DRIVING SUSTAINABLE GROWTH - Johor Corporation

 
DRIVING SUSTAINABLE GROWTH - Johor Corporation
DRIVING SUSTAINABLE GROWTH
         ANNUAL REPORT 2019
DRIVING SUSTAINABLE GROWTH - Johor Corporation
About Johor
   Corporation
   Johor Corporation was established as a public
   enterprise and a statutory body with the passing
   of the Johor Corporation Enactment No. 4, 1968
   (as amended under Enactment No. 5, 1995). As
   a state-owned conglomerate, Johor Corporation
   through its Group of Companies are involved
   in core businesses comprising Plantations,
   Specialist Healthcare, Food & Restaurant
   Services, as well as Property.

                                                               MISSION

 A conglomerate contributing to the         Playing the role of catalyst for      Maintaining its position as a       Contributing and improving the
 state and national economic growth       sustainable business growth and        competitive, profit generating        well-being of the community
    through efficient and effective       subsequently achieving success         and highly regarded business           through business success
  business entities while upholding        to discharge its obligations as a     entity that leads & dominates         and corporate responsibility
         community interests.               state investment corporation.                  the market.                        undertakings.

                                                                 VISION
                                                 MEMBINA & MEMBELA
                                                  JOHOR CORPORATION CORE VALUES 2.0

       INTEGRITY                PROFESSIONAL                       INNOVATIVE                       LOYAL                         TEAMWORK
  We execute our task          We are committed              We are knowledgeable,              We execute our                 We work as a team,
 with trustworthiness,        to executing our task          visionary, creative, dare        responsibilities with        contributing to achieving a
 honesty and fairness,          efficiently through          to lead, responsive and            dedication and             common goal and shared
in line with the law and    professional knowledge             resourceful in pursuit        commitment towards            vision in an interactive and
corporate governance            and skills, thereby           of Johor Corporation’s          Johor Corporation’s           conducive environment.
        principles.        providing excellent service          Business Continuity            mission and vision
                               and quality product                   Mission.                 while being resilient
                             to our customers and                                            and devoted to Johor
                                   shareholders.                                                 Corporation.
DRIVING SUSTAINABLE GROWTH - Johor Corporation
A NEW LOGO                                                                                           I N S I D E T H I S R E P O RT
FOR A NEW                                                                                                                                       1. CORPORATE STATEMENT

ERA                                                                                                                                             Chairman’s Statement
                                                                                                                                                Corporate Statement
                                                                                                                                                                                                  4
                                                                                                                                                                                                  6

                                             Symbolises the gateway that will bridge
                                             us all into a future of innovation and                                                             2. ABOUT JOHOR CORPORATION
                                             advancement
                                                                                                                                                Corporate Profile & Information               13
                                                                                                                                                Corporate Structure                           14
                                                                                                                                                Board of Directors’ Profile                   16
                                                                                                                             34
                                                                                                                                                3. FINANCIAL REVIEW
                                                                                                                            PROSPECTS
                                                                                                                            KULIM               Statements of Comprehensive Income            20
                                                                                                                                                Statements of Financial Position              22
                                                                                                                            BUSINESS
                                                                                                                                                Statements of Cash Flows                      24
                                                                                                                                                Statement of Changes In Equity                27
                                                                                                                                                Financial Performance Summary JCorp &
                                                                                                                                                  Group (2015-2019)                           30

                                                                                                     4                                          4. PROSPECTS

           The new Johor Corporation (JCorp) brand identity reflects the ambition,                   CORPORATE STATEMENT                        Economic Review                               32

          aspiration and direction of the Group. The new logo is a representation of                 CHAIRMAN’S STATEMENT                       Kulim Business                                34
                                                                                                                                                Specialist Healthcare Division                42
           JCorp’s forward trajectory, as well as its desired image moving forward –
          dynamic, modern and forward thinking. The main distinguishing feature
                                                                                                                             42                 Food and Restaurant Services Business
                                                                                                                                                Property Division
                                                                                                                                                                                              48
                                                                                                                                                                                              58

          in the modern logotype is its clean sharp and minimalist representation of                                                            Industrial Development Division               70
                                                                                                                            PROSPECTS
                                                                                                                                                Business Development Division                 78
                                      the ‘JCorp’ identity.                                                                 SPECIALIST          Corporate Responsibility Division             80
                                                                                                                            HEALTHCARE          Group Human Capital Management
             The red ‘O’ symmetrically balances the overall logo which as a whole                                           DIVISION              Division                                    88
                                                                                                                                                Group IT Advancement Division                 92
         symbolises the gateway that will bridge us all into a future of innovation and
                                        advancement.                                                                                            5. CORPORATE GOVERNANCE STATEMENT

                                                                                                                                                Corporate Governance Statement                94
         The typefaces used are clean and bold, connoting strength and resilience,
                                                                                                                                                Risk Management and Internal Control          99
           all reminiscent of an image of a world class corporation. Designed in the                                                            Board Governance & Business
          colours of Johor Darul Ta’zim, our new logo also pays homage to our roots                                                               Ecosystem Committee Report                102

           as we continue to carry the colours of our heritage on the path forward.

                                                                                                     6                       58                                     Please scan the QR Code
                                                                                                                                                                    to link to website for more
                                                                                                     CORPORATE STATEMENT    PROSPECTS
DYNAMIC, MODERN AND                                                      CLEAN AND BOLD, CONNOTING                                                                  information on how JCorp

FORWARD THINKING                                                           STRENGTH AND RESILIENCE   CORPORATE STATEMENT    PROPERTY DIVISION                       contributed to the state.
DRIVING SUSTAINABLE GROWTH - Johor Corporation
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SECTION 1                                                                                                                                                                                                                       SECTION 1
Corporate Statement                                                                                                                                                                                                               Corporate Statement
Johor Corporation / Annual Report 2019                                                                                                                                                                           Johor Corporation / Annual Report 2019

                                                                                                                                                                                                                                  CHAIRMAN’S

CHAIRMAN’S                                                                                                                                                                                                                         STATEMENT

STATEMENT JCORP’S TRANSFORMATION
                                         TO ENABLE PROSPEROUS
                                                JOHOR AGENDA
                                                  SINCE BEING GIVEN THE TRUST TO LEAD
                                                 THE JOHOR STATE GOVERNMENT, I HAVE
                                             BROUGHT THE PROSPEROUS JOHOR AGENDA
                                                 TO THE FOREFRONT, WHICH WILL FOCUS
                                                ON DEVELOPMENT IN AN EQUITABLE AND
                                             HOLISTIC MANNER FOR THE WELL-BEING AND
                                                         PROPSPERITY OF OUR CITIZENS.

                                         In our efforts to fully realise developments that benefit the
                                         people, an experienced strategic institution such as Johor
                                         Corporation (JCorp) is definitely needed to implement these
                                         aspirations.

                                         I am confident that JCorp will be able to accomplish the
                                         Prosperous Johor agenda through the execution of the Johor
                                         Sustainable Development Plan. The synergy between JCorp,
                                         State Government and related agencies involved in the
                                          development of Johor must also continue to be galvanised.           This role not only needs to be continued,     JCorp’s efforts to improve its market share   President and Chief Executive, as well
                                                                                                              but needs to be multiplied through            in its four core businesses – agriculture,    as JCorp’s Board of Directors who
                                            Johor requires a strategic plan to act intelligently, swiftly     expansion of business activities as well as   specialist healthcare, property as well       have led the new leadership within this
                                             and in an organised way to face the post-COVID-19 era.           the implementation of other important         as food and restaurant services will also     conglomerate.
                                                                                                              development projects for the people.          generate more revenue going forward.
                                                We need to unify our expertise, energy, focus and                                                                                                         I am confident that JCorp’s transformation
                                                other resources to fulfil this mission and achieve the        I have given and will always give my          I have also witnessed JCorp’s many            efforts will be emulated by other state
                                                state’s vision.                                               full support and cooperation towards          achievements in the agriculture sector,       development and investment agencies.
                                                                                                              JCorp’s transformation that began in          namely for the MD2 pineapple, Melita,
                                                  From the perspective of development, investment             2020. This transformation will be able to     which has succeeded in penetrating the        This initiative must also go hand-in-hand
                                                  and economic progress, the people should not be             bring JCorp to a higher level at both the     markets of multiple countries. In addition,   with new futuristic ideas, innovation,
                                                  looking at topline numbers only, but also take part         domestic and regional stage.                  downstream products such as tarts,            improvements in governance, moral
                                                 in these activities to benefit from the spill-over effects                                                 jam, juice and fresh-cut fruits have also     values, integrity and professionalism so
                                                of economic prosperity.                                       The idea to spread JCorp’s wings by           been well-received in the market.             that the Johor Prosperous agenda can be
                                                                                                              riding the Industrial Revolution 4.0 to                                                     quickly achieved.
                                              Through 34 industrial zones developed across the                enter business and industry also cannot       The government will also leverage on
                                           state, JCorp has succeeded in providing 220,000 job                be delayed further.                           JCorp’s expertise to help farmers and         May Allah SWT ease our tasks and bless
                                          opportunities. This is one of JCorp’s major contributions in                                                      growers succeed in its mission to plant       our devoted efforts.
                                         realising the Johor State Government’s agenda.                       The Internet as a platform for                Del Monte pineapples which has the
                                                                                                              technological business and the digital        potential to produce excellent returns.
                                                                                                              economy must be fully exploited in order
                                                                                                              to create entrepreneurs for the new           I also like to take this opportunity to       Johor Corporation
  DATUK HAJI HASNI BIN MOHAMMAD                                                                               economy.                                      heartily congratulate Yang Berbahagia         30 June 2020
  Menteri Besar Johor                                                                                                                                       Datuk Syed Mohamed Syed Ibrahim,
  Johor Corporation Chairman
DRIVING SUSTAINABLE GROWTH - Johor Corporation
P6                                                                                                                                                                                                       P7
SECTION 1                                                                                                                                                                              SECTION 1
Corporate Statement                                                                                                                                                                      Corporate Statement
Johor Corporation / Annual Report 2019                                                                                                                                 Johor Corporation / Annual Report 2019

