CAB 24th Annual General Meeting

On October 29th, 2020, the Annual General Meeting for the CAB stakeholders has been held at the Concorde Hotel, Kuala Lumpur. The objective of the AGM is to provide the annual report of production through CAB for the year 2019.

Due to the pandemic safety concerns, the AGM was organized into two separate environments – physical attendance and online video conference via Microsoft Teams. All the board members were involved in the physical meeting with other 8 representatives from various CAB members. Meanwhile, 16 stakeholders opted to participate in the meeting via video conference. To ensure the event complies with the Standard of Procedure (SOP) for Covid-19 preventive measures, all the seats were arranged with a distancing measurement, and all participants are required to scan with the MySejahtera app and ensure they are wearing face mask throughout the meeting.

The agendas of the meeting are as below:

  1. Report of the Supervisory Board
  2. Report of the Bureau Manager
  3. Report of the External Auditor
  4. Contribution and Charges for CAB Services
  5. Appointment of new Supervisory Board Members for 2020-2022
  1. Report of the Supervisory Board

For the period between 1 April 2019 until 31 March 2020, CABFAC business has recorded a total number of transactions of 21,423 and the total net premiums recorded are RM 336 million. Meanwhile, the total number of transactions for CABCO was recorded at 54,893 with total net premiums at RM 324 million. The report was accepted with no rejection by the stakeholders.

  • Report of the Bureau Manager

The bureau manager reported that as at 31st March 2020, the total current registered CAB members are 43 member which consists of insurance companies, reinsurers, and brokers. In regard to the CAB performance between 1st April 2019 to 31st March 2020, the total volume of transactions has increased by 1.9% compared to last year. However, the volume does not reflect the total premium as there is a declining of 0.6% compared to the same period. The broker business recorded an increase of 60% but decreased by 9.2% in term of the Growth Premium for brokers. The report was accepted with no rejection by the stakeholders.

  • Report of External Auditor

On 20th May 2020, the Supervisory Board adopted the audited accounts of the Central Administration Bureau for the period ended 31st March 2020 together with the Auditors’ Report thereon. The report was accepted with no rejection by the stakeholders.

  • Contribution and Charges for CAB Services

As per Article 8.6 (vii) of the Collective Agreement, the Supervisory Board at its meeting held on 28th February 2019 had considered the income of the CAB and budget for the forthcoming year.

  1. Income & Expenses for FYE 2020
Total operating income1,498,0531,120,2412,618,294
Total operating expenses(1,328,292)(838,628)(2,166,920)
Surplus from operation169,761281,613451,374
Tax on interest income(65,344)(55,990)(121,334)
Net surplus104,417225,623330,040
  • Surpluses in the Development Fund
Total amount1,511,1042,370,2003,881,304
  • Charges to Cover Operating Expenses
Transaction Charges @ RM1.00 per transaction
Transaction levy @ 0.20% on net accepted premium but for CABCO with ceiling of RM5,000 whichever is lower
Annual Fee @ RM7,195 per member
Annual Fee @ RM1,500 per broker
Monthly fee of RM50 for brokers
  • Projected Operating Expenses FYE 2021
Total operating income*1,586,4501,149,0002,735,450
Total operating expenses(1,379,560)(1,024,460)(2,404,020)
Surplus from operation206,890124,540331,430
Tax on interest income(63,000)(62,000)(125,000)
Net surplus143,89062,540206,430

*Including transaction charges, annual fee and interest income

The report and proposal were accepted with no rejection by the stakeholders.

  • Appointment of new Supervisory Board Members for 2020 – 2022

The members of Supervisory Board for tenure 2019/20 as below:

No.CompanyCEO NameRole
1Allianz General Insurance (Malaysia) BerhadMr. Zakri Mohd KhirCAB Chairman
2AIG Malaysia Insurance BerhadMr. Antony LeePIAM Representative
3Malaysian Reinsurance BerhadMr. Zainudin IshakPermanent Member
4Lonpac Insurance BerhadMr. Looi Kong MengBoard Member
5Takaful Ikhlas General BerhadMr. Eddy Azly AbidinBoard Member
6Pacific & Orient Insurance Co. Bhd.Mr. Noor Muzir Mohamed KassimBoard Member
7Kuwait Reinsurance CompanyMr. Abdallah Badaoui    Board Member

One of the Supervisory Board members, Mr. Looi Kong Meng from Lonpac Insurance Berhad has just completed his 2-years tenure as the board member in 2020. On this AGM, Mr. Looi Kong Meng has been re-nominated as the Supervisory Board members for year 2020-2022. The nomination was accepted with no rejection by the stakeholders.

As all agendas has been discussed, the meeting opened for Q&A session to all participants including those who watch through video conference.

The meeting then concluded at 12.00 noon as there is no further matter arose.