initiatives Project “EnviroUs” – launched with the tagline “If There’s

No Earth, There’s No Us”, the project focuses on environmentally friendly practices in the areas of the products produced, processes implemented and through support of the activities carried out. An initiative implemented in 2010, Scomi targets to reduce printing costs by 20% as a measure to encourage our reduce, reuse and recycle efforts.

2. Energy Efficient Products: SUTRA or Scomi Urban Transit Rail Application – As part

of the Group’s 5 year road map to promote our monorail system, SUTRA, the Group’s focus is to improve the sustainable technology of SUTRA via investing in energy effi cient features that will (i) store and reuse the energy generated from the braking activities of the train, (ii) make our vehicle lighter and (iii) improve the

performance and efficiency of our propulsion and control system.

3. Protecting the environment – Our drilling waste management products and services provide solutions to eliminate or, at the very least, reduce environmental

pollutants arising from oil and gas drilling activities. Enhancements to our drilling waste management product portfolio encompasses not only the treatment,

containment and handling of drilling waste but includes safety measures to protect personnel working in these hazardous environments.

Research and development is ongoing to develop water-based drilling fl uid (mud) solutions, which by virtue of producing lesser contaminants will

translate into a reduction in the drilling waste management cycle.

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4. Conservation of Shore Environment: In 2009, the Scomi Marine team in Singapore

participated in the annual International Coastal Cleanup Singapore (ICCS) which was jointly organised by the National University of Singapore and the Ocean

Conservancy Group. The ICCS is an annual environmental project participated by about 2,000 volunteers from about 40 various organisations and schools. On 12

September 2009, the team from Scomi Marine Singapore did their part by cleaning up Semilang Beach. The data collected during the beach cleanup is used for report

features under the Ocean Conservancy’s annual Marine Debris Index – the world’s only country-by-country, state-by-state analysis of trash in oceans and waterways.

5. Conservation of Underwater Environment: In 2009 also, Scomi Marine made a

commitment to participate in Project Aquatic World Awareness, Responsibility and Education (“Project AWARE”) by supporting marine conservation activities in

Indonesia. Project AWARE Foundation collaborates with Professional Association of Diving Instructors (PADI) to rope in divers and scuba professionals around the globe

to combat challenges faced by the underwater environment through education and advocacy.

Under this project, the Scomi Marine team from all locations in Malaysia, Singapore, Jakarta and Kalimantan gathered at the Pulau Seribu National Marine Park, Jakarta,

Indonesia to participate in various programmes/activities including beach and underwater cleanup, coral reef monitoring, coral transplant, sea grass and mangrove

planting and sea turtle breeding. The data collected from these activities will be channelled to the Ocean Conservancy Group, a non-profi t organisation responsible

for the preparation of the International Global Marine Debris Report. These activities are also aimed at educating local communities on underwater protection and Project

AWARE’s Dive for Earth Day 2010, to celebrate Earth Day’s 40th anniversary.

Owing to sea conditions, the execution of this project was only carried out in April 2010 and will be reported in our Annual Report 2010. (The Environment, 2009)

Society

Yayasan Scomi. This is the foundation set up by Scomi in 2005 to officially carry out

all its community projects. Through Yayasan Scomi, we provide education assistance and scholarships for needy students, rural school programmes, motivational

programmes and provision of basic food provisions for the orphans, the poor, the underprivileged, the disabled and the senior citizen communities. All programmes by

Yayasan Scomi are run by Scomi’s staff through volunteerism.

1. Motivational Program for students of SMK Air Hangat Langkawi

It came to Scomi’s attention that SMK Air Hangat Langkawi is one of the most underprivileged schools in the country. As an effort to motivate the students, on 19th

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February 2008, the school’s headmaster and teachers together with motivational

speaker Dr. Tengku Asmadian held a one-day program sponsored by Scomi to address issues concerning the students in the school.

2. Charity Program with OKU Bentong

Chinese New Year Celebration with the Disabled in Bentong.

On the 23rd February 2008 30 volunteers from Scomi ushered in the year of the Rat

together with 60 disabled individuals of all ages from Bentong in the state of Pahang, Malaysia. Besides spending time with the disabled, Scomi volunteers also donated

money and much needed supplies to the Disabled Organisation and special schools in Bentong.