                                                                                                                                                                                         CORPORATE

CORPORATE                                                                                                                                                                                STATEMENT

STATEMENT
DRAMATIC                                                                               JCORP IS NOW FOCUSING AND PREPARING THE
TRANSFORMATION TO                                                                   ORGANISATION TO STEP INTO THE NEW DECADE WHILE
REMAIN SUSTAINABLE                                                                      BRINGING JCORP TO A MUCH HIGHER LEVEL.
A HOST OF DEVELOPMENTS IN
OUR BUSINESS AND CORPORATE                                             of its stakeholders. Currently, the global      In line with this development, the Group
ACHIVEMENTS HAS COLOURED THE                                           economy has been seriously impacted             is being strengthened with various           FINANCIAL
YEAR 2019 FOR JOHOR CORPORATION.                                       by the COVID-19 outbreak, since                 systems and high-tech applications that      PERFORMANCE 2019
CONCURRENTLY, THIS ECONOMIC                                            January 2020 and it is now a global             are able to improve the efficiency of data
                                                                                                                                                                    REVENUE
INSTITUTION AND CHANGE AGENT                                           health emergency that has disrupted the         management and services in addition
                                                                                                                       to accelerating operational efficiency
FOR THE STATE HAS FACED FIERCE
CHALLENGES AND TAKEN DELIBERATE          MAIN BUSINESSES
                                                                       economy and global communities.
                                                                                                                       to provide a positive experience to our
                                                                                                                                                                    RM6,007                 million

STEPS TO ENSURE THE GROUP’S                                            EXPLORING THE FIFTH CORE                        customers – a vital element to succeed in    PROFIT BEFORE TAX
                                                                       BUSINESS                                        business now and in the future.
BUSINESS CONTINUES
TO BE RELEVANT AND
                                                                                                                                                                    RM384              million
                                                                       JCorp is now focusing and preparing             At the same time, JCorp continues to
COMPETITIVE AS WELL                                                                                                                                                 PROFIT AFTER TAX
                                                                       the organisation to step into the new           strengthen its four core businesses
AS CAPABLE IN THE
MARKET. IN ADDITION,                                    Kulim
                                                                       decade while bringing JCorp to a much
                                                                       higher level. The technology and digital
                                                                                                                       of plantations, property, health and
                                                                                                                       food through Kulim (Malaysia) Berhad
                                                                                                                                                                    RM295              million

THE UNCERTAIN                                           PG. 34         business is now being explored and built        (Kulim), Johor Land Berhad (JLand),
GLOBAL POLITICAL AND                                                   up to become JCorp’s fifth core business        KPJ Healthcare Berhad (KPJ Healthcare)
ECONOMIC CLIMATE                                                       to generate additional revenue. This            and QSR Brands (M) Holdings Bhd
HAS IMPACTED BOTH                                                      transformation is aligned with global           (QSR Brands) to remain dominant and
GLOBAL AND DOMESTIC                                                    trends that is essentially a computer in        relevant in the marketplace.
ACTIVITIES.                                                            constant communication as part of a
                                                                       sophisticated and perplexing system.
At the domestic level,
                                                      Specialist       Look at the developments occurring with
Johor Corporation (JCorp)                             Healthcare       the Industrial Revolution 4.0 (IR4.0) that is
was also affected. The main                            PG. 42
                                                                       seeing automation, drones and robotics
factors were the effects of
                                                                       taking over the roles of humans. Digital
the trade war between US
                                                                       applications and wireless technology for
and China, in addition to
                                                                       the fifth-generation cellular network (5G)
falling commodity prices in
                                                                       powers the way life is conducted around
the world market, especially
                                                                       the world now.
crude oil and crude palm oil.
This situation required JCorp
                                                       Property        This fifth core business calls on JCorp
to drastically change its business                      PG. 58
                                                                       to venture into the areas where we have
and      operations,     including
                                                                       expertise. This involves products that
going into new portfolios to
                                                                       are based on innovation and intellectual
generate new income in the
                                                                       property, such as industrial and operations
future. This action is required
                                                                       management, corporate responsibility
to enable JCorp to continue
                                                                       management, the establishment of waqaf
its business and maintain its
                                                                       and the commercialisation of certain
position in the market, while                      Food & Restaurant   business and services modules.
upholding the confidence                               Services
                                                        PG. 48
DRIVING SUSTAINABLE GROWTH - Johor Corporation
P8                                                                                                                                                                                                                              P9
SECTION 1                                                                                                                                                                                                    SECTION 1
Corporate Statement                                                                                                                                                                                            Corporate Statement
Johor Corporation / Annual Report 2019                                                                                                                                                        Johor Corporation / Annual Report 2019

CORPORATE                                                                                                                                                                                                       CORPORATE
STATEMENT                                                                                                                                                                                                       STATEMENT

TRANSFORMATION &                                                                                                                                                                       million, whereas net assets improved
ORGANISATIONAL STRUCTURE                                                                                                                                                               to RM1.45 billion compared to RM1.40
                                                                                                                                                                                       billion in the same period. Damansara
JCorp continues to place a high priority                                                                                                                                               Assets Sdn Bhd recorded income of
on identifying risks in the market as well as                                                                                                                                          RM158.6 million compared to RM133.7
its impact on business and stakeholders,                                                                                                                                               million.
eventhough returns may be attractive
and profitable. In this context, JCorp will                                                                                                                                            QSR Brands which drives the food
enter 2020 more cautiously, strategically                                                                                                                                              business via KFC and Pizza Hut
and with unwavering wisdom. Reviews,                                                                                                                                                   demonstrated excellent performance.
corrections and audits are carried                                                                                                                                                     KFC Malaysia recorded revenue of
out to identify weaknesses, strengths,                                                                                                                                                 RM2.8 billion, growing by 2.2% on
potential or shortcomings in corporate                                                                                                                                                 the RM2.74 billion recorded last year.
governance, finances, procurement                                                                                                                                                      Pizza    Hut,   meanwhile,      achieved
as well as operations, through their                                                                                                                                                   outstanding revenue growth for the 3rd
respective control measures.                                                                                                                                                           consecutive year with RM596 million,
                                                                                                                                                                                       a 6.6% increase compared to 2018.
With      these   changes    and     new                                                                                                                                               The success of both these brands was
requirements, JCorp will not neglect the                                                                                                                                               the result of dedicated commitment
skills of its employees in order to carry                                                                                                                                              to strategy, branding, exciting product
out this transformation that is intended                                                                                                                                               innovation and digital transformation for
to elevate JCorp’s honour and status to a                                                                                                                                              customer convenience.
podium of excellence as Johor’s strategic
institution.                                                                                                                                                                           ISLAMIC BUSINESS
                                                from our role, vision and mission that is   and food (QSR Brands) remains solid and
In accordance with Islamic teachings,           clearly outlined in the Johor Corporation   relevant as markets all over were plagued                                                  At the same time, the potential of Waqaf
JCorp emphasises the philosophy that            Enactment No. 4, 1968 (Amendment No.        by a variety of sentiments throughout                                                      An-Nur Corporation Berhad (WANCorp)
duty and responsibility must be carried         5, 1995).                                   2019.                                                                                      continues to be honed. The space and
out skilfully and with excellence. Thus,                                                                                                                                               opportunities for WANCorp to leverage
JCorp’s core values and corporate               Examples of the drastic steps taken         Kulim remained resilient even though                                                       its potential, role and achievements have
culture have been streamlined to                included reviewing and reorganising         it was impacted by the decline in crude                                                    been identified. WANCorp will also be
strengthen the personalities of every           the    organisational   structure   and     palm oil and palm kernel prices in                                                         directed to explore other new areas
employee who will need to be at their           business plan to obtain optimal results,    the international commodity market                                                         including the Islamic Business that will be
best for an organisation like JCorp.            in addition to the implementation of        throughout     2019.    This   scenario                                                    able to improve capabilities and earnings
Through this, JCorp is confident that           the Transformation Plan 2020-2022 that      was overcome through corporate                                                             to strengthen the socioeconomic agenda
the full commitment of its employees            has succeeded and greatly impacted          developments that strengthened its          billion in 2019 compared to RM3.4 billion      of the ummah.
will be able to move this development           JCorp and Johor especially. Focus was       foundations and optimised its portfolio.    the year before, mainly contributed by
agency to succeed in its transformation,        also given on how to mitigate economic      Some of these actions included realising    an increase in patient numbers. This           Noting     WANCorp’s       achievements
that will bring JCorp to a higher level,        weakness because of the effects of          investments, exploring new business         achievement was a result of an ongoing         throughout 2019, we are confident it
to be sustainable and relevant while            the health emergency post-COVID-19,         sectors and strengthening the marketing     strategy to increase the capacity of all       is able to progress further. Besides its
contributing to the people’s well-being.        as well as the new global landscape that    of agribusiness products.                   hospitals in its network.                      main responsibility as JCorp’s corporate
                                                has been redrawn.                                                                                                                      social responsibility arm, the scope of
To realise and achieve this transformation                                                                                              JCorp’s property development and               WANCorp’s activities and programmes
goal, drastic actions through the               CORE BUSINESS PERFORMANCE                   Meanwhile, KPJ Healthcare succeeded         investment arm, JLand, faced a tepid           which include religion, charity and
intelligence process – wise but firm,                                                       in increasing its revenue despite a         market with Johor recording the highest        society, education and entrepreneur
prudent with managed risk; have been            The performance of our four core            challenging   business    environment.      level of unsold properties in the first half   development will be reorganised,
taken by JCorp. This has been done              businesses, plantations under Kulim,        The network of specialist hospitals         of 2019 at 18.8%. However, this did not        strengthened and expanded.
without compromising or absconding              property (JLand), health (KPH Healthcare)   recorded revenue growth of 7% or RM3.6      prevent JLand from raking in revenue
                                                                                                                                        of RM400 million compared to RM374
DRIVING SUSTAINABLE GROWTH - Johor Corporation
P 10                                                                                                                                                                                                                                                                       P 11
SECTION 1                                                                                                                                                                                                                                                 SECTION 1
Corporate Statement                                                                                                                                                                                                                                         Corporate Statement
Johor Corporation / Annual Report 2019                                                                                                                                                                                                     Johor Corporation / Annual Report 2019

CORPORATE                                                                                                                                                                                                                                                    CORPORATE
STATEMENT                                                                                                                                                                                                                                                    STATEMENT

                                                                                                                                                                                                                                   appreciation and thanks to all, especially
                                                                                                                                                                                                                                   the Johor State Government and the
                    JCORP IS READY TO OVERCOME EXTERNAL                                                                                                                                                                            Federal Government, together with their
                                                                                                                                                                                                                                   departments and agencies as well as
               UNCERTAINTIES THAT HAVE BEEN AGGRAVATED BY THE                                                                                                                                                                      other stakeholders including bank and
                                                                                                                                                                                                                                   financial advisors on the commitment
                ABNORMALITIES SET OFF BY THE DISRUPTION EDGE.                                                                                                                                                                      given.

