PUBLIC SECTOR HOME FINANCING BOARD IMPIAN ...LEMBAGA PEMBIAYAAN PERUMAHAN SEKTOR AWAM Laporan...

Laporan Tahunan 2016

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Annual Report 2016

REALISING

DREAMS

TABLE OFCONTENTS

go online at www.lppsa.gov.my

CORPORATE OVERVIEW

04 CORPORATE INFORMATION 06 VISION MISSION FUNCTIONS KEY OBJECTIVES07 OUR VALUES08 OUR HISTORY AND ACCOMPLISHMENT

KEY MESSAGES

12 CHAIRMAN’S STATEMENT16 OPERATIONS REVIEW BY CHIEF EXECUTIVE OFFICER

CORPORATE GOVERNANCE

30 MEMBERS OF THE BOARD32 PROFILE OF BOARD MEMBERS42 STATEMENT ON CORPORATE GOVERNANCE48 STATEMENT ON RISK MANAGEMENT52 STATEMENT ON INTERNAL AUDIT

LPPSA LEADERSHIP

56 ORGANISATION STRUCTURE58 PROFILE OF SENIOR MANAGEMENT

CORPORATE HIGHLIGHTS

64 CALENDAR OF EVENTS 70 MEDIA HIGHLIGHTS

FINANCIAL STATEMENTS

74 REPORT OF THE AUDITOR GENERAL 78 STATEMENT BY THE CHAIRMAN AND A MEMBER OF THE BOARD79 STATUTORY DECLARATION BY THE OFFICER PRIMARILY RESPONSIBLE FOR THE FINANCIAL MANAGEMENT OF PUBLIC SECTOR HOME FINANCING BOARD80 STATEMENT OF OPENING FINANCIAL POSITION (TRANSITIONAL)81 STATEMENT OF FINANCIAL POSITION (TRANSITIONAL)82 STATEMENT OF FINANCIAL PERFORMANCE (TRANSITIONAL)83 STATEMENT OF CHANGES IN EQUITY (TRANSITIONAL)84 STATEMENT OF CASH FLOW (TRANSITIONAL)85 NOTES TO THE FINANCIAL STATEMENTS

ANNUAL REPORT

PUBLIC SECTOR HOME FINANCING BOARD (LPPSA)

2016

REALISING DREAMS

LPPSA is committed towards realising dreams of home ownership through the provision of home financing as well as playing a pivotal

role in supporting the Government’s affordable home ownership programmes for

the public sector.

By providing home financing, we are advancing the growth of home ownership of

the public sector and thus, giving them a better future.

Realising DreamsMaking home ownership a reality

Chairman

Tan Sri Dr. Mohd Irwan Serigar bin Abdullah

Members

Dato’ Haji Che Pee bin Samsudin

Dato’ Haji Abdul Razak bin Musa

Datuk Ahmad Badri bin Mohd. Zahir

Dr. Nungsari bin Ahmad Radhi

Puan Norzilah binti Mohammed

Chief Executive Officer

Puan Norsimah binti Ab. Wahab

BOARD OF LPPSA

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PUBLIC SECTOR HOME FINANCING BOARD

CORPORATEINFORMATION

OFFICE ADDRESSNo. 9, Kompleks Kementerian KewanganPersiaran Perdana, Presint 2Pusat Pentadbiran Kerajaan Persekutuan62592 Putrajaya

www.lppsa.gov.my

AUDITORJabatan Audit NegaraNo. 15, Aras 1-5 Persiaran Perdana, Presint 2Pusat Pentadbiran Kerajaan Persekutuan62518 Putrajaya

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ANNUAL REPORT 2016

To be an excellent and sustainable property financier

for the public sector

To strive for excellence by practicing best policies,

procedures, culture & compliances, while continuously

being innovative

FUNCTIONS

KEY OBJECTIVES

• To manage the Fund and to administer the public sector home financing in accordance with the provisions of the Public Sector Home Financing Board Act 2015 (Act 767);

• To advise the Minister of Finance on matters relating to the public sector home financing facility; and

• To do such other things as may be required or permitted to do under the Act 767.

• Establish policies, guidelines and processes enhancement throughout our Core-Business-Chain (CBC) using ICT as an enabler to ensure efficiency.

• Provide efficient financing management and business response time towards meeting client’s charter.

• Financial sustainability through efficient collection, sufficient funding and prudent financial management.

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MISSIONVISION

OUR PILLARS OF STRENGTH

Ability to develop a cooperative work environment to leverage work efforts towards solutions that link overall organisational goals and expectations.

Earns others’ trust and respect through consistent honesty and professionalism in all interactions; keeps promises and commitment made to others. Does the right things, even when it is difficult. Does not yield to pressure to show bias or manipulate others.

OUR VALUES

Demonstrate innovativeness and creativity and adapts easily in order to produce exceptional quality results that exceed declared performance standard.

TEAMWORK

INTEGRITYUnderstand and anticipates customers’ perspective and needs in order to deliver excellent service exceeding customer expectation; makes customer and their requirements a primary focus of actions and maintains good customer relationship.

CUSTOMER FOCUSDemonstrate initiative, shows tenacity and commitment to drive tasks to closure despite obstacles; accepts ownership and accountability for performance, results and actions.

QUALITY

EXCELLENTPERFORMANCE

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ANNUAL REPORT 2016

1970

1971

2013

2014

• The establishment of Bahagian Pinjaman Perumahan (BPP) under the Treasury in 1970.

• BPP was specifically founded to provide housing loans facility to public sector in order to facilitate home ownership.

• Treasury Circular 6/1970 came into effect 14 November 1970.

• Housing Loan Fund Act 1971 (Act 42) was gazetted on 2 September 1971.

• Economic Council Meeting on 3 June 2013 agreed in pr inciple that BPP should be incorporated as a new statutory body.

• Cabinet Meeting on 21 November 2014 approved the proposal f o r B P P t o b e transformed into a statutory body with full f inancial autonomy and scheme of service.

OUR HISTORY AND ACCOMPLISHMENT

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• LPPSA began operation and took over the entire function of BPP starting from 1 January 2016.

till present

2015 2016

2016

• Pub l ic Sector Home Financing Board 2015 Act (Act 767) was gazetted on 4 June 2015.

• On 10 June 2016, LPPSA announced its maiden RM25 billion sukuk/bond programmes, comprising of Islamic Commercial Papers/Islamic Medium Term Notes (ICP/IMTN) and Conventional Commercial Papers/Medium Term Notes (CP/MTN) Programme.

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ANNUAL REPORT 2016

Integrity &Transparency

Uncompromising best practices, principles & values

TAN SRI DR. MOHD IRWAN SERIGAR BIN ABDULLAHChairman

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CHAIRMAN’S STATEMENT

ON BEHALF OF THE BOARD, IT IS MY PLEASURE TO PRESENT THE

INAUGURAL ANNUAL REPORT OF THE PUBLIC SECTOR HOME

FINANCING BOARD (LPPSA) FOR THE FINANCIAL PERIOD ENDED

31 DECEMBER 2016.

This year’s theme, “Realising Dreams”, reaffirms our commitment towards being an excellent and sustainable property financier for the public sector. As we embark on this new journey, the path ahead presents many challenges. In charting the way forward, we turn to good governance, sound business ethics and strong relationships with our stakeholders to enable us to carry out our mandate.

A NEW CHAPTER

2016 has been a year of many firsts for LPPSA. On 4 June 2015, the Public Sector Home Financing Board Act 2015 (Act 767) was gazetted. LPPSA then began its first year of operations as a Badan Berkanun Diasingkan Saraan dan Bebas Sepenuhnya and took over the entire function of Bahagian Pinjaman Perumahan (BPP) starting from 1 January 2016. LPPSA received RM42 million from the Government in the form of a launching grant to assist its operations.

Our transformation from BPP to LPPSA arose from the need to strengthen the fiscal position of the Government. Fittingly, we embarked on a Transformation Journey from the first day of our operations by streamlining our business and work processes to achieve higher efficiency. LPPSA will continue to strive towards realising its vision to be an excellent and sustainable property financier for the public sector by demonstrating prudent financial management, innovation funding solution and maximising employee performance through efficient human resource management.

“OUR TRANSFORMATION FROM BPP TO LPPSA AROSE

FROM THE NEED TO STRENGTHEN THE FISCAL POSITION

OF THE GOVERNMENT”

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ANNUAL REPORT 2016

With this new beginning, we strive to ensure that our operations are guided by the best policies, practices, procedures, culture and compliance. As we continue on the journey that lies ahead, we will continue to remain innovative and proactive in order to achieve our vision.

CORPORATE GOVERNANCE UNDERPINS EXCELLENCE

LPPSA is deeply committed towards developing and implementing a strong corporate governance framework which will guide LPPSA towards excellence. We have adopted key elements from the Principles and Recommendations of the Malaysian Code on Corporate Governance as well as the Risk Management ISO 31000 standard.

This has been the first year in which various Board Committees have met and deliberated on suitable courses of action for LPPSA as it progresses. Salient plans and policies that were developed during the year include the Risk Management Policy, Corporate Risk Portfolio and Annual Internal Audit Plan, which resulted in advances in the areas of risk management and improved internal controls. As a result, LPPSA has

developed the ability to be more proactive with regards to risk by identifying, assessing and managing risks before they arise. The fine-tuning and augmentation of our capacity for handling business risks continues to be a major undertaking by the Board.

PERFORMANCE DRIVEN

This year is also a significant milestone for LPPSA as it enters the era of realising its vision to become a high performance-driven organisation. In doing so, the Balanced Scorecard concept was introduced as a performance management tool in conjunction with Key Performance Indicators (KPI) to evaluate the performance of management and implementation of strategies to ensure LPPSA’s resources are utilised optimally towards achieving its objectives.

