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At the Annual General Meeting
2002, the Strategic Financial Plan 2003-2007 ("SFP")
was presented to Members. It highlighted a warning that unless stopped, our
then annual operating deficit of RM8m will continually drain our reserves
and by year 2004, our Club will be in financial difficulties.
The SFP also laid out a five-year
programme to tackle the problems, by narrowing the deficit through
increasing revenues and cutting down costs.
In increasing revenue, Members
had approved the increase in monthly subscription and the entrance fees for
membership. In cutting down cost, various exercises were and are being
carried out. These included stricter and tighter fiscal
control, monitoring excessive overtime
and medical claims, outsourcing/privatisation of the practice range and
reduction of staff by implementing multi-tasking and offers of early
retirement.
At the Extraordinary General
Meeting 2003, The Committee reported that it managed to arrest the deficit
trend and that the SFP was continuing to be implemented.
At the Budget 2004 meeting in January The Committee reported that the
operating deficit is expected to narrow from RM7.0m in year 2002 to RM5.2m
in year 2003 and it is anticipated that for the budget year 2004, the
deficit will be further reduced to RM3.9m.
The Food & Beverage Department
has been running at a loss for years : For year 1999
losses stood at RM0.912m, for year 2000 at RM0.789m, for year 2001 at
RM0.882m, for year 2002 at RM0.989m and for year 2003 at RM1.008m. Soon
after the approval of the Budget 2004, our Club implemented the Voluntary
Separation Scheme/Retrenchment ("VSS") to the staff of the Food & Beverage
Department. The quantum offered for the VSS is considered fair as it is more
than what was provided in the Collective Agreement entered into by the Club
with The National Union of Club Employees.
One of the key
components of the SFP is the outsourcing/privatising of the bar and food
outlets. A tender exercise was carried out and the new caterer with its own
service staff will commence operation from 1st March 2004.
Through these
exercises, our Club is relieved from the burden of the payroll of the Food &
Beverage staff of approximately RM1.5m per annum.
Another
important component of the SFP for raising regular and substantial income is
the development of our valuable properties fronting Jalan Tun Razak and
Jalan Kampung Pandan. The Sub-Committee for Property Development has
finalised a strategic plan which will be presented to Members for approval
in an Extraordinary General Meeting to be convened soon.
With the
improved weather conditions, the greens are improving. I wish to assure
Members that in implementing the several exercises and programmes of the SFP,
The Committee has not lost focus or neglected our core activity of 'golf'.
Before
embarking on the improvement and re-turfing works of the greens and the
Master Plan of the Old Course, a dialogue between The Committee, golf/turf
consultants and Members will be carried out in late February 2004.
The intake of new Members and
children of Members "who missed the boat" is progressing
smoothly and todate approximately 40 applicants have been successfully
elected as Ordinary Members whilst several applications were declined.
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