                                                                                                                                                                                                                                   We also pay tribute and offer our thanks to
FACING CHALLENGES                               Iskandar, Bandar Dato’ Onn, Johor Bahru.
                                                                                            01   DYMM Sultan Johor inspecting the                                                                                                  our customers, strategic partners, media
                                                                                                 automated MD2 pineapple harvesting                                                              02   DYMM Permaisuri Johor        and our biggest stakeholders which
JCorp is ready to overcome external             The Sultan of Johor also graced Kulim            process at the Kulim Pineapple Farm.                                                                 visiting patiens at the
                                                                                                                                                                                                      Tunku Laksamana Johor
                                                                                                                                                                                                                                   include our individual and institutional
uncertainties that have been aggravated         Pineapple Farm Sdn Bhd, Ulu Tiram
                                                                                                                                                                                                      Hermatology Ward, Hospital   shareholders of the Group’s companies
by the abnormalities set off by the             which was the final stopover location for                                                                                                             Sultanah Aminah, Johor.      - KPJ Healthcare, E.A. Technique Berhad,
disruption edge. The effect of 5G               the Program Kembara Mahkota Johor
                                                                                                                                                                                                                                   Al-Salam REIT and Al-‘Aqar Healthcare
technology and technological shock              2019 convoy on 22 July 2019. The Sultan
                                                                                                                                                                                                                                   REIT; who have given or stated their
resulting from the game changers of             of Johor also officiated the launch of
                                                                                                                                                                                                                                   commitment to all our corporate plans,
artificial intelligence, robotics and drones    Menara JLand at KOMTAR JBCC, on
                                                                                                                                                                                                                                   investments and business transactions
has exceeded the logical boundaries             27 November 2019.                                                                                                                                      received its MS ISO         throughout 2019.
of mankind. These developments will                                                                                                                                                                    37001: 2016 Anti
constantly be monitored and analysed            On 17 April 2019, The Queen of Johor                                                                                                                   Bribery Management          This note would only be complete with
considering how these technologies              officiated the launch of The Caring                                                                                                                    Systems        (ABMS)       our highest thanks and appreciation to
could dominate the world’s intelligence         Home By Pizza Hut at Hospital Sultanah                                                                                                                 certification.   Kulim      the entire JCorp Board Members for all
through robots that are taking over             Aminah, Johor Bahru. Prior to the event,                                                                                                               was awarded Best            their invaluable input and contributions,
human roles one by one. Like other              His Royal Highness Tunku Mahkota of                                                                                                                    Annual          Report      be it in the form of guidance, wisdom or
entities, JCorp is faced with reputational,     Johor officiated the handover of offer                                                                                                                 Of          Non-Listed      experience that they have accorded to
brand and image risk, as well as slander        letters for Rumah Impian Bangsa Johor at                                                                                                               Organisations while         ensure that JCorp remains relevant.
and misinformation on social media              Terminal Larkin Sentral on 3 March 2019.                                                                                                               Kulim’s     Laboratory
that is difficult to control. Therefore, this                                                                                                                                                          Unit received the           It is clear and proven that the contributions
issue will be managed with speed and            Meanwhile, JCorp and all its employees                                                                                                                 IKM         Laboratory      from all quarters have enabled JCorp
intelligence.                                   would like to extend our heartfelt                                                                                                                     Excellence      Award;      to accelerate its operations on a strong
                                                congratulations to YAB Datuk Hasni                                                       JCorp also acknowledges YB Dato’          KPJ Pasir Gudang Specialist Hospital            platform that has the capability to
CORPORATE EVENTS                                Mohammad on his appointment as                                                           Ishak Sahari; YBhg Datuk Seri Dr Ismail   received the International Hospital             overcome challenges in a new phase of
                                                Johor’s 18th Menteri Besar and JCorp’s                                                   Haji Bakar; YBhg Datuk Siti Zauyah Md     Federation Award 2019; and JLand                our corporate journey to a higher level at
There were numerous highlights and              new Chairman. This mandate was last                                                      Desa; YBhg Dato’ Azman Mahmud; YBhg       celebrated its recognition at the Malaysia      the national and even regional stage.
corporate events colouring JCorp’s year         held by YB Dato’ Dr Sahruddin Haji Jamal                                                 Datuk Dr Hafsah Hashim; YB Datuk Dr       Property Awards 2019 for the categories
in 2019. Through this avenue, JCorp             and JCorp would like to record our                                                       Shahruddin Md Salleh; and YBhg Datuk      of International Real Estate Federation
would like to take this opportunity to          deepest thanks and appreciation for his                                                  Ibrahim Ahmad for their guidance,         and Master Plan.
express our utmost gratitude to His             contributions.                                                                           support, wisdom and expertise while on
Majesty The Sultan of Johor and Her                                                                                                      JCorp’s Board of Directors.               HEARTFELT TRIBUTE
Majesty The Queen of Johor for gracing          JCorp and all its employees would
a number of ceremonies organised by             also like to wish a warm welcome to         I would also like to take this opportunity   AWARDS & RECOGNITION                      Strong cooperation and staunch support
JCorp throughout the year.                      YB Tuan Amir Nasruddin; YBhg Dato’ Asri     to acknowledge and offer our sincere                                                   of all our stakeholders has enabled
                                                Hamidon; YBhg Dato’ Saiful Anuar Lebai      thanks and gratitude to YB Dato’             Our corporate achievements are also       JCorp to fulfil its role and carry out its
On 28 May 2019, His Majesty The Sultan          Hussen; YBhg Datuk Nor Azri Zulfakar;       Kamaruzzaman Abu Kassim, who led this        measured through recognition and          mandate while moving closer to its
of Johor, Her Majesty The Queen of Johor        and YBhg Dato’ Sr Hisham Jafrey on          institution from October 2010 until his      awards from independent organisations     goals. Thus, in representing JCorp and
and His Royal Highness Tunku Mahkota            their appointments as new Directors on      retirement in December 2019.                 and standard bearers. In 2019, JCorp      the Group, I wish to extend my deepest
of Johor officiated Johor Corporation           JCorp’s Board of Directors.
2019 breaking fast event at Masjid Sultan
DRIVING SUSTAINABLE GROWTH - Johor Corporation
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SECTION 1                                                                                                                                            SECTION 2
Corporate Statement                                                                                                                                 About Johor Corporation
Johor Corporation / Annual Report 2019                                                                                                Johor Corporation / Annual Report 2019

CORPORATE
STATEMENT
                                            CORPORATE PROFILE &
                                            INFORMATION
                                                  Johor Corporation was established as a public enterprise and a statutory body
                                                     via Johor Corporation Enactment No. 4 , 1968 (Amendment No. 5 , 1995).

                                                                                   As a State-owned Conglomerate, Johor Corporation through its Group of
                                            Registered Office                      Companies are involved in core businesses encompassing:
                                            JOHOR CORPORATION
                                            Level 11, Menara KOMTAR                •   Plantations – Kulim (Malaysia) Berhad.
                                            Johor Bahru City Centre                •   Specialist Healthcare – KPJ Healthcare Berhad.
                                            80000 Johor Bahru, Johor, Malaysia.    •   Property - TPM Technopark Sdn Bhd, TLP Terminal Sdn Bhd, Johor Land Berhad,
                                            Telephone : +607-219 2692                  Damansara Assets Sdn Bhd, Al-‘Aqar Healthcare REIT and Al-Salām REIT.
                                            Fax         : +607-223 3175            •   Food & Restaurant Services – QSR Brands (M) Holdings Bhd.
                                            Email       : enquiries@jcorp.com.my

                                                                                   Johor Corporation is a domestic market leader in a number of core businesses
                                                                                   and has expanded its operations overseas.
                                            Branch Office
                                                                                   The Plantations Business owns operations and interests in:
                                            JOHOR CORPORATION
                                                                                   • Malaysia: 50,851 hectares.
                                            CAWANGAN KUALA LUMPUR
                                                                                   • Indonesia: 14,511 hectares.*
                                            Level 11, Menara JCorp
                                                                                       (*Area granted under Right of Exploitation (HGU)).
                                            No 249 Jalan Tun Razak
                                            50400 Kuala Lumpur, Malaysia.
                                            Telephone : +603-2787 2692
                                            Fax         : +603-2787 2700           Specialist Healthcare business spearheaded by KPJ Healthcare Berhad, has
                                                                                   expanded to:

                                                                                   •   Jakarta, Indonesia.
ACKNOWLEDGEMENTS                                                                   •   Brisbane, Australia.
                                            Auditor
                                            Ernst & Young                          •   Bangkok, Thailand.
Thanks, congratulations and a deep          Level 23A, Menara Milenium,            •   Dhaka, Bangladesh.
appreciation must go out to our 62,000      Jalan Damanlela
employees of the JCorp Group that are       Pusat Bandar Damansara,
totally committed, dedicated, capable       Kuala Lumpur, 50490, Malaysia.
and hardworking to fulfil the mandate                                              Food & Restaurant Services have spread from Malaysia to:
that has been given. They have served
while holding firm to our core values,                                             •   Singapore (KFC & Pizza Hut).
corporate culture values, integrity and     Principal Banker                       •   Brunei (KFC).
                                            MAYBANK                                •   Cambodia (KFC).
compliance to corporate governance
                                            Lot M1-22, 106-108 City Square
procedures. Our ongoing transformation
                                            Jalan Wong Ah Fook
can only succeed with the support of
                                            80000 Johor Bahru, Johor, Malaysia.
each and every employee as they are the
                                                                                   Four listed companies on Bursa Malaysia:
source of JCorp’s strength that will push
us through new economic challenges
to achieve our vision and mission –                                                •   KPJ Healthcare Berhad.
                                                                                   •   E.A. Technique (M) Berhad.
Membina dan Membela
                                                                                   •   Al-‘Aqar Healthcare REIT.
                                                                                   •   Al-Salām REIT.
Johor Corporation
30 June 2020
DRIVING SUSTAINABLE GROWTH - Johor Corporation
P 14                                                                                                                                                                                                                                                      P 15
SECTION 2                                                                                                                                                                                                                                SECTION 2
About Johor Corporation                                                                                                                                                                                                                 About Johor Corporation
Johor Corporation / Annual Report 2019                                                                                                                                                                                    Johor Corporation / Annual Report 2019