Our responsibility to our stakeholders is of paramount concern to ensure long-term sustainability. In this respect, a long-term strategy has been set for LPPSA to focus on Customers, Financials, Internal Process and Learning and Growth.

AS AN INDEPENDENT ENTITY, WE HAVE BEEN GIVEN THE TRUST AND OPPORTUNITY TO CATER TO THE NEEDS OF THE PUBLIC SECTOR HOME FINANCING BOARD. IN ADDITION, LPPSA CONTINUES TO OFFER ALL FACILITIES AND BENEFITS THAT WERE PREVIOUSLY ENJOYED WHEN BPP WAS A PART OF TREASURY, MINISTRY OF FINANCE.

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These focus areas are underpinned by six strategic objectives, namely:

• enhanced reputation with customers;• sustained asset quality;• ensuring financial sustainability;• continuous process improvements;• streamlined ICT systems and work process; and• enriched employee capabilities.

These strategic objectives will enhance organisational performance and provide added value for our key stakeholders.

Since our transformation from BPP to LPPSA, our customers have demanded better service quality and a higher degree of efficiency. As such, we strongly believe that LPPSA’s strategic direction, which includes the implementation of several flagship projects planned will significantly transform our business and operating models to meet our customers’ demands.

One of the flagship projects that was introduced in 2016 was the establishment of LPPSA’s Call Centre with a total manpower strength of 18 call agents. LPPSA was able to answer over five times the number of calls compared to the time before this initiative was implemented. Against the backdrop of this encouraging performance, we are confident that we are moving in the right direction with our other flagship projects and we will be able to improve our overall customer experience once all projects are fully implemented by 2020.

ACKNOWLEDGEMENT

On behalf of the Board, I would like to take this opportunity to extend our sincere appreciation to all our stakeholders for their continued confidence and the support extended to LPPSA in its maiden year of operations. I wish to reiterate LPPSA’s commitment in delivering efficient service to the public sector and ensuring that we will further strengthen our core values to achieve our vision.

I am also thankful to our fellow Board members for their valuable views and advice in charting the way forward through its first challenging transformation year. I would also like to thank Puan Norsimah and her dedicated management team as well as employees of LPPSA for their hard work, commitment, and diligence over the course of an exciting year.

Moving forward, I believe that, with the talent and dedication of our management team and employees, and together with the support of our stakeholders, LPPSA will continue to be successful in realising the nation-building agenda.

Tan Sri Dr. Mohd Irwan Serigar bin AbdullahChairman

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ANNUAL REPORT 2016

CHAIRMAN’S STATEMENT

NORSIMAH BINTI AB. WAHABChief Executive Officer

page 16


OPERATIONS REVIEW BY CHIEF EXECUTIVE

OFFICER

HIGHLIGHTS 2016

The year 2016 saw the world economy record its lowest growth since the Global Financial Crisis. Malaysia’s economic growth also continues to face major hurdles from within and outside the country. This challenging economic landscape requires constant adaptation in business, household and Government spending. Based on Bank Negara’s report, the sluggish labour market conditions exacerbated household adjustment efforts towards the rising cost of living, especially those with low and medium incomes.

Against this backdrop, the public’s concern with regard to the rising cost of living has become a more pronounced issue, with particular attention paid to housing affordability. According to Khazanah Research Institute, housing affordability – which is a function of both property prices and income – yielded a result whereby the median house price in Malaysia was 4.4 times the median annual household income in 2014. In comparison with global standards, this signifies a seriously unaffordable housing market whereas an affordable market should have a median multiple (median property price as a multiple of the median annual household income) of 3 times. As such, the Government has introduced several initiatives and made home ownership more accessible to Malaysians, especially first-time home owners.

FOR THE PUBLIC SECTOR, THE TRANSFORMATION OF BPP TO LPPSA

IS ANOTHER IMPETUS TO FACILITATE HOME OWNERSHIP BY PROVIDING

AFFORDABLE FINANCING AND ENHANCING THE DELIVERY OF SERVICE.

SINCE THE FIRST DAY OF OPERATION, LPPSA HAS BEEN VERY

SUPPORTIVE OF THE GOVERNMENT’S ASPIRATION TO INCREASE HOME

OWNERSHIP VIA THE 11TH MALAYSIA PLAN, WHICH INCLUDES

MEASURES THAT FOCUS ON AFFORDABLE HOUSING, SUCH AS THE

PERUMAHAN RAKYAT 1MALAYSIA (PR1MA) AND PERUMAHAN

PENJAWAT AWAM 1MALAYSIA (PPA1M).

YIELDED A RESULT WHEREBY THE MEDIAN HOUSE

PRICE IN MALAYSIA WAS

THE MEDIAN ANNUAL HOUSEHOLD INCOME IN 2014

4.4timespage 17

ANNUAL REPORT 2016

2016 OPERATIONAL AND FINANCIAL PERFORMANCE REVIEW

Alhamdulillah, 2016 marked a key milestone in which LPPSA transformed from a Division under Treasury, Ministry of Finance to a statutory body with full financial autonomy in financial administration and human resources (Badan Berkanun Diasingkan Saraan dan Dibebaskan Sepenuhnya). This transition is indeed challenging as it involves managing and coordinating financial and administrative matters.

LPPSA has successfully managed and administered the public sector home financing facility. LPPSA’s total revenue for the financial period ended 31 December 2016 stood at RM3.26 billion. Total expenses for financial period 2016 amounted to RM1.82 billion. Therefore, LPPSA recorded a RM1.44 billion surplus after tax for financial period 2016.

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PPA1M Bukit Jalil

LPPSA successfully issued its first sukuk amounting to RM4 billion in September 2016 as part of its initiative to be financially sustainable in the future. We believe that securing other sources of funding and prudent financial management will ensure sustainable growth for the organisation.

“3,819HOME F I N A N C I N G W E R E A P P R O V E D SPECIFICALLY FOR PPA1M WITH LOANS AMOUNTING TO RM943 MILLION”

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ANNUAL REPORT 2016

OPERATIONS REVIEW BY CHIEF EXECUTIVE OFFICER

CUSTOMER PORTFOLIO HIGHLIGHTS

For the year 2016, LPPSA approved 39,224 home financing loans with a total value of RM9.89 billion. As for our continuous support for the Government’s affordable housing scheme, 3,819 home financing loans were approved specifically for PPA1M with loans amounting to RM943 million. PPA1M approvals for Putrajaya and Kuala Lumpur were at 81%, which is the highest locale, followed by Sabah and Pahang at 7% and 3% respectively. From the RM943 million of total loans approved, almost 80% of PPA1M borrowers secured home financing valued between RM100,000 and RM300,000.

Various locations of PPA1M Project nationwide

PPA1M, Manjung

PPA1M, Bukit Jalil

PPA1M, TuaranKEDAH

Development of 4 blocks of 19/20 storey apartment(1,200 units) with 4 storeys covered car parkand 1 multipurpose hall and other facilities

Development of 2 blocks of 41-storey apartmentswith 1,536 units complete with covered car parkand facilities area

Construction of 558 unitsPPA1M apartments inclusiveof car park bays, commonfacilities and podium

SOUTHCHINASEA

STRAITSOF MELAKA

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Throughout 2016, LPPSA has also conducted a plethora of engagements with various stakeholders including Government agencies, Non-Governmental Organisation (NGOs), investors and the public sector to strengthen LPPSA’s reputation. We embarked on Hari Bersama Pelanggan roadshow and conducted 84 briefing sessions throughout the year to build awareness on the transformation of BPP to LPPSA. The awareness briefing took place in the states of Kelantan, Kedah, Penang, Negeri Sembilan, Melaka, Johor, Putrajaya, Kuala Lumpur, Sabah and Sarawak. We also engaged Congress of Union of Employees in the Public and Civil Services Malaysia (CUEPACS), Real Estate and Housing Developers’ Association Malaysia (REHDA), Sarawak Housing and Real Estate Developer Association (SHEDA) and Sabah Housing and Real Estate Developers Association (SHAREDA) on various topics related to public sector home financing.

Our outreach programme also included participation in numerous exhibitions such as Malaysia Property Expo (MAPEX), Konvensyen Perumahan Penjawat Awam, Bumiputera Property Exhibition (BPEX), Pameran PPA1M, Pameran PR1MA and Karnival JPA4U. We were also actively involved in 15 Mobile Community Transformation Centres (CTC) in 2016 in various locations across the nation.

Mobile CTC Program

PERLIS

Alor Setar

George Town

Ipoh

Kota Bharu

Kuala Terengganu

Kuantan

Seremban

Melaka

Johor Bahru

Kuala Lumpur

1

2

3

4

5

6

7

8

9

10

11

12

13 14

15 11 Aug 2016

Naka, Kedah

15 May 2016

Permatang Pauh, Pulau Pinang

3 & 4 Sept 2016

Batu Gajah, Perak

12 June 2016

Kuala Kangsar, Perak

22 Oct 2016

Kampar, Perak

6 Aug 2016

Cochrane, Kuala Lumpur

9 & 11 Dec 2016

Serdang, Selangor

30 Apr 2016

Jasin, Melaka

8 Oct 2016

Lenggong, Perak

21 May 2016

Kuala Terengganu, Terengganu

24 & 25 May 2016

Kemaman, Terengganu

8 & 9 Oct 2016

Cameron Highlands, Pahang

14 May 2016

Bentong, Pahang

25 Sept 2016

Rompin, Pahang

9 & 11 Dec 2016

Batu Pahat, Johor

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

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ANNUAL REPORT 2016


As our transformation progresses, we are more than grateful that our strong rapport and collaboration with other Government agencies has enabled us to operate more effectively. During the early stage of our transformation, a series of engagements between LPPSA and Jabatan Ketua Pengarah dan Tanah Galian (JKPTG) took place to address numerous issues such as the related land fee exemption issues. Similar engagements include one with the Inland Revenue Board (LHDN) on stamp duty exemption. We are continuously seeking for strategic measures to address the challenges we face to ensure that no additional costs or bureaucratic encumbrances are passed on to our borrowers and all privileges enjoyed during our time as the BPP are retained.