3. Ripple Mattress for Siti Zanatul Nabilah at Setapak New mattress for Siti Zanatul Nabilah. Siti Zanatul Nabilah an extraordinary young woman with special needs can finally rest happily in her own bed. When Scomi found out that Siti, a disabled child, could use a new mattress for that extra comfort, its volunteers went right to Siti’s home on 18th March 2008 and surprised her with a brand new ripple mattress!

4. Puan Azizon binti Mohamad - Menjual goreng pisang untuk menyara 5 anak di KB

Financial Aid for Azizon Binti Mohamad and Family.

Azizon Binti Mohamad, whose entire family falls under the Poor Family and Student Assitance Programme (PFSAP) receives monetary aid from Scomi to supplement her income selling ‘goreng pisang’ or friend banana. Azizon and her 5 children receive

funding every 6 months for their daily expenses.

5. Blood Donation Drive - 25.03.08

The ‘Out For Blood’ Blood Donation Drive

Every year the annual ‘Out For Blood’ blood drive is organised by Scomi to encourage its staff to give blood to the local blood bank. This year’s blood drive was another great success with more than 120 donors registered in just one afternoon. Scomi also invited neighbouring offices to participate and like good neighbours many showed their support for the blood drive.

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6. Sungai Buloh Case

Monthly Groceries for the Poor

Every month Scomi supplements the families living under the poverty line with

additional groceries. One such hard core poor family is the one shown here in Sungai Buloh, Selangor which Scomi volunteers visited on the 29th April 2008.

7. Bicycle Donation - Semporna Sabah

Walking 5 kilometers every day to school was the faith of 10 students of Sekolah Menengah Kebangsaan Bugaya Semporna in Sabah. On 7th May 20008, Scomi donated 10 new bicycles to these students. With their brand new bicycles, these students can now happily cycle to school.

8. Spinal K9 talk - 27th may 08

As an effort to promote the spirit of volunteering, on 27th May 2008 Scomi invited its staff for a 45-minute talk with members of the Ward K9 of Hospital Kuala Lumpur

(HKL).

Ward K9 of the HKL is like a home to those with spinal cord injuries and who are life long patients of HKL. They formed an association as a support group to each other by actively helping to re-focus as they face life’s daily challenges and needs.

At this session, employees had the opportunity to listen, feel and understand their

experiences as they help their members live more independently as a continuing

contributing citizen.

9. Donations to MERCY Malaysia

For humanitarian causes, Scomi has been a supporter of MERCY Malaysia, a non-governmental organisation heavily committed in medical relief and humanitarian aids to those in dire need. Over the years, thanks to MERCY Malaysia and its sponsors such as Scomi, many disaster stricken and the underprivileged communities in countries such as Indonesia, Sudan, Cambodia and Sri Lanka to name a few has benefitted tremendously.

10. Drilling Waste Management

Scomi’s commitment towards the environment is reflected through its Drilling Waste Management (DWM) system, which forms almost half of its business activities. The DWM equipments and services are provided to the oil and gas industry to prevent environmental pollution arising from drilling activities. This includes various technologies to handle drilling waste separation, containment, handling , treatment and disposal. Our most advanced DWM technology was developed in compliance

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with a Zero Discharge policy in the North Sea which has very stringent environmental

legislation on dumping of waste.

11. Scomi Enviro

Plans are in the pipeline to introduce a suite of technologically advanced application or sludge treatment under Scomi Enviro, the latest addition to the Scomi group of companies. This technology will enable enhanced hydrocarbon recovery from otherwise crude waste from drilling operations.

12. Going Green with the SUTRA Monorail

In November 2007, our energy and logistic engineering subsidiary, Scomi

Engineering, launched its new generation monorail, SUTRA – Scomi Urban Transit Rail Applications. SUTRA offers amongst many features an improved direct-drive

propulsion system and lower vehicle weight translating into an energy-efficient monorail system. Further, the monorail also promotes the use of private vehicles,

thus reducing carbon emission levels into the environment. (Community Engagement, 2010)

Customer Relationship

a. Scomi MyKids

As a global corporate citizen, Scomi is proud to be associated with the world's most popular sport - football.