                                                                                                                                                                                                                                            CORPORATE

CORPORATE                                                                                                                                                                                                                                   STRUCTURE

STRUCTURE

                             51%                   Kumpulan         100%                                   36.14%                 96.07%
       Lablink (M)
                                                Perubatan (Johor)
        Sdn Bhd
                                                    Sdn Bhd
                                                                                                                                                                                100%                            100%                                  80%
                                                                                                  38.61%
                                                                                                                                                          100%
                             65%                  Point Zone (M)    100%                                                                                                Mahamurni
                                                                                                                                                                                                        EPA Management                       Kulim Energy
                                                     Sdn Bhd                                                                                                            Plantations
                                                                                                                                                                                                            Sdn Bhd                            Sdn Bhd
                                                                                                                                           2.56%                         Sdn Bhd

                                                                                                                                                                                75%                             75%
                                                                                      Business                                                          50.60%
                             100%                Massive Equity     56%                                    100%
                                                                                     Chronicles
                                                   Sdn Bhd
                                                                                      Sdn Bhd

                             100%

                                                                    77.62%         SPMB Holdings           100%
                                                                                                                                   100%
                                                                                      Sdn Bhd
                                                                                                                                                                                                                                    48.02%            4.21%
                                                                                                                                                                                100%                            100%

                                                                                       N2W                 100%                                    11.82%                                               Bukit Damansara
                                                                                    Corporation                                                                                                          Development
                                                                                     Sdn Bhd                                                                                                                Sdn Bhd
                             100%                                                                                                 88.18%

                                                                                                                                                                                100%                            100%                                  100%
                                                                                                           100%
                                                                                                                                                    Ibrahim                                                                                  Bandar Baru
                                                                                                                                    60%          International                                            Johor City
                                                                                                                                                                                                                                               Majidee
                                                                                                                                               Business District                                         Development
                                                                                                                                                                                                                                             Development
                                                                                                                                               (Johor) Sdn Bhd                                             Sdn Bhd
                                                                                                                                                                                                                                               Sdn Bhd

                                                                                                                                                                                75%                             100%                                  100%

  Plantation          Specialist         Food &          Property   Intrapreneur      Shipping         Port/Logistic   Industry    Intrapreneur         Investment   WANCorp/          Significant              Management                 Real Estate
                      Healthcare         Restaurant                                                                                Development          Holding      OBA               Direct Holding                                      Investment Trust
                                         Services                                                                                                                                                                                          (REIT)
DRIVING SUSTAINABLE GROWTH - Johor Corporation
P 16                                                                                                                                                                             P 17
SECTION 2                                                                                                                                                       SECTION 2
About Johor Corporation                                                                                                                                        About Johor Corporation
Johor Corporation / Annual Report 2019                                                                                                          Johor Corporation / Annual Report 2019

       BOARD of DIR ECTORS’ Profile
DATUK HAJI
HASNI BIN                                                                              DATO’ HAJI
                                            TAN SRI DR ALI                             AZMI BIN
MOHAMMAD                                    BIN HAMSA                                                                       DATO’ HAJI A. RAHIM
Chief Minister of Johor
                                            Deputy Chairman
                                                                                       ROHANI
Chairman Johor Corporation                  Johor Corporation
                                                                                       State Secretary of Johor             BIN HAJI NIN
                                                                                       Appointed Director of Johor          State Financial Officer of Johor
He was appointed as Chairman of Johor       He was appointed the Director of
                                                                                       Corporation effective 1 January      Appointed Director of Johor Corporation representing the
Corporation Board of Directors effective    Johor Corporation effective
                                                                                       2017. He holds a Bachelor            State Government effective 20 October 2017. He holds
28 February 2020. He holds a Bachelor       1 November 2009. Beginning
                                                                                       of Science (Human Resource           a Bachelor of Arts (Hons) in Economics from Universiti
of Science in Civil Engineering from        15 June 2020, he was appointed
                                                                                       Development) from Universiti         Kebangsaan Malaysia. He is currently the State Financial
the University of Missouri, Rolla, United   the Deputy Chairman as well as
                                                                                       Teknologi Malaysia obtained          Officer of Johor.
                                            Independent Director of Johor
States of America. He is now the Chief                                                 in 2004 and a Bachelor of
                                            Corporation. He holds a Philosophy
Minister of Johor.                                                                     Development (Economic and
                                            Doctorate (PhD) from Oklahoma State
                                                                                       Management) from Universiti
                                            University in 1997, MS (Economics)
                                                                                       Kebangsaan Malaysia obtained
                                            from Oklahoma State University in
                                                                                       in 1990. He is currently the State
                                            1986, B.A (Hons) from University of
                                                                                       Secretary of Johor.
                                            Malaya in 1979 and Diploma in Public
                                            Management from INTAN in 1980.

                                            DATUK SYED
                                            MOHAMED BIN
                                            SYED IBRAHIM                               TUAN
                                            President & Chief Executive                AMIR BIN
                                            Johor Corporation

                                            He was appointed President & Chief
                                                                                       NASRUDDIN
                                                                                       State Legal Advisor of Johor
                                            Executive and Director of Johor
                                            Corporation effective 9 Januari 2020.      He was appointed Director of
                                            He holds a Degree in Economic
                                                                                       Johor Corporation effective
                                            Analysis from Universiti Malaya and
                                            continued with the Senior Management       1 January 2020. He obtained
                                            Development in Public Enterprise           a Diploma in Law and an
                                            programme in Harvard University.           Advanced Diploma in Law (LLB
                                            He is also Chairman and Board Director     Honours) from Institut Teknologi
                                            of Prasarana Integrated Development
                                            Sdn Bhd, Board Director of Yayasan         MARA in 1994. He is currently
                                            Sultan Ibrahim Johor, Yayasan Kanser       the State Legal Advisor of Johor.
                                            Tunku Laksamana Johor and Iskandar
                                            Seafront Assets Sdn Bhd. Prior to this,
                                            he was the Chairman of FELDA
                                            Investment Corporation; President
                                            & Executive Chairman of Iskandar
                                            Waterfront Holdings Sdn Bhd. He is
                                            also a Board Director for Yayasan Sultan
                                            Ibrahim Johor and Yayasan Kanser
                                            Tunku Laksamana Johor.
P 18                                                                                                                                                                   P 19
SECTION 2                                                                                                                                              SECTION 2
About Johor Corporation                                                                                                                              About Johor Corporation
Johor Corporation / Annual Report 2019                                                                                                 Johor Corporation / Annual Report 2019

BOARD OF DIRECTORS’                                                                                                                     BOARD OF DIRECTORS’
PROFILE                                                                                                                                             PROFILE

                                              DATO’ SAIFUL                            DATO’ SR.
                                              ANUAR                                   HISHAM BIN
DATO’ ASRI BIN                                BIN LEBAI                               JAFREY
HAMIDON                                       HUSSEN
                                                                                      Managing Director, ARH
                                                                                      Jurukur Bahan Sdn Bhd
Treasury Secretary-General
Ministry of Finance
                                              Secretary General, Ministry of          Appointed Director of Johor         NURALIZA BINTI
                                              Economic Affairs
Board of Directors Johor Corporation
                                              Appointed Director of Johor
                                                                                      Corporation effective 1 May
                                                                                      2020. He holds a degree in
                                                                                                                          ABDUL RAHMAN
He was appointed the Director of Johor                                                Quantity Surveying from the         Assistant Secretary
                                              Corporation effective 1 October
Corporation effective 15 Jun 2020. He has                                             Leeds Metropolitan University,      She was appointed as Johor Corporation Assistant
                                              2019. He holds a Bachelor of
a Bachelor’s Degree in Economics from                                                 United Kingdom. He is a Fellow of   Secretary on 1 March 2020. She has a Professional
                                              Economics (Development) from
the Hiroshima University, Japan. Prior to                                             the Royal Institution of Surveyor   Degree from the Institute of Chartered Secretaries
                                              Universiti Kebangsaan Malaysia.
this, he was the Treasury Deputy Secretary-                                           Malaysia and a Member of the        and Administrators (ICSA)(UK). She began serving
                                              Prior to this, he held the position
General (Policy). He is now the Treasury                                              Royal Institute of Chartered        in Johor Corporation from 1 October 1997.
                                              of Deputy Secretary-General
Secretary-General.                                                                    Surveyors, United Kingdom.          She currently holds the position of Company
                                              (Management) at the Ministry of
                                              Health. He is currently the Director-   In addition, he is also on the      Secretary Department Head, Johor Corporation.
                                              General, Economic Planning Unit,        Industry Member Advisory Panel of
                                              Prime Minister’s Department.            SEGi University.