It made for a challenging year, but LPPSA’s endeavours to increase its quality of service remained steadfast. Our commitment towards operational efficiency required us to review all present standards, procedures, and guidelines in meeting our Client Charter. In order to create a positive and seamless customer experience, we have to identify our

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source of customer dissatisfaction, be it from the manpower and process perspectives or the systems. The challenge put forward by the Board to LPPSA’s management team is to create and sustain a high-performance organisation, and this is a challenge that has driven our workforce from the first day of operations. The efficacy of our strategy can be surmised from our Corporate Scorecard, which has been stated by our Chairman.

“AS OUR TRANSFORMATIONPROGRESSES, WE ARE MORE THAN GRATEFUL THAT OUR STRONG RAPPORT AND COLLABORATION WITH

OTHER GOVERNMENT AGENCIES HAS ENABLED US TO OPERATE MORE EFFECTIVELY”

“THE CHALLENGE PUT FORWARD

BY THE BOARD TO LPPSA’S

MANAGEMENT TEAM IS TO

CREATE AND SUSTAIN A HIGH-PERFORMANCE

ORGANISATION”

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ANNUAL REPORT 2016


ADVANCING PUBLIC HOME FINANCING TECHNOLOGY

A one-stop home financing portal known as Sistem Pinjaman Perumahan Bersepadu (SPPB) was developed by BPP in 2012. The SPPB was introduced then to cater for the increasing number of applications and borrower accounts. LPPSA is aware of the increasing importance of connectivity, which is essential to daily living and that online facilities are a must to enhance the customer experience.

In 2016, SPPB underwent a series of enhancements which not only resulted in internal work process improvements, but also improved user-friendliness and the system’s look and feel with additional functions and displays as well as online payment facilities. This is in line with our mission to achieve excellence by putting the best policies, procedures, culture and compliance into practice while continuously being innovative.

Technology will continue to be an influencer of change and the adoption of digital banking technologies wi l l be a key differentiating factor which will enable us to provide a home financing experience characterised by enhanced accessibility and convenience in the future.

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HUMAN CAPITAL DEVELOPMENT

Being self-financed and self-managed, LPPSA is able to deploy its resources, especially human capital, more dynamically to address the challenges that lie ahead. For the year under review, the recruitment of manpower has been one of LPPSA’s foremost endeavours. Our Human Resources Department personnel have been actively facilitating the transition of seconded Government staff and the recruitment of new staff to ensure that LPPSA attracts the qualified and skillful to achieve its goals.

We believe that our people should be given the right skills, training and exposure relevant to their tasks and responsibilities. In 2016, our focus on employee training and development totalled 40,225 hours, averaging 59 hours per year per employee and it bests our annual KPI of 40 hours per year per employee. The total investment into our employee training in 2016 was RM972,322.

LPPSA has also introduced an online Human Resource Management System (HRMS) that provides flexibility for LPPSA staff to manage and apply for leave, view pay slips, track and monitor attendance and manage claims using a web server. These functionalities are accessible by all staff via internet connectivity anywhere, anytime, through our self-service single sign-on infrastructure.

CORPORATE RESPONSIBILITY

Our responsibility to our stakeholders is of paramount concern to ensure long-term sustainability. In 2016, we consistently engaged our stakeholders with the aim of upholding the interests of our existing and future borrowers.

In regulatory matters, LPPSA will ensure that its representatives are present in meetings, workshops, briefings and conferences in order to maintain a close engagement with regulators and keep abreast of policy and business processes developments for the benefit of our borrowers. We believe that a continuous effort to strengthen LPPSA’s relationship with CUEPACS and other NGOs is important to ensure that the interest of civil servants are always protected in line with the introduction of LPPSA’s strategic enhancement initiatives. LPPSA has also introduced a panel of lawyers whose engagement will reduce incidences of fraud faced by borrowers. At present, LPPSA is conducting engagement sessions to obtain a buy-in from civil servants and CUEPACS on the benefits of using panel lawyers before we enforce usage of the panel.

“THE TOTAL INVESTMENT

INTO OUR EMPLOYEE

TRAINING IN 2016 WAS

RM972,322”

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ANNUAL REPORT 2016


Stakeholder Group Engagement Channels Location

Customers Awareness briefing at Ministries, SUK, Government agencies through exhibitions and events such as:

• Konvensyen Perumahan Penjawat Awam• Pameran PPA1M• Malaysia Property Expo (MAPEX)• Bumiputera Property Exhibition (BPEX)• HR Open Day MITI 2016• Karnival JPA4U• PPA1M Putrajaya Mini Carnival• Mobile CTC

Nationwide

Government/Regulators/NGOs

Meetings, briefings, conferences and programme with Ministries, PPA1M, CUEPACS, REHDA, SHEDA and SHAREDA

Putrajaya, Kuala Lumpur

Employees Townhall, talks, Ceramah Perdana, Kopitiam and an Official Visit by YB Deputy Minister of Finance

Putrajaya

Media TV Programme Interview with RTM1 (Biz Malaysia and Selamat Pagi Malaysia)

Radio Interview with NasionalFM, KLFM, BERNAMA FM and SelangorFM

Kuala Lumpur

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PROSPECTS 2017

The global and Malaysian economic performances are projected to grow in 2017, where both will be driven primarily by domestic demand. On domestic demand, the growth of the Gross Domestic Product is expected to be positively around 4.3 to 4.8 percent as well as growth target and expectation of conspicuous improvements in trade, investment and income channels. Malaysia’s central bank has also indicated that private consumption will be sustained by wage growth and recent Government initiatives and policies put forward in its 2017 Budget. Fiscal consolidation measures instituted by the Government will be achieved through the restructuring of public spending and reduction of non-essential expenditure.

The aforementioned measures in the Government’s Budget 2017, include measures to appreciate the public sector services via the announcement of an increment in housing loan eligibility. Previously, the eligibility ranges from the minimum of RM120,000 to a maximum of RM600,000. The eligibility has been increased in Budget 2017 from the minimum of RM200,000 to the maximum of RM750,000 and this will boost LPPSA’s loan growth in 2017. At the same time, more housing for public servants will be built with 30,000 units of PPA1M priced from RM90,000 to RM300,000 while PR1MA will construct 30,000 units which will be sold for a price between RM150,000 and RM300,000. This manner of project development will provide opportunities and create exclusive challenges to LPPSA.

Technological advancement remains as a firm focus as we strive to deliver enhancements to our public home financing ecosystem by modernising and streamlining our processes, accelerating turnaround time for our customers, digitalising our home financing processes and optimising our customers’ end-to-end experience by simplifying and personalising their interactions as much as possible.

Looking into the future, we will continue to make strategic investments that improve our service quality and robustness of our information technology infrastructure in order to

make our processes more efficient and more reliable. Here, I wish to express that I am particularly excited that we are going to initiate the New Loan Management System Project as it is imperative that we continue to innovate and transform by streamlining and improving business and operational processes. Throughout this project, a systematic approach to elevate LPPSA’s services to the next level will, hopefully, be achieved from 2019 onwards.

ACKNOWLEDGEMENT

I would like to take this opportunity to convey my sincere appreciation to LPPSA’s Chairman and Members of the Board for their leadership and the advice that they have imparted to the management team in our journey to greater success despite all the challenges that were braved.

Throughout 2016, and as the Chief Executive Officer of this new entity, it has been an honour to lead an organisation that has a pivotal role to play in enriching the public sector. I wish to thank my management team and all the staff at LPPSA for their dedication and selfless commitment towards the success of the organisation.

On behalf of LPPSA, I offer a big thank you to our stakeholders for their continued support, particularly through the highly challenging operating environment which characterised 2016.

The course is set. We at LPPSA are committed to deliver our organisational aspirations.

We thank you for your continuous support.

Norsimah binti Ab. WahabChief Executive Officer

“4.3 TO 4.8 PERCENT AS WELL AS GROWTH TARGET AND EXPECTATION OF CONSPICUOUS IMPROVEMENTS IN TRADE, INVESTMENT AND INCOME CHANNELS”

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ANNUAL REPORT 2016


Exemplary ExcellenceSetting the highest standards of home financing

from left,

DATUK AHMAD BADRI BIN MOHD. ZAHIR

DR. NUNGSARI BIN AHMAD RADHI

DATO’ HAJI CHE PEE BIN SAMSUDIN

MEMBERS OF THE BOARD

NORSIMAH BINTI AB. WAHAB

DATO’ HAJI ABDUL RAZAK BIN MUSA

NORZILAH BINTI MOHAMMED

TAN SRI DR. MOHD IRWAN SERIGAR BIN ABDULLAH


PROFILE OF BOARD MEMBERS

CHAIRMAN

TAN SRI DR. MOHD IRWAN SERIGAR BIN ABDULLAHSecretary General of TreasuryMinistry of Finance

Tan Sri Dr. Mohd Irwan Serigar bin Abdullah was appointed as the Chairman of Lembaga Pembiayaan Perumahan Sektor Awam (LPPSA) on 1 July 2015.

He is currently the Secretary General of Treasury, Ministry of Finance and serves as a Board of Director of various agencies and Government bodies such as Permodalan Nasional Berhad, Khazanah Nasional Berhad, Malaysian Airline System and Mass Rapid Transit Corporation Sdn Bhd. He is also the Chairman of Lembaga Hasil Dalam Negeri and Kumpulan Wang Amanah Pencen.

