Malaysia Airport Holdings Berhad Mahb

The Malaysia Airport logo is a composition of three elements – a control tower, a runway and an aircraft flying skywards. The runway with its four threshold reflects Malaysia Airport as being systematic in its approach, dynamic, efficient and customer-dedicated. The diagonal “airways” signifies Malaysia Airport’s tenacity to remain an ever progressing organization. The airport tower signifies Malaysia Airport’s high standards of efficiency and excellent service. The logo’s colour -blue and orange- mirror the corporate mission. Blue, a colour synonymous with aviation, signifies stability, harmony and the discipline to ensure excellence service. The second colour, orange, expresses the strength and forward vision of the management and people in Malaysia Airport. The synergy of all elements in the logo represents Malaysia Airport’s corporate vision of excellence and integrity.

Malaysia Airport Holdings Berhad (MAHB) is Malaysian airport company that operate and manages 39 airports in Malaysia that that include 5 international airports, 16 domestic airports and 18 short take-off and landing (STOL) ports. Malaysia Airports currently manages 4 airports overseas, namely the Indira Gandhi International Airport in Delhi, India; the Rajiv Gandhi International Airport in Hyderabad, India; the Sabiha Gokcen International Airport in Turkey and the Male International Airport in Maldives. MAHB’s headquarters was placed in Malaysia Airports Corporate Office in the Persiaran Korporat KLIA in Kuala Lumpur International Airport, Sepang, Selangor and their main airport is the KL International Airport (KLIA).

Malaysia Airport Berhad was incorporated in year 1991 after Malaysia Parliament passed a bill to separate the Department of Civil Aviation (DCA) into two entities with different spheres of responsibilities where DCA remains the regulatory body for the airports and aviation industry in Malaysia while Malaysia Airport Berhad focus on the operation, management and maintenance of airports.

In November 1992, Malaysia Airport Berhad was duly licensed by the Minister of Transportation Malaysia to carry out its function as the airport operator.

The holding company, Malaysia Airport Holdings Berhad (MAHB) was incorporated as a public limited company in November 1999. Besides that, MAHB was the first airport operating company in Asia and sixth in the world that being listed on the Main Board of the Kuala Lumpur Stock Exchange.

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The core activities include the management, operation and maintenance as well as development of airports, with primary importance being placed on the operational efficiency, safety and security of passengers, cargo and aircraft operations. MAHB also has its corporate structure, a few subsidiary companies to offer a range of aviation and non-aviation related products and services.

MAHB’s revenue base is divided into aeronautical and non-aeronautical revenue. Aeronautical revenue includes landing fees, aerobridge charges, check-in-counter charges, parking fees and the passenger service charges. Non- aeronautical revenue generated from commercial activities such as duty free operations, hotel operations and management of parking facilities

MAHB Organization Structure 2012

Awards and Accolades Year 2012

Malaysia Airports is one of the finalists in the Air Cargo Award of Excellence for the category Airports Asia 400,000 to 999,999 tonnes, for achieving Air Cargo Excellence and the superior overall rating as determined by the readers of Air Cargo World Magazine. The award was presented at the IATA World Cargo Symposium the Shangri La Hotel, Kuala Lumpur, on March 12, 2012.

KLIA won the ‘Best Airport Staff Asia Award 2012’ in the SKYTRAX, 2012 World Airport Awards as voted by customers from all over the world.

Malaysia Airports was recognized for its leadership with the inaugural award for ‘Exceptional Service to Aviation’ by Pacific Asia Travel Association (PATA).

Malaysia Airports received ‘Lifetime Achievement Award’ in Global Leadership Awards 2012, conferred to Tan Sri Bashir Ahmad, the Managing Director of Malaysia Airports.

Malaysia Airports won ‘Anugerah Peratus Prestasi Kutipan Terbaik 2011’, by the Lembaga Zakat Selangor (LZS).

Corporate Social Responsibilities (CSR)

Corporate social responsibilities (CSR) are an obligation towards society assumed by business.

With international trends increased, CSR seem to have been increased awareness and activity of CSR initiatives in Malaysia. Malaysia government’s increasing focus on CSR has resulted in the development of new frameworks for implementation of CSR initiatives for the country’s business. CSR concept is used to describe actions that go beyond philanthropy or compliance with applicable laws. CSR describes the activities that safeguard the environment, communities, employees, shareholders and other affected parties’ interests as an integral part of the operation, to the extent that it lays the foundation for long-term, sustainable value creation.