Through Scomi-MyKids, a programme involving a nationwide talent search to unearth the best young football talents to be developed into footballing heroes of the future, we have managed to bring renewed interest in this sport. Trials were conducted at various locations across the country and over 2,000 schoolchildren participated in the trials. Nine of the best talents had the football experience of a lifetime in Manchester, UK when they were sent there for a week’s visit under Scomi-MyKids programme.

b. Scomi MyKids Holiday Camp

Launched in July 2007, Scomi MyKids is a unique programme sponsored by Scomi to unearth the best football talents among children aged 12 years and below. At the

same time, the programme has created a lot of hype and renewed interest in football among children, which augurs well for the overall football development in Malaysia.

Scomi hopes its efforts complement programme and other efforts under the Ministry

of Youth and Sports and other sports bodies.

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Nine (9) of the best young players or winners from the trials held in 4 venues of over

2,000 kids were rewarded with a trip to Manchester, UK in September 2007 for a football experience of a lifetime.

As a follow-up to that trip, Scomi has put in place a comprehensive football and

personal development training programme for these 9 young stars. This is part of its plans under the Scomi MyKids programme for its “The Making Of Stars”, the second

phase of this programme.

The first pilot programme developmental programme, Scomi Holiday Camp ran from 1st – 5th June 2008 in Selangor, Malaysia. 8 out of the 9 children attended the programme which was packed with football training consisting of football skills and techniques, motivational and educational trips and team building activities.

The football training is conducted by the professional coaches from the world renowned football school, the Brazilian Football Academy (BFA). The educational tours to the National Science Centre and the PETRONAS Science Centre hope to give the children knowledge into how things work around them. Teambuilding and motivational activities along the themes of working together, new ideas, goal

oriented and being customer responsible which are Scomi’s brand values were weaved into the activities.

In addition to excelling in football, the children are encouraged to also excel in their school academic results. Scomi will track their progress both in the football and academic aspects by working closely with their parents and teachers and through the evidence of their school report cards.

c. Powering World Champions - Jazeman Jaafar & Nicol David

Under its Sports Partnership Programme, Scomi provides support to a select group of

young athletes in their pursuit of excellence in their respective sports. The youngest being 14-year-old motorsports prodigy Jazeman Jaafar who continues to score

success after success in the international motorsports arena, against other much older peers. Scomi's sponsorship of this rising young star began in 2006 with the

objective of supporting Jazeman’s quest to score even greater success and develop his true potential, whilst bringing glory to Malaysia.

A name that is proving to be a dominant global force in women's squash is Nicol

David. As World No. 1 professional women's squash player, Nicol David personifies hardwork and dedication; a living testimony that Malaysians are capable of becoming world beaters. Scomi is proud to be a partner in her continuing quest for

excellence. (Customer Engagement, 2010)

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d. “Customer Service - You can’t live with it, you can’t live without it!”

Excellent Customer Service is crucial for good business. Customer Service is very

personal. Our expectations vary according to circumstances and our own ideas about good service, but we all know really good customer service when we see it. It’s that

special touch that makes us feel like someone cares. It’s a smile or a follow up call. It’s someone doing something memorable that we didn’t expect.

Customers either internal or external have expectations - it is the first impression

that leaves a lasting memory. Customers have perceptions of good service and it is not just good service but Fantastic Service that we should render our customers each

time.

Scomi has defined Customer Responsible as one of its core values and Customer Focus as one of its core competencies. As a competency, it can be taught and GLaD

has been conducting workshops on Customer Service for the last few months. This training is about facilitating what every organisation wants -Fantastic Service Every Time – to improve significantly how internal service providers assist each other and

ultimately, deliver great service to customers. (FOCUS, 2010)

Media Relationship

1. India journalists get the first hand look at Malaysia’s monorail

Six journalists from six leading media publications in India visited Malaysia for a first hand look at Scomi’s successful monorail achievements in Kuala Lumpur. They were

here from 10-13 January 2010.

While here representatives from Scomi took the media delegation on a tour of the city's transportation infrastructure and briefed them on the unique selling

propositions of the monorail as a viable public transportation system to ease congestion in the city.