                                              DATUK NOR
                                              AZRI BIN                                MOHD
                                              ZULFAKAR                                NORDIN
                                              Director-General,
                                              Implementation and                      JAMALUDIN
                                              Coordination Unit,                      Secretary Johor Corporation
                                              Prime Minister’s Office                 He was appointed Secretary
                                              Appointed Director of Johor             of Johor Corporation effective
                                              Corporation effective 8 March           2 February 2020. He holds
                                              2020. He holds a Degree                 a Bachelor of Law from the
                                              in Business Administration              University of West London,
                                              (Financial Management) from             United Kingdom. He began
                                              the Massachusetts Institute of          serving with Johor Corporation
                                              Technology (MIT), Cambridge             on 2 February 2020. He currently
                                              Massachusetts, United States of         holds the position of Head
                                              America. Prior to this, he was a        of Corporate Services,
                                              Board Director for the Penang           Johor Corporation.
                                              Regional Development Authority
                                              (PERDA).
P 20                                                                                                                                                                                                                        P 21
SECTION 3                                                                                                                                                                                                  SECTION 3
Financial Review                                                                                                                                                                                                  Financial Review
Johor Corporation / Annual Report 2019                                                                                                                                                      Johor Corporation / Annual Report 2019

                                                                                                                                                                    STATEMENTS OF COMPREHENSIVE INCOME

STATEMENTS OF                                                                                                                                                           FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019
                                                            Group               Corporation                                                                            Group                           Corporation
                                                         2019          2018     2019             2018                                                                2019          2018                2019              2018
                                                 Note               Restated                  Restated                                                                          Restated                              Restated

Continuing operations                                                                                     Other comprehensive income, to be reclassified to
Revenue                                           4     6,007          5,657    566               460       profit or loss in subsequent periods:

Cost of sales                                           (4,217)       (3,967)   (155)             (194)     Foreign currency translation of foreign
                                                                                                              operations                                                5            46                     -                  -
Gross profit                                            1,790          1,690    411               266
                                                                                                          Other comprehensive income/(loss), not to be
                                                                                                            reclassified to profit or loss in subsequent periods:
Other items of income
                                                                                                            Fair value adjustment for financial assets at
Other income                                      5       381           376     112               370         FVOCI                                                    (4)          (199)                   -                  -
                                                                                                            Fair value adjustment for financial assets at
Other items of expense                                                                                        FVOCI in relation to disposal of subsidiary              99              -                    -                  -

  Distribution expenses                                    (43)          (54)     (1)               (1)     Net surplus from revaluation of property, plant
                                                                                                              and equipment                                            42            89                     -                  -
  Administrative expenses                               (1,220)       (1,144)   (155)             (136)
                                                                                                            Surplus on transfer of property, plant and
  Other expenses                                  6      (178)          (147)    (68)             (194)
                                                                                                              equipment to investment property                          5              -                    -                  -
  Finance costs                                   7      (470)          (451)   (137)             (152)
                                                                                                            Disposal of property, plant and equipment                  (6)             -                    -                  -
Share of results of associates, net of tax                 27            27        -                 -
                                                                                                          Other comprehensive income/(loss), for the financial
Share of results of joint ventures, net of tax             97            91        -                 -
                                                                                                            year, net of tax                                          141            (64)                   -                  -
Profit before tax from continuing operations      8       384           388     162               153
                                                                                                          Total comprehensive income for the financial year           429           148                 164                 159
Tax                                               11       (89)         (172)      2                 6
                                                                                                          Profit attributable to:
Profit from continuing operations, net of tax             295           216     164               159
                                                                                                            Owner of the Corporation                                  101            62                 164                 159

                                                                                                            Non-controlling interests                                 187           150                     -                  -
Discontinued operations
Loss from discontinued operations, net of tax     12        (7)           (4)      -                 -                                                                288           212                 164                 159

Profit net of tax                                         288           212     164               159     Total comprehensive income attributable to:

                                                                                                            Owner of the Corporation                                  217            (99)               164                 159

                                                                                                            Non-controlling interests                                 212           247                     -                  -

                                                                                                                                                                      429           148                 164                 159
P 22                                                                                                                                                                                                                                                                               P 23
SECTION 3                                                                                                                                                                                                                                                       SECTION 3
Financial Review                                                                                                                                                                                                                                                         Financial Review
Johor Corporation / Annual Report 2019                                                                                                                                                                                                           Johor Corporation / Annual Report 2019

                                                                                                                                                                                                                             STATEMENTS OF FINANCIAL POSITION

STATEMENTS OF                                                                                                                                                                                                                FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

FINANCIAL POSITION
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019
                                                                     Group                                   Corporation                                                                                        Group                                    Corporation
                                                      31.12.2019   31.12.2018     01.01.2018    31.12.2019   31.12.2018    01.01.2018                                                            31.12.2019   31.12.2018     01.01.2018    31.12.2019    31.12.2018       01.01.2018
                                              Note                    Restated       Restated                   Restated      Restated                                                   Note                    Restated       Restated                    Restated         Restated

ASSETS                                                                                                                                   EQUITY AND LIABILITIES
Non-current assets                                                                                                                       Current liabilities
Property, plant and equipment                  13          8,928       10,601         10,569          352           597           529    Current tax liabilities                                        35              34           63              -               -                -
Right-of-use assets                            14          2,079              -             -         253              -             -   Lease liabilities                                30            47               -             -            6                -                -
Inventories                                    15           493           737            759           34           261           365    Loans and borrowings                             31          2,123         2,635          2,307            3            807                11
Investment properties                          16          4,704         4,265          3,549        1,982         1,875         1,499   Trade and other payables                         32          2,119         1,788          2,022        1,164            391             1,058
Biological assets                              17              -             2             1             -             -             -   Contract liabilities                             26            95              78           20            12                -                -
Intangible assets                              18           251           252            250             -             -             -   Derivative financial instrument                  27             3               2            2              -               -                -
Investment in subsidiaries                     19              -              -             -        3,378         3,151         3,327                                                                4,422         4,537          4,414        1,185           1,198            1,069
Investment in associates                       20           300           282            268            4             4             4    Liabilities directly associated with disposal
Investment in joint ventures                   21          1,760         1,701          1,583            -             -             -      group classified as held for sale             29              -          180            203              -               -                -

Deferred tax assets                            22           210           171            170          148           118            82                                                                 4,422         4,717          4,617        1,185           1,198            1,069

Financial assets at Fair Value through                                                                                                   Net current assets/(liabilities)                               64           (57)          (236)         234             221               188
  Other Comprehensive Income                                                                                                             Non-current liabilities
  ("FVOCI")                                   23(a)          28              20          215             -             -             -
                                                                                                                                         Trade and other payables                         32           442           439            271         1,067           1,100              378
Financial assets at Fair Value through
                                                                                                                                         Other long term liabilities                      33          1,227         1,235          1,056         958             934               783
  Profit or Loss (“FVTPL”)                    23(b)           2               -             -            -             -             -
                                                                                                                                         Deferred tax liabilities                         22           789           808            772          266             241               211
Trade and other receivables                    25            40              23           65             -             -             -
                                                                                                                                         Loans and borrowings                             31          7,272         6,642          6,387        1,789           1,808            2,609
                                                         18,795         18,054         17,429        6,151         6,006         5,806
                                                                                                                                         Lease liabilities                                30            81               -             -           16                -                -
Current assets
                                                                                                                                                                                                      9,811         9,124          8,486        4,096           4,083            3,981
Inventories                                    15          1,592         1,314          1,346         900           665           707
                                                                                                                                         Total liabilities                                          14,233         13,841         13,103        5,281           5,281            5,050
Biological assets                              17            29              21           31             -             -             -
                                                                                                                                         Net assets                                                   9,048         8,873          8,707        2,289           2,144            2,013
Contract costs                                 24             7               2            4             -             -             -
                                                                                                                                         Equity
Trade and other receivables                    25          1,017         1,078          1,194         159           290           143
                                                                                                                                         Capital reserves                                34(a)         391           392            392            55              55               55
Contract assets                                26           134           129             61           39            76              -
                                                                                                                                         Asset revaluation reserve                       34(b)         159           149            123              -               -                -
Financial assets at Fair Value through
  Profit or Loss ("FVTPL")                    23(b)           5               4            5           21            20            56    Currency fluctuation reserve                    34(c)           9           (66)           (43)             -               -                -

Tax recoverable                                             118              83           68            1             4             4    FVOCI reserve                                   34(d)         (99)          (95)            69              -               -                -

Cash and bank balances                         28          1,136         1,239           877          116           119            30    Revenue reserve                                 34(e)        6,058         6,066          5,913        2,234           2,089            1,958

                                                           4,038         3,870          3,586        1,236         1,174          940                                                                 6,518         6,446          6,454        2,289           2,144            2,013

Assets of disposal group classified as held                                                                                              Non-controlling interests                                    2,530         2,427          2,253             -               -                -
  for sale                                     29           448           790            795          183           245           317    Total equity                                                 9,048         8,873          8,707        2,289           2,144            2,013
                                                           4,486         4,660          4,381        1,419         1,419         1,257   Total equity and liabilities                               23,281         22,714         21,810        7,570           7,425            7,063
Total assets                                             23,281         22,714         21,810        7,570         7,425         7,063
P 24                                                                                                                                                                                                                                       P 25
SECTION 3                                                                                                                                                                                                                 SECTION 3
Financial Review                                                                                                                                                                                                                 Financial Review
Johor Corporation / Annual Report 2019                                                                                                                                                                     Johor Corporation / Annual Report 2019