Potential business benefits

Human resources, a CSR program can be an aid to recruitment and retention, particularly within the competitive graduate student market. Besides that it also helps improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. CSR has been found to encourage customer orientation among frontline employees. Such as MAHB that gives opportunity for their employee for further studies by sponsor them sponsorship to certified university by MAHB.

Risk management, is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of ‘doing the right thing’ within a corporation can offset these risks.

In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values Business service organizations can benefit too from building a reputation for integrity and best practice. By committing CSR program, MAHB could build better company reputation not only recognise in Malaysia but also to the world.

In addition, ease to get license to operate. Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity, or the environment seriously as good corporate citizens with respect to labour standards and impacts on the environment. MAHB is considered as the government link company, by the cooperation of government, MAHB could contribute to the diverse needs of welfare from time to time.

THE PYRAMID OF CORPORATE SOCIAL RESPONSIBILITY

For CSR to be accepted by a conscientious business person, it should be framed in such a way that the entire ranges of business responsibilities are embraced. It is suggested here that four kinds of social responsibilities constitute total CSR: economic, legal, ethical and philanthropic.

Economic Responsibilities

Historically, business organizations were created as economic entities designed to provide goods and services to societal members. Its principal role was to produce goods and services that consumers needed and wanted and to make an acceptable profit in the process.

Legal Responsibilities

As a partial fulfilment of the “social contract” between business and society firms are expected to pursue their economic missions within the framework of the law. Legal responsibilities reflect a view of “codified ethics” in the sense that they embody basic notions of fair operations as established by our lawmakers.

Ethical Responsibilities

Ethical responsibilities embody those standards, norms, or expectations that reflect a concern for what consumers, employees, shareholders, and the community regard as fair, just, or in keeping with the respect or protection of stakeholders’ moral rights.

Philanthropic Responsibilities

Philanthropy encompasses those corporate actions that are in response to society’s expectation that businesses be good corporate citizens. This includes actively engaging in acts or programs to promote human welfare or goodwill.

Community

Like other corporate bodies responsible and caring the community, Malaysia Airport Holdings Berhad (MAHB) not left to contribute to the diverse needs of welfare in this country since time immemorial. Total provided for programs and activities has become increasingly from year to year and it proves our strong commitment in ensure the success of programs to benefit fully to society.

MAHB’ flagship community program was the Beyond Borders, and it’s also follow up with a tagline “Give Them Wings, Let Them Fly” that was launched in 2007. Malaysia Airport had participated in Project PINTAR (Promoting Intelligence, Nurturing Talent, and Advocating Responsibility) that were established under the auspices of the Ministry of Finance and Khazanah Nasional.

The new identity illustrates MAHB aspiration towards to help those underprivileged children in their academic standards. This program highlights the importance of education and improvement on academic in subject English, Mathematics and Science, of the under-privileged students at MAHB’s adopted school. These objectives are the fundamentals of Beyond Borders framework that are translated into Beyond Borders program pillars that consist of:

Workshop for teachers on project management and English language

This workshop is to inspire and encourage teachers to incorporate more fun and creative elements in the subject they teach. Furthermore, it can increase English Language proficiency levels among teacher themselves. This workshop conducted annually, it enhanced every year to further equip the teachers with a nice project management, communications and information skills.

Writing Workshop for Primary 4 students

This workshop is to promote and cultivate interest towards English composition and creative thinking among Primary 4 students. It also support Beyond Borders organized creative writing competition themed Golden Pen Awards.

Golden Pen Awards

This writing competition encourages students in the adopted school to improve their English proficiency. These mainly Year 4, attend a creative writing workshop to learn basic sentence structure construction and their final entries will be judged for the award.

Motivational talks themed ‘Crossing the border’

The program also educate students aged 9 to 12 years in the areas of self- motivation and person efficacy. They aim to prepare students for their future by equipping them with the knowledge regarding personal qualities that will enable them to prosper in today’s challenging and rapidly changing society.

‘Act it Up’ Interschool Drama Competition

The competition aim allows students to express themselves by fusing science with performing arts. Students from Year 3 and 5 have to entertain crowds with their on-stage performance with their interpretation of proposed theme.

In year 2010, MAHB receiving positive reception and support from our adopted school communities, MAHB adopted 12 more school in rural areas. These schools are:

They have a program name Beyond Borders Planet Green, this program is a new interschool competition aims to promote environmental responsibility among the school community particularly the school children. This competition challenge the 12 adopted schools to implement an environment project that is not just creative, impactful but also sustainable to school environment needs.