Their visit also included a guided tour of Scomi's s tate-of-the-art facility in North Kuala Lumpur, a Rapid bus ride and a monorail ride. Kanesan Veluppillai - President, Scomi International was on hand to receive the delegation.

Aside from soaking up all the relevant information on monorails, the delegation also got a closer look at Scomi Malaysia's involvement in urban transportation, our first monorail project in Mumbai as well as all the varied businesses of the Scomi Group, both at the local and global level.

Later the delegation was briefed about the setting-up of Scomi's local office in India where the hiring of local Indian talent was carried out. The journalists were also

informed about plans for the setting up of the monorail coach factory in India

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targeted for 2011 as well as plans for the establishment of a low floor CNG bus

factory there.

Matters of work aside, the journalists enjoyed sightseeing in Putrajaya, Malaysia's administrative capital as well as tours of the city's famous landmarks.

The media that were represented were the Times of India, DNA, Deccan Herald,

NDTV Profit, Hindustan Times and The Telegraph. (On Track, 2010)

2. Press releases Scomi provides press release to media to cover things happening inside and outside of the organization, to reach greater publicity. Example of press release:

3. E-community

Being part of the e-Community, member will be entitled to receive via e-mail the latest news and happenings on Scomi Group Berhad.

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Corporate Event as a mean

1. Buka Puasa Dinner

In true Malaysian culture style, Scomi, KMC & Oiltools hosted an “open house” for our

Muslim brethren to break their fast during Ramadhan, the Holy Month of fasting, an annual

event. The function was not limited to only our Muslim friends, but also others. We played

host to our major customers from Shell, Petronas Carigali, Exxon Mobil and Murphy Oil to

name a few and also to many members of the investing community. It was very well

attended with a full house until the organising committee almost had to wait till the very

end before being able to have their meal. (Scomi Focus 09. 2004)

2. Scomi Premier League

The Scomi Recreation Club Football Team has been having a ball of a time with various

matches. In December, the KMC Labuan team had a friendly match with the Shell Sarawak

Team. The objective of this event is to break the ice between employees, so that they can

work together in future without hesitation. (Scomi Focus 09, 2004)

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3. Scomi Family Day

The culmination was a carnival – it was an event successfully planned and organised by the

Scomi Sports Club. With over 2 months of preparation, the organizing team managed to

build the momentum, create the excitement and build the spirit of teamwork amongst staff.

(Scomi Focus 12, 2005)

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4. Monorailex 2010

President of Scomi International and Peter Dennier, Head of Rolling Stock Engineering of

Scomi Rail presented papers at the 2010 MONORAILEX Conference and Trade Show (MONORAILEX 2010) at the Crowne Plaza Mutiara Hotel Kuala Lumpur from 2-4 June. As the

world’s only fully dedicated conference on monorail technology, MONORAILEX provides a platform for relevant industry participants to discuss, compare notes and learn more about

the strategic, social and economic benefits of monorail technology. MONORAILEX 2010 was opened to pre registered participants and attracted politicians, metropolitan city

authorities, public transport companies and consultants, OEM’s and their suppliers as well as monorail experts. During the conference, participants were involved in various

discussions and visited the Control and Service Centre of the KL Monorail. (Scomi Focus 27, 2010)

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5. Reaching out to our customer

Scomi Sosma Sdn Bhd held a one-day course on Production Chemicals and Flow Assurance

on 13 March 2009 with the aim to create value for our customers. The training course not

only helped enhance our customers’ knowledge about our products and technologies but

also gave is the opportunity to share our expertise and experiences with them while building

stronger ties.

Apart from sharing key problems that impacted their production rate efficiency, the session

also helped us get fresh input on the technical difficulties faced by our clients. With this

information, we will be able to offer solutions and provide our clients with the assistance

needed to overcome their problems. (Scomi Focus 23, 2009)

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Challenges faced by organization

1. Scomi prepares for global expansion – leveraging on infrastructure growth in

emerging markets

Scomi Engineering Bhd (“Scomi Engineering”) a 70% subsidiary of Scomi Group Bhd (“ Scomi” or the “Group”), today announced a corporate exercise to raise up to RM68 million through a renounceable rights issue of up to RM68 million irredeemable convertible unsecured loan stock (“ICULS”) at 100% of its nominal value on the basis of two (2) RM1.00 nominal value of ICULS for every nine (9) existing ordinary shares of RM1.00 each held in Scomi Engineering (“Proposed SEB Rights Issue”).