                                                                                                                                                                                                 STATEMENTS OF CASH FLOWS

STATEMENTS OF                                                                                                                                                                          FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019                                                                                                                                         Group                            Corporation
                                                                                                                                                                                   2019           2018                2019               2018
                                                                                                                                                                                               Restated                               Restated
                                                               Group               Corporation
                                                            2019          2018     2019             2018     Changes in working capital
                                                                       Restated                  Restated
                                                                                                             Inventories                                                             (39)          (158)                (11)               (156)
OPERATING ACTIVITIES                                                                                         Receivables                                                             54            505                  (48)               213
Profit before tax:                                                                                           Contract assets                                                          (5)           (68)                   -                  -
  Continuing operations                                      384           388     162               153     Payables                                                               239            (226)               984                 234
  Discontinued operations                                      (8)           (5)      -                 -    Contract liabilities                                                    15             58                     -                  -
Adjustments:                                                                                                 Associates and joint ventures                                           42              (5)                   -                  -
  Property, plant and equipment:
                                                                                                             Cash generated/(used in) from operations                              1,371          1,064                917                 219
     Net gain on disposal                                     (10)          (31)      -                 -
                                                                                                             Tax refunded                                                            45               8                   3                   -
     Written off                                                4             1       -                 -
                                                                                                             Tax paid                                                               (205)          (223)                 (3)                  -
     Depreciation                                            391           426        6               23
     Impairment loss                                          10            29        2                 -
                                                                                                             Net cash generated from operating activities                          1,211           849                 917                 219
  Right-of-use assets
     Depreciation                                             70              -     22                  -    INVESTING ACTIVITIES
  Investment properties:                                                                                     Proceeds from disposal of investment in:
     Changes in fair value                                   (165)          (65)    (74)             (183)
                                                                                                               Subsidiaries                                                            -              -                    -                 52
     Net loss/(gain) on disposal                                -             1       -                 5
                                                                                                               Financial assets at fair value through profit or loss                   -              5                    -                  -
  Biological assets:
                                                                                                             Acquisition of additional interest in subsidiaries                        -             (2)                (17)                (60)
     Changes in fair value                                     (2)            7       -                 -
                                                                                                             Dividend received from subsidiaries                                       2              5                280                 212
  Gain on disposal of:
                                                                                                             Dividend received from associates                                       11             13                     -                  -
     Subsidiaries                                              (1)            -       -               (43)
                                                                                                             Adjustment on initial recognition of MFRS 16                              -              -                   1                   -
     Associates                                                (2)            -       -                 -
                                                                                                             Interest received                                                       32             45                   11                   8
     Asset held for sales                                       -           (71)      -                 -
  Financial assets through profit or loss:                                                                   Property, plant and equipment:

     Changes in fair value                                     (1)            1      (1)              44       Proceeds from disposal                                                24            190                     -                  5
  Allowance for impairment :                                                                                   Purchase                                                             (606)          (617)                (37)                 (3)
     Joint venture                                            43              -       -                 -    Right of use asset:
     Subsidiaries                                               -             -       -               48       Purchase                                                              (15)             -                    -                  -
  Intangible assets:                                                                                         Investment properties:
     Written off                                                -             1       -                 -      Purchase                                                             (195)          (428)                (11)                (10)
     Amortisation and impairment                              12              5       -                 -    Biological assets:
Dividend income                                                (2)           (5)   (280)             (212)     Proceeds from disposal                                                  3              6                    -                  -
Unrealised foreign currency exchange loss/(gain)               (3)          10        -                 -
                                                                                                               Purchase                                                               (7)            (4)                   -                  -
Amortisation:
                                                                                                             Intangible assets:
  Government grant                                            (14)          (16)     (7)               (7)
                                                                                                               Proceeds from disposal                                                  -              3                    -                  -
  Land lease rental                                           (15)          (14)    (11)              (11)
                                                                                                               Purchase                                                              (15)           (11)                   -                  -
Allowance for impairment of trade and other receivables       70            12       56                 9
                                                                                                             Purchase of:
Reversal of impairment for trade and other receivables        (10)           (4)     (9)              (42)
                                                                                                               Financial assets at fair value through other comprehensive income     (41)             -                    -                  -
Interest expense                                             470           451     137               152
                                                                                                               Financial assets at fair value through profit or loss                  (1)            (5)                   -                (42)
Interest income                                               (32)          (45)    (11)               (8)
Share of results of associates and joint ventures            (124)         (118)      -                 -      Investment in joint venture                                           (47)           (27)                   -                  -

Operating profit/(loss) before changes in working capital   1,065          958       (8)              (72)   Increase in deposits with licensed bank with maturity of more than
                                                                                                                3 months                                                             (77)           (93)                   -                  -
P 26                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           P 27
SECTION 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              SECTION 3
Financial Review                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Financial Review
Johor Corporation / Annual Report 2019                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          Johor Corporation / Annual Report 2019

STATEMENTS OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019
                                                                                                                     STATEMENT OF CHANGES
                                                                                                                     IN EQUITY
                                                                     Group                 Corporation
                                                                                                                     FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019
                                                                  2019          2018      2019              2018
                                                                             Restated                    Restated

                                                                                                                                                                                                       (187)

                                                                                                                                                                                                                                                             (1)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (6)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (4)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (119)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           (119)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (18)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (253)
                                                                                                                                Total
                                                                                                                                              equity

                                                                                                                                                          9,060

                                                                                                                                                                                                                               8,873

                                                                                                                                                                                                                                                                                 8,872

                                                                                                                                                                                                                                                                                                                         288

                                                                                                                                                                                                                                                                                                                                                                                                                       42

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                5

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         99

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        5

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              141

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    429

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     2

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             1

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               9,048
INVESTING ACTIVITIES (CONTINUED)
Government grant received                                           21            15        14                10
Net cash inflow on disposal group classified as held for sale         -          181          -               91

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (4)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (6)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (119)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           (1)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (109)
                                                                                                                     Non-
                                                                                                                                controlling
                                                                                                                                              interests

                                                                                                                                                          2,427

                                                                                                                                                                                                       -

                                                                                                                                                                                                                               2,427

                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                 2,427

                                                                                                                                                                                                                                                                                                                         187

                                                                                                                                                                                                                                                                                                                                                                                                                       35

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              25

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    212

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     8

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             3

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               2,530
Net cash flows (used in)/generated from investing activities      (911)          (724)     241               263

FINANCING ACTIVITIES
Drawdown of term loans and other long term borrowings            2,846          1,544         -                 -

                                                                                                                                                                                                       (187)

                                                                                                                                                                                                                                                             (1)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (2)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (4)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           (118)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (6)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (2)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (18)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (144)
                                                                                                                                              Total

                                                                                                                                                          6,633

                                                                                                                                                                                                                               6,446

                                                                                                                                                                                                                                                                                 6,445

                                                                                                                                                                                                                                                                                                                         101

                                                                                                                                                                                                                                                                                                                                                                                                                       7

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                5

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         99

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        11

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              116

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    217

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               6,518
Repayment of term loans and other long term borrowings           (2,799)         (955)    (809)                (5)
Repayment of the lease liabilities                                  (24)            -        (8)                -
Repayment to subsidiaries                                             -             -     (199)              (224)
Advances from non-controlling interest of subsidiaries,

                                                                                                                                                                                                       (187)

                                                                                                                                                                                                                                                             (1)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           (181)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (6)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             (2)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (18)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (207)
                                                                                                                                Revenue
                                                                                                                                              reserve

                                                                                                                                                          6,253

                                                                                                                                                                                                                               6,066

                                                                                                                                                                                                                                                                                 6,065

                                                                                                                                                                                                                                                                                                                         101

                                                                                                                                                                                                                                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         99

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              99

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    200

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               6,058
  net of repayments                                                   -            (5)        -                 -
Proceed from dilution of interest in subsidiary                       -          120          -                 -
Disposal of subsidiary                                                3             -         -                 -

                                                                                                                                                          (95)

                                                                                                                                                                                                                               (95)

                                                                                                                                                                                                                                                                                 (95)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (4)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (4)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    (4)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (99)
                                                                                                                                FVOCI
                                                                                                                                              reserve

                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       -
Interest paid                                                     (470)          (451)      (77)             (112)
Interest paid to subsidiaries                                         -             -       (60)              (40)
Dividend paid to non-controlling interests                        (119)          (104)        -                 -

                                                                                                                                                          (66)

                                                                                                                                                                                                                               (66)

                                                                                                                                                                                                                                                                                 (66)
                                                                                                                     Currency
                                                                                                                                fluctuation
                                                                                                                                              reserve

                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        11

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              11

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    11

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           64

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       64

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               9
Distribution of fund to State Government                             (8)          (12)       (8)              (12)
Designated account                                                  (34)          (17)        -                 -
Net cash used in financing activities                             (605)          120     (1,161)             (393)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     (2)
Net change in cash and cash equivalents                           (305)          245         (3)              89

                                                                                                                     Asset
                                                                                                                                revaluation
                                                                                                                                              reserve

                                                                                                                                                          149

                                                                                                                                                                                                       -

                                                                                                                                                                                                                               149

                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                 149

                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                       7

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                5

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    10

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               159
Cash and cash equivalents at 1 January                             866           607       119                30
Effect of exchange rate changes on cash and cash equivalents          7           14          -                 -
Cash and cash equivalents at 31 December                           568           866       116               119

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           (1)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       (1)
                                                                                                                                Capital
                                                                                                                                              reserves

                                                                                                                                                          392

                                                                                                                                                                                                       -

                                                                                                                                                                                                                               392

                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                 392

                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                       -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               391
CASH AND CASH EQUIVALENTS

Cash and bank balances                                             761           834       100                27
Fixed deposits                                                     375           405        16                92

                                                                                                                                              Note

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              23(a)
                                                                                                                                                                                                       43

                                                                                                                                                                                                                                                                                                                                                                                                                       13

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                16
                                                                 1,136          1,239      116               119
Bank overdrafts                                                   (213)          (129)        -                 -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Disposal of property, plant and equipment

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Fair value adjustment for financial assets in
                                                                                                                                                                                                                                                                                                                                                                          Revaluation surplus on property, plant and
                                                                                                                                                          At 1 January 2019 (as previously reported)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Dividend paid to non-controlling interests
Deposit with licensed bank with maturity of more than 3 months    (203)          (126)        -                 -

                                                                                                                                                                                                                                                                                                                                                                                                                                   Surplus on transfer of property, plant and

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Closing balance at 31 December 2019
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Fair value adjustment for financial assets
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                equipment to investment properties
                                                                                                                                                                                                                                                                                 Adjusted balance as at 1 January 2019

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Total other comprehensive loss for the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Foreign currency translation of foreign
Designated account                                                (152)          (118)        -                 -

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Total comprehensive income for the
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         relation to disposal of subsidiary

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Accretion of interest in subsidiaries

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Dilution of interest in subsidiaries
                                                                   568           866       116               119

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Distribution to State Government
                                                                                                                                                                                                                                                                                                                                             Other comprehensive income
                                                                                                                                                                                                                               At 1January 2019 (restated)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Transaction with owner

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Disposal of subsididary
                                                                                                                                                                                                       Prior year adjustment

                                                                                                                                                                                                                                                             Effect of MFRS 16

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              financial year

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    financial year
                                                                                                                                                                                                                                                                                                                         Profit net of tax