In response, they had help to improve the passing rates for UPSR examinations in all adopted schools. Based on the dedication and support shown by the teachers, the students showed positive results in the 2010 UPSR examination with higher percentage of passes.

In year 2010 and 2011, MAHB held a Regional Beyond Borders Award 2010 & 2011. This event is to appreciate and recognize the hard work and effort to completing this program.

The company is benefiting from the program but so to the students and teachers in these adopted primary schools. Malaysia Airport Holdings Berhad is a programme partner for the program ‘Beyond Border’, this means MAHB doesn’t have to pay the amount of money that required joining as PINTAR member but are privy to leveraging on the Foundation’s facilities and services in relation to the adoption of schools, plus recognition as a PINTAR Programme Partner in varied communication channels that could save the cost for promoting their company. Contributors for the programs are given special 100% tax exempt status for donations in cash as well as in kind.

Staff

Human capital development is one of the important parts for every organization. To achieve the vision of MAHB as the World Class Airport Business, company staff is one of the main key to the path of success. Their interest and welfare is the company’s priority. In solving these needs, various cooperation with both government and parties within Malaysia Airports to foster positive and supportive working environment has been highly effective experience. MAHB believe that soft and hard skill trainings assist in preparing their staff in competing in the upcoming challenging work force. Many programmers supported by Malaysia Airports to improve the Human Capital Development Strategy, one of them are the Malaysia Airport Education Sponsorship Program (ESP).

ESP is a programming that arouses and assists outstanding students to achieve high educational and professional goal. The purpose of ESP is to offer sponsorship for potential personal with brilliant educational background to continue their further studies at selected colleges and Universities, enabling them to obtain the information and competencies to become the future leaders of Malaysia. Committing in these CSR programs is to establish a strong team of leaders to create the multiplier effect for massive growth and deliver breakthrough performance. Besides that, the average hours of training per year per employee are 10.13 hours.

MAHB’s staff has been provided opportunities to attend workshops, conferences, career development programmers and a corporate diploma with UiTM’s Malaysian Institute of Transportation (MITRANS) and the Global Airport Management Professional Accreditation Programme (AMPAP).The Human Resource Service Division (HR) has actively developed and get ready our trainers with professional certification that allows them to be qualified trainers.

Malaysia Airports invested a substantial fund for its Human Capital Development in 2010 and a total of 379 training programs were delivered by our own internal and appointed external trainers that involved a total of 6,596 employees being trained with an investment of RM6.8 million. Of cause the total investment and employee involved in these programs has increased every year.

To support these programs, the cost will be bear by MAHB and it will be listed as community investment that will be recorded into their annual financial report. The program is benefiting the company in the way increase more quality employees to manage the operation of company. But in the other hand, it’s costly because MAHB has to provide training programs not only to the internal staff but also external trainers. It will reduce the revenue of the company.

Suppliers

Malaysia Airport Holding Berhad (MHAB) also been did CSR program upon Supplier part. The aim for MAHB in this part would like to give improve for local entrepreneurs involve likewise expand their business opportunity in local market as well. So MAHB been took few program to show giving help to the entrepreneurs and also vendor/supplier too.

One of the most significant programs is the Entrepreneurs Development Program (EDP), where MAHB collaborate with the Ministry of Entrepreneur Development and Co-operation Development (MECD) to stimulate growth and development of Bumiputera small and medium enterprises (SME). Through MAHB’s Entrepreneur Development Program, they did provide a forum or platform for the Bumiputera SMEs to expand their business toward the international level, which mean they would try to help them for attract the foreign visitors from different kind’s way. For example at KLIA is the major gateway for the foreign businessman, traveler, and other purpose visitors, hence give opportunity for these SMEs’ business showcase and market local’s products. Through the program MAHB has agrees to reserve leasing premises for Bumiputera entrepreneur to operate their businesses at KLIA’s cafeteria; KLIA’s Link Bridge; and Food Garden in LCCT, where it is 5 food and beverage (F&B) kiosks at LCCT-KLIA, while there are 2 F&B outlet and 1 retail outlet at KLIA.

Moreover, involve in these program MAHB also give these Bumiputera entrepreneur promote their business through advertisement and promotion channel such as KLIA TV, KLIA website ,the magazine called KLIA Times, and also through Fly.fm. So currently, these Bumiputera entrepreneurs participating in this program are in food and beverage sector. For example JONKER WALK KOPITIAM, which located at Contact Pier, Departure KLIA with the local “kopitiam” concept and SKY TRAVEL MART that located at Blok C, level 2 of Link Bridge of main terminal KLIA.

