2005 Annual Report
President’s Statement
The year 2005 allows our Group to take stock of the issues and
tackle the bull by both horns. We have shown that we are capable
of taking drastic but decisive action to turn SEGi around.
2006 holds many promises for the Group. Indeed the turn of the
year saw the marking of a new milestone. We underwent a major
restructuring exercise through the disposal of smaller centres and
merger of profitable ones. The exercise also coincided with the rebranding
of our colleges under the common SEGi brandname.
The revitalised SEGi is now united with a common mission to empower
our students and trainees with qualifications and skills that are relevant
to industry needs, so that they may contribute positively to society.
Student enrolments have picked up. The exercise also allows SEGi to
enjoy lower advertising, promotion, administrative and operating costs.
With the rebranding and merger, the Group is poised to address
the growing demand for knowledge workers and skilled workforce.
Such demand is expected to escalate following the focus in human
capital development as the second phase of Vision 2020 outlined in
the 9th Malaysia Plan released recently.
We welcome the decision of the government to improve the country’s
overall education system. This will translate into more opportunities
for SEGi to be part of concerted efforts to enhance the nation’s
productivity and competitiveness.
Our Group has always been able to bounce back and break new
highs in terms of profitability after each cyclical bottom and it will not
be different this time.
SEGi’s latest appointment to train youths under a government
programme is expected to provide earnings boosts to the Group.
It will also lend us with a more diversified earnings base to work on,
consistent with our strategy to penetrate a multi-market segment of
school leavers, adult learners, vocational and corporate training.
Our collaboration with leading corporate and industry companies
under the valued corporate partnership (VCP) is also beginning to
bear fruit, and will further strengthen our leadership position in adult
learners market and corporate training.
We are also proud to announce another milestone: the launch of our
new main campus at Subang Jaya. The 12-storey premise boasts of
modern fittings, a contemporary design and functional aesthetics.
The campus is designed to provide a complete learning experience
for up to 6,500 students.
Construction of our flagship campus at Kota Damansara is underway
and we expect to start operations by early 2007. When completed,
the flagship campus will redefine the meaning of SEGi’s complete
learning experience.
The Group will not be able to make the turnaround without the
commitment of our people. A performance culture at all levels is
fostered and is bolstered by appropriate rewards. Our people are
motivated to grow in tandem with our long-term vision and goals.
As a public-listed education Group in Malaysia, we believe that we
should be leading the way in demonstrating Corporate Social
Responsibility (CSR). Our obligation to the community is an integral
part of our business strategy along with growth, profits, productivity
and having a team or winners. We will continue to work responsibly
and contribute positively to the academic and skills development of
the community. The progress in CSR will deliver competitive advantage
which will contribute to the Group’s long-term success.
In summary, the Group has seen a dramatic turnaround in its
performance in late 2005 and early 2006, as a result of a series of
strategic measures undertaken. The outlook for the future is promising
and we are confident of achieving a few more positive milestones.
We will continue to dedicate ourselves to achieve excellence, provide
high quality and superior learning experience to our students, broaden
our range of products to meet market needs, sustain shareholders’
confidence and contribute towards a society, where qualified and
skilful people from different backgrounds can contribute and participate
in the nation’s economic and social progress.
Dato’ (Dr) Patrick Teoh Seng Foo
President