In a related development, the Group announced its participation in the Proposed Scomi

Engineering Rights Issue whereby the Group will provide an irrevocable written undertaking to subscribe in full for its entitlements as well as excess applications of up to RM61 million

(“Scomi Undertaking”). The Scomi Undertaking will be funded through the proceeds raised from the Group’s Proposed Rights Issue, as announced on 13 August 2009. In the said

announcement, the Group had announced a corporate exercise to raise up to RM165 million through a renounceable rights issue of 3-year 4% Irredeemable Convertible Secured Loan

Stocks (“ICSLS”) with warrants. The Proposed Rights Issue targeted to raise up to RM165 million is intended to increase the equity capital of the Group and strengthen its eventual capital base. In a recent Q2 results announcement, it was also mentioned that this exercise will enable Scomi to optimise its capital structure and provide opportunities for shareholders to participate in its future growth. “In order to meet the rapid infrastructure development in the emerging markets, the Group

must continue to market itself globally and invest in the ownership of proprietary technology in the public transportation sector,” said Shah Hakim Zain, Scomi Group Chief

Executive Officer. “We have mapped out a strategic plan that leverages on our global presence especially in fast growing markets of Brazil, the Gulf States, India and China. The

Group will continue to focus on disciplined execution of its global expansion strategy while keeping costs under control” added Shah Hakim.

“The Oilfield Services business secured new contracts, its public transportation technology is gaining a strong interest from the global emerging markets and its Marine Services business

has recorded a sustained performance,” continued Shah Hakim. The Group’s Rights Issue which is expected to be completed by year end 2009 and the Scomi Engineering Rights Issue which is targeted for completion in early 2010 are subject to the approval from the Securities Commission, Bursa Malaysia, other shareholders of Scomi and any other relevant authorities. (Scomi prepares for global expansion, 2009)

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2. Scomi optimistic despite challenges

(Article retrieved from The Star Newspaper, 2008)

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Key Success Factor –

From a Corporate Communication point of view

1. Internal Affairs.

As far as internal affairs are concern, the target audience is always the employees, people who are within the organization and being affected by the company’s

decision. Though our research, it became obvious to us that Scomi values internal relations very highly, they care about their employees. They have activities that

helps ensure the employees’ safety at works, training that enhance the employees’ knowledge and value, last but not least, ensures employees’ well-being at work via

incentives (awards/recognitions), motivation and leisure events. This led to the feel of loyalty towards the organization and spread positive word-of-mouth, as they are

often the company’s ambassador. On top of that, this will improve the productivity

and efficiency in production.

2. External Affairs Shareholder/investor relations

Shareholder or investor is the second asset that an organization has to prioritize as they are the source of fund that will contribute in bringing the

company to a new milestone. Here, Scomi recognizes the need to maintain good relationships with their investor. They see the need to update their

investor on the latest scenario of the organization, that is why they share their share price information, financial highlights, shareholders’ information,

quarterly reports, annual reports, dividend history, bursa announcement, as well as research coverage.

Customer relations Customer is the reason for business to exist. Similar to others, Scomi’s aim is

to add value to their products or services, so that they will be satisfied and leads to customer retention, so that the business can sustain.

Government relations Government is one of the significant stakeholders that can manipulate an organization’s development. In general, all states would favour organizations that work in accordance to their policies. It is obvious that Scimo has strong governmental relations because they gained many supports from the Ministries, and was said to be part of the government’s Trade Mission to India.

Media relations Media plays an important role in communicating Scomi’s stories to the world. This became factual to us, as we found out that almost all major newspaper in Malaysia (eg: Star, Utusan Malaysia, SinChew Daily) is covering Scomi’s issue. Usually, high media coverage is associated to good media relations.