He obtained his Bachelor’s Degree with Honours from University of Malaya, Masters of Science from University of Philadelphia, USA and a PhD in Economics from International Islamic University, Malaysia. He also attended the Advanced Management Program at Harvard Business School, Harvard University, USA.

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ANNUAL REPORT 2016

LEADERSHIP

BOARD MEMBER

DATO’ HAJI CHE PEE BIN SAMSUDINAccountant General’s Department of Malaysia

Dato’ Haji Che Pee bin Samsudin was appointed as LPPSA’s Board member on 1 July 2015.

He is currently the Accountant General of Malaysia. He sits on a number of boards such as Amanah Raya Berhad, Retirement Fund Incorporated, Inland Revenue Board of Malaysia, Malaysian Institute of Accountants, the Malaysian Accounting Standards Board and Yayasan Guru Tun Hussein Onn. He began his career as an Administrative Officer in Bank Negara Malaysia in 1981, before being offered to serve under the Accountant General’s Department of Malaysia (AGD). Started as an accountant in AGD Kuala Lumpur, he was then transferred to the Jabatan Agama Islam Wilayah Persekutuan Kuala Lumpur before being appointed as the Treasury Accountant in AGD Perlis. He has also worked in the Accounting Development Division in AGD, Treasury Budget Division and he was then seconded to the Langkawi Development Authority. His experience as an accountant in an agency under Ministry of Finance has allowed him to be seconded to Institut Kefahaman Islam Malaysia for 6 years, before serving at the Economic Planning Unit in the Prime Minister’s Department for 2 years. Dato’ Haji Che Pee was subsequently appointed as Treasurer of Kedah from 2001 to 2010. His appointment as the Director of Central Operation and Agency Services Division in 2010 was the best platform that showcased his leadership qualities and as an efficient administrator, before being appointed as the Accountant General of Malaysia.

He holds a Bachelor of Accounting with honours from Universiti Kebangsaan Malaysia. He is a Chartered Accountant under the Malaysian Institute of Accountants, Certified Practicing Accountant (Australia) and Chartered Institute of Public Finance and Accountancy. He is also a full member of Chartered Institute of Management Accountants.

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LEADERSHIP

BOARD MEMBER

DATO’ HAJI ABDUL RAZAK BIN MUSA Attorney General’s Chamber of Malaysia

Dato’ Haji Abdul Razak bin Musa was appointed as LPPSA’s Board member on 1 July 2015.

He is currently the Chairman of Prevention of Crime Board. He is also the President, Judicial and Legal Service Officers’ Association. Previously, he was the Deputy Head, Prosecution Division Attorney General’s Chambers and was a Kelantan State Legal Adviser. He has 31 years extensive experience in the Judicial and Legal Service serving in various capacities.

He graduated with Bachelor of Law (LLB) from University of Malaya.

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BOARD MEMBER

DATUK AHMAD BADRI BIN MOHD. ZAHIRMinistry of Finance

Datuk Ahmad Badri bin Mohd. Zahir was appointed as LPPSA’s Board member on 1 July 2015.

He is currently the Director of Budget, National Budget Office, Ministry of Finance. He currently sits on a number of Boards including Perbadanan Kemajuan Negeri Selangor, Kumpulan Wang Simpanan Pekerja, Bank Simpanan Nasional Berhad, Malaysia Development Holding Sdn Bhd, Syarikat Danajamin Nasional Berhad and Kuala Lumpur International Airport Berhad. He has 29 years of experience serving the Ministry of Finance in various capacities.

He holds a Master in Business Administration from University of Hull, United Kingdom. He holds a Diploma in Land and Property Management from MARA University of Technology (UiTM), Shah Alam and a Diploma in Public Administration from National Institute of Public Administration, Kuala Lumpur. He also holds a Degree in Land and Property Management from UiTM, Shah Alam which qualified him as a Trained and Qualified Valuer.

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BOARD MEMBER

NUNGSARI BIN AHMAD RADHIProkhas Sdn Bhd

Dr. Nungsari bin Ahmad Radhi was appointed as LPPSA’s Board member on 1 July 2015.

He is currently the Managing Director of Prokhas Sdn Bhd, a Minister of Finance, Incorporated company. Prior to joining Prokhas, he was an Executive Director at Khazanah Nasional Berhad. He currently serves as the Principal Officer and Board Member of Pengurusan Danaharta Nasional Berhad, Syarikat Jaminan Pembiayaan Perniagaan Berhad and Syarikat Jaminan Kredit Perumahan Berhad. He is also the Principal Officer of DanaInfra Nasional Berhad and sits on the Board of Blue Archipelago Berhad and is a member of the Malaysian Aviation Commission.

He is trained in economics and mathematics and holds a PhD from the Krannert School of Management, Purdue University, United States of America.

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ANNUAL REPORT 2016


BOARD MEMBER

NORZILAH BINTI MOHAMMEDExport-Import Bank of Malaysia Berhad (EXIM Bank)

Puan Norzilah binti Mohammed was appointed as LPPSA’s Board member on 1 November 2015.

She is currently the President/Chief Executive Officer of EXIM Bank. She sits on the Board of Malaysia Export Credit Insurance Berhad subsidiary company of EXIM Bank and a Board member of Malaysia External Trade Development Corporation. She is a Committee Member of Trust Working Group on Internalisation for Construction Industry Transformation Program and a Council Member of Association of Development Financial Institution of Malaysia. She is also a member of Asian EXIM Banks Forum and a member of Association of Development Financing Institution in Asia and the Pacific. She has 26 years of extensive experience in various areas in corporate and commercial banking and corporate debt restructuring including cross border financing and insurance.

She holds a Bachelor’s of Science Degree in Business Administration majoring in Accounting from the California State University, Sacramento, United States. She is also a graduate of Women’s Director Programme from the National Institute for the Empowerment of Women and a Qualified Risk Director as well as a member of Institute of Enterprise Risk Practitioners.

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Puan Norsimah binti Ab. Wahab was appointed as Chief Executive Officer of LPPSA effective 1 January 2016.

She was previously the Under Secretary of Housing Loan Division, Ministry of Finance Malaysia from 2014 until 2015 before she was appointed as the Chief Executive Officer of LPPSA. Puan Norsimah binti Ab. Wahab has over 35 years of extensive experience serving at various Ministries which include Ministry of Health, Ministry of Agriculture, Ministry of Defence and Ministry of Finance. She has served as Principle Assistant Secretary in Government Procurement Division since 1999 before being promoted as Deputy Under Secretary in the same division. Subsequently, she was promoted as the Under Secretary of Housing Loan Division, Ministry of Finance Malaysia in 2014.

She holds a Bachelor of Science with Honours in Biology from University of Science, Malaysia and Diploma in Public Management Programme from National Institute of Public Administration.

BOARD MEMBER


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ANNUAL REPORT 2016


Customer-CentricMeeting the housing needs and requirements of Malaysia’s public sector

Elements such as integrity, transparency, efficiency and professionalism which are considered to be key factors in contributing to an organisation’s continued progress towards achieving the stakeholders’ objectives are instilled in the work processes and policies of LPPSA.

Composition of the Board

LPPSA is led and managed by experienced and knowledgeable Board members with varied backgrounds from both the Government and private sectors. The composition of the Board is crucial in ensuring that LPPSA’s key functions are carried out in accordance with the Act. Section 8(1) of the Act states that the Board shall consist of the following members who shall be appointed by the Minister of Finance:

(a) the Secretary General of Treasury, as Chairman;

(b) the Attorney General or his representative;

(c) the Accountant General or his representative;

(d) the Chief Executive Officer who is an ex-officio member;

(e) not more than three members from amongst the officers of the federal public service who shall be appointed by the Minister; and

(f) not less than two but not more than four other members who shall be appointed by the Minister.

The members appointed under paragraph (1)(f) under the Act shall be fit and proper persons from amongst persons who, in the opinion of the Minister, have standing and experience in banking, or financial or legal matters.

Chairman and Chief Executive Officer

As part of good corporate governance and as enumerated under the Act, the roles of the Chairman and the Chief Executive Officer (CEO) are kept distinct and separate. The Chairman of LPPSA is primarily responsible for ensuring the Board’s effectiveness in meeting the primary targets of LPPSA. Meanwhile, the CEO of LPPSA, who is appointed by the Board with the approval of the Minister of Finance, is responsible for the overall operations and the implementation of policies and decisions made by the Board. The CEO is assisted by the management team in managing day to day administration and daily operations of LPPSA and its employees.

THE BOARDLPPSA IS ESTABLISHED UNDER THE PUBLIC SECTOR HOME FINANCING BOARD ACT

2015 (THE ACT), ITS MAIN FUNCTION BEING TO PROVIDE HOME FINANCING TO PUBLIC

SERVANTS ELIGIBLE UNDER SECTION 21 (3) OF THE ACT. IN DISCHARGING THIS

RESPONSIBILITY, THE BOARD HAS ENSURED THAT LPPSA’S DAILY OPERATIONS AND

AFFAIRS ARE IN STRICT ADHERENCE OF THE ACT AND TO THE PRINCIPLES OF GOOD

CORPORATE GOVERNANCE.

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STATEMENT ON CORPORATE GOVERNANCE

Responsibilities and Accountabilities of the Board

The functions of the Board are specified under Section 6 of the Act 767. In a nutshell the functions are as follows:

a) to manage the Fund and to administer the public sector home financing facility in accordance with the provisions of the Act;

b) to advise the Minister on matters relating to the public sector home financing facility; and

c) to do such other things as may be required or permitted to do under the Act.

The Board is further established to administer and manage LPPSA in such a manner as would further enhance the respective interests of the stakeholders. The Board is to formulate administration and management policies and procedure and to ensure that LPPSA achieves its objectives with success and excellence in line with its vision and mission.