                                                                                                                                                                                                                                                                                                                                                                                                                       equipment

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        operations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              at FVOCI
                                                                                                                                              Group
                                                                                                                                2019
P 28                                                                                                                                                                                                                                                                P 29
SECTION 3                                                                                                                                                                                                                                          SECTION 3
Financial Review                                                                                                                                                                                                                                         Financial Review
Johor Corporation / Annual Report 2019                                                                                                                                                                                             Johor Corporation / Annual Report 2019

STATEMENT OF CHANGES IN EQUITY                                                                                                                                                                                    STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019                                                                                                                                                                 FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019

                                                                Asset     Currency                                        Non-                                                                                            Asset
                                                                                                                                                                                                        Capital     revaluation           Revenue                 Total
2018                                              Capital revaluation   fluctuation FVOCI      Revenue              controlling    Total
                                                                                                                                            Corporation                                         Note   reserves         reserve            reserve               equity
Group                                     Note   reserves     reserve       reserve reserve     reserve    Total      interests   equity
                                                                                                                                            At 1 January 2019 (as previously reported)                      55                 -             2,223                2,278
At 1 January 2018                                    392         123           (43)     69        6,063    6,604         2,253     8,857    Prior year adjustment                               43            -                -              (134)                (134)

Prior year adjustment                      43           -           -            -        -        (150)    (150)             -     (150)   At 1 January 2019 (restated)                                    55                 -             2,089                2,144
                                                                                                                                            Effect of MFRS 16                                   44            -                -                 (1)                  (1)
At 1 January 2018 (restated)                         392         123           (43)     69        5,913    6,454         2,253     8,707
                                                                                                                                            Adjusted balance as at 1 January 2019                           55                 -             2,088                2,143
Effect of MFRS 9                                        -           -            -        -           4        4              -        4    Profit net of tax                                                 -                -               164                  164
Adjusted balance as at 1 January 2018                392         123           (43)     69        5,917    6,458         2,253     8,711    Distribution to State Government                                  -                -                (18)                (18)
                                                                                                                                            Total comprehensive income for the financial year               55                 -             2,234                2,289
Profit net of tax                                       -           -            -        -         62       62            150      212
                                                                                                                                            Closing balance at 31 December 2019                             55                 -             2,234                2,289
Other comprehensive income
Revaluation surplus on property,                                                                                                                                                                                           Asset
  plant and equipment                      13           -         26             -        -           -      26             63       89                                                                 Capital      revaluation           Revenue                 Total
                                                                                                                                                                                                Note   reserves          reserve            reserve               equity
Fair value adjustment for financial
  assets at FVOCI                                       -           -            -     (164)          -     (164)          (35)     (199)   At 1 January 2018 (as previously reported)                       55             118               1,814                1,987

Foreign currency translation of foreign                                                                                                     Prior year adjustment                               43            -                -               (120)                (120)

  operations                                            -           -          (23)       -           -      (23)           69       46     Effect of MFRS                                                    -            (118)                264                  146
                                                                                                                                            At 1 January 2018 (restated)                                     55                -              1,958                2,013
Total other comprehensive income for
                                                                                                                                            Effect of MFRS 9                                                  -                -                 (28)                (28)
  the financial year                                    -         26           (23)    (164)          -     (161)           97       (64)
                                                                                                                                            Adjusted balance as at 1 January 2018                            55                -              1,930                1,985
Total comprehensive income for the
                                                                                                                                            Profit net of tax                                                 -                -                159                  159
  financial year                                        -         26           (23)    (164)        62       (99)          247      148
                                                                                                                                            Total comprehensive income for the financial year                55                -              2,089                2,144
Transaction with owner                                                                                                                      Closing balance at 31 December 2018                              55                -              2,089                2,144
Dividend paid to non-controlling
  interests                                             -           -            -        -           -        -          (104)     (104)
Accretion of interest in subsidiaries                   -           -            -        -         33       33            (35)       (2)
Dilution of interest in subsidiaries                    -           -            -        -         54       54             66      120
                                                        -           -            -        -         87       87            (73)      14
Closing balance at 31 December
  2018                                               392         149           (66)     (95)      6,066    6,446         2,427     8,873

                                                                                                                                                                                                                                            Please scan the QR Code
                                                                                                                                                                                                                                            above to view the full pdf
                                                                                                                                                                                                                                            version of financial report
                                                                                                                                                                                                                                            online.
P 30                                                                                                                                                                                                             P 31
SECTION 3                                                                                                                                                                                    SECTION 3
Financial Review                                                                                                                                                                                      Financial Review
Johor Corporation / Annual Report 2019                                                                                                                                       Johor Corporation / Annual Report 2019

                                                                                                                                                                FINANCIAL PERFORMANCE SUMMARY

FINANCIAL PERFORMANCE                                                                                                                                                   JCORP & GROUP (2015-2019)

SUMMARY
JCORP & GROUP (2015-2019)                                                                                                                                                                          LEGEND
                                                                                                LEGEND                                                                                     JCorp         GROUP
                                                                                       JCorp          GROUP

REVENUE                                                                                                       TOTAL ASSETS

                   566                                                                           6,007                             6,643                                                           23,281
2019                                                                                                          2019

               460                                                                           5,657                                        7,244                                              22,714
2018                                                                                                          2018

       245                                                                             5,564                                         7,063                                                21,810
2017                                                                                                          2017

         288                                                                         5,355                                                  7,425                                         21,080
2016                                                                                                          2016

                   574                                                               5,306                                                    7,570                                   20,606
2015                                                                                                          2015

PROFIT BEFORE TAX                                                                                             TOTAL LIABILITIES

                                     162                     384                                                                                        5,281                                14,233
2019                                                                                                          2019

                                    153                      388                                                                                        5,281                          13,841
2018                                                                                                          2018

                         93                                                                     583                                                   5,050                      13,103
2017                                                                                                          2017

                              112                                                        541                                                           5,275                      13,293
2016                                                                                                          2016

                                                 262                           499                                                                  4,773       11,406
2015                                                                                                          2015

PROFIT AFTER TAX                                                                                              TOTAL EQUITY

                                     164               295                                                                                2,289                                        9,048
2019                                                                                                          2019

                                    159    216                                                                                            2,144                                     8,873
2018                                                                                                          2018

                         94                                              471                                                         2,013                                        8,707
2017                                                                                                          2017

                              120                                  415                                                             1,969                             7,787
2016                                                                                                          2016

                                           206               381                                                                  1,870                                                    9,200
2015                                                                                                          2015
P 32                                                                                                                                                                                                                                                                            P 33
SECTION 4                                                                                                                                                                                                                                                      SECTION 4
Prospects                                                                                                                                                                                                                                                                   Prospects
Johor Corporation / Annual Report 2019                                                                                                                                                                                                          Johor Corporation / Annual Report 2019

                                                                                                                                                                                                                                                                    ECONOMIC

ECONOMIC                                                                                                                                                                                                                                                              REVIEW

