MISC Annual Report 2019

Market Review The state of the global economy, the shipping industry and offshore services are expecting a slow progression in the near term. Student enrolment may be affected due to cost-saving measures adopted by affected organisations through reduction in the cadet sponsorship programme. Key Developments We are proud and honoured that the Cabinet approved MISC’s concession for ALAM in 2019 for a period of 30 years until 2046, which is a validation of our expertise and domain capability over the past four decades. This will allow ALAM to continue to prepare young Malaysians and others for maritime industry careers that will make them highly employable, offer them bright futures as well as serve the manpower requirements of the industry for decades to come. Confidence in ALAM to produce skilled manpower for the needs of the industry and contribute to economic output was also demonstrated when the Melaka State Economic Planning Unit sponsored its pioneer batch of 100 students under the Sijil Kemahiran Malaysia (SKM) rating programme. The confidence of the Melaka State Government led to another expression of confidence by the Malaysian Indian Transformation Unit under the Prime Minister’s Department when it also sponsored 100 students for the same programme. The SKM programme enables the students to apply for financial assistance from the Skills Development Fund Corporation/Perbadanan Tabung Pendidikan Kemahiran. Ratings who undergo this programme have the option of seeking employment with domestic or international shipping companies or shore-based maritime-related companies. Sustainability Aligning ourselves with MISC Group’s sustainability agenda for a cleaner environment, various green initiatives such as campaigns, talks, movie screenings and workshops were carried out in 2019. As part of the group-wide 3R programmes, a plastic recycling centre was established, and the use of disposable plastic drinking bottles was stopped along with the banning of non-biodegradable plastic straws. As a means of serving the communities we operate in, four beach cleaning programmes were organised with three in Melaka and one in Negeri Sembilan with the participation from 98 cadets. Moving Forward The maritime education and training sector will continue to be challenging in 2020 amidst the backdrop of a global economic slowdown and slow maritime industry growth. Many of the industry players are implementing cost-saving measures and one of the effects of that is the demand for modular courses has reduced significantly, exacerbated by an increasing trend for non-seafaring programmes. Nevertheless, we will continue to explore state and national funds for cadetship and ratings programmes and other financial institutions as funding alternatives. We are also actively marketing internationally such as in Singapore and Brunei, as well as leveraging the strong alliances formed over the years with many international institutions to overcome the challenge of low enrolment. Focusing on consultancy projects and maritime courses along with ALAM’s international accreditation for foreign market attraction, there is intent to expand the regional market coverage through more international collaborations with Cambodia, Timor Leste, Singapore and the Middle East. We also see growth potential in the cruise industry which leads to a demand for Standards of Training, Certification and Watchkeeping (STCW) and cruise-related mandatory courses, despite the competition from other MET institutions. Other areas where we are considering diversifying into are market segments such as ports, terminals and logistic training, as well as embarking on College University Upgrading and non-STCW Diploma programmes. The shift of the government’s focus towards Technical and Vocational Education Training to develop future generations is also a good opportunity for ALAM to offer its expertise to train Malaysians for a career that can help to build a better world. During the year, MISC’s subsidiary Eaglestar also sponsored 200 cadet enrolments as part of its capacity-building initiative to provide skilled seafarers for their own fleet and to the maritime industry. Meanwhile, loans continued to be provided by the National Higher Education Fund Corporation/Perbadanan Tabung Pendidikan Tinggi Nasional for 120 cadets in 2019, which translates into a significant RM11 million in revenue over a period of three years in total. To strive for education excellence and develop the best industry- relevant curriculum, ALAM introduced its ‘International Code of Safety for Ships using gas or other low-flashpoint fuels’ course for shore staff. We also conducted the first ‘Electro-Technical Rating’ course with participants from the Royale Sultanate of Oman and a ‘Train the Trainer’ (IMO model course 6.09) for 17 trainers from the Jiangsu Maritime Institute. Exchange programmes for participants from 11 countries were also hosted for a ‘Transportation of LNG’ course sponsored by the Malaysian Technical Cooperation Programme under the Ministry of Foreign Affairs. The enrolment of female cadets has also increased to 16 in 2019, in line with our efforts of promoting gender equality, aligned with the UNSDG 5 on Gender Equality. The year also saw a total of 173 cadets and 18 ratings graduated during the 120 th Convocation, ready to serve the maritime industry. Since inception in 1976, ALAM has trained more than 13,500 seafarers and will continue to train more cadets and officers of all ranks in the years to come. Maritime Education & Training Management Discussion & Analysis 127 126 OUR BUSINESS PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019