The Board assumes a number of specific tasks, such as overseeing the proper conduct of operations, identifying key risk areas and ensuring the proper implementation of appropriate systems to manage these risks as well as reviewing the adequacy and integrity of the internal control systems as specified in the Act and by the Board.

Board Meetings

Four (4) meetings were held during the financial year 2016. The summary of attendance of the Board members for 2016 is as follows:

Name of Board Member DesignationNo. of Meetings

Attended

Tan Sri Dr. Mohd Irwan Serigar bin Abdullah Chairman 4/4

Datuk Ahmad Badri bin Mohd. Zahir Deputy Chairman 4/4

Dato' Haji Abdul Razak bin Musa Member 4/4

Dato' Haji Che Pee bin Samsudin Member 4/4

Dr. Nungsari bin Ahmad Radhi Member 4/4

Puan Norzilah binti Mohammed Member 4/4

Puan Norsimah binti Ab. Wahab Member 4/4

In order to assist the Board in discharging its functions and responsibilities, the Board has established Board committees comprising the Audit, Risk and Integrity Committee (ARIC), Nomination and Remuneration Committee (NRC) and the Disciplinary Committee (DC). The establishment of these Board committees are within the parameters of Section 13 of the Act.

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ANNUAL REPORT 2016

AUDIT, RISK AND INTEGRITY COMMITTEE (ARIC)

Membership

The Audit, Risk and Integrity Committee (ARIC) was established on 14 July 2015 at the first Board meeting of LPPSA. This was to enable the Board to fulfil immediately, its statutory duties relating to financial reporting, audit, risk control and integrity.

The LPPSA ARIC is composed of four (4) Board members, namely its Chairman and three (3) other members appointed by the Board, as follows:

i) Dato’ Haji Che Pee bin Samsudin – Chairman

ii) Datuk Ahmad Badri bin Mohd. Zahir – Member

iii) Dr. Nungsari bin Ahmad Radhi – Member

iv) Puan Norzilah binti Mohammed – Member

Meetings

ARIC has agreed that for the subsequent years ARIC meeting shall be convened at least four (4) times a year.

Terms of Reference

The principal responsibilities of ARIC are set out in its Terms of Reference that were approved by the Board on 14 July 2015. Summarily, its principal responsibilities is to assist the Board with oversight of the following:

i. the integrity of financial statements, financial reporting processes and the systems of internal control;

ii. the performance of the LPPSA’s internal audit function;

iii. the identification, assessment and management of LPPSA’s significant risks; and

iv. the LPPSA’s integrity and governance issues related policies.

In principle, the ARIC is authorised by the Board to review activities which involve financial reporting, internal controls, internal audit, risk management and integrity through the implementation of quarterly and yearly financial reporting, internal control reporting framework, corporate risk portfolio reporting and the integrity and compliance programmes.

Summary of Activities

For the financial year 2016, i.e. in the first year of establishment of LPPSA, three (3) ARIC meetings were held. The first (1st) ARIC meeting was held on 30 June 2016, the second (2nd) was convened on 4 October 2016 and the third (3rd), on 29 November 2016. The summaries of activities are as follows:

i. Financial Reporting

The ARIC assisted the Board in discharging its oversight role of reliable, accurate and clear financial reporting by reviewing LPPSA’s quarterly and yearly financial statements, prior to submission to the Board, focusing on:

a) Changes in accounting policies and practices and its implementation;

b) Significant and unusual events;

c) Significant adjustments arising from audit;

d) Review of the going concern assumption; and

e) Compliance with accounting standards and other legal requirements.

For 2016, the ARIC had reviewed and approved LPPSA’s Quarterly Financial Performance for the first, second and third quarter 2016.

In its submission of the audited financial statements, the ARIC also conducted a review on the processes of financial reporting audit plan to ensure compliance with the provisions of the Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240].

ii. Internal Audit

The ARIC reviewed the policies, strategies, resources and issues raised by the Internal Audit Department as well as the implementation and closure of the issues.

The ARIC also monitored the performance of the Internal Audit Department and ensured the independence of the Internal Audit Department’s function in LPPSA. For 2016, the ARIC considered and approved proposals and one (1) audit report issued by the Internal Audit Department as follows:

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a) The Internal Audit Charter and Memorandum of Internal Audit Charter which translated the authority, function, roles and accountability of the Internal Audit Department in implementing internal audit activities in LPPSA;

b) Annual Internal Audit Plan and Manpower Rationalisation for 2016 which proposed the assurance plans and resources needed for the Internal Audit Department;

c) Audit Report on General Controls of LPPSA which provided the assurance and internal controls review of LPPSA at the entity-level controls encompassing Control Environment, Control Activities, Information and Communication, Monitoring and Risk Assessment. The Internal Audit Department was of the opinion that the internal controls had been designed for and were embedded in LPPSA. This opinion notwithstanding, recommendations arising from the audit were reported to the ARIC, and the Management’s responses and action plans were considered and monitored;

d) As part of its 2016 Annual Internal Audit Plan, the Internal Audit Department also conducted an audit review on the home financing applications processing activities for presentation to the ARIC in 2017;

e) The Annual Internal Audit Plan for 2016 and 2017 which were presented in the first and the third ARIC meetings were developed by adopting a risk based approach based on risk assessment methods to identify the entities that needed to be audited. Risk assessment was made based on two (2) perspectives, first, from the perspective of the operational activities of home financing and second, from the perspective of functional activities which provide support services to the main operational activities of home loan financing. Subsequently, in identifying the audit that should be conducted from the perspective of operational activities of home loan financing, identification and prioritisation of the divisions or departments assessed with the highest risk are required. Thus, immediate auditing work is also necessary to accelerate process improvement of the existing internal control systems; and

f) The Internal Audit Department’s performance for 2016 against its Annual Internal Audit Plan 2016 was also monitored at the end of the financial year 2016, by the ARIC. The performance of the Internal Audit Department shall be monitored on semi-annually and yearly basis in the subsequent years, consistent with the requirement in the Memorandum of the Internal Audit Charter.

iii. Risk Management

The ARIC assisted the Board in discharging its risk management functions as well as formulation and execution of the risk management strategies and policies. These risk management policies serve as a foundation for the risk management activities within LPPSA. The ARIC has unrestricted and direct access to the Head, Risk Management, who regularly reports to the ARIC and the Board on the corporate risks and activities of the Governance, Risk and Compliance Department (GRCD).

Among the key responsibilities of ARIC are, to review the adequacy of and to provide independent assurance to the Board on the effectiveness of the risk management functions in LPPSA, to ensure the principles and requirements of managing risk are consistently adopted throughout LPPSA and to monitor and review the effectiveness of the internal control and operational risk management frameworks and compliance with key risk management policies. This includes the processes of identifying, assessing and responding to risks in a manner that is in accordance with the organisation’s risk appetite.

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ANNUAL REPORT 2016


For the financial year 2016, the ARIC considered and approved the proposals and risk management report issued by the GRCD, as follows:

a) Risk Management Policy which elaborated a framework for the effective identification, evaluation, management and reporting of LPPSA’s risks;

b) Corporate Risk Portfolio as of 30 September 2016 which identified risks of each section/department/division in LPPSA, its causes, impacts, controls and proposed action plans to reduce or mitigate the risks; and

c) Business Continuity Management (BCM) which proposed the Terms of Reference of the Business Continuity Management Committee (BCMC) for approval of the Board. The BCMC is established for the purpose of implementing oversight and provide advice to the Management and Board in respect of LPPSA’s Business Continuity Plan (BCP), Emergency Response Plan (ERP) and Critical Contingency Plan (CCP).

At Management level, the Risk Management Committee (RMC) is established to assist the ARIC in deliberating the risk management strategies, policies and guidelines prior to their approval. Among the key functions of the Risk Management Committee are, to assess and propose risk management policies and procedures and determine their risk appetite, tolerance and parameters to the Board for adoption. The RMC is also responsible for reviewing the BCM’s strategies, policies and guidelines prior to approval by the ARIC and the Board.

iv. Integrity

The ARIC is responsible for assisting the Board in reviewing the policies and programmes relating to the reinforcement of sound management, high integrity and good governance of LPPSA. However, todate, there has been as yet no proposal or policies on integrity presented to the ARIC.

NOMINATION AND REMUNERATION COMMITTEE (NRC)

The NRC was established to assist the Board in discharging its function of having the primary responsibility to establish a relevant policy framework in determining the appointment and remuneration of the Management and staff of LPPSA and to recommend to the Board the performance – related remuneration of the respective staff.

Composition

The NRC is composed of four (4) Board members, i.e. a Chairman and the following three (3) other members who have been appointed by the Board:

i. Dr. Nungsari bin Ahmad Radhi – Chairman

ii. Datuk Ahmad Badri bin Mohd. Zahir – Member

iii. Dato’ Haji Che Pee bin Samsudin – Member

iv. Puan Norzilah binti Mohammed – Member (appointed with effect from 18 May 2016)

Responsibilities

The NRC is responsible for advising and recommending to the Board its nomination of members of the Board and to determine the policy on the remuneration of top executives of the Board. The NRC is also responsible for reviewing the Human Resource framework and policies as and when it is necessary.

Summary of NRC Activity

The NRC held one (1) meeting during the financial year 2016.

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DISCIPLINARY COMMITTEE (DC)

Composition

The DC currently comprises three (3) Board members, i.e. a Chairman and the following two (2) other members who have been appointed by the Board:

i. Dato’ Haji Abdul Razak bin Musa – Chairman

ii. Datuk Ahmad Badri bin Mohd. Zahir – Member

iii. Dr. Nungsari bin Ahmad Radhi – Member

Responsibilities

The DC is responsible for matters relating to the discipline of the top executives of the Board.

Summary of DC Activity

The DC did not hold any meeting during the financial year 2016.

