In the absence of Pn Habsah Hassan, En Ahmad Izham Omar was elected as the Chairman of the meeting.

All the 3 retiring directors, Pn Habsah Hassan, En Ad Samad and Ms Ng Ayna were re-elected uncontested as Directors for another 2 years.

Other matters in the agenda which were approved included the adoption of the audited financial statements for the year ended 31 December 2015 and the reappointment of Messrs Ernst & Young as auditors of the Company.

Review of Financial Performance

Before the adoption of the audited financial statements, En Ahmad Izham Omar, who is also MACP’s Vice Chairman, briefed the members on the financial performance of the Company for the year 2015; which recorded a 4% growth in revenue over the previous year to touch RM55.3 million; with an excess income before tax of RM50.7 million.

Although income from broadcasting had reduced from RM13.7 million to RM12.0 million, General Licensing, Digital and Royalties from Overseas had increased to RM26.6 million (increased by 5%), RM10.7 million (increased by 9%) and RM2.1 million (increased by 10.5%) respectively.

Meanwhile, income from Mechanical which consist Dubbing and Synchronization Fee had also increased to RM1.1 million. Whereas, bank interest and commission earned from licensing and processing Digital distribution had increased Other Income from RM1.8 million in 2014 to RM2.8 million in 2015.

General Licensing remained as the biggest revenue contributor at 48% from 47% in 2014. However, Broadcasting had reduced from 26% to 22% of the Company’s total revenue in 2015. Revenue from Digital increased to 19% (from 18% in 2014) whilst Royalties from Overseas remained at 4% and contribution from Mechanical increased to 2% from 1% in the preceding year. Other Income had also increased from 4% previously to 5% in 2015.

Compared to the previous year, all sectors had shown increases except for Broadcasting and Entertainment outlets. Income from broadcasters declined due to the one-time arrears received in 2014 and the overall drop in advertising revenue earned by the broadcasters in 2015. Apart from this, the slow economy and continued confusion amongst music users in respect of Performers’ rights resulted in the collections from Entertainment sector to decline.

Overall, the revenue increased by RM1.8 million to RM55.3 million, but expenses of the Company had only increased by RM218,000 to RM4.6 million, thereby maintaining the cost-revenue ratio before tax at 8%.

Membership and Members’ Activities

The Chairman also updated members on the Company’s activities since the last AGM; which included New Members’ briefings on 11 August 2015, 15 February 2016 and 1 June 2016; friendly sports with MBPJ and MPSJ on 12 September 2015 followed with MACP Awards on 22 November 2015.

The Chairman also informed that MACP’s membership as at 31 December 2015 stood at 3,590 with 3,443 writers and 147 publisher members. Members were also updated on their benefits; which were reviewed by MACP’s Board annually, taking into consideration the increasing membership year-on-year. Amongst the current benefits are the following :

(i) Cash donation of up to RM4,000.00 to the family of deceased member for funeral expenses, depending on his contribution to the music industry;

(ii) Reimbursement of hospitalization expenses up to RM10,000.00 during the term of membership;

(iii) One-time contribution of RM500.00 to only one immediate family member for medical expenses;

(iv) Music Study Aid grant to members pursuing music or music related courses at local institutions of higher learning;

(v) Veteran members allowance of RM500.00 if they meet the criteria of 50 registered works with MACP and have been a member for at least 10 years; and

(vi) Free or nominal fee participation in members’ activities such as annual dinner, workshops, seminars and sporting events.

Payment of Royalties

In terms of operations, the royalties are directly credited to 2,600 members’ account or 90% of active members. Payment is made 3 times in a year whereby the payments made in March and December are for Digital and Mechanical royalties and July for General Licensing, Broadcasting & Other Income.

Upcoming Events

Several activities have been planned for members including the “Fun Run” jointly organized with DBKL on 18 September 2016 and MACP Awards on 20 November 2016. This year’s Cipta Ekspres workshop will be in collaboration with the Universities to provide opportunities and guidance to young composers to collaborate with established composers. MACP is also in collaboration with the National Archives of Malaysia to collect and store members’ works and personal information as a reference for future generations. A briefing by the National Archives, at a date to be fixed later, will be conducted for better understanding among the members.

Resolution on Set-up of NewCo

The next agenda was on the incorporation of the New Company (“NewCo”) pursuant to the Government’s proposal to centralize the licensing activities of Licensing Bodies in Malaysia. The Company sought to seek members’ approval to authorize the Directors of the Company to set-up this NewCo jointly with other Licensing Bodies.

During the Q&A session, members had raised several questions and concerns on this NewCo. The Chairman informed that the Board members of the NewCo would consist of 10 members where the initial Chairman for the first 2 years will be appointed by the Government. However, his role will be a non-executive position. Subsequent to the initial term, the Chairmanship will be rotated between a MACP representative and the Neighbouring rights’ representative. The other 9 board members will be from MACP (4), PPM (2), Performers (2) and one independent directors.

Upon concerns raised by members on the Government interference in the operations of the NewCo, the Chairman informed that the position of the CEO of the NewCo will be appointed by the NewCo Protem Committee which is headed by Pn Habsah Hassan. The Protem Committee comprise representatives from all the 4 Licensing Bodies. The Chairman assured members that in the event the NewCo structure is not what has been tabled at today’s meeting, MACP Board will seek another referendum from members as to their next course of action.

The Chairman also assured the meeting that both the number of directors and the 50% share of collections to MACP had been confirmed by the Government. If MACP is to object to the incorporation of the NewCo, the Government may withdraw MACP’s licence and thereafter MACP will not be able to operate. The Chairman further informed that all members should support this Resolution and view this initiative by the Government positively to resolve the problems faced by both music users and licensing bodies.

The Resolution was then put to vote via polling and after tabulation by the Company Secretary, 51% voted in favour of the resolution, while 49% was against it.

The Chairman thanked all present at the meeting and assured members that the Company’s Board of Directors will carry out its responsibilities in the best interest of its members. The meeting ended at 6.45pm and all members were invited to join in the Buka Puasa.