President’s Statement 2006

2006 Annual Report
President’s Statement

The year 2006 showed that SEGi was able to take a decisive
action to turn around and bounce back, despite of difficult market conditions.

The first round of rebranding and consolidation exercise
for SEGi Group of Colleges was a resounding success. We took the bulls
by the horns and made the painful decision to dispose certain non-performing
units. It is not unlike a medical surgery – you don’t remove
the tumour, you won’t get well. The operation was very successful.

With a single solid brand name, SEGi now enjoys a much
stronger and better corporate image. As a result of the rationalisation,
we are also more cost-efficient, due to economies of scale and optimisation
of resources. It is heartening to note that most of our campuses are
now profitable.

The Group would not have been able to make the rebound
if not for the strong leadership and commitment of our people. The revitalised
SEGi is now united with a common mission and vision to take us forward.
The strength of our human resource will always be a plus factor, as
we prepare to scale new heights.

Student enrolments and revenue have jumped due to the
effectiveness of our advertising and attractiveness of our courses,
supported by improved delivery. As a united group, SEGi will ride the
wave of demand for knowledge workers and skilled workforce, following
the announcement of the second phase of Vision 2020 – focus on
human capital development.

As one of the leaders of the industry, SEGi will be
making some bold and innovative moves. SEGi will have a new SEGi Leadership
Centre in Linggi, Melaka which is well-equipped and will add value to
our student services. The launch of Career Exploratory Programme (CEP)
will allow our students internship at participating companies. These
efforts show that our collaboration with leading corporate and industry
companies under the valued corporate partners (VCP) scheme has matured
and has begun to bear fruit.

As part of our commitment to our corporate social responsibility
(CSR), we have undertaken another innovative project in collaboration
with 8TV on reality shows that carry important social messages for job
seekers and prospective students. While helping viewers to improve their
employability, the show also boosts SEGi’s visibility and corporate
image as an education institution that cares.

As a public-listed education Group in Malaysia, our
social obligation to the community is an integral part of our business
strategy along with issues such as profits, growth and productivity.
It is our fervent belief that our CSR efforts will deliver competitive
advantage and contribute to the Group’s long-term success.

The Group is also moving into more profitable academic
areas by offering courses like nursing, dentistry, biotechnology, among
others. These courses will carry long-term goodwill for SEGi as an education
provider. However, to offer these courses, we will have to invest heavily
on the infrastructure and equipment.

Talking about investment, the mother of all investments
for SEGi will be our new flagship campus at Kota Damansara. The new
campus redefines the meaning of SEGi’s complete learning experience.
It is also our pride and a concrete proof of our commitment.

To sum up, the Group has engineered a dramatic turnaround
in its performance in 2006, and we can only expect to do even better
in 2007. The outlook is certainly bright and a few positive milestones
are in the pipeline.

We will strengthen our dedication to provide a complete
learning experience to our students and customers, introduce innovative
schemes in collaboration with our partners, broaden the range of courses
to meet market needs, sustain shareholders’ trust and contribute
towards the well being of the community in which we operate.

Dato’ (Dr) Patrick Teoh Seng Foo