TENDER BOARD

The Tender Board was established to assist the Board in discharging its functions with regard to the process of evaluations in respect of the procurement proposals. Currently LPPSA adopts the Ministry of Finance (MoF) procurement process and procedures.

Membership

Currently, there are two (2) Tender Boards, namely, Tender Board A and Tender Board B. Tender Boards A and B have the same Chairman while the other members have been appointed by the Board.

a) Tender Board A

i. Datuk Ahmad Badri bin Mohd. Zahir – Chairman

ii. Dato’ Haji Chee Pee bin Samsudin – Member

iii Dr. Nungsari bin Ahmad Radhi – Member

iv. Puan Norsimah binti Ab. Wahab – Member

b) Tender Board B

i. Datuk Ahmad Badri bin Mohd. Zahir – Chairman

ii. Dato’ Haji Chee Pee bin Samsudin – Member

iii. Puan Norzilah binti Mohammed – Member

iv. Puan Norsimah binti Ab. Wahab – Member

Responsibilities of Tender Board

The duties and responsibilities of the Tender Board include among others, the following:

i. To consider and approve procurement by tender (Tender board ‘A’: over RM20 Million of value or

Tender board ‘B’: RM500 Thousand – RM20 Million)

ii. To consider and approve the implementation of the procurement of direct negotiations for above RM500 Thousand;

iii. To inspect and check the registration of the company with the MoF and Bumiputera status certificate;

iv. To ensure all invitations for tender are in compliance with tender management procedures;

v. To check the technical and financial capacity of tenderer;

vi. To make a decision on re-tendering or to recommend other procurement methods; and

vii. To consider and accept any quote that is recommended by ‘Jawatankuasa Sebut Harga’ that exceeds the value of quotes.

Summary of Tender Board Activity

The Tender Board held one (1) meeting during the financial year 2016.

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ANNUAL REPORT 2016


OVERVIEW

LPPSA believes that effective risk management is an essential and an integral part of its corporate governance and shall continuously strive for excellence to ensure effective and systematic protection of the overall operation in LPPSA.

LPPSA operates in a highly competitive business environment and is exposed to various risks which include financial, operational, reputational and strategic risk. The Governance, Risk and Compliance Department (GRCD) has proactively reviewed, monitored and managed these risks with cooperation from all departments and divisions in LPPSA.

Diagram 1: Risk Management Process based on ISO 31000:2009

Monitor &ReviewTreat Risk

Analyse & Evaluate

Risk

IdentifyRisk

Communication & Consultation to Risk Stakeholder

Establishthe Context

Risk Assessment

Periodic Review & Continuous Improvement

1 2 3 4

5

THE YEAR 2016 WAS A NEW MILESTONE FOR LEMBAGA PEMBIAYAAN PERUMAHAN

SEKTOR AWAM (LPPSA) AFTER IT WAS TRANSFORMED FROM BAHAGIAN PINJAMAN

PERUMAHAN (BPP) IN REALISING ITS VISION TO BE AN EXCELLENT AND SUSTAINABLE

PROPERTY FINANCIER FOR THE PUBLIC SECTOR. LPPSA VIEWS THAT AS THE INTEGRAL

PART OF THE BUSINESS STRATEGY, A SUCCESSFUL IMPLEMENTATION OF VARIOUS KEY

INITIATIVES ESSENTIALLY REQUIRED A STRUCTURED, PROACTIVE AND EFFECTIVE

ENTERPRISE RISK MANAGEMENT (ERM). IT CREATES A SUSTAINABLE PROCESS OF

IDENTIFYING, ASSESSING AND MANAGING RISKS ACROSS ALL LEVELS IN LPPSA. THE

ERM PROCESS ENABLES THE SENIOR MANAGEMENT TO ASSESS AND MANAGE

SIGNIFICANT RISKS THAT MAY ADVERSELY IMPACT THE ATTAINMENT OF LPPSA’S KEY

ORGANISATIONAL OBJECTIVES AND MINIMISE UNCERTAINTIES.

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STATEMENT ON RISK MANAGEMENT

A structured and integrated approach in managing key business risks has been adopted and is in line with the recommended risk management framework and best practices. It is consistent with the ISO 31000 which involves the systematic identification and analysis impacting LPPSA business objectives as depicted in Diagram 1.

RISK ASSESSMENT AND REPORTING

Activities carried out by GRCD to discharge its duties and responsibilities are set out in the Risk Management Policy and include the following:

• Analyse risk assessment report from all departments and divisions on quarterly basis;

Diagram 2: LPPSA Risk Management Stakeholders

MEMBER

AUDIT, RISK AND INTEGRITY COMMITTEE (ARIC)

RISK MANAGEMENT COMMITTEE (RMC)

GOVERNANCE, RISK AND COMPLIANCE DEPARTMENT (GRCD)

RISK AWARENESS AND COMMUNICATION

As part of LPPSA’s continuous initiative to improve risk management culture, risk awareness sessions were conducted together with LPPSA’s Management.

In the financial year 2016, GRCD together with the consultant has conducted a series of risk management workshops for the Management which focused on the attainment of the following goals:

• To develop an enduring and positive risk culture throughout LPPSA; and

• Report to Risk Management Committee (RMC) on the consolidated risk faced and mitigation plan for deliberation; and

• Present the quarterly report to the Audit, Risk & Integrity Committee (ARIC) and the Board on the summary of key risks for further deliberation of their impact on business objectives as shown in Diagram 2.

All risks identified were assessed to determine the risk rating which is based on 3x3 risk matrix, with a rationale of improving efficiency, encouraging proactive response and promoting common risk language. The efforts and resources to mitigate the risk are based on the risk rating findings.

• To facilitate and assist department and divisional heads to ensure risk management is firmly embedded as a business process.

This Awareness Programme is conducted continuously with innovative approaches to impart risk management knowledge and ensuring that risks faced by LPPSA are addressed proactively.

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ANNUAL REPORT 2016

RISK CATEGORIES IN LPPSA

A number of risk assessments and validations were done in the financial year 2016. Updates on the completion as well as the effectiveness of mitigation plans were reported to RMC, ARIC and Board respectively on a quarterly basis. To ensure LPPSA is able to provide sustainable home financing for the public sector, it is imperative that efforts are taken to ensure all risk factors faced by LPPSA are effectively managed. Diagram 3 describes the risk categories in LPPSA.

Diagram 3: Risk categories as defined in LPPSA Corporate Risk Portfolio

STRATEGIC RISK

Threats or opportunities that materially effect the ability of an organisation to survive

OPERATIONAL RISK

The risk of financial loss resulting from inadequate or failed internal processes, people and systems or from external events

REPUTATIONAL RISK

Risk of financial loss caused by a negative impact/perception towards LPPSA in the market

FINANCIAL RISK

The risk that LPPSA will be unable to meet its financial obligations

CONCLUSION

The Governance, Risk and Compliance Department (GRCD) is committed to enhance LPPSA’s risk management through high level cooperation from all departments and divisions in LPPSA.

LPPSA shall continue to cultivate a risk management culture to give reasonable assurance that our stakeholders’ interests are protected. However, providing assurance that risk is effectively managed requires commitment and discipline from all departments and divisions. Therefore, comprehensive and in-depth of risk assessment and management as well as competency will remain the top priority of LPPSA to cultivate a more proactive risk management operation.

Our focus for 2017 will be the continuation of our efforts to streamline risk management process with business activities. In this regard, we will introduce the Risk Management Scorecard (RMS) which will help to improve LPPSA’s adequacy and effectiveness in managing and practising risk management across its business operation and help the Management and Board to have an overview of the current state of risk in LPPSA.

BUSINESS CONTINUITY MANAGEMENT (BCM)

Background

BCM is defined as a holistic management process that identifies potential threats to an organisation and the impact to business operations those threats, if realised, might cause and which provides a framework for building organisational resilience with the capability of an effective response that safeguards the interests of its key stakeholders, reputat ion, brand and va lue-creat ing act iv i t ies (ISO 22301:2012).

BCM’s basic objective is to minimise the risk of an incident happening and should an incident occur, the impact is minimised by having a business continuity plan in place. LPPSA recognises the need to have an effective BCM in place that will ensure LPPSA’s ability to operate on an ongoing basis and limit the losses in the event of operational disruption.

BCM for LPPSA is intended to be comprehensive in such a way as to include policies, strategies, plans, procedures as well as compliance with the standards. This is to ensure that specified operations can be maintained or recovered in a timely manner in the event of a disruption and ensures that the functionality of business process and financial system as a whole is preserved.

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Roles and Responsibilities of BCM Committee

i. Roles and Responsibilities

• Ensure readiness of departments and divisions to manage crises is tested and provide feedback to the CEO, RMC, ARIC and Board with regard to actions require as a consequence of that testing.

• Providing a point of liaison with Emergency Plans developed by other relevant agencies and Emergency Services.

ii. Culture

• In exercising its responsibilities, BCMC may refer any item to CEO for discussion, consideration and/or action.

• In the absence of CEO, BCMC may refer any item to CEO’s appointed person.

• BCMC may refer relevant matters for action or notification to other committees as appropriate.

iii. General Duties

• Ensur ing and encourag ing openness of communication, transparency, independency and objectivity on matters relating to business continuity. Upholding the implementation of general and fiduciary duties in improving business continuity management culture.

Objectives

The objectives of BCM implementation for LPPSA are as follows:

a. To ensure LPPSA’s operations continue despite the occurrence of a potentially disruptive event;

b. To minimise the impact of disruptive events and return to normal operations as quickly as possible;

c. To ensure LPPSA remains resilient and subsequently uphold stakeholders’ confidence by implementing prudent corporate governance practices; and

d. To ensure that LPPSA’s BCM Implementation is in compliance with international standards, namely ISO 22301:2012 Business Continuity Management System.