REVIEW
ECONOMIC REVIEW 2019                                                                                                                               MALAYSIA’S GROSS DOMESTIC PRODUCT (GDP) RECORDED
After hovering in the range of 4.0-5.0%         sectors that grew 3.8% and 0.1%
                                                                                                                                                  A SHARP DECLINE TO 3.6% IN THE FOURTH QUARTER OF 2019,
over the last six consecutive quarters          respectively. The construction                                                                         LEADING TO 2019’S GDP GROWTH OF ONLY 4.3%.
since the second quarter of 2018,               sector’s marginal growth was
Malaysia’s Gross Domestic Product               because of the completion
(GDP) recorded a sharp decline to 3.6%          of large-scale projects, with
                                                                                                                                          2020 ECONOMIC PERSPECTIVE                     US-China trade war that is still being felt      response of the whole world to ease
in the fourth quarter of 2019, leading          fewer new projects which are
                                                                                                                                                                                        until now with signs that it may erupt           monetary policy and implement stimulus
to 2019’s GDP growth of only 4.3%.              mostly smaller scale and an
                                                                                                                                          The year 2020 began encouragingly             again, and the fall of the crude oil market      packages during the first half of 2020
In line with Malaysia’s slowest economic        oversupply of real estate.
                                                                                                                                          where the worst market scenario by            due to the price war between Saudi               is expected to strengthen the recovery
growth since 2009, the world economy            Although the services and
                                                                                                                                          consensus expected the weakness in the        Arabia and Russia.                               of global growth by the end of 2020 or
and global trade only expanded 2.9%             manufacturing sector were
                                                                                                                                          second half of 2019 to continue into the                                                       by early 2021. In line with the forecast
(2018: 3.6%) and 1.0% (2018: 3.7%),             the biggest contributors to
                                                                                                                                          first half of 2020, whereas a clear rebound   The dramatic decline in the economy in           of economic recovery in 2021, Malaysia
respectively. This clearly demonstrated         overall GDP growth, it also
                                                                                                                                          was seen in the second half of 2020 as        the first quarter of 2020 due to the rapid       is also expected to return to a positive
that Malaysia was impacted by external          experienced a deceleration
                                                                                                                                          a result of the easing of interest rates      spread of COVID-19 since early March             growth trajectory.
pressures throughout 2019.                      due     to   weak    global
                                                                                                                                          around the world and a more relaxed           2020 which forced the implementation
                                                demand for manufactured
                                                                                                                                          financial market. However, what was           of the MCO and its variants. This was            As of now, cuts to the OPR have
This included global trade tensions and         items and household
                                                                                                                                          earlier considered a local issue for China,   compounded by the repeated supply                amounted to 100 basis points, bringing it
an increase in protectionist rhetoric that      spending       returning
                                                                                                                                          led to the outbreak of the COVID-19           disruptions in the commodity sector              to 2.0% and with four stimulus packages
was not limited to the US and China; an         to more appropriate
                                                                                                                                          pandemic, a black swan event that was         as well as the risk of being collateral          totalling RM295 billion, it is hoped that
increase in geopolitical risk in the Middle     levels      compared
                                                                                                                                          acknowledged as a global pandemic on          damage in the price war between Saudi            this will reduce the economic impact of
East, Eastern Europe, South Asia and the        to 2018’s unusual
                                                                                                                                          11 March 2020.                                Arabia and Russia, and the local political       COVID-19.
Asia-Pacific; the uncertainty of economic,      performance.
                                                                                                                                                                                        instability continuing to impact Malaysia’s
social, political and international relations
                                                                                             Meanwhile, the equity market based on        Since then, the majority of the world’s       economy negatively.                              BNM has also forecasted average
between Europe and Britain as a result          As a result of the supply disruptions
                                                                                             the Bursa Malaysia Composite Index           countries have had to institute lockdowns                                                      inflation growth of between -1.5%
of Brexit, and the economic impact              in commodity output in 2018, the first
                                                                                             (KLCI) was trapped in a downward trend,      and all kinds of social distancing            While there is a wide range of views for         and 0.5% for 2020 considering the
of climate change aside from several            half of 2019 witnessed the resurgence
                                                                                             declining by 6% and closing at 1,588.8       protocols to stem the spread, resulting in    Malaysia’s economic prospects in 2020,           downward pressure on prices in general,
internal speed-bumps in growth trends.          of the agricultural and mining sectors,
                                                                                             points (2018: -5.9% and 1,690.6 points)      the world grinding to a halt. This global     BNM’s official forecast of -2.0% to +0.5%        largely mirroring the prospects of low
                                                especially palm oil and natural gas.
                                                                                             at the end of 2019 due to outflows           health crisis and critical steps taken to     is the least pessimistic, although the           crude oil prices and other commodities
In fact, domestic demand growth                 However, this all changed in the second
                                                                                             by foreign investors (-RM6.7 billion).       stop the outbreak at both the global and      likelihood that it will be a recession that is   in the global market, as well as muted
moderated at 4.3% due to lack of                half of 2019 when there were supply
                                                                                             However, the Ringgit ended the year          local level has led to a global recession     worse than the Global Financial Crisis of        aggregate demand. With the focus on
support from the main driver of growth,         disruptions as a result of plant closures
                                                                                             stronger by 1.1% to RM4.0925 compared        and a simultaneous supply and demand          2008-2009 cannot be discounted.                  strengthening the support for economic
the private sector. This contraction in         and maintenance activities that affected
                                                                                             to the US dollar. The average price of       shock due to weak final demand and                                                             recovery, low inflationary pressures
gross fixed capital formation caused            the output of crude oil and natural gas
                                                                                             palm oil and crude oil (Brent), two global   disruption in the supply chain.               Therefore, the prospects for global              that could threaten deflation permits a
by the shrinkage in public sector               resulting in the mining sector continuing
                                                                                             commodities that has a direct impact on                                                    growth depend on how quickly the                 more accommodative monetary policy
investments and a slowdown in private           its contraction trend. The lagged impact
                                                                                             Johor Corporation declined in 2019 with      Based on the latest forecasts from the        virus can be contained and eventually            through further cuts to the OPR, to as
sector investments growth was the main          due to the drought and less fertiliser
                                                                                             palm oil at RM2,119/metric ton (2018:        International Monetary Fund (IMF) and         stopped, as well as the shape, scope and         low as 1.5%, which would be the lowest
reason Malaysia recorded its slowest            application in early 2019 affected palm
                                                                                             RM2,235/metric ton) and crude oil at         World Bank (WB), the global economy           scale of the various follow-up measures          in history, or further cuts to the Statutory
GDP growth since 2009.                          oil production, the main cause of the
                                                                                             US$64.37/per barrel (2018: US$71.19/         is expected to contract by 3.0% to            for cross-border travel to control the           Reserve Rates of 2.0% currently. All this
                                                decline in its recovery, although this was
                                                                                             per barrel).                                 5.2%. Some of the other contributors          spread of the pandemic and to reduce             is to ensure the Malaysia’s real GDP
In terms of the supply side, the                offset by the agriculture sector which
                                                                                                                                          to this global recession which has            the multi-dimensional negative effects           does not take too long to return to its
decline in GDP growth was mainly                recorded growth of 2.0% (2018: 0.1%).
                                                                                                                                          been regarded as unprecedented and            with monetary and fiscal stimulus during         long-term potential growth output
contributed by the loss of momentum
                                                                                                                                          unparalleled include the effects of the       and post-COVID-19. The economic                  estimated at between 4.3% and 4.8%.
in the manufacturing and construction
P 34                                                                                                                                                                                                                           P 35
SECTION 4                                                                                                                                                                                                SECTION 4
Prospects                                                                                                                                                                                                               Prospects
Johor Corporation / Annual Report 2019                                                                                                                                                    Johor Corporation / Annual Report 2019

                                                                                                                                                                                                                  KULIM

KULIM                                                                                                                                                                                                           BUSINESS

BUSINESS                                                                                                                             in Indonesia valued at RM44.03 million,
                                                                                                                                     and set aside an allocation for expected         REVENUE
                                                                                                                                     losses from a litigation case involving EA
                                                                                                                                     Tech and Malaysia Marine and Heavy               RM1.21               billion

THE YEAR 2019 HAS BEEN                                                                                                               Engineering amounting to RM45.28
                                                                                                                                     million. Despite this, the Group’s cashflow      OIL & GAS REVENUE
ANOTHER CHALLENGING
PERIOD FOR KULIM
                                                                                                                                     remains strong.
                                                                                                                                                                                      RM307.52                       million

(MALAYSIA) BERHAD (KULIM)                                                                                                            At the same time, the Intrapreneur
                                                                                                                                                                                      CPO PRICE
                                                                                                                                     Venture (IV) Division recorded revenue
AS THE LOW PRICES OF
CRUDE PALM OIL (CPO) AND
                                                                                                                                     of RM37.63 million, 21.49% less than the
                                                                                                                                     RM47.93 million in 2018. This Division
                                                                                                                                                                                      RM2,181                  average

PALM KERNEL (PK) IMPACTED                                                                                                            recorded profit before tax of RM0.25
                                                                                                                                     million in 2019 compared to RM1.24            On 13 February 2019, the disposal of
THE GROUP’S EARNINGS.                                                                                                                million the year before.                      a 75% equity stake in Optimum Status
                                                                                                                                                                                   Sdn Bhd (OSSB) which is owned by EPA
                                                                                                                                     The Oil & Gas Division recorded revenue       Management Sdn Bhd to IV Kulim or Kulim
However, Kulim has remained resilient
                                                                                                                                     of RM307.52 million, falling by 34.56%        Safety Strategy Training and Services Sdn
with a host of initiatives to optimise the
                                                                                                                                     from the RM469.92 million achieved the        Bhd was successfully completed. This
potential value of our business segments.
                                                                                                                                     year before. This Division recorded losses    disposal is in line with our strategy to
The Palm Oil Plantation business is still
                                                                                                                                     before tax of RM92.51 million compared        transform KSTS into a health, safety and
the main contributor to revenue despite
                                                                                                                                     to profit before tax of RM73.91 million       environment management company.
the uncertain price environment for
                                                                                                                                     the year before.
CPO and PK, European Union sanctions
                                                                                                                                                                                   On the 1 May 2019, Kulim stopped
towards palm oil use, high inventories
                                                                                                                                     Although facing challenges in balancing       operations of EPASA Shipping Agency
and lower CPO exports to other main
                                                                                                                                     investments against creditors and             Sdn Bhd and turned it into a dormant
markets. Our operations were also
                                                                                                                                     cash flow, Kulim remains committed to         company (not active).
affected by worker shortages and the
                                                                                                                                     delivering value to our shareholders.
rising cost of labour.
                                                                                                                                     In line with this, the Board of Directors     Following this, on 7 May 2019, Kulim
                                                                                                                                     have approved a dividend payment of           acquired the 25% stake belonging to
From a financial perspective, the
                                                                                                                                     RM200 million for the year 2019.              Intrapreneur in Renown Value Sdn Bhd.
Group’s revenue declined to RM1.21
                                                                                                                                                                                   This step was to increase Kulim’s revenue
billion as of end-December 2019
                                                                                                                                     CORPORATE DEVELOPMENTS                        through stronger MD2 pineapple farming
compared to RM1.39 billion
                                                                                                                                                                                   by paying close attention and having full
recorded in 2018. The decline
                                                                                                                                     In 2019, Kulim continued to streamline        control of the pineapple business.
was caused by the 35%
                                                                                                                                     all its portfolio assets in an effort to
reduction in revenue from
                                                                                                                                     strengthen the company’s operations           On 1 October 2019, Kulim and MTC Orec
EA Technique (M) Berhad
                                                                                                                                     as well as ensure optimum revenue             Sdn Bhd entered into a Subscription
(EA Tech) as there was no
                                                                                                                                     generation. Kulim’s approach to optimise      and Shareholders Agreement (SHA) for
revenue from Engineering,                    There was a slight decrease in the          The Group recorded losses before tax
                                                                                                                                     its portfolio takes into account factors      the formation of Kulim Green Energy
Procurement,        Contract,                production of PK to 77,256 tonnes in        of RM127.85 million in 2019, compared
                                                                                                                                     such as the market condition, disposal        Ventures Sdn Bhd (KGEV) as a joint
Installation and Construction                2019 compared to 79,286 tonnes in 2018.     to a profit before tax of RM57.81 million
                                                                                                                                     of non-profitable assets or businesses        venture company for biomethane
projects     throughout    2019.             In addition, the price of PK dropped        the year before. The loss before tax
                                                                                                                                     that are no longer aligned with the           commercialisation. MTC Orec was
In addition, the lower revenue was           sharply in 2019 to an average price         was primarily due to the recognition
                                                                                                                                     Group’s strategic vision. In addition to      established to capture the synergy
compounded by lower contribution             of RM1,289 per tonne compared to            of impairments due to changes to the
                                                                                                                                     this, realising some of our investments is    between O’REC Ind Sdn Bhd and MTC
from the Plantation Division, specifically   RM1,792 per tonne in 2018. However,         Malaysian Financial Reporting Standards
                                                                                                                                     also an option if an appropriate offer is     Engineering Sdn Bhd.
revenue from PK amounting to RM43            the Plantations segment remains the         (MFRS). The Group also recorded joint-
                                                                                                                                     received.
million.                                     main contributor to the Group, delivering   venture losses in the oil and gas segment
                                             RM834.61 million or 69.04% of revenue.
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