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Recommendation

1. More effort on EnviroUs CSR Programme.

Scomi Group can reduce the usage of paper in their organisation from 20% to 30% in

coming year. This is because Scomi Group actually done a lot of publication by using

e-publication such as newsletter, press release, and annual report and etc. We

recommend the organisation can put more effort on the management such as e-

banking of salary, memo, notes writing in the form of electronic. This will help them

in enhance the EnviroUs CSR Programme.

2. Scomi World Family Day.

Scomi Group can organise a corporate event that invited all the employee and

employer from different branch of their organisation. This corporate event will help

them enhance their relationship between employer to employer, employee to

employee and their shareholders. Inside the corporate event, they can exchange of

idea, culture and form a good communication between each other.

We recommend Scomi group can come out with more corporate event and targeted to their

target audience about their philosophy, business, mission and vision, image and identity to

the public. This will help them easily setting the mind set of wellness of the organisation to

the public.

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References

Argentin, P. 2007. Strategic Corporate Communication. Tata McGraw-Hill Publishing Company

Limited. P. 174 – 175. Retrieved from: http://books.google.com.my/books?id=2TjbxDu-

vj0C&pg=PA174&lpg=PA174&dq=investor+relations+is+both+a+financial+discipline+and+corporate+

communication+function&source=bl&ots=J_qukNqcjn&sig=mR4p5UtQhOM4RaXTcuA7buR8G6Y&hl

=en&ei=iKvaTMCPDYfEvQOunvzTCQ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CBUQ6AEw

AA#v=onepage&q=investor%20relations%20is%20both%20a%20financial%20discipline%20and%20c

orporate%20communication%20function&f=false

Code of Conduct. (2010). Retrieved from:

http://www.scomigroup.com.my/about/code_of_conduct.asp

Company Profile. (2010). Retrieved from: http://www.scomigroup.com.my/about/profile.asp

Community Engagment. (2010). Retrieved from:

http://www.scomigroup.com.my/community/sponsorships.asp

Corporate Structure. (2010). Retrieved from: http://www.scomigroup.com.my/about/structure.asp

Customer Engagement. (2010). Retrieved from:

http://www.scomigroup.com.my/community/sponsorships.aspCustomer Relation (2010). Retrieved

from: http://www.referenceforbusiness.com/encyclopedia/Cos-Des/Customer-Relations.html

Economy Trend. (2009). Retrieved from:

http://www.miti.gov.my/storage/documents/515/com.tms.cms.document.Document_e6286e13-

c0a81573-53e353e3-1759562c/1/MITI%20Weekly%20Bulletin%20(Volume%2069)%20-

%2011%20November%202009%20(updated).pdf

Employee Development and Engagement. (2010). Retrieved from:

http://www.scomigroup.com.my/community/sponsorships.asp

FOCUS. (2004). Retrieved from: http://www.scomigroup.com.my/media/Newsletter/Focus09.pdf

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FOCUS. (2005). Retrieved from: http://www.scomigroup.com.my/media/Newsletter/Focus12.pdf

FOCUS. (2009). Retreived from: http://www.scomigroup.com.my/media/Newsletter/Focus23.pdf

FOCUS. (2010). Retrieved from: http://www.scomigroup.com.my/media/Newsletter/Focus27.pdf

Holtz, S. (2002) Public Relations on the Net: winning strategies to inform and influence the

media, the investment community, the government, the public, and more! (2nd ed) NY:

Amacom

Milestone. (2010). Retrieved from: http://www.scomigroup.com.my/about/milestone.asp

On Track. (2010). Retrieved from:

http://www.scomirail.com.my/SCOMI/Newsletter/OnTrack/201002Full.asp

Our Approach. (2010). Retrieved from: http://www.scomigroup.com.my/community/approach.asp

Scomi Group. Annual Report 2009. Corporate Social Responsibility. P. 30 - 33. Retrived from:

http://www.scomigroup.com.my/investor/annual_PDF/SG/2009/9_corpo_social.pdf

Scomi prepares for global expansion, (2009). Retrieved from:

http://www.scomigroup.com/weboffice/files/news/8282009_92602AM_MNR_SGB_ICULS_

270809_final.pdf

Whistleblower Policy. (2010). Retrieved from:

http://www.scomigroup.com.my/about/whistleblower_policy.asp

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Appendixes Online interview with Shanizar Ahmad

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