BCM Committee

LPPSA’s Business Continuity Management Committee (BCMC) will be reporting to the Risk Management Committee (RMC). The purpose of BCMC is to assist the RMC in implementing oversight and advice to ARIC and the Board in respect of LPPSA’s Business Continuity Management (BCM) initiatives. This is also to ensure the business operation will run smoothly in the pursuit of LPPSA’s corporate vision, mission and strategic goals.

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ANNUAL REPORT 2016

STATEMENT ON RISK MANAGEMENT

SCOPE OF WORK

The scope of work of the Internal Audit Department includes audit of the internal processes of the financial management, operations, compliance and management of LPPSA. This is to determine that LPPSA’s risk management, internal control systems, management and governance processes as designed and managed by LPPSA’s Management are adequate and functioning to ensure the following:

a) Effectiveness and efficiency of operations;

b) Reliability and integrity of financial and operational information;

c) Safeguarding of assets; and

d) Compliance with laws and regulations.

The Internal Audit Department developed its Annual Internal Audit Plan using the risk-based approach, prioritising the internal audit activities according to the risk assessment result of the LPPSA Corporate Risk Profile 2016. The LPPSA Corporate Risk Profile 2016 was developed and assessed based on the assessment of the inherent risks, control risks and residual risks for each of the operations and functions in LPPSA.

INTERNAL AUDIT RESOURCES

As of 31 December 2016, the total Internal Audit Department headcount was four (4). It consists of one (1) Head of Internal Audit and three (3) auditors with internal auditing and accounting background. The ARIC reviewed and approved the Internal Audit Department’s human resource requirements to ensure the function is adequately equipped with competent internal auditors. With the nature of auditing works and volumes of transactions involving home loans processes, compliance and management of information systems, additional manpower specialising in IT auditing is to be recruited in 2017, together with additional manpower for operational auditing.

OVERVIEW

The Internal Audit Department is a new department established in LPPSA following the transformation of Bahagian Pinjaman Perumahan (BPP) into LPPSA, as a new statutory body under the Ministry of Finance (MoF). Prior to the transformation, the audit activities of financial audit and operations of BPP were conducted by the Jabatan Audit Negara Malaysia (JAN). The Internal Audit Department of LPPSA was established on 1 April 2016.

An Internal Audit Department in LPPSA has been established to provide independent, objective assurance and advisory audit services in line with the aim of ensuring continuous improvement in LPPSA’s operations. The Internal Audit Department helps LPPSA to achieve its goals through the establishment of systematic and disciplined approaches in improving the effectiveness of internal control systems, risk management, administration and governance processes.

INDEPENDENCE AND OBJECTIVITY

Internal Audit is an independent function, which provides objective assurance and advisory services to add value and improve LPPSA’s operations. As such, the Head of Internal Audit Department reports functionally to ARIC and administratively to the CEO. The Internal Audit Department is given the freedom to determine its scope of internal auditing, dealing with ARIC in performing auditing work and communicating audit results.

Thus, in protecting its independent status, the Internal Audit Department has no executive or managerial powers, authorities, functions or duties except those relating to the management of internal audit functions. The Internal Audit Department is also not responsible for the detailed implementation of efforts to establish a new system, plans, policies, processes and procedures. The Internal Audit Department’s role is only to review and assess the risks in terms of control and thus provide advice to LPPSA’s Management. As such, all decisions and the implementation of undertakings are entrusted entirely to the Management.

INTERNAL AUDIT ACTIVITIES ARE GOVERNED BY LPPSA’S INTERNAL AUDIT CHARTER

AND MEMORANDUM OF INTERNAL AUDIT CHARTER WHICH WERE APPROVED BY THE

AUDIT, RISK AND INTEGRITY COMMITTEE AT ITS FIRST AUDIT, RISK AND INTEGRITY

COMMITTEE MEETING HELD ON 30 JUNE 2016.

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STATEMENT ON INTERNAL AUDIT

TRAINING

As a new statutory body under the MoF, LPPSA has provided an extensive series of in-house and external trainings to the internal auditors to develop and increase their knowledge in internal auditing as well as other areas relating to empowering hard and soft skills of the auditors. The trainings that have been attended by the internal auditors are as listed below:

No. Course

(A) In-house Training

1. Knowledge Sharing Session on Legal Framework on Debt Recovery

2. Eat That Frog – Time Management

3. Teambuilding

4. Empowering Leadership

5. Risk Management Workshop

6. Microsoft Visio 2013

7. Microsoft Excel (Basic and Intermediate)

8. Microsoft Excel (Intermediate and Advance)

9. Protocol and Social Etiquette Course

10. Procurement Workshop

11. Image Rebranding Module

12. New Loan Account Statement Workshop (Session 1)

13. Standard Operating Procedures Workshop

(B) External Training

1. Bi-Annual Conference Commonwealth Association for Public Administration and Management (CAPAM)

2. National Blue Ocean Strategy (NBOS) Conference 2016

3. 2016 National Conference – Navigates Wave of the Digital Revolution

4. Beginning Auditor Tools and Techniques

QUALITY AND IMPROVEMENT PROGRAMMES

The effectiveness of the audit is dependent on the quality of the working system and procedures established and practiced, and on the level of knowledge and skills of the auditors. The Internal Audit Department has consequently established the Internal Audit Charter and the Memorandum of Internal Audit Charter which stipulate that a Quality Assessment Audit Program or Quality Assurance Review is to be conducted at least once every five (5) years.

The purpose of this programme is to assess the operations of the Internal Audit Department towards compliance requirements set out in the Internal Audit Charter and to also evaluate the level of compliance with applicable auditing standards. The Internal Audit Department has established a Quality Assessment Programs consisting of the following:

i. Regular Supervisory Activities;

ii. Self-Assessment Activities; and

iii. External Assessment Activities.

Regular Supervisory Activities include daily activities such as:

i. Review of reports prepared by the internal auditors by the Head of Internal Audit; and

ii. Response or feedback from related parties, especially from the auditee/management where the issues are presented.

Self-Assessment Activities include assessments conducted to determine whether the audited processes follow the procedures of the more important activities such as recording audit discussion, preparation of minutes of meetings, keeping records and evidence of the audit findings etc.

External Assessment Activities are carried out independently on the Internal Audit Department at least every five (5) years for the purpose of identifying the level of compliance with the Internal Audit Charter and also to identify process improvements required for the performance of the Internal Audit Department.

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ANNUAL REPORT 2016

Sustainable SolutionsProviding innovative solutions for home ownership

TENDER BOARD

NOMINATION AND REMUNERATION

COMMITTEE (NRC)

OPERATION DIVISION

LOAN ADMINISTRATION

DEPARTMENT

MORTGAGE DEPARTMENT

INSURANCE DEPARTMENT

INFORMATION, COMMUNICATION AND TECHNOLOGY

DEPARTMENT

PROCESS AND DISBURSEMENT DEPARTMENT

MONITORING AND RECOVERY DEPARTMENT

CORPORATE STRATEGY AND

PLANNING DEPARTMENT

TREASURY DEPARTMENT

FINANCE DEPARTMENT

CORPORATE PLANNING DIVISION

FINANCE AND TREASURY DIVISION

ORGANISATIONSTRUCTURE

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CHAIRMAN

CHIEF EXECUTIVEOFFICER

BOARD MEMBERS

AUDIT, RISK AND INTEGRITY COMMITTEE

(ARIC)

CORPORATE SERVICES DIVISION

HUMAN RESOURCES DEPARTMENT

CORPORATE COMMUNICATION

DEPARTMENT

ADMINISTRATION AND CUSTOMER SERVICES

DEPARTMENT

ORGANISATION PROCESS

AND METHOD DEPARTMENT

LEGAL AND SECRETARIAL DEPARTMENT

OPERATION’S POLICY

DEPARTMENT

CEO’S OFFICE DEPARTMENT

INTERNAL AUDIT DEPARTMENT

GOVERNANCE, RISK AND COMPLIANCE

DEPARTMENT

INTEGRITY DEPARTMENT

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ANNUAL REPORT 2016


Puan Norsimah binti Ab. Wahab was appointed as Chief Executive Officer of LPPSA effective 1 January 2016.

She was previously the Under Secretary of Housing Loan Division, Ministry of Finance Malaysia from 2014 until 2015 before she was appointed as the Chief Executive Officer of LPPSA. Puan Norsimah binti Ab. Wahab has over 35 years of extensive experience serving at various Ministries which include Ministry of Health, Ministry of Agriculture, Ministry of Defence and Ministry of Finance. She has served as Principle Assistant Secretary in Government Procurement Division since 1999 before being promoted as Deputy Under Secretary in the same division. Subsequently, she was promoted as the Under Secretary of Housing Loan Division, Ministry of Finance Malaysia in 2014.

She holds a Bachelor of Science with Honours in Biology from University of Science, Malaysia and Diploma in Public Management Programme from National Institute of Public Administration.

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PROFILE OF SENIOR MANAGEMENT

MOHD ZAWAWI BIN MOHD MUHIDDINChief Financial Officer

Encik Mohd Zawawi bin Mohd Muhiddin was appointed as Chief Financial Officer of LPPSA on 1 December 2015.

He was previously a Senior Manager at Prokhas Sdn Bhd. He started his career in Klynveld Peat Marwick Goerdeler from 2001 until 2006 and his last post there was Audit Senior 2. He briefly joined Aseambankers Malaysia Berhad (now known as Maybank Investment Berhad) in 2002 as Executive, Corporate Finance before rejoining KPMG in 2003. From 2006 to November 2008 he served as an Assistant Vice President 4 at OCBC Islamic Banking Division. He then briefly served as Assistant Vice President 4 to OCBC Al-Amin Bank which is a subsidiary of OCBC. He then joined Prokhas Sdn Bhd in 2009.