So this Entrepreneurs Development Program is run smoothly and successfully. We can see that the result for these Bumiputera entrepreneur’s business is get popular among foreign and local visitor as well. The average sale for JONKER WALK KOPITIAM can up to RM60,000 per month and nearest 300 customer per day. While we also can refer to the SKY TRAVEL MART where it total sale could reach to RM130,000 to RM150,000 and nearly 800 – 1000 person per day. This clearly show the response from communities is popular, which also meaning to this program run been benefit the company MAHB. In addition, increase of entrepreneur’s sales will lead affect in increasing MAHB’s revenue. Profit gain from the entrepreneur’s sales could cover program cost that provided for the entrepreneurs.

Government

Short Take-Off and Landing Airports in short STOL Port is one of the most significant CSR program done by Malaysia Airport Holdings Berhad ( MAHB ). Definition of STOL port as defined in Wikipedia is an airport designed with short take-off and landing operations in mind, normally having a short single runway; shorter than 5’000 feet ( 1524m ).STOL port can only accepts certain types of aircraft, often only smaller propeller aircraft, often limits on the amount of fuel that can be taken.

According to the Labuan Airport manger Mr. Ahmad Fikri, these STOL ports were built by Malaysia government whereas MAHB will play the role of operator to these airports. Operating, maintaining, and managing these airports to make sure that it reaches its highest efficiency in helping to travel people and goods from these rural areas. The receiving end for these airports are of course the communities and people in these rural areas because they will get to travel in and out to neighbouring towns at a lower and more reasonable price. This is because of the dense and hilly terrain in Malaysia especially in the states of Sabah and Sarawak where many areas are inaccessible by road or ground transport.

As MAHB execute their corporate social responsibility to the community with this STOL port by operating and managing these airports. At the same time, airport taxes are not being charged to any airlines flying within these STOL ports. This is why and how the communities in these rural areas can benefit from this CSR program by having to pay a lower price to travel around because people in these areas might not be able to afford the normal rate or high price of air ticket. These are the places with STOL ports; In Sarawak they are Lawas, Marudi, Mukah, Kapit, Belaga, Bario, Long Seridan, Long Lellang, Long Semado, Bakelalan and Long Akah; and Kudat, Long Pasia and Semporna in Sabah. As for Peninsula Malaysia places with STOL ports will be Pangkor, Redang, and Tioman. In total there are 18 STOL ports existing in Malaysia out of 39 airports that are currently under MAHB.

As recorded and stated on the MAHB website, Malaysia’s STOL ports handled nearly 435,000 passengers in 2005 and 1.28 million tonnes of cargo and mail were also carried to and from STOL ports. The numbers continue to increase up till this day, this shows that STOL ports have been more effective and efficient in helping to travel people as well as transporting cargo or goods.

MAHB didn’t just merely handle or operate these STOL ports as part of their CSR programs but instead the company have been seeking improvement in these STOL ports. One of the example is the joint effort with MASwings to held the Safety and Security Awareness Campaign at Long Lellang and Long Seridan recently. It’s rationale of this program is to continuously strengthen and increased its effort in educating the rural communities about safety, quality and security regulation in relations to air travel. Nevertheless, MAHB did face some difficulty and challenges in operating these STOL ports. One of the main challenges is the lack of manpower in these rural areas to run the airport efficiently. The challenges will be explained and discuss further in details later in this report.

Overall we can see can conclude that this STOL ports as CSR program have been a success in helping and giving service to the communities in rural areas. We can also see that MAHB have been constantly upgrading and improving themselves in managing these STOL ports as given in the example of helding Safety and Security Awareness Campaign.

Environment

Malaysia Airport Holding Berhad launches a project at KLIA. Project green planet is a KL International Airport (KLIA) initiative to expand its corporate responsibility to promote a new found appreciation of our environment and encourage activities to protect and preserve the planet.

This social responsibility project is a commitment by KLIA to promote the cause of environmental responsibility to all Malaysians and the world. KLIA will also help educate and encourage airport users and the public to contribute towards preserving the well-being of the earth eco-system.

In addition, KLIA will work with agencies such as the United Nation Environment Protection (UNEP) and Yayasan Anak Warisan Alam (YAWA) to organize Events and activities to promote this worthy and important cause.

This project is launched timely with KLIA’s achievement of being awarded with Green Globe 21 Certification for the third year running. KLIA was first certified in the year 2004 and has been the first and the only airort in the world to attain the status of Green Globe certified.

