2006 Annual Report
“SEG International Bhd (SEGi) expects its strategies to boost its bottom line to put the company firmly back on the road to profit,” said Group Chief Executive Officer, Dato Clement Hii.
He said although the education group had always been profitable, it had been experiencing a drop in profits since 2004.
However, things could be looking up for SEGi as its net profit for the nine months ended 30 September 2006, jumped 126% to RM2.8mil from RM1.2mil in the same period a year ago. Hii said the group had put in place many strategies to enhance the value and quality of its products and services.
“We now prefer to grow steadily and in an orderly manner. I think we are now doing just that,” he told Starbiz. From 2001 to 2003, the group grew by leaps and bounds, with its student population surging to 18,000 from 8,000.
The jump in volume had its setbacks.
There was a drastic drop in the number of students in 2004 and 2005 as they graduated and the group was unable to continually double its student population.
Nevertheless, Hii pointed out that the current student numbers were “very healthy”, at about 14,000.
“Our international student population has also increased. We are beginning to see more students from the Middle East and Africa.”
“Our previous twinning arrangements with educational institutions in China are bearing fruit – students are coming to Malaysia to begin their second and third year diploma or degree studies,” he added.
Hii said SEGi was moving away from low margin courses (such as professional and certificate programmes) and towards “high ticket” offerings. For instance, it is setting up faculties in pharmacy and medical sciences. The group’s other new programme offerings include nursing, medical science, biotechnology and psychology.
Many of its courses have accreditation from the National Accreditation Board.
SEGi has also ventured into corporate training, consultancy and other related businesses.
Hii said the group’s re-branding and consolidation exercise early last year had proven to be a positive move. “Now we are leaner and our efficiency has improved, as can be seen from our higher operating profits. We are also in the midst of looking at a number of revenue streams. This year could be a good time to implement
those plans,” he said.
He expects SEGi’s new flagship campus at Kota Damansara to be ready for the upcoming May/June intake. “We are very excited about the campus, which will have full-fledged academic, research and recreational facilities to cater to up to 12,000 students.”
Dato’ Clement Hii
Group Chief Executive Officer