He holds a Bachelor of Accounting from University of Malaya and is a registered member of Malaysian Institute of Certified Public Accountants, Chartered Institute of Public Finance & Accountancy and Malaysian Institute of Accountants.

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ANNUAL REPORT 2016

ZUWARDI BIN ZUBIRGeneral Manager (Acting), Operation Division

Encik Zuwardi bin Zubir was appointed as General Manager (Acting) of Operation Division at LPPSA on 1 February 2017.

He started his career with LPPSA in January 2016 as the Assistant General Manager of Monitoring and Recovery Department before being appointed as General Manager (Acting) of Operation Division. Prior to joining LPPSA, he has been working in the banking industry for almost 10 years specialising in the area of corporate/commercial banking and debt recovery/rehabilitation. From January 2009, he joined a company wholly-owned by the Minister of Finance Incorporated, largely involved in managing residual assets of the Danaharta Group, managing Government Guarantee Scheme under Syarikat Jaminan Pembiayaan Perniagaan Berhad as well as involved in various advisory functions to the Ministry of Finance. From 2012 until 2015, he was attached with a Division under Ministry of Finance covering corporate debt restructuring, loan management and credit risk assessment.

He holds a Bachelor in Business Administration majoring in Finance from Universiti Utara Malaysia. He is also a Certified Islamic Financial Planner, Islamic Banking and Finance Institute and Financial Planning Association of Malaysia.

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AMIRUDDIN BIN ABDUL AZIZGeneral Manager, Corporate Planning Division

Encik Amiruddin bin Abdul Aziz was appointed as General Manager for Corporate Planning Division on 1 December 2015.

Prior to joining LPPSA, he was a Senior Consultant at Prokhas Sdn Bhd. He has extensive experience in the area of ICT, analyst, project management and business management serving both local and overseas company namely Hitachi Electronic Product, Sapura Advanced System, Petronas, PROTON, Mastercard International and Charter Communication in Missouri, USA.

He holds a Diploma in Computer Information System, American Associate Degree Program, Mara Community College, Pahang, Malaysia. He also holds a Bachelor of Science in Management Information System, the University of Tulsa, Oklahoma, USA. He is a Certified Century Methodology by New Straits Times Press (Malaysia) Berhad and Certified IBM for Cases Methodology.

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ANNUAL REPORT 2016

PROFILE OF SENIOR MANAGEMENT

Quality DrivenDelivering excellent home financing services

15 DECEMBER 2015 Launching Ceremony of BPP’s Transformation to LPPSA

The Launching Ceremony of BPP’s Transformation to LPPSA was officiated by Dato’ Ser i Ahmad Husni Mohamad Hanadzlah, Minister of Finance II during the Open Day of the Ministry of Finance in Putrajaya. Also present during the ceremony were YB Datuk Chua Tee Yong, Deputy Finance Minister along with Datuk Johari bin Abdul Ghani, Deputy Minister of Finance.

5–18 JANUARY 2016 Radio Interviews with LPPSA’s Representative

LPPSA’s Representative namely, Encik Sendeli Sebli, Encik Mohd Rashidi Baba and Encik Muhammad Nabil Basysyar Zulkifly was interviewed by multiple national radio station (NasionalFM, KLFM, Bernama 24 & SelangorFM) on the transformation of BPP to LPPSA.

4 JANUARY 2016 ‘Selamat Pagi Malaysia’ Interview with LPPSA

Puan Norsimah Ab. Wahab, CEO of LPPSA and Encik Mohd Rashidi Baba, Senior Manager, CEO’s Office were invited to ‘Selamat Pagi Malaysia’ TV Programme to share some insight on LPPSA.

2–3 MARCH 2016 2016 Civil Servants Housing Convention

LPPSA was invited to hold an exhibition during the Civil Servants Housing Convention held at the Ministry of International Trade & Industry. There were about 330 visitors during the exhibition including notable VIP’s namely YB Dato’ Seri Dr. Ahmad Zahid Hamidi, Deputy Prime Minister and YBhg. Datuk Azih Muda, President of CUEPACS.

15 DEC

4 JAN

5-18 JAN

2-3MAR

CALENDAROF EVENTS

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13 APRIL 2016 Then YB TMK Datuk Johari bin Abdul Ghani’s Official Visit to LPPSA

LPPSA welcomed the visit of YB Datuk Johari bin Abdul Ghani, then Deputy Minister of Finance to the organisation. A total of 250 officers were present to hear words of encouragement from TMK to provide top notch quality of service to the public sector.

12 APRIL 2016 Blood Donation Campaign

LPPSA successfully co-organise a Blood Donation Campaign with Pusat Darah Negara which was held in LPPSA involving a total of 120 donor.

11 APRIL 2016 PPA1M Exhibition

LPPSA was invited to participate PPA1M’s exhibition at Kompleks Perbadanan Putrajaya. The main purpose is to provide information, exposure and knowledge to PPA1M’s potential buyers on home financing services provided by LPPSA.

15–17 APRIL 2016 Inaugural Management Retreat

LPPSA Inaugural Management Retreat 2016 was held in Bangi-Putrajaya Hotel, to discuss in detail the organisation’s strategic and operational direction.

11 APR

13 APR

15-17 APR

12 APR

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ANNUAL REPORT 2016

15–17 APRIL 2016 Malaysian Property Expo (MAPEX 2016)

LPPSA participated in the 2016 MAPEX exhibition organised by REHDA in Mid Valley Megamall, KL. The exhibition showcases a myriad of properties available in the market.

JANUARY–DECEMBER 2016Briefing on LPPSA to Government Agencies

LPPSA was invited to provide a briefing session to all Ministries, Departments and Government Agencies. In 2016, a total of 84 briefing sessions were organised throughout the year by LPPSA.

Briefing on LPPSA to Government Agencies (January-December 2016) In 2016, LPPSA conducted 84 briefing session to Government Agencies.

15-17APR

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MAY–DECEMBER 2016Mobile CTC

During 2016, LPPSA had participated in a total of 15 Mobile CTC events organised by the Ministry of Finance. These events aim to provide opportunities for the public sector to bring its services to rural areas and other remote locations.

3 MAY 2016Panel Lawyer Briefing by LPPSA

A few series of briefing session was conducted by LPPSA’s Legal and Secretarial Department to explain the roles and responsibilities of the appointed panel lawyers.

MAY-DEC

3MAY

6–8 MAY, 23–25 SEPTEMBER 2016Bumiputera Property Exhibition 2016 (BPEX) Exhibition 2016

LPPSA participated in the BPEX Exhibition in Mid Valley, which focuses on the properties offered by Bumiputra developers. LPPSA was present to answer any queries regarding public sector home financing.

10 JUNE 2016Investors Briefing & Signing Ceremony

The event was held at Le Meridien, KL and it is essentially LPPSA’s maiden appearance amongst the investment community. The session was to introduce LPPSA as a market player and the issuance of LPPSA’ Sukuk Programme, followed by the signing ceremony of the ICP/IMTN Financing Programme and CP/MTN Financing Programme between LPPSA and the Joint Lead Arrangers. This momentous occasion was witnessed by YB Datuk Johari bin Abdul Ghani, then Deputy Minister of Finance and Tan Sri Dr. Mohd Irwan Serigar bin Abdullah, Secretary General of Treasury and Chairman of LPPSA.

6-8MAY

10JUNE

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ANNUAL REPORT 2016

CALENDAR OF EVENTS

3 AUGUST 2016Majlis Rumah Terbuka LPPSA

LPPSA Open House with the theme ‘Klasiknya Raya’ was successfully held to celebrate the festive season. Live band performances, Best Dress and Best Decorated Booth are among the highlights of the event.

11 AUGUST 2016 LPPSA Teambuilding Programme

The Human Resources Department had organised a series of teambuilding sessions which commenced on 11 August 2016. The programme was held for 3 days 2 nights in Port Dickson. The main focus of this programme is to strengthen the relationship and to instil LPPSA’s core values in order to achieve our mission and vision.

26 JULY 2016YB TMK I & YB TMK II visit to LPPSA

Official visit to LPPSA by YB Dato’ Othman Aziz, Deputy Minister of Finance I and YB Dato’ Lee Chee Leong, Deputy Minister of Finance II, along with a total of 20 delegates from the Ministry of Finance.

26JULY

3AUG

11AUG

29 JUNE 2016Distribution of Donations to Charitable Organisations Nur Hati & At-Taqwa

With collaboration from the Corporate Communication Department, Administration Department and Surau Al-Baiti, the donation was successfully distributed to 112 recipients.

29JUNE

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19 OCTOBER 2016Personal Grooming & Business Etiquette

An Internal CSR programme was held in LPPSA which was organised by the Corporate Communications Department in collaboration with CuteCarry Sdn. Bhd. This programme is to provide relevant exposure about personal grooming and ethics in dealing with customers. A total of 120 participants took part in this programme.

16–22 NOVEMBER 2016 Pesta Sukan Kementerian Kewangan 2016 (PSKK)

The 42nd PSKK was held in Langkawi, Kedah of which Lembaga Pembangunan Langkawi is the host of the event this year. LPPSA participated in a total of 9 sports events including football, netball, futsal, badminton, bowling, golf, sports, table tennis and dart.

26 NOVEMBER 2016 Family Day

With the presence of Tan Sri Dr. Mohd Irwan Serigar bin Abdullah, Secretary General of Treasury and Chairman of LPPSA, LPPSA’s Family Day was successfully held and inaugurated by Puan Norsimah Ab. Wahab. Following “LPPSA’s Splish Splash” theme, the event was attended by 1,200 people including family members of LPPSA’s staff.

2–4 DECEMBER 2016Second Management Retreat

LPPSA’s Second Management Retreat 2016 was held in Casa Del Rio, Malacca to further discuss on the organisation’s strategic

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