This PGP was launched by YB Datuk Douglas Uggah Embas, Deputy Minister of Transport accompanied by Tan Sri Datuk Dr. Aris Othman, Chairman of Malaysia Airports and Dato Seri Bashir Ahmad, Managing Director of Malaysia Airports.

As global warming is becoming a concerned issue around the globe, KLIA’s effort to promote conservation and protection of earth environment couldn’t t be at a better time. Dato Seri Bashir Ahmad said: “Malaysia Airports aims to lead the way in the aviation world in stimulating an environment conscious society, and we are proud to acknowledge that currently, KLIA is the only airport in the world to be certified by Green Globe for our eco-friendly efforts. PGP underlines Malaysia Airports corporate social responsibility (CSR) initiatives which subscribe to KLIA’s policy of Environmental and Social Sustainability.”

It is PGP’s objective to showcase KLIA’s commitment to promote environmental responsibility to all airport users and ultimately to the global audience.

Key Programmes of Project Green Planet include:

Exhibitions and Seminars

Is an activity to promote the important of environment and the planet?

United Nations Environment Protection (UNEP) International Photographic Competition Exhibition

This program invited photographers, professional and amateur, adults and young people once to show us the world as they saw it. The results were beautiful and horrific, charming and powerful.

Interactive Activities and Contests

Is an activities and contests to test Malaysian and the world about the important of environment. The participants will learned the aims of important environment from this program.

Snap Green

This program is relevant with the photograph contests.it need to snap down the green environment picture

Pledge a Plant Campaign

Pledge-a-plant, where participants can buy a plant for RM10 to be planted at an area in KLIA. Each tree will be labeled with the donor’s name, the tree’s scientific and botany name. Certificate will also be issued which carry the details of the donor, locations and type of tree. Donors will also be able to visit this area from time to time.

Education & Awareness

Educate and encourage airport users and the public to contribute towards preserving the well-being of the earth’s eco-system

Travellers’ Guide to a Green Planet

This program is specifically for travellers’ from local and overseas. It will promote the aims of green planet to travellers’

Walk The Environment’ Campaign

The aim for this program is strengthening its position as an eco- friendly and environmental concerned corporate citizen.

On the other hand, Malaysia Airport Holding Berhad plan for green measures to be incorporated into all future projects, including the new terminal at KLIA. As part of our Energy Savings Programme (ESP), they are creating awareness among our employees and airport users to encourage them to optimise energy use. In July 2009, they started installing energy saving devices in KLIA’s distribution networks, the objective being to save up to 20% of energy consumption. Other airports will follow suit. Being green is not a trend. they believe it is, perhaps, the most important challenge of our time. Our environmental endeavours have enriched our awareness of how each of us can make a difference and businesses and individuals do really matters. In realising this realm of not only contributing to our country, but also ourselves, they are committed to making the difference. Apart from obligations in implementing an Environmental management Program (EMP), additional efforts are being taken in fulfilling more sustainable criteria and better environmental performance in the future.

Challenges

There are many company doing CSR out there, it’s the same as for the CRS organised by MAHB most comman problem that faced by MAHB while implementing the CSR are budget. The CSR that affected the most by this problem is STOL ports, Short Take Off and Landing Ports. As what have told by the Manager of MAHB Labuan branch, there are no extra taxes or revenues to be charged on the flight ticket. In this case, most of the STOL Ports are facing deficit on the earning. The loses of the STOL Ports are covered by the implicit income that transferred from different MAHB branches. Therefore, the budgets are usually not enough to cover the expenditure for these STOL Ports.

Besides that, one of the challenges faced by MAHB is lack of man power. As what have we study, most of the CSR project are runs by the man power from the airport, which means that the workers in MAHB itself are involving in the CSR program. Besides that, it’s hard for the management team to transfer the workers to the STOL Ports that mostly located in Sabah and Sarawak area.

The geographical environment that surrounded by rain forest also caused the weather to be unpredictable, it has cause many flight to be delay and cancelled due to flood or bad weather conditions. Besides that, he also told us that some of the STOL Ports located at the vacation’s area, such as Pulau Pangkor, Pulau Redang and Pulau Tioman, it means that the customer’s flow are depending on the holiday or peak season. Other than that, according to what MR Ahmad Fikri had told us, most of the STOL Ports are smaller in size compared to other MAHB branches. Therefore, to reduce the loses that caused by the daily flight on normal period and lack of landing area. There are lesser choice on the travelling day for the flight ticket It may lead some inconvenience caused to the customers who use the STOL Ports service.